The dirty little secret of commercialization

The dirty little secret is: kickass technology alone is

not enough

The combination of the technology to reduce particulates in the air plus the insight that guests were

becoming more and more motivated to find an alternative to hotel rooms that led to headaches and

provided a great night’s sleep is the formula for creating a new, sustainable source of revenue growth.

• Why today’s digital health market is hot and why so many people are missing the boat

• The dirty little secret about commercialization

• 5 essential skills

• Inspiration and application

• What to do next

THE DIRTY LITTLE SECRET OF COMMERCIALIZATION

THE DIRTY LITTLE SECRET about commercialization

The first key to commercialization is uncovering

an unmet market need.

…and applying a radically different

method:evidence-based, lean innovation.

Product-market fit

WHY TODAY’S DIGITAL HEALTH MARKET IS HOT and why so many people are missing the boat

“Medical diagnostics is, at its heart, a data problem -turning images, lab tests, patient histories, and so forth into a diagnosis and proposed intervention…

-Enlitic Founder and CEO, Jeremy Howard

This is the biggest opportunity for positive impact using data that I've seen in my 20+ years in the field.”

positive impact using data

medical app downloads will reach 44 million in 2012 rising to 142 million in 2016 (Juniper)

48.3% 51.7%

so why is it that… …good intentions don’t lead to product use?

75% never used

…paved with good intentions

No business plan survives its first contact with customers.

initial trial, commercialization, integration —Research2Guidance report

It’s because we learned everything backwards in business school.

It’s because we learned everything backwards in business school.

The new launch rules

The myth is

The result is

The fact is

Myth: technology readiness will lead to commercial success

Fact: investment readiness depends on

more factors

Result: stubborn geniuses that refuse to learn new approaches

have bottled up potential that never reaches the market

faith-based vs. evidence-based

The next frontier: tackling “the huge abyss”

early stage projects

huge abyss

optimal growth opportunities

Design thinking

Acceleratorprograms

Internalinitiatives

Hackathons

Open Innovation

Partnerships

• The focus has been on either generating ideas (innovation at the top of the funnel) or scaling ideas that are already in the pipeline (the bottom of the funnel)

• The next frontier is the middle section “the huge abyss”

• The jury is back: evidence-based innovation is the new gold standard for taking ideas from inception through to go-to-market readiness

certainty about a business plan vs. evidence-based pursuit of a scalable business model

apply the scientific method

5 ESSENTIAL SKILLS To lead the pack in digital health

1. Business Model Canvas

2. Product-Market Fit

3. Nail then scale

4. Measure what matters

5. Get out of the building

New methodology

National Science Foundation I-Corps

Harvard Business Review

6,500+ teams

179,692 interviews

5 proven strategies

1. Business Model Canvas

2. Product-Market Fit

5 proven strategies

3. Nail then scale

• Scientific method

• Validation of hypotheses

• Agile development (MVP, small pilots)

5 proven strategies

Nail the idea, then scale it.

Scientific method: minimum viable product

Portfolio Management

Market Impact

Strategic Alignment

Portfolio Management

Rigorous testing and validation to filter ideas

Market ready initiativesEarly stage projects

Find

The solution

Filter Fund

4. Measure what matters

• and, create an agile environment that responds to change

5 proven strategies

5. Get out of the building

High performers get out of the building, invalidate assumptions, and uncover product-market fit.

High Performers interview ~ 2X

more customers.

Average Customer Interviews Per Week

Week Week

Inte

rvie

ws

High Performers interview ~ 2X

more customers.

Average Customer Interviews Per Week

Week Week

Inte

rvie

ws

You can get ahead

• of your market opportunity

VITRUVIAN

how an idea (really) becomes a robust business

INSPIRATION AND APPLICATION Digital health opportunities

Title Text

HealthConsumer

Title Text

that MatterMetrics Innovation

WHAT TO DO NEXT Action steps

Don’t confuse technology readiness

with investment readiness.

Title Text

Silence the stubborn genius within.

Customer Discovery

Dirty little secret Embrace the abyss

Andrea Kates

LaunchPadCentral.comDiscover. Validate. Accelerate.