spirit of eship at mit

MIT EDP 2014 #MITEDP

DISCIPLINED ENTREPRENEURSHIP

MIT ENTREPRENEURSHIP DEVELOPMENT PROGRAM

Bill Aulet

The Spirit of Entrepreneurship at MIT

Monday January 26, 2015



Can Entrepreneurship Be Taught?



The Magical Square Mile

Students: 10,500 Faculty: 1,700

Presenter

Presentation Notes

1 mile = 5,280 feet,



11th biggest economy in the World



Innovation

• Innovation = Invention + Commercialization

Presenter

Presentation Notes



MIT’s Internal Ecosystem

Stage 1 Inspiration / Invention / Idea Generation

Stage 2 Technology Development / Idea Refinement to Practice

Stage 3 Commer-cialization Planning

Stage 4 Development of Business Plan

Stage 5 Real Company Formation (e.g. first customer, team, network)

Stage 6 Early Stage Growth

Stage 7 High-Growth

Education

Other Activities

• Basis for Commercialization: 45 years of growing research & insight into the entrepreneurial process • Knowledge Base: Outstanding scientific and engineering research … & pioneering of new fields • Underlying Foundation: 150 years of MIT’s “mens et manus” culture

Presenter

Presentation Notes

Fiona will talk more about this and the more general construct and elements but let me say here that it is a rich tapiestry of decentralized elements that creates an “anti-fragile” system

http://web.mit.edu/invent/index.html



Accolades to MIT in Recent Past

MIT beats Cambridge and Harvard to top spot in world university rankings

September 11, 2012 September 11, 2012 MIT: the world's best university

If you were to ask someone in the UK to name the most prestigious university in the world, MIT is probably not the first name that would spring to mind. For many people it’s not even the best-known university in Cambridge.

“creative irreverence”

October 31, 2012

http://www.guardiannews.com/



Jeremy Lin

Skills & Spirit



Movie Clips

10



BP+

Finance

Execution

Biz Model

Product

Market

People

Idea

Logical Flow of Course

- Segment - Direct Validation - Competition

- Value Proposition - Competitive Advantage - Development Plans

- Where to Extract Rent - Pricing

- Go to Market - Sales - Marketing

- Financial Statements - Investor Strategy & Pitch

- Generation - Analysis - Testing on Key Stakeholders

- Team Composition - Values - Setting Expectations

- Logical Flow - Scaling - Presentation

Plan to Capture Value

Plan to Create Value



Sneak Peek at Week Monday Tuesday Wednesday Thursday Friday Spirit of @EshipMIT Company Visits Company Visits Free Team Time Final Presentations &

Judging

Ent Strategy I/ Creating Value (FM)

Product Development (MM)

Capturing Value (CT) Entrepreneurial Leadership

What to do After EDP (JPB)

Value of Ecosystem (FM)

Dilemmas in Launching New Ventures (MM)

Pricing/LTV (CT) What VCs Look For in a Startup (PM)

Awarding of Certificates (ER)

Ent Strategy II (SS)

Overview: Final Deliverable

Team Lunch Final Presentation Advice

Customer Product Mapping

Digital Experimentation (CC)

Inbound Marketing (MV)

Entrepreneurial Financing (AS)

Team Working Sessions

Making Great Products (PE)


Building Financial Statements

Simulation Lab 1.Target Cust 2.Value Prop

Team Working Session

Simulation Lab 1.Biz Model/LTV 2.GTM/COCA


Team Dinner Simulation Lab 1.Product 2.Comp Advantage

Nice Dinner (New Sloan Building)

Simulation Lab 1.Financials 2.Financing



Methodology For Week

• Educate

• Apply

• Coaching (including each other)

• Repeat Steps as Necessary

Presenter

Presentation Notes

Educate from the leading thinkers in the field (Mens) who are very current – two have books coming out, many articles & research to back up lessons and frameworks (Murray, Eppinger, Schrage, Locke, Ancona, Stern & Roberts) Apply first in the class room with practitioners who have created billions of dollars of market value – Paley, Whoriskey, McEleney, Matheson, Bussgang, Kurzina Then you apply yourself with your team – Coaching on how you are doing Iterations to cement and refine learning

http://images.google.com/imgres?imgurl=http://haacked.com/images/haacked_com/WindowsLiveWriter/DrinkingfromtheFireHose_4FA/bronx-summer-open-fire-hydrant%5B1%5D_3.jpg&imgrefurl=http://haacked.com/archive/2007/10/26/drinking-from-the-firehose.aspx&usg=__hrPig3Py4D8_T3DeTp7UqHlG1P4=&h=338&w=504&sz=62&hl=en&start=1&tbnid=9p6L_mKXdEtqvM:&tbnh=87&tbnw=130&prev=/images?q%3Ddrinking%2Bfrom%2Bthe%2Bfire%2Bhose%26gbv%3D2%26hl%3Den%26sa%3DG



Textbook for this Class

– Substantially increase your odds of success

– Provide more structure to one of the two

critical elements in starting a company

14

24 Steps to a Successful Startup



Venture Creation Process

• 24 Step process to create a product/offering as the foundation

• Systematic and proven way to increase your odds of success but not an algorithm however

• Integrated & comprehensive*

• Common language

• Identifies questions & weak points

• Prepares for:

– Execution

– Scaling

– Fund raising

15



Great New Stuff This Year

• Digital Toolbox

– www.detoolbox.com (you can go and sign up for free

– creates a dashboard to track progress)

• Paul Maeder

• Paul English

• Antoinette Schoar

• Refreshed Companies

• Continuous Improvement

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http://www.detoolbox.com/



Rules of Engagement

• No open lap tops

• No side conversations

• Love questions but please be respectful of whole class of 130 and instructors (e.g., raise hand, be thoughtful and concise in question, balance during class vs. after class)

• Be on time

• Be engaged



A Bit of Advice

18



End

Questions?

20



Sunday Night

21



Is the Idea Important?

Presenter

Presentation Notes

For this week, not really …. But in general, yes it is important even if it is not the most important thing. Important considerations: Is this your first deal? What do you want out of it? Example of CDD, SensAble, Viisage So it does matter but not frankly as much as the other items, especially for this first go around Alignment is more important – passions, skills, team, execution, customer focus, exit objectives



What Do You Need to Start a Successful New Venture?

• Idea

– Starting point & comes from you or your team – be a Pirate!

• Team

– This is hard stuff and takes time and work

– Some key considerations (passion, values, heterogeneity, size, skills, etc.)

• Process

– This is what we will teach you in this course with the 24 steps – be a Navy SEAL

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Characteristics

• Teams and not individuals

• Teams are made up of individuals

• Cross disciplinary & heterogeneous

• Odds go up with members on team: 1 5

• Autonomy a common trait but that is less than a narcissistic obsession to personally create value

• Motivated by more than the money

• Doesn’t make excuses but rather GSD

• Thrill in the role of David vs. Goliath – and skilled at it

• Team players!



What EDP is All About...

• Cram as much experience into 5 days as possible.

• Goal:

• Business plan that will yield a company with a market capitalization of $30 million within three years of launch/or sales of $10 million – or to create a new venture that will have that kind of significant impact

• Readings are important, but the goal of the class is to have you apply frameworks and gain knowledge, experience, confidence & hopefully a teammate.

• Learn by doing

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spirit of eship at mit

Documents

value mit edp

world mit edp

spirit of entrepreneurship

early stage growth stage

practice stage

network stage

value plan

antifragile systemmit