20181004 SEEM Lean Launch Pad and Pi Centreseem3450/lecture/20181004 SEEM Lean... · 2018-10-03 ·...
Transcript of 20181004 SEEM Lean Launch Pad and Pi Centreseem3450/lecture/20181004 SEEM Lean... · 2018-10-03 ·...
Lean Launch Pad and Pi Centre Part 1
SEEM 3450 Entrepreneurship 4th October 2018
Speaker: Mr Jonathan CHEEHead of Entrepreneurship (Practice) &
Venture Acceleration, ORKTS
Head of Entrepreneurship (Practice) &Venture Acceleration
With over 30 years of experience of which 22 years of experience in VC and PE, in USA & Asia.FormerlyCIO in Eagle Ride Investment, Listed in HK (0901.HK)• Head of PE/VC in Huawei Technology • Partner in CIVC Investment Pte Limited• General Manager in Shenzhen Capital Group & UOB‐Shenzhen Capital JV
• Managing Director in Standard Chartered Bank’s Private Equity
• AVP in Vertex Management Inc., (USA)
Head of Entrepreneurship (Practice) & Venture Acceleration
• Former Investment Committee in Standard Chartered Bank Private Equity &
Shenzhen Capital and Huawei Technology
• Non‐Executive Board member of 上海观安信息技术, Advstar (HK) and 深圳市
前海高新国际医疗管理有限公司
• Fellow of the Institute of Directors; The Hong Kong Institute of Directors
• BSc. in Physics. (National University of Singapore)
• MSc. In Communications Engineering (University of Bradford, UK)
Dare to InnovateDare to Create
Pi Centre @ Lady Ho Tung Hall
promote, encourage, train and enable EntrepreneurshipFacebook: cuhkacehub Like & knows more
•Pi Centre Video: https://youtu.be/IytYFhR5ojs
Coming Activity
Successful Teams
R-Guardian Anti-loss device to secure
and monitor personal properties
Co-operating with different companies to use IoT (internet of thing) to transform traditional products to smart products
Incubatee at Science Park
Received HK$13.88m investment
https://unwire.pro/2018/09/17/r-guardian/news/
DecaSense Provides professional
sports analysis tool like the Messi’s performance data with low-cost wearables
Provides a good low cost solution for the young footballers who prefer the more immersive and useable data for entertainment
TSSSU Team
Received HK$ 9.18m Investment
MedVision Develops innovative techniques
to improve the accuracy of disease diagnoses to the state-of-the-art performance
Aims to alleviate the sufferings of the patients, reduce the workload on doctors, advance the diagnosis accuracy, and improve the healthcare quality
Admitted to Lenovo Accelerator Program
TSSSU Team
Strong interested from VCs and received HK$95.51m investment
Start up Business Model: What we will cover?
Walkthrough of the Business
ModelCanvas Part 1
& 2
Heart of a Business Model: Product‐Market Fit
Definition of a Business Model
How Do You Develop a Business Model?
Business Model DefinitionA business model describes the underlying reasons of how an organization creates, delivers, and captures value for the stakeholders (founders and the founding team, shareholders).A business Model is applicable to all stages in the growth of the Company.
1. Heart of a Business Model
Product‐Market Fit:
Aim of a Startup: Product‐Market Fit
• A product or service that provides one or more value propositions to a customer segment• Should probably be called “Product‐Customer Segment fit” • Heart of a business model– Without product‐market fit you don’t have a business
Customer Segment: The different groups of people or organizations an enterprise aims to serve
Examples of Customer Segments• One large group of customers with broadly similar needs and problemsMass market
• Specific, specialized CS – often found in supplier‐buyer relationshipsNiche market
• Segments with slightly different needs and problems Segmented
• Two unrelated CS with different needs and problemsDiversified
• Two or more essential and interdependent CS
Multi‐sided platforms (or multi‐sided markets)
Bad Way to Find Product‐Market Fit
“Product Development”• Build a product first• Then try to find customers for it• What’s wrong? All $$ spend up frontMost risk at the backMore start‐ups fail from lack
of customers than any other cause
“Better Way to Product‐Market Fit• First find out what customers want• Then build the minimum product that satisfies their needs
– Minimum Viable Product• And find out how to sell it to them• What’s right?
– Product Development (and $$) is delayed– Business ramp‐up (and $$) is delayed
• Major risk eliminated first
How Do you Find out About Customers?
Business Model Development rule #1:Get out of the building! Go to the field!
Main Points
• Product‐Market fit is the heart of a business model• A better way to find it:
– Don’t develop product first: “Product Development”– Develop customers first: “Customer Development”
• “Must Have” vs. “Nice to Have”• Get out of the building! Go to the field
2. How Do You Develop a Business Model for Start ‐ups?
Now we can say, “a business model is”– A value proposition that satisfies a need or solves a problem for a customer segment– A plan to enter or create a market for attracting,persuading, selling to, and retaining the customersegment– A plan for how to build the product or servicedelivers the value proposition(s)
In Lecture 1, we said “the heart of a business model is product-market fit”
Eleven Possible sources of value creation‐proposition
• Satisfy a set of needs that customers previously didn’t perceive (no prior similar offering)1. Newness
• Improving product or service performance2. Performance
• Tailoring products and services to the specific customers’ needs3. Customization
• Helping a customer get certain jobs done4. “Getting the job done”
• Delivering a product with superior design5. Design
• Creating a brand that customers value using and displaying6. Brand/Status
• Offering similar value at a lower price (for price‐sensitive CS)7. Price
• Helping customers reduce costs8. Cost reduction
• Reducing customers’ risks incurred when purchasing products or services 9. Risk reduction
• Making products and services available to customers who previously lacked access to them10. Accessibility
• Making things more convenient or easier to use 11. Convenience/Usability
Would be one or combinations of all the above
How do you Find a Business Model?• The startup makes better and better guesses about the elements of the business model• Start with guesses about customer segment and value proposition• Go on with guesses about the rest of the market –customer relationships, channels, revenue streams, costs, suppliers, etc. etc. etc.• Always be willing to refine your guesses
Invalidate Guesses Until They’re Right!• Scientific method– Make a hypothesis or assumption– Test the hypothesis or assumption– Sharpen the hypothesis or assumption• How can you prove a hypothesis right or wrong?– Ultimate test is repeat sales to customer segment– Not possible at first• Ask the customers and other market players or interested parties to help you– Can never prove a hypothesis right, can only prove it wrong
For a Start up: Step 1— State your Guesses
Guess: Value
Propositions
Guess: Customer Segments
Guess
Step 2: Test the Problem
Step 3: Iterate or Pivot
Audio Middleware companies
Audio & Software engineers
IP License fees to CUHK
Software development toolsSW License, per title, per seat for plug‐in
PC Gamers
PC Game Developers
ProblemSolving
Refine and improve 3D audio algorithms
Intellectual PropertyProprietaryKnowledge, brand, patents, trade secrets , Audio experts, software developers
Better Performance
3D Immersive soundHigher gaming experienceMore realism
Reduced ear fatigue
Pinpoint sounds
Game engine Companies
Audio Middleware companies
Personal Assistance and self serviceSmall support staff, emphasize web support
Note changes from last iteration
Rinse and Repeat
Customer Development is a never‐ending process, even when your startup (if you’re lucky) turns into a business– Can never prove a hypothesis right, can only prove it wrong
Main Points
• Testing turns guesses into facts• Facts drive the business model• You need to test hypotheses with
customers and others Sales• The process never ends
Lean Launch Pad and Pi Centre Part 2Jonathan Chee
SEEM 3450 Entrepreneurship 4th October 2018
3. Walkthrough of the Business ModelCanvas, Part A
– A value proposition that satisfies a need or solves a problem for a customer segment– A plan to enter or create a market for attracting, persuading, selling to, and retaining the customer segment– A plan for how to build the product or service delivers the value proposition(s)
A business model describes the underlying reasons of how an organization creates, delivers, and captures value for the stakeholders (founders and the founding team, shareholders).
What customerproblems are you helping to solve ?What customer needs are you satisfying?
1. What customer problems are you helping to solve ?2. What customer needs are you satisfying?
Value Propositions
1. Who are your most important customers?2. What are their archetypes?3. What job do they want you to get done for them?
CUSTOMER SEGMENTS
Customer Channels
1. Through which channels(sales, distribution, support) do your customers want to be reached?
Customer Relationships
How will you get, keep, and growcustomers?
Revenue Streams
1. How will you make money?2. What is revenue model?3. What are pricing tactics?
What customerproblems are you helping to solve ?What customer needs are you satisfying?
How will youget, keep, andGrow customers?
Through which channels(sales, distribution,support) do yourcustomers want to be reached?
Who are your mostimportant customers?What are theirarchetypes?What job do they wantyou to get done forthem?
How will you make money?What is revenue model?What are pricing tactics?
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• Business Model Canvas shows the most important features of the startup business model• Right‐hand side is all about customers: who they are, what you offer them, how you reach them, how they pay• These are the crucial first questions to answer in a business model• Business Model Canvas is a living document
Main Points
4. Walkthrough of the Business ModelCanvas, Part B
– A value proposition that satisfies a need or solves a problem for a customer segment– A plan to enter or create a market for attracting, persuading, selling to, and retaining the customer segment– A plan for how to build the product or service delivers the value proposition(s)
A business model describes the underlying reasons of how an organization creates, delivers, and captures value for the stakeholders (founders and the founding team, shareholders).
Key Partners
Who are your Key Partners?Who are your key suppliers?What are you getting fromthem and giving to them?
Key Activities
What Key Activities do you require?• Manufacturing?• Software development?• Personal concierge service?Etc.
Key Resources
What Key Resources do you require?Financial? Physical? Intellectual property?Human resources?
Cost Structure
What are most important costs inherent in your business model?What is mix of fixed and variable costs?
Who are your Key Partners?Who are your keysuppliers?What are you getting from them and giving to them?
What Key Activities do you require?Manufacturing? Softwaredevelopment? Personal concierge service? Etc.
What Key Resources do you require?Financial? Physical?Intellectual property?Human resources?
What customerproblems are you helping to solve ?What customer needs are you satisfying?
How will youget, keep, andGrow customers?
Through which channels(sales, distribution,support) do yourcustomers want to be reached?
Who are your mostimportant customers?What are theirarchetypes?What job do they wantyou to get done forthem?
What are most important costsinherent in your business model?What is mix of fixed and variablecosts?
How will you make money?What is revenue model?What are pricing tactics?
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Business Model Canvas
• Left‐hand side of the business model canvas has to do with how you do it?• What do you need to get the product or service built/delivered?• What you have to do yourself?• What do you have others do?• What does it all cost?• Business model canvas is a living document
Main Points
Example – Joy Sprouts
Problem:Lack of quantifiable data to track development of preschoolersSolution:Technology that gives parents a tailored learning profile of their child through a single dashboard in an app:• School: Collect info from children’s wearable devices & from teachers through classrooms’ mobile devices
• Home: Collect info from child’s interaction with games and activities
Example – Joy Sprouts
Business model:• School: allows for real‐time tailored feedback to parents (monthly subscription fee of US$750 per school)
• Home: allow consumers to purchase individual game module (price range of US$3‐$10 per Sprout, or a monthly subscription of US$17).
Example – Joy Sprouts
Online: APP
O2O: children’s wearable devices and classroom mobile devices
Offline: signed up and selling of games etc.
• Parents• Teachers• Children
Recommended Readings
1. Entrepreneurship: Successfully Launching New Ventures 5th Edition, Bruce R. Barringer & R. Duane Ireland
2. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers