Lessons learned from teaching entrepreneurs. Bill Aulet at Business of Software 2014

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Presented at Business of Software 2014, Bill Aulet, MIT, looks at the state of entrepreneurship today as it is popularly understood. Using many years of experience as an entrepreneur and academic he looks for a path that disciplined and successful entrepreneurs follow.

Business

What Does
DISCIPLINED
ENTREPRENEURSHIP?
1
Really Mean Today?
Bill Aulet
Managing Director,
Martin Trust Center
for MIT Entrepreneurship

2
Being an entrepreneur
is the new “cool” thing.
As a result,
demand for
entrepreneurship
is blowing up!

3
But is there sufficient
understanding of the topic?
Hmmm….

Definition of Entrepreneurship – 2 Types
Entrepreneurship
DISCIPLINED ENTREPRENEURSHIP
SME
(Small
Medium
Enterprise)
Regional
Markets
Restaurants
Dry
Cleaners
Services
IDE
(Innova=on-‐Driven
Entrepreneurship)
Global
Markets
Products
for
Export
Sustainable
Compe==ve
Advantage
at
Core
• Δt
is
short
• Linear
growth
• Less
investment
required
• Δt
is
long
• Exponen=al
growth
• A
lot
of
investment
required

Other Questions for
Entrepreneurship Education
1. Can
2. Why
3. How
5

6
Crisis in
entrepreneurial education
Demand
Supply of
quality
Time
Storytellin
g

8
Successful Entrepreneurship
Spirit + Skills

But What is Happening
Crisis in Entrepreneurship Education
“Education by Storytelling”
Gets the Spirit but Not the Skills
Makes it Sound Easy
It is Not! Requires Discipline
9

How
How should entrepreneurship be
taught?
1. Open (common language & best tools)
2. Systems Approach (integrated &
prescriptive)
3. Rigorous but Practical (mens et manus)
10

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
20

Entrepreneurship 101 Quiz
21
What is the singular necessary
and sufficient condition to have
a company?
1.

What Should We Be?
22
Market-Driven
Target Customer-
Driven
Customer-Driven

Linkage of Various Steps Is Critical
and Underlies the Integration
25
Persona
-‐-‐-‐-‐-‐-‐-‐-‐-‐
-‐-‐-‐-‐-‐-‐-‐-‐-‐
-‐-‐-‐-‐-‐-‐-‐-‐-‐
Priori=es:
1. Aaaaa
2. Bbbbb
3. Ccccc
4. Ddddd
Quantified Value Proposition
As Is State
------------------------------------ X
Possible State
------------------------------------ Y
Value Prop = Δ of X & Y
Measured in dimension of Priority #1
Competitive Positioning
Priority #1
Bad Good
YOU
Alt #4
Alt #1
Alt #2
Alt #3
Bad Good
Priority #2
“Core” Supports
Competitive Position
Resource Plan
Supports Building Core

Product Development Must be a
Rapid & Continuous Process
26
©
Ash
Maurya,
“Running
Lean”,
www.ashmaurya.com

28
“I'm actually as proud of the things
we haven't done as the things I
have done.”
—Steve Jobs

Examples of Disciplined
Entrepreneurship
29

More info
The book
www.disciplinedentrepreneurship.com
Progress Dashboard
www.detoolbox.com
30

1 Week Intensive Course at MIT
By application welcomes you to apply
Last week of January at MIT

Successful Entrepreneurship
=
Spirit
of a pirate
Skills
of a Navy Seal
33
+

34
Illustrations done by the great Marius
Ursache - @mariusursache on twitter

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1. What Does DISCIPLINED ENTREPRENEURSHIP? 1 Really Mean Today? Bill Aulet Managing Director, Martin Trust Center for MIT Entrepreneurship

2. 2 Being an entrepreneur is the new “cool” thing. As a result, demand for entrepreneurship is blowing up!

3. 3 But is there sufficient understanding of the topic? Hmmm….

4. Definition of Entrepreneurship – 2 Types Entrepreneurship DISCIPLINED ENTREPRENEURSHIP SME (Small Medium Enterprise) Regional Markets Restaurants Dry Cleaners Services IDE (Innova=on-‐Driven Entrepreneurship) Global Markets Products for Export Sustainable Compe==ve Advantage at Core • Δt is short • Linear growth • Less investment required • Δt is long • Exponen=al growth • A lot of investment required

5. Other Questions for Entrepreneurship Education 1. Can 2. Why 3. How 5

6. 6 Crisis in entrepreneurial education Demand Supply of quality Time Storytellin g

7. Importance of Spirit 7

8. 8 Successful Entrepreneurship Spirit + Skills

9. But What is Happening Crisis in Entrepreneurship Education “Education by Storytelling” Gets the Spirit but Not the Skills Makes it Sound Easy It is Not! Requires Discipline 9

10. How How should entrepreneurship be taught? 1. Open (common language & best tools) 2. Systems Approach (integrated & prescriptive) 3. Rigorous but Practical (mens et manus) 10

11. How 24 Steps Was Put Together 11

12. 12

13. 13

14. 14

15. 15

16. 16

17. 17

18. 18

19. 19

20. 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 20

21. Entrepreneurship 101 Quiz 21 What is the singular necessary and sufficient condition to have a company? 1.

22. What Should We Be? 22 Market-Driven Target Customer- Driven Customer-Driven

23. 23

24. Spiraling Innovation 24

25. Linkage of Various Steps Is Critical and Underlies the Integration 25 Persona -‐-‐-‐-‐-‐-‐-‐-‐-‐ -‐-‐-‐-‐-‐-‐-‐-‐-‐ -‐-‐-‐-‐-‐-‐-‐-‐-‐ Priori=es: 1. Aaaaa 2. Bbbbb 3. Ccccc 4. Ddddd Quantified Value Proposition As Is State ------------------------------------ X Possible State ------------------------------------ Y Value Prop = Δ of X & Y Measured in dimension of Priority #1 Competitive Positioning Priority #1 Bad Good YOU Alt #4 Alt #1 Alt #2 Alt #3 Bad Good Priority #2 “Core” Supports Competitive Position Resource Plan Supports Building Core

27. Search for Truth? 27

28. 28 “I'm actually as proud of the things we haven't done as the things I have done.” —Steve Jobs

29. Examples of Disciplined Entrepreneurship 29

30. More info The book www.disciplinedentrepreneurship.com Progress Dashboard www.detoolbox.com 30

31. Free Online course www.bit.ly/e-101 31

32. 1 Week Intensive Course at MIT By application welcomes you to apply Last week of January at MIT

33. Successful Entrepreneurship = Spirit of a pirate Skills of a Navy Seal 33 +

34. 34 Illustrations done by the great Marius Ursache - @mariusursache on twitter

Lessons learned from teaching entrepreneurs. Bill Aulet at Business of Software 2014

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