True ventures 072011
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The document provides an overview of Customer Development, which is the process startups use to search for a business model. It discusses how startups should test hypotheses about their problem, customer, product, and other business model components by getting out of the building and talking to customers. The Lean LaunchPad process of building a minimum viable product and continuously pivoting based on customer feedback is highlighted. An example is given of a team that conducted customer interviews over 8 weeks and pivoted from an autonomous mowing idea to focus on weeding for organic farmers after determining a bigger problem and opportunity.
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True ventures 072011
- 1. Welcome to Customer DevelopmentSteve BlankStanford - School of EngineeringU.C. Berkeley - Haas School Of Businesswww.steveblank.comTwitter: sgblankSlides at: slideshare.net/sblank
- 2. I Write a Blog www.steveblank.com
- 3. I Drew ThisCustomerDiscoveryCompany BuildingCustomerValidationCustomer CreationPivot
- 4. I Called It:Customer DevelopmentCustomerDiscoveryCompany BuildingCustomerValidationCustomer CreationPivot
- 5. This Talk is Based OnBusiness Model GenerationFour Steps to the EpiphanyLean Startup
- 7. i.e. Product/Market fit- Repeatable sales model- Managers hiredWhat’s A Startup?Search ExecuteA Startup is a temporary organization used to search for a repeatable and scalable business model
- 8. The Memo You Never GetThe Transition – Founders LeaveScalableStartupTransitionLarge CompanySearch BuildExecuteFounders depart
- 10. Process
- 11. Beginning of scaleStartups Search and PivotThe Search for the Business ModelScalableStartupTransitionLarge Company Business Model found by founders customer needs/product features found i.e. Product/Market fit Repeatable sales model- Managers hired
- 12. Startups Search, Companies ExecuteThe Execution of the Business ModelThe Search for the Business ModelScalableStartupTransitionLarge Company- Cash-flow breakeven- Profitable- Rapid scale- New Senior Mgmt~ 150 peopleBusiness Model found
- 13. Product/Market fit- Repeatable sales model- Managers hired
- 14. Metrics Versus AccountingThe Execution of the Business ModelScalableStartupTransitionLargeCompanyTraditional AccountingBalance Sheet
- 15. Cash Flow Statement
- 16. Income StatementMetrics Versus AccountingThe Search for the Business ModelThe Execution of the Business ModelScalableStartupTransitionLargeCompanyStartup Metrics Customer Acquisition Cost
- 18. Customer Lifetime Value
- 19. Average Selling Price/Order Size
- 20. Monthly burn rate
- 21. etc. Traditional Accounting Balance Sheet
- 22. Cash Flow Statement
- 23. Income StatementCustomer Validation Versus SalesThe Execution of the Business ModelScalableStartupTransitionLargeCompanySalesSales Organization
- 24. Scalable
- 25. Price List/Data Sheets
- 26. Revenue PlanCustomer Validation Versus SalesThe Search for the Business ModelThe Execution of the Business ModelScalableStartupTransitionLargeCompanyCustomer Validation Early Adopters
- 28. Not yet repeatable
- 30. Scalable
- 31. Price List/Data Sheets
- 32. Revenue PlanEngineering Versus Agile DevelopmentThe Execution of the Business ModelScalableStartupTransitionLarge CompanyEngineering Requirements Docs.
- 34. QA
- 35. Tech PubsEngineering Versus Agile DevelopmentThe Search for the Business ModelThe Execution of the Business ModelScalableStartupTransitionLarge CompanyEngineering Requirements Docs.
- 37. QA
- 38. Tech PubsAgile Development Continuous Deployment
- 40. Self Organizing Teams
- 41. Minimum Feature Set
- 42. PivotsStartups Model, Companies PlanThe Execution of the Business ModelScalableStartupTransitionLarge CompanyBusiness Plan describes “knowns”
- 43. features
- 45. business modelStartups Model, Companies PlanThe Search for the Business ModelThe Execution of the Business ModelScalableStartupTransitionLarge CompanyBusiness Model
- 47. customer needs
- 48. feature set
- 49. business model
- 50. found by iteration
- 52. Known features for line extensions
- 54. Known business modelHow Do Startups Search For A Business Model?The Search is Customer Development
- 55. The Implementation is Agile Development
- 56. The Sum is the Lean StartupCustomer Development
- 57. I Have a Vision
- 58. I Know What Needs to Be Done
- 59. Lets Launch a New Product!
- 60. Five Ways Founders Fail
- 61. #1I Know Who The Customer Is
- 62. #2I Know Exactly the Product They Need
- 63. #3I Know the Problem They Have
- 64. #4We Can Fix It After We Ship It All
- 65. #5All I Need to Do is Execute the Plan
- 66. Product Introduction ModelConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship
- 67. Product Introduction ModelThe Leading Cause of Startup DeathConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship
- 68. Product Introduction Model:Two Implicit AssumptionsCustomer Problem: knownConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship Product Features: known
- 69. Tradition – Hire MarketingConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing
- 70. Tradition – Hire SalesConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing Build Sales Organization
- 71. Hire Sales VP
- 72. Hire 1st Sales StaffSales
- 73. Tradition – Hire Bus DevelopmentConceptProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing Build Sales Channel / Distribution
- 74. Hire Sales VP
- 75. Pick distribution ChannelSalesBusiness Development Hire First Bus Dev
- 76. Do deals for FCSTradition – Hire EngineeringConceptProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing Build Sales Channel / Distribution
- 77. Hire Sales VP
- 78. Pick distribution ChannelSalesBusiness Development Hire First Bus Dev
- 79. Do deals for FCSEngineering Write MRD
- 80. Waterfall
- 81. Q/A
- 82. Tech PubsNo Business Plan survives first contact with customers
- 83. Startups Are Not Smaller Versions of Large Companies
- 84. Startups Are Not Smaller Versions of Large CompaniesLarge Companies Execute Known Business Models
- 85. Startups Are Not Smaller Versions of Large CompaniesStartups Search for Unknown Business Models
- 86. So Search for a Business Model
- 87. The Business Model:Any company can be described in 9 building blocks
- 88. CUSTOMER SEGMENTSwhich customers and users are you serving? which jobs do they really want to get done?
- 89. VALUE PROPOSITIONSwhat are you offering them? what is that getting done for them? do they care?
- 90. CHANNELShow does each customer segment want to be reached? through which interaction points?
- 91. CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
- 92. REVENUE STREAMSwhat are customers really willing to pay for? how? are you generating transactional or recurring revenues?
- 93. KEY RESOURCESwhich resources underpin your business model? which assets are essential?
- 94. KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial?48
- 95. KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?
- 96. COST STRUCTUREwhat is the resulting cost structure? which key elements drive your costs?
- 97. value propositioncustomer relationshipskey activitiescustomer segmentskey partnerscost structurerevenue streamskey resourceschannels51images by JAM
- 98. sketch out your business model
- 99. sketch out your business models
- 102. Customer DevelopmentThe founders^Get Out of the Building
- 103. Customer DevelopmentThe Search For the Business ModelCompanyBuildingCustomerDiscoveryCustomerValidationCustomer CreationPivot
- 104. Customer DiscoveryCustomerDiscoveryCustomerValidationCompanyBuildingCustomerCreationStop selling, start listeningTest your hypothesesContinuous DiscoveryDone by founders
- 106. Market Type
- 107. CompetitionTurning Hypotheses to Facts
- 109. Customer
- 110. User
- 111. PayerTest Hypotheses:ChannelTest Hypotheses:Demand CreationTest Hypotheses:Problem
- 112. Customer
- 113. User
- 115. Market Type
- 117. (Customer)
- 118. (Problem)Test Hypotheses:ChannelTest Hypotheses:Size of Opportunity/Market
- 119. Validate Business ModelTest Hypotheses:Pricing Model / PricingTest Hypotheses:Demand CreationTest Hypotheses:Problem
- 120. Customer
- 121. User
- 122. PayerAgile DevelopmentTest Hypotheses:Product
- 123. Market Type
- 125. (Customer)
- 126. (Problem)Customer Development TeamTest Hypotheses:ChannelTest Hypotheses:Size of Opportunity/Market
- 127. Validate Business ModelTest Hypotheses:Pricing Model / PricingThe Minimum Viable Product (MVP) Smallest feature set that gets you the most … - orders, learning, feedback, failure…
- 128. The PivotThe heart of Customer Development
- 130. Fast, agile and opportunisticPivot Cycle Time MattersSpeed of cycle minimizes cash needs
- 131. Minimum feature set speeds up cycle time
- 132. Near instantaneous customer feedback drives feature setThe PivotA Pivot is the change of one or more Business Model Canvas Components
- 133. The PivotStrong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAPublishingDoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveA Pivot is the change of one or more Business Model Canvas Components Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsCapital Equipment Sales and disposable itemPer use fees
- 134. How Does This Really Work?Stanford Lean LaunchPad Class
- 135. How Does This Really Work?Stanford Lean LaunchPad Class8 Weeks From an Idea to a Business
- 136. Pivot ExampleRobotic WeedingTalked 75 Customers in 8 Weeks
- 138. 20 interviews, 6 site visits…We got OUR Boots dirtyWeedingVisited two farms in Salinas Valley to better understand problemInterviewed:Bolthouse Farms, Large Agri-Industry in Bakersfield
- 139. White Farms, Large Peanut farmer in Georgia
- 140. REFCO Farms, large grower in Salinas Valley
- 141. Rincon Farms, large grower in Salinas Valley
- 142. Small Organic Corn/Soy grower in Nebraska
- 143. Heirloom Organics, small owner/operator, Santa Cruz Mts
- 144. Two small organic farmers at farmers market
- 145. Ag Services of Salinas, Fertilizer applicatorMowingInterviewed:Golf: Stanford Golf course
- 146. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
- 147. Toro dealer (large mower manufacturer)
- 148. User of back-yard mowing system
- 149. Maintenance Services for City of Los Altos
- 150. Colony Landscaping (Mowing service for stadiums)Business Plan Autonomous Vehicles for Mowing & WeedingDealers sell, installs and supports customerCo. trains dealers, supports dealers- Innovation- Customer Education- Dealer trainingMowing- Owners of public or commercially used green spaces (e.g. golf courses)- Landscaping service providerWeeding- Farmers with manual weeding operationsWe reduce operating cost- Labor reduction- Better utilization of assets (eg mow or weed at nights)- Improved performance (less rework, food safety)- Dealers (Mowing and Ag)- Vehicle OEMs (John Deere, Toro, Jacobsen, etc)- Research labs- Mowing Dealers- Ag DealersEngineers on Autonomous vehicles, GPS, path-planningAsset saleOur revenue stream derives from selling the equipmentDealer discount COGS seek a 50-60% Gross MarginHeavy R&D investment
- 151. Found weeding in organic crops is HUGE problem; 50 - 75% of costsCrews of 100s-1000Back-breaking task(Ilegal) labor harder to get 1-5 weedings per year/field$250-3,500 per acre and increasingFood contamination risk
- 152. Decision to make – mowing vs weeding
- 153. Autonomous vehiclesWEEDINGDealers sell, installs and supports customerCo. trains dealers, supports dealers- Innovation- Customer Education- Dealer training- Low density vegetable growers- High density vegetable growers- Thinning operations- Conventional vegetablesWe reduce operating cost- Labor reduction (100 to 1)- Reduced risk of contamination- Mitigate labor availability concerns- Ag Dealers- Ag Service providers- Research labs- Ag Dealers- Ag Service providersEngineers on Machine VisionTwo problems:- Identification- EliminationAsset saleOur revenue stream derives from selling the equipmentDealer discount COGS seek a 50-60% Gross MarginHeavy R&D investment
- 154. 1 Week – 1 CarrotBotConfidential
- 155. CarrotBotMachine Vision data collection platformMonochrome & Color CamerasLaser-line sweep (depth measurement)Encoders (position/velocity)Onboard data acquisition & powerCarrotBot 1.0
- 156. The Business Plan Canvas UpdatedFarming conventions.
- 157. Demo, demo, and demo!!
- 159. Technology Design
- 160. Marketing
- 161. Demo and customer feedback
- 162. Organic Farmers
- 164. Conventional Farmers
- 165. Cost Reduction
- 166. Remove labor force pains
- 168. Research Labs
- 170. Distribution Network
- 171. Service Providers
- 172. IP – Patents
- 174. Robust Technology
- 175. Dealers
- 176. Direct Service
- 177. Indirect Service
- 178. … then Dealers
- 179. Asset Sale
- 180. Direct Service with equipment rental
- 181. … then Asset SaleValue-Driven
- 182. Visit HighlightsAbove: Organic Carrots, 7wks. Top right: Conventional carrotsBottom Right: Very weedy. Will require multiple passes of hand weeding
- 183. Visit HighlightsCarrot vs. WeedsDue to small root systems, carrots have no chance against weeds
- 184. Visit HighlightsOrganic Broccoli, closely cultivated. Weeds close to plants are hand-picked
- 185. Visit HighlightsState of the Art in Weeding Technology for Organic Crops
- 186. Customer HypothesisPre-TestHypothesis Confirmed Growers interested in own equipment
- 187. Industrial (10,000s of acres)
- 188. Large (1,000s of acres)
- 189. Willing to pay $100k for one unit
- 190. Smaller growers (100s of acres) usually subcontract the labor services or rent equipment
- 191. All purchases through local dealers
- 192. Customer service is essentialPost-Test
- 193. Customer Map #1 – Industrial GrowersExample: Bolthouse Farms – Large Industrial Carrot Producer – 8K acres/yr Equipment Operator
- 194. Local Farm Mgr
- 195. Cliff Kirkpatrick, visited
- 196. Director, Ag Technology
- 197. Justin Grove, interviewedEquipment Operator VP, Growing Operations
- 198. CFO, CEO (Jeff Dunn)Cliff, Farm Mgr
- 199. Customer Map #2 – Service ProvidersExample: Ag Services – Service Provider, Salinas Valley Equipment Operator
- 200. Grower
- 201. Service MgrMe (left), Marty (middle, Service Mgr), Doug (right, Grower) ?? (service mgr’s boss)The Business Plan Canvas UpdatedFarming conventions.
- 202. Demo, demo, and demo!!
- 204. Technology Design
- 205. Marketing
- 206. Demo and customer feedback
- 211. Cost Reduction
- 212. Remove labor force pains
- 214. Research Labs
- 216. Distribution Network
- 217. Service Providers
- 218. IP – Patents
- 220. Robust Technology
- 221. Direct Service
- 222. Indirect Service
- 223. … then Dealers
- 224. Direct Service with equipment rental
- 225. ($1,500/d; 120d/yr )
- 228. World Ag Expo interviews:the need is real and wide spread10+ interviews at showEveryone confirmed the needRobocrop, UK based, crude competitor sells for $171 KRevenue StreamMid to small growers prefer a serviceLarge growers prefer to buy, but OK with service until technology is provenCharging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)Confidential
- 229. The Business Plan Canvas UpdatedFarming conventions.
- 230. Demo, demo, and demo!!
- 232. Technology Design
- 233. Marketing
- 234. Demo and customer feedback
- 239. Research Labs
- 241. Distribution Network
- 242. Service Providers
- 243. 2 or 3 Key Farms
- 244. Cost Reduction
- 245. Remove labor force pains
- 247. IP – Patents
- 249. Robust Technology
- 250. Direct Service
- 251. Indirect Service
- 252. … then Dealers
- 253. Direct Service with equipment rental
- 255. High density: $6,000/dValue-Driven R&D
- 256. Bill of Materials
- 257. Training & Service
- 258. SalesAutonomous weeding - FinalDirect- Provide high quality service at competitive price- Innovation- Customer Education- Dealer training- Low density vegetable growers- High density vegetable growers- Thinning operations- Conventional vegetablesWe reduce operating cost- Labor reduction (100 to 1)- Reduced risk of contamination- Mitigate labor availability concerns- Ag Service providers- Research Institutes (eg UC Davis, Laser Zentrum Hannover)- 3-4 key farmsDirect - Alliance with service providers- Eventually sell through dealersEngineers on Machine VisionTwo problems:- Identification- EliminationService provision- Charge by the acre with modifier according to weed density - Eventually move to asset saleCosts for service provisionCOGS seek a 50-60% Gross MarginHeavy R&D investment
- 259. MammOpticsFinal project presentation for E 245 Winter 2011
- 260. Project OverviewInitial industry guesses and customer hypothesis
- 261. MammOpticsInitial IdeaBreast cancerMammographyLeading cause of cancer in women190,000 diagnosis every year US41,000 deaths every year USIncreasing diagnosis rates15%-25% false negatives rate25% false positives rateRequires X-ray radiationLow resolutionMammOpticsNovel technology based on RF-modulated optical spectroscopy Earlier detection
- 262. Non-radiative
- 264. MammOpticsBusiness Model Canvas 1 of 4Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDAHospitalsLeading doctors3rd party manufacturersDistributorsPioneering radiologists inhospitalsRadiation-freeEarlier detectionNon-invasiveIP Leading doctorsTechnical ExpertiseDirect sales to hospitalsProduct DevelopmentClinical trialsOperating CostsCapital equipment sales and disposable item
- 265. MammOpticsMammOpticsBusiness Model Canvas 1 of 4Business Model Canvas 1 of 4Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDAInitial guessInitial guessHospitalsLeading doctors3rd party manufacturersDistributorsPioneering radiologists inhospitalsRadiation-freeEarlier detectionNon-invasiveTest: Customer segment Value propositionInitial guessIP Leading doctorsTechnical ExpertiseDirect sales to hospitalsProduct DevelopmentClinical trialsOperating CostsInitial guessCapital equipment sales and disposable item
- 266. Finding the right customerFrom radiologists to gynecologists
- 267. MammOpticsExcursions into hospitalsDebra IkedaJason DaviesJafi Alissa LipsonSunita PalLeading doctors6 women >40 8 women <40PatientsAlicia X-ray mammographyTechniciansHospital ManagersPaul BillingsHolly V. Gautier
- 268. MammOpticsHospital purchasing decision tree
- 269. MammOpticsHospital purchasing decision treeHospitalsComplex purchasing decision tree. Several saboteours
- 270. MammOpticsPrivate practice purchasing decision tree
- 271. MammOpticsPrivate practice purchasing decision treePrivate practiceFaster adoption rateAttractive value proposition✔
- 272. MammOpticsBusiness Model Canvas 2 of 4Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDADoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveHospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch HospitalsPioneering DoctorsHospitalsOB/GYNsPCPsDirect Sales to doctorsIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsCapital Equipment Sales and disposable item
- 273. MammOpticsBusiness Model Canvas 2 of 4Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDADoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveHospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch HospitalsPioneering DoctorsHospitalsOB/GYNsPCPsHow do we get to our customer?Need sensitivity and specificityDirect Sales to doctorsIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsCapital Equipment Sales and disposable item
- 274. Getting to our customerThe world of direct sales and medical marketing
- 275. MammOpticsInterviewsBreast Cancer Advocacy GroupsBe Bright PinkJennifer GloverDr. Cindy WooDr. Jags PowersDr. Aaron ShuvkanOB/GYNsKatrina BellTanay DudhelaJed HwangMedical SalesFDA/Clinical TrialsPhyllis WhitelyCarl Simpson
- 276. MammOpticsMarketing
- 277. MammOpticsMarketingStrong influence on doctors via ACOG Standard of CareStrongly influenced by KOLsAccess to ACOG by former member
- 278. MammOpticsMarketingResearchers with strong peer recommendationsResearchers conducting important clinical trialsOutsourced survey researchResearchers with numerous publications
- 279. MammOpticsMarketingFocus on prominent journals Need two big publicationsChoose KOL as Principal Investigators (PI)
- 280. MammOpticsMarketingEffective method for educating doctorsWorkshop must be approved by ACOGDoctors required to attend workshopsTaught by objective medical experts
- 281. MammOpticsMarketingACOG Annual Clinical Meeting Opportunity for feedback from doctorsMiami Breast Cancer Conference
- 282. MammOpticsMarketingTrusted information source for patientsAccess to media outletsCritical opinion leader for technology adoption
- 283. MammOpticsChannel Strategies and CostsIndividualDoctorsHigh value medical products(e.g. cardiovascular stents)Direct SalesDoctor education
- 284. Direct feedback from doctors
- 285. Very expensiveIndividual DoctorsPurchasing AdministratorsPurchasing AdministratorsCommodity medical products(e.g. latex gloves)DistributorsNo doctor education
- 286. No customer feedback
- 287. InexpensiveMammOpticsChannel Strategies and CostsSales strategy 1Sales strategy 25 dedicated sales people$150,000 each/yearHire nurses or technicianswith establishedrelationshipsEarly adopter feedbackContinue with core group of sales peopleUse women’s healthcare equipment distributorAlready established network of customers
- 288. MammOpticsPricing StrategyEquipment Lease modelPer-use modelConsumableCost of the device$50,000$5,000$5,000$25,000Service per year$3,000$10,00000Per-use fee00$500Consumable000$20
- 289. MammOpticsPricing StrategyApproved by customers and investorsEquipment Lease modelPer-use modelConsumableCost of the device$50,000$5,000$5,000$25,000Service per year$3,000$10,00000Per-use fee00$500Consumable000$20
- 290. MammOpticsCustomer WorkflowCurrent marketInsuranceMammographyRadiologistHospital AdministrationTechnicianACOGACSDoctor specialty committee
- 291. MammOpticsCustomer WorkflowCurrent marketBut what would happen if we replace mammography?InsuranceMammographyRadiologistHospital AdministrationTechnicianACOGACSDoctor specialty committee
- 292. MammOpticsCustomer WorkflowInsuranceMammographyRadiologistBreast RadiologistsHospitalsTechniciansLoss of jobsEliminates loss leaderPuts emphasis on biopsiesLoss of jobsHospital AdministrationTechnicianACOGACSDoctor specialty committee
- 293. MammOpticsCustomer WorkflowInsuranceMammographyRadiologistHospital AdministrationTechnicianACOGACSDoctor specialty committee
- 294. MammOpticsCustomer WorkflowInsuranceMammographyRadiologistInsuranceACOG/ACSSame cost as mammography ($140)Reduced number of biopsies ($1000)Improved healthcare(mammography weak technique)Hospital AdministrationTechnicianACOGACSDoctor specialty committee
- 295. MammOpticsCustomer WorkflowInsuranceMammographyRadiologistHospital AdministrationTechnicianACOGACSDoctor specialty committee
- 296. MammOpticsCustomer WorkflowInsurancePCPOB/GYNMammographyPatientRadiologistHospital AdministrationTechnicianMammOpticsDoctor specialty committee ACOGACS
- 297. MammOpticsCustomer WorkflowInsurancePCPOB/GYNPCPOB/GYNMammographyMammographyPatientPatientRadiologistRadiologistPCP OB/GYNsPatientMammOpticsIncreased revenueMore complete patient careImproved healthcareComfortRevenueHospital AdministrationTechnicianHospital AdministrationTechnicianMammOpticsMammOpticsDoctor specialty committee ACOGACS
- 298. MammOpticsCustomer WorkflowInsurancePCPOB/GYNMammographyPatientRadiologistHospital AdministrationTechnicianMammOpticsACOGACSDoctor specialty committee
- 299. MammOpticsBusiness Model Canvas 3 of 4Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAPublishingDoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveLeading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsCapital Equipment Sales and disposable itemPer use fees
- 300. MammOpticsBusiness Model Canvas 3 of 4Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursementPublishingDoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveLeading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSOB/GYNsPCPsLearned how to reach the customerHow do we build a company based on this?Direct Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsCapital Equipment Sales and disposable itemPer use fees
- 301. Building the companyThe backstage of a medical device company
- 302. MammOpticsInterviewsStanford StatisticsSteve AxelrodMarga Ortigas-WedekindFDA Clinical TrialsNick MourlasDon ArchambaultManufacturingShannon BergstedtAli HabibReimbursementVenture CapitalistsDana MeadBill StarlingDoctors/SalesDr. Aron ShuftanJed HwangMichael J. Nohr
- 303. MammOpticsPartnersManufacturingChoose manufacturing facility close to home
- 304. DSPRFICPhoto probeDisposable headMammOpticsManufacturing PartnerI.I.T.Y.I.W.H.T.K.Y 9 Inches~5 lbs75% gross marginDiscounts for Revenue ModelCOGS$4-5k per unit
- 306. MammOpticsMammOpticsPartnersPartnersManufacturingReimbursementManufacturingDifficult to get coverage for new product.
- 308. MammOpticsPartnersManufacturingReimbursement510K vs. PMALargest costBiggest financial riskFDA Clinical Trials
- 309. MammOpticsClinical TrialsStage 1Pilot trialsFeasibilityComparison with mammography50 patients$600K6 months12/4/2009
- 310. MammOpticsClinical TrialsStage 2Interim trialsProve superior safety-efficacy & sensitivityStage 1Pilot trials500 patients$7.2M6 months15 months12/4/2009
- 311. MammOpticsClinical TrialsStage 2Interim trialsStage 3FDA pivotal trialsStage 1Pilot trialsFDA class II, 510(K) w/ trialsFocus on superiority & economic end-points1500 patients$20.5M6 months15 months24 months12/4/2009
- 312. MammOpticsClinical TrialsStage 4Post-market studiesStage 2Interim trials2000 patients$26.8MStage 3FDA pivotal trialsStage 1Pilot trialsSpecific Cat III CPT/ACP CodesMarket traction6 months15 months24 months24 months12/4/2009
- 313. MammOpticsClinical TrialsStage 4Post-market studiesStage 2Interim trials$26.8MStage 3FDA pivotal trialsStage 1Pilot trials$7.2M$600K$20.5M6 months15 months24 months24 months12/4/2009
- 315. MammOpticsMammOpticsPartnersPartnersManufacturingReimbursementFinancial timeline FundingFDA Clinical Trials
- 316. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018M&A / IPO $50 MMQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3Series D $35 MM$40MSeries C $30.5 MM$30M$20MCash ReserveSeries B $9 MM$15MSeries A $3.5 MM$10M$5MFinancial timeline SystemInitializeLaunch Regulatory / ClinicalMarketable ProductProof of ConceptSecond ReleaseBeta PrototypeDesign Milestones1st Release Test2nd Release TestBeta-Version TestingLaboratory PrototypePublicationPublicationClinical ResultsPost-Market Clinical StudiesPilot StudiesUS Pivotal Clinical TrialsClinical MilestonesUS Interim TrialsNon-Specific Codes Provisional PatentIRB / IDESpecific Codes (Cat. I CPT / APC)Cat III CPTFDA – Class II – 510 (k) with Clinical TrialsRegulatory/ IP MilestonesApplication and System PatentsInitial Product LaunchIC and Processing PatentsTechnology Licensing14512/4/2009
- 317. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3$40M$30M$20MCash Reserve$15M$10M$5MInitializeProof of ConceptDesign MilestonesClinical MilestonesProvisional PatentRegulatory/ IP MilestonesTechnology Licensing14612/4/2009
- 318. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3$40M$30M$20MCash Reserve$15MSeries A $3.5 MM$10M$5MSystemInitializeProof of ConceptBeta PrototypeDesign MilestonesBeta-Version TestingLaboratory PrototypePilot StudiesClinical MilestonesProvisional PatentRegulatory/ IP MilestonesTechnology Licensing14712/4/2009
- 319. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3$40M$30M$20MCash ReserveSeries B $9 MM$15MSeries A $3.5 MM$10M$5MSystemRegulatory / ClinicalMarketable ProductBeta PrototypeDesign MilestonesBeta-Version TestingLaboratory PrototypePilot StudiesClinical MilestonesIRB / IDERegulatory/ IP MilestonesApplication and System PatentsIC and Processing Patents14812/4/2009
- 320. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3$40MSeries C $30.5 MM$30M$20MCash ReserveSeries B $9 MM$15M$10M$5MSystemRegulatory / ClinicalSecond ReleaseDesign Milestones1st Release TestPublicationPilot StudiesUS Pivotal Clinical TrialsClinical MilestonesUS Interim TrialsIRB / IDECat III CPTRegulatory/ IP MilestonesApplication and System PatentsIC and Processing Patents149
- 321. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3Series D $35 MM$40MSeries C $30.5 MM$30M$20MCash Reserve$15M$10M$5MLaunch Regulatory / ClinicalSecond ReleaseDesign Milestones2nd Release TestPublicationPublicationClinical ResultsUS Pivotal Clinical TrialsClinical MilestonesUS Interim TrialsNon-Specific Codes FDA – Class II – 510 (k) with Clinical TrialsRegulatory/ IP MilestonesInitial Product Launch15012/4/2009
- 322. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018M&A / IPO $50 MMQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3Series D $35 MM$40M$30M$20MCash Reserve$15M$10M$5MLaunch Regulatory / ClinicalDesign MilestonesPublicationPost-Market Clinical StudiesClinical ResultsClinical MilestonesNon-Specific Codes Specific Codes (Cat. I CPT / APC)FDA – Class II – 510 (k) with Clinical TrialsRegulatory/ IP MilestonesInitial Product Launch12/4/2009
- 323. MammOpticsMammOpticsFinancial / Operations Timeline2016201220132014201520172018M&A / IPO $50 MMQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q1Q2Q3Q4Q3Series D $35 MM$40MSeries C $30.5 MM$30M$20MCash ReserveSeries B $9 MM$15MSeries A $3.5 MM$10M$5MSystemInitializeLaunch Regulatory / ClinicalMarketable ProductProof of ConceptSecond ReleaseBeta PrototypeDesign Milestones1st Release TestBeta-Version Testing2nd Release TestLaboratory PrototypePublicationPublicationPost-Market Clinical StudiesClinical ResultsPilot StudiesUS Pivotal Clinical TrialsClinical MilestonesUS Interim TrialsNon-Specific Codes Provisional PatentIRB / IDESpecific Codes (Cat. I CPT / APC)Cat III CPTFDA – Class II – 510 (k) with Clinical TrialsRegulatory/ IP MilestonesApplication and System PatentsInitial Product LaunchIC and Processing PatentsTechnology Licensing15212/4/2009
- 324. MammOpticsBusiness Model Canvas 4 of 4Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursement PublishingDoctors:Earlier detectionPriceAccuracyImmediate ResultsPatients:Radiation FreeNon-InvasiveKOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSClinical trial designerOB/GYNsPCPsDirect Sales to hospitalsDistributorOnlineIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsPer use fees
- 325. MammOpticsBusiness Model Canvas 4 of 4Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursement PublishingKOLs3rd party manufacturersBreast Cancer FoundationsACOGACSClinical trial designerEarlier detectionNon invasivePriceAccuracyImmediate ResultsOB/GYNsPCPsFinal iteration of our business modelBut… need to think about the big picture…Direct Sales to hospitalsDistributorOnlineIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsPer use fees
- 326. MammOpticsBusiness Model Canvas 1Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDAHospitalsLeading doctors3rd party manufacturersDistributorsRadiation-freeEarlier detectionNon invasivePioneering DoctorsHospitalsDirect Sales to hospitalsIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsCapital Equipment Sales and disposable item
- 327. MammOpticsBusiness Model Canvas 2Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDAHospitalsLeading doctors3rd party manufacturersDistributorsResearch HospitalsRadiation-freeEarlier detectionNon invasivePioneering DoctorsHospitalsDirect Sales to hospitalsIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsCapital Equipment Sales and disposable item
- 328. MammOpticsBusiness Model Canvas 3Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDADoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveHospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch HospitalsPioneering DoctorsHospitalsDirect Sales to hospitalsIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsCapital Equipment Sales and disposable item
- 329. MammOpticsBusiness Model Canvas 4 Strong clinical dataTrainingMaintenanceProduct DevelopmentIPClinical trialsFDADoctors:Earlier detectionPriceAccuracyImmediate ResultsPatients:Radiation FreeNon-InvasiveHospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch HospitalsBreast Cancer FoundationsPioneering DoctorsHospitalsOB/GYNsPCPsDirect Sales to hospitalsIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsCapital Equipment Sales and disposable item
- 330. MammOpticsBusiness Model Canvas 5Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursementPublishingDoctors:Earlier detectionPriceAccuracyPatients:Radiation FreeNon-InvasiveLeading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsCapital Equipment Sales and disposable item
- 331. MammOpticsBusiness Model Canvas 6Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursement PublishingDoctors:Earlier detectionPriceAccuracyImmediate ResultsPatients:Radiation FreeNon-InvasiveKOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsCapital Equipment Sales and disposable itemPer use fees
- 332. MammOpticsBusiness Model Canvas 7Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursement PublishingDoctors:Earlier detectionPriceAccuracyImmediate ResultsPatients:Radiation FreeNon-InvasiveKOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSClinical trial designerOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsPer use fees
- 333. MammOpticsBusiness Model Canvas 8Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursement PublishingDoctors:Earlier detectionPriceAccuracyImmediate ResultsPatients:Radiation FreeNon-InvasiveKOLs3rd party manufacturers(local)Breast Cancer FoundationsACOGACSClinical trial designerOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsPer use fees
- 334. MammOpticsBusiness Model Canvas 9Strong clinical dataTrainingMaintenanceConferencesCME coursesProduct DevelopmentIPClinical trialsFDAReimbursement PublishingDoctors:Earlier detectionPriceAccuracyImmediate ResultsPatients:Radiation FreeNon-InvasiveKOLs3rd party manufacturers(local)Breast Cancer FoundationsACOGACSClinical trial designerOB/GYNsPCPsDirect Sales to hospitalsDistributorIP Leading doctorsTechnical ExpertiseProduct DevelopmentClinical trialsOperating CostsMarketing CostsPer use fees
- 335. Personal Libraries
- 336. Insight: No more bookshelveseBooks+150% YoY ‘10Printed Books -20% YoY ‘10
- 337. Version 1.0: Personal Libraries
- 338. Original Idea: Personal Digital LibrariesImport, organize and share thousands of digital papers
- 339. something-something-something.comOriginal ideaInvincible Business Model: Version 1.0SHORT TERMResearchersLawyersScientists LONG TERMAvid book readersProfessionals Import, organize and share thousands of papersFB/TW posts from users you knowCompany blog, FB, TW, support forumsTargeted marketingProduct developmentConstant iteration & testingLibraries, Universities, Research CentersBloggers and media targeting customer segmentAcademic Database providersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersAWS InfrastructureSEMEng & Marketing OpExAffiliate program feesLicensingSubscription feesAd revenue
- 340. Here’s What We DidVersion 1.0: Personal Libraries
- 341. Got out of the building
- 342. Got out of the building100+ InterviewsProfessors, Litigators, IP lawyers, Post-docs, PhD researchers, Engineering Students, Law Students…
- 343. Got out of the building100+ Interviews
- 344. Extensive SurveysGot out of the building100+ Interviews
- 345. Extensive Surveys
- 346. 33,000+ AdwordsGot out of the building100+ Interviews
- 347. Extensive Surveys
- 348. 33,000+ Adwords
- 349. Compete ReviewGot out of the building100+ Interviews
- 350. Extensive Surveys
- 351. 33,000+ Adwords
- 352. Compete Review
- 353. Market SizingGot out of the building100+ Interviews
- 354. Extensive Surveys
- 355. 33,000+ Adwords
- 356. Compete Review
- 357. Market Sizing
- 358. 50 bloggersGot out of the building100+ Interviews
- 359. Extensive Surveys
- 360. 33,000+ Adwords
- 361. Compete Review
- 362. Market Sizing
- 363. 50 bloggers
- 364. 6 Social NetworksGot out of the building100+ Interviews
- 365. Extensive Surveys
- 366. 33,000+ Adwords
- 367. Compete Review
- 368. Market Sizing
- 369. 50 bloggers
- 370. 6 Social Networks
- 371. Usability TestsGot out of the building100+ Interviews
- 372. Extensive Surveys
- 373. 33,000+ Adwords
- 374. Compete Review
- 375. Market Sizing
- 376. 50 bloggers
- 377. 6 Social Networks
- 378. Usability Tests
- 379. Rapid IterationHere’s What We FoundVersion 1.0: Personal Libraries
- 380. Here's what we found: Version 1.0A great business if we had more users…GOODSubscriptions RockHere's what we found: Version 1.0Shorter pages raise conversions 80%GOODSubscriptions Rock
- 381. Pipelines OptimizeHere's what we found: Version 1.0Sites will feature your serviceGOODSubscriptions Rock
- 382. Pipelines Optimize
- 383. The Web ListensHere's what we found: Version 1.0GOODSubscriptions Rock
- 384. Pipelines Optimize
- 385. The Web ListensBADAcademics = CheapTeaching team saw pattern in our data
- 386. Run away from this customer as fast as possible.
- 387. Run away from this customer as fast as possible. They don’t want to spend money and will incur infinite support and infinite cost.
- 388. Here's what we found: Version 1.0Working for peanuts, and hitting wild product success leads to economic failureGOODSubscriptions Rock
- 389. Pipelines Optimize
- 390. The Web ListensBADAcademics = Cheap
- 391. Negative MarginsHere's what we found: Version 1.0GOODSubscriptions Rock
- 392. Pipelines Optimize
- 393. The Web ListensBADAcademics = Cheap
- 394. Negative Margins
- 395. ECM = BoringNo adjacent pivots worked for the team
- 396. Version 2.0: Trusted Advice
- 397. something-something-something.comOriginal ideaInvincible Business Model: Version 2.0Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)Developing trusted advice and advisorsWeb marketing Affiliate partnershipsConstant iteration & testingFB/TW posts from users you knowCompany blog, FB, TW accountsDiscover online goods recommended by friends at the lowest possible price from trusted vendorsBloggers and Media targeting customer segmentRetail marketing partnersIE/FF/Chrome teamsAffiliate Program ProvidersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersContent LibraryInstall baseReadership baseAWS InfrastructureSEMEng & Marketing OpExAffiliate program feesLicensingSubscription feesAd revenue
- 398. New Hypotheses
- 399. Here’s What We DidVersion 2.0: Trusted Advice
- 400. Got out of the building, again40+ InterviewsGot out of the building, again40+ Interviews
- 401. Extensive SurveysGot out of the building, again40+ Interviews
- 402. Extensive Surveys
- 403. Landing Page TestsLanding pages tested on affluent, career aged professionals, approximately 70/30 male/female, N=800+
- 404. Got out of the building, again40+ Interviews
- 405. Extensive Surveys
- 406. Landing Page Tests
- 407. Market ResearchGot out of the building, again40+ Interviews
- 408. Extensive Surveys
- 409. Landing Page Tests
- 410. Market Research
- 411. Compete ResearchGot out of the building, again40+ Interviews
- 412. Extensive Surveys
- 413. Landing Page Tests
- 414. Market Research
- 415. Compete Research
- 416. Revenue AnalysisGot out of the building, again40+ Interviews
- 417. Extensive Surveys
- 418. Landing Page Tests
- 419. Market Research
- 420. Compete Research
- 421. Revenue Analysis
- 423. Got out of the building, again40+ Interviews
- 424. Extensive Surveys
- 425. Landing Page Tests
- 426. Market Research
- 427. Compete Research
- 428. Revenue Analysis
- 429. Two Prototypes
- 430. Refined PersonasCustomer Segment: Professional-class consumers shopping frequently online Pat the ProfessionalUpwardly mobile professional (some Grad Students)Salary: $40,000 – 150,000/yearFinance, Consulting, PR, MarketingFollows fashion/technology trendsSpends $1-15K on discretionary items onlinePurchased online in last 30 daysDemographicsMale/female, aged 18-35
- 431. Minimum bachelors from expensive schoolTraits:Ideas from blogs & shopping websites
- 432. Values celebrity trends & friends’ opinions
- 433. Wants high ticket items at lowest price
- 434. Event-driven shopper—new release or saleMotivationCraves new products
- 435. Hates tedious work
- 436. Identifies as influencer among friends
- 437. Fears being cheated onlineBehaviorSpends 5 hour+ monthly hearing about products
- 438. Shares online and in person about products he lovesBudget$2-10K+/year in discretionary online purchases“The XXX is awesome, I really want one. I know I just bought the YYY, but it’s probably time to upgrade.” ~5.9M “Pat the Professionals” in USDrawn from top 1/3 of 17.8M frequent online shoppers17.8M based on 40.2M Professionals (2008 Census) * 0.762 US Internet Penetration (Nielsen 2010Q1) * 0.58 consumers shopping online in last month (Nielsen 2010Q1) Online Recommendation Market Opportunity (conservative strawman #s)Assuming 10% share, 5% affiliate feesTop Shoppers (~$7B/year spend): ~ $35M/year Professional-class frequent shoppers (~$1.8B/year): ~ $9M/yearOther Professional-class shoppers ($0.7B/year): ~3.5M/year Source: US Bureau of Labor Statistics
- 439. Version 2.0: Trusted AdviceTop ~6M US Influentials (~$9B/year)
- 440. something-something-something.comOriginal ideaInvincible Business Model: Version 2.0Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)Developing trusted advice and advisorsWeb marketing Affiliate partnershipsConstant iteration & testingFB/TW posts from users you knowCompany blog, FB, TW accountsDiscover online goods recommended by friends at the lowest possible price from trusted vendorsBloggers and Media targeting customer segmentRetail marketing partnersIE/FF/Chrome teamsAffiliate Program ProvidersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersContent LibraryInstall baseReadership baseAWS InfrastructureSEMEng & Marketing OpExAffiliate program feesLicensingSubscription feesAd revenue
- 441. Here’s What We FoundVersion 2: Trusted Advice
- 442. Findings on "Trusted Advice"GOODFast InterestInsidely.comTrusted advice site for Silicon Valley/Stanford MBAsLaunched 2/15425 visitors by 2/28
- 443. Findings on "Trusted Advice"Ranked #6 by Google for “Stanford Admissions Books”GOODFast InterestFindings on "Trusted Advice"GOODFast Interest
- 444. High Conversion43% clickthroughon Top Admissions Books for Stanford MBAs articleCompare to 0.5% clickthrough on ads~100x difference
- 445. Findings on "Trusted Advice"Positive results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 446. High Conversion
- 447. Needs Addressed See videos at http://factnote.com/c/e245
- 448. Findings on "Trusted Advice"Positive results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 449. High Conversion
- 450. Needs Addressed Super easy to install and use.I really did enjoy it! Great idea! I will keep the extension installed because I do think this is practical!I could see myself using this regularly
- 451. Findings on "Trusted Advice"Some negative results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 452. High Conversion
- 453. Needs Addressed BADMissing FeaturesSee videos at http://factnote.com/c/e245
- 454. Findings on "Trusted Advice"Some negative results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 455. High Conversion
- 456. Needs Addressed BADMissing FeaturesI was a little frustrated when it didn’t find the item I was looking forI can find more thorough price comparisons elsewhere…I usually don’t shop in Chrome, so that’s an inconvenience.
- 457. Findings on "Trusted Advice"MBA Exchange spams us out of GoogleGOODFast Interest
- 458. High Conversion
- 459. Needs Addressed BADMissing Features
- 460. SEO BattleHere’s Where We Ended Up Version 2.1: Trusted Advice
- 461. The adventure continuesTrusted Advice 2.0Protection against SEO-spammersNext Experiments: Trusted Lead Gen
- 462. Trusted Advice website powered by Shopping Add-insomething-something-something.comOriginal ideaInvincible Business Model: Version 3.0PAT THE PROFESSIONALUpwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)Developing trusted advice and advisorsWeb marketing Affiliate partnershipsConstant iteration & testingFB/TW posts from users you knowCompany blog, FB, TW accountsBloggers and Media targeting customer segmentRetail marketing partnersIE/FF/Chrome teamsAffiliate Program ProvidersTRUSTED ADVICE Discover online goods recommended by friends at the lowest possible price from trusted vendorsFoil advertorial spammers polluting the Interweb with toxic pseudo-contentAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersContent LibraryInstall baseReadership baseAWS InfrastructureSEMEng & Marketing OpExAffiliate program feesLicensingSubscription feesAd revenue
- 463. What We LearnedPotential for disruption aboundsWhat We LearnedPotential for disruption abounds
- 464. Life is short, focus on big marketsWhat We LearnedPotential for disruption abounds
- 465. Life is short, focus on big markets
- 466. All we need is to be relentlessBlog Your Progress
- 467. How?Customer DevelopmentThe ProcessNarrativeInterviewsSurveysVideosPrototypesBusiness Model CanvasScorekeepingReal-time FeedbackPhysical Reality ChecksSkypeFace-to-face
- 468. We Made Students Blog Their ProgressIt Changed Everything
- 469. Interview
- 470. PhotosVideos
- 471. Surveys
- 472. Interview& Photos
- 473. Competitive Analysis
- 474. Key Findings
- 475. A/B Test Results
- 476. Key Question
- 477. Strategy
- 478. Business Model Canvas as the Scorecard
- 480. Customer DevelopmentTesting Your HypothesesSteve BlankStanford - School of EngineeringU.C. Berkeley - Haas School Of Businesswww.steveblank.comTwitter: sgblank
- 481. I Write a Blog www.steveblank.com
- 482. This Talk is Based OnBusiness Model GenerationFour Steps to the EpiphanyLean Startup
- 483. Customer Discovery Phase 1 - Hypotheses
- 484. Customer DiscoveryCustomerDiscoveryCustomerValidationCompanyBuildingCustomerCreationStop selling, start listeningTest your hypotheses Two are fundamental: problem and product concept
- 485. Customer DiscoveryPhase 3TestSolutionHypothesisPhase 4Verify, Iterate & ExpandCustomerDiscoveryTo ValidationPhase 1AuthorHypothesisPhase 2Test ProblemHypothesis
- 486. Customer Discovery
- 487. Customer Discovery Inside the BuildingOutside the Building
- 488. Value Prop 1Product/MVPCustomersWho/ProblemChannelsPhysical/VirtualValue Prop 2Market TypeRevenue StreamsPricingCustomer RelationshipsGet/Keep/GrowPartnersKey ResourcesCustomer Discovery Phase 1 - Hypotheses
- 489. Value Prop 1Product/MVPCustomersWho/ProblemChannelsPhysical/VirtualValue Prop 2Market TypeLong-Term Vision/ Mkt SizeRevenue StreamsPricingCustomer RelationshipsGet/Keep/GrowPartnersKey ResourcesCustomer Discovery Value Proposition – Product/MVPProduct Features/BenefitsMVP
- 490. VALUE PROPOSITIONSwhat are you offering them? what is that getting done for them? do they care?
- 491. Testing the MVPSmoke testing with landing pages using AdWordsIn-product split-testingPrototypes (particularly for hardware)Removing featuresContinued customer discovery and validationSurveysInterviews
- 492. Testing the MVP (Web Example)Can you get customers to pay for a product that doesn’t yet exist (or barely does)?Do customers say they have a matching core problem?Landing page test for conversionWhat’s required to get customers to activate? (prizes, payment)Use customer problem to identify key word list plug into Google search traffic estimator - high traffic means there is problem awarenessDrive traffic to site using Google search and see how deep into a registration process customers are willing to go through
- 493. Testing the MVP (Non-Web)Can you get customers to pay for a product that doesn’t yet exist (or barely does)?Interview customers to make sure they have a matching core problemSet up web site landing page to test for conversionSet up a Lighthouse Customer Program where potential customers pay to get early access to product prototypes
- 494. CustomersWho/ProblemValue Prop 1Product/MVPChannelsPhysical/VirtualValue Prop 2Market TypeRevenue StreamsPricingCustomer RelationshipsGet/Keep/GrowPartnersKey ResourcesCustomer Discovery Customer Segments
- 495. CUSTOMER SEGMENTSwhich customers and users are you serving? which jobs do they really want to get done?
- 496. Who’s The Customer?Consumer End Users, Corporate Customers PayMultiple ConsumersEtc.
- 497. Market/Opportunity AnalysisHow Big is It?: Market/Opportunity AnalysisIdentify a Customer and Market NeedSize the MarketCompetitorsGrowth Potential
- 498. How Big is the Pie?Total Available MarketTotal Available MarketHow manypeople would want/needthe product?
- 499. How large is the market be (in $’s) if they all bought?
- 500. How many units would that be?How Do I Find Out?Industry Analysts – Gartner, Forrester
- 501. Wall Street Analysts – Goldman, MorganHow Big is My Slice?Served Available MarketHow many people need/can use product?
- 502. How many people have the money to buy the product
- 503. How large would the market be (in $’s) if they all bought?
- 504. How many units would that be?How Do I Find Out?Talk to potential customersServed Available MarketTotalAvailableMarket
- 505. How Much Can I Eat?Target MarketWho am I going to sell to in year 1, 2 & 3?
- 506. How many customers is that?
- 507. How largeis the market be (in $’s) if they all bought?
- 508. How many units would that be?How Do I Find Out?Talk to potential customers
- 509. Identify and talk to channel partners
- 510. Identify and talk to competitorsTotalAvailableMarketServedAvailableMarketTarget Market
- 511. SegmentationIdentification of groups most likely to buyTotalAvailableMarketGeographic
- 512. Demographic
- 514. Behavioral variables
- 515. Channel
- 517. Market Size: SummaryMarket Size Questions:How big can this market be? How much of it can we get?Market growth rateMarket structure (Mature or in flux?)Most important: Talk to Customers and Sales ChannelNext important: Market size by competitive approximationWall Street analyst reports are greatAnd : Market research firms Like Forester, Gartner
- 518. Corporate? Consumer?Business to Business (B to B)Use or buy inside a companyBusiness to Consumer (B to C)Use or buy for themselvesBusiness to Business to Consumer (B to B to C)Sell a business to get to a consumerOther Multi-sided Markets with multiple customers
- 519. What do they want you to do?CorporateIncrease revenue?Decrease costs?Get them new customers?Keep up with or pass competitors?How important is it?
- 520. What do they want you to do?ConsumersDoes it entertain them?Does it connect them with others?Does it make their lives easier?Does it satisfy a basic need?How important is it?Can they afford it?
- 521. Market Type & Ignoring CustomersExisting Market? Resegmenting an Existing Market?niche or low costNew Market?When do I ignore customer feedback?
- 522. Who’s the Customer in a Company?User?Influencer?Recommender?Decision Maker?Economic Buyer?Saboteur?Archetypes for each?
- 523. MammOpticsHospital purchasing decision treeHospitalsComplex purchasing decision tree. Several saboteours
- 524. MammOpticsPrivate practice purchasing decision tree✔Private practiceFaster adoption rateGood value proposition
- 525. MammOpticsCustomer WorkflowInsuranceRadiologistPCPOB/GYNMammographyPatientTechnicianHospital AdministrationSales representativesDemand CreationDoctor specialty committee ACOGACSMammOptics
- 526. How Do Corporate Customers Interact to Buy?Organization ChartInfluence MapSales Road Map
- 527. Consumer Customer InteractionsDo they buy it by themselves?Do they need approval of others?Do they use it alone or with others?
- 528. Pass/Fail Signals & ExperimentsHow do you test interest?Where do you test interest?What kind of experiments can you run?How many do you test?
- 529. How Do They Hear About You?Demand CreationNetwork effectSales
- 530. ChannelsPhysical/VirtualValue Prop 1Product/MVPCustomersWho/ProblemValue Prop 2Market TypeRevenue StreamsPricingCustomer RelationshipsGet/Keep/GrowPartnersKey ResourcesCustomer Discovery Channels
- 531. Multiple Customer SegmentsEach has its own Value PropositionEach has its own Revenue StreamOne segment cannot exist without the otherWhich one do you start with?
- 532. CHANNELShow does each customer segment want to be reached? through which interaction points?
- 533. OEMSystem IntegratorsDirect Sales ForceOur CustomersValue-Added Resellers (VAR’s)Our CompanyDealersDistributorsRetail/Mass MerchantsWeb/OnlineOEMSystem IntegratorsDirect Sales ForceValue-Added ResellerDealersDistributorsRetailers/Mass Merchants