This is a case to exemplify how using disruption beyond technology is important even for big players like Google. Examples covered include Google Apps vs Microsoft Office and Android vs iOS in the huge battle for dominance in Mobile platforms. This is part of the workshop on Game Changing Business Models - itself part of the series on Startup Secrets, by Michael J Skok on how to get competitive advantage as a startup. Michael's slides are the framework for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website www.mjskok.com

1. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi
Hi Harvard innovation lab
#innovationlab @mjskok #startupsecrets www.mjskok.com
START UP
Case in point: Google
SECRETS
An insider’s guide to unfair competitive advantage
Apps vs. Office, Android vs. iOS
Disruptive Business Models to build Value
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
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2. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
For context and more information:
Don Dodge
Google
dondodge@google.com
and as part of the overall Business Model session
http://www.mjskok.com/resources/business-model
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3. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
How can your Business Model…
• Change the game?
• Rewrite the rules? New Game
• Cause an innovator’s dilemma New playing field
New boundaries
• Be as disruptive New rules
as your technology?
YOU choose players
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4. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Business Model as a Disruptor
• Why?
• Because it can be a game changer and drive
so much:
– Time to market
– Market adoption
– Sustainability
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5. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Google Business Models
Google is a great examples of using
Business Models as a DISRUPTOR
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6. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Google - Competing with Market Leaders
How can you compete with a market leader
who has 80% to 90% market share?
- eg Microsoft with Office?
1. Don’t compete head-on
2. Innovators Dilemma – go for low end
3. Disruptive technology, business model, or
market approach
4. Examples: Gmail, Google Apps, Chrome
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7. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Google – Ex 1 Apps
• Google Apps vs. Microsoft Office
– What is the C.O.R.E for each ?
• Data, Advertising For GOOG vs Software for MSFT
– Enables different business model = GOOG very
disruptive to MSFT
• How to avoid competing head-on…
– MS Office = enterprise market
– Google Apps = consumer market
– Free vs $500 license
– Simple vs Complicated
– 80% solution vs Professional Tool
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8. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Google – Ex 2 - Mobile
• Apple vs. Google
– What is the C.O.R.E for each ?
• Hardware, Software, Content ?
• Others in Ecosystem
– Samsung, HTC
• Alternative approaches
– Amazon
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9. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Android vs iPhone
Who is winning?
Why?
Is technology the difference?
Apple, Google, & Microsoft strategies
– Always play to your strength
– Apple Mac, Google Search, Microsoft Windows
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10. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Android vs iPhone
Disrupt the market leader
– Apple disrupted carriers and manufacturers
• Verizon, Sprint, Nokia, Motorola, RIM, Symbian
– Android allowed them to fight back
Disruptive business model
– Android is free
– Advertising business model
– Search, Maps, Local, Wallet, YouTube
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11. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Business Models Matter !
Don Dodge
Google
dondodge@google.com
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12. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Sample Models
• Shared ownership (Zipcar)
• Flash sales (Vente Privee)
• Crowd sourcing (uTest)
• Lead Gen (Mint.com)
• Virtual goods/currencies (Tapjoy)
• Combinations
– Acquia -OSS, SaaS
– AirBnB - Commission on P2P rentals
– Demandware - SaaS, success based rev share
– Groupon - broker, revshare
– Spotify -adbased, freemium
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13. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Business Model- Sample Questions
• Process or Product?
• Software or Services?
• Open or Proprietary?
• Content or Data?
• Freemium or Premium?
• Subscription or License?
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14. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
What is your CORE value?
First key question
Your
Capabilities
Of
CORE Focus on it!
Really
Exceptional
Value
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15. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Cut to the CORE!
Where is your CORE value?
• Software/other technology
• Data
• Content
• Service, support COR
• User network E
Disruptively monetize it!
– To your competitive advantage
– Where are others most vulnerable?
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16. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Business Model as a Disruptor
- basic reminders…
• This is fundamental to you as a founder
• It will impact everything in your business
• For example…
– Spend – where you invest your $ and time
– Cash efficiency
– Your ownership
– Valuation
– Outcomes
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17. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
For more information:
See the full resource on Business Models at
http://www.mjskok.com/resources/business-model
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18. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Models
Hi
Hi Harvard innovation lab
#innovationlab @mjskok #startupsecrets www.mjskok.com
START UP
Case in point: Google
SECRETS
An insider’s guide to unfair competitive advantage
Apps vs. Office, Android vs. iOS
Disruptive Business Models to build Value
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
18