lecture 1: business model & customer development
TRANSCRIPT
![Page 1: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/1.jpg)
The Lean LaunchPad
Lecture 1: Business Models and Customer Development
Steve Blank
Jon Feiber
Jon Burke
http://i245.stanford.edu/
![Page 2: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/2.jpg)
What’s A Company?
![Page 3: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/3.jpg)
What’s A Company?
A business organization which sells a product or service in exchange for revenue
and profit
![Page 4: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/4.jpg)
How Are Companies Organized?
![Page 5: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/5.jpg)
How Are Companies Organized?
Companies are organized around Business Models
![Page 6: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/6.jpg)
What’s a Business Model?
![Page 7: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/7.jpg)
What’s a Business Model?
A business model describes all the parts of the company necessary to make money
![Page 8: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/8.jpg)
What About My Technology?
![Page 9: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/9.jpg)
What About My Technology?
Your technology is one of the many critical pieces necessary to build a company.
It is part of the “Value Proposition”
![Page 10: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/10.jpg)
What About My Technology?
Customers don’t care about your technology
They are trying to solve a problem
![Page 11: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/11.jpg)
What’s A Startup?
![Page 12: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/12.jpg)
What’s A Startup?
A startup is a temporary organization designed to search for a repeatable
and scalable business model
![Page 13: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/13.jpg)
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
![Page 14: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/14.jpg)
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
![Page 15: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/15.jpg)
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
![Page 16: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/16.jpg)
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
• Web startups get the product in front of customers earlier
Business Model(s)
Size of the Opportunity
![Page 17: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/17.jpg)
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
![Page 18: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/18.jpg)
buzzgroup
![Page 19: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/19.jpg)
![Page 20: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/20.jpg)
?A business model describes all the parts of the company necessary to make money
![Page 21: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/21.jpg)
?what are those parts? what parts is a business model composed of?
![Page 22: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/22.jpg)
22
![Page 23: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/23.jpg)
? ?
![Page 24: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/24.jpg)
![Page 25: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/25.jpg)
![Page 26: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/26.jpg)
![Page 27: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/27.jpg)
Business Model Canvas
![Page 28: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/28.jpg)
to describe, challenge, design, and invent business models more systematically
![Page 29: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/29.jpg)
building blocks 9
![Page 30: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/30.jpg)
CUSTOMER SEGMENTS
images by JAM
![Page 31: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/31.jpg)
VALUE PROPOSITIONS
images by JAM
![Page 32: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/32.jpg)
CHANNELS
images by JAM
![Page 33: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/33.jpg)
CUSTOMER RELATIONSHIPS
images by JAM
![Page 34: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/34.jpg)
REVENUE STREAMS
images by JAM
![Page 35: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/35.jpg)
KEY RESOURCES
images by JAM
![Page 36: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/36.jpg)
KEY ACTIVITIES
images by JAM
![Page 37: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/37.jpg)
KEY PARTNERS
images by JAM
![Page 38: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/38.jpg)
COST STRUCTURE
images by JAM
![Page 39: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/39.jpg)
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
![Page 40: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/40.jpg)
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
![Page 41: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/41.jpg)
images by JAM
![Page 42: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/42.jpg)
CANVAS OVERLAY
images by JAM
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
![Page 43: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/43.jpg)
images by JAM
CANVAS OVERLAYOFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
![Page 44: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/44.jpg)
Business Model Canvas
building block
building block
building block
building block
building block
building block
building block
building block
building block
building block
building blockbuilding
block
building block
building block
![Page 45: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/45.jpg)
45
illustration
![Page 46: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/46.jpg)
![Page 47: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/47.jpg)
?why should some of the smartest scientists in the world waste their time thinking about a business model for coffee?
![Page 48: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/48.jpg)
!not just because most scientists drink a lot of coffee. we can learn a lot from innovative business models across industries
![Page 49: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/49.jpg)
how much did the cost of home coffee consumption change for Swiss households over the last couple of years?
![Page 50: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/50.jpg)
600% to 800% more
![Page 51: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/51.jpg)
![Page 52: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/52.jpg)
Nespresso changed the
business (model) for
espresso
![Page 53: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/53.jpg)
RESULTS
![Page 54: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/54.jpg)
one of the fastest-growing businesses in the Nestlé group
![Page 55: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/55.jpg)
average growth of 30% p.a. since 2000
![Page 56: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/56.jpg)
over 3 billion CHF annual revenue with 1 product line(3.2 bio USD)
![Page 57: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/57.jpg)
57
buzz group
![Page 58: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/58.jpg)
?Discuss and describe how you would design a business model around Nespresso’s invention
![Page 59: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/59.jpg)
![Page 60: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/60.jpg)
60
?
? ?
?
?
??
?
?
![Page 61: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/61.jpg)
61
Nespresso machines
retail mailorder
Nespresso
.com
callcenter
Nespresso stores
households
business
1 x machinesales
repetitive pod sales
distribution
channels
coffeeproduction facilites
production
B2C distributi
onbrand
marketing
brandpatents
machine manufacture
r
production
B2C
distributi
onbrand
marketing
Nespresso club
brandbrand
Nespresso pods
![Page 62: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/62.jpg)
but Nespresso almost failed in 1987 due to a nonperforming business model
![Page 63: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/63.jpg)
63
Nespresso system
offices
joint venture with
manufacturer
machine
manufacture
r
![Page 64: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/64.jpg)
![Page 65: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/65.jpg)
?what is the most powerful about using a shared language, such as the Business Model Canvas?
![Page 66: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/66.jpg)
![Page 67: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/67.jpg)
![Page 68: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/68.jpg)
![Page 69: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/69.jpg)
buzz group
![Page 70: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/70.jpg)
![Page 71: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/71.jpg)
71
?
? ?
?
?
??
?
?
![Page 72: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/72.jpg)
possible alternatives
![Page 73: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/73.jpg)
73
radiation-freedetection of breast cancer
hospitals
![Page 74: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/74.jpg)
74
proprietary IP medical device manufacturers
![Page 75: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/75.jpg)
75
?
? ?
?
?
??
?
?
![Page 76: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/76.jpg)
![Page 77: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/77.jpg)
But,Realize They’re Hypotheses
![Page 78: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/78.jpg)
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
![Page 79: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/79.jpg)
How Does This Really Work?
Stanford Lean LaunchPad Class
8 Weeks From an Idea to a Business
![Page 80: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/80.jpg)
MammOpticsFinal project presentation for E 245 Winter 2011
![Page 81: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/81.jpg)
MammOpticsInitial Idea
Breast cancer
Leading cause of cancer in women190,000 diagnosis every year US41,000 deaths every year USIncreasing diagnosis rates
Mammography
15%-25% false negatives rate25% false positives rateRequires X-ray radiationLow resolution
Novel technology based on RF-modulated optical spectroscopy
MammOptics
- Earlier detection- Non-radiative- Non-invasive
![Page 82: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/82.jpg)
MammOpticsTechnology Comparison
RiskInvasiveness
Resolution
False Pos.
False Neg.
Device Cost
Time Require
d
MammOptics
Mammography
High High .6 cm 25% 30% 20-50k 20 min.
MRI Medium Medium .1 cm 70% 5% 1000k 45 min.
Ultra-Sound Very Low Very Low >.6 cm >30% >40% 5-15k 20 min.
I.I.T.Y.I.W.H.T.K.Y
![Page 83: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/83.jpg)
MammOpticsBusiness Model Canvas 1 of 4
Radiation-freeEarlier detectionNon-invasive
Pioneering radiologists inhospitals
Direct sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs Capital equipment
sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributors
![Page 84: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/84.jpg)
MammOpticsBusiness Model Canvas 1 of 4
Radiation-freeEarlier detectionNon-invasive
Pioneering radiologists inhospitals
Direct sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs Capital equipment
sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributors
Initi
al guess
Initi
al guess
Initi
al guess
Initi
al guess
MammOpticsBusiness Model Canvas 1 of 4
Test:Customer segment
Value proposition
![Page 85: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/85.jpg)
Finding the right customerFrom radiologists to gynecologists
![Page 86: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/86.jpg)
MammOpticsExcursions into hospitals
Leading doctors
Patients
Hospital Managers
Technicians
Debra Ikeda Jason Davies
Jafi Alissa LipsonSunita Pal
6 women >40 8 women <40
Alicia X-ray mammography
Paul BillingsHolly V. Gautier
![Page 87: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/87.jpg)
MammOpticsHospital purchasing decision tree
![Page 88: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/88.jpg)
MammOpticsHospital purchasing decision tree
Hospitals
Complex purchasing decision
tree. Several saboteours
![Page 89: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/89.jpg)
MammOpticsPrivate practice purchasing decision tree
![Page 90: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/90.jpg)
MammOpticsPrivate practice purchasing decision tree
Private practice
Faster adoption rate
Attractive value proposition✔
![Page 91: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/91.jpg)
Pioneering DoctorsHospitalsOB/GYNsPCPs
Direct Sales to doctors
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch Hospitals
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 2 of 4
![Page 92: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/92.jpg)
Pioneering DoctorsHospitalsOB/GYNsPCPs
Direct Sales to doctors
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch Hospitals
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 2 of 4
How do we get to our customer?
Need sensitivity and specificity
![Page 93: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/93.jpg)
Getting to our customerThe world of direct sales and medical marketing
![Page 94: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/94.jpg)
MammOpticsInterviews
Breast Cancer Advocacy Groups
OB/GYNs
FDA/Clinical Trials
Medical Sales
Be Bright PinkJennifer Glover
Dr. Cindy WooDr. Jags Powers
Dr. Aaron Shuvkan
Katrina BellTanay Dudhela
Jed Hwang
Phyllis WhitelyCarl Simpson
![Page 95: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/95.jpg)
MammOpticsMarketing
![Page 96: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/96.jpg)
Access to ACOG by former member
Strong influence on doctors via ACOG Standard of Care
Strongly influenced by
KOLs
MammOpticsMarketing
![Page 97: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/97.jpg)
Researchers conducting
important clinical trials
Researchers with numerous
publications
Outsourced survey research
Researchers with strong peer
recommendations
MammOpticsMarketing
![Page 98: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/98.jpg)
Focus on prominent journals Need two big
publications
Choose KOL as Principal Investigators (PI)
MammOpticsMarketing
![Page 99: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/99.jpg)
Effective method for educating doctors
Doctors required to attend workshops
Workshop must be approved by ACOG
Taught by objective medical experts
MammOpticsMarketing
![Page 100: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/100.jpg)
ACOG Annual Clinical Meeting
Miami Breast Cancer Conference
Opportunity for feedback from
doctors
MammOpticsMarketing
![Page 101: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/101.jpg)
Trusted information source for patients
Critical opinion leader for technology adoption
Access to media outlets
MammOpticsMarketing
![Page 102: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/102.jpg)
IndividualDoctors
Purchasing Administrato
rs
High value medical products
(e.g. cardiovascular stents)
Commodity medical products
(e.g. latex gloves)
• Doctor education• Direct feedback from doctors• Very expensive
• No doctor education• No customer feedback• Inexpensive
Direct Sales
Distributors
MammOpticsChannel Strategies and Costs
Individual Doctors
Purchasing Administrato
rs
![Page 103: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/103.jpg)
Channel Strategies and CostsMammOptics
5 dedicated sales people$150,000 each/year
Hire nurses or technicianswith establishedrelationships
Early adopter feedback
Continue with core group of sales people
Use women’s healthcare equipment distributor
Already established network of customers
Sales strategy 1 Sales strategy 2
![Page 104: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/104.jpg)
MammOpticsPricing Strategy
Equipment Lease model
Per-use model
Consumable
Cost of the device
Service per year
Per-use fee
Consumable
$50,000
$3,000
0
0
$5,000
$10,000
0
0
$5,000
0
$50
0
$25,000
0
0
$20
![Page 105: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/105.jpg)
MammOpticsPricing Strategy
Equipment Lease model
Per-use model
Consumable
Cost of the device
Service per year
Per-use fee
Consumable
$50,000
$3,000
0
0
$5,000
$10,000
0
0
$5,000
0
$50
0
$25,000
0
0
$20
Approved by
customers and
investors
![Page 106: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/106.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
RadiologistMammography
MammOpticsCustomer Workflow
Current market Insurance
![Page 107: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/107.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
RadiologistMammography
MammOpticsCustomer Workflow
Current market
But what would happen if we replace mammography?
Insurance
![Page 108: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/108.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
Breast Radiologists
Technicians Hospitals
Loss of jobs
Loss of jobs Eliminates loss leaderPuts emphasis on
biopsies
Insurance
![Page 109: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/109.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
Insurance
![Page 110: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/110.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
InsuranceSame cost as mammography
($140)Reduced number of biopsies
($1000)
ACOG/ACSImproved healthcare(mammography weak
technique)
Insurance
![Page 111: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/111.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Insurance
Radiologist
Mammography
MammOpticsCustomer Workflow
![Page 112: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/112.jpg)
Insurance
Doctor specialty
committee
Hospital Administrati
on
Technician
RadiologistMammography
MammOpticsCustomer Workflow
ACOGACS
MammOptics
Patient
PCPOB/GYN
![Page 113: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/113.jpg)
Insurance
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
ACOGACS
MammOptics
Patient
PCPOB/GYN
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOptics
Patient
PCPOB/GYN
PCP OB/GYNsIncreased revenue
More complete patient care
PatientImproved healthcare
Comfort
MammOpticsRevenue
![Page 114: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/114.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Insurance
Radiologist
Mammography
MammOpticsCustomer Workflow
MammOptics
Patient
PCPOB/GYN
![Page 115: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/115.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 3 of 4
![Page 116: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/116.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAReimbursementPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 3 of 4
Learned how to reach the customer
How do we build a company based on this?
![Page 117: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/117.jpg)
Building the companyThe backstage of a medical device company
![Page 118: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/118.jpg)
MammOpticsInterviews
FDA Clinical Trials
Manufacturing
Venture Capitalists
Reimbursement
Stanford Statistics Steve AxelrodMarga Ortigas-
Wedekind
Nick MourlasDon
Archambault
Shannon BergstedtAli Habib
Dana MeadBill Starling
Doctors/Sales
Dr. Aron Shuftan
Jed HwangMichael J. Nohr
![Page 119: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/119.jpg)
Manufacturing
MammOpticsPartners
Choose manufacturing facility close to
home
![Page 120: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/120.jpg)
Manufacturing Reimbursement
MammOpticsPartners
Difficult to get coverage for new product.
Manufacturing
MammOpticsPartners
![Page 121: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/121.jpg)
Reimbursement PartnersMammOptics
Insurances
CPT Codes$75-$150
![Page 122: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/122.jpg)
MammOpticsPartners
Manufacturing
FDA Clinical Trials
Reimbursement
510K vs. PMALargest cost
Biggest financial risk
![Page 123: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/123.jpg)
Clinical Trials
12/4/2009
Stage 1Pilot trials
50 patients$600K
MammOptics
6 months
FeasibilityComparison
with mammograph
y
![Page 124: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/124.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
500 patients$7.2M
Prove superior safety-
efficacy & sensitivity
![Page 125: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/125.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
24 months
Stage 3FDA
pivotal trials1500
patients$20.5M
FDA class II, 510(K) w/ trials
Focus on superiority &
economic end-points
![Page 126: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/126.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
Stage 3FDA
pivotal trials
Stage 4Post-
market studies2000 patients$26.8M
Specific Cat III CPT/ACP CodesMarket traction
24 months24 months
![Page 127: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/127.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
Stage 3FDA
pivotal trials$600K
$7.2M
$20.5M
$26.8M
Stage 4Post-
market studies
24 months 24 months
![Page 128: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/128.jpg)
MammOpticsPartners
MammOpticsPartners
Manufacturing
FDA Clinical Trials
Reimbursement
Financial timeline
Funding
![Page 129: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/129.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
Series D $35
MM
M&A / IPO $50 MM
$40M
129 12/4/2009
Proof of Concep
t
Pilot Studie
s
IC and Processing Patents
Marketable Product
Provisional Patent
Beta-Versio
n Testin
g
Application and
System Patents
IRB / IDE
Clinical Results
Second Release
Initial Product Launch
Specific Codes (Cat. I CPT / APC)
Non-Specific Codes
1st Release
Test
2nd Release Test
Publication
Post-Market Clinical Studies
Beta Prototype
US Interim Trials
FDA – Class II – 510 (k) with Clinical Trials
Publication
Financial / Operations Timeline
Cat III
CPT
US Pivotal Clinical Trials
Laboratory
Prototype
Technology
Licensing
MammOpticsMammOptics
Financial timeline
![Page 130: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/130.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
$30M
$20M
$40M
130 12/4/2009
Proof of Concep
t
Provisional Patent
Financial / Operations Timeline
Technology
Licensing
MammOpticsMammOptics
![Page 131: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/131.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
$30M
$20M
$40M
131 12/4/2009
Proof of Concep
t
Provisional Patent
Beta-Versio
n Testin
g
Laboratory
Prototype
Beta Prototype
Technology
Licensing
Financial / Operations Timeline
Pilot Studie
s
MammOpticsMammOptics
![Page 132: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/132.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
$30M
$20M
$40M
132 12/4/2009
IC and Processing Patents
Marketable Product
Beta-Versio
n Testin
g
Application and
System Patents
IRB / IDE
Beta Prototype
Financial / Operations Timeline
Pilot Studie
s
Regulatory / Clinical
Laboratory
Prototype
MammOpticsMammOptics
![Page 133: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/133.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
$40M
133
IC and Processing Patents
Application and
System Patents
IRB / IDE
Cat III
CPT
Second Release
1st Release
Test
US Interim Trials US Pivotal Clinical Trials
Publication
Financial / Operations Timeline
Pilot Studie
s
MammOpticsMammOptics
![Page 134: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/134.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
Series D $35
MM
$40M
134 12/4/2009
Clinical Results
Second Release
Initial Product Launch
Non-Specific Codes
2nd Release Test
Publication
US Interim Trials
FDA – Class II – 510 (k) with Clinical Trials
Publication
Financial / Operations Timeline
US Pivotal Clinical Trials
MammOpticsMammOptics
![Page 135: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/135.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
$30M
$20M
Regulatory / Clinical
Series D $35
MM
M&A / IPO $50 MM
$40M
12/4/2009
Clinical Results
Initial Product Launch
Specific Codes (Cat. I CPT / APC)
Non-Specific Codes
Publication
Post-Market Clinical Studies
FDA – Class II – 510 (k) with Clinical Trials
Financial / Operations TimelineMammOpticsMammOptics
![Page 136: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/136.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
Series D $35
MM
M&A / IPO $50 MM
$40M
136 12/4/2009
Proof of Concep
t
Pilot Studie
s
IC and Processing Patents
Marketable Product
Provisional Patent
Beta-Versio
n Testin
g
Application and
System Patents
IRB / IDE
Clinical Results
Second Release
Initial Product Launch
Specific Codes (Cat. I CPT / APC)
Non-Specific Codes
1st Release
Test
2nd Release Test
Publication
Post-Market Clinical Studies
Beta Prototype
US Interim Trials
FDA – Class II – 510 (k) with Clinical Trials
Publication
Financial / Operations Timeline
Cat III
CPT
US Pivotal Clinical Trials
Laboratory
Prototype
Technology
Licensing
MammOpticsMammOptics
![Page 137: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/137.jpg)
Radiation-freeEarlier detectionNon invasive
Pioneering DoctorsHospitals
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributors
MammOpticsBusiness Model Canvas 1
![Page 138: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/138.jpg)
Radiation-freeEarlier detectionNon invasive
Pioneering DoctorsHospitals
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributorsResearch Hospitals
MammOpticsBusiness Model Canvas 2
![Page 139: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/139.jpg)
Pioneering DoctorsHospitals
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch Hospitals
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 3
![Page 140: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/140.jpg)
Pioneering DoctorsHospitalsOB/GYNsPCPs
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch HospitalsBreast Cancer Foundations
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 4
![Page 141: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/141.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDAReimbursementPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 5
![Page 142: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/142.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 6
![Page 143: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/143.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 7
![Page 144: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/144.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturers(local)Breast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 8
![Page 145: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/145.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturers(local)Breast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 9
![Page 146: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/146.jpg)
Customer Development
Get Out of the Building and Search for the Business Model
The founders
^
![Page 147: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/147.jpg)
The Customer Development Process
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
![Page 148: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/148.jpg)
The Minimum Viable Product (MVP)
• Smallest feature set that gets you the most …
- orders, learning, feedback, failure…
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
![Page 149: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/149.jpg)
A Pivot is the change of one or more Business Model Canvas Components
![Page 150: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/150.jpg)
The Pivot
• The heart of Customer Development
• Iteration without crisis
• Fast, agile and opportunistic
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
![Page 151: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/151.jpg)
Pivot Cycle Time Matters
• Speed of cycle minimizes cash needs
• Minimum feature set speeds up cycle time
• Near instantaneous customer feedback drives feature set
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
![Page 152: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/152.jpg)
The Customer Development ProcessCustomer Discovery
Customer Discovery
Customer Validation
Customer Creation
Company Building
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
![Page 153: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/153.jpg)
The Customer Development ProcessCustomer Validation
Customer Discovery
Customer Validation
Customer Creation
Company Building
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
![Page 154: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/154.jpg)
Blog Your Progress
![Page 155: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/155.jpg)
How?
• Customer Development– The Process
• Narrative– Interviews– Surveys– Videos– Prototypes
• Business Model Canvas– Scorekeeping
• Real-time Feedback• Physical Reality Checks
– Skype– Face-to-face
![Page 156: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/156.jpg)
We Made Students Blog Their Progress
It Changed Everything
![Page 157: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/157.jpg)
Interview
![Page 158: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/158.jpg)
Photos Videos
![Page 159: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/159.jpg)
Surveys
![Page 160: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/160.jpg)
Interview& Photos
![Page 161: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/161.jpg)
Competitive Analysis
![Page 162: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/162.jpg)
Key Findings
![Page 163: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/163.jpg)
A/B Test Results
![Page 164: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/164.jpg)
Key Question
![Page 165: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/165.jpg)
Strategy
![Page 166: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/166.jpg)
Business Model Canvas as the Scorecard
![Page 167: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/167.jpg)
Market Type
Four Types of Markets
![Page 168: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/168.jpg)
Type of MarketChanges Everything
• Market– Market Size– Cost of Entry– Launch Type– Competitive
Barriers– Positioning
• Sales– Sales Model– Margins– Sales Cycle– Chasm Width
Clone Market
Existing Market Resegmented Market
New Market
• Finance• Ongoing Capital• Time to Profitability
• Customers• Needs• Adoption
![Page 169: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/169.jpg)
Definitions: Four Types of Markets
• Clone Market– Copy of a U.S. business model
• Existing Market– Faster/Better = High end
• Resegmented Market– Niche = marketing/branding driven– Cheaper = low end
• New Market– Cheaper/good enough, creates a new class of product/customer– Innovative/never existed before
Clone Market
Existing Market Resegmented Market
New Market
![Page 170: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/170.jpg)
Size of Opportunity
![Page 171: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/171.jpg)
Market/Opportunity Analysis
How Big is It?: Market/Opportunity Analysis– Identify a Customer and Market Need– Size the Market– Competitors– Growth Potential
![Page 172: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/172.jpg)
How Big is the Pie?Total Available Market
Total Available Market
• How many people would want/need
the product?
• How large is the market be (in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?
• Industry Analysts – Gartner, Forrester
• Wall Street Analysts – Goldman, Morgan
![Page 173: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/173.jpg)
How Big is My Slice?Served Available Market
• How many people need/can use product?
• How many people have the money to buy the product
• How large would the market be (in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?• Talk to potential customers
Served Available
Market
TotalAvailableMarket
![Page 174: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/174.jpg)
How Much Can I Eat?Target Market
• Who am I going to sell to in year 1, 2 & 3?
• How many customers is that?
• How large is the market be (in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?• Talk to potential customers
• Identify and talk to channel partners
• Identify and talk to competitors
TotalAvailableMarket Target
Market
ServedAvailableMarket
![Page 175: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/175.jpg)
Market Size: Summary
• Market Size Questions:– How big can this market be? – How much of it can we get?– Market growth rate– Market structure (Mature or in flux?)
• Most important: Talk to Customers and Sales Channel• Next important: Market size by competitive approximation
– Wall Street analyst reports are great• And : Market research firms Like Forester, Gartner
![Page 176: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/176.jpg)
Team Deliverable by Tomorrow
1. Hypotheses for each part of business model2. Test for each of the hypotheses
What constitutes a pass/fail signal for the test (e.g. at what point would you say your hypotheses wasn’t even close to correct?
3. Plan to get out of the building to test the hypotheses
• Summarized in a 5 Minute PowerPoint Presentation– Business Model Canvas– Market Size– Getting out of the building plan
Don’t Over Think Your Hypotheses
![Page 177: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/177.jpg)
Sweet Sensors
Yu Xiang and Yi Lu, Nature Chem. 3, 697-703 (2011).
Glucose Monitor:
• Widely available• Cheap• Quantitative
information• $10 billion market
However, it can detect only one target: glucoseand at very high concentrations
We have developed a novel technology to use any glucose monitor without modifications to detect a wide range of non-glucose targets at very low concentrations(such as diseases (e.g., TB), heavy metal ions (e.g., Pb, Hg), organic toxins, bacteria, viruses and cancers)
![Page 178: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/178.jpg)
Examples
![Page 179: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/179.jpg)
Market size
- 300 million patients worldwide
- Required HbA1C testing every 60-90 days
- Available in-home HbA1C tests today are $100/10 tests
- Assuming $1 per test, TAM = $1.2 billion
- Assuming 50% people have the access to a HbA1c test, SAM = $600 million
- Assuming we can capture 20% of SAM (high-end diabetics and early adopters), Target market = $120 million
Total available market = $1.2 billion
Serviceable Available Market = $600 million
Target market = $120 million
![Page 180: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/180.jpg)
Market Size
• Growing market– Aging population– Living Style & Diets
– Chronic disease
• Driving factors– Healthcare costs– Reimbursement– Healthcare labor shortage
Total Available market 170M (US & EU5)
$25B
Target market 3.5M (Resistant Hypertension)$500M
![Page 181: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/181.jpg)
Diabetics
Sweet SensorsYi Lu, Tian LanNeil KaneChris Sorensen
Business Model Canvas
Clinicians (in rural area)
Triage nurses
Pre-diabetics
Product supports
Patient network/community
Retailers (Walgreen)
Online vendors (Amazon)
Direct sales
Disposable test kit (used repeatedly on a regular basis)
At home
Convenient
Less exposure to infectious diseases in the hospital
Cheaper
More frequent
Better indicator of health (diabetic management)
Conferences
Product R&D
QC
Marketing
IP
Personnel
Glucose monitor manufacturers
Kit manufacturers
Reagent suppliers
Reagents
Manufacture
Licensing
FDA certification?
![Page 182: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/182.jpg)
Diabetics
Sweet SensorsYi Lu, Tian LanNeil KaneChris Sorensen
Action Plan
Clinicians (in rural area)
Triage nurses
Pre-diabetics
Product supports
Patient network/community
Retailers (Walgreen)
Online vendors (Amazon)
Direct sales
Disposable test kit (used repeatedly on a regular basis)
At home
Convenient
Less exposure to infectious diseases in the hospital
Cheaper
More frequent
Better indicator of health (diabetic management)
Conferences
Product R&D
QC
Marketing
IP
Personnel
Glucose monitor manufacturers
Kit manufacturers
Reagent suppliers
Reagents
Manufacture
Licensing
FDA certification?
![Page 183: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/183.jpg)
General methodology for
adding fluorine to lead compounds of
interest
The Business Model Canvas
Accessibility (RCY)PuritySpeedPET/SPECTMultiplatformSensitivity (nca)Specific compounds
IPPoP dataRegulatory planUnderstanding of the regulatory process
Contract cGMP precursor manufactureSalary, RentsClinical trials
SOPs for precursors and drugsRecruit clinical sitesIn vivo animal studiesDevelop regulatory plan for pre IND meetingID cGMP CROFund-raising
cGMP manufacturerRadiopharmaciesNuclear Medicine and Radiology departments
Technical Assistance (Image Atlas)FDA regulatory support
Radiopharmacies
Equipment producers
Prescribing physicians
Radiologist who perform studies
Sales of intermediates
Technology license
Product license (royalty)
Direct sales of precursor
R&D and clinical studies presented in journals and meetings
Drug developers
Pharmaceutical development companies
IPPoP data
Radiologists
Technical assistance
![Page 184: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/184.jpg)
General methodology for
adding fluorine to lead compounds of
interest
The Business Model Canvas
Accessibility (RCY)PuritySpeedPET/SPECTMultiplatformSensitivity (nca)Specific compounds
IPPoP dataRegulatory planUnderstanding of the regulatory process
Contract cGMP precursor manufactureSalary, RentsClinical trials
SOPs for precursors and drugsRecruit clinical sitesIn vivo animal studiesDevelop regulatory plan for pre IND meetingID cGMP CROFund-raising
cGMP manufacturerRadiopharmaciesNuclear Medicine and Radiology departments
Technical Assistance (Image Atlas)FDA regulatory support
Radiopharmacies
Equipment producers
Prescribing physicians
Radiologist who perform studies
Sales of intermediates
Technology license
Product license (royalty)
Drug developers
Pharmaceutical development companies
IPPoP data
Radiologists
Technical assistance
Direct sales of precursor
R&D and clinical studies presented in journals and meetings
Sales of precursor through global finished pharmaceutical distributor
![Page 185: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/185.jpg)
Critical Success Factors
• Validation of the need– By talking to diabetic patients, clinician and
nurses
• Validation of the customer segmentation– By talking to glucose monitor and kit
manufactures
• Evidence of market accessibility– By talking to glucose monitor and kit
distributors
![Page 186: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/186.jpg)
Backup
![Page 187: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/187.jpg)
Customer Discovery
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
![Page 188: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/188.jpg)
Customer Discovery - Physical
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
• TAM/SAM• Product MVP• Customers• Channel • Market Type• Customer Relationships: Get/Keep/Grow• Key Resources• Partners• Pricing
![Page 189: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/189.jpg)
Customer Discovery - Web
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
• TAM/SAM• Low Fidelity MVP• Customers/Source• Channel • Market Type• Customer Relationships: Acquire/Activate• Traffic Partners• Pricing
![Page 190: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/190.jpg)
Customer Discovery - Physical
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
• TAM/SAM• Low Fidelity MVP• Customers• Channel • Market Type• Cust Relationships• Traffic Partners• Pricing
• Customer Contacts• Problem Understanding• Customer Understanding• Market Knowledge
![Page 191: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/191.jpg)
Customer Discovery - Web
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
• TAM/SAM• Low Fidelity MVP• Customers• Channel • Market Type• Cust Relationships• Traffic Partners• Pricing
• Customer Engagement• Test Low Fidelity MVP• Customer Understanding• Traffic & Competitive Analysis
![Page 192: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/192.jpg)
Customer Discovery - Physical
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
• TAM/SAM• Low Fidelity MVP• Customers• Channel • Market Type• Cust Relationships• Traffic Partners• Pricing
• Update Bus Model• Create Prototype/Prod Presentation• Test Solution with Customer• Update Business Model• 1st Advisory Board Members
![Page 193: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/193.jpg)
Customer Discovery - Web
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
• TAM/SAM• Low Fidelity MVP• Customers• Channel • Market Type• Cust Relationships• Traffic Partners• Pricing
• Customer Engagement• Test Low Fidelity MVP• Customer Understanding• Traffic & Competitive Analysis
• Update Bus Model• Test High Fidelity MVP• Measure Customer Behavior• Update Business Model• 1st Advisory Board Members
![Page 194: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/194.jpg)
Customer Discovery – Web/Physical
Bus Model Canvas
Extract Hypotheses Test Problem Test Solution Pivot or
Proceed
Verify the:• Value Prop• Cust Segment• Cust Relationships• Channel• Revenue Model• Pivot or Proceed
• TAM/SAM• Low Fidelity MVP• Customers• Channel • Market Type• Cust Relationships• Traffic Partners• Pricing
• Customer Engagement• Test Low Fidelity MVP• Customer Understanding• Traffic & Competitive Analysis
![Page 195: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/195.jpg)
Customer Validation - Web
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
Pivot
![Page 196: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/196.jpg)
Customer Validation - Physical
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
• Craft Positioning• Develop Sales Materials• Hire “Sales Closer”• Sales Channel Action Plan• Refine the Sales Roadmap• Formalize advisory board
![Page 197: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/197.jpg)
Customer Validation - Web
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
• Craft Positioning• Acquire/Activate Plans and Tools• Build High Fidelity MVP• Build Metrics Toolset• Hire data analytics chief • Formalize advisory board
![Page 198: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/198.jpg)
Customer Validation - Physical
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
• Craft Positioning
• Acquire/Activate Plans• Build High Fidelity MVP• Build Metrics Toolset• Hire data analytics chief • Formalize advisory board
• Find Earlyvangelists• Test Sell – Out of the Building• Refine Sales Roadmap• Test Sell Channel Partners
![Page 199: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/199.jpg)
Customer Validation - Web
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
• Craft Positioning
• Acquire/Activate Plans• Build High Fidelity MVP• Build Metrics Toolset• Hire data analytics chief • Formalize advisory board
• Prepare Optimization Plans & Tools• Out of the building Activation Test• Measure and Optimize Results• Test Sell Traffic Partners
![Page 200: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/200.jpg)
Customer Validation - Physical/Web
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
• Craft Positioning• Acquire/Activate Plans• Build High Fidelity MVP• Build Metrics Toolset• Hire data analytics chief • Formalize advisory board
• Prepare Optimization Plans• Out of the building Activation Test• Measure and Optimize Results• Test Sell Traffic Partners
• Company Positioning• Product Positioning• Validate Positioning
![Page 201: Lecture 1: Business Model & Customer Development](https://reader037.vdocuments.net/reader037/viewer/2022103121/55d49856bb61eb92698b4642/html5/thumbnails/201.jpg)
Customer Validation - Physical/Web
Get Ready to Sell Sell, Sell, Sell Positioning Pivot or
Proceed
• Craft Positioning• Acquire/Activate Plans• Build High Fidelity MVP• Build Metrics Toolset• Hire data analytics chief • Formalize advisory board
• Prepare Optimization Plans• Out of the building Activation Test• Measure and Optimize Results• Test Sell Traffic Partners
• Assemble Data• Validate Business Model• Validate Financial Model• Pivot or Proceed