Entrepreneurship in Action: From Idea to Opportunity {II} - - PowerPoint PPT Presentation

Entrepreneurship in Action: From Idea to Opportunity {II}

Means-Ends Framework in Action: Trajectory of New Technologies Emergence of a New Venture Through Superior Value Proposition

Storage

 Primary

storage

Volatile Temporary

 Secondary

storage

Nonvolatile Permanent

 Secondary storage

characteristics

Media Capacity Storage devices Access speed

Characteristics of Storage

 Volatility

DRAM / SRAM

 Mutability

Read / Write; Read Only; Slow Write, Fast Read

 Accessibility

Random / Sequential

 Addressability

Location; File; Content

 Capacity

Raw Capacity / Storage Density

 Energy Use

Moving Parts / Solid State

The Cost of a Disk Access

Time Component Action

Seek Time Time to move the read/write arm to the correct cylinder Rotational delay (or latency) Time it takes for the disk to rotate so that the desired sector is under the read/write head Transfer time Once the read/write head is positioned

• ver the data, this is the time it takes

for transferring data

Floppy Disks

 Diskettes  Floppies  Portable storage

media

 Floppy disk drives

(FDD)

Traditional Floppy Disk

Traditional Floppy Diskette

Types of Floppies

 High capacity  Known as a floppy-disk

cartridge

 Require special disk

drives

 Three well known types

Zip disks HiFD disks SuperDisks

Ends Means Old New Old New

Hard Disks

• Use thicker, metallic platters for

storage

• Faster than a floppy diskette
• Large capacity

Ends Means Old New Old New

 Located inside system unit  Known as a fixed disk  Designated as the C drive  Advantages over floppies

Access speed Capacity

Hard-Disk Cartridges

 Removable hard disks  Used to complement

internal hard disk

 Capacities of 10 to 20

GB

PC Card Hard Disks

Ends Means Old New Old New

Hard-Disk Packs

 Removable  Massive storage

capacity

 Common in

mainframes

 Resembles stack of

vinyl records

Ends Means Old New Old New

Performance Enhancements

 Disk caching  Redundant arrays of

inexpensive disks (RAID)

 File compression

and decompression

Ends Means Old New Old New

Optical Disks

Compact Permanent storage Laser beams reflect

• ff pits

Two common types

CD DVD

Ends Means Old New Old New

Compact Disc

 Optical format  From 650 MB to 1 GB

capacity

 Rotation speeds vary  Types

Read only: CD-ROM Write once: CD-R Rewriteable: CD-RW Picture CDs and Photo CDs

Ends Means Old New Old New

Digital Versatile Disc

Digital Versatile Disk or Digital

Video Disk (DVD)

Similar to CDs, but can store

more data

Types

Read only Write once Rewritable

Ends Means Old New Old New

DataPlay

 Optical disk  Write once format  Quarter size

500 MB capacity Holds 5 hours of CD-

quality sound

 Use for storing and

playing music files

Ends Means Old New Old New

Solid-State Storage

 Flash memory cards

Widely used in notebook

computers

Used to record MP3 music

files

 Key chain hard drives

Key chain flash memory

devices

Connects to a USB port

Ends Means Old New Old New

Internet Hard Drives

Ends Means Old New Old New

Always On the Move

 One Trillion digital images will be

captured in 2015

 700 billion of these will be captured on

mobile phones

 300 hours of video are uploaded to

YouTube every minute

 Biggest customers

Mobile and Tablets Consumer Electronics Computing

Secondary Storage Pioneers

Seagate Western Digital Terradata Micron EMC

Means-Ends Trail

Chief Executive Officer Sanjay Mehrotra, President and Chief Executive Officer

Eli Harari and Sanjay Mehrotra Honeywell and Intel Set up SanDisk in 1988

• Dr. Eli Harari, an Israeli engineer, began making early contributions to

electrically erasable programmable read-only memory [EEPROM]

• a precursor to flash memory
• Harari worked on flash memory at Intel, leaving to found a start-up

which failed

• In 1988, Harari launched the company that would become SanDisk

with Sanjay Mehrotra and Jack Yuan

• Early on, SanDisk had recognized that digital cameras would need

digital storage, and computers could become ever more mobile and light and would require a similar storage technology

• In 1988 Harari offered the flash memory card technology to Kodak for

inclusion in their cameras.

• Kodak offered to fund the development with the condition that

SanDisk offer a three year exclusive contract for the 'digital film'.

• Harari and SanDisk rejected the offer, preferring to have competition

in the marketplace

From Idea to Start-up

• high-density flash

memory process, module integration, device design and reliability;

• securing data on a

flash memory device;

• controller design and

firmware;

• system-level

integration;

• multi-die stacking and

packaging technology; Removable cards Embedded products USB drives Digital media players Solid state devices Mobile Consumer electronics Computing

SanDisk 1995-2010

Year Revenue, $ million 1995 62 2000 602 2005 2,310 2010 4,830

2014: $ 7 Billion

• From a 3 person start up SanDisk has 4,000 employees

 SanDisk shipped 700 million units last year  SanDisk R & D spending $513 billion

19 nm technology

• On average, customers purchased over 2 million SanDisk

products each day

• In fiscal 2011, SanDisk delivered record revenue with

strong profitability and cash generation, driven by a leading position in a broad range of markets

• Grew sales to $5.7 billion representing a 17% growth

year over year

• Focus on profitable growth allowed SanDisk to generate

more than $1 billion in cash flow from operations

SanDisk Becomes Ubiquitous

FISCAL 2014 KEY FINANCIAL METRICS

Metrics in millions, except percentages and per share amounts FY’14 FY’13 Revenue $6,628 $6,170 Gross Profit percent of revenue $3,068 46% $2,867 46% Operating Income percent of revenue $1,558 24% $1,562 25% EPS $4.23 $4.34

5,000 patents: named a Thomson Reuters 2014 Top 100 Global Innovator for the fourth consecutive year. Introduced the iXpand™ Flash Drive, designed specifically for iPhone and iPad, allowing quick photo and video transfers from an iPhone or iPad to a Mac or PC.

Beyond the Horizon

 A critical ability for a successful entrepreneur is to

make appropriate predictions regarding the uncertain future

 Discovery of new resource  New consumer desires  New technological opportunities

Correctly anticipate consumer preferences and efficiently use resources to meet these preferences The goal of an entrepreneur is to know the consumer’s future wants

Before the consumer knows them

Characteristics of an Opportunity

 Creating value

Not necessarily low cost

 Opportunity is not always (rarely?) found

in well-documented growth markets

 Opportunities

are not necessarily the result of inventions by the entrepreneur

 Not everyone pursues opportunities, even

if they are obvious

Nine Categories of Opportunity

 Increasing the value of a product/service  New applications of existing means of

technology

 Creating mass markets  Customization for individuals  Increasing reach  Managing the supply chain  Convergence of change  Process innovation  Increase the scale of the firm

Preparing a Concept Statement

Concept statement should provide

• a description of the product or service

being offered

• the intended target market
• the benefits of the product or service
• a description of how the product will be

positioned relatively to similar ones in the market

• a description of how the product or

service will be sold and distributed

Means-Ends Framework

Commodity Product Improvement Process Improvement Breakthrough Innovation

Old Means New Means

Creating a New Value Equation

What factors should be reduced well below the industry standard ? What factors should be raised well beyond the industry standards ? What factors should be eliminated that the industry has taken for granted ? What factors should be created that the industry has never

• ffered ?

Reduce Eliminate Create Raise New Value Equation

Specific business

• pportunity

Technologies and Competencies Customer Segment Applications Technology-Driven Businesses

Opportunity Checklist

 Product, market and industry

Demand, current market size and growth

rate

Cost structure

 Economics

Profit potential Time to breakeven Capital requirements Financial returns

Opportunity Checklist

 Competitive Advantage

Variable/ fixed cost Entry barriers Protectable Intellectual Property

 Personal

Personal goals and fit Upside v/s downside Stress tolerance

 Sustainable Advantage

Opportunities for extensions Management team Harvest

Exploring the Opportunity

 What is the opportunity?

Why? Who for?

 How does the opportunity create new value?

How is it different? What benefits will the

customers obtain which are not currently available?

 How does the opportunity score on the four

essential qualities?

Attractive; anchored in a product/service that

creates value; timely; and durable

 How to realize the opportunity?

Where? When? Scale?

Essential Qualities of an Entrepreneurial Opportunity Attractive Timely Durable

Anchored in a product, service or business that creates or adds value for its buyer or end user

Opportunity (rather than just an idea)

The Window of Opportunity

Market Size Time (Years)

5 10 15 20 10 100 1000 10000

January 9, 2007

From Apple Computer to Apple Inc.

Year 2002 2003 2004 2005 2006 Sales 5 6 8 14 19 Profit 0.04 0.06 0.27 1.3 1.9 Year 2007 2008 2009 2010 2011 Sales 25 37 43 65 108 Profit 3 6 8 14 26