Harvard Innovation Lab: Turning Products Into Companies
•
12 gostaram•4,038 visualizações
John McEleney, former CEO of SolidWorks, discusses how the 3D design company became a market leader. He reviews how it is easy to start a company but hard to build a business, offering an instructive view of the approaches he took that led to his success and the company’s ultimate acquisition by Dassault Systems.
Recomendados
Recomendados
Mais conteúdo relacionado
Mais procurados
Mais procurados (20)
Destaque
Destaque (8)
Semelhante a Harvard Innovation Lab: Turning Products Into Companies
Semelhante a Harvard Innovation Lab: Turning Products Into Companies (20)
Mais de Michael Skok
Mais de Michael Skok (8)
Último
Último (20)
Harvard Innovation Lab: Turning Products Into Companies
- 1. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation Hi 1 #innovationlab @mjskok #startupsecrets www.mjskok.com MICHAEL J SKOK Hi Harvard innovation lab Turning Products into Companies By Design & Architecture twitter: @mjskok mjskok.com North Bridge Venture Partners STARTUP SECRETS Case Example: John McEleney Former CEO of SolidWorks
- 2. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation Hi 2 #innovationlab @mjskok #startupsecrets www.mjskok.com For context and more information: • The entire “Turning Products into Companies” presentation can be found here. • For more on the Startup Secrets series, visit www.startupsecrets.com • Related Startup Secrets presentation recommendations: – Building a Compelling Value Proposition – Go To Market Strategies
- 3. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation Hi 3 #innovationlab @mjskok #startupsecrets www.mjskok.com John McEleney, CEO Belmont Solutions - Previously CEO SolidWorks - @johnmceleney
- 4. Turning Products Into Companies J. McEleney, CEO Belmont Technology Inc. April 2013 4/1/13BelmontTechnologyConfidential 4
- 5. Background • Former CEO of SolidWorks (2001-2007): • $600M supplier of Windows 3D CAD software • Acquired by Dassault Systemes • Former CEO of CloudSwitch (2009-2012) • Enterprise cloud software • Acquired by Verizon • CEO of Belmont Technology (2012) • $9 M Series A (North Bridge, Commonwealth) • $25 M Series B (NEA) • Based in Cambridge 4/1/13BelmontTechnologyConfidential 5
- 6. 4/1/13BelmontTechnologyConfidential 6 CAD is the Basis of Every Product
- 7. Does anyone know what this is? 4/1/13BelmontTechnologyConfidential 7 1-5-0-3
- 8. Where to sell? 4/1/13BelmontTechnologyConfidential 8 0-3 4-6 11+ 6-10 1-5 1 2 3 # Units # Months
- 9. Why did we care where VARs sold? • Under-capitalized • Need profitable, quick sales • New account penetration was critical to our long term success 4/1/13BelmontTechnologyConfidential 9 + $ - $ Making Money Losing Money
- 10. “1503” = Execution Philosophy • From 1st customer touch -> product delivery: • Minimize friction • High touch, low cost • Broad, stable revenue predictability • Upgrades became an optimization challenge • >500K boxes to be shipped • 15.9 oz vs 16 oz (different UPS pricing schedule) • “Land and Expand” sales strategy for major accounts 4/1/13BelmontTechnologyConfidential 10
- 11. Eco-system “CATCH-22”: 4/1/13BelmontTechnologyConfidential 11 Partners only want your customers, but… You can’t get customers without partners
- 12. So how did we break the cycle? 4/1/13BelmontTechnologyConfidential 12 Marketing Cold Fusion Leaders Set The Pace Followers Will Follow Step # 1 Step # 3Step # 2 Credibility through #’s Get one partner, make them successful The others (including leaders will join)
- 13. Meet your enemy: 4/1/13BelmontTechnologyConfidential 13 1. Events force action 2. The perfect is the enemy of the good
- 14. What you think vs. What you know 4/1/13BelmontTechnologyConfidential 14 Important MORE Important
- 15. Subscription: What price to charge? • Situation: • Competitors charged 18% • Wanted VAR’s to provide end user support • SolidWorks always wanted to take calls->help customers get into production • Action: • Start with the VAR: • How many customers could a support person handle? • How much would they cost? • What % margin does VAR expect? • How do we make sure they call VAR first? • Statistical Process Control • Today this generates $300M (all of the profit of the company) 4/1/13BelmontTechnologyConfidential 15
- 16. Some Other Things I have Learned: • It’s easy to start a company, it’s hard to build a business • Events force actions • The perfect is the enemy of the good • Hiring is the most important thing we do • It should be part of your culture • You are going to make mistakes, fire quickly • Sales people: • Look for the coin slot • Look for people who want recognition • Your job as the CEO: create the culture • Hand written notes – go a lot further than you think • Celebrate victories, anniversaries… • As a leader NEVER take credit, give it to the team • You will get enough, don’t worry • If you’re doing your job, they did the work • Have Fun – it’s the journey NOT just the outcome! 4/1/13BelmontTechnologyConfidential 16
- 18. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation Hi 18 #innovationlab @mjskok #startupsecrets www.mjskok.com For context and more information: • The entire “Turning Products into Companies” presentation can be found here. • For more on the Startup Secrets series, visit www.startupsecrets.com • Related Startup Secrets presentation recommendations: – Building a Compelling Value Proposition – Go To Market Strategies
- 19. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation Hi 19 #innovationlab @mjskok #startupsecrets www.mjskok.com MICHAEL J SKOK Hi Harvard innovation lab Turning Products into Companies By Design & Architecture twitter: @mjskok mjskok.com North Bridge Venture Partners STARTUP SECRETS Case Example: John McEleney Former CEO of SolidWorks