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Posts Tagged ‘Challenges’

Yesterday I tweeted about a simple question.

So far I’ve received 15+ excellent comments.

Initially and based on discussions with some fellow (active) entrepreneurs I was of an opinion that we are mainly missing the people (entrepreneurs) to make the idea into action.

This line of thought was justified as we all know there are more ideas than what we can implement. Many of the ideas should, honestly, never be implemented. And many of them are just copycats, yet another facebook-youtube-socialmedia clone which is a pity. Even after these taken away there are many more great ideas than people to implement them. In this light it seems almost funny how desperately (still) some people value just the idea (or an idea in PowerPoint slides).

On the other hand many people, again initially, were of an opinion that you can actually find money if you have a really good idea. The money just may not come from your home country, in this case Finland. There is no real Venture Capitalists left in Finland, and the angel investor community is not very large nor truly active, yet. Luckily at least Veraventure is doing good work to get this changed.

I made earlier a little poll which says many (academic) people skip entrepreneurship as they either don’t have a business idea nor a team.

This week a Finnish business magazine Kauppalehti Optio published a cover story of 80 young people born in the 80’s, the people who are our future and who are going to take over. Guess how many of those persons were entrepreneurs? One. There is hope that some of those classified as “students” still could become entrepreneurs…

The responses to my tweet mainly said, however, that we are missing money and financing. There were also good comments about timing and luck, no matter how good the idea is. For example our idea of mobile carpool service (year 2002) was given no serious attention in the Finnish VC community (luckily the angel investors in Finland, Italy and The Netherlands trusted us) but this year two young students won Venture Cup with the idea of mobile carpool. So it’s also about timing, seven years later. See also a briefing to the subject here. As a side note I would say that if Nokia really would like to “think different”, they should use this Ecolane technology to enter mobile carpool business before Google or Apple do. Disclaimer: I’m a shareholder in both of the companies mentioned.

One thing what I’ve been wondering – if having not enough entrepreneurs is NOT the problem – why as there so little active serial entrepreneurs? I mean those who have tried at least once, possibly succeeded and become a driving force of another start-up with all that experience? Many of those people seem to be now in a more convenient “advisor” role. As one of the active entrepreneurs I respect, Marko Parkkinen, said this week: “After failing in the recent start-up, I was at one point almost desperate enough to become an employee, but luckily I run out of battery in my mobile phone before I said ‘Yes'”.

As one active entrepreneur friend of mine said, “At the first stage of ‘making it big’ the lack of true entrepreneurs makes the start-up market very small. Money matters only after a start-up has started its journey – if there was all the money available, but no real motivation to make ‘my/our company big’, I doubt there would be much success.”

However, I do belive that funding is a key element in building new success stories. Early this year  we start building a new initiative code named “GrowthOS“.

“GrowthOS is an ecosystem for entrepreneurs to build online presence enabling them to receive funding from one or more private investors as well as facilitate all the activities before and after the investment has taken place. Extensive use of web-enabled communication, reputation building and other tools offer a unique platform for private investors to follow, communicate with, invest in as well as follow or participate the development of those startups they mostly believe in.”

If you are interested in the GrowthOS ecosystem (it’s going to be Europe-wide), feel free to contact me.

But coming back to the main question: “Which one of the following is the most critical and the least supplied resource: ideas, entrepreneurs or money?”

What do YOU think?

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I was recently listening to Mårten Mickos, in an event sponsored by SWOT Consulting.

Mårten gave an excellent presentation with the idea of “How would I build a global software company right now”. He almost immediately pointed out that it does not make sense to say “Finnish Global Software Company” as that would already be against the definition. It can of course be that it is initiated by the Finns. As his success and experience from MySQL is well known, it makes sense to pay attention to what he says.

There are both challenges and opportunities (accessible with specific strengths) in this field.

He listed the following challenges anyone building a software company (in Finland) will face:

  1. Finland is too small and too expensive. This can be overcome by either focusing or going into volumes.
  2. Finland is good in utilizing software, not so good in producing it globally.
  3. We are slow.
  4. The Finns believe too much in institutions. More sales work, less filling in forms for subsidies and grants.
  5. There is room for improvement concerning the will to really fight (to become successful). In some respects, life is too easy for many. True winners are those who learn to fight for the success!
  6. We believe (still) that we are a leading edge country (“We come from Finland, country of Nokia”). More humble approach would be good as well as partnering with foreign complementary people.

The Finns have many strengths, however, which could and should be utilized better:

  1. The working moral is good, better than in USA/Silicon Valley as is the management style.
  2. The quality of work is good, honestly. Even when nobody is watching!
  3. Well-functioning society, everything works. (Author’s comment: not without briberies some statistics show, it’s just different)
  4. Mad creativity in development, making Finns suitable for all kind of pioneer development.

Utilizing the strengths and becoming successful also requires:

  1. Being in the right time, in the right place. You also need luck!
  2. Going into one of the large markets (EU, USA or China) quickly.

Mårten also gave his view on the software market status as of now:

  • Consolidation is taking place. You have to either find a pioneer market or find a niche in the consolidating segments.
  • Convergence means there are no borders between web and mobile, one must be capable to operate in both.
  • Increasing complexity – select your target market with care.
  • Global growth – do your market research concerning the existing players with care.
  • Market domination game requires you to find weak point of the market leader and take advantage of that.
  • Utilize the Open Source opportunities.
  • Everything is in the Net, and so will you.

Mårten summarized all this by saying that one must be brave but humble, ready to conquer the world BUT aiming at carefully selected market segments and geographical locations with carefully selected go-to-market-plan.

There are, in my humble opinion, many good points in his presentation. There’s is always something to learn!

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I was recently listening to Mårten Mickos, in an event sponsored by SWOT Consulting.

Mårten gave an excellent presentation with the idea of “How would I build a global software company right now”. He almost immediately pointed out that it does not make sense to say “Finnish Global Software Company” as that would already be against the definition. It can of course be that it is initiated by the Finns. As his success and experience from MySQL is well known, it makes sense to pay attention to what he says.

There are both challenges and opportunities (accessible with specific strengths) in this field.

He listed the following challenges anyone building a software company (in Finland) will face:

  1. Finland is too small and too expensive. This can be overcome by either focusing or going into volumes.
  2. Finland is good in utilizing software, not so good in producing it globally.
  3. We are slow.
  4. The Finns believe too much in institutions. More sales work, less filling in forms for subsidies and grants.
  5. There is room for improvement concerning the will to really fight (to become successful). In some respects, life is too easy for many. True winners are those who learn to fight for the success!
  6. We believe (still) that we are a leading edge country (“We come from Finland, country of Nokia”). More humble approach would be good as well as partnering with foreign complementary people.

The Finns have many strengths, however, which could and should be utilized better:

  1. The working moral is good, better than in USA/Silicon Valley as is the management style.
  2. The quality of work is good, honestly. Even when nobody is watching!
  3. Well-functioning society, everything works. (Author’s comment: not without briberies some statistics show, it’s just different)
  4. Mad creativity in development, making Finns suitable for all kind of pioneer development.

Utilizing the strengths and becoming successful also requires:

  1. Being in the right time, in the right place. You also need luck!
  2. Going into one of the large markets (EU, USA or China) quickly.

Mårten also gave his view on the software market status as of now:

  • Consolidation is taking place. You have to either find a pioneer market or find a niche in the consolidating segments.
  • Convergence means there are no borders between web and mobile, one must be capable to operate in both.
  • Increasing complexity – select your target market with care.
  • Global growth – do your market research concerning the existing players with care.
  • Market domination game requires you to find weak point of the market leader and take advantage of that.
  • Utilize the Open Source opportunities.
  • Everything is in the Net, and so will you.

Mårten summarized all this by saying that one must be brave but humble, ready to conquer the world BUT aiming at carefully selected market segments and geographical locations with carefully selected go-to-market-plan.

There are, in my humble opinion, many good points in his presentation. There’s is always something to learn!

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Build Your Own Dream Team

Build Your Own Dream Team

Last week I blogged about comparing the movie industry and the software industry. The feedback given in the comments and in real world quite rightly focused on the two actual problems (and areas to learn from): defining what the “production” should be and how to get a team to implement it.

The question last week was “So what can we learn about this concerning the software industry?”

First of all, it’s not that easy (of course not!). But as we have to start somewhere, let’s shoot this out.

  1. Lesson Number One is to implement processes and methods to ensure that the customer need is understood. Communication is the key, especially as it might be (as it is) that the customer does not know what she wants in the first place. And that changes anyway. The concept of “shared unified understanding” is quite important, as well as how to achieve and maintain it.
  2. Lesson Number Two is that each project (“production”) may be different. So you may need different skills each time. No company can successfully employ all the possible skills on payroll and function effectively. The Dream Team is different each time. Would like to watch a war movie, a love movie and a documentary done with the same actors, same person acting as a war hero and the most lovable lady? Most likely not.
  3. Lesson Number Three is the Crew Commitment. Even if you have the best possible definition of the project, and the best doers available, you can fail if the team does not commit themselves to this production. You need all the help from each team member in order to find and manage all the issues that there will be. It is impossible to micro manage all this (even though it may have been possible in the factories last century). To a certain extent being afraid of failure would help to get better results. Social (group) pressure to get things done properly in order to avoid consequence (whatever they are) could help here?

So what can we (as software industry) learn from the movie industry…?

Beside the above mentioned issues, re-engineer your thinking. The future is not in the big software companies, it’s in the networked ecosystem of best doers of each field. There is certainly work to be done in the way we make sure “what you get is what you wanted” but also on the field of setting up the dream team for each production. And managing network of experts (maybe globally) calls for different kind of managing talents than the traditional models. You need to get the Crew Commitment in place. It’s just the question of time when this will be done by somebody!

But what about marketing? Is it any importance in the software industry (like it is in the movie industry)? Of course. It’s easy if you’ve got a customer who came to you and buys a custom project from you (even in that case it’s the question how they found you). But if you are a startup, what can you learn from movie marketing in this field. Comments, knowledge and best practices are welcome – we’ll discuss this next.

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