Part of 2013 Q2 Lean Launch Pad Presentations 0a-Introduction.2013.Q2.pptx 1a-Three_Types_Of_Startup.2013.Q2.pptx 1b-Customer Discovery (problem hypothesis).2013.Q2.pptx 2a-Customer Discovery ( canvas and story ).2013.Q2.pptx 2b-Value_Chain (team specific).2013.Q2.pptx 3a-Customer_Validation.2013.Q2.pptx 3b-GKG-CustomerRelationships.2013.Q2.pptx 4a-EndGame.2013.Q2.pptx

1. Value Chain
“Ecosystem”
“Product Positioning, Pricing & Costing”
1

2. Two Critical Channel Questions
1
2
How do you want to sell your product?
is subtle, but more important than the
first: How does your customer want to
buy your product?
2

3. How Do You Want Your Product to
Get to Your Customer?





Yourself
Through someone else
Retail
Wholesale
Bundled with other goods or services
3

4. How Does Your Customer Want to
Buy Your Product from your
Channel?






• Same day
• Delivered and installed
• Downloaded
• Bundled with other
products
• As a service
• …
4

5. For You?
What Does This Mean?
5

6. Questio
ns
Wino’s
• Do you sell your product direct?
• Is your product bundled with other products?
• Is your product a component of a bigger
product?
• Is your product licensed?
• How do customers/prospects want to buy it?
6

7. Questio
ns
Easygene
• Do you sell your product direct?
• Is your product bundled with other products?
• Is your product a component of a bigger
product?
• Is your product licensed?
• How do customers/prospects want to buy it?
7

8. Questio
ns
Lignin
• Do you sell your product direct?
• Is your product bundled with other products?
• Is your product a component of a bigger
product?
• Is your product licensed?
• How do customers/prospects want to buy it?
8

9. Questio
ns
Ecoli?
• Do you sell your product direct to a user?
• Is your product bundled with other products?
• Is your product a component of a bigger
product?
• Is your product licensed?
• How do customers/prospects want to buy it?
9

10. Questio
ns
•
•
•
•
Tait
Direct to “end user”?
Via naturopath store?
Via “name brand”?
Via “expert testimonial”?
– For what specific segment?
• How do customers/prospects want to buy it?
10

11. Examples
• http://www.slideshare.net/sblank/presentati
on-examples-for-class-5-distribution-channels
11

12. Value Chain
12

13. Value Chain
Direct to End User
List Price
Discounts
Revenue - Actual Price
Profit
+ SG&A
+ R&D
Cost of Goods
(Supply Chain)
13

14. Value Chain
Resellers
List Price
Discounts
Reseller
Profit
Revenue - Actual Price
Profit
+ SG&A
+ R&D
Cost of Goods
(Supply Chain)
14

15. Value Chain
Distributors/Resellers
List Price
Discounts
Reseller
Profit
Distributor
Revenue - Actual Price
Profit
+ SG&A
+ R&D
Cost of Goods
(Supply Chain)
15

16. Value Chain
International Distributors
List Price
Discounts
Reseller
Profit
Distributor
Master Disti
Profit
+ SG&A
+ R&D
Cost of Goods
(Supply Chain)
Revenue - Actual Price
16

17. Value Chain
OEM or IP Licensing
List Price
Discounts
Reseller
Profit
Distributor
Master Disti
Profit
+ SG&A
+ R&D
Cost of Goods
(Supply Chain)
OEM/IP Product is part of
your customers COGs
Reseller
Discounts
Profit
Profit
Distributor
Master Disti
+ of Goods
CostSG&A
+ R&D
(Supply Chain)
Revenue - Actual Price
17

18. Value Chain
OEM or IP Licensing
List Price
Discounts
Reseller
Profit
Distributor
Master Disti
Profit
+ SG&A
+ R&D
Cost of Goods
(Supply Chain)
This stack replicates
(like a fractal
… looks the same at each level)
Revenue - Actual Price
Reseller
Discounts
Profit
Profit
Distributor
Master Disti
+ of Goods
CostSG&A
+ R&D
(Supply Chain)
Reseller
Discounts
Profit
Distributor
MasterGoods
CostProfit
of Disti
+ SG&A
(Supply Chain)
+ R&D
18

19. Value Chain
Excerpt from Reading: “Who Captures Value in a Global Innovation System? The case of Apple's iPod”
19

20. Value Chain
Excerpt from Reading: “Who Captures Value in a Global Innovation System? The case of Apple's iPod”
20

21. Distribution Complexity
Global Systems
Systems Integrators
Evangelists
Marketing Complexity
WANs
Mainframes
Direct Sales
Minis
LANs
VARs
PC Servers
Desktop PCs
Retail
Printers
Keyboards
Service
Technicians
Web, Telesales
Toner
Solution Complexity
21