On Analogs and Antilogs in Innovation

Ziya G. Boyacigiller

This presentation was created and given by Ziya Boyacigiller who was leading Angel Investor and a loved mentor to many young entrepreneurs in Turkey. We have shared it on the web for everyone’s benefit. It is free to use but please cite Ziya Boyacigiller as the source when you use any part of this presentation. For more about Ziya Boyacigiller’s contributions to the start-up Ecosystem of Turkey, please go to www.ziyaboyacigiller.com

ON ANALOGS AND ANTILOGS IN INNOVATION

Ziya G. BoyacigillerSabanci UniversityBA, MBA and EXEC MBA2004 through 2013

ANALOGS AND ANTILOGSEntering an Existing Industry

Ref: Getting to Plan B, J. Mullins / R. Komisar

The uncertainty that surrounds most innovations and most new ventures can be

significantly mitigated by comparing the plan on the table to other businesses already in

existence.

UNCERTAINTY RULES

GOAL

Discovering or developing a business plan that will work…

THIS WON’T HAPPEN BY DUPLICATING THE MODELS ALREADY IN EXISTENCE.

IF THOSE ARE WORKING, WHO NEEDS YOU!

BUSINESS MODEL means the pattern of economic activity (cash flowing in and out of your business for various purposes and the timing thereof) that dictates whether or not you run out of cash and whether or not you deliver attractive PROFITS to your investors and yourself.

DON’T REINVENT THE WHEEL: ANALOGS

ANALOGS to your idea are successful predecessor companies that are worth mimicking in some way.

There are many analogs out there, portions of which can be borrowed or adapted to help you understand the economics and various other facets of your proposed business and its business model.

"IMITATION IS THE SINCEREST FORM OF FLATTERY?”

"IMITATION IS THE SINCEREST FORM OF FLATTERY?”

BE DIFFERENT: ANTILOGS

ANTILOGS are predecessor companies compared to which you explicitly choose

to do things differently, perhaps because some of what they did has been unsuccessful.

STARBUCKS USES ANALOGS / ANTILOGS

LEAPS OF FAITH (BETS)…

OOPS!!!

ASK THE RIGHT QUESTIONS: LEAPS OF FAITH

It is not what you know that will likely make you fail, it is “what you don’t know you don’t know”…

Identify the questions where analogs and antilogs don’t provide the answers.

The questions you cannot answer from historical precedent

lead you to your leaps of faith – beliefs you hold about the answers to your questions despite having no real evidence that these beliefs are actually true.

TEST – EXPERIMENT … Use your creativity

and find a way to prove or disprove your hypothesis before you waste too much of your time or your money.

TO TEST YOUR LEAPS OF FAITH YOU HAVE TO LEAP