Tech startup-guide
0 likes385 views
The document discusses key aspects of digital startups, including: - Defining digital startups and distinguishing them from other technology companies. - Explaining the different types of digital services a startup can offer, such as transactional, non-transactional, embedded, and cloud services. - Emphasizing the importance of the business model in addition to the technology, focusing on customer needs, value propositions, and financial viability. - Summarizing best practices for developing a business model, including researching market needs, generating business model options, testing prototypes, and adapting based on feedback.
Tech startup-guide
- 1. Presented by Mondher Khanfir www.wikistartup.tn
- 2. copyright2015@WikiStartUp • Part I (Panel) : • What is a Digital Startup The Digital Startup Business Modeling • Strategic planning for Digital Startup implementation • Approaches for building & connecting capacities • Evaluating Business Model soundness • Part II (Workshop): • The correct planning for a successful implementation of Digital Startup
- 3. 3
- 4. 4 « A Startup is an organization formed to search for a repeatable and scalable Business Model» - Steve Blank
- 5. 5 A Digital Startup is not only a company that uses hardware or software to automate business processes or deliver a technology service..… It’s more about innovative business models, R&D and long-term strategies. The advent of the digital era is accompanied by the proliferation of Digital Startups contributing to and feeding off technological changes at the same time.
- 6. 6
- 7. 7 Transactional services NonTransactional services Non Embedded services Embedded services Cloud Data Center Online BookingeLearning Social media Different kinds of Digital Services
- 8. 8 Delivering technology as a service is different from services based on technology. There is an important distinction between using technology and producing technology.We can distinguish 4 categories of Tech Startups, based on the type of services they are delivering: • Access toTechnology infrastructure • Support Services • Interoperability services • e-Business Services
- 9. 9
- 10. 10 « A Business Model describes the rationale of how an organization creates, delivers, and captures value» « A Business Model can be described through nine basic building blocks that show the logic of how a company intends to make money. It covers the four main area of a business; customers, offer, infrastructure and financial viability » «The Business Model is like a blueprint for a strategy to be implemented through organizational structures, processes and systems. » - Alexander Osterwalder
- 11. 11 Technology is required, but it is certainly not the differentiator “And do not expect the winners to be based on the best tech”. It will come down to: • Execution • Closing deals • Smart user acquisition strategies • Scalability • Growth • …. And Game Changing
- 12. 12 The Business Model Canvas of Alexander Oscarwalder
- 13. 13 Note that every business model design project is unique and presents its own challenges, obstacles, and critical success factors. We propose a generic business model process adaptable to the Digital Startup specific needs. This design process is an exploration that involves messy, opportunistic bouncing back, analysis, business model prototyping and idea generation. Alexander Osterwalder outlines in his book “Business Model Generation” a five-phase process for designing business models. We summarize in this guide the most important steps and activities to be performed for a successful business model.
- 14. 14 Phases Mobilize Understand Design Implement Manage Objective Prepare for a successful business model desgin project Research and analyze elements needed for the business model design effort Generate and test viable business model options and select the best Implement the business model prototype in the field Adapt the business model in response to market reaction Focus Setting the stage Immersion Inquiry Execution Evolution Description Assemble all the elements for successful business model design. Create awareness of the need for a new business model, describe the motivation behind the project and establish a common language This involves the core team members immersing themselves into the customers, technology and environment of the business. Transform the information and ideas into business model prototypes that can be explored and tested.After an intensive business model inquiry, select the most satisfactoy business model design Implement the selected business model design Set up the management structures to continuously monitor, evaluate, and adapt or transform the business model
- 15. 15
- 16. 16 Business Model Innovation combines creativity with a structured approach of access to Market. Innovations and new iterations of business models are usually made byTech startups with one of the following purposes: To fulfill a current need Bring to Market a new Technology Be a change Agent Create a New Market Startup value proposition
- 17. Efficiency innovations which produce the same product more cheaply, such as automating credit checks Sustaining innovations wich turn good products into better ones, such as the hybrid car, Disruptive innovations which transform expensive complex products into affordable, simple ones, such as the shift from the mainframe to personal computers.
- 18. 18
- 19. 19 When launching aTech Startup, there are a number of factors to take into consideration to determine whether a startup is the most appropriate path to commercialization: • Demand: Potential of the technology or the way we use it to provide a solid platform for multiple markets • Competition: Identification of other companies that offer similar solutions. • Funding: Availability of capital to build and grow the business. • Commitment: Level of commitment and involvement of the entrepreneurs • Support: Presence of a true supporter, incubator or accelerator • Management: Experience, passion, and drive of the startup’s executive team.
- 20. 20 • Is the innovation a disruptive technology? If not, how would it be categorized? • How soon can a commercial product come to market? • What is the level of risk associated with this startup? • Does the technology have clear applications and a definable market? • Who owns the intellectual property ? • What will be my role in the new company? • What are the goals for the company? • for an acquisition or a possible initial public offering (IPO)?Or, is it to build a small, yet sustainable business? • Will capital from private investment companies be needed? If so, will the company eventually be sold or go public? Key considerations when deciding whether or not to start an innovation project:
- 21. 21
- 22. 22 A performing Digital Startup knows how to mobilize and take the most of two sets of Assets: - Tangible and Intangible Assets Intangible assets are: Knowledge, Information and intellectual Property…
- 23. 23 Business Model implementation requires to build up and to connect 4 types of capacities Cognitive capability Organizational capability Operational capability Technological capability Startup capabilility
- 24. 24 TheValue Chain is a base for modeling the different activities for a specific industry, from the knowledge inception to enable the product design, to the manufacturing and marketing, and then to distribution and After Sales services. Chaîne de valeur
- 25. 25 - Traceability - Genomic, Organic Certificate - Biotechnologies (pesticides, fertilisers,…) - Irrigation - Environnement -Marketing -Packaging - Derivatives products -Energy -Biomass - Green Tech - Franchising - Advertising - Forecasting Examples of Tech Startups opportunities in the Dattes Value Chain
- 26. 26 A startup’s market type dictates early positioning strategy and affects everything the company does Start Up positioning Chaîne de valeur
- 27. 27 The first step in positioning a startup is to understand the four market types: An existing market A new market A re-segmentation based on low cost. A new differentiated segment New product
- 28. 28 The second step in positioning a startup is to identify the Master Mind and to understand the specific high-level positioning strategy for each market: Market Type High-Level Positioning Strategy A new product in an existing market The market already knows your competitors, so focus on why your features are better/different than the competition. A new product in a new market Don’t focus on your features since your potential customers don’t know your product. Sell your vision – sell the problem that your product solves. A new product attempting to resegment an existing marketing via low cost Fight your competitors head-on focusing on your low price. A new product attempting to resegment an existing market by creating a niche Focus on how your product is better than specific elements of the current product that has fallen out of favor with the market.
- 29. 29 Startups purposes are • To fulfill a current need in the market which no other product or company are meeting. • Bring to market a new technology, product or service • Be a change agent in theTech services industry by introducing a new business model.This can be done out of a desire to bring innovation, create an evolution in the market or simply to change things up and breathe new life into the industry. • Create an entirely new type of business The main challenges for a constantly changing environment as the Technology sector: • Finding the right model • Testing and Re-testing the model before a full-scale launch • Inducing the market to adopt the new model • Adapting the model in response to market feedback • Managing uncertainty
- 30. 30
- 31. 31 Digital Entrepreneurs must be in possession of tools that allow them to frequently and robustly evaluate and assess their businesses in order to: •Have awareness of their strengths and weaknesses, •Analyze how well their team has performed, •Create quantitative goals and encourage smart spending, •Develop different managerial levels so they are ready for the next step in the business, •Provide inspiration and delegate decision- making and responsibility to the team, •Streamline their businesses so they can get more market share and have increased cash flows, •Face obstacles with a defined plan of action appropriate to the nature of the obstacle. Some questions that an entrepreneur can ask: •What technique or tool can lend validity to my business model and ensure that it is the right choice for my company? •What method can I use to analyze and monitor my business on a periodic basis? •What steps do I need to take to ensure continuous improvement in my business?
- 32. 32 To assess a Business Model attractiveness, we will follow the “GurleyTest” using the 10 following criteria: 1. Sustainable Competitive Advantage. 2. Presence of Network Effects. 3. Visibility/Predictability are highly valued. 4. Customer lock-in/High Switching costs. 5. Gross Margin Levels. 6. Marginal Profitability calculation. 7. Customer concentration. 8. Major partner dependencies. 9. Organic vs Heavy Marketing spend. 10.Growth.
- 33. 33 These 10 criteria can be visually represented over the Business Model Canvas as follows.The visual representation will help us easily remember these 10 criteria.
- 34. 34
- 35. copyright2015@WikiStartUp «A Startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty » - Eric Ries
- 36. The 4 3 2 Canonic Rules The Law of a successfulTech Start Up implementation
- 37. 37 • Project = opportunity identified and structured around a vision and a mission by the entrepreneur (s) behind the idea. • Project Survival = realistic idea + strong business model + resilient project team. • Prime factors of success: risks understanding and anticipation, Project/Entrepreneur adequacy, good training for the team • Lean and flexible teams make great innovations and successful projects, not the best inventions.
- 38. 38
- 39. 39 • Also known as “Proof of Relevance”. • Brings all the elements and information to validate the technical and economic benefits of the innovation • Techniques used to assess the potential impact of the invention and its “sustainability” in a competitive and dynamic environment. • Technology Transfer process.
- 40. 40 • Develop a “model”, a “prototype” or “Beta version” of the product or service . • Going through an incubator helps mobilize adequate seed funds • First tangible results: reassures the first partnering investors + win the confidence of the first customer.
- 41. 41 • Differentiate and have a competitive edge. • Make sure the market is scalable and your product is sellable • Technological validation can be proven from the first Market Tests • Achieve greater visibility by soliciting the help of networks of experts and field professionals
- 42. 42 • First contact with the market = invaluable source of information useful for the viability of the Startup. • Take into account the requirements of the market, the standards and practices of the actors • This is where you fine-tune the size of investments • This is where the profit margin long awaited by investors can be reached with a good strategy and scalability plan
- 43. 43
- 44. 44 Source: FITT for Innovation Digiteo & INRIA
- 45. 45 0 20 40 60 80 100 120 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 semaines Risquev/sInvestissement Seed Funding Venture Capital Capital Dev. Risk Investment
- 46. 46 When starting a company, generating funding to support the business is perhaps the single most important task at hand. Before embarking, it is necessary to determine how much funding is required and from where it will come. Here are some factors to consider in determining how much funding is necessary: • Time to market (that is, how long before initial sales) • Employee salaries and benefits • Space & Equipment • IP protection and Legal fees
- 47. 47 R&D Proof of Relevance Opportunity identification Sales & Distribution Product development Marketing & research Prototyping Marketing strategy definition Innovation Project engineering Proof of Concept Proof of market positionning Seed Funding VentureCaptial Funding Investment Funding Proof of scalability The commercialization cycle
- 48. Opportunity identification IP extracting value IP measuring IP protecting IP creating and aquiring IP reviewing & documenting IP targeting & motivating Seed Funding VentureCaptial Funding Investment Funding Higher risk Lower risk Financing IP valuation
- 49. 49
- 50. 50 • Milestone 1 “First invoice” = Startup’s ability to enter the market • Milestone 2 “Break even” = the company’s ability to reduce its dependency on investors = developing its financial autonomy • It is the illustration of the growth curve
- 51. TheTen Commandments of Digital Entrepreneurs The Law of a successfulTech Start Up implementation
- 52. 52 1. Have a dream and share it with your team, partners and associates. 2. Focus on the value you bring to the market and the social & economic model that produces it. 3. Invest both in the startup core business and in an environment conducive to its development. 4. Value your difference and seek synergies with the ecosystem actors.
- 53. 53 5. Integrate the human factor in the process of value creation. 6. Be flexible towards changes and rigorous towards uncertainty. 7. Measure the risks and prepare a contingency plan. 8. Identify and observe carefully the key players in the target market.
- 54. 54 9. Stay positive. Don’t give up to difficulties, and find “out of the box” solutions. 10. Learn from your failures and change strategy whenever necessary.
- 55. copyright2015@WikiStartUp Top MENATech Startups that are going global according to http://www.wamda.com/2012/09/top-15-mena-tech-startups-going-global
- 56. copyright2015@WikiStartUp Saphon Energy is based on an invention; the zero blade turbine. It won a lot of awards and prizes, in particular the 2015 Gulfstream Navigator Award at Savannah, Georgia, USA
- 57. copyright2015@WikiStartUp IrisTechnologies is based on aTech plaform to optimize bees hives management and honey production process.
- 58. Thank You for your Time & Attention!