Although the term "EdTech" is frequently used to refer to online education, this concept actually includes the entire collection of digital tools created to improve the effectiveness of the educational process.
You will be referred to as an edupreneur, or an entrepreneur in the field of edtech, if you have an entrepreneurial spirit and wish to use it to improve education.
There are sellers of electronic systems for educational institutions, training tools, VR simulators, platforms for corporate training, and other products on the market in addition to online schools, interactive courses, and educational applications. Related article: Corporate LMS: How It Drives Business Success.
Over the past few years, the lean startup methodology has gained popularity and is currently one of the most effective frameworks for starting a profitable company.
It's popularity is due to its ability to lower an entrepreneur's risk exposure.
Thousands of enterprises around the world, including family-run businesses, government agencies, and defense departments, have used this methodology.
Let's now examine the lean startup model's five steps.
Business Model Canvas
The Business Model Canvas, created by entrepreneur and co-founder of Strategyzer Alexander Osterwalder, is a visual representation of the 9 essential building blocks that serve as the foundation for all businesses. It is a guide to help business owners in creating and improving both new and old business models.
The 9 building blocks include:
- Customer Segments
- Value Propositions
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partners
You start by thinking about how each of the nine building elements relates to your business idea.
Consider the scenario when you have an idea for a new type of smartwatch. You should consider who would wear it. What makes it unique compared to other smartwatches? What makes it different in terms of value? What will the price be?
These questions are combined to generate a list of hypotheses. You must make a number of assumptions because you don't (yet) know the answers.
You can put these assumptions into logical groups using the business model canvas.
Formulating a Hypothesis
It's time to divide your hypotheses into three risk categories now that you have an understanding of what you believe to be "true" about your business idea.
The idea will be known to anyone who has studied design thinking.
They are, in descending order of significance:
Yes, it makes sense to investigate the theories that threaten your company the most.
The most crucial question to ask is, do clients even need what you're selling? Is it in demand?
If you are unable to identify this, your business model is invalid.
This examines potential risks associated with how interesting your idea is. Normally, you'll start by looking through the business model canvas's block describing your consumer segment.
Will customers be interested in the product? These clients are who?
Some examples are the following:
- "Women between the ages of 18 and 45 will be interested in our product"
- “Others want to buy stocks without employing a broker.”
- "Environmental sustainability is the most crucial consideration when buying a car."
The risks associated with the viability of your lean start up model are evaluated in the second layer of the hypothesis. In other words, realizing that it's worthwhile to find a solution even if you're just solving a client's problem.
Customer acquisition is another factor to take into account. Where will you find them? Is this a model that can last? Will it be profitable, too?
Some examples include:
- "Customers will be willing to pay (X) amount for our product"
- "Choosing a select group of customers to onboard will increase interest in the brand and product."
- “Because of our partnership with (X) brand, we can cut costs.”
The risks associated with our ability to provide your UVP should also be evaluated. Can you run the model and build the product? Do you possess the tools and abilities required? Related article: How Much Does it Cost to Develop an Educational App?
Obviously, the enterprise becomes much riskier if your solution calls for the development of entirely new capabilities (or in areas outside of your area of competence).
Examples of testable hypothesis include
- "We can produce (X) quantity of product by (Y) date."
- “By next year, our cars will be entirely autonomous.”
- “Field sales representatives will be able to report all of their data using their mobile phones.”
The Minimum Viable Product
The numerous basic revisions of your concept are the minimum viable product.
It's better to start small and see where student and educator demands will take you than to spend years developing an education technology product that will answer every known problem in education. In ten years, you won't need to predict how to react to those developments. You just need to figure out one minor issue. Related article: Top 5 Challenges for Edtech Startups and Solutions to Them.
Following the release of your minimum viable product, you will go through prototyping and pivots. Every MVP requires adjustments and revisions, thus you'll need to be adaptable and skilled in order to do it. You'll be happy you didn't spend all of your time planning when it happens. You'll have a product you can market by that point.
Developing Feedback Loops
It's time to find out what customers think after you've sold a few of them your MVP. You'll have some product validation, and that will help you decide what to do next: keep improving the product, build a business to sell it alongside, or both.
Feedback loops are frequently used by teachers, and they also work in EdTech companies. You'll require:
- constructive criticism that specific and purposeful,
- points toward making corrections, and
- allows for self-reflection.
The feedback you receive will help you identify the necessary adjustments.
Smart work is the core principle of lean start up methodology in education technology startups.
It is smart to start an education technology company one step at a time. You can effectively address some of the many urgent issues in education by accepting the trip. Related article: E-learning Websites: Types and Tips for Development.
You must focus on the stage of the process that needs it most right now. You shouldn't waste time making plans for things that might not happen.
Online education and other EdTech categories will continue to experience exponential growth over the next five years, according to experts and analysts from all over the world. So, implement a lean startup method in your business growth. The pandemic is just one of several global concerns driving the business toward change.
Thus, it is known that there will be two billion more school, university, and other educational institution graduates worldwide in 2050 than there are today. The educational system must cope with the growing workload from year to year meanwhile.
Contact us to learn how you can use EdTech to improve education in the world.