This is a continuation of Why Lean Startup Is Important #1
The rapid development of technology is disrupting industries one-by-one at an unprecedented pace. The expected time a company stays in the S&P 500 index has dropped from over 70 years in the 1920's to just 15 years today!
A product’s life cycle is becoming so short in some industries that we can talk about "instant obsolescence". Many companies generate the majority of their profits from products introduced over the last year or two.
This means one thing:
Companies need to create successful products and business models more quickly and cost efficiently than ever.
That's why Lean Startup is so important. It is a set of practices that allows us to bring new product idea to life both quickly and cost efficiently. It helps us to confirm the existence of a need and probe the market for our product.
Next post on Lean Startup: You Don't Understand Lean Startup.