DISCIPLINED ENTREPRENEURSHIP

Transcription

1 What Does 1 DISCIPLINED ENTREPRENEURSHIP Really Mean & Why Should You Care? Canadian Council on Small Business & Entrepreneurship Quebec City, QC May 12, 2017 Bill tweet me questions Managing Director, Martin Trust Center for MIT Entrepreneurship

2 2 Purpose of this Presentation We are all entrepreneurship educators The world needs us more than ever before We can do better How we can up our game

3 Definition of Entrepreneurship 2 Types Entrepreneurship SME (Small Medium Enterprise) Local Market Focus Restaurants, Dry Cleaners, Services IDE (Innovation-Driven Enterprise) Global Market Focus Products w/ Innovation at Core Δt is short Linear growth (capped) Less investment required Δt is long Exponential growth (uncapped) A lot of investment required DISCIPLINED ENTREPRENEURSHIP

4 4 Other Questions for Entrepreneurship Education 1. Why 2. Can 3. How

5 5 Crisis in entrepreneurial education Demand Storytelling Time Supply of quality

6 Importance of Spirit 6

7 7 Successful Entrepreneurship Spirit + Skills

8 How Entrepreneurship Should Be Taught 8 1. Open (common language & best tools) 2. Systems Approach (integrated & prescriptive) 3. Rigorous but Practical (mens et manus) 4. Use Our Own Methodology

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10 How 24 Steps Was Put Together 10

11 11 Process Segmentation Personas Needs Design Delivery Action Start with market segmentation to identify different types of students in classes today Real representative examples (MIT) Significant shift in demand Identify needs by persona Note common areas as well Modular for flexibility & customization, as well as rigor & quality What is our current set of offerings? Multiple mechanisms for delivery Giving options to customers (students) Research best practices Identify gaps and areas of weakness Remediation plans developed & implemented

12 Example: Target Customer Definition & Segmentation for MIT MIT students Undergraduate (UG) Graduate Student MBAs (MBA) Graduate Student other Masters or PhD (Grad) Post Doctoral Student* (PostDoc) Any of the five schools at MIT We will further distinguish between all of these categories of students by their interests using the persona methodology Again, we focus on IDE not SME entrepreneurship 12

13 13 Market Segmentation: Personas Exploratory/ Curious Ready-to-Go Entrepreneurship Amplifier Corporate Entrepreneur Description of Persona Interested but has no driving idea or team; is in exploratory mode; starts here but will migrate to another state or out of entrepreneurship Chomping at the bit & just wants help to get going has idea, tech &/or core of team Interested in understanding enough to successfully promote in their org (e.g., gov, corp, family business) but is not the entrepreneur Wants to be an entrepreneur in a large organization Needs at a High Level Need info on career choice, soft skills, ideation, team building and then some first-hand experience to get a sense of the process Wants specific skills and lots of them, very quickly; less on the upfront things emphasized for the curious persona; wants the deep, immersive experience of being an entrepreneur on her idea/technology Interested in all steps in some depth but even more interested in strategy, policy and economic impact of the field. Will want to have the experience of being an entrepreneur so can empathize but more interested in the process than the idea or team Wants depth in executing the process so comfortable doing it again but less tied to the idea or team; more interested in organizational issues and environment issues

14 Needs Assessment: Business Essentials* 14 Core Entrepreneurship Specific Skills : Nucleation (Phase 1) Product Definition (Phase 2) Venture Development (Phase 3) Career Choice Ideation Team Building 1 Defining & Refining Product Market Fit Primary Market Research Key Founders Decisions Basics of Finance Legal Sector Deep Dives Product Design Product Development Business Model & Pricing Scaling - Manufacturing Scaling: Process & Infrastructure HR Leadership & Culture Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Essential Skills for Entrepreneurs (Semi-Customized): Building Eship Systems Soft Skills Sales Communications Dealing with Adversity Negotiations General Skills Valuable to Entrepreneurs: Project Management Corporate Strategy * - An open framework built for constant refinement

15 Fulfillment Mechanisms 1. Residential Classes (Full Semester, Half Semester, Short Classes) 2. Online Classes (e.g., edx/mitx/opencourseware) 3. Lecture Series and/or Workshops ( SnackPacks ) 4. Extra or Co-Curricular Clubs/Activities (e.g., Competitions, Hackathons) 5. Resources Page (Supplementary materials, e.g., blog posts, podcasts, video or other materials) 6. Advisory Network (Specialists, Coaches, Mentors)

16 Offerings Mapping to Needs 16 Ideation Core Entrepreneurship Specific Skills : Nucleation (Phase 1) Career Choice Soft Skills Ideation Team Building 1 Classes: 6.933: Founders Journey (1 class) : New Enterprises (2 classes) (Phase Also 2) included in 2.75: Medical Device Design, 3.042: Materials Project Lab, 2.009: Prod Engineering Process, ESD.051J: Eng Innovation & Design IAP class: Figuring Out the Next Big Product Definition Defining & Refining Product Market Thing IAP.123 Fit Primary Market Research General Skills Valuable to Entrepreneurs: Key Founders Decisions Basics of Finance edx: Watch this space Extra-Curricular & Clubs: Sloan Design Club Hackathons (e.g MIT Hacking Legal Medicine) $100K Brainstorming sessions SnackPacs t=0 Brainstorming Sessions Customer Strategy Lecture series (at least every Acquisition 2 months) Online/Library: Videos (IDEO, Improv, plus others) Tina Seelig online class Essential Skills for Entrepreneurs Add (Semi-Customized): books Professional Advisor Network Contacts Main contact: Sam Breen Specialist: Elaine Chen* Gordon Contact: Blade Kotelly VMS Contact: Roman Lubensky Sales Venture Development (Phase 3) Sector Deep Dives Product Design Product Development Product Management Communications Project Management Business Model & Pricing Scaling - Manufacturing Scaling: Process & Infrastructure Financing Dealing with Adversity Corporate Strategy HR Leadership & Culture Work-Life Balance Corporate Entreprnrship Building Eship Systems Negotiations

17 Clarity of Mission: What Makes Us Different? Raison d Etre We help create entrepreneurs not companies. 17

18 But Let s Now Get Specific

19 Beachhead Market 19 Ready to Go Chris had his business idea even before the school year began and the drive to start his business ASAP. Chris is already meeting other students so he can find his cofounder, securing mentors, and building his network. He is taking the course for some guidance, but he would have started his business even without the class.

20 Comprehensive Curriculum Tile Approach 20 Core Entrepreneurship Specific Skills : Nucleation (Phase 1) Product Definition (Phase 2) Venture Development (Phase 3) Career Choice Ideation Team Building 1 Defining & Refining Product Market Fit Primary Market Research Key Founders Decisions Basics of Finance Legal Sector Deep Dives Product Design Product Development Business Model & Pricing Scaling - Manufacturing Scaling: Process & Infrastructure HR Leadership & Culture Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Essential Skills for Entrepreneurs (Semi-Customized): Building Eship Systems Soft Skills Sales Communications Dealing with Adversity Negotiations General Skills Valuable to Entrepreneurs: Project Management Corporate Strategy * - An open framework built for constant refinement

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28 28 Benefits of Approach Comprehensive yet Practical Integrated Proven & Tested To Stand the Test of Time Sequential/Prescriptive Creates Common Language for Knowledge Transfer and Accumulation

29 Spiraling Innovation 29

30 Examples of Disciplined Entrepreneurship 30 Raised $118M since founded in 2013 Nima Sensor Raised $13.2M since founded in 2013 Best Inventions of 2015 Time Most Important Health Innovations of 2016 Popular Science For dozens more, go to our web site and look at the presentations by our teams of all types and varieties that go through our Capstone summer accelerator program delta v

31 31 More info The book

32 Turns Out That Was Just the Start 32

33 Free* Online Courses 33

34 Articles 34 The Most Overrated Thing in Entrepreneurship How Acceleration Trumps Incubation Culture Eats Strategy for Breakfast Our Dangerous Obsession with the MVP

35 35 Successful Entrepreneurship = + Spirit of a pirate Skills of a Navy Seal

36 What has been the impact so far? 36

37 Results 100K s online 199 Countries 10K s of books 19 versions Intensity and productivity of conversations DISCIPLINED ENTREPRENEURSHIP 37

38 What is New Today? 38

39 You learn so much more after you write a book than while you are doing it Charlie Fine 39

40 Free* Online Courses 40

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42 42 Disciplined Entrepreneurship Workbook More guidance on how to do each step Worksheets, exercises, case studies, more depth More surrounding material Step 0, additional other sources, brainstorming 4 new big items: Primary Market Research (PMR) guide Windows of Opportunities and Triggers Sales Funnel DE Canvas

43 Primary Market Research (PMR) 43

44 Windows of Opportunity & Triggers 44

45 Examples 45 Windows of Opportunity (WoO) 1. Expedia you are looking at a flight 2. IBM end of fiscal year at a utility 3. Students beginning of the school year 4. Enterprise SW competitor is acquired by Oracle 5. Hubspot Visiting website 6. Security Company after a high visibility breach 7. Politicians Bad Obama sound bite Trigger 1. 2 seats remaining at this price 2. I need to schedule my people for December 3. Back to schools sales or give aways 4. Time bound Tradein Program 5. Free Website Grader 6. Free audit of customer s status 7. Immediate letter to faithful soliciting donations

46 Windows of Opportunity & Triggers 46

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48 DE Canvas Raison d Être Why are you in business? Mission: 1 Competitive Advantage Why you? Moats: 4 Customer Acquisition How does your customer acquire your product? DMU: 5 Overall Economics Does your product make money at a company level? Est. R&D Exp.: 8 Design & Build How do you produce the product? ID Key Assumptions: 9 Passions: Values: Core: Process to Acquire Customer: Windows of Opportunity: Est. G&A Exp.: LTV/COCA Ratio High Enough: Test Key Assumptions: MVBP: Initial Assets: Competitive Positioning: Possible Triggers: Tracking Metrics: Initial Idea: Initial Market Who is your customer? Beachhead: 2 Value Creation What can you do for you customer? Use Case: 3 Product Unit Economics Can you make money at the product level? Biz Model: 6 Sales How do you sell your product? Preferred Sales Channel: 7 Scaling How do you scale your business? Prod. Plan for Beachhead: 10 End User Profile: Prod Description: Est. Pricing: Sales Funnel: Next Market: TAM: Persona: 1 st 10 Customers: Problem Being Solved: Quant. Value Prop.: Short Term - LTV: Short Term COCA: Medium Term - LTV: Medium Term COCA: Long Term LTV: Long Term COCA: Short Term Mix: Medium Term Mix: Long Term Mix: Prod. Plan beyond Beachhead: Follow-on TAM:

49 Many Other Things On Our Minds Refine, deepen and make general material available for 24 steps 2. Inclusive Entrepreneurship 3. Expand approach beyond Product-Market fit tile 4. Team/Community building

50 Other Tools to Help Educators 50 Dropbox Teaching folder w/ teaching materials Youtube videos Slideshare.net Trust Center Annual Report Open Source/Creative Commons arrangement entrepreneurship.mit.edu January Entrepreneurship Development MIT Articles Progress Dashboard

51 Many Other Things On Our Minds Refine, deepen and make general material available for 24 steps 2. Inclusive Entrepreneurship 3. Expand approach beyond Product-Market fit tile 4. Team/Community building

52 52 End Questions?

53 Illustrations done by the great Marius Ursache on twitter 53

54 Appendices 54

55 Story of Reo, Rita, Natalie, Chuan & Gavin Start IAP Jan Feb May 2015 GFSA June Aug 2015 Sumo Logic IDEO BCG GSD Sept Jan 2015 TA PowderWave Hacking Arts

56 56 Key Take Aways Entrepreneurship can be taught and it is effectively with a good process The students appreciate there is value in a rigorous/disciplined process for entrepreneurship it is not just magic and mentorship Entrepreneurs and companies evolve over time in a Darwinian manner fluid teams are essential to optimize the learning process (as well as success) By the way, note the diversity in the teams!

57 Designing Team Building Check Points on the Entrepreneurship Education Ramp Key Points to Form/Reform Team: V1, V2, V3, V4, Inspiration, Idea, Technology Validation Classroom Extra-Curricular Accelerator