MatMaX

CRL - Assess your Commercial Readiness Level

CRL1 - Identify the hypotheses

Using the Business Model Canvas, or a similar framework, you have identified all the hypotheses of the business model. In particular, you have identified the possible markets segments and their needs (pains/gains), how the envisaged value proposition answers the needs, and how the revenue is generated.

CRL2 - Analyze the market

You have a good understanding of the market structure and segmentation.
You have estimates of the market size and growth.
You have identified the market eco-systems of actors, and who are the potential partners and competitors.
You have identified the market value chain and the position of the intended business in this chain (in particular, which proportion of price paid by the end-customer can be captured).
You have selected one or a small number of segments (<=3) as commercial targets.
You have identified a list of customers to be approached in the next phases.

CRL3 - Validate the Market hypotheses

You have got «out of the building» to test the Market-related hypotheses through direct contact with the end customers in the selected segments.
You know who are the potential customers (the buyers), what are their tasks, the obstacles in performing their tasks (their 'pains') and what could enable them to reach new goals (their 'gains').
You have identified potential partners who can have interest in helping the project evolve (ideally future early customers).
Modify hypotheses if necessary and re-test.

CRL4 - Validate the Solution hypotheses (Value proposition design)

You have got «out of the building» to test, through direct contact with the customers, the proposed solution to the 'pains & gains' identified in the previous step.
You have checked that the solution solves the pains ('pain reliever') or enables gains ('gains creator').
You have an answer to the question: «What is the value in money of solving these pains and enabling these gains?». This testing phase can be helped by a visual or physical 'mock-up' of the proposed solution (in the form of presentation, pictures, ...) and demo prototypes of various levels of maturity.
If necessary, modify the hypotheses (proposed solution) and re-test.

CRL5 - Achieve Product-Market fit

Based on the validated market needs and value proposition, you have selected the target segment(s) to be addressed, and defined the product specifications of a «Minimum Viable Product» (MVP).
You have verified that the MVP answers the most important customer needs of the target segment.
You have verified that real value can be extracted in the form of revenue.
You have quantified the revenues and costs estimates and verified that there is a profitable business model.

CRL6 - Get ready to sell

You have defined the positioning of the company and products compared to competition, and can explain the uniqueness of the offer.
You have prepared sales material and collaterals: this should include a clear explanation of the global value proposition for the targeted customers as well as description of the constituting products and services.
You have a price list and have developed a preliminary distribution channel plan.
You have a preliminary sales roadmap with a list of customer leads, and how to access them.

CRL7 - Achieve first sales

You have found visionary customers who will buy your product for real money and will be willing to become «»product ambassadors».
You try to sell at standard price without early adopter discount to verify the real value of the offer.
Early customers get a time-to-market advantage in exchange for their risk-taking.
You are selling to 3 to 5 visionary customers.
You get early orders from channel and service partners.

CRL8 - Achieve general sales at a profit

Using the early customers as reference, you sell to a broader range of customers in the target segment.
You got a better view of the operational costs and of the real value for the customers.
You have validated the pricing model and verified that you can sell at a profit.

CRL9 - Validate complete business model and prepare to scale

You have validated that the global business model is profitable and scalable (e.g. verified that the sales are repeatable and scalable).
Pivot if this is not the case: back to customer discovery (CRL<5).
If the business model is validated, prepare for growth by tuning the cost and pricing model for larger volumes, defining a market plan for growth, identifying the organizational and financial needs. This initiates the transition to the «scale-up» phase of the company.

TRL - Assess your Technical Readiness Level

TRL1 - Basic principles observed and described

The idea is described in general terms.
There is a description on how the idea differentiate from the existing.
The possible added value of the idea is clearly expressed.
The key technical hypotheses to be validated are identified.

TRL2 - Concepts formulated

The invention is validated on a theoretical basis.
The intellectual property and the possibility to apply for patents has been investigated.

TRL3 - Lab proof of concept and feasibility analysis of individual components

The individual components of the solution have been validated through experiments.
The components performances have been characterized and the components have been developed till they are ready for use in the targetted application.

TRL4 - Lab demonstrator of integrated solution/system

An «Ad-hoc» functional system has been assembled from the individual components.
The complete system functions have been validated through experiments and its performances have been characterized.

TRL5 - Demonstrator of all critical functions in a simulated environment

The overall system architecture to be used for the final product has been defined.
The components have been assembled into a realistic functional (laboratory) system. In particular the interfaces between components have been defined and documented.
The system functions and performances have been validated in the real target market application, and in a representative (simulated) environment.
The 'Functional market requirements' of the target product have been defined on the basis of actual market demands. User stories and usage scenarios are defined.

TRL6 - Product prototype in simulated environment (factory proto)

An agile product development process has been set-up.
Rapid prototyping methods are used to collect early market feedback about the product.
The elementary development tasks and their priorities have been identified and defined.
The development roadmap has been defined with a technical milestones calendar.
The necessary development ressources have been identified and secured. An agile planning is in use with development in 'sprints' (e.g. SCRUM).
The first product prototype has been developped and is used for demonstrations in a simulated environment (e.g. with simulated inputs and outputs).

TRL7 - Product prototype in operational environment (field proto)

The product has been developped to a prototype stage enabling its use and test in an operational environment at a client site (field proto).
The prototypes have been deployed at a series of 'alpha' customers/partners and collect their usage feedback (first paying product/MVP).

TRL8 - Commercial product available and qualified

The product development is finalized.
The product is tested and validated to the required 'commercial' quality level.
The production process and associated resources are defined and implemented.
The product has been commercially launched.
A product maintenance process has been defined and implemented.

TRL9 - Mass deployed and debugged product

A structured process is in place for collecting users feedbacks
The collected products faults (bugs) have been identified and prioritized
The identified product faults have been solved