SlideShare una empresa de Scribd logo
1 de 186
Descargar para leer sin conexión
The Scientific Method for Getting
     Technology to Market


              Steve Blank
           www.steveblank.com
            Twitter: @sgblank
The Scientific Method for Getting
     Technology to Market


              Steve Blank
           www.steveblank.com
            Twitter: @sgblank
How to Fail Less
When Bringing Technology to Market


               Steve Blank
            www.steveblank.com
             Twitter: @sgblank
I Write a Blog
www.steveblank.com
This Talk is Based On
• Business Model Generation
 • Four Steps Owners Manual
•The Startup to the Epiphany




                   www.steveblank.com
Lesson 1




  THE "ABC'S OF INNOVATION
Startups Are Not Smaller Versions
       of Large Companies
Startups Are Not Smaller Versions
       of Large Companies

    Large Companies Execute
     Known Business Models
Startups Are Not Smaller Versions
       of Large Companies

   Startups Search for Unknown
         Business Models
Startups Fail Because They
Confuse Search with Execute
Startups Search, Companies Execute


                 The Execution of the Business Model


  Scalable                             Large
             Transition
  Startup                            Company



                           Repeatable processes
                          -Knowns:
                             - customers, features,
                             - channels, pricing, etc
                          -Execution
                          -Understood Job Functions
Startups Search and Pivot


The Search for the Business Model

       Scalable                              Large
                            Transition
       Startup                             Company



   Business Model found by founders
  - Solving for unknowns
  - Searching for a match:
     - customer needs product features
  i.e. Product/Market fit
  - Repeatable sales model
Metrics Versus Accounting


             The Execution of the Business Model


Scalable                          Large
           Transition
Startup                         Company



                        Traditional Accounting
                        -Balance Sheet
                        - Cash Flow Statement
                        - Income Statement
Metrics Versus Accounting


The Search for the Business Model       The Execution of the Business Model



      Scalable                                          Large
                           Transition
      Startup                                         Company


Startup Metrics
- Average Selling Price/Order Size             Traditional Accounting
                                               - Balance Sheet
- Customer Acquisition Cost                    - Cash Flow Statement
- Customer Lifetime Value                      - Income Statement
- Monthly burn rate
- etc.
Customer Validation Versus Sales


                The Execution of the Business Model


  Scalable                            Large
              Transition
  Startup                           Company



                           Sales
                           -Sales Organization
                           - Job titles and functions
                           - Price List/Data Sheets
                           - Revenue Plan
Customer Validation Versus Sales


The Search for the Business Model         The Execution of the Business Model



      Scalable                                            Large
                             Transition
      Startup                                           Company


Customer Validation
- Early Adopters                                 Sales
                                                 - Sales Organization
- Pricing/Feature unstable                       - Scalable
- Not yet repeatable                             - Price List/Data Sheets
-“One-off’s”                                     - Revenue Plan
Waterfall Engineering Versus
      Agile Development


             The Execution of the Business Model

Scalable                         Large
            Transition
Startup                        Company



                         Engineering
                         - Requirements Docs.
                         - Waterfall Development
                         - QA
                         - Tech Pubs
Engineering Versus
                 Agile Development

The Search for the Business Model     The Execution of the Business Model



      Scalable                                      Large
                         Transition
      Startup                                     Company


                                             Engineering
 Agile Development                           - Requirements Docs.
 - Continuous Deployment                     - Waterfall Development
 - Continuous Learning                       - QA
                                             - Tech Pubs
 - Self Organizing Teams
 - Minimum Feature Set
 - Pivots
Startups Model, Companies Plan


               The Execution of the Business Model


Scalable                          Large
           Transition
Startup                         Company



                    Business Plan
                    - describes “knowns”
                    - features
                    - customers/markets/channel
                    - pricing
                    - revenue forecast
Startups Model, Companies Plan


The Search for the Business Model     The Execution of the Business Model


      Scalable                                       Large
                         Transition
      Startup                                      Company


-Business Model                        -Plan describes “knowns”
                                       - Known features for line extensions
- describes “unknowns”                 - Known customers/markets
-customer needs                        - Known business model
- feature set
- business model
- found by iteration
Large Company
     Product Introduction Plan


 Concept/    Product   Alpha/Beta   Launch/
Seed Round    Dev.        Test      1st Ship
When Adopted by Startups =

The Leading Cause of Startup Death

 Concept/    Product   Alpha/Beta   Launch/
Seed Round    Dev.        Test      1st Ship
Product Introduction Plan:
             Two Implicit Assumptions

  Customer Problem: known

 Concept/        Product     Alpha/Beta     Launch/
Seed Round        Dev.          Test        1st Ship



                     Product Features:    known
Execute the Business Plan
Large Company Method –
                 Hire Marketing


     Concept/          Product             Alpha/Beta         Launch/
    Seed Round          Dev.                  Test            1st Ship


                 - Create Marcom        - Hire PR Agency   - Create Demand
Marketing          Materials            - Early Buzz       - Launch Event
                 - Create Positioning                      - “Branding”
Large Company Method –
                   Hire Sales


     Concept/          Product               Alpha/Beta              Launch/
    Seed Round          Dev.                    Test                 1st Ship


                 - Create Marcom          - Hire PR Agency       - Create Demand
Marketing          Materials              - Early Buzz           - Launch Event
                 - Create Positioning                            - “Branding”


                                        • Hire Sales VP          • Build Sales
Sales                                   • Hire 1st Sales Staff    Organization
Large Company Method –
             Hire Business Development

      Concept         Product                 Alpha/Beta           Launch/
                       Dev.                      Test              1st Ship


                - Create Marcom            - Hire PR Agency   - Create Demand
 Marketing        Materials                - Early Buzz       - Launch Event
                - Create Positioning                          - “Branding”


                                       • Hire Sales VP        • Build Sales Channel /
  Sales                                • Pick distribution     Distribution
                                        Channel

 Business                                • Hire First         • Do deals for FCS
Development                                Bus Dev
Large Company Method –
                  Hire Engineering


      Concept             Product                 Alpha/Beta             Launch/
                           Dev.                      Test                1st Ship


                    - Create Marcom            - Hire PR Agency     - Create Demand
 Marketing            Materials                - Early Buzz         - Launch Event
                    - Create Positioning                            - “Branding”


                                           • Hire Sales VP          • Build Sales Channel /
  Sales                                    • Pick distribution       Distribution
                                            Channel

 Business                                    • Hire First           • Do deals for FCS
Development                                    Bus Dev


Engineering     • Write MRD      • Waterfall                • Q/A         •Tech Pubs
Lesson 2




  LETS CHANGE THE
  DEFINITION OF A STARTUP
Theory
All I Need to Do is Execute the Plan
Reality
No Business Plan Survives First
   Contact With Customers
Lets Change the Definition
A Startup is a temporary organization
A Startup is a temporary organization
         designed to search
A Startup is a temporary organization
designed to search for a repeatable and
       scalable business model
Startups need their own tools,
  different from those used
    in existing companies
Startups need their own tools,
  different from those used
    in existing companies
Lesson 3




  THE 3 TOOLS FOR STARTUPS
Startup Tool #1:
Agile Engineering
Agile Engineering is How
   We Build Startups
Agile Engineering is the
antithesis of Waterfall Development
Agile Engineering is the antithesis
           of Waterfall

It admits “We Cannot Know All the
     Features Customers Need”
Agile Engineering is the antithesis
           of Waterfall

It admits “We Cannot Know All the
    Features Customers Need”

    So lets build iterative and
          incrementally
Startup Tool #2:
The Business Model
The Business Model:
Any company can be described in
       9 building blocks
ARPA- E Steve Blank Presentation
sketch out your
business model
Business Model Canvas – Any Business
   KEY          KEY       OFFER     CUSTOMER      CUSTOMER
PARTNERS     ACTIVITIES           RELATIONSHIPS   SEGMENTS




               KEY                  CHANNELS
            RESOURCES




       COST STRUCTURE              REVENUE STREAMS
9 Guesses


                            Guess
Guess    Guess
                                     Guess

                  Guess
        Guess               Guess



        Guess                Guess
Startup Tool #3:
Customer Development
Customer Development is How We
 Search for the Business Model
Lesson 4




  CUSTOMER DEVELOPMENT
Customer Development

There are no facts inside your building
         So get the heck out
Customer Development is
   how you search for the model
        Search                          Execution



Customer            Customer     Customer      Company
Discovery           Validation   Creation      Building



            Pivot
Customer Development
     The Search For the Business Model


            Search


Customer             Customer
Discovery            Validation



            Pivot
Customer Development

                                        Execution



Customer            Customer     Customer      Company
Discovery           Validation   Creation      Building



            Pivot
Customer Discovery
           Search

    Customer            Customer     Customer         Company
    Discovery           Validation   Creation          Building


                Pivot
                                                Execution


•   Articulate and Test your hypotheses
•   Design experiments, start listening
•   Continuous Discovery
•   Done by founders
Discovery

• How big is the market?
• Who’s the customer?
  – What’s their problem/need
• What’s the product/service/need?
  – Does it solve the customers problem?
• How do you create demand?
• How do you deliver the product?
• How do you make money?
Customer Development =
     process to search

Business Model Canvas =
     the Scorecard

Agile Engineering is How
•Research
Labs
               •Technology
               Design
               •Marketing    •Cost
                                           •Farming
                                           conventions.
                                           •Demo, dem
                                           o, and                 •Organic
               •Demo and     Reduction
   We Build Startups
•Equipment
Manufactur
ers
               customer
               feedback
                             •Remove
                             labor force
                                           demo!!
                                           •Proximity is
                                           paramount
                                                                  Farmers
                                                                  •Weeding
                                                                  Service
•Distributio                 pains
                •IP –                                             Providers
n Network                    •Eliminate
                Patents                                           •Conventio
•Service        •Video       bio-waste     •Dealers               nal Farmers
Providers       Classifier   hazards       •Direct Service
                Files                      •Indirect Service
                                           • … then Dealers
                •Robust
                Technology



               Value-                      •Asset Sale
               Driven                      •Direct Service with
                                           equipment rental
                                           •… then Asset Sale
The Minimum Viable Product (MVP)




 •Smallest feature set that gets you the most …
    - orders, learning, feedback, failure…
    - incremental and iterative
Hypotheses Testing and Insight
Customer Validation

           Search


      Customer            Customer     Customer     Company
      Discovery           Validation   Creation      Building


                  Pivot                       Execution


• Repeatable and scalable business model?
• Passionate earlyvangelists?
• Pivot back to Discovery if no customers
The Pivot

                       Search


           Customer             Customer
           Discovery            Validation



                   Pivot

•The heart of Customer Development
•Iteration without crisis
•Fast, agile and opportunistic
Instead of Firing Founders When
    They Don’t Make the Plan
Instead of Firing Founders When
    They Don’t Make the Plan

      First, Fire the Plan
Pivot Cycle Time Matters

        Search                     Execution

Customer        Customer     Customer     Company
Discovery       Validation   Creation      Building

            Pivot




•Speed of cycle minimizes cash needs
•Minimum feature set speeds up cycle time
• Near instantaneous customer feedback
  drives feature set
Lesson 4




 HOW DOES THIS REALLY
 WORK?

 LEAN LAUNCHPAD CLASS
How Does This Really Work?

    Lean LaunchPad Class




 National Science Foundation
Startups to Large Companies
How Does This Really Work?

The National Science Foundation
  8 Weeks From an Idea to a Business
ARPA- E Steve Blank Presentation
Graphene Frontiers
We are a nanotechnology materials
company with a proprietary process for
producing high quality, low cost, large
area graphene films at commercial scale
Team: Graphene Frontiers
EL:Zhengtang Luo, PhD – Chief Science Officer
10+ years experience in synthesis of carbon
nanomaterials and product development for applications
in the area of materials chemistry, chemical separation
and electronic devices.

Mentor: Mike Patterson – CEO
Experienced entrepreneurial leader, manager, and
trusted adviser to startups and Fortune 500
companies, providing expertise in growth strategy and
international operations. Patterson is an Executive MBA
candidate (Entrepreneurial Management, April 2012) at
the Wharton School, University of Pennsylvania.


PI: A.T. Charlie Johnson, PhD – Founder, Scientific Advisory Board
Known internationally for his work in graphene electronics and carbon nanotube electronics. IP from his lab on
DNA-carbon nanotube devices for use in an electronic nose system pursued by Nanosense. An author of over
130 peer-reviewed articles, Johnson holds two issued patents, with 18 other patents submitted.
Background: Graphene Applications
                  “Wonder Material” Graphene
• Nano Material Subject of 2010 Nobel Prize in Physics
• 2D Carbon: Strong, Flexible, Conductive, Transparent
• Enables Next Generation Thin, Flexible Devices




  Flexible Transparent                            Thin, Flexible
                         Touch Screen, Displays
       Electrodes                                  Solar Cells
Problem: Lab Scale Not Enough
    Graphene Production Must Scale Up to
   Commercial Levels before Integration into
    Consumer Products Becomes a Reality…
Solution: Scalable Production Process
Our Patent-Pending APCVD
Graphene Production Process:
•Operates at ambient
pressure, reducing cost enabling
flexible design
•Industrial scale, continuous roll-to-
roll production possible
•Graphene sheet size limited only by
CVD furnace dimensions
•Same or better quality vis-à-vis
LPCVD graphene
•Graphene growth at 900-1000
°C, lower than other methods
Market: Size and Growth
 Nascent Graphene Market is Ready to Explode:
 Commercial Scale Production will be Catalyst
  •   Thin, Flexible Displays
  •   Solar Thin Film
  •   Touch Screens                                                  Thin, Flexible Display
  •   Thermal Management for Electronics   Thermal Management                $8.2B
  •   Basic Materials and Research
                                                  $6.4B
  •   Microscopy (TEM) Sample Supports
                                                          GF TAM:
                                                            $1.2B

                                                                    Research/
                      Market for                    Thin Film Solar Mat’l/Other
                      Graphene                           $4.6B        $1.4B
                      Films/Sheets

        $52M
                                     Graphene Frontiers Process & Product Offering
                                       • GF APCVD Process will Accelerate Graphene Adoption Curve

        2012                                                      2016
Recap
• Graphene technology will change the world...

• …but not until it is available in commercial volumes

• We believe that APCVD is the best path to industrial scale

• Whoever meets this challenge will be first mover in a fast

  growing market with multi-billion dollar potential

• We are the right team with the right technology to do it
Enter I-Corps: Beginning Hypotheses


Here’s What We Thought:
  – Graphene can be used for just about anything
  – All of the big manufacturers are just waiting for our
    product
  – The market for graphene will explode in 2012
  – We will become the world’s largest graphene
    manufacturer
The Business Model Canvas - Version 1

                       • R&D
• Lead Customer        • Scale up system
                                               Material                • Warranty
• Equipment Mfg          design
                                               • Thermal Conduct.      • Service/Maint.
• Universities         • Graphene product.                                                           •   Defense
                                               • Elect. Conduct          Agree
• Downstream           • IP creation/                                                                •   MEMS
                                               • Strength              • Joint Marketing
  fabrication            licensing                                                                   •   Chem/Bio Sensor
                                               • “Semiconductor”       • Branding
  companies            • Internal app. dev.                                                          •   Researchers
                                               • Flexible              • Education
• Suppliers                                                                                          •   Optoelectronics
                                               • Transparent                                         •   Transparent
                                               Process                                                   Conduct. (Touch)
                                               • Low Cost                                            •   Solar Cell
                                               • Higher Quality                                          Electrodes
                         • IP*                                         •   Distributor               •   Thermal Mgmt
                                               • Large Area
                           (Patent/License)                            •   Direct Sales              •   Supercapacitor
                                               • “Industrializable”
                         • Team/Expertise                              •   Online                    •   Battery
                                               • Flexible Mfg
                         • Credibility/Rep                             •   License                   •   TEM support
                         • CVD Equipment                               •   Partner/JV                •   Polymer/Compos.
                         • Inputs (gas/foil)                           •   Bundle                    •   CVD Equip Mfg
                         • Lab space
                         • Website
                         • Design/Engineerin
             •    Team g
             •    Lab space                                    •   Material Sales         •   Maintenance
             •    Capital equipment                            •   License/Royalty        •   Design
             •    Direct Sales/Travel                          •   Equipment Sales        •   Add’l IP
                                                               •   Consulting             •   Applications
So Here’s What We Did…

• Research to identify target companies: Build the list

   – Web, industry/research reports, personal
     network, “Who else should we talk to?”

• Calls to personal/professional/alumni network:
      “Do you know anyone…?”

• Intros, warm calls, cold calls, cold calls, more calls
So Here’s What We Did…
• Google AdWords Campaign + Survey Monkey

    – 3 days, 8,555 Impressions, 34 people clicking through to our site, ZERO
      contacts/closes. Retrospect: What were we trying to learn???

• Serendipity: Casual conversation turns to Graphene Frontiers at alumni event:


                           “That’s terrific! You know, I work at DuPont. Here’s
                           my card… send me your deck and let me know
                           how I can help.”
                           –Tom Connelly, Chief Innovation Officer, DuPont
So Here’s What We Did…
• 48 Companies Engaged, 70+ Conversations:
  – Lockheed Martin, GrafTech, Inventables, alphaMOS, FirstNano, Pannam
    Imaging, FujiFilm, Solutia, Dontech, Tramonto Circuits, Adamant
    Technologies, Intel, XG Sciences, Graphene
    Technologies, Densitron, Hotatouch, Touch International, Magic Touch, NJY
    Technology, Pangea Ventures, Display Search, Dow, DuPont, 3M, Corning, BASF, WL
    Gore, Morgan AM&T, Plextronics, SPI Supplies, New Metals and
    Chemicals, G.E., Innovalight, Siemens, Nelson-Miller, Essilor USA, Nexans, E-
    ink, Gamma Dynamics, Plastic Logic, Cabot Corporation, Thin Diamond, Knighthawk
    Engineering, Kopietz Consulting, DISPLAX, NineSigma, Evaporated
    Coatings, LiquaVista


• 80 LLL Posts, 61 Comments/Responses
  – 79% comments positive or factual, 21% “Constructive”
Version 2 – Narrowed to 3 Customer Segments

Equipment Mfg          Scale up          Low Cost             Education              Thermal Mgmt
                                                                                     Solutions

Universities           Customization
                                         Higher Quality       Service/Maint.
                                                                                     Transparent
                       Production                                                    Conduct.
Downstream                               Large Area                                  (Touch)
fabrication
companies
                                                                                     Chem/Bio
                                         “Industrializable”
                       IP                                     License                Sensor

                       CVD Equipment                          Direct Sales

                       Facilities/Lab



                                                                        License/Royalty
 Capital equipment           Personnel
                                                                        Material Sales
 Direct Sales/Travel         Lab space
So Here’s What We Learned…
• Atmospheric pressure production is key value-add
   – Not “high-quality”, not single-layer

• Many big companies are on the sidelines doing limited
  product dev, waiting for a proven production method
• We need to focus on scaling up (bigger & faster)
• We need a partner to break into consumer electronics
• Cost matters, but not as much as we thought
Version 3 – Manufacturing Wasn’t Our Business

Equipment Mfg          Scale up          Low Cost             Education              Thermal Mgmt
                                                                                     Solutions

Universities           Customization
                                         Higher Quality       Service/Maint.
                                                                                     Transparent
                       Production                                                    Conduct.
Downstream                               Large Area                                  (Touch)
fabrication
companies
                                                                                     Chem/Bio
                                         “Industrializable”
                       IP                                     License                Sensor

                       CVD Equipment                          Direct Sales

                       Facilities/Lab



                                                                        License/Royalty
 Capital equipment           Personnel
                                                                        Material Sales
 Direct Sales/Travel         Lab space
So Here’s What We Learned…
• TEM grids are viable, near term but small market
   – Will rely on distribution partner

• Displays will be next big thing
   – Focus on flexible/foldable thin displays

   – May require partnership with OEMs or sub-contractors

• Extensive product characterization is next step
   – Transparency, haze, sheet resistance for displays (3M, Dow, DuPont)

   – Minimize layers and contamination for TEM (SPI, Halcyon)
Version 4 – Key Segment/Work with Other Products

Equipment Mfg          Scale up          Low Cost               Education              Thermal Mgmt
                                                                                       Solutions

Universities           Customization
                                         Higher Quality         Service/Maint.
                                                                                       Transparent
                       Production                                                      Conduct.
Downstream                               Large Area                                    (Touch)
fabrication
companies
                                                                                       Chem/Bio
                                         “Industrializable”
                       IP                                       License                Sensor

                       CVD Equipment                            Direct Sales

                       Facilities/Lab



                                                                          License/Royalty
 Capital equipment           Personnel                Intermediate
                                                      product
                                                                          Material Sales
 Direct Sales/Travel         Lab space
Version 5 – Explored/Ruled Out New Segment

                       Scale up
Equipment Mfg                            Low Cost               Education              Thermal Mgmt
                                                                                       Solutions
                       Customization
                                                                Service/Maint.
Universities                             Higher Quality                                     Transparent
                                                                Collaborative R             Conduct.
                       Production                               &D                          (Touch)
Downstream                               Large Area
fabrication                                                                         Membrane
companies                                                                           switches
                                         “Industrializable”
                       IP                                       License                       Replace ITO
                       CVD Equipment                            Direct Sales

                       Facilities/Lab                                                      Chem/Bio
                                                                                           Sensor


                                                                          License/Royalty
 Capital equipment           Personnel                Intermediate
                                                      product
                                                                          Material Sales
 Direct Sales/Travel         Lab space
Pivot, into near term
and medium term
Version 6 – Near Term Business

Research              Transfer Process                       Academic Papers
Groups                Optimization       Atomically Thin
                                         and Robust                            Electron
                                                              Trade Shows      Microscopists
TEM
Equipment                                Higher Quality
Mfg.
                                         “Clean”


                      IP

                      CVD Equipment

                      Facilities/Lab




“Free”                                                Revenue Sharing
(Selling Byproduct)                                   w/Distributor
Version 7 – Mid-Term Business

                       Scale up
Equipment                                Foldable /             Education             Flexible
Mfg                                      Bendable                                     Transparent
                       Customization
                                                                Service/Maint.        Conductor
Universities                             Higher Quality         Collaborative
                                                                R&D
Downstream                               Large Area
Fabrication
Companies
                                         “Industrializable”
                       IP                                       License
                                         Low Cost
                       CVD Equipment

                       Facilities/Lab



                                                      Intermediate        License/Royalty
 Capital Equipment           Personnel                product

 Direct Sales/Travel         Lab space
What’s Next: Strategy and Roadmap
            1H 2012

Phase        4” Scale-Up


Product/   TEM Grids
Revenue    Materials Business


Milestone 12” x 12” Sheet
           Production


Activity      Scale-Up Sheet Size


           Increase Area
What’s Next: Strategy and Roadmap
              1H 2012                       2012
              4” Scale-Up              Commercial Roll-to-
Phase                                Roll Design & Prototype


Product/     TEM Grids                 Process Licensing
Revenue      Materials Business


             12” x 12” Sheet           Roll-to-Roll Mfg.
Milestone    Production                 Industrial Scale


                                        Perfect
Activity       Scale-Up Sheet Size
                                        Continuous Process


            Increase Area   Increase Throughput
What’s Next: Strategy and Roadmap
              1H 2012                         2012                       2013+
                                      Commercial Roll-to-            Application
Phase         4” Scale-Up                                           Development
                                     Roll Design & Prototype


Product/    TEM Grids                   Process Licensing    Intellectual Property
            Materials Business                              Thin, Flexible Displays
Revenue

            12” x 12” Sheet             Roll-to-Roll Mfg.      Application R&D
Milestone   Production                   Industrial Scale           Team

                                                            “World Leader in
                                       Perfect               CVD Graphene
Activity       Scale-Up Sheet Size     Continuous Process     Innovation”

            Increase Area        Increase Throughput        New Applications
What’s Next: Secure Partnerships + Investment
  Distribution
   Partners
What’s Next: Secure Partnerships + Investment
  Distribution   Active Customer
   Partners       Conversations
What’s Next: Secure Partnerships + Investment
  Distribution   Active Customer   Manufacturing
   Partners       Conversations      Partners
ARPA- E Steve Blank Presentation
21 Teams in 2011
   200 teams/year 2012
National University Network

            Stanford
     University of Michigan
         Georgia Tech
    Others to be announced
National Science Foundation
                                                                          I-Corps




                                                                          I/UCRC


                                                                                          SBIR
                                                          ERC
                                                                AIR/PFI
                                                  GOALI




                                                                                   STTR
                                           STC


                                                                                                                       Industry
                     NSF Primary Funding




                                                                                                          Investors
Resources Invested




                                                           “Ditch of
                                                            Death”                               Valley of
                                                                                                  Death
                                                                                                               Foundations

                                                                           Small Business

                                                 University

                         Discovery                                                               Development                 Commercialization
Crossing “The Ditch of Death”
                                                                          I-Corps




                                                                                          SBIR
                                                          ERC


                                                                          I/UCRC
                                                                AIR/PFI
                                                  GOALI




                                                                                   STTR
                                           STC


                                                                                                                       Industry
                     NSF Primary Funding
Resources Invested




                                                                                                     Investors



                                                                “Ditch of
                                                                 Death”                          Valley of
                                                                                                  Death
                                                                                                               Foundations

                                                                           Small Business

                                                 University

                         Discovery                                                               Development                 Commercialization
But This Can’t Possibly Work in
       Large Companies
Customer Development in
   GE Energy Storage

       2010-2012
Durathon™ Battery Systems
GE Energy Storage
ARPA- E Steve Blank Presentation
Make This a Billion Dollar Business
Build A $100M Factory
No
No, Let’s Get the Customers First
Cells and modules … building blocks of
the Durathon system
               TM




  Cell




  High Power                  Durathon   High Energy
                                                       113
  Seconds           Minutes                 Hours
Cells and modules … building blocks of
the Durathon system
               TM




  Cell         Battery Module
                    (Application-Specific)




                Telecom: 84 Cells
                UPS: 216 Cells




  High Power                                 Durathon   High Energy
                                                                      114
  Seconds                      Minutes                     Hours
Cells and modules … building blocks of
the Durathon system
               TM




  Cell         Battery Module                        System
                 (Application-Specific)




               Telecom: 84 Cells
               UPS: 216 Cells




  High Power                              Durathon    High Energy
                                                                    115
  Seconds                   Minutes                      Hours
116
117
118
119
Segment Analysis
                                                   “No Plan Survives First Contact With Customers”




                          Segment Attractiveness
•   Size / Growth
•   Profitability                                        explore                invest
     – Price Premium
     – Cost to engage
     – Cost to serve
•   Technical Risk
     – Development Cost
                                                          ignore               harvest

                                                                 Ability to Compete
                                                     •   Technical Fit
                                                     •   Perceived Value
                                                     •   Competitive forces
                                                     •   Adoption Cycle
                                                     •   Channel fit

                                                                                          GE – Transportation
Assess and Prioritize Opportunities
                 Customer
• EV             Discovery
• Rail
• Mining          1
• Signaling /
  Security
• Grid / Utility
• Material Handling
• Military




      Requires in-depth understanding of benefits sought by
                           customers
                                                          GE – Transportation
Assess and Prioritize Opportunities
•   EV                     Customer
•   Rail                   Discovery
•   Mining
•   Signaling / Security
•   Grid / Utility            1
•   Material Handling
•   Military


     JUDGMENT-BASED
     • Generate Hypotheses
     • Interpret Results
     • Intuitive
     • “Why?”



            Requires in-depth understanding of benefits sought by
                                 customers
                                                                GE – Transportation
Assess and Prioritize Opportunities
•   EV                     Customer    Customer
•   Rail                   Discovery   Validation
•   Mining                                          • Market 1, 2, 3, . . . .
•   Signaling / Security
•   Grid / Utility            1           2
•   Material Handling
•   Military


     JUDGMENT-BASED                         DATA-DRIVEN
     • Generate Hypotheses                  • Test Hypotheses
     • Interpret Results                    • Analyze Data
     • Intuitive                            • Deductive
     • “Why?”                               • “Why?” and “What?”



            Requires in-depth understanding of benefits sought by
                                 customers
                                                                     GE – Transportation
Market Screening
Discussions with ~50 different “customers”

            Clustered into 15 Different Segments
        •   EV – Small          •   Signaling
        •   Commercial EV       •   Communications
        •   Passenger EV        •   Wind
        •   Mining              •   Solar
        •   Marine              •   T&D Deferral
        •   Rail                •   Building Level
        •   APU                 •   OEM - BESS Grid
        •   Fire &Security




                                                      GE – Transportation
Customer development plan

                       2010                                                         2011                                          2012
  Jul        Aug   Sep        Oct       Nov   Dec   Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec   Jan   Feb    Mar
             Test Problem &
   State
                Product
                                        Customer Discovery
                               Verify
Hypotheses
              Hypotheses




                                                                                                                              GE – Transportation
Customer development plan

                       2010                                                                    2011                                          2012
  Jul        Aug   Sep        Oct       Nov   Dec      Jan      Feb        Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec   Jan   Feb    Mar
             Test Problem &
   State
Hypotheses      Product        Verify
                                        Customer Discovery
              Hypotheses



                          Prep to Sell
                                                                            Customer Validation
                                          Sell to EarlyVangelists



                                                              Develop
                                                             Positioning




                                                                                                                                         GE – Transportation
Customer development plan

                        2010                                                                    2011                                          2012
  Jul         Aug     Sep      Oct       Nov   Dec      Jan      Feb        Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec   Jan   Feb    Mar
              Test Problem &
   State
Hypotheses       Product        Verify
                                         Customer Discovery
               Hypotheses



                            Prep to Sell




  Customer Validation                      Sell to EarlyVangelists



                                                               Develop
                                                              Positioning



              Ready
                                                                                    Create
                to                              Position Company & Product         Demand
             Launch


                                                                        Launch GEES
                                                                                             Customer Creation
                                                                         & Durathon




                                                                                                                                          GE – Transportation
Customer development plan

                        2010                                                                     2011                                                 2012
  Jul         Aug     Sep      Oct       Nov   Dec      Jan      Feb        Mar   Apr   May    Jun   Jul   Aug   Sep   Oct   Nov      Dec     Jan     Feb      Mar
              Test Problem &
   State
Hypotheses       Product        Verify
                                         Customer Discovery
               Hypotheses



                            Prep to Sell




  Customer Validation                      Sell to EarlyVangelists



                                                               Develop
                                                              Positioning



              Ready
                                                                                    Create
                to                              Position Company & Product         Demand
             Launch


                                                                        Launch GEES
                                                                                             Customer Creation
                                                                                                                       Company Building
                                                                         & Durathon



                                                                                                                                  Crossing the Chasm
                                                                                                                         Move from EarlyVangelists to Mainstream
                                                                                                                                       Customers




                                                                                                                                                  GE – Transportation
GEMX Business Model Scorecard
critical pending actions
 Key Partners                           Key Activities                               Value Proposition                               Customer Relationships                          Customer Segments
 Who are our key partners/ suppliers    Which key activities does the biz            What value do we deliver to the                 What type of relationship does each             For whom are we creating value
                                        model require                                customer                                        segment require of us
 Complete regional overview              Populate life cycle data for performance    key distinctive product features               product positioning/elevator pitch for         identify key market segments
                                          guarantees                                   &benefits for the target customer               each segment                                    (geography/application) and customer
                                                                                       segment                                        Prospect roadmap: how to get face-to-           segments (e.g. operator versus owner)
                                         Educate market on metric: $/kWh-day         total cost of ownership for segment             face with right person at prospects in         how many customers in each segment
                                          delivered over life of asset                 versus alternatives                             each segment                                    and estimated potential volume for
                                                                                      why will segment buy Durathon versus           key competitors in each segment and             each customer
                                         Establish strong partnerships with           alternatives (i.e. value proposition)           their market share                             how do customers make money … key
                                          channel partners                            minimum feature set (i.e. our launch           key competitors' characteristics &              customer pain/gain points in each
                                                                                       configuration) and ultimate feature set         dynamics                                        segment
                                                                                      opportunities to claim IP or trademark /       What outbound marketing/ advertising/          how are buying decisions made in
                                                                                       is there freedom to practice                    promotion activities are needed                 each segment - id
                                                                                 0    what regulatory/ certification/                support tools required by segment               process, hurdles, decision makers
                                                                                       transportation/ customs requirements            (white papers, TCO calc., tradeshow)           what does an Earlyvangelist look like in
                                                                                       should be met or could be differentiator       pipeline of leads                               each segment
                                        Key Resources                                                                                                                         25
                                                                                                                                                                                      who influences purchases in each
                                        Which key resources does the biz                                                                                                               segment (trade groups, key
                                        model require                                                                                Channels                                          resellers, trend watchers)
                                         Integrated power system engineering –                                                      Through which channel does each
                                          compatibility for retrofit and optimized                                                   segment want to be reached
                                          system solutions
                                         Financing options for Power services                                                        which segments can only or best be
                                          operators                                                                                    reached through a channel partner
                                                                                                                                      which channel partners are important to
                                                                                                                                       optimize sales in each segment
                                                                                                                                      what are channel partners' requirements
                                                                                                                                       and cost to become a proactive sales
                                                                                                                                       channel
                                                                                                                                      initial channel partner response to value
                                                                                                                                       proposition & customer segments
                                   12                                                                                        25                                               4                                              50



 Cost Structure                                                                                             Revenue Streams
 What are our cost drivers                                                                                  How much is each segment willing to pay and how would they like to pay us this amount
  Launch reliability                                                                                           What are price /performance characteristics of competing technology
                                                                                                                What is the 2013 price target for 1 MM cells
                                                                                                                What is the 2015 price target for 10 MM cells
                                                                                                                what is optimum sales method for each segment (asset sale, lease, pay for performance, etc.)
                                                                                                                                                                                                                             3




                                                                               X = number of in depth customer data points / data sources used to validate hypothesis
                                                                   x

                                                                               red = low hypothesis confidence
                                                                   x
                                                                               yellow = medium hypothesis confidence
                                                                               green = high hypothesis confidence
                                                                   x



                                                                                                                                                                                                          GE – Transportation
PIVOT: End Users, More Markets

• “Partners” really wanted orders to fill, no risk, not a
  partnership
• Channel partners expected GEMx to deliver customers
• Initiate High-Speed End-User Customer Discovery
• Value Proposition values notably by channel, user,
  geography




                                                      GE – Transportation
PIVOT: END USERS

Not all customers alike, even in identical verticals
• Customer segmentation emerges: how they use, evaluate, buy, manage
• Value proposition and pricing vary by customer use, metric
• Openness to new technology, speed of piloting become key issues




                                                           GE – Transportation
PIVOT: END USERS

Not all customers alike, even in identical verticals
•   Customer segmentation emerges: how they use, evaluate, buy, manage
•   Value proposition and pricing vary by customer use, metric
•   Openness to new technology, speed of piloting become key issues

Focused Segment strategy; Value Prop varies by segment
• Focus on <8 hours of grid/day, extreme temperature climates
• Segment said “recharge rate” important to value proposition
• Energy produced per day a key Value Proposition in this market




                                                                   GE – Transportation
Energy Storage on The Grid
$1.5B in 2010, to $35.3B annually by 2020*
                                         T&D Support
                                      – Time Shifting   – Load Following
                                      – Supply Capacity – Area Regulation
                                      – T&D Deferral
T&D Support Example
Golden Valley Electric Association,
Alaska




                                              Renewables Integration
                                                   – Firming – Curtailment
                                                   – Smoothing

 27 MW, 15 Minutes
$750-900             $ / kW
      1011           Modules
   226,517           Cells


60 percent reduction
in power supply type
outages


                                             End User Applications
   *Pike Research report
                                            –Time of Use –Power Quality
                                            –Demand Charge
                                                                            GE – Transportation
Cold Storage “Niche” for Durathon ?                                       ™


One battery vs Three to Four Batteries
                           3 – 6* batteries per       24/7 warehouse operators
                           24 hour truck
 Pb-acid


                                                          Enersys




           8 hr use   8 hr charge         8 hr cool


                      1.5 batteries per
                      24 hour truck
 NaMx




                                                        Typical battery charging station
                                                        Acid spill containment not shown.

           8 hr use   8 hr charge         8 hr use

*Freezer operations require 4~6 Pb acid batteries / truck,
 but only 1.5 Durathon batteries per truck !!


                                                                                   GE – Transportation
But What Does This Mean For You?
Inventor of the Modern Corporation



 Scalable                   Large
             Transition
 Startup                  Company
Inventor of the Modern Corporation



 Scalable                     Large
               Transition
 Startup                    Company




      Alfred P. Sloan
Alfred P. Sloan



   Scalable                            Large
                     Transition
   Startup                           Company



General Motors, President/Chairman
- Cost Accounting
- MIT Sloan School
- Sloan Foundation
- etc.
Founder of General Motors



Scalable                    Large
             Transition
Startup                   Company
Founder of General Motors



Scalable                       Large
             Transition
Startup                      Company




                     Billy Durant
Billy Durant



Scalable                                    Large
              Transition
Startup                                   Company



            - Leader in horse-drawn buggy’s
            -Fired by board, starts Chevrolet
            - Regains control of GM
            -Fired by board, GM ~$3.6 billion*


                               * GM   Net sales in 1921 $304.5M = $3.6 Billion today
Durant Versus Sloan



Scalable                        Large
                 Transition
Startup                       Company
Durant Versus Sloan



      •Dies, rich, honored and famous
Durant Versus Sloan



•Dies managing a bowling alley   • Dies, rich, honored and famous
Durant Versus Sloan

                                   Accountant
•Dies managing a bowling alley   • Dies, rich, honored and famous
You are here
Scalable                   Large
            Transition
Startup                  Company
This Talk is Based On
• Business Model Generation
 • Four Steps Owners Manual
•The Startup to the Epiphany




                   www.steveblank.com
Book signing and copies of the
   Startup Owner’s Manual


     4pm in the Students Room
I Write a Blog
www.steveblank.com
Thanks

www.steveblank.com
# of customers: ~85 people
Hydrogen sensors in Chlor-alkali




                             151
Founding Team
Dr. Jason Gu            Principal inventor
                        CEO and Entrepreneurial Lead


Dr. Peter Foller        Former Director of R&D Chemical and Optical, PPG Industries
                        Market Exploration and Acquisition


Prof. Robert F. Davis   Professor of Materials Science, CMU
                        National Academy of Engineering
                        Advisor and Mentor


Prof. Lisa M. Porter    Professor of Materials Science, CMU
                        Technological Development and Principal Investigator



Mr. Jacob Melby         Graduate Student, Carnegie Mellon University
                        Principal Engineering Specialist
Major Commodity Market – Chlorine Production
Major Commodity Market – Chlorine Production




    Thorn in the lion’s paw (184 incidents in Europe, 4yrs)

                                           Plant cost: $1B
  Co-produced
  H2 + Cl2 =
[Current Standard-Operating Procedure]
  Once a week monitoring

                            VS
                            [Innovation]
                                  Real-time data




                                                   [H2]
Licensed Novel technology



           Hazardous Industrial Environments
Fragmented technologies and market
                                      156



ensors market
    2011: $5.6B (US) $15B (World)
    2014: $6.1B (US) $20B (World)
Sensors market
          2011: $5.6B (US) $15B (World)
          2014: $6.1B (US) $20B (World)




Hydrogen in Chlorine: $94M
• Hydrogen in [Fluorine, Bromine, Iodine]
• Hydrocarbons in high pressure (methane hydrate exploration)
• Hydrogen + hydrocarbons in high temperatures (refineries)
• Wireless transmission of temperature at high temperatures (quality assurance)
• pH and temperature in acidic solutions (steel making)
• Hydrogen + hydrocarbons in anaerobic conditions (transformer gas monitoring)
•…..
Partnership with dominant technology
     provider in C/A.




Product development 66% completed.




        Customer pilot plant test approved. Plant visits.




Market survey sent out to C/A plant managers
Explored Item




Contract Design       Product
                                      H2/HC Monitoring                   Provide                    Severe
    Shops           Development
                                          In Severe                   infrastructure              Environment
  Suppliers/         Production        Environments                                                Operators
                                                                      Component
 Manufacturers                                                                                    Applications
                                                                       sourcing
                                          Efficiency
   Research
                                                                                                   Chlorine
 Institutes and                       Regulatory/Insuran
                                                                                                  Production
   Journals                                  ce
Domain Suppliers
                   IP and Expertise                                      Direct
 Regulatory and
  Government        Capital Assets                               Domain Specific
                                                                   Suppliers

                                                                      Distributors



                     Supplier                                                        Monitoring
     Fixed          Economics                          Sensor Sales                   Services
   Sales and
                                                        Royalties
   Marketing
Value Propositions
         ‘Need-to-have’s                                 ‘Nice-to-have’s

 Detects specific species (typically ratio      Extreme kinetics and sensitivity
  of species)                                    Wireless (if low volumes)
 Sufficient kinetics and sensitivity            Low-cost
 Signal reliability (no false                   Extremely Long-lasting
  positives/negatives)                           Detection of other species
 Wireless (if high volumes)                     Low-power
 User interface (if software)
 Visualization of data
     Can be display on sensor or even
       warning LEDs
 Sensor lifetimes matching replacement
  cycle of another more crucial part



                      It only has to work, and be easy to use
Accepted                   Explored Item




Contract Design         Product
                                        H2/HC Monitoring                   Provide                    Severe
   Shops +            Development
                                            In Severe                   infrastructure              Environment
Suppliers/Manufa                                                                                     Operators
                       Production        Environments                   Component
    cturers
                                                                         sourcing                Domain Specific
    Research                                Efficiency
                                                                                                    Suppliers
  Institutes and                        Regulatory/Insuran                                      (especially if R&D
    Journals                                   ce                                                  is needed)
     Domain
Suppliers, Regulat                       Minimum Viable                                             Applications
     ory and                                 Product
                     IP and Expertise                                      Direct                    Chlorine
   Government
                                         Reliably detect                                            Production
                      Capital Assets    species of interest        Domain Specific
                                                                     Suppliers                          …
                                           Easy to use
                                         Sync with other
                                                                        Distributors
                                             cycle
                                        Wireless(if volume)

                       Supplier                                                        Monitoring
      Fixed           Economics                          Sensor Sales                   Services
    Sales and
                                                           Royalties
    Marketing
Channel Interviews
• C/A Partner
    – Regional
        •   Director of R&D
        •   Director of Marketing         Emerging Markets Interviews
        •   Director of Product Service
        •   Senior Acct Managers
                                          1.Jonathan Levine, Hydrate Research
        •   R&D Engineers                 2.NETL Methane Hydrate RG
    – Global                              3.Berkeley sensors group
        • CTO
•   Jeff Farbacher, CEO Accutran
•   Charles Noll, Marcellus Shale Development Group
•   Former GE Employee
•   Tim Fogarty, Director of IW Energy
•   Ed Faust, Global Marketing, Siemens
•   Dr. Bob Lad, President of Environetix
 Each step process has different risk premium
 Detection limit of the sensor required is different for each
  step of the process.
 Discussions are in cell technologies



             Cell Technologies




                                                                 Liquifaction


                           Current Measurement
                            Gas chromatograph


                                                 Drying Towers
 Each step process has different risk premium associated
 Detection limit of the sensor required is different for each step
  of the process. Discussions are in cell technologies

#GOAL
Price the same product differently based on what
we protect as opposed to an agglomerate value add.
               Cell Technologies




                                                                       Liquefaction


                             Current Measurement
                              Gas chromatograph


                                                       Drying Towers
Understand Economics of Plant + Sensors
        Understand Economics of
        Technology Supplier




                      Technology Supplier
Understand Economics of Plant + Sensors
                                              Industrial Plants

          Understand Economics of                Plant #1
          Technology Supplier

                                                 Plant #2


                                                 Plant #3


                        Technology Supplier
Accepted                   Explored Item




                        Product
Contract Design
                                        H2/HC Monitoring                   Provide                    Severe 167
   Shops +            Development
                                            In Severe                   infrastructure              Environment
Suppliers/Manufa                                                                                     Operators
                       Production        Environments                   Component
    cturers
                                                                         sourcing                Domain Specific
    Research                                Efficiency
                                                                                                    Suppliers
  Institutes and                        Regulatory/Insuran                                      (especially if R&D
    Journals                                   ce                                                  is needed)
     Domain
Suppliers, Regulat                       Minimum Viable                                             Applications
     ory and                                 Product
                     IP and Expertise                                      Direct                    Chlorine
   Government
                                         Reliably detect                                            Production
                      Capital Assets    species of interest        Domain Specific
                                                                     Suppliers                          …
                                           Easy to use
                                         Sync with other
                                                                        Distributors
                                          maint. cycle
                                        Wireless(if volume)

                       Supplier                                                        Monitoring
      Fixed           Economics                          Sensor Sales                   Services
    Sales and
                                                           Royalties
    Marketing
Diaphragm                                          Membrane
                                                                             168




                                          $240/MT Cl2
   Operational conditions
   Capital cost per incident
   Downtime per incident
   # of cells protected         Cost of damages + downtime per incident per year
   Time between incidents
   Number of cells, US and worldwide
                       Value per unit per year
          Diaphragm                 Membrane              Membrane Header
            $2,500                     $270                    $10,600
Soft product launch projected for Q1-Q2                              169

      2012
      General launch projected for Q4 2012
Diaphragm                      Membrane                  Membrane Header
 $2,500                             $270                        $10,600


          Year          Type               %     Revenue [/year]
           1      Innovators (US)          2.5      $271,500
          Operating costs for 1st year projected to be $350,000
           2       Early Adopters          16     $15,040,000
           3       Early Majority          50     $47,000,000
           4       Late Majority           84     $78,960,000


                  Full Penetration         100    $94,000,000
Low Volume / High Customization

             Where do they get their sensors?
                Specialized systems distributors
                   Will fund R&D
                   Existing channel into markets



                Specialized sensor providers




                Industry technology providers
                    Will fund R&D
                    Excellent channel into specific market
                     Current Chlor-alkali Partner
Product
Contract Design
                                      H2/HC Monitoring                  Provide                    Severe 171
    Shops           Development
                                          In Severe                  infrastructure              Environment
  Suppliers/         Production        Environments                                               Operators
                                                                     Component
 Manufacturers                                                                                   Applications
                                           Safety                     sourcing
   Research                                                                                       Chlorine
 Institutes and                          Efficiency                                              Production
   Journals
                                       Environmental
Domain Suppliers
                   IP and Expertise                                     Direct
 Regulatory and
  Government        Capital Assets                              Domain Specific
                                                                  Suppliers

                                                                     Distributors



                     Supplier                                                       Monitoring
     Fixed          Economics                         Sensor Sales                   Services
   Sales and
                                                       Royalties
   Marketing
Product
Contract Design
                                      H2/HC Monitoring                  Provide                    Severe 172
    Shops           Development
                                          In Severe                  infrastructure              Environment
  Suppliers/         Production        Environments                                               Operators
                                                                     Component
 Manufacturers                                                                                   Applications
                                           Safety                     sourcing
   Research                                                                                       Chlorine
 Institutes and                          Efficiency                                              Production
   Journals
                                       Environmental
Domain Suppliers
                   IP and Expertise                                     Direct
 Regulatory and
  Government        Capital Assets                              Domain Specific
                                                                  Suppliers

                                                                     Distributors



                     Supplier                                                       Monitoring
     Fixed          Economics                         Sensor Sales                   Services
   Sales and
                                                       Royalties
   Marketing
Product
Contract Design
                                        H2/HC Monitoring                   Provide                    Severe 173
   Shops +            Development
                                            In Severe                   infrastructure              Environment
Suppliers/Manufa                                                                                     Operators
                       Production        Environments                   Component
    cturers
                                                                         sourcing                Domain Specific
    Research                                Efficiency
                                                                                                    Suppliers
  Institutes and                        Regulatory/Insuran                                      (especially if R&D
    Journals                                   ce                                                  is needed)
     Domain
Suppliers, Regulat                       Minimum Viable                                             Applications
     ory and                                 Product
                     IP and Expertise                                      Direct                     Chlorine
   Government
                                         Reliably detect                                             Production
                      Capital Assets    species of interest        Domain Specific
                                                                                                    Oil and Gas
                                           Easy to use               Suppliers
                                                                                                        Power
                                         Sync with other
                                                                        Distributors                Infrastructure
                                             cycle
                                        Wireless(if volume)                                              …

                       Supplier                                                        Monitoring
      Fixed           Economics                          Sensor Sales                   Services
    Sales and
                                                           Royalties
    Marketing
Product
Contract Design
                                       H2/HC Monitoring                   Provide                    Severe 174
   Shops +           Development
                                           In Severe                   infrastructure              Environment
Suppliers/Manufa                                                                                    Operators
                      Production        Environments                   Component
    cturers
                                                                        sourcing                Domain Specific
    Research                               Efficiency
                                                                                                   Suppliers
  Institutes and                       Regulatory/Insuran                                      (especially if R&D
    Journals                                  ce                                                  is needed)
Domain Suppliers,                                                                                  Applications
                                        Minimum Viable
 Regulatory and
                                            Product
  Government        IP and Expertise                                      Direct                     Chlorine
                                        Reliably detect                                             Production
                     Capital Assets    species of interest        Domain Specific
                                                                                                   Oil and Gas
                                          Easy to use               Suppliers
                                                                                                       Power
                                        Sync with other
                                                                       Distributors                Infrastructure
                                         maint. cycle
                                       Wireless(if volume)                                              …

                      Supplier                                                        Monitoring
      Fixed          Economics                          Sensor Sales                   Services
   Sales and
                                                          Royalties
   Marketing
Accepted                   Explored Item




                       Product
Contract Design
                                       H2/HC Monitoring                   Provide                    Severe 175
   Shops +           Development
                                           In Severe                   infrastructure              Environment
Suppliers/Manufa                                                                                    Operators
                      Production        Environments                   Component
    cturers
                                                                        sourcing                Domain Specific
    Research                               Efficiency
                                                                                                   Suppliers
  Institutes and                       Regulatory/Insuran                                      (especially if R&D
    Journals                                  ce                                                  is needed)
Domain Suppliers,                                                                                  Applications
                                        Minimum Viable
 Regulatory and
                                            Product
  Government        IP and Expertise                                      Direct                    Chlorine
                                        Reliably detect                                            Production
                     Capital Assets    species of interest        Domain Specific
                                                                    Suppliers                          …
                                          Easy to use
                                        Sync with other
                                                                       Distributors
                                         maint. cycle
                                       Wireless(if volume)

                      Supplier                                                        Monitoring
      Fixed          Economics                          Sensor Sales                   Services
   Sales and
                                                          Royalties
   Marketing
ARPA- E Steve Blank Presentation
CUSTOMER SEGMENTS




 which customers and users are you serving?
 which jobs do they really want to get done?
VALUE PROPOSITIONS




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




how does each customer segment want to be reached?
          through which interaction points?
CUSTOMER RELATIONSHIPS




what relationships are you establishing with each segment?
       personal? automated? acquisitive? retentive?
REVENUE STREAMS




   what are customers really willing to pay for? how?
are you generating transactional or recurring revenues?
KEY RESOURCES




which resources underpin your business model? which
                assets are essential?
KEY ACTIVITIES




which activities do you need to perform well in your
        business model? what is crucial?
                                                  183
KEY PARTNERS




which partners and suppliers leverage your model?
           who do you need to rely on?
COST STRUCTURE




 what is the resulting cost structure?
which key elements drive your costs?
key activities   value             customer
                         proposition       relationships




     key                                               customer
partners                                               segments




     cost                                              revenue
structure         key                                  streams
            resources                  channels
                                                           186
                                                       images by JAM

Más contenido relacionado

La actualidad más candente

Customer Development at Startup2Startup
Customer Development at Startup2StartupCustomer Development at Startup2Startup
Customer Development at Startup2StartupStanford University
 
Lecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentLecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentStanford University
 
Lean Startup Methodology
Lean Startup MethodologyLean Startup Methodology
Lean Startup MethodologyFardeen Rahaman
 
Customer Development Mythology by Steve Blank
Customer Development  Mythology by Steve BlankCustomer Development  Mythology by Steve Blank
Customer Development Mythology by Steve Blankjstanto
 
Introduction to Lean Startup » Lean Startup Barcelona
Introduction to Lean Startup » Lean Startup BarcelonaIntroduction to Lean Startup » Lean Startup Barcelona
Introduction to Lean Startup » Lean Startup BarcelonaJaume Teixi
 
Product Management Stage-Gate Process (Sample)
Product Management Stage-Gate Process (Sample)Product Management Stage-Gate Process (Sample)
Product Management Stage-Gate Process (Sample)Jack Rupert, PE, MBA
 
Business Model Innovation
Business Model InnovationBusiness Model Innovation
Business Model InnovationTim Kastelle
 
Columbia lecture 111210 customer development
Columbia lecture 111210 customer developmentColumbia lecture 111210 customer development
Columbia lecture 111210 customer developmentStanford University
 
Lecture 4 distribution channels 120411
Lecture 4 distribution channels 120411Lecture 4 distribution channels 120411
Lecture 4 distribution channels 120411Stanford University
 
Why Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large CompaniesWhy Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large CompaniesStanford University
 
AIA2018 - Emad Saif - Business Model Hacking & Innovation
AIA2018 - Emad Saif - Business Model Hacking & InnovationAIA2018 - Emad Saif - Business Model Hacking & Innovation
AIA2018 - Emad Saif - Business Model Hacking & InnovationEuropean Innovation Academy
 
Whole Product Roadmap Case Study
Whole Product Roadmap Case StudyWhole Product Roadmap Case Study
Whole Product Roadmap Case StudyBruce Pharr
 
Lean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvasLean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvasgistinitiative
 
Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...
Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...
Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...Eric Ries
 

La actualidad más candente (20)

Customer Development at Startup2Startup
Customer Development at Startup2StartupCustomer Development at Startup2Startup
Customer Development at Startup2Startup
 
Building an MVP
Building an MVPBuilding an MVP
Building an MVP
 
48 hours customer development
48 hours customer development48 hours customer development
48 hours customer development
 
Lecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentLecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer Development
 
Lean Startup Methodology
Lean Startup MethodologyLean Startup Methodology
Lean Startup Methodology
 
E145 Mentor Handbook
E145 Mentor HandbookE145 Mentor Handbook
E145 Mentor Handbook
 
Customer Development Mythology by Steve Blank
Customer Development  Mythology by Steve BlankCustomer Development  Mythology by Steve Blank
Customer Development Mythology by Steve Blank
 
Introduction to Lean Startup » Lean Startup Barcelona
Introduction to Lean Startup » Lean Startup BarcelonaIntroduction to Lean Startup » Lean Startup Barcelona
Introduction to Lean Startup » Lean Startup Barcelona
 
Business Model Canvas Workshop
Business Model Canvas WorkshopBusiness Model Canvas Workshop
Business Model Canvas Workshop
 
Product Management Stage-Gate Process (Sample)
Product Management Stage-Gate Process (Sample)Product Management Stage-Gate Process (Sample)
Product Management Stage-Gate Process (Sample)
 
Eric Ries Startup Way Lean Startup Slide Deck
Eric Ries Startup Way Lean Startup Slide DeckEric Ries Startup Way Lean Startup Slide Deck
Eric Ries Startup Way Lean Startup Slide Deck
 
Business Model Innovation
Business Model InnovationBusiness Model Innovation
Business Model Innovation
 
Innovation at 50x 031616
Innovation at 50x 031616Innovation at 50x 031616
Innovation at 50x 031616
 
Columbia lecture 111210 customer development
Columbia lecture 111210 customer developmentColumbia lecture 111210 customer development
Columbia lecture 111210 customer development
 
Lecture 4 distribution channels 120411
Lecture 4 distribution channels 120411Lecture 4 distribution channels 120411
Lecture 4 distribution channels 120411
 
Why Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large CompaniesWhy Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large Companies
 
AIA2018 - Emad Saif - Business Model Hacking & Innovation
AIA2018 - Emad Saif - Business Model Hacking & InnovationAIA2018 - Emad Saif - Business Model Hacking & Innovation
AIA2018 - Emad Saif - Business Model Hacking & Innovation
 
Whole Product Roadmap Case Study
Whole Product Roadmap Case StudyWhole Product Roadmap Case Study
Whole Product Roadmap Case Study
 
Lean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvasLean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvas
 
Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...
Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...
Introduction to Customer Development at the Lean Startup Intensive at Web 2.0...
 

Destacado

Inno evalfi policy_report_28_oct_2009
Inno evalfi policy_report_28_oct_2009Inno evalfi policy_report_28_oct_2009
Inno evalfi policy_report_28_oct_2009Stanford University
 
Murray gordon the finnish paradox
Murray gordon the finnish paradoxMurray gordon the finnish paradox
Murray gordon the finnish paradoxStanford University
 
Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010Stanford University
 
F inland and the helsinki spring 090811
F inland and the helsinki spring 090811F inland and the helsinki spring 090811
F inland and the helsinki spring 090811Stanford University
 
Ny entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer developmentNy entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer developmentStanford University
 
steve blank in finland sept 2011
steve blank in finland sept 2011steve blank in finland sept 2011
steve blank in finland sept 2011Stanford University
 
Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211Stanford University
 
William perry bio entrepreneurial thought leaders
William perry bio entrepreneurial thought leadersWilliam perry bio entrepreneurial thought leaders
William perry bio entrepreneurial thought leadersStanford University
 

Destacado (20)

Customer Discovery Skills
Customer Discovery Skills Customer Discovery Skills
Customer Discovery Skills
 
Tikari report
Tikari reportTikari report
Tikari report
 
Inno evalfi policy_report_28_oct_2009
Inno evalfi policy_report_28_oct_2009Inno evalfi policy_report_28_oct_2009
Inno evalfi policy_report_28_oct_2009
 
Commonwealth club 020811
Commonwealth club 020811Commonwealth club 020811
Commonwealth club 020811
 
Murray gordon the finnish paradox
Murray gordon the finnish paradoxMurray gordon the finnish paradox
Murray gordon the finnish paradox
 
Polar Photo Team6
Polar Photo Team6Polar Photo Team6
Polar Photo Team6
 
JAK Capital Team8
JAK Capital Team8JAK Capital Team8
JAK Capital Team8
 
Can I Borrow This Team5
Can I Borrow This Team5Can I Borrow This Team5
Can I Borrow This Team5
 
Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010
 
F inland and the helsinki spring 090811
F inland and the helsinki spring 090811F inland and the helsinki spring 090811
F inland and the helsinki spring 090811
 
Startup weekend introduction
Startup weekend introductionStartup weekend introduction
Startup weekend introduction
 
Ny entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer developmentNy entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer development
 
Project Sail Eng245 2017
Project Sail Eng245 2017Project Sail Eng245 2017
Project Sail Eng245 2017
 
Aja Health Engr245 2017
Aja Health Engr245 2017Aja Health Engr245 2017
Aja Health Engr245 2017
 
steve blank in finland sept 2011
steve blank in finland sept 2011steve blank in finland sept 2011
steve blank in finland sept 2011
 
When the Boardroom is Bits
When the Boardroom is BitsWhen the Boardroom is Bits
When the Boardroom is Bits
 
Freewill Eng245 2017
Freewill Eng245 2017Freewill Eng245 2017
Freewill Eng245 2017
 
Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211
 
Teaching History to Language Learners
Teaching History to Language LearnersTeaching History to Language Learners
Teaching History to Language Learners
 
William perry bio entrepreneurial thought leaders
William perry bio entrepreneurial thought leadersWilliam perry bio entrepreneurial thought leaders
William perry bio entrepreneurial thought leaders
 

Similar a ARPA- E Steve Blank Presentation

Steve Blank "Entrepreneurial education"
Steve Blank "Entrepreneurial education"Steve Blank "Entrepreneurial education"
Steve Blank "Entrepreneurial education"Erica Kirichenko
 
Henrik Berglund, Venture Cup, feb 2013
Henrik Berglund, Venture Cup, feb 2013Henrik Berglund, Venture Cup, feb 2013
Henrik Berglund, Venture Cup, feb 2013Henrik Berglund
 
Nsf lecture 1 bus model cust dev
Nsf lecture 1 bus model cust devNsf lecture 1 bus model cust dev
Nsf lecture 1 bus model cust devStanford University
 
NCIIA Steve Blank Keynote 032312
NCIIA Steve Blank Keynote 032312NCIIA Steve Blank Keynote 032312
NCIIA Steve Blank Keynote 032312Stanford University
 
Lecture 1 NSF I-Corps March 2012 bus model cust dev
Lecture 1 NSF I-Corps March 2012 bus model cust devLecture 1 NSF I-Corps March 2012 bus model cust dev
Lecture 1 NSF I-Corps March 2012 bus model cust devStanford University
 
Everything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it RightEverything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it RightStanford University
 
Maine "Top Gun" Customer Development Broadcast 021512
Maine "Top Gun" Customer Development Broadcast  021512Maine "Top Gun" Customer Development Broadcast  021512
Maine "Top Gun" Customer Development Broadcast 021512Stanford University
 
Greycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run StartupsGreycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run StartupsStanford University
 
Steve blank sxsw new rules for the new bubble 031211
Steve blank  sxsw new rules for the new bubble 031211Steve blank  sxsw new rules for the new bubble 031211
Steve blank sxsw new rules for the new bubble 031211Sheila Goodman
 
Stanford breakfast briefing 111214
Stanford breakfast briefing 111214Stanford breakfast briefing 111214
Stanford breakfast briefing 111214Stanford University
 
Why Product Managers Need Sneakers
Why Product Managers Need SneakersWhy Product Managers Need Sneakers
Why Product Managers Need SneakersStanford University
 
Why fighter pilots run startups 090511
Why fighter pilots run startups 090511Why fighter pilots run startups 090511
Why fighter pilots run startups 090511Stanford University
 
Business Model Workshop: the Tao of Startups
Business Model Workshop: the Tao of StartupsBusiness Model Workshop: the Tao of Startups
Business Model Workshop: the Tao of StartupsKeith McGreggor
 
Stanford Entrepreneurship Week 030211
Stanford Entrepreneurship Week 030211Stanford Entrepreneurship Week 030211
Stanford Entrepreneurship Week 030211Stanford University
 
Watermark 040511 387 million ways to fail
Watermark 040511 387 million ways to failWatermark 040511 387 million ways to fail
Watermark 040511 387 million ways to failStanford University
 

Similar a ARPA- E Steve Blank Presentation (20)

Steve Blank "Entrepreneurial education"
Steve Blank "Entrepreneurial education"Steve Blank "Entrepreneurial education"
Steve Blank "Entrepreneurial education"
 
Henrik Berglund, Venture Cup, feb 2013
Henrik Berglund, Venture Cup, feb 2013Henrik Berglund, Venture Cup, feb 2013
Henrik Berglund, Venture Cup, feb 2013
 
Nsf lecture 1 bus model cust dev
Nsf lecture 1 bus model cust devNsf lecture 1 bus model cust dev
Nsf lecture 1 bus model cust dev
 
NCIIA Steve Blank Keynote 032312
NCIIA Steve Blank Keynote 032312NCIIA Steve Blank Keynote 032312
NCIIA Steve Blank Keynote 032312
 
Lecture 1 NSF I-Corps March 2012 bus model cust dev
Lecture 1 NSF I-Corps March 2012 bus model cust devLecture 1 NSF I-Corps March 2012 bus model cust dev
Lecture 1 NSF I-Corps March 2012 bus model cust dev
 
Everything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it RightEverything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it Right
 
Maine "Top Gun" Customer Development Broadcast 021512
Maine "Top Gun" Customer Development Broadcast  021512Maine "Top Gun" Customer Development Broadcast  021512
Maine "Top Gun" Customer Development Broadcast 021512
 
Greycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run StartupsGreycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run Startups
 
Steve blank sxsw new rules for the new bubble 031211
Steve blank  sxsw new rules for the new bubble 031211Steve blank  sxsw new rules for the new bubble 031211
Steve blank sxsw new rules for the new bubble 031211
 
Delft climate kic 070212 part 1
Delft climate kic 070212 part 1Delft climate kic 070212 part 1
Delft climate kic 070212 part 1
 
True ventures 072011
True ventures 072011True ventures 072011
True ventures 072011
 
Stanford breakfast briefing 111214
Stanford breakfast briefing 111214Stanford breakfast briefing 111214
Stanford breakfast briefing 111214
 
Why Product Managers Need Sneakers
Why Product Managers Need SneakersWhy Product Managers Need Sneakers
Why Product Managers Need Sneakers
 
Why fighter pilots run startups 090511
Why fighter pilots run startups 090511Why fighter pilots run startups 090511
Why fighter pilots run startups 090511
 
Business Model Workshop: the Tao of Startups
Business Model Workshop: the Tao of StartupsBusiness Model Workshop: the Tao of Startups
Business Model Workshop: the Tao of Startups
 
Stanford Entrepreneurship Week 030211
Stanford Entrepreneurship Week 030211Stanford Entrepreneurship Week 030211
Stanford Entrepreneurship Week 030211
 
Lean Startup With Rob Kunz
Lean Startup With Rob KunzLean Startup With Rob Kunz
Lean Startup With Rob Kunz
 
Biz barcelona 061511
Biz barcelona 061511Biz barcelona 061511
Biz barcelona 061511
 
Biz barcelona 061511
Biz barcelona 061511Biz barcelona 061511
Biz barcelona 061511
 
Watermark 040511 387 million ways to fail
Watermark 040511 387 million ways to failWatermark 040511 387 million ways to fail
Watermark 040511 387 million ways to fail
 

Más de Stanford University

Team Networks - 2022 Technology, Innovation & Great Power Competition
Team Networks  - 2022 Technology, Innovation & Great Power CompetitionTeam Networks  - 2022 Technology, Innovation & Great Power Competition
Team Networks - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team LiOn Batteries - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries  - 2022 Technology, Innovation & Great Power CompetitionTeam LiOn Batteries  - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Quantum - 2022 Technology, Innovation & Great Power Competition
Team Quantum  - 2022 Technology, Innovation & Great Power CompetitionTeam Quantum  - 2022 Technology, Innovation & Great Power Competition
Team Quantum - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Disinformation - 2022 Technology, Innovation & Great Power Competition
Team Disinformation  - 2022 Technology, Innovation & Great Power CompetitionTeam Disinformation  - 2022 Technology, Innovation & Great Power Competition
Team Disinformation - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Wargames - 2022 Technology, Innovation & Great Power Competition
Team Wargames  - 2022 Technology, Innovation & Great Power CompetitionTeam Wargames  - 2022 Technology, Innovation & Great Power Competition
Team Wargames - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Acquistion - 2022 Technology, Innovation & Great Power Competition
Team Acquistion  - 2022 Technology, Innovation & Great Power Competition Team Acquistion  - 2022 Technology, Innovation & Great Power Competition
Team Acquistion - 2022 Technology, Innovation & Great Power Competition Stanford University
 
Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition Stanford University
 
Altuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons LearnedAltuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons LearnedStanford University
 
Invisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons LearnedInvisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons LearnedStanford University
 
ānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons Learnedānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons LearnedStanford University
 
Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef Stanford University
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Stanford University
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Stanford University
 
Team Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power CompetitionTeam Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power CompetitionTeam Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power CompetitionTeam Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power CompetitionTeam Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power CompetitionTeam Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...Stanford University
 
Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - CyberLecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - CyberStanford University
 

Más de Stanford University (20)

Team Networks - 2022 Technology, Innovation & Great Power Competition
Team Networks  - 2022 Technology, Innovation & Great Power CompetitionTeam Networks  - 2022 Technology, Innovation & Great Power Competition
Team Networks - 2022 Technology, Innovation & Great Power Competition
 
Team LiOn Batteries - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries  - 2022 Technology, Innovation & Great Power CompetitionTeam LiOn Batteries  - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries - 2022 Technology, Innovation & Great Power Competition
 
Team Quantum - 2022 Technology, Innovation & Great Power Competition
Team Quantum  - 2022 Technology, Innovation & Great Power CompetitionTeam Quantum  - 2022 Technology, Innovation & Great Power Competition
Team Quantum - 2022 Technology, Innovation & Great Power Competition
 
Team Disinformation - 2022 Technology, Innovation & Great Power Competition
Team Disinformation  - 2022 Technology, Innovation & Great Power CompetitionTeam Disinformation  - 2022 Technology, Innovation & Great Power Competition
Team Disinformation - 2022 Technology, Innovation & Great Power Competition
 
Team Wargames - 2022 Technology, Innovation & Great Power Competition
Team Wargames  - 2022 Technology, Innovation & Great Power CompetitionTeam Wargames  - 2022 Technology, Innovation & Great Power Competition
Team Wargames - 2022 Technology, Innovation & Great Power Competition
 
Team Acquistion - 2022 Technology, Innovation & Great Power Competition
Team Acquistion  - 2022 Technology, Innovation & Great Power Competition Team Acquistion  - 2022 Technology, Innovation & Great Power Competition
Team Acquistion - 2022 Technology, Innovation & Great Power Competition
 
Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition
 
Altuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons LearnedAltuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons Learned
 
Invisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons LearnedInvisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons Learned
 
ānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons Learnedānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons Learned
 
Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
 
Team Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power CompetitionTeam Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power Competition
 
Team Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power CompetitionTeam Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power Competition
 
Team Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power CompetitionTeam Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power Competition
 
Team Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power CompetitionTeam Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power Competition
 
Team Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power CompetitionTeam Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power Competition
 
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
 
Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - CyberLecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
 

Último

KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...M56BOOKSTORE PRODUCT/SERVICE
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeCeline George
 
3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptx3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptxmary850239
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxPurva Nikam
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdfJayanti Pande
 
EBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting BlEBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting BlDr. Bruce A. Johnson
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfMohonDas
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSyedNadeemGillANi
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
Work Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashaWork Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashasashalaycock03
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...Dr. Asif Anas
 

Último (20)

KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using Code
 
3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptx3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptx
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptx
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf
 
EBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting BlEBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting Bl
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdf
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
Work Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashaWork Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sasha
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
 

ARPA- E Steve Blank Presentation

  • 1. The Scientific Method for Getting Technology to Market Steve Blank www.steveblank.com Twitter: @sgblank
  • 2. The Scientific Method for Getting Technology to Market Steve Blank www.steveblank.com Twitter: @sgblank
  • 3. How to Fail Less When Bringing Technology to Market Steve Blank www.steveblank.com Twitter: @sgblank
  • 4. I Write a Blog www.steveblank.com
  • 5. This Talk is Based On • Business Model Generation • Four Steps Owners Manual •The Startup to the Epiphany www.steveblank.com
  • 6. Lesson 1 THE "ABC'S OF INNOVATION
  • 7. Startups Are Not Smaller Versions of Large Companies
  • 8. Startups Are Not Smaller Versions of Large Companies Large Companies Execute Known Business Models
  • 9. Startups Are Not Smaller Versions of Large Companies Startups Search for Unknown Business Models
  • 10. Startups Fail Because They Confuse Search with Execute
  • 11. Startups Search, Companies Execute The Execution of the Business Model Scalable Large Transition Startup Company Repeatable processes -Knowns: - customers, features, - channels, pricing, etc -Execution -Understood Job Functions
  • 12. Startups Search and Pivot The Search for the Business Model Scalable Large Transition Startup Company Business Model found by founders - Solving for unknowns - Searching for a match: - customer needs product features i.e. Product/Market fit - Repeatable sales model
  • 13. Metrics Versus Accounting The Execution of the Business Model Scalable Large Transition Startup Company Traditional Accounting -Balance Sheet - Cash Flow Statement - Income Statement
  • 14. Metrics Versus Accounting The Search for the Business Model The Execution of the Business Model Scalable Large Transition Startup Company Startup Metrics - Average Selling Price/Order Size Traditional Accounting - Balance Sheet - Customer Acquisition Cost - Cash Flow Statement - Customer Lifetime Value - Income Statement - Monthly burn rate - etc.
  • 15. Customer Validation Versus Sales The Execution of the Business Model Scalable Large Transition Startup Company Sales -Sales Organization - Job titles and functions - Price List/Data Sheets - Revenue Plan
  • 16. Customer Validation Versus Sales The Search for the Business Model The Execution of the Business Model Scalable Large Transition Startup Company Customer Validation - Early Adopters Sales - Sales Organization - Pricing/Feature unstable - Scalable - Not yet repeatable - Price List/Data Sheets -“One-off’s” - Revenue Plan
  • 17. Waterfall Engineering Versus Agile Development The Execution of the Business Model Scalable Large Transition Startup Company Engineering - Requirements Docs. - Waterfall Development - QA - Tech Pubs
  • 18. Engineering Versus Agile Development The Search for the Business Model The Execution of the Business Model Scalable Large Transition Startup Company Engineering Agile Development - Requirements Docs. - Continuous Deployment - Waterfall Development - Continuous Learning - QA - Tech Pubs - Self Organizing Teams - Minimum Feature Set - Pivots
  • 19. Startups Model, Companies Plan The Execution of the Business Model Scalable Large Transition Startup Company Business Plan - describes “knowns” - features - customers/markets/channel - pricing - revenue forecast
  • 20. Startups Model, Companies Plan The Search for the Business Model The Execution of the Business Model Scalable Large Transition Startup Company -Business Model -Plan describes “knowns” - Known features for line extensions - describes “unknowns” - Known customers/markets -customer needs - Known business model - feature set - business model - found by iteration
  • 21. Large Company Product Introduction Plan Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship
  • 22. When Adopted by Startups = The Leading Cause of Startup Death Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship
  • 23. Product Introduction Plan: Two Implicit Assumptions Customer Problem: known Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship Product Features: known
  • 25. Large Company Method – Hire Marketing Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create Demand Marketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding”
  • 26. Large Company Method – Hire Sales Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create Demand Marketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding” • Hire Sales VP • Build Sales Sales • Hire 1st Sales Staff Organization
  • 27. Large Company Method – Hire Business Development Concept Product Alpha/Beta Launch/ Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create Demand Marketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding” • Hire Sales VP • Build Sales Channel / Sales • Pick distribution Distribution Channel Business • Hire First • Do deals for FCS Development Bus Dev
  • 28. Large Company Method – Hire Engineering Concept Product Alpha/Beta Launch/ Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create Demand Marketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding” • Hire Sales VP • Build Sales Channel / Sales • Pick distribution Distribution Channel Business • Hire First • Do deals for FCS Development Bus Dev Engineering • Write MRD • Waterfall • Q/A •Tech Pubs
  • 29. Lesson 2 LETS CHANGE THE DEFINITION OF A STARTUP
  • 31. All I Need to Do is Execute the Plan
  • 33. No Business Plan Survives First Contact With Customers
  • 34. Lets Change the Definition
  • 35. A Startup is a temporary organization
  • 36. A Startup is a temporary organization designed to search
  • 37. A Startup is a temporary organization designed to search for a repeatable and scalable business model
  • 38. Startups need their own tools, different from those used in existing companies
  • 39. Startups need their own tools, different from those used in existing companies
  • 40. Lesson 3 THE 3 TOOLS FOR STARTUPS
  • 41. Startup Tool #1: Agile Engineering
  • 42. Agile Engineering is How We Build Startups
  • 43. Agile Engineering is the antithesis of Waterfall Development
  • 44. Agile Engineering is the antithesis of Waterfall It admits “We Cannot Know All the Features Customers Need”
  • 45. Agile Engineering is the antithesis of Waterfall It admits “We Cannot Know All the Features Customers Need” So lets build iterative and incrementally
  • 46. Startup Tool #2: The Business Model
  • 47. The Business Model: Any company can be described in 9 building blocks
  • 50. Business Model Canvas – Any Business KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS
  • 51. 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess
  • 53. Customer Development is How We Search for the Business Model
  • 54. Lesson 4 CUSTOMER DEVELOPMENT
  • 55. Customer Development There are no facts inside your building So get the heck out
  • 56. Customer Development is how you search for the model Search Execution Customer Customer Customer Company Discovery Validation Creation Building Pivot
  • 57. Customer Development The Search For the Business Model Search Customer Customer Discovery Validation Pivot
  • 58. Customer Development Execution Customer Customer Customer Company Discovery Validation Creation Building Pivot
  • 59. Customer Discovery Search Customer Customer Customer Company Discovery Validation Creation Building Pivot Execution • Articulate and Test your hypotheses • Design experiments, start listening • Continuous Discovery • Done by founders
  • 60. Discovery • How big is the market? • Who’s the customer? – What’s their problem/need • What’s the product/service/need? – Does it solve the customers problem? • How do you create demand? • How do you deliver the product? • How do you make money?
  • 61. Customer Development = process to search Business Model Canvas = the Scorecard Agile Engineering is How •Research Labs •Technology Design •Marketing •Cost •Farming conventions. •Demo, dem o, and •Organic •Demo and Reduction We Build Startups •Equipment Manufactur ers customer feedback •Remove labor force demo!! •Proximity is paramount Farmers •Weeding Service •Distributio pains •IP – Providers n Network •Eliminate Patents •Conventio •Service •Video bio-waste •Dealers nal Farmers Providers Classifier hazards •Direct Service Files •Indirect Service • … then Dealers •Robust Technology Value- •Asset Sale Driven •Direct Service with equipment rental •… then Asset Sale
  • 62. The Minimum Viable Product (MVP) •Smallest feature set that gets you the most … - orders, learning, feedback, failure… - incremental and iterative
  • 64. Customer Validation Search Customer Customer Customer Company Discovery Validation Creation Building Pivot Execution • Repeatable and scalable business model? • Passionate earlyvangelists? • Pivot back to Discovery if no customers
  • 65. The Pivot Search Customer Customer Discovery Validation Pivot •The heart of Customer Development •Iteration without crisis •Fast, agile and opportunistic
  • 66. Instead of Firing Founders When They Don’t Make the Plan
  • 67. Instead of Firing Founders When They Don’t Make the Plan First, Fire the Plan
  • 68. Pivot Cycle Time Matters Search Execution Customer Customer Customer Company Discovery Validation Creation Building Pivot •Speed of cycle minimizes cash needs •Minimum feature set speeds up cycle time • Near instantaneous customer feedback drives feature set
  • 69. Lesson 4 HOW DOES THIS REALLY WORK? LEAN LAUNCHPAD CLASS
  • 70. How Does This Really Work? Lean LaunchPad Class National Science Foundation
  • 71. Startups to Large Companies
  • 72. How Does This Really Work? The National Science Foundation 8 Weeks From an Idea to a Business
  • 74. Graphene Frontiers We are a nanotechnology materials company with a proprietary process for producing high quality, low cost, large area graphene films at commercial scale
  • 75. Team: Graphene Frontiers EL:Zhengtang Luo, PhD – Chief Science Officer 10+ years experience in synthesis of carbon nanomaterials and product development for applications in the area of materials chemistry, chemical separation and electronic devices. Mentor: Mike Patterson – CEO Experienced entrepreneurial leader, manager, and trusted adviser to startups and Fortune 500 companies, providing expertise in growth strategy and international operations. Patterson is an Executive MBA candidate (Entrepreneurial Management, April 2012) at the Wharton School, University of Pennsylvania. PI: A.T. Charlie Johnson, PhD – Founder, Scientific Advisory Board Known internationally for his work in graphene electronics and carbon nanotube electronics. IP from his lab on DNA-carbon nanotube devices for use in an electronic nose system pursued by Nanosense. An author of over 130 peer-reviewed articles, Johnson holds two issued patents, with 18 other patents submitted.
  • 76. Background: Graphene Applications “Wonder Material” Graphene • Nano Material Subject of 2010 Nobel Prize in Physics • 2D Carbon: Strong, Flexible, Conductive, Transparent • Enables Next Generation Thin, Flexible Devices Flexible Transparent Thin, Flexible Touch Screen, Displays Electrodes Solar Cells
  • 77. Problem: Lab Scale Not Enough Graphene Production Must Scale Up to Commercial Levels before Integration into Consumer Products Becomes a Reality…
  • 78. Solution: Scalable Production Process Our Patent-Pending APCVD Graphene Production Process: •Operates at ambient pressure, reducing cost enabling flexible design •Industrial scale, continuous roll-to- roll production possible •Graphene sheet size limited only by CVD furnace dimensions •Same or better quality vis-à-vis LPCVD graphene •Graphene growth at 900-1000 °C, lower than other methods
  • 79. Market: Size and Growth Nascent Graphene Market is Ready to Explode: Commercial Scale Production will be Catalyst • Thin, Flexible Displays • Solar Thin Film • Touch Screens Thin, Flexible Display • Thermal Management for Electronics Thermal Management $8.2B • Basic Materials and Research $6.4B • Microscopy (TEM) Sample Supports GF TAM: $1.2B Research/ Market for Thin Film Solar Mat’l/Other Graphene $4.6B $1.4B Films/Sheets $52M Graphene Frontiers Process & Product Offering • GF APCVD Process will Accelerate Graphene Adoption Curve 2012 2016
  • 80. Recap • Graphene technology will change the world... • …but not until it is available in commercial volumes • We believe that APCVD is the best path to industrial scale • Whoever meets this challenge will be first mover in a fast growing market with multi-billion dollar potential • We are the right team with the right technology to do it
  • 81. Enter I-Corps: Beginning Hypotheses Here’s What We Thought: – Graphene can be used for just about anything – All of the big manufacturers are just waiting for our product – The market for graphene will explode in 2012 – We will become the world’s largest graphene manufacturer
  • 82. The Business Model Canvas - Version 1 • R&D • Lead Customer • Scale up system Material • Warranty • Equipment Mfg design • Thermal Conduct. • Service/Maint. • Universities • Graphene product. • Defense • Elect. Conduct Agree • Downstream • IP creation/ • MEMS • Strength • Joint Marketing fabrication licensing • Chem/Bio Sensor • “Semiconductor” • Branding companies • Internal app. dev. • Researchers • Flexible • Education • Suppliers • Optoelectronics • Transparent • Transparent Process Conduct. (Touch) • Low Cost • Solar Cell • Higher Quality Electrodes • IP* • Distributor • Thermal Mgmt • Large Area (Patent/License) • Direct Sales • Supercapacitor • “Industrializable” • Team/Expertise • Online • Battery • Flexible Mfg • Credibility/Rep • License • TEM support • CVD Equipment • Partner/JV • Polymer/Compos. • Inputs (gas/foil) • Bundle • CVD Equip Mfg • Lab space • Website • Design/Engineerin • Team g • Lab space • Material Sales • Maintenance • Capital equipment • License/Royalty • Design • Direct Sales/Travel • Equipment Sales • Add’l IP • Consulting • Applications
  • 83. So Here’s What We Did… • Research to identify target companies: Build the list – Web, industry/research reports, personal network, “Who else should we talk to?” • Calls to personal/professional/alumni network: “Do you know anyone…?” • Intros, warm calls, cold calls, cold calls, more calls
  • 84. So Here’s What We Did… • Google AdWords Campaign + Survey Monkey – 3 days, 8,555 Impressions, 34 people clicking through to our site, ZERO contacts/closes. Retrospect: What were we trying to learn??? • Serendipity: Casual conversation turns to Graphene Frontiers at alumni event: “That’s terrific! You know, I work at DuPont. Here’s my card… send me your deck and let me know how I can help.” –Tom Connelly, Chief Innovation Officer, DuPont
  • 85. So Here’s What We Did… • 48 Companies Engaged, 70+ Conversations: – Lockheed Martin, GrafTech, Inventables, alphaMOS, FirstNano, Pannam Imaging, FujiFilm, Solutia, Dontech, Tramonto Circuits, Adamant Technologies, Intel, XG Sciences, Graphene Technologies, Densitron, Hotatouch, Touch International, Magic Touch, NJY Technology, Pangea Ventures, Display Search, Dow, DuPont, 3M, Corning, BASF, WL Gore, Morgan AM&T, Plextronics, SPI Supplies, New Metals and Chemicals, G.E., Innovalight, Siemens, Nelson-Miller, Essilor USA, Nexans, E- ink, Gamma Dynamics, Plastic Logic, Cabot Corporation, Thin Diamond, Knighthawk Engineering, Kopietz Consulting, DISPLAX, NineSigma, Evaporated Coatings, LiquaVista • 80 LLL Posts, 61 Comments/Responses – 79% comments positive or factual, 21% “Constructive”
  • 86. Version 2 – Narrowed to 3 Customer Segments Equipment Mfg Scale up Low Cost Education Thermal Mgmt Solutions Universities Customization Higher Quality Service/Maint. Transparent Production Conduct. Downstream Large Area (Touch) fabrication companies Chem/Bio “Industrializable” IP License Sensor CVD Equipment Direct Sales Facilities/Lab License/Royalty Capital equipment Personnel Material Sales Direct Sales/Travel Lab space
  • 87. So Here’s What We Learned… • Atmospheric pressure production is key value-add – Not “high-quality”, not single-layer • Many big companies are on the sidelines doing limited product dev, waiting for a proven production method • We need to focus on scaling up (bigger & faster) • We need a partner to break into consumer electronics • Cost matters, but not as much as we thought
  • 88. Version 3 – Manufacturing Wasn’t Our Business Equipment Mfg Scale up Low Cost Education Thermal Mgmt Solutions Universities Customization Higher Quality Service/Maint. Transparent Production Conduct. Downstream Large Area (Touch) fabrication companies Chem/Bio “Industrializable” IP License Sensor CVD Equipment Direct Sales Facilities/Lab License/Royalty Capital equipment Personnel Material Sales Direct Sales/Travel Lab space
  • 89. So Here’s What We Learned… • TEM grids are viable, near term but small market – Will rely on distribution partner • Displays will be next big thing – Focus on flexible/foldable thin displays – May require partnership with OEMs or sub-contractors • Extensive product characterization is next step – Transparency, haze, sheet resistance for displays (3M, Dow, DuPont) – Minimize layers and contamination for TEM (SPI, Halcyon)
  • 90. Version 4 – Key Segment/Work with Other Products Equipment Mfg Scale up Low Cost Education Thermal Mgmt Solutions Universities Customization Higher Quality Service/Maint. Transparent Production Conduct. Downstream Large Area (Touch) fabrication companies Chem/Bio “Industrializable” IP License Sensor CVD Equipment Direct Sales Facilities/Lab License/Royalty Capital equipment Personnel Intermediate product Material Sales Direct Sales/Travel Lab space
  • 91. Version 5 – Explored/Ruled Out New Segment Scale up Equipment Mfg Low Cost Education Thermal Mgmt Solutions Customization Service/Maint. Universities Higher Quality Transparent Collaborative R Conduct. Production &D (Touch) Downstream Large Area fabrication Membrane companies switches “Industrializable” IP License Replace ITO CVD Equipment Direct Sales Facilities/Lab Chem/Bio Sensor License/Royalty Capital equipment Personnel Intermediate product Material Sales Direct Sales/Travel Lab space
  • 92. Pivot, into near term and medium term
  • 93. Version 6 – Near Term Business Research Transfer Process Academic Papers Groups Optimization Atomically Thin and Robust Electron Trade Shows Microscopists TEM Equipment Higher Quality Mfg. “Clean” IP CVD Equipment Facilities/Lab “Free” Revenue Sharing (Selling Byproduct) w/Distributor
  • 94. Version 7 – Mid-Term Business Scale up Equipment Foldable / Education Flexible Mfg Bendable Transparent Customization Service/Maint. Conductor Universities Higher Quality Collaborative R&D Downstream Large Area Fabrication Companies “Industrializable” IP License Low Cost CVD Equipment Facilities/Lab Intermediate License/Royalty Capital Equipment Personnel product Direct Sales/Travel Lab space
  • 95. What’s Next: Strategy and Roadmap 1H 2012 Phase 4” Scale-Up Product/ TEM Grids Revenue Materials Business Milestone 12” x 12” Sheet Production Activity Scale-Up Sheet Size Increase Area
  • 96. What’s Next: Strategy and Roadmap 1H 2012 2012 4” Scale-Up Commercial Roll-to- Phase Roll Design & Prototype Product/ TEM Grids Process Licensing Revenue Materials Business 12” x 12” Sheet Roll-to-Roll Mfg. Milestone Production Industrial Scale Perfect Activity Scale-Up Sheet Size Continuous Process Increase Area Increase Throughput
  • 97. What’s Next: Strategy and Roadmap 1H 2012 2012 2013+ Commercial Roll-to- Application Phase 4” Scale-Up Development Roll Design & Prototype Product/ TEM Grids Process Licensing Intellectual Property Materials Business Thin, Flexible Displays Revenue 12” x 12” Sheet Roll-to-Roll Mfg. Application R&D Milestone Production Industrial Scale Team “World Leader in Perfect CVD Graphene Activity Scale-Up Sheet Size Continuous Process Innovation” Increase Area Increase Throughput New Applications
  • 98. What’s Next: Secure Partnerships + Investment Distribution Partners
  • 99. What’s Next: Secure Partnerships + Investment Distribution Active Customer Partners Conversations
  • 100. What’s Next: Secure Partnerships + Investment Distribution Active Customer Manufacturing Partners Conversations Partners
  • 102. 21 Teams in 2011 200 teams/year 2012 National University Network Stanford University of Michigan Georgia Tech Others to be announced
  • 103. National Science Foundation I-Corps I/UCRC SBIR ERC AIR/PFI GOALI STTR STC Industry NSF Primary Funding Investors Resources Invested “Ditch of Death” Valley of Death Foundations Small Business University Discovery Development Commercialization
  • 104. Crossing “The Ditch of Death” I-Corps SBIR ERC I/UCRC AIR/PFI GOALI STTR STC Industry NSF Primary Funding Resources Invested Investors “Ditch of Death” Valley of Death Foundations Small Business University Discovery Development Commercialization
  • 105. But This Can’t Possibly Work in Large Companies
  • 106. Customer Development in GE Energy Storage 2010-2012
  • 109. Make This a Billion Dollar Business
  • 110. Build A $100M Factory
  • 111. No
  • 112. No, Let’s Get the Customers First
  • 113. Cells and modules … building blocks of the Durathon system TM Cell High Power Durathon High Energy 113 Seconds Minutes Hours
  • 114. Cells and modules … building blocks of the Durathon system TM Cell Battery Module (Application-Specific) Telecom: 84 Cells UPS: 216 Cells High Power Durathon High Energy 114 Seconds Minutes Hours
  • 115. Cells and modules … building blocks of the Durathon system TM Cell Battery Module System (Application-Specific) Telecom: 84 Cells UPS: 216 Cells High Power Durathon High Energy 115 Seconds Minutes Hours
  • 116. 116
  • 117. 117
  • 118. 118
  • 119. 119
  • 120. Segment Analysis “No Plan Survives First Contact With Customers” Segment Attractiveness • Size / Growth • Profitability explore invest – Price Premium – Cost to engage – Cost to serve • Technical Risk – Development Cost ignore harvest Ability to Compete • Technical Fit • Perceived Value • Competitive forces • Adoption Cycle • Channel fit GE – Transportation
  • 121. Assess and Prioritize Opportunities Customer • EV Discovery • Rail • Mining 1 • Signaling / Security • Grid / Utility • Material Handling • Military Requires in-depth understanding of benefits sought by customers GE – Transportation
  • 122. Assess and Prioritize Opportunities • EV Customer • Rail Discovery • Mining • Signaling / Security • Grid / Utility 1 • Material Handling • Military JUDGMENT-BASED • Generate Hypotheses • Interpret Results • Intuitive • “Why?” Requires in-depth understanding of benefits sought by customers GE – Transportation
  • 123. Assess and Prioritize Opportunities • EV Customer Customer • Rail Discovery Validation • Mining • Market 1, 2, 3, . . . . • Signaling / Security • Grid / Utility 1 2 • Material Handling • Military JUDGMENT-BASED DATA-DRIVEN • Generate Hypotheses • Test Hypotheses • Interpret Results • Analyze Data • Intuitive • Deductive • “Why?” • “Why?” and “What?” Requires in-depth understanding of benefits sought by customers GE – Transportation
  • 124. Market Screening Discussions with ~50 different “customers” Clustered into 15 Different Segments • EV – Small • Signaling • Commercial EV • Communications • Passenger EV • Wind • Mining • Solar • Marine • T&D Deferral • Rail • Building Level • APU • OEM - BESS Grid • Fire &Security GE – Transportation
  • 125. Customer development plan 2010 2011 2012 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Test Problem & State Product Customer Discovery Verify Hypotheses Hypotheses GE – Transportation
  • 126. Customer development plan 2010 2011 2012 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Test Problem & State Hypotheses Product Verify Customer Discovery Hypotheses Prep to Sell Customer Validation Sell to EarlyVangelists Develop Positioning GE – Transportation
  • 127. Customer development plan 2010 2011 2012 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Test Problem & State Hypotheses Product Verify Customer Discovery Hypotheses Prep to Sell Customer Validation Sell to EarlyVangelists Develop Positioning Ready Create to Position Company & Product Demand Launch Launch GEES Customer Creation & Durathon GE – Transportation
  • 128. Customer development plan 2010 2011 2012 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Test Problem & State Hypotheses Product Verify Customer Discovery Hypotheses Prep to Sell Customer Validation Sell to EarlyVangelists Develop Positioning Ready Create to Position Company & Product Demand Launch Launch GEES Customer Creation Company Building & Durathon Crossing the Chasm Move from EarlyVangelists to Mainstream Customers GE – Transportation
  • 129. GEMX Business Model Scorecard critical pending actions Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Who are our key partners/ suppliers Which key activities does the biz What value do we deliver to the What type of relationship does each For whom are we creating value model require customer segment require of us Complete regional overview  Populate life cycle data for performance  key distinctive product features  product positioning/elevator pitch for  identify key market segments guarantees &benefits for the target customer each segment (geography/application) and customer segment  Prospect roadmap: how to get face-to- segments (e.g. operator versus owner)  Educate market on metric: $/kWh-day  total cost of ownership for segment face with right person at prospects in  how many customers in each segment delivered over life of asset versus alternatives each segment and estimated potential volume for  why will segment buy Durathon versus  key competitors in each segment and each customer  Establish strong partnerships with alternatives (i.e. value proposition) their market share  how do customers make money … key channel partners  minimum feature set (i.e. our launch  key competitors' characteristics & customer pain/gain points in each configuration) and ultimate feature set dynamics segment  opportunities to claim IP or trademark /  What outbound marketing/ advertising/  how are buying decisions made in is there freedom to practice promotion activities are needed each segment - id 0  what regulatory/ certification/  support tools required by segment process, hurdles, decision makers transportation/ customs requirements (white papers, TCO calc., tradeshow)  what does an Earlyvangelist look like in should be met or could be differentiator  pipeline of leads each segment Key Resources 25  who influences purchases in each Which key resources does the biz segment (trade groups, key model require Channels resellers, trend watchers)  Integrated power system engineering – Through which channel does each compatibility for retrofit and optimized segment want to be reached system solutions  Financing options for Power services  which segments can only or best be operators reached through a channel partner  which channel partners are important to optimize sales in each segment  what are channel partners' requirements and cost to become a proactive sales channel  initial channel partner response to value proposition & customer segments 12 25 4 50 Cost Structure Revenue Streams What are our cost drivers How much is each segment willing to pay and how would they like to pay us this amount  Launch reliability  What are price /performance characteristics of competing technology  What is the 2013 price target for 1 MM cells  What is the 2015 price target for 10 MM cells  what is optimum sales method for each segment (asset sale, lease, pay for performance, etc.) 3 X = number of in depth customer data points / data sources used to validate hypothesis x red = low hypothesis confidence x yellow = medium hypothesis confidence green = high hypothesis confidence x GE – Transportation
  • 130. PIVOT: End Users, More Markets • “Partners” really wanted orders to fill, no risk, not a partnership • Channel partners expected GEMx to deliver customers • Initiate High-Speed End-User Customer Discovery • Value Proposition values notably by channel, user, geography GE – Transportation
  • 131. PIVOT: END USERS Not all customers alike, even in identical verticals • Customer segmentation emerges: how they use, evaluate, buy, manage • Value proposition and pricing vary by customer use, metric • Openness to new technology, speed of piloting become key issues GE – Transportation
  • 132. PIVOT: END USERS Not all customers alike, even in identical verticals • Customer segmentation emerges: how they use, evaluate, buy, manage • Value proposition and pricing vary by customer use, metric • Openness to new technology, speed of piloting become key issues Focused Segment strategy; Value Prop varies by segment • Focus on <8 hours of grid/day, extreme temperature climates • Segment said “recharge rate” important to value proposition • Energy produced per day a key Value Proposition in this market GE – Transportation
  • 133. Energy Storage on The Grid $1.5B in 2010, to $35.3B annually by 2020* T&D Support – Time Shifting – Load Following – Supply Capacity – Area Regulation – T&D Deferral T&D Support Example Golden Valley Electric Association, Alaska Renewables Integration – Firming – Curtailment – Smoothing 27 MW, 15 Minutes $750-900 $ / kW 1011 Modules 226,517 Cells 60 percent reduction in power supply type outages End User Applications *Pike Research report –Time of Use –Power Quality –Demand Charge GE – Transportation
  • 134. Cold Storage “Niche” for Durathon ? ™ One battery vs Three to Four Batteries 3 – 6* batteries per 24/7 warehouse operators 24 hour truck Pb-acid Enersys 8 hr use 8 hr charge 8 hr cool 1.5 batteries per 24 hour truck NaMx Typical battery charging station Acid spill containment not shown. 8 hr use 8 hr charge 8 hr use *Freezer operations require 4~6 Pb acid batteries / truck, but only 1.5 Durathon batteries per truck !! GE – Transportation
  • 135. But What Does This Mean For You?
  • 136. Inventor of the Modern Corporation Scalable Large Transition Startup Company
  • 137. Inventor of the Modern Corporation Scalable Large Transition Startup Company Alfred P. Sloan
  • 138. Alfred P. Sloan Scalable Large Transition Startup Company General Motors, President/Chairman - Cost Accounting - MIT Sloan School - Sloan Foundation - etc.
  • 139. Founder of General Motors Scalable Large Transition Startup Company
  • 140. Founder of General Motors Scalable Large Transition Startup Company Billy Durant
  • 141. Billy Durant Scalable Large Transition Startup Company - Leader in horse-drawn buggy’s -Fired by board, starts Chevrolet - Regains control of GM -Fired by board, GM ~$3.6 billion* * GM Net sales in 1921 $304.5M = $3.6 Billion today
  • 142. Durant Versus Sloan Scalable Large Transition Startup Company
  • 143. Durant Versus Sloan •Dies, rich, honored and famous
  • 144. Durant Versus Sloan •Dies managing a bowling alley • Dies, rich, honored and famous
  • 145. Durant Versus Sloan Accountant •Dies managing a bowling alley • Dies, rich, honored and famous
  • 146. You are here Scalable Large Transition Startup Company
  • 147. This Talk is Based On • Business Model Generation • Four Steps Owners Manual •The Startup to the Epiphany www.steveblank.com
  • 148. Book signing and copies of the Startup Owner’s Manual 4pm in the Students Room
  • 149. I Write a Blog www.steveblank.com
  • 151. # of customers: ~85 people Hydrogen sensors in Chlor-alkali 151
  • 152. Founding Team Dr. Jason Gu Principal inventor CEO and Entrepreneurial Lead Dr. Peter Foller Former Director of R&D Chemical and Optical, PPG Industries Market Exploration and Acquisition Prof. Robert F. Davis Professor of Materials Science, CMU National Academy of Engineering Advisor and Mentor Prof. Lisa M. Porter Professor of Materials Science, CMU Technological Development and Principal Investigator Mr. Jacob Melby Graduate Student, Carnegie Mellon University Principal Engineering Specialist
  • 153. Major Commodity Market – Chlorine Production
  • 154. Major Commodity Market – Chlorine Production Thorn in the lion’s paw (184 incidents in Europe, 4yrs) Plant cost: $1B Co-produced H2 + Cl2 =
  • 155. [Current Standard-Operating Procedure] Once a week monitoring VS [Innovation] Real-time data [H2] Licensed Novel technology Hazardous Industrial Environments
  • 156. Fragmented technologies and market 156 ensors market 2011: $5.6B (US) $15B (World) 2014: $6.1B (US) $20B (World)
  • 157. Sensors market 2011: $5.6B (US) $15B (World) 2014: $6.1B (US) $20B (World) Hydrogen in Chlorine: $94M • Hydrogen in [Fluorine, Bromine, Iodine] • Hydrocarbons in high pressure (methane hydrate exploration) • Hydrogen + hydrocarbons in high temperatures (refineries) • Wireless transmission of temperature at high temperatures (quality assurance) • pH and temperature in acidic solutions (steel making) • Hydrogen + hydrocarbons in anaerobic conditions (transformer gas monitoring) •…..
  • 158. Partnership with dominant technology provider in C/A. Product development 66% completed. Customer pilot plant test approved. Plant visits. Market survey sent out to C/A plant managers
  • 159. Explored Item Contract Design Product H2/HC Monitoring Provide Severe Shops Development In Severe infrastructure Environment Suppliers/ Production Environments Operators Component Manufacturers Applications sourcing Efficiency Research Chlorine Institutes and Regulatory/Insuran Production Journals ce Domain Suppliers IP and Expertise Direct Regulatory and Government Capital Assets Domain Specific Suppliers Distributors Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 160. Value Propositions ‘Need-to-have’s ‘Nice-to-have’s  Detects specific species (typically ratio  Extreme kinetics and sensitivity of species)  Wireless (if low volumes)  Sufficient kinetics and sensitivity  Low-cost  Signal reliability (no false  Extremely Long-lasting positives/negatives)  Detection of other species  Wireless (if high volumes)  Low-power  User interface (if software)  Visualization of data  Can be display on sensor or even warning LEDs  Sensor lifetimes matching replacement cycle of another more crucial part It only has to work, and be easy to use
  • 161. Accepted Explored Item Contract Design Product H2/HC Monitoring Provide Severe Shops + Development In Severe infrastructure Environment Suppliers/Manufa Operators Production Environments Component cturers sourcing Domain Specific Research Efficiency Suppliers Institutes and Regulatory/Insuran (especially if R&D Journals ce is needed) Domain Suppliers, Regulat Minimum Viable Applications ory and Product IP and Expertise Direct Chlorine Government Reliably detect Production Capital Assets species of interest Domain Specific Suppliers … Easy to use Sync with other Distributors cycle Wireless(if volume) Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 162. Channel Interviews • C/A Partner – Regional • Director of R&D • Director of Marketing Emerging Markets Interviews • Director of Product Service • Senior Acct Managers 1.Jonathan Levine, Hydrate Research • R&D Engineers 2.NETL Methane Hydrate RG – Global 3.Berkeley sensors group • CTO • Jeff Farbacher, CEO Accutran • Charles Noll, Marcellus Shale Development Group • Former GE Employee • Tim Fogarty, Director of IW Energy • Ed Faust, Global Marketing, Siemens • Dr. Bob Lad, President of Environetix
  • 163.  Each step process has different risk premium  Detection limit of the sensor required is different for each step of the process.  Discussions are in cell technologies Cell Technologies Liquifaction Current Measurement Gas chromatograph Drying Towers
  • 164.  Each step process has different risk premium associated  Detection limit of the sensor required is different for each step of the process. Discussions are in cell technologies #GOAL Price the same product differently based on what we protect as opposed to an agglomerate value add. Cell Technologies Liquefaction Current Measurement Gas chromatograph Drying Towers
  • 165. Understand Economics of Plant + Sensors Understand Economics of Technology Supplier Technology Supplier
  • 166. Understand Economics of Plant + Sensors Industrial Plants Understand Economics of Plant #1 Technology Supplier Plant #2 Plant #3 Technology Supplier
  • 167. Accepted Explored Item Product Contract Design H2/HC Monitoring Provide Severe 167 Shops + Development In Severe infrastructure Environment Suppliers/Manufa Operators Production Environments Component cturers sourcing Domain Specific Research Efficiency Suppliers Institutes and Regulatory/Insuran (especially if R&D Journals ce is needed) Domain Suppliers, Regulat Minimum Viable Applications ory and Product IP and Expertise Direct Chlorine Government Reliably detect Production Capital Assets species of interest Domain Specific Suppliers … Easy to use Sync with other Distributors maint. cycle Wireless(if volume) Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 168. Diaphragm Membrane 168 $240/MT Cl2  Operational conditions  Capital cost per incident  Downtime per incident  # of cells protected Cost of damages + downtime per incident per year  Time between incidents  Number of cells, US and worldwide Value per unit per year Diaphragm Membrane Membrane Header $2,500 $270 $10,600
  • 169. Soft product launch projected for Q1-Q2 169 2012 General launch projected for Q4 2012 Diaphragm Membrane Membrane Header $2,500 $270 $10,600 Year Type % Revenue [/year] 1 Innovators (US) 2.5 $271,500 Operating costs for 1st year projected to be $350,000 2 Early Adopters 16 $15,040,000 3 Early Majority 50 $47,000,000 4 Late Majority 84 $78,960,000 Full Penetration 100 $94,000,000
  • 170. Low Volume / High Customization Where do they get their sensors?  Specialized systems distributors  Will fund R&D  Existing channel into markets  Specialized sensor providers  Industry technology providers  Will fund R&D  Excellent channel into specific market Current Chlor-alkali Partner
  • 171. Product Contract Design H2/HC Monitoring Provide Severe 171 Shops Development In Severe infrastructure Environment Suppliers/ Production Environments Operators Component Manufacturers Applications Safety sourcing Research Chlorine Institutes and Efficiency Production Journals Environmental Domain Suppliers IP and Expertise Direct Regulatory and Government Capital Assets Domain Specific Suppliers Distributors Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 172. Product Contract Design H2/HC Monitoring Provide Severe 172 Shops Development In Severe infrastructure Environment Suppliers/ Production Environments Operators Component Manufacturers Applications Safety sourcing Research Chlorine Institutes and Efficiency Production Journals Environmental Domain Suppliers IP and Expertise Direct Regulatory and Government Capital Assets Domain Specific Suppliers Distributors Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 173. Product Contract Design H2/HC Monitoring Provide Severe 173 Shops + Development In Severe infrastructure Environment Suppliers/Manufa Operators Production Environments Component cturers sourcing Domain Specific Research Efficiency Suppliers Institutes and Regulatory/Insuran (especially if R&D Journals ce is needed) Domain Suppliers, Regulat Minimum Viable Applications ory and Product IP and Expertise Direct Chlorine Government Reliably detect Production Capital Assets species of interest Domain Specific Oil and Gas Easy to use Suppliers Power Sync with other Distributors Infrastructure cycle Wireless(if volume) … Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 174. Product Contract Design H2/HC Monitoring Provide Severe 174 Shops + Development In Severe infrastructure Environment Suppliers/Manufa Operators Production Environments Component cturers sourcing Domain Specific Research Efficiency Suppliers Institutes and Regulatory/Insuran (especially if R&D Journals ce is needed) Domain Suppliers, Applications Minimum Viable Regulatory and Product Government IP and Expertise Direct Chlorine Reliably detect Production Capital Assets species of interest Domain Specific Oil and Gas Easy to use Suppliers Power Sync with other Distributors Infrastructure maint. cycle Wireless(if volume) … Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 175. Accepted Explored Item Product Contract Design H2/HC Monitoring Provide Severe 175 Shops + Development In Severe infrastructure Environment Suppliers/Manufa Operators Production Environments Component cturers sourcing Domain Specific Research Efficiency Suppliers Institutes and Regulatory/Insuran (especially if R&D Journals ce is needed) Domain Suppliers, Applications Minimum Viable Regulatory and Product Government IP and Expertise Direct Chlorine Reliably detect Production Capital Assets species of interest Domain Specific Suppliers … Easy to use Sync with other Distributors maint. cycle Wireless(if volume) Supplier Monitoring Fixed Economics Sensor Sales Services Sales and Royalties Marketing
  • 177. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?
  • 178. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
  • 179. CHANNELS how does each customer segment want to be reached? through which interaction points?
  • 180. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
  • 181. REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues?
  • 182. KEY RESOURCES which resources underpin your business model? which assets are essential?
  • 183. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 183
  • 184. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?
  • 185. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?
  • 186. key activities value customer proposition relationships key customer partners segments cost revenue structure key streams resources channels 186 images by JAM

Notas del editor

  1. Rock Stars.
  2. The Background: Graphene is an amazing material that will improve and disrupt entire industries, including electronics and clean energy
  3. Problem statement: None of these things will happen unless and until graphene can be produced in large quantities – Commercial Scale
  4. Solution: We can do this. Our technology offers the best path forward to enable commercial scale production of graphene films at low cost.
  5. Market Opportunity: We believe that there is significant demand for graphene, but the market will not develop and companies will not design products that incorporate graphene until a reliable source is identified
  6. We may have been overconfident.
  7. We may have been overconfident.
  8. …using a cleaner template and underlining a few words. We settled on this as Graphene Frontiers Canvas #1 and thought that we would WOW the audience with how much detail we had and how broad our scope and opportunity was.We projected this on the screen and were promptly booed off the stage. Sooo….. v2 was born:
  9. We:--Made a target list--asked for introductions and referrals--worked our networks--made a BUNCH of calls
  10. --Not successful: AdWords--Very successful: Luck!!
  11. The numbers
  12. Lesson #1: Focus.We narrowed our scope to the three applications we believed were most promising and set out to test our assumptions
  13. The Payoff:--What we thought was important wasn’t important to our potential customers and partners--The market *will not grow* until someone can prove that they can supply graphene--The source must be reliable, and the cost must be within reason**WE NEED TO DEMONSTRATE SCALE**
  14. We were a bit too hesitant to fail fast and close doors, but we did recognize early on that we were probably not going to become “the Alcoa of nanocarbon”
  15. We can make money TODAY with TEM Grids and material sales… distributors are clamoring for our stuffWe have work to do to meet display requirementsBig companies are willing to help us get there
  16. We also heard from customers that we would need to integrate into existing production lines… high volume manufacturers may be reluctant to buy vast quantities of material… they probably want to license and make their own.We also learned that ITO and silver nanowires were the competition for touch screen and displays, but we were beginning to quantify the differentiators
  17. We heard that collaborative R&amp;D would be a necessity—we will need to help companies use our material in their product development.Membrane switches—a new opportunity we evaluated, was quickly ruled out.
  18. The big week:Near term opportunity: TEM GridsMedium term opportunity: Thin, flexible displays
  19. Canvas A: TEM GridsWe’re partnering with SPI, a microscopy supply distributor, and have developed a Minimum Viable Product that is undergoing beta testing and evaluation.We will provide them with graphene on copper foil (a byproduct of our work to scale up production), and they will transfer to the grids, QC, package, market, sell, etc. and we have agree in principle on a revenue sharing deal
  20. We learned that we needed to partner with manufacturers to incorporate graphene into product development, and *SCALE UP IS CRITICAL*Cost is not as important as we thought earlier,: We don’t need to beat ITO, we need to do what it can’t do (flexible, impervious to oxygen, etc.)
  21. So here’s the plan.
  22. So here’s the plan.
  23. So here’s the plan.
  24. We’re now ready to raise money to scale up and develop our continuous manufacturing prototype, and we have several heavy hitters who are waiting to see us succeed…
  25. We’re now ready to raise money to scale up and develop our continuous manufacturing prototype, and we have several heavy hitters who are waiting to see us succeed…
  26. We’re now ready to raise money to scale up and develop our continuous manufacturing prototype, and we have several heavy hitters who are waiting to see us succeed…
  27. This is a depiction of the resources available vs the stage from Discovery to Commercialization.The left-hand side is primarily the realm of public support and the right-hand side is primarily the realm of the private sector.The vast majority (centroid, if you will) of NSF funding has been and will continue to be in the Discovery range. It is our core and we will not waiver in support of this. We also, to a much smaller extent, support collaborations with industry and even support innovation research in for-profit sector with our SBIR program. Many people don’t know but, the SBIR program (the hallmark of the Federal government’s support on innovation research) was piloted by NSF and it continues to be a flagship for us. The I-Corps home is post “not-for-profit fundamental research” and pre “for-profit innovation research”… the “Ditch of Death”The existence of the “valley of death” is well known The I-Corps program focuses on the Ditch of Death” Ask any entrepreneur who has tried to spin technology out of an Academic lab about the challenge of getting funds for developing product demos. Show them this slide, they’ll get the I-Corps home/sweet spot immediately!
  28. This is a depiction of the resources available vs the stage from Discovery to Commercialization.The left-hand side is primarily the realm of public support and the right-hand side is primarily the realm of the private sector.The vast majority (centroid, if you will) of NSF funding has been and will continue to be in the Discovery range. It is our core and we will not waiver in support of this. We also, to a much smaller extent, support collaborations with industry and even support innovation research in for-profit sector with our SBIR program. Many people don’t know but, the SBIR program (the hallmark of the Federal government’s support on innovation research) was piloted by NSF and it continues to be a flagship for us. The I-Corps home is post “not-for-profit fundamental research” and pre “for-profit innovation research”… the “Ditch of Death”The existence of the “valley of death” is well known The I-Corps program focuses on the Ditch of Death” Ask any entrepreneur who has tried to spin technology out of an Academic lab about the challenge of getting funds for developing product demos. Show them this slide, they’ll get the I-Corps home/sweet spot immediately!