Tech startup companies are typically founded by entrepreneurs with business and computer science backgrounds. Unfortunately, without applicable experience, those backgrounds alone (and even together) are not well-rounded enough to successfully manage all aspects of a new business venture. That's why startup companies need to start bringing on Systems and Industrial Engineers. This presentation dives deep into the value that SIE's can offer to the Tech Startup world.
The SIE Skill Set is perfect for starting new, innovative companies.A lot of new companies are trying to get themselves going without Systems Thinking.But, many that have used it have been wildly successful.
This could be you!You could invent the next big thing that affects the entire world.As a systems engineer, you have the skills to make it happen.
Basically, any company that is trying to make money in a new way.
Some Examples*Facebook*Twitter*Instagram*Zappos*Amazon*Google*Kickstarter*Square*Dropbox
Instagram, for example, proves interesting with 3 numbers:First number - 13 – Number of employeesSecond number - 2 – Number of years between the start of Instagram and its sale to Facebook forThird number – 1 Billion Dollars
Beyond Money:Products like Facebook and Instagram have an impact on the world.In March 2010 they had no usersIn December 2010, they had 1MJune of 2011, 5MSeptember 2011, 10MBy the time they sold to Facebook in April 2012, 30MThat’s a lot of peopleValued them at $1BToday, they have 100MWho take and share 40M photos/day8500 Likes every secondMake 1000 comments every second3.6M / hour
Beyond Money:Products like Facebook and Instagram have an impact on the world.In March 2010 they had no usersIn December 2010, they had 1MJune of 2011, 5MSeptember 2011, 10MBy the time they sold to Facebook in April 2012, 30MThat’s a lot of peopleValued them at $1BToday, they have 100MWho take and share 40M photos/day8500 Likes every secondMake 1000 comments every second3.6M / hour
Changing every industry worldwide. Examples: Amazon > Borders, Netflix > Blockbuster
Changing every industry worldwide. Examples: Amazon > Borders, Netflix > Blockbuster
State number of startups that fail
(ask the audience)
Logo----- Meeting Notes (4/16/13 07:37) -----* We had the knowledge that it would have taken to make this product explode* We didn't apply it properly.
----- Meeting Notes (4/16/13 07:37) -----*
Logo
-Quote: Definition of startup by Steve Blank
-Brief history: Borrowed methodologies from Lean Manufacturing (SIE XXX)
Build-Measure-Learn SIMILAR process (SIE XXX)
Build-Measure-Learn SIMILAR process (SIE 454)State the ProblemInvestigate AlternativesModel the SystemIntegrateLaunchAssess PerformanceRe-evaluate
Market validation. Example: Bachelor Pad CanvasWhy spend 4-6 weeks & Thousands of dollars?Built landing page in one nightMeasure actual action – not just surveysWilling to give email addressSpent $400 for internet marketing50 people signed upIf we assume half of those will purchase - $16 / saleWe make $100 / sale - $84Probability & StaticsMeasuring SalesModel those sales with Binomial DistributionAssign a confidence interval to be sure that we collected enough dataBe confident that the business will be viable
Split-test different features, i.e. price points (SIE 330).Mulitple variables at onceRefer to this as A/B split testing
Tests most basic assumptions about the business modelNow we have market validation; so what to do build?
Systems and software engineering (SIE 277)This is the most importantMost entrepreneurs focus on developmentDevelopment is cheap – India - $8/hrProblem is – communication barrierBeing able to document your software in UML help to leverage inexpensive resources effectivelyVERY POWERFUL
Project management (Engineering management: SIE 265, SIE467)The next most important is Project ManagementMost startups don’t understand the importance of having a clear SOWKeeping graphic designer, developer, and all stakeholders in sync
What did we forget?
Lean marketing prior to launch. More split testing statistics (SIE XXX and XXX)You can have a great product, but if you can’t sell it…Test different marketing strategies on a small scaleJust like we designed the product
Build-measure-learn loopAmazon does this all the timeDoes the blue button make people buy more than the yellow button?Constantly tinkering and experimentingThat’s the way your have to operate to make sure that you keep your customers happy
Conversion rate optimization (split testing SIE again)