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Ed  Roberts  Success  Factors
 

Ed Roberts Success Factors

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    Ed  Roberts  Success  Factors Ed Roberts Success Factors Presentation Transcript

    • Success Factors & Success Predictors Ed Roberts, MIT-Sloan John T. Preston, MIT Entrepreneurship Center Geoffrey Moore, Silicon Valley IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • “you could forecast anything but the future” Neils Bohr IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • Success Factors in High-Technology Start-Ups conclusions based on 25 years of research carried out on 769 companies by Prof. Edward B. Roberts Chairman, MIT Management of Technology and Innovation Group MIT Sloan School of Management Founder, MIT Enterprise Forum Inc. All data from E.B. Roberts Entrepreneurs in High-Technology: Lessons from MIT and Beyond (New York: Oxford University Press, 1991) IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • SUCCESS OF TECHNOLOGY-BASED FIRMS (5-7 years post-founding) As measured by Entrepreneurs’ growth & profitability self-assessments (%) (%) High Performers 15 Succeeding 15 Merely Surviving 54 Failures 16 IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • SUCCESS OF TECHNOLOGY-BASED FIRMS (5-7 years post-founding) As measured by Entrepreneurs’ growth & profitability self-assessments (%) (%) High Performers 15 85 Succeeding 15 Merely Surviving 54 15 Failures 16 IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED • Founders’ Characteristics • Start-up Characteristics • Later Strategic Evolution IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Founders’ Characteristics • Outperformed colleagues, problem solving projects • Less than Ph.D. education, usually • Made, not born • High N-Ach; optimally with moderate N-Pow • Supervisory experience Multiple co-founders especially including sales/marketing Build complimentary teams Quality of people / management determines success John T. Preston, MIT Entrepreneurship Center IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Start-up Characteristics • High degree of advanced technology transfer • Product orientation • Marketing (i.e. customer first) orientation & practices • Focused growth strategy IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Start-up Characteristics (cont.) John T. Preston, MIT Entrepreneurship Center • Quality Investors (open doors, deep pockets, hands on) • Move Quickly to the Market (Fast or Dead) • Attack the Fiercest Market Early • Strong IP IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Start-up Characteristics (cont.) John T. Preston, MIT Entrepreneurship Center LOCATION OF COMPANY (Regional Advantages - Michael Porter) • Near Fiercest Competitor and/or Most Demanding Customer • Clusters of Complementary Companies Provide Advantage: – Dutch Flowers – Route 128/Silicon Valley – Japanese Consumer Electronics – Singapore Hard Disk Drives IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Later Strategic Evolution • Strategic product/business focus • Strengthen market orientation • Overcome new problems o Measuring change in Market Applications o Current “New Problems” o “Founder’s Diseases” IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Measuring Change in Market Applications DIMENSION MEASURE For what purpose? Product Functionality To whom? End User Customer Group What selling methods? Distribution Channels IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • Crossing the Chasm (Geoffrey A. Moore) "still the bible for entrepreneurial marketing" Visionaries (Innovators and Early Adopters) – Technology buyer – Looking for paradigm shift – Willing to live with bugs Early majority – Productivity improvement – Business buyer – Looking for similar references – Company name, Product support base IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED Current “New Problems” Facing Successful and Growing High-Tech Firms • Shorter product life cycle • Increased competition • Difficulty in maintaining state of the art technology in all areas of business • Decreased product differentiation • Shift to non-engineering customer base • Problems in maintaining a growth atmosphere in the company • Periodically, problems in securing growth capital IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES HIGH-TECH FIRMS SUCCEED A Key Problem for Founder-CEOs: Avoid Fatal “Founder’s Diseases” “Founder’s Diseases” affect 2/3 founder / CEOs • Replacement is almost always by a more marketing-oriented person, usually brought in from the outside • “Survivor CEOs” are either not successes or are the 1/3 “super-successes” who are unexplainable by our studies IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY
    • WHAT MAKES FIRMS SUCCEED Losing my Virginity Richard Branson “There are no strategies or techniques that assure the success of a business. There are a number of operational practices that, if you follow, there is a certain level of confidence that the business will keep going; however you cannot reach a clear formula for business success and then bottle it like a perfume. It doesn't work that way. In order to succeed, you have to be there, feel the vibes and react accordingly. And if you have a good team and more than a little bit of luck, you may succeed. But in no way can this be taken for granted just by trying to reproduce someone else’s success.” IN COOPERATION WITH THE LEON RECANATI GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, TEL AVIV UNIVERSITY