Difference between validated learning and wastage? And how do you know beforehand?

To understand the difference between validated learning and wastage lets get the concept of each in our startup world.

Validated learning is a unit of progress process and describes learning generated by trying out an initial idea and then measuring it against potential customers to validate the effect. Each test of an idea is a single iteration in a larger process of many iterations whereby something is learnt and then applied to succeeding tests.

Production process activities that use more resources than necessary — taking resources to mean money, workers and available space — and which adds nothing to the product or service that the customer perceives as having value.

A core component of Lean Startup methodology is the build-measure-learn feedback loop. The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.

The startup will also utilize an investigative development method called the “Five Whys”-asking simple questions to study and solve problems along the way. When this process of measuring and learning is done correctly, it will be clear that a company is either moving the drivers of the business model or not. If not, it is a sign that it is time to pivot or make a structural course correction to test a new fundamental hypothesis about the product, strategy and engine of growth.

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