Transcript

A  few  lessons  learned    

Oct  27,  2011  at  the  Department  of  Applied  Informa;on  Technology  at    Chalmers  University  of  Technology  and  University  of  Gothenburg  

   

Fredrik  Ljungberg  

1.  

What  do  Paul,  Börje  and  Rohit  have  in  common?  

Paul  Ahlstrom    Successful  investor  

”If  you  have  an  idea,  don’t  build  anything!”  

”Data  is  not  informa;on”  

Börje  Langefors    Pioneer  and  first  IT  professor  

Rohit  Sharma  Serial  entrepreneur  

Paul,  Börje  and  Rohit  know…  

…there  will  be  failure  

What  they  know  

•  Paul  knows  his  porUolio  companies  will  release  products  people  don’t  want  

•  Börje  knows  his  students++  will  develop  systems  people  don’t  want  

•  Rohit  knows  his  start  ups  will  launch  solu;ons  people  won’t  like  

Why?  

•  Technology  issues?    •  No!    •  But  because  we…  

 don’t  understand  user  needs  properly  

It  happens  as  we  speak  

•  Developing  systems  with  no  knowledge  about  the  domain  

•  Wri;ng  business  plans  for  new  products  

Understanding  user  needs  is  key  

•  Compe99ve  companies  much  needed  

•  Compe;;ve  companies  rely  on  innova9on    

•  Innova;on  relies  on  understanding  needs  

•  Innova;on  has  to  happen  faster  and  faster    

•  Compete  in  a  global  market  

Scary  today  

Scary  in  the  future?  

User  needs  •  It’s  about  figuring  out  what  people  don’t  know  they  want  

•  People  don’t  know  what  they  want  

•  People  will  say  your  baby  is  ugly  

•  Needs  evolve    

•  What  to  do?    

– Look  for  pain!  – “Get  the  hell  out  of  the  building”  

Vision  

Henry  Ford:    “If  I  had  asked  people  what  they  wanted,  they  would  have  said  faster  horses.”    

There’s  only  one  way  to  do  it  

Steve  Blank:  

“Get  the  hell  out  of  the  office!”    à  Go  out,  be  open  minded  and  learn  quickly!  

#1:  Conclusion  

• Understanding  user  needs  has  been,  is  and  will  be  crucial    

2.  

Randy  Komisar    (Kleiner  Perkins)  ”Nobody  walks  in  here  with  a  new  idea.  I’ve  seen  all  ideas  10  9mes.”      “For  every  decent  idea  there  are  30-­‐40  guys  working  on  it.”  

The  manager  

“The  last  20%  of  a  project  will  take  80%  of  the  9me…  at  least”    Surveys  •  +  75%  of  all  projects  miss  deadlines  •  +50%  exceed  budget  •  Most  start  ups  fail  (loads  of  sta;s;cs)    

Randy  and  the  manager  know  

Execu9on  is  key  

The  idea  is  1%,  execu;on  is  99%  

Execu;on  

•  Management    

•  Sales  and  customer  rela;ons    

•  Develop  technology    

•  Hard  work,  long  hours  

User  needs  +  execu;on  

#2:  Conclusion  

• Execu9on—to  get  things  done—has  been,  is  and  will  be  crucial    

?  

It  is  possible  

It  is  possible  

+     =  True  

3.  

Close  to  bankruptcy  in  1997  

Steve  and  Steve  started  a  company  

And  so  did  we!  People  with  no  understanding  of  user  needs  but  some/weak  knowledge  about  execu9on  

Internal  R&D  50%  

Professional    services  50%  

Produktbolag  Produktbolag  

Spinn  off  

Customers  

No  customers    and  few  references  

No  contact    with  users    Too  early    Quite  poor  execu9on  

But  a  crazy  financial  market  (which  we  knew  and  could  offer  what  they  wanted)  

Worked  hard  and,  eventually,  we  learned  

CeBIT  2000  

Agreement,  awards  and  the  best  product  but  way  too  early  and  wrong  loca;on  

2000-­‐2001    

+  

-­‐50  000  employees  

•  Sell  the  product  business  (no  funding  available  anyway)  

•  Buy  out  investors    

•  Be  good  at  something  Volvo  needs  

•  Niche  

•  Work,  work,  work  

Some  lessons  learned  •  If  we  had  considered  user  needs  carefully  and  had  the  ability  to  kill  our  

babies,  the  product  business  would  have  been  sold  earlier    

•  Lack  of  execu9on  abili;es  compensated  with  hard  work  and  ambi;on    

•  Mix  of  competencies  was  crucial    

•  Focus  on  results  and  margin  created  a  common  goal  and  mindset  

•  Learn  how  the  customer  thinks  and  their  major  pains    

•  Work  harder  than  compe;tors  pays  off  

•  Always  deliver  and  communicate  to  build  confidence    

Concluding  remarks:    Sugges;ons  to  students  

•  (User  needs  and  execu;on)  

•  Try  to  be  good  at  something  

•  Trying  hard  will  pay  off    

•  First  employer  is  key  

•  Use  technology    

•  Learn  how  to  program  

Thank  you!  

fredrik.ljungberg@apprecia.se  +46  (0)733  311  100  

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