0:09
Specifically, what we mean by structure, or the natures of the barriers to entry.
The nature of the hurdles that a new company
needs to go through, to enter that given industry.
It's also, what is involved with the competitive dynamics in that industry.
What level of capital intensity is there?
What level of advertising intensity is there?
What's the concentration of firms that are competing with that industry?
As well as, what's the average company size of your competitors?
And so by digging in and starting each of these, you get
a better sense of what's the landscape that you're going to be competing within.
So with capital intensity, we're looking at money.
We're looking at
3:17
So what we see also sometimes, is
that there's trends emerging, like app development.
And so there are lots of companies that are trying
to build apps, and their apps might be a hit.
They might get them up on the app store, they might sell in great volume, and
they're going to have a lot of success, and
they're going to hit a home run with that.
Or they might build lots and lots of apps, just to have none of them really take off.
4:09
And I think the parallel to this, or goldrush.
>> I was thinking the same thing.
>> What was the goldrush? >> That was like in 1849.
>> Okay. >> Gold was discovered in California.
>> Yep.
>> Many, many people went down there, but very few became rich.
But, the companies that made tools or jeans, like Levi-Strauss
became very rich. >> Okay, so exactly right.
So, in the gold rush, when you could go to California, and walk around and
there's gold laying on the ground, or you could sweep the ground and you'd see gold.
The thought was, well everybody should go
out there, and we're going to strike it rich.
5:35
People are dressed in their coats, and jackets, and wool pants.
And Levi's, with their commercialization of
denim, in jeans and overalls, and such, again, kind of reinvented that industry.
And it was Levi's, and it was the people that sold shovels,
and that sold axes, and picks, that sold hotel rooms,
that operated the restaurants, that made money in the gold rush.
6:18
And when we look at what they're doing,
we'll take a couple minutes to watch this one.
>> In today's world, mobile apps are a part of a successful business strategy.
So let me ask you something, are you
getting the results you want from your app?
Is it driving sales, deepening engagement or increasing brand loyalty?
It should be.
And this is why you need to know about Artisan, the first
mobile experience management platform, that helps
you get the results you're looking for.
Our motto is simple.
Apps are about the experience, and they should be as
inspiring, intuitive, and engaging, as the devices they run on.
Chances are, if you aren't getting the experience
right, you aren't getting the business results you want.
This is why the app world needs Artisan.
Because without it, the ability for brands to engage with their customers,
and manage mobile experiences that actually improve
their bottom line, is quite the task.
Even making simple changes can be incredibly tedious, and time consuming.
From writing code, to compiling and recompiling your app.
To waiting on App Store approvals, and hoping users will download your updates.
It takes a lot of time and resources.
[MUSIC]
Artisan changes all of that, by putting unprecedented
control at your fingertips, on an easy to
use, online platform, that gives you near instant
insight into how your customers are using your app.
And the immediate knowledge of what's working, and what's not.
Truth is, with Artisan, you can make modifications, test different designs
and messages, create personalized experiences,
publish updates directly to your users.
And analyze your app's effectiveness, all within minutes, and all without coding.
This means, among other things, you'll be able to make informed decisions based on
facts, not hunches, which will lead to
better customer experiences and more profitable results.
That's remarkable.
So if you're looking to wow your customers
by crafting amazing mobile experiences, you're looking for Artisan.
[MUSIC]
Bottom line.
We'll help you maximize your return on mobile.
8:07
>> So you might have gotten lost in some
of the technical elements, if you're not a developer.
But it certainly sounds good.
And it certainly sounds like, as a tool for
developers, it's going to add value to what you're doing.
And so they're having some success with this, and again, it's geared much towards,
8:25
the logic of let's build a tool.
This is one of the most successful
Kickstarter campaigns, which is a crowd-funding platform.
And we'll talk about what crowdfunding is.
Where entrepreneurs went in with a design, and they set out with a
goal of raising $100,000 through pre-sales.
So not via investors, but from people that would buy the product, would pay
them for this product now.
And that would come with a promise of them sending you
the product, once it was built, a few months from now.
10:45
Pebble comes in several different colors.
Arctic white, Jet black, Cherry red, and a fourth color, that
you could vote on as a backer of the color option.
We're really excited, about how you can run apps on Pebble.
If you cycle, you can use Pebble as a bike computer.
11:40
You can also control most Smartphone music apps like, iTunes,
Spotify, Pandora, Google Music and more, right from your wrist.
[MUSIC].
These apps are just the start.
For the more adventurous, we're launching an open
SDK, so anyone can build apps for Pebble.
These apps can receive data, and transmit data to the internet.
12:04
Pebble has a built in accelerometer, a vibrating
motor, powerful microprocessor, bluetooth, and a beautiful e-paper display.
The battery keeps Pebble running for over seven days.
So that's Pebble.
We finished the design, and we're just about to start production.
But we need help, to get Pebble onto your wrist.
We hope you'll join us.
12:31
Thanks. >>
[CROSSTALK]
>> So what they've done, and the nature of this, and with these platforms like
Kick Starter, you can buy this for $100. >> That's it?
>> Whoa. >> I'm getting one of those.
>> Is it out yet? >> Yeah.
>> And, you get one watch for a 100 bucks,
and they plan to retail it for 150, in exchange
for you giving them the money now.
And again, waiting from March until September,
so waiting about six months for it.
You get a $50 discount.
13:15
And with this one, it looks like they sold that, and
then they may have added some more later. And they
sold 40,000 watches, at this $115 price point.
And so they have all these different levels, of what type you
can buy, and how many you can buy, and how many colors.
And if you would like,
[CROSSTALK].
>> A 100.
>> A 100 of them, they will sell you a 100 of them, in a mix of colors.
Who would need 100 watches?
[CROSSTALK]
>> A distributor.
>> A distributor or a retailer, that wants
to put this in their store and sell them.
So in that way, watches been around a long time, I'm
not familiar with too many watches that do what this one does.
Fundamentally, it's extending the display
of your iPhone to your watch, or your wrist.
So it doesn't necessarily have every
feature and function, embedded in the watch.
it just adds a second screen, to use the software
and the features that you already have on your phone.
So pretty novel, pretty interesting, as evidenced
by the success they've had with it.
15:26
actually let me back up.
It looks like it started April 11th, and so they hit their goal that day.
So they hit that $100,000 goal that day.
But they continued with it, and it ran until, mid May.
And they did 10 million in sales, during
that window, as I understand what they have here.
>> Well, how does Kickstarter make money off of this?
>> Kickstarter makes a percent.
So I think it's about 6%. >>
[INAUDIBLE]
>> So in that way, they make a percentage of sales.
>> $600,000.
>> And when we look at this crowdfunding market.
16:04
So now we're kind of going beyond that specific product, and we're looking at the
broader crowdfunding industry. We see that, based on this chart, there
are an increasing, and rapidly increasing rate of growth of models
like this, where some people are buying product.
Meaning that I'm going to prepay for product.
16:32
There are other people that are doing equity.
I'm buying into a company, based on a website.
And I'm putting in couple of hundred dollars, couple of thousand dollars.
There are lending platforms.
There are donation-based platforms.
There are microloan and microlending platforms.
So there's a lot of things going on, in this crowdfunding space.
And people buy in on it, because they either like the product, they
want to buy it, they believe in it, they want to put some money in.
17:46
that are building software, for people that want to start crowdfunding
websites. So let me state it a different way.
So there is Kickstarter, which is a company where you
and I, if we have a product idea, or we
want to make a movie, or we want to write a
comic book, or whatever it is that we want to do.
We can go to Kickstarter. We can post our project, and
try and get people to buy via pre-sales, or just contribute money to it.
18:21
Different than Kickstarter, there are other platforms out there, that try and
match entrepreneurs, with people that are prospective buyers or donators.
This company has what's called a white lib-, white label solution.
Which is kind of a template of features and functions that you
can use, if you want to start a crowdfunding site, for a
specific purpose or audience.
And an example of one of their customers, is the
University of Vermont, and that's their platform that they've highlighted here.
19:17
and do it in this kind of pre-sales fashion.
Where you have an idea, you need some money to make the idea happen.
People want the product.
But they can't buy it until it's made,
which you can't do until you have the money.
So it gets to be a chicken and egg problem historically.
But here this is a novel way of solving
it, where people are going to pay you first, you'll use that to make it.
And then you'll give them what it is they bought, with a bit of a time delay.
>> let's say the watch company, I forget the name.
>> Yep.
>> they only got, or Pebble, they only got like, let's say 10 sales or something.
>> Yep.
>> Does the money go back
[COUGH]
to the people that put it in if they?
>> Yes, so a lot of these crowdfunding platforms, and again if you
are the builder of a platform, you can decide what the rules are.
But typically, if you tell me you need $100,000 to make your product,
and you raise $99,000, then your product is unfunded, you get no money.
And all that money goes back to the people that pledged the money, initially.
20:36
And you either raise it, or you don't. And it's an all or nothing, solution.
But what we see here, again with these
crowdfunding platforms, is they are emerging and emerging rapidly,
and again a novel space.
Kickstarter is big, and there are another one or two that are big.
But they're a little bit non-specific.
What's the problem with putting your ideas up for sale, before you have the product?
>> Someone will steal it. >> Someone may steal it.
21:59
>> People probably won't take your idea, but you'll know who they are.
>> It might be a little bit more of a controlled environment.
It might be more of a trustworthy environment.
The likelihood that other students are going to have a
ton of money, and a ton of existing relationships,
that they're going to be able to execute on that
idea well, and quick and before you, is low.
And so in that way, again, there are other advantages to making it local.
What else is interesting, about having something that's a
very local model, from being able to raise funding?
22:37
Who gives you money? >> People.
>> People that live near you, or that are otherwise affiliated with the school.
So in that way too, by having something
that's kind of a local, or a specialized platform,
you may be able to more effectively raise money,
and again it's more of a trusted type environment.
So in summary, when we think broadly about
industries, it really comes down to two fundamental questions.
Is the industry
at the right stage?
Is the life cycle right for you to enter as a start-up?
Or if you are entering something that maybe is a bit too mature, what are
you going to do to be sustainably competitive, against
bigger firms that are already within that space?
The second piece is understanding structure.
And it's understanding what types of structures are favorable to startups.
And it's rare that you're going to find
the perfect industry, that's favorable by all measures.
But it gives
you some sense of the things to consider, the things that to beware of.
As also the things that you're going to have to compete
within, and what to expect as you enter an industry.