An introductory talk on entrepreneurship for engineering students. Drucker's purpose of business, Blank's Customer Development, Moore's Crossing the Chasm, and Martin's Knowledge Funnel, and Osterwalder's Business Model Canvas

1. Entrepreneurship and You
Iain Verigin
iain.verigin@gmail.com
September 2012
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2. Who Are You?
• What is your specialization?
– Mech, EE, Comp Sci, other.
• Post-Grad - What are you gonna Do?
– Grad School?
– Work?
• Big Company
• Small Company
• Start-up?
– Travel?
- Let‟s show some hands - 2

3. Who Am I ?
• Work
– Instructor: UBC Sauder School
– Business Development: PMC-Sierra
– Marketing: PMC-Sierra & Packet Engines
– Engineering: PMC-Sierra
• Hobbies
– “Health Issues”, Philanthropy (Eng Phys
Professorship), Coaching Hockey & Track, Golf,
Blogging, reading, “bad” music.
• Education:
– McGill Physics, UBC Eng Phys (EE option), SFU
M.Eng EE (Comm‟s, Semi‟s & Optics )
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4. Lecture Objectives
1. Understand entrepreneurial leadership
• and its process in high-technology industries
2. Dispel common myths & misconceptions.
3. Learn skills
• important for 21st century technology leaders.
4. Stimulate continuous learning
• and personal reflection regarding
entrepreneurship and your future.
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5. Agenda
1. Introduction - today.
2. Entrepreneurship Skills
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6. What is Entrepreneurship?
• A Way of Managing, Leading, and
Doing!
– It Can Be Taught!
• Fine Print
– "Entrepreneurship is a management style that involves pursuing
opportunity without regard to the resources currently controlled.
Entrepreneurs identify opportunity, assemble required resources,
implement a practical action plan, and harvest the rewards in a timely,
flexible way.
– Any attempt at new business or new venture creation, such as self-
employment, a new business organization, or the expansion of an
existing business, by an individual, a team, or an established business.
• References: Stanford E145 material (Byers)
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7. Seven Important Skills for
Tomorrows Entrepreneurial Leaders
1. Creativity and Opportunity Evaluation
2. Real-time Strategy and Decision Making
3. Comfort with Change and Chaos
4. Teamwork
5. Evangelism, Selling, Negotiation, and
Motivation through Influence and
Persuasion
6. Oral and Written Communication
7. Basics of Start-Up Finance and Accounting
• Reference --- Byers - E145 - http://stvp.stanford.edu 7

8. U
Can
Do it!
UBC Fizzers Have Rocked
• 3 of top 4 market cap in BC.
– Creo
– MDA - (CEO) Dan Friedman
– PMC-Sierra -
current COO Colin Harris,
1st CEO - Ralph Bennett,
Professorship donors
( Curtis Lapadat, Alex Chiu, myself, and CH)
• There are lots more small companies
with Fizz leaders.
– Starfish – Scott Phillips
http://www.bctechnology.com/stocks/t-net20.cfm
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9. Plan
You Customers
Process Scorecard
Purpose

10. The Scorecard
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11. The Biz Plan
People
The Team
Capabilities
Attitude
Reputation
The
Deal Business
Resources
Reward, Risks Financial
Incentives Physical
Ownership Intellectual
Harvest
Plan
Opportunity
Customers
Strategy
Business
Model
Chapter 7: Figure 7.3 11
Technology Ventures: From Idea to Opportunity

12. The Business Model Canvas
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13. Apple Canvas
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14. :Score Card: ( Hypothesis Summary)
test
Guess Guess Guess Guess
Guess
Guess Guess
Guess Guess
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15. Keep Track
Week n
Week 2
Week 1
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16. Your Purpose
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17. Aside
To Create a Customer
Drucker says …
“There is only one valid
definition of business
purpose: …”
Page 20 “The Essential Drucker”
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18. What is Marketing?
• Drucker says --
• There will always, one can assume, be the
need for some selling. But the aim of
marketing is to make selling superflous.
The aim of marketing is to know and
understand the customer so well that the
product or service fits him and sells itself.
• Reference: pages 20 & 21 in “Essential Drucker”.
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19. A Product That Sells Itself
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20. Customers?
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21. Technology Adoption Life Cycle
Main Street
Tornado
Early
Market
Chasm
Bowling Alley
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN” 21

22. People
Underlying Drivers in
Growth Markets
“Technology Adoption Strategies”
Pragmatists: Conservatives:
Stick with the herd! Stick with what’s proven!
Visionaries:
Get ahead of the herd! Skeptics:
Just say No!
Techies:
Just try it!
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN” 22

23. New Market “Chasm”
Main Street
Tornado
Early
Market
Chasm
Bowling Alley
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN” 23

24. ? Instant
Success ?
In 4th year after launch.
( ie 6 years )
This is as fast as
it gets.
http://en.wikipedia.org/wiki/File:Ipod_sales_per_quarter.svg
NB. Apple's fiscal year ends in September. This means that Q1 includes the holiday season, which accounts for jumps in the data.
Fiscal Q1 is Oct - Dec of previous year. So Q1 of 2008 is Oct - Dec of 2007, Q2 of 2008 is Jan - Mar of 2008 and so on.
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25. The Process
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26. Study/Plan and Act
• Market
Analysis
• Market
Pursuit
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27. It‟s The Scientific Process!
• Hypothesis
• Develop Test
• Observe • Apply to Customers
• Analyze Results
• Re-jig Hypothesis
• Do it again
( many times … • Product / Market Fit is what you
are looking for.
Quickly ) • Is not obvious
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28. Six steps to Acting as an entrepreneur
Chapter 2: Figure 2.1
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29. iPod Timeline
Cycling, Cycling, and more Cycling
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30. More Process
• Customer Development
• www.steveblank.com
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31. Search vs. Execution
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32. Search Looks Like This
Bill Buxton, “Sketching User Experience” 32

33. Execution Like This
Bill Buxton, “Sketching User Experience” 33

34. “7 Steps”
Customer Development
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35. You
35

36. Model –
Vous
Knowledge Funnel Etes
“What Do You Know” ici
Roger Martin‟s Knowledge Funnel
 Mystery
 Heuristic
 Algorithm
! Very Useful for our class !
You start in the Mystery Zone
( the guesses )
Success is getting it to
“Heuristic zone”
(what are the “rules-of-thumb”
Grand Slam is getting it to the
“Algorithm” zone
Source: Design of Business, Roger Martin 36

37. Summary
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38. Mash Up
You “Knowledge Funnel”
Customers
“Chasm Model”
Process Scorecard
“Customer Development” “Business Model Canvas”

39. Mash Up

40. Wrap
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41. Next
! People Skills Rule !
Week
• The area with the most room for
differentiation is in “People Skills”
– Yes … „cause Engineers suck at this :)
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42. Reading Material
• I‟ve made a list on-line
• http://hnorth.wordpress.com/entrepr
eneurship-readings/
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43. The End
43

44. No one knows the
answer!You‟ve got to discover it.
Act
Fix &
Adjust Review &
Learn
This is everything u need to know :-) 44

45. Aside
* Straight Lines Don‟t
Happen in Real Life *
* Get used to cycling back.
* Some people get stuck calling
this “failure”.
* Don‟t let failures define you.
* Success will come.
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