Seminar about "value proposition for scientific invention" for Federal Lab researchers at NIST. The primary purpose of this presentation was really not to turn NIST scientists to entrepreneurs, but rather build awareness of entrepreneur thinking and commercial language, when transferring scientific inventions from Lab to Market.

1. Nov 6th, 2014 Gaithersburg, MD

2. ?
?
IMPACT = Social & economic impact on the U.S. society

3. Scientific Value
Commercial
User Value
Publication 1
Publication 2
Publication ...
* A Best Guess is 100% better than nothing

4. Filed Patents
Visibility to business execs, entrepreneurs and investors
Visibility to industry research community and academia

5. Transferring Value From Lab To Market

6. Research
Results from lab
Large Corporations and Spin-offs
New Products in Marketplace = Impact & Benefit
•Publications
•Conferences
•CRADA
•IP Licensing

7. Market
Assessment
(EIR)
Business
Model
(EIR)
Invention
disclosure,
IP filing
• Novelty
• Prior-art
• Match with
NIST mission
• Ready for licensing
&
• Ready for spin-off
• Market potential
• Validated value
proposition
Commercial
IMPACT
AK 9/16/2014
Markets and customers
Inventor’s
Value
Proposition
• Commercial
value
proposition
hypothesis
Draft diagram, similar programs under discussion at NIST

8. I-Corps 6 weeks Team of 3 20 h per week 100 customer calls

9. NIST Inventor + EIR 5-10 customer calls = value proposition 1.0 hypothesis validated I-Corps, TEDCO, IP-Crossing, etc. outsourced programs*
*Future programs & outside providers being evaluated at PTO

10. (1) Clarity (Commercial Value) (2) Communication (Commercial language)
To maximise NIST’s IMPACT on the market, we need: (1) Clarity (Commercial Value vs. Scientific Value) (2) Communication (Commercial Language vs. Patenting Language)

11. Building Business.

12. Time
Company Growth
No need for product
Good-enough Solutions available already
Market/business not big enough
Entrepreneur Mistake #1: Fell in love with his first idea/product!
Entrepreneur Mistake #3: Failed to test and validate Value Proposition!
Entrepreneur Mistake #2: Failed in assessing the market size!
3 Ways to Fail:

13. 66% of succesful startups CHANGE their original plans

14. ”No plan survives first contact with the enemy.” - Helmuth von Moltke the Elder

15. ”No business plan survives first contact with a customer.”
- Steve Blank
”No business plan survives first contact with a customer.” - Steve Blank

16. ”Everyone has a plan until they get punched in the face.” - Mike Tyson
”Everyone has a plan until they get punched in the face.” - Mike Tyson

17. A dynamic diagram of business ... just a set of hypotheses
(Business) Plan Does NOT Guarantee Success

18. http://www.slideshare.net/sblank/lean-launchpad-educators-handbook-sept-2013

19. Lean Startup:

20. Your BUSINESS MODEL is the PRODUCT

21. Lean Startup Myths:
(1) Lean startup is Bootsrapping!
(2) Lean startup is a shortcut!

22. PROBLEM/SOLUTION FIT
Big enough problem vs. unique solution?
Markets and customers

23. PROBLEM/SOLUTION
FIT
PRODUCT/MARKET
FIT
Using MVP, validate that
A)Customers want your product and
B)Business model is scaleable/repeatable
Markets and customers
MVP

24. PROBLEM/SOLUTION FIT
PRODUCT/MARKET FIT
SCALE
SCALE: execute business and
grow your Gross Margin faster than your OPEX!
Markets and customers
MVP

25. Customers don’t care about your solution.

26. Customers only care about their PROBLEM.

27. Value Proposition.

28. VALUE = BENEFITS – COSTS
Easy!
...whose benefit?

29. VALUE PROPOSITION = Defines the benefits the end-users will gain from your invention

31. NIST Value Proposition Toolbox
1.WHAT is the problem?
2.WHO has the problem?
3.WHAT are the current methods of solving the problem?
4.WHAT is your solution and its advantage?
5.WHAT is the customer benefit from your advantage?

32. Value Proposition Template
For [customer], who [wants/needs to do X], our new invention is a [solution with customer language], that provides [the key use- case/benefit it delivers], and unlike competing methods, such as [key competitors/competing methods], our invention [key differentiators, use numbers, or %], at a price [less than, equal to, or higher than competing methods].
Adopted from: Crossing the Chasm by Geoffrey Moore

33. ?
?
IMPACT = Social & economic impact on the U.S. society

34. Thank You! Mr. Antti Korhonen Guest Researcher/EIR antti.korhonen@nist.gov Tel: 703-504-8157 For consulting engagements, contact: anttik@takehill.com www.takehill.com