1. Workshop 2: Assessing Opportunities Value Proposition/Customer Segment
2017 DifferenceMaker $6K Idea Challenge
Workshop 2: Assessing Opportunities Value Proposition/Customer Segment

2. Customer Segment Value Proposition
Your customers Including patients, clients, users
The groups who are affected by the problem
Value Proposition
Your offers including products, services, or features
Which one of customer’ problems are you helping to solve?
What value your products (or bundles of product & service) deliver to the customers?

3. Groups of people or organizations a
Customer Segment
Groups of people or organizations a
business aims to serve
Mass Market
One large group of customers with broadly similar needs
Niche Market
Target to specific, specialized customer segments
Segmented Market
Segments with slightly different needs & problems
Diversified Market
Different, unrelated customer segments
Multi-side Market
Two or more interdependent customer segments

4. To Work on your Startup! WHO ARE YOUR CUSTOMERS?
Be specific, identify customer segments?
What type of customer are they?
Use your Post-Its to capture your customer segments!

5. Value Core Goals of Business Long term profits
Deliver value to customers
Value

6. Value Proposition What is the problem that your solution addresses?
On average, students waste 5 hours a week by answering non emergency texts and surfing social media.
2. How does your solution solve this problem?
With the Shut It Down app, all you have to do is select the “study mode” and your friend’s texts and social media will automatically be restricted from updating on your cell phone. You will still get your important family texts and calls.
3. What are the main benefits your solution gives?
Shut It Down app can give you your study life back, without having to fumble through all the settings and codes on your phone. We save you time and help you be more productive.

7. Value Proposition
How does the product or service meet the needs of the customer better than any other product/service and what benefits does it provide?
Geoff Moore's Value Positioning Template from “Crossing the Chasm”
For ____________ (target who customer)
____________ (statement of the need or opportunity)
our (product/service name) is ____________ (product category)
that (statement of benefit) ____________ .

8. Bright-eyed Breakfast Bars
The Shut It Down App
We help students commit to school better by shutting off social media and unnecessary interruptions by paring down phone settings to bare essentials without having to fumble through settings and codes on your phone.
Bright-eyed Breakfast Bars
Tired of coming to school hungry but don’t have enough time? Then the bright-eyed breakfast bar is for you! It is made out of all gluten free whole grains, no corn sugar, dried fruit, and natural ingredients so that you can pack in the protein for a full belly and a clear mind. Made fresh daily. The bright-eyed breakfast bar is convenient and makes sure nutrition stays at the top of your priority list.

9. Value Proposition

10. Value Proposition
Professor Descoteaux’s Example

11. WHAT IS A VALUE PROPOSITION?

12. Map Customer to Value Proposition
Customer Segment
Products
Services
Features
Wins
Results
Gains
JOB
To Be
DONE
FIT
Pain
Killers
Pains
Getting The Customer Value Proposition Right Is Critical To Success

13. A Day In The Life Of Your Customers
Exercise
A Day In The Life Of Your Customers
Question
Customer 1___________
Customer n____________
1. How Is Your Customer Currently Dealing With This Task/Problem?
2. What Are They Trying To Accomplish? Desired Outcome? Wish They Could Do?
3. What Approach Are They Attempting
4. What Are The Interfering Factors?
5. What Are The Economic Consequences? –Costs?

14. A Day In The Life . . . Question Customer 1___________
Customer n____________
6. Your New Approach . . .
7. Enabling Factors?
8 Economic Rewards?
9. Is Our Price Consistent With Budget? – Problem Solved?
Do This For About 20 Customers!

15. For Each Customer . . . Are They Just Like Another Customer?
Basis for Segmentation
Who Has Similar / Different ‘Jobs to Be Done’!
How Many Customers Like This?
How Much Would They Buy?
This Is The Start of your Marketing Plan!

16. To Work on your Startup!
WHAT VALUE PROPOSITION DO YOU OFFER YOUR CUSTOMERS?
Again, be specific, identify which customer segments benefits.
Use your Post-Its to capture your Value Proposition!

17. What is Business Model?

18. What is Business Model?
A business model describes the rationale of how an organization creates, delivers, and captures value.
Clarke (2004)
Who pays? (consumer, producer, other)
What for? (e.g., goods, services, expertise)
To whom?
Why? (e.g., perceived value, low price, relationship)
Magretta (2002)
Who is the customer?
What does the customer value?
How do we make money in this business?

19. Business Model and Business Plan: What’s the difference?
Detailed document with Financial Projections
Marketing and Funding Solicitation Tool
Lots of Paper
Business Model
Tells the story of the value of the business to the customer
Describes how the company plans to make money
Should fit in the Founder’s Head – Should “Ring True”

20. The Business Model

22. The Business Model Canvas
Target Product – Recombinant hemagglutinin (HA) for pandemic and seasonal influenza
Tobacco Suppliers
Gene Synthesis Companies
CMOs
- Purification
Fill & Finish
- Packaging
QA/QC
CROs
Clinical Trials
FDA
R&D
Manufacturing
Regulatory Approval
Licensing
Marketing
Speed
Cost-Effectiveness
Robustness
Scalability
Safety
Ease of Customization
U.S. Supply
Long-Term Contracts with Government and Vaccine Manufacturers
U.S. Government
CDC
HHS BARDA
DOD DARPA
Foreign Governments
NGOs
Vaccine Manufacturers
Established and Emerging Biotech
IP – Patents, Trade Secret
Manufacturing Facility
Distribution through Government and Pharma Companies
Capital Investments
Manufacturing Costs
Licensing Costs
Marketing
Contract Manufacturing
Fully Integrated Manufacturing (Sales)
Licensing (Royalties)

23. Dynamically Interdependent
Start Here!
Key
Activities
Partners
Resources
Value
Proposition
Customer
Relationships
Channels
Segments
Revenue Stream
Cost Structure
Dynamically Interdependent
You will find that you can’t talk about customers without simultaneously talking about their needs and value provided.

24. Not-For Profit Model Donor Mission Product or Service Recipient Free
Key
Partners
Customer
Relationships
Key
Activities
Value
Proposition
Customer
Segments
Channels
Key
Resources
Product or
Service
Recipient
Free
Cost Structure
Revenue Stream
Donation

25. Value Propositions How does a business create value?
Bundle of products and services that create
value for specific Customer Segments
How does a business create value?
By addressing Customer Pain
Deliver service faster or cheaper, or both!
Provide a higher quality of service
By addressing Customer Gain
Providing status
Customization of product or service

26. How Are You Going To Test This?

27. Channels OWN CHANNEL DIRECT INDIRECT PARTNER CHANNEL Sales Force
How a company communicates with, and reaches its Customer Segments to deliver a Value Proposition
OWN CHANNEL
DIRECT
Sales Force
Web Sales
INDIRECT
Own Stores
PARTNER CHANNEL
Partner Stores
Wholesaler

28. Communication and Distribution Channels
Do we have a well thought-through communication and distribution channel design?
How well do we reach our clients?
Do we know how successful our channels are in terms of customer acquisition?
How well are our different channels integrated?
Do we know how cost efficient are our channels are?
Do we use the right channels for the right clients (e.g. in terms of profitability)?

29. Customer Relationship
The types of relationships a company
establishes with specific Customer Segments
Personal Assistance
Dedicated Personal Assistance
Self-Service
Automated Service
Communities
Co-creation
Motivated by Customer Acquisition, Customer Retention and Upselling

30. Customer Relationship
The types of relationships a company
establishes with specific Customer Segments
Do we have a customer relationship strategy?
How good are our relationships with our best customers?
Do we spend too much time and money in relationships with unprofitable clients?
How well are we doing in managing our customer relationships (e.g. follow-up, etc.)

31. For Each Customer . . . Are They Just Like Another Customer?
Basis for Segmentation
Who Has Similar / Different ‘Jobs to Be Done’!
How Many Customers Like This?
How Much Would They Buy?
This Is The Start of your Marketing Plan!

32. How Are You Going To Test This?
Experiments
Example from Lean Startup Contest (uTube)
Talk to Customers
Health Care Professionals, Patients, Family
Other Service Providers, Competitotrs
Field Interviews
Successful Businesses Plan To Continually Experiment & Discover

33. To Work on your Startup! HOW WILL YOU REACH YOUR CUSTOMER?
WHAT TYPE OF RELATIONSHIP WILL YOU HAVE WITH YOUR CUSTOMER?
Use your Post-Its to capture your Value Proposition!

34. Revenue Streams The cash a company generates from
each Customer Segment
Where does your revenue come from?
One source?
Multiple sources?
How sustainable are revenue streams?
How diversified are revenue streams?
Are you dependent on too few revenue sources (e.g. from some big clients or one single business)?
How well do we price our value proposition?

35. Types of Revenue Streams
Sale of Asset
Usage Fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage Fees
Advertising

36. Most important assets required to make a business model work
Key Resources
Most important assets required to make a business model work
Physical
Intellectual
Human
Financial

37. Most important assets required to make a business model work
Key Resources
Most important assets required to make a business model work
Do we have an ‘unfair’ advantage based on our resources and capabilities?
Intellectual Property?
Unique access to information?
Do we have the right resources to compete in the future?
Do we invest in of the right key resources in terms of quality and quantity?

38. Most important things a company must do to make a business model work
Key Activities
Most important things a company must do to make a business model work
How efficient are we in performing our activities?
Do we perform too many activities ourselves, leading to a lack of focus?
Are there activities we would be better off outsourcing to partners?
Are our activities adapted perfectly to our value proposition?

39. Network of suppliers and partners that make a business model work
Key Partners
Network of suppliers and partners that make a business model work
Do we use partners enough?
How well do we work with our existing partners and suppliers?
How dependent are we on our existing partners and suppliers?
Which partners could help us complement our value proposition?
Which suppliers could help us streamline our business model?

40. All costs incurred to operate a business model
Cost Structure
All costs incurred to operate a business model
Cost-driven
Value-driven
Fixed Costs
Variable Costs
Economies of Scale
Economies of Scope

41. Cost Structure
Is our cost structure appropriate? (low cost business model = low cost structure)
Do we clearly understand which parts of our business model have the highest costs?
How lean is our cost structure?
Are there ways we could reduce our cost structure?

42. Your Solution
Must be designed to address the real and perceived needs of your client, customer or patient
Must provide additional value over existing solutions
Must be sustainable over time

43. Go Build Your Initial Business Model (But Expect To Revise It Often As You Learn and Grow)

44. What’s Next? Complete the Problem and Opportunity Worksheets
Do Exercise “Day in the Life of your Customer” for 20 Customers
Workshop #3 // Delivering your Pitch 11/9       2pm-4pm Lowell Federal Bldg, Room 310
Idea Challenge Pitch Contest 11/16     2pm-4pm Lowell Federal Bldg, Assembly Room

45. Connect With Us! Ideacentermcc.wordpress.com #MCCBiz
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