Ls InnoBiotech

#lsinn

@lionzan

LearningStartupFrom Business_Idea to Business_Venture

«Inventors - Entrepreneurs»Lean Startup, Customer Development, Pretotyping

Leonardo Zangrando, MBA, MEng LearningStartup Coach

December 2012 LearningStartup

30 Nov 2012 ©2012 Leonardo Zangrando, LearningStartup 2

#lsinn

@lionzan

● Mechanical Engineer, MBA

● First Level Degree in Pharma & Biotech Licensing – PLG-UK

● Business Management Consulting

● Strategy, Licensing, Marketing & Sales, Production● Pharma/Biotech, Wines & Spirits, Mechanical, Transportation and Logistics

● Training/Coaching

● sales organizations in Pharma and Biotech● institutions supporting innovation and entrepreneurship

● Innovation entrepreneur● founder of LearningStartup, the first Italian, hands-on methodology

supporting innovation and company creation● founder of Pretotype.it, the European website for Pretotyping, the innovation process

developed in Google and used in several startups and Fortune 500 companies● developing Pretotyping adoption in Europe, translated the Pretotype it book to Italian

● Seminars and hands-on workshops for innovation companies

● “Lean” methodology for the validation and implementation of innovation● experimental process for validation - Pretotyping

Leonardo ZangrandoProfile

Pretotype.it


#lsinn

@lionzan

Research Development Industrial ization

ExperimentationClinical trialsPrototyping Optimization

Laboratory JournalExperimental tests

Production SpecsProduct Plans Production plant

Product Development Cycle

What Does It Do? How Is It Made? How Is It Built?

Phase

Activity

Output

Questions


#lsinn

@lionzanMessage

The Inventor / Researcher / Scientist / Engineer

follows a path

to transforman Idea into a Product

The Entrepreneur

follows a path

to transforman Idea into a Business

the Business is the Product of the Entrepreneur


#lsinn

@lionzanBusiness Development Cycle

pre- or early-Start-up Start-up Scale-up

Product/Market Fit Business Model Business Plan

Research Development Industrialization Phase

Activity

Output

Questions What Does It Do? How Is It Made? How Is It Built?


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@lionzan

ValueProposition

Message

CreateValue

DeliverValue

CaptureValue

The Business works around Value

what it does and for whom

how does it create value how the value gets to the customer

how can it extract value


#lsinn

@lionzan

Remember, the Business is the Entrepreneur's “Product”

The Startup does “R&D” on how toCreate, Deliver, and Capture Value

How does the Business Develop ?“ ”Activities

ProductDevelopment

CustomerDevelopment

BusinessModelling

CaptureValue

DeliverValue

CreateValue


#lsinn

@lionzan

Create Value – is it Feasible?

Deliver Value – is it Desirable?

Capture Value – is it Viable?

What do we Look for in Value Perspectives?Focus

Feasibil ity Desirability

ViabilityProfitable

RepeatableScalable

CreateValue

CaptureValue

DeliverValue


#lsinn

@lionzanLet's Put it All Together

pre- or early-Start-up

Start-up Scale-up


Create ValueFeasibility

What does it do? How is it made? How is it doneproduction

ProductDevelopment

Capture ValueViability

How does itmake money?

How does it work? How is it doneoverall business

BusinessModelling

Deliver Value

DesirabilityFor whom?

How to getto them?

How is it donemarketing & sales

CustomrDevelopment

Activity

Output

Questions

Phase Research Development Industrialization


#lsinn

@lionzan

Not enough being a good inventor...

Let's Put it All Together(and here's the inventor again)


Start-up Scale-up




ProductDevelopment




BusinessModelling

Deliver Value


How to getto them?


CustomrDevelopment

Activity

Output

Questions

Phase Research Development Industrial ization


#lsinn

@lionzan

Not enough being a good inventor...

Let's Put it All Together(and here's the inventor again)


Start-up Scale-up




ProductDevelopment




BusinessModelling

Deliver Value


How to getto them?


CustomrDevelopment

Activity

Output

Questions


...you must also think transversally!


#lsinn

@lionzan

The initial startup phase works on theValue Proposition

answering the questions

“What Does the Business Do

and For Whom”

These two pieces must match!

“Product / Market Fit ”


#lsinn

@lionzan“What Does the Business Do...”

Which is the Product

How Does the Business Create Value

Is the product Feasible?

For an Inventorthese are the fundamental questions


#lsinn

@lionzan“...and For Whom ”

Who is the Business' Customer

To Whom Does it Deliver Value

Is it Desirable? (= do they care?)

For an Entrepreneur these are the key questionsThe Customer is a key piece from the very beginning!


#lsinn

@lionzan “From the very beginning! ...but Biotech is different!”Really? Let's think where the Risk is

“What does the business do”

Product

Technology Risk

Can we do it?

“For whom does it do it”

Market

Customer Risk

Will they want it?

In my sector where is the risk?Watch out! Do not underestimate Customer RiskAlso big pharmaceuticals suffered for this mistake

Year 2005 Pfizer Exhubera – inhalation insulinForecast Sales $2bn Actual Sales $12M →Product withdrawn, total loss $2.8bn


#lsinn

@lionzanTragical Errors

Technology Risk

● “But I...”

● I am clearly in a sector where “if you make it they will buy it”

● Before having a working product I can't do anything to verify the market

● I start making it, then someone will sell it

Technology Risk

● “But you...”

● Probably only a truly life-saving cure falls in this category

● It's certainly easier and more satisfying to focus on the things we know and manage better...

● Not taking all responsibility for the success from the beginning is daring too much!


#lsinn

@lionzanTragical Errors


Start-up Scale-up




ProductDevelopment




BusinessModelling

Deliver Value


How to getto them?


CustomrDevelopment

Activity

Output

Questions



#lsinn

@lionzanOK, but how do you do it?

● Product/Market Fit ● Test the market from day one with product concepts or

“Pretotypes” to identify Product/Market Fit

● Minimum Viable Product ● Focus research on getting to MVPs that allow

to test the market ASAP

● Early Customer Development ● Explore from the very beginning adjacent markets

for the use of my technology


#lsinn

@lionzan-Tool-Pretotyping

Pretotype*

Any low-cost, mocked, or virtual version of a product that doesn't exist yet, used to to observe the reactions

of interest and use of customers

Can we validate some market assumption

without using the product but only a mockup of it?

(Think Exhubera)

* Pretotype it book available for free download pretotype.it/english/download


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@lionzan-Tool-MVP Minimum Viable Product–

Minimum Viable Product

The minimum product from which we can

get some relevant information from the market

Can we validate any assumption about the market

before completing product development?


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@lionzan-Activity-Early Customer Development

Validate market assumptions

by interacting with the market from day one

From the Interaction we learn about our customers:

● Who could become our first customer● Which ones could be our customers, which ones not

● Explore and validate the Value Proposition:in what it's better than existing solution, in what it's not?


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@lionzanValidate Assumptions About the Market

● These are the assumptions about which will be the market

we could discover unexplored market(e.g. Sildenafil for angina pectoris)

● we could discover that for some reason the market does not accept our soulution even if it needs it, e.g.

marginally better product “side effects” not considered in our assmptions(relations with other stakeholders, common practice, etc.)

change of consolidated processes● These are also the assumptions we make about the

product, that somehow interact with the market● e.g. Exhubera, use an inhaler for insulin


#lsinn

@lionzanExample Biotech Onco

● Create a product profile and interact early on with potential stakeholder● prepare a product profile including

– delivery– therapeutic progression– interaction with other products– potential collateral effects

● present it to all stakeholders involved in a particular indication, e.g.– oncologists– patients– payers

● Understand how the product could be integrated in the current therapeutic progression: quite often clinical decisions are made on factors other than what molecular target is being targeted by the product.

● Learn more on pretotype.it/industries/biotech


#lsinn

@lionzanWrapping up

● From Inventor to Entrepreneur: get (serious) in business● consider market in the business equation from day one● design product development activities to allow for learning about the market● consider also market aspects not strictly product-related

● Additionally● if I'm a research purist, I SHOULDN'T think of myself as an entrepreneur

(I hurt myself and the others), rather I seek help!● if I'm not taking the market into account because “I don't know how to do it”,

I seek help!● if I look for investors without experience of the sector “so they don't meddle with my

business,” WATCH OUT! (I hurt myself and them) money alone is not enough to get a business off the ground

● I do look for investors that know my sector, I want a hand from who is into the business already, investors who can guide me are worth more than their money


#lsinn

@lionzan

LearningStartupFrom Business_Idea to Business_Venture

Leonardo ZangrandoLearning Startup

[email protected]+39 349 4627 186

Enjoy your startup!

This presentation is available onlearningstartup.org/LSinn-biotech

Ls InnoBiotech

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