why silicon valley continues to innovate and rock the world
DESCRIPTION
A keynote for Tolpagorni's Market Insights conference (Stockholm, Sweden, Nov 2014): what network effects, historical accidents and cultural elements keep Silicon Valley at the front of tech innovation? What can Stockholm companies/startups take from this? FYI, the overly aggressive Silicon Valley boosterism was intentional. Written extra-large for a distant audience.TRANSCRIPT
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Why Silicon Valley Continues to Innovate and Rock the World
Rich Mironov Market Insights Conference
13/14 November 2014
1 © Rich Mironov, 2014
• Veteran product manager/exec/strategist • HP, Tandem, Sybase, 5 B2B startups as
“product guy” or CEO • The Art of Product Management • First Product Camps, first agile
product manager/owner tracks
ABOUT RICH MIRONOV
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Ø San Francisco is the center of the (tech) universe Ø Network effects are huge Ø Innovation as a cultural attitude Ø What are the next few revolutions
(and where will they happen)?
AGENDA
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Historical accidents? • Fashion design: Paris, Milan • Stock markets: London, NYC • Automobile design: Detroit, Tokyo, Stuttgart • Pharmaceuticals: Basel, Brentford, New Brunswick • Security software: Tel Aviv
GEOGRAPHIC SPECIALIZATION AND NETWORK EFFECTS
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• Stanford University (1891) • Hewlett-Packard (1939): electronic test equipment • Fairchild Semiconductor (1957): integrated circuits • Varian (1948): vacuum tubes, radiation therapy • Intel (1968), Arpanet (1969), Xerox PARC (1970),
Lucasfilm (1971), Atari (1972), Apple (1976), BSD UNIX (1977), Oracle (1977), 3Com (1979), Adobe (1982)…
SILICON VALLEY’S HISTORICAL ACCIDENTS
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• Most established tech companies • Most startups, most incubators • Most venture capital • Largest tech employment market, most job mobility • Depth of experienced tech veterans, managers,
mentors, researchers, role models • Easiest place in the world to grow a tech startup
NETWORK EFFECTS MATTER
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• 16,000+ open jobs for software engineers • 1800+ open jobs for product managers • 4000+ startups • Every café is filled with hackers, pitch decks, lean
startups, angel investors, recruiters • Tech is our local sport
SILICON VALLEY TODAY
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VENTURE CAPITAL
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$24B
$20B €4B
SOCIAL NETWORKING
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Silicon Valley Rest of USA Europe Asia
Apple Google Oracle Intel
Facebook eBay HP
VMware Yahoo
Salesforce Twitter
Microsoft IBM
AT&T Amazon Verizon
Dell
Ericsson SAP
Nokia Philips
Alibaba Samsung
NTT Tencent Foxconn
Baidu Hitachi
Panasonic Toshiba
LG Electronics Sony
LARGEST ELECTRONICS/TECH/ COMPUTER COMPANIES
10 Sorted by market cap, > $15B
• Company half-life is short: product managers work for many companies in their careers
• Employment velocity à deep personal networks • Startups always trying to disrupt
existing business models • “What did you learn at your
last company?”
INNOVATION AS A CULTURAL VALUE
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• Except for people, software startups cost $0 • Talent and speed-to-market matter
• Find the smartest people at any price • Validate, build, launch, repeat
• Profitability is entirely about scale • Can we reach 10M users? 100M? 1B?
SOFTWARE ECONOMICS IS ABOUT TALENT, SPEED AND GROWTH
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• Free or cheap for thousands of attendees
• “We can validate any product idea and build a prototype by Sunday afternoon”
• Build/measure/learn at warp speed
LEAN STARTUP WEEKENDS AND HACKATHONS
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OUR ROCK STARS ARE INNOVATORS, CEOs, CTOs, ENGINEERS, FOUNDERS
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• Transportation: Uber, Google autonomous car, Tesla, SpaceX • Mobile: software IP crushing hardware value • Wearable computing • Biotech: bioengineering components • Internet of Things: billions of smart, interconnected devices • Manufacturing: 3D printing, Do-It-Yourself movement • Investing: automated portfolios • Software-Defined Networks • Every corporate function/department
• Engineering, Finance, Sales, Marketing, HR, Real Estate…
INDUSTRIES TO BE DISRUPTED OR CREATED
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• We want to disrupt industries and reach B’s of users worldwide
• Rules (laws) are local or national • Some rules are outdated, others
designed to maintain status quo • Market momentum often wins
• Second choice: high-priced lawyers
WE OFTEN IGNORE RULES (AND SOMETIMES LAWS)
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• Speed matters: time is the enemy • Funding exists, technology is not unique
• Biggest waste is building the wrong product • Validate, validate, validate, validate
• Paper prototypes, integration testing, early adopters, beta
• Revenue outvotes politics • Product management tied to revenue
HOW THIS CHANGES PRODUCT MANAGEMENT
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Voltaire (1772): “The perfect is the
enemy of good”
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Muhammad Ali: “Everyone has a plan
until they get punched in the nose.”
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• Target worldwide markets • Expect multiple competitors in every segment • Open a Silicon Valley office
• Urgency, talent, venture money, partners, foolish optimism
• Fail fast, learn fast, ship often • Velocity and market momentum beat perfection
HOW TO COMPETE FROM STOCKHOLM
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CONTACT
Rich Mironov, CEO Mironov Consulting 233 Franklin St, Suite #308 San Francisco, CA 94102 USA
RichMironov
@RichMironov
+1-‐650-‐315-‐7394
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