Opportunity Assessment

– What sort of market are we in?• One sided, two sided

– What is the demand?• Users?• Dollars?

– Does our product/service solve a problem that somebody cares about – enough to change their behaviour and spending?

Competition as an influence

• Pure competition• Oligopoloy• Monopoloy

Nature of Market

How they will react?

What is their product? What are their costs and prices? “What pricing will make them feel

the worst?”

• Map 1: service journey or “day in the life of the customer”

• Map 2: influence ecosystem• Map 3: customer workflow as it impacts the

purchase process

“Service/Product” Journey or “day in the life” of a customer

• “Who Is Your Customer or Customers?”– :idea: Sketch Your Product and the People it “touches”

through it’s usage.

• Often it is difficult to determine who is your customer. The service journey gives you a “top level” insight.

• Link to Mkt R/S course

4

5:Service Journey V0.1:

MAP 1: day in the lifeOf the customer

A day in the life of your customer(think user)

• Once you’ve focused in on who your customer really is, can you describe (and sketch) a day in their life? In detail?

• What do they do? How do they do it?• What are their pains?• And potential gains?• What would change if your product/service

was adopted?

Market Adoptio

n

Key Opinion Leaders (KOLs)

Medical Journals

Continuing Medical

Education

Conferences

Breast Cancer Advocacy Groups

American College of

Obstetricians and

Gynecologists (ACOG)

MammOpticsMarketing

MAP 2: INFLUNCE ECOSYSTEMA draft marketing and sales ecosystemAdd their roles and connections

Customer Ecosystem (A start on channels and customer relationships)

• Can you identify the multiple players in the customer decision network?

• Their roles?• And how they inter-connect?• How are you going to get to your customer?• Information• Access• Physical vs. web/mobile• Map the ecosystem for

– Marketing– Sales– Distribution

• Thinking about Get in Get,Keep, Grow

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

Current market Insurance

Map 3: workflow and customerBehaviour as it impacts buyingdecisions

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

RadiologistMammography

MammOpticsCustomer Workflow

Current market

But what would happen if we replace mammography?

Insurance

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

Radiologist

Mammography

MammOpticsCustomer Workflow

Breast Radiologists

Technicians Hospitals

Loss of jobs

Loss of jobs Eliminates loss leaderPuts emphasis on

biopsies

Insurance

ACOGACS

Doctor specialty

committee

Hospital Administrati

on

Technician

Radiologist

Mammography

MammOpticsCustomer Workflow

InsuranceSame cost as mammography

($140)Reduced number of biopsies

($1000)

ACOG/ACSImproved healthcare(mammography weak

technique)

Insurance

MammOpticsHospital purchasing decision tree

Finding white space:from tech functions to customer benefits

feature feature feature feature

(benefit) (benefit) (benefit) (benefit)

US

Comp 1

Comp 2

Comp 3

Sub 1

Sub 2

Sub 3

etc

Tip 1: include substitutes as well as competitorsTip 2: think about the customer job to be done: pains removed, utility gains madeTips 3: Features are reasons to believe benefit claims

MammOpticsTechnology Comparison

RiskInvasiveness

Resolution

False Pos.

False Neg.

Device Cost

Time Require

d

MammOptics

Mammography

High High .6 cm 25% 30% 20-50k 20 min.

MRI Medium Medium .1 cm 70% 5% 1000k 45 min.

Ultra-Sound Very Low Very Low >.6 cm >30% >40% 5-15k 20 min.

Where is the money coming from?Revenue Model Choices

Bits

Physical

Product

Web Physical

Channel

Direct Sales Products Subscription Upsell/Next Sell

Ancillary Sales:• Referral revenue • Affiliate revenue• E-mail list rentals• Back-end offers

Direct Sales Products Service Upsell/Next Sell

Referrals Leasing

Direct Sales Products Subscription Add-on services Upsell/Next Sell

Referrals

How do we price the product?Pricing Model Choices

How do we price the product?

18

• Product-based pricing• Competitive pricing• Volume pricing• Value pricing• Portfolio pricing• The “razor/razor blade” model• Subscription• Time/Hourly Billing• Leasing

Pricing Models - Physical

Competitors and impact on demand

Your market penetration ambitions?

22

Customer Discovery: Exit Criteria

• What are our customers top problems? – How much will they pay to solve them

• Does our product concept solve them? – Do customers agree? – How much will they pay

• Can we draw a day-in-the-life of a customer – before & after your product

• Can we draw the org chart of users & buyers