using lean startup tools in healthcare
TRANSCRIPT
![Page 1: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/1.jpg)
1
![Page 2: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/2.jpg)
2
![Page 3: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/3.jpg)
Dean Sawyer
• Co-Founder, CEO and CXO of Sentrian, the
world’s first remote patient intelligence platform
aspiring to eliminate all preventable hospitalization
• Advisor to Frost Data Capital and SeedHIT
• Former Senior VP at Allscripts
• Former Chief Business Development Officer at
Physicians Interactive
• Winner of largest business plan contest in the
world
3
![Page 4: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/4.jpg)
• The Lean Startup up isn’t just about how to create a more successful
startup, it’s about how to use Lean Startup tools and methodologies to
improve just about anything we do in any industry
• In this Webinar you’ll learn how to apply the Lean Startup process,
learn how to use Lean tools and hear real-world examples
4
Using Lean Startup Tools in Healthcare
![Page 5: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/5.jpg)
My first use of the Lean Startup
5
• August 2012
• Met Dr. Jack Kreindler at Exponential Medicine Conference with a vision for a new company
• Asked me to be co-founder and CEO
• No technology
• No business model
• Seed funding from Frost Data Capital, a new and unproven incubator and investment vehicle
![Page 6: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/6.jpg)
6
![Page 7: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/7.jpg)
Why do startups and new products fail?
• They spend too much time, money and effort building the
wrong product
• They don’t validate their hypothesis
7
![Page 8: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/8.jpg)
Lean Startup Objective
Systematically eliminate risk and uncertainty from the business plan, product or idea
1. Document your Plan A
2. Identify the riskiest parts of your plan
3. Systematically test your plan
8
![Page 9: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/9.jpg)
The traditional business plan is a form of waste
• Because it’s wrong; includes
dozens of unproven hypothesis
• Incredibly time consuming
• No one reads it
• Not action oriented
9
Waste: Any human activity which absorbs resources but creates no value
![Page 10: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/10.jpg)
Lean Startup uses a one-page Lean Canvas
10
Deconstruct your business model into 9 distinct parts
that are then systematically tested from highest to lowest
risk
![Page 11: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/11.jpg)
Validation stages
Stage 1: Understand the problem – Conduct formal customer interviews or other techniques to understand whether you have a problem worth solving. Who has the problem, what is the top problem, and how is it solved today? Will they pay for it?
Stage 2: Define the solution – With knowledge from Stage 1, take a stab at defining the solution, build a demo that helps the customer visualize the solution and test it with customers. Will the solution work? Who is the early adopter? Does the pricing model work
Stage 3: Validate Qualitatively – Build your Minimal Viable Product (MVP) and soft-launch it to early adopters. Do they realize the unique value proposition? Are you getting paid?
11
![Page 12: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/12.jpg)
12
![Page 13: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/13.jpg)
Validation stages
Stage 1: Understand the problem – Conduct formal customer interviews or other techniques to understand whether you have a problem worth solving. Who has the problem, what is the top problem, and how is it solved today?
Stage 2: Define the solution – With knowledge from Stage 1, take a stab at defining the solution, build a demo that helps the customer visualize the solution and test it with customers. Will the solution work? Who is the early adopter? Does the pricing model work
Stage 3: Validate Qualitatively – Build your Minimal Viable Product (MVP) and soft-launch it to early adopters. Do they realize the unique value proposition? Are you getting paid?
Stage 4: Verify Quantitatively – Launch refined product to larger audience. Have you built something customers want? How will you reach customers at scale? Do you have a viable business?
13
![Page 14: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/14.jpg)
The validation team
• The Problem Team – Mostly involved with “outside-the-building” activities such as interviewing customers, running usability tests, etc. (CEO, CMO)
• The Solution Team – Mostly involved with “inside-the-building” activities such as writing code, running tests, deploying releases, and so on (CTO, Chief Architect)
• The team must have the following combined talent:
✓Product Development - Experience and expertise in the specific technologies you are using (CTO, Chief Architect)
✓Design – Aesthetics and usability (marketing)
✓Marketing – Everything else (CEO)
14
![Page 15: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/15.jpg)
15
The Lean Startup validation cycle
Pivot BEFORE product/market fit, optimize AFTER
![Page 16: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/16.jpg)
Problem Interview structure (“get out of the
building”)
16
![Page 17: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/17.jpg)
Problem Hypothesis: Preventable hospitalizations are the biggest chronic disease problem
17
Validated
![Page 18: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/18.jpg)
Problem Hypothesis: MA plans have the most pain around the preventable hospitalization
problem
18
Validated
![Page 19: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/19.jpg)
Problem Hypothesis: Biggest problem is remotely detecting heath deterioration
19
Invalidated
![Page 20: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/20.jpg)
How is the problem being solved today?
20
![Page 21: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/21.jpg)
Problem exit criteria
1. Identified a problem worth solving
2. Identified customers with the greatest pain
3. Identified the most important components of the problem
4. Can describe how customers are trying to solve the
problem
21
![Page 22: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/22.jpg)
Solution validation objectives
• Confirm early adopters interested in a solution
• Validate how we will solve the top 2-3 problems
• Identify the minimum viable product
• Determine initial pricing model
• Determine customers wiliness to pay for a solution and the
price they will bear
22
![Page 23: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/23.jpg)
Solution Interview structure (get out of the building
again)
23
![Page 24: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/24.jpg)
Sentrian’s first “minimal viable product”
25
Limitations:
• Poor patient selection
• Only focus on one condition
• Single measurement
• Primitive analytics in the form of binary alerts
Results in:
• Missed patient deterioration
• High false alarms
• Staff inefficiency
• Only hours to act
MVP: Product with the highest return on investment versus risk
![Page 25: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/25.jpg)
Sentrian’s first “minimal viable product” resulted in 3 customer commitments
26
![Page 26: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/26.jpg)
Determine initial pricing model and price customers are will to bear
Hypothesis before interviews:
• Devices: Customer would purchase upfront (Capital)
• Analytics: We could charge $10.00 PMMPM
27
Results post interviews:
• Devices: Invalidated - Customer wants to lease devices (PMMPM)
• Analytics: Invalidated - Customers willing to pay $40.00 (PMMPM)
The highest form of validation is a PAYING customer
![Page 27: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/27.jpg)
How viable is your minimal viable segment?
28
![Page 28: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/28.jpg)
Can we scale this business model?
29
4 million members/patients x $1,000 year = $4 billion in annually recurring revenue
![Page 29: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/29.jpg)
Solution exit criteria
1. Identified early adopters with the problem
2. Defined the minimum features needed to solve the problem
3. Identified a price customers are willing to pay
4. Confirmed we can build a business around it
30
![Page 30: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/30.jpg)
Lessons learned
1. Don’t skip problem validation!
2. Some customers don’t know what they want (iPhone)
3. Lean Startup books are B2C focused, must adapt to B2B
and to enterprise software solutions
4. Healthcare regulations makes it more difficult to validate
products but you can get creative
5. Sometimes your MVP is all you need (Craig’s List,
Minecraft)
6. Getting venture capital is easier
7. Board meetings are easier
31
![Page 31: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/31.jpg)
Lean Canvas training tools
32
![Page 32: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/32.jpg)
Lean Stack training tools
33
![Page 33: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/33.jpg)
Questions?
34
Dean Sawyer
Sentrian, Inc
www.sentrian.com
GO FORTH AND VALIDATE!
![Page 34: Using Lean Startup Tools in Healthcare](https://reader034.vdocuments.mx/reader034/viewer/2022051507/58a2dde51a28ab1f238bd92b/html5/thumbnails/34.jpg)
3
Leveraging the revolution in biosensors and machine learning with
the aspiration to eliminate all preventable hospitalization