Has Patel-Lunch & Learn Presentation October 7, 2016

I N F O L O G I CThe logical approach to harness innovation

Has Patel

President

Infologic, [email protected]

(888) 325 0500 Ext. 100

INFOLOGIC, INC.

25 Palatine # 212

Irvine, CA 92612

www.infologic.com

National Manufacturing Day October 7, 2016

# MfgDay16

The Art & Science ofProduct-Market Fit

Introducing the National Network for Manufacturing Innovation Institutes (NNMIs)

mailto:[email protected]

http://www.infologic.com/

1

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Agenda :White House Call To Action

Part 1:

Product-Market Fit

Part 2:

The National Network for Manufacturing Innovation

Institutes (NNMIs)

“ … Manufacturing Day is an annual celebration of the strength of Americanmanufacturing and an opportunity to educate and motivate the next generationof manufacturers…. This year, we can do even more—that is why, today, theAdministration is launching an effort to inspire the next generation ofmanufacturers and support entrepreneurs manufacturing their firstproduct in the United States…”

Part 1

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What is Product/Market Fit ?

• Product/market fit is the degree to which a product satisfies a strong market demand.

Wikipedia

• Product/market fit means being in a good market with a product that can satisfy that market.

• The life of any startup can be divided into two parts –before product/market fit and after product/market fit

Marc Andreessen

• The concept of product/market fit as a step in between customer validation (step #2 in his book The Four Steps to the Epiphany) and customer creation (step #3)

Steve Blank

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UCICove Startup AssessmentsProduct-Market Fit Categories

Planning

• Product-Market Fit

• Ability to Scale

Team Dynamics

Execution

Total Addressable Market (TAM)

Market Validation

Customer Problem

Solution/Value Proposition (VP)

Lasting Unfair Advantage

Financials/Revenue Model

Exit Analysis

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FACT CHECK : Product Development Model (Source : NASA/DoD/GAO)

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FACT CHECK : Market Development Model(Source : Steve Blank)

Source : The Four Steps to the Epiphany by Steve Blank

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FACT CHECK : Product/Market Fit Methodology(Source : DoD/GAO)

Definitions

KP 1 : Technologies and resources match market needs

KP 2 : Technologies/Design performs as expected

KP 3 : Production can meet cost, schedule, and quality targets

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Suggested Product/Market Fit Model

Product Development

Market Development

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Customer Solution/Value Proposition Model(Source : Infologic, Inc.)

Product-as-a Product

Product-as-a Service

Product-as-a Process

Focus on products as digital items, such as Sensor-based productsand offer under CAPEX

Combine Product with a Service, and offer under OPEX using Cloud, Mobile features

Combine Product, Service, augmented reality, Social and Analytics

Integrate your offerings with third party offerings – OEMs, partners and competitors

Product-as-a Business Model

Product Cost

© 2016 Infologic, Inc. All rights reserved.

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FACT CHECK : Product-as-a-Service Model

The Internet of Things Is Here, and It Isn’t a Thing (Wall Street Journal – 8/21/2016)

“…Everyone is waiting for the Internet of Things. The funny thing is, it is already here. Contrary to expectation, though, it isn’t just a bunch of devices that have a chip and an internet connection. The killer app of the Internet of Things isn’t a thing at all—it is services. And they are being delivered by an unlikely cast of characters: Uber Technologies Inc., Solar City, ADT Corp., and Comcast, to name a few…”

The Digital Manufacturer – Resolving the Service Dilemma (Cisco Executive Survey - 11/2015)

“…In a climate of digital disruption and global market pressures, many manufacturers want to differentiate with new service-oriented revenue models, especially those that rely on connected machines and machine as-a-service. In a Cisco survey of more than 600 senior executives in 13 countries—from both industrial machine builders and end-user manufacturers—86 percent said the transition from product-centric to service-oriented revenue models is a core part of their

growth strategies…“

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"Innovation: The Classic Traps” professor RosabethMoss Kanter of the Harvard Business School quotes …

“ the most common mistake companies make

is to apply traditional corporate processes to

new projects. “

FACT CHECK : Product-as-a-Process Model

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The world’s largest taxi company – owns no vehicles

The world’s most popular media company – creates no content

The world’s largest hospitability company – owns no real estate

How Smart, Connected Products Are Transforming Companies

HBR Research Review

by Professor Michael E. Porter and James E. Happelmann – 10/2015

FACT CHECK : Product-as-a-Business Model

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A Profitable Venture Equation

A Profitable Venture with Lasting Unfair Advantage

(may be an Unicorn !)

Profitable Venture = f (Balanced Product/Market Fit + Innovative Value Proposition)

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Innovation Ecosystem :Power to Collaborate & Innovate

Part 2

Customers

Established

Future

AcademiaResearch

Universities Colleges

Business Partners

OEMs

Venture

Competitors

Education & Training

TechnologiesR&D/IP

Test Beds

Government

Federal

State

Local

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Global Innovation Snapshot : 2016 R&D Forecast (Source : Industrial Research institute and R&D Magazine)

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Why Manufacturing & Innovation ?( Source : NIST )

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Federal Government Act : H.R.2996 (RAMI)Revitalize American Manufacturing and Innovation Act of 2014

(Source : NIST/DoD)

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National Network for Manufacturing Innovation Institutes (NNMIs)

www.manufacturing.gov

http://www.manufacturing.gov/

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NNMIs Positioning :Valley of Death & Innovation Ecosystem

R&D Portfolio

Technology Needs:

Manufacturing Enterprises

Wasted R&D EffortsUnmet End user technology needs

Deterioration of US Innovation Leadership

NNMIs

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NNMI : Overview

Elevator Speech

• Publish-Private Partnership

• Applied Research + Education/Training

Goal

• Create 45 NNMis during the next decade ; As of Today - 9

• Lead by Universities/Non-Profits

Public-Private Partnership

• Federal agencies invest $70 - $ 120 Million over 5 Years / per NNMI

• Industry – Minimum Cost Share (1:1); Industry investing significantly more

• Interested Agencies – DoD, DoE, NIST (more to come …..)

• Time Frame - 5 Years Federal Commitment; Independent after 5 years

Technology Focus :

• Advanced Manufacturing : Advanced Sensing, Controls, and Platforms for Manufacturing (ASCPM); Visualization, Informatics and Digital Manufacturing (VIDM); and Advanced Materials Manufacturing (AMM).

• Emerging Technology Areas : Advanced materials manufacturing, engineering biology to advance bio manufacturing, bio manufacturing for regenerative medicine, advanced bio products manufacturing, and continuous manufacturing of pharmaceuticals.

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NNMI : Major Activities(Source : DoD)

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NNMI Ecosystem Overview(Source : NIST)

One of the goals of NNMIs is “ … to help start-ups and small manufacturers to scale up new technologies, accelerate technology transfer to the marketplace, and facilitate the adoption of innovation workforce skills. The network is designed to foster innovation and deliver new capabilities that can stimulate the manufacturing sector on a large scale….” – NIST

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NNMI : Current Locations & Technology Focus(Source : NIST/DoD)

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How to Leverage NNMIs – National Assets

Conceive

Set Strategies

Develop

Implement

Analyze

Suggested Steps

• Analyze RoI• Be Proactive !

• Participate in Project Call teams, Training and Test Beds

• Network with Current/Future Partners

• Become Member or Observer and Participate in Selected NNMIs Project Calls

• Develop Strategies & Include in your Business Plan

• Product-Market Development plans

• Visit www.manufacturing.gov• Do current/future NNMIs fit in your

venture?

http://www.manufacturing.gov/

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Conclusions & Takeaway

Product/Market Fit is essential for Venture Success

Adapt an innovative approach in developing Customer Value Proposition (VP)

Leverage Innovation Ecosystems (e.g. NNMIs)

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Call to Action

STARTUPS, ENTREPRENEURS & INTRAPRENEURS

Adapt one of the goals to add “Third Dimension” to the American

Innovation Ecosystem

AMERICAN INNOVAITON ECOSYSTEM STAKEHOLDERS

Develop tools, products and services for the above Group to

achieve their goal

I N F O L O G I CThe logical approach to harness innovation

Questions ?

Has Patel

Infologic, [email protected]

(888) 325 0500 Ext. 100

INFOLOGIC, INC.

25 Palatine # 212

Irvine, CA 92612

www.infologic.com

The Art & Science ofProduct-Market Fit

Introducing the National Network for Manufacturing Innovation Institutes (NNMIs)

mailto:[email protected]

http://www.infologic.com/