Improving Competitiveness in Croatian Enterprises - MINPO - Zadar - Croatia - April 18 2015

Improving  Compe--veness  at  Croa-an  Enterprises  

Dr.  Burton  Lee  PhD  MBA  European  Entrepreneurship  &  Innova1on,  Stanford  Engineering  

www.StanfordEuropreneurs.org  |  @Europreneurs    

XIX  NATIONAL  COUNSELLING  ON  ECONOMY  AND  ENTREPRENEURSHIP  Ministry  of  Entrepreneurship  and  CraKs  (MINPO)  

Zadar,  Croa1a  April  18  2015  

Importance  of    Product  Design    

for    Building  Successful  

Companies…    

Direct  and  Large-­‐Scale  End-­‐User  

Engagement  

 Reducing  Startup  &  New  Product    

Failures    Thru    

‘Premature  Scaling’      

Mentoring  Croa-an  Startups  at  Geek  Business  Camp,  Brown  Forum,  Osijek,  April  2015  

 ‘Maker’  Movement    

‘Makerfaire  Balkans’  in  CroaIa  

 ‘MakerLabs’  Infrastructure  

Across  CroaIa  

ABOUT THE SPEAKER

DR. BURTON LEE PHD MBA

STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES

[email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

h@p://www.europeanentrepreneursatstanford.com  |  h@p://me421.stanford.edu  Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   8  

Map  of  Presen-ng  Speaker    Na-onali-es  

European  Entrepreneurship  &    Innova-on  @  Stanford  Engineering  

(ME421)        

Winter  2014  –  Year  Six  

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)

January  27  @  Stanford  Engineering  Vassil  Terziev  &  Japec  Jakopin  

January  13  @  Stanford  Engineering  Uwe  Horstmann  &  Signe  Viimsalu  

Topics Covered

Apr  18  2015  

Equity Crowdfunding

European Entry Strategies for Valley Startups

East v West Europe

Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   13  

The Story of European Entrepreneurship in Europe Europe vs Silicon Valley

Apr  18  2015  

Entrepreneurship  and  Innova-on  in  Europe  Today  

Europe  vs  Silicon  Valley    

Europeans  in  Silicon  Valley  

Arts,  Culture,  Design,  Language  

&  Tradi1ons  

History  &  Poli1cs  

Law  &  Policy  

Ins1tu1ons  &  Personali1es  

Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   14  

Increasing New Product Success Rates

at Croatian Companies

‘Geek  Business  Camp’  Startup  Teams  OKen  Missed  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  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   16  

Proven  Approaches  to  Improving  New  Product  Success  Rates  

•  ‘Design  Thinking’  – Asking  the  Right  Ques1ons,  Rethink  Assump1ons  – User  ‘Needs  Finding’  and  Observa1on  – Disrup1ve  Innova1on  &  Product  Designs  

•  ‘Lean  Launchpad’  – Deep  and  Intense  End-­‐User  Engagement,  Tes1ng  and  Feedback  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   17  

The  Essence  of  ‘Design  Thinking’  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   18  

IDEO  Shopping  Cart  Project  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   20  

How  Would  You  Redesign  The  Shopping  Cart  for  Modern  Shoppers?  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   23  

‘SoK  Prototyping’  Wood,  Plas-c,  Paper,  Glue,  Scissors,  Tape  

Observe  Real  Customers  &  Customer  Behavior  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   24  

Direct  Engagement  with  Real  Users  

27  

Elements  of  ‘Design  Thinking’  •  Needs  Finding  

–  Direct  Observa1on  of  Users  and  User  Behaviors  –  User  Surveys  and  Ques1onnaires  –  Interviews  –  Shadowing  –  Understanding  &  Iden1fying  Proper  Context  for  New  Products/Services  

•  Idea-on  –  Improvisa1on  –  Storytelling  –  Storyboarding  –  Use  Case  Analysis  

•  Prototyping  –  ‘Sod  Prototyping’  of  products/services  with  paper,  cardboard,  plas1c,  wood  

•  Itera-on  –  Pivo1ng  

•  Ques-on-­‐Asking  –  Asking  the  ‘Right  Ques1on’  |  Knowing  ‘Wrong  Ques1ons’  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   28  

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

•  Combines  many  ‘hard’  &  ‘sod’  disciplines:  –  Sociology                                                                                    Design  –  Psychology                  Art  &  Drawing  –  Anthropology  –  Human  Factors  –  HandiCrads  &  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’  Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  

Innovarium  Ventures  |  Silicon  Valley   29  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   30  

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

Deep  End-­‐User  Engagement  

•  Intense,  frequent  and  large-­‐scale  direct  engagement  with  users    – Using  ‘sod  prototypes’,  storyboards,  use  case  diagrams,  or    

–  other  methods  of  describing  a  new  product  concept,  how  the  product  works,  and  how  a  consumer/enterprise  might  use  it  in  their  business  environment  

•  Users  can  ‘play’  with  the  product  ‘sod  prototype’  and  suggest  changes  to  features,  provide  feedback  as  to  how  they  may/may  not  use  it  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   32  

Elements  of  ‘Lean  Launchpad’  •  Avoid  ‘Premature  Scaling’  of  your  company/new  product  

line  thru  extensive  pilo1ng/tes1ng  with  users  first  

•  Consumer  Pilots  –  Hundreds  of  users  –  ‘Meet  with  4  customers  a  day’  –  Silicon  Valley  VC  –  ‘Our  student  teams  meet  with  10-­‐15  users  a  week’  -­‐  Stanford  

•  Enterprise  Pilots  –  Dozens  of  users  

•  Cri1cal  to  do  before  approaching  investors  •  Developed  by  Steve  Blank  at  Stanford  Engineering  School  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   33  

SoKware  Products  &  Services  

‘Design  Thinking’  and  ‘Lean  Launchpad’  methods  are  highly  applicable  and  used  for  soUware  products  and  

services  also  

What  is  The  Principal  Objec-ve  Here?  

‘Design  Thinking’  +  

‘Lean  Launchpad’    =>>    

Product-­‐Market  Fit  

Actual  Product  Design  Process  

36  

Search  for  Product-­‐Market  Fit  

Innova-on  &  Entrepreneurship  Ecosystem  Skills  Gaps  in  Europe  

•  Product  Design  •  Sales  &  Marke1ng  •  Product  Management  •  Strategic  Use  of  Enterprise  Sodware  

•  Many  European  companies  and  universi1es  show  substan1al  weakness  in  these  areas  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   37  

 Formal  Recommenda-on  to  European  Commission  to  Include  ‘Design  Thinking’  &  Direct  End-­‐User  Engagement  in  Horizon2020  Consor-um  Performance  Requirements  

October  2014  

Product  Design  Excellence  &  End-­‐User  Engagement  Skills  Are  EssenIal  to  

Growing  Successful  Companies  in  CroaIa    

Maker  Movement  ||  MakerFaire  •  ‘Makers’  are  people  who  make  things  with  their  hands  – Cradsmen,  cradswomen  – Clothes  makers  – Machinists,  welders,  builders,  plumbers  – Ar1sts  and  Designers  – Sodware  Engineers  – Mechanical  &  Electrical  Engineers  

•  A  global  movement  out  of  Silicon  Valley  and  other  loca1ons  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   40  

MakerFaire  Balkans  |  Croa-a  ‘MakerLabs’  Across  Croa-a  

•  Why  not  bring  MakerFaire  to  Croa1a?  •  Opportunity  to  become  the  center  of  maker  ac1vi1es  and  events  

in  the  Balkans  region  

•  Put  ‘MakerLabs’  across  Croa1a  –  Privately  run  companies,  also  in  public  organiza1ons  –  Where  engineers,  crads  people,  companies,  students  and  professors  can  come  to  build  and  make  things  quickly  and  at  low  cost,  using  MakerLab  facili1es,  equipment  and  mentors  

•  Mee1ngs  for  upcoming  Minister  visit  to  Silicon  Valley  –  O’Reilly  Media  (owns  MakerFaire  franchise)  –  TechShop,  Redwood  City  (Silicon  Valley’s  leading  private  ‘MakerLab’)  

Apr  18  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |  Silicon  Valley   42  

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www.StanfordEuropreneurs.org me421.stanford.edu

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,  sodware/AI/robo1cs,  manufacturing  

•  Selected  recent  clients  –  US/European  technology  startup  companies  –  alterna1ve  energy,  robo1cs/AI,  sodware,  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