SlideShare a Scribd company logo
1 of 99
Startup Secrets
                 Wrap Up & Geoffrey Moore
                      An insider’s guide
               to unfair competitive advantage

                       Michael J. Skok
                        North Bridge Venture Partners
                            Twitter: @mjskok
                            www.mjskok.com
Michael Skok
Agenda

               • Welcome
               • Highlights
                  Emphasis on formation, go to market

               • Awards
               • Acknowledgements & thank yous
               • Geoffrey Moore
Michael Skok
                                                         2
Startup Secrets - Agenda
•     Feb 1:        Value Proposition
•     Feb 22:       Company Formation
•     Mar 7:        Business Model
•     Mar 29:       Go-To-Market Strategy
•     Apr 18:       Pitch Session
•     May 17:       Geoffrey Moore


Michael Skok
                                            3
Agenda



                  Problem


                                                             Value
                            Solution
                                           Gain       Pain   Prop
          Ideas




                  Define                      Evaluate       Build



Michael Skok
                                       Michael Skok                  4
Qualify the problem –
                Is it “blac” & white?

    Blatant                                     Blatant
                      Blatant                   Critical

    Latent
    Aspirational
    Critical          Latent



                                Aspirational   Critical

Michael Skok
                                                           5
Problem
                Problems worth
                  solving are
                usually 4U …

               • Unworkable
               • Unavoidable
               • Urgent
               • Underserved
Michael Skok
                                 6
Solution
• Discontinuous innovation
• Defensible technology
• Disruptive business model




Michael Skok
                              7
Gain/Pain ratio
•   Revenue                 •   Inertia                •   Find (See)
•   Cost savings            •   Switching costs?       •   Try
•   Time                    •   Default = do nothing   •   Buy
•   People                  •   Alternatives?          •   Implement
•   Competitive advantage   •   Good enough =          •   Deploy
•   Reputation                  good enough!           •   Own – eg TCO
•   Etc..
                            •   RISK on a startup      Pain

                                     Inertia,
                                      RISK


               Gain
                                       >10

Michael Skok
                  8
Example - Apperian




                       Increase revenue by 40% at counters
                       Roll out 17,000iPads
                       Deliver worldwide no IT touch
                        required
                       Saved $2.5M+ in direct IT costs

Michael Skok
Learnings…




Michael Skok
                            10
Startup Secrets - Agenda
•     Feb 1:        Value Proposition
•     Feb 22:       Company Formation
•     Mar 7:        Business Model
•     Mar 29:       Go-To-Market Strategy
•     Apr 18:       Pitch Session
•     May 17:       Geoffrey Moore


Michael Skok
                                            11
Company Formation: Agenda
• Vision
• Culture
• People
        Hiring
• Team

• WORKSHOP: Hiring and forming a team

Michael Skok
                  Michael Skok          12
Building an enduring company:
                                                           Vision
                                                          (Market)



                                      Execution                        Listen
                                      (GOSPA)                          Learn
                                                                        Lead
                       People,
                       Team                                           Iterate
                                                                        Pivot
         Value
         Proposition



                                                                     Enduring
Startup                            Cultural Consistency
Michael Skok
                                                                     Company
                                 Michael Skok                               13
Learn from the best?
• FORTUNE Tech
  top 5                                  100 Best Company
              Google                     List consistently
                                         outperform major
              SAS Institute              stock indices by
              NetApp
              Zappos
                                          300%
              DreamWorks


Michael Skok
                          Michael Skok                        14
Hiring: Startup Secret
               The 3As and the 3+s

                            Aptitude



                      Ability       Attitude



                       + Authentic
                    + Awareness (self)
Michael Skok
               +… PLUS (People Like US = Fit)
                     Michael Skok               15
Select ALL your stakeholders
    See Video on Next Slide >>




Michael Skok
                                        16
My first interview question?




                 What are youpassionate about?




Michael Skok
                        Michael Skok             17
Acquia




                 “One of the hottest companies on
                 the planet” - VentureBeat




Michael Skok
               Michael Skok                         18
Acquia – learning culture




                 See Video on Next Slide >>




                           “One of the hottest companies on
                           the planet” - VentureBeat

Michael Skok
                         Michael Skok                         19
Startup Secrets - Agenda
•     Feb 1:        Value Proposition
•     Feb 22:       Company Formation
•     Mar 7:        Business Model
•     Mar 29:       Go-To-Market Strategy
•     Apr 18:       Mock Pitch Session
•     May 17:       Geoffrey Moore


Michael Skok
                                            20
Agenda
1.      Finding a Disruptive Business Model
2.      Focusing on CORE differentiation
3.      Multipliers and Levers to optimize it
4.      Measuring your customer lifecycle value & cost

• WORKSHOP

Other side of the coin – GTM – next session
       - Eg Segmentation, Channels etc
Michael Skok
                                                         21
Perfect Startup Storm


                        Breakthrough
                       Business Model




                               New Market
                 Disruptive
                               Opportunity /
                 Technology
                                 Segment



Michael Skok
                                               22
Capturing your value?
• Where is your CORE value?
               • Software/other technology
               • Data
               • Content
                                             CORE
               • Service, support
               • User network
• How will you monetize it
        To your competitive advantage ?
        Where are others most vulnerable?
Michael Skok
                                                    23
Examples:
               From my early experience:
• Symantec ~20 years ago (!)
     Symantec Antivirus for Mac (SAM)
           • Best seller – Licensed Product
     Norton Antivirus for PC (NAV)
           • How to change the game?
           • Best seller – Subscription Service




Michael Skok
                                                  24
Startup Secret:
                 Multipliers and Levers
               Multiply and Leverage your CORE
Multipliers:                                            Levers:
• Increase revenue                                      • Reduce time
• Increase reach                                        • Reduce costs
• Increase coverage       Multipliers
                                                        • Reduce resources



                                               Levers



                                        CORE

Michael Skok
                                                                             25
Strategic Partnership

• EG: “Whole Product” Strategic Partnership
Multipliers:                                                  Levers:
• Increase revenue                                            • Reduce time to
  through fuller                                                market
                                        services
                         Multipliers
  solution                                                    • Reduced dev costs




                                                     Levers
                                       Application
• Increase                               CORE
  reachthrough their                   Database
                                        Storage
  sales force, channel
  etc.
• Credibility
                  Integrate your CORE into
Michael Skok        their technology stack
                                                                                26
Russian Doll Packaging
Gives you and your customers:
• Digestible starting point
• Upsell Options
• Channel Flexibility
… and more

                One of my favorite personal adages:
               “Addiction before Adoption”
Michael Skok
                                                      27
Strategic




              Friction Free, SLIPPERY Products
Tactical




                 Simple
                 Low to no initial cost
                 Installs easily
                 Proves value quickly
                 Plays well with others ( WHOLE product )
                 Easy to use
                 ROI is obvious
                 Y customers can’t live without it
            Michael Skok
                                                            28
Strategic




                           Demandware case study
Tactical




            • WHOLE product – fulfills Value Prop
                    LINK program
                           • Creates whole product
                           • Extends whole product to broader solution

                           • Reduces cost of integration
                           • Reduces time to deploy




            Michael Skok
                                                                         29
LINK Technology Partners
   Outcome: Ease of Innovating Through New Technologies

                                              LINK Technology
                                              Partners
                                              •   Extensive library of pre-
                                                  built integrations between
                                                  leading third-party
                                          ®
                                                  technologies and
               LINK Technology Partners
                                                  Demandware Commerce

                                              Benefits to
                                              Retailers / Brands
                                              •   Accelerated Revenue Growth
                                              •   Rapid Access to Applications
                                              •   Reduced Implementation
                                                  Costs
                                              •   Early Visibility into Emerging
                                                  Technologies


Michael Skok

   30
LINK Technology Partners
   Outcome: Ease of Innovating Through New Technologies

                                              LINK Technology
                                              Partners
                                              •   Extensive library of pre-
                                                  built integrations between
                                                  leading third-party
                                          ®
                                                  technologies and
               LINK Technology Partners
                                                  Demandware Commerce

                                              Benefits to
                                              Retailers / Brands
                                              •   Accelerated Revenue Growth
                                              •   Rapid Access to Applications
                                              •   Reduced Implementation
                                                  Costs
                                              •   Early Visibility into Emerging
 See Video on Next Slide >>                       Technologies


Michael Skok

   31
Unfair competitive advantage…

           • Disruptive innovation

           Yet..

           • NON disruptive adoption


Michael Skok
                     Michael Skok      32
Example - Akiban
               • 10x -> 100x performance improvement
               • NO change to applications
               • NO risk deployment (replicated data)

               • Customers Gain/Pain ratio = 10 to 100
                  Case study:
                    • Doubling revenue with Akiban
                    • Unworkable alternatives
                       – rewrite and lose revenue, with unsure outcome
Michael Skok
                           Michael Skok                                  33
The Refined Model
• Cost of Acquiring &Re-Engaging Customer (CARC)
• Lifecycle Value of Customer (LCV)




                           Multipliers




                    Up-                                  Re-
                                                Levers

                    sell                 CORE            Trial



Michael Skok
                                                                 34
Startup Secrets - Agenda
•     Feb 1:        Value Proposition
•     Feb 22:       Company Formation
•     Mar 7:        Business Model
•     Mar 29:       Go-To-Market Strategy
•     Apr 18:       Pitch Session
•     May 17:       Geoffrey Moore


Michael Skok
                                            35
A Startup GTM - Agenda
           Marketing &                         Strategies
           Sales Cycle                         / Tactics              Channel                 Audience

   Awareness                                     Brand                Direct vs.            Targeting,
                                                                       Channel             Segmentation
                                               Positioning
        Interest
                         OUTbound / INboound

                                               Messaging             Channel                  Personas
Understanding                                                      Development,
                                                 Social            Management,             Actors/Scenes
                                                 Media                 Etc.
 Engagement
                                                  PR
             Trial                                                    Strategic
                                                Services              Partners
     Purchase                                  References

                                                           •   Results Oriented, Metrics, Execution Driven
                                                           •   Continuous Iteration & Improvement
  Michael Skok
                                                                                                             36
Identity
               Name
                                system


                       Brand
                      Essence
         Every Touch            Product
            Point
Michael Skok
Identity
               Name
                                              system


                         Brand
                 See Video on Next Slide >>
                       Essence
         Every Touch                          Product
            Point
Michael Skok
Positioning 2x2
Strategic




                       Whatever sets you up… for a unique white space
Tactical




                                                             Define real BARRIERS
                                                               to Entry into each
                                                                    segment



                               High
                                                                   {whitespace}




                                            a
                                                        c
            The choice of
            axes is critical



                                                    b                               Bubble sizing for
                                                                                     relative size of
                                                                                      competitors

                                                            d

                               Low

                                      Low                                  High
             Michael Skok
                                                                                                 39
Targeting, Segmentation:
Strategic




               Example, seeking Critical Need
Tactical




                              Mobile
                           Professionals    vs. Office Worker

                           Field Workers         vs. White Collar

                             Services              vs. Sales

                             Medical               vs. Office
                            Equipment                 Equipment

                             Hospitals           vs. Medical Clinics

                             Critical
                              Care         vs. Diagnostics

            Michael Skok
                                                                    40
Startup Secret
Strategic




                       - don’t be afraid to FOCUS!
Tactical




            • Narrow as possible to start!
                    Think Beachhead (Geoffrey Moore)


            • Which would you rather…
                    Expand on success?
                    Contract on failure?


            • Demandware case study…
            Michael Skok
                                                        41
Eating the Orange Segment At a Time




Segmentation Guidelines
 • “Get Small, Get Big or Get Out”
 • Small enough to be actionable, big
   enough to be meaningful
• Can you on Next Slide >>
See Videodeliver with distinction (and
     margin)?
 • If you succeed, will other customers
   care?

42                            Copyright 2008 Demandware, Inc. - Confidential
Startup Secret: Customer
Strategic




              “Actors” Change Through “Scenes”
Tactical




                                              Awareness
                                                                        Customer “Actors”

              Actors                            Interest                • Visionary


            Segment                                                     • Technocrat
                                             Understanding




                                                             “SCENES”
                                                                        • Operator
              Target
                                             Engagement                 • Influencer

                                                                        • Economic buyer
                                                 Trial
                            Underserved,                                • Decision maker
                           Uniquely valued     Purchase

            Michael Skok
                                                                                       43
“Driving” Startup
Strategic




                                                        Marketing & Sales
Tactical




                                                         You                      Customer
                                                        Control                   Controls

                            Neutral




                                                                                             Accelerator / Brake /Clutch
                                                                   Awareness
                              GEARS to build Momentum




                                                                     Interest

                                                                  Understanding

                                                                  Engagement

                                                                      Trial

                                                                    Purchase

                           Overdrive


            Michael Skok
                                                                                                                           44
Startup Secret:
Strategic




                           Closed Loop, Web
Tactical




                            Awareness
                                           $,Time, Resources
                                           Conversion rate %
                              Interest


                           Understanding       Closed
                                                Loop
                            Engagement         via Web


                               Trial
                                           ULTIMATELY:
                                           $,Time, Resources
                             Purchase      Conversion rate %

            Michael Skok
                                                               46
Ex: Unidesk Early Marketing
   Phase: Requirements                                                                                                                                                                                      Phase: Pre-Launch                       Phase: Launch
   Tool: Web Survey                                                                                                                                                                                         Tool: Blog, Twitter, Google Analytics   Tool: Blogger PR (new media)
   Goal: Build right product                                                                                                                                                                                Goal: Awareness                         Goal: Interest
   Key: Founder appeal                                                                                                                                                                                      Key: Compelling content/personality     Key: Unique, differentiated position
                                                                                                                                                                               Measure Everything: Weekly KPI Spreadsheet
                                                       D e a r Re a d e r,

   I re c e n t ly s t a rt e d a n e w s o ft w a re c o mp a n y fo c u s e d o n v irt u a l d e s kt o p
   ma n a g e me n t . It 's c a lle d U n id e s k, a n d it 's b a c ke d b y M a t rix a n d N o rt h
Brid g e , t w o o f t h e b ig g e s t n a me s in h ig h -t e c h v e n t u re c a p it a l. O u r g o a l is t o
   h e lp IT d ra ma t ic a lly imp ro v e t h e w a y d e s kt o p s , la p t o p s , a n d o t h e r P C
                                         c lie n t s a re ma n a g e d .
                                                                                                                                                                          P l u s , you wi l l :
    I'm o ffe rin g y o u a fre e $20 g ift c a rd re d e e ma b le a t a n y re t a il s t o re t h a t
  a c c e p t s M a s t e rCa rd if y o u 'll re s p o n d t o a s u rv e y a n d s h a re y o u r d e s kt o p
                                                                                                                                                             Re c e iv e a fre e $20 g ift c a rd
 ma n a g e me n t e xp e rie n c e s . I'm n o t lo o kin g t o s e ll y o u a n y t h in g . I'd ju s t like                                              re d e e ma b le a t a n y re t a il s t o re
y o u t o t a ke a fe w min u t e s a n d a n s w e r s o me q u e s t io n s s o my t e a m c a n b e t t e r
                                                                                                                                                              t h a t a c c e p t s M a s t e rCa rd ™
 u n d e rs t a n d y o u r d e s kt o p a d min is t ra t io n c h a lle n g e s a n d d e liv e r t e c h n o lo g y
                                      t h a t b e s t me e t s y o u r n e e d s .
                                                                                                                                                              Be e n t e re d in a d ra w in g t o
             T o c o mp le t e t h e b rie f s u rv e y , v is it Virt u a l D e s kt o p S u rv e y .
                                                                                                                                                             re c e iv e a fre e A p p le iP o d ™
                                                                                                                                                           T o u c h M e d ia P la y e r w it h W iF i
        T h a n k y o u fo r h e lp in g t o in flu e n c e t h e n e xt g e n e ra t io n o f d e s kt o p
                                        ma n a g e me n t s o ft w a re .
                                                                                                                                                           Ge t t h e c h a n c e t o jo in o t h e r IT
                                                                                                                                                             p ro fe s s io n a ls a s p a rt o f a n
                                                                                                                                                           in flu e n t ia l c u s t o me r a d v is o ry
                                                                                                                                                                             b o a rd
                                              Ch ris M id g le y
                                   CT O a n d F o u n d e r, U n id e s k Co rp




                       C o p y ri g h t © 2 0 0 8 U n i d es k C o rp o rat i o n • 1 9 0 0 W es t P ark D ri v e • S u i t e 2 8 0 • W es t b o ro u g h • M A • 5 0 8 . 9 8 3 . 1 4 1 1

                       If y o u d o n o t w i s h t o recei v e fu t u re m ai l i n g s fro m U n i d es k . P l eas e em ai l U n s u b s cri b e t o u n s u b s cri b e@ u n i d es k . co m




   Phase: Build pipeline                                                                                                                                                                                    Phase: Customer acquisition             Phase: Production customers
   Tool: Video, YouTube                                                                                                                                                                                     Tool: Webinars                          Tool: Forums
   Goal: Understanding                                                                                                                                                                                      Goal: Engagement, Trial                 Goal: Purchase, Repeat Purchase
   Key: Evangelist, crisp script                                                                                                                                                                            Key: Passionate customers               Key: Passionate, active customers




    Michael Skok
                                                                                                                                                                                                                                                                                      47
Ex: Unidesk Early Marketing
   Phase: Requirements                                                                                                                                                                                      Phase: Pre-Launch                       Phase: Launch
   Tool: Web Survey                                                                                                                                                                                         Tool: Blog, Twitter, Google Analytics   Tool: Blogger PR (new media)
   Goal: Build right product                                                                                                                                                                                Goal: Awareness                         Goal: Interest
   Key: Founder appeal                                                                                                                                                                                      Key: Compelling content/personality     Key: Unique, differentiated position
                                                                                                                                                                               Measure Everything: Weekly KPI Spreadsheet
                                                       D e a r Re a d e r,

   I re c e n t ly s t a rt e d a n e w s o ft w a re c o mp a n y fo c u s e d o n v irt u a l d e s kt o p
   ma n a g e me n t . It 's c a lle d U n id e s k, a n d it 's b a c ke d b y M a t rix a n d N o rt h
Brid g e , t w o o f t h e b ig g e s t n a me s in h ig h -t e c h v e n t u re c a p it a l. O u r g o a l is t o
   h e lp IT d ra ma t ic a lly imp ro v e t h e w a y d e s kt o p s , la p t o p s , a n d o t h e r P C
                                         c lie n t s a re ma n a g e d .
                                                                                                                                                                          P l u s , you wi l l :
    I'm o ffe rin g y o u a fre e $20 g ift c a rd re d e e ma b le a t a n y re t a il s t o re t h a t
  a c c e p t s M a s t e rCa rd if y o u 'll re s p o n d t o a s u rv e y a n d s h a re y o u r d e s kt o p
                                                                                                                                                             Re c e iv e a fre e $20 g ift c a rd
 ma n a g e me n t e xp e rie n c e s . I'm n o t lo o kin g t o s e ll y o u a n y t h in g . I'd ju s t like                                              re d e e ma b le a t a n y re t a il s t o re
y o u t o t a ke a fe w min u t e s a n d a n s w e r s o me q u e s t io n s s o my t e a m c a n b e t t e r
                                                                                                                                                              t h a t a c c e p t s M a s t e rCa rd ™
 u n d e rs t a n d y o u r d e s kt o p a d min is t ra t io n c h a lle n g e s a n d d e liv e r t e c h n o lo g y
                                      t h a t b e s t me e t s y o u r n e e d s .
                                                                                                                                                              Be e n t e re d in a d ra w in g t o
             T o c o mp le t e t h e b rie f s u rv e y , v is it Virt u a l D e s kt o p S u rv e y .
                                                                                                                                                             re c e iv e a fre e A p p le iP o d ™
                                                                                                                                                           T o u c h M e d ia P la y e r w it h W iF i
        T h a n k y o u fo r h e lp in g t o in flu e n c e t h e n e xt g e n e ra t io n o f d e s kt o p
                                        ma n a g e me n t s o ft w a re .
                                                                                                                                                           Ge t t h e c h a n c e t o jo in o t h e r IT
                                                                                                                                                             p ro fe s s io n a ls a s p a rt o f a n
                                                                                                                                                           in flu e n t ia l c u s t o me r a d v is o ry
                                                                                                                                                                             b o a rd
                                              Ch ris M id g le y
                                   CT O a n d F o u n d e r, U n id e s k Co rp




                       C o p y ri g h t © 2 0 0 8 U n i d es k C o rp o rat i o n • 1 9 0 0 W es t P ark D ri v e • S u i t e 2 8 0 • W es t b o ro u g h • M A • 5 0 8 . 9 8 3 . 1 4 1 1

                       If y o u d o n o t w i s h t o recei v e fu t u re m ai l i n g s fro m U n i d es k . P l eas e em ai l U n s u b s cri b e t o u n s u b s cri b e@ u n i d es k . co m




   Phase: Build pipeline                                                                                                                                                                                    Phase: Customer acquisition             Phase: Production customers
   Tool: Video, YouTube                                                                                                                                                                                     Tool: Webinars                          Tool: Forums
   Goal: Understanding                                                                                                                                                                                      Goal: Engagement, Trial                 Goal: Purchase, Repeat Purchase
   Key: Evangelist, crisp script                                                                                                                                                                            Key: Passionate customers               Key: Passionate, active customers




                                                                                                                                                                                                                                            See Video on Next Slide >>
    Michael Skok
                                                                                                                                                                                                                                                                                      48
Remember, ROME wasn’t
                   built in a Day
Nor will your GTM strategy and tactics be
                                                                         Listen
              R esults                                                  Learn
              O riented      GTM                                         Lead
                            Business                                    Iterate
              M arketing    Model
                                                                          Pivot
              E xecution                                              Product
                                                                    Proposition
        D riven through iteration
                                 •   Results Oriented, Metrics, Execution Driven
                                 •   Continuous Iteration & Improvement
Michael Skok
                                                                                   49
Ex: Unidesk




                   See Video on Next Slide >>


Michael Skok
                                                50
Startup Secrets - Agenda
•     Feb 1:        Value Proposition
•     Feb 22:       Company Formation
•     Mar 7:        Business Model
•     Mar 29:       Go-To-Market Strategy
•     Apr 18:       Pitch Session
•     May 17:       Geoffrey Moore


Michael Skok
                                            51
Thank you….




Michael Skok
                             52
Case Studies
•     Acquia
•     Apperian
•     Akiban
•     Demandware
•     Unidesk
•     Active Endpoints
•     MC10


Michael Skok
                                 53
Mentors and coaches
•     Adam Berrey          • Steve Skidmore
•     Brent Kleiman
•     David McFarlane
•     Jim Moran
•     Carmichael Roberts
•     Carlos Montero
      Luque



Michael Skok
                                              54
Judges
• Don Bulens
        CEO Unidesk

• Tom Ebling
        CEO Demandware

• Brent Kleiman
        Entrepreneur

• Jeff McCarthy
        GP, North Bridge

• David McFarlane
        Co-founder, CEO Akiban
Michael Skok
                                     56
Congratulations to…

     • Sarah Cullem

     • Regina Joice

     • Eric Kelsic

     • Ahmed Samir Mady

     • Katharine Wolf & Cecilia Chen

Michael Skok
                                       57
Build around - YOU...
• What problems do you understand uniquely
  well?

• What solution can you deliver uniquely well?

• What kind of disruptive business model can you
  bring?



Michael Skok
                                                 58
Thank you….




Michael Skok
                             59
Thank you….




Michael Skok
                             60
Thank you….




Michael Skok
                             61
Thank you….




Michael Skok
                             62
Thank you….




Michael Skok
                             63
Thank YOU…              Follow up online
                                       Email
      • All who                        mjskok@northbridge.com


        participated                   Web
                                       mjskok.com

                                       Twitter
                                       @mjskok
      • Harvard iLab
                Jodi Goldstein        SlideShare
                                       /mjskok
                Neil Doyle
                                       LinkedIn
                Gordon Jones          linkedin.com/in/mjskok

                                       Google+
                                       bit.ly/mjskok-google

                                       YouTube
                                       bit.ly/mjskok-youtube
Michael Skok
                                                                64
Startup Secrets - Agenda
•     Feb 1:        Value Proposition
•     Feb 22:       Company Formation
•     Mar 7:        Business Model
•     Mar 29:       Go-To-Market Strategy
•     Apr 18:       Pitch Session
•     May 17:       Geoffrey Moore


Michael Skok

                                            65
Startup Secrets
                 Wrap Up & Geoffrey Moore
                      An insider’s guide
               to unfair competitive advantage

                       Michael J. Skok
                        North Bridge Venture Partners
                            Twitter: @mjskok
                            www.mjskok.com
Michael Skok
Escape Velocity
Free Your Company‟s Future
  from the Pull of the Past


         Harvard iLab
         May 17, 2012
Introduction
     The Hierarchy of Powers




70
The Hierarchy of Powers
      A Framework for Analyzing Business Strategy

 Category Power      Growth born from category expansion
                      “Big Bang” growth creates a new earnings engine


      Company Power   Growth born from competitive advantage
                      Partners go out of their way to send you business


      Market Power    Growth born from customer commitment
                      Customers go out of their way to give you business


 Offer Power         Growth born from unmatchable offers
                      Competitors cannot or will not copy your efforts


 Execution Power     Growth born from reaching tipping points
                      Your initiatives become the next status quo



 71
Execution Power
     Transitioning to Scale
     Growth Born from Reaching Tipping Points




72
The Arc of Execution
     Where in the Execution Life Cycle Are You?




                         Deploy




       Invent                              Optimize




73
Time to Tipping Point
     The Most Important Life Cycle Metric




                              Deploy
                



            Tipping
             Point
                         Transition
                      to Viable Scale
       Invent                               Optimize




74
Why Tipping Points?
     • Adoption is social
       • People do what they see other people doing


     • This leads to two mirror-image phenomena
       • The Chasm: (I won‟t because you aren‟t)
       • The Tornado: (I must because you are)


     • Pre-tipping-point, no progress is sustainable
       • As soon as you withdraw the stimulus, the population
         returns to its prior state


     • Post-tipping point, there is no going back
       • Social dynamics institutionalize the change

75
Tipping Point for B2B Markets
     The Technology Adoption Life Cycle

                                    MAIN
                                   STREET
               TORNADO


       EARLY
      MARKET



                              BOWLING
               CHASM           ALLEY




76
Life-Cycle Metrics that Matter
     Tracking Performance Relative to the Chasm
        •   Early Market
            •   One or more flagship customers making big-bet commitments
        •   In the Chasm
            •   Cannot support yet another big-bet commitment
            •   Pragmatists still holding back from entering the market
        •   Taking the Beachhead
            •   Nailed a high-pain use case
            •   Getting strong word-of-mouth support within target segment
        •   In the Bowling Alley
            •   Additional use cases coming on board, viral in adjacent segments
        •   Inside the Tornado
            •   Horizontal “killer app” -- hyper-growth in the category
        •   On Main Street
            •   Hyper-growth subsides – pecking order established



77
Tipping Point for B2C Markets on the Web
     The Four Gears


                VIRALITY               ACQUISITION




                             Starter
                             Motor




              MONETIZATION             ENGAGEMENT




78
Four-Gears Metrics that Matter
     Tracking Performance Relative to the Tornado
        • Acquisition
           • Rate of gaining new users
        • Engagement
           • Average length, depth, and frequency of user engagement
        • Monetization
           • Percentage of total users that participate in business model
        • Virality(Positive Enlistment)
           • New customers coming from existing customers over time
        • Churn (Negative De-Enlistment)
           • Losing existing users
        • Lifetime Customer Value (ARPU/Churn)
           • Projected monetization returns by class of customer



79
Offer Power
     Return on Innovation
     Growth Born from Unmatchable Offers




80
Offer Power
 Getting a Return from Innovation

          Differentiation   Neutralization




                                             Productivity




81
Offer Power for Escape Velocity
 Three Mandates to Execute in Parallel



     Differentiation   Separate from your competitive set


     Neutralization    Keep up with evolving norms


      Productivity     Convert waste into value




82
Differentiate                                Differentiation
     Separate From Your Competitive Set




                 *
                                          *   Leverage your
                                               unmatchable
            Competitor 1
                                                capability
                            YOU
                *
           Competitor 2                       to create an
                                *
                           Competitor 3       unmatchable
                                                  offer
                Competitive Set




83
Neutralize                                 Neutralization
     Catch Up to Your Competition


                *
          Competitor 1
                                             Neutralize a

              *
          Competitor 2
                                        *    competitor‟s
                                            differentiation
                              *
                 *       Competitor 3
                                              by reaching
                                            “good enough”
                                                quickly
YOU
          Competitive Set




84
The Difference Between the Two

         Differentiation              Neutralization




                  • Return on Differentiation
                      • Beyond compare


                  • Return on Neutralization
                      • Good enough


                  • Everything spent between the two
                      • Waste!



85
Innovating for Optimization                Productivity
Focus on Productivity

                      YOU
            *
       Competitor 1
                                      Optimize behind
                                        the scenes
           *
      Competitor 2
                            *
                                *
                      Competitor 3
                                     to lower costs and
                                       free up scarce
                                          resources
           Competitive Set

                 Price
                Deflation
Three Innovation Playbooks


                     Differentiation   Neutralization    Productivity



       Core Metric   Separation        Time to market   Reclaimed resources

Standard to Meet     Unmatchable       Good enough      Best in class

  Test Question      How far?          How fast?        How deep?



                These playbooks have conflicting goals
                         Do not combine them


  87
No Return on Innovation
How Established Enterprises Waste Their R&D
            Differentiation           Neutralization




   Failed
  Attempts                                                 Optimization



    Waste
     Sources of Waste:
     • Differentiation projects that don’t go far enough
     • Neutralization projects that go too far and/or are too slow
     • Optimization projects that don’t free up mission-critical resources
Category Power
     Portfolio Management
     Growth Born From Entering New Categories




89
Category Maturity Life Cycle
                 The A-B-C-D‟s of Portfolio Management
                                            Indefinitely elastic       Utilize
                 Acquire                          middle               Power        Divest
                 Power
                                                                                   Declining
                                                                                    Power
Revenue Growth




                       A            B                C             D
                    Emerging       Growth          Mature          Declining     Fault
                     Market        Market          Market           Market       Line!
                                                    Catch
                  (pre-Tornado)
                                                    Next                                 E
                                                    Wave
                                                                                   End of
                                                                                   Life

                    Technology Adoption             Time
                         Life Cycle




     90
How Are Your Categories Performing?
     A Portfolio Analysis Framework

                            High Growth         Low Growth



              Material
             Revenues




                                                             PERFORMANCE
                                      B   B
                                                C
                                                C




                                          A     D




                                      A         D
             Not Material


                                              POWER

         B     C      D

     A

91
Typical Portfolio Pattern for a Public Company


                       High Growth     Low Growth




         Material

                                     2 3
                                     1 4
     Not Material



                 What is the first question the board asks?
            Why don’t we have more businesses in Quadrant 2?

92
Three Investment Horizons
     Where Category Power Initiatives Gets Stuck
                                                        Do well here too
                          Break-Out
                          Categories

                          On-board next
                          generation for          Horizon 3
                          future growth           ROI in 36 to 72 mos
       Current
       Categories
                                                              Future Category
       Meet                    Horizon 2
                                                              Options
       Performance             ROI in 12 to 36 mos
       Commitments                                            Develop options
                                                              for future
                                           Sticking point     growth
                Horizon 1
                ROI in 0 to 12 mos


                         Do well here
93
Portfolio Dynamics
 Horizons Meets Life Cycles
                                                           • Performance management
                                                             focuses on winning material
                High Growth            Low Growth            revenues (Horizon 1)

                                                           • H1 managers to hoard spare
                                 Horizon 1                   resources to ensure they can
 Material                                                    meet their commitments
 Revenues
                                                           • That crimps H2 efforts because
                                                             they compete with H1 for the




                                             Horizon „0‟
                     Horizon 2


                                  B   C                      same resource pool
                                  A   D
                                                           • It also makes H1 managers
                                                             reluctant to exit H0 businesses
 Not Material                                                (because every little bit of
                                                             revenue helps)

                                                           • Horizon 3 is unaffected by any
                                                             of these portfolio dynamics
       Horizon 3


94
The Horizon 2 Challenge
     Crossing the Chasm Inside the Belly of a Whale
     • All the other horizons are OK
        • H1 gets first dibs at resources
        • H3 gets funded outboard of the process
        • H0 sneaks in under the covers
     • H2 is out in the cold
        • H2 competes directly with H1 for resources
        • H1, under pressure to meet current obligations, does not
          release resources willingly
        • H2 cannot compete with H1, particularly when metrics and
          compensation focus on material returns in the current year

       This is not a failure to invest in R&D innovation
          This is primarily a go-to-market problem
95
Innovation Incubation Model
     It‟s Not a Funnel. It‟s an Hourglass!




                           Horizon 3

                           Horizon 2

                           Horizon 1




96
The Race to Material Revenues
     Rules of Thumb for Publicly Held Enterprises
     • 5% - 10% of Total Revenue = Revenue Materiality
       • This is the exit threshold from H2 to H1


     • 0.5% - 1% of Total Revenue = On the Expense Radar
       • This is the entry threshold from H3 to H2


     • Horizon 2 Journey
       • Grow one order of magnitude in 12 quarters
       • Be more than half way after 8 quarters
       • Else fold back into the base business and move on

                 Horizon 2 is not a stable state
                Must race to get through, or die
97
Meeting the Horizon 2 Challenge
     New Prescriptions in Five Key Areas
        1. Number of H2 Initiatives
           •   One at a time, regardless of size of your enterprise
           •   No limit on number of H1 or H3 initiatives
        2. Planning & Budgeting
           •   Calendar for the 2nd quarter
           •   Do not blend with annual planning and budgeting process
        3. Organizational Structure
           •   Independent BUs with direct control over all functions
           •   Transition to functional organization at Horizon 1
        4. Metrics
           •   Tipping point metrics
           •   Crossing the Chasm (B2B) or Four Gears (B2C)
        5. Talent & Compensation
           •   Major variable comp tied to Tipping Point success
           •   Affects every executive equally

98
Conclusion
     Putting the Previous in Context




99
Escape Velocity is Hard to Create
      Understanding the Dynamics of the Status Quo
      • The innovator‟s dilemma
         • Established enterprises focus on their best customers, who want
           more of what they have, not something new.


      • The asymmetry of risk for successful companies
         • Breakout growth involves taking risk. The bigger you are, the
           less you have to win from taking risk, the more you have to lose


      • The pragmatics of annual planning in established enterprises
         • Next year‟s plan is normally based on last year‟s—which means
           legacy businesses get first dibs at the critical resources


      • The dynamics of contemporary financial markets
         • Short-term investors drive short-term compensation metrics—
           breakout growth always involves a J-curve

100
Companies Who Could Not Escape

      Burroughs – Sperry Univac – Honeywell – Control Data
      MSA – McCormick & Dodge – Cullinet– Cincom – ADR–
      DEC– Data General – Wang -– Prime– Tandem – Daisy
      – Calma These were not badSilicon Graphics – Sun –
              – Valid – Apollo – companies
      Informix – Ingres – Nortel– Bay Networks – Lucent
               These were our best companies!
      – 3Com – Banyan – WordPerfect– Lotus – Ashton Tate –
      Borland– Novell – Atari – Osborne – Commodore – Casio
      – Palm – Sega – Netscape – MySpace – Kodak –
      Polaroid – Quest– America West – Nynex – Bell South

101
Achieving Breakout Growth
      What Does It Take to Gain Escape Velocity?
      • Focus on Power before Performance
        • Power fuels performance
        • Performance converts power into returns


      • Focus on Leadership before Management
        • Leadership develops power
        • Management delivers performance


      • Focus on Tipping Points before ROI
        • Tipping points are binary state changes in power
        • Until state change is achieved, no other metrics matter



102
gmoore@geoffreyamoore.com




103

More Related Content

What's hot

Building a Compelling Value Proposition - Competitive Advantage for Startups
Building a Compelling Value Proposition - Competitive Advantage for StartupsBuilding a Compelling Value Proposition - Competitive Advantage for Startups
Building a Compelling Value Proposition - Competitive Advantage for StartupsMichael Skok
 
Funding Strategies to Go the Distance
Funding Strategies to Go the DistanceFunding Strategies to Go the Distance
Funding Strategies to Go the DistanceMichael Skok
 
Value Proposition – Case – Diagnostics for All
Value Proposition – Case – Diagnostics for AllValue Proposition – Case – Diagnostics for All
Value Proposition – Case – Diagnostics for AllMichael Skok
 
Building a compelling value proposition
Building a compelling value propositionBuilding a compelling value proposition
Building a compelling value propositionMichael Skok
 
Startup Secrets - Roadmap to Success
Startup Secrets - Roadmap to SuccessStartup Secrets - Roadmap to Success
Startup Secrets - Roadmap to SuccessMichael Skok
 
Startup Secrets: Building a Compelling Value Proposition
Startup Secrets: Building a Compelling Value PropositionStartup Secrets: Building a Compelling Value Proposition
Startup Secrets: Building a Compelling Value PropositionMichael Skok
 
Go To Market – Case – Demandware Rebranding
Go To Market – Case – Demandware RebrandingGo To Market – Case – Demandware Rebranding
Go To Market – Case – Demandware RebrandingMichael Skok
 
Getting Behind the Perfect Investor Pitch
Getting Behind the Perfect Investor PitchGetting Behind the Perfect Investor Pitch
Getting Behind the Perfect Investor PitchStartup Secrets
 
Startup Secrets Case Study: Actuality Systems
Startup Secrets Case Study: Actuality SystemsStartup Secrets Case Study: Actuality Systems
Startup Secrets Case Study: Actuality SystemsMichael Skok
 
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...Board of Innovation
 
Lecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentLecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentStanford University
 
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
Define a Powerful Go-to-Market Strategy That Sets Your Product ApartDefine a Powerful Go-to-Market Strategy That Sets Your Product Apart
Define a Powerful Go-to-Market Strategy That Sets Your Product ApartCompellingPM
 
What's Your Roadmap to Success?
What's Your Roadmap to Success?What's Your Roadmap to Success?
What's Your Roadmap to Success?Startup Secrets
 
Turning Products into Companies
Turning Products into CompaniesTurning Products into Companies
Turning Products into CompaniesMichael Skok
 
Why Product-Led Growth is the most effective GTM strategy
Why Product-Led Growth is the most effective GTM strategyWhy Product-Led Growth is the most effective GTM strategy
Why Product-Led Growth is the most effective GTM strategyMickey Alon
 
Customer Development 4: Customer Discovery Part 1
Customer Development 4: Customer Discovery Part 1Customer Development 4: Customer Discovery Part 1
Customer Development 4: Customer Discovery Part 1Venture Hacks
 
Lean Business Validation experiments
Lean Business Validation experimentsLean Business Validation experiments
Lean Business Validation experimentsBundl
 
Startup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into CompaniesStartup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into CompaniesMichael Skok
 
Startup Secrets - Building a Compelling Value Proposition
Startup Secrets - Building a Compelling Value PropositionStartup Secrets - Building a Compelling Value Proposition
Startup Secrets - Building a Compelling Value PropositionMichael Skok
 

What's hot (20)

Building a Compelling Value Proposition - Competitive Advantage for Startups
Building a Compelling Value Proposition - Competitive Advantage for StartupsBuilding a Compelling Value Proposition - Competitive Advantage for Startups
Building a Compelling Value Proposition - Competitive Advantage for Startups
 
Funding Strategies to Go the Distance
Funding Strategies to Go the DistanceFunding Strategies to Go the Distance
Funding Strategies to Go the Distance
 
Value Proposition – Case – Diagnostics for All
Value Proposition – Case – Diagnostics for AllValue Proposition – Case – Diagnostics for All
Value Proposition – Case – Diagnostics for All
 
Building a compelling value proposition
Building a compelling value propositionBuilding a compelling value proposition
Building a compelling value proposition
 
Startup Secrets - Roadmap to Success
Startup Secrets - Roadmap to SuccessStartup Secrets - Roadmap to Success
Startup Secrets - Roadmap to Success
 
Startup Secrets: Building a Compelling Value Proposition
Startup Secrets: Building a Compelling Value PropositionStartup Secrets: Building a Compelling Value Proposition
Startup Secrets: Building a Compelling Value Proposition
 
Go To Market – Case – Demandware Rebranding
Go To Market – Case – Demandware RebrandingGo To Market – Case – Demandware Rebranding
Go To Market – Case – Demandware Rebranding
 
Getting Behind the Perfect Investor Pitch
Getting Behind the Perfect Investor PitchGetting Behind the Perfect Investor Pitch
Getting Behind the Perfect Investor Pitch
 
Startup Secrets Case Study: Actuality Systems
Startup Secrets Case Study: Actuality SystemsStartup Secrets Case Study: Actuality Systems
Startup Secrets Case Study: Actuality Systems
 
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
 
Lecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentLecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer Development
 
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
Define a Powerful Go-to-Market Strategy That Sets Your Product ApartDefine a Powerful Go-to-Market Strategy That Sets Your Product Apart
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
 
What's Your Roadmap to Success?
What's Your Roadmap to Success?What's Your Roadmap to Success?
What's Your Roadmap to Success?
 
Testing Your MVP
Testing Your MVPTesting Your MVP
Testing Your MVP
 
Turning Products into Companies
Turning Products into CompaniesTurning Products into Companies
Turning Products into Companies
 
Why Product-Led Growth is the most effective GTM strategy
Why Product-Led Growth is the most effective GTM strategyWhy Product-Led Growth is the most effective GTM strategy
Why Product-Led Growth is the most effective GTM strategy
 
Customer Development 4: Customer Discovery Part 1
Customer Development 4: Customer Discovery Part 1Customer Development 4: Customer Discovery Part 1
Customer Development 4: Customer Discovery Part 1
 
Lean Business Validation experiments
Lean Business Validation experimentsLean Business Validation experiments
Lean Business Validation experiments
 
Startup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into CompaniesStartup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into Companies
 
Startup Secrets - Building a Compelling Value Proposition
Startup Secrets - Building a Compelling Value PropositionStartup Secrets - Building a Compelling Value Proposition
Startup Secrets - Building a Compelling Value Proposition
 

Similar to Startup Secrets: Wrap Up & Geoffrey Moore - An Insider’s Guide

Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...
Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...
Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...Michael Skok
 
2016 Innovation Roundtable Keynote by Michael Skok
2016 Innovation Roundtable Keynote by Michael Skok2016 Innovation Roundtable Keynote by Michael Skok
2016 Innovation Roundtable Keynote by Michael SkokMichael Skok
 
Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...
Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...
Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...Business of Software Conference
 
Silicon Peel Meetup #7: Business Innovation
Silicon Peel Meetup #7: Business InnovationSilicon Peel Meetup #7: Business Innovation
Silicon Peel Meetup #7: Business Innovationsiliconpeel
 
Innovation Competitions Fei Ricardo Dos Santos May 16 12
Innovation Competitions Fei Ricardo Dos Santos May 16 12Innovation Competitions Fei Ricardo Dos Santos May 16 12
Innovation Competitions Fei Ricardo Dos Santos May 16 12jricardo3
 
Innovation @ Atlassian
Innovation @ AtlassianInnovation @ Atlassian
Innovation @ AtlassianAtlassian
 
Founder Institute - Presentation
Founder Institute - PresentationFounder Institute - Presentation
Founder Institute - PresentationHugo Macedo
 
Livecast Lecture Final
Livecast Lecture FinalLivecast Lecture Final
Livecast Lecture FinalYujin Chung
 
Thameem Rizvon - Network your way to success
Thameem Rizvon - Network your way to successThameem Rizvon - Network your way to success
Thameem Rizvon - Network your way to successGlobal Business Events
 
Jack Welch: GE's Two Decade Of Transformation
Jack Welch: GE's Two Decade Of TransformationJack Welch: GE's Two Decade Of Transformation
Jack Welch: GE's Two Decade Of TransformationMrudang Thakor
 
Why Design Matters - P&G Keynote
Why Design Matters - P&G KeynoteWhy Design Matters - P&G Keynote
Why Design Matters - P&G KeynotePreston Smalley
 
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-Creation
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-CreationGame Changing Business Models - Case - Dries Drupal, Open Source, Co-Creation
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-CreationMichael Skok
 
The Essential Product Owner - Partnering with the team
The Essential Product Owner - Partnering with the teamThe Essential Product Owner - Partnering with the team
The Essential Product Owner - Partnering with the teamCprime
 
Innovations and entrepreneurship: Cisco\'s programs, processes and experience...
Innovations and entrepreneurship: Cisco\'s programs, processes and experience...Innovations and entrepreneurship: Cisco\'s programs, processes and experience...
Innovations and entrepreneurship: Cisco\'s programs, processes and experience...SynerScope B.V.
 
The 90 minute Guide to Agile – What, Why, How by Allan Kelly
The 90 minute Guide to Agile – What, Why, How by Allan KellyThe 90 minute Guide to Agile – What, Why, How by Allan Kelly
The 90 minute Guide to Agile – What, Why, How by Allan KellySyncConf
 
Agile in 90minutes
Agile in 90minutesAgile in 90minutes
Agile in 90minutesallan kelly
 
UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...
UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...
UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...University Economic Development Association
 
Nico Perez + Founders Institute talk: Product & Services Development
Nico Perez + Founders Institute talk: Product & Services DevelopmentNico Perez + Founders Institute talk: Product & Services Development
Nico Perez + Founders Institute talk: Product & Services DevelopmentNico Perez
 

Similar to Startup Secrets: Wrap Up & Geoffrey Moore - An Insider’s Guide (20)

Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...
Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...
Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...
 
2016 Innovation Roundtable Keynote by Michael Skok
2016 Innovation Roundtable Keynote by Michael Skok2016 Innovation Roundtable Keynote by Michael Skok
2016 Innovation Roundtable Keynote by Michael Skok
 
Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...
Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...
Startup Secrets - an insiders guide to unfair competitive advantage. Michael ...
 
Silicon Peel Meetup #7: Business Innovation
Silicon Peel Meetup #7: Business InnovationSilicon Peel Meetup #7: Business Innovation
Silicon Peel Meetup #7: Business Innovation
 
Innovation Competitions Fei Ricardo Dos Santos May 16 12
Innovation Competitions Fei Ricardo Dos Santos May 16 12Innovation Competitions Fei Ricardo Dos Santos May 16 12
Innovation Competitions Fei Ricardo Dos Santos May 16 12
 
Innovation @ Atlassian
Innovation @ AtlassianInnovation @ Atlassian
Innovation @ Atlassian
 
Founder Institute - Presentation
Founder Institute - PresentationFounder Institute - Presentation
Founder Institute - Presentation
 
Livecast Lecture Final
Livecast Lecture FinalLivecast Lecture Final
Livecast Lecture Final
 
Thameem Rizvon - Network your way to success
Thameem Rizvon - Network your way to successThameem Rizvon - Network your way to success
Thameem Rizvon - Network your way to success
 
Startups
StartupsStartups
Startups
 
Jack Welch: GE's Two Decade Of Transformation
Jack Welch: GE's Two Decade Of TransformationJack Welch: GE's Two Decade Of Transformation
Jack Welch: GE's Two Decade Of Transformation
 
Why Design Matters - P&G Keynote
Why Design Matters - P&G KeynoteWhy Design Matters - P&G Keynote
Why Design Matters - P&G Keynote
 
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-Creation
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-CreationGame Changing Business Models - Case - Dries Drupal, Open Source, Co-Creation
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-Creation
 
The Essential Product Owner - Partnering with the team
The Essential Product Owner - Partnering with the teamThe Essential Product Owner - Partnering with the team
The Essential Product Owner - Partnering with the team
 
Innovations and entrepreneurship: Cisco\'s programs, processes and experience...
Innovations and entrepreneurship: Cisco\'s programs, processes and experience...Innovations and entrepreneurship: Cisco\'s programs, processes and experience...
Innovations and entrepreneurship: Cisco\'s programs, processes and experience...
 
The 90 minute Guide to Agile – What, Why, How by Allan Kelly
The 90 minute Guide to Agile – What, Why, How by Allan KellyThe 90 minute Guide to Agile – What, Why, How by Allan Kelly
The 90 minute Guide to Agile – What, Why, How by Allan Kelly
 
Agile in 90minutes
Agile in 90minutesAgile in 90minutes
Agile in 90minutes
 
Startups
StartupsStartups
Startups
 
UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...
UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...
UEDA Summit 2012: Models for Student Entrepreneurship (Michalerya, Ochs & Jac...
 
Nico Perez + Founders Institute talk: Product & Services Development
Nico Perez + Founders Institute talk: Product & Services DevelopmentNico Perez + Founders Institute talk: Product & Services Development
Nico Perez + Founders Institute talk: Product & Services Development
 

More from Michael Skok

Turning Products Into Companies
Turning Products Into CompaniesTurning Products Into Companies
Turning Products Into CompaniesMichael Skok
 
Mastering Mutual Mentorship
Mastering Mutual MentorshipMastering Mutual Mentorship
Mastering Mutual MentorshipMichael Skok
 
Startup Secrets - Vision, Mission, Culture
Startup Secrets - Vision, Mission, CultureStartup Secrets - Vision, Mission, Culture
Startup Secrets - Vision, Mission, CultureMichael Skok
 
Startup Secrets - Mastering Mutual Mentorship
Startup Secrets - Mastering Mutual MentorshipStartup Secrets - Mastering Mutual Mentorship
Startup Secrets - Mastering Mutual MentorshipMichael Skok
 
Startup Secrets - Hiring A+ Talent
Startup Secrets - Hiring A+ TalentStartup Secrets - Hiring A+ Talent
Startup Secrets - Hiring A+ TalentMichael Skok
 
Startup Secrets - Funding Strategies to Go the Distance
Startup Secrets - Funding Strategies to Go the DistanceStartup Secrets - Funding Strategies to Go the Distance
Startup Secrets - Funding Strategies to Go the DistanceMichael Skok
 
Startup Secrets - Have you got what it takes?
Startup Secrets - Have you got what it takes?Startup Secrets - Have you got what it takes?
Startup Secrets - Have you got what it takes?Michael Skok
 
Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...
Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...
Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...Michael Skok
 
Customer Success: The Power of One
Customer Success: The Power of OneCustomer Success: The Power of One
Customer Success: The Power of OneMichael Skok
 
Re-evaluating growth...
Re-evaluating growth...Re-evaluating growth...
Re-evaluating growth...Michael Skok
 
3 Skills to Master the gift of Mutual Mentorship
3 Skills to Master the gift of Mutual Mentorship3 Skills to Master the gift of Mutual Mentorship
3 Skills to Master the gift of Mutual MentorshipMichael Skok
 
2014 Future of Cloud Computing - 4th Annual Survey Results
2014 Future of Cloud Computing - 4th Annual Survey Results2014 Future of Cloud Computing - 4th Annual Survey Results
2014 Future of Cloud Computing - 4th Annual Survey ResultsMichael Skok
 
2014 Future of Open Source - 8th Annual Survey results
2014 Future of Open Source - 8th Annual Survey results2014 Future of Open Source - 8th Annual Survey results
2014 Future of Open Source - 8th Annual Survey resultsMichael Skok
 
Andy Jassy Illuminates Amazon Web Services
Andy Jassy Illuminates Amazon Web ServicesAndy Jassy Illuminates Amazon Web Services
Andy Jassy Illuminates Amazon Web ServicesMichael Skok
 
Company Formation: Hiring
Company Formation: HiringCompany Formation: Hiring
Company Formation: HiringMichael Skok
 
Culture, Vision / Mission
Culture, Vision / MissionCulture, Vision / Mission
Culture, Vision / MissionMichael Skok
 
Value Proposition – Case – Disqus
Value Proposition – Case – DisqusValue Proposition – Case – Disqus
Value Proposition – Case – DisqusMichael Skok
 

More from Michael Skok (18)

Turning Products Into Companies
Turning Products Into CompaniesTurning Products Into Companies
Turning Products Into Companies
 
Mastering Mutual Mentorship
Mastering Mutual MentorshipMastering Mutual Mentorship
Mastering Mutual Mentorship
 
Startup Secrets - Vision, Mission, Culture
Startup Secrets - Vision, Mission, CultureStartup Secrets - Vision, Mission, Culture
Startup Secrets - Vision, Mission, Culture
 
Startup Secrets - Mastering Mutual Mentorship
Startup Secrets - Mastering Mutual MentorshipStartup Secrets - Mastering Mutual Mentorship
Startup Secrets - Mastering Mutual Mentorship
 
Startup Secrets - Hiring A+ Talent
Startup Secrets - Hiring A+ TalentStartup Secrets - Hiring A+ Talent
Startup Secrets - Hiring A+ Talent
 
Startup Secrets - Funding Strategies to Go the Distance
Startup Secrets - Funding Strategies to Go the DistanceStartup Secrets - Funding Strategies to Go the Distance
Startup Secrets - Funding Strategies to Go the Distance
 
Startup Secrets - Have you got what it takes?
Startup Secrets - Have you got what it takes?Startup Secrets - Have you got what it takes?
Startup Secrets - Have you got what it takes?
 
Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...
Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...
Funding Strategies to go the Distance – Case – Endeca: By Steve Papa, founder...
 
Customer Success: The Power of One
Customer Success: The Power of OneCustomer Success: The Power of One
Customer Success: The Power of One
 
Re-evaluating growth...
Re-evaluating growth...Re-evaluating growth...
Re-evaluating growth...
 
3 Skills to Master the gift of Mutual Mentorship
3 Skills to Master the gift of Mutual Mentorship3 Skills to Master the gift of Mutual Mentorship
3 Skills to Master the gift of Mutual Mentorship
 
2014 Future of Cloud Computing - 4th Annual Survey Results
2014 Future of Cloud Computing - 4th Annual Survey Results2014 Future of Cloud Computing - 4th Annual Survey Results
2014 Future of Cloud Computing - 4th Annual Survey Results
 
2014 Future of Open Source - 8th Annual Survey results
2014 Future of Open Source - 8th Annual Survey results2014 Future of Open Source - 8th Annual Survey results
2014 Future of Open Source - 8th Annual Survey results
 
Andy Jassy Illuminates Amazon Web Services
Andy Jassy Illuminates Amazon Web ServicesAndy Jassy Illuminates Amazon Web Services
Andy Jassy Illuminates Amazon Web Services
 
Company Formation: Hiring
Company Formation: HiringCompany Formation: Hiring
Company Formation: Hiring
 
Culture, Vision / Mission
Culture, Vision / MissionCulture, Vision / Mission
Culture, Vision / Mission
 
Value Proposition – Case – Disqus
Value Proposition – Case – DisqusValue Proposition – Case – Disqus
Value Proposition – Case – Disqus
 
How I Hire
How I HireHow I Hire
How I Hire
 

Recently uploaded

PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 

Recently uploaded (20)

PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 

Startup Secrets: Wrap Up & Geoffrey Moore - An Insider’s Guide

  • 1. Startup Secrets Wrap Up & Geoffrey Moore An insider’s guide to unfair competitive advantage Michael J. Skok North Bridge Venture Partners Twitter: @mjskok www.mjskok.com Michael Skok
  • 2. Agenda • Welcome • Highlights  Emphasis on formation, go to market • Awards • Acknowledgements & thank yous • Geoffrey Moore Michael Skok 2
  • 3. Startup Secrets - Agenda • Feb 1: Value Proposition • Feb 22: Company Formation • Mar 7: Business Model • Mar 29: Go-To-Market Strategy • Apr 18: Pitch Session • May 17: Geoffrey Moore Michael Skok 3
  • 4. Agenda Problem Value Solution Gain Pain Prop Ideas Define Evaluate Build Michael Skok Michael Skok 4
  • 5. Qualify the problem – Is it “blac” & white? Blatant Blatant Blatant Critical Latent Aspirational Critical Latent Aspirational Critical Michael Skok 5
  • 6. Problem Problems worth solving are usually 4U … • Unworkable • Unavoidable • Urgent • Underserved Michael Skok 6
  • 7. Solution • Discontinuous innovation • Defensible technology • Disruptive business model Michael Skok 7
  • 8. Gain/Pain ratio • Revenue • Inertia • Find (See) • Cost savings • Switching costs? • Try • Time • Default = do nothing • Buy • People • Alternatives? • Implement • Competitive advantage • Good enough = • Deploy • Reputation good enough! • Own – eg TCO • Etc.. • RISK on a startup Pain Inertia, RISK Gain >10 Michael Skok 8
  • 9. Example - Apperian  Increase revenue by 40% at counters  Roll out 17,000iPads  Deliver worldwide no IT touch required  Saved $2.5M+ in direct IT costs Michael Skok
  • 11. Startup Secrets - Agenda • Feb 1: Value Proposition • Feb 22: Company Formation • Mar 7: Business Model • Mar 29: Go-To-Market Strategy • Apr 18: Pitch Session • May 17: Geoffrey Moore Michael Skok 11
  • 12. Company Formation: Agenda • Vision • Culture • People  Hiring • Team • WORKSHOP: Hiring and forming a team Michael Skok Michael Skok 12
  • 13. Building an enduring company: Vision (Market) Execution Listen (GOSPA) Learn Lead People, Team Iterate Pivot Value Proposition Enduring Startup Cultural Consistency Michael Skok Company Michael Skok 13
  • 14. Learn from the best? • FORTUNE Tech top 5 100 Best Company  Google List consistently outperform major  SAS Institute stock indices by  NetApp  Zappos 300%  DreamWorks Michael Skok Michael Skok 14
  • 15. Hiring: Startup Secret The 3As and the 3+s Aptitude Ability Attitude + Authentic + Awareness (self) Michael Skok +… PLUS (People Like US = Fit) Michael Skok 15
  • 16. Select ALL your stakeholders See Video on Next Slide >> Michael Skok 16
  • 17. My first interview question? What are youpassionate about? Michael Skok Michael Skok 17
  • 18. Acquia “One of the hottest companies on the planet” - VentureBeat Michael Skok Michael Skok 18
  • 19. Acquia – learning culture See Video on Next Slide >> “One of the hottest companies on the planet” - VentureBeat Michael Skok Michael Skok 19
  • 20. Startup Secrets - Agenda • Feb 1: Value Proposition • Feb 22: Company Formation • Mar 7: Business Model • Mar 29: Go-To-Market Strategy • Apr 18: Mock Pitch Session • May 17: Geoffrey Moore Michael Skok 20
  • 21. Agenda 1. Finding a Disruptive Business Model 2. Focusing on CORE differentiation 3. Multipliers and Levers to optimize it 4. Measuring your customer lifecycle value & cost • WORKSHOP Other side of the coin – GTM – next session - Eg Segmentation, Channels etc Michael Skok 21
  • 22. Perfect Startup Storm Breakthrough Business Model New Market Disruptive Opportunity / Technology Segment Michael Skok 22
  • 23. Capturing your value? • Where is your CORE value? • Software/other technology • Data • Content CORE • Service, support • User network • How will you monetize it  To your competitive advantage ?  Where are others most vulnerable? Michael Skok 23
  • 24. Examples: From my early experience: • Symantec ~20 years ago (!)  Symantec Antivirus for Mac (SAM) • Best seller – Licensed Product  Norton Antivirus for PC (NAV) • How to change the game? • Best seller – Subscription Service Michael Skok 24
  • 25. Startup Secret: Multipliers and Levers Multiply and Leverage your CORE Multipliers: Levers: • Increase revenue • Reduce time • Increase reach • Reduce costs • Increase coverage Multipliers • Reduce resources Levers CORE Michael Skok 25
  • 26. Strategic Partnership • EG: “Whole Product” Strategic Partnership Multipliers: Levers: • Increase revenue • Reduce time to through fuller market services Multipliers solution • Reduced dev costs Levers Application • Increase CORE reachthrough their Database Storage sales force, channel etc. • Credibility Integrate your CORE into Michael Skok their technology stack 26
  • 27. Russian Doll Packaging Gives you and your customers: • Digestible starting point • Upsell Options • Channel Flexibility … and more One of my favorite personal adages: “Addiction before Adoption” Michael Skok 27
  • 28. Strategic Friction Free, SLIPPERY Products Tactical Simple Low to no initial cost Installs easily Proves value quickly Plays well with others ( WHOLE product ) Easy to use ROI is obvious Y customers can’t live without it Michael Skok 28
  • 29. Strategic Demandware case study Tactical • WHOLE product – fulfills Value Prop  LINK program • Creates whole product • Extends whole product to broader solution • Reduces cost of integration • Reduces time to deploy Michael Skok 29
  • 30. LINK Technology Partners Outcome: Ease of Innovating Through New Technologies LINK Technology Partners • Extensive library of pre- built integrations between leading third-party ® technologies and LINK Technology Partners Demandware Commerce Benefits to Retailers / Brands • Accelerated Revenue Growth • Rapid Access to Applications • Reduced Implementation Costs • Early Visibility into Emerging Technologies Michael Skok 30
  • 31. LINK Technology Partners Outcome: Ease of Innovating Through New Technologies LINK Technology Partners • Extensive library of pre- built integrations between leading third-party ® technologies and LINK Technology Partners Demandware Commerce Benefits to Retailers / Brands • Accelerated Revenue Growth • Rapid Access to Applications • Reduced Implementation Costs • Early Visibility into Emerging See Video on Next Slide >> Technologies Michael Skok 31
  • 32. Unfair competitive advantage… • Disruptive innovation Yet.. • NON disruptive adoption Michael Skok Michael Skok 32
  • 33. Example - Akiban • 10x -> 100x performance improvement • NO change to applications • NO risk deployment (replicated data) • Customers Gain/Pain ratio = 10 to 100  Case study: • Doubling revenue with Akiban • Unworkable alternatives – rewrite and lose revenue, with unsure outcome Michael Skok Michael Skok 33
  • 34. The Refined Model • Cost of Acquiring &Re-Engaging Customer (CARC) • Lifecycle Value of Customer (LCV) Multipliers Up- Re- Levers sell CORE Trial Michael Skok 34
  • 35. Startup Secrets - Agenda • Feb 1: Value Proposition • Feb 22: Company Formation • Mar 7: Business Model • Mar 29: Go-To-Market Strategy • Apr 18: Pitch Session • May 17: Geoffrey Moore Michael Skok 35
  • 36. A Startup GTM - Agenda Marketing & Strategies Sales Cycle / Tactics Channel Audience Awareness Brand Direct vs. Targeting, Channel Segmentation Positioning Interest OUTbound / INboound Messaging Channel Personas Understanding Development, Social Management, Actors/Scenes Media Etc. Engagement PR Trial Strategic Services Partners Purchase References • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement Michael Skok 36
  • 37. Identity Name system Brand Essence Every Touch Product Point Michael Skok
  • 38. Identity Name system Brand See Video on Next Slide >> Essence Every Touch Product Point Michael Skok
  • 39. Positioning 2x2 Strategic Whatever sets you up… for a unique white space Tactical Define real BARRIERS to Entry into each segment High {whitespace} a c The choice of axes is critical b Bubble sizing for relative size of competitors d Low Low High Michael Skok 39
  • 40. Targeting, Segmentation: Strategic Example, seeking Critical Need Tactical Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales Medical vs. Office Equipment Equipment Hospitals vs. Medical Clinics Critical Care vs. Diagnostics Michael Skok 40
  • 41. Startup Secret Strategic - don’t be afraid to FOCUS! Tactical • Narrow as possible to start!  Think Beachhead (Geoffrey Moore) • Which would you rather…  Expand on success?  Contract on failure? • Demandware case study… Michael Skok 41
  • 42. Eating the Orange Segment At a Time Segmentation Guidelines • “Get Small, Get Big or Get Out” • Small enough to be actionable, big enough to be meaningful • Can you on Next Slide >> See Videodeliver with distinction (and margin)? • If you succeed, will other customers care? 42 Copyright 2008 Demandware, Inc. - Confidential
  • 43. Startup Secret: Customer Strategic “Actors” Change Through “Scenes” Tactical Awareness Customer “Actors” Actors Interest • Visionary Segment • Technocrat Understanding “SCENES” • Operator Target Engagement • Influencer • Economic buyer Trial Underserved, • Decision maker Uniquely valued Purchase Michael Skok 43
  • 44. “Driving” Startup Strategic Marketing & Sales Tactical You Customer Control Controls Neutral Accelerator / Brake /Clutch Awareness GEARS to build Momentum Interest Understanding Engagement Trial Purchase Overdrive Michael Skok 44
  • 45. Startup Secret: Strategic Closed Loop, Web Tactical Awareness $,Time, Resources Conversion rate % Interest Understanding Closed Loop Engagement via Web Trial ULTIMATELY: $,Time, Resources Purchase Conversion rate % Michael Skok 46
  • 46. Ex: Unidesk Early Marketing Phase: Requirements Phase: Pre-Launch Phase: Launch Tool: Web Survey Tool: Blog, Twitter, Google Analytics Tool: Blogger PR (new media) Goal: Build right product Goal: Awareness Goal: Interest Key: Founder appeal Key: Compelling content/personality Key: Unique, differentiated position Measure Everything: Weekly KPI Spreadsheet D e a r Re a d e r, I re c e n t ly s t a rt e d a n e w s o ft w a re c o mp a n y fo c u s e d o n v irt u a l d e s kt o p ma n a g e me n t . It 's c a lle d U n id e s k, a n d it 's b a c ke d b y M a t rix a n d N o rt h Brid g e , t w o o f t h e b ig g e s t n a me s in h ig h -t e c h v e n t u re c a p it a l. O u r g o a l is t o h e lp IT d ra ma t ic a lly imp ro v e t h e w a y d e s kt o p s , la p t o p s , a n d o t h e r P C c lie n t s a re ma n a g e d . P l u s , you wi l l : I'm o ffe rin g y o u a fre e $20 g ift c a rd re d e e ma b le a t a n y re t a il s t o re t h a t a c c e p t s M a s t e rCa rd if y o u 'll re s p o n d t o a s u rv e y a n d s h a re y o u r d e s kt o p Re c e iv e a fre e $20 g ift c a rd ma n a g e me n t e xp e rie n c e s . I'm n o t lo o kin g t o s e ll y o u a n y t h in g . I'd ju s t like re d e e ma b le a t a n y re t a il s t o re y o u t o t a ke a fe w min u t e s a n d a n s w e r s o me q u e s t io n s s o my t e a m c a n b e t t e r t h a t a c c e p t s M a s t e rCa rd ™ u n d e rs t a n d y o u r d e s kt o p a d min is t ra t io n c h a lle n g e s a n d d e liv e r t e c h n o lo g y t h a t b e s t me e t s y o u r n e e d s . Be e n t e re d in a d ra w in g t o T o c o mp le t e t h e b rie f s u rv e y , v is it Virt u a l D e s kt o p S u rv e y . re c e iv e a fre e A p p le iP o d ™ T o u c h M e d ia P la y e r w it h W iF i T h a n k y o u fo r h e lp in g t o in flu e n c e t h e n e xt g e n e ra t io n o f d e s kt o p ma n a g e me n t s o ft w a re . Ge t t h e c h a n c e t o jo in o t h e r IT p ro fe s s io n a ls a s p a rt o f a n in flu e n t ia l c u s t o me r a d v is o ry b o a rd Ch ris M id g le y CT O a n d F o u n d e r, U n id e s k Co rp C o p y ri g h t © 2 0 0 8 U n i d es k C o rp o rat i o n • 1 9 0 0 W es t P ark D ri v e • S u i t e 2 8 0 • W es t b o ro u g h • M A • 5 0 8 . 9 8 3 . 1 4 1 1 If y o u d o n o t w i s h t o recei v e fu t u re m ai l i n g s fro m U n i d es k . P l eas e em ai l U n s u b s cri b e t o u n s u b s cri b e@ u n i d es k . co m Phase: Build pipeline Phase: Customer acquisition Phase: Production customers Tool: Video, YouTube Tool: Webinars Tool: Forums Goal: Understanding Goal: Engagement, Trial Goal: Purchase, Repeat Purchase Key: Evangelist, crisp script Key: Passionate customers Key: Passionate, active customers Michael Skok 47
  • 47. Ex: Unidesk Early Marketing Phase: Requirements Phase: Pre-Launch Phase: Launch Tool: Web Survey Tool: Blog, Twitter, Google Analytics Tool: Blogger PR (new media) Goal: Build right product Goal: Awareness Goal: Interest Key: Founder appeal Key: Compelling content/personality Key: Unique, differentiated position Measure Everything: Weekly KPI Spreadsheet D e a r Re a d e r, I re c e n t ly s t a rt e d a n e w s o ft w a re c o mp a n y fo c u s e d o n v irt u a l d e s kt o p ma n a g e me n t . It 's c a lle d U n id e s k, a n d it 's b a c ke d b y M a t rix a n d N o rt h Brid g e , t w o o f t h e b ig g e s t n a me s in h ig h -t e c h v e n t u re c a p it a l. O u r g o a l is t o h e lp IT d ra ma t ic a lly imp ro v e t h e w a y d e s kt o p s , la p t o p s , a n d o t h e r P C c lie n t s a re ma n a g e d . P l u s , you wi l l : I'm o ffe rin g y o u a fre e $20 g ift c a rd re d e e ma b le a t a n y re t a il s t o re t h a t a c c e p t s M a s t e rCa rd if y o u 'll re s p o n d t o a s u rv e y a n d s h a re y o u r d e s kt o p Re c e iv e a fre e $20 g ift c a rd ma n a g e me n t e xp e rie n c e s . I'm n o t lo o kin g t o s e ll y o u a n y t h in g . I'd ju s t like re d e e ma b le a t a n y re t a il s t o re y o u t o t a ke a fe w min u t e s a n d a n s w e r s o me q u e s t io n s s o my t e a m c a n b e t t e r t h a t a c c e p t s M a s t e rCa rd ™ u n d e rs t a n d y o u r d e s kt o p a d min is t ra t io n c h a lle n g e s a n d d e liv e r t e c h n o lo g y t h a t b e s t me e t s y o u r n e e d s . Be e n t e re d in a d ra w in g t o T o c o mp le t e t h e b rie f s u rv e y , v is it Virt u a l D e s kt o p S u rv e y . re c e iv e a fre e A p p le iP o d ™ T o u c h M e d ia P la y e r w it h W iF i T h a n k y o u fo r h e lp in g t o in flu e n c e t h e n e xt g e n e ra t io n o f d e s kt o p ma n a g e me n t s o ft w a re . Ge t t h e c h a n c e t o jo in o t h e r IT p ro fe s s io n a ls a s p a rt o f a n in flu e n t ia l c u s t o me r a d v is o ry b o a rd Ch ris M id g le y CT O a n d F o u n d e r, U n id e s k Co rp C o p y ri g h t © 2 0 0 8 U n i d es k C o rp o rat i o n • 1 9 0 0 W es t P ark D ri v e • S u i t e 2 8 0 • W es t b o ro u g h • M A • 5 0 8 . 9 8 3 . 1 4 1 1 If y o u d o n o t w i s h t o recei v e fu t u re m ai l i n g s fro m U n i d es k . P l eas e em ai l U n s u b s cri b e t o u n s u b s cri b e@ u n i d es k . co m Phase: Build pipeline Phase: Customer acquisition Phase: Production customers Tool: Video, YouTube Tool: Webinars Tool: Forums Goal: Understanding Goal: Engagement, Trial Goal: Purchase, Repeat Purchase Key: Evangelist, crisp script Key: Passionate customers Key: Passionate, active customers See Video on Next Slide >> Michael Skok 48
  • 48. Remember, ROME wasn’t built in a Day Nor will your GTM strategy and tactics be Listen  R esults Learn  O riented GTM Lead Business Iterate  M arketing Model Pivot  E xecution Product Proposition  D riven through iteration • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement Michael Skok 49
  • 49. Ex: Unidesk See Video on Next Slide >> Michael Skok 50
  • 50. Startup Secrets - Agenda • Feb 1: Value Proposition • Feb 22: Company Formation • Mar 7: Business Model • Mar 29: Go-To-Market Strategy • Apr 18: Pitch Session • May 17: Geoffrey Moore Michael Skok 51
  • 52. Case Studies • Acquia • Apperian • Akiban • Demandware • Unidesk • Active Endpoints • MC10 Michael Skok 53
  • 53. Mentors and coaches • Adam Berrey • Steve Skidmore • Brent Kleiman • David McFarlane • Jim Moran • Carmichael Roberts • Carlos Montero Luque Michael Skok 54
  • 54. Judges • Don Bulens  CEO Unidesk • Tom Ebling  CEO Demandware • Brent Kleiman  Entrepreneur • Jeff McCarthy  GP, North Bridge • David McFarlane  Co-founder, CEO Akiban Michael Skok 56
  • 55. Congratulations to… • Sarah Cullem • Regina Joice • Eric Kelsic • Ahmed Samir Mady • Katharine Wolf & Cecilia Chen Michael Skok 57
  • 56. Build around - YOU... • What problems do you understand uniquely well? • What solution can you deliver uniquely well? • What kind of disruptive business model can you bring? Michael Skok 58
  • 62. Thank YOU… Follow up online Email • All who mjskok@northbridge.com participated Web mjskok.com Twitter @mjskok • Harvard iLab  Jodi Goldstein SlideShare /mjskok  Neil Doyle LinkedIn  Gordon Jones linkedin.com/in/mjskok Google+ bit.ly/mjskok-google YouTube bit.ly/mjskok-youtube Michael Skok 64
  • 63. Startup Secrets - Agenda • Feb 1: Value Proposition • Feb 22: Company Formation • Mar 7: Business Model • Mar 29: Go-To-Market Strategy • Apr 18: Pitch Session • May 17: Geoffrey Moore Michael Skok 65
  • 64. Startup Secrets Wrap Up & Geoffrey Moore An insider’s guide to unfair competitive advantage Michael J. Skok North Bridge Venture Partners Twitter: @mjskok www.mjskok.com Michael Skok
  • 65. Escape Velocity Free Your Company‟s Future from the Pull of the Past Harvard iLab May 17, 2012
  • 66. Introduction The Hierarchy of Powers 70
  • 67. The Hierarchy of Powers A Framework for Analyzing Business Strategy  Category Power Growth born from category expansion “Big Bang” growth creates a new earnings engine Company Power Growth born from competitive advantage Partners go out of their way to send you business Market Power Growth born from customer commitment Customers go out of their way to give you business  Offer Power Growth born from unmatchable offers Competitors cannot or will not copy your efforts  Execution Power Growth born from reaching tipping points Your initiatives become the next status quo 71
  • 68. Execution Power Transitioning to Scale Growth Born from Reaching Tipping Points 72
  • 69. The Arc of Execution Where in the Execution Life Cycle Are You? Deploy Invent Optimize 73
  • 70. Time to Tipping Point The Most Important Life Cycle Metric Deploy  Tipping Point Transition to Viable Scale Invent Optimize 74
  • 71. Why Tipping Points? • Adoption is social • People do what they see other people doing • This leads to two mirror-image phenomena • The Chasm: (I won‟t because you aren‟t) • The Tornado: (I must because you are) • Pre-tipping-point, no progress is sustainable • As soon as you withdraw the stimulus, the population returns to its prior state • Post-tipping point, there is no going back • Social dynamics institutionalize the change 75
  • 72. Tipping Point for B2B Markets The Technology Adoption Life Cycle MAIN STREET TORNADO EARLY MARKET BOWLING CHASM ALLEY 76
  • 73. Life-Cycle Metrics that Matter Tracking Performance Relative to the Chasm • Early Market • One or more flagship customers making big-bet commitments • In the Chasm • Cannot support yet another big-bet commitment • Pragmatists still holding back from entering the market • Taking the Beachhead • Nailed a high-pain use case • Getting strong word-of-mouth support within target segment • In the Bowling Alley • Additional use cases coming on board, viral in adjacent segments • Inside the Tornado • Horizontal “killer app” -- hyper-growth in the category • On Main Street • Hyper-growth subsides – pecking order established 77
  • 74. Tipping Point for B2C Markets on the Web The Four Gears VIRALITY ACQUISITION Starter Motor MONETIZATION ENGAGEMENT 78
  • 75. Four-Gears Metrics that Matter Tracking Performance Relative to the Tornado • Acquisition • Rate of gaining new users • Engagement • Average length, depth, and frequency of user engagement • Monetization • Percentage of total users that participate in business model • Virality(Positive Enlistment) • New customers coming from existing customers over time • Churn (Negative De-Enlistment) • Losing existing users • Lifetime Customer Value (ARPU/Churn) • Projected monetization returns by class of customer 79
  • 76. Offer Power Return on Innovation Growth Born from Unmatchable Offers 80
  • 77. Offer Power Getting a Return from Innovation Differentiation Neutralization Productivity 81
  • 78. Offer Power for Escape Velocity Three Mandates to Execute in Parallel Differentiation Separate from your competitive set Neutralization Keep up with evolving norms Productivity Convert waste into value 82
  • 79. Differentiate Differentiation Separate From Your Competitive Set * * Leverage your unmatchable Competitor 1 capability YOU * Competitor 2 to create an * Competitor 3 unmatchable offer Competitive Set 83
  • 80. Neutralize Neutralization Catch Up to Your Competition * Competitor 1 Neutralize a * Competitor 2 * competitor‟s differentiation * * Competitor 3 by reaching “good enough” quickly YOU Competitive Set 84
  • 81. The Difference Between the Two Differentiation Neutralization • Return on Differentiation • Beyond compare • Return on Neutralization • Good enough • Everything spent between the two • Waste! 85
  • 82. Innovating for Optimization Productivity Focus on Productivity YOU * Competitor 1 Optimize behind the scenes * Competitor 2 * * Competitor 3 to lower costs and free up scarce resources Competitive Set Price Deflation
  • 83. Three Innovation Playbooks Differentiation Neutralization Productivity Core Metric Separation Time to market Reclaimed resources Standard to Meet Unmatchable Good enough Best in class Test Question How far? How fast? How deep? These playbooks have conflicting goals Do not combine them 87
  • 84. No Return on Innovation How Established Enterprises Waste Their R&D Differentiation Neutralization Failed Attempts Optimization Waste Sources of Waste: • Differentiation projects that don’t go far enough • Neutralization projects that go too far and/or are too slow • Optimization projects that don’t free up mission-critical resources
  • 85. Category Power Portfolio Management Growth Born From Entering New Categories 89
  • 86. Category Maturity Life Cycle The A-B-C-D‟s of Portfolio Management Indefinitely elastic Utilize Acquire middle Power Divest Power Declining Power Revenue Growth A B C D Emerging Growth Mature Declining Fault Market Market Market Market Line! Catch (pre-Tornado) Next E Wave End of Life Technology Adoption Time Life Cycle 90
  • 87. How Are Your Categories Performing? A Portfolio Analysis Framework High Growth Low Growth Material Revenues PERFORMANCE B B C C A D A D Not Material POWER B C D A 91
  • 88. Typical Portfolio Pattern for a Public Company High Growth Low Growth Material 2 3 1 4 Not Material What is the first question the board asks? Why don’t we have more businesses in Quadrant 2? 92
  • 89. Three Investment Horizons Where Category Power Initiatives Gets Stuck Do well here too Break-Out Categories On-board next generation for Horizon 3 future growth ROI in 36 to 72 mos Current Categories Future Category Meet Horizon 2 Options Performance ROI in 12 to 36 mos Commitments Develop options for future Sticking point growth Horizon 1 ROI in 0 to 12 mos Do well here 93
  • 90. Portfolio Dynamics Horizons Meets Life Cycles • Performance management focuses on winning material High Growth Low Growth revenues (Horizon 1) • H1 managers to hoard spare Horizon 1 resources to ensure they can Material meet their commitments Revenues • That crimps H2 efforts because they compete with H1 for the Horizon „0‟ Horizon 2 B C same resource pool A D • It also makes H1 managers reluctant to exit H0 businesses Not Material (because every little bit of revenue helps) • Horizon 3 is unaffected by any of these portfolio dynamics Horizon 3 94
  • 91. The Horizon 2 Challenge Crossing the Chasm Inside the Belly of a Whale • All the other horizons are OK • H1 gets first dibs at resources • H3 gets funded outboard of the process • H0 sneaks in under the covers • H2 is out in the cold • H2 competes directly with H1 for resources • H1, under pressure to meet current obligations, does not release resources willingly • H2 cannot compete with H1, particularly when metrics and compensation focus on material returns in the current year This is not a failure to invest in R&D innovation This is primarily a go-to-market problem 95
  • 92. Innovation Incubation Model It‟s Not a Funnel. It‟s an Hourglass! Horizon 3 Horizon 2 Horizon 1 96
  • 93. The Race to Material Revenues Rules of Thumb for Publicly Held Enterprises • 5% - 10% of Total Revenue = Revenue Materiality • This is the exit threshold from H2 to H1 • 0.5% - 1% of Total Revenue = On the Expense Radar • This is the entry threshold from H3 to H2 • Horizon 2 Journey • Grow one order of magnitude in 12 quarters • Be more than half way after 8 quarters • Else fold back into the base business and move on Horizon 2 is not a stable state Must race to get through, or die 97
  • 94. Meeting the Horizon 2 Challenge New Prescriptions in Five Key Areas 1. Number of H2 Initiatives • One at a time, regardless of size of your enterprise • No limit on number of H1 or H3 initiatives 2. Planning & Budgeting • Calendar for the 2nd quarter • Do not blend with annual planning and budgeting process 3. Organizational Structure • Independent BUs with direct control over all functions • Transition to functional organization at Horizon 1 4. Metrics • Tipping point metrics • Crossing the Chasm (B2B) or Four Gears (B2C) 5. Talent & Compensation • Major variable comp tied to Tipping Point success • Affects every executive equally 98
  • 95. Conclusion Putting the Previous in Context 99
  • 96. Escape Velocity is Hard to Create Understanding the Dynamics of the Status Quo • The innovator‟s dilemma • Established enterprises focus on their best customers, who want more of what they have, not something new. • The asymmetry of risk for successful companies • Breakout growth involves taking risk. The bigger you are, the less you have to win from taking risk, the more you have to lose • The pragmatics of annual planning in established enterprises • Next year‟s plan is normally based on last year‟s—which means legacy businesses get first dibs at the critical resources • The dynamics of contemporary financial markets • Short-term investors drive short-term compensation metrics— breakout growth always involves a J-curve 100
  • 97. Companies Who Could Not Escape Burroughs – Sperry Univac – Honeywell – Control Data MSA – McCormick & Dodge – Cullinet– Cincom – ADR– DEC– Data General – Wang -– Prime– Tandem – Daisy – Calma These were not badSilicon Graphics – Sun – – Valid – Apollo – companies Informix – Ingres – Nortel– Bay Networks – Lucent These were our best companies! – 3Com – Banyan – WordPerfect– Lotus – Ashton Tate – Borland– Novell – Atari – Osborne – Commodore – Casio – Palm – Sega – Netscape – MySpace – Kodak – Polaroid – Quest– America West – Nynex – Bell South 101
  • 98. Achieving Breakout Growth What Does It Take to Gain Escape Velocity? • Focus on Power before Performance • Power fuels performance • Performance converts power into returns • Focus on Leadership before Management • Leadership develops power • Management delivers performance • Focus on Tipping Points before ROI • Tipping points are binary state changes in power • Until state change is achieved, no other metrics matter 102