Kiwi Innovation Network

Investor Engagement Workshop

Craig’s Investment PartnersTuesday, 14th August, 2012, 10:00am – 6:00pm

http://kiwinet.org.nz/activities/engagementWorkshop

Mauao (Mount Maunganui), 3rd Jan, 2012, 7:00am

Day StructurePitch your ideas 5 minutes each (30-40 minutes);

Define your Value Chain – Worksheet One

Be Benefit Led – Worksheet Two

Lunch

Develop your Value Proposition – Worksheet Three

Develop your Pitch – A6 Index Cards

Pecha Kutcha style pitch (45 minutes)

Closing Remarks (15 Minutes)

Review/revise/prepare (30 minutes)

Product Development Process

research seed

production sapling

to marketricker

in marketmature kauri

prototype seedling

idea developed seed

The final size of a Kauri is often determined by it’s conditions, but can grow upwards of 30-40 metres high and several metres wide. Kauri can survive for thousands of years the oldest in New Zealand being estimated at between 1200-1500 years.

After 50 years or more the trees will reach the forest canopy. The tree will slow it’s upward streak and start to broaden and develop the iconic crown it is well known for. During this time it will also start to shed the lower branches in a process called abscission leaving the trunk free of knots to become what’s known as ‘poles’ or ‘rickers’.

The young sapling bristles up a and grows a spiky coat developing at a rate of approximately 10-25cm a year.

As a seedling they will develop oblong shaped green or reddish borwn leaves quickly dependnig on how much direct sunlight they are exposed too.

If the seed finds itself in dry but cool conditions and isn’t deposited too deeply or eaten by insects or birdlife it will germinate and shed it’s coat after 35 days. Kauri seeds have bee known to develop on fallen trees or even in the litter at the base of the parent tree, a very hardy habitat.

The seed of the magestic Kauri is dispersed after pollination by the wind travelling a distance of up to 1.5 km before settling ideally in the cool moist foliage under the Manuka tree. The Kauri seeds special wing like form helps to carry it far from the parent tree allowing it to grow gradually and broaden over decades.(Stewart, Kauri, 2008)

4 For more info please visit: www.locusresearch.com

Awards:Awards are not a great predictor of commercial success (particularly in design). But when our team and clients have worked hard on a project it is great to stop and reflect.

Best AwardsThe best awards are the key Design Awards in New Zealand. They are organised by the Designers Institute of New Zealand (DINZ). Locus Research Managing Director Timothy Allan helped to institute the ‘Sustainable Product Design’ Award and was the inaugural judge in 2004.

Programmes awarded include: Encircle - Medical Devices Drybase - Tiled Shower System

Cortex - Exterior Cladding System Littl’ Juey - Weedcutter

Curve Surf - Surfing accessories Cayo & The Outdoor Room

Hold - Furniture Range Forester - Chainsaw Protection Clothing

Dupont Innovations AwardsIn the Australasian context these awards are the heavyweight. Held bi-annually, the appeal of the DuPont awards is they recognise real research and development at a structural level and include in depth discussion of sustainability within the Awards.

Programmes awarded include: Encircle - Medical Devices

Circadian - Sleep System

MDEA AwardsThe Medical Design Excellence Awards (MDEA) competition is the premier awards program for the medical technology community, recognizing the achievements of medical product manufacturers and the many people behind the scenes worldwide.

Programmes awarded include: Encircle - Medical Devices

Sustainable 60The award was created by Fairfax media and Price Waterhouse Coopers in 2009. It provided the perfect opportunity to recognise the wider areas of sustainability within a business. Locus Research was the recipient of the Overall Exemplar for Small business. This recognised the work we have done in a range of business areas.

Five categories entered to be eligible for award: Strategy and Governance - Our internal ‘Evolve’ project;

Workplace - Our Continuous Professional Development (CPD) programme;

Marketplace - The innovative Transform initiatives for Textiles New Zealand;

Environment - Life Cycle Thinking Workshops;

Community - Our contribution to forming the Sustainable Design Group of NZ.

Sustainable Design & Innovation AwardsThe Sustainable Business Challenge is held each year by The Sustainable Business Network. They recognise leading businesses sustainability initiatives. Locus Research has been involved regionally (Bay of Plenty) as a Judge and an advocate for the awards and also won the central and southern award in 2009 against stiff competition and proceeded to the national finals.

Programmes awarded include: Cortex - Exterior Cladding System

Interior Design AwardsThe Australian Interior Design Awards is a partnership event of the Design Institute of Australia, DesignEX and ARTICHOKE magazine. It the premier Design event in Australasia that is held alternately between Melbourne and Sydney. An important calendar event for key furniture and household goods manufacturers.

Programmes awarded include: Thermowood - A Material Investigation

ISPO Brand NewThe new entrant award which is a part of the global sporting and equipment show; ISPO This award has feature some great New Zealand innovators such as Blo-Kart. The innovative Curve Surf Travel system was a finalist in 2008 and featured in their exhibition.

Programmes awarded include: Curve Surf - Travel System

Focus on HealthFocus on health was an innovation challenge that sought to assist NZ companies commercialising healthcare products and services into the US market. We were fortunate to be selected from over 100 entries to be a semi-finalist and were able to take part in pitching to top US healthcare experts and Investors.

Programmes awarded include: Encircle - Medical Devices

5For more info please visit: www.locusresearch.com

Clients:Our clients have included the following:

Design Business Science

Too early?!Difficult committing to a concentrated story when your still in development;

It is more of a prototype, takes some iterations to get it right;

We start at the start of a project, building a ‘project prospectus’;

Can help to guide or calibrate development.

Be Benefit LedUnderstanding who your customers are and then translating your product or technology features into customer benefits

Approached in Two PartsDefining the Value Chain

who are your customers/users.

Translating your features into benefits

what are the benefits that your product/technology/features can deliver.

Defining the Value ChainCapturing the users, customers, stakeholders, influencers

Your Value ChainWe group these as:

Users ~ users of the product/service/technology

Customers ~ purchasers of the product

Stakeholders ~ a direct part of the value chain

Influencers ~ those that exert an indirect influence

The Product Systemproduct life cycle interaction model

Production Distribution Retail Use Disposal

Customer

User

Requirements

Benefits

Stakeholder

Technical

Why is it so important?Not just having a product/technology specified;

Or being sold;

It needs to deliver satisfied users;

Demonstrate the benefit it delivers;

Ultimately this creates a positive referral cycle that will deliver returns over long term.

Worksheet One!Define your value chain

Users

Customers

Stakeholders

Influencers

From features to BenefitsStarting to develop the value proposition & story that will underpin your pitch.

A feature is not a benefit

The natural inclination is to describe products/services by what they can do (features);

Example

Features: It has a Quad core 2.8 Ghz processor /32gb RAM/9600M GT 512 MB

Benefit: just blazingly fast.

The Product OfferDoes not do away with a technical specification or definition of the features;Gets to the core of the ‘product offer’ something that investors and customers will relate to and understand.

Push or Pull

Some projects are created from technology others from market opportunity

Either way the benefits need to be clearly articulated

Worksheet Two – Be Benefit ledDrawing from your value chain

We have decided to flip this

Draw a group from your value chain;

Define the benefits you can offer;

List the features that deliver that benefit to the customer

This can work both to define your key benefits and to identify your gaps.

Value PropositionDeveloping a succinct value proposition that forms the core of your pitch

The value proposition We need to consider:

Your Value Chain;

The benefits your delivering them;

How this can be translated into a pitch that an investor can understand and see value in.

The ‘one page drop sheet’The common format for pitching:

1-2 page drop sheet;

Format is well established

See http://www.gust.com most commonly used.

The ‘one page drop sheet’For you

Forces clarity;

Highlights gaps;

Starts to prepare for the dialogue with investors;

Thinking in their common format.

For the investor

Easy to understand and see the value.

The ‘one page drop sheet’One line pitch *Business Summary

Management

Customer Problem *

Product/Services *

Target market *

Customers *

Sales marketing strategy *

Business model *

Competitors *

Competitive advantage *

Financials

The ‘one page drop sheet’One line pitch *Business Summary

Management

Customer Problem *

Product/Services *

Target market *

Customers *

Sales marketing strategy *

Business model *

Competitors *

Competitive advantage *

Financials

Worksheet Three – Your PitchDevelop your value proposition (centre)

Use the categories drawn from the drop sheet to brainstorm your proposition and what you want to communicate in each area;

We will then take these and put them onto some A6 index cards to create our prototype pitch.

Pecha Kucha – Index CardsYou have a fixed amount of time for each topic;Translate the pitch from worksheet three;Present to the group (5 Minutes).