how to build a viable business model - piyush chaplot
DESCRIPTION
uploaded with permission from Piyush Chaplot of Innosight VenturesTRANSCRIPT
Piyush’s Background
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Innosight Ventures – Background
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Innosight (US) founded by Prof. Clayton Christensen of Harvard Business School in 2000 to help clients apply the theories of Disruptive Innovation, “jobs to be done” and “emergent strategy”
Strategy consulting engagements, primarily with Fortune 500 companies (e.g., P&G, J&J, Medtronic, Microsoft , Unilever, …)
Innosight Ventures (Singapore) Incubate startup companies which we
believe have Disruptive Innovation potential Backed by National Research Foundation Focus on Singapore-based early-stage startups Investments up to S$600K Board participation, hands-on involvement Started in 2009. 6 startup investments to date.
Great idea = Great Business?
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Software-based audio mixing console. Breakthrough usability, cost effective, disruptive to a large industry. (approx. $1 billion) Tried, and tried, to sell
through traditional pro-audio distribution channels
Industry space with few high-visibility acquisitions
The pro-audio geeks like their complex mix consoles. Was this product really a pain killer they wanted?
Company failed after 3 years
Turning an idea into a viable business
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Kiosk-based laundry services for the masses. Clear job to be done in emerging markets. Multi billion dollar opportunity.
Started with kiosk based model. Very competent CEO. Unit economics working but not enough to cover overheads.
Tried Hub and Spoke but failed. Tried franchising but failed. Successfully pivoted to a home
delivery solution now and raised Series A from independent investors.
Investor’s delight
• Proven Unit economics • Creative customer acquisition strategies• Getting paid particularly in B2B type
businesses• Shorter product development lifecycles.• Overall bottoms up business plan that makes
sense. • Raising enough to survive for 18 months • Not just a very local/lifestyle business (Scalability)• Real planning (not just for investors)
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Stages of business model implementation
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Questions?
Piyush Chaplot
Innosight Ventures
8©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com
Pause to Ponder
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