What is the VSP Pyramid and How Does It Improve the Business World?

Lean canvas is use to pursue tasks more precisely and to focus programs and goals. As the business world is turbulent and companies are forced to continue operating in an unstable situation,

tools such as the Lean Canvas and VSP pyramid that you will get to know will greatly help corporate executives.

While some business executives interpret the end product as a symbol of a successful business model, the reality is something else.

More precisely, the business model on which an entrepreneur works and produces a product is know as a strategic solution and strategy for the company.

 For this reason, the main task of CEOs and, of course, project managers is to gradually and systematically de-risk the business model that is to be implemented. Successful executives typically use the Vision-Strategy-Product pyramid.

 This pyramid allows entrepreneurs to divide their ideas into perspective, strategy, and product factors to gain a clearer perspective. What is the Outlook of Product Strategy and How to Help Entrepreneurs?

What is a Product Strategy Perspective VSP Pyramid?

Business ideas fail for a variety of reasons. The most important reason for a product failure is the failure of an entrepreneur to break an idea into the factors of vision, strategy and product.

Some entrepreneurs stop at the very top of the pyramid instead of classifying their idea, thinking that the idea is well-prepared and that it is time to market it. While Eric Rees takes a different view.

In The Lean Startup, he says, “The Vision-Strategy-Product Pyramid is one of the most important tools to outline lean startup methodology for companies.” Figure out Eric Reese’s propose pyramid to break an idea into smaller sections Gives.

The VSP pyramid is one of the most important conceptual frameworks for the holistic understanding, understanding, and proper use of the classical solutions that companies face.

 This pyramid is often overlooked, but it is undoubtedly one of the most powerful tools available to companies.

An in-depth understanding of the pyramid can help to understand all the key ideas, principles and tools of the pure startup methodology.

If you look at the history of the world of business and entrepreneurship, you will find that in the world of entrepreneurship, innovation and startups, lean startup methodology has quickly become the norm, as it has the capacity to accurately manage risky companies and innovative projects. .

This precise performance of the VSP pyramid has made it a standard that all companies recognize. The question some people ask is, basically, why aren’t companies using the Pyramid so much and some think it’s a low-performance tool?

The VSP Pyramid gives businesses a lean plan

The VSP pyramid emphasizes the vision and strategy for a number of businesses, reminiscent of traditional planning or the cascading business model, but note that business models are by no means static.

 “No business plan can claim to be successful on its first contact with a customer,” says Steve Blank. There are usually many changes around a business.

From a one-page business plan to a full-fledged business plan, many factors are changing. Companies should use business plans that are consistent with their project goals.

A traditional business plan is generally a proposal or report seeking answers to these three planning questions, “Where are you now?”

“Where do you plan to get?” And “What does it intend to do?” Look for a destination? ”Undoubtedly, this strategy is not in line with the modern world and needs to be reformed.

A business plan has tangible results for a company providing project pre-feasibility to provide a solution to a problem, as well as managing temporary project feasibility to align the product with the target market.

 A massive, data-driven business plan is only appropriate for one (technical) report, for example, a proposal, as well as estimating the financial needs and determining the size of a project for the right company.

It is best to avoid large business plans,

especially for a newly started business, because neither of the project’s temporary project feasibility and project pre-feasibility features can be implemented on a large business plan.

Try to put forward a business plan that aims to solve the problem and to match the market / product rather than implementing a raw proposal that will fuel a business idea.

 We always need a lean business plan that focuses on strategic strategies that strongly integrate ideas, build on principles, and be selected by strategic management tools.

 It’s best to use a Lean Plan. A plan that can provide a minimum product minimum based on traditional business or strategic planning.

In contrast to a traditional business plan, a lean plan focuses on the rapid development of a “winning strategy”. A design that can quickly deploy in small test units.

Figure 2 shows the pattern of a lean design based on Eric Reese’s proposed VSP pyramid model.

What are the features of a lean design?

Lean design has many uses, including quick breakdown of a business idea, facilitation of team alignment, and agile management of strategic execution plans. Figure 2 shows a robust integration with the Business Model Engine.

Business Model Engine is a dashboard to accelerate business design and performance improvements. Eric Rice has suggested three approaches for startups:

The Sticky Engine, The Viral Engine and The Paid Engine. A lean design can represent the minimal minimum of a growable canvas based on a dashboard. While the product is the visible part of the pyramid, the non-visible parts are still important.

 While development or manufacturing sectors are focused on the product, metrics, learning, and rotational activities focus on value and strategy. As a result, a lean design involves building, measuring, learning, and looping continuous feedback loops.

This circle is driven by following the process of building an ideal dashboard for the business model. Typically during the dashboard design, there may be several repetitions and rotations.

This is to ensure that the development of an ideal dashboard is in line with the project for which it is intending.

Based on the above definition, an ideal dashboard can deliver the value of work completed as quickly as possible based on the use of internal (or external) resources available (free) with minimal hassle (minimal or no cost) and maximum benefit (highest distinction).

Create, present and share positive performance, quality and emotional experience.
Note that successful business models are always inclined towards converged dashboards.

 Dashboards created based on the Ideal Final Result and based on TRIZ Innovative Problem Solving (TRIZ).

 All in all, the lean and pyramid scheme of the VSP has the potential to be used to generate, test and validate ideas, especially for the business model that startups use.

Dropbox is a clear example of this. This file-sharing company has a prominent position among companies today, well over a billion dollars.

What is a Lean Stack?

In the preceding paragraph, we examined how breaking down an idea based on the product perspective-strategy pyramid can help startups and entrepreneurs better understand the risks and opportunities.

 Now it’s time to talk a little about the lean stack. Lean stack is a set of tools used to implement lean startups individually or internally.

“When an idea comes to an entrepreneur, it’s usually just a signal,” says Eric Rice.

Entrepreneurs often fail to break down the idea into three components: vision, strategy, and product. In most cases, we overlook the highest component of the pyramid because we only love to have the product ready in advance.

 I use the driving metaphor to show you the combination of the pyramid and the lean stack.

”According to Rice’s metaphor, three components of the lean pyramid, which are essentially tools for lean stack design, are describes as follows:
Suppose you found a new job. Vision is your new workplace. Strategy describes all the ways forward and the tools you use to reach your workplace, such as bicycles, cars, public transport, and more.


you do not know which way to get to work, so you can test. Any change you make to the strategy means a spin. In this metaphor your product is the same recurring roadmap you used to get to your workplace.

Rice describes in the best and easiest way possible the idea of ​​designing a company. Be aware, however, that rotation means a change in strategy, without changing the vision or goals of the company. Each of the components that Rice refers to contains detailed details that we will briefly look at in this section.

Undoubtedly, this pyramid is not only a good mental model, but also capable of producing an efficient visual control system for any component. This is exactly what a lean stack needs.

Landscape layer – Lean canvas

The lowest layer of the lean stack is the landscape or what you do. The best tool for this is a pure canvas layer. We use Lean Canvas to document the best guesses for a business model that can do the job.

Strategy Layer – Risk Board and Strategy

The middle layer of the lean stack is used to attach two layers to each other. This layer allows us to break our big vision into a workable strategic plan.

This is for review existing successful and unsuccessful examples

and risk assessments with the involvement of the startup team, consultants and investors.

Product Layer – Valid Learning Board

The top layer of the lean stack is using to represent the work being

do to realize the vision of a finish product. This layer breaks the manufacturing process into four components.

 Be aware, however, that a product can only be in one of the following four steps at a time.

  • Understand the problem: You must understand the customer and the problem before offering a solution.
  • Solution Definition: Before going directly to a solution, first use a prototype to define the solution.
  • Qualitative Validation: The solution needs to be validate to a smaller size.
  • Quantitative Verification: At this point, the scalability and magnitude of the solution should be examined.

Document the experiments

While testing is in use, use the A3 reporting model provided by Toyota to document the tests. As the experiment is ongoing, the data under test should be entered to the left of the report.

When the experiment is complete, the columns for valid learning and next activity will be fill.

Last word
In this article, we briefly review two concepts of VSP pyramid and lean stack. Proper use of these tools for meticulously analyzing ideas will prevent many ideas from failing or even putting the wrong ideas into practice.

Leave a Reply

Your email address will not be published. Required fields are marked *