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Customer	
  Segments:	
  
“Who	
  cares?	
  What	
  do	
  they	
  care	
  
about?	
  How	
  much	
  do	
  they	
  care?”	
  
Value Propositions
Lean	
  Launchpad:	
  Therapeu=cs	
  
Lean Launchpad: Digital Health
	
  
UCSF Entrepreneurship Center
UCSF	
  Entrepreneurship	
  Center	
  
October 1, 2013
October	
  8,	
  2013	
  

	
  
Karl	
  Handelsman	
  
Abhas Gupta, MD
Codon	
  Capital	
  	
  
Mohr Davidow Ventures
@abhasguptamd

Weekly	
  Office	
  Hours:	
  4:30-­‐5:30	
  before	
  class	
  
Customer	
  Segments	
  
Value Propositions
Lean Launchpad: Digital Health
This	
  
UCSF Entrepreneurship Center
Next	
  
October 1, 2013

Week	
  

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

Week	
  
Value Propositions
Lean Launchpad: Digital Health
Customer	
  Segments	
  

UCSF Entrepreneurship Center
October 1, 2013

CONTEXT	
  
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
Overview	
  
Move	
  to	
  External	
  Innova=on	
  	
  
Pharma/Large	
  Biotech/Generic/Specialty	
  
Move	
  from	
  Ver=cal	
  Integra=on	
  to	
  Distributed	
  Opera=ons	
  
CROs	
  fLean Launchpad: Digital Health 	
  Clinical	
  
or	
  toxicology,	
  Outsourced	
  chemistry,	
  CMC,	
  
Customer	
  segments	
  in	
  a	
  given	
  company	
  
UCSF Entrepreneurship Center
	
  Therapeu=c	
  Head,	
  BOctober 1, 2013
usiness	
  Development,	
  Internal	
  Experts	
  
Need	
  to	
  iden=fy	
  the	
  ten	
  companies	
  with	
  highest	
  interest	
  

Value Propositions

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
How does your customer define pains and gains?
Focus	
  on	
  internal	
  roles	
  at	
  company	
  (therapeu=c	
  head	
  vs	
  business)	
  
What	
  are	
  the	
  pains/gains	
  you	
  offer	
  
Internal	
  view	
  of	
  how	
  they	
  fit	
  today	
  and	
  future	
  in	
  your	
  market	
  
Internal	
  view	
  of	
  what	
  they	
  have	
  covered	
  
External	
  view	
  of	
  “high	
  impact”	
  areas	
  where	
  they	
  have	
  needs	
  
External	
  view	
  of	
  “hot”	
  areas	
   Digital Health
Lean Launchpad:

Value Propositions

	
  
	
  

UCSF Entrepreneurship Center
October 1, 2013

REINFORCE:	
  Companies	
  have	
  divergent	
  
and	
  conflic=ng	
  views,	
  and	
  they	
  change	
  
Abhas Gupta, MD
over	
  =me	
  
Mohr Davidow Ventures
@abhasguptamd
Risk	
  Is	
  Our	
  Business	
  
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
Today	
  
•  Value	
  Proposi=on	
  

Value Propositions
Lean Launchpad: Digital Health
•  BMC	
  evolu=on	
  	
   Entrepreneurship Center
UCSF
October 1, 2013

Abhas Gupta, MD
•  What	
  is	
  a	
  Customer	
  Segment	
  

Mohr Davidow Ventures
@abhasguptamd
You	
  are	
  searching	
  
• 
• 
• 
• 
• 
• 

Draw	
  them	
  out	
  
Don’t	
  worry	
  about	
  money	
  
Find	
  out	
  what	
  they	
  care	
  about	
  
Find	
  out	
  why	
  its	
  important	
  
Share	
  something	
  interes=ng	
  
Ask	
  them	
  what	
  you	
  are	
  missing	
  

Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
Mistakes	
  to	
  avoid	
  
•  Want	
  to	
  reach	
  across	
  the	
  job	
  func=ons	
  of	
  your	
  
customer	
  

Value Propositions
–  Pharma	
  example:	
  Business	
  Development,	
  

Lean Launchpad: Digital Health
Technology	
  Scouts,	
  Therapeu=c	
  Area	
  Heads	
  

UCSF Entrepreneurship Center
•  Your	
  approach	
  is	
  October 1,pre-­‐compe==ve”	
  	
  
likely	
  “ 2013

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

©	
  2012	
  Steve	
  Blank	
  
Revenue	
  streams	
  
•  Lots	
  of	
  different	
  business	
  models	
  that	
  offer	
  
flexibility	
  to	
  match	
  your	
  opportunity	
  
Value Propositions
•  Non-­‐dilu=ve	
  money:	
  who	
  controls	
  it,	
  what	
  do	
  
they	
  want?	
   Launchpad: Digital Health
Lean
•  No	
  5	
  year	
  hockey	
  Entrepreneurship Centerfind	
  significant	
  
UCSF s=ck	
  plan,	
  must	
  
October
revenue	
  in	
  several	
  years	
  1, 2013
–  Example:	
  the	
  MVP	
  for	
  a	
  therapeu=c	
  must	
  drive	
  a	
  
license	
  value	
  greater	
  than	
  the	
  cost,	
  ul=mately	
  you	
  
may	
  pass	
  on	
  the	
  AbhasaGupta, MD to	
  invest	
  as	
  sole	
  
deal	
   nd	
  con=nue	
  
owner,	
  but	
  you	
  should	
  have	
  the	
  op=on	
  
Mohr Davidow Ventures
@abhasguptamd
The Value Proposition Canvas

Designed for:

On:

Designed by:

Day

Iteration:

Month

Year

No.

Do they…
Which savings would make your customer happy?

Create savings that make your customer happy?

Do something customers are looking for?

(e.g. in terms of time, money and effort, …)

(e.g. good design, guarantees, specific or more features, …)

(e.g. in terms of time, money and effort, …)

Produce outcomes your customer expects or that go
beyond their expectations?

Fulfill something customers are dreaming about?

What outcomes does your customer expect and what
would go beyond his/her expectations?

(e.g. better quality level, more of something, less of something, …)

Copy or outperform current solutions that delight your
customer?
(e.g. regarding specific features, performance, quality, …)

Make your customer’s job or life easier?
(e.g. flatter learning curve, usability, accessibility, more services, lower
cost of ownership, …)

Create positive social consequences that your
customer desires?

(e.g. help big achievements, produce big reliefs, …)

(e.g. quality level, more of something, less of something, …)

Produce positive outcomes matching your customers
success and failure criteria?

How do current solutions delight your customer?
(e.g. specific features, performance, quality, …)

(e.g. better performance, lower cost, …)

Rank each gain according to its relevance to
your customer.
Is it substantial or is it insignificant?
For each gain indicate how often it occurs.

What would make your customer’s job or life easier?

Help make adoption easier?

(e.g. flatter learning curve, more services, lower cost of ownership, …)

(e.g. lower cost, less investments, lower risk, better quality,
performance, design, …)

What positive social consequences does your
customer desire?

Rank each gain your products and services create according to its relevance to your
customer. Is it substantial or insignificant? For each gain indicate how often it occurs.

(e.g. makes them look good, increase in power, status, …)

What are customers looking for?

(e.g. makes them look good, produces an increase in power, status, …)

(e.g. good design, guarantees, specific or more features, …)

Gain Creators

Gains

Describe how your products and services create customer gains.
How do they create benefits your customer expects, desires or would be surprised
by, including functional utility, social gains, positive emotions, and cost savings?

Describe the benefits your customer expects, desires or would be surprised by.
This includes functional utility, social gains, positive emotions, and cost savings.

What do customers dream about?
(e.g. big achievements, big reliefs, …)

Value Propositions

Products & Services
List all the products and services your value proposition is built around.
Which products and services do you offer that help your customer get either a
functional, social, or emotional job done, or help him/her satisfy basic needs?
Which ancillary products and services help your customer perform the roles of:

Buyer
(e.g. products and services that help customers compare offers,
decide, buy, take delivery of a product or service, …)

How does your customer measure success and failure?
(e.g. performance, cost, …)

What would increase the likelihood of adopting a solution?
(e.g. lower cost, less investments, lower risk, better quality, performance,
design, …)

Lean Launchpad: Digital Health

Co-creator
(e.g. products and services that help customers co-design
solutions, otherwise contribute value to the solution, …)

Transferrer
(e.g. products and services that help customers dispose of
a product, transfer it to others, or resell, …)

Products and services may either by tangible (e.g. manufactured goods, face-toface customer service), digital/virtual (e.g. downloads, online recommendations),
intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds,
financing services).

Pain Relievers

Rank all products and services according to their importance to your customer.
Are they crucial or trivial to your customer?

Pains

UCSF Entrepreneurship Center
October 1, 2013
Describe how your products and services alleviate customer pains. How do they
eliminate or reduce negative emotions, undesired costs and situations, and risks
your customer experiences or could experience before, during, and after getting
the job done?

Do they…
Produce savings?
(e.g. in terms of time, money, or efforts, …)

Describe negative emotions, undesired costs and situations, and risks that your
customer experiences or could experience before, during, and after getting the
job done.

Eliminate risks your customers fear?

(e.g. financial, social, technical risks, or what could go awfully wrong, …)

What does your customer find too costly?
(e.g. takes a lot of time, costs too much money, requires substantial efforts, …)

What makes your customer feel bad?
(e.g. frustrations, annoyances, things that give them a headache, …)

How are current solutions underperforming for
your customer?
(e.g. lack of features, performance, malfunctioning, …)

What are the main difficulties and challenges
your customer encounters?
(e.g. understanding how things work, difficulties getting things done,
resistance, …)

Customer Job(s)
Describe what a specific customer segment is trying to get done. It could be the tasks
they are trying to perform and complete, the problems they are trying to solve, or the
needs they are trying to satisfy.

What functional jobs are you helping your customer get done?
(e.g. perform or complete a specific task, solve a specific problem, …)

What social jobs are you helping your customer get done?
(e.g. trying to look good, gain power or status, …)

What emotional jobs are you helping your customer get done?
(e.g. esthetics, feel good, security, …)

What basic needs are you helping your customer satisfy?
(e.g. communication, sex, …)

Besides trying to get a core job done, your customer performs ancillary jobs in different roles. Describe the jobs your customer is trying to get done as:

Buyer (e.g. trying to look good, gain power or status, …)
Co-creator (e.g. esthetics, feel good, security, …)
Transferrer (e.g. products and services that help customers dispose
of a product, transfer it to others, or resell, …)

Rank each job according to its significance to your customer. Is it
crucial or is it trivial? For each job indicate how often it occurs.

Outline in which specific context a job
is done, because that may impose
constraints or limitations.
(e.g. while driving, outside, …)

What negative social consequences does your
customer encounter or fear?

Make your customers feel better?

Help your customers better sleep at night?

(e.g. kills frustrations, annoyances, things that give them a headache, …)

(e.g. by helping with big issues, diminishing concerns, or eliminating worries, …)

Fix underperforming solutions?

Limit or eradicate common mistakes customers make?

(e.g. new features, better performance, better quality, …)

(e.g. usage mistakes, …)

What risks does your customer fear?

Put an end to difficulties and challenges your
customers encounter?

Get rid of barriers that are keeping your customer
from adopting solutions?

(e.g. make things easier, helping them get done, eliminate resistance, …)

(e.g. lower or no upfront investment costs, flatter learning curve, less
resistance to change, …)

(e.g. big issues, concerns, worries, …)

(e.g. loss of face, power, trust, or status, …)

Wipe out negative social consequences your
customers encounter or fear?
(e.g. loss of face, power, trust, or status, …)

(e.g. financial, social, technical risks, or what could go awfully wrong, …)

What’s keeping your customer awake at night?
What common mistakes does your customer make?
(e.g. usage mistakes, …)

Rank each pain your products and services kill according to their intensity
for your customer. Is it very intense or very light?

What barriers are keeping your customer from
adopting solutions?

For each pain indicate how often it occurs. Risks your customer experiences or
could experience before, during, and after getting the job done?

Value Proposition
Create one for each Customer Segment in your Business Model

www.businessmodelgeneration.com

Rank each pain according to the intensity it
represents for your customer.
Is it very intense or is it very light.?
For each pain indicate how often it occurs.

(e.g. upfront investment costs, learning curve, resistance to change, …)

Abhas Gupta, MD
Mohr Davidow Ventures
Customer Segment

@abhasguptamd

Use in Conjunction with the Business Model Canvas

Copyright of Business Model Foundry GmbH
Customer	
  Must	
  Match	
  MVP	
  
•  What	
  do	
  they	
  have	
  now,	
  what	
  creates	
  a	
  “must	
  
have”	
  
Value Propositions
•  What	
  is	
  your	
  MVP	
  and	
  which	
  customers	
  
Lean Launchpad: Digital Health
should	
  be	
  most	
  interested/less	
  interested?	
  
UCSF Entrepreneurship Center
–  Therapeu=c	
  emphasis,	
  pipeline,	
  strategy	
  differ	
  by	
  
October 1, 2013

company	
  

•  Your	
  interviews	
  can	
  be	
  used	
  to	
  understand	
  
Abhas Gupta, MD
how	
  customers	
  view	
  each	
  others	
  needs	
  
Mohr Davidow Ventures
@abhasguptamd
	
  
The Value Proposition Canvas

Designed for:

On:

Designed by:

Day

Iteration:

Month

Year

No.

Do they…
Which savings would make your customer happy?

Create savings that make your customer happy?

Do something customers are looking for?

(e.g. in terms of time, money and effort, …)

(e.g. good design, guarantees, specific or more features, …)

(e.g. in terms of time, money and effort, …)

Produce outcomes your customer expects or that go
beyond their expectations?

Fulfill something customers are dreaming about?
(e.g. help big achievements, produce big reliefs, …)

What outcomes does your customer expect and what
would go beyond his/her expectations?

(e.g. better quality level, more of something, less of something, …)

Copy or outperform current solutions that delight your
customer?
(e.g. regarding specific features, performance, quality, …)

Make your customer’s job or life easier?
(e.g. flatter learning curve, usability, accessibility, more services, lower
cost of ownership, …)

Create positive social consequences that your
customer desires?

(e.g. quality level, more of something, less of something, …)

Produce positive outcomes matching your customers
success and failure criteria?

How do current solutions delight your customer?

(e.g. better performance, lower cost, …)

(e.g. specific features, performance, quality, …)

Help make adoption easier?

Rank each gain according to its relevance to
your customer.
Is it substantial or is it insignificant?
For each gain indicate how often it occurs.

What would make your customer’s job or life easier?
(e.g. flatter learning curve, more services, lower cost of ownership, …)

(e.g. lower cost, less investments, lower risk, better quality,
performance, design, …)

What positive social consequences does your
customer desire?

Rank each gain your products and services create according to its relevance to your
customer. Is it substantial or insignificant? For each gain indicate how often it occurs.

(e.g. makes them look good, increase in power, status, …)

What are customers looking for?

Value Propositions

(e.g. makes them look good, produces an increase in power, status, …)

(e.g. good design, guarantees, specific or more features, …)

Gain Creators

Describe how your products and services create customer gains.
How do they create benefits your customer expects, desires or would be surprised
by, including functional utility, social gains, positive emotions, and cost savings?

Products & Services
List all the products and services your value proposition is built around.
Which products and services do you offer that help your customer get either a
functional, social, or emotional job done, or help him/her satisfy basic needs?

Gains

Describe the benefits your customer expects, desires or would be surprised by.
This includes functional utility, social gains, positive emotions, and cost savings.

What do customers dream about?
(e.g. big achievements, big reliefs, …)

How does your customer measure success and failure?
(e.g. performance, cost, …)

What would increase the likelihood of adopting a solution?
(e.g. lower cost, less investments, lower risk, better quality, performance,
design, …)

Lean Launchpad: Digital Health

Which ancillary products and services help your customer perform the roles of:

Buyer
(e.g. products and services that help customers compare offers,
decide, buy, take delivery of a product or service, …)

Co-creator
(e.g. products and services that help customers co-design
solutions, otherwise contribute value to the solution, …)

Customer Job(s)
Describe what a specific customer segment is trying to get done. It could be the tasks
they are trying to perform and complete, the problems they are trying to solve, or the
needs they are trying to satisfy.

What functional jobs are you helping your customer get done?
(e.g. perform or complete a specific task, solve a specific problem, …)

What social jobs are you helping your customer get done?
(e.g. trying to look good, gain power or status, …)

What emotional jobs are you helping your customer get done?
(e.g. esthetics, feel good, security, …)

What basic needs are you helping your customer satisfy?

Transferrer

(e.g. communication, sex, …)

(e.g. products and services that help customers dispose of
a product, transfer it to others, or resell, …)

UCSF Entrepreneurship Center
Pain Relievers
Pains
October 1, 2013

Products and services may either by tangible (e.g. manufactured goods, face-toface customer service), digital/virtual (e.g. downloads, online recommendations),
intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds,
financing services).
Rank all products and services according to their importance to your customer.
Are they crucial or trivial to your customer?

Describe how your products and services alleviate customer pains. How do they
eliminate or reduce negative emotions, undesired costs and situations, and risks
your customer experiences or could experience before, during, and after getting
the job done?

Describe negative emotions, undesired costs and situations, and risks that your
customer experiences or could experience before, during, and after getting the
job done.

Do they…

Besides trying to get a core job done, your customer performs ancillary jobs in different roles. Describe the jobs your customer is trying to get done as:

What does your customer find too costly?
(e.g. takes a lot of time, costs too much money, requires substantial efforts, …)

What makes your customer feel bad?
(e.g. frustrations, annoyances, things that give them a headache, …)

How are current solutions underperforming for
your customer?
(e.g. lack of features, performance, malfunctioning, …)

What are the main difficulties and challenges
your customer encounters?

Produce savings?

Eliminate risks your customers fear?

(e.g. in terms of time, money, or efforts, …)

(e.g. financial, social, technical risks, or what could go awfully wrong, …)

Make your customers feel better?

Co-creator (e.g. esthetics, feel good, security, …)
Transferrer (e.g. products and services that help customers dispose
of a product, transfer it to others, or resell, …)

Rank each job according to its significance to your customer. Is it
crucial or is it trivial? For each job indicate how often it occurs.

Outline in which specific context a job
is done, because that may impose
constraints or limitations.
(e.g. while driving, outside, …)

What negative social consequences does your
customer encounter or fear?

Help your customers better sleep at night?

(e.g. kills frustrations, annoyances, things that give them a headache, …)

(e.g. understanding how things work, difficulties getting things done,
resistance, …)

Buyer (e.g. trying to look good, gain power or status, …)

(e.g. by helping with big issues, diminishing concerns, or eliminating worries, …)

(e.g. loss of face, power, trust, or status, …)

Fix underperforming solutions?

Limit or eradicate common mistakes customers make?

(e.g. new features, better performance, better quality, …)

(e.g. usage mistakes, …)

What risks does your customer fear?

Put an end to difficulties and challenges your
customers encounter?

Get rid of barriers that are keeping your customer
from adopting solutions?

(e.g. make things easier, helping them get done, eliminate resistance, …)

(e.g. lower or no upfront investment costs, flatter learning curve, less
resistance to change, …)

(e.g. big issues, concerns, worries, …)

Wipe out negative social consequences your
customers encounter or fear?
(e.g. loss of face, power, trust, or status, …)

(e.g. financial, social, technical risks, or what could go awfully wrong, …)

What’s keeping your customer awake at night?
What common mistakes does your customer make?
(e.g. usage mistakes, …)

Rank each pain your products and services kill according to their intensity
for your customer. Is it very intense or very light?

Abhas Gupta, MD
Mohr Davidow Ventures

For each pain indicate how often it occurs. Risks your customer experiences or
could experience before, during, and after getting the job done?

Value Proposition
Create one for each Customer Segment in your Business Model

Rank each pain according to the intensity it
represents for your customer.
Is it very intense or is it very light.?
For each pain indicate how often it occurs.

What barriers are keeping your customer from
adopting solutions?
(e.g. upfront investment costs, learning curve, resistance to change, …)

Customer Segment

@abhasguptamd

www.businessmodelgeneration.com

Use in Conjunction with the Business Model Canvas

Copyright of Business Model Foundry GmbH
The Value Proposition Canvas

Designed for:

On:

Designed by:

Day

Iteration:

Month

Year

No.

Do they…
Which savings would make your customer happy?

Create savings that make your customer happy?

Do something customers are looking for?

(e.g. in terms of time, money and effort, …)

(e.g. good design, guarantees, specific or more features, …)

(e.g. in terms of time, money and effort, …)

Produce outcomes your customer expects or that go
beyond their expectations?

Fulfill something customers are dreaming about?

What outcomes does your customer expect and what
would go beyond his/her expectations?

(e.g. better quality level, more of something, less of something, …)

Copy or outperform current solutions that delight your
customer?
(e.g. regarding specific features, performance, quality, …)

Make your customer’s job or life easier?
(e.g. flatter learning curve, usability, accessibility, more services, lower
cost of ownership, …)

Create positive social consequences that your
customer desires?

(e.g. help big achievements, produce big reliefs, …)

(e.g. quality level, more of something, less of something, …)

Produce positive outcomes matching your customers
success and failure criteria?

How do current solutions delight your customer?
(e.g. specific features, performance, quality, …)

(e.g. better performance, lower cost, …)

Rank each gain according to its relevance to
your customer.
Is it substantial or is it insignificant?
For each gain indicate how often it occurs.

What would make your customer’s job or life easier?

Help make adoption easier?

(e.g. flatter learning curve, more services, lower cost of ownership, …)

(e.g. lower cost, less investments, lower risk, better quality,
performance, design, …)

What positive social consequences does your
customer desire?

Rank each gain your products and services create according to its relevance to your
customer. Is it substantial or insignificant? For each gain indicate how often it occurs.

(e.g. makes them look good, increase in power, status, …)

What are customers looking for?

(e.g. makes them look good, produces an increase in power, status, …)

(e.g. good design, guarantees, specific or more features, …)

Gain Creators

Gains

Describe how your products and services create customer gains.
How do they create benefits your customer expects, desires or would be surprised
by, including functional utility, social gains, positive emotions, and cost savings?

Describe the benefits your customer expects, desires or would be surprised by.
This includes functional utility, social gains, positive emotions, and cost savings.

What do customers dream about?
(e.g. big achievements, big reliefs, …)

Value Propositions

Products & Services
List all the products and services your value proposition is built around.
Which products and services do you offer that help your customer get either a
functional, social, or emotional job done, or help him/her satisfy basic needs?
Which ancillary products and services help your customer perform the roles of:

Buyer
(e.g. products and services that help customers compare offers,
decide, buy, take delivery of a product or service, …)

How does your customer measure success and failure?
(e.g. performance, cost, …)

What would increase the likelihood of adopting a solution?
(e.g. lower cost, less investments, lower risk, better quality, performance,
design, …)

Lean Launchpad: Digital Health

Co-creator
(e.g. products and services that help customers co-design
solutions, otherwise contribute value to the solution, …)

Transferrer
(e.g. products and services that help customers dispose of
a product, transfer it to others, or resell, …)

Products and services may either by tangible (e.g. manufactured goods, face-toface customer service), digital/virtual (e.g. downloads, online recommendations),
intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds,
financing services).

Pain Relievers

Rank all products and services according to their importance to your customer.
Are they crucial or trivial to your customer?

Pains

UCSF Entrepreneurship Center
October 1, 2013
Describe how your products and services alleviate customer pains. How do they
eliminate or reduce negative emotions, undesired costs and situations, and risks
your customer experiences or could experience before, during, and after getting
the job done?

Do they…
Produce savings?
(e.g. in terms of time, money, or efforts, …)

Describe negative emotions, undesired costs and situations, and risks that your
customer experiences or could experience before, during, and after getting the
job done.

Eliminate risks your customers fear?

(e.g. financial, social, technical risks, or what could go awfully wrong, …)

What does your customer find too costly?
(e.g. takes a lot of time, costs too much money, requires substantial efforts, …)

What makes your customer feel bad?
(e.g. frustrations, annoyances, things that give them a headache, …)

How are current solutions underperforming for
your customer?
(e.g. lack of features, performance, malfunctioning, …)

What are the main difficulties and challenges
your customer encounters?
(e.g. understanding how things work, difficulties getting things done,
resistance, …)

Customer Job(s)
Describe what a specific customer segment is trying to get done. It could be the tasks
they are trying to perform and complete, the problems they are trying to solve, or the
needs they are trying to satisfy.

What functional jobs are you helping your customer get done?
(e.g. perform or complete a specific task, solve a specific problem, …)

What social jobs are you helping your customer get done?
(e.g. trying to look good, gain power or status, …)

What emotional jobs are you helping your customer get done?
(e.g. esthetics, feel good, security, …)

What basic needs are you helping your customer satisfy?
(e.g. communication, sex, …)

Besides trying to get a core job done, your customer performs ancillary jobs in different roles. Describe the jobs your customer is trying to get done as:

Buyer (e.g. trying to look good, gain power or status, …)
Co-creator (e.g. esthetics, feel good, security, …)
Transferrer (e.g. products and services that help customers dispose
of a product, transfer it to others, or resell, …)

Rank each job according to its significance to your customer. Is it
crucial or is it trivial? For each job indicate how often it occurs.

Outline in which specific context a job
is done, because that may impose
constraints or limitations.
(e.g. while driving, outside, …)

What negative social consequences does your
customer encounter or fear?

Make your customers feel better?

Help your customers better sleep at night?

(e.g. kills frustrations, annoyances, things that give them a headache, …)

(e.g. by helping with big issues, diminishing concerns, or eliminating worries, …)

Fix underperforming solutions?

Limit or eradicate common mistakes customers make?

(e.g. new features, better performance, better quality, …)

(e.g. usage mistakes, …)

What risks does your customer fear?

Put an end to difficulties and challenges your
customers encounter?

Get rid of barriers that are keeping your customer
from adopting solutions?

(e.g. make things easier, helping them get done, eliminate resistance, …)

(e.g. lower or no upfront investment costs, flatter learning curve, less
resistance to change, …)

(e.g. big issues, concerns, worries, …)

(e.g. loss of face, power, trust, or status, …)

Wipe out negative social consequences your
customers encounter or fear?
(e.g. loss of face, power, trust, or status, …)

(e.g. financial, social, technical risks, or what could go awfully wrong, …)

What’s keeping your customer awake at night?
What common mistakes does your customer make?
(e.g. usage mistakes, …)

Rank each pain your products and services kill according to their intensity
for your customer. Is it very intense or very light?

What barriers are keeping your customer from
adopting solutions?

For each pain indicate how often it occurs. Risks your customer experiences or
could experience before, during, and after getting the job done?

Value Proposition
Create one for each Customer Segment in your Business Model

www.businessmodelgeneration.com

Rank each pain according to the intensity it
represents for your customer.
Is it very intense or is it very light.?
For each pain indicate how often it occurs.

(e.g. upfront investment costs, learning curve, resistance to change, …)

Abhas Gupta, MD
Mohr Davidow Ventures
Customer Segment

@abhasguptamd

Use in Conjunction with the Business Model Canvas

Copyright of Business Model Foundry GmbH
Last	
  Weeks	
  Big	
  Idea	
  
Strength	
  of	
  
Value	
  Proposi3on	
  
Launchpad: DigitalcHealth key	
  data	
  
is	
   riteria	
  of	
  
required	
  to	
  displace	
  
UCSF Entrepreneurship Center
October 1, 2013 compe=ng	
  and	
  internal	
  
programs	
  at	
  every	
  stage	
  

Value Propositions
Lean

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
This	
  Weeks	
  Big	
  Idea	
  
You	
  must	
  find	
  a	
  CUSTOMER	
  
SEGMENT	
  to	
  generate	
  
Launchpad: Digital Health every	
  stage	
  
revenue	
  at	
  
	
  

Value Propositions
Lean

UCSF Entrepreneurship Center
October 1, 2013

Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
Therapeu=c	
  CUSTOMER	
  SEGMENT	
  to	
  
generate	
  revenue	
  at	
  every	
  stage	
  
18	
  months	
  to	
  create	
  data	
  a	
  customer	
  segment	
  values:	
  

Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
Historically	
  the	
  best	
  outcomes	
  f2013therapeu=c	
  
October 1, or	
  

entrepreneurs	
  involved	
  early	
  collabora=ons!	
  
You	
  must	
  always	
  have	
  deal	
  op=ons,	
  you	
  can	
  
Abhas Gupta, MD
choose	
  another	
  path.	
   Davidow Ventures
Mohr
@abhasguptamd
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
My	
  Contact:	
  Put	
  LLP	
  in	
  Subject	
  Line	
  for	
  extra	
  points	
  	
  

KARL@CODONCAPITAL.COM	
  
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

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UCSF Life Sciences Week 2 Therapeutics: Customer Segments

  • 1. Customer  Segments:   “Who  cares?  What  do  they  care   about?  How  much  do  they  care?”   Value Propositions Lean  Launchpad:  Therapeu=cs   Lean Launchpad: Digital Health   UCSF Entrepreneurship Center UCSF  Entrepreneurship  Center   October 1, 2013 October  8,  2013     Karl  Handelsman   Abhas Gupta, MD Codon  Capital     Mohr Davidow Ventures @abhasguptamd Weekly  Office  Hours:  4:30-­‐5:30  before  class  
  • 2. Customer  Segments   Value Propositions Lean Launchpad: Digital Health This   UCSF Entrepreneurship Center Next   October 1, 2013 Week   Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd Week  
  • 3. Value Propositions Lean Launchpad: Digital Health Customer  Segments   UCSF Entrepreneurship Center October 1, 2013 CONTEXT   Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 4. Overview   Move  to  External  Innova=on     Pharma/Large  Biotech/Generic/Specialty   Move  from  Ver=cal  Integra=on  to  Distributed  Opera=ons   CROs  fLean Launchpad: Digital Health  Clinical   or  toxicology,  Outsourced  chemistry,  CMC,   Customer  segments  in  a  given  company   UCSF Entrepreneurship Center  Therapeu=c  Head,  BOctober 1, 2013 usiness  Development,  Internal  Experts   Need  to  iden=fy  the  ten  companies  with  highest  interest   Value Propositions Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 5. How does your customer define pains and gains? Focus  on  internal  roles  at  company  (therapeu=c  head  vs  business)   What  are  the  pains/gains  you  offer   Internal  view  of  how  they  fit  today  and  future  in  your  market   Internal  view  of  what  they  have  covered   External  view  of  “high  impact”  areas  where  they  have  needs   External  view  of  “hot”  areas   Digital Health Lean Launchpad: Value Propositions     UCSF Entrepreneurship Center October 1, 2013 REINFORCE:  Companies  have  divergent   and  conflic=ng  views,  and  they  change   Abhas Gupta, MD over  =me   Mohr Davidow Ventures @abhasguptamd
  • 6. Risk  Is  Our  Business   Value Propositions Lean Launchpad: Digital Health UCSF Entrepreneurship Center October 1, 2013 Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 7. Today   •  Value  Proposi=on   Value Propositions Lean Launchpad: Digital Health •  BMC  evolu=on     Entrepreneurship Center UCSF October 1, 2013 Abhas Gupta, MD •  What  is  a  Customer  Segment   Mohr Davidow Ventures @abhasguptamd
  • 8. You  are  searching   •  •  •  •  •  •  Draw  them  out   Don’t  worry  about  money   Find  out  what  they  care  about   Find  out  why  its  important   Share  something  interes=ng   Ask  them  what  you  are  missing   Value Propositions Lean Launchpad: Digital Health UCSF Entrepreneurship Center October 1, 2013 Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 9. Mistakes  to  avoid   •  Want  to  reach  across  the  job  func=ons  of  your   customer   Value Propositions –  Pharma  example:  Business  Development,   Lean Launchpad: Digital Health Technology  Scouts,  Therapeu=c  Area  Heads   UCSF Entrepreneurship Center •  Your  approach  is  October 1,pre-­‐compe==ve”     likely  “ 2013 Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 10. Value Propositions Lean Launchpad: Digital Health UCSF Entrepreneurship Center October 1, 2013 Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd ©  2012  Steve  Blank  
  • 11. Revenue  streams   •  Lots  of  different  business  models  that  offer   flexibility  to  match  your  opportunity   Value Propositions •  Non-­‐dilu=ve  money:  who  controls  it,  what  do   they  want?   Launchpad: Digital Health Lean •  No  5  year  hockey  Entrepreneurship Centerfind  significant   UCSF s=ck  plan,  must   October revenue  in  several  years  1, 2013 –  Example:  the  MVP  for  a  therapeu=c  must  drive  a   license  value  greater  than  the  cost,  ul=mately  you   may  pass  on  the  AbhasaGupta, MD to  invest  as  sole   deal   nd  con=nue   owner,  but  you  should  have  the  op=on   Mohr Davidow Ventures @abhasguptamd
  • 12. The Value Proposition Canvas Designed for: On: Designed by: Day Iteration: Month Year No. Do they… Which savings would make your customer happy? Create savings that make your customer happy? Do something customers are looking for? (e.g. in terms of time, money and effort, …) (e.g. good design, guarantees, specific or more features, …) (e.g. in terms of time, money and effort, …) Produce outcomes your customer expects or that go beyond their expectations? Fulfill something customers are dreaming about? What outcomes does your customer expect and what would go beyond his/her expectations? (e.g. better quality level, more of something, less of something, …) Copy or outperform current solutions that delight your customer? (e.g. regarding specific features, performance, quality, …) Make your customer’s job or life easier? (e.g. flatter learning curve, usability, accessibility, more services, lower cost of ownership, …) Create positive social consequences that your customer desires? (e.g. help big achievements, produce big reliefs, …) (e.g. quality level, more of something, less of something, …) Produce positive outcomes matching your customers success and failure criteria? How do current solutions delight your customer? (e.g. specific features, performance, quality, …) (e.g. better performance, lower cost, …) Rank each gain according to its relevance to your customer. Is it substantial or is it insignificant? For each gain indicate how often it occurs. What would make your customer’s job or life easier? Help make adoption easier? (e.g. flatter learning curve, more services, lower cost of ownership, …) (e.g. lower cost, less investments, lower risk, better quality, performance, design, …) What positive social consequences does your customer desire? Rank each gain your products and services create according to its relevance to your customer. Is it substantial or insignificant? For each gain indicate how often it occurs. (e.g. makes them look good, increase in power, status, …) What are customers looking for? (e.g. makes them look good, produces an increase in power, status, …) (e.g. good design, guarantees, specific or more features, …) Gain Creators Gains Describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings? Describe the benefits your customer expects, desires or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings. What do customers dream about? (e.g. big achievements, big reliefs, …) Value Propositions Products & Services List all the products and services your value proposition is built around. Which products and services do you offer that help your customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs? Which ancillary products and services help your customer perform the roles of: Buyer (e.g. products and services that help customers compare offers, decide, buy, take delivery of a product or service, …) How does your customer measure success and failure? (e.g. performance, cost, …) What would increase the likelihood of adopting a solution? (e.g. lower cost, less investments, lower risk, better quality, performance, design, …) Lean Launchpad: Digital Health Co-creator (e.g. products and services that help customers co-design solutions, otherwise contribute value to the solution, …) Transferrer (e.g. products and services that help customers dispose of a product, transfer it to others, or resell, …) Products and services may either by tangible (e.g. manufactured goods, face-toface customer service), digital/virtual (e.g. downloads, online recommendations), intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds, financing services). Pain Relievers Rank all products and services according to their importance to your customer. Are they crucial or trivial to your customer? Pains UCSF Entrepreneurship Center October 1, 2013 Describe how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done? Do they… Produce savings? (e.g. in terms of time, money, or efforts, …) Describe negative emotions, undesired costs and situations, and risks that your customer experiences or could experience before, during, and after getting the job done. Eliminate risks your customers fear? (e.g. financial, social, technical risks, or what could go awfully wrong, …) What does your customer find too costly? (e.g. takes a lot of time, costs too much money, requires substantial efforts, …) What makes your customer feel bad? (e.g. frustrations, annoyances, things that give them a headache, …) How are current solutions underperforming for your customer? (e.g. lack of features, performance, malfunctioning, …) What are the main difficulties and challenges your customer encounters? (e.g. understanding how things work, difficulties getting things done, resistance, …) Customer Job(s) Describe what a specific customer segment is trying to get done. It could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. What functional jobs are you helping your customer get done? (e.g. perform or complete a specific task, solve a specific problem, …) What social jobs are you helping your customer get done? (e.g. trying to look good, gain power or status, …) What emotional jobs are you helping your customer get done? (e.g. esthetics, feel good, security, …) What basic needs are you helping your customer satisfy? (e.g. communication, sex, …) Besides trying to get a core job done, your customer performs ancillary jobs in different roles. Describe the jobs your customer is trying to get done as: Buyer (e.g. trying to look good, gain power or status, …) Co-creator (e.g. esthetics, feel good, security, …) Transferrer (e.g. products and services that help customers dispose of a product, transfer it to others, or resell, …) Rank each job according to its significance to your customer. Is it crucial or is it trivial? For each job indicate how often it occurs. Outline in which specific context a job is done, because that may impose constraints or limitations. (e.g. while driving, outside, …) What negative social consequences does your customer encounter or fear? Make your customers feel better? Help your customers better sleep at night? (e.g. kills frustrations, annoyances, things that give them a headache, …) (e.g. by helping with big issues, diminishing concerns, or eliminating worries, …) Fix underperforming solutions? Limit or eradicate common mistakes customers make? (e.g. new features, better performance, better quality, …) (e.g. usage mistakes, …) What risks does your customer fear? Put an end to difficulties and challenges your customers encounter? Get rid of barriers that are keeping your customer from adopting solutions? (e.g. make things easier, helping them get done, eliminate resistance, …) (e.g. lower or no upfront investment costs, flatter learning curve, less resistance to change, …) (e.g. big issues, concerns, worries, …) (e.g. loss of face, power, trust, or status, …) Wipe out negative social consequences your customers encounter or fear? (e.g. loss of face, power, trust, or status, …) (e.g. financial, social, technical risks, or what could go awfully wrong, …) What’s keeping your customer awake at night? What common mistakes does your customer make? (e.g. usage mistakes, …) Rank each pain your products and services kill according to their intensity for your customer. Is it very intense or very light? What barriers are keeping your customer from adopting solutions? For each pain indicate how often it occurs. Risks your customer experiences or could experience before, during, and after getting the job done? Value Proposition Create one for each Customer Segment in your Business Model www.businessmodelgeneration.com Rank each pain according to the intensity it represents for your customer. Is it very intense or is it very light.? For each pain indicate how often it occurs. (e.g. upfront investment costs, learning curve, resistance to change, …) Abhas Gupta, MD Mohr Davidow Ventures Customer Segment @abhasguptamd Use in Conjunction with the Business Model Canvas Copyright of Business Model Foundry GmbH
  • 13. Customer  Must  Match  MVP   •  What  do  they  have  now,  what  creates  a  “must   have”   Value Propositions •  What  is  your  MVP  and  which  customers   Lean Launchpad: Digital Health should  be  most  interested/less  interested?   UCSF Entrepreneurship Center –  Therapeu=c  emphasis,  pipeline,  strategy  differ  by   October 1, 2013 company   •  Your  interviews  can  be  used  to  understand   Abhas Gupta, MD how  customers  view  each  others  needs   Mohr Davidow Ventures @abhasguptamd  
  • 14. The Value Proposition Canvas Designed for: On: Designed by: Day Iteration: Month Year No. Do they… Which savings would make your customer happy? Create savings that make your customer happy? Do something customers are looking for? (e.g. in terms of time, money and effort, …) (e.g. good design, guarantees, specific or more features, …) (e.g. in terms of time, money and effort, …) Produce outcomes your customer expects or that go beyond their expectations? Fulfill something customers are dreaming about? (e.g. help big achievements, produce big reliefs, …) What outcomes does your customer expect and what would go beyond his/her expectations? (e.g. better quality level, more of something, less of something, …) Copy or outperform current solutions that delight your customer? (e.g. regarding specific features, performance, quality, …) Make your customer’s job or life easier? (e.g. flatter learning curve, usability, accessibility, more services, lower cost of ownership, …) Create positive social consequences that your customer desires? (e.g. quality level, more of something, less of something, …) Produce positive outcomes matching your customers success and failure criteria? How do current solutions delight your customer? (e.g. better performance, lower cost, …) (e.g. specific features, performance, quality, …) Help make adoption easier? Rank each gain according to its relevance to your customer. Is it substantial or is it insignificant? For each gain indicate how often it occurs. What would make your customer’s job or life easier? (e.g. flatter learning curve, more services, lower cost of ownership, …) (e.g. lower cost, less investments, lower risk, better quality, performance, design, …) What positive social consequences does your customer desire? Rank each gain your products and services create according to its relevance to your customer. Is it substantial or insignificant? For each gain indicate how often it occurs. (e.g. makes them look good, increase in power, status, …) What are customers looking for? Value Propositions (e.g. makes them look good, produces an increase in power, status, …) (e.g. good design, guarantees, specific or more features, …) Gain Creators Describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings? Products & Services List all the products and services your value proposition is built around. Which products and services do you offer that help your customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs? Gains Describe the benefits your customer expects, desires or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings. What do customers dream about? (e.g. big achievements, big reliefs, …) How does your customer measure success and failure? (e.g. performance, cost, …) What would increase the likelihood of adopting a solution? (e.g. lower cost, less investments, lower risk, better quality, performance, design, …) Lean Launchpad: Digital Health Which ancillary products and services help your customer perform the roles of: Buyer (e.g. products and services that help customers compare offers, decide, buy, take delivery of a product or service, …) Co-creator (e.g. products and services that help customers co-design solutions, otherwise contribute value to the solution, …) Customer Job(s) Describe what a specific customer segment is trying to get done. It could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. What functional jobs are you helping your customer get done? (e.g. perform or complete a specific task, solve a specific problem, …) What social jobs are you helping your customer get done? (e.g. trying to look good, gain power or status, …) What emotional jobs are you helping your customer get done? (e.g. esthetics, feel good, security, …) What basic needs are you helping your customer satisfy? Transferrer (e.g. communication, sex, …) (e.g. products and services that help customers dispose of a product, transfer it to others, or resell, …) UCSF Entrepreneurship Center Pain Relievers Pains October 1, 2013 Products and services may either by tangible (e.g. manufactured goods, face-toface customer service), digital/virtual (e.g. downloads, online recommendations), intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds, financing services). Rank all products and services according to their importance to your customer. Are they crucial or trivial to your customer? Describe how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done? Describe negative emotions, undesired costs and situations, and risks that your customer experiences or could experience before, during, and after getting the job done. Do they… Besides trying to get a core job done, your customer performs ancillary jobs in different roles. Describe the jobs your customer is trying to get done as: What does your customer find too costly? (e.g. takes a lot of time, costs too much money, requires substantial efforts, …) What makes your customer feel bad? (e.g. frustrations, annoyances, things that give them a headache, …) How are current solutions underperforming for your customer? (e.g. lack of features, performance, malfunctioning, …) What are the main difficulties and challenges your customer encounters? Produce savings? Eliminate risks your customers fear? (e.g. in terms of time, money, or efforts, …) (e.g. financial, social, technical risks, or what could go awfully wrong, …) Make your customers feel better? Co-creator (e.g. esthetics, feel good, security, …) Transferrer (e.g. products and services that help customers dispose of a product, transfer it to others, or resell, …) Rank each job according to its significance to your customer. Is it crucial or is it trivial? For each job indicate how often it occurs. Outline in which specific context a job is done, because that may impose constraints or limitations. (e.g. while driving, outside, …) What negative social consequences does your customer encounter or fear? Help your customers better sleep at night? (e.g. kills frustrations, annoyances, things that give them a headache, …) (e.g. understanding how things work, difficulties getting things done, resistance, …) Buyer (e.g. trying to look good, gain power or status, …) (e.g. by helping with big issues, diminishing concerns, or eliminating worries, …) (e.g. loss of face, power, trust, or status, …) Fix underperforming solutions? Limit or eradicate common mistakes customers make? (e.g. new features, better performance, better quality, …) (e.g. usage mistakes, …) What risks does your customer fear? Put an end to difficulties and challenges your customers encounter? Get rid of barriers that are keeping your customer from adopting solutions? (e.g. make things easier, helping them get done, eliminate resistance, …) (e.g. lower or no upfront investment costs, flatter learning curve, less resistance to change, …) (e.g. big issues, concerns, worries, …) Wipe out negative social consequences your customers encounter or fear? (e.g. loss of face, power, trust, or status, …) (e.g. financial, social, technical risks, or what could go awfully wrong, …) What’s keeping your customer awake at night? What common mistakes does your customer make? (e.g. usage mistakes, …) Rank each pain your products and services kill according to their intensity for your customer. Is it very intense or very light? Abhas Gupta, MD Mohr Davidow Ventures For each pain indicate how often it occurs. Risks your customer experiences or could experience before, during, and after getting the job done? Value Proposition Create one for each Customer Segment in your Business Model Rank each pain according to the intensity it represents for your customer. Is it very intense or is it very light.? For each pain indicate how often it occurs. What barriers are keeping your customer from adopting solutions? (e.g. upfront investment costs, learning curve, resistance to change, …) Customer Segment @abhasguptamd www.businessmodelgeneration.com Use in Conjunction with the Business Model Canvas Copyright of Business Model Foundry GmbH
  • 15. The Value Proposition Canvas Designed for: On: Designed by: Day Iteration: Month Year No. Do they… Which savings would make your customer happy? Create savings that make your customer happy? Do something customers are looking for? (e.g. in terms of time, money and effort, …) (e.g. good design, guarantees, specific or more features, …) (e.g. in terms of time, money and effort, …) Produce outcomes your customer expects or that go beyond their expectations? Fulfill something customers are dreaming about? What outcomes does your customer expect and what would go beyond his/her expectations? (e.g. better quality level, more of something, less of something, …) Copy or outperform current solutions that delight your customer? (e.g. regarding specific features, performance, quality, …) Make your customer’s job or life easier? (e.g. flatter learning curve, usability, accessibility, more services, lower cost of ownership, …) Create positive social consequences that your customer desires? (e.g. help big achievements, produce big reliefs, …) (e.g. quality level, more of something, less of something, …) Produce positive outcomes matching your customers success and failure criteria? How do current solutions delight your customer? (e.g. specific features, performance, quality, …) (e.g. better performance, lower cost, …) Rank each gain according to its relevance to your customer. Is it substantial or is it insignificant? For each gain indicate how often it occurs. What would make your customer’s job or life easier? Help make adoption easier? (e.g. flatter learning curve, more services, lower cost of ownership, …) (e.g. lower cost, less investments, lower risk, better quality, performance, design, …) What positive social consequences does your customer desire? Rank each gain your products and services create according to its relevance to your customer. Is it substantial or insignificant? For each gain indicate how often it occurs. (e.g. makes them look good, increase in power, status, …) What are customers looking for? (e.g. makes them look good, produces an increase in power, status, …) (e.g. good design, guarantees, specific or more features, …) Gain Creators Gains Describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings? Describe the benefits your customer expects, desires or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings. What do customers dream about? (e.g. big achievements, big reliefs, …) Value Propositions Products & Services List all the products and services your value proposition is built around. Which products and services do you offer that help your customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs? Which ancillary products and services help your customer perform the roles of: Buyer (e.g. products and services that help customers compare offers, decide, buy, take delivery of a product or service, …) How does your customer measure success and failure? (e.g. performance, cost, …) What would increase the likelihood of adopting a solution? (e.g. lower cost, less investments, lower risk, better quality, performance, design, …) Lean Launchpad: Digital Health Co-creator (e.g. products and services that help customers co-design solutions, otherwise contribute value to the solution, …) Transferrer (e.g. products and services that help customers dispose of a product, transfer it to others, or resell, …) Products and services may either by tangible (e.g. manufactured goods, face-toface customer service), digital/virtual (e.g. downloads, online recommendations), intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds, financing services). Pain Relievers Rank all products and services according to their importance to your customer. Are they crucial or trivial to your customer? Pains UCSF Entrepreneurship Center October 1, 2013 Describe how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done? Do they… Produce savings? (e.g. in terms of time, money, or efforts, …) Describe negative emotions, undesired costs and situations, and risks that your customer experiences or could experience before, during, and after getting the job done. Eliminate risks your customers fear? (e.g. financial, social, technical risks, or what could go awfully wrong, …) What does your customer find too costly? (e.g. takes a lot of time, costs too much money, requires substantial efforts, …) What makes your customer feel bad? (e.g. frustrations, annoyances, things that give them a headache, …) How are current solutions underperforming for your customer? (e.g. lack of features, performance, malfunctioning, …) What are the main difficulties and challenges your customer encounters? (e.g. understanding how things work, difficulties getting things done, resistance, …) Customer Job(s) Describe what a specific customer segment is trying to get done. It could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. What functional jobs are you helping your customer get done? (e.g. perform or complete a specific task, solve a specific problem, …) What social jobs are you helping your customer get done? (e.g. trying to look good, gain power or status, …) What emotional jobs are you helping your customer get done? (e.g. esthetics, feel good, security, …) What basic needs are you helping your customer satisfy? (e.g. communication, sex, …) Besides trying to get a core job done, your customer performs ancillary jobs in different roles. Describe the jobs your customer is trying to get done as: Buyer (e.g. trying to look good, gain power or status, …) Co-creator (e.g. esthetics, feel good, security, …) Transferrer (e.g. products and services that help customers dispose of a product, transfer it to others, or resell, …) Rank each job according to its significance to your customer. Is it crucial or is it trivial? For each job indicate how often it occurs. Outline in which specific context a job is done, because that may impose constraints or limitations. (e.g. while driving, outside, …) What negative social consequences does your customer encounter or fear? Make your customers feel better? Help your customers better sleep at night? (e.g. kills frustrations, annoyances, things that give them a headache, …) (e.g. by helping with big issues, diminishing concerns, or eliminating worries, …) Fix underperforming solutions? Limit or eradicate common mistakes customers make? (e.g. new features, better performance, better quality, …) (e.g. usage mistakes, …) What risks does your customer fear? Put an end to difficulties and challenges your customers encounter? Get rid of barriers that are keeping your customer from adopting solutions? (e.g. make things easier, helping them get done, eliminate resistance, …) (e.g. lower or no upfront investment costs, flatter learning curve, less resistance to change, …) (e.g. big issues, concerns, worries, …) (e.g. loss of face, power, trust, or status, …) Wipe out negative social consequences your customers encounter or fear? (e.g. loss of face, power, trust, or status, …) (e.g. financial, social, technical risks, or what could go awfully wrong, …) What’s keeping your customer awake at night? What common mistakes does your customer make? (e.g. usage mistakes, …) Rank each pain your products and services kill according to their intensity for your customer. Is it very intense or very light? What barriers are keeping your customer from adopting solutions? For each pain indicate how often it occurs. Risks your customer experiences or could experience before, during, and after getting the job done? Value Proposition Create one for each Customer Segment in your Business Model www.businessmodelgeneration.com Rank each pain according to the intensity it represents for your customer. Is it very intense or is it very light.? For each pain indicate how often it occurs. (e.g. upfront investment costs, learning curve, resistance to change, …) Abhas Gupta, MD Mohr Davidow Ventures Customer Segment @abhasguptamd Use in Conjunction with the Business Model Canvas Copyright of Business Model Foundry GmbH
  • 16. Last  Weeks  Big  Idea   Strength  of   Value  Proposi3on   Launchpad: DigitalcHealth key  data   is   riteria  of   required  to  displace   UCSF Entrepreneurship Center October 1, 2013 compe=ng  and  internal   programs  at  every  stage   Value Propositions Lean Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 17. This  Weeks  Big  Idea   You  must  find  a  CUSTOMER   SEGMENT  to  generate   Launchpad: Digital Health every  stage   revenue  at     Value Propositions Lean UCSF Entrepreneurship Center October 1, 2013 Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd
  • 18. Therapeu=c  CUSTOMER  SEGMENT  to   generate  revenue  at  every  stage   18  months  to  create  data  a  customer  segment  values:   Value Propositions Lean Launchpad: Digital Health UCSF Entrepreneurship Center Historically  the  best  outcomes  f2013therapeu=c   October 1, or   entrepreneurs  involved  early  collabora=ons!   You  must  always  have  deal  op=ons,  you  can   Abhas Gupta, MD choose  another  path.   Davidow Ventures Mohr @abhasguptamd
  • 19. Value Propositions Lean Launchpad: Digital Health UCSF Entrepreneurship Center October 1, 2013 My  Contact:  Put  LLP  in  Subject  Line  for  extra  points     KARL@CODONCAPITAL.COM   Abhas Gupta, MD Mohr Davidow Ventures @abhasguptamd