recentpopularlog in

jerryking : culling   28

The CEO who built Cisco into a powerhouse has a sobering coronavirus diagnosis: At least nine months of economic pain - MarketWatch
April 7, 2020 at 10:12 p.m. ET
By Jon Swartz

John Chambers warns any economic uptick from coronavirus won’t occur until at least late fall, and a full recovery would likely happen until early 2021......COVID-19 has him expecting the worst over the next nine months to year......Chambers predicts that the health and economic crisis will take three to five quarters to run its course, and any economic uptick won’t occur until at least late fall. A full recovery would likely happen until early 2021, Chambers warned.
“Companies are running out of cash,” Chambers told MarketWatch in a phone interview Tuesday. “The next quarter is going to be ugly.” He cautions many companies will see revenue decline by half and, “only the strongest startups will survive.”......Chambers sees the pandemic as a three-axis disrupter to the economy, health-care system, and global supply chain, with the travel and airline industries recovering much more slowly than retail and financial institutions.......the crisis is also an opening for innovative, bold companies. “For many, it will be like a second chance to do an IPO,”......“Companies will either be destroyed or break away if they follow their North Star,” said Chambers, a leading proponent of the adoption of big data, artificial intelligence, 5G, and edge computing by all companies. “It’s time to reinvent or be left behind. And remember, great tech companies have emerged during economic crisis.”..... COVID-19, which Chambers said will force many “companies to use this moment to make the transition to digital.” For more than a year, he has harped on the importance of Fortune 500 companies to remake themselves as digital operations or face extinction. The advent of COVID-19, he said, has only heightened the urgency and accelerated damage to many companies........Chambers predicts that up to 40% of the Fortune 500 and 70% of startups will no longer be around a decade if they don’t make the digital transition.
CEOs  Cisco  COVID-19  crisis  culling  digital_strategies  economic_downturn  Fortune_500  John_Chambers  North_Star  pandemics  reinvention  start_ups  viruses 
yesterday by jerryking
Investors dole advice to struggling start-ups
SAN JOSE, Calif. -- The layoff body count grows by the day. As fallout from the financial crisis rains down on Silicon Valley, some investors and entrepreneurs compare themselves to battlefield su...
advice  angels  burn_rate  cash_reserves  crisis  culling  economic_downturn  exits  financial_distress  founders  investors  John_Doerr  layoffs  Ron_Conway  selling_out  start_ups  triage  vc  venture_capital 
5 weeks ago by jerryking
Venture Capital Firms Prune Their Portfolios --- Moves Help Keep Merger Activity Stable
09 Nov 2001 | Wall Street Journal pg. 20 | By Suzanne McGee.

Venture capitalists appear more eager than ever to dispose of their problem companies.

With valuations of these start-ups in the d...
culling  exits  financial_distress  M&A  mergers_&_acquisitions  selling_out  start_ups  triage  vc  venture_capital 
5 weeks ago by jerryking
Venture Capitalists Battle to Keep Portfolios Afloat --- New Investments Buttress Companies Already Launched
04 Jan 2002: | Wall Street Journal | By Suzanne McGee.

Instead of writing checks for millions of dollars to finance new start-up companies, venture capitalists spent last year battling to keep th...
culling  economic_downturn  start_ups  recessions  triage  vc  venture_capital 
5 weeks ago by jerryking
Venture Firms Clutch Purse Strings
22 May 2002: | Wall Street Journal B.7F. | By Johnathan Burns.

Roland Van der Meer and the folks at ComVentures saw the recession in communications-equipment spending coming more than 18 months ...
burn_rates  culling  exits  selling_out  start_ups  triage  vc  venture_capital 
5 weeks ago by jerryking
Venture Capital Forced to Perform Triage
22 Jan 2009 | Wall Street Journal pg. C.1 | by Pui-Wing Tam.

OAKLAND, Calif. -- Claremont Creek Ventures recently had to decide which of its young to forsake.

The venture-capital firm had inve...
culling  economic_downturn  Pui-Wing_Tam  start_ups  recessions  triage  vc  venture_capital 
5 weeks ago by jerryking
Cash burn: Venture capitalists in Silicon Valley face a crunch as investors refuse to put more money into technology companies.
On the shelves of Bruce Dunlevie's office in Sand Hill Road, the epicentre of Silicon Valley's venture capital industry, stands a small forest of plastic plaques, trophies from his career as general p...
Benchmark  burn_rates  crisis  culling  early-stage  investors  recessions  Silicon_Valley  start_ups  vc  venture_capital 
5 weeks ago by jerryking
Vulture Capital
Jan 7, 2002,

** Scavengers pick through a killing field of corporate investment portfolios.

It's garage sale time at Polaroid. Now in bankruptcy, the company is selling.....an investment portfolio with stakes in a handful of tech startups, including Colorado MicroDisplay and ActivePhoto of Sunnyvale, Calif.......Such clearance sales are becoming commonplace.... The secondary market saw $1.5 billion in sales in 2001, a 150% increase since 1997. Faced with recession and a collapse in their once-buoyant tech speculations, some firms are rushing to unload venture portfolios, either by closing the fund and writing down the value or by selling the portfolio. Lucent and mobile phone retailer Hikari Tsushin are just two of the companies said to be looking to dump VC portfolios........One of the scavengers picking through the detritus is Nick Harris, general partner of Lexington Partners in New York. Last year Lexington paid $1 billion for 70 partnership interests from Chase Bank after it acquired J.P. Morgan. Lexington dropped another $1 billion buying a portfolio from Royal Bank of Scotland.

With $5 billion under management that it raised from banks, insurance companies and other institutions, Lexington is one of the biggest buyers of secondary stakes. In the mid-1990s buyers got an average 25% discount from the original investors' prices; today they buy at up to 40% discounts. Desperate sellers have even given away their portfolios for free in exchange for a share of future returns. "In some cases we're happy to pay a good price for the assets," says David Park of Paul Capital, in San Francisco. "In other cases they need to give us an extreme discount.
corporate_investors  culling  exits  secondary_markets  selling_off  start_ups  vc  venture_capital 
december 2019 by jerryking
Cut your to-do-list short (if you can’t, pretend to) | Fortythree.me
POSTED ON 15. SEPTEMBER 2019 BY FORTYTHREE

FOCUS, PRODUCTIVITY, TO DO LIST
culling  focus  GTD  lists  productivity  say_"no"  to-do 
november 2019 by jerryking
Laurier initiative to separate the strong startups from the weak - The Globe and Mail
JENNIFER LEWINGTON
Special to The Globe and Mail
Published Friday, Jul. 08, 2016

[For Corey & UpSpark]
Earlier this year, the school’s Lazaridis Institute for the Management of Technology Enterprises issued a report, Scaling Success: Tackling the Management Gap in Canada’s Technology Sector, that concluded Canada “continues to underperform its peers in the creation of high-growth firms.” For example, a majority of tech startups in the professional, scientific and technical sector demonstrated “consistently negative rates of business creation” between 2001 and 2012, according to the report.

Given the poor showing, the dean asks: “So how do we take our most promising startups and take them to the next level?”

One answer, he hopes, is a new collaboration between the Lazaridis Institute and several tech-focused industry partners.

Working with Communitech, a Waterloo-based innovation centre that supports more than 1,000 technology companies, the Institute plans to develop an assessment tool this fall to identify startups with the potential to scale up. The tool, currently being tested, would evaluate companies for the quality of their product, technology, staff, management and financial muscle.
assessments_&_evaluations  brands  business_schools  Colleges_&_Universities  Communitech  culling  failure  Fortune_500  gazelles  high-growth  Kitchener-Waterloo  large_companies  scaling  start_ups  tools  under-performing  WLU 
july 2016 by jerryking
Hunting the gazelle
DECEMBER 7, 2007 | The Globe and Mail | by SEAN WISE.

If one is attempting to build relationships with fast growing companies, how does one decide which ones (of the thousands of small companies starting out) will become big companies - big enough to justify the cost of investing in them now?.......in an effort to ensure a shared nomenclature, here's a communal taxonomy to help classify the various types of ventures encountered.

• Mice are small companies that are likely to stay small. Think "Bob's Pizza"- they can serve a great slice of 'za but it is unlikely they will double in size annually.

• Elephants are large companies whose growth is constant, but at a low level. Think Royal Bank. Its revenues grow annually, but it is so large that the growth is negligible over the short term, yet noticeable over the long term. Unfortunately, these companies have a high client acquisition cost.

• Dogs are medium to large companies that are experiencing low or negative growth. Think "AOL". A great company, but its revenue is shrinking. In the venture capital business, I often refer to these companies as kennel capital, i.e., companies that should be put to sleep.

• Gazelles are young companies that are experiencing extreme, massive growth. For those that pitch them early, the CAC is low and carries with it a high return on investment. Think "Facebook".

From a cash flow perspective, all four business animals start at similar points, however, they diverge rather quickly. The green Mouse stays fairly consistent, growing and shrinking its cash flow over time - possibly as a result of seasonal conditions. Never is it losing money, but it's never really hitting it big, either. The yellow Elephant starts in the best cash flow position and grows consistently at a relatively reasonable CAGR (Compounded Annual Growth Rate - a common business term used to represent the annualized growth of the business). Backing an elephant is never a bad idea, it is in fact, the safest bet (no one ever got fired from trying to land an Elephant). Unfortunately, Elephants are hunted by all, and this in turn, drives up the customer acquisition cost (CAC).......The Gazelles are where it's at from a business development (aka hunting) perspective. Gazelles tend to have the highest CAGR. They're also non-bureaucratic, and are flat in their organizational chart, which contributes to shorter sales cycles and lower CAC.

How to pick a Gazelle?
(1) Focus on those in industries with CAGR > 25%. If an industry is growing annually by 25% or more, then even those companies who finish second or third in their niche will do well. After all, a rising tide floats all boats.

(2) Look for Scalability. If a company can scale, it means they can produce their products for ever-increasing margins (i.e., the 1000th widget costs less to make than the 10th).

(3) Focus on Sustainable Competitive Advantage. If the company you are reviewing lacks any sort of proprietary intellectual property (i.e., patents), or has no barrier to entry, how will they stop others from flooding the market and eating their lunch? Gazelles continue to grow faster than their competitors by being able to differentiate their offerings to their clients.

(4) Look for the 10x rule. Being a little better, a little faster; or a little cheaper isn't enough to turn a startup into a Gazelle. For that to happen, a company has to offer a solution that is 10x faster, 10x better, 10x more secure, 10x cheaper, etc. To sustain double digit growth over the long term, and/or to obtain dominant market position, you will need a 10x solution, a solution that is exponentially better.

The Bottom Line

Whether you are a startup, an angel investor looking to back the best startups, or a service provider looking to serve either, you need to be able to spot high growth companies earlier than others. You need to be able to separate the wheat from the chaff - the potential world leaders from those that will become kennel capital.

If you are looking to find the next Google, Facebook, or Workbrain, you need to strap on your pith helmet and start tracking the Gazelles. Doing so will most likely ensure the greatest returns on your efforts,
10x  barriers_to_entry  business_development  CAGR  cash_flows  competitive_advantage  culling  customer_acquisition  gazelles  high-growth  howto  return_on_effort  scaling  small_business  start_ups  taxonomy 
february 2015 by jerryking
Hidden gems
Apr 12th 2014 | The Economist | Schumpeter.

Reviving old brands sometimes makes more sense than creating new ones.

companies often discard brands that contain plenty of what marketers call “equity”. In plain English, ones that people still remember fondly. Healthy brands can be sacrificed on the altars of corporate takeovers and restructurings....The second reason is that reviving an old brand often beats spending months and millions on creating a new one, with a lower risk of failure. If something has worked before there is a good chance that it will work again. Old brands come with ready-made logos, slogans, jingles and memories.
brand_equity  brands  branding  orphan_brands  rejuvenation  goodwill  symbolism  jingles  logos  slogans  memories  culling 
april 2014 by jerryking
Four Lessons from Rockstar Games: The Innovator...
September 18, 2013 | Quora | by Ross Simmonds [Life & Pixels]
(1) Give The Customers What They Want - When you focus on giving your customers what they want, the media and customers will do the talking for you. Creating an impact doesn't happen by saying you're going to make one. It happens from actually doing it.
(2) Don't Be Afraid To Break The Rules - In business, it's more important than ever to push boundaries. To be successful, you need to do things that other people question but you know is going to be right for your clients, partners, employees or customers. As the world gets smaller, the importance of pushing boundaries and striving for greatness is at an all-time high. When you're thinking about how your business can generate some additional press or how you could win new business - think differently.
(3) Don't Be Afraid To Kill Your Bad Puppies - It's the idea of killing something that is at the core of what makes you feel uncomfortable....In business, the initial stages of customer research and product development are just one part of the puzzle. As you build your business and establish a client base, you're required to make more decisions as new opportunities arise with your business growth. Decision making quickly becomes a key part of your job as you're forced to make choices on a daily basis...It's our obsession with the past and our own creations that hold our businesses back from continuing to evolve and grow.
(4)Take Pride In The Entire Experience--A great business is one that sweats the little things. It's a business that focuses on the minor details and ensures that their entire business is built on the idea of an experience....At the end of the day, you can get excited about using Instagram for a new promotion or work relentlessly on developing a great content marketing strategy but if your product sucks, you'll fail. The key for business success is to be mindful of these four lessons as you build your business and strive to make it grow.
lessons_learned  culling  customer_satisfaction  execution  detail_oriented  games  rule_breaking  customer_centricity  videogames  kill_rates  Pablo_Picasso  innovators  hard_work  think_differently  stage-gate  attrition_rates 
september 2013 by jerryking
Identify new growth niche and how you can profit
March 19, 2013 | Financial Post | By Rick Spence.

Sparks: What other companies need unlikely solutions? How could you help them with data management, management of perishables, or guaranteeing consistent quality?
Sparks: What niche information markets could you develop and own? Or, what services could you offer to celebrity startups that have everything except business experience?
Spark: Retailers are eager to lock up new brands to differentiate themselves. How can you help more marketers achieve a competitive advantage?
Spark: What other marginal products and businesses will tech giants such as Google and Facebook drop next? How can you help users adjust? Or, what under-performers should you be trimming from your own product roster?
Sparks: Designers and builders should target early adopters eager for a colour makeover.
Spark: Where else can you find a business whose margins are so huge that Buy-One, Get-Three-Free makes sense? Or, when big names are offering value propositions like this, how can you retool your promotions and sales to compete?
Spark: How could you solve major problems like these without a supercomputer?
Spark: Gadgetry is changing so fast that even markets you thought had stabilized are wide open to new ideas. How can you use hot new technology to disrupt your industry?
Rick_Spence  growth  niches  entrepreneur  kill_rates  IBM_Watson  massive_data_sets  celebrities  ideas  entrepreneurship  new_businesses  solutions  disruption  under-performing  early_adopters  competitive_advantage  perishables  information_markets  adjustments  data_management  culling  differentiation  retailers  brands 
march 2013 by jerryking
Bubbling Up
January 2005 | Worth | Sergio Zyman.

We changed the formula we had been using for 100 years to give our customers what we thought they wanted: New Coke. We orchestrated a huge launch, received abundant media coverage and were delighted with ourselves until the sales figures rolled in. Within weeks. we realized that we had blundered. Sales tanked and the media turned against us. Seventy-seven days New Coke was born. We made the second-hardest decision in company history: We pulled the plug. What went wrong? The answer was embarrassingly simple: We did not know enough about our customers. We did not even know what motivated them to buy Coke in the first place. Based on that, we fell into the trap of imagining that innovation—abandoning our existing product for a new one would cure our ills. After the debacle, we reached out to consumers, and found that they wanted more than taste when they made purchase. Drinking Coke enabled them to tap into the Coca-Cola experience, to be part of Coke's history and to feel the continuity and stability of the brand. Instead of innovating. we should have renovated. Instead of making a product and hoping people would buy it, we should have asked customers what they wanted and given it to them. As soon as we started listening to them, consumers respondcd, increasing our sales 9 billion to 15 billion cases a year.
Coca-Cola  Pepsi  market_research  marketing  renovations  growth  CMOs  product_launches  kill_rates  brands  customer_expectations  customer_insights  culling  mistakes  beverages  innovation  contra-innovation 
may 2012 by jerryking
Lean Start-Ups Reach Beyond Silicon Valley’s Turf - NYTimes.com
By STEVE LOHR
December 5, 2011

The newer model for starting businesses relies on hypothesis, experiment and testing in the marketplace, from the day a company is founded. That is a sharp break with the traditional approach of drawing up a business plan, setting financial targets, building a finished product and then rolling out the business and hoping to succeed. It was time-consuming and costly.

The preferred formula today is often called the “lean start-up.” Its foremost proponents include Eric Ries, an engineer, entrepreneur and author who coined the term and is now an entrepreneur in residence at the Harvard Business School, and Steven Blank, a serial entrepreneur, author and lecturer at Stanford.

The approach emphasizes quickly developing “minimum viable products,” low-cost versions that are shown to customers for reaction, and then improved. Flexibility is the other hallmark. Test business models and ideas, and ruthlessly cull failures and move on to Plan B, Plan C, Plan D and so on — “pivoting,” as the process is known.
Steve_Lohr  entrepreneurship  start_ups  lean  experimentation  speed  business_models  pivots  minimum_viable_products  testing  Plan_B  culling  flexibility 
december 2011 by jerryking
Jobs's Legacy: Changing How We Live - WSJ.com
AUGUST 25, 2011 | WSJ | By WALT MOSSBERG. Jobs changed the
way people live by being willing to take big risks on new ideas, and not
be satisfied with small innovations fed by market research. He insisted
on high quality and had the guts to leave out features others found
essential and to kill technologies, e.g. the floppy drive & the
removable battery. [JCK: An example of "culling"?] And he has been a brilliant marketer, personally
passionate about his products.. he introduced the dominant digital music
player, the iPod, & created the most successful digital media
service, iTunes. He introduced the first super-smartphone, the iPhone,
the only truly successful tablet computer, the iPad, which is in the
process of replacing the laptop, at least in part. He built the world's
largest app store and he built a phenomenally successful chain of retail
stores, too.

Jobs has dramatically changed the mobile phone industry, the music
industry, the film and TV industries, the publishing industry and
others.
Apple  breakthroughs  CEOs  culling  dissatisfaction  gut_feelings  high-quality  imagination  legacies  marginal_improvements  moonshots  resignations  risk-taking  Steve_Jobs  Walter_Mossberg 
august 2011 by jerryking
Technology Devices Either Sell Big or Die Fast - NYTimes.com
August 23, 2011 | NYT | By JENNA WORTHAM & VERNE G.
KOPYTOFF. In recent years, technology companies have been cutting their
losses with increasing speed...These days, big technology companies —
particularly those in the hypercompetitive smartphone and tablet
industries — are starting to resemble Hollywood film studios. Every
release needs to be a blockbuster, and the only measure of success is
the opening-weekend gross. There is little to no room for the sleeper
indie hit that builds good word of mouth to become a solid performer
over time. ...this accelerated lifecycle of high-end hardware is being
described as “Darwinian.” ...Companies kill new products more quickly
now because of the higher cost of staying competitive, ..The crush of
tech bloggers and Twitter-using early adopters .. raises the stakes
around how well new products perform in the marketplace...One needs
everything in place: the content, the applications and the
experience--to have a reasonable chance at success. [JCK: "everything in place" = ecosystems]
accelerated_lifecycles  attrition_rates  blockbusters  content  culling  Darwinian  ecosystems  hits  Jenna_Wortham  kill_rates  mobile_applications  new_products  product_development  product_launches  social_media  smartphones  speed  tablets  UX  winner-take-all 
august 2011 by jerryking
How to Turn Trash Into Treasure - WSJ.com
April 13, 2007 | Wall Street Journal | By ELLEN BYRON. Under
pressure to deliver growth, a number of consumer-products titans,
including Procter & Gamble Co., Unilever and Colgate-Palmolive Inc.,
have been selling well-known but underperforming brands to better focus
on those with more potential. Smaller firms trying to play Dr.
Frankenstein have bought such familiar castoff brands as Sure and Right
Guard deodorants, Comet cleaner, Aqua Net styling products, Pert Plus
shampoo and Rit dye.
orphan_brands  resuscitation  marketing  consumer_goods  culling  P&G  Unilever  Colgate_Palmolive  CPG  divestitures  brands  under-performing  personal_care_products 
may 2009 by jerryking
Ping - How Google Decides to Pull the Plug - NYTimes.com
February 14, 2009 NYT article By VINDU GOEL on how Google
evaluates budding projects, its key tests for continued incubation, its
use of its own employees as a test bed, and its use of product-specific
blogs to communicate and listen to, the public.
attrition_rates  stage-gate  Daniel_Pink  Freshbooks  decision_making  business  innovation  Google  exits  trial_&_error  commercialization  projects  kill_rates  test_beds  assessments_&_evaluations  Communicating_&_Connecting  testing  blogs  new_products  Michael_McDerment  culling 
february 2009 by jerryking

Copy this bookmark:





to read