Personal Background Grew up in Maharashtra Education: ● IIT Powai ● University of Iowa, University of Illinois UC Products Entrepreneur all my life Company Founded (co-founded) several companies CEO and MD: Renu Electronics 0% revenue Founding Charter Member at TiE Pune from services • Run the Mentorship program at TiE Pune • TiE Angels Chairman of the Electronics Committee, MCCIA Wife, Son (21 years), daughter (17 years) Hobbies: Instrumental Music, Bridge, Chess, Badminton Travelled all over the world….more than I like!!
Entrepreneurship Qualities needed to succeed as an entrepreneur? • Ability to take risk • Ability to work with people • Ability to sell
What are we in business for? • ROS? • ROCE? • ROE? • NW? • Cash?
Lean Manufacturing • Principles used many years ago • Focus on Creation of Value for Customers • Cut everything else • Inventory Do we really • Optimize Capital need the • LEAN STARTUP perfect • Eliminate all wasteful practices product on • Focus on value producing practices Day 1? • Lower the risk • Avoid excessive funding • Your grandma knew this!!!!
Minimum Viable Product (prototype?) • Version of a NEW product • Collect maximum learning with least efforts • Validate assumptions (leap-of-faith?) • Theory of Constraints? • How many assumptions? • Validate customer demand Split MVP • Learning • Cater to early adopters • Basis for product line • MUST BE A SELLABLE PRODUCT • So not a PoC
Who is the MVP for? • Customer? • Channel? • Investor? • Boss?
Deliverables • Actionable metrics (not vanity metrics) • Course correction, if any • Measured risk minimization • Build-Measure-Learn QUICK TO FAIL
Examples: MI Canteen 1985!!! • Bought at Rs 78,000 versus Rs 16,000 previous year • Assumption made: • Can sell at twice the price • Quick validation? Made Rs 1,45,000 for the hostel
Examples: FP3xxx series • Had HMI+PLC combo product • Lower cost HMI arrives in the market • Assumption: • Place for us in the HMI market? • MVP • Based on existing plastics 1 year later: • Based on existing electronics New Moulds • Took lower margin • Time to market: 3 months New design 30% lower LP
Examples: Ossler • Telemedicine product • Need a product for HOME USE • Assumption: • Can stream audio/video over low b/w • Can make for less than $200 • Can get FDA 1 year later: • Doctors can use!!! Moulds • MVP $150 cost • 3D printer iOS App • Industrial Design Market • Stetho, Camera • FDA • Cost over $300
Prerequisites • Target customer • Metrics defined • Quick to Learn methodologies • PDLC • MVP is not about Alpha/Beta testing Product Manager
When would you NOT use MVP? • New model in a series of products? • Cost of Engineering not significant? • Strong Marketing capabilities • Mature companies find it difficult • MVP not accepted as a solution by many companies • Legal and commercial issues • UL, CE, ATEX certifications etc. • No Silver bullet…. Every situation is different
Questions? Contact: ajayb@renuelectronics.com
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