Heat Exchanger Manufacturer

Design Sources and

Technical Experts

Fluid SynchronyElectronic

Health Records

Electronic Health

Records

Hospitals

(Anesthesiologists

Neurosurgeons)

Pump + Controlle

r

Support Services

Bundled Kits

Electronic

Records

Scheduled follow-up

Patient Discharged

Surgery/Rx/

reprogramming

Trial period/ Home setting

Partners/

OEMS

Partners/

OEMS

Actionable feedbackto doctors/institutions

E-prescription / closing loop

- Process shortened to days - Improves outcomes

What We Found: Patient Care Flow

4

Fluid Synchrony

Pay for coverage

Hospital Reimbursement

Product purchase

Service provided

CPT reimbursementPump $13,305Surgical Kit $2887Refill Kit $200

What We Found: Value Chain

Product and Payment Flows

5

• B2B2C customer relationship• MySkin Technology customer are also strategic partners• Instrument is simple and inexpensive enough for broad deployment

• B2B2C customer relationship• MySkin Technology customer are also strategic partners• Instrument is simple and inexpensive enough for broad deployment

Contract Manufacturer

Cosmetics Firm or Spas / Salons

MySkin TechDepartment Stores or Sales Reps

Consumer

MySkinTone Product Money Cosmetics

$200unit

$500 - $1Kunit

Cosmetic Money

$250Year

IncreasedSales

6

Precursor Synthesis

Finished product

Precursor in Cassette

Cassette (device)

I-Corps Final Presentation 12/14/11

Patients

Sourcing for Expanded Product Offering

Fluid SynchronyElectronic

Health Records

Electronic Health

RecordsOEMSOEMS

Hospitals

(Anesthesiologists

Neurosurgeons)

Pain Clinic

(Anesthesiologists

Neurosurgeons)

Pump + Controlle

r

Support Services

Bundled Kits

Electronic

Records

7

PartnerPartner

PartnerPartner

The Lean LaunchPad

Lecture 3: Customers

Steve Blank

Jon Feiber

Jon Burke

Jerry Engel

#leanlaunchpad

Agenda

• Team Bus Model Presentations• Customer Segment

– Business model = b-to-b, b-to-c, b-to-b-to-c– Ecosystem= payers, users, saboteurs, advocates

VALUE PROPOSITIONS

images by JAM

what are you offering them? what is that getting done for them? do they

care?

CUSTOMER SEGMENTS

images by JAM

which customers and users are you serving? which jobs do they really want

to get done?

CUSTOMER SEGMENTS

images by JAM

which customers and users are you serving? which jobs do they really want

to get done?

Where we are…

Test Hypotheses:• Problem• Customer• User• Payer

Test Hypotheses:• Problem• Customer• User• Payer

Don’t Confuse Customer with the Sales Channel!

Who’s The Customer?

PatientsTraining

Hospitals

Unit sales

Trade shows

Clinicians

Institutions

Support Services

Pain clinics

Clinical dataKOLs Formulary Acceptance

FDA

IP

Advocacy Groups

Foundations

OEMs

Manufacturing Costs

Product Dev Costs

FDA/Clinical Trials

FS Team

Payors/ICA

Marketing Costs

• Personalized relief• Comfort

• Efficient patient management• Dosing flexibility• Simpler surgery (placement)

Access to high-value therapies and pharmacoeconomics

pharmacoeconomics

Support

Proprietary knowledge

Human Resources

Electronic records

Electronic health record providers

Bundled kits

CMS (Medicare)

17

Canvas (11/15/11)Chronic Pain v7

PatientsTraining

Hospitals

Unit sales

Trade shows

Clinicians

Institutions

Support Services

Pain clinics

Clinical dataKOLs Formulary Acceptance

FDA

IP

Advocacy Groups

Foundations

OEMs

Manufacturing Costs

Product Dev Costs

FDA/Clinical Trials

FS Team

Payors/ICA

Marketing Costs

• Personalized relief• Comfort

• Efficient patient management• Dosing flexibility• Simpler surgery (placement)

Access to high-value therapies and pharmacoeconomics

pharmacoeconomics

Support

Proprietary knowledge

Human Resources

Electronic records

Electronic health record providers

Bundled kits

CMS (Medicare)

18

Canvas (11/15/11)Chronic Pain v7

Business Canvas -

Business Canvas -

General methodology for adding fluorine to

lead compounds of interest

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

General methodology for adding fluorine to

lead compounds of interest

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

The Business Model Canvas - #1

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IPKnow How

Franchise

Service For Waste Removal

Crew Training

Secure feedstock

RelationshipsWith

Landowners

Blanket Manufacturer

FieldOperation

CapitalFixed costs

The Business Model Canvas - #1

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IPKnow HowDistributors

Personal Assistance

Personal Assistance

DirectSale

Sale of Biochar

Biochar userIndustrial

Biochar userRetail Gardening

Biochar userAgricultural

Biochar usersEnergy

Wholesale

Retail

Franchise

Service For Waste Removal

Low costReliable Char

source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

PeoplePeople

FieldOperation

CapitalFixed costs

Low costSupply

The Business Model Canvas - #1

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IPKnow HowDistributors

Personal Assistance

Personal Assistance

DirectSale

Sale of Biochar

Biochar userIndustrial

Biochar userRetail Gardening

Biochar userAgricultural

Biochar usersEnergy

Wholesale

Retail

Franchise

Service For Waste Removal

Low costReliable Char

source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

PeoplePeople

FieldOperation

CapitalFixed costs

Low costSupply

H2/HC Monitoring In

Severe Environments

H2/HC Monitoring In

Severe Environments

EfficiencyEfficiency

Severe Environment Operators

Severe Environment Operators

Provide infrastructure

Provide infrastructure

Component sourcingComponent sourcing

DirectDirect

Domain Specific Suppliers

Domain Specific Suppliers

DistributorsDistributors

Sensor SalesSensor SalesMonitoring ServicesMonitoring Services

RoyaltiesRoyalties

Research Institutes and

Journals

Research Institutes and

Journals

Contract Design Shops

+ Suppliers/Manufacturers

Contract Design Shops

+ Suppliers/Manufacturers

Domain Suppliers, Regulatory

and Government

Domain Suppliers, Regulatory

and Government

FixedFixedSupplier EconomicsSupplier Economics

Sales and MarketingSales and Marketing

Product DevelopmentProduct

Development

ProductionProduction

IP and ExpertiseIP and

Expertise

Capital AssetsCapital Assets

26

Regulatory/InsuranceRegulatory/Insurance

Minimum Viable Product

Minimum Viable ProductReliably

detect species of interest

Reliably detect species of interestEasy to useEasy to useSync with

other maint. cycle

Sync with other maint.

cycleWireless(if volume)

Wireless(if volume)

Domain Specific Suppliers (especially if R&D is needed)

Domain Specific Suppliers (especially if R&D is needed)

ApplicationsApplications

Chlorine ProductionChlorine Production

Oil and GasOil and Gas

Power Infrastructure

Power Infrastructure

……

H2/HC Monitoring In

Severe Environments

H2/HC Monitoring In

Severe Environments

EfficiencyEfficiency

Severe Environment Operators

Severe Environment Operators

Provide infrastructure

Provide infrastructure

Component sourcingComponent sourcing

DirectDirect

Domain Specific Suppliers

Domain Specific Suppliers

DistributorsDistributors

Sensor SalesSensor SalesMonitoring ServicesMonitoring Services

RoyaltiesRoyalties

Research Institutes and

Journals

Research Institutes and

Journals

Contract Design Shops

+ Suppliers/Manufacturers

Contract Design Shops

+ Suppliers/Manufacturers

Domain Suppliers, Regulatory

and Government

Domain Suppliers, Regulatory

and Government

FixedFixedSupplier EconomicsSupplier Economics

Sales and MarketingSales and Marketing

Product DevelopmentProduct

Development

ProductionProduction

IP and ExpertiseIP and

Expertise

Capital AssetsCapital Assets

27

Regulatory/InsuranceRegulatory/Insurance

Minimum Viable Product

Minimum Viable ProductReliably

detect species of interest

Reliably detect species of interestEasy to useEasy to useSync with

other maint. cycle

Sync with other maint.

cycleWireless(if volume)

Wireless(if volume)

Domain Specific Suppliers (especially if R&D is needed)

Domain Specific Suppliers (especially if R&D is needed)

ApplicationsApplications

Chlorine ProductionChlorine Production

Oil and GasOil and Gas

Power Infrastructure

Power Infrastructure

……

MammOpticsPrivate practice purchasing decision tree

MammOpticsHospital purchasing decision tree

Insurance

Doctor specialty committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

ACOGACS

MammOptics

Patient

PCPOB/GYN

Corporate Customers

Business to Business (B to B)

What do they want you to do?

• Increase revenue?• Decrease costs?• Get them new customers?• Keep up with or pass competitors?• How important is it?

Market Type & Ignoring Customers

• Existing Market? • Resegmenting an Existing Market?

– niche or low cost

• New Market?

• When do I ignore customer feedback?

Who’s the Customer in a Company?

• User?• Influencer?• Recommender?• Decision Maker?• Economic Buyer?• Saboteur?• Archetypes for each?

How Do They Interact to Buy?

• Organization Chart• Influence Map• Sales Road Map

Pass/Fail Signals & Experiments

• How do you test interest?• Where do you test interest?• What kind of experiments can you run?• How many do you test?

How Do They Hear About You?

• Demand Creation• Network effect• Sales

Consumer Customers

Business to Consumer (B to C)

What do they want you to do?

• Does 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?

Market Type & Ignoring Customers

• Existing Market? • Resegmenting an Existing Market?

– niche or low cost

• New Market?

• When do I ignore customer feedback?

Consumer Customers

• Do they buy it by themselves?• Do they need approval of others?• Do they use it alone or with others?

How Do They Decide to Buy?

• Demand Creation• Viral?• SEO/SEM• Network effect?• AARRR (Dave McClure)

Pass/Fail Signals & Experiments

• How do you test interest?• Where do you test interest?• What kind of experiments can you run?• How many do you test?

The Consumer Sales Channel

• A product that’s bits can use the web• But getting a physical consumer product into

retail distribution is hard• Is Wal-Mart a customer?• More next week

Multi-Sided Markets

Business to Business to Consumer

(B to B to C)

Who’s The Customer?

• Consumer End Users, Corporate Customers Pay

• Multiple Consumers• Etc.

Multiple Customer Segments

• Each has its own Value Proposition• Each has its own Revenue Stream• One segment cannot exist without the other• Which one do you start with?