A little summary of the second part of the book "The Lean Startup"

1. Ericksson González Reyes
IET 701
Summary
At its heart, a startup is a catalyst that transforms ideas into products. As
customers interact with those products, they generate feedback and data. The
feedback is both qualitative (such as what they like and don’t like) and
quantitative (such as how many people use it and find it valuable).
As in lean manufacturing, learning where and when to invest energy results in
saving time and money.
We can visualize this three-step process with this simple diagram:
The first step is to enter the Build phase as quickly as possible with a minimum
viable product (MVP). The MVP is that version of the product that enables a full
turn of the Build-Measure-Learn loop with a minimum amount of effort and the
least amount of development time.
If we’re building something that nobody wants, it doesn’t much matter if we’re
doing it on time and on budget. The method I recommend is called innovation
accounting, a quantitative approach that allows us to see whether our engine

2. Ericksson González Reyes
IET 701
tuning efforts are bearing fruit. It also allows us to create learning milestones,
which are an alternative to traditional business and product milestones.
When we enter the Measure phase, the biggest challenge will be determining
whether the product development exports are leading to real progress.
Remember, if we’re building something that nobody wants, it doesn’t much matter
if we’re doing it on time and on budget.
Finally, and most important, there’s the pivot. Upon completing the Build-
Measure-Learn loop, we confront the most difficult question any entrepreneur
faces: whether to pivot the original strategy or persevere. If we’ve discovered that
one of our hypotheses is false, it is time to make a major change to a new
strategic hypothesis.
All of the techniques in Part Two are designed to minimize the total time through
the Build-Measure-Learn feedback loop.
it’s essential that entrepreneurs understand the reasons behind a startup’s
growth. There are many value-destroying kinds of growth that should be avoided.
An example would be a business that grows through continuous fund-raising from
investors and lots of paid advertising but does not develop a value-creating
product.
Like its traditional counterpart, innovation accounting requires that a startup have
and maintain a quantitative financial model that can be used to evaluate progress
rigorously.
Three principles
 Mínimum Viable Product (MVP).
 Innovation Accounting.
 The Pivot.