The document discusses game-changing business models for startups. It covers finding disruptive business models, focusing on the core value proposition, and multiplying and leveraging the core value through innovation. Examples are provided of companies like Symantec, Acquia, and Drupal that disrupted their industries by changing their business models. Open source models and community collaboration are discussed as ways to co-create and deliver value.
Ideas are worth very little without a culture to guide the selection of talent and a big, bold vision to attract and unify the team. Human capital is what separates great from good companies – which is why establishing a strong culture to attract and retain the right people, while unifying them behind an inspiring vision and mission is essential to any significant venture.
Ideas are worth very little without a culture to guide the selection of talent and a big, bold vision to attract and unify the team. Human capital is what separates great from good companies – which is why establishing a strong culture to attract and retain the right people, while unifying them behind an inspiring vision and mission is essential to any significant venture.
Startup Secrets - Game Changing Business ModelsMichael Skok
In our industry, it’s not uncommon for entrepreneurs to become so mono-focused on the novelty of their product that they forget to innovate sufficiently around their business model. A disruptive business model can be at least as important as a discontinuous innovation.
Startup Secrets - Getting Behind the Perfect Investor PitchMichael Skok
These days the pitch to a VC displaces the old business plan because most investors simply don’t have time to read a full business plan, and most entrepreneurs don’t have time to write one. That said, the business strategy still serves as the foundation for any presentation you create.
What is needed to build a startup? What are the milestones along the way? And how to do you pull that pitch together to get the venture attention and funding your idea deserves. This Slideshare was given at the Harvard iLab and offered:
-- The holistic checklist to think through your venture in a business like plan
-- What matters to a VC/Investor
-- How to think about your roadmap from startup to public company
Company Formation - Foundations for an Enduring Company - Competitive Advanta...Michael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 2 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
It features the case study of Acquia who participated in the workshop.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://www.mjskok.com/
Game Changing Business Models - V2! - with case examples - Competitive Advant...Michael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 3 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://www.mjskok.com/
Harvard Innovation Lab Workshop on developing the Perfect Pitch, by Michael Skok.
Michael is an entrepreneur turned venture capitalist, who has seen both sides of this. He spent 21 years as a CEO, building companies and raising over 100 million to build a number of software businesses. And then has spent the last decade as a VC seeing thousands of pitches from entrepreneurs raising money, and invested in companies that have generated over a billion dollars in value.
So with that in mind, the idea here is to give you an insider's checklist for your own pitch,
The Guide to Objectives and Key Results (OKRs)BetterWorks
Objectives and Key Results is the goal setting framework used at companies like Google, LinkedIn, and Intel. John Doerr, partner at KPCB, passed on Objectives and Key Results to Google helping them grow from 50 to 50,000 people. This is the complete guide to OKRs, containing everything you need to know (even exclusive slides and examples from Doerr himself.)
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-CreationMichael Skok
This is a case to exemplify how disruptive open source and co-creation can be as part of your business model. Presented by Dries Buytaert, founder of Drupal, the largest open source project on the planet.
This is part of the workshop on Game Changing Business Models - itself part of the series on Startup Secrets, by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the framework for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
Building a Compelling Value Proposition - Competitive Advantage for StartupsMichael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 1 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://www.mjskok.com/
Webinar – OKR vs KPI: Measuring Health and Safety Metrics that Mattermyosh team
Presented by Mark Wright, MD, FEFO Consulting
What’s covered?
Is your health & safety strategy effective?
Do your metrics allow you to learn, adjust and improve?
If either your strategy is wrong or metrics are in effective, there is a good chance there are lost opportunities for success.
The Objective Results (OKR) approach to setting goals is a great way to effectively support a strategy and has been used at Google, LinkedIn Airbnb, and many more. OKR’s are often complimented by Key Performance Indicators (KPI)
Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To ...Michael Skok
New version 2 - including case examples from Spotfire, Demandware, Hubspot and David Skok.
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
Startup Secrets - Have you got what it takes?Michael Skok
There is a belief in the business world that founders can’t scale. Put another way, a company’s growth curve will eventually outstrip the capabilities of its founder’s ability to remain CEO.
Although we have been using Agile mindset and processes tactically, when it comes to strategy and goal setting the waterfall command&control mindset is still the norm.
Most organizations are still using an annual, waterfall, top-down process to create a static set of goals that conflicts directly with Agile. The process is even called "cascading goals" - you can't get more waterfall than that.
OSSF 2018 - Matt Barrett of Adaptive - Open sourcing a bank's software: exact...FINOS
Banks have been users of open source software for a long time, but now they are thinking seriously about giving back. A lot of internal resistance needs to be overcome, and lots of individuals within a large investment bank truly believe their piece of custom built software provides a competitive advantage. At Adaptive, we have seen a lot of very similar internal projects at various institutions, and have formed a view about what truly constitutes competitive advantage. What is good for the organisation may not be good for a given development manager.
Further to the issues around over jealously guarding specific development efforts is the problem that what is open sourced is often far too coupled to a bank's non-open sourced tech stack. Causing more subtle difficulties in working with another bank's open sourced technology stack is that it is often implicitly coupled to their culture, processes or business model. Picking what to open source is a huge part of the challenge.
In this talk, I will give Adaptive's view on what is competitive advantage, what to open source so that it is picked up by the wider community, and actual benefits are seen.
Startup Secrets presents a lecture on how to build a game-changing business model for your unique startup. Business models can be just as disruptive as technology!
Startup Secrets - Game Changing Business ModelsMichael Skok
In our industry, it’s not uncommon for entrepreneurs to become so mono-focused on the novelty of their product that they forget to innovate sufficiently around their business model. A disruptive business model can be at least as important as a discontinuous innovation.
Startup Secrets - Getting Behind the Perfect Investor PitchMichael Skok
These days the pitch to a VC displaces the old business plan because most investors simply don’t have time to read a full business plan, and most entrepreneurs don’t have time to write one. That said, the business strategy still serves as the foundation for any presentation you create.
What is needed to build a startup? What are the milestones along the way? And how to do you pull that pitch together to get the venture attention and funding your idea deserves. This Slideshare was given at the Harvard iLab and offered:
-- The holistic checklist to think through your venture in a business like plan
-- What matters to a VC/Investor
-- How to think about your roadmap from startup to public company
Company Formation - Foundations for an Enduring Company - Competitive Advanta...Michael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 2 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
It features the case study of Acquia who participated in the workshop.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://www.mjskok.com/
Game Changing Business Models - V2! - with case examples - Competitive Advant...Michael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 3 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://www.mjskok.com/
Harvard Innovation Lab Workshop on developing the Perfect Pitch, by Michael Skok.
Michael is an entrepreneur turned venture capitalist, who has seen both sides of this. He spent 21 years as a CEO, building companies and raising over 100 million to build a number of software businesses. And then has spent the last decade as a VC seeing thousands of pitches from entrepreneurs raising money, and invested in companies that have generated over a billion dollars in value.
So with that in mind, the idea here is to give you an insider's checklist for your own pitch,
The Guide to Objectives and Key Results (OKRs)BetterWorks
Objectives and Key Results is the goal setting framework used at companies like Google, LinkedIn, and Intel. John Doerr, partner at KPCB, passed on Objectives and Key Results to Google helping them grow from 50 to 50,000 people. This is the complete guide to OKRs, containing everything you need to know (even exclusive slides and examples from Doerr himself.)
Game Changing Business Models - Case - Dries Drupal, Open Source, Co-CreationMichael Skok
This is a case to exemplify how disruptive open source and co-creation can be as part of your business model. Presented by Dries Buytaert, founder of Drupal, the largest open source project on the planet.
This is part of the workshop on Game Changing Business Models - itself part of the series on Startup Secrets, by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the framework for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
Building a Compelling Value Proposition - Competitive Advantage for StartupsMichael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 1 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://www.mjskok.com/
Webinar – OKR vs KPI: Measuring Health and Safety Metrics that Mattermyosh team
Presented by Mark Wright, MD, FEFO Consulting
What’s covered?
Is your health & safety strategy effective?
Do your metrics allow you to learn, adjust and improve?
If either your strategy is wrong or metrics are in effective, there is a good chance there are lost opportunities for success.
The Objective Results (OKR) approach to setting goals is a great way to effectively support a strategy and has been used at Google, LinkedIn Airbnb, and many more. OKR’s are often complimented by Key Performance Indicators (KPI)
Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To ...Michael Skok
New version 2 - including case examples from Spotfire, Demandware, Hubspot and David Skok.
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
Startup Secrets - Have you got what it takes?Michael Skok
There is a belief in the business world that founders can’t scale. Put another way, a company’s growth curve will eventually outstrip the capabilities of its founder’s ability to remain CEO.
Although we have been using Agile mindset and processes tactically, when it comes to strategy and goal setting the waterfall command&control mindset is still the norm.
Most organizations are still using an annual, waterfall, top-down process to create a static set of goals that conflicts directly with Agile. The process is even called "cascading goals" - you can't get more waterfall than that.
OSSF 2018 - Matt Barrett of Adaptive - Open sourcing a bank's software: exact...FINOS
Banks have been users of open source software for a long time, but now they are thinking seriously about giving back. A lot of internal resistance needs to be overcome, and lots of individuals within a large investment bank truly believe their piece of custom built software provides a competitive advantage. At Adaptive, we have seen a lot of very similar internal projects at various institutions, and have formed a view about what truly constitutes competitive advantage. What is good for the organisation may not be good for a given development manager.
Further to the issues around over jealously guarding specific development efforts is the problem that what is open sourced is often far too coupled to a bank's non-open sourced tech stack. Causing more subtle difficulties in working with another bank's open sourced technology stack is that it is often implicitly coupled to their culture, processes or business model. Picking what to open source is a huge part of the challenge.
In this talk, I will give Adaptive's view on what is competitive advantage, what to open source so that it is picked up by the wider community, and actual benefits are seen.
Startup Secrets presents a lecture on how to build a game-changing business model for your unique startup. Business models can be just as disruptive as technology!
Innovation and digital disruption in professional servicesTapmint
This is a presentation for http://tapmint.com which I gave internally at one of the world's largest professional services firms. It discusses digital disruption in financial services, professional services and accounting services.
Various models of corporate innovation are also highlighted. Case studies of 3 companies are provided - Suncorp Group, Sensis and Carsales. Finally, I provide some thoughts on implementation.
How to Manage the Product by Ticketmaster Product ManagerProduct School
In this presentation, Benjamin Golombek walks us through their journey to Product Management. Benjamin also highlights their own product as a success story and provide tips on how to transition from UX to Product Management to anyone who is interested.
In this talk, we introduce the Disciplined Entrepreneurship framework as well as the DE canvas. We end with a challenge to the founding team: "Why are you in business?"
How to Use Competitive Analysis and Strategy by YouTube PMProduct School
In the presentation, Joao Fiadeiro, discusses:
-What the key elements of strategy are: from the competitive landscape and growth strategy to business model
-How to identify the competitive landscape for a sector/industry using all the resources at our disposal; estimating a products revenue and usage
-The fundamentals of strategic thinking and how it should inform a product roadmap
The Importance of Product Validation by RetailMeNot Dir. of PMProduct School
Product vision and strategy are key components to empowering teams to act with any meaningful degree of autonomy. But is an inspiring vision and an intentional product strategy enough to guarantee success?
Any Product Manager worth her salt knows that product validation is critical to building a successful product. And yet, product validation may be one of the hardest things you'll ever do in your career. During her talk, Laura shared insights on a product validation framework that will help Product Managers avoid the most common hypothesis pitfalls, learn more about their customers, and improve and refine their ideas along the way.
Welcome to TechSoup webinar 11_30_2022.pdfTechSoup
Have you recently joined TechSoup as a member, or are you thinking about becoming a member and want to better understand how TechSoup can help your nonprofit organization?
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Solutioning Mindset, or R&D Outsourcing in Realities of Digital Transformatio...GlobalLogic Ukraine
This presentation provided ideas on how an export R&D company should change in the world of digital transformations.
It was delivered by Yuliya Dubova (AVP, GlobalLogic) at Kyiv Outsourcing Forum 2017.
A discussion of how the release of Drupal 8 and trends in the marketplace affect Drupal agencies. We’ll look at how the release of Drupal 8 has changed our target market, and propose ways for Drupal shops to thrive in this new environment.
How to Manage a Mixed Portfolio of Products by Salesforce PMProduct School
Major Takeaways:
- Conduct meaningful buy vs. build assessments: total cost of ownership, using 3rd parties to prove an internal build investment, influence their road maps
- Think big and take on risk: bring internal engineers the challenge of building better than what's out there
- Look w/in the business: Salesforce on Salesforce and other internal partnerships
Startup Secrets presents a lecture on how to build a compelling value proposition. Learn about stories, the information necessary, and the questions to ask yourself about how to show people you're worth the money!
Startup Secrets presents a lecture on how to turn products into companies! Your great idea won't stand on its own -- Figure out how to build a sustainable company around a fantastic product.
Startup Secrets presents a lecture on how to find your roadmap to success! With our introductory lecture, discover your beginning steps to creating your startup.
Startup Secrets presents a lecture on how to hire A+ talent! Learn which questions to ask, and how to assess great employees and partners for your new startup.
Startup Secrets presents a lecture on whether or not you've got what it takes to found a startup! Learn strategies for growing with and navigating your company through the beginning stages.
Startup Secrets presents a lecture on how to get behind the perfect investor pitch! Learn about what investors are looking for, and how to successfully represent your business.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
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Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
2. Confidential & Proprietary @underscorevc
Startup Secrets
Workshops
2
1. What’s Your Roadmap to Success?
2. Building a Compelling Value Proposition
3. Turning Products into Companies
4. Culture, Mission and Vision
5. Hiring A+ Talent
6. Game-Changing Business Models
7. Go to Market Strategies
8. Getting Behind the Perfect Investor Pitch
9. Funding Strategies to go the Distance
10. Have You Got What It Takes?
11. Mastering Mutual Mentorship
3. Confidential & Proprietary @underscorevc
Introductions
& Case
Examples
● Established
○ Google
● Startup
○ Acquia
○ Demandware
● Not-for-profit
○ One Laptop Per Child
○ Diagnostics For All (on the web)
3
4. Confidential & Proprietary @underscorevc
Agenda 1. Finding a Disruptive Business Model
2. Focusing on CORE differentiation
3. Multiply and Leverage it with innovation
4. Designing for high value
4
5. Confidential & Proprietary @underscorevc
What is your model for:
○ Creating
○ Delivering
○ Harnessing
VALUE?
Business
Model:
How do
you make
money?
5
6. Confidential & Proprietary @underscorevc
Today
Let’s get creative and think
specifically about startups!
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Business
Model as a
Disruptor
● Why?
○ Time to market
○ Market adoption
○ Sustainability
● Connecting the dots for you, as a founder:
○ Spend
○ Cash efficiency
○ Your ownership
○ Valuation
7
8. Confidential & Proprietary @underscorevc
The
Perfect
Startup
Storm
Disruptive
Business Model
Disruptive
Technology &
Defensible IP
New Market &
GTM
8
9. Confidential & Proprietary @underscorevc
● Change the game?
● Rewrite the rules?
● Cause an innovator’s
dilemma?
● Be as disruptive as
your technology?
New Game
New playing field
New boundaries
New rules
YOU choose players
How can
your
business
model...
9
10. Confidential & Proprietary @underscorevc
Symantec Antivirus for Mac (SAM)
Best seller – Licensed Product
Norton Antivirus for PC (NAV)
How to change the game
Best seller – Subscription Service
Example 1:
Symantec
– Many
Years Ago!
10
11. Confidential & Proprietary @underscorevc
● Dramatic!
● Game changing
○ Flipped the model on its head
■ Competitors caught off guard
○ Predictable profitable business model
● Led to solution leadership vs. battle: “Data Security”
○ Customer need met more effectively
○ More value extracted
○ 1.5 product / seat => 2.6x
Results?
11
12. Confidential & Proprietary @underscorevc
● Off balance sheet Publisher of US
products
○ Investment in Management,
Sales, Marketing, Support,
Translation & Localization
● Acquired back by US corporation
when profitable
○ Pooling of interest
○ Non-dilutive
○ Growing earnings
● Symantec example Win / Win
Example 2:
European
Software
Publishing
12
13. Confidential & Proprietary @underscorevc
Results?
13
● Win / win / win
○ Customers = better local product, support, services
○ Publishers = accelerated, off balance sheet setup of
profitable business
○ Shareholders = 97x return on original investment
● Non-technology disruptive business model
○ Economies of scale
○ Pooling of interests (tax)
○ Time shifting expense → Accretive outcome
15. Confidential & Proprietary @underscorevc
● Process or Product?
● Software or Services?
● Open or Proprietary?
● Content or Data?
● Freemium or Premium?
● Subscription or License?
Business
Model:
Sample
Questions
15
16. Confidential & Proprietary @underscorevc
First key question!
Capabilities
Of
Really
Exceptional
Value
Focus on it!
C.O.R.E.
Value
What is
Your
Core
Value?
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17. Confidential & Proprietary @underscorevc
Where is your CORE value?
■ Software/other technology
■ Data
■ Content
■ Service, support
■ User network
Disruptively monetize it!
○ To your competitive advantage
○ Where are others most vulnerable?
CORE
Cut to
the
CORE!
17
18. Confidential & Proprietary @underscorevc
● Google Apps vs. Microsoft office
○ What is the C.O.R.E for each?
■ Software, Data, Advertising?
● Don’t compete head-on
○ Microsoft Office = enterprise market
○ Google Apps = consumer market
○ Free vs. $500 license
○ Simple vs. Complicated
○ 80% solution vs. Professional Tool
Example 1:
Apps
18
19. Confidential & Proprietary @underscorevc
How can you compete with a market leader who has
80% to 90% market share?
● Don’t compete head-on
● Innovator’s Dilemma – go for low end
● Disruptive technology, business model, or market
approach
● Examples: Gmail, Google Apps, Chrome
Competing
with Market
Leaders
19
20. Confidential & Proprietary @underscorevc
● Apple vs. Google
○ What is the C.O.R.E for each?
■ Hardware, Software, Content?
● Others in Ecosystem
○ Samsung, HTC
● Alternative approaches
○ Amazon
Example 2:
Mobile
20
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● Who is winning?
● Why?
● Is technology the difference?
● Apple, Google, & Microsoft strategies
○ Always play to your strength
○ Apple Mac, Google Search, Microsoft
Windows
Android
vs.
iPhone
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● Disrupt the market leader
○ Apple disrupted carriers and manufacturers
■ Verizon, Sprint, Nokia, Motorola, RIM,
Symbian
○ Android allowed them to fight back
● Disruptive business model
○ Android is free
○ Advertising business model
○ Search, Maps, Local, Wallet, YouTube
Android
vs.
iPhone
22
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Be Open and Extensible (e.g., Software APIs)
● Enabling external multipliers to your value
● Building on yourself
● Eating your own cooking
● Being your own customer
Startup
Secret!
Co-Creating
Value
24
25. Confidential & Proprietary @underscorevc
Be Open and Extensible (e.g., Software APIs)
● Enabling external multipliers to your value
● Building on yourself
● Eating your own cooking
● Being your own customer
Open Source
● Leverage through community
● Make the customer the product manager
○ Scratching their own itch
Startup
Secret!
Co-Creating
Value
25
26. Confidential & Proprietary @underscorevc
Dries Buytaert
Founder and Project Lead Drupal
Co-Founder and CTO Acquia
http://buytaert.net
@Dries
26
27. Meet Dries 12 years ago when he started work on Drupal ...
27
Compiler books
Collection of stamps
Chess board
Assembly books
All furniture is from IKEA
Student dorm in Antwerp
where I started Drupal
28. 1 out of 50 websites in the world
10,000+ modules
300,000+ downloads/month
1.5M unique visitors/month
FREE
28
29. 71 of the World's Top 100 Universities Use Drupal
29
30. 1. Freedom to run the program
2. Freedom to study the program
3. Freedom to modify the program
4. Freedom to re-distribute the program
30
Open Source is a Software License
38. 38
Joseph Schumpeter
Economist, 1883-1950
Drupal and Open Source are Catalysts for
“Creative Destruction”
● Changes how we develop
software
● Changes how we build websites
● Changes a multi-billion dollar
industry
● Open Source enables business
model innovation
● Bonus: allows people to do well,
and do good
40. Confidential & Proprietary @underscorevc
Multiply and Leverage your CORE
Multipliers:
● Increase revenue
● Increase reach
● Increase coverage
Levers:
● Reduce time
● Reduce costs
● Reduce resources
CO
RE
Levers
Multipliers
Startup
Secret!
Multipliers
and Levers
40
41. Confidential & Proprietary @underscorevc
Multipliers:
● Added functionality
● Community reach
Levers:
● Community development
● Community marketing
Multiply AND Leverage CORE
Drupal
and
Open
Source
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CO
RE
Levers
Multipliers
42. Confidential & Proprietary @underscorevc
Multiplier Examples:
● Sales & Marketing
○ Tiered Pricing
○ Freemium
○ Channel partners
● Product
○ Slippery products *
○ “Russian Doll” Packaging *
○ Technology stacks
Lever Examples:
● Sales & Marketing
○ Web
○ Inside
○ Inbound
○ Viral
● Product, Support
○ Offshoring
○ Outsourcing
○ Crowdsourcing
○ Co-creation *
○ Technology stacks
* Covered in this presentation
Examples in Software:
CO
RE
Levers
Multipliers
Startup
Secret!
Multipliers
and Levers
42
43. Confidential & Proprietary @underscorevc 43
Get Multipliers and Levers
Working Together!
Strategies that enable Multipliers and Levers to work together
around your CORE are the real winners.
45. Confidential & Proprietary @underscorevc
● Provider of cloud-based
solutions and support for
enterprises using the open
source product Drupal
● 2000+ customers
● 250+ employees
● 150% 4 year CAGR
● Global operations
● Highly predictable and
repeatable model
● Land and expand strategy
Acquia
at a
Glance
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46. Confidential & Proprietary @underscorevc
Acquia
Business
Model
● Drupal is FREE
● It is also Open Source
● So how do you make money from FREE and Open
IP?
○ Create valuable products and services around
the CORE of Drupal
○ Use FOSS as multiplier and a lever in R&D,
sales and marketing
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48. Confidential & Proprietary @underscorevc
Free and
Open
Source
Software
(FOSS)
As a multiplier AND a lever
(in R&D, sales, marketing, and more)
Example Multipliers:
● Upsell value added
products & services
● Cloud & SaaS
Example Levers:
● Target installed base
● Expand usage through
partners
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CO
RE
Levers
Multipliers
50. Confidential & Proprietary @underscorevc
● Product feeds the business model:
○ User experience
○ Supportability
○ Maintenance, updates (= lifecycle)
○ Upgrades
○ Upsells
● Leads to two startup secrets:
○ Russian Dolls and SLIPPERY products
Designing
for
Success
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51. Confidential & Proprietary @underscorevc
• Simple
• Low to no initial cost
• Installs easily
• Proves value quickly
• Plays well with others
• Easy to use
• ROI is obvious
• Your customers can’t live without it
Think of how this improves
the Gain/Pain Ratio in our
Value Proposition Workshop
Gain
Pain
Startup
Secret!
Friction
Free,
SLIPPERY
Products
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52. Confidential & Proprietary @underscorevc
● Simple: Update your site from the browser
● Low to no initial cost: free
● Installs easy: Windows/Mac installers + SaaS
● Proves value quickly: Distributions + Start using
immediately
● Plays well with others: Lots of integrations with other
platforms
● Easy to use: Web-based
● ROI is obvious: Better, faster, cheaper
● Your customers can’t live without: flexibility and
extensibility
What
makes
Drupal
SLIPPERY?
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53. Confidential & Proprietary @underscorevc
Multi purpose strategy
○ Packaging
○ Pricing
○ Distribution
○ And more!
Startup
Secret!
Build a
Russian
Doll
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59. Confidential & Proprietary @underscorevc
Free
Adoption
59
Limited
Personal
Work Group
Corporate
Enterprise
60. Confidential & Proprietary @underscorevc
Startup
Secret!
Build a
Russian
Doll
Gives you, your partners and
your customers:
▶ Digestible starting point
▶ Up-sell Options
▶ Channel Flexibility
…and more
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Addiction before Adoption
61. Confidential & Proprietary @underscorevc
Acquire
On-board
Upsell /
Cross Sell
Acquia example = increasing LTV
“Land & Expand”
Startup
Secret!
Build a
Russian
Doll
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Addiction before Adoption
63. Confidential & Proprietary @underscorevc
Basic
Startup
Model
63
CO
RE
Levers
Multipliers
● Lifetime Value of Customer (LTV)
● Cost of Acquiring Customer (CAC)
64. Confidential & Proprietary @underscorevc
● Repeatable
● Scalable – with leverage
● Profitable / Sustainable
● Predictable
● Valuable
What
makes for
a GREAT
business
model?
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65. Confidential & Proprietary @underscorevc
Development Target
Gross Margin 80%
R&D 100%+ 15%
Sales & Marketing 10%
G&A 45%
Profit (Loss) -100% 20%
Example: Phases of a software companyPercent
of
Revenue
Spent
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67. Confidential & Proprietary @underscorevc
● Today:
○ 70% of all bookings are renewable subscriptions
○ 30% are consulting services (key differentiator)
○ 85%+ annual renewal rate for non-project work
● Long-term Model:
○ 80% renewable subscriptions
○ 20% consulting services
○ 90% annual renewal rate for non-project work
Highly
Predictable
and
Repeatable
Model
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68. Confidential & Proprietary @underscorevc
New Geographies
New Partners
New Verticals
Potential M&A
Cross-sell
Up-sell
New Sites
New Products
New Customers Existing Customers Total Revenue
Result: Disruptive Business Model for Continued Growth
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76. Confidential & Proprietary @underscorevc
Basic
Startup
Model
76
CO
RE
Levers
Multipliers
● Lifetime Value of Customer (LTV)
● Cost of Acquiring Customer (CAC)
77. Confidential & Proprietary @underscorevc
The Model
Refined –
Enabling
Retention &
Upsell
Lifecycle Value of Customer (LCV)
Cost of Acquiring & Re-Engaging Customer (CARC)
77
CORE
Levers
Multipliers
Re-Trial
Up-sell
78. Confidential & Proprietary @underscorevc
Re-
Engagement
Costs
● Must be included in CARC
● Example:
○ Support
○ Customer Service
○ Professional Services
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79. Confidential & Proprietary @underscorevc
Connecting
it to
Gain/Pain
● They are two views of the same principle:
○ Customer view = Gain/Pain
○ Vendor view = LCV/CARC
CO
RE
Levers
Multipliers
Re-Trial
Up-sell
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81. Confidential & Proprietary @underscorevc
A
Typical
Product
Life
Cycle
But it doesn’t have to be this way !
See Try Buy Fly Die
Long, costly (CAC), slow payback, short lifetime value (LTV)
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82. Confidential & Proprietary @underscorevc
Adding
Retention
and
Upsell
See Try Buy Fly Die
Re-TrialUp-sell
Extended
Lifecycle
Long, costly (CAC), slow payback, EXTENDED lifetime value (LTV)
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83. Confidential & Proprietary @underscorevc
Web
Self service
On demand
SaaS
Subscription
Open source
A
Disruptive
and
Valuable
Lifecycle
See Try Buy Fly Die
Up-sell
Extended
Lifecycle Re-Trial
Up-sell Extended
Lifecycle
Short, low cost (CARC), quick payback, extended lifecycle value (LCV)
Re-Trial
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84. Confidential & Proprietary @underscorevc
Applied
to
Software
● Installed by IT
● Customized
● Infrequent upgrades
● Proprietary
● License
1990+ 2010+
✓ On demand, SaaS
✓ Web based
✓ Self service
✓ Open Source
✓ Subscription
…a fundamentally
disruptive and
more valuable
business model!
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97. Confidential & Proprietary @underscorevc
Summary
● Disruptive Business Model – as
significant as Technology
● Focus on CORE differentiation
● Multiply and Leverage it with
innovation like:
○ Co-Creation
○ Strategic Partners
○ Russian Doll Packaging
○ And Friction Free, SLIPPERY
products
● Design for high value using LCV &
CARC
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