18 November, 2013

1-1-14 value creation: The iteration cycle

You are probably familiar with this term. If not, I think you are familiar with the meaning:
It is the continuous development of anything to make it better

-         No one get the idea perfect, or convert it perfectly to a business model for the first time
-         You know of that idea that we are now the results of the choices we took during our life, and those tweaks and mistakes we made are part of us now
So is the business too, it works like this:
 Start point- wrong idea, better one, something I can start with, that will not work, adjust, crap, not so bad , add something, remove something, ………. – a finished product

So we can break down this iteration cycle to many steps:

1-    Observe: see what you learn, relax and see, take down notes and stuff
2-    Think: what can I do to make this better?
3-    Write: down your options
4-    Guess: what is my best option, you may ask, counsel, if you have something that you can show someone go and show him
5-    Decide: the steps to make this modification
6-    Take action: Just Do IT
7-    Measure: the effects (quantitatively and qualitatively), take feedbacks, comments as we talked about before
-         It may seem to be a long process, but we actually do this every day, it is like the mentality of any logical person
-         You just need to make sure that you get pass all these steps during the development of your idea
-         And it is a continuous process, you keep doing this even after the launching of your business
And a very important thing; the best way to do that:

The smaller changes you do, the faster you will ride this cycle, the more cycles you will do, and better results you will get
-         Speed is an asset here
-         The more quickly you learn how to fit your product with what the customers want, the quicker you will have this successful business model
Plus, the smaller the changes are, the less devastating they would be if it was a bad decision, and the easier to undo them

So the key here is to just keep doing small, fast changes all the time, and to think about and to write these changes as soon as they come your mind (N.B. ideas are usually very volatile, so you a permanent medium with you all the time :)

Again: don't forget to Observe, Think, Write, Guess, Decide, Do, Measure