Execution Counts, Ideas are Not Enough

What is the only thing that we are sure is infinite?

a) The Universe?

b) Ideas?

Execution Counts, Ideas are Not Enough Cosomological constant problem suggests

that the Big Bang may be followed by a Big Crunch so the universe may be bounded

Ideas are infinite– just try counting from zero to infinity!

Zero is a complex concept first used in India and Mayan civilization and brought to Europe through Arabia– numbers definitely represent ideas (Q.E.D.)

Execution Counts, Ideas are Not EnoughWhat is the value of something in infinite

supply?

Economic theory of Supply and Demand suggests value approaches zero!

30 million clever, hard-working Americans and millions more around the world are thinking up clever new ideas every day!

Execution Counts, Ideas are Not Enough Mathew Lafrance, Allan Ghosn, Christian Ste.

Marie and Mat Bouchard 5 ideas for business startup Each one worse than the one before, ending

in SILENT ALARM CLOCK! Except for one

Execution Counts, Ideas are Not Enough GradeAStudent.com (Now

GradeATechs.com) Only one problem they said–

NerdsOnSite.com already up and going Is this a problem?

Execution Counts, Ideas are Not Enough No! Strong value proposition Huge and growing market If it is a good idea, there will be competition If it is a bad idea, there won’t be but so what? It’s a BAD idea!

Execution Counts, Ideas are Not EnoughOut execute the competition: Provide superlative Customer Service GASnet: reverses out the work to clients and

suppliers Match making service– between techies and

clients For first time ever, a service business is

scalable due to the Internet

Execution Counts, Ideas are Not Enough Bring Back the Senators Campaign: 1987 to

1990 “What does Toronto have that Ottawa

doesn’t?” Bruce Firestone to himself, 1987 A zoo, a theme park, a NHL Team!

Execution Counts, Ideas are Not EnoughOut execute the competition: Purchase 600 acres for Palladium (now SBP) Pre-sell 15,000 PRNs for season tickets (at

$25 each) Sign up 500 corporate sponsors (at $500

each) and 32 original corporate sponsors (at $15,000 each)

Lobby the 21 members of the NHL’s BOG and its President

Execution Counts, Ideas are Not Enough Don’t take ‘No’ for an answer, late Professor

of Economics O. J. Firestone, U Ottawa to his son Sept.1990

“You will never, ever get a NHL Team in Ottawa,” anon. BOG member the night before the NHL awards the Senators to Ottawa, Dec. 6, 1990

Execution Counts, Ideas are Not Enough “Make sure that the last face the BOG sees

before they make their decision is yours,” Norm Seagram, former member of TOOC to Bruce Firestone

Last two faces the BOG see: Phil Esposito (Tampa) and Bruce Firestone

“The NHL is pleased and proud to announce… franchises have been awarded to Tampa and Ottawa,” five hours later.

Execution Counts, Ideas are Not Enough After winning the franchise, you:

a) Party all night?

b) Do a few media interviews, leave for Miami, fly to Montreal, drive to Ottawa, prepare to sell $22 million in cash worth of season tickets in ten days in late December 1990 for a team that won’t play (and win) its first game until October 8, 1992?

Execution Counts, Ideas are Not Enough “John, what was the vote?” “It was unanimous.” Surprise phone call three weeks later

Execution Counts, Ideas are Not Enough You have a great idea– satellite digital

radio! You start Sirius or XM for a few billion

dollars each Great idea, right?

Execution Counts, Ideas are Not Enough Huge institutional barriers to entry– the car

companies Huge technological and technical hurdles Huge start up costs Huge cost to acquire first customers Lose a few billion more on operations, so

now what do you do?

Execution Counts, Ideas are Not Enough

You sign up Howard Stern for $500 million and Oprah Winfrey for millions too

You couldn’t think of anything else?

Execution Counts, Ideas are Not Enough So now what? Merger proposal is on the table Monopoly is the answer– higher prices for

consumers, less choice and poorer customer service!

Is that the best you can do? And don’t forget, US anti-trust laws will now

come into play

Execution Counts, Ideas are Not Enough Go back and look at your Business Model! Possible answer– take the satellite out of

‘satellite radio’ Distribute the signals through the Internet Put your content on AOL Radio too for re-

distribution Huge expansion of their market and much

lower costs

Execution Counts, Ideas are Not Enough Gadgets and Gizmos do not make a

business Bell Control– circa 1985 taught me that

Execution Counts, Ideas are Not Enough You are not the market No one else wanted to turn off their phones! You need top notch execution and a

sustainable competitive advantage to successfully implement a viable business model

Execution Counts, Ideas are Not Enough Google was not first search engine But they had a better algorithm, neutral,

TRUSTWORTHY results and much better execution

More than 10 interviews now required to get hired on by Google

Sergei Brin and Larry Page recognize that it is NOT your assets or your IP that produce profits, it’s your people

Execution Counts, Ideas are Not Enough People like to buy from people they like and

trust Suppliers trust you to pay them You trust them to deliver on time Clients trust you to deliver and you trust

them to pay you

Execution Counts, Ideas are Not Enough Trust is the foundation of a successful

career Once you establish trust, you become part

of the (business) ecosystem that will sustain you, your business and your family for a long time

Execution Counts, Ideas are Not Enough Kevin Rose, Founder, Digg.com Kevin Rose made $60 million in 18 months How did he do that? a) JOB? b) Entrepreneurship?

Execution Counts, Ideas are Not Enough DIGG.COM’S DIFFERENTIATED VALUE? It is a new model for a newspaper uniquely adapted to the

Internet It is not simply the online version of the New York Times or

some classified advertising page transferred to the Internet It is a digital community made up of a fairly homogenous

demographic—80% are male, mainly young techie readers Readers are also contributors Readers dig up interesting stories from all over the web and

post brief synopses to the site and links to them whereupon other readers vote on them—the most popular ascend the page

Execution Counts, Ideas are Not Enough The site harnesses the competitive instincts of the

readers/contributors to compete to see whose story will lead The site works because of its homogeneous demographic—

contributors only post stories that will be of interest to the group The site is dynamic—leading stories change by the minute or

hour Digg.com’s cost for headline writers = ZERO Digg.com’s cost for journalists = ZERO Digg.com’s cost for editors = ZERO Digg.com’s cost for distribution = ZERO (at least, the marginal

cost is practically zero)

Execution Counts, Ideas are Not Enough Digg’s sustainable competitive advantage is

its business model and its readership You might be able to knock off its business

model but it is extremely difficult to knock off its millions of dedicated readers

The key is that the readership is relatively homogeneous and has similar interests

Execution Counts, Ideas are Not Enough Web 2.0 works because:

a) Custom outputs from standard inputs;

b) Scalable;

c) Network effects;

d) Reverse out the work;

e) User generated content ;

f) Match making systems;

g) And more!

Execution Counts, Ideas are Not Enough Open source; Peer to peer; SEO; And more!

Execution Counts, Ideas are Not Enough Something new! Something unexpected!

Execution Counts, Ideas are Not Enough The Mechanical Turk; The anti Dr. Strangelove The opposite of Fail Safe

Execution Counts, Ideas are Not Enough Putting the human back in the loop! Who selects to stories that go up on

Digg.com’s site? People do that Who votes them up (or down)? People do that (better than any algorithm)

Execution Counts, Ideas are Not Enough Naver.com out competed Google in Korea! How did they do that? By replacing the Google algorithm with a

natural language search tool that allows users to ask questions

Which are then answered by other users! The Mechanical Turk is inside the system!

Execution Counts, Ideas are Not Enough Who else does that? Wikipedia for one Put the human being back in the loop and

develop a better business model will give you a sustainable competitive advantage and probably a better experience for users

Execution Counts, Ideas are Not Enough IF YOU HAD TO CHOOSE THREE

THINGS TO START YOUR BUSINESS WITH, I WOULD RECOMMEND:

1. Launch clients and customers;

2. A good business model;

3. Sound execution.

Execution Counts, Ideas are Not Enough I WOULD PLACE MUCH LESS EMPHASIS

ON:

1. A great, never-before-tried idea;

2. Bank financing;

3. A partner;

4. Access to government grants;

5. Access to VC financing.

Execution Counts, Ideas are Not Enough Where have all the Heroes gone? 1913–1994: the greatest Generation ever? What did they overcome? Two World Wars The Flu Pandemic The Great Depression The Cold War

Execution Counts, Ideas are Not Enough What did they do? Internal Combustion Engine The Rocket The Integrated Circuit The Computer The Internet

Execution Counts, Ideas are Not Enough How did they do it? Focus and Discipline Confidence and Imagination Ability to Execute Bravery and Sacrifice

Execution Counts, Ideas are Not Enough What’s missing today? The next generation of entrepreneurs How come China and India are doing so

well? Entrepreneurs unleashed by National

Governments Emphasis on education and technology Reduction in bureaucracy CONFIDENCE!

Execution Counts, Ideas are Not Enough What do many western Governments

believe in? Everything today is a cost not an investment Everything must be regulated It’s all about rights not responsibility

Execution Counts, Ideas are Not Enough Ever feel like going

somewhere else?

Execution Counts, Ideas are Not Enough What will happen to Western Nations? They will act and react They will reform their institutions Entrepreneurs and entrepreneurship will

prevail not only in business but also in other organizations– from NGOs and not-for-profits to charities and educational institutions

Execution Counts, Ideas are Not Enough REMEMBER: ENTREPRENEURS WOULD

RATHER BEG FOR FORGIVENESS THAN ASK FOR PERMISSION!