why silicon valley continues to innovate and rock the world
DESCRIPTION
A keynote for Tolpagorni's Market Insights conference (Stockholm, Sweden, Nov 2014): what network effects, historical accidents and cultural elements keep Silicon Valley at the front of tech innovation? What can Stockholm companies/startups take from this? FYI, the overly aggressive Silicon Valley boosterism was intentional. Written extra-large for a distant audience.TRANSCRIPT
![Page 1: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/1.jpg)
CLICK TO EDIT MASTER TITLE STYLE
Why Silicon Valley Continues to Innovate and Rock the World
Rich Mironov Market Insights Conference
13/14 November 2014
1 © Rich Mironov, 2014
![Page 2: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/2.jpg)
• Veteran product manager/exec/strategist • HP, Tandem, Sybase, 5 B2B startups as
“product guy” or CEO • The Art of Product Management • First Product Camps, first agile
product manager/owner tracks
ABOUT RICH MIRONOV
2
![Page 3: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/3.jpg)
Ø San Francisco is the center of the (tech) universe Ø Network effects are huge Ø Innovation as a cultural attitude Ø What are the next few revolutions
(and where will they happen)?
AGENDA
3
![Page 4: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/4.jpg)
Historical accidents? • Fashion design: Paris, Milan • Stock markets: London, NYC • Automobile design: Detroit, Tokyo, Stuttgart • Pharmaceuticals: Basel, Brentford, New Brunswick • Security software: Tel Aviv
GEOGRAPHIC SPECIALIZATION AND NETWORK EFFECTS
4
![Page 5: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/5.jpg)
• Stanford University (1891) • Hewlett-Packard (1939): electronic test equipment • Fairchild Semiconductor (1957): integrated circuits • Varian (1948): vacuum tubes, radiation therapy • Intel (1968), Arpanet (1969), Xerox PARC (1970),
Lucasfilm (1971), Atari (1972), Apple (1976), BSD UNIX (1977), Oracle (1977), 3Com (1979), Adobe (1982)…
SILICON VALLEY’S HISTORICAL ACCIDENTS
5
![Page 6: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/6.jpg)
• Most established tech companies • Most startups, most incubators • Most venture capital • Largest tech employment market, most job mobility • Depth of experienced tech veterans, managers,
mentors, researchers, role models • Easiest place in the world to grow a tech startup
NETWORK EFFECTS MATTER
6
![Page 7: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/7.jpg)
• 16,000+ open jobs for software engineers • 1800+ open jobs for product managers • 4000+ startups • Every café is filled with hackers, pitch decks, lean
startups, angel investors, recruiters • Tech is our local sport
SILICON VALLEY TODAY
7
![Page 8: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/8.jpg)
VENTURE CAPITAL
8
$24B
$20B €4B
![Page 9: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/9.jpg)
SOCIAL NETWORKING
9
![Page 10: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/10.jpg)
Silicon Valley Rest of USA Europe Asia
Apple Google Oracle Intel
Facebook eBay HP
VMware Yahoo
Salesforce Twitter
Microsoft IBM
AT&T Amazon Verizon
Dell
Ericsson SAP
Nokia Philips
Alibaba Samsung
NTT Tencent Foxconn
Baidu Hitachi
Panasonic Toshiba
LG Electronics Sony
LARGEST ELECTRONICS/TECH/ COMPUTER COMPANIES
10 Sorted by market cap, > $15B
![Page 11: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/11.jpg)
• Company half-life is short: product managers work for many companies in their careers
• Employment velocity à deep personal networks • Startups always trying to disrupt
existing business models • “What did you learn at your
last company?”
INNOVATION AS A CULTURAL VALUE
11
![Page 12: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/12.jpg)
• Except for people, software startups cost $0 • Talent and speed-to-market matter
• Find the smartest people at any price • Validate, build, launch, repeat
• Profitability is entirely about scale • Can we reach 10M users? 100M? 1B?
SOFTWARE ECONOMICS IS ABOUT TALENT, SPEED AND GROWTH
12
![Page 13: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/13.jpg)
• Free or cheap for thousands of attendees
• “We can validate any product idea and build a prototype by Sunday afternoon”
• Build/measure/learn at warp speed
LEAN STARTUP WEEKENDS AND HACKATHONS
13
![Page 14: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/14.jpg)
OUR ROCK STARS ARE INNOVATORS, CEOs, CTOs, ENGINEERS, FOUNDERS
14
![Page 15: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/15.jpg)
• Transportation: Uber, Google autonomous car, Tesla, SpaceX • Mobile: software IP crushing hardware value • Wearable computing • Biotech: bioengineering components • Internet of Things: billions of smart, interconnected devices • Manufacturing: 3D printing, Do-It-Yourself movement • Investing: automated portfolios • Software-Defined Networks • Every corporate function/department
• Engineering, Finance, Sales, Marketing, HR, Real Estate…
INDUSTRIES TO BE DISRUPTED OR CREATED
15
![Page 16: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/16.jpg)
• We want to disrupt industries and reach B’s of users worldwide
• Rules (laws) are local or national • Some rules are outdated, others
designed to maintain status quo • Market momentum often wins
• Second choice: high-priced lawyers
WE OFTEN IGNORE RULES (AND SOMETIMES LAWS)
16
![Page 17: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/17.jpg)
• Speed matters: time is the enemy • Funding exists, technology is not unique
• Biggest waste is building the wrong product • Validate, validate, validate, validate
• Paper prototypes, integration testing, early adopters, beta
• Revenue outvotes politics • Product management tied to revenue
HOW THIS CHANGES PRODUCT MANAGEMENT
17
![Page 18: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/18.jpg)
CLICK TO EDIT MASTER TITLE STYLE
Voltaire (1772): “The perfect is the
enemy of good”
18
![Page 19: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/19.jpg)
CLICK TO EDIT MASTER TITLE STYLE
Muhammad Ali: “Everyone has a plan
until they get punched in the nose.”
19
![Page 20: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/20.jpg)
• Target worldwide markets • Expect multiple competitors in every segment • Open a Silicon Valley office
• Urgency, talent, venture money, partners, foolish optimism
• Fail fast, learn fast, ship often • Velocity and market momentum beat perfection
HOW TO COMPETE FROM STOCKHOLM
20
![Page 21: Why Silicon Valley Continues to Innovate and Rock the World](https://reader034.vdocuments.us/reader034/viewer/2022052622/559411601a28ab0b618b472c/html5/thumbnails/21.jpg)
CONTACT
Rich Mironov, CEO Mironov Consulting 233 Franklin St, Suite #308 San Francisco, CA 94102 USA
RichMironov
@RichMironov
+1-‐650-‐315-‐7394
21