business model, customer development, e245, engr245, lean launchpad, lean startup, stanford, startup, steve blank

1. Creating a virtual reality cyber
security focused analytical device to
improve the effectiveness of data and
threat management for a range of
operational applications
Interviews:
Flight Simulator 68
Cyber Security 34
Total 102
Creating a full-motion virtual reality
simulator that will increase pilot
proficiency by making training more
readily available.
WEEK 0 WEEK 10
TEAM:
Luke Fischer
DoD
Isaac Faber
DoD
Mel Susanto
Business
Suguru Azegami
Business
Project SAIL
RESEGMENTING AS LOW COST NEW MARKET

2. • Military aviation units
• Commercial airline
corporations
• General aviation
flight training
academies
• VR hardware
manufactures (Oculus,
HTC, Sony, Microsoft)
• FAA
• Military aviation units for
initial training and mission
rehearsal
• Commercial Aviation
Airlines/ Flight schools for
initial and refresher
training
• General Aviation
Individuals/ Flight schools
for initial and refresher
training
• Reduce pilot error:
give access to pilots to
more readily train in a
flight simulator
• Reduce flight
simulator cost: allow
companies to operate
effective simulators at a
lower per unit cost
• Reduce space
required: enable
customers to practice at
their convenience with a
drastically reduced
footprint
Fixed:
-Hardware required for build
-Software design and engineering
-Development lab/facilities
Variable:
-Service or Product based sales structure
-Manufacturing production process
• Hardware sales (or lease) revenue
• Software licence to third party simulator developers
• Monthly subscription fee for simulator software/data analytics
function/training management tool
• Software Engineering: -
create an interactive/
immersive interface
-track pilot data
• Mechanical Engineering:
-create a modular cockpit to
fit the needs of many aircraft
• FAA Accreditation
• Direct contact
through training site
visits
• Ads
• Social Media
• VR mapping of flight
decks
• FAA simulator
specifications
• Manufacturing
facilities to develop
prototype
• Direct Sales
• Sales consultants
• Mobile marketing
1
2
3
4
5
6
7
8
9
WeekBusiness Model Canvas
10

3. • Military aviation units
• Commercial airline
corporations
• General aviation
flight training
academies
• VR hardware
manufactures (Oculus,
HTC, Sony, Microsoft)
• FAA
• Military aviation units for
initial training and mission
rehearsal
• Commercial Aviation
Airlines/ Flight schools for
initial and refresher
training
• General Aviation
Individuals/ Flight schools
for initial and refresher
training
Fixed:
-Hardware required for build
-Software design and engineering
-Development lab/facilities
Variable:
-Service or Product based sales structure
-Manufacturing production process
• Hardware sales (or lease) revenue
• Software licence to third party simulator developers
• Monthly subscription fee for simulator software/data analytics
function/training management tool
• Software Engineering: -
create an interactive/
immersive interface
-track pilot data
• Mechanical Engineering:
-create a modular cockpit to
fit the needs of many aircraft
• FAA Accreditation
• Direct contact
through training site
visits
• Ads
• Social Media
• VR mapping of flight
decks
• FAA simulator
specifications
• Manufacturing
facilities to develop
prototype
• Direct Sales
• Sales consultants
• Mobile marketing
1
2
3
4
5
6
7
8
9
WeekWhat We Thought: Value Proposition
• Reduce pilot error!:
give access to pilots to
more readily train in a
flight simulator
10
+
=

4. • Military aviation units
• Commercial airline
corporations
• General aviation
flight training
academies
• VR hardware
manufactures (Oculus,
HTC, Sony, Microsoft)
• FAA
• Reduce pilot error:
give access to pilots to
more readily train in a
flight simulator
• Reduce flight
simulator cost: allow
companies to operate
effective simulators at a
lower per unit cost
• Reduce space
required: enable
customers to practice at
their convenience with a
drastically reduced
footprint
Fixed:
-Hardware required for build
-Software design and engineering
-Development lab/facilities
Variable:
-Service or Product based sales structure
-Manufacturing production process
• Hardware sales (or lease) revenue
• Software licence to third party simulator developers
• Monthly subscription fee for simulator software/data analytics
function/training management tool
• Software Engineering: -
create an interactive/
immersive interface
-track pilot data
• Mechanical Engineering:
-create a modular cockpit to
fit the needs of many aircraft
• FAA Accreditation
• Direct contact
through training site
visits
• Ads
• Social Media
• VR mapping of flight
decks
• FAA simulator
specifications
• Manufacturing
facilities to develop
prototype
• Direct Sales
• Sales consultants
• Mobile marketing
1
2
3
4
5
6
7
8
9
WeekCustomer Segments
• Military
Aviation
• Commercial
Aviation
• General
Aviation
10

5. “Usage rate of Army helicopter flight
simulators is only at 50%”
- Wade Bechel, Deputy Director, Army
Simulation
“Need to travel to Denver to conduct
simulator training but the company
pays for it”
- Jamie Law, United Airlines Pilot
“See the possibility of using this on
student to learn the steps.”
- Steve Blonstein, Private Pilot Instructor
1
2
3
4
5
6
7
8
9
Week
10

6. 1
2
3
4
5
6
7
8
9
Week
10
We got out and tested the MVP

7. Military
Commercial
Private
“The military isn’t spending any
more money on simulators right
now.”
- CPT Luke Leininger, PEO-STRI Aviation
“United flys me to Denver and I use
the best simulators already.”
- Greg Smith, United Pilot
“We spent 5 years in development
and are not making any money”
- Fly This Sim, CEO
1
2
3
4
5
6
7
8
9
Week
10

8. ● Market analysis was key
● Customer purchase insights helpful
● Comparable company CEO interview
essential
1
2
3
4
5
6
7
8
9
Week
10
Mid-Point Lessons Learned

9. ● Customer interviews: ‘If you were doing
this for cyber we would be interested’
● Heard the same message from nearly
every interview for a week
● Untapped potential of VR for data
visualization
1
2
3
4
5
6
7
8
9
Week
Cyber security VR 10
The LEAP

10. 1
2
3
4
5
6
7
8
9
Week
10
Business Model Canvas

11. Fixed:
-Hardware required for build
-Software design and engineering
-Development lab/facilities
Variable:
-Service or Product based sales structure
-Manufacturing production process
1
2
3
4
5
6
7
8
9
WeekWhat We Thought: Customer Pain Point
• Direct contact
through site visits
• Industry web traffic
• Face to Face
interaction (cold calls)
• Sales Force Reps
• Direct Sales
• Win contracts
• Sales consultants
• Provide improved
data visualization and
mapping and threat
mitigation
• Provide a VR
workspace that allows
more efficient
management of cyber
related tasks
(offensive, defensive
and network admin)
• Software Engineering: -
Integrate software for an
interactive/ immersive
interface
- Custom Integration
• Mechanical Engineering:
-create a modular workspace
to fit the needs of many
users
• Marketing
• Funding
• Software Engineers
• Manufacturing
facilities to develop
prototype
•Intellectual Property
•Dir of Govt Programs
Liaison
• Military R&D
organizations (AFRL
and ARL)
• VR hardware
manufactures (Oculus,
HTC, Sony, Microsoft)
• DIUx
• In-Q-Tel
• Hardware sales
• Software sales
• Hardware/software support contracts
CUSTOMER SEGMENT
• Military - US Cyber
Command
• Commercial cyber
defense
10
VALUE PROPOSITION
• Provide improved
data visualization &
mapping and threat
mitigation
• Provide VR
workspace that allows
more efficient
management of cyber
related tasks

12. “Enormous amounts of data are
very challenging for analysts
to visualize”
- LTC Carl Gosset
● Immediate excitement when shown the
possible product
● Financial resources available
Military
1
2
3
4
5
6
7
8
9
Week
1010
“If you could ingest data we could
get you on our contract right
now”
- Brandon White, Zeuss

13. “We already have so much to do;
adding something that gives us
more work is not good”
- Kevin Culberg
● Focusing on improving the analyst is a key
distinction
● There are a large amount of existing tools
that are under utilized
Commercial
1
2
3
4
5
6
7
8
9
Week
1010

14. Quickly Identified Pain Points
Sensor
Sensor
Sensor
Sensor
Grid
Data
Repository
1 Billion Events
Per Day
Data Filter
(Rules)
3 million events
Per Day
Smart Data
Filter (ML)
1000s of events
Per Day
?
True
False
Machine Machine Machine Human
Existing Tools:
Simple Viz/Event
tables and CL
Typical
Analyst Shift
Event
Triage
1000s of events
Per Day
Sift Events in Que (80%)
Document (15%)
Hunt (5%)
1
2
3
4
5
6
7
8
9
Week
10

15. Cyber Security MVP
1
2
3
4
5
6
7
8
9
Week
10

16. TAM = $74 billion
(as of 2016)
SAM = $7 billion
(DOD Cyber Budget)
Target market
= $460 million
(USCYBERCOM)
● Global cybersecurity market
will grow to $102 billion in
2020 from $74 billion in
2016*
(CAGR(’16-’20): 8.4% )
● DOD budget will increase
by 15% from 2016 to 2017
*Source: IDC report,
Cyber Security Market Size

17. ◇ Cyber Security sector is exciting and has significantly
greater resources than the simulator market
◇ This is the perfect time to build a virtual reality business
exploiting the gaps in existing application areas
◇ We are applying to summer incubators to work on building
the first prototype and perfect product market fit
What’s Next?

18. Thank You!