Last week, the New York Times published this great article detailing a fresh approach to creating new companies dubbed "Lean start-up." The companies that have initially embraced the method are Internet based -- "Free open-source programming tools and easily distributed Web-based software drive down the cost of developing new products and services."
Although the "Lean start-up" concept applies to both both product design and market penetration, the most important benefit is its early emphasis "and constant focus on customers." Eric Ries, who is credited in the article with coining the term Lean start-up, believes that the traditional start-up model can lead companies to invest too much in "one technology path and one business plan" -- thus, losing their ability to change and adapt to the market. Steven Blank, cited in the article as "serial entrepreneur," adds this very interesting definition: "A start-up is a temporary organization designed to discover a profitable, scalable business model."
I would surely appreciate hearing the reactions of Lean advocates and those involved in Lean initiatives to the points raised in this article.
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