1. Innovation and Product Development
The Team
Jakob A. Bejbro Andersen
jaban@mek.dtu.dk
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“Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product
Development Department of Mechanical Engineering, The Technical University of Denmark”

2. Why the team is important
• Well, why write a business plan?
– To get an overview of what to do when.
– To show how to get the most out of your idea.
– To describe how to create sales.
– To estimate when you will start earning money.
– ...
• Yes, but the business plan (and the pitch) has a hidden and
very real added purpose:
– To show that the team is
up for the task
2 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

3. Why is the team important II
• No matter how well you do, there is always going to be a
big difference between:
– Your plan for the business.
– And the actual rollout.
B
B
Changed
• So what does the investor context/market
new
want to know?
– Is the team able to respond
to the changes in
prerequisites that are
bound to occur? Changed
Changed context/market
context/market
A (current context/market)
3 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

4. What the team needs to show
• Following the established logic...
• ...You should be good at:
– (Re-) analysing the market.
– (Re-) evaluating the business plan.
– (Re-) prioritising your focus.
– Killing your darlings
– Quickly adapting.
• This requires a team that...
– Has competencies within relevant fields.
– Has clear codes of conduct.
– Has a clear distribution of responsobilities.
– Is strongly committed.
4 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

5. The psychology of an investment meeting
• Covering all bases is not as important as being concise.
– Details can always be added.
• Remember the ”lingo” (ROI, Risk mitigation, EBIT etc.)
– Most investors speak that language and only a few are willing/able to
translate your engineering nonsense.
• Investors will typically say things like:
– ”We feel that you should look closer at the Japanese market”
• ...Actually, this means:
– ”We are giving your team an assignment to
see if you can solve it properly”
5 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

6. Building the team I: Setting expectations
• An idea typically emerges
through the interaction of
somewhere between 1-5
inventors.
• The business is built around the
inventors who are willing to put
in the effort
(hobby or full time?)
• This business is likelier to
succeed if the inventors realise
their shortcomings and recruit
relevant competencies*. * ”Surround yourself with people who are
smarter than you” – D. Trump (?)
6 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

7. Exercise 1:
For each group:
Pre - Group example.
1- Spend 1 minute thinking about this question:
What will my role be in relation to my group’s
idea 6 months from now?
2- Then spend 1 minute each (5 mins total) telling your
group what your answer is.
3- Summarize (1 minute): How many are willing to continue
working on the idea after the course ends?
4- Share the result with the class!
7 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

8. Building the team 2: Ownership
• The roles and commitment levels of team members need to be
reflected in the distribution of shares and rights in the company.
– Discuss division of shares now – not later
– You need ”Bakers”, not ”Eaters”.
• Proposed framework for dividing shares*:
– Start out with a hundred shares each, then... (for each person)
• You got the idea (5% extra - relatively)
• You did the initial validation work (5-25%)
• You are CEO (5%)
• You commit to full time (200%)
• Reputation (super-entrepreneur) (50-500%)
• You invest (% depending on investment and valuation)
*http://www.geekwire.com/2011/wrong-answer-5050-calculating-cofounder-equity-split/
8 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

9. Building the team 3: Decision making
• The number of shares does not necessarily reflect the amount of
power held by each shareholder.
• Depending on the type of company, decisions are made by a
board or by the management.
– Board:
• Strategic decisions.
• Large investments.
• Management hirings / terminations.
• Loan commitments.
• Financing / budget approval.
– Management (CEO):
• Daily operations.
• Low-medium sized investments.
• Staff hirings.
• Choice of suppliers and partners.
9 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

10. Building the team 3: Distribute roles
• To perform efficiently, clear roles need to be defined
• Prepare to become:
– CEO
– Sales manager
– R&D manager
– ...
• At the same time, the team should be comprised of ”T-shaped”
persons:
Competence Business 1 Business 2 Business 3 Tech 1 Tech 2 Tech 3 Project 1
Proficiency level 1
Proficiency level 2
Proficiency level 3
10 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

11. Now introducing: Connect DK
• Even before you set up you company, you will have to
start working on a network.
• Connect DK is a network organisation that links innovative
startups with growth potential to relevant persons and
organisations.
• Jens Christian Foged (Team Leader) will now introduce
the services of Connect DK.
• See more on: http://www.connectdenmark.dk/
11 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark

12. 12 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012
Development Department of Mechanical Engineering, The Technical University of Denmark