Importance of Lean Agile approach for a Start-up Project

Importance of Lean Agile approach for a Start-up Project

Start-up should always stay lean till it achieves breakeven as well as achieve product market fit. Agile methodologies strongly support the start up to stay lean, launch the product in batches to test its acceptance by the target audience and be able to make the right tweaks till the product is accepted by target consumer market.

Having a lean approach to the Start-ups is very fruitful because of Less mass: small teams so they’ll be multi-tasking and they can adapt to new change and good ideas by leaving the bas ones, Lower the cost of change: change tends to happen in the market. Hence investing less will allow them to new opportunities “Keep it small. Keep it simple. Let it happen”. –Andrew Hunt, The Pragmatic Programmers, Embraces the constraints: initially start-ups might face some issues, but they can work with what they have in store by Being True to themselves rather than copying someone with the methodologies or ideas. Nimble, agile, less-mass businesses can quickly change their entire business model, product, feature set, and marketing message (37signals, p. 28). 

 Key concepts of lean process improvement

Agile methods majorly focus on reducing risk and uncertainty and maximizing productivity for an enterprise. It also has enduring appeal and ‘proved’ itself in software development. Having an agile approach for a Start-ups is beneficial as it builds accountability, empowers various ideas, the scope of continuous improvement and gets feedbacks from tested decisions (Apm.org.uk, 2016). Lean principles connect with agile development in three concepts: Iterative Approach, Short feedback loops& disciplined project management process (LeanKit, 2017). Start-ups should think more realistically with their objectives and the market they are stepping in as the main aim is to be agile & deliver good.  Scrum framework is under agile methodologies that many Start-ups can adopt to always follow the road map they have created to achieve the desired goals.

It is important for business at all stages of starting up, growth or scale to follow lean agile methodologies to justify the use of all business resources with relevant returns from customer. Lean agile methodology helps business track, every penny spent and measure the returns, thus plan for future with better insights in hand. 

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BIBLIOGRAPHY-

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Getting Real by 37signals. (n.d.). [Online] Available at: https://basecamp.com/books/Getting%20Real.pdf.

Apm.org.uk. (2016). Why do you need agile in project management? | APM. [online] Available at: https://www.apm.org.uk/resources/find-a-resource/agile-project-management/why-do-you-need-agile-in-project-management/. [Online] [Accessed 25 Oct. 2019].

LeanKit. (2017). LeanKit. [online] Available at: https://leankit.com/learn/lean/lean-and-agile-development/.  [Accessed 8 Nov. 2019].

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Key concepts of lean process improvement  (2017). LeanKit. Available at: https://leankit.com/learn/lean/3-key-concepts-of-lean-process-improvement/. [Online]  [Accessed 25 Oct. 2019].

Peer Review on Jellies & Jaffas

Peer Review- on Cowley’s SOSTAC Model of Marketing on online start-up ‘Jellies & Jaffas’

SOSTAC Model of marketing by Smith is an upgradation to “SWOT Analysis” consisting of six stages. It is applied to many online start-ups to make the process streamlined. The same has been applied to one of the cases- ’Jellies & Jaffas’, below are some findings for the same. 

SOSTAC Model of Marketing

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  SITUATION ANALYSIS - Company must know who they are, who are they targeting, who are their real customers. Once a company can answer these questions for then the main task is to know “where they are?” in this market. Knowing yourself (company) is important to know your competitors in the market.

• OBJECTIVE- Objective of any business firm, fulfil the demands of the customer, earn revenue and make major profits to sustain in the market, educating users about the brand, building the brand reputation, identifying and valuing the targeted customer.

• STRATEGY- Companies should determine their target market and then split it in a specific way. The planned strategy should deliver what the product/ service is all about either through websites or through the channels.

• TACTICS- Once a company is satisfied with the marketing plan, they must bring certain plan to it. These tactics will not only help them retain their customers but also attract new ones.

• Action & Control- How to proceed, who’ll do it, will it be daily, weekly or monthly practice are some questions that a company will be able to answer with the help of KPI’s and Metrics.

’Jellies & Jaffas’

• They analysed their situation and took the hybrid approach. Findings for them was first focus on their product (logo, packaging, quality, stronger B2B relationship) and then to their web marketing strategies (website communication, e-marketing campaigns, social media branding and much more). Moreover, they should also have certain metrics to track their desired KPI’s (Cowley, 2016). Their marketing template show, to success a market plan all the factors; demographic, geographic and psycho-graphic behavior of the consumer needs to be taken into consideration (Cowley, 2016). They are perfect example, to understand various tactics a company opts combining social media marketing tactics to marketing operations. Scheduler and dashboards are some perfect examples to action on and control with.

To put it in a nutshell, the SOSTAC Model of marketing is important but also time and cost consuming. Big companies will certainly not have an issue, but small companies might face a problem with it. 

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Bibliography:

Text:

Cowley, M. (2016), “Jellies & Jaffas’”: Applying PR Smith’s SOSTAC Marketing Model to an Online Confectionery Start-Up, online available at:

https://www.researchgate.net/publication/315488492_'Jellies_Jaffas'_Applying_PR_Smith's_SOSTAC_Marketing_Model_to_an_Online_Confectionery_Start-Up. (Accessed: 19 October 2019)

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SOSTAC Model of MARKETING (2019). How to write a digital marketing plan tailored to your audience and platform. [online] Available at: https://www.marketingmag.com.au/hubs-c/sostac-digital-marketing-plan-acm/.  [Accessed 19 Oct. 2019].

Target the connected customer

It is important to know your target customer to succeed in this market with high competition. Marketers should identify and understand who to target and how to engage them. Demographic, psychographic, behavioral & interest are ways to segment and organize the consumer. However, the aim is to observe the best users and prioritize them.

According to Emesto Sosa, “with the rise of the mobile connected consumer, the growing penetration of new technologies and a purchasing process reinvented through social collaboration, retailers face a more challenging, complex environment affected by a complete disruption of the traditional retail business model” (Sosa, 2015). Offering so much access to consumers over the internet have given them the freedom to choose from various options just by a “touch”. The usage of the devices (Smartphones, Laptops, Tablets) are also influencing their behavior to some extent.

Online shopping: offer services people need to interact with

Digital trends are influencing the way consumers behave because internet is allowing them to always stay connected.  The biggest example is Social Media (Google, Facebook, Instagram, Twitter, WhatsApp).

Post Demographics is an old-fashioned approach of segmenting consumers which is now replaced by Valuegraphics. “Valuegraphics shows how to understand, reach, and motivate your target audiences more effectively and efficiently” (Carroll, no year). This can be done by knowing their interests, hobbies and how they behave online which will give the insights from social media as well to benefit the company in the market.

Values companies are adopting to target connected customer

“Technology can make or break the customer for a brand”. Company should be more open to go over digital platforms but only to the target audience to smooth out the whole process which will benefit them in terms of higher revenues and more loyalty. Other options are:

• Search Intent- Track what a person is searching

• Interest-based- What is their interest in specific

• Targeting through email- Personalized mails  

• Advertisement based- Offering ads on Facebook, Instagram and many more sites

One major aspect is Retaining your existing consumer rather than seeking new ones as their loyalty towards the company will recruit more consumers automatically.

The focus which was earlier on product is now shifted to the consumer because of STP. According to marketer; targeting the right audience based on the criteria size, money, should be accessible; then positioning the product with great planning post knowing where your competition is, and which segment will benefit them the most will help them stand out in the market.

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Bibliography

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1) Online shopping: offer services people need to interact with. The future of retail. [online] Available at: https://www.telegraph.co.uk/business/business-reporter/future-retail-services-survey/.  [Accessed 13 Oct. 2019].

2) Values companies are adopting to target connected customer. Core Values Mission Integrity Value Icon Stock Vector (Royalty Free) 728810740. [online] Available at: https://www.shutterstock.com/image-vector/core-values-mission-integrity-value-icon-728810740.  [Accessed 13 Oct. 2019].

Text:

 1) Dorion Carroll, no year, Valuegraphics Home. [online] Available at: https://valuegraphics.com/.  [Accessed 13 Oct. 2019].

2) Emesto Sosa, 2015.  The Rise of the Connected Consumer and What it Means for the Retail Industry. [online] Available at: https://elearning.dbs.ie/pluginfile.php/991673/mod_resource/content/1/The%20Connected%20Consumer.pdf.  [Accessed 13 Oct. 2019].

Road map to track your performance in order to achieve the desired goal.

KPI’s & METRICS

First step towards achieving company’s goal is to make right goals, which are monthly, quarterly and then device the right processes, people and strategy. The process of setting up specific goals to get profits for their business can only be done with the help of a road map.

Key Performance Indicator (KPI) is a measurable value for the company to set u the key business objective. KPI is driven from top to bottom which is defined at a high level for overall business and further bifurcated in different departments below is one of the examples.

KPI Examples for various departments

 KPI is important for a company to envision its growth and anticipate how the future is going to be for them. Also, setting up KPI’s will make the employees focus on the goals and track their performances accordingly.

To take the company towards growth they must have a great strategy as to what the goal is, how to plan the path for it and lastly who will lead it. KPI should be SMART- Specific, Measurable, Attainable, Relevant and Time-bound. Also, the company should make sure that the KPI they have achieved can be Evaluated and Re-evaluated when needed.

Outcome of wrong KPI: Ontario’s Plan to Eliminate homeless didn’t work because it was a hollow plan; (Peder Enchorning, 2014) ongoing problem was not specified; no time frame was given and what actions need to be taken were missing. Referencing this for hollow plan

KPI Analysis with KPI Karta is the solution for the majority of the companies as what to take into consideration while forming the KPI and what to ignore. (KPI Analysis).  

METRICS is the process of tracking the marketing campaigns in the company to reach its goals.

To illustrate further on this, A web marketing manager will analyse the company’s growth with the help of big data, after comparing it from the heaps of past dat and finally get to a conclusion which metrics should be used to make it to their desired goal.

Not all Metrics are good, the one that is Comparative, Understandable, have Ratio, Rate, can improve company’s strategy based on the KPI it is devised, what is required in web marketing.  

KPI Dashboard Templates are required to see the performance and track on the metrics. 

Various examples of KPI Dashboard

To put it all in a nutshell, KPI is the business goal and metric is the process to track and provide data on the performance. Both are completely different from each other. Every KPI is a metric but not all metric is a KPI.

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BIBLIOGRAPGY:

1) Visix. (2019). KPI Examples for 10 Teams | Free Infographic | Visix Digital Signage. [online] Available at: https://www.visix.com/resources/infographics/kpi-examples-for-ten-teams/ [Accessed 6 Oct. 2019].

2) Rhythmsystems.com. (2019). 5 Reasons Why You Need The Right KPIs (Infographic). [online] Available at: https://www.rhythmsystems.com/blog/5-reasons-why-you-need-kpis-infographic[Accessed 6 Oct. 2019].

3) Enchorning, P (2014). ‘Well Defined Goals & KPIs Critical to Succeed’. Unilytics: better in Sight by Design. [online] Available at: https://unilytics.com/well-defined-goals-kpis-critical-to-succeed/.  [Accessed 6 Oct. 2019].

4) KPI Analysis: KPI Analysis with KPI Karta (no date). Unilytics: better insight by design. [online] Available at: https://unilytics.com/kpi-analysis/.  [Accessed 6 Oct. 2019].

5) ClearPoint Strategy. (2019). KPI Dashboard Template | ClearPoint Strategy. [online] Available at: https://www.clearpointstrategy.com/dashboards/kpi-dashboard-template/ [Accessed 6 Oct. 2019].

6) Klipfolio.com. (2019). Marketing Dashboards. [online] Available at: https://www.klipfolio.com/resources/dashboard-examples/marketing [Accessed 6 Oct. 2019].

7) OnStrategy. (2019). KPIs vs Metrics – Tips & Tricks to Performance Measures. [online] Available at: https://onstrategyhq.com/resources/kpis-vs-metrics-tips-tricks-to-performance-measures/ [Accessed 6 Oct. 2019].

8) Types of metric Image: self made