How to Dance With the Technology Giants  When You are David - or – How To Turn Your Biggest Competitors  Into Your Key Str...
Table of Contents <ul><li>Purpose of this Presentation –  Time to get Real! </li></ul><ul><li>Realities of the Technology ...
Purpose Of This Presentation Today
Purpose of this Presentation  <ul><li>Time to get Real! </li></ul><ul><ul><li>A chance for you to step back, take a breath...
Who The Hell Are We?
Behr & Associates  – Who The Hell Are We? <ul><li>Who the Hell am I and Why am I Giving This Chat? </li></ul><ul><li>Born,...
<ul><ul><li>Sample of Current Major Technology Partner Access: </li></ul></ul>Behr & Associates  – Who The Hell Are We?
What Should You Take Away  From This Presentation?
What Should You Take Away From This Session? <ul><li>Know what you are really good at and do it!  Don’t play the USA game ...
The Elements of The  Technology Game for  Canadian Tech Companies  in the 21 st  Century
Realities of the Technology World Today –  Time for a History Lesson! <ul><li>Automotive Industry redux </li></ul><ul><ul>...
<ul><li>The Canadian Technology  Vendor  marketplace is generally characterized by: </li></ul><ul><ul><li>Many small (sub ...
<ul><li>The Canadian Technology  Investor  marketplace is generally characterized by: </li></ul><ul><ul><li>Founders, Ange...
Realities of the Canadian Technology company today --  Who’s Your Daddy?  (cont’d) <ul><li>What are we good At?  What aren...
Realities of the Canadian Technology company today --  Who’s Your Daddy?  (cont’d) <ul><li>Nothin’ wrong with being Magna,...
The “Name of the Game”  –  Getting Ready for the Dance <ul><li>Go-To-Market Strategies </li></ul><ul><li>Locking down dat ...
The “Name of the Game”  –  Getting Ready for the Dance  (cont’d) <ul><li>“ Dog & Tail” </li></ul><ul><li>Integration, Inte...
“ To Thine own Self Be True”  --  Gotta Know When to Hold ‘Em, Know When to Fold ‘Em… <ul><ul><li>Know what you are good a...
The Process in Real World Steps <ul><li>You have to build a direct business yourself to $500,000 – Canada is great for tha...
Summary <ul><ul><li>There are still AMPLE opportunities for Canadian Technology firms. </li></ul></ul><ul><ul><li>You must...
Thank You! <ul><li>Albert Behr </li></ul><ul><li>[email_address] </li></ul><ul><li>www.behrassociates.com </li></ul><ul><l...
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Strategic Selling: Dancing with Technology Goliaths when you are David

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Strategic Selling: Dancing with Technology Goliaths when you are David

  1. 1. How to Dance With the Technology Giants When You are David - or – How To Turn Your Biggest Competitors Into Your Key Strategic Partners CEO Fusion, December 8, 2006 Copyright 2006 Behr & Associates Inc.
  2. 2. Table of Contents <ul><li>Purpose of this Presentation – Time to get Real! </li></ul><ul><li>Realities of the Technology World Today – Time for a History Lesson! </li></ul><ul><li>Realities of the Canadian Technology company today -- Who’s Your Daddy? </li></ul><ul><li>The “Name of the Game” – Getting Ready for the Dance… </li></ul><ul><li>“ To Thine own Self Be True” -- Gotta Know When to Hold ‘Em, Know When to Fold ‘Em… </li></ul><ul><li>The Process in Real World Steps </li></ul><ul><li>Summary </li></ul>
  3. 3. Purpose Of This Presentation Today
  4. 4. Purpose of this Presentation <ul><li>Time to get Real! </li></ul><ul><ul><li>A chance for you to step back, take a breather, think critically and pragmatically where you want your company to go. </li></ul></ul><ul><ul><li>This is meant for tech companies, but could well be applicable to other companies wishing to drive strategic relationships </li></ul></ul><ul><ul><li>The motto for this entire chat is for you to play to your strengths today, not what you want to be! </li></ul></ul><ul><ul><li>Learn the “Bird in the Hand” rule! </li></ul></ul><ul><ul><li>Learn the “Hope Beyond Logic” rule! </li></ul></ul><ul><li>Everything has a Lifecycle; Embrace it and Win – Ignore It At Your Own Peril </li></ul><ul><ul><li>With very few exceptions, companies that were hot 3 years ago are not now, and those today probably will not be as well in 3 years </li></ul></ul><ul><ul><li>Don’t believe you own bull! </li></ul></ul><ul><ul><li>Be humble and not greedy. And learn the “Daddy” rule (more later) </li></ul></ul>
  5. 5. Who The Hell Are We?
  6. 6. Behr & Associates – Who The Hell Are We? <ul><li>Who the Hell am I and Why am I Giving This Chat? </li></ul><ul><li>Born, raised, and escaped from Winnipeg! ;) Generation 1 Hacker with a tech MBA from the States a BILLION years ago… </li></ul><ul><li>Lived in Silicon Valley, Redmond/Seattle, Tokyo, and Europe for some of the largest tech companies in the world </li></ul><ul><li>I live here now (this is home) and work with promising Canadian companies vend their products and services on a world stage with very large players. </li></ul><ul><li>What The Hell Does Behr & Associates Inc. Do? </li></ul><ul><li>Behr & Associates Inc. is a successful & recognized North American technology consulting </li></ul><ul><li>practice focused on helping select high technology companies achieve market leadership </li></ul><ul><li>and liquidity options for their core products and services. </li></ul><ul><li>This is accomplished through the strategic implementation of key partnerships, strategic </li></ul><ul><li>financial capital, as well as senior advisors and managers for promising firms. </li></ul>
  7. 7. <ul><ul><li>Sample of Current Major Technology Partner Access: </li></ul></ul>Behr & Associates – Who The Hell Are We?
  8. 8. What Should You Take Away From This Presentation?
  9. 9. What Should You Take Away From This Session? <ul><li>Know what you are really good at and do it! Don’t play the USA game or you will most likely fail (much more later on this)! </li></ul><ul><li>That it is very, very possible to win large, and not blow your brains out on trying to raise huge amounts of money, an equally spend huge amounts on marketing and sales </li></ul><ul><li>Protect, protect, protect your core IP! Do it now! Do it often! Without it, a strong exit is most unlikely </li></ul><ul><li>Remember the 3 year rule and the process I define at the end! </li></ul>
  10. 10. The Elements of The Technology Game for Canadian Tech Companies in the 21 st Century
  11. 11. Realities of the Technology World Today – Time for a History Lesson! <ul><li>Automotive Industry redux </li></ul><ul><ul><li>In the start of the industry, there were literally hundreds of different car vendors with thie own standard </li></ul></ul><ul><ul><li>Within 30 years, the industry boiled down to approximately seven major vendors and all their suppliers; this still exists today! </li></ul></ul><ul><ul><li>If you try to “Storm the Bastille” by competing directly with the majors you will die… Are you Crazy? </li></ul></ul><ul><ul><li>There is always room, however, for the next 8 track player, or GPS! </li></ul></ul><ul><li>Technology market: Back to the ’30s! </li></ul><ul><ul><li>We are now approximately 30 years into this industry! Maturity time people! </li></ul></ul><ul><ul><li>There are around 30 “majors” in this industry across the “stack” – 1 to 3 players per segment and that’s that! </li></ul></ul><ul><ul><li>We are NOT in the loop! We are not on “The 101”. We are in the wilderness </li></ul></ul><ul><ul><li>… And you think you can outgun them because of your technical prowess?... Are You Crazy? </li></ul></ul>
  12. 12. <ul><li>The Canadian Technology Vendor marketplace is generally characterized by: </li></ul><ul><ul><li>Many small (sub $1m – 2.5m revenue) technology and “infrastructure” focused firms </li></ul></ul><ul><ul><li>2-5 years old </li></ul></ul><ul><ul><li>Running hand to mouth off of operating income and perhaps a line from the bank </li></ul></ul><ul><ul><li>Generally 10-15 staff with 90+% engineering </li></ul></ul><ul><ul><li>Virtually nonexistent expertise in corporate strategy development/execution, business development </li></ul></ul><ul><ul><li>Funded to date through founders, friends and family, small angels, etc. No institutional funds to date invested (under radar). </li></ul></ul><ul><ul><li>They all generally feel that they have to “go direct” in sales activities </li></ul></ul><ul><ul><li>Not connected to the outside world and very insular in operating/financial mindset </li></ul></ul>Realities of the Canadian Technology company today -- Who’s Your Daddy? Sound Like You?
  13. 13. <ul><li>The Canadian Technology Investor marketplace is generally characterized by: </li></ul><ul><ul><li>Founders, Angels, and Friends & Family – Up to $500-$750k </li></ul></ul><ul><ul><li>Labour Sponsored Funds – Evacuating Market and/or freezing investment portfolios </li></ul></ul><ul><ul><li>Private Venture Capital Funds – Generally will not invest under $2m for min 20% equity position. Generally will not invest in firms with less than $2m revenue. </li></ul></ul><ul><ul><li>Venture Debt Players – Generally will not invest funds into firms with less than $5m revenue and be cash flow positive/neutral. </li></ul></ul><ul><ul><li>Chartered Banks – Generally, operating lines only. Venture groups have been closed or narrowly curtailed to bank-related technology investment </li></ul></ul><ul><ul><li>There is an investment hole between Angels & Private VCs/Debt Players in Canada. The US guys really don’t care. There has to be another way?! </li></ul></ul>Realities of the Canadian Technology company today -- Who’s Your Daddy? (cont’d)
  14. 14. Realities of the Canadian Technology company today -- Who’s Your Daddy? (cont’d) <ul><li>What are we good At? What aren’t we good at? </li></ul><ul><li>Illusion of investment capital – using OPM is real hard! </li></ul><ul><li>Ever notice that those films they make here are marketed from the US??? </li></ul><ul><li>Living in Moose Jaw sucks so let’s be an Arms Dealer to the Big boys! </li></ul>
  15. 15. Realities of the Canadian Technology company today -- Who’s Your Daddy? (cont’d) <ul><li>Nothin’ wrong with being Magna, because I can’t be GM! </li></ul><ul><li>Love those Canadian Engineers -- Play to our strengths! </li></ul><ul><li>Don’t pick a fight with the guys down south… </li></ul><ul><li>Get in – Get out!!!! Three years or die trying! </li></ul>
  16. 16. The “Name of the Game” – Getting Ready for the Dance <ul><li>Go-To-Market Strategies </li></ul><ul><li>Locking down dat der ‘IP! NOW!!! </li></ul><ul><li>Look the Look! </li></ul><ul><li>Go big or go home – Stop being a Canadian!!! </li></ul><ul><li>Narrowcast vs. broadcast! #1 mistake I see!!!! </li></ul>
  17. 17. The “Name of the Game” – Getting Ready for the Dance (cont’d) <ul><li>“ Dog & Tail” </li></ul><ul><li>Integration, Integration, Integration dammit! </li></ul><ul><li>Gordon Gecko was Wrong! Greed is BAAAD! </li></ul><ul><li>“ Crack Cocaine” Selling </li></ul><ul><li>2X OEM rule </li></ul>
  18. 18. “ To Thine own Self Be True” -- Gotta Know When to Hold ‘Em, Know When to Fold ‘Em… <ul><ul><li>Know what you are good at and not what you aren’t! </li></ul></ul><ul><ul><li>Itch and scratch the big guys! </li></ul></ul><ul><ul><li>Hope beyond logic… </li></ul></ul><ul><ul><li>Crack Cocaine! And it is what it is! </li></ul></ul><ul><ul><li>Nature abhors a vacuum. Recognize that! </li></ul></ul><ul><ul><li>DON’T PLAY THE AMERICAN GAME! You will LOSE! </li></ul></ul>
  19. 19. The Process in Real World Steps <ul><li>You have to build a direct business yourself to $500,000 – Canada is great for that! </li></ul><ul><li>You start locking down IP at a rate of (minimum) 2 per year FORVER! </li></ul><ul><li>You determine the 3-4 most likely acquirers, “should the stars line up” </li></ul><ul><li>You start deep technology integration into them immediately </li></ul><ul><li>You (after integration), go after their channel in the US </li></ul><ul><li>After channel, you go after the OEM throat! DON’T BE GREEDY!!!!! </li></ul><ul><li>2X OEM cycles and wait for the knock from the CFO or Corporate Development! </li></ul><ul><li>3’ish years – in and out! </li></ul>
  20. 20. Summary <ul><ul><li>There are still AMPLE opportunities for Canadian Technology firms. </li></ul></ul><ul><ul><li>You must come to terms with what you are good at what and you are not. </li></ul></ul><ul><ul><li>You must respect “the curve” and recognize the tight timeframes for most companies lives. </li></ul></ul><ul><ul><li>Lock down that IP!!! </li></ul></ul><ul><ul><li>You should strongly consider a leveraged channel and OEM model </li></ul></ul><ul><ul><li>You need to always “Get Real” and “Stay Real”! </li></ul></ul>
  21. 21. Thank You! <ul><li>Albert Behr </li></ul><ul><li>[email_address] </li></ul><ul><li>www.behrassociates.com </li></ul><ul><li>(416) 893-0747 </li></ul>

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