TIGA Bootcamp Strategy Presentation

Transcript

1. Game Developer Bootcamp – March 2013 Supported by
2. Context (about me & Tenshi) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Startup Sale MBO AIM float Sale Startup (x n)
3. Talk contents • What is Strategy • How to develop and deploy one (tools) • Some ways to kill your business • Phases of growth • Business planning
4. Before Strategy
5. What is Strategy • ‘A plan of action to reach your goal’ • 1% of your time will be spent developing strategy – 99% is execution
6. How to build strategy • Analyse – Look around / understand your market – Competitors / customers motivations / business model • Develop a plan • Test it in theory – walk through / risks/mitigation / Plan B's • Execute (measure) • Iterate
7. When to Strategize • Every 6 months • Off site – No distractions • Use trusted people to provide perspective
8. Some tools
9. SWOT
10. Five Forces
11. Value Chain Outsourcer Developer Publisher Distributor Retailer Customer
13. Blue Ocean Strategy
14. The art of the Pivot
15. Innovators Dilemma • Disruptive start-up takes very small part of an incumbents business through innovation • Incumbent withdraws from this marginal business line rather than compete • New Entrant moves up the value chain, incumbent withdraws from what is now its most marginal line • and repeat…. • Amazon and Borders – Amazon start-up in 1995, – 2001 Borders let Amazon run its web site – Feb 2011 Borders files for bankruptcy
16. Hyper cycle
17. Amazon share price
18. Some ways to kill your business
19. The ‘Game’ is everything • Fall in love with your game • Build it and they will come – Gold plate your product/game, polish, enhance, polish some more and think your job is done. • You are in a real market – Competitors / discovery challenges etc
20. Fall in love with your customer • Cost complexity spiral
21. Fall in love with yourself • Nobody can do it like me so… – There is no point in hiring anyone else – I can do this by myself – I’m indispensable = burnout • All good businesses are led by a binary star – the inside person and the outside person
22. Keep it in the family? Tarn and Zach Adams Bay 12 Adrian and John Carmack Id Paul and Oliver Collyer Sports Intereactive Richard and David Darling Codemasters, Kwalee Gareth and Martin Edmondson Reflections Jason and Darren Falcus Iguana, Atomic Planet Richard and Robert Garriott Origin, NCSoft, Portalarium Julian and Nick Gollop Mythos Andrew and Paul Gowers Jagex Emily and Jim Greer Kongregate Yves, Michel, (+3) Guillemot Ubisoft, Gameloft, Guillemot Jeremy and Adrian Heath Smith Core Design Brian, Paul, Darren Jobling Eutechnyx Jason and Chris Kingsley Rebellion Donald and Geremy Mustard Chair Philip and Andrew Oliver Blitz Ignacio and Javier Perez Dolset Pyro Ste and John Pickford Zed Two Philip and Tobias Reiseberger Bigpoint Chris and Tim Stamper Rare Tom and Adam Vian SuperFlash Brothers
23. Be a busy fool • I’m so busy I really don’t have time for… – Recruiting good people – Training them properly and keeping them informed – Investing in my own personal development – Keeping good records • Make time for the important rather than the merely urgent
24. Chase Turnover • We need the turnover and cashflow so.. – Reduce prices to drive sales – Increasing discounts – Deal with customers you would not normally deal with – Extending product/service range • Putting pressure on margins ultimately leads to overtrading and disaster
25. Fail to measure • If you don’t know what is and is not working you can’t – Fix what is broken – Capitalise on what is working • No excuse not to measure today – But you have to actually use your data
26. Fail to have a cohesive strategy • Tennis – Baseline play / Net play – The average of the two = playing in the middle of the court • Too many startups split the difference: – continue with the old strategy – add a new strategy – under-resource both and fail at each.
27. Fail to plan • “Plans always go wrong” so we won’t bother – The one thing you know about a business plan is that it will always be wrong – Snapshot of the business whilst it is moving • But – if you don’t know where you are going you could end up anywhere • It’s not the plan, it’s the goal, the strategy
28. Abdicating not delegating • Hiring an accountant / lawyer – So you don’t need to worry / understand • Need to know the right questions to ask and the right targets to set • o Follow up relentlessly
29. Run out of cash “Turnover is vanity, Profit is sanity, but Cash is reality”
30. Run out of cash “Downloads are vanity, Monetisation is sanity, but Cash is reality”
31. Growing your business
32. The survival odds
33. Key Growth Issues • Recruiting and retaining key people • Developing a strategy • Growing without loosing control • Managing cashflow • Maintaining Innovation
34. Growth Phases • Establishment and Survival • Take-off and Growth • Taking Stock and Professionalising • Renewal and Regeneration
35. Establishment and Survival • Identify the opportunity and understand the market • Developing the product • Reaching the market and generating cash
36. Establishment and Survival • Key tasks: – Identify the opportunity and understanding the market – Developing the product or service – Building Credibility – Winning customers and generating cash
37. Take-off and Growth • Acquiring adequate resources – people / space / finance • Refining the offering • Broadening and scale – New products • Building the market and customer base
38. Taking Stock and Professionalising • Formalising processes • Invest in support (IT etc) • Analyse competitors and market systematically • Become more selective about business • Develop formal strategies and plans • Decentralise • Recruit professional, outside managers
39. Business Plan • Provides Clarity and of thought and purpose • Baseline for investment • Highlights challenges • Serves as an entry point for discussion
40. Business Plan Contents • Summary and prospects • History and current profile • Market • Business Model • Management Team • Strengths and Weaknesses • Strategy • Execution plan • Forecasts • Funding • Exit strategy
41. Cashflow Tool