I N F O L O G I CThe logical approach to harness innovation
Has Patel
President
Infologic, [email protected]
(888) 325 0500 Ext. 100
INFOLOGIC, INC.
25 Palatine # 212
Irvine, CA 92612
www.infologic.com
National Manufacturing Day October 7, 2016
# MfgDay16
The Art & Science ofProduct-Market Fit
Introducing the National Network for Manufacturing Innovation Institutes (NNMIs)
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Copyright © 2009 INFOLOGIC Inc. All rights reserved.
Agenda :White House Call To Action
Part 1:
Product-Market Fit
Part 2:
The National Network for Manufacturing Innovation
Institutes (NNMIs)
“ … Manufacturing Day is an annual celebration of the strength of Americanmanufacturing and an opportunity to educate and motivate the next generationof manufacturers…. This year, we can do even more—that is why, today, theAdministration is launching an effort to inspire the next generation ofmanufacturers and support entrepreneurs manufacturing their firstproduct in the United States…”
Part 1
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What is Product/Market Fit ?
• Product/market fit is the degree to which a product satisfies a strong market demand.
Wikipedia
• Product/market fit means being in a good market with a product that can satisfy that market.
• The life of any startup can be divided into two parts –before product/market fit and after product/market fit
Marc Andreessen
• The concept of product/market fit as a step in between customer validation (step #2 in his book The Four Steps to the Epiphany) and customer creation (step #3)
Steve Blank
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UCICove Startup AssessmentsProduct-Market Fit Categories
Planning
• Product-Market Fit
• Ability to Scale
Team Dynamics
Execution
Total Addressable Market (TAM)
Market Validation
Customer Problem
Solution/Value Proposition (VP)
Lasting Unfair Advantage
Financials/Revenue Model
Exit Analysis
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FACT CHECK : Product Development Model (Source : NASA/DoD/GAO)
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FACT CHECK : Market Development Model(Source : Steve Blank)
Source : The Four Steps to the Epiphany by Steve Blank
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FACT CHECK : Product/Market Fit Methodology(Source : DoD/GAO)
Definitions
KP 1 : Technologies and resources match market needs
KP 2 : Technologies/Design performs as expected
KP 3 : Production can meet cost, schedule, and quality targets
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Suggested Product/Market Fit Model
Product Development
Market Development
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Customer Solution/Value Proposition Model(Source : Infologic, Inc.)
Product-as-a Product
Product-as-a Service
Product-as-a Process
Focus on products as digital items, such as Sensor-based productsand offer under CAPEX
Combine Product with a Service, and offer under OPEX using Cloud, Mobile features
Combine Product, Service, augmented reality, Social and Analytics
Integrate your offerings with third party offerings – OEMs, partners and competitors
Product-as-a Business Model
Product Cost
© 2016 Infologic, Inc. All rights reserved.
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FACT CHECK : Product-as-a-Service Model
The Internet of Things Is Here, and It Isn’t a Thing (Wall Street Journal – 8/21/2016)
“…Everyone is waiting for the Internet of Things. The funny thing is, it is already here. Contrary to expectation, though, it isn’t just a bunch of devices that have a chip and an internet connection. The killer app of the Internet of Things isn’t a thing at all—it is services. And they are being delivered by an unlikely cast of characters: Uber Technologies Inc., Solar City, ADT Corp., and Comcast, to name a few…”
The Digital Manufacturer – Resolving the Service Dilemma (Cisco Executive Survey - 11/2015)
“…In a climate of digital disruption and global market pressures, many manufacturers want to differentiate with new service-oriented revenue models, especially those that rely on connected machines and machine as-a-service. In a Cisco survey of more than 600 senior executives in 13 countries—from both industrial machine builders and end-user manufacturers—86 percent said the transition from product-centric to service-oriented revenue models is a core part of their
growth strategies…“
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"Innovation: The Classic Traps” professor RosabethMoss Kanter of the Harvard Business School quotes …
“ the most common mistake companies make
is to apply traditional corporate processes to
new projects. “
FACT CHECK : Product-as-a-Process Model
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The world’s largest taxi company – owns no vehicles
The world’s most popular media company – creates no content
The world’s largest hospitability company – owns no real estate
How Smart, Connected Products Are Transforming Companies
HBR Research Review
by Professor Michael E. Porter and James E. Happelmann – 10/2015
FACT CHECK : Product-as-a-Business Model
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A Profitable Venture Equation
A Profitable Venture with Lasting Unfair Advantage
(may be an Unicorn !)
Profitable Venture = f (Balanced Product/Market Fit + Innovative Value Proposition)
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Innovation Ecosystem :Power to Collaborate & Innovate
Part 2
Customers
Established
Future
AcademiaResearch
Universities Colleges
Business Partners
OEMs
Venture
Competitors
Education & Training
TechnologiesR&D/IP
Test Beds
Government
Federal
State
Local
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Global Innovation Snapshot : 2016 R&D Forecast (Source : Industrial Research institute and R&D Magazine)
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Why Manufacturing & Innovation ?( Source : NIST )
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Federal Government Act : H.R.2996 (RAMI)Revitalize American Manufacturing and Innovation Act of 2014
(Source : NIST/DoD)
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National Network for Manufacturing Innovation Institutes (NNMIs)
www.manufacturing.gov
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NNMIs Positioning :Valley of Death & Innovation Ecosystem
R&D Portfolio
Technology Needs:
Manufacturing Enterprises
Wasted R&D EffortsUnmet End user technology needs
Deterioration of US Innovation Leadership
NNMIs
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NNMI : Overview
Elevator Speech
• Publish-Private Partnership
• Applied Research + Education/Training
Goal
• Create 45 NNMis during the next decade ; As of Today - 9
• Lead by Universities/Non-Profits
Public-Private Partnership
• Federal agencies invest $70 - $ 120 Million over 5 Years / per NNMI
• Industry – Minimum Cost Share (1:1); Industry investing significantly more
• Interested Agencies – DoD, DoE, NIST (more to come …..)
• Time Frame - 5 Years Federal Commitment; Independent after 5 years
Technology Focus :
• Advanced Manufacturing : Advanced Sensing, Controls, and Platforms for Manufacturing (ASCPM); Visualization, Informatics and Digital Manufacturing (VIDM); and Advanced Materials Manufacturing (AMM).
• Emerging Technology Areas : Advanced materials manufacturing, engineering biology to advance bio manufacturing, bio manufacturing for regenerative medicine, advanced bio products manufacturing, and continuous manufacturing of pharmaceuticals.
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NNMI : Major Activities(Source : DoD)
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NNMI Ecosystem Overview(Source : NIST)
One of the goals of NNMIs is “ … to help start-ups and small manufacturers to scale up new technologies, accelerate technology transfer to the marketplace, and facilitate the adoption of innovation workforce skills. The network is designed to foster innovation and deliver new capabilities that can stimulate the manufacturing sector on a large scale….” – NIST
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NNMI : Current Locations & Technology Focus(Source : NIST/DoD)
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How to Leverage NNMIs – National Assets
Conceive
Set Strategies
Develop
Implement
Analyze
Suggested Steps
• Analyze RoI• Be Proactive !
• Participate in Project Call teams, Training and Test Beds
• Network with Current/Future Partners
• Become Member or Observer and Participate in Selected NNMIs Project Calls
• Develop Strategies & Include in your Business Plan
• Product-Market Development plans
• Visit www.manufacturing.gov• Do current/future NNMIs fit in your
venture?
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Conclusions & Takeaway
Product/Market Fit is essential for Venture Success
Adapt an innovative approach in developing Customer Value Proposition (VP)
Leverage Innovation Ecosystems (e.g. NNMIs)
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Call to Action
STARTUPS, ENTREPRENEURS & INTRAPRENEURS
Adapt one of the goals to add “Third Dimension” to the American
Innovation Ecosystem
AMERICAN INNOVAITON ECOSYSTEM STAKEHOLDERS
Develop tools, products and services for the above Group to
achieve their goal
I N F O L O G I CThe logical approach to harness innovation
Questions ?
Has Patel
Infologic, [email protected]
(888) 325 0500 Ext. 100
INFOLOGIC, INC.
25 Palatine # 212
Irvine, CA 92612
www.infologic.com
The Art & Science ofProduct-Market Fit
Introducing the National Network for Manufacturing Innovation Institutes (NNMIs)