This presentation discusses customer development and development of medical devices. The basis for the presentation comes from Lean Startup and author's product development experiences in small and large companies. This was presented in Clinical Engineer training at TUT / Eductech on 20th April 2015.

1. Customer & Medical Device
Development
Stefan Baggström
20-Apr-2015

2. Which one would you prefer?
A) Product ready for sales
or
B) Customers to work with
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3. About me
• Several years at Nokia:
SW platforms and products
• Co-founder & CTO at
Movendos Oy
• Nowadays working on
patient monitors at GE
Healthcare

4. Topics
Background
Customer development
Product development
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5. MOVENDOS –
MCOACH FOR HEALTH COACHING
Background for this presentation
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6. It all started with vision
Physical
Intellectual
Emotional
SpiritualOccupational
Social
Environmental
A world with balanced, healthy and happy people

7. Faced some challengies
• Problem – unknown
• Solution – unknown
• Customer – unknown
• Market – unknown
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8. Nutrition
Physical
activity
Physiotherapy
Psychotherapy
Social exclusion
Mind balance
Preventive healthcare
Healthy habits
Coaching
Tools for effective health coaching

9. CoachCustomer
 Coach’s support to your every day life
 Highly personalized training tasks
 Use with your favorite device

10. GE HEALTCARE –
PATIENT MONITORS
Background for this presentation
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11. Carescape B450, B650, B850
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12. Patient monitors

13. Medical devices – different?
Patient
needs
Medical
practioners
Quality
Systems,
QA&RA
Business
needs
Auditors
Safety
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14. FDA says
You must be able to demonstrate that you are
”Operating in a state of control”
– Define procedures and tasks before you start
– Follow those (do what you say you are going to do)
– Be able to provide objective (documented) evidence
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15. Typical development process
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Planning &
definition
Design &
development
Verification &
Validation
Design transfer &
Product release
E0 E1 E2 ´ E3
Concept
Design control
Design inputs
Dev Plan
Design output
Development
Testing
Change control
Defect Management
Design verification
Design validation
Change control
Defect management Design verification
Design validation
Defect management
Complaint handling
Risk Management
Formal
milestone
reviews

16. Customer involvement
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Market needs
Product concept,
user requirements
Product development
Product
validation
Limited
sales
Clinical testing
Installed base: Feedback from existing customers using existing products
Usability testing

17. All good?
• Assuming business is well with
existing customers
• Assuming incremental
improvement of products is what
it takes
• What if existing business goes
downwards?
• What if (new) competitor
distrups business or technology?
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18. Lean Startup
“The Lean Startup method teaches you
how to drive a startup - how to steer,
when to turn, and when to persevere -
and grow a business with maximum
acceleration.”
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19. What is a startup?
• A startup is a temporary
organization designed to search
for a repeatable and scalable
business model [Eric Ries]
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20. What is a startup?
• Not just inside a garage, but also
inside enterprises and non-profits
• Not all small businesses are
startups
• Startups are typically innovating
in multiple degrees

21. GE introduces FastWorks
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“GE’s a smart company. They
understand the pathology of
bigness.”—Ranjay Gulati
Source: Bloomberg
“It’s exponentially more
significant than a traditional
corporate restructuring. In this
case, you’re trying to
transform how you do
business.”

22. Tieto – establishes internal startup
It combines the
expertise and
customer contacts
possessed by a
large corporation
with the agility
and flexibility of a
start-up company.
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23. Lean hospitals start to appear
• The hospital today is organised
on the twin lean principles of
“flow” and “quality”.
• Doctors and nurses work (and
sit) together in teams.
• Everything is done to “maximise
throughput”.
• The aim is to give taxpayers
value for money. Hospitals
should not be in the hotel
business.
• St Goran’s has reduced waiting
times by increasing throughput.
It has also reduced each
patient’s likelihood of picking
up an infection.
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Source: Economist

24. Principles of lean startup
1. Entrepreneurs are everywhere
2. Entrepreneurship is management
3. Validated learning
4. Build-Measure-Learn
5. Innovation accounting
Source:

25. Meet customer development
• Collaboration with customers
• Iterate and verify
• Problem centric as opposed to
product or technology centric
• Performed in parallel with
iterative product development
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26. Customer development
• The primary
objective of a startup
is to validate its
business model
hypotheses
• Iterate and pivot
until it’s validated
• Only then move into
execution mode
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28. Source: The Customer Development Methodology, Eric Ries

29. Business Model Canvas
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Source:

30. Validated learning
Build-Measure-Learn
1. Test your hypothesis with
Minimum Viable Product (MVP)
2. Adjust as needed
3. Proceed with next hypothesis…

31. What is an MVP?
• A learning tool to
verify your
hypothesis.
• It can be a brochure,
a prototype, or a
product
• Customers determine
if it’s viable
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32. Customer discovery
• Get out of the building
• Test your fundamental hypotheses
– problem
– product concept
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Source: The Customer Development Methodology, Eric Ries

33. 1st step: Customer Discovery
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Source: The Customer Development Methodology, Eric Ries

34. Tools: Canvas, product concepts

35. Tools: personas, day-in-a-life

36. Customer interviews
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Source: http://madebymany.com/blog/
customer-development-a-few-tools-and-resources-or-how-to-become-an-excellent-stalker
+ What if you would
have magic wand?

37. Customer discovery –
exit criteria
• What are the customers’ top problems
• Are customers willing to pay to get
that solved? How much?
• Do customers agree on the solution
• Day of life understood (before and
after product)
• Buyers and influencers understood
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Source: The Customer Development Methodology, Eric Ries

38. Customer validation
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Source: The Customer Development Methodology, Eric Ries

39. Customer validation
”proof of sales”
• Develop a repeatable sales
process
• Focus on earlyvangelists
• Validate buyer/influencer
“organization” maps
• Understand sales model
• Do you have a set of orders?
• Does the business still make
sense?
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Source: The Customer Development Methodology, Eric Ries

40. Mixin agile product development
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Source: The Customer Development Methodology, Eric Ries

41. Some SW development methodologies
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http://cloverleafsolutions.com/methods/software-development-lifecycle.html

42. 4/20/2015 © Movendos 2015 42
http://cloverleafsolutions.com/methods/software-development-lifecycle.html
Make this short to
support learnings in
customer development

43. Engineering tactics
• A/B testing
• Frequent deployments
• High interaction with customers
whenever in contact (also defects)
• Live metrics to see
– How features are being used
– What’s the uptake of a new feature
• First minimum viable functionality
that solves the problem
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44. Step 3: customer creation
• Crossing the chasm
• Grow number of customers
• Focus on: positioning, launch,
demand creation
• Differencies between markets
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Source: The Customer Development Methodology, Eric Ries

45. Crossing the chasm
• Moving from early
adaptors
(earlyvangelists) to
main stream is a
challenge of it’s own
• Challengies:
– Market requirements
– Product development
– Marketing and sales
– Customer support
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Geoffrey A. Moore

46. 3 market types
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Source: The Customer Development Methodology, Eric Ries

47. Step 4: Company building
• Management needs to change as
company grows
• Sales growth needs to match
market type
• Look at the vision
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Source: The Customer Development Methodology, Eric Ries

48. Which one would you prefer?
A) Product ready for sales
or
B) Customers to work with
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49. Exercise
• Development of a imaginary
medical device in a startup:
– Intended use: Continuous
measurement of blood glugose level
– Technology: Non-invasive
technology, infrared spectroscopy
accessory for smart phones
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50. Stefan Baggström
stefan.baggstrom@movendos.com
Tel +358 50 581 6919
Thank you!