entrepreneurial education

Kodak vs. Fujifilm:Lessons Learned Looking at Winners and Losers- Digital Photography Market

January 31 in Business, Entrepreneurship, intrapreneurship, Product Development by Paul Silverman | Comments Off on Kodak vs. Fujifilm:Lessons Learned Looking at Winners and Losers- Digital Photography Market

As we all know, the digital photography revolution impacted the traditional film market. which in 2000, accounted for 60 percent of Fujifilm profits.. The film market went to basically nothing, but Fujifilm found new revenue sources and thrived. Kodak was the global leader in the traditional film market but did not survive the technology disruption.

Why?

A recent Economist article www.economist.com/node/21542796 provides excellent insights on strategies both established firms pursued in response to changes in the film market. There are also many lessons we can learn here which I believe help entrepreneurial firms seeking to identify and pursue new opportunities in highly competitive, changing, uncertain, high risk markets.  Here are three  insights that I believe are particularly helpful:

•    When Traditional Markets Change Dramatically, New Opportunities Emerge: Think Out of the Box (or ‘room’ as I noted in my recent book) To Create Winning Strategies

Look at how Fujifilm responded to the demise of the film market. Developed new products (cosmetics, others) leveraging competencies in chemicals and technology; Created film technology for displays, among other ideas. These new directions also create opportunities for agile entrepreneurial firms who embrace a similar
strategic vision, understand where technologies and markets are heading, understand where and how business processes can be adapted to create value and competitive position. What this also implies are new alliance opportunities at all levels including technology, distribution, marketing reach and so on. The starting point is to “think strategically’ which is  an entrepreneurial survival skill in today’s dynamic, global marketplace. Strategy planning matters, and it is a critical entrepreneurial skill worth honing.

•    Avoid the ‘Paralysis By Analysis’ Problem

Kodak was hampered by slow reaction to rapidly changing market and technology shifts. As noted, Rosabeth Moss Kanter of Harvard Business School suggested that Kodak executives “suffered from a mentality of perfect products, rather than the high- tech mindset of make it, launch it, fix it.”  The message here for entrepreneurial firm managers?  Obviously have to balance this with some analysis, but it often “Better to beg forgiveness than ask permission” to successfully pursue new business directions.

•    Disruptive Technology Innovation Always Occurred and Always Will, Only Faster

To see the traditional film market disrupted is really no surprise. Every sector is changing, and many are disappearing due to tsunami- like technology shifts.  We can discuss how long market shifts will take, what new sectors will emerge, who will be
competitors and so on, but the key point is almost all markets will change due to technology disruption .  So it is really no surprise to see the demise of Kodak and many others (e.g., minicomputer manufacturers, large copier companies, Borders, record stores, others)  who either did not fully embrace these radical changes, did not want to “disturb” their current business, or thought their businesses would exist forever. And these changes mean opportunity for agile entrepreneurial firms that understand
the changing competitive dynamics and develop well crafted strategies.

Paul B. Silverman

Author: Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives http://paulbsilverman.com/books/

Email:            paul@paulbsilverman.com
blog:               http://paulbsilverman.com/blog/
Linked in:      Paul Silverman
Twitter:         globalbizmentor

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Next Gen Ad Analytics:’Finding the Significant Few Among the Trivial Many’

January 10 in Business, Entrepreneurship, Internet TV, intrapreneurship, Product Development, startup, Strategy by Paul Silverman | Comments Off on Next Gen Ad Analytics:’Finding the Significant Few Among the Trivial Many’

The online advertising market is estimated at more than $30 billion in 2011  growing at 22 percent annually based on Internet Advertising Bureau (IAB) statistics. What we are seeing is explosive growth of predictive-analytics based tools and applications to drive the creation of new targeted ad services.

Look over today’s announcement  http://tinyurl.com/7tmmvsp that predictive analytics firm eBureau is spinning off its online advertising targeting business into a new company called TruSignal(TM) offering targeted advertising using proprietary predictive analytics and other tools.

All companies are interested in finding what we call the ‘significant few among the trivial many’ – I foresee many exciting developments and issues emerging here as we pursue this goal:

  • Expect other online advertising companies to create separate, specialized analytics driven service entities – analytics technology is driving this trend, is highly specialized, and this is moving very quickly
  • Different skills sets are needed as ad business moves to even more advanced analytics and visualization technologies- think of the implications for the online advertising sector looking for creative and ‘analytics-savvy’ candidates – new skill sets are needed now to secure and retain industry leadership
  • Expect to see more analytics spin-offs in other sectors- the same model is occurring in the health care, financial services and others

Always important to look at how major companies respond to these changes (think response of Barnes & Noble vs Borders to the e-book revolution). How does a major ad firm, well entrenched in traditional print, TV, radio media, address these new trends- most are obviously committed to the social media revolution but new predictive analytics tools are changing the rules of the game, helping ‘find the significant few among the trivial many’ in ways not possible today.

As these services accelerate, and they will, I expect to see major firms ramp up internal efforts to develop competitive analytics services organically. These powerful services are evolving very quickly and I expect to see major industry leaders seeking alliances with creative innovation leaders in the predictive analytics market.

 

Paul B. Silverman is a Lecturer in the Robert H. Smith School of Business in the University of Maryland. He also serves as CEO of Sante Corporation, an early stage personal health care management company, and Managing Partner of Gemini Business Group, a new venture development and advisory services firm. He can be reached at paul@paulbsilverman.com or via Twitter at @globalbizmentor

 

Paul B. Silverman writes about entrepreneurship, healthcare, analytics, and strategy management and serves as Advisor, Speaker, Educator, and Managing Partner of the Gemini Business Group, LLC, a new venture development firm, and author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” He also serves as Adjunct Professor in the School of Business at George Mason University. See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

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Boards & Directors 35th Anniversary Edition Features Worm On A Chopstick

December 13 in Business, Entrepreneurship, International business, intrapreneurship, Strategy by Paul Silverman | Comments Off on Boards & Directors 35th Anniversary Edition Features Worm On A Chopstick

Very pleased to announce that the upcoming 35th Anniversary Edition of Boards & Directors magazine will feature Worm On A Chopstick: : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives in its recommended reading section “Book it: Best bets for board reading“.  As you may know, Boards & Directors magazine targets officers and directors of public companies. To see the  review of ‘Chopstick’ and other recommended books, click here Worm On A Chopstick Featured in Directors & Boards 35th Anniversary Issue

I sent many messages to traditional management in ‘Chopstick’ (e.g., innovation management, entrepreneurial thinking, globalization, etc.), but most positive response for the book to date has been from the entrepreneurial sector. I am very appreciative of the recognition of ‘Chopstick’ which is in good company with the other recommended books here.

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How To Be A Startup CEO – Bing Gordon Kleiner Perkins Video

December 11 in Business, Entrepreneurship, intrapreneurship, startup, Strategy by Paul Silverman | Comments Off on How To Be A Startup CEO – Bing Gordon Kleiner Perkins Video

Excellent video I highly recommend by Bing Gordon, partner at VC firm Kleiner Perkins Caufield & Byers (http://tinyurl.com/6vc5hy8). I also posted comments on video site and will be using some of these ideas in upcoming entrepreneurship course am teaching at GWU;

My posted comments as follows:

Excellent insightful presentation. I contribute teaching entrepreneurship in the George Washington University School of Business CFEE (“Center for Entrepreneurial Excellence”) and also serve as CEO of Sante Corp, a new venture with proprietary technology developing a new web-based personal health management system. My recently published book Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives shared perspectives and tips on what entrepreneurial company managers need to know to move to beyond a start-up to create a high growth company.

Many excellent management tips and messages in Bing Gordon’s video I am sharing with both students and colleagues. There are 3 messages in particular I am emphasizing:

  • The Need to Balance Management and Entrepreneurial Responsibilities Entrepreneurship is messy and often frenetic, pursuing innovative technologies, new product launches and building an organization with minimal capital. CEO must nuture and balance entrepreneurial culture with clear focus on tightly managing results. I find many entrepreneurs lack the ‘traditional’ management skills and have a ‘build it and they will come’ philosophy- these new management skills can and must be learned. Bing Gordon’s presentation clearly reinforces this point.
  • Quantifying Objectives with Trackable Milestones Gordon describes Intel’s ‘OKR’ or ‘Objectives and Key Results’ management approach – managers set objectives and identify and track 2 to 3 results, and managers expected to achieve 70 percent of results. Very important discipline which helps companies grow and send messages to Boards and investors. I have used KPI’s (‘Key Performance Indicators’) for years in many global businesses, discussed KPIs in my recent book, and counseled many CEO’s to adopt and use these tools . Also proposed a similar approach to track large numbers of new inner-city entrepreneurial companies in a new “Entrepreneurial Empowerment Program (EEP)” I am proposing to the administration. Excellent discipline and should be more widely promoted.
  • CEO’s Need to Implement Scalable Processes CEO’s need to think and plan long term- that means understanding that scalable processes must be established early, what are the objectives of these processes, when are they needed, what cost-effective solutions can we implement now to serve as ‘building-blocks’ as business scales. This message is often missed by entrepreneurial managers struggling with day-to-day challenges with limited resources.

Thanks for sharing an excellent, insightful presentation.

Paul B. Silverman

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How A Startup Catalyst in Lebanon Helps Young, Aspiring Entrepreneurs

November 26 in Business, Entrepreneurship, International business by Paul Silverman | Comments Off on How A Startup Catalyst in Lebanon Helps Young, Aspiring Entrepreneurs

How A Startup Catalyst in Lebanon Helps Young, Aspiring Entrepreneurs

You read that right, Lebanon. One of Lebanon’s most active startup catalysts, Seeqnce, hosted a new competition in partnership with Cedrus Ventures during Global Entrepreneurship Week.

Over two weeks in Seeqnce’s new interactive workspace in Hamra, young aspiring entrepreneurs submitted ideas, formed teams, underwent training and selection, and then completed a 48-hour bootcamp, culminating in a prototype pitch to judges. Of
60 initial entrepreneurs, only 42 made the initial cut to form 11 teams, and one team dropped out due to the pressure. Many fledgling startups gained valuable experience here.

Teams present their business models to the jury, led by the Minister of Telecommunications Nicolas Sehnaoui. Each team had five minutes to explain their business concept and general revenue model, and then they had to showcase either a working prototype or a skeleton of their website. The jury assessed them based on four criteria: team members, presentation, product, and viability. Jury members asked tough questions, such as the supply chain of some products and how some of these startups were differentiating themselves from other established companies on the market.

The above highlights are extracted from an interesting article which I recommend reading
http://www.wamda.com/2011/11/its-not-just-about-the-idea-at-startup-competition-the-execution

Here are my observations on the above:

  • The MENA (Middle East North Africa) region has a vibrant, energetic new venture community driven by aspiring entrepreneurs – this is a positive force in these countries – I find many in the U.S. are not aware of this
  • The MENA economies are really driven by smaller companies – for example, in Saudi Arabia, about 40 percent of the population work in companies with market cap of less than $15,000. While many are what we call ‘necessity’ vs ‘opportunity’ driven small business, nonetheless the new venture momentum is strong
  • The above scenario is, at some level, repeated in every country in the world. Global entrepreneurship is alive and well. As an example, I closely track the health care sector and while the US has an impressive health care system, most would be surprised at the level of innovation  emerging from overseas entrepreneurs.
  • Helping these efforts provides many of the benefits you would expect such as regional economic growth, job creation, and so on. Being directly involved in this area several years ago, I saw one other benefit- the ability to identify and build on these
    relationships to create a win-win and also help U.S. companies and our economy.

Today this is an ad-hoc effort . During a November 21st TV interview on the Inside Scoop Business program http://www.ustream.tv/recorded/18671440 , I described a new program, the AEGIS program (“Accelerated Entrepeneurial Global Investment System) I am proposing to help attract overseas innovative ventures and technology to the U.S. market to promote job creation, innovation, and economic growth. Some key features of the proposed new program which I described in the interview:

  • Replaces today’s ad-hoc approach to identify, analyze, track and manage new ventures with a highly structured, well-defined program
  • Builds a base of ‘showcase’ companies in targeted sectors (e.g., alternative energy, bio-tech, health care, others) that provide high upside, economic benefits
  • New U.S. entities have global reach thus creating new export opportunities

I am starting discussions with the administration in early December related to AEGIS and will be seeking to attract major business partners to also participate. From my perspective looking at global entrepreneurship, I see many benefits here and the
ability to create win-win situations with overseas partners.

Stay tuned.

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Entrepreneurship -Interview on Inside Scoop Business Show Nov 21st

November 24 in Business, Entrepreneurship, startup, Strategy by Paul Silverman | Comments Off on Entrepreneurship -Interview on Inside Scoop Business Show Nov 21st

Agreed to be interviewed on weekly Upside Business Show November 21st- live on local channel 10, FIOS, Comcast, other TV markets, and live web streaming

Copy of broadcast now available at http://www.ustream.tv/recorded/18671440 (click on Nov.21st show if needed)

Welcome your comments on the show – I think local entrepreneurs may find this helpful

Here is blurb I shared with local press and regional business development groups after the program:

In the one hour program, I  reviewed entrepreneurial strategies, perspectives for entrepreneurs, sharing some perspectives on evaluating ventures and new venture strategy.

I also reviewed several new entrepreneurial programs I have proposed to support job creation and economic growth- discussion expanded on information in my recently published book Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives ( available at Amazon, Kindle) Good discussion with strong feedback – I am encouraged by the positive response

I do see real opportunity to develop creative entrepreneurial-driven, business expansion programs and  shared some of the directions I am pursuing on the show. Given today’s economic situation, we need to do more here.

I have shared my views on what I think should be done and will be talking with both administration staff and private groups in the next few weeks to discuss these initiatives. I welcome the feedback of others who also have interest and ideas- we need a dialog here given the job creation and economic challenges we are facing.

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New GWU Course Focuses on Helping Entrepreneurial Companies Grow

November 23 in Business, Entrepreneurship, startup, Strategy by Paul Silverman | Comments Off on New GWU Course Focuses on Helping Entrepreneurial Companies Grow

We know the skills required to launch a business, what I call SYOB skills (‘start your own business’),  are very different from skills needed to grow and create a scalable, sustainable business.

I am pleased to advise George Washington University Center for Entrepreneurial Excellence (“CFEE”) in the School of Business will now offer a new 1 1/2 credit seven week undergraduate course, Entrepreneurial Management I, MGT 4900,  starting January 7th and meeting Thursday 3:30 to 6:00 PM.I serve as an Adjunct Professor in the GWU School of Business and will be teaching the new course.

I developed the new undergraduate course to address the skills I believe are  needed to help  early stage companies grow- I find these are not well understood by entrepreneurial management teams I work with and are  missed in most traditional entrepreneurship programs.

The new course will use textbook and HBS cases – this will be a highly interactive, fast paced course. I am expecting  strong response to this new course and if you want to attend, early registration is recommended. For more information, check the GWU registrar website or contact me.

Here is an excerpt from the course syllabus- as you can see this is not a traditional “SYOB” course, and I believe will be well received by students based on my experience both teaching and working with many early stage ventures:

Course Description

Structured as a fast paced, dynamic, “learn by doing” integrated program, Entrepreneurial Management 1 (“EM 1”) introduces students to the skills needed to address critical entrepreneurial company issues and opportunities, develop winning strategies, understand how to address today’s entrepreneurial age challenges, and grow entrepreneurial ventures.

Entrepreneurial Management takes an integrative, multi-functional approach to the entrepreneurial business management issues facing managers of both emerging entrepreneurial firms, as well as traditional major firms seeking to address today’s entrepreurial age challenges and opportunities impacting their business.

Today’s traditional companies must “think entrepreneurially” to survive and grow, addressing today’s market challenges and opportunities. But to survive and grow, entrepreneurial companies must also adapt; moving from start-up to a sustainable business demands moving beyond “start your own business” skills and learning to think like “traditional” management. EM 1 addresses the core issues faced by all firms seeking to both understand today’s entrepreneurial age challenges, and develop new strategies, skills and perspectives to create defensible and sustainable businesses.

Within the EM1 course, we will examine critical strategic entrepreneurial management issues focusing on six core study areas:

  1. Innovation Management: New Directions in Developing, Leveraging and Managing Innovation
  2. New Technology: Driving Creative Business Models
  3. New Product Development: Creating Sustainable, Defensible Businesses
  4. Transitioning Challenges: Moving from Emerging Entrepreneurial to Professionally Managed Firm
  5. Globalization: Reshaping Markets, Products, Processes, Strategies
  6. Strategy Management: Challenges, Best Practices and Strategies

Through lectures, case studies, assigned readings, class assignments, and students’ active classroom participation, Entrepeneurial Management 1 provides students with a strong foundation of key entrepreneurial management a dynamic, challenging, fast-paced, learning environment.

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Comments on Washington Post Article on Student Entrepreneurship

November 8 in Business, Entrepreneurship, startup by Paul Silverman | Comments Off on Comments on Washington Post Article on Student Entrepreneurship

Offered comments today on Washington Post article “The Boss in the Mirror” reviewing new ventures created by student entrepreneurs and entrepreneurship education in universities- check out   http://tinyurl.com/79kt79f

 

 

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We Need More Focus on Intrapreneurship Not Less

October 31 in Business, Entrepreneurship, intrapreneurship, Strategy by Paul Silverman | Comments Off on We Need More Focus on Intrapreneurship Not Less

Involved in Global Entrepreneurship Week at many levels – contributed to New Zealand’s  interest in promoting intrapreneurship – posted following comments today:

We Need More Focus on Intrapreneurship Not Less

Very important topic and should be supported. Glad to contribute.

We see changing technologies, market shifts, new competition and a changing regulatory situation challenging major players in all sectors. The ability to understand and effectively respond to these changes is how I define intrapreneurship. I frequently use 3M, GM and Google when discussing intrapreneurship- all provide insight.

Most know 3M invented innovative products for notes, waterproofing and adhesives, and some were developed ‘by accident.”

Was these pure luck or serendipity? It sure looks like 3M’s success was random and unplanned, and many might think so. Look a bit deeper, however, and you get a different perspective and learn a lesson or two.

At 3M, researchers are expected and encouraged to push the envelope, make
mistakes, and pursue new opportunities. 3M management reinforces this by
mandating that all researchers spend at least 15 percent of their time pursuing ideas that have nothing to do with their normal tasks—pushing the envelope, looking beyond mistakes to take the time to understand, research, dig deeper—all consistent with 3M’s innovation management leadership position. And 3M’s commitment to innovation is reinforced in the company’s mission statement: “To solve unsolved problems innovatively.” Sounds boring to some, but make no mistake- mission statements drive companies.

Further reinforcing this commitment is 3M’s impressive $1.4 billion R&D budget in 2008, about 4 percent of net sales revenue. But these emerging new technologies create disruption, and the need for new business processes, retooling and efficiently managing production, marketing, logistics with major business segments changing every several years. And 3M does it well, an example of effective “tops down” intrapreneurship and change management skills.

Now look at Google. Google, founded in 1998, started as a basic search engine,
ramped up sales to about $17 billion in 2007, and achieved a market cap of about $220 billion in November 2007. Note while Google looks like a high growth entrepreneurial venture which it obviously was, Google had
to acquire the same ‘intrapreneurship’ skills needed to grow,i.e., change
management, adapting business processes, focused R&D/product development, skillful competitive analysis/strategy development and so on. No small task for a “startup” like Google but they did it well

Finally look at GM. Started in 1908, a ‘traditional’ company, a “flagship” automobile brand from 1931 to 2007, and valued at less than $20 billion in late 2007, less than 10 percent of Google. Even after a $50 billion government bailout in 2009, today General Motor’s market cap is only about $51 billion, about 29 percent of Google’s $173 billion.

You can argue I selected a dramatic example here, maybe argue that Google “was in the right place at the right time,” at the cusp of the Internet revolution, while GM is stuck in a mature business, auto manufacturing, with nowhere to go but fight for market share in a tough, competitive global market. I consider this ‘traditional thinking’ that really doesn’t work well with markets and technologies morphing, emerging global players, and intense competition from nontraditional players.

Remember the minicomputer market, with players like WANG, DEC and others who missed the PC market shift, failing to acquire ‘intrapreneurship’ skills or “think entrepreneurially,” a term I defined in my recent book.

Bottom line – intrapreneurship is a critically important management tool that should widely promoted if major players are to effectively respond to todays ‘entrepreneurial age tsunami’ now impacting all market sectors.

Paul B. Silverman

Author: Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives http://paulbsilverman.com/books/

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Comments on Report Accelerating Entrepreneurship in the Middle East and North Africa

October 27 in Business, Entrepreneurship, Product Development, startup, Strategy by Paul Silverman | Comments Off on Comments on Report Accelerating Entrepreneurship in the Middle East and North Africa

 

Recommend read “The Young Global Leaders Forum and Booz & Company released a report on Accelerating Entrepreneurship in the Middle East and North Africa”   http://www.wamda.com/2011/10/10-steps-from-young-global-leaders-and-booz-for-accelerating-entrepreneurship-in-mena –was co-authored by Wamda’s CEO and Young Global Leader Habib Haddad. Excellent perspective on the entrepreneurial opportunities in this region. I have met with senior government staff in recent years – this report confirms my view this is an area of high potential

Submitted following comments in response to report:

Excellent insightful report I recommend all read – one key finding clearly shows that investing in new policies that drive growth of ‘microenterprises” (defined as value less than $15,000) has great potential to drive regional economies.

As noted given size these can be dismissed as irrelevant – look deeper and you see in Saudi Arabia, microenterprises account for 40 percent of all jobs, in Morocco 65 percent, similar in other countries

Other key point – solution to grow and improve survival rate of microenterprises is not just more funding as many may expect – cultural, education,mentoring all play a role. I have discussions in progress with a partner now to contribute in-region with new approaches addressing entrepreneurial education and many exciting initiatives in progress here.

Clearly very active entrepreneurial community exists within the MENA region and not sure many realize this. Also opens doors for alliances with U.S. partners, another opportunity I see developing quickly. Many implications for US also – while we may not have as many “necessity-driven” entrepreneurial ventures here, small/medium enterprises (SMEs) , with effective policies, can drive new jobs and economic growth.

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