Managing Your Innovation Pipeline

MANAGING YOUR INNOVATION PIPELINE

Steve Franks, Northeast Indiana Innovation Center1

http://www.flickr.com/photos/carlchapman/1392728191/

2

Coming up with ideasfor new products, services,or entire new business units

ISN’T the problem.

Finding the onethat’s a game changer

IS!

http://www.fotopedia.com/items/flickr-1393836032

Managing Your Innovation Pipeline, Northeast Indiana Innovation CenterAll rights reserved

3

1. Lean StartupBusiness Model Validation

What are your hypotheses?Do customers and stakeholders agree with you?Do they care?

2. Pitching and PlanningPrepare for Investment

Make the business caseBe your own angel investor.Be prepared to pitch investors.

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

High concept pitchElevator pitchPresentation deck

[and Business Plan]

Alexander OsterwalderInvented this Business Model Canvas

Steve BlankUses it in classes at Stanford

Naval Ravikantco-founder Venture Hacks

Babak Nivico-founder Venture Hacks

Managing Your Innovation PipelineNortheast Indiana Innovation CenterAll rights reserved

4

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

The 9 Business Model Elements

1. Who are your target market segments? What are their “big wants”? Why will they scream with joy when they hear you are addressing that particular issue?

2. Separately, what is your value proposition (product offering). Do they still scream when they hear what you are offering?

3. What kinds of relationships will be necessary with your customers? One on one and personal, automatic and hands off self service, etc.?

4. How will you reach them? How do they want to be reached?

5. Are any partners key to your success?

6. What activities do you have to excel at in order to be successful in this industry?

7. What resources (like things and people) do you have to have in order to be successful in this industry?

8. How will you structure your revenue streams? Do your customers agree?

9. What are your major cost drivers?

The 3 Answers

1. What? Huh? That makes absolutely no sense at all.

2. Well, yeah, that’s pretty close to what I see - but have you ever thought about ....

3. Oh My God! I can’t believe you are doing this! Is it available? Can I have it now? Please?

Your job: test each element!


5

High concept pitchElevator pitchPresentation deck

[and Business Plan]

Presentation Deck 1. Cover. Logo, tagline, and contact information.

2. Summary. Key, compelling facts - from your elevator pitch.

3. Team. Past accomplishments. Include directors or advisors who bring something special.

4. Problem. Customer segment and their big want.

5. Solution. Your value proposition and offering, including a demo. “God help you if you have nothing to show.”

6. Technology. If appropriate.

7. Marketing. Who are the customers, and how many of them are there? How are you going to reach prospects and acquire customers? What traction do you already have

8. Sales. Your business model. The micro view of a sale - what do you make in a typical transaction? What do you know that isn’t pure speculation about how you might grow a customer base?

9. Competition. Why will customers use your product instead of the competition’s? How do you know? How will you defend against competitors’ actions?

10. Milestones. By quarter for the next 4 quarters. For your product, team, marketing, sales, and gross burn (your expenses, assuming zero revenue).

11. Conclusion. The vision of what the company could accomplish.

12. Financing. Previous funding, amount being raised in this round and how it will be used, equity deal offered (if appropriate).

High Concept PitchA few words, Hollywood- style. “Snakes on a Plane”, “Flickr for Video”, “The Jefferson Pointe for Entrepreneurs”

Elevator Pitch4 elements: product and target customer, big want, traction, team’s credentials.

If you can prepare these 3 things, you can prepare a business plan or executive summary. It’s the same information, just written differently!


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http://www.fotopedia.com/items/

http://www.flickr.com/photos/carlchapman/1392728191/

For ideas that have merit, send the champions off to validate a business model.

For concepts that are validated, send a team off to create and make an investment pitch.


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http://www.flickr.com/photos/good-karma/

Grow With: NIIC Corporate Incubation

We guide you as you establish and operate your own on-site, private incubation program and grow by adding game-changing new products, services, or business units.

• Weekly half-day meetings with your team.• 6-month or 12-month engagements.• Availability is limited to a maximum of 4 engagements at any time.

Next Steps:


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http://www.startuplessonslearned.com/

http://steveblank.com/

http://venturehacks.com

http://alexosterwalder.com

http://niictools.com


Documents

Managing Your Innovation Pipeline