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escape velocity

SCIP Silicon Valley Presents Escaping Velocity with Michael Eckhardt

Feb 2017/in , , , , /by

Recently, FirstRain had the opportunity to sponsor a dynamic event on leaving the competition behind, hosted by the Silicon Valley chapter of Strategic and Competitive Intelligence Professionals (SCIP).

SCIP has the mission to “be the premier advocate for the skilled use of intelligence to enhance business decision-making and organizational performance to create competitive advantage.”

Michael Eckhardt Speaking

Photo by Jop Baylon

This recent event included information on SCIP by the Silicon Valley chapter head, Alok Vasudeva, and a presentation on escaping velocity by Michael Eckhardt. Eckhardt, Managing Director & Senior Workshop Leader for Chasm Institute was also a contributing author to Geoffrey Moore’s book, Escape Velocity: Free Your Company’s Future from the Pull of the Past. You likely remember Geoffrey Moore’s name from his bestseller, Crossing the Chasm: Marketing and Selling Technology Projects to Mainstream Customers.

Photo by Jop Baylon

Photo by Jop Baylon

hierarchy of powers tweetEckhardt presented and highlighted the assessment of competitive dynamics using those frameworks and tools depicted in Moore’s book.  According to Alok Vasudeva, this chapter event was one of SCIP’s best attended in number, with a global audience ranging from Canadians to Brazilians.

Appreciative of the opportunity to hear Eckhardt speak, we dove into note taking, live-tweeting the whole way. The Hierarchy of Powers outlines 5 ‘powers’ a company must align in order to escape velocity. We challenge you all to evaluate your own powers.

A convenient example, and no stranger to Moore, Apple once analyzed seems to have a solid 4 out of 5 powers in action.

    • Category Power: Digital music, smart phones, and digital media consumption
    • Company Power: iTunes and Apple’s Appstore
    • Market Power: None currently being leveraged
    • Offer Power: From great products to brand legacy
    • Execution Power: Known to ‘stay its course’

revenue drivers tweetGiving us a glimpse into the future, Eckhardt outlined the top 9 tech trends that will be driving the next $1,000,000,000,000 of revenue for 2017-2018.

Because of our own industry focus, it was exciting for us to see the words “Analytics”, “Big Data”, and “Real-Time” in big letters as top revenue drivers. However, we’re still plenty excited about the trends outside our direct space that many of the attendees at the event are top leaders in. With the security and privacy market trending almost daily on every news forum from the national to the tech-specific, we’re looking forward to watching the major changes innovative companies will bring to the table.

After this event, we’re looking forward to finishing Escape Velocity and using it in customer conversations. We don’t want to give too much away but here’s a final teaser on the strategic wisdom strung throughout Moore’s pages,

“Leadership is about being in service to a higher cause; management is about ensuring that service is appropriately rewarded. Both are necessary. You just can’t put the focus on rewards first.” – Moore (p.13)

A big thank you to Alok Vasudeva for organizing, and for inviting FirstRain to participate in and sponsor, this engaging and enlightening Silicon Valley chapter event. We had a lovely evening and look forward to participating in future SCIP events.

Eager Learners

Photo by Jop Baylon

If you are interested in learning more about how FirstRain can help you in your go-to-market strategies please contact Daniela Barbosa, our VP Marketing and Partnerships, to schedule a demo or to get more information.

happy

The Role Charm Plays in Your Leadership Today

Apr 2012/in /by

Charm as a leadership currency seems to change with every wave of silicon valley engineering companies.

 
In the old days of the early semiconductor firms the CEOs were often gruff white men. Most came up through the ranks of real products, dirty products, chemicals in the manufacturing process, union labor forces… and charm was not a necessary part of the job. Like the famously paranoid Andy Grove of Intel and the crusty Wilf Corrigan of LSI Logic. They didn’t have to be charming — they had to be in with their boards and drive global market growth for their products. They barely even worked the customers after the first few because it was an engineering and distribution driven business.

Then we had the wave of computer companies like Sun Microsystems and HP and large enterprise software firms like Oracle. Now the CEO’s had a bit more charm but it was B2B charm of the likes of Scott McNealy and John Chambers. Stay focused on the major customers and charm the sell-side analysts that covered them. Build a world class team, set high goals for your sales team (give rousing speeches at Quota Club meetings in Hawaii), pay well and drive global growth to large customers.

 

But now we have the wave of internet and media companies where charm on a global scale matters. This new wave of leadership focuses on accessibility, charming the media, long on user-experience and number of users, shorter on hard engineering. Old school style back fires as Carol Bartz found out at Yahoo. Open communications like Larry Page’s recent letter, mea culpa as Reed Hastings did at Netflix, charm on a global scale as Arianna Huffington did for the HuffPo and the relentless visibility of the very charming Sheryl Sandberg of Facebook fame are part of the global marketing machine.

 
The first group of CEOs were often engineering based and visible only in print — rough was OK. The second group was often sales based — smoother but customer focused and sometime visible on CNBC. Now we live in the era of the media-savvy CEO who is visible everywhere, all the time. Still technical, but the darlings of the tech press are the ones who know how to work the media, and social media, to their advantage.

But wait. Even today charm only goes so far. You still have to produce top line and net income growth for your investors. Charm and modern communication skills are essential in the media and internet world which is so over covered today, but they are a necessary but not sufficient condition for B2B success (unless, of course, you can get bought for technology before you figure out your revenue model).

So if you are in a B2B engineering-based product business focus on the fundamentals of your technology and your customers, but don’t forget to hone your charm skills for this new era.

business women

Why are Women Funded Less than Men? – a new conversation

Aug 2011/in /by

If you are thinking of starting a company, or raising venture capital, and how happen to be female then Pemo Theodore’s new ebook is for you.

Why are Women Funded Less than Men? a crowdsourced conversation presents a thoughtful collection of advice on how to do it and the challenges you face, drawn from a fascinating set of video interviews. Pemo interviewed VCs, entrepreneurs and advisors, asking them all to speak about the issues and challenges facing women trying to raise venture capital.

In a world more than 95% run by men, and 95% invested in by men, advice for the female entrepreneur is invaluable, and by presenting the advice in short video form, Pemo makes it very easy to absorb and enjoy.

Raising venture capital has never been a problem for me, and as I watched the videos I found myself thinking was I lucky, good, or just really ignorant of the challenge? I very much resonate with the advice to not be aware of your gender as you pitch, to be aggressive and to ignore that you know most VCs are not women friendly – your idea is still great.

I also resonate with the advice from Janice Roberts at Mayfield Fund that you can empower yourself by choosing the right VC. Finding the right investing partner is critical – my advice on how to pick a VC is in this post.

Many of the contributors speak about how important confidence is. So many women let themselves down by expressing self doubt. DON’T. VCs are already taking enough risk – they won’t invest in someone that reveals their fears – and men don’t let on no matter how scared they might be. Be confident, project confidence, and your investors will follow you.

As I said in my forward for the book:

While the facts are that only 3-5% of venture capital goes to female entrepreneurs there is simply no good reason for this to be the case. Women are as strong and smart as men, and often have the advantages of better management skills and stronger team building ability. But today’s venture world is dominated by men looking for the classical male style of leadership and until that changes women need to adapt to the current rules of the game, get funded and win so they can change the game.

It take confidence, courage and authenticity and a healthy dose of advice and encouragement. This wonderful collection of advice, shared experience and often humorous stories will be an inspiration to any female entrepreneur. Pemo interviews across the spectrum: VCs, entrepreneurs, those who have succeeded, some that have failed, all that have learned and share their experience with you. It’s a terrific resource if you are raising money from venture capital, plan to do so for your next brilliant idea or are a VC yourself wanting to unlock higher quality deals by tapping into the female advantage.

The complete videos of Pemo interviewing me on raising money are here and here too.

Bubble View

It’s not a bubble really – and the rockstars agree

Aug 2011/in , , /by

Living in Silicon Valley, running a software company with big ambitions I hear the question a lot. Is this another tech bubble? Isn’t is going to burst again?

The short answer is no.

Pundits covering tech tend to confuse valuation with long term value. We may well be in a valuation bubble but unlike the 2000 tech bubble the companies in question have deep, sustainable revenue models.

There are certainly some high valuations – per Fred Wilson’s view of frothy valuations in April – and these are driven by investor demand. As Father Guido Sarducci so wisely said in the 5 minute university, Economics is about supply and demand. When a few companies have sky high valuations in the public and private markets VCs are chasing good ideas with too much money again and so the early stage and later stage valuations may be getting silly for most companies, but some will be worth it.

Valuation is very different than long term value. Technology, and in particular software, is where long term sustainable value is being built. And when I say long term I am thinking hundreds of years. Marc Andreesen wrote very eloquently about this in the WSJ on Saturday in his essay Why Software Is Eating the World. We are at the beginning of a long era in which technology will reshape every aspect of our lives in ways we are just now beginning to see.

Just as the Industrial Revolution developed over more than 150 years in the 18th and 19th centuries and reshaped machines, industry, transport and the very nature of where people chose to live and work, technology is now reshaping the way we communicate, are entertained, where we live and work and shop and it is rewiring our kids brains for a new world. I’ve believed this for 20 years and the ups and downs of the tech world over that period have done nothing to dissuade me from that belief because technology is steadily, consistently and dramatically changing our lives. (Want to get some perspective on the 150 year change last time around – spend a day in Ironbridge in Shropshire, England.)

It’s happening right now because the pieces are now in place. As Marc writes “Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.”

The cost structure is right, the technology base is ready. In FirstRain’s case we have built a highly disruptive technology that changes the way business people use the web for their critical decision making. As Roger McNamee says in his thought provoking talk “Everything is Changing”, Google’s approach to indexing has peaked. People want apps designed for their specific need (he cites his investments like Facebook and Yelp), not one app for all needs, and they want it on their device of choice – which is a smartphone or an iPad. In our case the business need is even more specific than that. Our users want a business web app so they can tap into the breadth, currency and power of the web as a data source, but they want it tailored to their specific business and role, and they want it in a cost effective way.

Marc and Roger are just two rockstars in Silicon Valley but most people here agree with them (and not just because we are all drinking the same Kool-Aid). Yes we are dealing with some higher valuations, maybe that is a bubble, but the long term value being built in technology is real, and software is where it’s at. And what makes it even better is it a continuously exciting place to build a career, or even a company.

chess-769050_960_720

Software is King and the source of growth in 2011 Silicon Valley

Feb 2011/in /by

Every recession, every major generation of the Valley, naysayers come out and say the good days are over – but Silicon Valley continues to reinvent itself.

The latest herald of doom is Scott McNealy, former CEO of Sun. In a Business Insider interview Scott claims that Silicon Valley’s emerging sectors, like social networking and “green” technology, will not make up for jobs lost due to the software and computer industry consolidation. But with big names like Google, Microsoft, and Facebook planning for expansion, I wouldn’t be so quick to assume it’s all over.

Claiming that every new transition creates less job opportunity than before, Scott lacks confidence in the future potential of contemporary partnerships to flourish. But he’s wrong. Not only is it anticipated that social networking industries will more than make up for lost jobs, but we are likely to see unprecedented growth in the consolidation of software and hardware companies. The technology sector never fails to impress me with new innovation and change, and this “recession” is no exception.

Even Obama sees it (although maybe he is here fund raising at the same time). He says that our tech companies are the heirs to the industries that made the United States the worlds biggest economy. He is in the Bay Area today to discuss job creation and innovation around the Silicon Valley with executives like Steve Jobs, Mark Zuckerberg, Eric Schmidt, and many more.

Maybe the irony is stinging. Facebook announced last week that it will in fact move its corporate headquarters to Sun’s old facility in Menlo Park (Sun having been swallowed by the Oracle whale). This is Facebook’s second move in the last two years and they have now leased a 1-million-square-foot campus. Google has announced a big addition as well, introducing a new campus in San Francisco to help alleviate long commutes. Google has also experienced a record 75,000 job applications over the last week, and they expect to grow more than 30,000 employees by 2012 (Dow Jones).

It is software technology that is driving this growth. Eric Schmidt, CEO of Google, claims that more than 300,000 Android devices are being activated everyday, requiring more engineers and sales people to keep up with the high demand. “This will be our biggest hiring year ever,” said Jordan Newman (a Google company spokesman). Note — FirstRain is currently hiring in California and India.

Growth Industries:

Sadly I think Nokia is trying to get back to growth by partnering with Microsoft for their phone OS but my personal opinion is they just killed what was once a great phone provider. Microsoft may gain – they are trying to make the new Windows Phone 7 a success – and they are hooking up with Nokia’s strong hardware but I doubt the combination will compete. But they are not the only ones focusing on Valley software innovation. Their old competitor, Sony Ericsson, is shifting resources from its headquarters in Sweden to Silicon Valley in order to keep up with the shifting increase from hardware to software demands in the mobile phone industry.


I think Scott is just plain wrong, or certainly colored by his predominantly hardware background. He believes that Silicon Valley is “not the best place in the world to start a company,” but the evidence in the software world is to the contrary. Maybe it’s just his personal preference, but as Senator Mark Warner of Virginia correctly claims, the Internet and social networking have been “one of the rare areas of growth in the U.S. economy” in a decade that didn’t spur much innovation.

As for “green” technology not being able to make up for lost jobs that is certainly true in the short term, as it typically takes a full generation for a new industry to take effect. However, the key to the Silicon Valley economy is now software innovation, and we’re excited to be a part of it.

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