ITPEC IP October 2024 Question 85
Which of the following is a technique that increases the potential for success in the development of a new business model or product, by creating the minimum service or product on the basis of a hypothesis, and performing repeated verification of customer value in a short interval of times?
Explanation
Lean startup — building a minimum product from a hypothesis and verifying customer value in short cycles.
The lean startup method treats a business idea as a hypothesis, builds a minimum viable product (MVP) to test it, measures how real customers respond and learns from the result. This build–measure–learn loop repeats quickly, and after each round the team improves the product, pivots or stops, so little time and money is spent on things customers do not want.
Answer (d)
Why not others:
- •(a) Cannibalization — a company's new product eats into the sales of its own existing products; an effect to watch for, not a development technique
- •(b) Business operations modeling — describes business processes and data flows (for example with DFD or BPMN) to analyze them; no hypothesis testing with customers
- •(c) Digital transformation — broad change of business and organization using digital technology, not a specific method of iterative product validation
Key rule: Hypothesis, minimum viable product and short repeated validation with customers identify the lean startup.
Technological Strategy Management · AI-written, may contain errors
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