MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Opportunities to Leverage Knowledge and Expand the Business Model

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Opportunities

Market: Is there an unfulfilled or unanswered need?

Challenges: What is the right business model?

Nimble: How to continuously respond to the market

Manage Strategies to address uncertainty

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Opportunities

Seeking: Identifying a viable business model

Testing: Experimenting and hypothesizing

Listening: Internalizing the needs of customers

Refining: Iteratively responding and modifying

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Opportunities

Current State: Fee for service lab is about ten years old A range of services are currently offered Marketing has been by word-of-mouth Sense there is an unfulfilled need

Competition: University of Wisconsin WiCell lab

Relationships: OHSU researchers Knight Diagnostic Lab

Potential: Cancer research institutions Pharmaceutical trials Cell repositories

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Key principles: Craft a business model canvas

Develop an untested hypothesis

Define the requirements and resources

Prototype a minimum viable product

Road test by “getting out of the building”

Evaluate and refine the prototype

Repeat or pivot

Agile Development

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategize

Analyze

Implement Road Test

Evaluate

Agile Development

Revisit/ Refine

Pivot

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Business Model Canvas Efficiency Value

Key Partnerships

Researchers

Cancer institutes

Institutional owners of transgenic cores

Pharmaceutical companies

Key Activities Karyotype chromosome analysis: mouse/ human/ dog

Cell line verification via karyotyping

Designer FISH probes

Reading cell samples & paraffin tissue

Transgenic core testing to improve clone outcomes

Breakage test to determine genome instability

Value Proposition Data and outcomes prove the efficacy of services

Cost/ benefit of transgenic core cell line verification/ business case in time and cost

Web list of past and present customers

Customized cell line testing

Parental cell line testing for institutions

Rapid transgenic mouse studies (24 – 48 hours)

Relationships Knight Labs: self-labeled FISH probes

Dr. Pejovic: chromosome breakage studies

Dr. Drucker: confirmation FISH

Dr. Borzy: clinical trial support

Dr. Keller: karyotype chromosome analysis

Customer Segments Knight Labs

OHSU researchers

Dr. Chen, Harvard

Dr. McMann, USC

Pharmaceutical companies clinical trials

Cell repositories: Coriell, ATCC

Key Resources Confirmation of micro arrays via custom FISH probes

Channels How do we reach our customers?

Cost Structure $200/clone

8 to 10 samples per month

Are we charging enough??

Revenue Streams Current price list is based on costs

Sliding scale based on funding source?

Can there be revenue sharing with the clinical lab?

Can custom FISH probes be licensed? Are they IP?

Competitors: WiCell University of Wisconsin

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Business Model Canvas Efficiency Value

Key Partnerships

Researchers

Cancer institutes

Institutional owners of transgenic cores

Pharmaceutical companies

Key Activities Karyotype chromosome analysis: mouse/ human/ dog

Cell line verification via karyotyping

Designer FISH probes

Reading cell samples & paraffin tissue

Transgenic core testing to improve clone outcomes

Breakage test to determine genome instability

Value Proposition Data and outcomes prove the efficacy of services

Cost/ benefit of transgenic core cell line verification/ business case in time and cost

Web list of past and present customers

Customized cell line testing

Parental cell line testing for institutions

Rapid transgenic mouse studies (24 – 48 hours)

Relationships Knight Labs: self-labeled FISH probes

Dr. Pejovic: chromosome breakage studies

Dr. Drucker: confirmation FISH

Dr. Borzy: clinical trial support

Dr. Keller: karyotype chromosome analysis

Customer Segments Knight Labs

OHSU researchers

Dr. Chen, Harvard

Dr. McMann, USC

Pharmaceutical companies clinical trials

Cell repositories: Coriell, ATCC

Key Resources Confirmation of micro arrays via custom FISH probes

Channels How do we reach our customers?

Cost Structure $200/clone

8 to 10 samples per month

Are we charging enough??

Revenue Streams Current price list is based on costs

Sliding scale based on funding source?

Can there be revenue sharing with the clinical lab?

Can custom FISH probes be licensed? Are they IP?

Competitors: WiCell University of Wisconsin

Resource Driven Innovations originating from existing infrastructure to expand or transform the business model

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Recommendation

Leverage agile development tools to create a fee-for-service lab start-up

Begin with a focus on transgenic core testing

Manage the staff time and resource investment

Embrace a nimble mindset and be ready to pivot

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Develop a Hypothesis

Frame the project objectives

Appropriate people/ right knowledge

Provide the appropriate resources

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Analyze

Co-create with others across the organization

Look beyond the status quo

Explore multiple possibilities

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Implement

Proof of concept via data and testimony

Demonstrate technique and speed

Create a tangible Minimum Viable Product (MVP)

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Road Test

Target a range of customers

Spend sufficient time with each one

Strong communication tools

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Evaluate

Continually re-assess

Re-visit the hypothesis

Manage synergies

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Strategy First Iteration Cycle – Six Month Plan

Develop a Hypothesis Analyze

Implement Road Test

Evaluate

“We can sell transgenic core testing to academic research institutions.”

Define technical specifications and requirements Identify key resources and partnerships ISH probes

Build prototype (First round may be virtual prototype)

Road test MVP with select customer segments

Document feedback, efficacy, cost and revenue

ç Revisit and Refine or Pivot to New Hypothesis ç  

Six Month Outcomes

Validate there is a market for transgenic core testing or pivot to a new hypothesis

Sample customers regarding their interest and price expectations

Understand the resources needed to build a start-up

Map a path toward a proven business model

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Execution

Timeline: Start with a six month plan

Deploy an agile development technique

Track milestones and manage progress

Resources: Committed start-up team

Prototype development lab time

MVP value proposition

Travel and marketing budgets

Needs include: Strong customer relationships

A robust marketing strategy

Diversified revenue streams

A clearly defined cost structure

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

Opportunities to Leverage Knowledge and Expand the Business Model

MGMT 545 :: Goodfriend OHSU Research Cytogenetics Fee for Service Lab

The following materials were referenced for this presentation:

:: “Business Model Generation” Osterwalder & Pigneur, 2010

:: “Why the Lean Start-up Changes Everything” Blank, HBR, 2013

:: www.businessmodelhub.com

:: www.wicell.org

References