Morph Labs' Chairman Winston Damarillo talks about product-market dynamics in the technopreneurship space and the importance of great ideas to reach global markets. This presentation was delivered during the 2007 Tech Boot Camp organized by Ayala Foundation.

1. Finding the Inflection Points
Discover that Great Idea to Connect with
your Target Market
Winston Damarillo

2. Competing with the Giants
High-end
Good products by
Oracle, IBM, BEA good companies will
exceed customer
Functionality
requirements over time
ts
b en High-volume
um
Inc
In almost all cases, the
er ts
om n disruptor brings to
st eme
Cu uir ce Red Hat, MySQL market products with
q ur
Re nS
o less capabilities
e
Op
Time

3. Agents of Change
Rapid growth of consumer
technology markets
Rise of global competitors t
a
r
Declining barriers to entry
g
due to outsourcing and e
on-demand business t
models
m
a
r
Rise of MicroISVs k
e
t

4. Harnessing the Net
Community enhanced co-Creation
Open source software and process
Community-generated content (e.g.
Wikipedia, MySpace
Iterative Beta (Google)
Real-time global Distribution
Digital downloads
Software as a Service (SaaS)
Aggregators
Worldwide Platform for Promotion
Engines
2-way Web ... Blogs, Forums, Twitter

5. Win from the Bottom
Create markets through an
iterative process
Connect to a global
distributed market = Internet
Push small increments out
to your customers
Let your product grow
organically and let your
customers see this

6. Strategic Differentiation
Low-end disruptive innovations
that address overserved
customers with a low-cost
model
“To !and quot;t among # crowd, Ex. Linux vs. Microsoft
Windows
do not build yquot;r product for #
New-market disruptions that
#1 company.” compete vs. non-consumption

7. Iterative Customer
Acquisition
S E E
Requires a combination of “seeing” and “acting”
“See” as a process = continuous look-out for disruption
Act to see = engage with prospects to yield key insights on the future
Foster vision plurality = nurture internal diversity, while managing
alternatives
Institutionalize the vision = shared by the company as a whole
Stage commitment with iterated actions
Reach out to new networks
A C T

8. Modularization of Products
Loosely coupled technology => loosely coupled businesses
Businesses will depend on services that are combined, mixed,
matched and re-used
Made to Order like Dell
Collaborative innovation => modular, standardized building blocks
that can be assembled on-demand for specific requirements
Applications => Commoditization
Aggregated services on-demand
Service-oriented

9. Disruption tests
1. Is there a large population who historically have not had the resources
to do this thing for themselves, and as a result have gone without it
altogether or have needed to pay someone with more expertise to do it for
them?
2. Do customers go thru an inconvenient process of accessing the
product?
3. Are there customers at the low-end of the market who would be happy
to purchase a product with less (but good enough) performance if they
could get it a lower price?
4. Is it possible to create a business model that will yield attractive profits
at the discount prices required to win the customers at the low end?
5. Is the innovation disruptive to all of the significant incumbent firms in
the industry?
- The Innovator’s Solution

10. Questions?