The document is a set of lecture notes from a class on CS207 covering several topics related to software valuation and business models:
1. It discusses different types of intellectual property including patents, copyrights, and trade secrets, and how they are used in open source software versus traditional business models.
2. It covers challenges with valuing software companies and outlines principles of valuation as well as factors that affect the life and lag of software innovation.
3. The notes also address issues around money and different monetary systems including commodity-backed currencies, fiat currencies, and offshore banking as it relates to housing intellectual property in tax havens.
¬For more classes visits
www.snaptutorial.com
ACC 544 Week 1 Individual Assignment Recommendation Brief for an Internal Accountant
ACC 544 Week 2 Individual Assignment Justification for an Internal Control System
ACC 544 Week 3 Individual Assignment Checklist for Evaluating Internal Controls
ACC 544 Week 4 Learning Team Assignment Controls for Inflows
This is oldish set on an engineering-based approach to sharing diverse and heterogeneous data. It complements a paper about to be published in a Springer collection by Tansel et al. as well as recent Health care record systems discussions.
¬For more classes visits
www.snaptutorial.com
ACC 544 Week 1 Individual Assignment Recommendation Brief for an Internal Accountant
ACC 544 Week 2 Individual Assignment Justification for an Internal Control System
ACC 544 Week 3 Individual Assignment Checklist for Evaluating Internal Controls
ACC 544 Week 4 Learning Team Assignment Controls for Inflows
This is oldish set on an engineering-based approach to sharing diverse and heterogeneous data. It complements a paper about to be published in a Springer collection by Tansel et al. as well as recent Health care record systems discussions.
(Pitch Deck): How FTX raised over $1 billionPitch Decks
FTX was arguably the market-leading cryptocurrency exchange before it's highly-publicized liquidity crisis and ensuing bankruptcy filing in late 2022.
FTX (once valued over $32 billion) collapsed in a matter of days in November 2022 after it was revelaed that founder Bankman-Fried had secretly shifted $10 billion of FTX customer deposits to Alameda.
Despite their recent failures, one cannot overlook that FTX was incredibly successful in fundraising in a challenging environment:
They raised their first seed round in 2018 in the midst of the crypto-winter, and raised over $1.8 billion since.
FTX raised multiple rounds led by Sequoia, with participation from notable VC funds like Tiger Global, Softbank, Lightspeed Venture Partners, ICONIQ Growth, and more.
Here's an inside look at an FTX pitch deck from May 2021, presumably used to raise their $1B Series B round announced in June of the same year:
This lecture reviews options for international entry strategy. Common entry modes such as exporting, licensing, franchising, etc. are reviewed. We discuss in depth the pitfalls of exporting, and highlight important tools such as a letter of credit and bank intermediaries in foreign trade. We conclude the lecture with a review of foreign direct investment (FDI) and the pros and cons of such an approach.
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Entering the US market has been a major milestone for most foreign-born startups. Though every other ecosystem always wanted to become its own version of Silicon Valley, the siren call of the biggest market for most industries and the superior network by the bay, almost always won out. The pandemic has dramatically shifted this calculus. Join us in a dynamic discussion on how the idea of moving to Silicon Valley has changed, as well as, the legal, strategic, partnership, and fundraising best practices involved.
Raising Investment Capital through ICOs: Success Strategy and Pitfalls to AvoidAppCoins
These are the slides I used during the Blockchain Solutions Asia event in Kuala Lumpur, Malaysia on 28 Sep 2018. They cover some of the lessons learned during our successful AppCoins' Initial Coin Offering where we raised USD 17 million.
The Next Recession is Coming... This is Your Survival GuidePhil Argue
This presentation was presented as a webinar in July 2018 with Early Growth Financial Services and Prepared Capital. The link to the webinar (with audio) is available here: https://preparedcapital.com/blog/the-next-recession-is-coming-survival-guide/
Paying off Tech Debt - Scaling Up To GrowJovi Pinon
Startups need to focus on product market fit and user acquisition before building the perfect system because things are guaranteed to change.
But what happens after a startup's found product market fit and accrued a mountain of tech debt along the way? In this session Catherine will discuss her teams work at Stash as they navigated their way through an intense growth period and how they tackled paying down tech debt that was impending hyper growth.
How do you recognise the scaling risks in your systems?
Trading off challenges between monoliths and microservices
How reducing cognitive load improves the resilience of a system
Frameworks for identifying types tech debt and strategies for approaching them
Setting up your business in Silicon Valley - what international entrepreneurs...Louis Lehot
Flipping, setting up a subsidiary, a branch, going direct, setting up operations, venture capital financing and what you need to know to set up your business in Silicon Valley
Tutorial on how Software can be valued as a business. Three sections. The roles of Intellectual capital, comprised of human capital and intellectual property (IP). Protectiing IP. Routine and non-routine profit Allocation. The final section deals with taxtation and how multinationals avoid taxation be moving rights to profit from software to tax havens
Tutorial on how software can be valued in a global business setting. IThe last section covers multinational tax avoidance. enabled by moving rights to profit from software assets into tax havens.
(Pitch Deck): How FTX raised over $1 billionPitch Decks
FTX was arguably the market-leading cryptocurrency exchange before it's highly-publicized liquidity crisis and ensuing bankruptcy filing in late 2022.
FTX (once valued over $32 billion) collapsed in a matter of days in November 2022 after it was revelaed that founder Bankman-Fried had secretly shifted $10 billion of FTX customer deposits to Alameda.
Despite their recent failures, one cannot overlook that FTX was incredibly successful in fundraising in a challenging environment:
They raised their first seed round in 2018 in the midst of the crypto-winter, and raised over $1.8 billion since.
FTX raised multiple rounds led by Sequoia, with participation from notable VC funds like Tiger Global, Softbank, Lightspeed Venture Partners, ICONIQ Growth, and more.
Here's an inside look at an FTX pitch deck from May 2021, presumably used to raise their $1B Series B round announced in June of the same year:
This lecture reviews options for international entry strategy. Common entry modes such as exporting, licensing, franchising, etc. are reviewed. We discuss in depth the pitfalls of exporting, and highlight important tools such as a letter of credit and bank intermediaries in foreign trade. We conclude the lecture with a review of foreign direct investment (FDI) and the pros and cons of such an approach.
US Market Entry for Fast-Growing StartupsLouis Lehot
Entering the US market has been a major milestone for most foreign-born startups. Though every other ecosystem always wanted to become its own version of Silicon Valley, the siren call of the biggest market for most industries and the superior network by the bay, almost always won out. The pandemic has dramatically shifted this calculus. Join us in a dynamic discussion on how the idea of moving to Silicon Valley has changed, as well as, the legal, strategic, partnership, and fundraising best practices involved.
Raising Investment Capital through ICOs: Success Strategy and Pitfalls to AvoidAppCoins
These are the slides I used during the Blockchain Solutions Asia event in Kuala Lumpur, Malaysia on 28 Sep 2018. They cover some of the lessons learned during our successful AppCoins' Initial Coin Offering where we raised USD 17 million.
The Next Recession is Coming... This is Your Survival GuidePhil Argue
This presentation was presented as a webinar in July 2018 with Early Growth Financial Services and Prepared Capital. The link to the webinar (with audio) is available here: https://preparedcapital.com/blog/the-next-recession-is-coming-survival-guide/
Paying off Tech Debt - Scaling Up To GrowJovi Pinon
Startups need to focus on product market fit and user acquisition before building the perfect system because things are guaranteed to change.
But what happens after a startup's found product market fit and accrued a mountain of tech debt along the way? In this session Catherine will discuss her teams work at Stash as they navigated their way through an intense growth period and how they tackled paying down tech debt that was impending hyper growth.
How do you recognise the scaling risks in your systems?
Trading off challenges between monoliths and microservices
How reducing cognitive load improves the resilience of a system
Frameworks for identifying types tech debt and strategies for approaching them
Setting up your business in Silicon Valley - what international entrepreneurs...Louis Lehot
Flipping, setting up a subsidiary, a branch, going direct, setting up operations, venture capital financing and what you need to know to set up your business in Silicon Valley
Tutorial on how Software can be valued as a business. Three sections. The roles of Intellectual capital, comprised of human capital and intellectual property (IP). Protectiing IP. Routine and non-routine profit Allocation. The final section deals with taxtation and how multinationals avoid taxation be moving rights to profit from software to tax havens
Tutorial on how software can be valued in a global business setting. IThe last section covers multinational tax avoidance. enabled by moving rights to profit from software assets into tax havens.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the what'sapp contact of my personal pi vendor
+12349014282
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
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1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just what'sapp this number below. I sold about 3000 pi coins to him and he paid me immediately.
+12349014282
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
Cs207 9
1. CS207 #9, 2 Dec 2011, Fin
Gio Wiederhold
Gates B12
12/2/2011 CS207 1
2. Syllabus:
1. Why should software be valued?
2. Principles of valuation. Cost versus value.
3. Market value of software companies.
4. Intellectual capital and property (IP).
5. The role of patents, copyrights, and trade secrets.
6. Open source software. Scope. Theory and reality
7. Life and lag of software innovation.
8. Sales expectations and discounting, Licensing. .
9. Alternate business models.
10. Separation of use rights from the property itself.
11. Risks when outsourcing and offshoring development.
12. Effects of using taxhavens to house IP.
13. Money, a distraction – but it closes a loop
12/2/2011 CS207 2
3. Money
• Income, represented by Money, is the objective
• What is money
• It is an owned asset that can be exchanged for
other, real goods and the happiness they bring
• What gives money its value
• the money we use is debt-instrument backed by
a trustworthy asset
• In the US the faith we have in the US government
12/2/2011 CS207 3
4. Backing
Originally most countries were on the gold standard
– mixed with silver in the US (bimetallic coinage)
a ten-dollar coin was tiny, but real gold
• Spanish doubloons
common were silver dollars
• Joachimsthaler – a silver mine in Bohemia
Other assets are feasible – they should not be
easy to falsify and in limited supply
• Shells • pork bellies
• Corn • aluminum lire
• Oil • milk chits (italy, 1950)
12/2/2011 CS207 4
5. Paper money
• “Real money” is hard to handle ↓
• “Real money” is hard to manipulate ↑ & ↓
A government can keep gold and silver (specie)
in its treasury and issue gold or silver certificates
• “dollar bills”
One on display with the IBM cards on 2nd floor
You could take them to federal bank and get gold
Gold miners would take their gold to the SF mint
and could get gold certificates.
12/2/2011 CS207 5
6. Fiat money
• Being on the gold standard has a problem
When more money is needed as in times of war, the
government can print more gold certificates
But with the same backing the value deflates
• The U.S. went off the gold standard (more than once)
5 April 1933 US citizen could no longer hold monetary gold/silver
15 Aug. 1971 when it no longer allowed foreign countries to exchange US debt
• Now backed by “The Full Faith and Credit” [Article IV, Section 1 of the USC]
• But now not based on a tangible asset,
but by the ability of government to levy taxes
12/2/2011 CS207 6
7. • Anyone who has assets and is trusted
1. The Federal Reserve Bank $ ← taxes & trust
2. A bank can make loans ← assets held & trust for excess
3. A government reserve bank (UK BoE, ...) £, ¥, ← taxes
4. The European Central Bank € ← trust not taxes directly
5. Any financial institution with some assets & trust
Since ~1955 City-of-London banks & their offshore branches create
Eurodollars ← offshore income based on IP & trust
$2,600,000M in 1988 “the largest source of capital in the world” [Kynaston:02, p.696]
Investors don’t care about the color of the money.
12/2/2011 CS207 7
8. Discussion points
1. Role of software and IT in commerce
2. Naivite about the role of IP by economists &
politicians
3. Levels of intellectual capital
4. Tax avoidance and tax evasion
5. Repatriation of $$$ and IP
6. Role of standards
7. Corporate Growth – organic vs. acquisitions
12/2/2011 CS207 8
9. Topic 1.1: role
12/2/2011 CS207 9
Consumer
Pull
Research
&
Inno -
vation
Tool
building
Product
building &
marketingGeneral
Technology
Push Business
needs
Government
responsibilities
Information
Technology
10. T.1.2: IP flow in the
Hard-& Software industry
Design &
validation
in US
Product Sales within
the US
Product Sales external
to the US
manufacturing,
distribution
CD creation
Internet
Development, testing
in the US and at CFCs
Technical IP
Investment
Income is taxable Part of income is due to
US contribution & taxable
4 June 2010 10Gio Wiederhold IP havens
11. Service Sales .
external to the US
Finance experts
at site external to
the US
Income is taxable
Service Sales within
the US
Technical IP
Investment by INB
T.1.3 Flow of IP in the
financial industry
say: INB investment bankT.1.
Design &
feedback
Operations
external to
the US
INB
system
experts in
the US
Programming
and testing
Operations of
INB within
the US
INB finance
experts within
the US
Financial IP
Investment by INB
Income due to
Technical US contribution is taxable
4 June 2010 11Gio Wiederhold IP havens
12. Topic 2
Naiveté of all politicians and most economists
• Believe in financial-only capital
Fed. RB trying to lower rates on capital when there is plenty of
money already, while imposing coverage limits on small banks
• Ignoring offshore intellectual property
Repatriation of earnings leaves the generating asset offshore
• Dealing with the U.S. in isolation
Change U.S. Laws & regulations and ignoring the world
• Ignoring the interaction of semi-& real taxhavens
Trying to apply constraints on one aspect and then help the others
indirectly
12/2/2011 CS207 12
13. Intellectual Resources
Public
&
Private
Intellectual Capital
Rights owned by the business
Intellectual Assets
Available for transfer
Intellectual Property
Legally protectable
Patents
Copyrights
Trade secrets
Trade marks
Contracts covering intellectual capital
Intellectual Property
Legally protectable
Patents
Copyrights
Trade secrets
Trade marks
Contracts covering intellectual capital
Topic 3: IP
14. Use
Creator
Owner
Rights to intangible Use Rights
€ fees$ IP value ??
Use
Owner
Rights to tangible
€ rents
Lease
Creator
$ Price
Topic 4.1: Tax
avoidance/evasion
15. $B
400
200
100
300
800
600
500
700
1100
900
1000
1300
1200
1400
1500
200
100
300
(100)
0
400
US tax paid on US
Corporate earnings
$335B
(200
)
US total worldwide
corporate earnings
$1,550B /year
(less during 2008-2009)
1,250B from
domestic sources
W - F
US-sourced
earnings moved
abroad = $300B
Earnings on $1,800B
income from foreign
sources = $400B
$620B
available for
corporate
dividends
$690B
available in
taxhavens
for corporate
investment
US corporate
tax revenue
$340B
(300)
US corporate earnings
sources → destinations
W
U
F
D
T
R
$B
&
investment
in the U.S.
T.4.2: effect
17. New projects in
semi-taxhavens &
low cost countries
IP rights held .
at CONCH .
.
.
Right
to
use
the
IP
IP at MNC .
r
$
to
gro
w
the
IP
$ all untaxed
time
$ for
Buy-in
Primary taxhaven
Taxing country
IP
Initial IP &
$ buy-in ↓ .
↓ $
for
divi-
dends
Government
Shareholders
new
IP
$
for
tax
on
Buy
-in
$
New profits only at CONCH
Use
of IP
?
Use
of
funds
?
More
CFCs
new
$
19. T6.2 Share IP?
Yes, with care
Adobe: Reader
XEROX PARC: Smalltalk OO language nearly dead
We got C++ instead
Industry Group: Standards specifications
Publication in scientific venues ok, not enough
Publication in trade journals ok, little impact
Apple vs Microsoft, Xerox vs all: Look and feel
Apple had licensed earlier version, without overlapping
windows. Could protect the trashcan
12/2/2011
CS207
19
20. Topic 7.1: growth
1. Internal: Organic growth
improve product line - sequential
increase penetration, market share
broaden market - parallel
2. External: acquistions
a. Startups - mainly people - integrate
a. Improve quality
b. Broaden
b. Mature companies
a. Complementary products
b. IP exchange low-level technology / management / market
c. Just as investment -- added management cost
12/2/2011 CS207 20
21. T7.2 organic
Complementary
• Advertising 25% of business spending
Google Adwords /Adsense to trigger where ads go
Show your ad on top or on the side of a search
Show your ad on relevant web pages
o Charge by show (eyeballs) or click-through
o Do that until money runs out
o Allocate among competitors according to money made available
Google tools for measuring Google’s ads impact
measurements in other media are ad-hoc
could be disregarded, but still contribute to the perception.
Perceptions is also IP, embodied in trademarks etc.
12/2/2011 CS207 21
22. T7.2 Growth
• Organic
a. Product R&D investments
New versions
b. Product Marketing
New, broader applications
c. Fundamental R&D
d. Trademark promotion
e. Curiosity-driven R&D ?
• Through acquisitions
a. Additional products
novel – first
complementary
anti-competetive
b. Product improvements
c. IP: Patents … → as with a
d. Knowhow of staff
12/2/2011 CS207 22
• Paid for by
a. Profits on existing products (after dividends are paid out)
b. New investors: venture funders before / stockholders after going public
c. Loans Interest on loans up to x can be deducted from taxes
as with a.
23. T7.3 Generalize
success
A. Broaden
Adobe : After WYSIWIG printing
1. Pagemaker for Page composition
2. Dreamweaver for Web composition
3. Photoshop for Image editing
B. Deepen
Salesforce.com
Customer Relationship service on-line
Force.com
Operating system for on-line business
applications
12/2/2011 CS207 23
IP shared:
1. Customers
2. Marketing
3. Distribution
IP shared:
1. Concept
2. Technology
3. HW Support
4. Analytic SW
24. T7.4 Advertising became
main web income source
1. Audience
Focused
Salesforce
In front of competitors
annual sale meetings 3x
1. Fake demonstrators in SF.
2. Give coffee, mugs, rides,
literature to attendees in NY
3. Hire all taxis in Nice, give
free rides to site in Cannes.
3. Logo & name
Essential for branding
Metaphor
Negative?
12/2/2011 CS207 24
Vs. Superbowl?
• Much buzz
• Huge audience
• Your audience?
4. Timing
Have Product ready
• Few bugs
• Clear operation
• Useful
2. Address
a. Buyers in corporations
b. Users and employees
• Understand motivations for change
c. Both
25. Customer
Segmentation
• Getting a broad market presence is very hard
Superbowl advertising: 30 seconds costs $3M
o Apple 1984: Macintosh
o Hulu 2009: Internet video player
Find narrow markets that are now not well served
Professional groups
o Use professional magazines
o Establish credibility through publishing
Social networks
o Participate
Health concerns by symptoms or diagnoses
Educational specialties
12/2/2011 CS207 25
26. `Buzz’
Customer and potential customer interaction
• In the relevant community
The most powerful sales tool
Novelty and quality drive buzz
Advertising effect is complementary
• Simple stories for the press
Writers look for good guys vs bad guys stories
Don’t have time to dig deep
Match public events
o Be ready - security SW when there is a big break-in; …
• Direct mail ?
Sometimes for a specific off-the-net audience
12/2/2011 CS207 26
27. Use your income to
grow IP: R&D and
• Advertising 25% of business spending
Google Adwords /Adsense to trigger where ads go
Show your ad on top or on the side of a search
Show your ad on relevant web pages
o Charge by show (eyeballs) or click-through
o Do that until money runs out
o Allocate among competitors according to money made available
Google tools for measuring Google’s ads impact
measurements in other media are ad-hoc
could be disregarded, but still contribute to the perception.
Perceptions is also IP, embodied in trademarks etc.
12/2/2011 CS207 27
28. Acquisitions
• A common path for
a. Exit from a startup venture seller
b. Growth of a larger company buyer
• 2 parties at `Arms-length
1. Willing seller
2. Willing buyer
Assumption here: no funny business
o Buyer has funded seller, formal/ informal restrictions
o Selling a non-exclusive license
o Seller is object of a legal proceedings, as patent suit
o Seller is bankrupt
Both parties must agree on the value
Both parties should understand intellectual property
12/2/2011 CS207 28
29. Example:
Adobe events
12/2/2011 CS207 29
Dec..
1982
1984/1985
1976 Xerox Parc uses Press language
to drive its new Dover laserprinter
1978 John Warnock joins Parc
Unix NexT
Illustrator
Mac PC
Acrobat
Mac PC
Internal
products:
Peter Deutsch Alladin OpenSource PostScript reader
Unix
Acquisitions:
OCRsystems
TypeAlign
IRS adopts free Reader
1993
Jonathan Gay → Flash, Dreamweaver
PC?
Aldus, Frame
Paul Brainard (Stanford) develops PageMaker, founds
Mac PC
Nick Corfield founds Frame Tech. for WYSIWG
Unix Mac
HTML
ImageReady
Free
reader
PhotoMerge → Photoshop Elements
PPT
Macromedia
InDesign
PhotoStyler → Photoshop
Mac&PC
30. Consistency in
plans
When comparing business alternatives
• Give each choice the same chance
1. Temporal consistency
Computing versus communication
Local versus Cloud in 2012
o Skate to where the puck is going [Gretsky]
2. Discount rate
3. Resource prices
Green alternatives
Benefits may depend on price of oil –
o if 3 x now, why not invest in oil instead
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31. Opportunities
• There are big waves where much changes
1. Introduction of automation into manufacturing
2. Introduction of data processing in business
3. Introduction of the Internet into communication
• Within a big wave there are many small waves
1. Management of feedback
Product improvement, advertising
2. Locality of computing
a. Timesharing - many users use a large computer
b. Personal computing – local computing is cheap
c. Cloud computing – remote computing is flexible
All waves create opportunities
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32. The End
I hope that you have learned in this course a bit about a
topic which is currently ignored in the CS and
Engineering curricula.
Much success in your futures
Gio Wiederhold
Business models and finance topics can be discovered when
experienced entrepreneurs present their history. A good
resource is of the Stanford Entrepreneurship Corner, with
viseos at <A HREF=“http://ecorner.stanford.edu”>. I recommend
searching for authors as Hawkins, Ries, Kaplan, Siebel, Estrin.
Some of their views differ greatly, illustrating the complexity
of translating IP to success. You can also search by topics.
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