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Demolishing the Status Quo in Entrepreneurial Education<br />
I Write a Blog  <br />www.steveblank.com<br />
This Talk is Based On<br />Business Model Generation<br />Four Steps to the Epiphany<br />The Lean Startup<br />
This Talk<br />What’s a Startup?<br />Search versus Execution<br />Entrepreneurship As a Mgmt Science<br />B-Schools = Lar...
First -What’s A Startup?<br />Six Types of Startups<br />
Startup<br />Lifestyle Startups Work to Live their Passion<br /><ul><li>Serve known customer with known product
Pay for their passion</li></li></ul><li>Small Business<br />Startup<br />Small Business StartupsWork to Feed the Family<br...
Feed the family</li></li></ul><li>Small Business<br />Startup<br />Exit Criteria<br /><ul><li> Business Model found</li></...
Feed the family</li></li></ul><li>Small Business<br />Startup<br />- Business Model found<br />- Profitable business<br />...
99.7% of all companies
~ 50% of total U.S. workers</li></ul>http://www.sba.gov/advo/stats/sbfaq.pdf<br />
Scalable<br />Startup<br />Large Company<br />Scalable Startup<br />Search<br />Goal is to solve for:<br />  unknown custo...
Execute<br />Search<br />Scalable<br />Startup<br />Large Company<br />Exit Criteria<br /><ul><li> Business model found
 Total Available Market > €300m
 Can grow to €50/year</li></ul>Scalable StartupBorn to Be Big<br />
Scalable<br />Startup<br />Large Company<br /><ul><li> Total Available Market > $500m
 Company can grow to $100m/year
 Business model found
 Focused on execution and process
 Typically requires “risk capital”</li></ul>Scalable Startup<br />Execute<br />Search<br /><ul><li> In contrast a scalable...
 Typically needs risk capital
 What Silicon Valley means when they say “Startup”</li></li></ul><li>The Transition – Founders Leave<br />Scalable<br />St...
 Professional Mgmt
 Process
 Beginning of scale</li></li></ul><li>Buyable StartupBorn to Be Big<br />Search<br />Sell<br />Scalable<br />Startup<br />...
Buyable Startup<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to e0M Acquisition<br />Goal is to solve for:<br ...
Scalable<br />Startup<br />Large Company<br /><ul><li>Business Model found
 i.e. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />What’s A Startup?<br />Search <br />...
Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Innovation<br />Transition<br />Scalable<br />Sta...
Known product feature needs</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Transition<br />L...
New tech, customers, channels</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Transition<br /...
Acquire</li></ul>      - IP- Talent<br />      - Product<br />      - Customers<br />      - Business<br />
Large Non-Profit<br />Social Startup<br />Social Entrepreneurship Startups<br /><ul><li>Solve pressing social problems
Social Enterprise: Profitable
Social Innovation: New Strategies</li></li></ul><li>Each of these startups require different skills<br />They Can Not Be T...
Search Versus ExecutionWhy Accountants Don’t Run Startups<br />
Startups Search and Pivot<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Com...
 Repeatable sales model</li></ul>- Managers hired<br />
Startups Search, Companies Execute<br />The Execution of the Business Model<br />The Search for the Business Model<br />Sc...
 Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />
Metrics Versus Accounting<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<b...
 Cash Flow Statement
 Income Statement</li></li></ul><li>Metrics Versus Accounting<br />The Search for the Business Model<br />The Execution of...
 Viral coefficient
 Customer Lifetime Value
 Average Selling Price/Order Size
 Monthly burn rate
 etc.  </li></ul> Traditional Accounting<br /><ul><li> Balance Sheet
 Cash Flow Statement
 Income Statement</li></li></ul><li>Customer Validation Versus Sales<br />The Execution of the Business Model<br />Scalabl...
 Scalable
 Price List/Data Sheets
 Revenue Plan</li></li></ul><li>Customer Validation Versus Sales<br />The Search for the Business Model<br />The Execution...
 Pricing/Feature unstable
 Not yet repeatable
“One-off’s”
 Done by founders</li></ul>Sales<br /><ul><li> Sales Organization
 Scalable
 Price List/Data Sheets
 Revenue Plan</li></li></ul><li>Customer Development VersusProduct Management<br />The Execution of the Business Model<br ...
 Feature Spec’s
 Competitive Analysis
 Prod Mgmt driven</li></li></ul><li>Customer Development Versus Product Management<br />The Search for the Business Model<...
 Feature Spec’s
 Competitive Analysis</li></ul>Customer Development<br /><ul><li> Hypothesis Testing
 Minimum Feature Set
 Pivots
 Founder-driven</li></li></ul><li>Engineering Versus Agile Development<br />The Execution of the Business Model<br />Scala...
 Waterfall Development
 QA
 Tech Pubs</li></li></ul><li>Engineering Versus Agile Development<br />The Search for the Business Model<br />The Executio...
 Waterfall Development
 QA
 Tech Pubs</li></ul>Agile Development<br /><ul><li> Continuous Deployment
 Continuous Learning
 Self Organizing Teams
 Minimum Feature Set
 Pivots</li></li></ul><li>Startups Model, Companies Plan<br />The Execution of the Business Model<br />Scalable<br />Start...
 Known features for line extensions
 Known customers/markets
 Known business model</li></li></ul><li>Startups Model, Companies Plan<br />The Search for the Business Model<br />The Exe...
 Unknown feature set
 Unknown business model
 Model found by iteration
Plan describes “knowns”
 Known features for line extensions
 Known customers/markets
 Known business model</li></li></ul><li>Startups Are Not Small Versions of Large Companies<br />Scalable<br />Startup<br /...
Entrepreneurship as a Management Science<br />E-School instead of B-School<br />
Business as a Management Science<br /><ul><li> 1601 East India Company
300 years of companies without MBA credentials
1908 Harvard first MBA</li></li></ul><li>Business School Topics<br />Business School<br />Scalable<br />Startup<br />Trans...
 Strategy
 Accounting
 Products
 Engineering
 Management
Administration</li></li></ul><li>Business School Courses<br />Business School<br />Scalable<br />Startup<br />Transition<b...
 Managing Groups and Teams
 Financial Accounting
 Operations
 Modeling for Optimization
 Global Value Chain Strategies</li></li></ul><li>B-School Results?<br /><ul><li>U.S. corporations went from local to natio...
Cadre of experienced managers to match
Experts on finance and growth (Dupont/GM)</li></ul>B-Schools made the 20th Century the American business century<br />
Business School Focus on Large Company StrategiesExecution versus Search<br />
Business School Limitations<br /><ul><li>Most Professors consult for large corporations
Most believe startups are just smaller versions of large companies
Most B-school entrepreneurship programs are side-shows</li></li></ul><li>Irony:21st Century Job Growth will Come from New ...
Incubators a Reaction to the lack of  Practical University Entrepreneurship<br /><ul><li>  1959  Josephy Mancuso - Batavia...
1996 IdeaLab
2005 Y-Combinator
2011 100+ Incubators world-wide</li></li></ul><li>Startup Incubators <br /><ul><li>Hands-on (experience vs. theory)
 Goal: create a company and jobs
 Full-time residential, stipend-based program
 Curriculum: product development + best practices</li></li></ul><li>What’s Missing?A Repeatable Methodology Not Just War S...
Startups Are Not Smaller Versions of Large Companies<br />Large Companies Execute Known Business Models<br />
Startups Are Not Smaller Versions of Large Companies<br />Startups Search for Unknown Business Models<br />
E-School <br /><ul><li>Complete curriculum with Hands-on emphasis
 Goal: methodology for startup creation
 Can be taught anywhere
 University
 Incubator
 Remotely
 Curriculum: about the search for a business model</li></li></ul><li>The Business Model:<br />Any company can be described...
CUSTOMER SEGMENTS<br />which customers and users are you serving? <br />which jobs do they really want to get done?<br />
VALUE PROPOSITIONS<br />what are you offering them? what is that <br />getting done for them? do they care?<br />
CHANNELS<br />how does each customer segment want to be reached? through which interaction points?<br />
CUSTOMER RELATIONSHIPS<br />what relationships are you establishing with each segment? personal? automated? acquisitive? r...
REVENUE STREAMS<br />what are customers really willing to pay for? how? <br />are you generating transactional or recurrin...
KEY RESOURCES<br />which resources underpin your business model? which assets are essential?<br />
KEY ACTIVITIES<br />which activities do you need to perform well in your business model? what is crucial?<br />57<br />
KEY PARTNERS<br />which partners and suppliers leverage your model? <br />who do you need to rely on?<br />
COST STRUCTURE<br />what is the resulting cost structure? <br />which key elements drive your costs?<br />
value proposition<br />customer relationships<br />key activities<br />customer segments<br />key partners<br />cost struc...
sketch out your business model<br />
sketch out your business models<br />
But,Realize They’re Hypotheses<br />
9 Guesses<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />
Customer Development<br />The founders<br />^<br />Get Out of the Building<br />
Customer DevelopmentThe Search For the Business Model<br />Company<br />Building<br />CustomerDiscovery<br />CustomerValid...
Customer Discovery<br />CustomerDiscovery<br />CustomerValidation<br />Company<br />Building<br />CustomerCreation<br />St...
Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competition</li></ul>Turning Hypotheses to Facts<br />
Test Hypotheses:<br /><ul><li>Problem
 Customer
 User
 Payer</li></li></ul><li>Test Hypotheses:<br /><ul><li>Channel</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Crea...
 Customer
 User
 Payer</li></ul>Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
 (Customer)
 (Problem)</li></ul>Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Size of Opportunity/Market
 Validate Business Model</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></li></ul><li>Test Hypotheses:...
 Customer
 User
 Payer</li></ul>Agile Development<br />Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
 (Customer)
 (Problem)</li></ul>Customer Development Team<br />Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><u...
 Validate Business Model</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></li></ul><li>The Minimum Viab...
The Pivot<br /><ul><li>The heart of Customer Development
Iteration without crisis
Fast, agile and opportunistic</li></li></ul><li>Pivot Cycle Time Matters<br /><ul><li>Speed of cycle minimizes cash needs
Minimum feature set speeds up cycle time
Near instantaneous customer feedback drives feature set</li></li></ul><li>The Pivot<br />A Pivot is the change of one or m...
The Pivot<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Developm...
How Does This Really Work?Stanford Lean LaunchPad Class<br />
How Does This Really Work?Stanford Lean LaunchPad Class<br />8 Weeks From an Idea to a Business<br />
Pivot ExampleRobotic Weeding<br />Talked 75 Customers in 8 Weeks<br />
Our initial plan<br />Confidential<br />
20 interviews, 6 site visits…We got OUR Boots dirty<br />Weeding<br />Visited two farms in Salinas Valley to better unders...
White Farms, Large Peanut farmer in Georgia
REFCO Farms, large grower in Salinas Valley
Rincon Farms, large grower in Salinas Valley
Small Organic Corn/Soy grower in Nebraska
Heirloom Organics, small owner/operator, Santa Cruz Mts
Two small organic farmers at farmers market
Ag Services of Salinas, Fertilizer applicator</li></ul>Mowing<br />Interviewed:<br /><ul><li>Golf: Stanford Golf course
Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
Toro dealer (large mower manufacturer)
User of back-yard mowing system
Maintenance Services for City of Los Altos
Colony Landscaping (Mowing service for stadiums)</li></li></ul><li>Business Plan Autonomous Vehicles for Mowing & Weeding<...
Found weeding in organic crops is HUGE problem; 50 - 75% of costs<br />Crews of 100s-1000<br />Back-breaking task<br />(Il...
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Aalto demolish the status quo in entrepreneurial education 090511

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Transcript of "Aalto demolish the status quo in entrepreneurial education 090511"

  1. 1. Demolishing the Status Quo in Entrepreneurial Education<br />
  2. 2. I Write a Blog <br />www.steveblank.com<br />
  3. 3. This Talk is Based On<br />Business Model Generation<br />Four Steps to the Epiphany<br />The Lean Startup<br />
  4. 4. This Talk<br />What’s a Startup?<br />Search versus Execution<br />Entrepreneurship As a Mgmt Science<br />B-Schools = Large company mgmt<br />Incubators = the transition<br />E-School = the conclusion<br />
  5. 5. First -What’s A Startup?<br />Six Types of Startups<br />
  6. 6. Startup<br />Lifestyle Startups Work to Live their Passion<br /><ul><li>Serve known customer with known product
  7. 7. Pay for their passion</li></li></ul><li>Small Business<br />Startup<br />Small Business StartupsWork to Feed the Family<br /><ul><li>Serve known customer with known product
  8. 8. Feed the family</li></li></ul><li>Small Business<br />Startup<br />Exit Criteria<br /><ul><li> Business Model found</li></ul>- Profitable business<br /><ul><li> Existing team</li></ul>< €100K in revenue<br />Small Business StartupsWork to Feed the Family<br /><ul><li>known customer known product
  9. 9. Feed the family</li></li></ul><li>Small Business<br />Startup<br />- Business Model found<br />- Profitable business<br /><ul><li> Existing team</li></ul>< $10M in revenue<br />Small Business Startups<br /><ul><li>5.7 million small businesses in the U.S. <500 employees
  10. 10. 99.7% of all companies
  11. 11. ~ 50% of total U.S. workers</li></ul>http://www.sba.gov/advo/stats/sbfaq.pdf<br />
  12. 12. Scalable<br />Startup<br />Large Company<br />Scalable Startup<br />Search<br />Goal is to solve for:<br /> unknown customer and unknown features <br />
  13. 13. Execute<br />Search<br />Scalable<br />Startup<br />Large Company<br />Exit Criteria<br /><ul><li> Business model found
  14. 14. Total Available Market > €300m
  15. 15. Can grow to €50/year</li></ul>Scalable StartupBorn to Be Big<br />
  16. 16. Scalable<br />Startup<br />Large Company<br /><ul><li> Total Available Market > $500m
  17. 17. Company can grow to $100m/year
  18. 18. Business model found
  19. 19. Focused on execution and process
  20. 20. Typically requires “risk capital”</li></ul>Scalable Startup<br />Execute<br />Search<br /><ul><li> In contrast a scalable startup is designed to grow big
  21. 21. Typically needs risk capital
  22. 22. What Silicon Valley means when they say “Startup”</li></li></ul><li>The Transition – Founders Leave<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Build<br />Execute<br />Search<br />Founders depart<br /><ul><li> Operating executives
  23. 23. Professional Mgmt
  24. 24. Process
  25. 25. Beginning of scale</li></li></ul><li>Buyable StartupBorn to Be Big<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to 30M Acquisition<br />Goal is to solve for:<br /> Internet, Mobile, Gaming Apps<br />
  26. 26. Buyable Startup<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to e0M Acquisition<br />Goal is to solve for:<br /> Internet and Mobile Apps<br />Sell to larger company<br />
  27. 27. Scalable<br />Startup<br />Large Company<br /><ul><li>Business Model found
  28. 28. i.e. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />What’s A Startup?<br />Search <br />Execute<br />A Startup is a temporary organization used to search for a repeatable and scalable business model <br />
  29. 29. Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Innovation<br />Transition<br />Scalable<br />Startup<br />Large Company<br /><ul><li> Existing Market / Known customer
  30. 30. Known product feature needs</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Transition<br />Large Company<br />Disruptive Innovation<br /><ul><li>New Market
  31. 31. New tech, customers, channels</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Transition<br />Large Company<br />Disruptive Innovation<br /><ul><li>Build
  32. 32. Acquire</li></ul> - IP- Talent<br /> - Product<br /> - Customers<br /> - Business<br />
  33. 33. Large Non-Profit<br />Social Startup<br />Social Entrepreneurship Startups<br /><ul><li>Solve pressing social problems
  34. 34. Social Enterprise: Profitable
  35. 35. Social Innovation: New Strategies</li></li></ul><li>Each of these startups require different skills<br />They Can Not Be Taught the Same Way<br />
  36. 36. Search Versus ExecutionWhy Accountants Don’t Run Startups<br />
  37. 37. Startups Search and Pivot<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br /> Business Model found<br /><ul><li> customer needs/product features found</li></ul> i.e. Product/Market fit<br /><ul><li>Found by founders, not employees
  38. 38. Repeatable sales model</li></ul>- Managers hired<br />
  39. 39. Startups Search, Companies Execute<br />The Execution of the Business Model<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />- Cash-flow breakeven<br />- Profitable<br />- Rapid scale<br />- New Senior Mgmt<br />~ 150 people<br /><ul><li>Business Model found
  40. 40. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />
  41. 41. Metrics Versus Accounting<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Traditional Accounting<br /><ul><li>Balance Sheet
  42. 42. Cash Flow Statement
  43. 43. Income Statement</li></li></ul><li>Metrics Versus Accounting<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Startup Metrics<br /><ul><li> Customer Acquisition Cost
  44. 44. Viral coefficient
  45. 45. Customer Lifetime Value
  46. 46. Average Selling Price/Order Size
  47. 47. Monthly burn rate
  48. 48. etc. </li></ul> Traditional Accounting<br /><ul><li> Balance Sheet
  49. 49. Cash Flow Statement
  50. 50. Income Statement</li></li></ul><li>Customer Validation Versus Sales<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Sales<br /><ul><li>Sales Organization
  51. 51. Scalable
  52. 52. Price List/Data Sheets
  53. 53. Revenue Plan</li></li></ul><li>Customer Validation Versus Sales<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Customer Validation<br /><ul><li> Early Adopters
  54. 54. Pricing/Feature unstable
  55. 55. Not yet repeatable
  56. 56. “One-off’s”
  57. 57. Done by founders</li></ul>Sales<br /><ul><li> Sales Organization
  58. 58. Scalable
  59. 59. Price List/Data Sheets
  60. 60. Revenue Plan</li></li></ul><li>Customer Development VersusProduct Management<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br /> Product Management<br /><ul><li> Delivers MRD’s
  61. 61. Feature Spec’s
  62. 62. Competitive Analysis
  63. 63. Prod Mgmt driven</li></li></ul><li>Customer Development Versus Product Management<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br /> Product Management<br /><ul><li> Delivers MRD’s
  64. 64. Feature Spec’s
  65. 65. Competitive Analysis</li></ul>Customer Development<br /><ul><li> Hypothesis Testing
  66. 66. Minimum Feature Set
  67. 67. Pivots
  68. 68. Founder-driven</li></li></ul><li>Engineering Versus Agile Development<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Engineering<br /><ul><li> Requirements Docs.
  69. 69. Waterfall Development
  70. 70. QA
  71. 71. Tech Pubs</li></li></ul><li>Engineering Versus Agile Development<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Engineering<br /><ul><li> Requirements Docs.
  72. 72. Waterfall Development
  73. 73. QA
  74. 74. Tech Pubs</li></ul>Agile Development<br /><ul><li> Continuous Deployment
  75. 75. Continuous Learning
  76. 76. Self Organizing Teams
  77. 77. Minimum Feature Set
  78. 78. Pivots</li></li></ul><li>Startups Model, Companies Plan<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Business Plan<br /><ul><li>Plan describes “knowns”
  79. 79. Known features for line extensions
  80. 80. Known customers/markets
  81. 81. Known business model</li></li></ul><li>Startups Model, Companies Plan<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Business Model<br /><ul><li> Unknown customer needs
  82. 82. Unknown feature set
  83. 83. Unknown business model
  84. 84. Model found by iteration
  85. 85. Plan describes “knowns”
  86. 86. Known features for line extensions
  87. 87. Known customers/markets
  88. 88. Known business model</li></li></ul><li>Startups Are Not Small Versions of Large Companies<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Build<br />Execute<br />Search<br />Yet our curriculums assume they are – we teach that the knowledge is interchangeable<br />
  89. 89. Entrepreneurship as a Management Science<br />E-School instead of B-School<br />
  90. 90. Business as a Management Science<br /><ul><li> 1601 East India Company
  91. 91. 300 years of companies without MBA credentials
  92. 92. 1908 Harvard first MBA</li></li></ul><li>Business School Topics<br />Business School<br />Scalable<br />Startup<br />Transition<br />Large Company<br /><ul><li>Execution
  93. 93. Strategy
  94. 94. Accounting
  95. 95. Products
  96. 96. Engineering
  97. 97. Management
  98. 98. Administration</li></li></ul><li>Business School Courses<br />Business School<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Courses<br /><ul><li>Managerial Finance/Accounting
  99. 99. Managing Groups and Teams
  100. 100. Financial Accounting
  101. 101. Operations
  102. 102. Modeling for Optimization
  103. 103. Global Value Chain Strategies</li></li></ul><li>B-School Results?<br /><ul><li>U.S. corporations went from local to national then international
  104. 104. Cadre of experienced managers to match
  105. 105. Experts on finance and growth (Dupont/GM)</li></ul>B-Schools made the 20th Century the American business century<br />
  106. 106. Business School Focus on Large Company StrategiesExecution versus Search<br />
  107. 107. Business School Limitations<br /><ul><li>Most Professors consult for large corporations
  108. 108. Most believe startups are just smaller versions of large companies
  109. 109. Most B-school entrepreneurship programs are side-shows</li></li></ul><li>Irony:21st Century Job Growth will Come from New Ventures<br />
  110. 110. Incubators a Reaction to the lack of Practical University Entrepreneurship<br /><ul><li> 1959 Josephy Mancuso - Batavia Industrial Ctr.
  111. 111. 1996 IdeaLab
  112. 112. 2005 Y-Combinator
  113. 113. 2011 100+ Incubators world-wide</li></li></ul><li>Startup Incubators <br /><ul><li>Hands-on (experience vs. theory)
  114. 114. Goal: create a company and jobs
  115. 115. Full-time residential, stipend-based program
  116. 116. Curriculum: product development + best practices</li></li></ul><li>What’s Missing?A Repeatable Methodology Not Just War Stories<br />
  117. 117. Startups Are Not Smaller Versions of Large Companies<br />Large Companies Execute Known Business Models<br />
  118. 118. Startups Are Not Smaller Versions of Large Companies<br />Startups Search for Unknown Business Models<br />
  119. 119. E-School <br /><ul><li>Complete curriculum with Hands-on emphasis
  120. 120. Goal: methodology for startup creation
  121. 121. Can be taught anywhere
  122. 122. University
  123. 123. Incubator
  124. 124. Remotely
  125. 125. Curriculum: about the search for a business model</li></li></ul><li>The Business Model:<br />Any company can be described in 9 building blocks<br />
  126. 126. CUSTOMER SEGMENTS<br />which customers and users are you serving? <br />which jobs do they really want to get done?<br />
  127. 127. VALUE PROPOSITIONS<br />what are you offering them? what is that <br />getting done for them? do they care?<br />
  128. 128. CHANNELS<br />how does each customer segment want to be reached? through which interaction points?<br />
  129. 129. CUSTOMER RELATIONSHIPS<br />what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?<br />
  130. 130. REVENUE STREAMS<br />what are customers really willing to pay for? how? <br />are you generating transactional or recurring revenues?<br />
  131. 131. KEY RESOURCES<br />which resources underpin your business model? which assets are essential?<br />
  132. 132. KEY ACTIVITIES<br />which activities do you need to perform well in your business model? what is crucial?<br />57<br />
  133. 133. KEY PARTNERS<br />which partners and suppliers leverage your model? <br />who do you need to rely on?<br />
  134. 134. COST STRUCTURE<br />what is the resulting cost structure? <br />which key elements drive your costs?<br />
  135. 135. value proposition<br />customer relationships<br />key activities<br />customer segments<br />key partners<br />cost structure<br />revenue streams<br />key <br />resources<br />channels<br />60<br />images by JAM<br />
  136. 136. sketch out your business model<br />
  137. 137. sketch out your business models<br />
  138. 138. But,Realize They’re Hypotheses<br />
  139. 139. 9 Guesses<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />Guess<br />
  140. 140. Customer Development<br />The founders<br />^<br />Get Out of the Building<br />
  141. 141. Customer DevelopmentThe Search For the Business Model<br />Company<br />Building<br />CustomerDiscovery<br />CustomerValidation<br />Customer Creation<br />Pivot<br />
  142. 142. Customer Discovery<br />CustomerDiscovery<br />CustomerValidation<br />Company<br />Building<br />CustomerCreation<br />Stop selling, start listening<br />Test your hypotheses<br />Continuous Discovery<br />Done by founders<br />
  143. 143. Test Hypotheses:<br /><ul><li>Product
  144. 144. Market Type
  145. 145. Competition</li></ul>Turning Hypotheses to Facts<br />
  146. 146. Test Hypotheses:<br /><ul><li>Problem
  147. 147. Customer
  148. 148. User
  149. 149. Payer</li></li></ul><li>Test Hypotheses:<br /><ul><li>Channel</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><ul><li>Problem
  150. 150. Customer
  151. 151. User
  152. 152. Payer</li></ul>Test Hypotheses:<br /><ul><li>Product
  153. 153. Market Type
  154. 154. Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
  155. 155. (Customer)
  156. 156. (Problem)</li></ul>Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Size of Opportunity/Market
  157. 157. Validate Business Model</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><ul><li>Problem
  158. 158. Customer
  159. 159. User
  160. 160. Payer</li></ul>Agile Development<br />Test Hypotheses:<br /><ul><li>Product
  161. 161. Market Type
  162. 162. Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
  163. 163. (Customer)
  164. 164. (Problem)</li></ul>Customer Development Team<br />Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Size of Opportunity/Market
  165. 165. Validate Business Model</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></li></ul><li>The Minimum Viable Product (MVP)<br /><ul><li> Smallest feature set that gets you the most …</li></ul> - orders, learning, feedback, failure…<br />
  166. 166. The Pivot<br /><ul><li>The heart of Customer Development
  167. 167. Iteration without crisis
  168. 168. Fast, agile and opportunistic</li></li></ul><li>Pivot Cycle Time Matters<br /><ul><li>Speed of cycle minimizes cash needs
  169. 169. Minimum feature set speeds up cycle time
  170. 170. Near instantaneous customer feedback drives feature set</li></li></ul><li>The Pivot<br />A Pivot is the change of one or more Business Model Canvas Components <br />
  171. 171. The Pivot<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />A Pivot is the change of one or more Business Model Canvas Components <br />Leading doctors<br />Key Opinion Leaders<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Capital Equipment Sales and disposable item<br />Per use fees<br />
  172. 172. How Does This Really Work?Stanford Lean LaunchPad Class<br />
  173. 173. How Does This Really Work?Stanford Lean LaunchPad Class<br />8 Weeks From an Idea to a Business<br />
  174. 174. Pivot ExampleRobotic Weeding<br />Talked 75 Customers in 8 Weeks<br />
  175. 175. Our initial plan<br />Confidential<br />
  176. 176. 20 interviews, 6 site visits…We got OUR Boots dirty<br />Weeding<br />Visited two farms in Salinas Valley to better understand problem<br />Interviewed:<br /><ul><li>Bolthouse Farms, Large Agri-Industry in Bakersfield
  177. 177. White Farms, Large Peanut farmer in Georgia
  178. 178. REFCO Farms, large grower in Salinas Valley
  179. 179. Rincon Farms, large grower in Salinas Valley
  180. 180. Small Organic Corn/Soy grower in Nebraska
  181. 181. Heirloom Organics, small owner/operator, Santa Cruz Mts
  182. 182. Two small organic farmers at farmers market
  183. 183. Ag Services of Salinas, Fertilizer applicator</li></ul>Mowing<br />Interviewed:<br /><ul><li>Golf: Stanford Golf course
  184. 184. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
  185. 185. Toro dealer (large mower manufacturer)
  186. 186. User of back-yard mowing system
  187. 187. Maintenance Services for City of Los Altos
  188. 188. Colony Landscaping (Mowing service for stadiums)</li></li></ul><li>Business Plan Autonomous Vehicles for Mowing & Weeding<br />Dealers sell, installs and supports customer<br />Co. trains dealers, supports dealers<br />- Innovation<br />- Customer Education<br />- Dealer training<br />Mowing<br />- Owners of public or commercially used green spaces (e.g. golf courses)<br />- Landscaping service provider<br />Weeding<br />- Farmers with manual weeding operations<br />We reduce operating cost<br />- Labor reduction<br />- Better utilization of assets (eg mow or weed at nights)<br />- Improved performance (less rework, food safety)<br />- Dealers (Mowing and Ag)<br />- Vehicle OEMs (John Deere, Toro, Jacobsen, etc)<br />- Research labs<br />- Mowing Dealers<br />- Ag Dealers<br />Engineers on Autonomous vehicles, GPS, path-planning<br />Asset sale<br />Our revenue stream derives from selling the equipment<br />Dealer discount <br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />
  189. 189. Found weeding in organic crops is HUGE problem; 50 - 75% of costs<br />Crews of 100s-1000<br />Back-breaking task<br />(Ilegal) labor harder to get <br />1-5 weedings per year/field<br />$250-3,500 per acre and increasing<br />Food contamination risk<br />
  190. 190. Decision to make – mowing vs weeding<br />
  191. 191. Autonomous vehiclesWEEDING<br />Dealers sell, installs and supports customer<br />Co. trains dealers, supports dealers<br />- Innovation<br />- Customer Education<br />- Dealer training<br />- Low density vegetable growers<br />- High density vegetable growers<br />- Thinning operations<br />- Conventional vegetables<br />We reduce operating cost<br />- Labor reduction (100 to 1)<br />- Reduced risk of contamination<br />- Mitigate labor availability concerns<br />- Ag Dealers<br />- Ag Service providers<br />- Research labs<br />- Ag Dealers<br />- Ag Service providers<br />Engineers on Machine Vision<br />Two problems:<br />- Identification<br />- Elimination<br />Asset sale<br />Our revenue stream derives from selling the equipment<br />Dealer discount <br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />
  192. 192. 1 Week – 1 CarrotBot<br />Confidential<br />
  193. 193. CarrotBot<br />Machine Vision data collection platform<br />Monochrome & Color Cameras<br />Laser-line sweep (depth measurement)<br />Encoders (position/velocity)<br />Onboard data acquisition & power<br />CarrotBot 1.0<br />
  194. 194. The Business Plan Canvas Updated<br /><ul><li>Farming conventions.
  195. 195. Demo, demo, and demo!!
  196. 196. Proximity is paramount
  197. 197. Technology Design
  198. 198. Marketing
  199. 199. Demo and customer feedback
  200. 200. Organic Farmers
  201. 201. Weeding Service Providers
  202. 202. Conventional Farmers
  203. 203. Cost Reduction
  204. 204. Remove labor force pains
  205. 205. Eliminate bio-waste hazards
  206. 206. Research Labs
  207. 207. Equipment Manufacturers
  208. 208. Distribution Network
  209. 209. Service Providers
  210. 210. IP – Patents
  211. 211. Video Classifier Files
  212. 212. Robust Technology
  213. 213. Dealers
  214. 214. Direct Service
  215. 215. Indirect Service
  216. 216. … then Dealers
  217. 217. Asset Sale
  218. 218. Direct Service with equipment rental
  219. 219. … then Asset Sale</li></ul>Value-Driven<br />
  220. 220. Visit Highlights<br />Above: Organic Carrots, 7wks. <br />Top right: Conventional carrots<br />Bottom Right: Very weedy. Will require multiple passes of hand weeding<br />
  221. 221. Visit Highlights<br />Carrot vs. Weeds<br />Due to small root systems, carrots have no chance against weeds <br />
  222. 222. Visit Highlights<br />Organic Broccoli, closely cultivated. Weeds close to plants are hand-picked<br />
  223. 223. Visit Highlights<br />State of the Art in Weeding Technology for Organic Crops<br />
  224. 224. Customer Hypothesis<br />Pre-Test<br />Hypothesis Confirmed<br /><ul><li> Growers interested in own equipment
  225. 225. Industrial (10,000s of acres)
  226. 226. Large (1,000s of acres)
  227. 227. Willing to pay $100k for one unit
  228. 228. Smaller growers (100s of acres) usually subcontract the labor services or rent equipment
  229. 229. All purchases through local dealers
  230. 230. Customer service is essential</li></ul>Post-Test<br />
  231. 231. Customer Map #1 – Industrial Growers<br />Example: Bolthouse Farms – Large Industrial Carrot Producer – 8K acres/yr<br /><ul><li> Equipment Operator
  232. 232. Local Farm Mgr
  233. 233. Cliff Kirkpatrick, visited
  234. 234. Director, Ag Technology
  235. 235. Justin Grove, interviewed</li></ul>Equipment Operator<br /><ul><li> VP, Growing Operations
  236. 236. CFO, CEO (Jeff Dunn)</li></ul>Cliff, Farm Mgr<br />
  237. 237. Customer Map #2 – Service Providers<br />Example: Ag Services – Service Provider, Salinas Valley<br /><ul><li> Equipment Operator
  238. 238. Grower
  239. 239. Service Mgr</li></ul>Me (left), Marty (middle, Service Mgr), Doug (right, Grower)<br /><ul><li> ?? (service mgr’s boss)</li></li></ul><li>The Business Plan Canvas Updated<br /><ul><li>Farming conventions.
  240. 240. Demo, demo, and demo!!
  241. 241. Proximity is paramount
  242. 242. Technology Design
  243. 243. Marketing
  244. 244. Demo and customer feedback
  245. 245. Mid/Large Organic Farmers
  246. 246. Agricultural corporations
  247. 247. Weeding Service Providers
  248. 248. Mid/Large Conventional Farmers
  249. 249. Cost Reduction
  250. 250. Remove labor force pains
  251. 251. Eliminate bio-waste hazards
  252. 252. Research Labs
  253. 253. Equipment Manufacturers
  254. 254. Distribution Network
  255. 255. Service Providers
  256. 256. IP – Patents
  257. 257. Video Classifier Files
  258. 258. Robust Technology
  259. 259. Direct Service
  260. 260. Indirect Service
  261. 261. … then Dealers
  262. 262. Direct Service with equipment rental
  263. 263. ($1,500/d; 120d/yr )
  264. 264. Low density: $1,500/d
  265. 265. High density: $6,000/d</li></ul>Value-Driven<br />
  266. 266. World Ag Expo interviews:the need is real and wide spread<br />10+ interviews at show<br />Everyone confirmed the need<br />Robocrop, UK based, crude competitor sells for $171 K<br />Revenue Stream<br />Mid to small growers prefer a service<br />Large growers prefer to buy, but OK with service until technology is proven<br />Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)<br />Confidential<br />
  267. 267. The Business Plan Canvas Updated<br /><ul><li>Farming conventions.
  268. 268. Demo, demo, and demo!!
  269. 269. Proximity is paramount
  270. 270. Technology Design
  271. 271. Marketing
  272. 272. Demo and customer feedback
  273. 273. Mid/Large Organic Farmers
  274. 274. Agricultural corporations
  275. 275. Weeding Service Providers
  276. 276. Mid/Large Conventional Farmers
  277. 277. Research Labs
  278. 278. Equipment Manufacturer
  279. 279. Distribution Network
  280. 280. Service Providers
  281. 281. 2 or 3 Key Farms
  282. 282. Cost Reduction
  283. 283. Remove labor force pains
  284. 284. Eliminate bio-waste hazards
  285. 285. IP – Patents
  286. 286. Video Classifier Files
  287. 287. Robust Technology
  288. 288. Direct Service
  289. 289. Indirect Service
  290. 290. … then Dealers
  291. 291. Direct Service with equipment rental
  292. 292. Low density: $1,500/d
  293. 293. High density: $6,000/d</li></ul>Value-Driven<br /><ul><li> R&D
  294. 294. Bill of Materials
  295. 295. Training & Service
  296. 296. Sales</li></li></ul><li>Autonomous weeding - Final<br />Direct<br />- Provide high quality service at competitive price<br />- Innovation<br />- Customer Education<br />- Dealer training<br />- Low density vegetable growers<br />- High density vegetable growers<br />- Thinning operations<br />- Conventional vegetables<br />We reduce operating cost<br />- Labor reduction (100 to 1)<br />- Reduced risk of contamination<br />- Mitigate labor availability concerns<br />- Ag Service providers<br />- Research Institutes (eg UC Davis, Laser Zentrum Hannover)<br />- 3-4 key farms<br />Direct <br />- Alliance with service providers<br />- Eventually sell through dealers<br />Engineers on Machine Vision<br />Two problems:<br />- Identification<br />- Elimination<br />Service provision<br />- Charge by the acre with modifier according to weed density <br />- Eventually move to asset sale<br />Costs for service provision<br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />
  297. 297. MammOptics<br />Final project presentation for E 245 Winter 2011<br />
  298. 298. MammOptics<br />Initial Idea<br />Breast cancer<br />Mammography<br />Leading cause of cancer in women<br />190,000 diagnosis every year US<br />41,000 deaths every year US<br />Increasing diagnosis rates<br />15%-25% false negatives rate<br />25% false positives rate<br />Requires X-ray radiation<br />Low resolution<br />MammOptics<br />Novel technology based on RF-modulated optical spectroscopy<br /><ul><li> Earlier detection
  299. 299. Non-radiative
  300. 300. Non-invasive</li></li></ul><li>MammOptics<br />Technology Comparison<br />I.I.T.Y.I.W.H.T.K.Y<br />
  301. 301. MammOptics<br />Business Model Canvas 1 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Hospitals<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Pioneering radiologists in<br />hospitals<br />Radiation-free<br />Earlier detection<br />Non-invasive<br />IP <br />Leading doctors<br />Technical Expertise<br />Direct sales to hospitals<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital equipment sales and disposable item<br />
  302. 302. MammOptics<br />MammOptics<br />Business Model Canvas 1 of 4<br />Business Model Canvas 1 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Initial guess<br />Initial guess<br />Hospitals<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Pioneering radiologists in<br />hospitals<br />Radiation-free<br />Earlier detection<br />Non-invasive<br />Test:<br /> Customer segment<br /> Value proposition<br />Initial guess<br />IP <br />Leading doctors<br />Technical Expertise<br />Direct sales to hospitals<br />Product Development<br />Clinical trials<br />Operating Costs<br />Initial guess<br />Capital equipment sales and disposable item<br />
  303. 303. Finding the right customer<br />From radiologists to gynecologists<br />
  304. 304. MammOptics<br />Excursions into hospitals<br />Debra Ikeda<br />Jason Davies<br />Jafi Alissa Lipson<br />Sunita Pal<br />Leading doctors<br />6 women >40 <br />8 women <40<br />Patients<br />Alicia X-ray mammography<br />Technicians<br />Hospital Managers<br />Paul Billings<br />Holly V. Gautier<br />
  305. 305. MammOptics<br />Hospital purchasing decision tree<br />
  306. 306. MammOptics<br />Hospital purchasing decision tree<br />Hospitals<br />Complex purchasing decision tree. Several saboteours<br />
  307. 307. MammOptics<br />Private practice purchasing decision tree<br />
  308. 308. MammOptics<br />Private practice purchasing decision tree<br />Private practice<br />Faster adoption rate<br />Attractive value proposition<br />✔<br />
  309. 309. MammOptics<br />Business Model Canvas 2 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Hospitals (Capital Spending Committee)<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Research Hospitals<br />Pioneering Doctors<br />Hospitals<br />OB/GYNs<br />PCPs<br />Direct Sales to doctors<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital Equipment Sales and disposable item<br />
  310. 310. MammOptics<br />Business Model Canvas 2 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Hospitals (Capital Spending Committee)<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Research Hospitals<br />Pioneering Doctors<br />Hospitals<br />OB/GYNs<br />PCPs<br />How do we get to our customer?<br />Need sensitivity and specificity<br />Direct Sales to doctors<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital Equipment Sales and disposable item<br />
  311. 311. Getting to our customer<br />The world of direct sales and medical marketing<br />
  312. 312. MammOptics<br />Interviews<br />Breast Cancer Advocacy Groups<br />Be Bright Pink<br />Jennifer Glover<br />Dr. Cindy Woo<br />Dr. Jags Powers<br />Dr. Aaron Shuvkan<br />OB/GYNs<br />Katrina Bell<br />Tanay Dudhela<br />Jed Hwang<br />Medical Sales<br />FDA/Clinical Trials<br />Phyllis Whitely<br />Carl Simpson<br />
  313. 313. MammOptics<br />Marketing<br />
  314. 314. MammOptics<br />Marketing<br />Strong influence on doctors via ACOG Standard of Care<br />Strongly influenced by KOLs<br />Access to ACOG by former member<br />
  315. 315. MammOptics<br />Marketing<br />Researchers with strong peer recommendations<br />Researchers conducting important clinical trials<br />Outsourced survey research<br />Researchers with numerous publications<br />
  316. 316. MammOptics<br />Marketing<br />Focus on prominent journals <br />Need two big publications<br />Choose KOL as Principal Investigators (PI)<br />
  317. 317. MammOptics<br />Marketing<br />Effective method for educating doctors<br />Workshop must be approved by ACOG<br />Doctors required to attend workshops<br />Taught by objective medical experts<br />
  318. 318. MammOptics<br />Marketing<br />ACOG Annual Clinical Meeting <br />Opportunity for feedback from doctors<br />Miami Breast Cancer Conference <br />
  319. 319. MammOptics<br />Marketing<br />Trusted information source for patients<br />Access to media outlets<br />Critical opinion leader for technology adoption<br />
  320. 320. MammOptics<br />Channel Strategies and Costs<br />Individual<br />Doctors<br />High value medical products<br />(e.g. cardiovascular stents)<br />Direct Sales<br /><ul><li>Doctor education
  321. 321. Direct feedback from doctors
  322. 322. Very expensive</li></ul>Individual Doctors<br />Purchasing Administrators<br />Purchasing Administrators<br />Commodity medical products<br />(e.g. latex gloves)<br />Distributors<br /><ul><li>No doctor education
  323. 323. No customer feedback
  324. 324. Inexpensive</li></li></ul><li>MammOptics<br />Channel Strategies and Costs<br />Sales strategy 1<br />Sales strategy 2<br />5 dedicated sales people<br />$150,000 each/year<br />Hire nurses or technicians<br />with established<br />relationships<br />Early adopter feedback<br />Continue with core group of sales people<br />Use women’s healthcare equipment distributor<br />Already established network of customers<br />
  325. 325. MammOptics<br />Pricing Strategy<br />Equipment <br />Lease model<br />Per-use model<br />Consumable<br />Cost of the device<br />$50,000<br />$5,000<br />$5,000<br />$25,000<br />Service per year<br />$3,000<br />$10,000<br />0<br />0<br />Per-use fee<br />0<br />0<br />$50<br />0<br />Consumable<br />0<br />0<br />0<br />$20<br />
  326. 326. MammOptics<br />Pricing Strategy<br />Approved by customers and investors<br />Equipment <br />Lease model<br />Per-use model<br />Consumable<br />Cost of the device<br />$50,000<br />$5,000<br />$5,000<br />$25,000<br />Service per year<br />$3,000<br />$10,000<br />0<br />0<br />Per-use fee<br />0<br />0<br />$50<br />0<br />Consumable<br />0<br />0<br />0<br />$20<br />
  327. 327. MammOptics<br />Customer Workflow<br />Current market<br />Insurance<br />Mammography<br />Radiologist<br />Hospital Administration<br />Technician<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  328. 328. MammOptics<br />Customer Workflow<br />Current market<br />But what would happen if we replace mammography?<br />Insurance<br />Mammography<br />Radiologist<br />Hospital Administration<br />Technician<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  329. 329. MammOptics<br />Customer Workflow<br />Insurance<br />Mammography<br />Radiologist<br />Breast Radiologists<br />Hospitals<br />Technicians<br />Loss of jobs<br />Eliminates loss leader<br />Puts emphasis on biopsies<br />Loss of jobs<br />Hospital Administration<br />Technician<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  330. 330. MammOptics<br />Customer Workflow<br />Insurance<br />Mammography<br />Radiologist<br />Hospital Administration<br />Technician<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  331. 331. MammOptics<br />Customer Workflow<br />Insurance<br />Mammography<br />Radiologist<br />Insurance<br />ACOG/ACS<br />Same cost as mammography ($140)<br />Reduced number of biopsies ($1000)<br />Improved healthcare<br />(mammography weak technique)<br />Hospital Administration<br />Technician<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  332. 332. MammOptics<br />Customer Workflow<br />Insurance<br />Mammography<br />Radiologist<br />Hospital Administration<br />Technician<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  333. 333. MammOptics<br />Customer Workflow<br />Insurance<br />PCP<br />OB/GYN<br />Mammography<br />Patient<br />Radiologist<br />Hospital Administration<br />Technician<br />MammOptics<br />Doctor specialty committee <br />ACOG<br />ACS<br />
  334. 334. MammOptics<br />Customer Workflow<br />Insurance<br />PCP<br />OB/GYN<br />PCP<br />OB/GYN<br />Mammography<br />Mammography<br />Patient<br />Patient<br />Radiologist<br />Radiologist<br />PCP OB/GYNs<br />Patient<br />MammOptics<br />Increased revenue<br />More complete patient care<br />Improved healthcare<br />Comfort<br />Revenue<br />Hospital Administration<br />Technician<br />Hospital Administration<br />Technician<br />MammOptics<br />MammOptics<br />Doctor specialty committee <br />ACOG<br />ACS<br />
  335. 335. MammOptics<br />Customer Workflow<br />Insurance<br />PCP<br />OB/GYN<br />Mammography<br />Patient<br />Radiologist<br />Hospital Administration<br />Technician<br />MammOptics<br />ACOG<br />ACS<br />Doctor specialty committee <br />
  336. 336. MammOptics<br />Business Model Canvas 3 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Leading doctors<br />Key Opinion Leaders<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Capital Equipment Sales and disposable item<br />Per use fees<br />
  337. 337. MammOptics<br />Business Model Canvas 3 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />ReimbursementPublishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Leading doctors<br />Key Opinion Leaders<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />OB/GYNs<br />PCPs<br />Learned how to reach the customer<br />How do we build a company based on this?<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Capital Equipment Sales and disposable item<br />Per use fees<br />
  338. 338. Building the company<br />The backstage of a medical device company<br />
  339. 339. MammOptics<br />Interviews<br />Stanford StatisticsSteve Axelrod<br />Marga Ortigas-Wedekind<br />FDA Clinical Trials<br />Nick Mourlas<br />Don Archambault<br />Manufacturing<br />Shannon Bergstedt<br />Ali Habib<br />Reimbursement<br />Venture Capitalists<br />Dana Mead<br />Bill Starling<br />Doctors/Sales<br />Dr. Aron Shuftan<br />Jed Hwang<br />Michael J. Nohr<br />
  340. 340. MammOptics<br />Partners<br />Manufacturing<br />Choose manufacturing facility close to home<br />
  341. 341. MammOptics<br />MammOptics<br />Partners<br />Partners<br />Manufacturing<br />Reimbursement<br />Manufacturing<br />Difficult to get coverage for new product. <br />
  342. 342. MammOptics<br />Reimbursement Partners<br />Insurances<br />CPT Codes<br />$75-$150<br />
  343. 343. MammOptics<br />Partners<br />Manufacturing<br />Reimbursement<br />510K vs. PMA<br />Largest cost<br />Biggest financial risk<br />FDA Clinical Trials<br />
  344. 344. MammOptics<br />Clinical Trials<br />Stage 1<br />Pilot trials<br />Feasibility<br />Comparison with mammography<br />50 patients<br />$600K<br />6 months<br />12/4/2009<br />
  345. 345. MammOptics<br />Clinical Trials<br />Stage 2<br />Interim trials<br />Prove superior safety-efficacy & sensitivity<br />Stage 1<br />Pilot trials<br />500 patients<br />$7.2M<br />6 months<br />15 months<br />12/4/2009<br />
  346. 346. MammOptics<br />Clinical Trials<br />Stage 2<br />Interim trials<br />Stage 3<br />FDA pivotal trials<br />Stage 1<br />Pilot trials<br />FDA class II, 510(K) w/ trials<br />Focus on superiority & economic end-points<br />1500 patients<br />$20.5M<br />6 months<br />15 months<br />24 months<br />12/4/2009<br />
  347. 347. MammOptics<br />Clinical Trials<br />Stage 4<br />Post-market studies<br />Stage 2<br />Interim trials<br />2000 patients<br />$26.8M<br />Stage 3<br />FDA pivotal trials<br />Stage 1<br />Pilot trials<br />Specific Cat III CPT/ACP Codes<br />Market traction<br />6 months<br />15 months<br />24 months<br />24 months<br />12/4/2009<br />
  348. 348. MammOptics<br />Clinical Trials<br />Stage 4<br />Post-market studies<br />Stage 2<br />Interim trials<br />$26.8M<br />Stage 3<br />FDA pivotal trials<br />Stage 1<br />Pilot trials<br />$7.2M<br />$600K<br />$20.5M<br />6 months<br />15 months<br />24 months<br />24 months<br />12/4/2009<br />
  349. 349. MammOptics<br />Clinical Trials<br />12/4/2009<br />
  350. 350. MammOptics<br />MammOptics<br />Partners<br />Partners<br />Manufacturing<br />Reimbursement<br />Financial timeline <br />Funding<br />FDA Clinical Trials<br />
  351. 351. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />M&A / IPO $50 MM<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />Series D $35 MM<br />$40M<br />Series C $30.5 MM<br />$30M<br />$20M<br />Cash Reserve<br />Series B $9 MM<br />$15M<br />Series A $3.5 MM<br />$10M<br />$5M<br />Financial timeline <br />System<br />Initialize<br />Launch <br />Regulatory / Clinical<br />Marketable Product<br />Proof of Concept<br />Second Release<br />Beta Prototype<br />Design Milestones<br />1st Release Test<br />2nd Release Test<br />Beta-Version Testing<br />Laboratory Prototype<br />Publication<br />Publication<br />Clinical Results<br />Post-Market Clinical Studies<br />Pilot Studies<br />US Pivotal Clinical Trials<br />Clinical Milestones<br />US Interim Trials<br />Non-Specific Codes <br />Provisional Patent<br />IRB / IDE<br />Specific Codes <br />(Cat. I CPT / APC)<br />Cat III CPT<br />FDA – Class II – 510 (k) with Clinical Trials<br />Regulatory/ IP Milestones<br />Application and System Patents<br />Initial Product Launch<br />IC and Processing Patents<br />Technology Licensing<br />151<br />12/4/2009<br />
  352. 352. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />$40M<br />$30M<br />$20M<br />Cash Reserve<br />$15M<br />$10M<br />$5M<br />Initialize<br />Proof of Concept<br />Design Milestones<br />Clinical Milestones<br />Provisional Patent<br />Regulatory/ IP Milestones<br />Technology Licensing<br />152<br />12/4/2009<br />
  353. 353. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />$40M<br />$30M<br />$20M<br />Cash Reserve<br />$15M<br />Series A $3.5 MM<br />$10M<br />$5M<br />System<br />Initialize<br />Proof of Concept<br />Beta Prototype<br />Design Milestones<br />Beta-Version Testing<br />Laboratory Prototype<br />Pilot Studies<br />Clinical Milestones<br />Provisional Patent<br />Regulatory/ IP Milestones<br />Technology Licensing<br />153<br />12/4/2009<br />
  354. 354. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />$40M<br />$30M<br />$20M<br />Cash Reserve<br />Series B $9 MM<br />$15M<br />Series A $3.5 MM<br />$10M<br />$5M<br />System<br />Regulatory / Clinical<br />Marketable Product<br />Beta Prototype<br />Design Milestones<br />Beta-Version Testing<br />Laboratory Prototype<br />Pilot Studies<br />Clinical Milestones<br />IRB / IDE<br />Regulatory/ IP Milestones<br />Application and System Patents<br />IC and Processing Patents<br />154<br />12/4/2009<br />
  355. 355. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />$40M<br />Series C $30.5 MM<br />$30M<br />$20M<br />Cash Reserve<br />Series B $9 MM<br />$15M<br />$10M<br />$5M<br />System<br />Regulatory / Clinical<br />Second Release<br />Design Milestones<br />1st Release Test<br />Publication<br />Pilot Studies<br />US Pivotal Clinical Trials<br />Clinical Milestones<br />US Interim Trials<br />IRB / IDE<br />Cat III CPT<br />Regulatory/ IP Milestones<br />Application and System Patents<br />IC and Processing Patents<br />155<br />
  356. 356. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />Series D $35 MM<br />$40M<br />Series C $30.5 MM<br />$30M<br />$20M<br />Cash Reserve<br />$15M<br />$10M<br />$5M<br />Launch <br />Regulatory / Clinical<br />Second Release<br />Design Milestones<br />2nd Release Test<br />Publication<br />Publication<br />Clinical Results<br />US Pivotal Clinical Trials<br />Clinical Milestones<br />US Interim Trials<br />Non-Specific Codes <br />FDA – Class II – 510 (k) with Clinical Trials<br />Regulatory/ IP Milestones<br />Initial Product Launch<br />156<br />12/4/2009<br />
  357. 357. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />M&A / IPO $50 MM<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />Series D $35 MM<br />$40M<br />$30M<br />$20M<br />Cash Reserve<br />$15M<br />$10M<br />$5M<br />Launch <br />Regulatory / Clinical<br />Design Milestones<br />Publication<br />Post-Market Clinical Studies<br />Clinical Results<br />Clinical Milestones<br />Non-Specific Codes <br />Specific Codes <br />(Cat. I CPT / APC)<br />FDA – Class II – 510 (k) with Clinical Trials<br />Regulatory/ IP Milestones<br />Initial Product Launch<br />12/4/2009<br />
  358. 358. MammOptics<br />MammOptics<br />Financial / Operations Timeline<br />2016<br />2012<br />2013<br />2014<br />2015<br />2017<br />2018<br />M&A / IPO $50 MM<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q3<br />Q4<br />Q1<br />Q2<br />Q1<br />Q2<br />Q3<br />Q4<br />Q3<br />Series D $35 MM<br />$40M<br />Series C $30.5 MM<br />$30M<br />$20M<br />Cash Reserve<br />Series B $9 MM<br />$15M<br />Series A $3.5 MM<br />$10M<br />$5M<br />System<br />Initialize<br />Launch <br />Regulatory / Clinical<br />Marketable Product<br />Proof of Concept<br />Second Release<br />Beta Prototype<br />Design Milestones<br />1st Release Test<br />Beta-Version Testing<br />2nd Release Test<br />Laboratory Prototype<br />Publication<br />Publication<br />Post-Market Clinical Studies<br />Clinical Results<br />Pilot Studies<br />US Pivotal Clinical Trials<br />Clinical Milestones<br />US Interim Trials<br />Non-Specific Codes <br />Provisional Patent<br />IRB / IDE<br />Specific Codes <br />(Cat. I CPT / APC)<br />Cat III CPT<br />FDA – Class II – 510 (k) with Clinical Trials<br />Regulatory/ IP Milestones<br />Application and System Patents<br />Initial Product Launch<br />IC and Processing Patents<br />Technology Licensing<br />158<br />12/4/2009<br />
  359. 359. MammOptics<br />Business Model Canvas 4 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Reimbursement Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Immediate Results<br />Patients:<br />Radiation Free<br />Non-Invasive<br />KOLs<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />Clinical trial designer<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />Online<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Per use fees<br />
  360. 360. MammOptics<br />Business Model Canvas 4 of 4<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Reimbursement Publishing<br />KOLs<br />3rd party manufacturers<br />Breast Cancer Foundations<br />ACOGACS<br />Clinical trial designer<br />Earlier detection<br />Non invasive<br />Price<br />Accuracy<br />Immediate Results<br />OB/GYNs<br />PCPs<br />Final iteration of our business model<br />But… need to think about the big picture…<br />Direct Sales to hospitals<br />Distributor<br />Online<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Per use fees<br />
  361. 361. MammOptics<br />Business Model Canvas 1<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Hospitals<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Radiation-free<br />Earlier detection<br />Non invasive<br />Pioneering Doctors<br />Hospitals<br />Direct Sales to hospitals<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital Equipment Sales and disposable item<br />
  362. 362. MammOptics<br />Business Model Canvas 2<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Hospitals<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Research Hospitals<br />Radiation-free<br />Earlier detection<br />Non invasive<br />Pioneering Doctors<br />Hospitals<br />Direct Sales to hospitals<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital Equipment Sales and disposable item<br />
  363. 363. MammOptics<br />Business Model Canvas 3<br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Hospitals (Capital Spending Committee)<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Research Hospitals<br />Pioneering Doctors<br />Hospitals<br />Direct Sales to hospitals<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital Equipment Sales and disposable item<br />
  364. 364. MammOptics<br />Business Model Canvas 4 <br />Strong clinical data<br />Training<br />Maintenance<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Immediate Results<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Hospitals (Capital Spending Committee)<br />Leading doctors<br />3rd party manufacturers<br />Distributors<br />Research Hospitals<br />Breast Cancer Foundations<br />Pioneering Doctors<br />Hospitals<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Capital Equipment Sales and disposable item<br />
  365. 365. MammOptics<br />Business Model Canvas 5<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />ReimbursementPublishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Patients:<br />Radiation Free<br />Non-Invasive<br />Leading doctors<br />Key Opinion Leaders<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Capital Equipment Sales and disposable item<br />
  366. 366. MammOptics<br />Business Model Canvas 6<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Reimbursement Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Immediate Results<br />Patients:<br />Radiation Free<br />Non-Invasive<br />KOLs<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Capital Equipment Sales and disposable item<br />Per use fees<br />
  367. 367. MammOptics<br />Business Model Canvas 7<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Reimbursement Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Immediate Results<br />Patients:<br />Radiation Free<br />Non-Invasive<br />KOLs<br />3rd party manufacturers<br />Distributors<br />Breast Cancer Foundations<br />ACOGACS<br />Clinical trial designer<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Per use fees<br />
  368. 368. MammOptics<br />Business Model Canvas 8<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Reimbursement Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Immediate Results<br />Patients:<br />Radiation Free<br />Non-Invasive<br />KOLs<br />3rd party manufacturers<br />(local)<br />Breast Cancer Foundations<br />ACOGACS<br />Clinical trial designer<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Per use fees<br />
  369. 369. MammOptics<br />Business Model Canvas 9<br />Strong clinical data<br />Training<br />Maintenance<br />Conferences<br />CME courses<br />Product Development<br />IP<br />Clinical trials<br />FDA<br />Reimbursement Publishing<br />Doctors:<br />Earlier detection<br />Price<br />Accuracy<br />Immediate Results<br />Patients:<br />Radiation Free<br />Non-Invasive<br />KOLs<br />3rd party manufacturers<br />(local)<br />Breast Cancer Foundations<br />ACOGACS<br />Clinical trial designer<br />OB/GYNs<br />PCPs<br />Direct Sales to hospitals<br />Distributor<br />IP <br />Leading doctors<br />Technical Expertise<br />Product Development<br />Clinical trials<br />Operating Costs<br />Marketing Costs<br />Per use fees<br />
  370. 370. Blog Your Progress<br />
  371. 371. How?<br />Customer Development<br />The Process<br />Narrative<br />Interviews<br />Surveys<br />Videos<br />Prototypes<br />Business Model Canvas<br />Scorekeeping<br />Real-time Feedback<br />Physical Reality Checks<br />Skype<br />Face-to-face<br />
  372. 372. We Made Students Blog Their Progress<br />It Changed Everything<br />
  373. 373. Interview<br />
  374. 374. Photos<br />Videos<br />
  375. 375. Surveys<br />
  376. 376. Interview<br />& Photos<br />
  377. 377. Competitive Analysis<br />
  378. 378. Key Findings<br />
  379. 379. A/B Test Results<br />
  380. 380. Key Question<br />
  381. 381. Strategy<br />
  382. 382. Business Model Canvas as the Scorecard<br />
  383. 383. Business School Versus Entrepreneurship School<br />Entrepreneurship School<br />Business School<br />Scalable<br />Startup<br />Transition<br />Large Company<br /><ul><li>Hypothesis testing
  384. 384. Business Model design
  385. 385. Customer Development
  386. 386. Agile Development
  387. 387. Metrics
  388. 388. Venture Finance
  389. 389. Design Thinking
  390. 390. Execution
  391. 391. Accounting
  392. 392. Products
  393. 393. Engineering
  394. 394. Management
  395. 395. Administrative</li></li></ul><li>Business School Versus Entrepreneurship Courses<br />Business School<br />Entrepreneurship School<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Courses<br /><ul><li> Lean Launchpad
  396. 396. Customer/Agile Development
  397. 397. Business Model Design
  398. 398. Entrepreneurial Management
  399. 399. Creativity and Innovation
  400. 400. Entrepreneurial Finance
  401. 401. User-centric design</li></ul>Courses<br /><ul><li> Managerial Finance/Accounting
  402. 402. Managing Groups and Teams
  403. 403. Financial Accounting
  404. 404. Operations
  405. 405. Modeling for Optimization
  406. 406. Global Value Chain Strategies</li></li></ul><li>Business School Versus Entrepreneurship Courses<br />Business School<br />Entrepreneurship School<br />Scalable<br />Startup<br />Transition<br />Large Company<br />I teach this<br />Courses<br /><ul><li> Lean Launchpad
  407. 407. Customer/Agile Development
  408. 408. Business Model Design
  409. 409. Entrepreneurial Management
  410. 410. Creativity and Innovation
  411. 411. Entrepreneurial Finance
  412. 412. User-centric design</li></li></ul><li>E-School <br /><ul><li>20th century focus on physical goods
  413. 413. East coast manufacturing-centric
  414. 414. East coast B-School-centric
  415. 415. 21st century focus on virtual and physical goods and channels
  416. 416. West coast engineering school-centric</li></li></ul><li>One More Thing<br />
  417. 417. Adopted by the U.S. Government<br />
  418. 418. Thanks<br />www.steveblank.com<br />
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