The lean startup model

In startup and innovation communities, the Lean startup model is often implemented as a new efficient innovation model.

This article will perform an evaluation of this model by stating some facts and let the reader evaluate if this model is feasible innovation model. The lean startup is a very new model, where its main goal is to create an efficient method of implementing new products and innovation.

What is innovation?

Innovation is problem-solving!

In most cases innovation is just a modification of an existing product, making it better, more efficient, more satisfactory, fun and easier to use. But in some cases, innovation is a restructuring of an existing business, creating a more efficient work-environment in a production plant. In rare cases the innovation is destroying an existing market entirely, creating a new more efficient market for the entire world.

A very good example of a modification of an existing technology is the telephone; suddenly mobile and smart. In structural-innovations for production or sale, automation is very often involved and robots for warehouse storage is a good example. Digital cameras and digital press is market changing innovations removing the prior vital need for human interaction to achieve the finished product.

In an very simplified way, you can break down innovations to three types.

  • The improving innovation
  • The structural innovation
  • The game-changing innovation

Lean measurements

lean model

Lets try to understand how the lean model fits into these innovation processes.  Lean is fairly simple to understand, by looking at the figure, where the idea-phase is introducing a design phase, and an evaluation of the product introduces a circular innovation cycle. The evaluation loop is processed until the product have provided the proper quality for the customer.

Who are going to participate in the measure phase?

The measure phase is probably the most vital thing in the innovation process, and the lean model assigns the customer as the main means of measure.

The Robert Kearns case can stand out as an indicator in the understanding of how the measure phase very often leads to unwanted results. In many cases the customers are manufacturers, and thus the model fails, unless you have a patent filed in the design phase.

Another major problem to overcome in the measure phase, is when the customer is satisfied with his current situation and his products. Then the measure phase can be lost, unless you are a very smart innovator understanding that “customer” is a relative term. This might be the toughest part when starting up an innovation process.

In improving innovations, it would be sensible if you are designing a wood tool, to use a carpenter business to test this out. But in many cases, if your innovation should be given any consideration, this tool needs to be produced by somebody. Most likely this tool will be too expensive if your start-up company needs to produce this, and your actual customer suddenly is redefined to a manufacturer. Creating a new product-line for a new tool is a huge barrier, compared to the small carpenter company who loves your product. To overcome this problem, the innovation process have been given a new dimension, and the people who needs to be convinced might have different views, thoughts and agendas.

A even bigger problem with this innovation model is apparent if you try to solve a problem that requires high technological skills and understanding. If the customers does not have the knowledge to understand the solution they will not be able to understand its effects. If the solution is a revolutionary idea, it still might be stopped by those who needs the innovation the most.

The question then is:

Will it help if you patent your innovation before you know that people are capable of understanding it?

Basically this will lead us to a conclusion and a fact:   Money is the key to innovation. Because if the innovation is stopped by the customers, it is not helpful if the innovation-model is efficient when its efficiency is stranded by its own principle.

But, is innovation only driven by money?

Money & Status Quo – barriers for the innovator

Innovation is a business of creation and knowledge, where the existing business should be fearful of the innovator. This fear is usually eliminated by money. In a Lean Startup Model, the customer might be the one with the money and the innovator without money; only an idea.

This is the biggest challenge of all for the innovator. In a world of innovation, you have to be very strong to overcome such a heavy imbalance in power. If you want problems to be solved, you need money. Without Money, no problems are solved.

If the Lean Startup Model point out the customer to participate in the process of creating a product, the world of innovation might be lost. Innovation is something the public want and need, but where the people with money makes the decision. The picture of innovation is then changing to become a money-making decision, and the barriers increases considerably.

People with money don’t want to loose money; ergo maintaining status quo are their main concern and priority.

One category of people is an exemption from such a classification. People who used all their money in pursuit of an idea, and gained an fortune, might not be fearful of the loss of money. There are few of these people, and they are hard to find. Because, once they have money, they very easily become those who don’t want to loose them.

This problem is called the monetary skepticism. If you were given a lot of money, a natural human feeling is the inherent distrust towards others. Some would say that this is not true, but distrust is stronger than trust, because lies are disguised as truth. Loosing money will be easier for the man who made them from nothing, than the man who got them through agonizing pain or inheritance.

The government – are they giving away money?

The main source of innovation is actually the government. If they understand the underlying problems, they also know that giving away money is the startup company’s asset. The implications of creating new technologies are a matter of money, and the assets available is not based on the famous expression “time is money”, but the opposite “money is time”.

In the development of new ideas and new solutions to old problems, it is vital to understand that inheritance of intellect does not exist. The one who solved one problem cannot tell the others that this is the solution. It is never the solution, but merely a great tool and platform for the new ideas. This is why monetary systems in many ways are opposing the foundation of inventions.

Money is a great tool in our society, but is it really generating innovations? Well, ….. maybe after surpassing all the barriers, a highly time-consuming endeavour.

If a company produce success based on knowledge, intelligence and problem-solving, they will ensure that those assets are available for all, or at least a much higher percentage. At some point such systems will be self-sustainable, unless someone think that they created the perfect machine, and believe that the world should inherit such stupidity.

These days we can clearly observe the stupidity of men, and by that it means us. I would hope that we understand that innovation, adaptation and problem-solving is needed more than ever, and for that purpose “the economy” probably need some innovation as well.

Inequality for all will never occur, because inheritance and imbalance does not exist in nature. Only adaptation!

Inheritance is the past, whereas innovation is adaptation!

 

The facts are not entirely clear, so it is up to you to investigate if Lean Startup is a good model for the process of innovation. It seems a bit far-fetched that efficient innovation is possible, but rather a corruption of the innovation process.

But who knows; everything is possible in a world of relativity and innovation!

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