Licensed under a CC BY-SA license Sources of Growth Key Trends in Technology Innovation Management Dec 13, 2018 Michael Weiss www.timprogram.ca www.carleton.ca weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Innovation challenges Source: ISPIM Connect Ottawa 2019 weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Challenge: Scaling startups Globalize Interact Legitimize Scale Secure Sell weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Grow early, rapidly and securely Globalize Startups that globalize can better adapt to change, are worth more, and grow revenue and jobs faster They do so by operating across countries, leveraging partner networks, and creating glocal offers Interact Startups grow faster if they form relationships They should use new and existing networks to locate and interact with potential customers, partners, & suppliers Legitimize Startups need to be believable and trustworthy in the eyes of customers, partners, suppliers and investors They can do so through identity building (stories, analogies), association (relationships), and organization (achievement of milestones, leader profiles) Source: https://globalgers.co/principles weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Grow early, rapidly and securely Scale To scale is to build out channels, networks, and brand Startups need to build flexible relationships with customers and investors, implement a growth path, and improve their capability to execute Secure Startups need to be secure, period They must assess security risks to their venture, reduce supply chain risks, and address breaches promptly Sell Startups should adopt a learning mindset and lever customers as co-creators of new products They do so by selling solutions and tailoring their offer Source: https://globalgers.co/principles weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Cybersecurity startups Cybersecurity market is inherently global: therefore, cybersecurity startups must globalize to survive What actions to globalize early have the greatest effect on the value of cybersecurity startups? What actions to globalize are unique to cybersecurity startups (depend on a global resource: cyberspace)? How can business development agencies improve the support they provide to cybersecurity ventures? weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license What makes startups valuable? To make a technology startup valuable to a stakeholder (customer, partner, etc.), the startup should act to: Spread Increase the spread between customers’ willingness to pay for its product and cost of the product Demand Increase the demand for its product Complementarity Increase the demand for the stakeholder’s products complemented by the startup’s product Privileged information Establish a position in inter-organizational networks that increases the volume, variety, timeliness, and accuracy of privileged information that is accessible Judgment Attract individuals who have the requisite experience and knowledge to create value for the startup Source: Bailetti & Zijdemans (2014) weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license How startups can globalize early Niche market in 2+ continents 1+ global partners Spread Target a niche market where customers have a distinct set of cybersecurity needs Participate in the development of global security standards Demand Use the web as a global sales channel to double product demand Interact with partners with a global footprint to increase global demand for startup’s product Comple- mentarity Develop a product that complements products offered by incumbents Target partners who would benefit from the complementarity of the startup’s product or service Privileged information Engage with members of virtual communities that attract customers and competitors Use connections to partners Judgment Seek partners with global reach Source: Bailetti & Zijdemans (2014) weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Challenge: Adopting AI and analytics weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Economics of prediction As the cost of prediction decreases, prediction models help companies make better judgments Open source frameworks and machine-learning-as-a- service makes prediction technology accessible Not only is prediction cheaper, but as the quality of prediction improves, it becomes strategic Thus, prediction will be used more and in unexpected places, enabling new business models weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Strategic uses of prediction Template for a prediction strategy Goal Problem Uncertainty Judgment Improving delivery times Problem How to improve delivery times without keeping an expensive inventory? Uncertainty Customer demand Judgment Better forecasting of local demand Based on: Agerwal et al. (2018) weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Selecting startups at an accelerator A prediction model that relates screening questions to startup success can help improve judgment Initial screening Final selection Real Market Demand validation Market demographics Product Concept maturity Sales & distribution Win Competitive Sustainable advantage Team Technology & expertise Prior startup experience Feedback mechanism Worth Growth Growth strategy Source: Yin & Luo (2018) weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Making better business decisions Generating insights from product reviews Mine business opportunities from social networks Analyze value propositions of competitors by using text mining and topic modeling techniques Generate qualified leads by predicting customer value Prioritize security alerts businesses need to investigate Predict security vulnerabilities of products weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Conclusion In markets that are inherently global, startups must globalize early and rapidly to survive As the cost of prediction decreases, prediction models help companies make better judgments weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license References Agrawal et al. (2018), Prediction Machines Bailetti & Zijdemans (2014), Cybersecurity Startups: The Importance of Early and Rapid Globalization Yin, & Luo (2018), How Do Accelerators Select Startups? Shifting Decision Criteria Across Stages, IEEE Transactions on Engineering Management weiss@sce.carleton.ca Licensed under a CC BY-SA license

Licensed under a CC BY-SA license Image credits Unless noted, images were sourced from Wikimedia Commons and Flickr under a CC license weiss@sce.carleton.ca Licensed under a CC BY-SA license