Exploring social innovation in the bay area, tim clark, march 18 2011

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  • 1. March 18, 2011 Prepared for VIA’s Exploring Social Innovation program San Francisco and Stanford University Tim Clark, Partner www.factpoint.com +1-650-233-1748 Copyright 2011 The FactPoint Group Exploring Social Innovation in the San Francisco Bay Area
  • 2. Agenda: Silicon Valley Goes Green and Social
    • What is Social Innovation?
    • VIA’s Ties to Social Innovators
    • The Recipe for Silicon Valley—including Stanford University
    • The PayPal Mafia: Networking and Mobile Entrepreneurs
    • Mixing models: How Silicon Valley goes Social
    • Trends in Silicon Valley
    • Is the Future Social?
    • Q&A
  • 3. FactPoint Background
    • Help high-tech clients identify and address market opportunities. Founded in 1992.
    • Custom research, not reports, focused on specific benefits (ROI/TCO)
    • Areas of focus: Cloud computing, open source software, security, cleantech, financial studies.
    • Asian clients: Hitachi, NTT Data, NTT Labs, NEC America
      • IBM Japan
      • Nomura Research
      • Hewlett-Packard Japan
      • Fujitsu Research
      • Ricoh
  • 4. What is Social Innovation?
    • Social enterprises
      • Microfinance
        • Kiva
        • Microplace/eBay
      • Social entrepreneurs
      • Social sector innovation
      • CleanTech/ Green business
      • Cooperatives
        • Buyers
        • Sellers (agriculture)
      • Social media
      • Facebook
      • MySpace
      • Twitter
      • Wikipedia
      • Yelp
      • Blogs and wikis
    • User Generated Content
      • Yes, free
      • But quality?
  • 5. Cloud computing: [Every thing]-as-a-Service
    • “ A style of
    • computing in which
    • dynamically scalable
    • and often virtualized
    • resources are
    • provided as a
    • service over the
    • Internet. Users need
    • not have knowledge
    • of, expertise in, or
    • control over the
    • Technology
    • infrastructure in the
    • "cloud" that supports
    • them.“
    • -- Wikipedia
    Source: Appirio, 2009
  • 6. VIA’s Social Innovator connections
    • Tom Lo (former board member)
    • Then
    • Now
    • MicroPlace (eBay company)
    • Invest wisely. End poverty.
    • Andy Cohen (former board member)
    • Tom Fricke (Indonesia, 1974)
  • 7. The recipe for Silicon Valley
    • Intellectual capital, initially from universities such as
    • Venture capital
      • 3000 Sand Hill Road, Menlo Park
      • Invest in start-ups, aiming for 10X returns
      • Cash out in IPOs or acquisitions (UC-Berkeley)
    • People: Innovative, talented risk-takers
      • Technical, marketing or business skills
  • 8. Companies with Stanford roots
    • Hewlett Packard—Bill Hewlett, David Packard (1939)
    • Cisco—Started with Stanford network (1984)
    • Netscape—Jim Clark (1994)
    • Yahoo!—Jerry Yang, David Filo (1994)
    • Google—Sergey Brin, Larry Page (1998)
  • 9. What does these people have in common?
    • Sergey Brin, Google co-founder
    • Jerry Yang, Yahoo co-founder (ex-CEO)
    • Andy Grove, Intel co-founder
    • Elon Musk, PayPal and Tesla co-founder
  • 10. Waves of innovation
    • The Internet wave—Netscape, Yahoo, Google (mid-1990s)
    • The dot.com bust (2000-2001)
    • The Web 2.0 wave / social media
    • Mobility wave: SmartPhones and iPad (tablets)
    • CleanTech
    • Social Innovation
  • 11. PayPal Mafia: Mobile people, personal networking
    • PayPal CEO/Founder Peter Thiel earned $68 million from eBay buyout. Invested in Facebook, LinkedIn, Yelp, IronPort
    • Engineers and web designer Chad Hurley, founded YouTube.
    • Elon Musk, forced out of PayPal after losing an internal fight, co-founded Tesla Motors and also founded private space exploration company SpaceX.
    • Engineer Russel Simmons and Jeremy Stoppelman, VP of Technology, founded Yelp in 2004.
    • Product manager Premal Shah became founding president of Kiva.org
    • EVP Reid Hoffman founded LinkedIn in 2002 and was an early investor in Friendster, Six Apart, Zynga, Flickr, Digg, IronPort, Nanosolar, Ning, Technorati , etc.
  • 12. Trends in Silicon Valley
    • Consolidation—big companies grow by buying smaller ones
    • Cloud computing—Software-as-a-Service (SaaS), On-demand
    • Open Source—Users get source code to software
    • Mobility—Beyond voice and data to mobile data
    • Green IT—Save the environment, save money
    • CleanTech—Electric cars, solar, energy conservation, etc.
  • 13. Open source’s appeal: It’s not only about cost
    • Cost counts, of course
    • For customers, access to code eases integration issues.
    • Some see code access as an insurance policy against their vendor going out of business.
    • Search for commercial open source business model fixated Valley in last 2-3 years.
  • 14. Mobile computing: Smartphones and iPads
    • Smartphones are booming
      • Apple iPhone—Most coveted
      • Google Android—Growing fastest
      • RIM Blackberry—Market leader for number in use
      • Palm—Relaunched by Hewlett-Packard for tablet too
    • Apple iPad
      • Boom in a category that has often failed before
      • Many copycats
    • Specialty devices
      • Amazon Kindle
  • 15. Green IT: Sprinkle a little Green on software
    • Web meetings: Adobe, Cisco Webex, GoToMeeting
    • Power management software: Cassatt --sold
    • Automated systems management: KACE --sold
    • Digitize paper processes: SpringCM on Accounts Payable
    • Telework: Secure remote access and workflow—SonicWALL, Adobe
    • How telecommuting
    • pleases workers…
    • More flexibility
    • Less stress
    • Work-life balance
    • Control of time
    • Lower commute costs
    • More time at home
    • … and employers too
    • Lower absenteeism
    • Higher productivity
    • Better job satisfaction
    • Higher retention rates
    • Lower training costs
    • Easier recruitment
    • SonicWALL, 2008
  • 16. Silicon Valley Goes Green and Social
  • 17. How Silicon Valley can go green and social
    • Software engineering talent
    • Venture capital financing
    • Entrepreneurial talent
    • Political/governmental savvy
    • Global market
  • 18. Barriers in Silicon Valley
    • High costs
    • Global competition—China in solar
    • Manufacturing issues
      • Labor costs
      • Supply chain
  • 19. Mixing Models: How Silicon Valley goes social
    • Hewlett, Packard and Moore Foundations
    • Google.org—is it CSR or philanthropic?
    • eBay co-founder Pierre Omidiyar, Omidiyar Foundation
    • Cypress Semiconductor, T.J. Rodgers, incubated and spun out SunPower, solar company
    • Applied Materials, Santa Clara, chip equipment to solar cells
    • eBay acquired MicroPlace (micro-finance)
    • VIA: Nonprofit runs for-profit operations in travel, typesetting
  • 20. Where the green companies are
    • Autos
    • Tesla Motors , Palo Alto, manufacturer of electric cars
    • Better Place , Palo Alto, recharging stations for electric cars
    • Energy efficiency
    • NovaTorque , Sunnyvale, efficient motors (ex-VIA founder)
    • People Power Co. , Palo Alto, open source software to manage energy use of appliances
    • Smart grid
    • eMeter , San Mateo, software for smart grid data
    • Silver Spring Networks , Redwood City, hardware and software for smart-grid networks
    • Trilliant , Redwood City, technology for smart-grid communication
  • 21. Ways to go Green
    • Energy generation
    • Bloom Energy , Sunnyvale, on-site power generation using fuel cells
    • Solar
    • Ausra , Mountain View, large-scale solar panels (acquired February 2010 by French nuclear company Areva)
    • Akeena , Los Gatos, installs solar panels
    • SolarCity , Foster City, installs solar panels
    • Solyndra , Fremont, manufactures solar panels
    • Green building materials
    • Serious Materials , Sunnyvale, energy-efficient drywall, windows,
    • Food materials
    • World Centric , Palo Alto, biodegradable containers, utensils
  • 22. Lessons from Silicon Valley
    • There is no stigma in failing. Instead, what did you learn?
    • Serial entrepreneurs are valuable—and pampered
    • It’s a small, small town—personal connections matter
    • With venture capital, you must build the business model and the technology to scale. Small is not beautiful.
    • Doing Well vs. Doing Good—Can they be the same?
    • Location matters:
      • Irish Innovation Center, San Jose: Danielle McCormick left Dublin a year ago to found myCubi.com . "If you want to create a global brand, you have to be in Silicon Valley."
      • VCs hate to travel—poor, poor Chicago
  • 23. How Stanford University fits in
    • Source for engineering talent
    • Source for business talent
    • Center for Design Research—design for extreme affordability
    • Center for Social Innovation
  • 24. Questions for ESI participants
    • Is failing in a social enterprise a negative?
    • Where do you find personal connections for social enterprises?
    • Must a social enterprise scale/grow large to be successful?
    • Can you do well while doing good?
    • What would you do after your first social enterprise success?
  • 25. Exploring Social Innovation
    • Thanks
    Tim Clark, Partner [email_address] +1 650-233-1748