The Past Present and Future of ENTREPRENEURSHIP EDUCATION

The Past, Present and Future of ENTREPRENEURSHIP EDUCATION January 10, 2016 Bill Aulet Managing Director, Martin Trust Center for MIT Entrepreneurship

2 Purpose of this Presentation We are all entrepreneurship educators The world needs us more than ever before We can do better How we can up our game

3 What Is Entrepreneurship?

Definition of Innovation = Invention*Commercialization

5 What Is Entrepreneurship? Innovation * Technology essentials Entrepreneurship * Business essentials * Knowledge of science & engineering * Skills to develop * Skills to build * Venture engineering * Knowledge to frame decisions * Skills to start * Skills to grow

6 Past 1. Practitioner or Academic 2. Little differentiation between types of entrepreneurship 3. Demand was relatively small & field was seen as a niche (orphan? ) 4. Not perceived as a worthy academic pursuit 5. Can it be taught? Should it be taught?

7 Present Being an entrepreneur is the new “cool” thing. As a result, demand for entrepreneurship is blowing up!

8 Present 1. Demand sky rockets 2. Overflows from academic institutions 3. Gap filled predominantly with practitioners 4. Shortage of academics 5. Coming crisis in entrepreneurship education (Sept 2013)

9 Most Fundamental Questions for Entrepreneurship Education 1. Why 2. Can 3. How

10 Crisis in entrepreneurial education Demand Storytellin g Supply of quality Time

11 Importance of Spirit Creative Irreverence

12 Successful Entrepreneurship Spirit + Skills

13 Successful Entrepreneurship = + Spirit of a pirate Skills of a Navy Seal

14 Future 1. Serious academic and professional field 2. Rigorous but practical 3. New type of product a) Segmentation of market b) Dynamic system to adjust c) Value-based as opposed to Credentialcentric d) JIT delivery model 4. Need to differentiate from private models

15 Process Segmentation Personas • Start with market segmentation to identify different types of students in classes today • Real representative examples (MIT) • Significant shift in demand Needs • Identify needs by persona • Note common areas as well Design • Modular for flexibility & customization, as well as rigor & quality • What is our current set of offerings? Delivery Action • Multiple mechanisms for delivery • Giving options to customers (students) • Research best practices • Identify gaps and areas of weakness Remediation plans developed & implemented

16 Example: Target Customer Definition & Segmentation for MIT • MIT students • Undergraduate (UG) • Graduate Student – MBAs (MBA) • Graduate Student – other Masters or Ph. D (Grad) • Post Doctoral Student* (Post. Doc) • Any of the five schools at MIT • We will further distinguish between all of these categories of students by their interests using the persona methodology • Again, we focus on IDE not SME entrepreneurship

17 Market Segmentation: Personas Exploratory/ Curious Ready-to-Go Entrepreneurship Amplifier Corporate Entrepreneur Description of Persona Interested but has no driving idea or team; is in exploratory mode; starts here but will migrate to another state or out of entrepreneurship Chomping at the bit & just wants help to get going – has idea, tech &/or core of team Interested in understanding enough to successfully promote in their org (e. g. , gov, corp, family business) but is not the entrepreneur Wants to be an entrepreneur in a large organization Needs at a High Level Need info on career choice, soft skills, ideation, team building and then some first-hand experience to get a sense of the process Wants specific skills and lots of them, very quickly; less on the upfront things emphasized for the “curious” persona; wants the deep, immersive experience of being an entrepreneur on her idea/technology Interested in all steps in some depth but even more interested in strategy, policy and economic impact of the field. Will want to have the experience of being an entrepreneur so can empathize but more interested in the process than the idea or team Wants depth in executing the process so comfortable doing it again but less tied to the idea or team; more interested in organizational issues and environment issues

Needs Assessment: Business Essentials* Core Entrepreneurship Specific Skills : “Nucleation” (Phase 1) Career Choice Ideation Team Building 1 “Product Definition” “Venture Development” (Phase 2) (Phase 3) Key Founders’ Decisions Sector Deep Dives Business Model & Pricing HR Basics of Finance Product Design Scaling Manufacturing Leadership & Culture Primary Market Research Legal Product Development Scaling: Process & Infrastructure Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Defining & Refining Product Market Fit Building Eship Systems Essential Skills for Entrepreneurs (Semi-Customized): Soft Skills Sales Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: * - An open framework built for constant refinement Negotiations 18

Curious Entrepreneur Specific Needs Core Entrepreneurship Specific Skills : “Nucleation” (Phase 1) Career Choice Ideation Team Building 1 “Product Definition” “Venture Development” (Phase 2) (Phase 3) Key Founders’ Decisions Sector Deep Dives Business Model & Pricing HR Basics of Finance Product Design Scaling Manufacturing Leadership & Culture Primary Market Research Legal Product Development Scaling: Process & Infrastructure Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Defining & Refining Product Market Fit Building Eship Systems Essential Skills for Entrepreneurs (Semi-Customized): Soft Skills Sales Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: Negotiations 19

Ready to Go Entrepreneur 20 Core Entrepreneurship Specific Skills : “Nucleation” (Phase 1) Career Choice Ideation Team Building 1 “Product Definition” “Venture Development” (Phase 2) (Phase 3) Key Founders’ Decisions Sector Deep Dives Business Model & Pricing HR Basics of Finance Product Design Scaling Manufacturing Leadership & Culture Primary Market Research Legal Product Development Scaling: Process & Infrastructure Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Defining & Refining Product Market Fit Building Eship Systems Essential Skills for Entrepreneurs (Semi-Customized): Soft Skills Sales Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: Negotiations

Corporate Entrepreneur 21 Core Entrepreneurship Specific Skills : “Nucleation” (Phase 1) Career Choice Ideation Team Building 1 “Product Definition” “Venture Development” (Phase 2) (Phase 3) Key Founders’ Decisions Sector Deep Dives Business Model & Pricing HR Basics of Finance Product Design Scaling Manufacturing Leadership & Culture Primary Market Research Legal Product Development Scaling: Process & Infrastructure Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Defining & Refining Product Market Fit Building Eship Systems Essential Skills for Entrepreneurs (Semi-Customized): Soft Skills Sales Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: Negotiations

Entrepreneurship Amplifier 22 Core Entrepreneurship Specific Skills : “Nucleation” (Phase 1) Career Choice Ideation Team Building 1 “Product Definition” “Venture Development” (Phase 2) (Phase 3) Key Founders’ Decisions Sector Deep Dives Business Model & Pricing HR Basics of Finance Product Design Scaling Manufacturing Leadership & Culture Primary Market Research Legal Product Development Scaling: Process & Infrastructure Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Defining & Refining Product Market Fit Building Eship Systems Essential Skills for Entrepreneurs (Semi-Customized): Soft Skills Sales Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: Negotiations

Fulfillment Mechanisms 1. Residential Classes (Full Semester, Half Semester, Short Classes) 2. Online Classes (e. g. , ed. X/MITx/Open. Course. Ware) 3. Lecture Series and/or Workshops (“Snack. Packs”) 4. Extra or Co-Curricular Clubs/Activities (e. g. , Competitions, Hackathons) 5. Resources Page (Supplementary materials, e. g. , blog posts, podcasts, video or other materials) 6. Advisory Network (Specialists, Coaches, Mentors)

Offerings Mapping to Needs 24 Ideation Core Entrepreneurship Specific Skills : Classes: • 6. 933: Founders’ Journey (1 class) • New Enterprises (2 classes) “Nucleation” “Product 15. 390: Definition” • Also included in 2. 75: Medical Device (Phase 1) (Phase 2) Design, 3. 042: Materials Project Lab, 2. 009: Prod Engineering Process, Key Founders’ Career ESD. 051 J: Eng Innovation & Design Defining & Refining Ideation Decisions • IAP class: “Figuring Out the Next Big Thing” Choice Product Market IAP. 123 Basics of ed. X: Fit • Watch this space … Finance Team Extra-Curricular & Clubs: Building 1 • Sloan Design Club Primary Market • Hackathons (e. g MIT Hacking. Legal Medicine) • Research $100 K Brainstorming sessions Snack. Pacs • t=0 Brainstorming Sessions Customer Strategy • Lecture series (at least every 2 months) Acquisition Online/Library: • Videos (IDEO, Improv, plus others) • Tina Seelig online class • Add (Semi-Customized): books Essential Skills for Entrepreneurs Professional Advisor Network Contacts • Main contact: Sam Breen • Specialist: Elaine Chen* Soft • Gordon Contact: Blade Kotelly Sales Skills • VMS Contact: Roman Lubensky “Venture Development” (Phase 3) Sector Deep Dives Business Model & Pricing HR Product Design Scaling Manufacturing Leadership & Culture Product Development Scaling: Process & Infrastructure Work-Life Balance Product Management Financing Corporate Entreprnrship Building Eship Systems Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: Negotiations

25 Most Fundamental Questions for Entrepreneurship Education 1. Why 2. Can 3. How

26

27 How should entrepreneurship be taught? 1. Open (common language & best tools) 2. Systems Approach (integrated & prescriptive)

Student Personas “Ready to Go” Chris had his business idea even before the school year began and the drive to start his business ASAP. Chris is already meeting other students so he can find his cofounder, securing mentors, and building his network. He is taking the course for some guidance, but he would have started his business even without the class. 28

Comprehensive Curriculum Tile Approach Core Entrepreneurship Specific Skills : “Nucleation” (Phase 1) Career Choice Ideation Team Building 1 “Product Definition” “Venture Development” (Phase 2) (Phase 3) Key Founders’ Decisions Sector Deep Dives Business Model & Pricing HR Basics of Finance Product Design Scaling Manufacturing Leadership & Culture Primary Market Research Legal Product Development Scaling: Process & Infrastructure Work-Life Balance Strategy Customer Acquisition Product Management Financing Corporate Entreprnrship Defining & Refining Product Market Fit Building Eship Systems Essential Skills for Entrepreneurs (Semi-Customized): Soft Skills Sales Communications Dealing with Adversity Project Management Corporate Strategy General Skills Valuable to Entrepreneurs: * - An open framework built for constant refinement Negotiations 29

How 24 Steps Was Put Together 30

31

32

33

34

35

36

37

Action • Entrepreneurship Educators Forum

The mission: Improve entrepreneurship education, and make it more rigorous and professional How? § An open-source, collaborative platform for curated high quality entrepreneurship teaching materials § A community to discuss challenges, share best practices and drive innovation in entrepreneurship education § Guidance and support from an advisory council – leaders of entrepreneurship education in top institutions What? § An online platform (MVP launched @ www. eef. io) § The MIT entrepreneurship programming roadmap as a base to get going § A series of webinars focusing on the “tiles” in the framework, recorded and available on the website – often including syllabi and other teaching materials § All free and open to all

40 Michal Gilon-Yanai

41 Future 1. Serious academic and professional field 2. Rigorous but practical 3. New type of product a) Segmentation of market b) Dynamic system to adjust c) Value-based as opposed to Credentialcentric d) JIT delivery model 4. Need to differentiate from private models

42 What Differentiates Us? We help create entrepreneurs not companies.

43 What We Are Not … o Economic development organizations o It is a by product but not the focus o This makes us unique in an entrepreneurial ecosystem and we should be proud and steadfast in our commitment to our mission and role

44 Follow Up • Workshop today from 3: 15 to 4: 45 pm in Grand Ballroom • www. EEF. io • aulet@mit. edu

45 More info The book Progress Dashboard www. disciplinedentrepreneurship. com www. detoolbox. com

Free* Online Courses 46

Other Relevant Material I

Other Relevant Material II

50 End Questions?

Appendices

Story of Reo, Rita, Natalie, Chuan & Gavin Start IAP Jan 2015 15. 390 Feb – May 2015 GFSA June – Aug 2015 Sumo Logic IDEO BCG GSD Sept – Jan 2015 TA 6. 93 3 ive l O alt He h Powder. Wave tiv n te In Hacking Arts

53 Key Take Aways • Entrepreneurship can be taught and it is effectively with a good process • The students appreciate there is value in a rigorous/disciplined process for entrepreneurship – it is not just magic and mentorship • Entrepreneurs and companies evolve over time in a Darwinian manner – fluid teams are essential to optimize the learning process (as well as success) By the way, note the diversity in the teams!

Designing Team Building Check Points on the Entrepreneurship Education Ramp Key Points to Form/Reform Team: V 1, V 2, V 3, V 4, … e Escap ! ity Veloc 15. 390 Inspiration, Idea, Technology Validation Classroom Extra-Curricular Accelerator