Innovate Manawatu Stage 2 Workshop

INVIGORATING MANAWATU’S INNOVATION CULTURE

Stage Two Entrants Workshop

Polish Your Rough Gem


Innovate Partners


Agenda

• Introductions

• The Innovate Process

• Key Issue: IP and Confidentiality

• Idea to Business

• The Business Model Canvas (BMC)

• Wrap up, Evaluation & Afternoon Tea


The BCC

• The BCC is all about Realising Innovation.

– we offer structure, support and mentoring for start-ups;

– we facilitate the commercialisation of new technology from the lab to industry; and

– We raise or locate investment to shape and grow technology businesses.


Innovate Process


TakeAways

• You’re not being marked by us here

– Workshop = Sharing Knowledge

– Develop your idea for your benefit

– Share with your partner• Use questions to clarify, not to criticise• Accentuate the positive• Remember, their idea is “Work in Progress”


Intellectual Property

What is IP?• Your ideas

– Knowledge

– Knowhow

– Drawings

– Designs

– Products

– Brands

– Software code

– Formulas


Protecting Your IP

• Patents

• Novel and inventive ideas

• Trademarks

• Brands, logos, etc

• Copyright

• Written material, art, music, drawings, software, etc

• Trade secret


The Protection Process

• Talk about the “What” but not the “How”

• Have confidentiality agreements signed

• File a patent or trademark

• Embed the software code

• Keep it a trade secret

• Be first to market and establish a strong brand

• Create high entry barriers for competitors


Idea to Business

Idea• Aha! moment

• Assumptions

• No product/service

• No customers

• No revenue

Business• Capital & Resources

• Validated Value Proposition

• Competitive

Product/Service

• Clearly defined customers

• Revenue stream

• Channel Partners

• SCALE!


Idea to Business

Idea• Aha! moment

• Assumptions

• No product/service

• No customers

• No revenue

BusinessStart-Up• Capital & Resources

• Validated Value Proposition

• Competitive

Product/Service

• Clearly defined customers

• Revenue stream

• Channel Partners• SCALE!


What is a “Start-Up”?

• The search for a repeatable and scalable business model.

• The key: How to recognize failure, learn from it, and pivot – FAST!

• “Fail early and fail fast”

– Key isn’t failing fast – it’s Learning Faster.

• Get Out of the Building!



The Business Model Canvas

Key Partners

Key Activities

Value Proposition

Customer Segments

Key Resources

Customer Relationships

Channels

Cost Structure

Revenue Streams

Efficiency Value


Customer Segment

• A group of customers with shared needs is at the Heart of any successful Business Model

• Better to make a few users love you than a lot ambivalent

• Understand “Pain” = Potential “Gain”

• Ie. No Pain, No Gain

• If you don’t get this right the rest is a waste of time


Group Buying


Key Partners

Key Activities

Value Proposition

Customer Segments

“Outgoing Spender”Female 25-50Want to reward themselves, but don’t have the budget to do so frequently.

Key Resources


Channels

Cost Structure

Revenue Streams

Efficiency Value


Customer Segments

• What are the segments in my target market?• “Everyone who has a…” is not a segment

• Decision: – Which segment has the greatest unmet need?

– Which segments should I ignore?

• What is the Customer’s “Pain”?

• Who are your most important Customers?


Value Proposition

• A clear statement of the tangible results a customer gets from using your products/services

• The bundle of products and services that create value for a specific Customer Segment.

• Your solution to their Problem/Pain

• What are Coke or Nike’s VP’s?


Key Partners

Key Activities

Value Proposition

50-90% off fun things to do, see and eat in your local area.Costs consumer nothing to join or receive deals.We’ll let you know when deals occur - just buy those you want.

Customer Segments


Key Resources


Channels

Cost Structure

Revenue Streams

Efficiency Value


Value Proposition – Q’s

• What is the main problem I am solving for people in my chosen segment?

• How are these Customers going to benefit from using my product or service?

• Your value proposition should discuss only what matters to your customers and the value you can bring to them.


Channels

• How a company communicates with and reaches its customer segments to deliver its Value Proposition.• Awareness• Evaluation• Purchase• Delivery• After sales service


Key Partners

Key Activities

Value Proposition


Customer Segments


Key Resources


Channels

Use a combination of internet to explain the offers, transact, and manage the database and emails to make them aware of new deals.

Cost Structure

Revenue Streams

Efficiency Value


Channels – Q’s

• Through which channels does my Customer Segment want to be reached?

• Which Channels work best at each stage?• How am I integrating the channels with

customer routines?• Who could be my channel partners?



• Describes the types of relationships a company establishes with specific Customer Segments.

• Can de driven by the following motivations:– Customer Acquisition

– Customer Retention

– Upselling


Categories of Cust. Relationships

• Personal Assistance• Dedicated Personal Assistance• Self-service (provide the means for

customers to help themselves)• Automated services (recognises individual)• Communities (eg. Online)• Co-creation (eg. Amazon reviews)




Key Partners

Key Activities

Value Proposition


Customer Segments


Key Resources


Web-based self-service. Links to personalised service when needed.Community through FB and discussions.

Channels

Use a combination of internet to explain the offers, transact, and manage the database and emails to make consumers aware of new deals.

Cost Structure

Revenue Streams

Efficiency Value


Customer Relationship Q’s

• What type of relationship does my customer segment expect me to establish & maintain with them?

• How could I serve them better?

• Is this integrated with the rest of my business model?


Revenue Streams

• The way you generate cash from your customer segment.

• What value are your customers willing to pay for?– Asset sale– Usage fee (eg. Phones)– Subscription fee (eg. Gym)– Renting/Leasing– Licensing– Brokerage/Commission Fees– Advertising


Key Partners

Key Activities

Value Proposition


Customer Segments


Key Resources



Channels


Cost Structure

Revenue Streams

Commission on sales

Efficiency Value


Revenue Streams – Q’s

• What would your customers prefer to pay for?– Asset sale– Usage fee (eg. Phones)– Subscription fee (eg. Gym)– Renting/Leasing– Licensing– Brokerage/Commission Fees– Advertising

• Does your Revenue Stream fit your customer’s needs and the rest of your model?


Key Partners

Key Activities

Value Proposition


Customer Segments


Key Resources

Human – sales force that can generate deal flow



Channels


Cost Structure

Revenue Streams

Commission on sales

Efficiency Value


Key Partners

Key Activities

Develop platformCreate deal flowGrow subscriber base

Value Proposition


Customer Segments


Key Resources




Channels


Cost Structure

Revenue Streams

Commission on sales

Efficiency Value


Key Partners

Web designer/database developerBranding expertise

Key Activities


Value Proposition


Customer Segments


Key Resources




Channels


Cost Structure

Revenue Streams

Commission on sales

Efficiency Value


Key Partners

Web designer/database developerBranding expertise

Key Activities


Value Proposition


Customer Segments


Key Resources




Channels


Cost Structure

Fixed cost of platform development & brandingVariable costs on transaction processing, sales commission

Revenue Streams

Commission on sales

Efficiency Value


Key Partners

Key Activities

Value Proposition

Customer Segments

Key Resources


Channels

Cost Structure

Revenue Streams

Efficiency Value


What are my Priorities?Building Block Questions/Tasks


Where to from Here?

• Innovate Process

• Polish your Gem– Concentrate on the Value side

• Get Out of the Building!– Listen to your target market– Understand their Pain

• Improve your application– Re-submit it if you learn anything new


Innovate Process


Xerox

• Chester Carlson patented photocopying– It was turned down 40 times by

investors, including IBM

• Inventor

• Idea sharing

• He learned to describe his Customer Segment’s Pain & explain his Value Proposition


Lean on the Resources

• Email with links

• Locally– Vision Manawatu

• Up to 50% off Capability Training

– The BCC• Start-Up Questions (Warren)• R&D Funding (Martin)• IP Advice (Richard)


Date post:	14-Jan-2015
Category:	Business
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