The linear model starts with the idea/opportunity generation and flow through the different stages finalize the business plan, procure the needed funding, assemble the dream team, develop the product, introduce the product in market and finally evaluate success/failure.

The major disadvantage of this method is that there is no intermediate evaluation of the product’s relevance to the market and no validation of the initial assumptions till the product is introduced in the market. Any unexpected results in the market cannot be handled effectively as a major chunk of the raised finances is already consumed.

Hence, this model is more suited for a product that is already known and used in a financially viable market OR for established companies with validated and predictable business model.

With the passing of time; new, relevant and effective processes are replacing old business models. Lean Start-up method is being widely applied for start-ups.

Lean Start-up Method

Figure: Lean Start-up Method

1. Rather than engaging in months of planning and research, entrepreneurs accept that all they have on day one is a series of untested hypotheses—basically, good guesses. It also involves deciding which business model to adopt for the product.
2. Get out of the buildingapproach is also called customer development. This is used to test these hypotheses. Here, prospective customers’ views are collected on the product, customer requirements, pain points and desired pricing. The customers’ views are collected with only minimal talking by the marketing team. The customer is requested to express his views liberally and in detail.
3. Based on the customer feedback, MVP (Minimum Viable Product)is developed. This version of the product includes only the key features identified in the previous phase.
4. When the MVP is ready, product pricing is done. The decision of when to start charging the customer is entirely scenario based.
5. After the pricing process, the product is introduced into the market with proper distribution channels and strategies for affordable customer acquisition.
6. Pivoting is changing a fundamental part of the business model. It can be a simple pricing modification or a more complex action of re-packaging product; changing the sales channel OR target a different set of end users.

This cycle would repeat till the MVP is converted into a user-friendly final product.

There are many takeaways from this method

• Observe what is not working, Orient yourselves to the new facts, Decide which part of the business model needs change and Act decisively.
• Pivot quickly as it has a direct impact on the finances and success of the product.
• As customer feedback contributes majorly in the product development, Stealth Mode is declining in popularity.
• Emphasis on Brand Experience Over Brand Awareness
• Startup Metrics: Start-ups need metrics like Customer Lifecycle, Customer Acquisition Cost, Marketing Cost, Customer Lifetime Value, Monthly burn rate, Average selling price/order size.  Using large company financial tools may result in frustration and confusion. Startups need metrics to evaluate whether the business model adapted is worth scaling into a company

Here is a summary as comparison of both the methods:

Madhu S. Sastry

Madhu has been with Mauverick for 5 years. She currently heads the technical documentation vertical.

Madhu has over 12+ years of experience in development and technical writing. She was earlier a part of Accenture and has worked on Unix shell scripting, Core Java and J2EE technologies with domain expertise in telecom and Cyber security.

Madhu S. Sastry

Madhu has been with Mauverick for 5 years. She currently heads the technical documentation vertical.

Madhu has over 12+ years of experience in development and technical writing. She was earlier a part of Accenture and has worked on Unix shell scripting, Core Java and J2EE technologies with domain expertise in telecom and Cyber security.

Attack Extent

Why was the attack so successful?

• Cyber security awareness is very low. When attacked, the course of action is not known resulting in unchecked spread of the malware
• Until now, ransomware was regarded as a relatively rudimentary threat. It is usually spread through emails that are sent en masse to target unwary individuals. Attacks against organizations and businesses have been far lesser in number and impact. Until NOW!. Big organizations usually have sophisticated detection methods to prevent and contain infections. The version of WannaCry that spread so rapidly on Friday is different, however: its designers have supercharged it by using tools leaked by the most powerful cyber arsenal in the world — that owned by the US National Security Agency.
• It spread without exploiting user interactions – the EternalBlue exploit works over the Internet without requiring any user interaction. Since it strikes over networks, it can still wreak havoc inside a local network even with the killswitch active, as the killswitch needs the internet to work
• WannaCry exploits WINDOWS vulnerability (Windows 7 and XP in particular). WINDOWS is the most widely used OS across the globe as depicted below:

• Microsoft had released a patch to remove the vulnerability in March 2017. But apparently were not installed as needed.
• The reported incidents are far fewer than the actual numbers. A greater percent of the organizations and individuals use pirated version of the OS and attacks on such systems go unnoticed. India is the world’s third largest user of unlicensed software, especially Windows. A report by Kaspersky Lab, which was confirmed by a cyber-security analyst from Gartner, suggests that India is the third-largest source of WannaCry ransomware attacks.

The Future…

New variants of WannaCry have already been detected and many new variants can emerge

Prevention

• Use only genuine products – OS, anti-virus software
• Keep your system always updated. Any patch recommended by the providers needs to be installed automatically
• Take periodic and systematic backup of the data
• Be aware of the any suspicious activity in your system and network and take action immediately
• Report the incident to the local authorities to aid in malware containment if possible

References:

https://www.ft.com/content/af74e3f4-373d-11e7-99bd-13beb0903fa3

https://securelist.com/blog/research/78411/wannacry-faq-what-you-need-to-know-today/

http://www.popsci.com/time-to-start-thinking-about-how-to-survive-next-ransomware-attack

http://tech.firstpost.com/news-analysis/wannacry-ransomware-despite-govt-denials-experts-say-that-india-is-the-third-largest-source-of-attacks-376439.html

http://www.occurrencesforeigndomestic.com/tag/nsa/

http://techtrendske.co.ke/wannacry-ransomware-attack/

Madhu S. Sastry

Madhu has been with Mauverick for 5 years. She currently heads the technical documentation vertical.

Madhu has over 12+ years of experience in development and technical writing. She was earlier a part of Accenture and has worked on Unix shell scripting, Core Java and J2EE technologies with domain expertise in telecom and Cyber security.