In this talk, we discuss how to come up with the solution to the problem identified for your business.

1. MIT Entrepreneurship and
Maker Skills Integrator
DE Theme 2: What can you do for your customer?
June 5, 2017
Elaine Chen, Marina Chan

2. DE Theme 2: What can you do for your
customer?

3. “What can you do for your customer?”
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1 operator,
2 shifts
1 Baxter, 2
shifts
Savings / Gain
Monthly
Cost
$8,680 $52 $8,628
Yearly cost $104,166 $625 $103,536
3y cost $312,498 $1,875 $310,608
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7
8
10
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Step 6: Full Cycle Use Case
Baxter training (2011 – 10th or 15th iteration)

5. Actual Baxter Training Use Case
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1. Process engineer
plans line layout,
Baxter placement
2. Grab Baxter’s hand to
show where to pick, what
to pick, where to place
3. Repeat with other
hand
4. Add details like
counting, sequencing
5. Let it run,
debug if needed

6. In-class exercise: #1 Use Case
Enumerate the top 3-5 use cases for your venture.
Pick the #1 use case and write down the rationale for why this is #1.
Define your #1 full cycle use case for your primary end user persona
when using your product or service.
Do this from the perspective of the end user. Be as detailed as
possible about what the customer has to do to achieve their goals
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7. Sharing!
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8. Step 7: High level product spec
Zeo MobileZeo 2.0 Bedside Display
Universal Bluetooth Headband
Zeo Sleep
Hub
Environmental
Sensor
Accessory
Secondary
Headband
Other
Sensor
Accessories
The Universal Headband measures sleep
quality continuously by recording and
analyzing EEG data through the night.
The bedside display can show the user
their sleep graph from the previous
night. It also uploads the data via WiFi.
This device can also connect to other
Bluetooth sensors in the future.
The Zeo mobile application can
show the user their sleep graph. It
also uploads data via a WiFi or
Cellular connection.
The Zeo Sleep Hub is a data aggregation,
visualization and analytics engine in the cloud
In the morning, the data is sent via
Bluetooth to either a bedside
display or a mobile device.

9. A software example: Dropbox
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10. Another example
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11. Another example, take 2
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12. Before and after
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Feature focus, pushes the technology Benefits focus, pushes UVP/QVP

13. In-class exercise: 1 page product concept
Develop a 1 page long, benefits-driven description of your
product concept. Choice of paper or electronic format.
This can be in the form of a 1 page drawing with captions, a
slide, OR the description in a landing page.
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14. Sharing!
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15. A note on luxury items
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16. “What can you do for your customer?” - reprise
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1 operator,
2 shifts
1 Baxter, 2
shifts
Savings / Gain
Monthly
Cost
$8,680 $52 $8,628
Yearly cost $104,166 $625 $103,536
3y cost $312,498 $1,875 $310,608
6
7
8
10
11

17. Elevator pitch
• Take what you’ve got thus far with the hypothetical
customer, end user, use case, and product concept…
• And concoct a 60 second elevator pitch. WE WILL TIME
YOU AND CUT YOU OFF.
• What to include in some order:
• Problem (must have)
• Solution (must have)
• Benefits
• Ask
• Have fun with it!
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18. Supplemental Readings
• “Our dangerous obsession with the MVP” – Bill Aulet,
Techcrunch
• “Defining and Building the MVP” – Elaine Chen
(Slideshare)
• “Product definition templates” – Elaine Chen (Slideshare)
• “Validating Hypotheses with Landing Page Tests” - Elaine
Chen (PDF)
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19. End
Questions?
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20. Backup Slides

21. Use case example: Playrific Mobile
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1 2 3
4 5 6
Product idea:
A safe iPhone app
that provides
curated, high quality
edutainment content
to keep pre-reading
children occupied
while the family is on
the go

22. High Level Product Spec Counter Example:
The Airborne Wind Turbine
The Airborne Wind Turbine integrates proven aerospace and wind turbine technology. The AWT
lifting platform is adapted from tethered aerostats, which have reliably lifted heavy
communications and monitoring equipment high into the air for decades. The AWT integrates
four main components:
• Lifting Shroud - A proprietary helium-filled shroud made from high performance, industrial
fabrics that lifts the turbine up and stabilizes it in the air.
• Wind Turbine - A lightweight conventional three-blade, horizontal axis wind turbine fixed
within the shell.
• Conductive Tethers – The lightweight, high strength tethers hold the turbine in place in all
weather conditions and transmit power to the ground.
• Base Station - The portable base station is rapidly deployed from a shipping container and
includes an autonomous control system and power conditioning equipment.

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• Tether holds AWT in place at optimal height and
delivers electricity down to onshore base-station or
offshore buoy, and onto electrical grid or end user
• Shroud uses buoyant and aerodynamic lift to elevate
lightweight wind turbine to harness strong winds 200-
600 meters in the air
Lifting shroud & Wind
Turbine
Conductive Tether &
Base-Station
200-600meters
Computer
Model of the
patent-pending
Airborne Wind
Turbine (AWT)
The Airborne Wind Turbine (AWT)

24. Quantified Value Proposition Example: Zeo
(Bad example)
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25. VALUE PROPOSITION
1. SIX times longer duration
2. FIVE times higher effectiveness
3. At least THREE times lower quantity applied.
Quantified Value Proposition
Example: Smart Skin Care
Long-lasting protection for your skin

26. Quantified Value Proposition Example: 3D
Samples for Apparel
Physical process: 5 concept samples, 4 production samples, 18 weeks
1st patterns Make Sample
Tweak
patterns
Make
Sample
Tweak
patterns
Tweak
patterns
Tweak
patterns
Make
Sample
Make
Sample
Make
Sample
Production
patterns
Make Proto
sample
Tweak
patterns
Make Proto
Sample
Tweak
patterns
Make TOP
sample
Make
photoshoot
sample
Start mass
production
Tweak
patterns
Make Proto
Sample
1st patterns
Make
Sample
Tweak
patterns
Make
Sample
Tweak
patterns
Make
Sample
Production
patterns
Make Proto
sample
Tweak
patterns
Make TOP
sample
Make
photoshoot
sample
Start mass
production
3D review;
iterations
3D review;
iterations
With 3D Samples: 3 concept samples, 2 production samples, 10-12 weeks
SAVINGS:
6-8 weeks elapsed time
$1k x 4 samples x 500 styles =
$2 M savings per season

27. Quantified Value Proposition Example: Altaeros
Energy
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“over twice the energy of similarly
rated tower-mounted wind turbines”
“reduces the installation and transport
cost by up to 90%”
“can be installed and producing power in
under 24 hours”

28. Competitive 2x2 Example
Ease of migration
LowHigh
Low High
Enterprise readiness: Comprehensive SCM management tools + ALM coverage
Awesome B2B Enterprise
Software Code
Management product
from Company X

29. Example MVPs
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Fake, non-functional
headband
Ugly interactive prototype
Product brochure plus a video
clip

30. Case study: iOS App MVP Test
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Hypothesis: “I believe users will find the gesture UX
delightful.”
MVP: Functional interactive prototype
Experiment: Usability benchmark. Users were given
tasks to complete that required them figuring out the
gesture UX on their own.
Duration: 30 min UX test + 15 min debrief
Threshold: 50% of users will complete the task.
Result: 0% figured it out.
We killed the feature.

31. Put the “B” in the “MVBP”
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You can run surveys until the cows come home, but you
won’t know for sure until $ changes hands.

32. Testing willingness to pay before there’s anything to
sell: The concept of “currency”
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Short of taking $$$ from your potential customers for your nonexistent
vaporware, what are some asks you can pose to collect surrogate currency that
is a predictor of future willingness to pay?
• Yes to scheduling a meeting to discuss
• Actually getting a scheduled meeting on the calendar
• Actually meeting you
• Giving you the email of someone else you should meet
• E-introducing you to someone else you should meet
• Providing an email
• Providing Credit Card for a pre-order (no charge)
• Providing Credit Card for a pre-order (charged, rain check provided)
• … etc

33. Example 1: Landing Page Test
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34. Example 2: Kickstarter
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35. Example 3: Preorder on own site
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36. Example 4: Paid concierge beta
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Hypothesis: “User will pay for this SaaS
visualization service”.
MVP: Fully faked via emails and Photoshop
Experiment: 10 customer, paid beta
Duration: 3 months
Currency: $199/month, prepaid
Threshold: Able to close more than 5 for beta
They closed 10. It’s a GO!
Extreme example of “get paid from day 1” without a
line of code

37. VALUE PROPOSITIONStep 8: Quantified Value Proposition:
Baxter @ Valin: Make back your $ in 4 months
Task: transferring paint cylinders from one
conveyor to another
How it’s done today: 1 operator per shift, 2
shifts, 100% loading
How it’s done with Baxter: 1 Baxter working
continuously over 2 shifts; operators doing
value added tasks elsewhere in the plant
Robot price: $32,000 fully loaded
Robot operating cost: $52/m (electricity cost)
Savings analysis: 4 MONTHS ROI
1 operator per shift x
2 shifts
1 Baxter, 2 shifts Savings/Gain
Monthly Cost $8,680 (@$25/h) $52
(Electricity cost)
$8,628
Yearly cost $104,166 $625 $103,536
3y cost $312,498 $1,875 $310,608

38. Step 10: Define your core
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Hardware core Software / systems core

39. Step 11: Competitive 2x2 Example:
Industrial automation
Changeover time to accommodate new jobs
Slow (months/years)Fast (days)
Expensive InexpensiveTotal cost of ownership

40. Homework: Competitive 2x2
Come up with the top 2 priorities that are the most important to
your customers (either economic buyer or user – pick one if
they are different). These are the 2 axes of your 2x2.
Enumerate the top 5-10 competitors that solve a similar
problem you are solving. Note: “Do nothing” is always a
competing option.
Create a 2x2 in which your offering is up and to the right and
everyone is somewhere else – and be ready to talk to what
makes you special.
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