Personal Background Grew up in Maharashtra Education: IIT Powai - - PowerPoint PPT Presentation

Personal Background

Grew up in Maharashtra Education:

• IIT Powai
• University of Iowa, University of Illinois UC

Entrepreneur all my life Founded (co-founded) several companies CEO and MD: Renu Electronics Founding Charter Member at TiE Pune

• 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!!

Products Company 0% revenue from services

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
• Optimize Capital
• LEAN STARTUP
• Eliminate all wasteful practices
• Focus on value producing practices
• Lower the risk
• Avoid excessive funding
• Your grandma knew this!!!!

Do we really need the perfect product on Day 1?

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
• Learning
• Cater to early adopters
• Basis for product line
• MUST BE A SELLABLE PRODUCT
• So not a PoC

Split MVP

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
• Based on existing electronics
• Took lower margin
• Time to market: 3 months

1 year later: New Moulds 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
• Doctors can use!!!
• MVP
• 3D printer
• Industrial Design
• Stetho, Camera
• FDA
• Cost over $300

1 year later: Moulds $150 cost iOS App Market

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