Dialysis Entrepreneurial Assignment to Prepare for Dialysis Den In order to help you streamline your progression for the Dialysis Den, I have separated the main foci of the LEAN Business Model Canvas that Chris Gillis showed us last semester, and to remind you of the content, with more explanation. In your Dialysis Den group, flow through the following note, filling in all information with respect to your product or innovation. You must use the same headings and indicate where you are in your research. You ought to have thought about most parts by now, and now need to break them down and spend significant time to develop each section, which will end up in your Dialysis Den Strategy, Presentation and Powerpoint. This will constitute part of your Dialysis Den grade. Studying the Value Proposition – much more detail than last semester 1. Identifying the problem 2. Assessing the competition 3. Designing the solution Using your project idea, flow through the following slides from our presentation with Chris Gillis. There are four assumptions in the canvas related to the value proposition, which are: 1. Problem – what problem are we solving 2. Solution – what is the solution that will solve this problem 3. Customer Segments – who has the problem and is willing to pay for a solution 4. Competition – what are they doing now to solve the problem Task....Answer these questions using research you can find without directly giving your idea away. Use the following as your guide Part 1: The Problem : The project may take on different sequences of events depending on whether you are considering partnering with a company or whether you have decided to have non- disclosure agreements signed with a company. As long as you can demonstrate substantial weekly progress with your project, you will be given credit for your time in the final mark at 2 marks per week. Inclusive in the three weekly updates are the following tasks Your job is to identify; a. A need that is not currently being addressed adequately, which has to be significant enough that a group of customers is willing to pay for a solution b. The need has to be defined in enough detail to enable the design of a solution. WHAT NEED ARE YOU ADDRESSING????? Task 1 1. We usually have people come to us with an idea for a solution and declare that they are ready to go once they get some funding. Almost all of the time that is not the case. An idea or solution that doesn't solve a well-defined problem has resulted in many famous and expensive disasters. Go through an assessment of the steps you need to take now. Keep notes in your meeting of your progression through this process to hand in with this section. 2. We have to identify a need that is not currently being addressed adequately. This need has to be significant enough that a group of customers is willing to pay for a solution; hopefully your solution. The need has to be defined in enough detail to enable the design of a solution. 3. How many people and whom in your group spent time working on assessing the need behind their business idea? Preferably the entire group is brainstorming. Task 2. In your group run through the checklist for your chosen problem. These may have come from your GUESS sheet. 1. Is the problem real? 2. Is the problem not addressed adequately? 3. It the problem substantial? 4. Will someone pay to solve the problem? 5. How do you turn guesses into facts....TEST 1. Start with the people we assume have this problem. We need to look at the problem or jobs to be done through the eyes of the people who have the problem. Designing a test: To test a problem we need to speak with people about the problem without reference to the solution. The test will often be in the form of a set of questions. We need to ensure the responses are measurable and that we can set a pass/fail target. 1. Discuss the problem, not the solution 2. Design a simple test 3. Use a script 4. Make it measurable (pass/fail) After you have proceeded through these steps; 1. You may decide to abandon the business concept altogether or you may decide to pivot to a different model or user need. Either way you haven't spent a lot of time and resources on something no one wants to pay for. Recap Start with problem, not solution Start with best guesses about the problem Turn your guesses into facts by testing with real customers Iterate until you find a problem that is worth fixing Part 2: The Competition Plan, Discussion and Solution How do you conduct a competitive analysis? A big problem with business model templates is that people mindlessly fill in boxes. The competitor analysis is probably the worst part of most business models INSTEAD Focus on your Customer: What are they doing now to solve the problem? Task Three: Identify your unhappy and happy customers Identified real problem with a customer willing to pay Determined which customers are unhappy with current solutions Early Solution Design: 2. Target is early adopters, not mainstream market 3. Get something into customer hands quickly 4. Product concept, not product itself 5. Objective to learn rather than make money We are looking to start with the group we have identified as early adopters. Initially we may have more than one segment that are good candidates. As we go through our design we will prioritize which ones to start with. An early adopter is someone with the need that is currently using a home made work around or is going without. They will be happy with a less than complete product set since it is better than what they have now. Another characteristics of an early adopter is someone that wants to be the first to have a product and is willing to take one that still has bugs or deficiencies. This definition is often used in consumer markets where the decision is not fully economic but also based on emotional factors. You are not selling to a mainstream market that will compare your product to one they are currently using. Your product is not good enough yet to go after that market and you are up against entrenched competition. Several Iterations from Concept to Product: Once you have the features for a MVP you then build it and get it into the hands of the customers to test. You might start with a simple prototype or story board first to make sure you have the design concept correct. People often don't know what they really want or don't want until they see it. Again you may have a few rounds of testing to get the MVP down. We want the customer to help us determine which features of the product are most important by solving the most critical needs or jobs to be done. It may not fulfill the need completely but enough to make them want to pay for the product. When we understand the design that will solve the customer's basic problems we begin to build Once you have the features for a MVP you then build it and get it into the hands of the customers to test. You might start with a simple prototype or story board first to make sure you have the design concept correct. People often don't know what they really want or don't want until they see it. Again you may have a few rounds of testing to get the MVP down. We want the customer to help us determine which features of the product are most important by solving the most critical needs or jobs to be done. It may not fulfill the need completely but enough to make them want to pay for the product. Part 3-Draft Minimum Viable Product: (20%) (Due March 7) 1. smallest possible group of features 2. work as a stand-alone product while 3. solves at least the 'core' problem 4. demonstrating the product's value By starting with the need we ensure we start our product rollout from the right starting point. We are building something that someone will pay for. Summary 1. The Problem: Start with the problem, not the solution Turn guesses about the problem into facts by getting out of the building! Iterate until you find a problem that is worth fixing 2. The Competition: Determine which customers are unhappy with the current solutions 3. The Solution: Develop product concept and get it into the hands of early adopters Iterate until you identify the features for an MVP