Managing Your Innovation Pipeline

MANAGING YOUR INNOVATION PIPELINE http://www.ﬂickr.com/photos/carlchapman/1392728191/Steve Franks, Northeast Indiana Innovation Center 1

Coming up with ideasfor new products, services,or entire new business units ISN’T the problem. Finding the one that’s a game changer IS!Managing Your Innovation Pipeline,Northeast Indiana Innovation CenterAll rights reserved 2 http://www.fotopedia.com/items/ﬂickr-1393836032

1. Lean Startup 2. Pitching and Planning Business Model Validation Prepare for Investment What are your hypotheses? Make the business case Do customers and stakeholders agree with you? Be your own angel investor. Do they care? Be prepared to pitch investors. Day Month Year No. Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? For whom are we creating value? Who are our most important customers? High concept pitch Elevator pitch Presentation deck What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments Our Distribution Channels? Customer Relationships? want to be reached? Revenue Streams? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? [and Business Plan] What are the most important costs inherent in our business model? For what value are our customers really willing to pay? Which Key Resources are most expensive? For what do they currently pay? Which Key Activities are most expensive? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Naval Ravikant Steve Blank co-founder Venture Hacks Uses it in classes at Stanford Alexander Osterwalder Babak Nivi Invented this Business Model Canvas co-founder Venture HacksManaging Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved 3

The 9 Business Model Elements Day Month No. Year Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value? Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers? Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established? Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model? How costly are they? 1. Who are your target market segments? What are their “big wants”? Why will they scream with joy when they hear you are addressing that particular issue? What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments Our Distribution Channels? Customer Relationships? want to be reached? Revenue Streams? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? 2. Separately, what is your value proposition (product offering). Do they still scream when they hear what you are offering? What are the most important costs inherent in our business model? For what value are our customers really willing to pay? Which Key Resources are most expensive? For what do they currently pay? Which Key Activities are most expensive? How are they currently paying? 3. What kinds of relationships will be necessary with your customers? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? One on one and personal, automatic and hands off self service, etc.? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. 4. How will you reach them? How do they want to be reached? Your job: test each element! 5. Are any partners key to your success? 6. What activities do you have to excel at in order to be successful in this industry? The 3 Answers 7. What resources (like things and people) do you have to have in order to be successful in this industry? 1. What? Huh? That makes absolutely no sense at all. 8. How will you structure your revenue streams? Do your customers agree? 2. Well, yeah, that’s pretty close to what I see - but have you ever thought about .... 9. What are your major cost drivers? 3. Oh My God! I can’t believe you are doing this! Is it available? Can I have it now? Please?Managing Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved 4

Presentation Deck High concept pitch 1. 2. Cover. Logo, tagline, and contact information. Summary. Key, compelling facts - from your elevator pitch. Elevator pitch 3. Team. Past accomplishments. Include directors or advisors who bring something special. Presentation deck 4. Problem. Customer segment and their big want. 5. Solution. Your value proposition and offering, including a demo. “God help you if you have nothing to show.” [and Business Plan] 6. Technology. If appropriate. If you can prepare these 3 things, you can 7. Marketing. Who are the customers, and how many of them are there? How are you going to reach prospects and acquire prepare a business plan or executive customers? What traction do you already have summary. It’s the same information, just 8. Sales. Your business model. The micro view of a sale - what do you written differently! make in a typical transaction? What do you know that isn’t pure speculation about how you might grow a customer base? 9. Competition. Why will customers use your product instead of the competition’s? How do you know? How will you defend against High Concept Pitch competitors’ actions? A few words, Hollywood- style. “Snakes on a 10. Milestones. By quarter for the next 4 quarters. For your product, Plane”, “Flickr for Video”, “The Jefferson Pointe for team, marketing, sales, and gross burn (your expenses, assuming zero Entrepreneurs” revenue). 11. Conclusion. The vision of what the company could accomplish. 12. Financing. Previous funding, amount being raised in this round and Elevator Pitch how it will be used, equity deal offered (if appropriate). 4 elements: product and target customer, big want, traction, team’s credentials.Managing Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved 5

For ideas that have merit, send the champions off to validate a business model. For concepts that http://www.ﬂickr.com/photos/carlchapman/1392728191/ are validated, http://www.fotopedia.com/items/ send a team off to create and make an investment pitch.Managing Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved 6

Next Steps: http://www.ﬂickr.com/photos/good-karma/ Grow With: NIIC Corporate Incubation We guide you as you establish and operate your own on-site, private incubation program and grow by adding game-changing new products, services, or business units. • Weekly half-day meetings with your team. • 6-month or 12-month engagements. • Availability is limited to a maximum of 4 engagements at any time.Managing Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved 7

http://venturehacks.com http://steveblank.com/ http://niictools.com http://www.startuplessonslearned.com/ http://alexosterwalder.comManaging Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved 8

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