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Software startups often make assumptions about the problems and customers they are addressing as well as the market and the solutions they are developing. Testing the right assumptions early is a means to mitigate risks. Approaches such as Lean Startup foster this kind of testing by applying experimentation as part of a constant build-measure-learn feedback loop. The existing research on how software startups approach experimentation is very limited. In this study, we focus on understanding how software startups approach experimentation and identify challenges and advantages with respect to conducting experiments. To achieve this, we conducted a qualitative interview study. The initial results show that startups often spent a disproportionate amount of time focusing on creating solutions without testing critical assumptions. Main reasons are the lack of awareness, that these assumptions can be tested early and a lack of knowledge and support on how to identify, prioritize and test these assumptions. However, startups understand the need for testing risky assumptions and are open to conducting experiments.
Creating new business models, products or services is challenging in fast changing unpredictable environments. Often, product teams need to make many assumptions (e.g., assumptions about future demands) that might not be true. These assumptions impose risks to the success and these risks need to be mitigated early. One of the principles of the Lean Startup approach is to identify and prioritize the riskiest assumptions in order to validate them as early as possible. This helps to avoid wasting effort and time. In the literature there are several different methods for identifying and prioritizing the riskiest assumptions reported. However, only little research exists about the practical application of these methods in practice and how to teach them. In this paper, we present and empirically analyze a workshop format that we have developed for teaching the prioritization of Lean Startup assumptions. We aim at raising the awareness for assumption thinking among the participants and teach them through group work how to prioritize assumptions. The results of the analysis of a multitude of conducted workshops show that the applied method did lead to reasonable results and accompanying learning effects. In addition, the participants got aware of assumption thinking and liked learning in a practical way.
Early reduction of risks in a startup or an innovation project is highly important. Appropriate means for risk reduction, such as testing business models with different kinds of experiments exist. However, deciding what to test and how to select the right test, is challenging for many startups and innovation projects. This article presents the so-called Business Experiments Navigator (BEN), a toolkit to assist startup and innovation processes. It compliments other tools such as the Business Model Canvas or the Lean Startup process. The main contribution of BEN is to bridge the gap between the riskiest assumptions of a business model and the multitude of available testing techniques by providing assumption templates. The Business Experiments Navigator has been validated in several workshops. Results show that it creates awareness among the workshop participants that a business model is based on assumptions which impose risks and need to be validated. Further, users of BEN were able to identify relevant assumptions and map different kinds of assumptions to appropriate testing techniques. The process applied in the workshops, as well as the assumption templates, helped the participants understand the main concepts and transfer their learnings, to their own business ideas.