A practical introduction to - and overview of - the entrepreneurship journey, based on the ecosystem in Copenhagen area. From a lecture, I gave at Aalborg University CPH for engineer candidates (cand.polyt study) in the 'Entrepreneurship, Innovation & Business models'-course as part of the 'Converging Mediatechnology' track.

1. A PRACTICAL APPROACH TO INNOVATION
- The Entrepreneurship Journey in the Ecosystem
Johan Winbladh
AAU – Sept. 2013
johanwinbladh@gmail.com
M: 21915612
www.medieinnovation.dk
Photo: Erik Johansson – Go Your Own Way

2. • Marketing Strategist
• Market Researcher
• Commissioning Editor (new media)
• Project Manager
• Media Innovation Consultant
About me (2)
The ’about me’ slide
• Media industry pioneer
• 3 innovation consortiums
• Organiser of Startup Weekend
• Mentor, Coach, Advisor
• CPH Entrepreneurship ecosystem networker

3. The innovation strategy contains 27 policy initiatives
regarding research, innovation and education.
It focuses on a better knowledge exchange between
companies and knowledge institutions, across borders
and between the public and the private sector.
http://fivu.dk/en/publications/2012/files-2012/innovation-strategy.pdf
The National Innovation Strategy

4. http://fivu.dk/en/publications/2012/files-2012/innovation-strategy.pdf
1. Innovation driven by societal challenges
Demand for solutions to concrete societal challenges must be given higher priority in the public
sector innovation effort.
2. More knowledge translated to value
Focus on more effective innovation schemes and better mutual knowledge transfer between
companies and knowledge institutions.
3. Education as a means to increase innovation capacity
A change of culture in the education system with more focus on innovation and value creation.
There are three focus areas in the strategy:

5. http://fivu.dk/en/publications/2012/files-2012/innovation-strategy.pdf
The National Innovation Strategy: Aims & objectives

6. http://fivu.dk/en/publications/2012/files-2012/innovation-strategy.pdf
The National Innovation Strategy: The System

7. MEDIA EVOLUTION CITY, MALMÖ: Academia, commerce and industry and the public sector
established Media Evolution City cooperating with and housing 100+ Startups on 7500m2
MEDIA CITY BERGEN, (NORWAY) : 50 small, large, new and old media companies moves in to
45,000 m2 in 2016 and gather 1500 people.
The vision is to become an
international hotspot for
innovation and knowledge in
media where at the same place
is TV channels, newspapers,
providers of media technology,
Startups, education and
research.
Example: Connecting startups with established Biz (1)

8. Perhaps you dream about something like this?
Founded: 2009 in Copenhagen
Acquired: 2012 by Citrix Systems for $43.6M
Founded: 2005 in Copenhagen
Acquired: 2008 by Vodafone for €31.5M in Cash
Founded: 2001 in Copenhagen
425 employees, International offices, Topranked in industry
Founded: 2007 in Copenhagen
250 employees, Headquarter in San Franisco, $86M in total investment.
Founded: 2001 in Copenhagen
Acquired: 350 employees, Serving 29.000 restaurants in 13 countries
Founded: 2009 in Copenhagen
100+ employees, 200.000 customers in 193 countries, Total value $137M

9. HOW DO YOU WANT TO DISRUPT?

10. Exchange of goods or services can occur when:
1.Customers maximize utility from the good
2.Companies can maximize profit
Both parties constantly evaluate opportunity cost

11. THEART OF FAILING

12. The path from idea to growth
Time
Networking
Bootstrapping Accelerators
Team-up
Re-teaming Angels
Investors
A-funding
Pivote
B-funding
Idea
Desillusion
Initiate
Enthusiasm
Proto
typing
Beta
Product
Launch Growth

13. Entrepreneurship stage 1: Initiation –Team & Idea
Build the Team carefully - performers
attract investors
Pitch the idea – addressing a customer
need, fun to work with

14. Entrepreneurship stage 1: Initiation - Networking

15. PITCH YOUR IDEAS
Concept development
& Business models
Entrepreneurship stage 1: Initiation – Kick off

16. 110 PEOPLE. 54 HOURS.

17. 40 PITCHES

18. 12 IDEAS CHOOSEN
TEAM FORMING:
DEVELOPERS, BIZPEOPLE, DESIGNERS
Photo: Ernst Poulsen

19. Photo: Ernst Poulsen

20. Photo: Ernst Poulsen

21. Photo: Ernst Poulsen

22. OUTCOME:
• Lots of fails and learning!
• 5 winners continued with accerator growth programmes
• Tools for growth
• At least 3 companies formed
• Ambassador experience from entrepreneurship approach
• Cultural change (bottom-up activism)
• Networking across industries and specialists
• Connections between corporations, entrepreneurs and students
• Inspiration for educational institutions
"The ideas, the spirit and the effectiveness of
the groups was amazing to see, especially the
work across different groups of developers,
business people and people with completely
different backgrounds were enormously
rewarding."
"Usually when you finish a project you sit with
some long Word document or Power Point
presentation. Here people created solutions that
actually works and can be used, it is insanely
impressive how much people have reached to
build. It's really cool to be involved! “

23. WHAT MAKES A WINNER ?
JUDGE:Martin Thorborg
JUDGE:Thomas Madsen-Mygdal
JUDGE:Marrtin Ferro-Thomsen
Business Model - The heart of it all.
If you haven’t got answers to these questions, you’ve spent too much time on frills & features and need to get
back to the basics:
•Who is your customer?
•What is your core value proposition?
•What are your key activities?
•What are your revenue streams?
•What is your cost structure?
•Who/what are your key partners/resources?
•What are your distribution channels?
•What is your customer acquisition / rollout strategy?
Customer Validation: - Solutions for real problems !
•Have you taken the proper steps to ensure that the people who matter (your future customers) support and
reinforce your assumptions?
•Think of Customer Validation as ‘evidence’ to back up the core structure of your ‘theory’ (your Business
Model).
•The more feedback you gather (quantity), the more this feedback comes from your specific target market
(quality).
•The more you’re able to actually integrate this feedback into the Business Model and product development
(execution), the better.
Execution – A High Performance Team?
•What has your team been able to actually build over the weekend?
•Have you established a “Minimal Viable Product” (the minimum set of features to be able to start collecting
data)
•Does you deliver a compelling and captivating user experience? Is it memorable?
•Even the strongest of Business Plans are useless in the hands of those who can’t properly execute on them.
•Getting as far as possible proves your strength and skills as a team.
•This is what truly matters: investors don’t invest as in ideas so much as teams.

24. Entrepreneurship stage 2: Bootstrapping
• Tooling up and build for launch
• The fragile path; but anyhow rewarding
• Confusing, conflicts and Cool down…

25. Entrepreneurship stage 2: Bootstrapping
• Building the foundation
• Getting to know each other
• Gaining knowledge and
insight (for free)
• Continous inspiration (and
pivoting)
• Support and tools

26. • It’s not about product features, but percieved value
• Innovate all parts of the businessmodel to maximise growth opportunities
CREATING CUSTOMER VALUE
IMPLEMENT CONSULTING – VIEWPOINT NR. 4 / 2012 (implement.dk)
•Key ressources
•Key processes
•Partner network
•Value propsition
•Value platform
•Customer segments
•Channel structure
•Customer relations
•Cost structure
•Cash flows
How do we
create….
…valuable
solutions and
experiences…
…for
customers and
partners…
..to provide
profit for the
firm?

27. 71% increase
in SMEs starting to
use cloud services
in US and EMEA
(Source: Spiceworks, 2012)
64% of SMEs
use at least ONE
cloud-based service
(Source: IDC)
70%
are interested in
cloud services
(Source: Forrester, 2011)
of
SME’s
SME demand for cloud based services will ‘skyrocket‘
- As existing users will increase usage + non-users will adopt
(Source: IDC)
Business cloud
adoption in Europe
lags behind the US
by 2 years
(Source: Guardian, 2012)
Example: Market insight

28. CRM
TOOLS
FRIENDS
TRUSTED
PARTNERS
SOCIAL
MEDIA
STARTUP
NETWORKS
BOOTCAMP
PARTNERS
ENTREPRENEURS
SOCIAL NETWORKS
PROJECT MGMT
TOOLS
OPERATION
MGMT
TOOLS
BRANDED
NEWS SITES
3’rd PARTY
RESSOURCES
AFFILIATES
BUSINESS
INTELLIGENCE
& ANALYTICS
SALES
TOOLS
EKSTERNAL
RECOMMENDERS
PARTNER
SITES
BUSINESS TOOL
SERVICE CHECK
OTHER
TOOLS
TOOWL
DATABASE
COLLABORATION
TOOLS
TOOWL
CROWD
SOURCING
OTHER
PREMIUM
SERVICES
CROSS SELLING
>> TIME >>YEAR 0
REVENUE
STREAMS
COST EFFECTIVE
CLIENT
AQUSITION
BUILDING
TRUST
EXPANDING
SERVICE
AREAS
NEXT STEPS
IMPROVEMENTS
FUTURE
VISION
COMMERCIAL
LAUNCHBETA
Example: Growth Roadmap

29. The Wheel of Growth

30. You are not alone…. The vibrant ecosystem

31. What the entrepreneur also needs:

32. Co-working space, office hotels, incubation
• Inspiration, coffee, shared ressources
• Mentors, coaching, training, events
• Party, social life, collaboration
• ….

33. http://www.nestcopenhagen.dk/
http://www.fastupfront.com/blog/entrepreneurs/18-famous-college-dorm-room-businesses-that-made-millions/#sthash.V9Zc2nXQ.dpuf
Famous College Dorm Room Businesses that Made Millions
You can even live together…..

34. Entrepreneurship stage 3: Dealing with Accelerators
• Early stage Startup is high risk > High share
for taking the risk!
• Providing highly competent support and
growth coaching
• Choose with care > Chemistry, approach &
shared objectives
• May provide capital, connection to angels
or preparing for investors

35. You are not alone…. The vibrant ecosystemEntrepreneurship stage 4: Moving ahead
• Expanding internationally
• Going professional (Board, CEO etc)
• Creating the culture
• Increasing investments (& funds/loans)

36. Tradeshift was awarded Best Enterprise Startup 2010 at The TechCrunch Europe startup award
Tradeshift is used by over 200.000 businesses in 190 countries
Example:
From Tradeshift presentaion; Symbion Investor Day, dec 2012

37. From Tradeshift presentaion; Symbion Investor Day, dec 2012
Example: Business of innovation
PROGRESS
•Are you making progress?
•How do you know that you are making progress?
•What are your assumptions?
•How do you plan to test those assumptions?
•What were the resultas of the tests you performed since last board
meeting?
INNOVATION ACCOUNTING
Establish a baseline
•Turn leap of faith assumptions into something quantifiable
• Face the brutal facts
• Measure where we are right now

38. •Think and act like pirates
•Think outside the box – challenge decisions
•Agile
•Validated Learning (it’s OK to make mistakes)
•Team Camps
•Transparency (all business aspects)
•Break up structures
From Tradeshift presentaion; Symbion Investor Day, dec 2012
Example: Pirate Culture
http://www.computerworld.dk/art/225863/danske-tradeshift-her-er-hemmeligheden-bag-vores-succes

39. From Tradeshift presentaion; Symbion Investor Day, dec 2012
Example: Knowledge & pitfalls
Device experiments to learn
• How to move the real numbers
•Iterate (engine tuning)
•Pivot or persevere
WHAT COULD GO WRONG?
•Crisis of confidence
•Traditional management approach (failure of execution, failure to plan)
•Plans are full of uncertainty
•- how do we know, we learned something critical?
• - How do we know, if we just goofed up?

40. From Tradeshift presentaion; Symbion Investor Day, dec 2012
Example: Learning loop
LEARNING THROUGH FEEDBACK
•Low cycle time - learn fast. Fail fast.
•Demonstrate value-creating activities in shortest possible time with
least possible effort
•Put in front of target audience and measure behaviour
(#getoutofthebuilding)
•Compare to baseline and learn
VALIDATED LEARNING
•Every action is based on assumptions
•Right=progress. Wrong=wasted peoples time
•Progress => moving towards sustainable growth
•Value hypothesis: Why users will spend time with the product
•Growth hypothesis: How new users come in contact with the product
•Validation: We want to know that we learn the right thing

41. Innovation Inside. February, 2010, TheRISE of the CREATIVE MASSES
INNOVATION CULTURE

42. Disruption from the inside: Media
companies seek hope in incubators
Example: Connecting startups with established Biz (2)
“If you continue to
disrupt our industry, we
want to work with you.”

43. http://www.15inno.com/wp-content/uploads/2012/06/Screen-Shot-2012-06-06-at-08.43.21.png
READY FOR OPEN INNOVATION ?

44. The intrapreneur
Innovation Consortiums – connecting education with companies
 Funded innovation
 Creation of Startups
 New knowledge and insight
 New tools and methods
Research vs. Product interest conflicts
 Methodology vs. Conclusion communication
Transforming knowledge to commercial output

45. Innovation Inside. February, 2010, TheRISE of the CREATIVE MASSES
INNOVATIONS CULTURE

46. johanwinbladh@gmail.com
M: 21915612
www.medieinnovation.dk