Steve Blank Podcast

Three types of organizations – Incubators, Accelerators and Venture Studios – have emerged to reduce the risk of early-stage startup failure by helping teams find product/market fit and raise initial capital. Venture Studios are an “idea factory” with their own employees searching for product/market fit and a repeatable and scalable business model. They do the most to de-risk the early stages of a startup.

A CEO running a B-to-B startup in needs to live in the city where their business is – or else they’ll never scale.

We just wrapped up the second year of our Technology, Innovation, and Great Power Competition class – now part of our Stanford Gordian Knot Center for National Security Innovation. Joe Felter, Raj Shah and I designed the class to 1) give our students an appreciation of the challenges and opportunities for the United States in its enduring strategic competition with the People’s Republic of China, Russia and other rivals, and 2) offer insights on how commercial technology (AI, machine learning, autonomy, cyber, quantum, semiconductors, access to space, biotech, hypersonics, and others) are radically changing how we will compete across all the elements of national power e.g. diplomatic, informational, military, economic, financial, intelligence and law enforcement (our influence and footprint on the world stage).

In the past, headlines about the Pentagon failing its financial audit again would never have caught my attention. But having been in the middle of this conversation when I served on one of the Defense Department’s advisory boards, I understand why the Pentagon can’t count. The experience taught me a valuable lesson about innovation and imagination in large organizations, and the difference visionary leadership – or the lack of it – can make.

Join Jerry Engel, Pete Newell, and Steve Weinstein for the sixth edition of the Lean Innovation Educators Summit December 14, 1-4 pm Eastern Time, 10 am-1 pm Pacific Time. This virtual gathering will bring together entrepreneurship educators from around the world who are putting Lean Innovation to work in their classrooms, accelerators, venture studios, and student-driven ventures.

My good friend Alexander Osterwalder, the inventor of the business model canvas (one of foundations of the Lean Methodology) has written a playbook (along with his associate partner Tendayi Viki,) From Innovation Theater to Growth Engine to explain how to build and implement repeatable innovation processes inside a company. Here’s their introduction to the key concepts inside the playbook.

I spent last week at a global Fortune 50 company offsite watching them grapple with disruption. This 100+-year-old company has seven major product divisions, each with hundreds of products. Currently a market leader, they’re watching a new and relentless competitor with more money, more people and more advanced technology appear seemingly out of nowhere, attempting to grab customers and gain market share.

A journey of a thousand miles begins with a single step - Lǎozi 老子 I just had lunch with Shenwei, one of my ex-students who had just taken a job in a mid-sized consulting firm. After a bit of catching up I offered he was looking a bit lost. “I just got handed a project to help our firm enter a new industry – semiconductors. They want me to map out the space so we can figure out where we can add value.

Last month the U.S. passed the CHIPS and Science Act, one of the first pieces of national industrial policy – government planning and intervention in a specific industry — in the last 50 years, in this case for semiconductors. After the celebratory champagne has been drunk and the confetti floats to the ground it’s helpful to put the CHIPS Act in context and understand the work that government and private capital have left to do.

How does a newly hired Chief Technology Officer (CTO) find and grow the islands of innovation inside a large company? How not to waste your first six months as a new CTO thinking you’re making progress when the status quo is working to keep you at bay?