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Join Chris Wand and Daniel Feld from SoftBank Venture Capital as they discuss the strategic impact of IT, managing in the marketplace, identifying opportunities, creating value, emerging internet models, business transformation, and international issues of e-commerce in the context of incubators for e-startups.
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GUEST SPEAKERS Thursday, April 5 Chris Wand and Daniel Feld SOFTBANK Venture Capital Topic: “Incubators for e-startups”
Where are we now? • - STRATEGIC IMPACT OF IT • - MANAGING IN THE MARKETSPACE • - IDENTIFYING OPPORTUNITIES/ • CREATING VALUE • - EMERGING INTERNET MODELS • - BUSINESS TRANSFORMATION • - INTERNATIONAL ISSUES OF E-COMMERCE
What Incubators Offer 100 % 80 % 60 % 40 % 20 % 0 % 97 93 91 90 88 87 86 84 64 26 Information Technology Buying Programs Public Relations Office Space Networking Accounting Recruiting Coaching Funding Legal Basic Services Source: Hansen et al, HBS, Sept. 2000
Questions Entrepreneurs Should Ask about Incubators: 1. Are companies in the portfolio related by industry or by technology, and are they consistent with your focus? 2. How strong are the companies in portfolio, strategic partners, and external advisors? 3. How exactly do the companies network with one another? 4. What relationships exist with outside strategic partners, and how much access to them will you have?
History of Organizational Models Mass Multidivision Conglomerate Leveraged Venture Networked production companies companies buyouts capitalist Incubator Date Late 1800s 1920s 1960s 1980s 1980s 1990s early 1900s Examples Ford Motor General ITT KKR Kleiner Softbank Motors Perkins Caufield & Byers Economic Scale Scale & Portfolio Financial Smart Networked Logic scope planning eng. money economy Key Physical Operations Financial Junk Risk- Intellectual Assets mgmt. mgmt. bonds willing and social capital capital Source: Hansen et al, HBS, Sept. 2000
THE PRIMARY OBJECTIVES OF THE HOTBANK CASE STUDY WERE: 1. Discuss the rapid growth of a new organizational models that exploit entrepreneurial drive and network access while preserving the benefits of scale and scope. Networked incubators are one such emerging model. 2. Explore how networked incubators are designed to launch a greater number of ventures more quickly than a established company can, and their ability to connect those start-ups surpasses that of an independent VC. 3. Understand that because the phenomenon is so new, uncertainty exists about the future success of networked incubators.
Other Interesting References “Networked Incubators: Hothouses of the New Economy” by M. Hansen, H. Chesbrough, N. Nohria, and D. Sull, Harvard Business Review, September 2000.