Steve Blank "Entrepreneurial education"

Demolishing the Status Quo in Entrepreneurial Education

I Write a Blog

www.steveblank.com

This Talk is Based OnBusiness Model GenerationFour Steps to the Epiphany

The Lean Startup

This Talk

• What’s a Startup?

• Search versus Execution

• Entrepreneurship As a Mgmt Science

• B-Schools = Large company mgmt

• Incubators = the transition

• E-School = the conclusion

First -

What’s A Startup?

Six Types of Startups

Startup

Lifestyle Startups Work to Live their Passion

• Serve known customer with

known product

• Pay for their passion

Small Business

Startup

Small Business StartupsWork to Feed the Family

• Serve known customer with

known product

• Feed the family

Small Business

Startup

Exit Criteria

- Business Model found

- Profitable business

- Existing team

< €100K in revenue

Small Business StartupsWork to Feed the Family

• known customer

known product

• Feed the family

Small Business

Startup

- Business Model found

- Profitable business

- Existing team

< $10M in revenue

Small Business Startups

• 5.7 million small businesses in the U.S. <500 employees

• 99.7% of all companies

• ~ 50% of total U.S. workers

http://www.sba.gov/advo/stats/sbfaq.pdf

ScalableStartup

Large Company

Scalable Startup

Goal is to solve for:

unknown customer and

unknown features

Search

ScalableStartup

Large Company

Exit Criteria

- Business model found

- Total Available Market > €300m

- Can grow to €50/year

Scalable StartupBorn to Be Big

Search Execute

ScalableStartup

Large Company

- Total Available Market > $500m

- Company can grow to $100m/year

- Business model found

- Focused on execution and process

- Typically requires “risk capital”

Scalable Startup

• In contrast a scalable startup is designed to grow big

• Typically needs risk capital

• What Silicon Valley means when they say “Startup”

Search Execute

ScalableStartup

Large Company

Transition

Founders depart

- Operating executives

- Professional Mgmt

- Process

- Beginning of scale

The Transition – Founders Leave

BuildSearch Execute

ScalableStartup

€3 to 30M Acquisition

Buyable StartupBorn to Be Big

Goal is to solve for:

Internet, Mobile, Gaming Apps

Search Sell

ScalableStartup

€3 to e0M Acquisition

Buyable Startup

Goal is to solve for:

Internet and Mobile Apps

Search Sell

Sell to larger company

Scalable

Startup

Large

Company

-Business Model found

- i.e. Product/Market fit

- Repeatable sales model

- Managers hired

What’s A Startup?

A Startup is a temporary organization used to search

for a repeatable and scalable business model

Search Execute

TransitionLarge

CompanyScalableStartup

Sustaining Innovation

• Existing Market / Known customer

•Known product feature needs

Large Company Sustaining InnovationInnovate or Evaporate

Large Company Disruptive Innovation

New Division

TransitionLarge

Company

Disruptive Innovation

•New Market

•New tech, customers, channels

Large Company Disruptive Innovation

New Division

TransitionLarge

Company

Disruptive Innovation•Build

•Acquire

- IP

- Talent

- Product

- Customers

- Business

Large Non-Profit

Social Startup

Social Entrepreneurship Startups

• Solve pressing social problems

• Social Enterprise: Profitable

• Social Innovation: New Strategies

Each of these startups

require different skills

They Can Not Be Taught the Same Way

Search Versus Execution

Why Accountants Don’t Run Startups

ScalableStartup

Large Company

Transition

Business Model found

- customer needs/product features found

i.e. Product/Market fit

-Found by founders, not employees

- Repeatable sales model

- Managers hired

The Search for the Business Model

Startups Search and Pivot

ScalableStartup

Large Company

Transition

-Business Model found

- Product/Market fit

- Repeatable sales model

- Managers hired

- Cash-flow breakeven

- Profitable

- Rapid scale

- New Senior Mgmt

~ 150 people

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

Startups Search, Companies Execute

ScalableStartup

LargeCompany

Transition

Traditional Accounting

-Balance Sheet

- Cash Flow Statement

- Income Statement

The Execution of the Business Model

Metrics Versus Accounting

ScalableStartup

LargeCompany

Transition

Startup Metrics

- Customer Acquisition Cost

- Viral coefficient

- Customer Lifetime Value

- Average Selling Price/Order Size

- Monthly burn rate

- etc.

Traditional Accounting

- Balance Sheet

- Cash Flow Statement

- Income Statement

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

Metrics Versus Accounting

ScalableStartup

LargeCompany

Transition

Sales

-Sales Organization

- Scalable

- Price List/Data Sheets

- Revenue Plan

The Execution of the Business Model

Customer Validation Versus Sales

ScalableStartup

LargeCompany

Transition

Customer Validation

- Early Adopters

- Pricing/Feature unstable

- Not yet repeatable

-“One-off’s”

- Done by founders

Sales

- Sales Organization

- Scalable

- Price List/Data Sheets

- Revenue Plan

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

Customer Validation Versus Sales

ScalableStartup

Large Company

Transition

Product Management

- Delivers MRD’s

- Feature Spec’s

- Competitive Analysis

- Prod Mgmt driven

The Execution of the Business Model

Customer Development Versus

Product Management

ScalableStartup

Large Company

Transition

Customer Development

- Hypothesis Testing

- Minimum Feature Set

- Pivots

- Founder-driven

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

Customer Development Versus

Product Management

Product Management

- Delivers MRD’s

- Feature Spec’s

- Competitive Analysis

ScalableStartup

Large Company

Transition

The Execution of the Business Model

Engineering Versus

Agile Development

Engineering

- Requirements Docs.

- Waterfall Development

- QA

- Tech Pubs

ScalableStartup

Large Company

Transition

Agile Development

- Continuous Deployment

- Continuous Learning

- Self Organizing Teams

- Minimum Feature Set

- Pivots

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

Engineering Versus

Agile Development

Engineering

- Requirements Docs.

- Waterfall Development

- QA

- Tech Pubs

ScalableStartup

Large Company

Transition

Business Plan

-Plan describes “knowns”

- Known features for line extensions

- Known customers/markets

- Known business model

The Execution of the Business Model

Startups Model, Companies Plan

ScalableStartup

Large Company

Transition

Business Model

- Unknown customer needs

- Unknown feature set

- Unknown business model

- Model found by iteration

The Search for the Business Model

Startups Model, Companies Plan

The Execution of the Business Model

-Plan describes “knowns”

- Known features for line extensions

- Known customers/markets

- Known business model

ScalableStartup

Large Company

Transition

Startups Are Not Small Versions of

Large Companies

BuildSearch Execute

Yet our curriculums assume they are –

we teach that the knowledge is interchangeable

Entrepreneurship as a

Management Science

E-School instead of B-School

Business as a Management Science

• 1601 East India Company

• 300 years of companies

without MBA credentials

•1908 Harvard first MBA

ScalableStartup

Large Company

Transition

-Execution

- Strategy

- Accounting

- Products

- Engineering

- Management

-Administration

Business School

Business School Topics

Large Company

Business School

Business School Courses

Courses

-Managerial Finance/Accounting

- Managing Groups and Teams

- Financial Accounting

- Operations

- Modeling for Optimization

- Global Value Chain Strategies

ScalableStartup

Transition

B-School Results?

• U.S. corporations went from local to national

then international

•Cadre of experienced managers to match

• Experts on finance and growth (Dupont/GM)

B-Schools made the 20th Century

the American business century

Business School Focus on

Large Company Strategies

Execution versus Search

Business School Limitations

•Most Professors consult for large corporations

• Most believe startups are just smaller versions of

large companies

• Most B-school entrepreneurship programs are

side-shows

Irony:

21st Century Job Growth will Come

from New Ventures

Incubators a Reaction to the lack of Practical

University Entrepreneurship

• 1959 Josephy Mancuso - Batavia Industrial Ctr.

• 1996 IdeaLab

•2005 Y-Combinator

•2011 100+ Incubators world-wide

Startup Incubators

•Hands-on (experience vs. theory)

• Goal: create a company and jobs

• Full-time residential, stipend-based program

• Curriculum: product development + best practices

What’s Missing?

A Repeatable Methodology

Not Just War Stories

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

E-School

•Complete curriculum with Hands-on emphasis

• Goal: methodology for startup creation

• Can be taught anywhere

- University

- Incubator

- Remotely

• Curriculum: about the search for a business model

The Business Model:

Any company can be described in 9 building blocks

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?

57

KEY ACTIVITIES

which activities do you need to perform well in

your business model? what is crucial?

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?

60images by JAM

customer

segments

key

partners

cost

structure

revenue

streams

channels

customer

relationships

key

activities

key

resources

value

proposition

sketch out your business model

sketch out your business models

But,

Realize They’re Hypotheses

9 Guesses

Guess Guess

Guess

Guess

Guess

Guess

Guess

GuessGuess

Customer Development

Get Out of the Building

The founders

^

Customer DevelopmentThe Search For the Business Model

CompanyBuilding

CustomerDiscovery

CustomerValidation

Customer Creation

Pivot

• Stop selling, start listening

• Test your hypotheses

• Continuous Discovery

• Done by founders

Customer Discovery

CustomerDiscovery

CustomerValidation

CompanyBuilding

CustomerCreation

Test Hypotheses:

•Product

• Market Type

• Competition

Turning Hypotheses to Facts

Test

Hypotheses:

•Problem

• Customer

• User

• Payer

Test Hypotheses:

•Channel

Test

Hypothese

s:

•Problem

•

Customer

• User

• Payer

Test

Hypotheses

:

•Demand

Creation

Test

Hypotheses:

•Channel

Test

Hypotheses:

•Product

• Market

Type

•

Competitive

Test Hypotheses:

•Pricing Model /

Pricing

Test Hypotheses:

•Size of

Opportunity/Market

• Validate Business Model

Test

Hypothese

s:

•Channel

•

(Customer

)

•

(Problem)

Test

Hypothese

s:

•Problem

•

Customer

• User

• Payer

Test

Hypotheses

:

•Demand

Creation

Test

Hypotheses:

•Channel

Test

Hypotheses:

•Product

• Market

Type

•

Competitive

Test Hypotheses:

•Pricing Model /

Pricing

Test Hypotheses:

•Size of

Opportunity/Market

• Validate Business Model

Test

Hypothese

s:

•Channel

•

(Customer

)

•

(Problem)

Customer

Developme

nt Team

Agile

Developme

nt

The Minimum Viable Product (MVP)

• Smallest feature set that gets you the most …

- orders, learning, feedback, failure…

The Pivot

•The heart of Customer Development

•Iteration without crisis

•Fast, agile and opportunistic

Pivot Cycle Time Matters

•Speed of cycle minimizes cash needs

•Minimum feature set speeds up cycle time

• Near instantaneous customer feedback

drives feature set

The Pivot

A Pivot is the change of one or more

Business Model Canvas Components

The Pivot

A Pivot is the change of one or more

Business Model Canvas Components OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Capital Equipment Sales

and disposable item

Per use fees

Product

Development

IP

Clinical trials

FDA

Publishing

IP

Leading doctors

Technical

Expertise

Leading doctors

Key Opinion

Leaders

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

How Does This Really Work?

Stanford Lean LaunchPad Class

How Does This Really Work?

Stanford Lean LaunchPad Class

8 Weeks From an Idea to a Business

Pivot Example

Robotic Weeding

Talked 75 Customers in 8 Weeks

Our initial plan

Confidential

20 interviews, 6 site visits…

We got OUR Boots dirtyWeeding

Visited two farms in Salinas Valley to better understand problem

Interviewed:• Bolthouse Farms, Large Agri-Industry in Bakersfield

• White Farms, Large Peanut farmer in Georgia• REFCO Farms, large grower in Salinas Valley• Rincon Farms, large grower in Salinas Valley• Small Organic Corn/Soy grower in Nebraska

• Heirloom Organics, small owner/operator, Santa Cruz Mts• Two small organic farmers at farmers market

• Ag Services of Salinas, Fertilizer applicator

MowingInterviewed:

• Golf: Stanford Golf course • Parks: Stanford Grounds Supervisor, head of maintenance and

lead operator (has crew of 6)• Toro dealer (large mower manufacturer)

• User of back-yard mowing system• Maintenance Services for City of Los Altos

• Colony Landscaping (Mowing service for stadiums)

Business Plan Autonomous Vehicles for Mowing & Weeding

We reduce

operating cost

- Labor reduction

- Better

utilization of

assets (eg mow or

weed at nights)

- Improved

performance (less

rework, food

safety)

Mowing

- Owners of

public or

commercially

used green

spaces (e.g. golf

courses)

- Landscaping

service provider

Weeding

- Farmers with

manual weeding

operations

Dealers sell,

installs and

supports customer

Co. trains dealers,

supports dealers

- Mowing

Dealers

- Ag Dealers

- Innovation

- Customer

Education

- Dealer training

Dealer discount

COGS seek a 50-60% Gross Margin

Heavy R&D investment

- Dealers

(Mowing and

Ag)

- Vehicle OEMs

(John Deere,

Toro, Jacobsen,

etc)

- Research labs

Asset sale

Our revenue stream derives from selling the

equipment

Engineers on

Autonomous

vehicles, GPS,

path-planning

Found weeding in organic crops is HUGE

problem; 50 - 75% of costs

Crews of 100s-1000

Back-breaking task

(Ilegal) labor harder to get

1-5 weedings per year/field

$250-3,500 per acre and increasing

Food contamination risk

Decision to make – mowing vs weeding

Application If ROI is < 1 yr they will

buy

Labor costs significant?

Autonomouswould solve

problem?

TAM

Mowing of large fields

Yes.Professionally

run organizations

Yes Yes Adjusted up toxxx

Weeding in Agriculture

Agri Industry: YES!

Large Growers: Yes

Small Growers: No

YES! for organic crops

They are spending $500/ac!

Not necessarily

Key need is weed vs. crop differentiation

TAM increasedto $2.6 B (Total

organic)

Target Market (organic

specialty) 162 M/yr

18%/yr growth

Autonomous vehiclesWEEDING

We reduce

operating cost

- Labor reduction

(100 to 1)

- Reduced risk of

contamination

- Mitigate labor

availability

concerns

- Low density

vegetable

growers

- High density

vegetable

growers

- Thinning

operations

- Conventional

vegetables

Dealers sell,

installs and

supports customer

Co. trains dealers,

supports dealers

- Ag Dealers

- Ag Service

providers

- Innovation

- Customer

Education

- Dealer training

Dealer discount

COGS seek a 50-60% Gross Margin

Heavy R&D investment

- Ag Dealers

- Ag Service

providers

- Research labs

Asset sale

Our revenue stream derives from selling the

equipment

Engineers on

Machine Vision

Two problems:

- Identification

- Elimination

1 Week – 1 CarrotBot

Confidential

CARROTBOT

Machine Vision data collection platform

Monochrome & Color Cameras

Laser-line sweep (depth measurement)

Encoders (position/velocity)

Onboard data acquisition & power

CarrotBot 1.0

The Business Plan Canvas Updated

•Research Labs

•Equipment

Manufacturers

•Distribution

Network

•Service

Providers

•Technology

Design

•Marketing

•Demo and

customer

feedback•Cost

Reduction

•Remove labor

force pains

•Eliminate bio-

waste hazards•IP – Patents

•Video

Classifier Files

•Robust

Technology

•Farming

conventions.

•Demo, demo,

and demo!!

•Proximity is

paramount

•Organic

Farmers

•Weeding

Service

Providers

•Conventional

Farmers•Dealers

•Direct Service

•Indirect Service

• … then Dealers

•Asset Sale

•Direct Service with

equipment rental

•… then Asset Sale

Value-Driven

Visit Highlights

Above: Organic Carrots, 7wks.

Top right: Conventional carrots

Bottom Right: Very weedy. Will require

multiple passes of hand weeding

Visit Highlights

Carrot vs. Weeds

Due to small root systems, carrots have no chance against weeds

Visit Highlights

Organic Broccoli, closely

cultivated. Weeds close

to plants are hand-

picked

Visit Highlights

State of the Art in Weeding Technology

for Organic Crops

Customer Hypothesis

Us Dealer

Large Growers

Industrial Growers

Us Dealer

Industrial Growers

Large Growers

Service Providers

Equipment Rental

Hypothesis Confirmed

• Growers interested in own equipment

• Industrial (10,000s of acres)

• Large (1,000s of acres)

• Willing to pay $100k for one

unit

• Smaller growers (100s of acres)

usually subcontract the labor services

or rent equipment

• All purchases through local dealers

•Customer service is essential

Pre-Test

Post-Test

Customer Map #1 – Industrial Growers

End User

Influencer

Recommender

Decision Maker

Approver

Example: Bolthouse Farms – Large Industrial Carrot

Producer – 8K acres/yr• Equipment

Operator

• Director, Ag

Technology• Justin Grove,

interviewed

• VP, Growing

Operations

• CFO, CEO (Jeff

Dunn)

• Local Farm Mgr• Cliff Kirkpatrick,

visited

Equipment

Operator

Cliff, Farm Mgr

Customer Map #2 – Service Providers

End User

Influencer

Recommender

Decision Maker & Approver

Example: Ag Services – Service Provider, Salinas

Valley• Equipment

Operator

• Service Mgr

• ?? (service mgr’s

boss)

Me (left), Marty (middle, Service

Mgr), Doug (right, Grower)

• Grower

The Business Plan Canvas Updated

•Research Labs

•Equipment

Manufacturers

•Distribution

Network

•Service

Providers

•Technology

Design

•Marketing

•Demo and

customer

feedback•Cost

Reduction

•Remove labor

force pains

•Eliminate bio-

waste hazards•IP – Patents

•Video

Classifier Files

•Robust

Technology

•Farming

conventions.

•Demo, demo,

and demo!!

•Proximity is

paramount

•Mid/Large

Organic Farmers

•Agricultural

corporations

•Weeding Service

Providers

•Mid/Large

Conventional

Farmers•Direct Service

•Indirect Service

• … then Dealers

•Direct Service with

equipment rental

•($1,500/d; 120d/yr )

•Low density: $1,500/d

•High density: $6,000/d

Value-Driven

World Ag Expo interviews:

the need is real and wide spread

• 10+ interviews at show

– Everyone confirmed the need

– Robocrop, UK based, crude competitor sells for $171 K

• Revenue Stream

– Mid to small growers prefer a service

– Large growers prefer to buy, but OK with service until technology is proven

– Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)

Confidential

The Business Plan Canvas Updated

•Research Labs

•Equipment

Manufacturer

•Distribution

Network

•Service

Providers

•2 or 3 Key

Farms

•Technology

Design

•Marketing

•Demo and

customer

feedback•Cost

Reduction

•Remove labor

force pains

•Eliminate bio-

waste hazards•IP – Patents

•Video

Classifier Files

•Robust

Technology

•Farming

conventions.

•Demo, demo,

and demo!!

•Proximity is

paramount

•Mid/Large

Organic Farmers

•Agricultural

corporations

•Weeding Service

Providers

•Mid/Large

Conventional

Farmers•Direct Service

•Indirect Service

• … then Dealers

•Direct Service with

equipment rental

•Low density: $1,500/d

•High density: $6,000/d

Value-Driven

• R&D

• Bill of Materials

• Training & Service

• Sales

Autonomous weeding - Final

We reduce

operating cost

- Labor reduction

(100 to 1)

- Reduced risk of

contamination

- Mitigate labor

availability

concerns

- Low density

vegetable

growers

- High density

vegetable

growers

- Thinning

operations

- Conventional

vegetables

Direct

- Provide high

quality service at

competitive price

Direct

- Alliance with

service providers

- Eventually sell

through dealers

- Innovation

- Customer

Education

- Dealer training

Costs for service provision

COGS seek a 50-60% Gross Margin

Heavy R&D investment

- Ag Service

providers

- Research

Institutes (eg UC

Davis, Laser

Zentrum

Hannover)

- 3-4 key farms

Service provision

- Charge by the acre with modifier according to

weed density

- Eventually move to asset sale

Engineers on

Machine Vision

Two problems:

- Identification

- Elimination

MammOpticsFinal project presentation for E 245 Winter 2011

MammOptics

Initial Idea

Breast cancer

Leading cause of cancer in women

190,000 diagnosis every year US

41,000 deaths every year US

Increasing diagnosis rates

Mammography

15%-25% false negatives rate

25% false positives rate

Requires X-ray radiation

Low resolution

Novel technology based on

RF-modulated optical

spectroscopy

MammOptics

- Earlier

detection

- Non-

radiative

- Non-

MammOptics

Technology Comparison

RiskInvasivenes

sResolution

False

Pos.

False

Neg.

Device

Cost

Time

Required

MammOptics

Mammography High High .6 cm 25% 30% 20-50k 20 min.

MRI Medium Medium .1 cm 70% 5% 1000k 45 min.

Ultra-Sound Very Low Very Low >.6 cm >30% >40% 5-15k 20 min.

I.I.T.Y.I.W.H.T.K.Y

MammOptics

Business Model Canvas 1 of 4

Radiation-free

Earlier detection

Non-invasive

Pioneering

radiologists in

hospitals

Direct sales to

hospitals

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating CostsCapital equipment sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals

Leading doctors

3rd party

manufacturers

Distributors

MammOptics

Business Model Canvas 1 of 4

Radiation-free

Earlier detection

Non-invasive

Pioneering

radiologists in

hospitals

Direct sales to

hospitals

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating CostsCapital equipment sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals

Leading doctors

3rd party

manufacturers

Distributors

MammOptics

Business Model Canvas 1 of 4

Finding the right customerFrom radiologists to gynecologists

MammOptics

Excursions into hospitals

Leading

doctors

Patients

Hospital

Managers

Technicians

Debra Ikeda

Jason Davies

Jafi Alissa Lipson

Sunita Pal

6 women >40

8 women <40

Alicia X-ray

mammography

Paul Billings

Holly V. Gautier

MammOptics

Hospital purchasing decision tree

MammOptics

Hospital purchasing decision tree

MammOptics

Private practice purchasing decision tree

MammOptics

Private practice purchasing decision tree

Pioneering

Doctors

Hospitals

OB/GYNs

PCPs

Direct Sales to

doctors

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals (Capital

Spending

Committee)

Leading doctors

3rd party

manufacturers

Distributors

Research

Hospitals

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 2 of 4

Pioneering

Doctors

Hospitals

OB/GYNs

PCPs

Direct Sales to

doctors

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals (Capital

Spending

Committee)

Leading doctors

3rd party

manufacturers

Distributors

Research

Hospitals

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 2 of 4

Getting to our customerThe world of direct sales and medical marketing

MammOptics

Interviews

Breast Cancer

Advocacy Groups

OB/GYNs

FDA/Clinical

Trials

Medical Sales

Be Bright Pink

Jennifer Glover

Dr. Cindy Woo

Dr. Jags Powers

Dr. Aaron

Shuvkan

Katrina Bell

Tanay Dudhela

Jed Hwang

Phyllis Whitely

Carl Simpson

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

Breast Cancer Advocacy Groups

American College of Obstetricians

and Gynecologists (ACOG)

MammOptics

Marketing

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

American College of Obstetricians

and Gynecologists (ACOG)

American College of Obstetricians

and Gynecologists (ACOG)

Access to ACOG by

former member

Strong influence on doctors via ACOG Standard of Care Strongly

influenced by KOLs

MammOptics

Marketing

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

American College of Obstetricians

and Gynecologists (ACOG)

American College of Obstetricians

and Gynecologists (ACOG)

Researchers conducting important

clinical trialsResearchers

with numerous

publications

Outsourced survey

research

Researchers with strong

peer recommendati

ons

MammOptics

Marketing

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

American College of Obstetricians

and Gynecologists (ACOG)

American College of Obstetricians

and Gynecologists (ACOG)

Focus on prominent journals

Need two big publications

Choose KOL as Principal

Investigators (PI)

MammOptics

Marketing

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

American College of Obstetricians

and Gynecologists (ACOG)

American College of Obstetricians

and Gynecologists (ACOG)

Effective method for educating doctors

Doctors required to

attend workshops

Workshop must be approved by

ACOG

Taught by objective medical experts

MammOptics

Marketing

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

American College of Obstetricians

and Gynecologists (ACOG)

American College of Obstetricians

and Gynecologists (ACOG)

ACOG Annual Clinical Meeting

Miami Breast Cancer

Conference

Opportunity for feedback from doctors

MammOptics

Marketing

Market Adoption

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical Education

Conferences

Breast Cancer Advocacy Groups

American College of Obstetricians

and Gynecologists (ACOG)

Trusted information source for patients

Critical opinion leader for

technology adoption

Access to media outlets

MammOptics

Marketing

Individual

Doctors

Purchasing

Administrators

High value

medical products(e.g. cardiovascular

stents)

Commodity

medical products(e.g. latex gloves)

• Doctor education

• Direct feedback from

doctors

• Very expensive

• No doctor

education

• No customer

feedback

• Inexpensive

Direct Sales

Distributors

MammOptics

Channel Strategies and Costs

Individual Doctors

Purchasing Administrators

Channel Strategies and CostsMammOptics

5 dedicated sales people

$150,000 each/year

Hire nurses or technicians

with established

relationships

Early adopter feedback

Continue with core

group of sales

people

Use women’s

healthcare

equipment

distributor

Already established

network of

customers

Sales strategy 1 Sales strategy 2

MammOptics

Pricing Strategy

Equipment Lease model Per-use

model

Consumable

Cost of the

device

Service per

year

Per-use fee

Consumable

$50,000

$3,000

0

0

$5,000

$10,000

0

0

$5,000

0

$50

0

$25,000

0

0

$20

MammOptics

Pricing Strategy

Equipment Lease model Per-use

model

Consumable

Cost of the

device

Service per

year

Per-use fee

Consumable

$50,000

$3,000

0

0

$5,000

$10,000

0

0

$5,000

0

$50

0

$25,000

0

0

$20

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

RadiologistMammography

MammOptics

Customer Workflow

Current market Insurance

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

RadiologistMammography

MammOptics

Customer Workflow

Current market

But what would

happen if we

replace

mammography?

Insurance

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

Radiologis

tMammography

MammOptics

Customer Workflow

Breast

RadiologistsTechnicians Hospitals

Loss of jobs

Loss of jobs Eliminates loss leader

Puts emphasis on

biopsies

Insurance

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

RadiologistMammography

MammOptics

Customer Workflow

Insurance

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

Radiologis

tMammography

MammOptics

Customer Workflow

Insurance

Same cost as mammography

($140)

Reduced number of biopsies

($1000)

ACOG/ACS

Improved healthcare

(mammography weak technique)

Insurance

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

Insurance

RadiologistMammography

MammOptics

Customer Workflow

Insurance

Doctor

specialty

committee

Hospital

Administration

Technician

RadiologistMammography

MammOptics

Customer Workflow

ACOG

ACS

MammOptics

Patient PCP

OB/GY

N

Insurance

Doctor

specialty

committee

Hospital

Administration

Technician

Radiologis

tMammography

MammOptics

Customer Workflow

ACOG

ACS

MammOptic

s

Patient PCP

OB/GY

N

Hospital

Administration

Technician

Radiologis

tMammography

MammOptic

s

Patient PCP

OB/GY

N

PCP OB/GYNs

Increased revenue

More complete patient care

Patient

Improved healthcare

Comfort

MammOptics

Revenue

ACOG

ACS

Doctor

specialty

committee

Hospital

Administration

Technician

Insurance

RadiologistMammography

MammOptics

Customer Workflow

MammOptics

Patient PCP

OB/GY

N

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Capital Equipment Sales

and disposable item

Per use fees

Product

Development

IP

Clinical trials

FDA

Publishing

IP

Leading doctors

Technical

Expertise

Leading doctors

Key Opinion

Leaders

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 3 of 4

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Capital Equipment Sales

and disposable item

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

ntPublishing

IP

Leading doctors

Technical

Expertise

Leading doctors

Key Opinion

Leaders

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 3 of 4

Building the companyThe backstage of a medical device company

MammOptics

Interviews

FDA Clinical Trials

Manufacturing

Venture

Capitalists

Reimbursement

Stanford

StatisticsSteve

Axelrod

Marga Ortigas-

Wedekind

Nick Mourlas

Don

Archambault

Shannon Bergstedt

Ali Habib

Dana Mead

Bill Starling

Doctors/Sales Dr. Aron

Shuftan

Jed Hwang

Michael J. Nohr

Manufacturing

MammOptics

Partners

Choose

manufacturing

facility close to

home

Manufacturing Reimbursement

MammOptics

Partners

Difficult to get

coverage for

new product.

Manufacturing

MammOptics

Partners

Reimbursement PartnersMammOptics

Insurances

CPT Codes

$75-$150

MammOptics

Partners

Manufacturing

FDA Clinical

Trials

Reimbursement

510K vs. PMA

Largest cost

Biggest

financial risk

Clinical Trials

12/4/2009

Stage 1Pilot trials

50 patients

$600K

MammOptics

6 months

Feasibility

Comparison

with

mammograph

y

Clinical Trials

12/4/2009

MammOptics

6 months 15 months

Stage 1Pilot trials

Stage 2Interim trials

500 patients

$7.2M

Prove superior

safety-efficacy

& sensitivity

Clinical Trials

12/4/2009

MammOptics

6 months 15 months

Stage 1Pilot trials

Stage 2Interim trials

24 months

Stage 3FDA pivotal

trials

1500 patients

$20.5M

FDA class II,

510(K) w/ trials

Focus on

superiority &

economic end-

points

Clinical Trials

12/4/2009

MammOptics

6 months 15 months

Stage 1Pilot trials

Stage 2Interim trials

Stage 3FDA pivotal

trials

Stage 4Post-market

studies2000 patients

$26.8M

Specific Cat III

CPT/ACP Codes

Market traction

24 months24 months

Clinical Trials

12/4/2009

MammOptics

6 months 15 months

Stage 1Pilot trials

Stage 2Interim trials

Stage 3FDA pivotal

trials$600K

$7.2M

$20.5M

$26.8M

Stage 4Post-market

studies

24 months 24 months

Clinical Trials

12/4/2009

MammOptics

MammOptics

PartnersMammOptics

Partners

Manufacturing

FDA Clinical

Trials

Reimbursement

Financial

timeline

Funding

$10M

$15M

2012

Series A

$3.5 MM

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

Initialize

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

Series B

$9 MM

System

2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

Launch

Series C

$30.5 MM$30M

$20M

Regulatory / Clinical

Series D

$35 MM

M&A / IPO

$50 MM$40M

151 12/4/2009

Proof of Concept

Pilot Studie

s

IC and Processing Patents

Marketable Product

Provisional Patent

Beta-Versio

n Testin

g

Application and

System Patents

IRB / IDE

Clinical Results

Second Release

Initial Product Launch

Specific Codes (Cat. I CPT / APC)

Non-Specific Codes

1st

Release Test

2nd Release Test

Publication

Post-Market Clinical Studies

Beta Prototype

US Interim Trials

FDA – Class II – 510 (k) with Clinical Trials

Publication

Financial / Operations Timeline

Cat III CPT

US Pivotal Clinical Trials

Laboratory

Prototype

Technology

Licensing

MammOpticsMammOptics

Financial

timeline

$10M

$15M

2012

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

Initialize

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016 2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

$30M

$20M

$40M

152 12/4/2009

Proof of Concept

Provisional Patent

Financial / Operations Timeline

Technology

Licensing

MammOpticsMammOptics

$10M

$15M

2012

Series A

$3.5 MM

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

Initialize

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

System

2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

$30M

$20M

$40M

153 12/4/2009

Proof of Concept

Provisional Patent

Beta-Versio

n Testin

g

Laboratory

Prototype

Beta Prototype

Technology

Licensing

Financial / Operations Timeline

Pilot Studie

s

MammOpticsMammOptics

$10M

$15M

2012

Series A

$3.5 MM

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

Series B

$9 MM

System

2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

$30M

$20M

$40M

154 12/4/2009

IC and Processing Patents

Marketable Product

Beta-Versio

n Testin

g

Application and

System Patents

IRB / IDE

Beta Prototype

Financial / Operations Timeline

Pilot Studie

s

Regulatory / Clinical

Laboratory

Prototype

MammOpticsMammOptics

$10M

$15M

2012

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

Series B

$9 MM

System

2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

Series C

$30.5 MM$30M

$20M

Regulatory / Clinical

$40M

155

IC and Processing Patents

Application and

System Patents

IRB / IDE

Cat III CPT

Second Release

1st

Release Test

US Interim Trials US Pivotal Clinical Trials

Publication

Financial / Operations Timeline

Pilot Studie

s

MammOpticsMammOptics

$10M

$15M

2012

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016 2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

Launch

Series C

$30.5 MM$30M

$20M

Regulatory / Clinical

Series D

$35 MM

$40M

156 12/4/2009

Clinical Results

Second Release

Initial Product Launch

Non-Specific Codes

2nd Release Test

Publication

US Interim Trials

FDA – Class II – 510 (k) with Clinical Trials

Publication

Financial / Operations Timeline

US Pivotal Clinical Trials

MammOpticsMammOptics

$10M

$15M

2012

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016 2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

Launch

$30M

$20M

Regulatory / Clinical

Series D

$35 MM

M&A / IPO

$50 MM$40M

12/4/2009

Clinical Results

Initial Product Launch

Specific Codes (Cat. I CPT / APC)

Non-Specific Codes

Publication

Post-Market Clinical Studies

FDA – Class II – 510 (k) with Clinical Trials

Financial / Operations TimelineMammOpticsMammOptics

$10M

$15M

2012

Series A

$3.5 MM

Ca

sh

Re

se

rve

Clin

ica

l M

ile

sto

ne

s

$5M

Initialize

De

sig

n

Mile

sto

ne

sR

eg

ula

tory

/ IP

M

ile

sto

ne

s

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

Series B

$9 MM

System

2017

Q1 Q2Q1 Q2 Q3 Q4

2018

Q3

Launch

Series C

$30.5 MM$30M

$20M

Regulatory / Clinical

Series D

$35 MM

M&A / IPO

$50 MM$40M

158 12/4/2009

Proof of Concept

Pilot Studie

s

IC and Processing Patents

Marketable Product

Provisional Patent

Beta-Versio

n Testin

g

Application and

System Patents

IRB / IDE

Clinical Results

Second Release

Initial Product Launch

Specific Codes (Cat. I CPT / APC)

Non-Specific Codes

1st

Release Test

2nd Release Test

Publication

Post-Market Clinical Studies

Beta Prototype

US Interim Trials

FDA – Class II – 510 (k) with Clinical Trials

Publication

Financial / Operations Timeline

Cat III CPT

US Pivotal Clinical Trials

Laboratory

Prototype

Technology

Licensing

MammOpticsMammOptics

MammOptics

Business Model Canvas 4 of 4

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Online

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

nt Publishing

IP

Leading doctors

Technical

Expertise

KOLs

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Clinical trial

designer

Doctors:

Earlier

detection

Price

Accuracy

Immediate

Results

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 4 of 4

Earlier detection

Non invasive

Price

Accuracy

Immediate Results

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Online

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

nt Publishing

IP

Leading doctors

Technical

Expertise

KOLs

3rd party

manufacturers

Breast Cancer

Foundations

ACOG

ACS

Clinical trial

designer

Radiation-free

Earlier detection

Non invasive

Pioneering

Doctors

Hospitals

Direct Sales to

hospitals

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals

Leading doctors

3rd party

manufacturers

Distributors

MammOptics

Business Model Canvas 1

Radiation-free

Earlier detection

Non invasive

Pioneering

Doctors

Hospitals

Direct Sales to

hospitals

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals

Leading doctors

3rd party

manufacturers

Distributors

Research

Hospitals

MammOptics

Business Model Canvas 2

Pioneering

Doctors

Hospitals

Direct Sales to

hospitals

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals (Capital

Spending

Committee)

Leading doctors

3rd party

manufacturers

Distributors

Research

Hospitals

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 3

Pioneering

Doctors

Hospitals

OB/GYNs

PCPs

Direct Sales to

hospitals

Strong clinical

data

Training

Maintenance

Product Development

Clinical trials

Operating Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

IP

Leading doctors

Technical

Expertise

Hospitals (Capital

Spending

Committee)

Leading doctors

3rd party

manufacturers

Distributors

Research

Hospitals

Breast Cancer

Foundations

Doctors:

Earlier

detection

Price

Accuracy

Immediate

Results

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 4

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Capital Equipment Sales

and disposable item

Product

Development

IP

Clinical trials

FDA

Reimburseme

ntPublishing

IP

Leading doctors

Technical

Expertise

Leading doctors

Key Opinion

Leaders

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Doctors:

Earlier

detection

Price

Accuracy

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 5

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Capital Equipment Sales

and disposable item

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

nt Publishing

IP

Leading doctors

Technical

Expertise

KOLs

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Doctors:

Earlier

detection

Price

Accuracy

Immediate

Results

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 6

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

nt Publishing

IP

Leading doctors

Technical

Expertise

KOLs

3rd party

manufacturers

Distributors

Breast Cancer

Foundations

ACOG

ACS

Clinical trial

designer

Doctors:

Earlier

detection

Price

Accuracy

Immediate

Results

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 7

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

nt Publishing

IP

Leading doctors

Technical

Expertise

KOLs

3rd party

manufacturers

(local)

Breast Cancer

Foundations

ACOG

ACS

Clinical trial

designer

Doctors:

Earlier

detection

Price

Accuracy

Immediate

Results

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 8

OB/GYNs

PCPs

Direct Sales to

hospitals

Distributor

Strong clinical

data

Training

Maintenance

Conferences

CME courses

Product Development

Clinical trials

Operating Costs

Marketing Costs

Per use fees

Product

Development

IP

Clinical trials

FDA

Reimburseme

nt Publishing

IP

Leading doctors

Technical

Expertise

KOLs

3rd party

manufacturers

(local)

Breast Cancer

Foundations

ACOG

ACS

Clinical trial

designer

Doctors:

Earlier

detection

Price

Accuracy

Immediate

Results

Patients:

Radiation Free

Non-Invasive

MammOptics

Business Model Canvas 9

Blog Your Progress

How?

• Customer Development– The Process

• Narrative– Interviews

– Surveys

– Videos

– Prototypes

• Business Model Canvas– Scorekeeping

• Real-time Feedback

• Physical Reality Checks– Skype

– Face-to-face

We Made Students

Blog Their Progress

It Changed Everything

Interview

Photos Videos

Surveys

Interview

& Photos

Competitive

Analysis

Key Findings

A/B Test

Results

Key Question

Strategy

Business Model Canvas as

the Scorecard

ScalableStartup

Large Company

Transition

Business School Versus

Entrepreneurship School

Entrepreneurship School

-Hypothesis testing

- Business Model design

- Customer Development

- Agile Development

- Metrics

- Venture Finance

- Design Thinking

-Execution

- Accounting

- Products

- Engineering

- Management

- Administrative

Business School

ScalableStartup

Large Company

Transition

Courses

- Lean Launchpad

- Customer/Agile Development

- Business Model Design

- Entrepreneurial Management

- Creativity and Innovation

- Entrepreneurial Finance

- User-centric design

Business School

Business School Versus

Entrepreneurship Courses

Entrepreneurship School

Courses

- Managerial Finance/Accounting

- Managing Groups and Teams

- Financial Accounting

- Operations

- Modeling for Optimization

- Global Value Chain Strategies

ScalableStartup

Large Company

Transition

Courses

- Lean Launchpad

- Customer/Agile Development

- Business Model Design

- Entrepreneurial Management

- Creativity and Innovation

- Entrepreneurial Finance

- User-centric design

Business School

Business School Versus

Entrepreneurship Courses

Entrepreneurship School

I teach this

E-School

•20th century focus on physical goods

• East coast manufacturing-centric

• East coast B-School-centric

• 21st century focus on virtual and physical goods

and channels

• West coast engineering school-centric

One More Thing

Adopted by the U.S. Government

Thanks

www.steveblank.com