Introduction to I-NCUBATEgdc-iitm.org/gdc/common/images/nicUpload/f8dd27bb03e05be5756… ·...
Transcript of Introduction to I-NCUBATEgdc-iitm.org/gdc/common/images/nicUpload/f8dd27bb03e05be5756… ·...
I-NCUBATEA program for enabling ‘Lab to Market’ transformation
Updated: October 2019
Gopalakrishnan - Deshpande Centre for Innovation & Entrepreneurship
Agenda
About GDC
About I-NCUBATE
Structure and Pedagogy of I-NCUBATE
Role of Key Participants in I-NCUBATE
2 I-NCUBATE
GDC - Overview
LAUNCH
• An alumni-funded Centre for Innovation & Entrepreneurship at IIT Madras• Launched in Jan 2017; Commenced operations in Aug 2017• Funded by grants from three illustrious alumni: Dr. Gururaj Deshpande, Mrs.
Jaishree Deshpande and Mr. ‘Kris’ Gopalakrishnan
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CHARTER
To dramatically increase the positive impact of R&D spend of Indian academic universities, research organisations and companies by building capacity in faculty, scientists, researchers and students through a ‘Lab to Market’ mission• Commercialising research through robust start-ups• Building entrepreneurial thinking
I-NCUBATE
Why GDC?
• Most technology developed in the West (where per capita income > $40,000)
• At <$1000 per capita income, more than 1 billion Indians will not benefit from technology solutions of the West
• Inadequate capabilities and lack of R&D orientation in corporate India to develop technological solutions
• Under BAU conditions, India will be swamped with foreign technology; core problems in Healthcare, Energy, Education, Environment et al. for most Indians will not be addressed
• Role of Indian academic institutions changing: Teaching + Research + Entrepreneurship
• In the last few years, we have had some innovations in India in multiple sectors – e.g. Healthcare, Aviation, Payments, Mobile, E-commerce, EdTech - Low ticket size and scaling to hundreds of millions of users
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Can tech start-ups from India’s STEM colleges and scientific research institutions create positive impact at scale?
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Usual Start-up Process at Universities
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• Embryonic business idea• Options and possibilities• Idea development• Will it work? – Prototype
development• Is there a market?
• Start-up in early phase• Establish office, Expand staff• Product development• Customer acquisition• Scale operations
Pre – Incubation Stage Post – Incubation Stage
LAB INCUBATORIncorporation
IDEA
Ideation• Grant funding• Project budget• Own funds
Growth• Soft loans• Angels• Venture capital
Financing
hopefully…
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90% of Indian start-ups fail within 5 years The biggest reason is building something that
nobody wants
Have inadequately trained employees - no strong capability of their own
Lack of innovation - Indian start-ups do not have unique business models; they mostly copy Western business models
Failure in marketing
Lack of funding is not a big constraint for well-structured start-ups
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Customer Development: Vital for Start-ups
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• Embryonic business idea• Options and possibilities• Idea development• Will it work? – Prototype
development• Is there a market?
Pre – Incubation Stage
Post – Incubation Stage
IDEA
• Customer discovery• Customer validation• Business model• Entrepreneur team• MVP
• Start-up in early phase• Establish office, Expand staff• Product development• Customer acquisition• Scale operations
Incorporation
Ideation• Grant funding• Project budget• Own funds
Growth• Soft loans• Angels• Venture capital
Financing
Customer Development• Grants?• Seed capital• Anyone?
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Agenda
About GDC
About I-NCUBATE
Structure and Pedagogy of I-NCUBATE
Role of Key Participants in I-NCUBATE
8 I-NCUBATE
I-NCUBATE: Goals & Benefits• I-NCUBATE’s objective is to help academic research-based ideas achieve more
successful outcomes by building capacity in faculty-students-researchers
• The principal targeted outcomes of the I-NCUBATE program:
o To gain a deep understanding of customer needs based on first hand evidence
o To enable the team to arrive at a GO or No GO decision
o To obtain inputs for formulating a MVP, a Business Model, and a Product-Market Fit
o To enable faculty, researchers, students and entrepreneurs develop entrepreneurial skills and mind-set
• We achieve the above through this highly process-focused program, I-NCUBATE
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GDC: We’ve just started to scale…
Deshpande-Gopalakrishnan Symposium on Innovation and Entrepreneurship
• 1st Deshpande-Gopalakrishnan Symposium at IIT Madras in Jan 2018
• 2nd Deshpande-Gopalakrishnan Symposium at IIT Bombay in Jan 2019, co-hosted with IITB
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I-NCUBATE programs
• Cohort 1 at IIT Madras : 7 start-up teams; 35 entrepreneurs
• Cohort 2 at IIT Madras : 10 start-up teams; 66 entrepreneurs
• Cohort 3 at IIT Bombay : 10 start-up teams; 50 entrepreneurs
• Cohort 4 at IIT Madras : 13 start-up teams; 72 entrepreneurs
• Cohort 5 at IIT Bombay : 10 start-up teams; 53 entrepreneurs
• Cohort 6 at IISc Bengaluru : 8 start-up teams; 41 entrepreneurs
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No GO
Teams that are a ‘No GO’*26 (45%)*
Funding raised **~INR 10.7 crore; 23 teams
Start-ups incubated **25
GO
Teams that are a ‘GO’*32 (55%)
Entrepreneurs trained317
I-NCUBATE: Key Outcomes for Cohorts 1 to 6
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Faculty first-time in start-ups37%
Faculty from8 institutions
* GO / No GO based on GDC view** GDC estimates
Start-up teams58
I-NCUBATE: Team Composition
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Faculty Mentor
Entrepreneur
I-NCUBATE Team
1-2 Faculty Leads(FL)
1 Business Mentor
3-4 Entrepreneurs(EL)
Around 10 teams per cohort
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I-NCUBATE: Programme Structure
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7 weeks
CUSTOMER DISCOVERY
• Teams ‘get out of the building’• Each team conducts 100 customer
interviews; analyses inputs, derives learning and insights
2 days
CLOSING WORKSHOP
• Teams consolidate their learning and outline next steps
• Classroom sessions
3 days
OPENING WORKSHOP
• Teams build commercial orientation
• Classroom sessions
2 days
PRE COURSE
• Teams are oriented to think ‘business’
• Classroom sessions
1 week
• Teams start with 10 to
15 customer interviews
8 Weeks
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Agenda
About GDC
About I-NCUBATE
Structure and Pedagogy of I-NCUBATE
Role of Key Participants in I-NCUBATE
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I-NCUBATE: Based on Lean Start-up Methodology
• Lean start-up management was introduced by Eric Ries in his book ‘’The Lean Start-up’’ in 2011
• Prof. Steve Blank of Stanford University came up with the Customer Development Methodology
• Alex Osterwalder developed the Value Proposition Canvas
• Steve Blank combined the three and came up with the I-Corps program of the National Science Foundation (NSF)
• I-NCUBATE is based on the I-Corps program
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I-Corps: Innovation Corps program of the NSF
• Founded in 2011 as a public/private partnership
• Founding members - NSF; Deshpande Foundation; Kauffmann Foundation
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I-Corps: Uses the Lean Methodology
Key Objectives
• Entrepreneurial training for researchers
• Orient researchers towards understanding and solving real-world problems
• Increase the impacts and the odds of success of commercialization activities
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Why the Lean Startup Changes Everything - HBR
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Lean Start-up : Key Elementso Technology is usually not the cause for failure of start-ups.
o Researchers are passionate about their technologies; however, customers do not buy technology – they are looking to satisfy their needs.
o Founders cannot understand customer needs by sitting inside their labs or offices; they must get out of the building and meet as many prospects as possible.
o A start-up is not a smaller version of a large organisation; instead, a large organisation executes a business plan, while a start-up is searching for a business model.
o A start-up is a temporary organisation in search of a repeatable and scalable business model; it goes from failure to failure until it finds something that works.
o Lean Start-up does not guarantee success; instead, it reduces the odds of failure.
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Lean Start-up Method
Customer Discovery
Search
Pivot
Customer Development Agile Product Development
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Customer Validation
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Who are your most important customers?
What are theirarchetypes?
What job do they want you to get done for them?
How will you get, keep and grow customers?
Who are your key partners?
Who are your key suppliers?
What are you getting from them and giving to them?
What key activitiesdo you require?Manufacturing?Softwaredevelopment?Research?
What are the most important costs inherent in your business model?
What is the mix of fixed and variable costs?
Business Model Canvas as a Tool
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What are the key features of your product/service that match customer problems/needs?
What customer problems are you helping to solve ?What customer needs are you satisfying?
Through which channels (sales, distribution,support) do your customers want to be reached?
How will you make money?
What is your revenue model? What are your pricing
tactics?
What KeyResources do you require?Financial? Physical? Human resources?IP?
The Customer Development Framework
Customer Discovery
Customer Validation
Customer Creation
Company Building
Search Execution
Pivot
P-S Fit? P-M Fit?Develop MVP Business Model Fit?
Scaling
4321
P-S Fit: Problem-Solution Fit P-M Fit: Product-Market Fit
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IDEA
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I-NCUBATE: Programme Structure
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7 weeks 2 days
CLOSING WORKSHOP
3 days
OPENING WORKSHOP
2 days
PRE COURSE
1 week
• Conduct 100 customer interviews
• Update business model canvas week-on-week based on customer interviews
• Attend weekly meetings/webinars to share learnings and insights
• Participate in OH (Office Hours) with instructors
• Use LaunchPad Central to track progress and engage with mentors, instructors and peers
8 Weeks
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I-NCUBATE: 3 Dimensions of Learning
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Entrepreneurial SkillsBusiness Tools & Techniques
Interviewing & Communication Skills
Building Commercial Orientation
• Value Proposition (Features vs. Benefits)
• Business Model Canvas• Industry/Market Analysis• Framing Hypotheses• Empathy Map
• Dealing with ambiguity• Creative thinking/Non-linear
thinking• Overcoming fear of failure• Persistence in the face of
failure• Working cohesively as a team• Reaching out to people
• Clarity of thought and precision• Framing hypotheses & questions
• Interviewing people/Connecting to people• Analysing customers inputs/feedback• Presentation skills
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Agenda
About GDC
About I-NCUBATE
Structure and Pedagogy of I-NCUBATE
Role of Key Participants in I-NCUBATE
23 I-NCUBATE
I-NCUBATE: Team Composition
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Faculty Mentor
Entrepreneur
I-NCUBATE Team
1-2 Faculty Leads(FL)
1 Business Mentor
3-4 Entrepreneurs(EL)
Around 10 teams per cohort
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I-NCUBATE: Role of Faculty Lead (FL)
• For each team, the FL is the main repository of the core science & technology underlying the idea
• Guiding their team on what works (and what will not) from an engineering or technology perspective
• Helping the Entrepreneur Leads (ELs) analyse and interpret the data/feedback received from customer interviews
• Motivating their team to follow the flipped classroom approach
• Boosting the morale of the ELs when contrarian findings emerge from customer interaction
• Encouraging their team to stay on course
• Commenting on technology aspects of other teams, where domain overlaps
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I-NCUBATE: What is expected of ELs
• Entrepreneur Leads (EL) understand how a flipped classroom works and follow it; Self-study is key as there is little teaching in the classroom
• Learning from peers; commenting on peers’ work - this needs conscious effort
• Leveraging the experience of Mentors and Instructors
• Framing hypotheses (about their business) and gathering evidence (for/against)
• ‘Get out of the Building’ and meet at least 100 customers; LISTEN, LISTEN, LISTEN
• Motivating the team to update LaunchPad Central continuously
• Staying on course
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Why Customer Development is Done by Founders – Steve Blank
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Role of Mentors
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I-NCUBATE Team
ROLE OF MENTORS
ROLE OF INSTRUCTORS
• Extension of instructors outside of the classroom
• Provide business mentorship to team
• Inspire and coach team
• Act as a sounding board for team
• Not offer solutions, but ask questions to direct thinking and enable clarity
• Instil discipline in the team to follow the process
• Boost team morale
• Help with contacts/network
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What happens post I-NCUBATE?• At the end of an I-NCUBATE program, each team has a clear ‘GO’ or ‘No GO’ decision
• Team has a good idea of their Minimum Viable Product (MVP) and Product-Market Fit
• At this stage, the team’s capabilities include:
o A good understanding of their business model
o They know how to continue to work on customer development and customer creation
o The team is aware of the key entrepreneurial skills that are required to succeed
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Thank you
Gopalakrishnan - Deshpande Centre for Innovation & Entrepreneurship
R. Raghuttama Rao Shiva SubramaniamCEO, GDC Chief Innovation Officer, [email protected] [email protected]