building data-rich market validation plans for university technologies francis moran peter hanschke...
TRANSCRIPT
Building Data-RichMarket Validation Plans
for University Technologies
Francis MoranPeter HanschkeMarch 29, 2012
© Francis Moran and Associates Inc., 2012 All rights reserved
Agenda
• Intros• Validation assessment• Why?• How?
• Examples• Q&A
© Francis Moran and Associates Inc., 2012 All rights reserved
Introductions
• Francis Moran• I bring technology to market• I work with technology-driven ventures to build and
implement the strategies that will identify customers, develop the right product, differentiate effectively and hit revenue objectives
• Peter Hanschke• 20+ years of hi-tech product management and
marketing experience• Specialize in helping companies align their product strategy with
their business strategy• Frequent blogger and speaker
© Francis Moran and Associates Inc., 2012 All rights reserved
Must be worth it
• Costly to bring technology to market• Can the technology be monetized? At some
point?• Mobile space is full of free; monetization must
occur at some point
• Extremely difficult to shed products• What do you do with existing customers?
© Francis Moran and Associates Inc., 2012 All rights reserved
Avoid surprises
• We brought it to market and…• “the customer really wants this…instead.”• “the market is much smaller than we thought”• “we can’t reach the customer because…”
• “Carriers don’t buy from startups”• “Cisco owns the market”
• “our product is too late or too early”• “our price is too high”• “the pricing has collapsed in the market”
© Francis Moran and Associates Inc., 2012 All rights reserved
Value assessment questions
1. What is the need?2. Why is the need unmet?3. How is the Industry attempting to satisfy the
need and by when?4. How large is the market, in dollar terms, if
the need is satisfied?
© Francis Moran and Associates Inc., 2012 All rights reserved
1. What is the need?
• Truly a need or a nice-to-have? Pull or push?• Drivers creating this need?• Universal across the industry or only for certain
market segments? • What does the market look like right now?• Segments• Key stakeholders and value chain• Business model• Pricing model
© Francis Moran and Associates Inc., 2012 All rights reserved
2. Why is the need unmet?
• What are the barriers preventing the need from being satisfied?• Technology• Government or legal• Industry standards• Key stakeholder control• Macroeconomic, microeconomic• Timing of adjacent adoption curves
© Francis Moran and Associates Inc., 2012 All rights reserved
3. How is the industry attempting to satisfy the need and by when?
• Many ways of satisfying the need at different levels in the value chain
• Do not underestimate the incumbent solution or technology
• Do not ignore indirect solutions• Consider all potential barriers• Review strengths and weakness of each
current solution
© Francis Moran and Associates Inc., 2012 All rights reserved
4. How large is the market?
• What is the financial value that this need meets in the market place?
• How much could I charge for this product?• Can we construct a business case for target
clients showing attractive ROI?
© Francis Moran and Associates Inc., 2012 All rights reserved
Market segment evaluationFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Critical factors that need to discussed, described in detail,
and scored.
Critical factors that need to discussed, described in detail,
and scored.
© Francis Moran and Associates Inc., 2012 All rights reserved
Market segment evaluationFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Weighting defines the relative importance
of each factor.
Weighting defines the relative importance
of each factor.
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Accessible targetFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Can I get to this customer?
Do they have budget in place?
Are they willing to spend money?
Can I get to this customer?
Do they have budget in place?
Are they willing to spend money?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Compelling reasonFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Is this an Urgent Need?
Is their current method of addressing
the need painful?
Is this an Urgent Need?
Is their current method of addressing
the need painful?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Whole productFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Do customers need more than a point
solution?Does your product provide everything
they need?
Do customers need more than a point
solution?Does your product provide everything
they need?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Partners and alliesFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Are there partners and/or allies that you
can leverage?
Are there partners and/or allies that you
can leverage?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Product distributionFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Are there viable channels of
distribution?
Are there viable channels of
distribution?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Product pricingFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Can you price your product so that the
market buys it?
Can you price your product so that the
market buys it?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: CompetitionFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Is the competitive landscape too formidable?
Is there an angle to exploit?
Is the competitive landscape too formidable?
Is there an angle to exploit?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Current positionFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Is this consistent with your current
position? Or is it new?
Is this consistent with your current
position? Or is it new?
© Francis Moran and Associates Inc., 2012 All rights reserved
Factor: Segment potentialFactors Description Weight
(%)Score(0 – 1)
1 Accessible, well-funded target customer
20
2 Painfully compelling reason to buy 30
3 Feasible whole product 10
4 Known partners & allies 5
5 Effective whole product distribution 5
6 Attractive whole product pricing 5
7 Opportunity not preempted by competition
10
8 Consistency with current position 5
9 Good follow-on segment potential 10
Can success in this segment easily lead to other segments?
Can success in this segment easily lead to other segments?
© Francis Moran and Associates Inc., 2012 All rights reserved
Applying the assessment matrix
• Be honest. Be critical. Be truthful. Challenge assumptions. Avoid group think.
• Apply to every potential segment, start with:• Accessible, well-funded target• Painfully compelling reason to buy• Feasible whole product• Competition• Good follow-on potential
• Select top segments worth going after© Francis Moran and Associates Inc., 2012
All rights reserved
Market segment assessment exampleFactors Score
(0 – 1)Weight
(%)Weighted Score
(%)
1 Accessible, well-funded target customer
1 20 20
2 Painfully compelling reason to buy .4 30 12
3 Feasible whole product .8 10 8
4 Known partners & allies 1 5 5
5 Effective whole product distribution .7 5 3.5
6 Attractive whole product pricing .3 5 1.5
7 Opportunity not preempted by competition
.7 10 7
8 Consistency with current position 1 5 5
9 Good follow-on segment potential .5 10 5
Total Weighted Score 67© Francis Moran and Associates Inc., 2012
All rights reserved
Variety of sources
• Important to gather info from a variety of sources• Avoids group think
• Sources include• Target market(s)• Non-buying experts• Ex-employees
• Ensure NDAs are in place or use interview techniques that are nondescript
© Francis Moran and Associates Inc., 2012 All rights reserved
Target market(s)
• These are the potential buyers• Search LinkedIn, Facebook for potential
companies• LinkedIn has good search tools
• Use your rolodex• Caution: May jeopardize early sales
© Francis Moran and Associates Inc., 2012 All rights reserved
Non-buying experts
• Wouldn’t buy, but are regarded as industry experts• Analysts, consultants, educators, writers
• They have a broad view of the market; know what is going on and who is doing what
• Search the internet, based on applicable keywords• Blogs, tweets, Facebook• Comments usually have good nuggets
• Google Alerts is a good tool to get info as it happens
© Francis Moran and Associates Inc., 2012 All rights reserved
Employees: Ex and current
• Ex-employees are those who have moved on to other segments
• Current employees are in companies that do not compete with yours
• Find out whatever you can about the industry and market
• Don’t assume they have a non-communicate clause; just reach out
• Search LinkedIn for employees© Francis Moran and Associates Inc., 2012
All rights reserved
Online, interactive mapping
• Started with a preconceived notion of the target market
• Performed this evaluation and decided on other segments
• Defined the whole product and pricing• Got independent validation from potential
customers and industry expert
© Francis Moran and Associates Inc., 2012 All rights reserved
Touch Bionics
• First product was marketed throughclinics. Go-to-market strategy was abusiness development function.
• Second product required a clinical capability.Key question: Where to establish?• Certain industries are more likely to have the
sorts of injuries the product treated. Where arethey clustered?
• Jurisdictions vary on compensation, reimbursement. Where are the favorable ones?
© Francis Moran and Associates Inc., 2012 All rights reserved
Summary
• Critical to have a validation plan• Determines whether it’s worth it• Helps to avoid surprises
• Perform assessment on each segment• Scores determine highest potential segment• Honesty, critical thinking and knowledge are vital
• Validate with a variety of sources• Potential customers; segment experts; employees
within the segment
© Francis Moran and Associates Inc., 2012 All rights reserved