lessons from silicon valley - company culture, growth hacking, design thinking - kmbs - oct 15 2015

Lessons from Silicon Valley: Company Culture, Growth Hacking, Design Thinking & Product Design

Kyiv-‐Mohyla Business School (KMBS) Kyiv-‐Mohyla Academy

Matricula:on Ceremony of New MBA Students

KMA 400th Anniversary Celebra:on

Dr. Burton Lee PhD MBA European Entrepreneurship & Innova1on

Stanford Engineering School, Silicon Valley, CA www.StanfordEuropreneurs.org || @Europreneurs

Kyiv, Ukraine Oct 15 2015

Key Lessons from Silicon Valley •  Company Culture –  Innova1on –  Ethics

•  Product Design and Product Management –  ‘Design Thinking’ as a Strategy Tool

•  Strategic Use of Informa1on Technology –  Enterprise soPware – broad & deep integra1on around key business processes

•  ‘Growth Hacking’ –  The New ‘Sales & Marke1ng’ for Rapid Growth IT Companies –  Lessons for Tradi1onal Firms

Oct 15 2015 Copyright Burton H. Lee & Innovarium Ventures 2015

Culture Beats

Strategy

ABOUT THE SPEAKER

DR. BURTON LEE PHD MBA

STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES

[email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

Map of Presen:ng Speaker Na:onali:es

European Entrepreneurship & Innova:on @ Stanford Engineering

(ME421)

Winter 2015 – Year Seven

Enterprise Estonia Silicon Valley

Ghent, Flanders Region Belgium

iMinds ICT Research Ins:tute

February 10 @ Stanford Engineering Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR)

Observa:ons from Ukraine & Europe

•  Visits to leading UA ICT companies (Prom.UA, playtech), KPI, KMBS

•  7 years working in Europe with tech startups, corpora1ons, investors, universi1es, engineering and business professors & schools, governments and the European Commission –  Poland, Estonia, Latvia, Lithuania, Bulgaria, Croa1a, Slovakia, Hungary, Belarus, Russia

–  Collabora1ons with European universi1es in Ireland, Finland, France, Germany


Lessons from Silicon Valley

Company Innovation Culture

by ‘Accident’ or by ‘Design’ ?

1


Source: Steve Blank, 2012

Android & iPhone “Disrup(ve Innova(on” via New Business Models + Advanced Product Design

Copyright 2015 Burton H. Lee and Innovarium Ventures

Smart Phone “Company-‐Busters” New Products and Services for Global Markets

Stock Op:ons for Startup Employees

Necessary But

Not Sufficient 13

Company Culture is Now Used as a Key Element of

Strategic Advantage vs CompeKtors

Company ‘Innova:on Culture’ Silicon Valley Milestones

1950s-‐60s-‐70s

1980s-‐90s-‐2000s

1990s-‐2000s-‐2010s

Copyright Burton H. Lee & Innovarium Ventures 2015 Oct 15 2015

1960


The HP Way Founda(ons for Corporate Innova(on Culture

•  A radical and contrarian approach to organizing & running large companies in 1949 –  “HP rejected the idea that a company exists merely to maximize profits”

•  Customer-‐focused •  Team-‐based projects •  Stock op1ons programs •  A responsibility to the community at large •  Strong engineering-‐driven culture •  Management-‐by-‐objec1ves, not by-‐control


The HP Way Guiding Values for the Company

•  “What can we contribute?” •  “Are people’s lives improved because of what we do?”

•  “Are the communi1es in which we operate stronger, and the lives of our employees be[er?”

•  “Do our products offer something unique to our customers?”


Oct 15 2015 Copyright Burton H. Lee & Innovarium Ventures 2015 APPLE

The Core of Apple Culture

•  Accountability •  Hire the best •  Consistency •  Design for great user experiences •  Excellence above revenues •  Treat employees well



Apple in Steve Jobs Time …

Oct 15 2015 Copyright Burton H. Lee & Innovarium Ventures 2015 Apple under Tim Cook

Innova1on Culture @ Google

•  Innova1on from everywhere •  Focus on the user •  Think 10X •  Bet on technical insights •  Launch and iterate •  20% 1me •  Default to open process •  Fail well •  Have a mission that ma[ers

Copyright Burton H. Lee & Innovarium Ventures 2015

•  Strong engineering culture •  Strong sense of corporate mission

Oct 15 2015

Oct 15 2015 Copyright Burton H. Lee & Innovarium Ventures 2015 FACEBOOK

Benefits of Innova1on Culture @ Google •  Sustained ability to:

–  Enter new ver1cals –  Create new product categories and industries –  Move quickly –  Stay ahead of rivals –  A[ract the best talent –  Dominate their markets –  Build a world-‐leading ‘innova1on ecosystem’ in/around Google

•  ‘Innova1on culture’ used from Day One as a tool to: –  Build a ‘flat’ company –  Less hierarchy than most other enterprises –  Rapid decision-‐making –  Superior strategic vision + execu1on –  Accept failures, learn from failures, shut down failures quickly



Microsoe 1980s -‐ 2014


Microsoe 2015


Sa:rical Org Charts, by Manu Cornet

(2011) French Soeware

Engineer at Google.

Key Ques1ons

•  How does a company maintain its culture as it scales/grows?

•  How can an exis1ng company ‘pivot’ its culture to be more innova1on-‐centric?


Innova:on Culture Prac:ces @ Google

•  Hire for personality & culture fit •  Value speed & pivo1ng in decision-‐making •  Work, eat and live together •  Do all reorgs in a day •  Organize the company around the people whose impact is the highest

•  Establish a culture of ‘Yes’ •  Bet on technical insights, not market research •  Default to open, not closed •  Don’t follow compe11on •  Avoid deep hierarchies


Who Is Your ‘Chief Culture Officer’?

Culture Beats

Strategy Oct 15 2015 Copyright Burton H. Lee & Innovarium Ventures 2015


Product Design Product Management

2

Importance of Great Product Design

for Building Successful

Companies…

… and Reducing Failures

Thru ‘Premature Scaling’

European Startup Teams Oeen Miss These Key Ac:vi:es

•  Develop too few product/service concepts –  Have just 1-‐2 ideas

•  Too few interac1ons with real users/customers –  2-‐3 discussions vs mee1ng/observing 00’s –  Don’t make serious effort to go into market, understand customers and the market

–  Develop li[le sense of market segments: high, middle, low •  Build insufficient prototypes

–  1 or 2 vs 10 vs 500 •  Test prototypes with too few real users •  Start with the Wrong Ques1ons About User Needs


A ‘Lean Startup’ Approach to Early Stage Entrepreneurship Educa1on

Product-‐Market Fit


Using ‘Design Thinking’

An Example of How One Silicon

Valley Company Re-imagined the Shopping Experience

and the Shopping Cart


‘Design Thinking’ methodology was developed at Stanford Mechanical Engineering based on 20+ years of

Product Design teaching & research experience.

Direct Engagement with Real Users

Design Thinking Exercise

Re-‐designing the 21st Century Shopping Cart

IDEO Shopping Cart Project



Sketching New Ideas Possible Product Features and Architectures

Apr 20 2015 Copyright 2015 Burton H. Lee and Innovarium Ventures | Silicon Valley 50

‘Soe Prototyping’

SoP Prototyping Materials & Tools •  Paper •  Cardboard •  Plas1c •  Wooden s1cks •  Post-‐it Notes •  Cloth •  Sketches •  Scissors •  Tape •  Glue •  Staplers •  Markers


Observe Real Customers & Customer Behavior


53

Record Real Customers & Customer Behavior

How Would You Redesign The Shopping Cart for Modern Shoppers in Ukraine?

56

One Design Team’s Solu:on for 21st Century Shoppers

What is Different About ‘Design Thinking’? •  Avoids ‘Hard Engineering’ ac1vi1es, expenditures and commitments for as long as Possible

•  Combines many ‘hard’ & ‘soP’ disciplines: –  Sociology Design –  Psychology Art & Drawing –  Anthropology –  Human Factors –  HandiCraPs & Making Things –  Business –  Engineering & Architecture

•  Searches for disrup(ve and new crea1ve approaches to solving societal problems and marketplace gaps

•  Focuses on finding and ‘asking the right ques1ons’ Oct 15 2015 Copyright Burton H. Lee & Innovarium

Ventures 2015

Actual Product Design Process (generally not linear for new products and untested markets)

Search for Product-‐Market Fit

58

Product Design Is *Not* the Same as ‘Engineering Design’

The Essence of ‘Design Thinking’

Use ‘Design Thinking’

To Increase

New Product Success Rates at Ukrainian Technology

Companies


Strategic Use of Information Technology for

Competitive Advantage

3


Growth Hacking

4


Exponen:al User Growth and Market Disrup:on

Growth Hacking

•  Marriage of these competencies, func1ons and approaches: –  Product design & customer experience

•  User interfaces, customer engagement, product architecture – Web & data analy1cs

•  Real-‐1me analysis of customer behavior/preferences –  Tradi1onal Marke1ng & Sales

–  Rapid itera1on •  Agile & lean development, pivots


‘User Growth’ Now Takes Central Place in Strategy

•  No more ‘VP of Sales & Marke1ng’ at high-‐growth startups

•  Major shiP to ‘VP of Growth’ at best tech firms


Wrap-‐Up and Summary

Company Culture

is the core

Innova:on Plalorm

THANK YOU Dr. Burton Lee PhD MBA Stanford School of Engineering [email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

Working in Silicon Valley, Europe, La:n America and Washington DC

•  Senior financial, technical and strategy advisory services for global technology innova1on organiza1ons •  Professional Services

–  Technology startup and growth companies •  Interim CXO and Advisory Board roles •  Expert guidance & decision-‐making at the interface between market/customers, technology and finance •  Business development – industrial and government •  Business plan prepara1on/research/review; Government Grant proposal prepara1on/review •  Coaching and mentoring of CEOs and other CXO-‐level managers •  Assistance with government regulatory and policy agencies

–  Angel, venture capital and private equity Investors •  Fund strategy, team selec1on and market posi1oning •  Due diligence: technical, financial, strategy and business models

–  Public and non-‐profit R&D laboratories •  Technology transfer & partnerships; venturing and spin-‐out of companies; strategy and business development; grant applica1ons

–  Research universi1es •  Innova1on-‐related models, policies and prac1ces •  Technology transfer and licensing; industry partnerships and rela1ons; development and strategy; grant applica1ons

–  Na1onal and regional government agencies •  Innova1on policy formula1on, analysis and review; cluster development strategy; economic impact studies •  Science & technology policy formula1on, analysis & review: space, avia1on, nanotechnology, soPware/AI/robo1cs, manufacturing

•  Selected recent clients –  US/European technology startup companies – alterna1ve energy, robo1cs/AI, soPware, Internet, nanotech –  Venture and private equity funds – aerospace, nanotechnology, ICT, compu1ng, advanced materials, clean tech –  Office of the Prime Minister, Ireland; European Commission; Na1onal Science Founda1on; NASA, Na1onal Academies

•  Dr. Burton Lee PhD MBA, Managing Director –  Contact: [email protected] Based in Palo Alto, CA near Stanford University –  Bio/References: LinkedIn Profile –  Lecturer, European Entrepreneurship & Innova1on, Stanford School of Engineering