This presentation is an overview designed to help startups create their value proposition. It was developed in partnership to Actifio, arguably the fastest growing storage startup ever.
It is part of the Startup Secrets focus on Value Proposition development. For more information on this and other Startup Secrets focus areas, visit http://www.startupsecrets.com
1. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
Harvard innovation lab
#startupsecrets
www.mjskok.com
START UP
SECRETS
An insider’s guide to unfair competitive advantage
Building a Compelling
Value Proposition
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
1
3. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Welcome…
Follow online
www.mjskok.com
Ash Ashutosh,
Founder & CEO
@actifio
@mjskok
/mjskok
linkedin.com/in/mjskok
bit.ly/mjskok-google
Mike Troiano,
CMO
@miketrap
bit.ly/mjskok-youtube
3
4. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Agenda
Problem
Ideas
Solution
Define
Gain
Pain
Evaluate
Value
Prop
Build
4
5. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Value Proposition Template
• For (target customers)
• Who are dissatisfied with (the current
alternative)
• Our product is a (new product)
• That provides (key problem-solving
capability)
• Unlike (the product alternative)
5
6. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Where might you start?
Problem
Ideas
Solution
Define
Gain
Pain
Evaluate
Value
Prop
Build
6
7. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Ideas … free floating?
7
12. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Agenda - Problem
Problem
Ideas
Solution
Define
Gain
Pain
Evaluate
Value
Prop
Build
12
13. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Problem
•
•
•
•
Unworkable
Unavoidable
Urgent
Underserved
Problems worth solving
are usually 4U …
13
14. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Unworkable
• Broken business process
• Consequences ?
If the consequences are costly or painful,
so much the better.
EG who gets fired if this doesn’t work?
14
15. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Unavoidable
• Accounting
• Regulation
Is the problem so fundamental
you can’t avoid it and just have to comply?
15
16. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Urgent
• Relative to other needs …
• Priority
– Determines resources allocated
If you’re not at the top of the list,
are you at least in the top 3?
If not will you get moved up or down over time and why?
16
17. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Underserved – business…
• You will compete in a zero-sum game
• Finite:
–
–
–
–
$
Time
People
Attention
17
18. Innovations in storage…
Data De-Duplication and Backup to Disk
(Smaller backup data footprint)
Thin Provisioning
(Improved Utilization)
Object Storage Device
Scale-Out Technologies
Open Storage: Off-the-shelf
hardware and software
SATA, SSD drives and Tiered
storage
Continuous Data Protection
(Flexible, Rapid Recovery)
Storage Services and Technologies
(Pay-Per-Use, Lower cost base)
ActiFio Proprietary & Confidential
19. …come packaged in a storage device
Backup sw
FE
File Mgr
Archive sw
FE
FE
Device
Proprietary
Protocol
File Mgr
Device
Proprietary
Protocol
File Mgr
Replicn
Replicn
Replicn
Protecn
DeDup
Pwr Mgt
FE
Thin Prov
File Mgr
BE
Drv Mgr
Replica
Vol Mgr
Vol Mgr
Local Store
Local Store
Local Store
Pwr Mgt
DeDup
Thin Prov
BE
Replicn
Replicn
Protecn
Drv Mgr
BE
Local Store
File Mgr
File Mgr
Replicn
Online
Vol Mgr
Drv Mgr
BE
FE
FE
Vol Mgr
Drv Mgr
Device
Proprietary
Protocol
Drv Mgr
Drv Mgr
B2D
BE
Local Store
Replica
Archive
BE
Local Store
Replica
Single function silos of autonomous Store-Keep-Forward units
Multiply duplicated functions, stores, interconnects
ActiFio Proprietary & Confidential
20. Result is a complex, multi-tier system
On Site
Remote Site
(Business Continuance and DR)
Array Mgr
SnapShot
Mgr
Online Storage
Backup
Mgr
Backup
S/W & Server
Replica
Mgr
Local
Snapshots
(Rapid
B2D Mgr
Tape Mgr
Recovery)
B2D Storage
B2D Replica
Secondary Storage
(Data Protection)
Remote Replica
Multiple silos, technologies, applications …held
together with process and expensive administration
Storage is the biggest barrier to new IT initiatives:
Virtual, Distributed computing, Consolidation
ActiFio Proprietary & Confidential
21. 4U Compliant
• Unworkable – No way to solve the problem with
conventional technology
• Unavoidable – Every enterprise with data to be
accessed and protected creates the problem
• Urgent – Consuming the majority of storage budgets in
an environment of constrained IT resources
• Underserved – Big players have a concrete dis-incentive
to tackle in a way that serves the customer
22. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Underserved – consumers…
• Needs…
• Examples…
•
•
•
•
•
•
•
•
• Social
Social
Security
Physical
Economic
Recognition
Responsibility
Achievement
Growth
–
–
–
–
–
–
–
Find
Connect
Communicate
Meet
Share
Entertain
Date
22
23. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Qualify the problem
Is it “blac” & white?
•
•
•
•
Blatant
Latent
Aspirational
Critical
Blatant
Critical
Blatant
Latent
Aspirational
Critical
23
24. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
& white…
• Is it addressing a “white space” in the
market?
– an open area of opportunity
– which you can capture
– and defend
– uniquely
24
26. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Problem - Summary
• Is it 4 U?
–
–
–
–
Unworkable
Unavoidable
Urgent
Underserved
• Is it blac and white?
26
27. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Ideas… can now be applied!
27
28. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Ideas – fit to problem…
Blatant
4U
Critical
28
29. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Agenda - Solution
Problem
Ideas
Solution
Define
Gain
Pain
Evaluate
Value
Prop
Build
29
30. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Solution
30
31. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Startup opportunity?
• Faster
• Cheaper
• Better
31
32. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Break something!
What is your compelling breakthrough?
3D
32
33. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Breakthrough opportunities…
3
D’s
• Discontinuous
innovation
• Defensible technology
• Disruptive business
model
33
34. Opportunity: Unified Data Services
Pri &
Secondary
Data
Private Cloud
1.
Replication
New Service
Index Creation
Virtualization
Online, Recovery, Archive,
Analysis, Custom
Retention
Standard Protocol
Optimization
Replication
Core Ctlr
New Service
ActiFio
Retention
Optimization
ActiFio
Edge Ctlr
Pri &
Secondary
Data
Public Cloud
Device-Independent Data Services in a scalable, extensible platform.
Edge Controller: Primary Storage and Caching Management
2.
Leverage existing Storage
Core Controller: Central repository and management of secondary data: retention,
replication, virtualization, analysis and custom
Single System to manage multi-tier data and analysis: Primary and Secondary.
ActiFio Proprietary & Confidential
35. 3D Approved
• Discontinuous Innovation – Needed to break with the
past, build new architecture around a set of simple rules
• Defensible Technology – Many problems to solve down
this new path. 22 patents in process and counting.
• Disruptive Business Model – Pricing based on how
much data was being protected, not on how that data
was being used. The more use cases, the better the ROI
36. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Startup Secret: Pick a BIG fight!
• It’s often as much work going after a small
fight…
• Big problems often = Big opportunities
At North Bridge we look for “Game Changers”
36
37. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Agenda - Evaluate
Problem
Ideas
Solution
Define
Gain
Pain
Evaluate
Value
Prop
Build
37
38. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Qualitative evaluation
Before
After
Acute Pain
Absolute Joy
38
39. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Qualitative evaluation
Before
After
Vitamin vs. Penicillin
Acute Pain
Absolute Joy
39
45. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Quantitative Evaluation
• Introducing the gain/pain ratio
Gain
Pain
45
46. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
“Gain/Pain ratio”
• The gain delivered to the customer
vs.
• The pain and cost for the customer to adopt
Gain
Pain
46
47. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Gain
•
•
•
•
•
•
•
Revenue
Cost savings
Time
People
Competitive advantage
Reputation
Etc..
Gain
Pain
47
48. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Pain
•
•
•
•
•
•
Gain
Find (See)
Try
Buy
Implement
Deploy
Own – e.g. TCO
Pain
48
49. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Inertia
•
•
•
•
•
Gain
Switching costs?
Default = do nothing
Alternatives?
Good enough =
good enough!
RISK on a startup
Inertia,
RISK
Pain
49
50. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
What’s the right ratio?
Gain
Inertia,
RISK
Pain
50
51. Hi
Harvard innovation lab :
Startup Secrets :
Value Proposition
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
“Gain/Pain ratio”
• > 10 to overcome
– Inertia
– RISK
Pain
Inertia,
RISK
Gain
>10
51
61. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Agenda – Build
Problem
Ideas
Solution
Define
Gain
Pain
Evaluate
Value
Prop
Build
61
62. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Value Prop
• For (target customers)
• Who are dissatisfied with (the current
alternative)
• Our product is a (new product)
• That provides (key problem-solving
capability)
• Unlike (the product alternative)
62
73. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Build around - YOU...
• What problems do you understand uniquely
well?
• What solution can you deliver uniquely well?
• What kind of disruptive business model can
you bring?
73
74. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Summary
1. Define,
– 4U Need (Unworkable, Unavoidable, Urgent,
Underserved)
– 3D Solution (Discontinuous, Defensible, Disruptive)
2. Evaluate
– Gain/Pain >10
3. Build
– Around YOU!
74
75. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
#startupsecrets
www.mjskok.com
Thank you…
Follow online
www.mjskok.com
• Ash Ashutosh,
Founder & CEO
• Mike Troiano,
CMO
@mjskok
/mjskok
linkedin.com/in/mjskok
bit.ly/mjskok-google
bit.ly/mjskok-youtube
75
76. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Value Proposition
@mjskok
Harvard innovation lab
#startupsecrets
www.mjskok.com
START UP
SECRETS
An insider’s guide to unfair competitive advantage
Building a Compelling
Value Proposition
MICHAEL J SKOK
North Bridge Venture Partners
mjskok.com
twitter: @mjskok
77
Editor's Notes
In the real world you’d iterateToday we’re going to do a workshop to allow you to build a value proposition
For (target customers—beachhead segment only) Who are dissatisfied with (the current market alternative) Our product is a (new product category) That provides (key problem-solving capability). Unlike (the product alternative), We have assembled (key whole product features for your specific application).Moore, Geoffrey A. (2009-03-17). Crossing the Chasm: Marketing and Selling Technology Project (p. 154). Harper Collins, Inc.. Kindle Edition.
In the real world you’d iterateToday we’re going to do a workshop to allow you to build a value proposition
Customer problem or need
Over the last decade, there have been several innovations to try to reduce the cost and complexity of the storage infrastructure. In each case a individual company delivered the innovatons, while the incumbents try to catch on.
Defining the problem….
NOT, faster, cheaper, betterNOT Incremental, marginal!3D !Initially at the expense of whole product is ok, partner, or provide professional services to fill in gaps
NOT, faster, cheaper, betterNOT Incremental, marginal!3D !Initially at the expense of whole product is ok, partner, or provide professional services to fill in gaps
For (target customers—beachhead segment only) Who are dissatisfied with (the current market alternative) Our product is a (new product category) That provides (key problem-solving capability). Unlike (the product alternative), We have assembled (key whole product features for your specific application).Moore, Geoffrey A. (2009-03-17). Crossing the Chasm: Marketing and Selling Technology Project (p. 154). Harper Collins, Inc.. Kindle Edition.
Who here has an iPhone?When you take a picture on your iPhone, you create, say, a 1 meg file.Photostream puts that photo on your laptop and your iPadInstagram it, and it goes to Twitter and Facebook as well.Now your 1 meg file takes up 6 megs of space in the world.
Well the same things happens in the enterprise.But it happens at multi-terabyte scale.