INNOVATION IN BUSINESS ENTREPRENEURSHIP MANUAL

MANUAL INNOVACIÓN EN EL EMPRENDIMIENTO EMPRESARIAL

Pivoting: this involves changing aspects of the business, product, marketing... depending on the results obtained in one of the cycles. Once the learning has taken place, it is time to decide what the next step will be. Pivoting has to do with changing and it is very common for a project to change (pivot) numerous times during its development, in such a way that what is finally developed is nothing like what was initially planned; but the success metrics obtained in each step will indicate that this "unexpected" final project is more appropriate than the preconceived idea (and untested in the market) that we initially had. This should not be confused with randomly changing things in the project at any time and without reasoning accompanied by business metrics. Pivoting is not about catering to whims, it is about making reasonable decisions after a full cycle from which valuable learning has been extracted for the project. In the Lean Startup method, learning from customers is paramount. This also appears in Steve Blank's Customer development and customer validation method. Customer development is a scientific approach valid for entrepreneurs and startups that helps products to succeed by improving knowledge about users and understanding them better. The virtue of Customer development is that it explains very well the different phases of the company and this situates the entrepreneur very well as to which phase he is in and which objectives he should focus on:

In this table we can see the phases in the creation of a company. The first two correspond to the experimentation part, where the entrepreneur's hypotheses have to be validated and are closely linked. Through the pivots, different cycles of both are carried out until they are validated and move on to the third and fourth phases. The last two cycles correspond to the "company" phase, where the company grows from the validated learning obtained in the first two phases.

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European Open Business School