smart windows columbia
TRANSCRIPT
Customer DiscoveryTotal interviews to date: 62 Since last class: 11# Green residential developers with energy saving features: 6# Commercial developers to attract green tenants: 12# Architects, construction managers: 9# Engineering materials researchers: 13# End users: 16# Competitors: 6
More than a window controlling the light, it builds an energy-saving lifestyle.
Team MembersFen Zhang – TechnologyYalan Hu - Marketing
Jixiang Liu – Financial AnalysisJin Fan - Real Estate Professional
Team 2, Cohort 1
Lean Launch Pad 2016.01.11
Key Partners Value PropositionKey Activities Customer Relationships
Customer Segments
ChannelsKey Resources
Revenue StreamsCost Structure
• Real estate developers
• Construction material vendors
• Building architects• Interior designers• Construction
contractors
• Design, produce, supply chain management
• Marketing to end users and owners
• Differentiate from traditional glass market
• Creative ongoing customer feedback
• Product optimization
• Advertisement• Social medias• Trade shows• Industry conferences• Public relations• Professional associations• Customer services• Referrals
End users• Full-time professionals
need multi-function office environments
• Seniors require convenient lifestyles
• Healthcare buildings with high hygiene requirements
• Commercial buildings with large HVAC energy consumption
• Residents need intelligent lifestyles and auto control
Direct sale & dealership• Regional• Global
Professional alliance• Designers alliance• Contractors alliance• Real Estate alliance
• Design• Technology• Community creation• Platform
• Fixed Operational costs for product development and maintenance• Fixed Operational Overhead costs (rent, utilities, etc.)• Variable costs associated with product design, R&D and marketing• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)• Ongoing maintenance service ( Charged to owner or tenants)• Dynamic pricing
Owners• Technology companies• Finance industry• Real estate developers• Building material retailers• Facility management
company• Cost Sensitive, but want
intelligent lifestyles
• An energy‐effective way to control sunlight without shades or blinds
• Manage glare and heat while maintaining a connection to the outdoors
• Increase the living standards and move towards the intelligent household
• One in all solutions for different scenarios and requirements for residents
• Saves Time / Convenience
• Adaptable• Cheaper life cycle cost• Customized design• Intelligent lifestyles
Day 1 Canvas
Lean Launch Pad 2016.01.15
Customers End users
Developers
Residential Commercial Corporate
Build and sold
Budget constraint
Feature by green residential
High end office buildings
Mid-market
Not sensitive to green
Small to middle sizeSmall-market
Fortune 500 with CSR
What we thought
What we land
Lean Launch Pad 2016.01.12
Key Partners Value PropositionKey Activities Customer Relationships
Customer Segments
ChannelsKey Resources
Revenue StreamsCost Structure
• Real estate developers
• Construction material vendors
• Building architects• Interior designers• Construction
contractors
• Design, produce, supply chain management
• Marketing to end users and owners
• Differentiate from traditional glass market
• Creative ongoing customer feedback
• Product optimization
• Advertisement• Social medias• Trade shows• Industry conferences• Public relations• Professional associations• Customer services• Referrals
End users• Full-time professionals
need multi-functional office environments
• Seniors require convenient lifestyles
• Healthcare buildings with high hygiene requirements
• Commercial buildings with large HVAC energy consumption
• Residents need intelligent lifestyles and auto control
Direct sale & dealership• Regional• Global
Professional alliance• Designers alliance• Contractors alliance• Real Estate alliance
• Design• Technology• Community creation• Platform
• Fixed Operational costs for product development and maintenance• Fixed Operational Overhead costs (rent, utilities, etc.)• Variable costs associated with product design, R&D and marketing• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)• Ongoing maintenance service ( Charged to owner or tenants)• Dynamic pricing
Owners• Technology companies• Finance industry• Real estate developers• Building material retailers• Facility management
company• Cost Sensitive, but want
intelligent lifestyles
Day 2 Canvas
End users• An energy‐effective way to
control sunlight without shades or blinds
• Manage glare and heat while maintaining a connection to the outdoors
• Increase the living standards and move towards the intelligent lifestyles
• Customized design and compatible with various styles
Owners• Reduced life cycle cost• Reduced energy
consumption fee• Value add for building
tech features and brand• Increase corporate social
responsibility• Increase tenants
satisfaction
++
+
++
Lean Launch Pad 2016.01.15
What we thought: Customer Segments
Hypothesis Experiments
1 2
• Interviews• Energy
modeling analysis
• Financial analysis
• Developers/Owners are willing to pay for incremental cost to save building operation cost
• Architects want to try and recommend this window in the planning stage
Results
3
• To provide developers about the energy saving and reduced operation cost
• Provide case study and energy modeling analysis to developers
• Pilot project onsite visit
Pivot
4
• Developers are willing to pay if the saving could save more operation cost
• Architects like to try based on pilot project and energy modeling analysis
Pivot
Lean Launch Pad 2016.01.15
What we learned: Customer segments
Green residential developers with energy saving features
Manufactory companies with corporate social responsibility
Commercial developers to attract green tenants
The user may not be the decision maker, figuring out who we should approach to is essential.
Lean Launch Pad 2016.01.13
Key Partners Value PropositionKey Activities Customer Relationships
Customer Segments
ChannelsKey Resources
Revenue StreamsCost Structure
• Real estate developers
• Construction material vendors
• Building architects• Interior designers• Construction
contractors
• Design, produce, supply chain management
• Marketing to end users and owners
• Differentiate from traditional glass market
• Creative ongoing customer feedback
• Product optimization
• Advertisement• Social medias• Trade shows• Industry conferences• Public relations• Professional associations• Customer services• Referrals
End users• Full-time professionals
need multi-functional office environments
• Seniors require convenient lifestyles
• Healthcare buildings with high hygiene requirements
• Commercial buildings with large HVAC energy consumption
• Residents need intelligent lifestyles and auto control
Direct sale & dealership• Regional• Global
Professional alliance• Designers alliance• Contractors alliance• Real Estate alliance
• Design• Technology• Community creation• Platform
• Fixed Operational costs for product development and maintenance• Fixed Operational Overhead costs (rent, utilities, etc.)• Variable costs associated with product design, R&D and marketing• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)• Ongoing maintenance service ( Charged to owner or tenants)• Dynamic pricing
Owners• Fortune 500 companies
with corporate social responsibilities
• Commercial real estate developers to attract high profile tenants
• Residential real estate developers with energy saving and intelligent lifestyle strategies
Day 3 Canvas
End users• An energy‐effective way to
control sunlight without shades or blinds
• Manage glare and heat while maintaining a connection to the outdoors
• Increase the living standards and move towards the intelligent lifestyles
• Customized design and compatible with various styles
Owners• Reduced life cycle cost• Reduced energy
consumption fee• Value add for building
tech features and brand• Increase corporate social
responsibility• Increase tenants
satisfaction
++
+
++
+
+
+
Lean Launch Pad 2016.01.15
What we thought: Value Proposition
Hypothesis Experiments
1 2
• Interviews• Energy
modeling analysis
• Financial analysis
• Reduced life cycle cost
• Reduced energy consumption fee
• Value add for building tech features and brand
• Increase corporate social responsibility
• Increase tenants satisfaction
Results
3
• Increase the energy saving performance
• Reduce the production cost
• Market this product to meet EPA standards or LEED standards
• Sponsor target company CSR programs
Iterate
4
• Clients acknowledge energy saving in special regulation or evaluation system
• Cost reduction and life cycle saving are critical to clients
• Large manufacturer companies buy-in Corporate Social Responsibility(CSR)
Iteration
Lean Launch Pad 2016.01.15
What we learned: Value Proposition1
Customer Archetype• Tenets/End Users
• Developers• Architect
2Key Resources &
Partners• Rent a batch in a glass
manufacturing factory
3
Developers
Users
Environment / Community
Value Propositions• For end users: clear
view, user friendly• For owners: cost and
energy efficiency
1
Lean Launch Pad 2016.01.15
Key Partners Value PropositionKey Activities Customer Relationships
Customer Segments
Channels
Key Resources
Revenue StreamsCost Structure
• Real estate developers
• Construction material vendors
• Building architects• Interior designers• Construction
contractors
• Design, produce, supply chain management
• Marketing to end users and owners
• Differentiate from traditional glass market
• Creative ongoing customer feedback
• Product optimization
• Advertisement• Social media• Trade shows• Industry conferences• Public relations• Professional associations• Customer services• Referrals
End users• Full-time professionals
need multi-functional office environments
• Seniors require convenient lifestyles
• Healthcare buildings with high hygiene requirements
• Commercial buildings with large HVAC energy consumption
• Residents need intelligent lifestyles and auto controlDirect sale & dealership
• Regional• Global• Whole sellers(Existing
glass selling channels)• Sales man(Key account)
Professional alliance• Designers alliance• Contractors alliance• Real Estate alliance
• Design• Technology• Community creation• Platform
• Fixed Operational costs for product development and maintenance• Fixed Operational Overhead costs (rent, utilities, etc.)• Variable costs associated with product design, R&D and marketing• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)• Ongoing maintenance service ( Charged to owner or tenants)• Dynamic pricing
Owners• Manufactory companies
with corporate social responsibilities
• Commercial real estate developers to attract high profile tenants
• Residential real estate developers with energy saving and intelligent lifestyle strategies
Day 4 Canvas
End users• An energy‐effective way to
control sunlight without shades or blinds
• Manage glare and heat while maintaining a connection to the outdoors
• Increase the living standards and move towards the intelligent lifestyles
• Customized design and compatible with various styles
Owners• Reduced life cycle cost• Reduced energy
consumption fee• Value add for building
tech features and brand• Increase corporate social
responsibility• Increase tenants
satisfaction
++
+
++
+
+
+
++
Lean Launch Pad 2016.01.15
What we thought: ChannelsHypothesis Experiments
1 2
• Interviews/Memo
• Show the MVP
• Pricing strategies
• Direct Selling—Selling representatives—Customized product and integration system
• Whole sellers—Having various products—Easy comparison
Results
3
• Figure out the potential margin percentage and cooperation methods with whole sellers
• Design the commission, supply chain, AR days and after sell service
Iterate
4
• Whole sellers are fine to sell our products once the margin and volume is large
• Direct selling will focus on key account clients
Iteration
Lean Launch Pad 2016.01.15
What we learned: Smart Windows Channels
Manufacturer National Distributor Wholesaler Retailer Customer
Wholesale costsMarkup
Allowances
Payment guarantees
Payments
Bills Credit guarantees
Payment guarantees
Return rights
Credits
Formulations& Packaging
Raw MaterialsManufacturing
R&D &Regulation Product Sales & Distribution ----- Key Account
Lean Launch Pad 2016.01.15
What we thought: Get Strategies
Hypothesis Experiments
1 2
• Interviews with customers
• Customer Acquisition Cost (CAC)
• Analysis Lifetime Value (LTV)
• Analysis
Paid Demand Creations• Trade Shows• Public Relations• E-mails/Direct
Mails• SEMEarned Demand Creations• Conferences• Blogging/Guest
Articles
Results
3
Iterate
4
Based on the interviews so far, we found that the most common methods that our Smart Windows should adopt on:• Trade Shows• Public Relations
(Magazines on Glass Industry)
• BloggingsHowever, our current interviewees do not respond to the other methods
• To acquire a repeatable and scalable business model on the Get Strategies. We should interview more customers and ask them how do they know the glass products.
• After we acquire the detailed information, we can test whether CAC < LTV
Iteration
Lean Launch Pad 2016.01.15
What we learned: Get Strategies
E-mail/Direct Mails
Search Engine Marketing (SEM)
Conferences
Blogging/Guest Articles
Trade Shows
Viral-loop
Awareness
Interest
Consideration
Purchase
Lean Launch Pad 2016.01.15
What we thought: Revenue model
Hypothesis Experiments
1 2
• Pricing analysis
• Interviews
• The product IP and smart functions pay for the profits
• End users has the motivation to pay ongoing maintenance fee
• The big data we collect could provide value add to third-part institutions
Results
3
• Reduce the raw material and production cost
• Scalable development
• Cooperate with large glass manufacturer
Iterate
4
• Customer could pay premium
• Customer need quantified analysis
• Customer need financial feasibility
Iteration
Lean Launch Pad 2016.01.15
What we learned: COST / PROFIT ANALYSIS
Raw active ingredient
Manufacturing &Packaging Profit + R&D + License fee Distributor
$50/Sqm *$37.5%25 cut
$6 ~$17.5 ~$12.5
End
use
r
Our revenue List pricePer unit cost and profit estimation
Direct Sales Revenue Model
* Competition• SAGE ($55/sqm)• View Glass($52/sqm)• Econtrol (($56/sqm)• Viracon(($54/sqm)• Hartung Glass Industries(($53/sqm)
$14
%35 cut%28 cut%12 cut
Lean Launch Pad 2016.01.15
Key Partners Value PropositionKey Activities Customer Relationships
Customer Segments
Channels
Key Resources
Revenue StreamsCost Structure
• Real estate developers
• Construction material vendors
• Building architects• Interior designers• Construction
contractors• Architects
• Design, produce, supply chain management
• Marketing to end users and owners
• Differentiate from traditional glass market
• Creative ongoing customer feedback
• Product optimization
• Advertisement• Social media• Trade shows• Industry conferences• Public relations• Professional associations• Customer services• Referrals
End users• Full-time professionals
need multi-functional office environments
• Seniors require convenient lifestyles
• Healthcare buildings with high hygiene requirements
• Commercial buildings with large HVAC energy consumption
• Residents need intelligent lifestyles and auto controlDirect sale & dealership
• Regional• Global• Whole sellers(Existing
glass selling channels)• Sales man(Key account)
Professional alliance• Designers alliance• Contractors alliance• Real Estate alliance
• Design• Technology• Community creation• Platform• Souring• IP
• Fixed Operational costs for product development and maintenance• Fixed Operational Overhead costs (rent, utilities, etc.)• Variable costs associated with product design, R&D and marketing• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)• Ongoing maintenance service ( Charged to owner or tenants)• Dynamic pricing
Owners• Manufactory companies
with corporate social responsibilities
• Commercial real estate developers to attract high profile tenants
• Residential real estate developers with energy saving and intelligent lifestyle strategies
Day 5 Canvas
End users• An energy‐effective way to
control sunlight without shades or blinds
• Manage glare and heat while maintaining a connection to the outdoors
• Increase the living standards and move towards the intelligent lifestyles
• Customized design and compatible with various styles
Owners• Reduced life cycle cost• Reduced energy
consumption fee• Value add for building
tech features and brand• Increase corporate social
responsibility• Increase tenants
satisfaction
++
+
++
+
+
+
++
Lean Launch Pad 2016.01.15
Day 1 – Interview Summary
6
15
End Users Professionals
Building Developers Architects Competitor
s
Lean Launch Pad 2016.01.15
End Users Professionals
Building Developers Architects Competitor
s
76
12
16
Day 2 – Interview Summary
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End Users Professionals
Building Developers Architects Competitor
s
7 76 3
16
Day 3 – Interview Summary
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End Users Professionals
Building Developers Architects Competitor
s
11 1010
4
16
Day 4 – Interview Summary
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End Users Professionals
Building Developers Architects Competitor
s
16
1113
6
16
Day 5 – Interview Summary
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End Users Professionals
Building Developers Architects Competitor
s
16
1113
6
16
Day 5
Lean Launch Pad 2016.01.15
End Users Professionals
Building Developers Architects Competitor
s
16
1113
6
16
Day 5Architects Anndy Ma Art Miccio
Professionals
Dr. WheelerDr. Fan YangDr. Carver
Glass Industry Competitor
Della JonesSebastian Sancheg ….
General Contractor
Amy Zhen Marta Calderia……
Lean Launch Pad 2016.01.15
End Users Professionals
Building Developers Architects Competitor
s
16
1113
6
16
Day 5Developer Tao Williams
Renny Clark Jenny Martin HawkinsonAlic LianShihka Manuel ShvartzNabila PerezMatthew Lohry…
Lean Launch Pad 2016.01.15
Commercial Building Developer
LEED Building Project Developer
Public/Municipal Building Developer
General ContractorSub ContractorArchitecture Office or
Building Planning Consultant
SMART WINDOWS (Supplier)
HireSign the contract
Hire and Manage
Cooperation
2. Marketing
1. Marketing and selling
Distributing
WHAT WE LEARNED:
Lean Launch Pad 2016.01.15
Competitor Landscape
Fabrication Manufacturer
New Material Glass
Manufacturer
Auto Glass Manufacturer
Commercial Glass
Manufacturer
WHAT WE LEARNED:
Lean Launch Pad 2016.01.15
Next Big Picture
Capital Intensive – Fundraising
Intellectual Property
LEED Approval
Strategic Partnership
Distribution Channel
Customer exploration
Lean Launch Pad 2016.01.15
Next Step…• Revenue Model
• Validate feasible volume prices via commercial green building developers • Approach key players through the existing distribution channel• Maintenance fee, data sharing service
• Build MVPs• Physical prototype with basic functions (dynamic control, energy saving, outdoor
connection)• Animation video with additional features (Internet of things, big data collection)• Start LEED approval process
• Partnerships• Initiate conversations with major glass manufacturers
• Form strategic alliance with major LEED building project developers• Build up cost structure
• Quantify costs on raw materials, manufacturing process, equipment investment, marketing spending
• Initiate fundraising
Lean Launch Pad 2016.01.15
MVP Demonstration
Lean Launch Pad 2016.01.15
Lean Launch Pad 2016.01.15
Appendix - Smart Glass Comparison
Electrochromic
Leading Electrochromic Smart Glass Suppliers:
• SAGE – acquired by the leading glass manufacturer Saint-Gobain in 2012
• View – raised $150M in 2015 Both have doubled their
pipelines in the past year Mostly direct sale with both
global and regional representatives
Pricing: 2-3 times of regular glass
Major building customers:• Commercial • Institutional• High-end residential
Energy-Efficient Smart Window
Lean Launch Pad 2016.01.15
Hypotheses Experiments Pass/Fail Test
Channels• Direct Selling—Selling representatives—
Customized product and integration system• Whole sellers—Having various products—
Easy comparison
• Interviews/Memo• Show the MVP• Pricing strategies
• Retailers and wholesalers are willing to sign Memo, pass. OTW, fail.
• Majority(>70%) Professionals agree to use our products in pilot projects, pass. OTW, fail.
Customer Relationships - Get StrategiesPaid Demand Creations• Trade Shows• Public Relations• E-mails/Direct Mails• SEMEarned Demand Creations• Conferences• Blogging/Guest Articles
• Interviews with customers
• Customer Acquisition Cost Analysis (CAC)
• Lifetime Value Analysis (LTV)
• Interviews and investigations into the current similar market, those methods that they use more often and productive, then we adopt them, OTW, get rid of the methods.
• Calculate the CAC and LTV and compare them. If CAC < LTV, then the methods are passed.
Revenue model• The product IP and smart functions pay for
the profits• End users has the motivation to pay
ongoing maintenance fee• The big data we collect could provide value
add to third-part institutions
• Pricing analysis• Interviews
• Owners are willing to pay energy saving premium, pass. OTW, fail.
• End users are willing to purchase ongoing service, pass. OTW, fail.
• Third party reckon our data quality, pass. OTW, fail.
Lean Launch Pad 2016.01.15
Smart WindowsMarket type
• Existing market• Re-segmented
Lean Launch Pad 2016.01.15
Smart Windows Market Size Estimates
TotalAvailabl
eMarket
Target Market
ServedAvailabl
eMarket
Total Available Market: $61.5B(Total building glass industry demand)
Served Available Market (How many people
need/can use product?): $8.61B(Hypothesis: 10% of seg. 1, 2, 20% of seg. 3, 4, 5)
Target Market (first 3 years): $4.3B(5% of segment 1,2 and 10% of seg. 3,4,5)
Items Segment 1 Segment 2 Segment 3 Segment 4 Segment 4
Description Commercial Residential Hotels Hospitals PlantsSize * 30% 30% 15% 10% 15%
People/ Influences
Real Estate developers\Designers
Home owners Developers/Designers
Hospitals/Designers
Owners/Designers
* Estimated based on new construction projects world wild
Lean Launch Pad 2016.01.15
Building Energy Simulation
Geometry Model for simulation
Comparison of various active design strategies
Lean Launch Pad 2016.01.15
Financial payback
-
50. 0
100. 0
150. 0
200. 0
250. 0
2008年 2009年 2010年
单位
面积
年用
电量
(kW
h/(m
2·a)
) Annual Savings: 601,600 USD
Cost: 1,460,000 USD
Payback: 2.43 years
Electric Consumption 2016 2017 2018Total Elec.Consumption (kWh) 37577090 35524440 33525380
Common Area Elec. Consumption (kWh) 17406124 17074900 15951978
Office building total GFA: 173044 m2
2016 2017 2018
Lean Launch Pad 2016.01.15
Appendix - Interview Questions & Notes