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CORE slides for Venture Lab 2012 organized by Chuck Eesley

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Final presentation for Chuck Eesley's 'venture lab' Stanford online course on technology entrepreneurship.

The slides present a cloud based data analytics approach to organizational complexity reduction.

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CORE slides for Venture Lab 2012 organized by Chuck Eesley

  1. 1. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARY O RGANISATIONAL C OMPLEXITY R EDUCTION @ INTERSECTION OF CONSULTING AND LARGE SCALE DATA ANALYSIS August 28, 2012
  2. 2. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYP ROBLEM complicated processes not aligned with structures can kill productivity estimated complexity cost per employee: 20 − 40% (cf. market research) how to efficiently measure, align and manage complexity in organizations? Starting Point: organisation is a networked ’complex adaptive system’
  3. 3. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYS OLUTION : CO MPLEXITY RE DUCTION CORE assembles a customized set of algorithms analyze communication data align organization structures and processes with needs reduce mismatch, stress, inefficiencies manage and reduce complexity in modern organizations by analyzing communication processes, we suggest adaptions and help to align structure and processes
  4. 4. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYE XAMPLE C ASE Setting : You want to find out why your productivity decreases You know that departments tasks are communication intensive workload has increased some customers & employees have changed customers’ requirements have shifted repeatedly. Internal Project Team : Little succes due to Lack of time People have not dared to speak up you only find out what you already knew these are not the actual problems Weak Signals : You know that your colleagues talk about quitting after one key member has left to a competitor, another one has switched internally and your bosses have started to question your departments performance. You are getting nervous! VERY NERVOUS!
  5. 5. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYE XAMPLE C ASE : S OLUTION Silver Lining: You hear about CORE, the solution to analyze organisational complexity You decide to implement a testcase in your department. Email data is anonymized and exported to analyze communication patterns Approval of the worker’s council, which is concerned about privacy, but also health issues of your departments members is reached.
  6. 6. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYE XAMPLE C ASE : S OLUTION Analysis: The analysis shows that internal and external email communication increase after customer employees have changed. much higher communication load on customer facing team members. other members of the team are communicating a lot with each other in circles. Action: You cut away on internal processes that produce unnecessary communication and move freed workforce to help customer facing employees. Results: Team mood and productivity rise, newly developing unnecessary processes are identified early on and cost stay in check in the coming months.
  7. 7. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYE XAMPLE C ASE : R ESULT – C OMMUNICATIONN ETWORK Figure : Anonymized analysis of ENRON example dataset – subset of all emails
  8. 8. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYC ORE T ECHNOLOGY CORE Technology computes complexity indicators based on person-person communication network information originated in-and outside organisations Indicators show organisations how to optimize tzeir processes align process and structures reduce complexity improve performance in terms of speed, flexibility , integraion and innovation
  9. 9. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYC ORE T ECHNOLOGY AND P ROCESS
  10. 10. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYM ARKET R ESEARCH our survey results indicate yearly complexity cost of 20 − 40% of total employee cost estimated total market size for Europe: 2 bn Euro p.a. target group: more than 43.000 medium sized enterprises in EU with 250+ employees, estimated useful minimum size: 100+ employees Gartner’s Analytic Applications and Performance Management category: 1.4 bn USD revenue, 8 − 15% CAGR
  11. 11. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYC OMPETITION AND UNIQUE C HARACTERISTIC competition: fragmented academic and small consultants large person-hour focused consulting companies data analytics software providers business performance software providers no integrated, semi-automated, data analytics, domain know-how based approach This is where CORE steps in.
  12. 12. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYS TRATEGY Incremental approach in design / prototype phase: feedback from market start with SaaS based email analysis for medium sized companies in local markets build team form partnerships with consultants and academia as multiplicators and sales channel Scale up and Long term perspective: increasingly larger enterprises extend to ERP data based analysis of processes extend to IT complexity reduction
  13. 13. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYM ILESTONES / I NVESTMENT Investment characteristics incremental learning: assumes bootstrapping at beginning, angel / VC investments later further development required: 6 months, after that ongoing development first sales: year 1 building sales: year 2 positive cash flow in year 3 profitable in year 4 sales of 2.5 Mio e in year 5 Investment, staged: 1.5 Mio e for development, initial growth phase core software development team build up of sales team and customer base partnerships / channel sales
  14. 14. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYS OFTWARE D EVELOPMENT Status: protoype analysis and visualization based on 423mb, 300k emails ENRON data set, standard SNA algorithms next: alignment with orga structure Software Development Approach: internal core R&D team to develop and prototype outsourced high performance implementation SaaS platform, integration software, data extraction software (low value code) outsourced to cost efficient supplier deploy platform in cloud & grow along revenues use open source tools to reduce capital expenditure personal data issues managed per country, current prototype is based on strict European regulations
  15. 15. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYC URRENT CORE T EAM mainly European multidisciplinary team with experience in network theory, social networking, corporate organisation and enterprise needs met on Venture Lab based on passion for algorithmic data analytics solution to complexity problem Carl Henning Reschke, Consultant & Innovator (GER) Sven Stodtmann, Ph.D. Student (GER) ` Francesco Collova, Innovator, Global Architecture Expert (IT) Roger Sen, Enterprise Application Expert (ESP) Mentor: Benson Yeung, IT architecture and systems integrator (USA) Input from informal advisors from VL and RL
  16. 16. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYS UMMARY complicated, interrelated processes not aligned with structures and incentives kill productivity estimated cost of complexity 20 − 40% estimated market size Europe alone: 2 bn e p.a. cloud based data analytics for organizational alignment and complexity reduction achieved prototype analysis of example ENRON email data set incremental development, initially organic growth strategy followed by expansion
  17. 17. T HE P ROBLEM E XAMPLE C ASE C ORE T ECHNOLOGY M ARKET R ESEARCH S TRATEGY T EAM S UMMARYC ONTACT & L INKS Team http://www.venture-lab.org/teams/5693 Web http://www.coredux.appspot.com Youtube http://www.youtu.be/bQBTuG0g3AU Survey http://www.surveymonkey.com/s/QDLYVNT

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