1 2 Dean Sawyer Co-Founder, CEO and CXO of Sentrian, the worlds - - PowerPoint PPT Presentation

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Dean Sawyer

• Co-Founder, CEO and CXO of Sentrian, the

world’s first remote patient intelligence platform aspiring to eliminate all preventable hospitalization

• Advisor to Frost Data Capital and SeedHIT
• Former Senior VP at Allscripts
• Former Chief Business Development Officer at

Physicians Interactive

• Winner of largest business plan contest in the

world

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• The Lean Startup up isn’t just about how to create a more successful

startup, it’s about how to use Lean Startup tools and methodologies to improve just about anything we do in any industry

• In this Webinar you’ll learn how to apply the Lean Startup process,

learn how to use Lean tools and hear real-world examples

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Using Lean Startup Tools in Healthcare

My first use of the Lean Startup

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• August 2012
• Met Dr. Jack Kreindler at Exponential Medicine

Conference with a vision for a new company

• Asked me to be co-founder and CEO
• No technology
• No business model
• Seed funding from Frost Data Capital, a new and

unproven incubator and investment vehicle

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Why do startups and new products fail?

• They spend too much time, money and effort building the

wrong product

• They don’t validate their hypothesis

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Lean Startup Objective

Systematically eliminate risk and uncertainty from the business plan, product or idea

• 1. Document your Plan A
• 2. Identify the riskiest parts of your plan
• 3. Systematically test your plan

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The traditional business plan is a form of waste

• Because it’s wrong; includes

dozens of unproven hypothesis

• Incredibly time consuming
• No one reads it
• Not action oriented

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Waste: Any human activity which absorbs resources but creates no value

Lean Startup uses a one-page Lean Canvas

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Deconstruct your business model into 9 distinct parts that are then systematically tested from highest to lowest risk

Validation stages

Stage 1: Understand the problem – Conduct formal customer interviews or other techniques to understand whether you have a problem worth solving. Who has the problem, what is the top problem, and how is it solved today? Will they pay for it? Stage 2: Define the solution – With knowledge from Stage 1, take a stab at defining the solution, build a demo that helps the customer visualize the solution and test it with customers. Will the solution work? Who is the early adopter? Does the pricing model work Stage 3: Validate Qualitatively – Build your Minimal Viable Product (MVP) and soft-launch it to early adopters. Do they realize the unique value proposition? Are you getting paid?

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Validation stages

Stage 1: Understand the problem – Conduct formal customer interviews or other techniques to understand whether you have a problem worth solving. Who has the problem, what is the top problem, and how is it solved today? Stage 2: Define the solution – With knowledge from Stage 1, take a stab at defining the solution, build a demo that helps the customer visualize the solution and test it with customers. Will the solution work? Who is the early adopter? Does the pricing model work Stage 3: Validate Qualitatively – Build your Minimal Viable Product (MVP) and soft-launch it to early adopters. Do they realize the unique value proposition? Are you getting paid? Stage 4: Verify Quantitatively – Launch refined product to larger

• audience. Have you built something customers want? How will you

reach customers at scale? Do you have a viable business?

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The validation team

• The Problem Team – Mostly involved with “outside-the-building”

activities such as interviewing customers, running usability tests,

• etc. (CEO, CMO)
• The Solution Team – Mostly involved with “inside-the-building”

activities such as writing code, running tests, deploying releases, and so on (CTO, Chief Architect)

• The team must have the following combined talent:

✓ Product Development - Experience and expertise in the specific technologies you are using (CTO, Chief Architect) ✓ Design – Aesthetics and usability (marketing) ✓ Marketing – Everything else (CEO)

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The Lean Startup validation cycle

Pivot BEFORE product/market fit, optimize AFTER

Problem Interview structure (“get out of the building”)

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Problem Hypothesis: Preventable hospitalizations are the biggest chronic disease problem

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Validated

Problem Hypothesis: MA plans have the most pain around the preventable hospitalization problem

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Validated

Problem Hypothesis: Biggest problem is remotely detecting heath deterioration

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Invalidated

How is the problem being solved today?

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Problem exit criteria

• 1. Identified a problem worth solving
• 2. Identified customers with the greatest pain
• 3. Identified the most important components of the problem
• 4. Can describe how customers are trying to solve the

problem

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Solution validation objectives

• Confirm early adopters interested in a solution
• Validate how we will solve the top 2-3 problems
• Identify the minimum viable product
• Determine initial pricing model
• Determine customers wiliness to pay for a solution and the

price they will bear

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Solution Interview structure (get out of the building

again)

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Sentrian’s first “minimal viable product”

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Limitations:

• Poor patient selection
• Only focus on one condition
• Single measurement
• Primitive analytics in the form of binary alerts

Results in:

• Missed patient deterioration
• High false alarms
• Staff inefficiency
• Only hours to act

MVP: Product with the highest return on investment versus risk

Sentrian’s first “minimal viable product” resulted in 3 customer commitments

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Determine initial pricing model and price customers are will to bear

Hypothesis before interviews:

• Devices: Customer would purchase upfront (Capital)
• Analytics: We could charge $10.00 PMMPM

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Results post interviews:

• Devices: Invalidated - Customer wants to lease devices (PMMPM)
• Analytics: Invalidated - Customers willing to pay $40.00 (PMMPM)

The highest form of validation is a PAYING customer

How viable is your minimal viable segment?

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Can we scale this business model?

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4 million members/patients x $1,000 year = $4 billion in annually recurring revenue

Solution exit criteria

• 1. Identified early adopters with the problem
• 2. Defined the minimum features needed to solve the problem
• 3. Identified a price customers are willing to pay
• 4. Confirmed we can build a business around it

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Lessons learned

• 1. Don’t skip problem validation!
• 2. Some customers don’t know what they want (iPhone)
• 3. Lean Startup books are B2C focused, must adapt to B2B

and to enterprise software solutions

• 4. Healthcare regulations makes it more difficult to validate

products but you can get creative

• 5. Sometimes your MVP is all you need (Craig’s List,

Minecraft)

• 6. Getting venture capital is easier
• 7. Board meetings are easier

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Lean Canvas training tools

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Lean Stack training tools

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Questions?

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Dean Sawyer Sentrian, Inc dean@sentrian.com www.sentrian.com

GO FORTH AND VALIDATE!

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Leveraging the revolution in biosensors and machine learning with the aspiration to eliminate all preventable hospitalization