a framework for disruption

The following slides were presented at the London Hacker News event on 27

June 2012. http://www.meetup.com/HNLondon/events/69942082/

Out of context from the voiceover, some slides won’t make a lot of sense, so I’ve

added a few context speech bubbles.

Paywall – but your taxes paid for it already!

JOSH SOMMER CHORDOMA FOUNDATION

CONTEXT: People like Josh cannot get access to the research they need for life threatening diseases. Nor can their doctors, and now even the world’s wealthiest library, Harvard, has urged faculty not to publish behind paywalls because they cannot afford subscription fees.

If we can set a goal to sequence the human genome for $99

-then why can’t we also publish that research for $99?

CONTEXT: A solution is open access or ‘OA.’ The author pays a fee to make the paper free to download. However, it still costs thousands of US $$ to publish OA today.

CONTEXT: In response, I co-founded PeerJ, that has a low fee of $99 for lifetime publishing. I also started a new kid at the same time . Note: I don’t recommend having a kid and a new startup at the same time!

Backed with $950K seed led by O’Reilly AlphaTech Ventures (OATV)

Tim O’Reilly is on the board

London and San Francisco

Raised with just an idea – no product, no revenue, no customers

This is what I’m here to talk about

Use a framework for disruption

Or…a case study of changing academic publishing

#HNLondon, 27 June 2012 @jasonHoyt jason@PeerJ.comCo-founder & CEO, PeerJ

CONTEXT: I’d like to see more ‘real’ problems being worked on by today’s tech talent, rather than more simple apps being built. That’s a tough road though, so the idea here was to give some pointers.

My background is science; formally for past 17 years

Did a PhD in Genetics – witnessed & suffered through woes of getting published

You don’t need a formal edu, but you do need to know your shit & be passionate

FIND A PROBLEM THAT MATCHES YOUR DOMAIN KNOWLEDGE

Framework for disruption- #1

CONTEXT: Even if your talent is something like being a Python programming language expert, you can still partner with an expert in say ‘green-tech.’ Today’s big problems need crossover like that big time if we are going to solve them.

Academic Publishing is 300+ years-old.

The Web has turned into a recent problem for the big academic publishers, just as it did for the music industry.

Academics are pissed.-More than 12K are now boycotting the world’s largest academic publisher, Elsevier. thecostofknowledge.com

FIND A LONG-STANDING OR SOON-TO-BE PROBLEM

Framework for disruption- #2

Two biz models in academic publishingJournal subcriptions (300+ yrs old)Author pays per article (< 15 yrs old)

Printing press technology of 1660 still drives today’s business models. WTF?

FIND A PROBLEM WHERE TECH OR NEW BIZ MODELS CAN BE INTRODUCED

Framework for disruption- #3

CONTEXT: In academic publishing, something as simple as a fresh looking webpage would be a welcome change from the 1990’s look of today’s journals. PeerJ is also adding a third biz model of lifetime membership. Old markets can be disrupted in such ways.

$10 BillionGlobal annual revenue~40% profit margin

150 MillionKnowledge workers(the readers)

10 MillionAuthors(the customers)

The Current Academic Pub Market

1.5 MillionPublications /Year (the product)

FIND A PROBLEM WHERE INCUMBENTS HAVE MUCH TO LOSE IF THEY COPY YOU

Framework for disruption- #4

CONTEXT: If costs of Open Access drop (e.g. PeerJ’s pricing) then the ‘old guard’ with shareholders to answer to won’t be able to dramatically lower costs. Competitive advantage. Similarly, there are old incumbents in energy, banking, etc that have much to lose. Look out for ‘backroom’ politics that the incumbents can afford to play though.

A/BTEST

A/B TEST YOUR IDEA AS EARLY AS POSSIBLE

Framework for disruption- #5

CONTEXT: I tested the appeal for PeerJ with just a simple landing page back in Dec ‘11. Word got back to me that lobbyists & others were already discussing who was behind the idea in D.C. That was my first signal that the idea was worth evaluating and pursuing further. Test your concepts early and cheaply.

Pete BinfieldCo-founder & Publisher, PeerJFriend for several yearsPreviously ran world’s largest journal – PLoS ONE

People who believe in Pete

Pete Me

Join me!

YOU ONLY NEED TO CONVINCE ONE OTHER PERSON – BUT MAKE THEM COUNT

Framework for disruption- #6

CONTEXT: In the end, you don’t need to convince everyone at the start. Choose your co-founder(s) wisely.

Go Make It Happen@jasonHoyt@thePeerJ