Presentation at Purdue Foundry in Lafayette, Indiana on April 28, 2017 with update on Disciplined Entrepreneurship combining fundamentals of 24 Steps with Myths About Entrepreneurship

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PURDUE UNIVERSITY
FOUNDRY
Bill Aulet
Overview of 24 Steps
April 28, 2017

2. OKAY THEN, LET’S GET GOING …
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2 Stories
DiPol – Revolutionary membrane technology
for direct methanol fuel cells
Lamborghini Dealership
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DiPol
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Missing?
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Entrepreneurship 101 Quiz
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What is the singular necessary and
sufficient condition to have a
company?
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Case 2: Lamborghini Dealership
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What Should We Be?
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Market-Driven
Target Customer-
Driven
Customer-Driven

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3 Conditions for a Market Segment
1. Buy Same Product
2. Same Sales Process
3. Word of Mouth
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Step #1: Market Evaluation

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What is Entrepreneurship?
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Definition of Entrepreneurship – 2 Types
Entrepreneurship
SME (Small Medium Enterprise)
Local Market Focus
Restaurants, Dry Cleaners, Services
IDE (Innovation-Driven Enterprise)
Global Market Focus
Products w/ Innovation at Core
• Δt is short
• Linear growth (capped)
• Less investment required
• Δt is long
• Exponential growth (uncapped)
• A lot of investment required

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Innovation = Invention*Commercialization
Definition of Innovation

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What Is Entrepreneurship?
Innovation
* Technology
essentials
* Knowledge of
science &
engineering
* Skills to develop
* Skills to build
Entrepreneurship
* Business
essentials
* Venture
engineering
* Knowledge to
frame decisions
* Skills to start
* Skills to grow
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What is Entrepreneurship Education?
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Importance of Spirit
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• Willingness and even joy in being
• different …

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Importance of Spirit
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Spirit + Skills
Successful Entrepreneurship

19. Successful Entrepreneurship
=
Spirit
of a pirate
Skills
of a Navy Seal
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+

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Market Segmentation: Personas
Exploratory/
Curious
Ready-to-Go Entrepreneurship
Amplifier
Corporate
Entrepreneur
Description
of Persona
Interested but has no
driving idea or team; is in
exploratory mode; starts
here but will migrate to
another state or out of
entrepreneurship
Chomping at the bit &
just wants help to get
going – has idea, tech
&/or core of team
Interested in
understanding enough to
successfully promote in
their org (e.g., gov, corp,
family business) but is not
the entrepreneur
Wants to be an
entrepreneur in a large
organization
Needs at a
High Level
Need info on career
choice, soft skills,
ideation, team building
and then some first-hand
experience to get a
sense of the process
Wants specific skills and
lots of them, very
quickly; less on the
upfront things
emphasized for the
“curious” persona;
wants the deep,
immersive experience
of being an
entrepreneur on her
idea/technology
Interested in all steps in
some depth but even
more interested in
strategy, policy and
economic impact of the
field. Will want to have
the experience of being an
entrepreneur so can
empathize but more
interested in the process
than the idea or team
Wants depth in
executing the process
so comfortable doing it
again but less tied to
the idea or team; more
interested in
organizational issues
and environment
issues
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Needs Assessment: Business Essentials* 21
Defining & Refining
Product  Market
Fit
Ideation
Team
Building 1
Career
Choice
Soft
Skills
Primary Market
Research
Key Founders’
Decisions
Sales
Basics of
Finance
Communications
Sector Deep
Dives
Customer
Acquisition
Strategy
Product
Design
Product
Development
Leadership &
Culture
Negotiations
Scaling -
Manufacturing
Work-Life
Balance
Financing
HR
Project
Management
Dealing with
Adversity
Core Entrepreneurship Specific Skills :
Corporate
Entreprnrship
Corporate
Strategy
“Nucleation”
(Phase 1)
“Product Definition”
(Phase 2)
“Venture Development”
(Phase 3)
Product
Management
Legal
Business Model
& Pricing
Scaling: Process
& Infrastructure
General Skills Valuable to Entrepreneurs:
Essential Skills for Entrepreneurs (Semi-Customized):
Building
Eship Systems
* - An open framework built for constant refinement

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Notes About Approach and
Framework
• This is a flexible and open process and framework
• Can dynamically add new personas
• Creates new needs
• New needs can be added to the framework (“tile system”)
• Those needs would be represented as tiles or “objects”
• Analogy to object oriented programming
• Allows for systematic identification of new student types and
then …
• Allows for the identification, design, development and
integration of new objects in an efficient and effective manner

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Why Should I Care?
• Employment
• Impact
• Fun
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Goal: Anti-Fragile Humans
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Misperceptions
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7 Whopping Lies
Told About
Entrepreneurs Which are
Actually Damaging to All
Parties Involved

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#1 -
“Entrepreneurs are
mercurial individualists”
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#2 -
“Entrepreneurs are the smartest & most high achieving
people in the room”
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#3 -
“Entrepreneurs are born,
not made”
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#4 -
“Entrepreneurs love risk”
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#5 -
“Entrepreneurs are successful
because they are charismatic”
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#6 -
“Entrepreneurs are lucky”
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#7 -
“Entrepreneurs are undisciplined”
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One Other Misperception …

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The Truth
• Entrepreneurship is a “craft” that can be taught
• Neither science nor art
• Relevant elements of a craft:
– Accessible
– Builders
– Unique Products
– Learnable
– First Principles Exist But Don’t Assure Success
– Apprenticeship

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So Focus Will Be On …
• First Principles
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Grounded in Practice: Examples of
Disciplined Entrepreneurship
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38. Core Material for Course
• Books
• www.disciplinedentrepreneurship.com
• Progress Dashboard
www.detoolbox.com
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Free* Online Courses
Note: Bootcamp is not free

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Overview
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Needs Assessment: Business Essentials* 41
Defining & Refining
Product  Market
Fit
Ideation
Team
Building 1
Career
Choice
Soft
Skills
Primary Market
Research
Key Founders’
Decisions
Sales
Basics of
Finance
Communications
Sector Deep
Dives
Customer
Acquisition
Strategy
Product
Design
Product
Development
Leadership &
Culture
Negotiations
Scaling -
Manufacturing
Work-Life
Balance
Financing
HR
Project
Management
Dealing with
Adversity
Core Entrepreneurship Specific Skills :
Corporate
Entreprnrship
Corporate
Strategy
“Nucleation”
(Phase 1)
“Product Definition”
(Phase 2)
“Venture Development”
(Phase 3)
Product
Management
Legal
Business Model
& Pricing
Scaling: Process
& Infrastructure
General Skills Valuable to Entrepreneurs:
Essential Skills for Entrepreneurs (Semi-Customized):
Building
Eship Systems
* - An open framework built for constant refinement

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How 24 Steps Was Put Together
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The 24 Step Approach is Really
Focused on One Tile
• Defining and Refining Product ↔ Market Fit
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Benefits of Approach
• Comprehensive yet Practical
• Integrated
• Proven & Tested – To Stand the Test of Time
• Sequential/Prescriptive
• Creates Common Language for Knowledge
Transfer and Accumulation
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Recent History & News
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End
Questions?
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End
Questions?
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