Week 33: Network Centrality, Bass Diffusion, SaaS Sales & Data Science

Stanford GSB Sloan Study Notes, Week 3 (33), Spring quarter

Head down in two inches of readings for this week and a fresh flow of first written project deadlines, like a two-degrees-deep analysis of your friends and advisors social graph or a set of regressions to be run on profitability data of a bank who has no clue if there is any connection between the demographics and profitability of their customers.

For a little different entertainment in the Sales Orgs class we are running a simulation game where you need to manage yourself through the pipeline as a sales rep of a medical devices company. Four virtual “years” in four weeks. After a miserable first year (I hit merely about a quarter of my quota – should have read the manual before I tried to just figure the game mechanics out for 2 “quarters”) I look forward to the Tuesday class from a much more comfortable position after “year” 2. I guess the hours spent as a teen with Civilization and the likes can sometimes pay off?

GSB hosted a fun networking event this week called “Fewer than 300” – bringing people in from over 30 companies who are about to grow out of their startup phase (but are yet to break 300 employees), but have raised money and shown traction and still are just burning of enthusiasm about what they are doing. Think of the likes of Uber or Nest or Visual.ly. Good people and good conversations.

Covered in this issue:

  • Analysing network centrality measures and deriving composite relationships from simple a matrix
  • Using Bass diffusion models for new product adoption predictions
  • Handling variability in processes (from job shops to continuous flow)
  • Economics of selling SaaS subscriptions and merging sales teams after M&A
  • More team-first entrepreneurial models
  • History of Sloan Program at Stanford
  • Data Science learnings from LinkedIn and other Greylock companies
  • Guests: Vinod Khosla, Mark Leslie & part of Veritas exec team, Corey Leibow, Eric Botto, George Parker, DJ Patil

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East Coast Study Trip

2013-03-24 22.45.242013-03-29 23.48.38

After a quick 2-day trial hop to visit a few firms like Boeing and Starbucks in Seattle in November, the Sloan Class of 2013 spent a full week of our spring break on East Coast. This time it was less about the particular companies and public organisations we saw, but more about the people, the leaders we met and their learnings and ideas.

All of our hosts had a little theme tip on “resilience” included in their brief (inspired by the Resilience: Why Things Bounce Back book by Andrew Zolli), which some of them chose to focus on and others less so. But most importantly, everyone seemed to just be themselves – which, mind you, can mean something quite different in bluntly direct New York compared to politically polished Washington, D.C.

I certainly appreciated the trust of the open conversations and I am holding back on too detailed notes from the meetings. Yet, just listing the names would be boring too – so let me include just one or two ideas from each. Which, as I am doing this weeks after the actual trip and by heart, are implicitly the concepts or questions that stuck with me – even if the wordings are my interpretation, not direct quotes.

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Week 31: Analyzing Social Networks, Marketing Mix and Restaurant Operations

Stanford GSB Sloan Study Notes, Week 1 (31), Spring quarter

For some weird reason the GBS classes after the Spring break kicked off on… a Thursday. Just 2 days of classes gave a glimpse into what is to come – some very brief notes (and a few good book links) below. Posting anyway, to avoid letting the routine die before I get to finalize the half-finished East Coast study trip report draft sitting in Evernote…

On other news, we are throwing an orientation event for the incoming Class of 2014 already this coming weekend – really feels like yesterday when we were on the receiving end… T-10 weeks. Tick tock.

Covered in this issue:

  • Unbelievably profitable bootstrapping of McAfee
  • Introduction to Social Network Analysis
  • A flashback of statistical regressions, now applied to marketing data
  • Operating a Japanese show-restaurant

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Weeks 28-29: Bootstrapping, Europe(?!), Options & Private Equity Operators

Stanford GSB Sloan Study Notes, Weeks 8-9 (28-29), Winter quarter

So there: it takes about 28 weeks in Stanford to finally have someone mention Europe in any other context than a semi-joke about Greek macro environment in the short term. And these two weeks suddenly opened the floodgates: there was the first European company case this far, we spent some time on the (quite miserable) comparative venture financing stats between the continents and – most importantly – the rotationally geography-themed Sloan TGIF parties finally turned to the European night (affectionately dubbed as the “Estonia & the Rest of Europe” evening). Relieved with a sigh with my Swedish, Dutch, German, Swiss, French, Italian etc classmates: we have not entirely disappeared from the world map as seen from the West Coast yet, and will keep working on that threat.

Partially supported by the annual Stanford Entrepreneurship Week, the last weeks were super-exciting for the flow of external speakers – there is a separate post summarising those you should not miss. And we did do the Final View presentations of the LOWKeynotes program, including your’s truly’s 9 minutes on how hard it has been to adjust to somewhat surprisingly lacking digital living infrastructure here, coming from Estonia – videos for which will be online in 1-2 weeks. Stay tuned.

Covered in this issue:

  • Bootstrapping, venture debt and swimming against the tide in Europe
  • Exit planning and IPOs in venture deals
  • Thinking like a limited partner, structuring PE deals, operational turnarounds and the visible future of Private Equity
  • Derivatives and options – both financial and real
  • Academic research on VC compensation and incentives
  • Guests from: The Foundry, Avik Ventures, AngelList, Astia, Makena Capital, TPG, TSG Consumer Partners, Sierra Ventures, YouTube, Trulia, OpenLane, Fayez Sarofim, Accel, Meritech Venture Partners…

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Extracurricular Fireworks: Friendster, Prezi, Rovio, Bonobos + O’Reilly & Doerr

With the end-of-quarter groupwork frenzy I am behind on posting the academic lecture notes – hope to get to that this weekend. But meanwhile, as the flow of new thoughts from extracurricular guest visitors in just last seven days has been mind-blowing I’ll post them for your enjoyment.

See further for tips, startup plugs, book recommendations and videos from:

  • Jonathan Abrams (founder of Friendster, Socializr, Nuzzel, Founders Den)
  • Peter Halacsy, Peter Arvai (co-founders of Prezi, Hungary)
  • Peter Vesterbacka (Mighty Eagle, Rovio)
  • Andy Dunn (CEO and co-founder, Bonobos)
  • Tim O’Reilly (O’Reilly Media, O’Reilly Alphatech Ventures)
  • John Doerr (Kleiner Perkins Caufield & Buyers)

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The Intersection Event 2013

Entrepreneurship panel @ The Intersection

Spent an inspiring day at The Intersection Event at Googleplex. Full agenda is here and my notes from the sessions below.

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Week 22: IRR, Fishbones, Term Sheets & Angels

Stanford GSB Sloan Study Notes, Week 2 (22), Winter quarter

Fishbone

I think we’re getting back in the rhythm here. Continuous flow of external guest speakers and occasional valuation models to be built are bringing more variety to just swallowing hundreds of pages of cases. I did drop my across-the-street strategy class to get back to 19 units and thanks to that even made it to a few BBLs and a GSB High Tech Club company visit to Box. There is a long weekend coming up. Life is good.

Covered in this issue:

  • Finance: NPV and IRR, including pitfalls
  • Entrepreneurial finance: unit economics in business models and real options
  • Angel & VC finance (and a E-Club BBL): life of an angel investor
  • Negotiating Term Sheets, especially on valuation
  • Marketing and Mastery of Communications: more stories, including analysing viral videos & TED talks
  • Guests: Sand Hill Angels, Tory Burch, Pattie Sellers, James Buckhouse, Gil Penchina, Jeff Erickson

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Week 21: Finance, Ventures, Stories and Space

Stanford GSB Sloan Study Notes, Week 1 (21), Winter quarter

The pace of the new year has been just mindblowing, and not just compared to the Christmas break down time but to almost any of the school weeks from previous quarters. I guess this is what happens when you can almost fully customize your class schedule. And you want to get out of GSB to “across the street” schools for a bit. And you get accepted to this year’s LOWKeynotes speaker series, with dozens of hours scheduled for prep-work and coaching before the big stage. And…

I’m saying “almost in control,” because I have had close to no time to spend with family, sleep over 6 hours or socialize these last five days. And I do intend to do those things this quarter too. Exhausted, happy, but realizing this kickoff pace will not be quite sustainable as is. Let’s see what next week brings with its reading volume and booting up several project groups.

Covered in this issue:

  • Finance basics: free cash flow, annuities, perpetuities & NPV calculations
  • Business planning: financial business modelling, life time value of customers, Dropbox freemium example
  • Venture Capital: industry history and sizing, how VCs think, how they move money and get paid
  • Marketing: stories, stories, stories – creating and delivering them (videos)
  • Strategy: Grabber-Holder model explaining disruptive tech innovation via ultimate nothingness from Taosim and Yin-Yang cycle
  • Space entrepreneurship: an inspiring event on synthetic life with the Student Space Flight club
  • Guest speakers throughout the week: Vinod KhoslaNancy DuarteCraig Hanson and John Cumbers

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Winter Quarter Courses

As the Sloan year has passed the equator, I’ve signed up for the following classes kicking off next week. It is going to be quite intense, 22 units in total and Mondays going from 8am to 9pm…

Core classes:

Yes, just two this time, leaving more precious time for electives.

Electives: Read the rest of this entry »


A Little Different Book Review

The most surprisingly resonating fiction book I’ve read in a while inspired a little more experimentally formatted review:
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