Digital Days - how startups can save your corporate's life!
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Transcript of Digital Days - how startups can save your corporate's life!
Thomas P. Offner September 2014
Digital Days 2014
Leveraging the Power of Startups and
Entrepreneurship for Corporate Success
Short bio Thomas P. Offner
Technical School and Business Administration (AT and CH)
Canbox AG, Oldenburg, Director Business Development
Intel Capital, Munich, Strategic Investment Manager
Vivigo Consulting Ltd., London, Partner
Audi AG, Ingolstadt, Stratregic Market Development
fatfoogoo AG, Vienna, CFO
Groupon Inc, Vienna, Zurich, Co-Founder
ProSiebenSat.1 SevenVentures GmbH, Munich/Unterföhring, Digital Commerce
FH Salzburg and Graz, Lecturer
YouTube local
74 Facebook status updates per second
Princess Beatrice´s ridiculous wedding hat gained over 140.000 fans on FB
“Pippa” Middleton got a Facebook page counting over 230.000 Fans within 24 hours
At least one part of „Her Royal Hotness’“ body
2.274 check-ins at Westminster Abbey
Google reported over 72 million viewers
watching via YouTube's live stream
74 FB UK status updates per sec
140.000 wedding hat fans
230.000 „Royal Hotness“ fans
72 million viewers on YouTube
33m TV sets 0 PCs, 0 tablets 0 mobiles
Source: Statistisches Bundesamt, EVS
How I grew up
60m TV sets
4m Smart TVs 32m PCs
8.2m Tablets
112m Mobiles
35m Smartphones
Source: AGF/GfK-Fernsehforschung, TV Scope, SevenOne Media, forsa, Enigma GfK, mindline, budde, golem, bitkom, Allensbach/Acta 2012
How my son is growing up
We live in a world of change
In every sense of the word
Most disruption doesn’t come from the corporate world
Small and fast startups change the world
Corporates are often to slow and immobile for change
Big companies tend to concentrate to much on
management; i.e. solely focus on permanent improvement
Very little or no entrepreneurial spirit or room for
entrepreneurship; i.e. no focus on innovation
Guy Kawasaki’s story about ice
Ice harvesting, Massachusetts, early 1850s
Guy Kawasaki’s story about ice
Ferdinand Carré's ice-making device about 1865
Guy Kawasaki’s story about ice
General Electric "Monitor-Top" refrigerator, introduced in 1927.
How media companies can avoid those pitfalls
1. Stay innovative – disruptive innovation (not better saws)!
2. Innovation happens in small structures!
3. Not technology is innovative but people are!
How media companies can avoid those pitfalls
Startups are everywhere
How media companies can avoid those pitfalls
Examples of disruptive startups
Internal External
Innovation Lab Corporate Venturing M&A
Design thinking with
external Consultant
Multi disciplinary
members from
different units
Out-of-the-box thinking
Two weeks (exclusive)
Venture Capital Unit
Accelerator
Incubator
Company Builder
Dedicated
M&A unit
Finance,
Legal, Tax
How media companies can avoid those pitfalls
Corporate meets startup
Combine both worlds to a new discipline
Corporate meets startup
Combine both worlds to a new discipline
How media companies can avoid those pitfalls
Examples from the corporate world
Strategy: acquisition
Within 13 months
Yahoo boss Marissa
Mayer buys 20
startups for the price
of over $ 1.2 billion
Strategy: incubation
Accelerator
program to
implement new ideas
by "Corporate
Entrepreneurs"
Strategy: excursion
Since 2012 the media
group continuously
sends top manager to
the Silicon Valley.
Some corporations were able to adopt
Private logistics: DHL’s bring:BUDDY vs. CheckRobin
Consumers become logistic service partners
Via bike, public transport or on foot
Collaboration between DHL and a group of
German design students
Rolled out at Shanghai trade fair 2010
“Privates bring it” – lift service for parcels
Austrian start-up, founded in 2013
Serial entrepreneur, founder of CheckFelix
(sold to Kayak in 2011)
Two established routes in Austria already
Some corporations were able to adopt
Carsharing: Daimler's Car2Go vs. zipcar
US car carsharing company founded in 2000
Area served: UK, CA, USA, ES, AT
Zipcar charges a one-time application fee, an
annual fee, and a reservation charge.
Acquired by Avis Budget Group in 2013
Subsidiary of Daimler AG providing carsharing
services in EU and North American cities
Founded in 2008
Offers exclusively Smart Fortwo vehicles
Worldwide market leader in free floating carsharing
Some corporations weren’t
Intelligent home: Bosch vs Nest
How about the biggest German media company?
Innovation Camp
ProSiebenSat.1 Accelerator
SevenVentures
SevenVentures Pitch Day 7VPD
Innovation Camp (Lab)
Conceptual formulation:
“How can we transfer our ability to evoke emotions
with moving images to digital business models?”
“How can we leverage our vast video repository?”
Innovation Camp (Lab)
Innovation Camp (Lab)
Ingredients for success
Multi disciplinary teams from different business units
Two weeks exclusive camp far away from corporation (focus = speed)
Moderated by an external consultant
Work along a defined process Collecting background information (experts and customer interviews)
“If I had asked people what they wanted, they would
have said faster horses.” (Henry Ford)
Defining directions for innovation
Generating ideas - every idea is possible (but solve a problem)
Prototyping and testing (lean startup)
One-sentence pitch
Innovation Camp (Lab)
Ingredients for success
No business plan
“Everybody has a plan until they get
punched in the face.”
“No campaign plan (business plan)
survives first contact with the enemy
(customers)”
(Helmuth Graf von Moltke, Field Marshall)
(Steve Blank, serial entrepreneur)
(Mike Tyson)
Innovation Camp (Lab)
Ingredients for success
Full commitment from CEO
Innovation Camp (Lab)
Results
Innovation Camp (Lab)
Results
1. INNOVATION: Stay close to relevant media innovation
2. TALENT: Build talent network of potential hires
3. DEAL FLOW: Build network of investors such as business
angels and venture capitalists
4. PR: Position ProSiebenSat.1 as an innovator in press and
towards the capital market
5. ROI: Participate in equity proceeds of portfolio companies
ACCELERATOR: get access to talent,
innovation, and improve public opinion
VENTURES: Media as valuable investment currency
Classic
Inventory
(TV) Media Inventory
Unutilized Inventory
Unutilized Inventory
Internal sales
Classic sales models
for core Inventory
• Close cooperation
with big media
agencies
• Commitment and
volume based pricing
models
Innovative M4R/E model
Fast growing online
companies with need for
variable fee structures
Small companies with
attractive products in
TV-affine segments with
cash constraints
Venture unit
VENTURES: Clear screening criteria for (media) deals
As part of the investment strategy
Ideally: excess media with relevant quality and low variable costs
No relevant existing or likely classical media spend
Relevant media-affine product category (no B2B or pure tech plays)
Clear target group fit
Upside from stimulatory media spend in category (dating market)
No financial, operational, legal risks
Overall yield comparable to classical sales yield
Long-term fit with corporation and solid cash flows or exit potential
VENTURES: Classical venture capital approach
The horse, the jockey, the course
Technology is like an insurance: You need to have it but you don’t
want to care about it
Technology is like an insurance
Technology is like an insurance: You need to have it but you don’t
want to care about it (and it should cost little to nothing)
Not most important success factor when starting a company
The most successful start-ups had rudimentary technologies in
the beginning (Zappos, Groupon, AirBnB, etc.)
Amazon (AWS) as leading cloud service provider
VENTURES: The relevance of technology
And how it increases over time
1. Leverage your core assets into related markets: media,
content, talent, market insight
2. Create synergies in your portfolio and foster cross-selling
3. Expand digital business to European footprint
4. Create additional growth through low cost and low risk
acquisitions
Digital growth strategy for integrated media
companies
CASE STUDY: Zalando
Zalando as European version of online shoe retailer Zappos
Extensive media push created European market leader in online shoes:
Three times higher sales in
the year 2011 versus 2010
95% brand awareness
30k shipments per day based
on huge assortment with 150k
products and 1,000 brands
More than 600,000 visitors
each day
Source: Zalando, Google Insights, Press releases
CASE STUDY: Zalando
Broadcaster can deliver more than just media Integrated optimized campaign over all channels
(TV, online, mobile)
CASE STUDY: Talenthouse
7VPD: PR event to generate deal flow
and access to innovation
7 start-ups on stage
pitching their company
(3 minutes elevator pitch)
7 top jury members (6 +1)
7 million Euro in TV media
as prize (P7S1 channels)
During NOAH conference,
London
Live stream on myvideo
7VPD: PR – great press feedback
“Mehr als 300 Gründer aus 14 Ländern haben ihre Bewerbung bei Seven Ventures, dem
Beteiligungsunternehmen von ProSiebenSat.1 eingereicht, sieben Kandidaten sind in die
Endrunde gekommen.”
„Seven Ventures, the venture subsidiary of the ProSiebenSat.1 Group, plans to run a pitch
competition for startups, the prize for which will be millions of Euros worth of advertising time
on Germany’s biggest TV network.”
“The prize to be offered at what is being called SevenVentures Pitch Day, to take place in
London on Nov. 6 and 7, is television commercial time valued 7 million euros, or about $9
million.”
“Was eher nach Maya-Kalender klingt, war das Highlight der NOAH Konferenz 2012 in
London: Der SevenVentures Pitch Day.”
Media partner and online streaming of the event (as well as myVideo).
7VPD: Innovation – great winners
Outlook: what’s hot for media companies?
And what’s not (very personal estimate)
FinTech (Security)
Sharing Community
E-learning
E-health
Internet of things (intelligent home)
Online gaming and gamification
Thank you
(for your comments)
BACKUP
Innovation Camp (Lab)
Connecting the dots
How media companies can avoid those pitfalls
No coincidence viral campaigns are professionally
planned and executed (Zalando)
You can’t plan the ice bucket challenge!
Example Coca Cola Happiness Machine