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Find the Value PropositionThrough Ideation
Helping the Purdue community move ideas to impact through new ventures.
Juliana [email protected]
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Contents
1) Napkin Drawing
2) Problem Statement
3) Market Landscape
4) Market Development
5) Customer Architype
6) Competitors
7) Pitch Deck Alpha
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Idea to Impact
Perspective of Investors
Time Money Resources
$
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Idea to Impact
Risk & Return
Financial RiskTime to Revenue
Time to Profit
Market RiskCustomer willing to pay?
Technology RiskNew and Novel?
People RiskExpertise
ExperienceNetwork
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Napkin Drawing
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Idea to Impact
Napkin Drawing
• Effectively communicate through verbal and visual communication• What it is
• What it does
• NOT too much detail
• Focus on what makes it unique• Avoid industry jargon
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Idea to Impact
Napkin Example 1
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Idea to Impact
Napkin Example 2
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Idea to Impact
Napkin Example 3
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Idea to Impact
“I have , it does for customer.”
Conversation Example
Allow the other person to lead the conversation and ask questions.
Create Intrigue
converseexplanation understanding
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Idea to Impact
Methods for Sharing
20 Minute Pitch
2 Minute Elevator Pitch
2 Sentence Intro• Product• Differentiator• Customer
+ Problem+ Market size
+ Channels+ Milestones+ Competitors+ Financials
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Up to 26 km/L Fuel Economy
5-Speed Transmission
100% Readily Available PartsFound in Sub-Saharan Africa
Hydraulic Brakes on all Wheels
PTO to Attachments
1000 kgPayload
Bench Seating for Passengers
Suspension on all Wheels
32 kmhTop Speed
Our Solution: The MAPS
Designed by students at Purdue University in West Lafayette, Indiana, USA in partnership with ACREST in Cameroon.
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Problem Statement
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Idea to Impact
Problem Statement
1
Real Problem
4
Quantity
2
Shock Value
3
3rd PartyValidation
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Idea to Impact
Problem Statement
A real problem:• A big enough problem that the
customer will pay money to solve it
• An urgency to solve it
• It either ‘saves money or makes
money’
• B2B
• B2C
1
Real Problem
4
Quantity
2
Shock Value
33rd Party
Validation
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Idea to Impact
Problem Statement
2
Shock Value
1
Real Problem
33rd Party
Validation
4
Quantity
Has Shock Value:• A statement of discontent about
the problem
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Idea to Impact
Problem Statement
3
3rd PartyValidation
2
Shock Value
4
Quantity
1
Real Problem
Includes a 3rd Party Validation:• Reference an external statistic or
source to validate the problem
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Idea to Impact
Problem Statement
4
Quantity
3
3rd PartyValidation
1
Real Problem
2
Shock Value
Can Be Quantified:• Know the key metrics of the
problem
• How big is the problem?
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Normal
The Challenge: Transportation
31
1000
85% unpaved
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Idea to Impact
Problem Statement Example
• In Africa, there are 31 vehicles for every 1,000 people. • 90% of transportation of agricultural produce is done on the heads of
women in children (East Africa) http://www.fao.org/docrep/018/i3259e/i3259e.pdf
The AgRover provides a low cost multi-utility vehicle for transportation and agriculture.
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Market Landscape
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Idea to Impact
Market Landscape
• Demonstrate where your idea fits in the existing landscape
• Illustrate the relationships between the existing solutions
• Identify the key forces that drive the marketplace
• Find your product market fit
X
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Idea to Impact
What Category?
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Idea to Impact
Building Your Category Map
Tips to Title Your Map:• Think at a high level – 100,000 ft view• Ask yourself- “Where does this idea fit?”• Think broadly about the alternative solutions and
approaches
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Idea to Impact
Market Drivers
Tips to Determine Market Drivers:• Ask yourself “What is driving people to chose one solution
over another in the market today?”• Choose your divers based on your ideal customer• Do NOT consider cost/price
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Idea to Impact
Brainstorm Current Technologies
Tips to Brainstorm Categories:• Ask yourself “What are the alternative ways the problem is
being solved today?”• Think categories, not individual products• Consider all possible solutions, even low-tech options
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Idea to Impact
Map Your Drivers & Categories
Mobile Devices
Smart Pens
Laptop Computers
Smart Watches
Cellular Phones
Smart Phones
Tablet Devices
Portability
Func
tiona
lity
E-reader
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Idea to Impact
Highlight the Area of Opportunity
Smart Pens
Laptop Computers
Smart Watches
Cellular Phones
Smart Phones
Tablet Devices
E-reader
Portability
Func
tiona
lity
Mobile Devices
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Market Development
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Idea to Impact
Market Development
• Explore the best possible customer sets for an innovation• Consider new uses and potential applications beyond your
original thinking• Explore possible fields of use• Drill down and “discover” specific customer subgroups• Determine which customers really value the unique
attributes that you have developed
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Idea to Impact
Market Development
A market is.. a broad landscape of buyers looking to solve different types of problems
Example: Healthcare
A segment is…an identifiable sub-group of buyers looking to solve the same kind of problems
Example: Neurosurgeons
A lead customer is...a representative of the target segment (who is ready to work with you now)
Example: Dr. Smith at Cleveland Clinic
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Idea to Impact
Build Your Market Development
Unique Featuresof Your Innovation• Two-way in motion IP
connectivity• Predictive switching
between cellular and satellite networks
• Intelligent gateway to monitor, prioritize and route traffic balancing cost and throughput
Rail Emergency Response
Fleet Health Care
Consumer
Paramedics
Commuter Buses
LimousineServices
RemoteDiagnosis
Mobile Clinics
CommuterFire/Rescue
DisasterRecovery
Inter-City
Freight
RVs
Pleasure Boats
EMS
High-Speed
Light Rail
Commercial Trucking
Rental Cars
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Idea to Impact
Build Your Market Development
Unique Featuresof Your Innovation• Two-way in motion IP
connectivity• Predictive switching
between cellular and satellite networks
• Intelligent gateway to monitor, prioritize and route traffic balancing cost and throughput
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Idea to Impact
Build Your Market Development
Unique Featuresof Your Innovation• Two-way in motion IP
connectivity• Predictive switching
between cellular and satellite networks
• Intelligent gateway to monitor, prioritize and route traffic balancing cost and throughput
Rail Emergency Response
Fleet Health Care
Consumer
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Idea to Impact
Build Your Market Development
Unique Featuresof Your Innovation• Two-way in motion IP
connectivity• Predictive switching
between cellular and satellite networks
• Intelligent gateway to monitor, prioritize and route traffic balancing cost and throughput
Rail Emergency Response
Fleet Health Care
Consumer
Paramedics
Commuter Buses
LimousineServices
RemoteDiagnosis
Mobile Clinics
CommuterFire/Rescue
DisasterRecovery
Inter-City
Freight
RVs
Pleasure Boats
EMS
High-Speed
Light Rail
Commercial Trucking
Rental Cars
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Idea to Impact
Build Your Market Development
Unique Featuresof Your Innovation• Two-way in motion IP
connectivity• Predictive switching
between cellular and satellite networks
• Intelligent gateway to monitor, prioritize and route traffic balancing cost and throughput
Rail Emergency Response
Fleet Health Care
Consumer
Paramedics
Commuter Buses
LimousineServices
RemoteDiagnosis
Mobile Clinics
CommuterFire/Rescue
DisasterRecovery
Inter-City
Freight
RVs
Pleasure Boats
EMS
High-Speed
Light Rail
Commercial Trucking
Rental Cars
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Customer Archetype
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Idea to Impact
Customer Archetype
• Profile the target customer environment• Share insight on the customer needs, motivations,
organizational characteristics and buying criteria• Sketch a picture of each proposed target customer segment• Outline four key customer attributes:
• Definers• Descriptors• Context• Compatibility
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Idea to Impact
Definers
Real Problem Shock Value
Definers:• Geography or Location
• Size of Target Organization
• End User Size/Population
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Idea to Impact
Descriptors
Real Problem Shock Value
Descriptors:• Buying Decision Process
• Titles of Decision Makers
• Product Criteria
• Evaluation Metrics
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Idea to Impact
Context
Real Problem Shock Value
Context:• Customer Uses for the Product
• Application Areas/Departments
• Goals: Cost Cutting, Revenue
• Generation, Service Quality, etc.
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Idea to Impact
Compatibility
Real Problem Shock Value
Compatibility:• Interfaces Required
• Industry Standards
• Certifications and Approvals
• Integration to Existing Platforms
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Idea to Impact
Customer Types
Customer Value Proposition TypePatient
Family Member
Doctor
Hospital Admin
Insurance Company
Quicker Recovery
Living Member
Reputation/Result
Money Saved
Fewer Claims
End User
Decision Maker
Influencer/Saboteur
Decision Maker, Influencer, Saboteur
Decision Maker, Influencer, Saboteur,
Payer
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Idea to Impact
Milestones
• Outline to the larger plan• Show ability to create detail plan• Visualize your strategic plan• Identify your goals/milestones
• What do you need to do• How much money you need• How long it will take you
MilestonesMilestones
Phase I
Phase IIPhase III
Milestones
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Idea to Impact
Milestones
• Milestone 1• Milestone 2• Milestone 3• Milestone 4• Milestone 5
Milestones
• Develop prototype• 10 beta testers
Milestones
• Milestone 1• Milestone 2• Milestone 3• Milestone 4• Milestone 5
Milestones
Phase I
Phase II
Phase III
3-6 Months$250K
$6-12 Months
$750K
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Competitive Profile
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Idea to Impact
Competitive Profile Tool
Purpose of the tool:• Develop an awareness of the competitive landscape• Create a profile of your key competitors
Tool lets you:• Capture information about your competitors in three areas:
• Product/Technology• Markets/Customers• Organization/Operations
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Idea to Impact
Competitive Profile Tool
Price range, quantity, quality, ability to customize, etc.Price
Difficulty range, connectivity, size, weight, etc.Ease of Use
How accurate are the results, does the product or service deliver what it promises, etc.
Accuracy
Third party tested, meets industry standards, etc.Validated
Identify metrics used by customers to select a product.
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Idea to Impact
Competitive Profile Tool
Company/Product
Step 1:Identify 3-5Competitive Products
Swipe Sense
HanGenix
Clariton
Hyginex
RKN Corp
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Idea to Impact
Company/Product
Swipe Sense
HanGenix
Clariton
Hyginex
RKN Corp
Competitive Profile Tool
Step 2:Identify Evaluation Metrics
NotificationOf
Non-complianceData
TrackingQuality of
Wash PriceWashing orDisinfecting
System
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Idea to Impact
Company/Product
Swipe Sense
HanGenix
Clariton
Hyginex
RKN Corp
NotificationOf
Non-complianceData
TrackingQuality of
Wash PriceWashing orDisinfecting
System
Competitive Profile Tool
Step 3:Indicate Competitor Offerings
×
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Team
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Idea to Impact
Your Team
Team SkillsTrack RecordDomain ExpertiseAdvisors
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Presentation & Pitch Template