Last month, we discussed Innovation Strategy and how market researchers can use this to develop an innovation strategy that has the potential to grow a business.
What is the Lean Canvas
The Lean Canvas is a tool adapted by Ash Maurya from the traditional Business Model Canvas.
The Lean Canvas is a simple tool that’s divided into 9 blocks that market researchers can use to help them plan new product development. The Lean Canvas replaces the traditional business plan and helps deconstruct new ideas, map out assumptions and highlight strengths, weaknesses and help new products have a high-level view of what needed to be done for market researchers to move forward.
3 reasons why you should use the lean canvas in your innovation strategy
1. Focus your product to solve a problem
The lean canvas prioritizes problem-solving. It’s crucial that new products are designed to solve the right problems. By making sure that problems are explicit, the lean canvas makes sure that everything pivots around the problem you’re trying to solve and the users using it.
2. Allows you to measure the success of your product
The lean canvas defines what the key metrics to success are by listing what the key numbers are that will be used to identify how the product is doing. These numbers can be profits margin, user acquisition, churn rate or any metric that can be used to determine success or failure.
3. Uses unfair advantage to differentiate your product in the market
An unfair advantage in the product is one of the key features of the lean canvas. An unfair advantage is a new and innovative, product, service, or method of delivery that competitors would struggle to replicate. The goal is to map out what your product can offer customers that no other product can. It is important to understand a strength that the competition does not have.
4 Key points when filling up the Lean Canvas
1. Fill in the problem & customers segments first
One of the best ways to fill up this canvas is to complete it from the outer parts first and the inner parts second. Get in your customers’ shoes and write down the problems that your product is solving and who the users of your product is. This sets up an excellent foundation for the rest of the canvas.
2. Take time to research early adopters
Early adopters are key to new and innovative products. For your product to succeed you must understand who the first customers will be to use it . This also relates to the people suffering the most from the problems identified that you want your product to solve.
4. Unfair advantage set you apart
Many things can provide you with an unfair advantage. This can range from specialized resources such as first-mover advantage, exclusive partnerships, and patents down to simple attributes such as speed, location, and experience. Find out what sets you apart that your competitor finds hard to replicate and use it.
Value Proposition is one of the most crucial blocks
Once you get towards the middle of the canvas, you’ll need to know what your value proposition is. It is the message to the customers on the value you will deliver to them, your brand promise and why buyers should choose your products or services over a vast range of products on the market.
Next month we talk about red ocean and blue ocean strategy and how to look in for the right settings for your products.