In this second blog in our series on best practices in product development, we continue exploring the concept of product vision through the hypothetical story of Mike, an industrial designer who has just co-founded a small start-up company that has developed a breakthrough blood pressure device.
Mike had a meeting with a group of potential investors that didn’t go so well because he didn’t fully understand the concept of product vision, which we explored in our first blog. Now he and his team have some work to do before meeting with the investors again.
Mike’s motivation for creating this device is his daughter, who was born with a heart condition that requires her to monitor and report her blood pressure to a physician regularly. He knows first hand how disruptive this condition has been in his daughter’s life, especially during school and family vacations, and how much stress she’s constantly endured.
His goal is to increase the quality of life and “take the pressure out of taking your blood pressure” for people like his daughter. Since the device securely transmits a user’s blood pressure data to a website that both the user and the physician have access to – a key feature that distinguishes it from similar products on the market – the number of doctor’s visits will be greatly reduced. Furthermore, it’s compact size and robust charging capacities make it easy to travel with.
Mike now understand the concept of the product vision and knows that he and his team need to develop a solid plan that includes all the necessary information any potential investor will need in order to make an informed decision about providing them with funding.
They begin by completing their business model, using a business model canvas to enhance key information such as the value proposition, the resources they will need, the anticipated revenue streams, the customer segments they will be targeting, the business channels they will use to reach those customers, etc.
Mike anticipates they will need a development team that compliments his internal team and includes a product strategist and UX designer, a mechanical engineer, and especially a software developer who has expertise in developing IOT products.
Mike’s team sets a manufacturing goal for the first year that takes the cost structure into account and identifies a possible manufacturer. They plan to have a final product ready for testing within a year, and start the process for FDA and CFIA certification soon thereafter.
Mike estimates the value of this segment of the medical device industry at close to two billion dollars and is looking to secure a 15% market share with this device. He foresees a product rollout initially aimed at North American pharmacy chains, allowing them to offer in-store use to customers for a monthly service fee. The following year, the device will be offered for sale in pharmacies and online because he anticipates that after using the device, customers will want to purchase one.
Mike now understands how essential the product vision is in helping a product idea reach its full market potential and how important it is to present a well thought-out product vision to any potential investors. As a result, he feels much more prepared to meet with the investors again.
Have you used a product vision to help your products achieve success?