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@BarryMDownes - CEO#TSSG_WIT
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Agenda
• Overview of the TSSG.
• TSSG Innovation Platform.
• TSSG approach to developing start-ups and some lessons learned.
• TSSG Start-up Platform.
• Q&A.
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TSSG• International Research Institute hosted by WIT. • Founded by Prof Willie Donnelly in 1997 and led
by CEO Barry Downes. • Has 140+ staff and is 100% self funded.
• Expertise in key areas relevant to EI/IDA TIME cluster: • networks, • mobile and • communications services.
The Telecommunications Software and Systems Group (TSSG) at WIT
• Completed over 110 direct industry projects for start-ups in Ireland over the past 3 years and has spun out a number of leading international start-ups such as FeedHenry Ltd.
EXPERTISE
• On doing world class research and innovation - then turning this into economic impact in the South East and Ireland by supporting EI and IDA clients and by creating and supporting start-ups.
FOCUS
IMPACT
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Networks
Network VirtualizationSoftware Defined Networking (SDN)
Mobile
Mobile Cloud Platforms (PaaS) and advanced mobile applications
Communications Services
Communication Services Platforms (PaaS) and
applications e.g. Web RTC
TSSG Core Focus Areas
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Cloud
Software Platform and Infrastructure as a Service
Virtual and Augmented RealityVR/AR Communications, 3D User Interfaces, Education,
Simulation and enabling hardware
Data Mining
Predictive AnalyticsSocial Network Analysis
Data Security
TSSG Core Focus Areas
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•Knowledge and IP•Publications in Leading Journals•PhD Students and Graduates•Academic Network around the World
•Powering Industry’s R&D Centres•Solving Industry Problems•Identification of Future Problems
•Driving EU Research Networks•Establishing Technology Roadmaps•Providing Innovative Solutions.
•Setting European Policy.•Defining European R&D Agenda.•Living at the Heart of Europe
•Building Innovative Companies•Impacting Irish SME’s•Transforming the Local Ecosystem
Co-Directors SFI Connect Research Centre
TSSG Innovation Platform
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TSSG Approach to developing Start-ups / Lessons Learned
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Product & Customer Focus• Our focus is on building software product
companies that can scale internationally.• Key questions include: What’s the problem we are
trying to solve and for who?• Does the product offer benefits, in the customer’s
minds, different from and superior in some way – e.g. better, faster, cheaper to what’s currently offered by other solutions, including the status quo?
• Find out – go talk to the target customer (lots of them).
• Build an MVP and get feedback.• Then rapidly refine to increase the value offered in
each release – ie customer driven development.
www.tssg.org
Ref : Steve Blank (2005) Customer Driven DevelopmentRef: Eric Reeis (2011) Lean Start-up
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Market Focus
• Ideally the market for the start-up is large and rapidly growing.
• Looking for big opportunities, often where we can disrupt existing ways of doing business or serving customers needs.
• A high potential business in a huge, rapidly growing market will require venture capital to support growth.
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Adapted from Everett Rodgers (1962, 2003) and Geoffrey Moore (1991, 2013)
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Industry Focus• We believe it is important to
understand the industry we are competing in and understand how attractive or unattractive is it.
• If the industry is a poor performer overall and are there persuasive reasons why, how we will fare differently?
• Industry structure can be overcome but requires a real understanding of the critical success factors and honest assessment before trying to.– e.g. Music industry
– Selling directly to Telcos
Ref: http://www.imro.ie/music-creators/music-industry-links/structure-of-the-music-industry-in-ireland/
Porter, M.E. (1980, 2008)
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Competition
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CompetitionWhat is our unfair advantage?
• How much will it cost to acquire and retain customers?• e.g. mobile games.
• Will margins be adequate to cover the cost structure?• Will revenues be adequate in relation to the capital
investment needed and the margins generated? • How much cash must be tied up in working capital
(inventory or other) for how long?• e.g. IoT hardware products.
• How quickly will customers pay?
Is the business model economically viable?
Competition is dynamic!
• Patents, trade secrets and so on – that other firms cannot likely duplicate or imitate to compete?
• Superior organizational processes, capabilities or resources that others would have difficulty in duplicating or imitating?
• Superior product benefits that are difficult to replicate.• Network effects.
• Competitors react!• Now image dynamic competition for FeedHenry from
the previous slide …
Osterwalder, Pigneur (2010)
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The Start-up Management Team
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Building the Team
• Can the team identify the Critical Success Factors (CSFs) in the industry?
• Can they demonstrate that they can deliver on these CSFs.• What are the gaps and how can they be addressed?
Can the team execute?
Connectedness
• The need for a team.• The need to have different skills and creative tension but
be able to get on the same page re strategy.• Work ethic - Start-up’s require ferocious work and hours.• Drive and Passion!
• Who does the team know: • up the value chain: suppliers and partner? • down the value-chain: customers?• across the value-chain: competitors and substitutes?
• The more connected the better.
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Putting it all Together
Ref: John Mullins (2003)
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Finance
• Be frugal…. as if its your own money.
• Beg and borrow before you spend.
• Manage cash-flow aggressively.
• Build relationships with the Revenue, customers, suppliers, your bank, and your corporate council.
• Get Audited from day one.
• Manage the company so that its easy to do an investment due diligence and secure investment.
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Other Considerations
• Exhaust your network and every option to hire great talent.
• Can’t complete with Google / facebook on salary or brand but you can exploit the flexibilities of a small company.
• Reward with shares, options, holidays, bonus, travel opportunities, working from home.
• Make your start-up a great, fun and exciting place to work.
• Communicate all the time and let everyone know what’s going on (easier said than done).
• Leverage the supporting agencies – e.g. SEBIC, LEO, Enterprise Ireland.
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Technology
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Software Process / Tools
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TSSG Start-up Platform
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SCIENCE
OtherResearch
Organizations
Angel Networks
and Incubators
Legal and
Audit
Sales Support
VCs
R&D through EI Programs:
Vouchers partners
EI & IDAInternational Office
EU Partners
StartupsEI Clients
Silicon Valley
Multinationals / IDA Clients
Support & Services
HR/FinancialConsulting Recruitment
The TSSG Start-up Platform
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Finally …
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Funding
• For high-growth technology start-ups that target international markets funding is key:
• There are a range of funding supports from start-up, to seed, to scaling: – New Frontiers, LEO, BIC, HBAN, the Banks,
Enterprise Ireland and Venture Capital.
• But how do you access them?
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Questions@BarryMDownes - CEO
#TSSG_WIT