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The Lean Startup Model for Healthcare
Day 2, 5th November 2015, Morning session 10.00am-10.30am
Matrix Level 4, Breakthrough+Discovery Theatres
Hugh Mason, Co-founder and CEO, JFDI.Asia
[email protected] @hughmason
79 Ayer Rajah Crescent #03-01 Singapore 139995 With thanks to: JFDI Clients & Colleagues, Stuart Smith and Alex Danco for inspiration. This presentation includes numerous borrowed graphics, to which I hope I have included attribution. If not my apologies - please allow me to correct any omissions
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Coming Up
Introducing JFDI
Why Lean Startup Matters for Healthcare
How Lean Startup Does and Doesn’t Work
What are Some Opportunities for Singapore?
Suggestion: Q&A at panel 10:45
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First ASEAN startup accelerator, backed by IIPL, Fenox VC, Family Offices, HNWI’s
Accelerator has attracted over 2,000 startup teams from 80+ countries.
Pre-Accelerator has supported 250 teams comprising 900 people via MOOC
USD2m pre-seed capital deployed into 69 startups, >50% raised median USD550k
No exits yet but 48% IRR (unrealized).
Over 300 jobs created, >50% of which are in Singapore and >50% filled by SCPRs.
Team of 16 split Singapore-Philippines.
Pioneered Lean Startup and disciplined entrepreneurship methods in Asia
JFDI.Asia
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1
Why Lean Startup Matters
for Healthcare
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Macrotrend 1 - Demographics
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Macrotrend 2 - 42% of internet users are in Asia
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Macrotrend 3 - Weightless Giants
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Macrotrend 4 - The Service Dominant Mindset
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Macrotrend 5 - Unbundling
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Macrotrend 6 - New Innovation Frameworks
“Plan & Perfect v. Launch & Learn”
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“Plan & Perfect” - Vision Based Innovation
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“Launch & Learn v. Plan & Perfect”
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“Launch & Learn v. Plan & Perfect”
Discovery Based Innovation
“Launch & Learn” - Discovery Based Innovation
Design Thinking
Lean Startup
Agile Methods
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Problem Customer Discovery
Problem- Solution Fit
Market- Solution Fit
Individuals
Teams
Problem Statement
Minimum Viable Prototype
Traction
Seed Stage Startup
Series A
Stage SME
Startup Weekends, Hackathons
Product Development
Customer Discovery
Growth Hacking
Demo Day
“A startup is a temporary organization designed to search for a repeatable and scalable business model” - Steve Blank
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Two of the Risks in Innovation
Market Risk- Should it be done?
Technology Risk - Could it be done?
LOW
HIGH
HIGH
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Business Model Innovation
Market Risk- Should it be done?
Technology Risk - Could it be done?
LOW
HIGH
HIGH
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Market Risk- Should it be done?
Technology Risk - Could it be done?
LOW
HIGH
HIGH
Tech2Market - Vision Driven
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Market Risk- Should it be done?
Technology Risk - Could it be done?
LOW
HIGH
HIGH
Tech2Market - Vision Driven
“Teams that pursued traditional methods of starting a company had an 18% success rate in receiving SBIR Phase I funding” (Blank 2013)
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Market Risk- Should it be done?
Technology Risk - Could it be done?
LOW
HIGH
HIGH
Market2Tech - Discovery Driven
“Teams that … took the Lean Launchpad class ... had a 60% success rate” (Blank 2013)
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2
How Lean Startup Does and Doesn’t Work
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“Launch & Learn v. Plan & Perfect”
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< Solution < Value Proposition
Horses? Faster?
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How the 19th Century ‘Bundled’ Mobility
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“If I’d asked people what they wanted,
they would have said: more hospitals”
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3
What are the Opportunities
for Singapore?
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“The assumption that the pursuit of drugs, diagnostics, devices and digital health is all about the execution of the science is in most cases a mistake.” (Blank 2013)
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Conclusions - 1
Healthcare is a business
Business model innovation matters as much as science.
We can choose how we bundle components of healthcare.
New frameworks for innovation let us test critical hypotheses relating to regulation, customers and funding before we commit significant resources to science.
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Conclusions - 2
The way forward is to:
assess regulatory risk before we design and build.
gather data essential to understand customer purchases before we do the science.
define clinical utility now, before we spend millions of dollars.
identify financing vehicles before we need them.
