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The Downside of Applying Lean Startup Principles
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The Downside of Applying Lean Startup Principles

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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The Lean Startup is a bestselling business book by Eric Ries that has become a global revolution with followers in 17 countries . Its principles have been adopted by early-stage ventures, Fortune 500 companies and even the U.S. government. Its core principle is to test a “minimum viable product” early and gather information to further fine-tune development. The idea is to mitigate risk in the product development process. But there is a downside to early market testing, according to the research paper, “Experimentation, Learning and Appropriability in Early-Stage Ventures,” by Andrea Contigiani, a researcher at the Mack Institute for Innovation Management and a Wharton doctoral candidate. By releasing early versions of products, companies risk imitation by a competitor. He spoke to Knowledge at Wharton about when early market testing can hurt more than help. An edited transcript of the conversation follows. Knowledge at Wharton : Why did you choose this particular topic?…

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