4. This week you presented your understanding of:
Value Propositions
(syllabus)
Critical for product-market fit
Some validation from
interviews
Customer Segments
(syllabus)
Critical for product-market fit
Some validation with
interviews
Ecosystem diagram
(additional for Dx)
The ecosystem affects almost
all relationships for the business
Initial guesses
Reimbursement
(additional for Dx)
Reimbursement decisions
grossly affect your Customer
Segments and further
development of the BMC
Preliminary hypotheses
4
5. Next week you will present :
Value Propositions
(syllabus)
Critical for product-market fit
More validation from
interviews
Customer Segments
(syllabus)
Critical for product-market fit
More validation from
interviews
Channels
How your product reaches your
customer
Some validation from
interviews
Ecosystem diagram
(additional for Dx)
The ecosystem affects almost
all relationships for the business
Flow directions and units
($, data, restrictions, etc.)
Reimbursement
(additional for Dx)
Reimbursement decisions
grossly affect your Customer
Segments and further
development of the BMC
Preliminary hypotheses,
any new data you have
collected.
5
7. Where do you buy?
Purchase
Best source
Also ok
Not so good
Never
Clothing
Boutique on
Union St.
Gilt.com
Chain store in
the mall
Gas station,
restaurant
Gasoline
Gas station
Freeway rest
stop area
Costco
Internet
Fast food
Specialized
restaurant
Franchised
food chain
Safeway
Macy’s
Groceries
Safeway
Local food
exchange
Internet
Your neighbor
Air ticket
Kayak.com
Airline website
Costco Travel
Street vendor
Higher
education
Research
university
Private medical Community
foundation
college
Vocational
institute
You make choices every day about where and from whom you will buy.
So will your customers
7
8. From whom do your Customers want to
get the product?
Yourself
Through someone else (Abbott, Roche, etc.)
At a lab (Quest, your CLIA lab, specialty
reference laboratory)
At a drugstore
Bundled with other goods or services (panel
testing)
On-line
On their cell phone
8
9. Channels in Dx
• “Direct” sales to a laboratory
•
•
•
•
Hospital labs
Quest / Labcorp
CLIA labs
$350,000+ per supported salesperson (T&E, field tech
support, etc.) and can be as much as $500,000
• “Direct” sales as a laboratory
– Building a CLIA lab
– Still need salespeople!
• Distributors (esp. outside the US) will take 35%+ margin
Reimbursement
• Retail requires many intermediaries
• Direct to consumer (?)
9
11. Platform
Executors
Technology
Innovators
Entrepreneurial
Innovators
This industry
does not have
many flexible
channels
•
•
•
•
Established platforms
Routine analyses
Sell to laboratories
Large sales force
•
•
•
•
Niche markets
Complex analyses
Focused sales
Technology
superiority
• Novel platforms
• Novel technology
• Technological
superiority
• Niche markets
• Channel innovation?
• (so what is the bad
news?)
11
14. Physical and Virtual Channels:
IMPORTANT OPPORTUNTIES
Channel:
Product:
Physical
Product:
Virtual
Physical
Concrete from Al’s Cement
Food from Safeway
Insurance policy from Hal
Lean Launchpad course
Channel:
Virtual
Amazon.com
Netflix DVDs
Angry Birds phone app
Ebooks
14
15. Physical and Virtual Channels:
IMPORTANT OPPORTUNTIES (someday)
Channel:
Product:
Physical
Product:
Virtual
Physical
Channel:
Virtual
Concrete from Al’s Cement
Food from Safeway
Amazon.com
Netflix DVDs
Food from Safeway.com
Insurance policy from Hal
Lean Launchpad course
Disneyland eTicket from Safeway
Angry Birds phone app
Ebooks
On-line movie viewing from
Safeway.com
Safeway is trying to reach you through MULTIPLE channels.
Why?
15
16. Physical and Virtual Channels:
IMPORTANT OPPORTUNTIES (someday)
Channel:
Product:
Physical
Product:
Virtual
Physical
Channel:
Virtual
IVD assay kit
CLIA lab test
Laboratory Developed Test (LDT)
• Usage monitoring and
consumables replacement
• On-line purchase of DTC
diagnostics
• Health status testing
Kiosk for testing using proprietary
algorithms
Mobile app for with health
status algorithm
Don’t be afraid to consider novel channel approaches.
Be aware of the realities of the industry.
16
18. Next week you will present :
Value Propositions
(syllabus)
Critical for product-market fit
More validation from
interviews
Customer Segments
(syllabus)
Critical for product-market fit
More validation from
interviews
Channels
How your product reaches your
customer
Some validation from
interviews
Ecosystem diagram
(additional for Dx)
The ecosystem affects almost
all relationships for the business
Flow directions and units
($, data, restrictions, etc.)
Reimbursement
(additional for Dx)
Reimbursement decisions
grossly affect your Customer
Segments and further
development of the BMC
Preliminary hypotheses,
any new data you have
collected.
18