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Paris business school

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Paris School of Business Keynote

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Paris business school

  1. 1. How can Paris & Boston learn from each other’s Entrepreneurship Communities Trish Cotter Associate Managing Director, Martin Trust Center for Entrepreneurship, MIT Director of delta v, MIT’s student educational accelerator Entrepreneur-in-Residence, MIT
  2. 2. Agenda Paris & Boston Our entrepreneurial ecosystems A side-by-side comparison Innovation Transformation Your role Framework The Disciplined Entrepreneurship framework Entrepreneurship can be taught! Entrepreneurship Education Entrepreneur Personas Program Pillars Key Takeaways Question & Answer session 2
  3. 3. 2 Cities: Similar Entrepreneurial Profiles 3
  4. 4. Boston & Paris Entrepreneurial Ecosystems  Both have glorious entrepreneurial past  Both had lost their status to more agile competitors  Until recently, both shared a risk averse approach  Until recently, best talent of these cities went elsewhere to pursue their dreams and endeavors  Now … both cities are on their way to regaining leading positions on global entrepreneurial scene 4
  5. 5. Highlights for Entrepreneurs “Boston is ranked #1 among the top 25 startup hubs in the US.” -- US Chamber of Commerce Foundation [San Francisco Bay Area is the clear leader in total startup activity, but it lacks a cohesive community, and declining quality of life for residents helped move Boston to the top spot.] 5 • > 60 co-working spaces in Boston, Cambridge & other cities • > 40 university incubators/ accelerators statewide • $6 billion invested by VCs in Boston- area companies in 527 deals in 2016 “Paris is among the top six tech cities in the world.” -- CB Insights [Greater Paris is home to more than 22,000 startups and is adding 1,000+ startups every year. However, for the moment it lags far behind London and Berlin. ] • Tax incentives for new businesses • Government and public sector funding • France Digitale and La French Tech programs • New crowdfunding legislation
  6. 6. Side-by-side City comparison 6 Indicator Boston Paris Metropolitan GDP $400 billion+ $740 billion+ Metropolian Population 6.75 million+ 13 million+ Startup's Number 4.000+ 22.000+ Startup's Ecosystem Strength Areas Biotechnology+Robotics+ Enterprise Software B2C+ Consumer Web Number of Private Unicorns 6 5 VC Number 130+ 100+ VC Funding (2016) $6 billion $2 billion+ Angel Investors Number ~7.000 ~5.000 Average MOIC 7.59% n/a Average seed round $800k+ $650k+ Average Series A round $10 million+ $4 million+ Rounds with local only investors 60% 73% Founder age 34.7 33.9 Female founders 29% 21% Time to hire engineers ( days) 59 54 Software engineer salary ( MAR-2017) $95k $47k Remote employees 33% 24% Foreign employees 33% 22% Foreign Customers 33% 42% Employees with startup experience 43% 40% Equity to employees 14% 7% Innovation Ranking #1 n/a Average rent (one-bedroom apartment) $2.400/month $1.100/month
  7. 7. Most Funded Startups Boston & Paris 7 Note: Despite the fact that Paris has 5x more startups, Boston has 3x advantage over Paris in terms of capital invested in startups.
  8. 8. Thinking about Innovation
  9. 9. Innovation=Invention*Commercializatio n 9
  10. 10. Innovations Internet, broadband, WWW (browser and html) PC/laptop computers Mobile phones E-mail DNA testing and sequencing/Human genome mapping Magnetic Resonance Imaging (MRI) Microprocessors Fiber optics Office software (spreadsheets, word processors) Non-invasive laser/robotic surgery (laparoscopy) Open source software and services (e.g., Linux, Wikipedia)… 10
  11. 11. Innovation Can Transform Firms Eli Lilly  “Random” drug discovery to genetics and genomic Nokia  Rubber boots to cell phones Corning glass  Cookware to optical fiber to displays IBM  Mainframe to PC And many more… ‘s Source: Prof. Rebecca Henderson, MIT Sloan & now HBS
  12. 12.  Levi Strauss  Kodak  Lehman  Zenith  US Post Office  Kidder Peabody  Firestone  General Motors  Bausch & Lomb  DEC  Motorola  Sears  Timex  Nestlé  Philips  U.S. Steel  Polaroid  IBM Not the Club You Want to Join Original Source: Prof. Rebecca Henderson, MIT Sloan & now HBS
  13. 13. • Does it work? • Can it be produced? • Is there a need? • How big is the “market”? • Will it be accepted? • Can it be effectively deployed? Stages of Innovation
  14. 14. • They may not work • There may not be a need or value proposition • There may not enough of a “market” to justify • The target “market” may not accept it • Risks of deployment The Nature of Innovation
  15. 15. Your Responsibility Risk/ExposureInnovation • Will it work? • Can it be produced? • Is it needed? • Does it justify the investment? • Will it be adopted? • What could be the collateral damage? • Value of innovation Technical and Human Resources Dimensions What you can do
  16. 16. Skills are essential and may not be present Resistance to change is normal Some degree of change is positive  2 years or so  Cross training  Creativity Requires most leadership skills Human Resources Considerations What you can do
  17. 17. Experimentation (“tiny completed action that helps you learn something”) Rapid Early on Iterations Solution to Uncertainty and Management of Risk What you can do Attribution: Prof. Stefan Thomke, HBS
  18. 18. Is Failure a Positive Thing? This is not a license for dumb failure Failure is trying something and learning from it Failure is not when it is doing the same thing again and getting the same bad result without significant learning When is the cost of failure the highest? What you can do
  19. 19. Value of Bias to Action But our experience has been that most big institutions have forgotten how to test and learn. They seem to prefer analysis and debate to trying something out, and they are paralyzed by fear of failure, however small.” -- Thomas J. Peters and Robert H. Waterman Jr., In Search of Excellence, 1982 What you can do
  20. 20. Framework for Summarizing an Innovation Our innovation idea is ____________________________________ (cf. why you chose it) It’s value to our company could be (economic justification) ________________________________________________________________________ Important considerations are (exposure to be managed) ________________________________________________________________________ The human resource considerations are ________________________________________________________________________ We plan to take the following steps ________________________________________________________________________ Our team had the following perspectives ________________________________________________________________________ This innovation is __ technical, __ process, __ business model, __ positioning, __ other This innovation is __ incremental, __ disruptive, __ lateral/general What we believe we will learn if it fails ________________________________________________________________________ What you can do
  21. 21. Key Risks of Innovation Talent Training Culture Technology Organizational Incentives
  22. 22. Disciplined Entrepreneurship Our Framework 22
  23. 23. Disciplined Entrepreneurship 24 steps to a successful startup 23 www.disciplinedentrepreneurship.com
  24. 24. Successful Entrepreneurship = Spirit of a pirate Skills of a Navy Seal 24 +
  25. 25. “It is not the strongest of the species that survives, nor the most intelligent … … but the one most responsive to change.” - Charles Darwin Natural Selection
  26. 26. Entrepreneurship at 26
  27. 27. We help create entrepreneurs not companies. 27
  28. 28. Customer (Student) Personas Exploratory/ Curious Ready-to- Go RTG - 1 Entrepreneurship Amplifier Corporate Entrepreneur Interested but has no driving idea or team; is in exploratory mode; starts here but will migrate to another state or out of entrepreneurship Chomping at the bit & just wants help to get going – has idea, tech &/or core of team Wants to be in a start up but does not want to be a founder Interested in understanding enough to successfully promote in their org (e.g., gov, corp, family business) but is not the direct venture creating entrepreneur Wants to be an entrepreneur in a large organization 28
  29. 29. Goals of Entrepreneurship Education • Teach how to fish! NOT just give him/her a fish  • Develop entrepreneurial mindset and skill set • Applicable in many different settings • Success if student tries and decides “not for me” “Our goal while you’re at MIT is to provide you more than you can get anywhere else to build your capability to be a successful innovation-driven entrepreneur” – Bill Aulet 29
  30. 30. Program Pillars How do we identify success? 1. Head: Knowledge 2. Hands: Capability 3. Heart: Mindset 4. Home: Community 30
  31. 31. Stage 1 Inspiration Idea Technology Stage 2 Validation Stage 3 Customer Linkage Stage 4 Develop Business Plan Stage 5 Escape Velocity Stage 6 Launch Company Stage 7 High-Growth External Accelerators & Incubators Angels & VC Priority #1: Build Students’ Capabilities Priority #2: Build Great Companies Lots of Iteration Escape Velocity
  32. 32. Validation Workshops, EIR’s The Entrepreneurship Ramp Inspiration, Idea, Technology Classroom Extra-Curricular Accelerator Sandbox t=0 Sandbox
  33. 33. delta v The Martin Trust Center for MIT Entrepreneurship provides the expertise, support, and connections MIT students need to become effective entrepreneurs. The delta v capstone educational accelerator is our most visible program; its success has created a ripple effect. 33 Learning by Doing • Student educational accelerator • Top student teams chosen • 3-month summer “boot camp” • Space, stipends, structure & status • Demo Day – Boston, NY & San Francisco
  34. 34. Community We provide the resources & connections entrepreneurs need to achieve their goals through: Professional Advisory Network Peer & student events Speaker Series & Workshops Entrepreneurship Ambassador Program MIT Alumni Other parts of MIT network Prep & exposure to service providers, advisors & funding Trips, treks, conferences, hackathons Other special events - And more! 34
  35. 35. Key Takeaways • Entrepreneurship can be taught and it is effectively taught with our process • The students appreciate there is value in a rigorous/disciplined process for entrepreneurship – it is not just magic and mentorship • Learn by doing (delta v) • Learn by failing / don’t coddle our students • Entrepreneurs and companies evolve over time in a Darwinian manner – fluid teams are essential to optimize the learning process (as well as success) 35
  36. 36. delta v 2017 Cohort 20 teams, 60 entrepreneurs 36
  37. 37. Getting Started 37
  38. 38. Company Core Business “FIREWALL”PROTECTION Innovation Group  Deliver innovation to Company  Fast clock speed & flexibility  Global network  Ability to take risk • Bottlenecks • Opportunities • Exposures Needs One Critical Consideration Innovative Solutions • Validated • Matured
  39. 39. Tools  Independent Business Units  University sponsored research  Scouting  University partnerships  Corporate partnerships  Mergers and Acquisitions  Incubators  Corporate Venture Funds 39
  40. 40. Actions you can take  Competitions  Speaker Series  Open Innovation Groups  Google 20% time  Accelerators  Hackathons  Independent Innovation Groups  Innovation Audit Teams  Data Analytics Group  Rotating project teams  Dedicated tiger teams  Separate business unit  Self directed innovation incentives  Acquihire 40
  41. 41. MIT’s Entrepreneurship Legacy 41 Over 30K companies, 4.6M jobs, $2T revenues/yr
  42. 42. 42 Thank you! Questions …?
  43. 43. Contact Information 43 pcotter@mit.edu @triciacotter www.trishcotter.com https://www.linkedin.com/in/triciacotter

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