Why Startups Need SIE

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Tech startup companies are typically founded by entrepreneurs with business and computer science backgrounds. Unfortunately, without applicable experience, those backgrounds alone (and even together) are not well-rounded enough to successfully manage all aspects of a new business venture. That's why startup companies need to start bringing on Systems and Industrial Engineers. This presentation dives deep into the value that SIE's can offer to the Tech Startup world.

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  • What?
  • Why?
  • The SIE Skill Set is perfect for starting new, innovative companies.A lot of new companies are trying to get themselves going without Systems Thinking.But, many that have used it have been wildly successful.
  • This could be you!You could invent the next big thing that affects the entire world.As a systems engineer, you have the skills to make it happen.
  • Basically, any company that is trying to make money in a new way.
  • Some Examples*Facebook*Twitter*Instagram*Zappos*Amazon*Google*Kickstarter*Square*Dropbox
  • Instagram, for example, proves interesting with 3 numbers:First number - 13 – Number of employeesSecond number - 2 – Number of years between the start of Instagram and its sale to Facebook forThird number – 1 Billion Dollars
  • Beyond Money:Products like Facebook and Instagram have an impact on the world.In March 2010 they had no usersIn December 2010, they had 1MJune of 2011, 5MSeptember 2011, 10MBy the time they sold to Facebook in April 2012, 30MThat’s a lot of peopleValued them at $1BToday, they have 100MWho take and share 40M photos/day8500 Likes every secondMake 1000 comments every second3.6M / hour
  • Beyond Money:Products like Facebook and Instagram have an impact on the world.In March 2010 they had no usersIn December 2010, they had 1MJune of 2011, 5MSeptember 2011, 10MBy the time they sold to Facebook in April 2012, 30MThat’s a lot of peopleValued them at $1BToday, they have 100MWho take and share 40M photos/day8500 Likes every secondMake 1000 comments every second3.6M / hour
  • Changing every industry worldwide. Examples: Amazon > Borders, Netflix > Blockbuster
  • Changing every industry worldwide. Examples: Amazon > Borders, Netflix > Blockbuster
  • State number of startups that fail
  • (ask the audience)
  • Logo----- Meeting Notes (4/16/13 07:37) -----* We had the knowledge that it would have taken to make this product explode* We didn't apply it properly.
  • ----- Meeting Notes (4/16/13 07:37) -----*
  • Logo
  • -Quote: Definition of startup by Steve Blank
  • -Brief history: Borrowed methodologies from Lean Manufacturing (SIE XXX)
  • Build-Measure-Learn  SIMILAR process (SIE XXX)
  • Build-Measure-Learn  SIMILAR process (SIE 454)State the ProblemInvestigate AlternativesModel the SystemIntegrateLaunchAssess PerformanceRe-evaluate
  • Market validation. Example: Bachelor Pad CanvasWhy spend 4-6 weeks & Thousands of dollars?Built landing page in one nightMeasure actual action – not just surveysWilling to give email addressSpent $400 for internet marketing50 people signed upIf we assume half of those will purchase - $16 / saleWe make $100 / sale - $84Probability & StaticsMeasuring SalesModel those sales with Binomial DistributionAssign a confidence interval to be sure that we collected enough dataBe confident that the business will be viable
  • Split-test different features, i.e. price points (SIE 330).Mulitple variables at onceRefer to this as A/B split testing
  • Tests most basic assumptions about the business modelNow we have market validation; so what to do build?
  • Systems and software engineering (SIE 277)This is the most importantMost entrepreneurs focus on developmentDevelopment is cheap – India - $8/hrProblem is – communication barrierBeing able to document your software in UML help to leverage inexpensive resources effectivelyVERY POWERFUL
  • Project management (Engineering management: SIE 265, SIE467)The next most important is Project ManagementMost startups don’t understand the importance of having a clear SOWKeeping graphic designer, developer, and all stakeholders in sync
  • What did we forget?
  • Lean marketing prior to launch. More split testing statistics (SIE XXX and XXX)You can have a great product, but if you can’t sell it…Test different marketing strategies on a small scaleJust like we designed the product
  • Build-measure-learn loopAmazon does this all the timeDoes the blue button make people buy more than the yellow button?Constantly tinkering and experimentingThat’s the way your have to operate to make sure that you keep your customers happy
  • Conversion rate optimization (split testing SIE again)
  • Build successful companies
  • List out all of the courses we use
  • QR code for Twitter
  • Why Startups Need SIE

    1. 1. Tech Startups Need YouVGC UnlimitedSIE 296S4/16/2013Aidan Garza & Paul Vazquez
    2. 2. Introduction• Aidan Garza– BSE Systems Engineering Universityof Arizona ‘11– @AMGBuilder– aidan.garza@vgcunlimited.com• Paul Vazquez– BSE Systems Engineering & BSMathematics University of Arizona ’11– @pvazquez32– paul.vazquez@vgcunlimited.com2#sie296s
    3. 3. Agenda• Introduction• Background• Systems Engineering in Tech Startups– What are tech startups?– Market validation & lean testing– Implementation– Online marketing & optimization• Questions3#sie296s
    4. 4. Agenda4Stop!#sie296s
    5. 5. Good Engineers5What?#sie296s
    6. 6. Systems Engineers6Why ?#sie296s
    7. 7. Why are we here?Tech startups need SIE!7#sie296s
    8. 8. This could be you!8#sie296s
    9. 9. What are TechStartups?9#sie296s"Organizations designed tosearch for a repeatable andscalable business model basedon technology” – Steve Blank
    10. 10. What are TechStartups?10#sie296s
    11. 11. Why are theyinteresting?11#sie296s2131B
    12. 12. Why are theyinteresting?12#sie296s30M10M20MMarch2010April2012December2010June2011September201151030
    13. 13. Why are theyinteresting?13#sie296s30M10M20MMarch2010April2012December2010June2011September201151030100 Million Users Today40MPhotos /day8500Likes /Sec.1000Comments/ Sec.
    14. 14. Why are theyinteresting?14#sie296s>
    15. 15. Why are theyinteresting?15#sie296s>
    16. 16. But not all Hollywood16#sie296s1%75%99.75%
    17. 17. Why do they fail?17#sie296s?
    18. 18. No Market Need18#sie296s
    19. 19. Lack of Experience19#sie296s
    20. 20. Lack of Execution20 #sie296s
    21. 21. 21#sie296s$40K2k
    22. 22. SIE thinking can help!22#sie296sIE
    23. 23. VGC Unlimited23#sie296s
    24. 24. Lean Startup24#sie296s"Organizations designed tosearch for a repeatable andscalable business model”– Steve Blank
    25. 25. Lean Startup25#sie296s
    26. 26. Lean Startup26#sie296sBuildMeasureLearn
    27. 27. Lean Startup27#sie296sSIMILAR
    28. 28. Market validation28#sie296s
    29. 29. Market validation29#sie296s
    30. 30. Minimum ViableProduct30 #sie296sReleased 3 minVideo as MVP
    31. 31. Implementation31#sie296sUMLDiscoverRequirements
    32. 32. Implementation32#sie296sProjectManagementScope of Work
    33. 33. Launch!33#sie296sWAIT!
    34. 34. Lean Marketing34#sie296sBuildMeasureLearnLow BudgetSplit Testing
    35. 35. Now Launch!35 #sie296s
    36. 36. Agile Iterations36#sie296s1-4Weeks24Hours
    37. 37. Product Optimization37#sie296sData! Data! Data!
    38. 38. Success!38 #sie296s
    39. 39. SIE Recap39 #sie296s• Engineering Management (SIE 265, 467)• Object Oriented Modeling & Design (SIE 277)• Probability & Statistics (SIE 270, 305, 321, 422, 430)• Design of Experiments (SIE 330)• Simulation & Modeling (SIE 431)• Optimization Methods (SIE 440)• Quality Engineering (SIE 406)• Technical Sales & Marketing (SIE 405)• Systems Engineering (SIE 454)
    40. 40. Does this interest you?40 #sie296sEmail resumes:jobs@vgcunlimited.com
    41. 41. How did we do?41#sie296s#sie296s
    42. 42. Questions42#sie296s?

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