Date post: | 19-Feb-2017 |
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Technology |
Upload: | john-lilly |
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Today
1. OS1 Recap & Themes 2. OS2 Intro 3. Mozilla OS2: Competing Asymmetrically 4. OS2 Scaling and Resourcing 5. Prep for Thursday
Class Structure: Organizational Scale
Org Scale (employees)
User Scale (B2C users)
Customer Scale (B2B)
Business Scale (rev)
OS1: Family 1s 10,000s 0 <$10M
OS2: Tribe 10s 100,000s 1s 10M+
O3: Village 100s 1,000,000s 10s 100M+
OS4: City 1,000s 10,000,000s 100s $1B+
OS5: Nation 10,000s 100,000,00+ 1,000+ $5B+
OS1: The Household
1. Identify a non-obvious market opportunity where you have a unique advantage and/or approach.
2. Building a product with strong product/market fit
OS2: The Tribe
Get to scale:
1. Create your plan; execute it; learn from it; rethink it; build market share.
2. Adjust your product-market fit as you learn.
3. Address any competition by moving faster to market share.
OS2: Becoming a Tribe
1. A bigger team to scale, including new functions:- a bigger team to learn and build
- marketing/PR
- customer service, sales (for enterprise)
- business development
2. Agile development and technology
3. Business operations (expenses, office space etc.) to let the team focus on what matters
4. The right financing and capital allocation to allow it
By the end of 2004, Mozilla had built Firefox 1.0
Breakthrough product - fast - popup blocking - tabbed browsing - integrated search - customizable
Product Market Fit: Why?
Key feature: popup blocking
Sustainable feature: tabbed browsing
Trigger: security
The core insight: Mozilla was the community.
So the key was to let the community see themselves in Mozilla.
Move ahead 8 months to June 2005 when I got there
Launch worked - 10M downloads first 30 days
Growth was strong; financials strong
Clear product-market fit
15 people in the organization
Critical Decisions in 2005
1. Hiring & compensation - winning & losing
2. Grow as distributed organization
3. Always treat community as insiders
4. Ignore enterprise, & everything else other than normal humans
5. Always hold mission as top goal
Timeline & Headcount Growth
2005 Firefox 1.5Started MoCo
2006 Firefox 2.0
2007 No Firefox major releasesStarted Mozilla China, Labs
2008 Firefox 3.0, spun out ThunderbirdStarted Fennec, grew labs
2009 Firefox 3.5; Thunderbird 3.0; Fennec on MaemoServices, video, developer tools, more
Total Headcount at Year-end
2005
2006
2007
2008
2009
2010
2011
0 80 160 240 320 400
406
341
258
196
132
85
40
+113%
+32%
+48%
+55%
+32%
+19%prop
osed 2010 Firefox 3.6, 3.7; Fennec on WinMo, Android?
Weave, Jetpack, reinvigorated+integrated Firebug
2011 Firefox 4 Desktop & Mobile More services, identity?
Move ahead another year to July 2006
Market share > 10% (~25M DAU, ~75M MAU)
Product-market fit extremely clear (not viral!)
Organization now ~30 people
With PMF, you start to see new issues
Organizational Overview• Scaling still an issue for everyone
• EA, “chief of staff,” project manager??
• Must get serious about VP operations & GC
• Actively looking for 2 engineering managers, add’l product managers
• Low key looking for VP marketing
Firefox High Order Bits
• Where will Firefox be at the end of 2006?
• What’s a reasonable goal for 2006? 2007?
• 01/06 we said 20% market share
• What can and should we do to affect marketshare numbers? What are we doing to increase it today?
Firefox Context (1)• About 13% worldwide marketshare
• varies significantly by country and group
• 25MM active users on a given day
• Growth in the US appears to have slowed?
• Continuing to work on data and analysis
Firefox Context (2)• Initial Disruption Period of Fx 1.0 diminishing
• IE 7 and Safari on Windows
• iTunes has been disruptive; might an iTunes- focused Safari be the next disruptive event?
• What do we do to maintain momentum / motivate our community?
Google’s Context• Has realized that the browser is critical to them
• can’t allow MS to have a choke-hold on their customers
• Current browser strategy: support leading alternative browser (Firefox)
• High level question: is this the correct browser strategy?
Google Issues (1)• Browser is critical but “destiny not in their own
hands”
• Fx growth at a marketshare number that is too low for safety
• Not clear that they or we have a plan to address
• increasing Fx market share or
• arrival of IE7
Google Issues (2)
• Webkit/Safari on Windows is coming
• Replay of the Unix wars?
• believe anything > IE & 1 other browser target for web developers will fail, hurting Google
• Apple pushing Webkit (faster, smaller, accessible)
Google Issues (3)• 80%IE, 20% Fx not enough, but hopeful
• 80% IE, 10% Fx. 10% Safari is a win for MS
• 80% IE, 20% Safari is bad for Google
• If Google believes the latter will happen, then it must create its own browser
• Hopes that some “convergence” between webkit and Fx is possible (rationale voices understand the difficulties)
Critical Decisions Summer 2006
1. Accelerate product releases (Fx2, Fx3), and stay the course with Gecko vs Webkit
2. Aggressively invest in more localizations, global reach
3. Keep building community, keep treating them like insiders, embrace all
2 years ago...
~15 employees, no MoCo, 2 people in MozJP, 2 in MozEU
~15 million users
$15 million in the bank
working on Firefox & Thunderbird 1.0.6 (& 1.0.7!)
Now...
plus approximately 25 interns in US, China & Japan!
Product & Marketing
EngineeringPlatform & Firefox
G & A
60
100
1000
Seth SpitzerDeveloper
Mozilla CorporationFirefox Development Team
DailyContributors
Contributors
1000
10,000
Mozilla CorporationFirefox Development Team
DailyContributors
Contributors
Nightly testers
Issues on the Horizon (but for OS3, not for OS2)
1. Chrome
2. Farmville (no, seriously)
3. But mostly: Mobile
OS2: Scaling Consumer Products
• Growth through Value
• Virality
• Word of Mouth
• Repeat Use (vs. churn)
OS2: Finding Growth through Value
• You’ve found product-market fit (organic or inbound usage)… with which segments?
• Not — nice — want — need
• Options once you have found where the product-market fit is:
• Improve product market fit for “nice” groups
• Take full advantage of want/need groups
• Optimize growth at “nice” level
OS2: Scaling Consumer Products
• Growth through Value
• Virality
• Word of Mouth
• Repeat Use (vs. churn)
• Growth through Awareness
• SEO and SEM
• Partnerships
• Facebook, LinkedIn
• Incentives
OS2: Scaling Enterprise Products
• The decision-maker growth hypothesis
• Beta customers
• Beta customers to validate value hypothesis, identify needs
• Will confirm or refute your sales decision-maker hypothesis
• Successful beta customers become “lighthouse” customers
• Build awareness at low cost
• Trade Marketing: Gartner and Forrester
• Pitch reporters and bloggers.
• Consumer-style bottoms-up approaches
Resourcing Execution
Your operational decisions should fit into two categories:1. Direct, leveraged investment in the scaling goal2. Keeping the scaling team focused by removing distractions
Resourcing Scaling: Development and Technology
• Agility (speed and flexibility) is the key target
• Optimize for speed of pivoting
• Development process is as important as the tech
• Expect to accumulate technical debt
• Almost certainly need to grow the technology team
Resourcing Scaling: Learning
• Data and Dashboards
• PR/MarComm
• For Enterprise:
• Customer Service
• Sales (not sales manager)
• Business Development
Resourcing Scaling: Recruiting
• You will have to reach beyond immediate network
• All of your recruiting will be outbound
• Hire a recruiting lead who can do this
• Full-time, attracting cofounder-equivalents
• Set up a simple, modestly rigorous hiring process
• Reference checking
• Five interviews per candidate
• Establish a talent brand, cheaply
• Engineering should contribute to open source
• MarComm should land speaking engagements
Resourcing: Protecting the scaling team
• Essential: generalists who can allow the founders and scaling team to concentrate on scaling
• Minimum team for essential but distracting needs:
• Customer Service and Business Development (for consumer companies)
• Security
• Your workspace
• Travel and expense policy, accounting, legal, finance
• Office manager, utilities, vendor relationships, food
• IT and productivity technology
Next 2 weeks (OS2)
10/8: Jen Pahlka, Code for America
10/13: Mariam Naficy, Minted
10/15: Shishir Mehrotra, new project; former YouTube