Knowledge quiz

It’s time to put what you’ve learned to the test, get 8 questions right to pass this week.

How do you best test the viability of your business model?

Choose the correct answer.

Use a mix of experiments and lots of quick iterations.

There is no need to test at all.

Use iterative testing, but with one experiment only.

Use one experiment only and one time testing.

What are the 3 main components of the lean start-up principle applied in the test cycles?

Choose the correct answer.

Build – Measure – Learn

Build – Measure – Verify

Test – Verify – Rebuild

Verify – Learn – Build

What is the idea behind an MVP?

Choose the correct answer.

To build a cost-efficient ‘representation’ (prototype) of the assumed value proposition or other business model elements, which can be tested on the customer with regard to willingness to invest scarce resources

To build a variety of low-cost prototypes at the same time to find out which one attracts the customer the most

To build a beta version of the product that is as close as possible to the planned end product

To build a prototype including more features and functions than the envisaged end product in order to provide the end user with all possible alternatives.

What is the objective of the “Test & Verify” iteration type?

Choose the correct answer.

To reduce risk and uncertainties in your business model

To change one or many elements of the Business Model Canvas

To apply ideation methods to generate new ideas for your business model

To decide which of the many alternative business models to pursue

Which of the following is an example of an early MVP?

There are two correct answers.

Storyboard

Beta version of the anticipated product

Simple Web site / landing page

Sophisticated prototype

Which of the following best defines a Minimum Viable Product (MVP)?

Choose the correct answer.

Cost-efficient representations of the assumed value proposition, which can be tested on customers with regard to their willingness to invest scarce resources, e.g. time or money

Cost / revenue calculation based on the business model logic plus assumptions regarding addressable market, number of deals p.a., average deal size, average costs etc.

Description of how value is created, delivered, and captured

Standardized and “language” template for describing a business model

What is the meaning of the term “pivoting”?

Choose the correct answer.

To change one or many elements of your business model

To ideate on a challenge to your business model

To create a baseline for your business model, consisting of a network and an enterprise view

To define a hypothesis based on the most critical assumption in your business model

What of the following are a recommendations for testing an MVP?

There are three correct answers.

Consider cost-efficiency as opposed to expensive “quasi-commercialization”.

Develop and test the MVP within your team.

Use quick and multiple iterations of MVP experiments and leverage learnings.

Use non-actionable metrics for measurements.

Go ‘out of the building’ to test your MVP with customers and/or users.

When should you use an MVP?

Choose the correct answer.

At any time you want / have to test your most critical assumptions regarding the business model

Immediately after the baseline of your business model canvas (including the value proposition) is complete, to test your most critical assumptions regarding the business model

After the ‘analyze & improve’ phase, to test your most critical assumptions regarding the business model

After the ‘challenge & change’ phase, to test your most critical assumptions regarding business model elements and interplay

10.

What types of metrics should you try to use in order to measure your tests?

There are two correct answers.

Actionable metrics

Vanity metrics

Quantitative metrics

Fuzzy metrics