2. Agenda
• Overview of the TSSG.
• TSSG Innovation Platform.
• TSSG approach to developing start-ups and some
lessons learned.
• TSSG Start-up Platform.
• Q&A.
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3. 3
TSSG
• International Research Institute hosted by WIT.
• Founded by Prof Willie Donnelly in 1997 and led by CEO
Barry Downes.
• Has 140+ staff and is 100% self funded.
• Expertise in key areas relevant to EI/IDA TIME cluster:
• networks,
• mobile and
• communications services.
The Telecommunications Software and Systems Group (TSSG) at WIT
• Completed over 110 direct industry projects for start-ups in
Ireland over the past 3 years and has spun out a number of
leading international start-ups such as FeedHenry Ltd.
EXPERTISE
• On doing world class research and innovation -
then turning this into economic impact in the South
East and Ireland by supporting EI and IDA clients
and by creating and supporting start-ups.
FOCUS
IMPACT
4. Networks
Network Virtualization
Software Defined
Networking (SDN)
Mobile
Mobile Cloud Platforms
(PaaS) and advanced
mobile applications
Communications
Services
Communication Services
Platforms (PaaS) and
applications e.g. Web RTC
TSSG Core Focus Areas
5. Cloud
Software Platform and
Infrastructure as a Service
Virtual and
Augmented Reality
VR/AR Communications, 3D
User Interfaces, Education,
Simulation and enabling
hardware
Data Mining
Predictive Analytics
Social Network Analysis
Data Security
TSSG Core Focus Areas
6. •Knowledge and IP
•Publications in Leading Journals
•PhD Students and Graduates
•Academic Network around the World
•Powering Industry’s R&D Centres
•Solving Industry Problems
•Identification of Future Problems
•Driving EU Research Networks
•Establishing Technology Roadmaps
•Providing Innovative Solutions.
•Setting European Policy.
•Defining European R&D Agenda.
•Living at the Heart of Europe
•Building Innovative Companies
•Impacting Irish SME’s
•Transforming the Local Ecosystem
Co-Directors SFI
Connect Research Centre
TSSG Innovation Platform
8. Product & Customer Focus
• Our focus is on building software product
companies that can scale internationally.
• Key questions include: What’s the problem we
are trying to solve and for who?
• Does the product offer benefits, in the
customer’s minds, different from and superior in
some way – e.g. better, faster, cheaper to
what’s currently offered by other solutions,
including the status quo?
• Find out – go talk to the target customer (lots of
them).
• Build an MVP and get feedback.
• Then rapidly refine to increase the value offered
in each release – ie customer driven
development.
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Ref : Steve Blank (2005) Customer Driven Development
Ref: Eric Reeis (2011) Lean Start-up
9. Market Focus
• Ideally the market for the start-up
is large and rapidly growing.
• Looking for big opportunities, often
where we can disrupt existing
ways of doing business or serving
customers needs.
• A high potential business in a
huge, rapidly growing market will
require venture capital to support
growth.
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Adapted from Everett Rodgers (1962, 2003) and Geoffrey Moore
(1991, 2013)
10. Industry Focus
• We believe it is important to understand
the industry we are competing in and
understand how attractive or unattractive
is it.
• If the industry is a poor performer overall
and are there persuasive reasons why,
how we will fare differently?
• Industry structure can be overcome but
requires a real understanding of the
critical success factors and honest
assessment before trying to.
– e.g. Music industry
– Selling directly to Telcos
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Ref: http://www.imro.ie/music-creators/music-industry-links/structure-of-the-music-industry-in-ireland/
Porter, M.E. (1980, 2008)
12. Competition
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What is our unfair advantage?
• How much will it cost to acquire and retain customers?
• e.g. mobile games.
• Will margins be adequate to cover the cost structure?
• Will revenues be adequate in relation to the capital
investment needed and the margins generated?
• How much cash must be tied up in working capital
(inventory or other) for how long?
• e.g. IoT hardware products.
• How quickly will customers pay?
Is the business model economically
viable?
Competition is dynamic!
• Patents, trade secrets and so on – that other firms
cannot likely duplicate or imitate to compete?
• Superior organizational processes, capabilities or
resources that others would have difficulty in duplicating
or imitating?
• Superior product benefits that are difficult to replicate.
• Network effects.
• Competitors react!
• Now image dynamic competition for FeedHenry from
the previous slide …
Osterwalder, Pigneur (2010)
13. The Start-up Management Team
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Building the Team
• Can the team identify the Critical Success Factors (CSFs) in
the industry?
• Can they demonstrate that they can deliver on these
CSFs.
• What are the gaps and how can they be addressed?
Can the team execute?
Connectedness
• The need for a team.
• The need to have different skills and creative tension but
be able to get on the same page re strategy.
• Work ethic - Start-up’s require ferocious work and hours.
• Drive and Passion!
• Who does the team know:
• up the value chain: suppliers and partner?
• down the value-chain: customers?
• across the value-chain: competitors and substitutes?
• The more connected the better.
14. Putting it all Together
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Ref: John Mullins (2003)
15. Finance
• Be frugal…. as if its your own money.
• Beg and borrow before you spend.
• Manage cash-flow aggressively.
• Build relationships with the Revenue, customers, suppliers,
your bank, and your corporate council.
• Get Audited from day one.
• Manage the company so that its easy to do an investment due
diligence and secure investment.
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16. Other Considerations
• Exhaust your network and every option to hire great talent.
• Can’t complete with Google / facebook on salary or brand but you
can exploit the flexibilities of a small company.
• Reward with shares, options, holidays, bonus, travel opportunities,
working from home.
• Make your start-up a great, fun and exciting place to work.
• Communicate all the time and let everyone know what’s going on
(easier said than done).
• Leverage the supporting agencies – e.g. SEBIC, LEO, Enterprise
Ireland.
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22. Funding
• For high-growth technology start-ups that target
international markets funding is key:
• There are a range of funding supports from start-
up, to seed, to scaling:
– New Frontiers, LEO, BIC, HBAN, the Banks, Enterprise
Ireland and Venture Capital.
• But how do you access them?
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