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← 06-16 E._Coli_Example

06-16 E._Coli_Example

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Showing Revision 2 created 09/30/2015 by Udacity Robot.

  1. So Google Search was a very simple multi-sided market--just two sides.
  2. There were users, and there were payers.
  3. But can the canvas actually work
  4. with something more complicated, like in the life sciences?
  5. So here's an example of a business model canvas from a life sciences company
  6. that was going to provide E. coli cell lines for simplified downstream processing.
  7. And they said, "Oh, our customer segment is segmented in niche marketing."
  8. Now, in hindsight, after the end of the class, they were the ones
  9. who actually went in and said, "Well, yeah, that was kind of a definition of what
  10. a customer segment was," but they didn't really describe who.
  11. And their value proposition, as even they realized later, was pretty unclear.
  12. And their channels, when they said web sales, trade shows, and direct sales,
  13. you know, in hindsight, looked pretty unrealistic.
  14. And for partners, they just said, "Well, you know, when we look at it now,
  15. it really kind of looks like a random list of hopefuls."
  16. So let's see how they got from something that started over here--
  17. which you shouldn't laugh because your first canvas might have looked like this--
  18. and what happened after they got out of the building.
  19. And so now you could see, instead of segmented and niche market only,
  20. they started to understand, "Oh, maybe the market is somebody in something specific
  21. by a farmer, by a technology, or food"--still kind of vague,
  22. but they're getting a little better, and then they're still a little vague on their feature set,
  23. gains and pains, and value proposition.
  24. They're getting a little more refined about partners.
  25. And then, as they went down, they kind of understood.
  26. "Oh, we understand what a value proposition is; it's not like
  27. what our technology is--it's what gain and pain we're providing."
  28. So simplify protein purification, increase yield, increase throughput, decrease cost.
  29. Now we're making a lot more sense, and now, if you look at the customer segments--
  30. oh, now they're actually getting down to very specific groups.
  31. Not yet the people in there, but they're now actually going, "Oh, these are the
  32. people we should be talking to; and our partners are now also getting specific,
  33. and they're getting some very interesting traction
  34. on what potential revenue streams work."
  35. And, if we look at their next rev, the things in red are the changes.
  36. So now they're looking at industrial enzyme manufacturers,
  37. their key activities are R&D, and production support is their next change.
  38. And then, finally, they now kind of verified--"Yep, these look like
  39. our customer segments; here are our customer relationships.
  40. More than likely we'll make money from royalties and commercial licensing, etc."
  41. And so you could see multiple customer segments, multiple value props,
  42. multiple revenue streams--this is a somewhat complex multi-sided market.
  43. Just by the way, as a note, some of the most complex are actually in the medical device
  44. business where you have users, payers, hospitals,
  45. insurance companies, and regulators, etc.,
  46. and each one needs a value proposition; each one needs to--you need to understand
  47. the revenue model, and so some business model canvases can be quite complex.
  48. Now what's interesting, by the way, about this life sciences company is
  49. here's something that you would think, "Who could I call? I'm just a scientist."
  50. I mean you might be an entrepreneur building an iOS app,
  51. and at least you could ask your friends.
  52. Who do you ask about, you know, E. coli-based purification platforms?
  53. Well, basically, they decided to go through the Rolodex of all the trade shows,
  54. all the conferences, and all the people they've met in their careers,
  55. and, instead of physically driving out to them, they used Skype,
  56. they used phone calls, and they started a cold-calling strategy
  57. which set a stage for a conversation.
  58. And they had two or three of their team on the call.
  59. So they would send the message to contact, they'd set an appointment,
  60. they'd send out a short summary electronically,
  61. they'd have a conversation, and follow up.
  62. And they also used survey tools; they used LinkedIn and Surveymonkey,
  63. but when we were counting how many contacts they made,
  64. we didn't actually count them in their progress.