Principles of lean:  Value is what the customer is willing to pay for.

It is
paramount to discover the actual or latent needs of the
customer.
 In identifying and mapping the value stream, the goal is
to use the customer’s value as a reference point and
identify all the activities that contribute to these values.
Activities that do not add value to the end customer are
considered waste.
 After removing the wastes from the value stream, the
following action is to ensure that the flow of the
remaining steps run smoothly without interruptions or
delays.
 Pull-based systems are always created from the needs of
the end customers. By following the value stream and
working backwards through the production system, you
can ensure that the products produced will be able to
satisfy the needs of customers.
 Pursuing perfection is the most important among them
all. It makes Lean thinking and continuous process
improvement a part of the organizational culture.
Origin of Lean Startup
Lots of Startup Many of them Fail Waste/Losers/Failures

 Time
 Inventory
 Movement/Motion
 Waiting
 Over Processing
Set of Principles, Practices and Tools  Over Production
 Defects

Help Managing Innovation

 Startup: A human institution designed to create a new product or service under conditions of extreme
uncertainty.
Lean Startup: Lean startup is an approach to building new businesses based on the belief that entrepreneurs
must investigate, experiment, test and iterate as they develop products.
Principles of Lean Startup
The five-step thought process for guiding the implementation of lean techniques is easy to remember,
but not easy to achieve
 Entrepreneurship is Management
Management = Bureaucracy Avoid Management and “Just do it” attitude

Need Management but different kind of management that supports extreme kind of uncertainty
 Validated Learning (Measure)
Production of “High-Quality Products” Validated Learning

Scientifically Validating each element of startup vision by running series of experiments

 What does it look like ? (Build-Measure-Learn)

Complete this
loop as quickly “We must learn what customers really want, not
as possible what they say they want or what we think they
should want.”
We must discover whether we are on a path that
will lead to growing a sustainable business.
 Measure Progress (Innovation Accounting)
Production of “High-Quality Products” Validated Learning

Scientifically Validating each element of startup vision by running series of experiments

Innovation Accounting
 Approach (Innovation Accounting)

Frequently
PRODUCT Based on Build-Measure-Learn cycle

Less Frequently
STRATEGY Based on Pivot or Persevere

VISION Rarely Changes

Always Remain Same
 Approach (Innovation Accounting)
User Research, Complex Plans, and
Flashy Launch

Persevere (when going in Right direction) or Pivot (when going in wrong direction)

Applicable only to startups??

Equally applicable to Enterprise Lean Startup Ecosystem

Small or large, Profit or Non profit Trying to create a new product or service
Commercial or Govt. Organisation under extreme uncertainty conditions.
 Entrepreneurs are Everywhere
Intrapreneurs Entrepreneurs
Everywhere

Entrepreneurs are trying to build a start-up inside an established organisation.

Lean Startup
To summarize:
 Incremental and Iterative
 Very short development cycle
 It is more adaptive than predictive

Pros: Complete this

 Helps to learn faster and build the right product loop as quickly
 Speed to Market as possible

Cons:
 May result in rework
 Requires you to experiment iteratively with users and clients

Use:
 Doubtful business case/user need
 Lots of high probability risks.
 Lean means cheap. Lean startups try to  The Lean Startup method is not about cost,
spend as little money as possible. it is about speed.
 The Lean Startup is only for Web  The Lean Startup applies to all companies
2.0/internet/consumer software that face uncertainty about what customers
companies. will want.
 Lean Startups are small bootstrapped  Lean Startups are ambitious and are able to
startups. deploy large amounts of capital.
 Lean Startups replace vision with data  Lean Startups are driven by a compelling
or customer feedback. vision, and are rigorous about testing each
element of this vision.
Lean is often implemented by large, established enterprise organizations to improve their current
manufacturing operation – whereas Lean Startup is more often a tool of small, entrepreneurial businesses (or
possibly an R&D department within a larger enterprise organization) developing new products.
Introduction to Entrepreneurship:
 Entrepreneurship is the ability and willingness to create, organize, and manage a business
enterprise, including all of its uncertainties, in order to earn profit.
 The most visible example of entrepreneurship is the establishment of new businesses.
 Entrepreneurship involving land, labor, natural resources, and capital can yield a profit.
 An entrepreneur is someone who establishes his own business as opposed to engaging in
any other economic activity, such as employment or practicing a profession.
 The process’s output is the business unit which is referred to as an Enterprise.
 Every country, whether it’s developed or developing, requires entrepreneurs, whereas a
developing country requires entrepreneurs to kickstart the development process, and a
developed country requires entrepreneurship to sustain it.
Definitions of Entrepreneurship:

“Entrepreneurship is the purposeful activity of an individual or a group of

associated individuals, undertaken to initiate, maintain or organise a profit-
oriented business unit for the production or distribution of economic goods and
services. – A.H.Cole

“Entrepreneurship is neither a science nor an art. It is a practice. It has a

knowledge base. Knowledge in entrepreneurship is a means to an end. Indeed,
what constitutes knowledge practice is largely defined by the ends, that is, by the
practice.” – Peter Drucker

Entrepreneurship involves a wide range of areas on which a series of decisions are required
which can be grouped into three categories –
 Perception of an opportunity
 Organizing an industrial unit and
 Running the industrial unit as a profitable, going and growing concern.
Characteristics of Entrepreneurship

Innovatio
n
The characteristics of entrepreneurship are as follows:
 Adaptability: Successful entrepreneurship requires continuous adaptation to the dynamic
business environment by closely analyzing and swiftly responding to both challenges and
opportunities.
 Systematic Activity: Entrepreneurship is a learned and deliberate process, dispelling the
myth that entrepreneurs are born rather than made, requiring acquired skills, knowledge, and
competency through education, training, observation, and work experience.
 Lawful and Purposeful Activity: The goal of entrepreneurship is to conduct legal business,
emphasizing the creation of value for personal and social gain while rejecting justifications
for illegal activities based on the inherent risk associated with entrepreneurship.
 Innovation : Entrepreneurship is the continual pursuit of creative ideas to enhance business
efficiency and effectiveness, aiming to generate value through innovation, whether by saving
costs, increasing revenue, or fostering a culture of continuous improvement.
 Organisation of Production: Entrepreneurial success in production hinges on adeptly
mobilizing and harmonizing land, labor, capital, and technology, rooted in strategic resource
awareness, thereby necessitating negotiation skills for optimal business outcomes.
 Risk taker: Entrepreneurship thrives on the willingness to embrace risk, driven by the
generation and implementation of speculative yet innovative ideas, with outcomes that are
uncertain and may not be immediate.
 Fintech
 Fintech is a new financial industry that applies technology to improve financial activities.
Moreover, fintech can also be considered as “any innovative ideas that improve financial
service processes by proposing technology solutions according to different business
situations”.
 Advances in e-finance and mobile technology for financial companies, which drove the
innovation of fintech, emerged after the global financial crisis in 2008.
 This development was characterized by integration in e-finance innovation, Internet
technology, social networking services, social media, artificial intelligence, and big analytic
data.
 This challenges many traditional financial institutions, such as banks, to develop their
business models in a more practical direction.
 In addition, start-ups saw this as an opportunity to enter the financial services industry. Two
types of start-ups are relevant, e-commerce and financial technology (fintech).
 Fintech is one of the most important innovations in the financial services industry and is
driven by economic sharing, regulation, policy, and information technology.
 Fintech Evolution

https://www.e-zigurat.com/en/blog/evolution-of-fintech/
 Innovation in Fintech Startup’s
Impact of cryptocurrencies and blockchain on FinTech startups.
Rise of neo banks and digital-only banks
Adoption of AI and machine learning in financial services
Growth of peer-to-peer lending and crowdfunding
Changes in financial regulation and their impact on FinTech startups
Integration of FinTech solutions with traditional banking institutions
Importance of cybersecurity in the financial technology industry
Increasing competition and consolidation in the FinTech space
https://aicontentfy.com/en/blog/future-of-fintech-startups

https://easternpeak.com/blog/top-fintech-startup-app-ideas/
What is Creativity?

Creativity is the act of turning new and imaginative ideas in to reality.

Creativity is characterized by the ability to perceive the world in new ways, to find
hidden patterns, to make connections between seemingly unrelated phenomena, and to
generate solutions.
Creativity involves two processes : Thinking, then Producing.
 Design Thinking
Origin of Design Thinking

Method of creative action

1991, Rolfe Faste
Design is a way of thinking IDEO: Commercial application
1969, Herbert Simon of Design Thinking
1991, David Kelley

What is Design Thinking ?

 It is a process of creative problem solving.
 Methodology for creative and practical wicked problem solving.

“Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to
integrate the needs of people, the possibilities of technology, and the requirements for business success.”
— Tim Brown, CEO of IDEO.

https://www.youtube.com/watch?v=gx-zPheFnHo
Steps in Design Thinking:
Design Thinking

Empathize:
Why?
 Prevent Bias/Filter
 They are not our problems
 Identify real problems

How?
 Go where users are
 Talk directly to customers and users
 Watch them work (or) work with them and
identify their plans, needs etc.,
Define:
Why?
 Keep Focus
 Define the target group & the real problem

How?
 Put everything you observed on board , share stories and Distil learning.
 Define the use/target group.
 Define/ Re-define the problem statement.
 Focus on one or few problems.
Ideation:
Why?
 Don’t lock-in too early (defer commitment , Amplify learning)
 Find innovative solution.

How?
 Come up with multiple solutions- Lots of them.
 Go beyond rational thinking.
 Two rules (a) Visualize (b) Don’t sit
 Select few.
Prototype & Test:
Why?
 Validating ideas (Quick & inexpensive)

How?
 Physical, interactive prototype
 Right Fidelity
 Prototype with defect is OK (main idea is to validate if it solves the problem)
 Don’t defend the idea (Note down and Move on)
Implement:
Why?
 To understand it real time !!

How?
 By entering market
 Follow the product
 Reach the customer
 Get back
Lean Startup with Design Thinking
Listing Assumptions:
 Collective Brainstorming (Cross functional)

 What are we assuming about our customers/users?

 What are we assuming about our solutions?

 What must happen for our solution to be successful after it is released?

* Will users engage in activities as we are expecting them to ?

* Will users recognize the value?

* Will users be able to use the solution?

* Will users have what they need to use the solution?

Classifying Assumptions:
 Two Dimensions
 Probability that it will be wrong
 Impact on our solution if it wrong

 Four Variations

 Low probability that it will be wrong, Low impact on solution

 Low probability that it will be wrong, High impact on solution

 High probability that it will be wrong, Low impact on solution

 High probability that it will be wrong, High impact on solution