ENT 670 – Product Hypotheses

This week’s blog dives into the subsequent phases of the Customer Development process and how Sam’s Medical Lab transitioned from one to another. As Blank explained in his book, phase 1 deals mostly with writing briefs or summaries of the product’s assumptions, customer problems, channels, pricing, demand, market type, and competition. These briefs should serve as an outline and should develop as we understand the assumptions in more depth (Blank 2020).

Our team defined many aspects relevant to Sam’s Medical Lab’s laboratory services during the product assumptions. We focused on the benefits, dependency analysis, cost, and scheduling. The summary of benefits focused on the key advantages such as faster turnaround time, local availability, affordability, and ease of use. The dependency analysis consisted of all analyzer vendors and agreements that must be fulfilled before anything can happen. The timelines shifted due to the Covid-19 pandemic and supply shortages. Additionally, the dependency analysis included the technology infrastructure, logistics, and changes in socio-economic conditions such as limited mobility due to lockdowns and employment.

The cost assumptions were based on determining the reasonable fee schedule for direct(invoice) and self-pay customers. Knowing the competitor’s pricing to a certain degree, insurance reimbursements, and our cost, we came up with a competitive pricing model. Since there is no cost of adoption for Sam’s Medical Lab services, it becomes easier to assume that customers would accept our lab and be willing to switch. Sam’s Medical Lab bears the cost of implementation and price matches competitors’ listed price as needed.

The scheduling/delivery was based on the soft open date. The date was dependent on external vendors, construction, and obtaining supplies promptly. We were able to follow the timeline closely, but not exactly.

The briefs mentioned above helped our team understand the position we are in and what steps to take in recognizing the types of customers, how our services resolve the customer problems, and whether the ROI is justified.

In the next blog post, I will look into the customer hypothesis, demand, and competition.

Reference:
Blank, Steven G. The Four Steps to the Epiphany: Successful Strategies for Products That Win. John Wiley & Sons, Inc., 2020, Amazon Kindle.

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