WHAT DOES THIS “REALLY” LOOK LIKE? Lean Launch Pad – fast forward 6 weeks 1

WHAT DOES THIS “REALLY” LOOK LIKE?

Lean Launch Pad – fast forward 6 weeks

1

But,Realize They’re Hypotheses

9 Guesses

Guess Guess

Guess

Guess

GuessGuess

Guess

GuessGuess

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

Finding the right customerFrom radiologists to gynecologists

How do you test these hypotheses?• Research• What type?• Role of secondary…..

• Role of primary……qualitative– Observation– Interviews and focus groups

• Hypothesis• Test• Interpret• Repeat

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

MammOpticsHospital purchasing decision tree

MammOpticsHospital purchasing decision tree

Hospitals

Complex purchasing decision

tree. Several saboteours

MammOpticsPrivate practice purchasing decision tree

MammOpticsPrivate practice purchasing decision tree

Private practice

Faster adoption rate

Attractive value proposition✔

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

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

Getting to our customerThe world of direct sales and medical marketing

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

Market Adoptio

n

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical

Education

Conferences

Breast Cancer Advocacy Groups

American College of

Obstetricians and

Gynecologists (ACOG)

MammOpticsMarketing

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

Current market Insurance

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

Current market

But what would happen if we replace mammography?

Insurance

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

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

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

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?

What did the team learn?

• To pivot on their lead customer segment• That the customer decision process has multiple

players• That the marketing ecosystem and sales channel in

the industry has established rules and many players• That the required partners and key activities are

different and more than the first hypotheses• That all of the above changes the cost structure and

revenue model

Process of customer discovery

• Aim for several fast short cycles• Be prepared to – validate– pivot – or stop on a direction

• Aim is for evidence based support for your target market, value proposition and the b-model and strategy that enables this.

Version 1

Version 3

Version 2

Version 4

Time as a dimension

28

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

29

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?

30

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

31

State Your Hypothesis

• One-time writing exercise • All other time is spent in front of customers • Assumes you’re smart – ( but guessing )