Building A 21st Century Economy in Finland
Aalto University is Leading the Way
Why Start New Companies in Finland?
Because Old Ones Die
Corporate Lifecyclesare Getting Shorter
Disruption
Technology, Globalization, Regulation, Consumer Taste
Disruption
Technology, Globalization, Regulation, Consumer Taste,
Competition, etc.
Job Growth Will Come From New Companies
Job Growth Will Come From New Companies
Startups
Aalto is Leading the Way
Center for Entrepreneurship, Startup Sauna, Venture Garage,
Entrepreneurship Society
Alto is Leading the Way
Center for Entrepreneurship, Startup Sauna, Venture Garage, Aalto Entrepreneurship Society
First -What’s A Startup?
Six Types of Startups
Startup
Lifestyle Startups Work to Live their Passion
• Serve known customer with known product
• Get paid for their passion
Small BusinessStartup
Small Business StartupsWork to Feed the Family
• Serve known customer with known product
• Feed the family
Small BusinessStartup
Exit Criteria- Business Model found- Profitable business- Existing team< €100K in revenue
Small Business StartupsWork to Feed the Family
• known customer known product
• Feed the family
ScalableStartup
Large Company
Scalable StartupBorn to Be Big
Goal is to solve for: unknown customer and
unknown features
Search
ScalableStartup
Large Company
Exit Criteria- Business model found- Total Available Market > €300m- Can grow to €50/year
Scalable StartupBorn to Be Big
Search Execute
ScalableStartup
Large Company
- Total Available Market > $500m- Company can grow to $100m/year- Business model found- Focused on execution and process- Typically requires “risk capital”
Scalable StartupBorn to Be Big
• In contrast a scalable startup is designed to grow big• Typically needs risk capital• What Silicon Valley means when they say “Startup”
Search Execute
ScalableStartup
€3 to 30M Acquisition
Buyable StartupBorn to Be Sold
Goal is to solve for: Internet, Mobile, Gaming Apps
Search Sell
ScalableStartup
€3 to e0M Acquisition
Buyable Startup
Goal is to solve for: Internet and Mobile Apps
Search Sell
Sell to larger company
Transition Large Company
ScalableStartup
Sustaining Innovation
• Existing Market / Known
customer• Known product feature needs
Large Company Sustaining InnovationInnovate or Evaporate
Large Company Disruptive Innovation
New Division Transition Large
Company
Disruptive Innovation• New Market• New tech, customers, channels
Large Company Disruptive Innovation
New Division Transition Large
Company
Disruptive Innovation• Build• Partner• Acquire - IP - Talent - Product - Customers - Business
Large Non-Profit
Social Startup
Social Entrepreneurship Startups
• Solve pressing social problems• Social Enterprise: Profitable• Social Innovation: New Strategies
Each of these startups require different skills
They Can Not Be Taught the Same Way
Entrepreneurship as a Management Science
E-School instead of B-School
Business as a Management Science
• 1601 East India Company
• 300 years of companies without MBA credentials
• 1908 Harvard first MBA
ScalableStartup
Large CompanyTransition
- Execution- Strategy- Accounting- Products- Engineering- Management- Administration
Business School
Business School Topics
Large Company
Business School
Business School Courses
Courses- Managerial Finance/Accounting- Managing Groups and Teams- Financial Accounting- Operations- Modeling for Optimization- Global Value Chain Strategies
ScalableStartup Transition
Business School Results?
• U.S. corporations went from local to national then international
• Cadre of experienced managers to match
• Experts on finance and growth (Dupont/GM)
B-Schools made the 20th Century the American business century
ScalableStartup
Large CompanyTransition
Business School Versus Entrepreneurship School
Entrepreneurship School
- Hypothesis testing- Business Model design- Customer Development- Agile Development- Metrics- Venture Finance- Design Thinking
- Execution- Accounting- Products- Engineering- Management- Administrative
Business School
ScalableStartup
Large CompanyTransition
Courses- Lean Launchpad- Customer/Agile Development- Business Model Design- Entrepreneurial Management- Creativity and Innovation- Entrepreneurial Finance- User-centric design
Business School
Business School Versus Entrepreneurship Courses
Entrepreneurship School
Courses- Managerial Finance/Accounting- Managing Groups and Teams- Financial Accounting- Operations- Modeling for Optimization- Global Value Chain Strategies
Aalto Will Educate the 21st Century
• Partnership with Stanford University
• Center for Entrepreneurship
• Startup Sauna
• Venture Garage
• Aalto Entrepreneurship Society
Thanks
www.steveblank.com
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