spirit of eship at mit
TRANSCRIPT
MIT EDP 2014 #MITEDP
DISCIPLINED ENTREPRENEURSHIP
MIT ENTREPRENEURSHIP DEVELOPMENT PROGRAM
Bill Aulet
The Spirit of Entrepreneurship at MIT
Monday January 26, 2015
MIT EDP 2014 #MITEDP
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The Magical Square Mile
Students: 10,500 Faculty: 1,700
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Innovation
• Innovation = Invention + Commercialization
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MIT’s Internal Ecosystem
Stage 1 Inspiration / Invention / Idea Generation
Stage 2 Technology Development / Idea Refinement to Practice
Stage 3 Commer-cialization Planning
Stage 4 Development of Business Plan
Stage 5 Real Company Formation (e.g. first customer, team, network)
Stage 6 Early Stage Growth
Stage 7 High-Growth
Education
Other Activities
• Basis for Commercialization: 45 years of growing research & insight into the entrepreneurial process • Knowledge Base: Outstanding scientific and engineering research … & pioneering of new fields • Underlying Foundation: 150 years of MIT’s “mens et manus” culture
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Accolades to MIT in Recent Past
MIT beats Cambridge and Harvard to top spot in world university rankings
September 11, 2012 September 11, 2012 MIT: the world's best university
If you were to ask someone in the UK to name the most prestigious university in the world, MIT is probably not the first name that would spring to mind. For many people it’s not even the best-known university in Cambridge.
“creative irreverence”
October 31, 2012
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BP+
Finance
Execution
Biz Model
Product
Market
People
Idea
Logical Flow of Course
- Segment - Direct Validation - Competition
- Value Proposition - Competitive Advantage - Development Plans
- Where to Extract Rent - Pricing
- Go to Market - Sales - Marketing
- Financial Statements - Investor Strategy & Pitch
- Generation - Analysis - Testing on Key Stakeholders
- Team Composition - Values - Setting Expectations
- Logical Flow - Scaling - Presentation
Plan to Capture Value
Plan to Create Value
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Sneak Peek at Week Monday Tuesday Wednesday Thursday Friday Spirit of @EshipMIT Company Visits Company Visits Free Team Time Final Presentations &
Judging
Ent Strategy I/ Creating Value (FM)
Product Development (MM)
Capturing Value (CT) Entrepreneurial Leadership
What to do After EDP (JPB)
Value of Ecosystem (FM)
Dilemmas in Launching New Ventures (MM)
Pricing/LTV (CT) What VCs Look For in a Startup (PM)
Awarding of Certificates (ER)
Ent Strategy II (SS)
Overview: Final Deliverable
Team Lunch Final Presentation Advice
Customer Product Mapping
Digital Experimentation (CC)
Inbound Marketing (MV)
Entrepreneurial Financing (AS)
Team Working Sessions
Making Great Products (PE)
Team Working Sessions
Building Financial Statements
Simulation Lab 1.Target Cust 2.Value Prop
Team Working Session
Simulation Lab 1.Biz Model/LTV 2.GTM/COCA
Team Working Sessions
Team Dinner Simulation Lab 1.Product 2.Comp Advantage
Nice Dinner (New Sloan Building)
Simulation Lab 1.Financials 2.Financing
MIT EDP 2014 #MITEDP
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Methodology For Week
• Educate
• Apply
• Coaching (including each other)
• Repeat Steps as Necessary
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Textbook for this Class
– Substantially increase your odds of success
– Provide more structure to one of the two
critical elements in starting a company
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24 Steps to a Successful Startup
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Venture Creation Process
• 24 Step process to create a product/offering as the foundation
• Systematic and proven way to increase your odds of success but not an algorithm however
• Integrated & comprehensive*
• Common language
• Identifies questions & weak points
• Prepares for:
– Execution
– Scaling
– Fund raising
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MIT EDP 2014 #MITEDP
DISCIPLINED ENTREPRENEURSHIP
Great New Stuff This Year
• Digital Toolbox
– www.detoolbox.com (you can go and sign up for free
– creates a dashboard to track progress)
• Paul Maeder
• Paul English
• Antoinette Schoar
• Refreshed Companies
• Continuous Improvement
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MIT EDP 2014 #MITEDP
DISCIPLINED ENTREPRENEURSHIP
Rules of Engagement
• No open lap tops
• No side conversations
• Love questions but please be respectful of whole class of 130 and instructors (e.g., raise hand, be thoughtful and concise in question, balance during class vs. after class)
• Be on time
• Be engaged
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Is the Idea Important?
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What Do You Need to Start a Successful New Venture?
• Idea
– Starting point & comes from you or your team – be a Pirate!
• Team
– This is hard stuff and takes time and work
– Some key considerations (passion, values, heterogeneity, size, skills, etc.)
• Process
– This is what we will teach you in this course with the 24 steps – be a Navy SEAL
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MIT EDP 2014 #MITEDP
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Characteristics
• Teams and not individuals
• Teams are made up of individuals
• Cross disciplinary & heterogeneous
• Odds go up with members on team: 1 5
• Autonomy a common trait but that is less than a narcissistic obsession to personally create value
• Motivated by more than the money
• Doesn’t make excuses but rather GSD
• Thrill in the role of David vs. Goliath – and skilled at it
• Team players!
MIT EDP 2014 #MITEDP
DISCIPLINED ENTREPRENEURSHIP
What EDP is All About...
• Cram as much experience into 5 days as possible.
• Goal:
• Business plan that will yield a company with a market capitalization of $30 million within three years of launch/or sales of $10 million – or to create a new venture that will have that kind of significant impact
• Readings are important, but the goal of the class is to have you apply frameworks and gain knowledge, experience, confidence & hopefully a teammate.
• Learn by doing
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