Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi1#innovationlab @mjskok #startupsecrets www...
Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi2#innovationlab @mjskok #startupsecrets www...
Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi3#innovationlab @mjskok #startupsecrets www...
Turning Products Into CompaniesJ. McEleney, CEO Belmont Technology Inc.April 20134/1/13BelmontTechnologyConfidential4
Background• Former CEO of SolidWorks (2001-2007):• $600M supplier of Windows 3D CAD software• Acquired by Dassault Systeme...
4/1/13BelmontTechnologyConfidential6CAD is the Basis of Every Product
Does anyone know what this is?4/1/13BelmontTechnologyConfidential71-5-0-3
Where to sell?4/1/13BelmontTechnologyConfidential80-3 4-611+6-101-51 23# Units# Months
Why did we care where VARs sold?• Under-capitalized• Need profitable, quicksales• New account penetrationwas critical to o...
“1503” = Execution Philosophy• From 1st customer touch -> product delivery:• Minimize friction• High touch, low cost• Broa...
Eco-system “CATCH-22”:4/1/13BelmontTechnologyConfidential11Partners only want your customers, but…You can’t get customers ...
So how did we break the cycle?4/1/13BelmontTechnologyConfidential12Marketing ColdFusionLeaders Set ThePaceFollowers WillFo...
Meet your enemy:4/1/13BelmontTechnologyConfidential131. Events force action2. The perfect is the enemy of the good
What you think vs. What you know4/1/13BelmontTechnologyConfidential14Important MORE Important
Subscription: What price to charge?• Situation:• Competitors charged 18%• Wanted VAR’s to provide end user support• SolidW...
Some Other Things I have Learned:• It’s easy to start a company, it’s hard to build a business• Events force actions• The ...
Thank You4/1/13BelmontTechnologyConfidential17
Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi18#innovationlab @mjskok #startupsecrets ww...
Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi19#innovationlab @mjskok #startupsecrets ww...
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Turning Products into Companies - Case - SolidWorks

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John McEleney, former CEO of SolidWorks, discusses how the 3D design company became a market leader. He reviews how it is easy to start a company but hard to build a business, offering an instructive view of the approaches he took that led to his success and the company’s ultimate acquisition by Dassault Systems.

Published in: Technology, Business

Turning Products into Companies - Case - SolidWorks

  1. 1. Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi1#innovationlab @mjskok #startupsecrets www.mjskok.comMICHAEL J SKOKHi Harvard innovation labTurning Products into CompaniesBy Design & Architecturetwitter: @mjskok mjskok.comNorth Bridge Venture PartnersSTARTUPSECRETSCase Example: John McEleneyFormer CEO of SolidWorks
  2. 2. Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi2#innovationlab @mjskok #startupsecrets www.mjskok.comFor context and more information:• The entire “Turning Products into Companies”presentation can be found here.• For more on the Startup Secrets series, visitwww.startupsecrets.com• Related Startup Secrets presentation recommendations:– Building a Compelling Value Proposition– Go To Market Strategies
  3. 3. Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi3#innovationlab @mjskok #startupsecrets www.mjskok.comJohn McEleney, CEO BelmontSolutions- Previously CEO SolidWorks- @johnmceleney
  4. 4. Turning Products Into CompaniesJ. McEleney, CEO Belmont Technology Inc.April 20134/1/13BelmontTechnologyConfidential4
  5. 5. Background• Former CEO of SolidWorks (2001-2007):• $600M supplier of Windows 3D CAD software• Acquired by Dassault Systemes• Former CEO of CloudSwitch (2009-2012)• Enterprise cloud software• Acquired by Verizon• CEO of Belmont Technology (2012)• $9 M Series A (North Bridge, Commonwealth)• $25 M Series B (NEA)• Based in Cambridge4/1/13BelmontTechnologyConfidential5
  6. 6. 4/1/13BelmontTechnologyConfidential6CAD is the Basis of Every Product
  7. 7. Does anyone know what this is?4/1/13BelmontTechnologyConfidential71-5-0-3
  8. 8. Where to sell?4/1/13BelmontTechnologyConfidential80-3 4-611+6-101-51 23# Units# Months
  9. 9. Why did we care where VARs sold?• Under-capitalized• Need profitable, quicksales• New account penetrationwas critical to our longterm success4/1/13BelmontTechnologyConfidential9+ $- $Making MoneyLosing Money
  10. 10. “1503” = Execution Philosophy• From 1st customer touch -> product delivery:• Minimize friction• High touch, low cost• Broad, stable revenue predictability• Upgrades became an optimization challenge• >500K boxes to be shipped• 15.9 oz vs 16 oz (different UPS pricing schedule)• “Land and Expand” sales strategy for major accounts4/1/13BelmontTechnologyConfidential10
  11. 11. Eco-system “CATCH-22”:4/1/13BelmontTechnologyConfidential11Partners only want your customers, but…You can’t get customers without partners
  12. 12. So how did we break the cycle?4/1/13BelmontTechnologyConfidential12Marketing ColdFusionLeaders Set ThePaceFollowers WillFollowStep # 1 Step # 3Step # 2Credibility through #’s Get one partner, makethem successfulThe others (includingleaders will join)
  13. 13. Meet your enemy:4/1/13BelmontTechnologyConfidential131. Events force action2. The perfect is the enemy of the good
  14. 14. What you think vs. What you know4/1/13BelmontTechnologyConfidential14Important MORE Important
  15. 15. Subscription: What price to charge?• Situation:• Competitors charged 18%• Wanted VAR’s to provide end user support• SolidWorks always wanted to take calls->help customers get intoproduction• Action:• Start with the VAR:• How many customers could a support person handle?• How much would they cost?• What % margin does VAR expect?• How do we make sure they call VAR first?• Statistical Process Control• Today this generates $300M (all of the profit of the company)4/1/13BelmontTechnologyConfidential15
  16. 16. Some Other Things I have Learned:• It’s easy to start a company, it’s hard to build a business• Events force actions• The perfect is the enemy of the good• Hiring is the most important thing we do• It should be part of your culture• You are going to make mistakes, fire quickly• Sales people:• Look for the coin slot• Look for people who want recognition• Your job as the CEO: create the culture• Hand written notes – go a lot further than you think• Celebrate victories, anniversaries…• As a leader NEVER take credit, give it to the team• You will get enough, don’t worry• If you’re doing your job, they did the work• Have Fun – it’s the journey NOT just the outcome!4/1/13BelmontTechnologyConfidential16
  17. 17. Thank You4/1/13BelmontTechnologyConfidential17
  18. 18. Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi18#innovationlab @mjskok #startupsecrets www.mjskok.comFor context and more information:• The entire “Turning Products into Companies”presentation can be found here.• For more on the Startup Secrets series, visitwww.startupsecrets.com• Related Startup Secrets presentation recommendations:– Building a Compelling Value Proposition– Go To Market Strategies
  19. 19. Harvard innovation lab : Michael J Skok : Startup Secrets : Company FormationHi19#innovationlab @mjskok #startupsecrets www.mjskok.comMICHAEL J SKOKHi Harvard innovation labTurning Products into CompaniesBy Design & Architecturetwitter: @mjskok mjskok.comNorth Bridge Venture PartnersSTARTUPSECRETSCase Example: John McEleneyFormer CEO of SolidWorks

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