1. Prof. Yechiam Yemini (YY) Computer Science Department Columbia University (c)Copyrights; Yechiam Yemini; 2004 Workshop 1: Identifying Innovative Opportunity Putting Principles Into Actions Version: 1.00 1/27/04

2. (c)Copyrights; Yechiam Yemini; 20042 Start With The End-Game: Key Questions VCs Ask

3. (c)Copyrights; Yechiam Yemini; 20043 The Five Questions (Mayfield)  Do you have a team that delivers?  Is your product/service a vitamin or a painkiller?  Do you know your users?  Who are your competitors?  How far will this money take you?

4. (c)Copyrights; Yechiam Yemini; 20044 The Business Plan Do’s (Ian Ritchie www.coppertop.co.uk )  There’s a great new growth market  We’ve got just the thing for it  Its the kind of thing that a small player can sell well  The growth potential is such that we can go public/be acquired  We’ve got/can-get lots of technical/managerial/marketing experience  12 pages or less, and very easy to read

5. (c)Copyrights; Yechiam Yemini; 20045 Back To Innovation

6. (c)Copyrights; Yechiam Yemini; 20046 Guiding Questions  What new app/market paradigm are you targeting?  What factors of change are creating the innovative opportunity?  What position in the target market do you wish to own?  What technology/product will you introduce?  What competitive edge will you create in capturing and holding unto the position?  How would you monetize your innovation?

7. (c)Copyrights; Yechiam Yemini; 20047 Identify Exponential Factors of Change  Exponential growth in capacity E.g., memory, storage, bandwidth, content-sources…  Exponential growth in market size E.g., consumers, enterprises, specialized segments… Cost/value Time 10 4 10 7 Market size 10 5 10 6 10 8 10 9

8. (c)Copyrights; Yechiam Yemini; 20048 Examples  Storage + content-apps  Specialized content segments: e.g., Entertainment…(video, music, games…)… Bioinformatics data/apps Personal medical info ….  Optical bandwidth (WAN, metro)  Network-processors (NPU): I/O-centric silicon  DNA microarrays  ….

9. (c)Copyrights; Yechiam Yemini; 20049  Exponential growth in mobile units capacity Computing, storage, networking, display…  Exponential growth in market size Users requiring mobile access to bits  Key idea: transform HW edge to platform edge PALM  PDA solution or Mobile OS platform iPOD  Music distribution solution The Palm/iPOD Example

10. (c)Copyrights; Yechiam Yemini; 200410 Identify Growth in Interoperability Needs  Components diversity  Apps diversity  Layered vs. P2P interoperability Platform

11. (c)Copyrights; Yechiam Yemini; 200411  HW diversification: Mobile HW: phones, PDA, radio, recorder, music, GPS… Net access: cellular, radio, WiFi, GPS…  Apps diversity: Organizer, phone, radio, music player, browser, email, voicemail, map, city info….getting a cab…restaurant… open pharmacy….the cereal shelf at supermarket.. Interoperability Opportunity ?????

12. (c)Copyrights; Yechiam Yemini; 200412 Is There A New Platform Opportunity?  What new interoperability needs are not served?  How will a new platform be distinctly advantageous?  How can this platform rapidly populate the market? What core component/app providers help push it?  What is the new paradigm map it may create?

13. (c)Copyrights; Yechiam Yemini; 200413  What new interoperability needs are not served? PALM OS: executing apps.... Protected mobile content distribution; billing/charging…  Who will you compete with: PALM: Window CE, private OS, Browser/Java…. iPOD: music piracy Is There A New Platform Opportunity? ?????

14. (c)Copyrights; Yechiam Yemini; 200414 Define Competitive Position  What position on the new map do you wish to own?  Who will you compete with?  What competitive distinction will you build? How will you increase the competitive gap How will you create defensive barriers  What support can you build? Who owns neighboring territories on the map How and why will they support your position

15. (c)Copyrights; Yechiam Yemini; 200415  What new interoperability needs are not served? PALM OS: executing apps.... Protected mobile content distribution; billing/charging…  Who will you compete with: PALM: Window CE, private OS, Browser/Java…. iPOD (not yet a platform): MP3 content piracy Is There A New Platform Opportunity? ?????

16. (c)Copyrights; Yechiam Yemini; 200416 Competitive Position: PALM  What position? Platform provider  but then  Who will you compete with?  What competitive distinction will you build? How will you increase the competitive gap How will you create defensive barriers  What support can you build? Who owns neighboring territories on the map How and why will they support your position

17. (c)Copyrights; Yechiam Yemini; 200417 First Step: Identify Market Traction Factors  “Traction” = is the market creating your map  Explore innovation with potential users/partners…. Validate your market map!!! You have to know what questions you want answered “Do you think it is a good idea” is often the wrong question (You would never build DEC, Apple, MS, Cisco, SUN….)  Build prototype  Validate  learn  improve…