Does	
  Silicon	
  Valley	
  Style	
  	
  
Work	
  in	
  Your	
  Place?	
  
~	
  Seek	
  a	
  right	
  style	
  ~	
Chikafu...
This slide shows my thoughts on how to
launch and foster high-value start-ups
outside the United States.
Chikafuji, Ryu(Ta...
SILICON	
  VALLEY	
Part	
  I
The	
  most	
  significant	
  ability	
  for	
  business	
  is	
  
empathy,	
  the	
  ability	
  to	
  understand	
  and	
 ...
Empathy	
  is	
  the	
  source	
  of	
  both	
  
encouragements	
  and	
  inspiraJons	
  
which	
  make	
  your	
  team	
 ...
Empathy	
Inspira2on	
Encouragement	
Imagina:on	
Mo:va:on	
Crea:vity	
Passion	
InnovaJon
Empathy	
  works	
  as	
  a	
  compass,	
  map	
  and	
  
sails.	
  A	
  start-­‐up	
  team	
  without	
  it	
  can’t	
  
...
There	
  are	
  two	
  types	
  of	
  acquisiJon	
  for	
  
a	
  start-­‐up	
  team	
  to	
  acquire	
  empathy,	
  
A.  Be ardent fans of your products /
service, and have “the right discipline
to think through whether a lot of other
peop...
B.  Build a start-up team with seasoned
professionals in your business area.
Social	
  media	
  start-­‐ups,	
  like	
  Facebook,	
  
TwiPer,	
  etc.,	
  took	
  type	
  A	
  approach.	
  	
  
If	
  we	
  plot	
  the	
  entry	
  points	
  of	
  these	
  
start-­‐ups	
  on	
  the	
  graph	
  below,	
  then	
Needs/M...
they	
  were	
  here	
Needs/Market	
<unknown>	
Technical	
  
Challenge	
<exis:ng>	
  	
<low>	
<high>	
Facebook	
  /	
  Twi...
There	
  was	
  liPle	
  technology	
  risk.	
  Market	
  risk	
  
was	
  their	
  real	
  challenge.	
  But	
  nobody	
  ...
The	
  start-­‐up	
  teams	
  had	
  empathy	
  because	
  
they	
  were	
  big	
  fans	
  of	
  their	
  service.	
  	
  ...
Needs/Market	
<unknown>	
Technical	
  
Challenge	
<exis:ng>	
  	
<low>	
<high>	
Let	
  us	
  think	
  about	
  
this	
  ar...
The	
  most	
  significant	
  feature	
  of	
  Silicon	
  
Valley	
  is	
  generous	
  supplies	
  of	
  talents.	
  
Crazy	
  tech	
  guys	
  and	
  flighty	
  investors	
  are	
  
not	
  the	
  only	
  residents	
  in	
  Silicon	
  Valley’...
There	
  are	
  a	
  plenty	
  of	
  seasoned	
  
professionals	
  in	
  markeJng,	
  sales,	
  
finance,	
  IP,	
  logisJc...
…	
  from	
  a	
  variety	
  of	
  business	
  areas,	
  and	
  
from	
  all	
  over	
  the	
  world.	
  
If	
  an	
  entrepreneur	
  has	
  a	
  really	
  great	
  idea,	
  	
  
then	
  he/she	
  can	
  build	
  a	
  team	
  with	
  
seasoned	
  professionals.	
  
VP,	
  Marke:ng.	
  
I	
  have	
  2...
Such	
  a	
  team	
  can	
  quickly	
  acquire	
  empathy.	
  
Successful	
  Silicon	
  Valley	
  entrepreneurs	
  
have	
  an	
  average	
  of	
  13	
  years	
  professional	
  
experi...
The	
  average	
  age	
  of	
  founders	
  in	
  Silicon	
  Valley	
  
exceeds	
  40	
  when	
  they	
  started,	
  even	
...
M.	
  Zuckerberg	
  
(Facebook)	
J.	
  Bezos	
  
(Amazon)	
R.	
  Hoffman	
  
(LinkedIn)	
B.	
  V.	
  VonderschmiG	
  
(Xili...
In	
  general,	
  experience	
  maPers.
Entry	
  points	
  when	
  they	
  started	
Facebook	
  /	
  TwiGer	
Salesforce	
Adobe	
  Systems	
Intui:ve	
  Surgical	
Q...
Let	
  us	
  classify	
  them	
  into	
  zones	
  of:
Needs/Market	
<unknown>	
Technical	
  
Challenge	
<exis:ng>	
  	
<low>	
<high>	
Too	
  risky	
  to	
  
invest	
  zone	
Too...
•  “Empathy”	
  is	
  the	
  most	
  important	
  ability	
  
to	
  start	
  a	
  new	
  business.	
  The	
  way	
  to	
  ...
Due to recent mass-media reports, people
may embrace the illusion that most venture
investment go to “Gusto Zone”.
But the...
0%	
  
10%	
  
20%	
  
30%	
  
40%	
  
50%	
  
60%	
  
70%	
  
80%	
  
90%	
  
100%	
  
Other	
  
Business	
  Products	
  ...
0%	
  
10%	
  
20%	
  
30%	
  
40%	
  
50%	
  
60%	
  
70%	
  
80%	
  
90%	
  
100%	
  
Other	
  
Business	
  Products	
  ...
0%	
  
10%	
  
20%	
  
30%	
  
40%	
  
50%	
  
60%	
  
70%	
  
80%	
  
90%	
  
100%	
  
Other	
  
Healthcare	
  Services	
...
0%	
  
10%	
  
20%	
  
30%	
  
40%	
  
50%	
  
60%	
  
70%	
  
80%	
  
90%	
  
100%	
  
Other	
  
Healthcare	
  Services	
...
Top 10 deals in Silicon Valley: Q4/2011	
Company	
  name	
 $million	
 Area	
  of	
  business	
Dropbox	
 250	
 Sokware,	
  ...
You may forget it, but the Professional
Zone is still a really Cool Zone.
THE	
  REST	
  OF	
  THE	
  WORLD	
Part	
  II
Needs/Market	
<unknown>	
Technical	
  
Challenge	
<exis:ng>	
  	
<low>	
<high>	
StarJng	
  in	
  this	
  zone	
  is	
  OK	...
Actually,	
  China’s	
  Gusto	
  Zone	
  is	
  crazy	
  
hot	
  as	
  well	
  as	
  Silicon	
  Valley	
  because	
  of	
  ...
*	
  Examples	
  of	
  Vietnamese	
  start-­‐ups	
Not	
  only	
  in	
  China	
  and	
  Japan	
  but	
  also	
  other	
  
n...
The	
  Gusto	
  Zone	
  is	
  hot	
  but	
  it’s	
  too	
  hot	
  
for	
  me,	
  so	
  my	
  interest	
  here	
  is	
  
Needs/Market	
<unknown>	
Technical	
  
Challenge	
<exis:ng>	
  	
<low>	
<high>	
this	
  “Cool”	
  zone	
Professional	
  Zo...
A	
  successful	
  story	
  in	
  the	
  Professional	
  
Zone	
  in	
  Silicon	
  Valley.
InnovaJon	
Empathy	
  Start-­‐up	
  Team	
idea!	
Professional	
  
Experiences	
A	
  founder	
  had	
  experience	
  in	
  ...
InnovaJon	
Empathy	
  Start-­‐up	
  Team	
idea!	
Seasoned	
  professionals	
  were	
  hired	
  not	
  only	
  	
  
from	
 ...
InnovaJon	
Empathy	
  Start-­‐up	
  Team	
idea!	
They	
  made	
  full	
  use	
  of	
  their	
  empathy	
  from	
  
day	
  ...
InnovaJon	
Empathy	
  Start-­‐up	
  Team	
idea!	
InspiraJon	
  fostered	
  creaJvity	
  and	
  
encouragement	
  led	
  pa...
Another	
  story	
  in	
  the	
  Professional	
  Zone,	
  
happened	
  somewhere.	
  
A	
  founder	
  got	
  a	
  great	
  idea	
  and	
  decided	
  to	
  
start	
  a	
  new	
  business.
Because	
  it	
  was	
  difficult	
  for	
  a	
  start-­‐up	
  to	
  hire	
  
seasoned	
  professionals,	
  the	
  founder	
...
The	
  start-­‐up	
  team	
  couldn’t	
  understand	
  and	
  
share	
  the	
  feeling	
  of	
  the	
  target	
  customers...
The	
  window	
  of	
  opportunity	
  was	
  closing.	
  	
  
The	
  idea	
  failed	
  to	
  become	
  an	
  innovaJon.	
 ...
In	
  many	
  areas	
  in	
  the	
  world,	
  it	
  is	
  fairly	
  
difficult	
  to	
  organize	
  a	
  start-­‐up	
  team	...
PracJcally,	
  a	
  start-­‐up	
  team	
  needs	
  
a	
  kind	
  of	
  preparaJon	
  period	
  to	
  
culJvate	
  the	
  t...
Case	
  Study	
  
Tokyo	
  Electron	
  Limited,	
  a	
  world	
  leading	
  
manufacturer	
  of	
  LSI	
  and	
  FPD	
  produc:on	
  
equipm...
Tokyo	
  Electron	
  Laboratories,	
  Inc.(*)	
  was	
  founded	
  	
  
in	
  1963,	
  as	
  a	
  trading	
  company.	
  T...
In	
  1969,	
  the	
  company	
  entered	
  the	
  market	
  to	
  
design	
  and	
  develop	
  a	
  semiconductor	
  prod...
Case-­‐2	
  
Acer(Mil:tech)	
  was	
  established	
  in	
  Taiwan	
  in	
  1976	
  
as	
  a	
  trader	
  of	
  electronic	...
Acer	
  released	
  “Micro-­‐Professor	
  MPF-­‐I”	
  in	
  1981,	
  
the	
  company’s	
  first	
  computer	
  product.	
  ...
I	
  would	
  say	
  that	
  several	
  years	
  of	
  experiences	
  in	
  
sales	
  and	
  consul:ng	
  fostered	
  the	...
Crea:ve	
  Technology,	
  a	
  Singapore-­‐based	
  company	
  
established	
  in	
  1981	
  as	
  a	
  computer	
  repair...
In	
  1987,	
  the	
  company	
  released	
  their	
  own	
  
product,	
  a	
  sound	
  generator	
  card	
  for	
  IBM	
 ...
About	
  six	
  years	
  experience	
  might	
  enable	
  the	
  
company	
  to	
  understand	
  and	
  share	
  the	
  fe...
Case-­‐4	
  
Huawei	
  Technologies	
  is	
  a	
  networking	
  and	
  
telecommunica:ons	
  equipment	
  and	
  services	...
The	
  company	
  was	
  established	
  in	
  1987	
  as	
  sales	
  
agent	
  for	
  Hong	
  Kong’s	
  PBX-­‐switch	
  co...
In	
  1992,	
  Huawei	
  launched	
  digital	
  switching	
  
solu:on	
  and	
  generated	
  sales	
  RMB	
  1.5Billion	
 ...
Huawei	
  began	
  interna:onal	
  expansion	
  in	
  1997,	
  
and	
  75%	
  of	
  the	
  sales	
  is	
  generated	
  fro...
Case-­‐5	
  
DeNA	
  is	
  the	
  world’s	
  largest	
  mobile	
  social	
  gaming	
  
plasorm	
  provider,	
  headquarter...
DeNA	
  was	
  founded	
  in	
  1999	
  as	
  an	
  eBay	
  clone	
  
service	
  provider.	
  	
  
At	
  that	
  :me	
  eB...
DeNA	
  struggled	
  and	
  decided	
  to	
  shik	
  their	
  
emphasis	
  from	
  PC	
  to	
  mobile	
  in	
  2002.	
  	
...
Six	
  years	
  had	
  passed	
  since	
  establishment,	
  the	
  
company	
  became	
  an	
  experienced	
  professional...
All	
  of	
  these	
  companies	
  took	
  a	
  similar	
  route	
  
regardless	
  of	
  the	
  founder’s	
  intenJon.	
  ...
InnovaJon	
 Empathy	
  
idea!	
in	
  Emerging	
  
market	
   Prepara1on	
  Period	
  
Start	
 Acquire	
  Empathy	
Vision!	...
Every	
  company	
  entered	
  emerging	
  business	
  area	
  
Business	
  Area	
Business	
  when	
  they	
  
entered	
To...
Every	
  company	
  entered	
  emerging	
  business	
  area	
  
as	
  a	
  non-­‐technology	
  company.	
  
Business	
  Ar...
Every	
  company	
  entered	
  emerging	
  business	
  area	
  
as	
  a	
  non-­‐technology	
  company.	
  
Business	
  Ar...
Prepara1on	
  Period	
  
Acquire	
  Empathy	
These	
  companies	
  took	
  preparaJon	
  period	
  
regardless	
  of	
  th...
Empathy	
  is	
  the	
  most	
  important	
  ability	
  for	
  
business.	
  And	
  this	
  kind	
  of	
  preparaJon	
  
p...
communicate	
  with	
  target	
  customers,	
  
True marketing says, “These are the satisfactions
the customer looks for, ...
enhance	
  a	
  human	
  network,	
  
Today knowledge has power. It controls access to
opportunity and advancement.
– Pete...
and	
  build	
  a	
  team.	
  	
  
Alone we can do so little; together we can do so much.
– Helen Keller
PreparaJon	
  period	
  is	
  a	
  key	
  process.	
  
More	
  haste,	
  less	
  speed	
  
Four	
  Steps	
  	
  
for	
  preparaJon	
  period
I.  Define	
  target	
  market	
  
II.  Seek	
  a	
  business	
  opportunity	
  in	
  
the	
  preparaJon	
  period	
  
III....
I.	
  Define	
  target	
  market	
•  First	
  of	
  all,	
  make	
  sure	
  that	
  you	
  have	
  a	
  
passion	
  to	
  d...
II.	
  Seek	
  a	
  business	
  opportunity	
  
in	
  the	
  preparaJon	
  period	
•  The	
  purpose	
  is	
  to	
  develo...
III.	
  Start	
  small,	
  grow	
  smart	
•  Start	
  small(of	
  course)	
  
•  Enhance	
  a	
  human	
  network	
  and	
...
IV.	
  “Keep	
  looking,	
  don’t	
  sePle”	
idea!	
•  Look	
  for	
  new	
  business	
  idea	
  which	
  makes	
  
your	
...
Summary	
  of	
  Part	
  II	
•  In	
  many	
  places	
  in	
  the	
  world,	
  a	
  start-­‐up	
  
team	
  needs	
  a	
  k...
THANK	
  YOU	
fromBayArea.com
Does silicon valley style work in your place?
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Does silicon valley style work in your place?

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In many places, people have been trying to build their own “Silicon Valley”. But none of them were successful as long as I know. Look at the world from a different perspective, there should be better examples. It might be old but new style. This slide shows my thoughts on starting a business outside USA.

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Does silicon valley style work in your place?

  1. 1. Does  Silicon  Valley  Style     Work  in  Your  Place?   ~  Seek  a  right  style  ~ Chikafuji,  Ryu   fromBayArea.com Beta  version
  2. 2. This slide shows my thoughts on how to launch and foster high-value start-ups outside the United States. Chikafuji, Ryu(Taka Kondo) April, 2012
  3. 3. SILICON  VALLEY Part  I
  4. 4. The  most  significant  ability  for  business  is   empathy,  the  ability  to  understand  and   share  the  feelings  of  the  target  customers.  
  5. 5. Empathy  is  the  source  of  both   encouragements  and  inspiraJons   which  make  your  team  innovaJve.  
  6. 6. Empathy Inspira2on Encouragement Imagina:on Mo:va:on Crea:vity Passion InnovaJon
  7. 7. Empathy  works  as  a  compass,  map  and   sails.  A  start-­‐up  team  without  it  can’t   voyage  to  the  new  world.      
  8. 8. There  are  two  types  of  acquisiJon  for   a  start-­‐up  team  to  acquire  empathy,  
  9. 9. A.  Be ardent fans of your products / service, and have “the right discipline to think through whether a lot of other people are going to want it(*)”. (*)  Steve  Jobs,  CNN  Money,  Aug/03/2008 Apple  iPod’s  adver2sement
  10. 10. B.  Build a start-up team with seasoned professionals in your business area.
  11. 11. Social  media  start-­‐ups,  like  Facebook,   TwiPer,  etc.,  took  type  A  approach.    
  12. 12. If  we  plot  the  entry  points  of  these   start-­‐ups  on  the  graph  below,  then Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high>
  13. 13. they  were  here Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high> Facebook  /  TwiGer
  14. 14. There  was  liPle  technology  risk.  Market  risk   was  their  real  challenge.  But  nobody  had   markeJng  experience  in  this  area  because   there  had  been  no  such  market.    
  15. 15. The  start-­‐up  teams  had  empathy  because   they  were  big  fans  of  their  service.     Probably,  they  also  had  the  right  discipline   to  think  through  whether  a  lot  of  other   people  were  going  to  want  it.  
  16. 16. Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high> Let  us  think  about   this  area. Facebook  /  TwiGer Type  B  approach  can  be  available   in  the  other  area  
  17. 17. The  most  significant  feature  of  Silicon   Valley  is  generous  supplies  of  talents.  
  18. 18. Crazy  tech  guys  and  flighty  investors  are   not  the  only  residents  in  Silicon  Valley’s   business  community.  
  19. 19. There  are  a  plenty  of  seasoned   professionals  in  markeJng,  sales,   finance,  IP,  logisJcs,  etc.,  …  
  20. 20. …  from  a  variety  of  business  areas,  and   from  all  over  the  world.  
  21. 21. If  an  entrepreneur  has  a  really  great  idea,    
  22. 22. then  he/she  can  build  a  team  with   seasoned  professionals.   VP,  Marke:ng.   I  have  20+  years  experience   in  this  business  area.   13  years 10  years VP,  Sales   16  years VP,  Engineering   12  years 12  years
  23. 23. Such  a  team  can  quickly  acquire  empathy.  
  24. 24. Successful  Silicon  Valley  entrepreneurs   have  an  average  of  13  years  professional   experiences  before  they  started. *  Research  of  UC  Davis  &  New  Hampshire  Univ.,  2006
  25. 25. The  average  age  of  founders  in  Silicon  Valley   exceeds  40  when  they  started,  even  this   web  business  heyday. *  For  instance,  Vivek  Wadhwa,  goo.gl/pfBdV
  26. 26. M.  Zuckerberg   (Facebook) J.  Bezos   (Amazon) R.  Hoffman   (LinkedIn) B.  V.  VonderschmiG   (Xilinx) N.  C.  Warren   (eHarmony) R.  Shapiro   (LegalZoom) J.  E.  Warnock   (Adobe  Systems) J.  Dorsey   (TwiGer) F.  H.  Moll   (Intui:ve  Surgical) M.  Benioff   (Salesforce) I.  M.  Jacobs   (Qualcomm) W.  A.  Porter   (E*Trade) 20 30 40 50 60 70 Age  when  they  started
  27. 27. In  general,  experience  maPers.
  28. 28. Entry  points  when  they  started Facebook  /  TwiGer Salesforce Adobe  Systems Intui:ve  Surgical Qualcomm Xilinx eHarmony LegalZoom/   E*Trade Amazon LinkedIn Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high>
  29. 29. Let  us  classify  them  into  zones  of:
  30. 30. Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high> Too  risky  to   invest  zone Too  compe11ve  to   invest  zone Professional  Zone Facebook  /  TwiGer Salesforce Adobe  Systems Intui:ve  Surgical Qualcomm Xilinx eHarmony LegalZoom/   E*Trade Amazon LinkedIn Gusto  Zone
  31. 31. •  “Empathy”  is  the  most  important  ability   to  start  a  new  business.  The  way  to   acquire  it  is:   – Gusto  Zone’s  start-­‐up:   • Build  a  start-­‐up  team  with  ardent  fans  of  the   service  because  no  seasoned  professionals   exist.   – Professional  Zone’s  start-­‐up:   • Build  a  start-­‐up  team  with  seasoned   professionals.   Summary  of  Part  I
  32. 32. Due to recent mass-media reports, people may embrace the illusion that most venture investment go to “Gusto Zone”. But the reality is: Appendix
  33. 33. 0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Other   Business  Products  and  Services   Healthcare  Services   Retailing/Distribu:on   Computers  and  Peripherals   Networking  and  Equipment   Financial  Services   Telecommunica:ons   Electronics/Instrumenta:on   Semiconductors   Consumer  Products  and  Services   Media  and  Entertainment   IT  Services   Medical  Devices  and  Equipment   Industrial/Energy   Biotechnology   Sokware   US Investments by Industry 2011(Money) (*  based  on  PwC's  "Shaking  the  MoneyTreeTM  Q4/Full-­‐Year  2011  Update")
  34. 34. 0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Other   Business  Products  and  Services   Healthcare  Services   Retailing/Distribu:on   Computers  and  Peripherals   Networking  and  Equipment   Financial  Services   Telecommunica:ons   Electronics/Instrumenta:on   Semiconductors   Consumer  Products  and  Services   Media  and  Entertainment   IT  Services   Medical  Devices  and  Equipment   Industrial/Energy   Biotechnology   Sokware   US Investments by Industry 2011(Money) (*  based  on  PwC's  "Shaking  the  MoneyTreeTM  Q4/Full-­‐Year  2011  Update") Gusto  Zone  is  just   part  of  this  area Professional  Zone
  35. 35. 0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Other   Healthcare  Services   Computers  and  Peripherals   Retailing/Distribu:on   Networking  and  Equipment   Financial  Services   Electronics/Instrumenta:on   Business  Products  and  Services   Semiconductors   Consumer  Products  and  Services   Telecommunica:ons   Industrial/Energy   Medical  Devices  and  Equipment   IT  Services   Media  and  Entertainment   Biotechnology   Sokware   US Investments by Industry 2011(# of deals) (*  based  on  PwC's  "Shaking  the  MoneyTreeTM  Q4/Full-­‐Year  2011  Update")
  36. 36. 0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Other   Healthcare  Services   Computers  and  Peripherals   Retailing/Distribu:on   Networking  and  Equipment   Financial  Services   Electronics/Instrumenta:on   Business  Products  and  Services   Semiconductors   Consumer  Products  and  Services   Telecommunica:ons   Industrial/Energy   Medical  Devices  and  Equipment   IT  Services   Media  and  Entertainment   Biotechnology   Sokware   (*  based  on  PwC's  "Shaking  the  MoneyTreeTM  Q4/Full-­‐Year  2011  Update") Gusto  Zone  is  just   part  of  this  area Professional  Zone US Investments by Industry 2011(# of deals)
  37. 37. Top 10 deals in Silicon Valley: Q4/2011 Company  name $million Area  of  business Dropbox 250 Sokware,  file  storage  and  sharing  service BeGer  Place 200 Cleantech,  electric  vehicle  transporta:on S:on 100 Cleantech,  thin-­‐film  solar  module Portola   Pharmaceu:cals 89 Biotech,  biopharmaceu:cal Soraa 89 Cleantech,  LED  bulb Workday 85 Sokware,  enterprise  business  sokware Fulcrum  BioEnergy 69 Cleantech,  bio  energy Hearslow 65 Medical  device  &  equipment,  Guiding  system Box 62 Sokware,  file  storage  and  sharing  service Lithium   Technologies 53 Sokware,  social  CRM  solu:on (*  based  on  PwC's  "Shaking  the  MoneyTreeTM  Q4/Full-­‐Year  2011  Update")
  38. 38. You may forget it, but the Professional Zone is still a really Cool Zone.
  39. 39. THE  REST  OF  THE  WORLD Part  II
  40. 40. Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high> StarJng  in  this  zone  is  OK  because     no  seasoned  professional  is  required. Professional  Zone Gusto     Zone
  41. 41. Actually,  China’s  Gusto  Zone  is  crazy   hot  as  well  as  Silicon  Valley  because  of   its  domesJc  market  growth.   0   100   200   300   400   500   600   700   800   China’s  internet  popula:on  will  be   almost  double  US  and  Japan   combined  by  2015(*).     (*)  Data  from  The  Boston  Consul:ng  Group (Million)
  42. 42. *  Examples  of  Vietnamese  start-­‐ups Not  only  in  China  and  Japan  but  also  other   naJons’  Gusto  Zone  are  also  hot  even  if   their  domesJc  markets  are  sJll  small.  
  43. 43. The  Gusto  Zone  is  hot  but  it’s  too  hot   for  me,  so  my  interest  here  is  
  44. 44. Needs/Market <unknown> Technical   Challenge <exis:ng>   <low> <high> this  “Cool”  zone Professional  Zone Gusto   Zone
  45. 45. A  successful  story  in  the  Professional   Zone  in  Silicon  Valley.
  46. 46. InnovaJon Empathy  Start-­‐up  Team idea! Professional   Experiences A  founder  had  experience  in  the  field   related  to  the  target  market  –  as  a  tech   guy,  marketer,  researcher,  or  as  a  user.  
  47. 47. InnovaJon Empathy  Start-­‐up  Team idea! Seasoned  professionals  were  hired  not  only     from  Silicon  Valley  but  also  globally.   Experienced   Professionals
  48. 48. InnovaJon Empathy  Start-­‐up  Team idea! They  made  full  use  of  their  empathy  from   day  one,  and  got  lots  of  inspiraJon  and   encouragement  through  their  acJviJes. Inspira:on   Encouragement
  49. 49. InnovaJon Empathy  Start-­‐up  Team idea! InspiraJon  fostered  creaJvity  and   encouragement  led  passion.  Finally,     the  original  idea  became  an  innovaJon. Crea:vity   Passion
  50. 50. Another  story  in  the  Professional  Zone,   happened  somewhere.  
  51. 51. A  founder  got  a  great  idea  and  decided  to   start  a  new  business.
  52. 52. Because  it  was  difficult  for  a  start-­‐up  to  hire   seasoned  professionals,  the  founder  had  to   hire  junior  and  amateur  guys  locally. Start-­‐up  Team
  53. 53. The  start-­‐up  team  couldn’t  understand  and   share  the  feeling  of  the  target  customers,   and  wasted  too  much  Jme.     Start-­‐up  Team Chaos Far  from   Empathy…
  54. 54. The  window  of  opportunity  was  closing.     The  idea  failed  to  become  an  innovaJon.   Start-­‐up  Team Chaos The  idea  failed  to   become  innova:on Give  up
  55. 55. In  many  areas  in  the  world,  it  is  fairly   difficult  to  organize  a  start-­‐up  team   with  experienced  professionals(*).     (*)  Israel  may  be  an  excep:on,  the  na:on  has  great  talent  pool  for  high-­‐tech  start-­‐ups;   furthermore,  many  Israeli  start-­‐ups  easily  move  to  Silicon  Valley.  
  56. 56. PracJcally,  a  start-­‐up  team  needs   a  kind  of  preparaJon  period  to   culJvate  the  team’s  Empathy.    
  57. 57. Case  Study  
  58. 58. Tokyo  Electron  Limited,  a  world  leading   manufacturer  of  LSI  and  FPD  produc:on   equipment,  the  company  name  became   synonymous  with  “High-­‐Tech  company”   in  Japan.   Case-­‐1   Revenue    $8.04  Billion(2011)   Net  income  $865  Million(2011)   Market  Cap  $9.83  Billion  (April,  25,  2012)  
  59. 59. Tokyo  Electron  Laboratories,  Inc.(*)  was  founded     in  1963,  as  a  trading  company.  The  company   imported  cuzng-­‐edge  technology  products  such   as  IC  testers,  electronic  components  and   semiconductor  produc:on  equipment  into  Japan.       (*)  Today’s  Tokyo  Electron  Limited.  
  60. 60. In  1969,  the  company  entered  the  market  to   design  and  develop  a  semiconductor  produc:on   equipment.  About  five  years  experience  in  sales   and  customer  support  enabled  the  company  to   acquire  the  ability  to  understand  and  share  the   feeling  of  the  target  customers.  
  61. 61. Case-­‐2   Acer(Mil:tech)  was  established  in  Taiwan  in  1976   as  a  trader  of  electronic  parts  and  a  consultant  in   the  use  of  microprocessor  technologies.     (*)  Ref:  Acer’s  web  site  and  Wikipedia
  62. 62. Acer  released  “Micro-­‐Professor  MPF-­‐I”  in  1981,   the  company’s  first  computer  product.     The  company  obtained  interna:onal  reputa:on   through  the  success  of  “Micro-­‐Professor”  series,   especially,  in  European  market  during  1980s.       Micro-­‐Professor  MPF-­‐I Photo  by  “Toytoy  on  en.wikipedia”
  63. 63. I  would  say  that  several  years  of  experiences  in   sales  and  consul:ng  fostered  the  ability  to   understand  and  share  the  feeling  of  their  target   customers.     Acer  group  became  one  of  the  biggest  PC  maker   in  the  world;  the  company  owns  Gateway,   Packard  Bell,  BenQ,  AUO,  AOpen,  etc.  
  64. 64. Crea:ve  Technology,  a  Singapore-­‐based  company   established  in  1981  as  a  computer  repair  shop.     The  company  ini:ally  treated  the  Apple  II   computer,  then  IBM  PCs.     Case-­‐3   Apple  II,  Photo  by  Marcin  Wichary
  65. 65. In  1987,  the  company  released  their  own   product,  a  sound  generator  card  for  IBM  PC   architecture,  widely  known  as  “Sound  Blaster”.     *  Ref:  “Wikipedia  –  Crea:ve  Technology”
  66. 66. About  six  years  experience  might  enable  the   company  to  understand  and  share  the  feeling  of   target  users.  As  you  may  know,  “Sound  Blaster”   dominated  the  PC  audio  market  during  1990s.    
  67. 67. Case-­‐4   Huawei  Technologies  is  a  networking  and   telecommunica:ons  equipment  and  services   company  headquartered  in  Shenzhen,  China.   Revenue      $29.3Bilion   Net  Profit      $3.8Bilion   Employee-­‐owned  corpora:on   (2010)   *1CNY=0.16  USD
  68. 68. The  company  was  established  in  1987  as  sales   agent  for  Hong  Kong’s  PBX-­‐switch  company.     In  1990,  the  company  embarked  on  research  and   commercializa:on  of  their  own  PBX  technologies   targe:ng  hotels  and  small  enterprises.   Experience  in  sales  and  support  must  advance   their  empathy  to  develop  their  own  products.    
  69. 69. In  1992,  Huawei  launched  digital  switching   solu:on  and  generated  sales  RMB  1.5Billion  in   1995.  Huawei  has  con:nued  to  invest  in   technologies,  and  46%  of  the  110,000  employees   are  engaged  in  R&D.    
  70. 70. Huawei  began  interna:onal  expansion  in  1997,   and  75%  of  the  sales  is  generated  from  overseas   markets  in  2010.     Huawei  was  ranked  5th  most  innova:ve   company  in  the  world  by  Fast  Company  in  2010.    
  71. 71. Case-­‐5   DeNA  is  the  world’s  largest  mobile  social  gaming   plasorm  provider,  headquarters  in  Tokyo.     Revenue      $1.4Bilion   Opera:ng  margin                      50%   Market  cap    $4.7Bilion
  72. 72. DeNA  was  founded  in  1999  as  an  eBay  clone   service  provider.     At  that  :me  eBay  hadn’t  entered  the  Japanese   market,  but  Yahoo!  Auc:on  was  launched  at   the  same  :me.   (*)  NTT  Docomo  started  i-­‐mode,  the  world  first  mobile  internet  service,  in  1999.
  73. 73. DeNA  struggled  and  decided  to  shik  their   emphasis  from  PC  to  mobile  in  2002.     In  2005,  when  the  mobile  auc:on  service  was  just   star:ng  to  take  off,  the  company  got  an  idea  called   “mobile  social  gaming  plasorm”.    
  74. 74. Six  years  had  passed  since  establishment,  the   company  became  an  experienced  professional   team.  The  mobile  social  gaming  plasorm,   “mobage”  was  launched  very  smoothly,  and  the   business  has  been  growing  extremely  quick.  
  75. 75. All  of  these  companies  took  a  similar  route   regardless  of  the  founder’s  intenJon.    
  76. 76. InnovaJon Empathy   idea! in  Emerging   market   Prepara1on  Period   Start Acquire  Empathy Vision!  
  77. 77. Every  company  entered  emerging  business  area   Business  Area Business  when  they   entered Tokyo  Electron   Semiconductor   (1963) Trader Acer Microprocessor   (1976) Trader  and   Consultant Crea:ve   Technologies Personal  Computer   (1981) Repair  Shop Huawei Telecommunica:on   (1987) Sales  Agent DeNA E-­‐Commerce     (1999) eBay  Clone
  78. 78. Every  company  entered  emerging  business  area   as  a  non-­‐technology  company.   Business  Area Business  when  they   entered Tokyo  Electron   Semiconductor   (1963) Trader Acer Microprocessor   (1976) Trader  and   Consultant Crea:ve   Technologies Personal  Computer   (1981) Repair  Shop Huawei Telecommunica:on   (1987) Sales  Agent DeNA E-­‐Commerce     (1999) eBay  Clone
  79. 79. Every  company  entered  emerging  business  area   as  a  non-­‐technology  company.   Business  Area Business  when  they   entered Tokyo  Electron   Semiconductor   (1963) Trader Acer Microprocessor   Trader  and   Consultant Crea:ve   Technologies Personal  Computer   (1981) Repair  Shop Huawei Telecommunica:on   (1987) Sales  Agent DeNA E-­‐Commerce     (1999) eBay  Clone Prepara1on  Period   Acquire  Empathy
  80. 80. Prepara1on  Period   Acquire  Empathy These  companies  took  preparaJon  period   regardless  of  the  founder’s  intenJon.     Trader   Consultant   Sales  agent   Repair  shop   Clone  Service   …
  81. 81. Empathy  is  the  most  important  ability  for   business.  And  this  kind  of  preparaJon   period  develops  start-­‐up  team’s  empathy:  
  82. 82. communicate  with  target  customers,   True marketing says, “These are the satisfactions the customer looks for, values, and needs.” – Peter F. Drucker
  83. 83. enhance  a  human  network,   Today knowledge has power. It controls access to opportunity and advancement. – Peter F. Drucker
  84. 84. and  build  a  team.     Alone we can do so little; together we can do so much. – Helen Keller
  85. 85. PreparaJon  period  is  a  key  process.  
  86. 86. More  haste,  less  speed  
  87. 87. Four  Steps     for  preparaJon  period
  88. 88. I.  Define  target  market   II.  Seek  a  business  opportunity  in   the  preparaJon  period   III.  Start  small,  grow  smart   IV.  “Keep  looking,  don’t  sePle”  
  89. 89. I.  Define  target  market •  First  of  all,  make  sure  that  you  have  a   passion  to  do  business  in  the  target  market.   •  Emerging  business  area  is  good,  but  not   limited  to  so  long  as  you  and  your  folks  have   a  passion  for  the  business  area(*).     (*)  For  example,  a  UK  manufacturer,  “Dyson”  successfully  entered  the  vacuum  cleaner   market,  a  saturated  market,  with  cuVng-­‐edge  technologies.  He  had  worked  as  a  licenser   for  14  years  a[er  designing  prototype,  then  established  Dyson  Ltd.
  90. 90. II.  Seek  a  business  opportunity   in  the  preparaJon  period •  The  purpose  is  to  develop  your  team’s  ability   to  understand  and  share  the  feeling  of  the   target  customers.  The  following  are  examples   of  businesses  which  enable  you  to  develop:   Ø  Importer/sales  agent   Ø  Technology  consultant   Ø  Repair  service  firm   Ø  Clone  service  provider  /  Clone  product  maker   etc.  
  91. 91. III.  Start  small,  grow  smart •  Start  small(of  course)   •  Enhance  a  human  network  and  uJlize   (open)  innovaJon  system   Ø  Universi:es  /  Na:onal  Ins:tutes   Ø  Professionals  in  other  industrial  fields   Ø  Foreign  high-­‐tech  companies   etc.     •  Organize  internal  R&D  team  as  early  as   possible.    
  92. 92. IV.  “Keep  looking,  don’t  sePle” idea! •  Look  for  new  business  idea  which  makes   your  hearts  sing.   •  “Keep  looking,  don’t  sePle”  
  93. 93. Summary  of  Part  II •  In  many  places  in  the  world,  a  start-­‐up   team  needs  a  kind  of  preparaJon  period   to  start  business  in  the  professional  zone.     •  This  slide  showed  some  case  studies  and   provided  a  direcJon  for  the  preparaJon   period.
  94. 94. THANK  YOU fromBayArea.com

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