Session 2: Key Frameworks and Models

Transcription

1 E145 FALL 2015 Session 2: Key Frameworks and Models Tom Byers and Chi-Hua Chien Stanford University e145.stanford.edu Copyright 2015 by the Board of Trustees of Stanford and Stanford Technology Ventures Program (STVP). This document may be reproduced for educational purposes only.

2 AGENDA 1. Admit and Waiting Lists 2. Eight Key Frameworks and Models 3. Team Formation for Cases and Opportunity Analysis Project (OAP) 2

3 Engr%145%(E145)%+%Technology%Entrepreneurship,%Autumn%2015 Tom%Byers%and%Chi+Hua%Chien,%Stanford%University Revised:(September(20,(2015 Official%Website:%% Time:%Wednesdays(and(Fridays(at(9:30AMD11:20AM(Pacific((Note:(one(special(workshop(on(Monday,(9/28/15) Location:%Room(107(in(Littlefield(at(Stanford(University Textbook:%Byers,(Dorf,(and(Nelson.(Technology(Ventures:(From(Idea(to(Enterprise.(4th(Ed.(McGrawDHill,( Harvard%Business%School%(HBS)%Cases:% Textbook Module Session%# Date Class%Topic Guests Case %Assignments%** Term%Project%(OAP) Chapters I 1 23DSep Course(Overview(and(Silicon(Valley 1 I 2 25DSep Key(Frameworks(and(Models Form(Study(Teams 2D4 I 2A 28DSep Workshop(on(Accounting(Basics Dimitre(Dimitrov 16(&(17 I 3 30DSep From(Idea(to(Opportunity(I Srinija(Srinivasan Yahoo((TV4) All(teams 5D7 I 4 2DOct Creativity(and(Innovation Tina(Seelig List(of(Ideas 8 I 5 7DOct From(Idea(to(Opportunity(II Kirk(Lacob Golden(State(Warriors Only(Group(A I 6 9DOct Legal(Matters(+(Venture(Lab(#1* Dan(Dorosin Idea(Choice(for(OAP I 7 14DOct Global(Marketing(and(Sales Anand(Subramani 9D11 I 8 16DOct From(Idea(to(Opportunity(III Steve(Blank IMVU((Link) Only(Group(B Positioning(Stmt((PS1) II 9 21DOct Venture(Finance(I:(Sources 15,(18,(19 II 10 23DOct Venture(Finance(II:(Staged(Financings Dropbox((HBS)( All(teams II 11 28DOct ("Deep(Dive"(Midterms All#students II 12 30DOct Team(Dynamics(+(Venture(Lab(#2* PS2 12D14 II 13 4DNov Founder's(Dilemna(I:(Equity(Splits NanoGene((HBS) Only(Group(A II 14 6DNov Founder's(Dilemna(II:(CEO(Succession Peter(Fenton Wily((HBS) Only(Group(B PS3 II 15 11DNov Venture(Finance(III:(Stock(Options Barbara's(Options((TV4) All#students III 16 13DNov OAP(Preparations(and(Dress(Rehearsals Dress(Rehearsals III 17 18DNov OAP(Team(Presentations(I Only(Group(A III 18 20DNov OAP(Team(Presentations(II Only(Group(B III 19 2DDec Personal(Business(Plans Personal#Biz#Plan 20 II 20 4DDec Course(Summary Team(Takeaways Written(Reports Module%Legend: I(D(The(Entrepreneurial(Mindset(and(Opportunity II(D(Assembling(Resources(and(Managing(Growth III(D(Entrepreneurship(and(You *( Venture(Labs:(special(event(or(project(preparation(time(with(teammates(during(remainder(of(regular(class(session. **( Eight(teams(of(five(students(will(be(formed(for(case(assignments(and(OAP.(Four(of(the(teams(will(be(placed(in(Group(A(and(the(other(four(will(be(in(Group(B.( (Individual(assignments(are(shown(in(italics). Course%Description%on%Axess: How(do(you(create(a(successful(startDup?(What(is(entrepreneurial(leadership(in(a(large(firm?(What(are(the(differences(between(an(idea(and(true(opportunity?(How(does(an( entrepreneur(form(a(team(and(gather(the(resources(necessary(to(create(a(great(enterprise?(mentordguided(project(focused(on(developing(students'(startup(ideas,( immersion(in(nuances(of(innovation(and(early(stage(entrepreneurship,(case(studies,(research(on(the(entrepreneurial(process,(and(the(opportunity(to(network(with(silicon( Valley's(top(entrepreneurs(and(venture(capitalists.(For(undergraduates(of(all(majors(who(seek(to(understand(the(formation(and(growth(of(highDimpact(startDups(in(areas( such(as(information,(energy,(medical(and(consumer(technologies.(no(prerequisites.(limited(enrollment((see(common(application(link(from(ms&e). 3

4 FRAMEWORK A: TWO PERSPECTIVES Entrepreneurs start here PRODUCT OR SERVICE MARKET OPPORTUNITY RECOGNITION PURSUIT OF OPPORTUNITY PEOPLE AND ORGANIZATION RESOURCES AND CAPITAL Bureaucrats start here Mark P. Rice, Babson 4

5 FRAMEWORK B: VISION FIRST VISION STRATEGY EXECUTION Note: See Built to Last and other similar books by Jim Collins 5

6 VISION { OPPORTUNITY VISION STRATEGY { DISTINCTIVE COMPETENCIES BUSINESS STRATEGY ACCESS TO RESOURCES INNOVATION OF NOVELTY CAPABILITIES OF TEAM INDUSTRY CONTEXT EXECUTION { STRUCTURE TALENT PROCESSES PROFITABILITY Reference: Dorf and Byers (Figure 7.1) 6

7 FUNDAMENTAL QUESTIONS: VISION What do the founders wish to achieve with their business? What is our shared vision and goals? What is our story and what business are we in? EXAMPLE: What businesses are they really in? Google Facebook Amazon Search? Friends? Books? 7

8 FUNDAMENTAL QUESTIONS: STRATEGY Do we have the right strategy? Who is going to buy? What are we selling? Why are we better? FUNDAMENTAL QUESTIONS: EXECUTION Can we do it? What resources are needed? What is the blueprint for growth? Can we adapt? Reference: Steven Brandt 8

9 1 FRAMEWORK C: THE BIG 3 QUESTIONS BIG MARKET? (AND GROWING) 2 GREAT PRODUCT OR SERVICE? (10X BETTER) 3 EXCELLENT TEAM? (BOTH TECH AND BIZ) References: Randy Komisar and Marc Andreessen 9

10 MARC ANDREESSEN Venture Capitalist : a16z Co-Founder : Netscape

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12 FRAMEWORK D: BUSINESS PLANS PEOPLE TEAM CAPABILITIES ATTITUDE REPUTATION DEAL REWARDS AND RISKS INCENTIVES OWNERSHIP HARVEST Business Plan RESOURCES FINANCIAL PHYSICAL INTELLECTUAL OPPORTUNITY CUSTOMERS STRATEGY BUSINESS MODEL Reference: Sahlman s How to Write a Great Business Plan 12

13 FRAMEWORK E: LEAN STARTUP METHODS 13

14 THE SEARCH FOR THE SCALABLE BUSINESS MODEL Business model > business plan Few business plans survive first contact with customers A business model diagrams how a company creates, delivers and captures value Or in plain talk a business model is how a company makes money Reference: Ann Miura-Ko and Steve Blank 14

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16 FRAMEWORK F: THE MOST IMPORTANT RISK RIGHT NOW Capital Risk Team Risk Technological Risk Market Risk 16

17 FRAMEWORK G.1: CROSSING THE CHASM B2B Relative % of Customers Early Adopters The Chasm Early Majority Tornado Late Majority Main Street Laggards Innovators Bowling Alley Customers want Technology and Performance Customers want Solutions and Convenience Time Source: Geoff Moore 17

18 FRAMEWORK G.2: MOORE S GEARS B2C eferrals ontributions Sharing Traffic Eyeballs Hits dvertising etail Bus Model Starter Motor Time on Site Interactions Liking 18

19 FRAMEWORK H: SCALING AND GROWING eference: 19

20 SHERYL SANDBURG: SCALING A VISION

21 OPPORTUNITY ASSESSMENT PROJECT (OAP) 1. Form a team of 5 (same team as your study group for cases) 2. Generate a lot of ideas and then pick one to investigate, prototype and analyze 3. Test your assumptions (hypothesis) with real users, customers, partners, and competitors; gather information on the category of product and service 4. Keep iterating to decide whether it is a true business opportunity 5. Develop a business story to present with classmates SUMMARY OF TEAM DELIVERABLES Project website with choice of concept, etc. Positioning statement drafts w/ explanation of learnings Final OAP presentation in Class Final OAP Paper 21

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23 SPECIAL SESSION 2A (WORKSHOP) Here in Littlefield 107 Accounting and Entrepreneurship Monday 9/28/15 at 9:30am With Dimitre and Sue 23

24 Thank you! Questions? e145.stanford.edu