business model, business model canvas, columbia, customer development, lean launchpad, lean startup, steve blank

1. Customer Discovery
Total interviews to date: 62 Since last class: 11
# Green residential developers with energy saving features: 6
# Commercial developers to attract green tenants: 12
# Architects, construction managers: 9
# Engineering materials researchers: 13
# End users: 16
# Competitors: 6
More than a window controlling the light, it builds an energy-saving lifestyle.
Team Members
Fen Zhang – Technology
Yalan Hu - Marketing
Jixiang Liu – Financial Analysis
Jin Fan - Real Estate Professional
Team 2, Cohort 1

2. Lean Launch Pad 2016.01.11
Key Partners Value PropositionKey Activities Customer
Relationships
Customer Segments
ChannelsKey Resources
Revenue StreamsCost Structure
• Real estate
developers
• Construction material
vendors
• Building architects
• Interior designers
• Construction
contractors
• Design, produce, supply
chain management
• Marketing to end users
and owners
• Differentiate from
traditional glass market
• Creative ongoing
customer feedback
• Product optimization
• Advertisement
• Social medias
• Trade shows
• Industry conferences
• Public relations
• Professional associations
• Customer services
• Referrals
End users
• Full-time professionals
need multi-function office
environments
• Seniors require
convenient lifestyles
• Healthcare buildings with
high hygiene requirements
• Commercial buildings
with large HVAC energy
consumption
• Residents need intelligent
lifestyles and auto control
Direct sale & dealership
• Regional
• Global
Professional alliance
• Designers alliance
• Contractors alliance
• Real Estate alliance
• Design
• Technology
• Community creation
• Platform
• Fixed Operational costs for product development and maintenance
• Fixed Operational Overhead costs (rent, utilities, etc.)
• Variable costs associated with product design, R&D and marketing
• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)
• Ongoing maintenance service ( Charged to owner or tenants)
• Dynamic pricing
Owners
• Technology companies
• Finance industry
• Real estate developers
• Building material retailers
• Facility management
company
• Cost Sensitive, but want
intelligent lifestyles
• An energy‐effective way
to control sunlight without
shades or blinds
• Manage glare and heat
while maintaining a
connection to the
outdoors
• Increase the living
standards and move
towards the intelligent
household
• One in all solutions for
different scenarios and
requirements for residents
• Saves Time /
Convenience
• Adaptable
• Cheaper life cycle cost
• Customized design
• Intelligent lifestyles
Day 1 Canvas

3. Lean Launch Pad 2016.01.15
Customers
End users
Developers
Residential Commercial Corporate
Build and sold
Budget constraint
Feature by green
residential
High end office
buildings
Mid-market
Not sensitive to green
Small to middle size
Small-market
Fortune 500 with CSR
What we thought
What we land

4. Lean Launch Pad 2016.01.12
Key Partners Value PropositionKey Activities Customer
Relationships
Customer Segments
ChannelsKey Resources
Revenue StreamsCost Structure
• Real estate
developers
• Construction material
vendors
• Building architects
• Interior designers
• Construction
contractors
• Design, produce, supply
chain management
• Marketing to end users
and owners
• Differentiate from
traditional glass market
• Creative ongoing
customer feedback
• Product optimization
• Advertisement
• Social medias
• Trade shows
• Industry conferences
• Public relations
• Professional associations
• Customer services
• Referrals
End users
• Full-time professionals
need multi-functional
office environments
• Seniors require
convenient lifestyles
• Healthcare buildings with
high hygiene requirements
• Commercial buildings with
large HVAC energy
consumption
• Residents need intelligent
lifestyles and auto control
Direct sale & dealership
• Regional
• Global
Professional alliance
• Designers alliance
• Contractors alliance
• Real Estate alliance
• Design
• Technology
• Community creation
• Platform
• Fixed Operational costs for product development and maintenance
• Fixed Operational Overhead costs (rent, utilities, etc.)
• Variable costs associated with product design, R&D and marketing
• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)
• Ongoing maintenance service ( Charged to owner or tenants)
• Dynamic pricing
Owners
• Technology companies
• Finance industry
• Real estate developers
• Building material retailers
• Facility management
company
• Cost Sensitive, but want
intelligent lifestyles
Day 2 Canvas
End users
• An energy‐effective way to
control sunlight without
shades or blinds
• Manage glare and heat
while maintaining a
connection to the outdoors
• Increase the living
standards and move
towards the intelligent
lifestyles
• Customized design and
compatible with various
styles
Owners
• Reduced life cycle cost
• Reduced energy
consumption fee
• Value add for building
tech features and brand
• Increase corporate social
responsibility
• Increase tenants
satisfaction
+
+
+
+
+

5. Lean Launch Pad 2016.01.15
What we thought: Customer Segments
Hypothesis Experiments
1 2
• Interviews
• Energy
modeling
analysis
• Financial
analysis
• Developers/Owner
s are willing to pay
for incremental
cost to save
building operation
cost
• Architects want to
try and
recommend this
window in the
planning stage
Results
3
• To provide
developers about the
energy saving and
reduced operation
cost
• Provide case study
and energy modeling
analysis to
developers
• Pilot project onsite
visit
Pivot
4
• Developers are
willing to pay if the
saving could save
more operation cost
• Architects like to try
based on pilot
project and energy
modeling analysis
Pivot

6. Lean Launch Pad 2016.01.15
What we learned: Customer segments
Green residential
developers with
energy saving
features
Manufactory
companies with
corporate social
responsibility
Commercial
developers to
attract green
tenants
The user may not be the decision maker, figuring out who we
should approach to is essential.

7. Lean Launch Pad 2016.01.13
Key Partners Value PropositionKey Activities Customer
Relationships
Customer Segments
ChannelsKey Resources
Revenue StreamsCost Structure
• Real estate
developers
• Construction material
vendors
• Building architects
• Interior designers
• Construction
contractors
• Design, produce, supply
chain management
• Marketing to end users
and owners
• Differentiate from
traditional glass market
• Creative ongoing
customer feedback
• Product optimization
• Advertisement
• Social medias
• Trade shows
• Industry conferences
• Public relations
• Professional associations
• Customer services
• Referrals
End users
• Full-time professionals
need multi-functional
office environments
• Seniors require
convenient lifestyles
• Healthcare buildings with
high hygiene requirements
• Commercial buildings with
large HVAC energy
consumption
• Residents need intelligent
lifestyles and auto control
Direct sale & dealership
• Regional
• Global
Professional alliance
• Designers alliance
• Contractors alliance
• Real Estate alliance
• Design
• Technology
• Community creation
• Platform
• Fixed Operational costs for product development and maintenance
• Fixed Operational Overhead costs (rent, utilities, etc.)
• Variable costs associated with product design, R&D and marketing
• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)
• Ongoing maintenance service ( Charged to owner or tenants)
• Dynamic pricing
Owners
• Fortune 500 companies
with corporate social
responsibilities
• Commercial real estate
developers to attract high
profile tenants
• Residential real estate
developers with energy
saving and intelligent
lifestyle strategies
Day 3 Canvas
End users
• An energy‐effective way to
control sunlight without
shades or blinds
• Manage glare and heat
while maintaining a
connection to the outdoors
• Increase the living
standards and move
towards the intelligent
lifestyles
• Customized design and
compatible with various
styles
Owners
• Reduced life cycle cost
• Reduced energy
consumption fee
• Value add for building
tech features and brand
• Increase corporate social
responsibility
• Increase tenants
satisfaction
+
+
+
+
+
+
+
+

8. Lean Launch Pad 2016.01.15
What we thought: Value Proposition
Hypothesis Experiments
1 2
• Interviews
• Energy
modeling
analysis
• Financial
analysis
• Reduced life cycle
cost
• Reduced energy
consumption fee
• Value add for
building tech
features and brand
• Increase corporate
social
responsibility
• Increase tenants
satisfaction
Results
3
• Increase the energy
saving performance
• Reduce the
production cost
• Market this product
to meet EPA
standards or LEED
standards
• Sponsor target
company CSR
programs
Iterate
4
• Clients
acknowledge
energy saving in
special regulation or
evaluation system
• Cost reduction and
life cycle saving are
critical to clients
• Large manufacturer
companies buy-in
Corporate Social
Responsibility(CSR)
Iteration

9. Lean Launch Pad 2016.01.15
What we learned: Value Proposition
1
Customer Archetype
• Tenets/End Users
• Developers
• Architect
2
Key Resources &
Partners
• Rent a batch in a glass
manufacturing factory
3
Developers
Users
Environment /
Community
Value Propositions
• For end users: clear
view, user friendly
• For owners: cost and
energy efficiency
1

10. Lean Launch Pad 2016.01.15
Key Partners Value PropositionKey Activities Customer
Relationships
Customer Segments
Channels
Key Resources
Revenue StreamsCost Structure
• Real estate
developers
• Construction material
vendors
• Building architects
• Interior designers
• Construction
contractors
• Design, produce, supply
chain management
• Marketing to end users
and owners
• Differentiate from
traditional glass market
• Creative ongoing
customer feedback
• Product optimization
• Advertisement
• Social media
• Trade shows
• Industry conferences
• Public relations
• Professional associations
• Customer services
• Referrals
End users
• Full-time professionals
need multi-functional
office environments
• Seniors require
convenient lifestyles
• Healthcare buildings with
high hygiene requirements
• Commercial buildings with
large HVAC energy
consumption
• Residents need intelligent
lifestyles and auto control
Direct sale & dealership
• Regional
• Global
• Whole sellers(Existing
glass selling channels)
• Sales man(Key account)
Professional alliance
• Designers alliance
• Contractors alliance
• Real Estate alliance
• Design
• Technology
• Community creation
• Platform
• Fixed Operational costs for product development and maintenance
• Fixed Operational Overhead costs (rent, utilities, etc.)
• Variable costs associated with product design, R&D and marketing
• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)
• Ongoing maintenance service ( Charged to owner or tenants)
• Dynamic pricing
Owners
• Manufactory companies
with corporate social
responsibilities
• Commercial real estate
developers to attract high
profile tenants
• Residential real estate
developers with energy
saving and intelligent
lifestyle strategies
Day 4 Canvas
End users
• An energy‐effective way to
control sunlight without
shades or blinds
• Manage glare and heat
while maintaining a
connection to the outdoors
• Increase the living
standards and move
towards the intelligent
lifestyles
• Customized design and
compatible with various
styles
Owners
• Reduced life cycle cost
• Reduced energy
consumption fee
• Value add for building
tech features and brand
• Increase corporate social
responsibility
• Increase tenants
satisfaction
+
+
+
+
+
+
+
+
+
+

11. Lean Launch Pad 2016.01.15
What we thought: Channels
Hypothesis Experiments
1 2
• Interviews/Me
mo
• Show the
MVP
• Pricing
strategies
• Direct Selling—
Selling
representatives—
Customized
product and
integration system
• Whole sellers—
Having various
products—Easy
comparison
Results
3
• Figure out the
potential margin
percentage and
cooperation methods
with whole sellers
• Design the
commission, supply
chain, AR days and
after sell service
Iterate
4
• Whole sellers
are fine to sell
our products
once the margin
and volume is
large
• Direct selling will
focus on key
account clients
Iteration

12. Lean Launch Pad 2016.01.15
What we learned: Smart Windows Channels
Manufacturer
National
Distributor
Wholesaler Retailer Customer
Wholesale costs
Markup
Allowances
Payment
guarantees
Payments
Bills Credit
guarantees
Payment
guarantees
Return rights
Credits
Formulations
& Packaging
Raw Materials
Manufacturing
R&D &
Regulation
Product Sales & Distribution ----- Key Account

13. Lean Launch Pad 2016.01.15
What we thought: Get Strategies
Hypothesis Experiments
1 2
• Interviews
with
customers
• Customer
Acquisition
Cost (CAC)
• Analysis
Lifetime Value
(LTV)
• Analysis
Paid Demand
Creations
• Trade Shows
• Public Relations
• E-mails/Direct
Mails
• SEM
Earned Demand
Creations
• Conferences
• Blogging/Guest
Articles
Results
3
Iterate
4
Based on the
interviews so far,
we found that the
most common
methods that our
Smart Windows
should adopt on:
• Trade Shows
• Public Relations
(Magazines on
Glass Industry)
• Bloggings
However, our
current
interviewees do not
respond to the
other methods
• To acquire a
repeatable and
scalable
business model
on the Get
Strategies. We
should interview
more customers
and ask them
how do they
know the glass
products.
• After we acquire
the detailed
information, we
can test whether
CAC < LTV
Iteration

14. Lean Launch Pad 2016.01.15
What we learned: Get Strategies
E-mail/Direct Mails
Search Engine
Marketing (SEM)
Conferences
Blogging/Guest Articles
Trade Shows
Viral-
loop
Awareness
Interest
Consideration
Purchase

15. Lean Launch Pad 2016.01.15
What we thought: Revenue model
Hypothesis Experiments
1 2
• Pricing
analysis
• Interviews
• The product IP and
smart functions pay
for the profits
• End users has the
motivation to pay
ongoing maintenance
fee
• The big data we
collect could provide
value add to third-part
institutions
Results
3
• Reduce the raw
material and
production cost
• Scalable
development
• Cooperate with
large glass
manufacturer
Iterate
4
• Customer could
pay premium
• Customer need
quantified
analysis
• Customer need
financial
feasibility
Iteration

16. Lean Launch Pad 2016.01.15
What we learned: COST / PROFIT ANALYSIS
Raw active
ingredient
Manufacturing &
Packaging
Profit + R&D + License fee Distributor
$50/Sqm *$37.5
%25 cut
$6 ~$17.5 ~$12.5
Enduser
Our revenue List price
Per unit cost and profit estimation
Direct Sales Revenue Model
* Competition
• SAGE ($55/sqm)
• View Glass($52/sqm)
• Econtrol (($56/sqm)
• Viracon(($54/sqm)
• Hartung Glass Industries(($53/sqm)
$14
%35 cut%28 cut%12 cut

17. Lean Launch Pad 2016.01.15
Key Partners Value PropositionKey Activities Customer
Relationships
Customer Segments
Channels
Key Resources
Revenue StreamsCost Structure
• Real estate
developers
• Construction material
vendors
• Building architects
• Interior designers
• Construction
contractors
• Architects
• Design, produce, supply
chain management
• Marketing to end users
and owners
• Differentiate from
traditional glass market
• Creative ongoing
customer feedback
• Product optimization
• Advertisement
• Social media
• Trade shows
• Industry conferences
• Public relations
• Professional associations
• Customer services
• Referrals
End users
• Full-time professionals
need multi-functional
office environments
• Seniors require
convenient lifestyles
• Healthcare buildings with
high hygiene requirements
• Commercial buildings with
large HVAC energy
consumption
• Residents need intelligent
lifestyles and auto control
Direct sale & dealership
• Regional
• Global
• Whole sellers(Existing
glass selling channels)
• Sales man(Key account)
Professional alliance
• Designers alliance
• Contractors alliance
• Real Estate alliance
• Design
• Technology
• Community creation
• Platform
• Souring
• IP
• Fixed Operational costs for product development and maintenance
• Fixed Operational Overhead costs (rent, utilities, etc.)
• Variable costs associated with product design, R&D and marketing
• Variable costs associated with customer acquisition & demand
creation
• Product selling (charged to owner)
• Ongoing maintenance service ( Charged to owner or tenants)
• Dynamic pricing
Owners
• Manufactory companies
with corporate social
responsibilities
• Commercial real estate
developers to attract high
profile tenants
• Residential real estate
developers with energy
saving and intelligent
lifestyle strategies
Day 5 Canvas
End users
• An energy‐effective way to
control sunlight without
shades or blinds
• Manage glare and heat
while maintaining a
connection to the outdoors
• Increase the living
standards and move
towards the intelligent
lifestyles
• Customized design and
compatible with various
styles
Owners
• Reduced life cycle cost
• Reduced energy
consumption fee
• Value add for building
tech features and brand
• Increase corporate social
responsibility
• Increase tenants
satisfaction
+
+
+
+
+
+
+
+
+
+

18. Lean Launch Pad 2016.01.15
Day 1 – Interview
Summary
6
1
5
End Users Professionals
Building
Developers
Architects Competitors

19. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
76
1
2
16
Day 2 – Interview
Summary

20. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
7 76
3
16
Day 3 – Interview
Summary

21. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
11
1010
4
16
Day 4 – Interview
Summary

22. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
16
11
13
6
16
Day 5 – Interview
Summary

23. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
16
11
13
6
16
Day 5

24. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
16
11
13
6
16
Day 5Architects Anndy Ma
Art Miccio
Profession
als
Dr. Wheeler
Dr. Fan Yang
Dr. Carver
Glass
Industry
Competitor
Della Jones
Sebastian
Sancheg
….
General
Contractor
Amy Zhen
Marta Calderia
……

25. Lean Launch Pad 2016.01.15
End Users Professionals
Building
Developers
Architects Competitors
16
11
13
6
16
Day 5
Developer Tao Williams
Renny Clark
Jenny Martin
Hawkinson
Alic Lian
Shihka
Manuel Shvartz
Nabila Perez
Matthew Lohry
…

26. Lean Launch Pad 2016.01.15
Commercial Building
Developer
LEED Building
Project Developer
Public/Municipal
Building Developer
General ContractorSub Contractor
Architecture Office or
Building Planning
Consultant
SMART
WINDOWS
(Supplier)
Hire
Sign the
contract
Hire and
Manage
Cooperation
2.
Marketing
1.
Marketing
and selling
Distributing
WHAT WE LEARNED:

27. Lean Launch Pad 2016.01.15
Competitor Landscape
Fabrication
Manufacturer
New Material
Glass
Manufacturer
Auto Glass
Manufacturer
Commercial
Glass
Manufacturer
WHAT WE LEARNED:

28. Lean Launch Pad 2016.01.15
Next Big
Picture
Capital Intensive –
Fundraising
Intellectual
Property
LEED Approval
Strategic
Partnership
Distribution
Channel
Customer
exploration

29. Lean Launch Pad 2016.01.15
Next Step…
• Revenue Model
• Validate feasible volume prices via commercial green building developers
• Approach key players through the existing distribution channel
• Maintenance fee, data sharing service
• Build MVPs
• Physical prototype with basic functions (dynamic control, energy saving, outdoor
connection)
• Animation video with additional features (Internet of things, big data collection)
• Start LEED approval process
• Partnerships
• Initiate conversations with major glass manufacturers
• Form strategic alliance with major LEED building project developers
• Build up cost structure
• Quantify costs on raw materials, manufacturing process, equipment investment, marketing
spending
• Initiate fundraising

30. Lean Launch Pad 2016.01.15
MVP Demonstration

31. Lean Launch Pad 2016.01.15

32. Lean Launch Pad 2016.01.15
Appendix - Smart Glass Comparison
Electrochromic
 Leading Electrochromic
Smart Glass Suppliers:
• SAGE – acquired by the
leading glass manufacturer
Saint-Gobain in 2012
• View – raised $150M in 2015
 Both have doubled their
pipelines in the past year
 Mostly direct sale with both
global and regional
representatives
 Pricing: 2-3 times of regular
glass
 Major building customers:
• Commercial
• Institutional
• High-end residential

33. Energy-Efficient Smart Window

34. Lean Launch Pad 2016.01.15
Hypotheses Experiments Pass/Fail Test
Channels
• Direct Selling—Selling representatives—
Customized product and integration system
• Whole sellers—Having various products—
Easy comparison
• Interviews/Memo
• Show the MVP
• Pricing strategies
• Retailers and wholesalers are
willing to sign Memo, pass.
OTW, fail.
• Majority(>70%) Professionals
agree to use our products in
pilot projects, pass. OTW, fail.
Customer Relationships - Get Strategies
Paid Demand Creations
• Trade Shows
• Public Relations
• E-mails/Direct Mails
• SEM
Earned Demand Creations
• Conferences
• Blogging/Guest Articles
• Interviews with
customers
• Customer Acquisition
Cost Analysis (CAC)
• Lifetime Value
Analysis (LTV)
• Interviews and investigations
into the current similar market,
those methods that they use
more often and productive, then
we adopt them, OTW, get rid of
the methods.
• Calculate the CAC and LTV and
compare them. If CAC < LTV,
then the methods are passed.
Revenue model
• The product IP and smart functions pay for
the profits
• End users has the motivation to pay
ongoing maintenance fee
• The big data we collect could provide value
add to third-part institutions
• Pricing analysis
• Interviews
• Owners are willing to pay
energy saving premium, pass.
OTW, fail.
• End users are willing to
purchase ongoing service,
pass. OTW, fail.
• Third party reckon our data
quality, pass. OTW, fail.

35. Lean Launch Pad 2016.01.15
Smart Windows
Market type
• Existing market
• Re-segmented

36. Lean Launch Pad 2016.01.15
Smart Windows Market Size Estimates
Total
Available
Market
Target
Market
Served
Available
Market
Total Available Market: $61.5B
(Total building glass industry demand)
Served Available Market (How many people
need/can use product?): $8.61B
(Hypothesis: 10% of seg. 1, 2, 20% of seg. 3, 4, 5)
Target Market (first 3 years): $4.3B
(5% of segment 1,2 and 10% of seg. 3,4,5)
Items Segment 1 Segment 2 Segment 3 Segment 4 Segment 4
Description Commercial Residential Hotels Hospitals Plants
Size * 30% 30% 15% 10% 15%
People/
Influences
Real Estate developers
Designers
Home owners Developers/
Designers
Hospitals/
Designers
Owners/
Designers
* Estimated based on new construction projects world wild

37. Lean Launch Pad 2016.01.15
Building Energy Simulation
Geometry Model for simulation
Comparison of various active design strategies

38. Lean Launch Pad 2016.01.15
Financial payback
-
50.0
100.0
150.0
200.0
250.0
2008年 2009年 2010年
单位面积年用电量（kWh/(m2·a)）
Annual Savings:
 601,600 USD
Cost:
 1,460,000 USD
Payback:
 2.43 years
Electric Consumption 2016 2017 2018
Total Elec.Consumption
(kWh)
37577090 35524440 33525380
Common Area Elec.
Consumption (kWh)
17406124 17074900 15951978
Office building total GFA: 173044 m2
2016 2017 2018

39. Lean Launch Pad 2016.01.15
Appendix - Interview Questions & Notes