MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
Lecture 2 NSF I-Corps March 2012 value prop
1. The Lean LaunchPad
Lecture 2: Value Proposition
Steve Blank
Jon Feiber
Jon Burke
Jerry Engel
#leanlaunchpad
2. VALUE PROPOSITIONS
what are you offering them?
what is that getting done
for them? do they care?
images by JAM
3. Value Customer
Proposition Segments
Technical Assistance
Nuclear Medicine and SOPs for precursors
(Image Atlas)
Radiology and drugs Radiopharmacies
Accessibility (RCY) FDA regulatory support
departments Recruit clinical sites
In vivo animal studies Purity Equipment producers
Develop regulatory Speed
plan for pre IND PET/SPECT Prescribing physicians
cGMP manufacturers Multiplatform Technical assistance
Radiopharmacies meeting
ID cGMP CRO Sensitivity (nca) Radiologist who
Fund-raising Specific compounds perform studies
General
Pharmaceutical IP methodology for Direct sales of precursor
development PoP data adding fluorine to Drug developers
companies lead compounds of Sales of packaged
IP interest precursor in cassettes
PoP data
Radiologists
Regulatory plan Cassette manufacturers
Understanding of
the regulatory
process
Sales of intermediates
Contract cGMP precursor manufacture
Salary, Rents
Technology license
Clinical trials
Product license (royalty)
4. Value Customer
Proposition Segments
Technical Assistance
Nuclear Medicine and SOPs for precursors
(Image Atlas)
Radiology and drugs Radiopharmacies
Accessibility (RCY) FDA regulatory support
departments Recruit clinical sites
In vivo animal studies Purity Equipment producers
Develop regulatory Speed
plan for pre IND PET/SPECT Prescribing physicians
cGMP manufacturers
Radiopharmacies meeting
ID cGMP CRO
Product/Market Fit
Multiplatform
Sensitivity (nca)
Specific compounds
Technical assistance
Radiologist who
Fund-raising perform studies
General
Pharmaceutical IP methodology for Direct sales of precursor
development PoP data adding fluorine to Drug developers
companies lead compounds of Sales of packaged
IP interest precursor in cassettes
PoP data
Radiologists
Regulatory plan Cassette manufacturers
Understanding of
the regulatory
process
Sales of intermediates
Contract cGMP precursor manufacture
Salary, Rents
Technology license
Clinical trials
Product license (royalty)
5. Get, Keep
and Grow
Technical Assistance
Nuclear Medicine and SOPs for precursors
(Image Atlas)
Radiology and drugs Radiopharmacies
Accessibility (RCY) FDA regulatory support
departments Recruit clinical sites
In vivo animal studies Purity Equipment producers
Develop regulatory Speed
PET/SPECT
cGMP manufacturers
Radiopharmacies
plan for pre IND
meeting Multiplatform Technical assistance Customer
Prescribing physicians
ID cGMP CRO Sensitivity (nca) Radiologist who
Fund-raising Specific compounds Segments
perform studies
General
Channel
Pharmaceutical IP methodology for Direct sales of precursor
development PoP data adding fluorine to
Drug developers
companies lead compounds of
Sales of packaged
IP interest
precursor in cassettes
PoP data
Radiologists
Regulatory plan
Understanding of Cassette manufacturers
the regulatory
process
Sales of intermediates
Contract cGMP precursor manufacture
Salary, Rents
Technology license
Clinical trials
Product license (royalty)
6. Get, Keep
and Grow
Technical Assistance
Nuclear Medicine and SOPs for precursors
(Image Atlas)
Radiology and drugs Radiopharmacies
Accessibility (RCY) FDA regulatory support
departments Recruit clinical sites
In vivo animal studies Purity Equipment producers
Develop regulatory Speed
PET/SPECT
Who Are Our Customers?
cGMP manufacturers
Radiopharmacies
plan for pre IND
meeting Multiplatform Technical assistance Customer
Prescribing physicians
ID cGMP CRO Sensitivity (nca) Radiologist who
Fund-raising Specific compounds Segments
perform studies
How Do We Reach Them? Channel
General
Pharmaceutical IP methodology for Direct sales of precursor
development PoP data adding fluorine to
Drug developers
companies lead compounds of
Sales of packaged
IP interest
precursor in cassettes
PoP data
Radiologists
Regulatory plan
Understanding of Cassette manufacturers
the regulatory
process
Sales of intermediates
Contract cGMP precursor manufacture
Salary, Rents
Technology license
Clinical trials
Product license (royalty)
7. Technical Assistance
Nuclear Medicine and SOPs for precursors
(Image Atlas)
Radiology and drugs Radiopharmacies
Accessibility (RCY) FDA regulatory support
departments Recruit clinical sites
In vivo animal studies Purity Equipment producers
Develop regulatory Speed
plan for pre IND PET/SPECT Prescribing physicians
cGMP manufacturers Multiplatform Technical assistance
Radiopharmacies meeting
ID cGMP CRO Sensitivity (nca) Radiologist who
Fund-raising Specific compounds perform studies
General
Pharmaceutical IP methodology for Direct sales of precursor
development PoP data adding fluorine to
Drug developers
companies lead compounds of
Sales of packaged
IP interest
precursor in cassettes
PoP data
Radiologists
Regulatory plan
Understanding of Cassette manufacturers
the regulatory
process
Contract cGMP precursor manufacture
Costs Sales of intermediates Revenue
Salary, Rents
Technology license
Clinical trials
Product license (royalty)
8. Technical Assistance
Nuclear Medicine and SOPs for precursors
(Image Atlas)
Radiology and drugs Radiopharmacies
Accessibility (RCY) FDA regulatory support
departments Recruit clinical sites
In vivo animal studies Purity Equipment producers
Develop regulatory Speed
plan for pre IND PET/SPECT Prescribing physicians
cGMP manufacturers Multiplatform Technical assistance
Radiopharmacies meeting
ID cGMP CRO Sensitivity (nca) Radiologist who
Fund-raising Specific compounds perform studies
General
Pharmaceutical IP methodology for Direct sales of precursor
development PoP data adding fluorine to
Drug developers
companies lead compounds of
How Do We Make Money?
IP
PoP data
interest
Sales of packaged
precursor in cassettes
Radiologists
Regulatory plan
Understanding of Cassette manufacturers
the regulatory
process
Contract cGMP precursor manufacture
Costs Sales of intermediates Revenue
Salary, Rents
Technology license
Clinical trials
Product license (royalty)
10. Key Questions for Value Prop
• Problem Statement: What is the problem?
• Ecosystem: For whom is this relevant?
• Competition: What do customers do today?
• Technology / Market Insight: Why is the problem so
hard to solve?
• Market Size: How big is this problem?
• Product: How do you do it?
11. Step 1. Spec. the Value Proposition
• Product(s)?
• Service(s)?
• Ecosystem?
• Is it a company or just a product?
13. Value Proposition – Common Mistake
• Is it just a feature of someone else’s product
• Is it a “nice to have” product
• Is it a “got to have” product
• Can it scale to a company?
14. Value Proposition - Discovery
• Product
– Long term vision
– features
– Benefits
– Minimum Viable Product spec
• For a web/mobile app
– Low fidelity MVP live and running
• Understand Customer Problem and Solution
• Test Market Type
15. Product
• Problem Statement: What is the problem?
• Technology / Market Insight: Why is the problem so hard to
solve?
• Market Size: How big is this problem?
• Competition: What do customers do today?
• Product: How do you do it?
16. Step 2: What’s the Minimum Viable Product –
Physical
• First, test your understanding of the problem
• Next test your understanding of the solution
– Proves that it solves a core problem for customers
– The minimum set of features needed to learn from earlyvangelists
- Interviews, demos, prototypes, etc
- Lots of eyeball contact
17. Step 2: What’s the Minimum Viable Product –
Web/Mobile
• NOW “low fidelity” web/app for customer feedback
– First, tests your understanding of the problem
• LATER, “high fidelity” web/app tests your understanding of
the solution
– Proves that it solves a core problem for customers
– The minimum set of features needed to learn from earlyvangelists
- Avoid building products nobody wants
- Maximize the learning per time spent
18. Key Questions for Value Prop
• Problem Statement: What is the problem?
• Ecosystem: For whom is this relevant?
• Competition: What do customers do today?
• Technology / Market Insight: Why is the problem so
hard to solve?
• Market Size: How big is this problem?
• Product: How do you do it?
20. Type of Market Changes Everything
Existing Resegmented New Clone
Market Market Market Market
21. Type of Market
Changes Everything
Existing Resegmented New Clone
Market Market Market Market
• Market • Sales •Customers
– Market Size – Sales Model
•Customers
• Needs
– Cost of Entry • Needs
– Margins • Adoption
– Launch Type – Sales Cycle
• Adoption
– Competitive – Chasm Width •Finance
Barriers •Finance Capital
• Ongoing
– Positioning • Ongoing Capital
• Time to Profitability
• Time to Profitability
22. Definitions: Four Types of Markets
Existing Resegmented New Clone
Market Market Market Market
• Existing Market
– Faster/Better = High end
• Resegmented Market
– Niche = marketing/branding driven
– Cheaper = low end
• New Market
– Cheaper/good enough can create a new class of
product/customer
– Innovative/never existed before
• Clone Market
• Local adapatation
23. Market Type
Existing Resegmented New Clone
Customers Known Possibly Known Unknown Possibly
Known
Customer Performance Better fit Transform- Local version
Needs ational
improvement
Competitors Many Many if wrong, None None
few if right
Risk Lack of Market and Evangelism Misjudge
branding, sales product re- and education local needs
and definition cycle
distribution
ecosystem
Examples Google Southwest
Market Type determines: Groupon Baidu
Rate of customer adoption
Sales and Marketing strategies
Cash requirements
24. Market Type - Existing
• Incumbents exist, customers can name the mkt
• Customers want/need better performance
• Usually technology driven
• Positioning driven by product and how much value customers
place on its features
• Risks:
– Incumbents will defend their turf
– Network effects of incumbent
– Continuing innovation
25. Market Type – Resementing Existing
• Low cost provider (Southwest)
• Unique niche via positioning (Whole Foods)
• What factors can:
– you eliminate that your industry has long competed on?
– Be reduced well below the industry’s standard?
– should be raised well above the industry’s standard?
– be created that the industry has never offered? (blue ocean)
26. Market Type – New
• Customers don’t exist today
• How will they find out about you?
• How will they become aware of their need?
• How do you know the market size is compelling?
• Which factors should be created that the industry has never
offered? (blue ocean)
27. Market Type – Clone
• Takes foreign business model and adapts it to local conditions
– Language
– Culture
– Import restrictions
– Local control/ownership
• Need market large enough >100 million
28. Competition
• What are customers doing today?
• Are competitors threatening to offer
better price or value?
• How saturated is our market?
29. Technology and Market Insight
Technology Insight Market Insight
• Moore’s Law Value chain disruption
• New scientific Deregulation
discoveries Changes in how
• Typically applies to people work, live and
hardware, clean interact and what they
techand biotech expect
30. Examples of Market Insight
• People want to play more involved
games than what is currently offered
• Facebook can be the distribution for
such games
Masses of people are more likely to micro-
blog than blog
The non-symmetric relationships will allow
companies and individuals to self-promote
and will impact distribution
European car sharing sensibilities could be
adopted in North America
People, particularly in urban
environments, no longer wanted to own
cars but wanted to have flexibility.
31. Examples of Technical Insight
• Topological analysis enables
highly dimensional data to be
analyzed without
predetermining number of
feature sets
Mass produced components
can be used to create a
miniaturized fluorescence
microscope
32. Types of Product Value
Comes from Technical Insight Comes from Market Insight
More Efficient
Lower Better
cost Better
Smaller Distribution
Bundling
Simpler
Faster
Better
Branding
34. Define Product
• Hardware
• Service
• Knowledge
• Resources
• Networks
• Data
35. Minimum Viable Product (MVP)
• A product that solves a core
problem for customers
• The minimum set of features
needed to learn from
earlyvangelists
- Avoid building products nobody
wants
- Maximize the learning per dollar
spent
36. The Art of the MVP
• A MVP is not a minimal product
• “But my customers don’t know what they want!”
• At what point of “I don’t get it!” will I declare defeat?
Editor's Notes
Try it out with a few teams – toy team – what is the problem? What if you were to explain this to your users? What about your customers? What about a education blogger? Decision maker and economic buyer are the sameParkpoint Capital – government, payment processors, who else?Oral light – suppliers, channels (schein), contract manufacturer, etc.Use board to map out these different parts of the ecosystem – we will deep dive in the next 2 slides.WHO IS THE AUDIENCE? Is it an investor? Is it a customer? Is it a user?
What alternative does the customer have right now? How aware are they of the problem?Important context for value proposition – how new is this idea? – Market type
Market insight is becoming more and more a requirement
Generally impacts some part of your business model diagram (usually NOT the product component)
Generally a product / value proposition question
Others: Brand/Status, easier to access (distribution); fun; bundling (phone + camera) faster, simpler, smaller, lower cost, more efficient
First – how would you define product? (go through different teams)