Talk to MS students at the Lviv School of Business, UCU, Lviv, Ukraine, October 16 2016. Speaker: Burton Lee, Stanford Engineering School. Host: Dean Sophia Opatska. Website: www.StanfordEuropreneurs.org Twitter: @Europreneurs

1. Lessons
from
Silicon
Valley:
Growth
Hacking,
Product
Design,
Design
Thinking,
Company
Culture
and
InnovaCon
Lviv
Business
School
@
UCU
(LvBS)
MS
in
Innova7ons
&
Entrepreneurship
Program
Dr.
Burton
Lee
PhD
MBA
European
Entrepreneurship
&
Innova1on
Stanford
Engineering
School,
Silicon
Valley,
CA
www.StanfordEuropreneurs.org
|
@Europreneurs
Lviv,
Ukraine
Oct
16
2015

2. Key
Lessons
from
Silicon
Valley
• ‘Growth
Hacking’
– The
new
Sales
&
Marke1ng
– Lessons
for
Tradi1onal
Firms
• Product
Design
and
Product
Management
– ‘Design
Thinking’
as
a
Strategy
Tool
• Company
Culture
– Innova1on
– Ethics
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

3.
Importance
of
Great
Product
Design
for
Building
Successful
Companies…

4.
…
and
Reducing
Failures
Thru
‘Premature
Scaling’

5. Product
Quality
End-­‐to-­‐End
Customer
Experience

6. ABOUT
THE SPEAKER
DR. BURTON LEE PHD MBA
STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES
BURTON.LEE@INNOVARIUM.NET
WWW.STANFORDEUROPRENEURS.ORG
@EUROPRENEURS

7. Map
of
Presen7ng
Speaker
Na7onali7es
European
Entrepreneurship
&
Innova7on
@
Stanford
Engineering
(ME421)
Winter
2015
–
Year
Seven
Enterprise
Estonia
Silicon
Valley
Ghent,
Flanders
Region
Belgium
iMinds
ICT
Research
Ins7tute

8. hUp://www.europeanentrepreneursatstanford.com
|
hUp://me421.stanford.edu
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

9. February 10 @ Stanford Engineering
Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR)
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

10. Observa7ons
from
Ukraine
&
Europe
• Visits
to
leading
UA
ICT
companies
(Prom.UA,
playtech),
KPI,
KMBS,
LvBS
• 7
years
working
in
Europe
with
tech
startups,
corpora1ons,
investors,
universi1es,
engineering
and
business
professors
&
schools,
governments
and
the
European
Commission
– Poland,
Estonia,
Latvia,
Lithuania,
Bulgaria,
Croa1a,
Slovakia,
Hungary,
Belarus,
Russia
– Collabora1ons
with
European
universi1es
in
Ireland,
Finland,
France,
Germany
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

11. Lessons from Silicon Valley
User Growth
and
‘Growth Hacking’
1

12. Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Exponen7al
User
Growth
and
Market
Disrup7on

14. Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

16. ‘User
Growth’
Now
Takes
Central
Place
in
Strategy
• No
more
‘VP
of
Sales
&
Marke1ng’
at
high-­‐
growth
startups
• Major
shib
to
‘VP
of
Growth’
at
best
tech
firms
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

17. Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

18. Growth
Hacking
• Marriage
of
these
competencies,
func1ons
and
approaches:
– Product
design
&
customer
experience
• User
interfaces,
customer
engagement,
product
architecture
– Web
&
data
analy1cs
• Real-­‐1me
analysis
of
customer
behavior/preferences
– Tradi1onal
Marke1ng
&
Sales
– Rapid
itera1on
• Agile
&
lean
development,
pivots
Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

22. Oct
16
2015
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H.
Lee
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23. Copyright
Burton
H.
Lee
&
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Ventures
2015

24. Oct
16
2015

25. Lessons from Silicon Valley
Product Design
&
‘Design Thinking’
2

26. Oct
16
2015
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Burton
H.
Lee
&
Innovarium
Ventures
2015
Source:
Steve
Blank,
2012

27. Android
&
iPhone
“Disrup(ve
Innova(on”
via
New
Business
Models
+
Advanced
Product
Design
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Smart
Phone
“Company-­‐Busters”
New
Products
and
Services
for
Global
Markets
Oct
16
2015

28.
Importance
of
Great
Product
Design
for
Building
Successful
Companies…

29. European
Startup
Teams
O_en
Miss
These
Key
Ac7vi7es
• Develop
too
few
product/service
concepts
– Have
just
1-­‐2
ideas
• Too
few
interac1ons
with
real
users/customers
– 2-­‐3
discussions
vs
mee1ng/observing
00’s
– Don’t
make
serious
effort
to
go
into
market,
understand
customers
and
the
market
– Develop
liUle
sense
of
market
segments:
high,
middle,
low
• Build
insufficient
prototypes
– 1
or
2
vs
10
vs
500
• Test
prototypes
with
too
few
real
users
• Start
with
the
Wrong
Ques1ons
About
User
Needs
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

30. A
‘Lean
Startup’
Approach
to
Early
Stage
Entrepreneurship
Educa1on
Product-­‐Market
Fit
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

31. Using
‘Design Thinking’
Seeking Product-Market Fit
How Can We Increase
New Product Success Rates
at Ukrainian Companies ??

33. Direct
Engagement
with
Real
Users

34. Design
Thinking
Exercise
Re-­‐designing
the
21st
Century
Shopping
Cart

35. IDEO
Shopping
Cart
Project

36. Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Sketching
New
Ideas
Possible
Product
Features
and
Architectures

37. How
Would
You
Redesign
The
Shopping
Cart
for
Modern
Shoppers
in
Ukraine?

38. Apr
20
2015
Copyright
2015
Burton
H.
Lee
and
Innovarium
Ventures
|
Silicon
Valley
38
‘So_
Prototyping’

39. Sob
Prototyping
Materials
&
Tools
• Paper
• Cardboard
• Plas1c
• Wooden
s1cks
• Post-­‐it
Notes
• Cloth
• Sketches
• Scissors
• Tape
• Glue
• Staplers
• Markers
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

40. Observe
Real
Customers
&
Customer
Behavior
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

42. 42
Record
Real
Customers
&
Customer
Behavior

45. Storytelling
Tools
Communica(on
Methods
with
Users
and
Product
Team
• Role
playing
(ac1ng)
• Storyboarding
• Ar1fact
crea1on
• Use
case
analysis
• Improvisa1on
(ac1ng)
• PPT
presenta1on
• Architecture
&
ecosystem
diagrams
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

46. 46
One
Design
Team’s
Solu7on
for
21st
Century
Shoppers

47. Actual
Product
Design
Process
(generally
not
linear
for
new
products
and
untested
markets)
Search
for
Product-­‐Market
Fit
47

48. What
is
Different
About
‘Design
Thinking’?
• Avoids
‘Hard
Engineering’
ac1vi1es,
expenditures
and
commitments
for
as
long
as
Possible
• Combines
many
‘hard’
&
‘sob’
disciplines:
– Sociology
Design
– Psychology
Art
&
Drawing
– Anthropology
– Human
Factors
– HandiCrabs
&
Making
Things
– Business
– Engineering
&
Architecture
• Searches
for
disrup(ve
and
new
crea1ve
approaches
to
solving
societal
problems
and
marketplace
gaps
• Focuses
on
finding
and
‘asking
the
right
ques1ons’
Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

49. Storytelling
Goals
for
Companies
• What
is
the
problem?
• Who
is
the
end
user?
• How
does
your
product/service
help
to
solve
the
problem?
• How
did
you
arrive
at
your
tenta1ve
solu1on?
• How
would
you
test
this
further
in
the
marketplace?
Oct
16
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015

50.
Product
Design
Is
*Not*
the
Same
as
‘Engineering
Design’

51. Key
DT
Methodologies
&
Skills
• Idea1on
• Needs
Finding
&
Empathizing
• Ques1on
Asking
|
Listening
|
Watching
• Assump1ons
Challenging
• Storytelling
• Sob
Prototyping
• Itera1on
• User
Context
Seeking
Oct
16
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015

52. The
Essence
of
‘Design
Thinking’

53. Lessons from Silicon Valley
Company
Innovation Culture
by ‘Accident’ or by ‘Design’ ?
3

54. Stock
Op7ons
for
Startup
Employees
Necessary
But
Not
Sufficient

55. Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

56. Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

57. Company
Culture
is
Now
Used
as
a
Key
Element
of
Strategic
Advantage
vs
CompeCtors

59. Company
‘Innova7on
Culture’
Silicon
Valley
Milestones
1950s-­‐60s-­‐70s
1980s-­‐90s-­‐2000s
1990s-­‐2000s-­‐2010s
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

60. 1960
Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

61. The
HP
Way
Founda(ons
for
Corporate
Innova(on
Culture
• A
radical
and
contrarian
approach
to
organizing
&
running
large
companies
in
1949
– “HP
rejected
the
idea
that
a
company
exists
merely
to
maximize
profits”
• Customer-­‐focused
• Team-­‐based
projects
• Stock
op1ons
programs
• A
responsibility
to
the
community
at
large
• Strong
engineering-­‐driven
culture
• Management-­‐by-­‐objec1ves,
not
by-­‐control
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

62. The
HP
Way
Guiding
Values
for
the
Company
• “What
can
we
contribute?”
• “Are
people’s
lives
improved
because
of
what
we
do?”
• “Are
the
communi1es
in
which
we
operate
stronger,
and
the
lives
of
our
employees
beUer?”
• “Do
our
products
offer
something
unique
to
our
customers?”
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

63. Oct
16
2015
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H.
Lee
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Ventures
2015
APPLE

64. The
Core
of
Apple
Culture
• Accountability
• Hire
the
best
• Consistency
• Design
for
great
user
experiences
• Excellence
above
revenues
• Treat
employees
well
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

65. Oct
16
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
Apple
in
Steve
Jobs
Time
…

66. Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015
Apple
under
Tim
Cook

67. Oct
16
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015

68. Innova1on
Culture
@
Google
• Innova1on
from
everywhere
• Focus
on
the
user
• Think
10X
• Bet
on
technical
insights
• Launch
and
iterate
• 20%
1me
• Default
to
open
process
• Fail
well
• Have
a
mission
that
maUers
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
• Strong
engineering
culture
• Strong
sense
of
corporate
mission
Oct
16
2015

69. Oct
16
2015
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H.
Lee
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2015

70. Oct
16
2015
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H.
Lee
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2015
FACEBOOK

71. Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015

72. Benefits
of
Innova1on
Culture
@
Google
• Sustained
ability
to:
– Enter
new
ver1cals
– Create
new
product
categories
and
industries
– Move
quickly
– Stay
ahead
of
rivals
– AUract
the
best
talent
– Dominate
their
markets
– Build
a
world-­‐leading
‘innova1on
ecosystem’
in/around
Google
• ‘Innova1on
culture’
used
from
Day
One
as
a
tool
to:
– Build
a
‘flat’
company
– Less
hierarchy
than
most
other
enterprises
– Rapid
decision-­‐making
– Superior
strategic
vision
+
execu1on
– Accept
failures,
learn
from
failures,
shut
down
failures
quickly
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

73. Oct
16
2015
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H.
Lee
&
Innovarium
Ventures
2015
Microso_
1980s
-­‐
2014

74. Oct
16
2015
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H.
Lee
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Ventures
2015
Microso_
2015

75. Key
Ques1ons
• How
does
a
company
maintain
its
culture
as
it
scales/grows?
• How
can
an
exis1ng
company
‘pivot’
its
culture
to
be
more
innova1on-­‐centric?
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

76. Innova7on
Culture
Prac7ces
@
Google
• Hire
for
personality
&
culture
fit
• Value
speed
&
pivo1ng
in
decision-­‐making
• Work,
eat
and
live
together
• Do
all
reorgs
in
a
day
• Organize
the
company
around
the
people
whose
impact
is
the
highest
• Establish
a
culture
of
‘Yes’
• Bet
on
technical
insights,
not
market
research
• Default
to
open,
not
closed
• Don’t
follow
compe11on
• Avoid
deep
hierarchies
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Oct
16
2015

78. Who
Is
Your
‘Chief
Culture
Officer’?

79. Culture
Beats
Strategy

80. Company
Culture
is
the
core
Innova7on
Plajorm

81. Oct
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2015
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H.
Lee
&
Innovarium
Ventures
2015
Sa7rical
Org
Charts,
by
Manu
Cornet
(2011)
French
So_ware
Engineer
at
Google.

82.
Wrap-­‐Up
and
Summary

83. The
Essence
of
‘Design
Thinking’

84.
Product
Design
Excellence
&
Skills
Are
EssenCal
to
Growing
Successful
Companies
in
Ukraine

85. Customer
Demand
for
Quality
is
Extremely
Important
Companies
Must
Understand
the
End-­‐to-­‐End
Customer
Experience

87. Join Our Online Community
@europreneurs
Speaker Presentation Slides
www.slideshare.net/burtonlee1
Speaker Videos – YouTube Channel
‘StanfordEuropreneurs’
‘European Innovation @Stanford’
www.StanfordEuropreneurs.org
me421.stanford.edu

88. THANK
YOU
Dr.
Burton
Lee
PhD
MBA
Stanford
School
of
Engineering
Burton.Lee@Innovarium.net
WWW.STANFORDEUROPRENEURS.ORG
@EUROPRENEURS

89.
Working
in
Silicon
Valley,
Europe,
La7n
America
and
Washington
DC
• Senior
financial,
technical
and
strategy
advisory
services
for
global
technology
innova1on
organiza1ons
• Professional
Services
– Technology
startup
and
growth
companies
• Interim
CXO
and
Advisory
Board
roles
• Expert
guidance
&
decision-­‐making
at
the
interface
between
market/customers,
technology
and
finance
• Business
development
–
industrial
and
government
• Business
plan
prepara1on/research/review;
Government
Grant
proposal
prepara1on/review
• Coaching
and
mentoring
of
CEOs
and
other
CXO-­‐level
managers
• Assistance
with
government
regulatory
and
policy
agencies
– Angel,
venture
capital
and
private
equity
Investors
• Fund
strategy,
team
selec1on
and
market
posi1oning
• Due
diligence:
technical,
financial,
strategy
and
business
models
– Public
and
non-­‐profit
R&D
laboratories
• Technology
transfer
&
partnerships;
venturing
and
spin-­‐out
of
companies;
strategy
and
business
development;
grant
applica1ons
– Research
universi1es
• Innova1on-­‐related
models,
policies
and
prac1ces
• Technology
transfer
and
licensing;
industry
partnerships
and
rela1ons;
development
and
strategy;
grant
applica1ons
– Na1onal
and
regional
government
agencies
• Innova1on
policy
formula1on,
analysis
and
review;
cluster
development
strategy;
economic
impact
studies
• Science
&
technology
policy
formula1on,
analysis
&
review:
space,
avia1on,
nanotechnology,
sobware/AI/robo1cs,
manufacturing
• Selected
recent
clients
– US/European
technology
startup
companies
–
alterna1ve
energy,
robo1cs/AI,
sobware,
Internet,
nanotech
– Venture
and
private
equity
funds
–
aerospace,
nanotechnology,
ICT,
compu1ng,
advanced
materials,
clean
tech
– Office
of
the
Prime
Minister,
Ireland;
European
Commission;
Na1onal
Science
Founda1on;
NASA,
Na1onal
Academies
• Dr.
Burton
Lee
PhD
MBA,
Managing
Director
– Contact:
Burton.Lee@innovarium.net
Based
in
Palo
Alto,
CA
near
Stanford
University
– Bio/References:
LinkedIn
Profile
– Lecturer,
European
Entrepreneurship
&
Innova1on,
Stanford
School
of
Engineering