Nsf lecture 3 customers

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  • Piggyback on infrastructure
  • While we have looked at one company in the market, lets take a broader look at the entire market.The US protein expression kit market was estimated at 200 M in 2008 and had experienced 20% growthThe global market for cells and cells lines was over 1.4B in 2011 and experiencing 10% growth
  • What oncologists do, what pathologists do. Focus on oncologists.Need a new approach to get interviews with oncologists. Hit the rolodex, plan interviews far in advance, daisy-chain to new contactsPathologists do not order tests, and usually don’t decide where to source a test from, so are less important to our business
  • Opportunity to innovate in the EHR Future of medicine is in EHR no competitive products that are compatible with HERIs a great opportunity and we need to understand how to capitalize and offer the first an only HER enabled pumpNew CPT code $2-3MM; Approval not guaranteed ~2-3 years review process (lost sales)
  • Then I will say that until now, we had been focusing on Tech Development and Integrated Bio/Chem companies like DSM, Elevance, Solazyme. After talking to some of these companies, we realized that we need to shift our focus!
  • This is how our product would be deployed in the cosmetic market and how the money flows …This only possible because we can offer and inexpensive and simple device that can be broadly deployed.The example of the market size is taken from Prestige and In-home sales.
  • Nsf lecture 3 customers

    1. NSF I- Corps The Lean LaunchPad Lecture 3 Customer Segments Who Are Your Customers?What Job Do They Want You to Do? 6/22/12
    2. Customer Segments Who Are They? Why Would They Buy?
    3. © 2012 Steve Blank
    4. Product/Market Fit
    5. The Value Proposition Gain Creators Products &Services MVP Pain Killers
    6. Pain = Customer ProblemGain = Customer Solution
    7. The Customer Segment Gains Persona • Jobs /Archetyp • Problem or Need e Pains Market Type
    8. Gain Creators GainsProduct s MVP Persona • Jobs /Archetyp&Servic • Proble m or e es Need Pain Pains Killers Product/Market Fit
    9. Jobs to Be Done Problems/NeedsWhat is the customer segment trying to get done? Is it a problem or a need?
    10. Customer Segments – Jobs/Needs• What functional or social jobs are getting done? – (e.g. perform or complete a specific task, solve a specific problem or trying to look good, gain power or status, ...)• What emotional jobs? – (e.g. esthetics, feel good, security, ...)• What basic needs are you helping your customer satisfy? – (e.g. entertainment, communication, sex, ...)
    11. Buyer/Co-Creator/Transferor• Are they a buyers – (e.g. comparing offers, deciding, buying, taking delivery of a product or service, ...)• Are they co-creators – (e.g. co-designing with solution providers, contributing value to the solution, ...)• Are they transferors – (how customers dispose of a product, transfer it to others, or resell, ...)
    12. Customer Segment Jobs - Rank• Rank each job according to its significance to the customer.• Is it crucial or is it trivial?• For each job indicate the frequency at which it occurs.• Outline in which specific context a job is done, because that may impose constraints or limitations – (e.g. while driving, outside, ...)
    13. Customer Painsundesired costs and situations, risks, negative emotions
    14. Customer Segments – Pains• What do your customers find too costly? – (e.g. takes a lot of time, costs too much, requires substantial efforts, ...)• How are current solutions underperforming? – (e.g. lack of features, performance, malfunctioning, ...)• What are the customers main difficulties and challenges? – (difficulties getting things done, resistance, ...)• What’s keeping your customer awake at night? – (e.g. big issues, concerns, worries, ...)
    15. Customer Segments – Pains• What barriers are keeping customers from adopting? – (e.g. upfront investment costs, learning curve, resistance to change, ...)• What makes your customers feel bad? – (e.g. frustrations, annoyances, things that give them a headache, ...)• What risks do customers fear? – (e.g. financial, social, technical risks, or what could go awfully wrong, ...
    16. Customer Gains benefits the customer expects, desires or issurprised by. includes functional utility, social gains, positive emotions, and cost savings
    17. Customer Segments – Gains• Which savings would make your customer happy? – (e.g. in terms of time, money and effort, ...)• What outcomes do they expect and what would go beyond their expectations? – (e.g. quality level, more of something, less of something, ...)• How do current solutions delight your customer? – (e.g. specific features, performance, quality, ...)• What would make your customer’s job or life easier? – (e.g. flatter learning curve, more services, lower cost of ownership, ...)
    18. Customer Segments – Gains• What positive social consequences do they desire? – (e.g. makes them look good, increase in power, status, ...)• What are customers looking for? – (e.g. good design, guarantees, specific or more features, ...)• What do customers dream about? – (e.g. big achievements, big reliefs, ...)• How does your customer measure success and failure? – (e.g. performance, cost, ...)• What would increase the likelihood of adopting a solution? – (e.g. lower cost, less investments, lower risk, better quality, performance, design, ...)
    19. Customer Persona/Archetype
    20. Define Customer Archetype/Persona• Who are they? – Position / title / age / sex / role• How do they buy? – Discretionary budget (name of budget and amount)• What matters to them? – What motivates them?• Who influences them? – What do they read/who do they listen to?• Draw a Day in the Life of the customer
    21. Market Type
    22. Type of Market Changes Everything Existing Resegmented New Clone Market Market Market Market
    23. 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 • Adoption – Sales Cycle – Competitive – Chasm Width •Finance Barriers •Finance Capital • Ongoing – Positioning • Ongoing Capital • Time to Profitability • Time to Profitability
    24. 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 adaptation
    25. Market Type Existing Resegmented New CloneCustomers Known Possibly Known Unknown Possibly KnownCustomer Performance Better fit Transform- Local versionNeeds ational improvementCompetitors Many Many if wrong, None None few if rightRisk Lack of Market and Evangelism Misjudge branding, sales product re- and education local needs and definition cycle distribution ecosystemExamples Google Southwest Market Type determines: Groupon Baidu  Rate of customer adoption  Sales and Marketing strategies  Cash requirements
    26. 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
    27. Market Type – ResementingExisting• 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)
    28. 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)
    29. 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
    30. Other Thoughts
    31. Who’s the Customer?• User?• Influencer?• Recommender?• Decision Maker?• Economic Buyer?• Saboteur?• Archetypes for each?
    32. Pass/Fail Signals & Experiments• How do you test interest?• Where do you test interest?• What kind of experiments can you run?• How many do you test?
    33. Multi-Sided MarketsBusiness to Business to Consumer (B to B to C)
    34. Who’s The Customer?• Consumer End Users, Corporate Customers Pay• Multiple Consumers• Etc.
    35. Multiple Customer Segments• Each has its own Value Proposition• Each has its own Revenue Stream• One segment cannot exist without the other• Which one do you start with?
    36. Customer Segment Examples
    37. Meet Xing XieInternational Graduate Student at Stanford • Engineering graduate student – Receives financial package to cover tuition, fees, insurance and living expenses Xing Art • Chinese 4-2-1 family – No siblings, spoiled by parents – High disposable income • 1st time to America – No credit score, SSN, or US address – Strong ties to his community in China • Academically responsible – Completes all homework on time • Financially responsible – Pays all bills on time and in full • Social network is similarly responsible
    38. Results: Our Customers • Professional Kite Surfers • Solely concerned with performance • Average Kite Surfer • Performance and cost sensitive • “One less thing to carry” effect • Prospective Kite Surfer • Cost sensitive • Learning barrier
    39. Customer Archetype: Joe “Dude” Marrama • Loves to ski, surf, rock climb • Salary ~100K/year • Looking for something to do when the surf’s blown out • Intimidated by cost and learning curve of kiting “Companies need to offer more entry level packages." Matt Sexton Founder Collegiate Kiteboarding Association
    40. ™ Customer Workflow Phase I: Phase II: Phase III: Phase IV: Design Prototyping Manufacturing Final Product 6-8 weeks 3-4 weeks 8-12 weeks 3-4 weeks5/23/2012 40
    41. IT The Gov’tsubsidi Water Ecosystem es systems Nutrient manageme nt Planting/tilling/harvest Heavy Farmers equipmen tHungryfolks or Seed cars banks, Ag-Bio Regulato ry fees $$ Mitigate fines
    42. CustomerSegments• Commercial Institutions: – Primary Market – $1.4B (Globally) – License and Revenue sharing agreements• Academic Labs: – Secondary Market – Increase Visibility of Tech – $140 M (North America) – Product Sales
    43. The Problem Missing out Lonely Left aside Disconnected Frustrated Multitasking I’m busy Living different lives Send each other things Laugh less through email/text Planning the next visitMany short call Everything is an effortthroughout day Post-poning couple time Don’t communicate trivial things
    44. Design ArkaSources and Heat Exchanger Technical Lights Manufacturer Experts Division? Partnership? Market Market …
    45. Determining our customersOncologist PathologistPatient management Sample management• Oncologists decide • Pathologists perform in- what tests to order, house tests and when, and how often facilitate contracts with service providers• Primary customer • Less important 45 45
    46. Use and Payment Model (Hospital) Hospital Oncologists Patient $ HospitalCROs Pathology HMO 2 $ Lab Decider 1 $ Influence r $ Buyer / CanScan Payer Class 3 - Update 2.6.2012
    47. Reimbursement Model 3 Private CMS 3 payer/MAC 4 2 Hospital / Clinic 2 Lab Advisory Oncologists ASCO / Committee 2 NCCN 1 5 CanScan1 Generate physician 12 interest lobbies Physician3 payer/hospital reimburses Regional payer Influence4 National CMS coverage Payment5 decided reimburses Hospital Sets rate CanScan Class 4 - Update 2.13.2012
    48. Health insurance reimbursement is a necessary precondition for hospitals to use our service Private insurance or Medicare reimbursement requires: Evidence of • Double-blinded, placebo controlled clinical trial with several hundred participants will be needed Clinical Utility − Must demonstrate the detection is accurate and repeatable − Must demonstrate improved decision-making ability for physician linked to better patient outcomes Assignment of • Codes are assigned by the AMA (CPT code) and CMS (HCPCS code) semi-annually with editorial panel approval a Billing Code (12-18 mo) − CanScan’s likely coding: HCPCS Level II or CPT category III* − VeridexCellSearch received code in Nov. 2011 for CTCs − CanScan will likley need new code (non-immunologic)* Coding used for non-FDA approved service billed by suppliers other than physicians Class 4 - Update 2.13.2012
    49. What We Found: Patient Care FlowElectronic Partners/ Health Fluid Synchrony OEMS Records Electroni Support Pump + Bundled c ServicesControlle Kits Actionable feedback Records r to doctors/institutions E-prescription / closing loop Surgery/Rx/ PatientDischarged reprogrammin g Hospitals (Anesthesiologists Neurosurgeons)Trial period/ Scheduled Home follow-up setting - Process shortened to days - Improves outcomes
    50. What We Found: Value Chain PatientsCPT reimbursementPump $13,305 Pay for coverage Service providedSurgical Kit $2887Refill Kit $200 Hospitals / Fluid Synchrony Insurance Clinics Product Hospital purchase Reimbursement 50
    51. Position in Value Chain OmegaChem
    52. Value Proposition, Customer Segments: Results Surfactants: new market ($24bn) Monomer Monomer manufacturer “Have you manufacturer considered surfactants Polymer space?” formulator Polymer Surfactant - DSM formulator Formulator Polymer Polymer Surfactant user user user Consumer facing Consumer facing company company Consumer Consumer
    53. Product and Payment Flows $250 $200 Year unit Cosmetics DepartmentContractManufacturer MySkin Tech Firm or Spas / Stores Salons orSales Reps Increased $500 - $1K Sales unit Consumer MySkinTone Product Money Cosmetics Cosmetic Money• B2B2C customer relationship• MySkin Technology customer are also strategic partners• Instrument is simple and inexpensive enough for broad deployment 53
    54. Sourcing for Expanded Product Offering Electronic Health Fluid Synchrony OEMS Records Electroni Support Pump + Bundled c ServicesControlle Kits Records r Hospitals (Anesthesiologists Patients Neurosurgeons) Pain Clinic (Anesthesiologists Neurosurgeons) 54
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