course 2 entrepreneurship, innovation and technology...

1Entrepreneurship and tehnological management 1

Course 2

Entrepreneurship, innovation and technology06.03.2012

2Entrepreneurship and tehnological management

Me, myself & I

Web: www.bogdaniordache.net

Twitter: @bogdaniordache

Email: [email protected]

http://www.bogdaniordache.net/



Entrepreneur?

Wikipedia definition:

An entrepreneur is a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome.


Entrepreneur?

My (simplified) definition:

Somebody working on its own projects.


What is innovation?

Wikipedia definition:

Innovation renews something that exists and not, as is commonly assumed, the introduction of something new.


What is innovation?

My (simplified) definition:

Some new stuff based on older stuff.


Types of innovation

Discontinuous

A new way of solving things

Evolutionary

Innovation in an existing market

Disruptive

Creating new markets by applying different set of values


Types of innovation in business

Technological innovation

Process innovation

Distribution channel innovation

Sales process innovation


Common mistakes and myths

We have to be original

My idea is totally new (so it's good)

My idea is the best / the most valuable

Good ideas are easy to implement

I cannot tell you my idea


Truth is ...

Most start-ups are not new ideas

Ideas are less important than execution

Behind any valuable company lies tons of work

One in ten start-ups goes longer then 5 years

Overnight success usually takes 15 years


Vision without execution is hallucination

Thomas Edison


Sources of innovation

Clients ?

Other clients ?

More clients ?

New technologies

Existing markets or products

R&D


How can you foster innovation?

Brainstorming

Focus groups

Big dream approach

Checklist method

Blue ocean strategy


Blue ocean strategy

W. Chan Kim & Renée Mauborgne

Harvard Business Press, 2005

http://www.blueoceanstrategy.com/

Romanian version: Strategia oceanului albastru

Polirom, 2007

How to create and analyze disruptive innovation




The Strategy Canvas

Very important

Important

Medium

Less important

Unimportant Atribut 1 Atribut 2 Atribut 3 Atribut 4 Atribut 5


Blackberry

Usability Platform Keyboard Security Price

Very important

Important

Medium

Less important

Unimportant


Blackberry vs. iPhone

Usability Platform Keyboard Security Price

Very important

Important

Medium

Less important

Unimportant


How can we go from innovation to real business?


Business model

A repetable and scalable process that generates value

Core-base value of an entreprise


Business model – overview

Online web service (press monitoring service)

Website ClientSome marketing

& sales

Profit


Client

Business model – key indicators

Website visitor cost

Conversion rate (%)

Medium contract period & value

Profit margin (%)

WebsiteSome

marketing & salesstrategy

Profit


Business model – valid model

Expenses / client = Website visitor cost * Conversion rate

Profit / client = Medium contract period * Medium contract value * Profit margin


Business plan

A business plan relies on a business model and scales it

Added information:

Market analysis

Marketing & sales processes

Distribution channels & deals

Future developments etc.


Business model vs. business plan

A startup is searching for business model

A company is executing a business model (according to a business plan)


For a startup, a business plan is irrelevant if the business model is not validated!


Stages of development

Scaling based on business planBusiness model development

Startup Company


Stages of development


Startup Company

Technicallypossible

Profitability Scalability


Waterfall

A startup = the small scale copy of a company


Iridium's epic failure

Total cost: 5.2 billion dollars

Started at Motorola as an internal project

An individual company is created

Launched 72 satellites

First call via own network

Bankruptcy

1987

1990

1990-1997

1998

1999


Conclusion?

Rapid changing markets require continuous business model iteration

Steve Blank

Stanford entrepreneurship professor


Customer development


Customer development

What's the biggest market you can reach ?

Test the technology, test the product, test the use-cases, test the marketing/sales channels

Focus only on the next step of development

Don't do business plans when you're a startup !


The “customer development” guy

Steve Blank

Entrepreneurship professor at Stanford, Berkeley,Columbia

Serial entrepreneur

www.steveblank.com

The Four Steps To The Epiphany

(no Romanian version, thank God for Amazon)


Customer development method.


The Lean Startup approach


Financing your startup

How much is it worth it ?

Based on potential, future market

Follow the smart money

Investment is not always needed!


Financing a .ro business


Startup Company

Technicallypossible


Seed investment

Angel investment

Higher risk Lower risk

VC funding ?


Financing a .com business


Startup Company

Technicallypossible


Seed investment Round A Round B Round C



Bootstraping


Startup Company

Technicallypossible


Seed investment Round B ? Round C ?



Questions?

Web: www.bogdaniordache.net

Twitter: @bogdaniordache

Email: [email protected]




Next Course

Invited Speaker:

Andrei Pitis

Course name:

Introduction to management

Main topics:

Define management

Maslow hierarchy of needs

Herzberg’s motivation theory

course 2 entrepreneurship, innovation and technology...

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