Global Companies

Transcript

1. From Innovative Technologies to Global Companies
2. Building Technology Companies: Kernels and Wrappers Tom Rice Mentor GSVA 408 205 6234 DrTomRice@gmail.com 10/6/2012 German Silicon Valley Accelerator Inc. 2
3. 10/6/2012 German Silicon Valley Accelerator Inc. 3 Application Structure  WRAPPER  ALL ELSE NEEDED FOR VIABLE PRODUCT KERNEL UNIQUE IP WRAPPER OFF-THE-SHELF COMPONENTS
4. Kernel/ Market Matrix 10/6/2012 German Silicon Valley Accelerator Inc. 4  Small Kernel Big Kernel Product Platform NUANCE Google ? Facebook
5. Lean Principals From Toyota Production Systems to Lean Software Startups 10/6/2012 German Silicon Valley Accelerator Inc. 5 • Maximum Learning at Minimum Cost • Small Batches • Fast Design Cycles • Continuous Improvement
6. The Silicon Valley Lean Software Startup Process 10/6/2012 German Silicon Valley Accelerator Inc. 6 • Minimum Viable Product • Build/ Measure/ Learn • Get out of the Building • Innovation Accounting • Pivot or Proceed Books The Lean Startup: by Eric Ries The Startup Owners Manual: by Steve Blank
7. WeVideo 10/6/2012 German Silicon Valley Accelerator Inc. 7 April 2011: Great Kernel • Video editing in cloud spun out of Norweign educational company. • 300,000 European students • Fresh US Flipped Parent Company October 2012: US Market Growth • Partnerships: Google, YouTube, Disney…. • Raised $19 million • Heads down on breath (devices) and depth (levels of sophistication)
8. 10/6/2012 German Silicon Valley Accelerator Inc. 8
9. Big Kernel Companies are Different 10/6/2012 German Silicon Valley Accelerator Inc. 9 • Founders with deep technical knowledge • Goal is a Paradigm Shift • Founders know the impact of breakthrough technology • Early risk is technical– not product/market fit
10. Stages for Deep IP Company 10/6/2012 German Silicon Valley Accelerator Inc. 10 • Kernel Development: It ain’t done until its done • Benchmarking: It is not credible just because you say so • Circle of Believers: It will not take off unless the right people believe it will • Opening up to Others: OK, now what’s the Lean path to market
11. Stages for Deep IP Company 10/6/2012 German Silicon Valley Accelerator Inc. 11 Kernel Development Keep the team heavily technical until Kernel is done (no MBA’s doing business plans and market studies) Minimize dilution in early days– bootstrap, grants, university research Benchmarking Do not start with cute demos of what could be Set down clear limiting assumptions and build something that is better than anything else out there Benchmark against best alternative and release data publically Circle of Believers Start at the top of the food chain—the more senior the people the more they appreciate real innovation Gurus– professors, industry sages Corporate R&D – senior R&D people understand technology and are paid to find the best Friendly advisors Potential partners who can embed your technology next
12. Opening up to Others Go To Market • Case Specific: the devil is in the details • Different skills needed– advisors and mentors • Best applications depend more on customer pain than maximum efficiency
13. Platforms and Partners 10/6/2012 German Silicon Valley Accelerator Inc. 13 • Goal is your kernel plus partner’s wrapper • You have to build initial wrapper to seed the market • Mixed models are tricky– e.g. a licensed platform plus apps
14. Fido Case Study • fido generated “teaser” • What’s next? – Kernel complete – Benchmarking stealth– IP protection first – Scheduling meetings with Gurus and Believers – Giving investors a first look
15. Summary 10/6/2012 German Silicon Valley Accelerator Inc. 15 • Every company needs a dose ot the lean startup • The smaller the kernel, and the more stand- alone the application, the mor conventional wisdom applies • For big kernels, get the IP benchmarked before you go to market • For platforms the wrapper/partner strategy is key
16. German Silicon Valley Accelerator 10/6/2012 German Silicon Valley Accelerator Inc. 16