2015 Vanderbilt Accelerator - The Entrepreneurial Mindset

Entrepreneurial LeadershipDiscovering New Business Models | The Entrepreneurial Mindset

06.15.15 | OGSM Accelerator

Dr. Michael Burcham

[email protected]

87% Have Gone Out of Existence

Of the Firms Listed in 1955

The Lifespan of a Successful S&P 500

67 Years

1920’s

15 Years

Today

The Law of Disruption

While People Change Incrementally, Technology Improves

EXPONENTIALLY

When an industry faces disruption, companies often fail to appreciate quickly enough the nature, extent, and velocity of the changes taking place.

They bring new business models. They leverage new technologies. They are highly disruptive.

WHY? Disruptions start at an industry’s edge, among small companies that provide specialized value to emerging customer segments

Only 37% of individuals think their organization is innovative…

Yet79%

work environments.

wouldfeelmotivated

by innovative

THE INNOVATION SEQUENCE

Mobile, Social, Camera, Sensors, Cloud and Data

$36 Trillion in stock market value is up for

RE-IMAGINATION

vs.Why This Might

FailWhy This Might

Work

THE ENTREPRENEURIAL MINDSET

YOU WERE

This doesn’t mean you were born to start companies. In fact, most people shouldn’t start companies. But the will to create is encoded in

human DNA. And creation is the essence of entrepreneurship.

BORN AN ENTREPRENEUR

Gain a Competitive Edge

Grow Your Business

Unit

Expand Your Network

THE ENTREPRENEURIAL MINDSET

TO GROW | Think Small & Move Fast

The companies that operate in this manner are sure to emerge as the leaders in the next decade.

CULTIVATING ANENTREPRENEURIAL MINDSET

Whether you work for a 10-person company, a giant multinational corporation, a not-for-profit, government agency or any type of organization

in between to seize the new opportunities and

meet the challenges of today’s market we need to think and act like we’re running a startup.

WHY DO WE NEED ANENTREPRENEURIALMINDSET?

• We are all making decisions with limited information • In a time-compressed and resource limited environment • There are no guarantees or safety nets• We take on a certain amount of risk• Competition is changing • The market is changing• Product and Service lifecycles are shorter and shorter

Develop your own competitive advantage by combining 3 puzzle pieces:

1. Your Assets

Your Aspirations

TheMarket

Realities

THE TOOL KIT TO DEVELOP ANENTREPRENEURIALMINDSET

The next “New Thing” happens because we see in our peripheral vision emerging opportunities

We Can Almost Feel The Change

THE NEXT NEW THING | BEGINS WITH A DREAM

1. P

RO

DU

CT

5. KEY INGREDIENTS

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL

2. CUSTOMER

4. INTIMACY

3. DISTR

IBU

TION

Company Name Version Number Date

THE IDEA FRAME | WHAT IF

There are 7 core business model types from which every business model

is created.

BUSINESS MODELS | 7 CORE TYPES

Plan to Adapt. Use the ABZ method so that you can adapt based on feedback and lessons learned.

2.THE TOOL KIT TO DEVELOP ANENTREPRENEURIALMINDSET

THE BUSINESS JOURNEYTHERE’S NO STRAIGHT LINE FROM “A” TO “B”

Most Companies & Strategies are “off” by 10 Degrees… So are most of the competitors

Closing the Gap Defines Success

Build real, lasting relationships and deploy these into a powerful professional network built on trust.

3.THE TOOL KIT TO DEVELOP ANENTREPRENEURIALMINDSET

BUILD & MANAGE YOUR PROFESSIONAL NETWORK

A Successful Leader has to have a broader horizon that goes outside the business. And the only way you are going to get that broader perspective is

to make sure that you are out there in your networks.

In those networks you pick up information and bring it back into the business.

THE TOOL KIT TO DEVELOP ANENTREPRENEURIALMINDSET

Develop a method to evaluate options and ideas to determine the best new products and services for your organization.

4.

LEADERSHIP DECISION MAKINGREQUIRES AN ENTREPRENEURIAL MINDSET

Napkin Sketch Canvas Business Case Field Test

Competitive Advantage | our ability to outperform our competitors: Valuable, Rare, Sustainable, Hard to Imitate.

THE HALO

VALUE CREATION FOR OUR CUSTOMERS

V = Value to consumerP = PriceC = Costs of productionC

P – C = Margin

V – P = Halo

V – P = Halo

C

Raising Prices | Destroys the Halo – unless new value to the customer is added in the process. That value must be meaningful to the customer.

THE HALO

VALUE CREATION FOR OUR CUSTOMERS

V = Value to consumerP = PriceC = Costs of production

P – C = Margin

This Present Moment used to be the Unimaginable Future

Stewart Brand The Clock of the Long Now

CONTACT INFORMATION

Dr. Michael R. Burcham

c. 615.400.7662e. [email protected]. www.michaelburcham.comt. www.twitter.com/michaelrburchaml. www.linkedin.com/in/michaelburcham

Handouts Available: www.slideshare.net/michaelburcham