2a customer discovery ( canvas and story ).2013.q2

123
1 Customer Discovery Class # 2a Iain Verigin

Post on 17-Oct-2014

473 views

Category:

Education


1 download

DESCRIPTION

Part of 2013 Q2 Lean Launch Pad Presentations 0a-Introduction.2013.Q2.pptx 1a-Three_Types_Of_Startup.2013.Q2.pptx 1b-Customer Discovery (problem hypothesis).2013.Q2.pptx 2a-Customer Discovery ( canvas and story ).2013.Q2.pptx 2b-Value_Chain (team specific).2013.Q2.pptx 3a-Customer_Validation.2013.Q2.pptx 3b-GKG-CustomerRelationships.2013.Q2.pptx 4a-EndGame.2013.Q2.pptx

TRANSCRIPT

Page 1: 2a customer discovery ( canvas and story ).2013.q2

1

Customer DiscoveryClass # 2a

Iain Verigin

Page 2: 2a customer discovery ( canvas and story ).2013.q2

Today

• Majority of Time : Review an example – “what exactly does this work looks like”

• Timeline– Quickly Recap “Customer Discovery Planning”– Example – MammOptics – LeanLaunch Pad project

Page 3: 2a customer discovery ( canvas and story ).2013.q2

3

CustomerDiscovery

CustomerValidation

CustomerCreation

ScaleCompany

Customer Discovery

• Stop selling, start listening– There are no facts inside your building, so get outside

• Test your hypotheses – Two are fundamental: problem and product concept

Page 4: 2a customer discovery ( canvas and story ).2013.q2

4

Discovery Phase = Hypothesis Testing

• What is the Hypothesis? • Where does the Hypothesis come from? • Why Test them? • How do you test them?

Page 5: 2a customer discovery ( canvas and story ).2013.q2

5

Customer Discovery: Rules

• Rule 1: Facts are outside the building, opinions are inside.

• Rule 2: Solve a problem that customers say is important and valuable

• Rule 3: Does the product concept solve that problem?

Page 6: 2a customer discovery ( canvas and story ).2013.q2

6

Customer Discovery: Exit Criteria

• What are your customers top problems?– How much will they pay to solve them

• Does your product concept solve them?– Do customers agree? – How much will they pay?

• Can you draw a day-in-the-life of a customer– before & after your product

• Can you draw the org chart of users & buyers

Page 7: 2a customer discovery ( canvas and story ).2013.q2

7

Customer Dev’t ProcessTime Frames

CustomerDiscovery

CustomerValidation

CustomerCreation

ScaleCompany

Existing Market: 1 Months - 1 Year

Resegmenting a Market: 6 Months - 3 Years

New Market: 1 - 3 Years

Page 8: 2a customer discovery ( canvas and story ).2013.q2

8

Customer DiscoveryTime Frames

CustomerDiscovery

CustomerValidation

CustomerCreation

ScaleCompany

Existing: 1 - 6 Months

Resegmenting: 3 - 12 Months

New: 12 - 24 Months

Page 9: 2a customer discovery ( canvas and story ).2013.q2

9

Customer Discovery

In Detail

Page 10: 2a customer discovery ( canvas and story ).2013.q2

10

Methodology

• Customer Development can take months, or years • Each Step has a set of phases • Plan what you need to learn in writing

… so that everyone knows: – what they should be doing – when they should do it – If they succeeded – If they need to do more

• These are checklists, not “Inviolable Commandments”

Page 11: 2a customer discovery ( canvas and story ).2013.q2

11

State Your Hypothesis

• One-time writing exercise • All other time is spent in front of customers • Assumes you’re smart

– ( but guessing )

Page 12: 2a customer discovery ( canvas and story ).2013.q2

building blocks 9

Page 13: 2a customer discovery ( canvas and story ).2013.q2

TEAM NAME HERE

Who are our most important

customers?

What are their archetypes?

What Job do they want us to get done for them?

What Key Activities do we

require?Manufacturing?

Software? Supply chain?

Which of our customer’s

problems are we helping to solve?

Which customer needs are we

satisfying

What are the Key Features of our

product that match customers

problem/need?

Who are our Key Partners?

Who are our key suppliers?

What are we getting from

them? Giving them?

What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue

model? Pricing tactics?

Through which Channels do our

Customer Segments want to be reached?

What Key Resources we

require?Financial,

physical, IP, HR?

FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9

1

3

4 2How will we Get, Keep and Grow

Customers?

5

6 7

8

9

Page 14: 2a customer discovery ( canvas and story ).2013.q2

CUSTOMER SEGMENTS

images by JAM

Page 15: 2a customer discovery ( canvas and story ).2013.q2

VALUE PROPOSITIONS

images by JAM

Page 16: 2a customer discovery ( canvas and story ).2013.q2

16

Product (Solution) Hypothesis

• Features• Benefits • Product Delivery Schedule• Intellectual Property • Total Cost of Ownership• Dependency Analysis

– What is out of our control?

Page 17: 2a customer discovery ( canvas and story ).2013.q2

17

Customer/Problem Hypotheses

• Types of Customers • Magnitude of the problem • Visionaries • A Day in the Life of a customer

( Service Journey) • Organizational impact • ROI Justification • Problem Recognition • Minimum Feature Set

Page 18: 2a customer discovery ( canvas and story ).2013.q2

18

Competition Hypotheses

• Who is out there? • Why are they important? • How do customers use them today? • What don’t customers like about them?

Page 19: 2a customer discovery ( canvas and story ).2013.q2

CHANNELS

images by JAM

Page 20: 2a customer discovery ( canvas and story ).2013.q2

20

Distribution/ Pricing Hypotheses

• Distribution Model • Distribution Diagram • Sales Cycle/Ramp • Channel strategy • Pricing (ASP, LTV)

– Actual Selling Price, Life Time Value

• Customer Organization Map • Demand Creation

Page 21: 2a customer discovery ( canvas and story ).2013.q2

CUSTOMER RELATIONSHIPS

images by JAM

Page 22: 2a customer discovery ( canvas and story ).2013.q2

22

Demand Creation Hypotheses• How do competitors create demand? • How will you?

– Viral – Advertising – PR – Trade shows

• Who are influencers/recommendors? • Key trade shows? • Key trends? • Start assembling advisory board

Page 23: 2a customer discovery ( canvas and story ).2013.q2

Get keep grow

23

Page 24: 2a customer discovery ( canvas and story ).2013.q2

Get keep grow

24

Page 25: 2a customer discovery ( canvas and story ).2013.q2

25

Type of Market Hypotheses

• Positioning and Differentiation

– Existing Market • The product is the basis of competition

– New Market • Creating the market is the basis of competition

– Resegment - Redefine Existing Market • New segment of the existing market is the basis of competition

• :Think: What does my playing field look like?

Page 26: 2a customer discovery ( canvas and story ).2013.q2

REVENUE STREAMS

images by JAM

Page 27: 2a customer discovery ( canvas and story ).2013.q2

Market/Opportunity Analysis

How Big is It?: Market/Opportunity Analysis– Identify a Customer and Market Need– Size the Market– Competitors– Growth Potential

Page 28: 2a customer discovery ( canvas and story ).2013.q2

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 29: 2a customer discovery ( canvas and story ).2013.q2

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 30: 2a customer discovery ( canvas and story ).2013.q2

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 31: 2a customer discovery ( canvas and story ).2013.q2

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 32: 2a customer discovery ( canvas and story ).2013.q2

KEY RESOURCES

images by JAM

Page 33: 2a customer discovery ( canvas and story ).2013.q2

KEY ACTIVITIES

images by JAM

Page 34: 2a customer discovery ( canvas and story ).2013.q2

KEY PARTNERS

images by JAM

Page 35: 2a customer discovery ( canvas and story ).2013.q2

COST STRUCTURE

images by JAM

Page 36: 2a customer discovery ( canvas and story ).2013.q2

images by JAM

customer segments

key partners

cost structure

revenue streams

channels

customer relationships

key activities

key resources

value proposition

Page 37: 2a customer discovery ( canvas and story ).2013.q2

test

37

:Score Card: ( Hypothesis Summary)

Guess GuessGuess Guess Guess

GuessGuess

Guess Guess

Page 38: 2a customer discovery ( canvas and story ).2013.q2

WHAT DOES THIS “REALLY” LOOK LIKE?

38

Page 39: 2a customer discovery ( canvas and story ).2013.q2
Page 40: 2a customer discovery ( canvas and story ).2013.q2

40

?

? ?

?

?

??

?

?

Page 41: 2a customer discovery ( canvas and story ).2013.q2

possible alternatives

Page 42: 2a customer discovery ( canvas and story ).2013.q2

42

radiation-freedetection of breast cancer

hospitals

Page 43: 2a customer discovery ( canvas and story ).2013.q2

43

proprietary IP medical device manufacturers

Page 44: 2a customer discovery ( canvas and story ).2013.q2

44

?

? ?

?

?

??

?

?

Page 45: 2a customer discovery ( canvas and story ).2013.q2
Page 46: 2a customer discovery ( canvas and story ).2013.q2

But,Realize They’re Hypotheses

Page 47: 2a customer discovery ( canvas and story ).2013.q2

9 Guesses

Guess Guess

Guess

Guess

GuessGuess

Guess

GuessGuess

Page 48: 2a customer discovery ( canvas and story ).2013.q2

How Does This Really Work?

Stanford Lean LaunchPad Class

8 Weeks From an Idea to a Business

The Final Presentation

Page 49: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsFinal project presentation for E 245 Winter 2011

Page 50: 2a customer discovery ( canvas and story ).2013.q2

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 51: 2a customer discovery ( canvas and story ).2013.q2

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 52: 2a customer discovery ( canvas and story ).2013.q2

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 53: 2a customer discovery ( canvas and story ).2013.q2

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 54: 2a customer discovery ( canvas and story ).2013.q2

Finding the right customerFrom radiologists to gynecologists

Page 55: 2a customer discovery ( canvas and story ).2013.q2

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 56: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsHospital purchasing decision tree

Page 57: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsHospital purchasing decision tree

Hospitals

Complex purchasing decision

tree. Several saboteours

Page 58: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsPrivate practice purchasing decision tree

Page 59: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsPrivate practice purchasing decision tree

Private practice

Faster adoption rate

Attractive value proposition✔

Page 60: 2a customer discovery ( canvas and story ).2013.q2

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 61: 2a customer discovery ( canvas and story ).2013.q2

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 62: 2a customer discovery ( canvas and story ).2013.q2

Getting to our customerThe world of direct sales and medical marketing

Page 63: 2a customer discovery ( canvas and story ).2013.q2

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 64: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsMarketing

Page 65: 2a customer discovery ( canvas and story ).2013.q2

Access to ACOG by former member

Strong influence on doctors via ACOG Standard of Care

Strongly influenced by

KOLs

MammOpticsMarketing

Page 66: 2a customer discovery ( canvas and story ).2013.q2

Researchers conducting

important clinical trials

Researchers with numerous

publications

Outsourced survey research

Researchers with strong peer

recommendations

MammOpticsMarketing

Page 67: 2a customer discovery ( canvas and story ).2013.q2

Focus on prominent journals Need two big

publications

Choose KOL as Principal Investigators (PI)

MammOpticsMarketing

Page 68: 2a customer discovery ( canvas and story ).2013.q2

Effective method for educating doctors

Doctors required to attend workshops

Workshop must be approved by ACOG

Taught by objective medical experts

MammOpticsMarketing

Page 69: 2a customer discovery ( canvas and story ).2013.q2

ACOG Annual Clinical Meeting

Miami Breast Cancer Conference

Opportunity for feedback from

doctors

MammOpticsMarketing

Page 70: 2a customer discovery ( canvas and story ).2013.q2

Trusted information source for patients

Critical opinion leader for technology adoption

Access to media outlets

MammOpticsMarketing

Page 71: 2a customer discovery ( canvas and story ).2013.q2

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 72: 2a customer discovery ( canvas and story ).2013.q2

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 73: 2a customer discovery ( canvas and story ).2013.q2

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 74: 2a customer discovery ( canvas and story ).2013.q2

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 75: 2a customer discovery ( canvas and story ).2013.q2

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

Current market Insurance

Page 76: 2a customer discovery ( canvas and story ).2013.q2

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

Current market

But what would happen if we replace mammography?

Insurance

Page 77: 2a customer discovery ( canvas and story ).2013.q2

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 78: 2a customer discovery ( canvas and story ).2013.q2

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

Radiologist

Mammography

MammOpticsCustomer Workflow

Insurance

Page 79: 2a customer discovery ( canvas and story ).2013.q2

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 80: 2a customer discovery ( canvas and story ).2013.q2

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

Insurance

Radiologist

Mammography

MammOpticsCustomer Workflow

Page 81: 2a customer discovery ( canvas and story ).2013.q2

Insurance

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

ACOGACS

MammOptics

Patient

PCPOB/GYN

Page 82: 2a customer discovery ( canvas and story ).2013.q2

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 83: 2a customer discovery ( canvas and story ).2013.q2

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

Insurance

Radiologist

Mammography

MammOpticsCustomer Workflow

MammOptics

Patient

PCPOB/GYN

Page 84: 2a customer discovery ( canvas and story ).2013.q2

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 85: 2a customer discovery ( canvas and story ).2013.q2

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 86: 2a customer discovery ( canvas and story ).2013.q2

Building the companyThe backstage of a medical device company

Page 87: 2a customer discovery ( canvas and story ).2013.q2

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 88: 2a customer discovery ( canvas and story ).2013.q2

Manufacturing

MammOpticsPartners

Choose manufacturing facility close to

home

Page 89: 2a customer discovery ( canvas and story ).2013.q2

Manufacturing Reimbursement

MammOpticsPartners

Difficult to get coverage for new product.

Manufacturing

MammOpticsPartners

Page 90: 2a customer discovery ( canvas and story ).2013.q2

Reimbursement PartnersMammOptics

Insurances

CPT Codes$75-$150

Page 91: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsPartners

Manufacturing

FDA Clinical Trials

Reimbursement

510K vs. PMALargest cost

Biggest financial risk

Page 92: 2a customer discovery ( canvas and story ).2013.q2

Clinical Trials

12/4/2009

Stage 1Pilot trials

50 patients$600K

MammOptics

6 months

FeasibilityComparison

with mammograph

y

Page 93: 2a customer discovery ( canvas and story ).2013.q2

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 94: 2a customer discovery ( canvas and story ).2013.q2

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 95: 2a customer discovery ( canvas and story ).2013.q2

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 96: 2a customer discovery ( canvas and story ).2013.q2

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 97: 2a customer discovery ( canvas and story ).2013.q2

MammOpticsPartners

MammOpticsPartners

Manufacturing

FDA Clinical Trials

Reimbursement

Financial timeline

Funding

Page 98: 2a customer discovery ( canvas and story ).2013.q2

$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

98 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 99: 2a customer discovery ( canvas and story ).2013.q2

$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

99 12/4/2009

Proof of Concep

t

Provisional Patent

Financial / Operations Timeline

Technology

Licensing

MammOpticsMammOptics

Page 100: 2a customer discovery ( canvas and story ).2013.q2

$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

100 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 101: 2a customer discovery ( canvas and story ).2013.q2

$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

101 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 102: 2a customer discovery ( canvas and story ).2013.q2

$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

102

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 103: 2a customer discovery ( canvas and story ).2013.q2

$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

103 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 104: 2a customer discovery ( canvas and story ).2013.q2

$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 105: 2a customer discovery ( canvas and story ).2013.q2

$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

105 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 106: 2a customer discovery ( canvas and story ).2013.q2

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 107: 2a customer discovery ( canvas and story ).2013.q2

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 108: 2a customer discovery ( canvas and story ).2013.q2

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 109: 2a customer discovery ( canvas and story ).2013.q2

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 110: 2a customer discovery ( canvas and story ).2013.q2

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 111: 2a customer discovery ( canvas and story ).2013.q2

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 112: 2a customer discovery ( canvas and story ).2013.q2

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 113: 2a customer discovery ( canvas and story ).2013.q2

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 114: 2a customer discovery ( canvas and story ).2013.q2

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 115: 2a customer discovery ( canvas and story ).2013.q2

WHAT ARE YOU “REALLY”THINKING?

115

Page 116: 2a customer discovery ( canvas and story ).2013.q2

116

! Holy Cow !

! I don’t know any of this stuff !

? How deep do I need to go ?

:HELP:

Page 117: 2a customer discovery ( canvas and story ).2013.q2

117

:Think:

• In practice I call “Version 1.0” a “Splat”– I find it sets the tone/expectation much better– Nb. expectation is that this phase requires 2 to 3 passes

( or iterations ) before its done.• Keys

– You want to figure out what you know and don’t know. • :Issue: A lot of people are afraid to “write down” what they don’t

know, or accept that they don’t know.– The real work is “Outside” the building to fill in the blanks

& convert assumptions into facts

Page 118: 2a customer discovery ( canvas and story ).2013.q2

118

Before You Start

• Board and Management Buy-In – “Learning & discovery” not execution

• Customer Development Team – Not traditional hires

• Sufficient funding for 2-3 passes

:Aside:

Page 119: 2a customer discovery ( canvas and story ).2013.q2

119

! Titles Matter !“Traditional organizations & titles fail”

• People equate their titles with their functions– Standard titles describe execution functions

• We need new titles consistent with “learning & discovery” functions

CEO

VP Eng VP Mkt VP Sales VP Biz Dev

:Aside:

Page 120: 2a customer discovery ( canvas and story ).2013.q2

120

In Front of Customer Positions

Customer Development Team“Tasks”

CEO

VP Product Dev

Technical Visionary

Business Visionary

Business Execution

Nb. This doesn’t mean “VP, Product Dev” doesn’t visit customers

:Aside:

Page 121: 2a customer discovery ( canvas and story ).2013.q2

Documenting

• “Not too much and not to little”

• Get to know yourself– Basic Rule of Thumb

• Marketers like to analyse and plan – Ie lotsa documentation

• Sales likes to live in the field– Ie none

121

Page 122: 2a customer discovery ( canvas and story ).2013.q2

122

Page 123: 2a customer discovery ( canvas and story ).2013.q2

Design The Tests

• These can be simple.

• Q. How Accurate is our Service Journey Sketch?

• Action: Review our “Service Journey Sketch” with Emergency Staff at “n” hospitals.

123