Your startup and market development process


When startups have figured out where they fit in the value chain process of their technology from the build to the consumers, they need to get out the building to talk to the customers. One of the stages is to identify where to fit in the market development process.

An interesting idea has been evaluated by Geoffrey A. Moore in his book Crossing the Chasm on different stages of market development. Quick look through it while you identify where your startup lies in the phase if it’s selling a product or something at all.

Check where you fit in, who your customers are and pivot your way through the complete buyer cycle to be a successful business.

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Why we buy what we buy and sell what we sell?


I have been in a lot of situations with my friends where I have debated about my craze and love for Apple products. And I always tell them it just doesn’t feel right to buy some other competitive products, no matter how good the specification is or value of money it be. I invest into buying the products thinking about the long-term and intrinsic value it creates. I came across this video at the Bootcamp session in the first week of the Master of Entrepreneurship Class and it just iterated and explained exactly how I feel about products I buy and the services I have subscribed to.

The idea of Golden circle: Why, What and How should exactly be the criteria of thinking about growing your business or buying products and services from other businesses. And that makes all the difference!

Sorry for irregular posts, I have never dealt with such a crazy schedule before. And that is my learning curve in gaining the social, developmental, technical and managerial skills all in one go!

And coincidently, one of the missions of Ross School of Business is Action based Leadership! Enjoy this awesome video.

[http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html]

How Physics build the concept of Entrepreneurship: The inside story.


Entrepreneurship, as most of us believe is not a recent phenomena but has a vast history of ideas, inventions and intersections beginning from the early 19th Century world of physics. It all started with a thought when law of classical mechanics and thermodynamics had been already established through various experiments by the likes of Galileo, Newton, Boyle, Bernoulli, Cavendish, Franklin and Lagrange. Just when these ideas of fundamental science of motion flourished, better ideas came through. As the horizontal base of the pyramid was set, vertical growth was imperative and inevitable.

The one idea, which started the era of entrepreneurship, was the invention of electric battery by Alessandro Volta in 1800. This invention led to more discoveries by Ampere and Ohm who further demonstrated the parallel electric currents exerted forces on each other and relationship between voltage, current and resistance respectively, which is the basis of fundamental electrodynamics. Just when Thomas Young demonstrated the wave nature of light, understanding of principle of interference and superposition developed. It all made sense, when Michael Faraday built an electricity powered motor in 1821 and formed the basis of current through magnetism i.e electromagnetic induction. Ideas evolved then on the basis of other ideas. Isn’t that entrepreneurship already in true sense? An idea Faraday proposed regarding electromagnetic forces was rejected by the scientific community, which was later accepted by the rest of the world and still forms the development of electromechanical devices that ruled the 19th Century engineering.

Meanwhile, in the field of thermodynamics Joule and Mayer worked on the connection between heat and mechanical energy. This connection was important for the development of steam engines. Carnot captured these basic ideas to form the dynamics of idealized engines and these ideas hold to formulate the most important idea of First Law of Thermodynamics. This led to the second law of Thermodynamics and so on by Kelvin and Clausius. Just when Maxwell through his ideas carried forward the idea of electricity and magnetism, Hertz experimentally confirmed those theories and discovered the photoelectric effect, which led to the invention of radio and television. These ideas were then carried forward by Nikola Tesla and Jagdishchandra Bose to further develop the ecosystem with different ideas. This is how physics led to application based engineering in the time when technology was not mainstream.

If this culture wasn’t prevailing then, the emergence of the 19th Century’s finest entrepreneurs, Henry Ford and Thomas Edison wouldn’t have been possible. During late 1870’s, Henry Ford started working as a machinist in Detroit, USA dealing with portable steam engines while Edison formed his Edison Electric Light company patenting electric light bulbs. By then, Edison had already invented phonograph and telegraph, which changed the way world communicated. With his creation of the first ever industrial research Lab in Menlo Park, New Jersey, Edison then quoted “We will make electricity so cheap that only the rich will burn the candles”. And this still holds true in our time, where candles are expensive than electricity. Edison also invented the motion picture camera. Thank god, he did!

On the other hand, Henry Ford became an engineer at Edison Illuminating Company where he used to work on his personal automobile experiments and his creation of a self-propelled vehicle called Ford Quadricycle. He was then introduced to Edison through a group meeting, where Edison encouraged him to work on his second vehicle. Soon, after his completion of the second project, Ford left Edison’s company to start Detroit Automobile Company with capital from a baron, William Murphy. Ultimately, that company was dissolved and with the invention of 26 horsepower automobile, the backers formed Henry Ford Company with Ford as the chief engineer. The rest, as they say is history. The inventor-entrepreneur philosophy emerged in the beginning of the 20th Century, when a sizable number of physicists were forming companies in the tune to change the world.

As the culture progressed, with the world facing two disastrous wars, one in 1914-18 and the other in 1939-45, these gave the necessity to nations forming different aerial and ground-breaking technologies, primarily to use against each other. They say, necessity gives rise to inventions. And this necessity lead nations to develop what is going to be constructive and in lives of all in the near future. The Second World War held the genesis of the Silicon Valley entrepreneurship, when Americans entered WWII in 1941. This war was literally an electronic war, where nations were battling with each other with different bombing and radar based technologies. Each nation, primarily Germany and USA, built different types of radars, to block and pursue efficient communication with their bases regarding the movements of the opposite camp’s defense. This lead to the formation of Harvard Radio Research Lab in US to understand the signals intelligence and develop electronic warfare. This secret lab was headed by Dr. Fredrick Terman, who was the Dean of Department of Engineering at Stanford University.

The Stanford director, due to the pressure from the government and the culture shift, encouraged students to turn to entrepreneurship and start their own companies. The students included William Hewlett and David Packard, who went on to start HP Computers. Since then scientific research and development in the universities across US begun to flourish and became the precursor to the beginning of 20th Century entrepreneurship. The idea of open-source mentality among the physicists led to the widening developments in science and technology entrepreneurship. After the WWII, Terman’s strategy included the setup of Electronic Research Laboratory (ERL) to promote basic and unclassified research in building radars, power-tubes and jammers. Soon after the setup of Applied Electronics Laboratory (AEL) and the merge of both ERL and AEL became Systems Engineering Laboratory (SRL) at Stanford. It was then, different microwave and systems companies emerged in Silicon Valley to produce equipments for the US defense. And that was the mark of beginning of the Silicon Valley entrepreneurship.

After the independence in 1947, India was at the forefront of social and political havoc, but the ideology among Indian entrepreneurs despite that did not change and they invested in their own independent nation for a better future. One of those entrepreneurs was Vikram Sarabhai, who after studying natural sciences at Cambridge returned to India to set up a research institution, Physical Research Laboratory (PRL) in Ahmedabad. He was the founder of Indian Space Research Organization (ISRO) and pursued the government of India to start a space research program, when Russia just launched Sputnik into the space. Moreover, he was also one of the founding members of one of the premier institutes in India, Indian Institute of Management (IIM), Ahmedabad. He was a physicist turned entrepreneur. And India is highly indebted to him for what his vision has given to the country. The idea of Entrepreneurship by then had already established by the pioneers G.D Birla and J.R.D Tata. A new wave of entrepreneurship emerged in India as a consequence of the existing business tradition and culture.

As different electronics companies emerged in the Silicon Valley in the mid 1950s, William Shockley, who was the director of anti-submarine warfare operations group at Columbia in 1942-43 and Solid State Physics group leader, co-invented the first point contact transistor with help with Bell Labs. He was then jointly awarded Nobel Prize in Physics in 1956. By then, Shockley has already founded Shockley semiconductor in 1955, which was the first semiconductor company in California. The traitorous eight which included Gordon Moore, Robert Noyce and Sheldon Roberts who were the youngest employees at the firm demanded to replace Shockley from the management team and eventually left Shockley semiconductor to start Fairchild Semiconductor. Eventually, Moore and Noyce left Fairchild to start Integrated Electronics (Intel) and others started Advanced Micro Devices (AMD). Though Shockley maybe a bad manager, but he was a great researcher and someone who laid the foundation of chip companies, which dominated the industry for the next 20 years. The 65 chip companies which were founded came from the first and second generation teams at Shockley Semiconductor. Some entrepreneurs have the tendency to make other entrepreneurs through knowledge transfer and freedom to work on their projects. Knowingly or unknowingly, he made a lot of entrepreneurs under his own belt. In true sense, Shockley was the father of the Silicon Valley, the valley that revolutionized the world of electronics.

Gordon Moore, who was a chemist and physicist and Robert Noyce, who was a physicist and co-inventor of integrated circuits, started Intel after leaving Fairchild Semiconductor with capital investment from Arthur Rock. With Intel breaking the barrier, the world changed with the inbound of microprocessors and micro controllers, the most important components of CPU used in the computers. And we all know what happened after that! (The device on which you are reading this post).

Physicists have been old hands at entrepreneurship. Today, more physicists than ever are involved in different startups all over the world either as founders or employees. Startups are inventing different physics based innovations and products, since Patenting and Intellectual Property law in US are adopted in the culture and has become popular among the early stage startups. One of the Entrepreneur who is considered as the next generation Steve Jobs, is Elon Musk. Elon has studied physics as his second bachelors degree from University of Pennsylvania and is the founder of SpaceX, who’s one of the mission is to find life at Mars by 2020, and is best known as the co-founder of online payment giant, PayPal and electric vehicles manufacturer, Tesla Motors. The interests he developed over rocket technologies and clean technologies were due to his aptitude and love for physics, and he credits the subject for all what he is today.

Today, entrepreneurship is popular among scientists and young PHDs and more people from physics background are starting disruptive technology based startups. Though starting a technology company is a complex operation and takes time to reach the break-even, the success is the idea where solid businesses endure over time, generate steady employment, develop intellectual property and conduct a mix of R&D for game-changing commercial results. To all what we see and experience today is the result of works and theories by thousands of scientists over last two centuries and the ones who implemented those works in building the future. Theories connected with realism of behavior, materials, systems and devices, and technologies erupted like the volcano. The horizontal base of physics and nature of sciences has been creating the way for our vertical future. And Entrepreneurs are the ones adapting it.

Freedom of ideas: Self or Society?


I went to a Tarot Card reader yesterday, just to curiously know what my life has to offer me with those pattern of chosen cards. The reader glanced me and told me “You have the freedom to grow and pursue your dreams, but you are holding back somewhere just because you are dual in your thoughts. If you focus on one thing important, you will grow as a person”. I realized, she was kind of right. It happens with all of us.

Somewhere, in our life’s turns and burns, we all get into a situation where duality creeps upon us. Not that we want it to happen, but forces and situations around make it happen. To know, what exactly we are capable of, we need to get ourselves from the dual nature of self and society. Today, people dream thinking more what is suitable for the society around us and not what we are actually passionate of. These dreams take a shape of an unborn child and the opportunity passes away. To get the right click in the right time, we need to be clear in our thoughts and pursue the least trodden path to achieve what we do in dreams, accurately.

Clarity holds a person and gives direction. I remember an old age adage “A stitch in time saves nine”, which holds true with the true sense of freedom. Freedom is not just pursuing your own life, but creating a balance with the self and the society around. We stop after achieving a certain level of clarity because we feel the society around see us with enough respect. And our dreams are eventually shrinks to what our society thinks it should be, and that is when dreams die and world-denting ideas perish. We need to struggle till the end of our dream, and that is our freedom.

In business/job/startup, we know our freedom is more or less based on our ideas. Some ideas suffocate to die inside us and other make a way to the world and change it, till we execute it. Why is then our ideas don’t initiate and the freedom is not free? Because, like the Heisenberg’s uncertainty principle, our ideas are uncertain with the linkage of our self and the bond with the society. We get momentum, we lose track of our idea’s position. We get position, we lose track of our freedom’s momentum.

So, taking back from what the Tarot card reader said, the dreams which are fulfilled are in true nature, the reflection of self to the society and they are to be pursued and to be struggled upon despite the limitations to our freedom, and tending to infinity boundaries to our ideas. 

The Three kinds of Entrepreneurs


I read this most amazing quote today by the founder and CEO of Mu Sigma Mr. Dhiraj Rajaram. Mu Sigma is a billion dollar company in data analytics and is known to manifest entrepreneurial growth through the data scientists it makes out of programmers, analysts and applied Mathematicians.

He draws a relationship between the types of entrepreneurs and the two main kinds of marriages in India. He says, “ There are two kinds of entrepreneurs. One are arranged marriage entrepreneurs and the other are love marriage entrepreneurs.

“The arranged marriage entrepreneurs are the ones who want to be entrepreneurs and they look for the right business. They shop around. They try out different ideas. They sit in Starbucks and meet with people. They talk to VCs, raise money and sometimes even exit. And like many arranged marriages they have beautiful endings.”


“The second kind of entrepreneur is the Love marriage entrepreneur. He is somebody who has found a girl and wants to live with that girl. And as part of that he is ready to get married with that girl. The girl is the idea. I became an entrepreneur because I wanted to work on that idea.”

 

This analogy is indeed very true in the entrepreneurial context in India. There are always two sides of the coin. One side, which will always look for good ideas and create a business out of it. The other side, has already found out the idea and wants to work on it for the rest of his life. What do you think is more transformational? I say, its both. Both kind of entrepreneurs are needed in the startup ecosystem. One fosters competition and other fosters innovation. Both of which are necessary for a healthy startup scene.

I love the fact, that these two kind of entrepreneurs can be anyone. There are no set rules to become an Entrepreneur. Anyone can opt Arranged marriage, Love marriage or In India, Arranged cum Love marriage, which is the best bet and the hybrid third type of an Entrepreneur. To all those people, who never thought of marriage, marry your love and arrange it.

 

The Idea-procrastination principle


I state here the excerpt from the book,  Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time, by Brian Tracy:

Step three: Set a deadline on your goal; set sub-deadlines if necessary. A goal or decision without a deadline has no urgency. It has no real beginning or end. Without a definite deadline accompanied by the assignment or acceptance of specific responsibilities for completion, you will naturally procrastinate and get very little done. Step four: Make a list of everything that you can think of that you are going to have to do to achieve your goal. 

We, humans tend to work on ideas unless our ass is on fire (read when we are on deadlines). No matter how much we think when to start, there is no actual beginning to the effective work until we plan our stuffs before time and excel when the right time comes. We all procrastinate in the way to suit ourselves and satisfy our conveniences. Say, you have an idea and you want to work on commercializing that idea. Though the opportunity costs favor you, we sometimes tend to not work on the idea thinking it’s too much to work on and eventually degrade ourselves in achieving that goal because its far, too far to be achieved. Most of the successful entrepreneurs work through their procrastination just by planning stuffs and sticking to that mental deadline. It’s hard for most of us to start planning things and implementing it, but it actually takes exactly 21 days to get into the rut. That’s the rule. Work for 21 days no matter what on the deadline, and after that your body clock will support your plans and you will be on the routine working on that idea which can change your life and impact millions.

So, the idea-procrastination principle is Work for 21 days on anything productive without skipping a day of not doing that stuff and eventually you will get into routine of working through your procrastination and prototyping that idea into a product or something substantial. 

 

 

Remembering Vivekananda


English: Higher detail image of Swami_Vivekana...

Today is the 150th Birth Anniversary of Swami Vivekananda (1863-2013) and his birthday is celebrated as National Youth Day in India. He was a spiritual leader, a man of principles and an avid orator in Interfaith Awareness.

I am sharing his speech at Parliament of the World’s Religions, Chicago in 1893. which I luckily found on the web.

Here’s the full length of the speech, a must read.

Sisters and Brothers of America:

It fills my heart with joy unspeakable to rise in response to the warm and cordial welcome which you have given us. I thank you in the name of the most ancient order of monks in the world; I thank you in the name of the mother of religions, and I thank you in the name of millions and millions of Hindu people of all classes and sects.

My thanks, also, to some of the speakers on this platform who, referring to the delegates from the Orient, have told you that these men from far-off nations may well claim the honour of bearing to different lands the idea of toleration. I am proud to belong to a religion which has taught the world both tolerance and universal acceptance. We believe not only in universal toleration, but we accept all religions as true. I am proud to belong to a nation which has sheltered the persecuted and the refugees of all religions and all nations of the earth. I am proud to tell you that we have gathered in our bosom the purest remnant of the Israelites, who came to Southern India and took refuge with us in the very year in which their holy temple was shattered to pieces by Roman tyranny. I am proud to belong to the religion which has sheltered and is still fostering the remnant of the grand Zoroastrian nation. I will quote to you, brethren, a few lines from a hymn which I remember to have repeated from my earliest boyhood, which is every day repeated by millions of human beings: “As the different streams having their sources in different paths which men take through different tendencies, various though they appear, crooked or straight, all lead to Thee.”

The present convention, which is one of the most august assemblies ever held, is in itself a vindication, a declaration to the world of the wonderful doctrine preached in the Gita: “Whosoever comes to Me, through whatsoever form, I reach him; all men are struggling through paths which in the end lead to me.”

Sectarianism, bigotry, and its horrible descendant, fanaticism, have long possessed this beautiful earth. They have filled the earth with violence, drenched it often and often with human blood, destroyed civilization and sent whole nations to despair. Had it not been for these horrible demons, human society would be far more advanced than it is now. But their time is come; and I fervently hope that the bell that tolled this morning in honour of this convention may be the death-knell of all fanaticism, of all persecutions with the sword or with the pen, and of all uncharitable feelings between persons wending their way to the same goal.