Rwanda Xcelerator slides

Workshop Overview

Xcelerator Training Workshop

Kigali, Rwanda

February 20-23, 2016

© Copyright VentureWell 2016

Xcelerator role

Xcelerator Knowledge

Skills

Community

Credit: noun project


Workshop goals/outputs

•  Strategy for – Validating innovation

– Generating interest & demand

–  Introducing & sustaining innovation

•  Action plan for next steps


Day 1

•  Validation strategy – Market value chain

– Product-market fit

– Sustainability factors

– Strategy mapping

•  Dinner on-site


Day 2


•  Demand generation strategy – Strategy map feedback

– Marketing/storytelling

– Partnership

•  Action planning

•  Goals for health facility visits

•  ‘Pitch’ practice

•  Dinner at Heaven

Day 3

•  Health facility visit – CHUK (referral hospital)

– Remera-Rukoma (district hospital)

– Health centers

•  Debrief & discussion

•  Dinner on-site


Day 4

•  Team presentations – MOH

•  Mini-labs –  In-depth discussions on specialized topics

•  Action planning – Prioritized list of actions

•  Wrap-up


Value Chain: Critical Step to Finding Market


Kigali, Rwanda



Competitive advantage

•  Who’s in your market? •  Who can help you improve

- Quality - Efficiency - Differentiation


Market landscape


-Value-Chain-

VALUE


Market players

Sourcing Production Distribution Use



Bring innovation into use

•  Availability

•  Affordability

•  User acceptability

•  Adoption

Reaching end-users (or customers)


Value chain process

1. Initial mapping

3. Revise & Upgrade 2. Research


VC

Fu

nct

ion

s


Research/Interview

Product


•  Who? •  How many? •  What? •  How much? •  How?


What value chain can do

•  Identify constraints – Recent changes?

– Expected & unexpected future changes?

– Market nature/dynamics?

•  Identify opportunities – Value-adding activities?

–  Improving local value chain?


Recent trends

•  Growing middle-class & more sophisticated consumers

•  Burden shift to non-communicable diseases

•  Better access to technology & information

•  Growing interest from private investment

•  Push toward universal health coverage


Global health value chain


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Sourcing Use

Supporting functions: R&D, infrastructure, talent, business services, etc.

Policy & regulation: standards, law, norms/practices, etc.


Value chain analysis

•  Quality •  Efficiency •  Differentiation


COST VALUE


Product Market Fit: Testing Value Proposition


Kigali, Rwanda



Value hypothesis/testing

Product-Market Fit

Business model Fit Problem-Solution Fit


Product-Market fit is the only thing that matters.*

*Marc Andreesen


Why?

The #1 company-killer is lack of market •  When a great team meets a lousy market, market wins. •  When a lousy team meets a great market, market wins. •  When a great team meets a great market, something

special happens

Source: Marc Andreessen & Andy Rachleff


Product-market fit

Market

Product


Product-market fit

VALUE Problems + Needs < >

Solutions + Experience < >


Value proposition

A value proposition is a positioning statement that describes for whom you do what uniquely well.


Building value proposition

Scan (Value Chain)

Search Target

VP


Product-market fit

http://mjskok.com/resource/gtm-segmentation-mvs-targeting

>>> Minimum Viable Segment

Small enough to dominate

where MVP can succeed

Minimum Viable Product


Potential MVS?


Social

Private

Public


Target ‘early adopters’

http://www.slideshare.net/chaise2jardin/what-is-product-market-fit


Characteristics of early adopters

•  Have problem

•  Aware of problem

•  Solving problem

•  Actively looking for better solution

•  Have access/connection to resources to acquire/implement innovation


‘Marketing’ to early adopters

•  Building relationships (public/private) – Tech lovers, opinion leaders, influencers

– Small medium enterprises (SMEs)

– Non-governmental organizations (NGOs)

– Get referrals

•  Discover & share story about innovation

•  Look for ‘co-designers’


‘Marketing’ materials

•  Simplicity: what do you do?

•  Compatibility: easily fits into existing practice?

•  Advantage: how much improvement?

•  Adoption: easy to try?

•  Compelling story: easy to share with others?

Building demand



Our problem…


How/What to ask

•  A story about present or past experience – What happened?

– Why was it hard?

•  How’s problem being solved now?

•  How can solution be improved?


Cost/Benefit

•  Price •  Design •  Integration •  Saving •  Efficiency •  Reputation

•  Access •  Try •  Buy •  Implement •  Deploy

•  Inertia/do nothing

•  Switching $ •  Risk •  Good enough •  Alternatives?

Differentiator

Competitions


Product-market fit

•  Focus on minimum product-market fit

•  Build demand among most viable segments

•  Use early adopter networks to raise interest & build demand

Product

Market


Product/Service Validation: Goals?


Kigali, Rwanda



Pilot road map

GO: Set goal & targets

Perform stakeholder analysis

Identify partners

Select & recruit demo site(s)

Design pilot; secure funding

Draft demo plan

Stakeholder review & approval

Conduct demonstration & collect data

Collect baseline data

Analyze & synthesize results

Publish & perform PR

Evaluate lessons learned

FINISH: Iterate on product, scale up.

Source: Fraunhofer, 2016 © Copyright VentureWell 2016

Pilot types & goals

•  Scale

•  Testing level – Component

– System

•  Field testing – Controlled setting

– Representative

– Clinical setting


Co-designer approach

•  Partners & stakeholders needs (risks) – Standards

– User acceptability

– Human resources

– Sustainability

•  Best outcomes – What’s next?


Timeline

Planning Coordination

Execution Data

gathering

Outreach

months

+ 1 year

Completion: how long?


Action plan after pilot

•  Packaging data & results

•  Sharing & communications

•  Evidence à awareness & demand


Sustainability Factors


Kigali, Rwanda



Sustainability factors

•  Availability

•  Affordability

•  User acceptability

•  Adoption & Integration


Adaptation to market

Product or

Service

Team

Market

Health System

Validate P/S

Increase interest & demand for P/S

Introduce & sustain P/S

1

2

3


Market segments

Rural poor Urban/peri-urban poor

Urban/peri-urban middle-

income

Urban/peri-urban high-

income

Healthcare delivery

Public

Private (incl. social sector) Mixed

Financing model

Out-of-pocket Subsidy (+ user fees)

Insurance (Community-based à National Social Ins.) Mixed


Public sector providers

Dispensaries (18) – primary care, outpatient, referral

Health Posts (34) – Immunization, ANC, FP

Health centers (+430) – prevention, inpatient, maternity

District hospitals (39)

Referral hospitals (4)


Private sector providers

http://www.who.int/management/partnerships/private/privatesectorguide.pdf © Copyright VentureWell 2016

Shifts in health financing

http://www.healthpolicyproject.com/pubs/804_TanzaniaHealthFinancingBriefupdateFINAL.pdf


Health system

Subsidized models For-‐profit models

Public Private

Public Private Social

Finance

Delivery

Adapted from Taking Innova+ons to Scale, R4D, 2013.


Marketing Innovation through Storytelling


Kigali, Rwanda



Source: Arabian Nights

Stories are a communal currency of humanity.


Marketing innovation

”I’ll see it when I believe it.”

”I’ll believe it when I see it.”

Source: M. Bonchek, HBR, July 18, 2014.


H. Monarth, The irresistible power of storytelling a strategic business tool, HBR, March 11, 2014.

A story

…can go where quantitative analysis is denied admission: our hearts


Why tell a story

•  Research findings

– Human brain has affinity for stories

– We remember facts when part of a story

– Stories connect on a deeper level

Source: Velocity , University of Waterloo


“Data with soul”

Story

Contents



“When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion.”

Dale Carnegie’s How to Win Friends and Influence People


Marketing to emotions

•  Money

•  Self-preservation

•  Recognition

•  New experience

Source: Roy Garn’s Magic Power of Emotional Appeal

WHY

WHAT

HOW


Don’t sell a product


Sell a new way of making life better

http://www.colalife.org/kityamoyo/


Speak human

http://contentmarketinginstitute.com/2014/11/why-brand-speak-human/


A compelling ‘pitch’

•  What is it? – Brief, persuasive speech used to generate

interest in what you or your organization does

–  Interesting, memorable, succinct

•  What is the goal? – Capture interest, starting point for a longer

conversation

– Get a business card, spark questions, incite follow-up


‘Elevator’ pitch

•  Who you are

•  What you do/your solution

•  How you do what you do (and why we should care)


Credit: Campi & Company/Investor’s Circle


Elevator Pitch Exercise





‘Pitch Deck’

•  Longer & more complete story

•  Beyond value proposition

•  About inspiration & aspiration for innovation

•  About the people


How much people remember

Presentation

Presentation +

Visuals

10%

50%


Presentation +

Visuals +

Participation

70%


Innovation Story 10-Slide Pitch Deck

Source: Guy Kawasaki


Goal/Objective

•  Stimulate interest in innovation – To get second meeting

– NOT covering every aspect of enterprise

•  Develop pitch to be – CLEAR

– CONCISE

– COMPELLING

– VISUAL


Name of your enterprise or organization

YOUR NAME

YOUR TITLE

1


Problem/Opportunity

[Describe the pain (problem) you’re alleviating or the pleasure you’re providing.]

2


Value Proposition

[Explain the value of the pain you alleviate or the value of the pleasure you provide.]

3


Innovation ‘Wow’ Factor

[Describe what’s special about your innovation. It’s better to use less words and more diagrams, schematics or flowcharts. Show prototype or demo if you have it.]

4


Business Model

[Describe your proposed sustainable business structure: value proposition, customer segment, customer relationships, distribution channel, key activities, partnerships, resources, cost structure, revenue streams.]

5


Go-to-Market Plan

[Explain how you plan to reach customers within a reasonable budget.]

6


Competitive Analysis

[Describe as complete as possible what key competitions in the market look like.]

7


Management Team

[Describe: key people on your team, their expertise and experience; board of advisors; board of directors; investors (if any).]

8


Financial Projection & Metrics

[Provide realistic 2-3 year forecast of revenues and key metrics, e.g. customers reached/retained.]

[What’s success?]

9


Current Progress

[Explain current status of innovation and your future vision, including timeline and how you plan to spend raised investment.]

10


Value chain partnerships


Kigali, Rwanda



Partnership

Credit: Noun project

What is our shared value?


Partner value chains

Your Value Chain

Partner Value Chain

Customer Value Chain


Which value chains?

•  Impact on people – Productivity/efficiency

– Entry barriers (resources, knowledge)

•  Impact on market – Access to key segments

– Growth & scale potential

– Leverage of public/private investment


Partnership criteria

History

Impact Risk

Credit: Noun project

CompaLbility

Network


Other options?

•  Besides partnership

•  “MAKE” Do it yourself

•  “BUY” Contract another organization


Decision tree

Strategic? Fit?

Ac-vi-es Processes

Outcomes Performance ExpectaLons

FEEDBACK


Practical rules

•  You don’t have all the information for analytical decision

•  Do the visions align?

•  Do they add value?

•  Are they honest?

•  Are they capable?

•  Can you get along?

Credit: G. Pinchot © Copyright VentureWell 2016

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Rwanda Xcelerator slides