Daniel Saks, Co-founder & Co-CEO of AppDirect discusses his company’s build versus buy approach and how it has guided them to becoming a successful, fast-growing global startup. Traction Conf Vancouver 2015 - http://tractionconf.io.

1. Accelerating Innovation
Build vs. Buy

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2009

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AppDirect: Helps businesses find, buy, and use software
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20M+
Reach to end business
users globally
$135M
Capital raised from seed
to Series D
4
Acquisitions
300+
Team members
§ Awards:
§ Customers:§ Highlights:
§ Investors:

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Traction…

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“How do you sustain
growth beyond initial
traction?”

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1) Establish a Growth Strategy
2) Develop Network Effects
3) Build an Innovation
Framework (include M&A)

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#1

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"Paradoxically, then, network
effects businesses must start
with especially small markets.
Facebook started with just
Harvard students. "
— Peter Thiel (Zero to One: Notes on Start Ups, or How to Build the Future)

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Segment Geography Capability
Harvard
Ivy League
Colleges
High school
Everyone
Cambridge MA
East Coast
USA
Europe
Global
Profiles
Photos
Events
Newsfeed
Marketplace
Demographic Language Device
Harvard Undergrads
Ivy League Students
College Students
All Students
Everyone
English
Spanish
Japanese
Chinese
All
Web
Mobile
Tablet
Virtual Reality
All

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Segment Geography Capability
Telecom
Retail
XaaS
VAR
Everyone
Canada
North America
Europe
Asia
Global
App Listing
Marketplace Manager
Developer Center
Billing
Data
Demographic Language Device
SMBs
Enterprise
Consumer
Education
Government
English
French
German
Korean
All
Web
Mobile
Tablet
Desktop
All

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1) Establish a Growth Strategy
2) Develop Network Effects
3) Build an Innovation
Framework (include M&A)

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#2

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Benefits of Magnetic Momentum
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Growth Cost of Acquisition

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But how do you grow
even faster?

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1) Establish a Growth Strategy
2) Develop Network Effects
3) Build an Innovation
Framework

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#3

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S-Curve
Time
Revenue

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S-Curve + Innovation
Innovation
Window
New Innovation
Original Innovation
Time
Revenue

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Alpha Beta Scale
Explore
New Ideas
Prove the
Metrics
Scale the
business
Innovation Strategy

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Alpha
Billing
Innovation Strategy: Case Study – Billing
BUILD
PARTNER
BUY
Alpha

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Innovation Strategy: Case Study – Billing
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Vision Alignment
Culture Alignment
Clarity of Execution

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Alpha
Data
Visualization
Innovation Strategy: Case Study
BUILD
PARTNER
BUY
Leftronic

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Magnetic Momentum +
Flywheel Innovation
Time
Revenue

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Recap:
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1) Have a Growth Strategy
2) Establish Network Effects
3) Develop an Innovation
Framework (include M&A)

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Closing Thought….
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Is it too early for me to start
thinking about growth strategy
and M&A?

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www.appdirect.com
@danielsaks