Aau entrepreneurship+innovation - sept13

A PRACTICAL APPROACH TO INNOVATION - The Entrepreneurship Journey in the Ecosystem

Johan Winbladh AAU – Sept. 2013

[email protected] M: 21915612 www.medieinnovation.dk

Photo: Erik Johansson – Go Your Own Way

• Marketing Strategist

• Market Researcher

• Commissioning Editor (new media)

• Project Manager

• Media Innovation Consultant

About me (2) The ’about me’ slide

• Media industry pioneer

• 3 innovation consortiums

• Organiser of Startup Weekend

• Mentor, Coach, Advisor

• CPH Entrepreneurship ecosystem networker

The innovation strategy contains 27 policy initiatives

regarding research, innovation and education.

It focuses on a better knowledge exchange between

companies and knowledge institutions, across borders

and between the public and the private sector.

http://fivu.dk/en/publications/2012/files-2012/innovation-strategy.pdf

The National Innovation Strategy







1. Innovation driven by societal challenges Demand for solutions to concrete societal challenges must be given higher priority in the public

sector innovation effort.

2. More knowledge translated to value Focus on more effective innovation schemes and better mutual knowledge transfer between

companies and knowledge institutions.

3. Education as a means to increase innovation capacity A change of culture in the education system with more focus on innovation and value creation.

There are three focus areas in the strategy:







The National Innovation Strategy: Aims & objectives







The National Innovation Strategy: The System






MEDIA EVOLUTION CITY, MALMÖ: Academia, commerce and industry and the public sector established Media Evolution City cooperating with and housing 100+ Startups on 7500m2

MEDIA CITY BERGEN, (NORWAY) : 50 small, large, new and old media companies moves in to 45,000 m2 in 2016 and gather 1500 people.

The vision is to become an international hotspot for innovation and knowledge in media where at the same place is TV channels, newspapers, providers of media technology, Startups, education and research.

Example: Connecting startups with established Biz (1)

Perhaps you dream about something like this?

Founded: 2009 in Copenhagen

Acquired: 2012 by Citrix Systems for $43.6M


Acquired: 2008 by Vodafone for €31.5M in Cash


425 employees, International offices, Topranked in industry


250 employees, Headquarter in San Franisco, $86M in total investment.


Acquired: 350 employees, Serving 29.000 restaurants in 13 countries


100+ employees, 200.000 customers in 193 countries, Total value $137M

HOW DO YOU WANT TO DISRUPT?

Exchange of goods or services can occur when:

1.Customers maximize utility from the good

2.Companies can maximize profit

Both parties constantly evaluate opportunity cost

THE ART OF FAILING

The path from idea to growth

Time

Networking

Bootstrapping Accelerators

Team-up

Re-teaming Angels

Investors

A-funding

Pivote

B-funding

Idea Desillusion

Initiate

Enth

usi

asm

Proto typing

Beta Product

Launch Growth

Entrepreneurship stage 1: Initiation –Team & Idea

Build the Team carefully - performers attract investors

Pitch the idea – addressing a customer need, fun to work with

Entrepreneurship stage 1: Initiation - Networking

PITCH YOUR IDEAS

Concept development & Business models

Entrepreneurship stage 1: Initiation – Kick off

110 PEOPLE. 54 HOURS.

40 PITCHES

12 IDEAS CHOOSEN

TEAM FORMING: DEVELOPERS, BIZPEOPLE, DESIGNERS

Photo: Ernst Poulsen




OUTCOME: • Lots of fails and learning! • 5 winners continued with accerator growth programmes • Tools for growth • At least 3 companies formed • Ambassador experience from entrepreneurship approach • Cultural change (bottom-up activism) • Networking across industries and specialists • Connections between corporations, entrepreneurs and students • Inspiration for educational institutions

"The ideas, the spirit and the effectiveness of the groups was amazing to see, especially the

work across different groups of developers, business people and people with completely

different backgrounds were enormously rewarding."

"Usually when you finish a project you sit with some long Word document or Power Point

presentation. Here people created solutions that actually works and can be used, it is insanely impressive how much people have reached to

build. It's really cool to be involved! “

WHAT MAKES A WINNER ?

JUDGE: Martin Thorborg

JUDGE: Thomas Madsen-Mygdal

JUDGE: Marrtin Ferro-Thomsen

Business Model - The heart of it all. If you haven’t got answers to these questions, you’ve spent too much time on frills & features and need to get back to the basics: •Who is your customer? •What is your core value proposition? •What are your key activities? •What are your revenue streams? •What is your cost structure? •Who/what are your key partners/resources? •What are your distribution channels? •What is your customer acquisition / rollout strategy?

Customer Validation:- Solutions for real problems ! •Have you taken the proper steps to ensure that the people who matter (your future customers) support and reinforce your assumptions? •Think of Customer Validation as ‘evidence’ to back up the core structure of your ‘theory’ (your Business Model). •The more feedback you gather (quantity), the more this feedback comes from your specific target market (quality). •The more you’re able to actually integrate this feedback into the Business Model and product development (execution), the better.

Execution – A High Performance Team? •What has your team been able to actually build over the weekend? •Have you established a “Minimal Viable Product” (the minimum set of features to be able to start collecting data) •Does you deliver a compelling and captivating user experience? Is it memorable?

•Even the strongest of Business Plans are useless in the hands of those who can’t properly execute on them. •Getting as far as possible proves your strength and skills as a team. •This is what truly matters: investors don’t invest as in ideas so much as teams.

Entrepreneurship stage 2: Bootstrapping

• Tooling up and build for launch • The fragile path; but anyhow rewarding • Confusing, conflicts and Cool down…

Entrepreneurship stage 2: Bootstrapping

• Building the foundation • Getting to know each other • Gaining knowledge and

insight (for free) • Continous inspiration (and

pivoting) • Support and tools

• It’s not about product features, but percieved value

• Innovate all parts of the businessmodel to maximise growth opportunities

CREATING CUSTOMER VALUE

IMPLEMENT CONSULTING – VIEWPOINT NR. 4 / 2012 (implement.dk)

•Key ressources

•Key processes

•Partner network

•Value propsition

•Value platform

•Customer segments

•Channel structure

•Customer relations

•Cost structure

•Cash flows

How do we

create….

…valuable

solutions and

experiences…

…for

customers and

partners…

..to provide

profit for the

firm?

71% increase

in SMEs starting to use cloud services in US and EMEA (Source: Spiceworks, 2012)

64% of SMEs

use at least ONE cloud-based service (Source: IDC)

70% are interested in cloud services (Source: Forrester, 2011)

of SME’s

SME demand for cloud based services will ‘skyrocket‘ - As existing users will increase usage + non-users will adopt

(Source: IDC)

Business cloud adoption in Europe lags behind the US

by 2 years (Source: Guardian, 2012)

Example: Market insight

CRM

TOOLS

FRIENDS

TRUSTED

PARTNERS

SOCIAL

MEDIA

STARTUP

NETWORKS

BOOTCAMP

PARTNERS

ENTREPRENEURS

SOCIAL NETWORKS

PROJECT MGMT

TOOLS

OPERATION

MGMT

TOOLS

BRANDED

NEWS SITES

3’rd PARTY

RESSOURCES

AFFILIATES

BUSINESS

INTELLIGENCE

& ANALYTICS

SALES

TOOLS

EKSTERNAL

RECOMMENDERS

PARTNER

SITES

BUSINESS TOOL

SERVICE CHECK

OTHER

TOOLS

TOOWL

DATABASE

COLLABORATION

TOOLS

TOOWL

CROWD

SOURCING

OTHER

PREMIUM

SERVICES

CROSS SELLING

>> TIME >> YEAR 0

REVENUE

STREAMS

COST EFFECTIVE

CLIENT

AQUSITION

BUILDING

TRUST

EXPANDING

SERVICE

AREAS

NEXT STEPS

IMPROVEMENTS

FUTURE

VISION

COMMERCIAL

LAUNCH BETA

Example: Growth Roadmap

The Wheel of Growth

You are not alone…. The vibrant ecosystem

What the entrepreneur also needs:

Co-working space, office hotels, incubation

• Inspiration, coffee, shared ressources • Mentors, coaching, training, events • Party, social life, collaboration • ….

http://www.nestcopenhagen.dk/ http://www.fastupfront.com/blog/entrepreneurs/18-famous-college-dorm-room-businesses-that-made-millions/#sthash.V9Zc2nXQ.dpuf

Famous College Dorm Room Businesses that Made Millions

You can even live together…..

http://www.nestcopenhagen.dk/

Entrepreneurship stage 3: Dealing with Accelerators

• Early stage Startup is high risk > High share for taking the risk!

• Providing highly competent support and growth coaching

• Choose with care > Chemistry, approach & shared objectives

• May provide capital, connection to angels or preparing for investors

You are not alone…. The vibrant ecosystem Entrepreneurship stage 4: Moving ahead

• Expanding internationally • Going professional (Board, CEO etc) • Creating the culture • Increasing investments (& funds/loans)

Tradeshift was awarded Best Enterprise Startup 2010 at The TechCrunch Europe startup award Tradeshift is used by over 200.000 businesses in 190 countries

Example:

From Tradeshift presentaion; Symbion Investor Day, dec 2012


Example: Business of innovation

PROGRESS •Are you making progress? •How do you know that you are making progress? •What are your assumptions? •How do you plan to test those assumptions? •What were the resultas of the tests you performed since last board meeting?

INNOVATION ACCOUNTING Establish a baseline •Turn leap of faith assumptions into something quantifiable • Face the brutal facts • Measure where we are right now

•Think and act like pirates •Think outside the box – challenge decisions •Agile •Validated Learning (it’s OK to make mistakes) •Team Camps •Transparency (all business aspects) •Break up structures


Example: Pirate Culture

http://www.computerworld.dk/art/225863/danske-tradeshift-her-er-hemmeligheden-bag-vores-succes

















Example: Knowledge & pitfalls

Device experiments to learn • How to move the real numbers •Iterate (engine tuning) •Pivot or persevere

WHAT COULD GO WRONG? •Crisis of confidence •Traditional management approach (failure of execution, failure to plan) •Plans are full of uncertainty •- how do we know, we learned something critical? • - How do we know, if we just goofed up?


Example: Learning loop

LEARNING THROUGH FEEDBACK •Low cycle time - learn fast. Fail fast. •Demonstrate value-creating activities in shortest possible time with least possible effort •Put in front of target audience and measure behaviour (#getoutofthebuilding) •Compare to baseline and learn

VALIDATED LEARNING •Every action is based on assumptions •Right=progress. Wrong=wasted peoples time •Progress => moving towards sustainable growth •Value hypothesis: Why users will spend time with the product •Growth hypothesis: How new users come in contact with the product •Validation: We want to know that we learn the right thing

Innovation Inside. February, 2010, TheRISE of the CREATIVE MASSES

INNOVATION CULTURE

Disruption from the inside: Media companies seek hope in incubators

Example: Connecting startups with established Biz (2)

“If you continue to disrupt our industry, we want to work with you.”

http://www.15inno.com/wp-content/uploads/2012/06/Screen-Shot-2012-06-06-at-08.43.21.png

READY FOR OPEN INNOVATION ?

The intrapreneur

Innovation Consortiums – connecting education with companies Funded innovation Creation of Startups New knowledge and insight New tools and methods

Research vs. Product interest conflicts Methodology vs. Conclusion communication Transforming knowledge to commercial output

Innovation Inside. February, 2010, TheRISE of the CREATIVE MASSES

INNOVATIONS CULTURE

[email protected]

M: 21915612

www.medieinnovation.dk