the lean startup model for healthcare
TRANSCRIPT
The Lean Startup Model for Healthcare
Day 2, 5th November 2015, Morning session 10.00am-10.30amMatrix Level 4, Breakthrough+Discovery Theatres
Hugh Mason, Co-founder and CEO, [email protected] @hughmason
79 Ayer Rajah Crescent #03-01 Singapore 139995
With thanks to:JFDI Clients & Colleagues, Stuart Smith and Alex Danco for inspiration.
This presentation includes numerous borrowed graphics, to which I hope I haveincluded attribution. If not my apologies - please allow me to correct any omissions
Coming Up
Introducing JFDI1. Why Lean Startup Matters for Healthcare2. How Lean Startup Does and Doesn’t Work3. What are Some Opportunities for Singapore?
Suggestion: Q&A at panel 10:45
● First ASEAN startup accelerator, backedby IIPL, Fenox VC, Family Offices, HNWI’s
● Accelerator has attracted over 2,000 startup teams from 80+ countries.
● Pre-Accelerator has supported 250 teams comprising 900 people via MOOC
● USD2m pre-seed capital deployed into69 startups, >50% raised median USD550k
● No exits yet but 48% IRR (unrealized).
● Over 300 jobs created, >50% of which arein Singapore and >50% filled by SCPRs.
● Team of 16 split Singapore-Philippines.
● Pioneered Lean Startup and disciplined entrepreneurship methods in Asia
JFDI.Asia
1Why Lean Startup Matters
for Healthcare
Macrotrend 1 - Demographics
Macrotrend 2 - 42% of internet users are in Asia
Macrotrend 3 - Weightless Giants
Process of Serving
1
Creation of Goods
Intangible
2
Tangible
DynamicResources
3
StaticResources
Symmetric Information
4
Asymmetric Information
Conversations
5
Propaganda
Value
Proposition
6
Value Added
Relational
7
Transactional
Financial
Feedback
8Profit
Maximiza
tion
Macrotrend 4 - The Service Dominant Mindset
Macrotrend 5 - Unbundling
Macrotrend 6 - New Innovation Frameworks“Plan & Perfect v. Launch & Learn”
“Plan & Perfect” - Vision Based Innovation
“Launch & Learn v. Plan & Perfect”
“Launch & Learn v. Plan & Perfect”Discovery Based Innovation“Launch & Learn” - Discovery Based Innovation
● Design Thinking● Lean Startup● Agile Methods
ProblemCustomerDiscovery
Problem-SolutionFit
Market-Solution Fit
Individuals
Teams
Problem Statement
Minimum Viable
Prototype
Traction
Seed Stage Startup
Series AStage SME
Startup Weekends, Hackathons
Product Development
Customer Discovery
Growth Hacking
Demo Day
“A startup is a temporary organization designed to search for a repeatable and scalable business model”- Steve Blank
Two of the Risks in InnovationM
arke
t Ris
k- S
houl
d it
be d
one?
Technology Risk - Could it be done?LOW HIGH
HIGH
Business Model InnovationM
arke
t Ris
k- S
houl
d it
be d
one?
Technology Risk - Could it be done?LOW HIGH
HIGH
Mar
ket R
isk-
Sho
uld
it be
don
e?
Technology Risk - Could it be done?LOW HIGH
HIGH
Tech2Market - Vision Driven
Mar
ket R
isk-
Sho
uld
it be
don
e?
Technology Risk - Could it be done?LOW HIGH
HIGH
Tech2Market - Vision Driven
“Teams that pursued traditional methods of starting a company had an 18% success rate in receiving SBIR Phase I funding”(Blank 2013)
Mar
ket R
isk-
Sho
uld
it be
don
e?
Technology Risk - Could it be done?LOW HIGH
HIGH
Market2Tech - Discovery Driven
“Teams that … took the Lean Launchpad class ... had a 60% success rate”(Blank 2013)
2How Lean Startup
Does and Doesn’t Work
“Launch & Learn v. Plan & Perfect”
← Solution ← Value Proposition
Horses?Faster?
How the 19th Century ‘Bundled’ Mobility
“If I’d asked people what they wanted,they would have said: more hospitals”
3What are the Opportunities
for Singapore?
“The assumption that the pursuit of drugs, diagnostics,
devices and digital health is all about the execution of the
science is in most cases a mistake.” (Blank 2013)
Conclusions - 1
• Healthcare is a business
• Business model innovation matters as much as science.
• We can choose how we bundle components of healthcare.
• New frameworks for innovation let us test critical
hypotheses relating to regulation, customers and funding
before we commit significant resources to science.
Conclusions - 2
The way forward is to:
• assess regulatory risk before we design and build.
• gather data essential to understand customer purchases
before we do the science.
• define clinical utility now, before we spend millions of
dollars.
• identify financing vehicles before we need them.