IPA FE Subject A sample Question 53

Build a minimum viable product quickly, then improve or pivot through a build–measure–learn loop — that is Eric Ries's lean startup.

The lean startup treats a new business idea as a hypothesis. A minimum viable product (MVP), just enough to test it, is built fast and put in front of real customers; their response is measured, and what is learned decides the next step: improve the product, or pivot to another direction. Repeating this loop in short cycles keeps the time and money spent on things customers do not want to a minimum.

Answer (d)

Why not others:

• •(a) — a detailed plan drawn up in advance on the strength of public subsidies is the opposite of starting small and testing; nothing in it learns from customers
• •(b) — pouring large resources into renewing a declining business is a turnaround or restructuring of an existing business, not a way to start a new one
• •(c) — strictly following a detailed plan and minimising verification and change rejects the very loop of measuring and changing course that defines the lean startup

Key rule: Lean startup = MVP + build–measure–learn + pivot: verify the hypothesis with customers early and often instead of executing a fixed plan.

Technological Strategy Management · AI-written, may contain errors