Be the Nail, Not the Hammer
By Andrew Gray
A handy framework for ensuring startup success before you start up.
As operators of a biotech co-working space, we’re constantly surrounded by the buzz of new ideas and groundbreaking technologies from the startups we support. But we’ve also learned that the most successful innovations aren’t just about having a great idea but solving the right problems. A well-characterised problem is the foundation upon which genuinely impactful solutions are built and will protect you by ensuring market alignment/need. So, when we’re asked, ‘What do I do? How do I start?’ by students/academics considering commercialisation, the Biodesign framework often comes to mind.
There are several frameworks for innovation, such as design thinking and the Lean Startup. However, the Biodesign framework has both structure and emphasis on understanding the problem you’re solving and whether you should even attempt. It’s not just about coming up with ideas and looking for your first customers. The Biodesign Framework is a structured approach to innovation that emphasises the importance of identifying and qualifying problems before generating solutions, often overlooked in the rush to market. As Paul Graham famously stated in his essays,
‘Ideas are worth less than execution, but execution is worth less than a good idea. And a good idea is worth less than a well-characterized problem.’
Figure 1: The first set of checkpoints needed to qualify a problem before even considering solutions with the Stanford Biodesign Framework.
Get good at qualifying problems, not just generating ideas.
- Market Alignment/Need: When problems are not well-defined, it can lead to solutions that don’t address the market’s actual needs. In a world with limited time and resources available to transition towards a more viable future, misalignment will result in wasted time, money, and effort. This is still one of the top causes, if not THE top cause, of startup/innovation failure.
- Increases the chances of success: By focusing on well-characterised problems, startups can develop solutions that are more likely to be adopted and successful, form strategic partnerships, find early adopters, and more so your solution is getting pulled through the development cycle vs you pushing it through.
- Enhances customer satisfaction: When solutions are tailored to specific problems, they are more likely to meet customers’ needs, leading to higher satisfaction and loyalty.
The Biodesign Framework in Action
The Biodesign Framework is a versatile approach to innovation that can be applied to various fields, from healthcare to technology, education, and beyond. Not just biotech/medtech. It provides a systematic framework for identifying and addressing problems in a human-centered and iterative way (yes, Human Centred design isn’t quite as wide boundary as we’d like, yes we tend to advocate for planet-centric design, but for now, lets just leave the philosophical debate to the side and get on with it). Like all frameworks, it has steps, and here are all 7 of them:
- Direct observation: Spending time with potential customers to understand their needs and challenges firsthand.
- Problem framing: Clearly defining the problem in a way that inspires creative solutions.
- Idea generation: Brainstorming a wide range of potential solutions.
- Solution selection: Evaluating ideas based on their feasibility, effectiveness, and alignment with the problem.
- Build and test: Creating prototypes and testing them with potential customers.
- Market validation: Assessing the commercial potential of the solution.
- Business model development: Creating a plan for commercialising the solution.
A framework that works!
Don’t just take our word for it; many successful entrepreneurs and innovators have used the Biodesign Framework to develop groundbreaking products and services. Here are a few examples:
- Eldin Rostrom: The founder of Diag-Nose, a precision medicine startup in Melbourne, Australia, applied the Biodesign Framework to create innovative solutions for respiratory care.
- David Tran: The co-founder of Oura Health, a wearable technology company, used the Biodesign Framework to develop a sleep-tracking device that has gained widespread popularity.
- The team behind the Loop Diabetes App: This open-source app uses the Biodesign Framework to help people with diabetes manage their condition more effectively.
By following the structured approach and focusing on understanding what problem and whose problem you’re solving, you can develop solutions that truly meet their needs and make a positive impact.
Learning from Failures: The Case of Theranos
The case of Theranos serves as a cautionary tale. Elizabeth Holmes, the founder of Theranos “developed” a blood-testing technology that was ultimately exposed as fraudulent. In this case, a need was discovered but the feasibility of solving this need was probably ignored next to the potential dollars that would have been made if it had been feasible #HYPETRAIN!
This story is, unfortunately, a commonly experienced one on the startup journey, but perhaps not at the scale of Theranos. When we think we have a good idea, and it becomes our baby, it can be really hard to disqualify it objectively. In Theranos’ case, it was sold as the miracle test that only needed a small drop of blood. The catch? The tech wasn’t actually real. Sometimes, you shouldn’t fake it until you make it.
Good ideas worth investing in usually tackle ‘well problems’, as Paul Graham says, or problems that are deeply and narrowly characterised. Part of characterising a problem includes many checkpoints. Freedom to operate, feasibility, regulatory hurdles, and more are some of the checks you’ll want to consider before pursuing a solution to your problem. That’s why these frameworks exist, though. They save you a bit of discomfort in the short term to minimise long-term pain or, in some cases, keep you out of jail.
Market needs during economic uncertainty
Market alignment is crucial for startups seeking to raise capital, especially during times of economic uncertainty or downturns. As said before, this is the number one killer for many startups. Currently, it’s a tough time to be innovating. With inflation high and uncertainty in the markets, investors are scrutinising and de-risking their deployments more often than not. Communicating how well you’ve characterised your problem will help alleviate concerns about why your solution is worth investing in.
Getting Involved in Biodesign in Australia
If you’re interested in applying the Biodesign Framework in Australia, most universities offer a course in Biodesign. Not to mention – the framework is free from Stanford! The benefit of doing a course is you’re often immersed in a community of ‘problem holders’ that will help you identify what you could tackle.
If you’re not in a position to do the course, stay tuned. The next article in this series will look at strategies you can employ to create your own problem matrix.
By leveraging the Biodesign Framework, you can develop innovative solutions that address real-world problems and create a positive impact. At CoLabs, we’re committed to supporting innovators and helping them bring their ideas to life. If you ever want to talk shop about this, you know where to find us, and if you don’t, that’s alright – we still think you’re cool!
