TechBA, a Success model for Technology Companies Going Global

Itzam De Gortari TechBA-Seattle March 29, 2012

The US-Mexico Chamber of Commerce NW Chapter

Vancouver

Seattle Silicon Valley

Phoenix

Austin

Detroit

Montreal

Madrid

 TechBA Branches

Seattle

Aerospace • 72,000 employees • 737 line of production • New 787 Dreamline • AFA Washington

Information Technologies • 90,000 employees • Puget Sound International Hub • 150 Companies • 30 billions (usd)

Clean Technology • High environmental concern • Clean Tech Cluster, ranks # 1 by number employees around this sector

Biotechnology • 190 companies • 16,000 employees • 10 billions in revenues

Logistics • 3rd largest shipping center in USA

Film & Music • 1 billion in revenues • 12,000 employees Gaming

Largest key players in the industry, 497 millions 9,200 employees

What is TechBA Seattle?

ECOSYSTEM

FEDERAL GOVERNMENT STATE OF WASHINGTON

ASSOCIATIONS COMMUNITY TECHBA

• enterpriseSeattle •  City of Bellevue •  University of Washington • International Trade and Economic Development

• Create relationships through business not the other way around •  Sells/business driven •  Business culture is direct •  Merits

•  US-Mexico Chamber of Commerce NW •  Port of Seattle • Center of Advanced Manufacturing Puget Sound • Venspark •  Private companies

TechBA Results

Created in 2005, under the mandate to provide an environment that encourages innovation •  150 technology companies have reached $ 160 MM usd of international sales and $ 1 B usd combined, national and international •  3,500 new high-value positions generated

• High Value Technology Sectors: IT, aerospace, automotive, life sciences (biotechnology, medical devices), energy, high manufacturing

Facts of TechBA Seattle •  45 Mexican companies have participated in TechBA Seattle (2010-2011) •  10 companies have been incorporated in the US

•  2 companies starting patent registration •  4 companies have hired US nationals

•  15 Local Consultants / Coaches

•  12 work spaces available in our offices

•  5 strategic partners: City of Bellevue, enterpriseSeattle, Trade Development Alliance, US-Mexico Chamber of Commerce NW, and Venspark

TechBA Acceleration Program

8  to  12  months  5  weeks  

Pre-­‐accelera)on   Acelera)on  1  and    

 

12  months  

Acelera)on  2        

 

•  Customer generation •  Hypothesis definition •  Smoke test •  MVP

Business  Case  

• Marketing Plan • Implementation • Sales increase

• Sales increase

BootCamp  

BootCamp 2012

10 Companies: VG, Mobile and Web app’s 5 weeks Objective: Place a product in the market

In two mayor steps

Lean Startup

Learning process

6  Accelera:on  Pillars  

Product  

Market  

Technology  

Resources  

Business  Model  

Distribu:on  

Elevator  Pitch  

Business  Case  

Opera:onal  Plan  

Quantify and Replicate

BootCamp

Closure …

BootCamp 2012

Before and after …

MVP:  minimum  viable    product  

BootCamp 2012 other Outcomes …

Lean Startup

Venspark / TechBA

Customer

Company

6 pillars Get specific Make decision Take Actions

Persona Hypothesis Smoke test MVP Metrics

Quick summary

Companies Portfolio 2009

Aeronau:co  

Automotriz  

Biotecnología  

BPO  

Energía  

MANUFACTURA  

Mineria  

Quimica  

TIC  

4.03%  

3.23%  

4.84%  

4.03%   0.81%  

80.65%  

Aerospace Automotive Biotechnology

Mining Chemicals ITC

BPO Energy Manufacturing

Indicators

Source: http://www.businessinsider.com/the-future-of-mobile-deck-2012-3#-1

Indicators

Source: http://www.businessinsider.com/the-future-of-mobile-deck-2012-3#-1

TechBA Principles • Technology intensive business and concentrated core business •  Well established structure with a clear vision that permeates at all levels of the organization •  As VC’s, we select people with DNA of an entrepreneur

•  Product is important but excellence in management makes it big

•  Competitive advantages: find what makes you better than anyone else in the market

•  Test the market as soon as possible and be ready to adapt, test your alpha with friends and your beta with customers •  Self assessment

Context  The  company  develops  applica:ons  for  mobile  phones  for  Android  plaVorms,  iOS,  Blackberry  and  Windows  7    

Company  Achievements  under  the  TechBA  program    

           Barriers  Publisher  dependent  market  High  cost  of  distribu:on    

   

1 out of 6 …

$. Sales and Growth

   

Context  Scio  is  an  Interna:onal  full-­‐service  consul:ng  firm  that  specializes  in  so^ware  development.    Provides  outsourced  product  development  and  IT  services  for  ISVs  and  businesses  with  internet-­‐based  services  and  applica:ons  that  support  on-­‐demand  businesses  and  So^ware  as  a  Service  (SaaS)  specializing  in  Microso^  technologies.  

 Company  Achievements  under  the  TechBA  Program  •  Microso^  Cer:fied  Partner  as  Vendor  ID  in  less  than  3  months  •  Contract  to  develop  training  programs  for  Microso^  Azure  

 Barriers  •  Vendor  consolida:on  •  Saturated  market  (China  and  India)  •  Market  long  sales  cycle  •  Customer  acquisi:on  

   

Context  Kaxan  is  a  company  conformed  by  more  than  100  people,  focused  on  intellectual  property  development,  mainly  through  films,  animated  series  and  video  games  produced  by  its  two  divisions:  Kaxan  Studios  and  Kaxan  Games.      

 Company  Achievements  under  the  TechBA  program  •  Company’s  exposure  in  the  media.  Promo:on  of  Kaxan  Games  and  achievements  in  the  local  and  interna:onal  media:  Kaxan  

Developed  3  iOS  games  published  and  released  by  Chilingo:  Taco  Master,  Finger  Shoes  and  Torture  Bunny.  Taco  Master  is  the  #1  downloaded  app  in  the  iTunes  store  in  Mexico  on  iPhone  and  iPad  (ahead  of  such  brands  as  Plants  vs.  Zombies  and  Angry  Birds).  

•  Taco  Master  is  one  of  the  top  100  Arcade  games  in  the  US  iTunes  App  Store  

Barriers  •  Corporate  governance  •  Licensing  process  •  Limited  resources  for  films    

   

   Context  Xibalba   is   an   independent   company   with   a   global   vision   devoted   to   crea:ng   innova:ve   games   by   using   the   latest  gaming  technology  to  achieve  the  highest  quality  standards  

Company  Achievements  under  the  TechBA  Program  •  Award   winning  Mexican   company   that   has   developed   the   game   Icebreakers,   offered   for   sale   via   digital   distribu:on:   Intel,  

Desura,  OnLive,  direct2Drive  •  Icebreakers  was  awarded  the  :Level  Up  2010”  awards  for  Character  Design  and  Best  Laptop  Game”  from  Intel  •  Has  secured  their  first  extended  development  contract  with  a  major  mobile  games   indy  developer  publisher   to  assist   in   the  

development  of  new  and  exis:ng  F2P  (Free  to  Play)  mobile  games  for  iOS  and  Android.  •  Development   of   the   value   proposi:on   of   Xibalba   Studios   for   Games   Connec:on   in   Lyon   France   to   be   used   with   various  

publishers  •  Poten:al  contract  with  Big  Fish  Games  to  publish  future  :tles  

Barriers  Publisher  dependent  market  High  cost  of  distribu:on  

   

 

 Poten)al  Success  Case    Context  Anfexi  is  a  company  that  provides  so^ware  solu:ons  for  the  loan  and  credit  industry.  It  has  20  specialized  products  with  a  scope  that  goes  from  the  lead  genera:on/loan  origina:on  to  the  loan  management/collec:on  and  recovery    

Company  Achievements  under  the  TechBA  Program  •  Anfexi  refined  its  business  strategy  •  Found  and  got  in  contact  with  poten:al  financial  services  ins:tu:ons  •  Closed  a  contract  with  Sco:a  Bank  •  Is  nego:a:ng  a  poten:al  partnership  with  a  partner  to  provide  services  to  credit  unions  in  the  U.S.  

 Barriers  •  Lenders  have  the  need  to  sell  more  loans  and  reduce  the  cost  of  manage  them.    

 

 

 Poten)al  Success  Case    Context  Locomocion  3D  is  a  Mexican  company  that  provides  Mo:on  Controlled  Camera  Services  and  recently  it  has  been  involved  in  game  development  through  the  planning  of  a  virtual  studio  

 Company  Achievements  under  the  TechBA  Program  •  Development  of  a  new  and   improved  business  plan   including  sales  materials   focusing  on  key  ac:ons   to  enabling  partnership  opportuni:es  

•  Locomocion  3D  had  a  business  mee:ng  with  Microso^  having  an  excellent  outcome  with  the  purpose  of  using  Kinect   in  B2B  applica:ons.  

•  Iden:fied  poten:al  partners  and  engagement  for  company’s  sales  exten:on  opportuni:es  

Barriers  Publisher  dependent  market  High  cost  of  distribu:on  

   

 

 Poten)al  Success  Case    Context  Kokonut  Studio  is  an  independent  and  crea:ve  Mexican  game  studio  driven  by  their  desire  to  innovate  mobile  experiences  

 

Company  Achievements  under  the  TechBA  Program  •  Ability  to  execute  a  competent  product  development  in  the  video  games  sector  •  Development  and  valida:on  of  a  new  posi:oning  around  “Context  Based  Games”  •  Access  to  10  major  poten:al  publishers  or  distribu:on  partners  •  Nego:a:ons  with  distribu:on  partners  

Barriers  Publisher  dependent  market  High  cost  of  distribu:on  

   

     

 

 

Take away

•  Accelerator model successful for economic development based on push strategies: especial emphasis in sales • People, structure and operations •  Facilitators, based on consultants promoting:

• Key business relationships in the new market

• Hubs: education, political structure that understands business needs and Financial institution willing to invest in innovation

Thanks