GIt was the kind of phone call a marketer can only dream about.
Back in 1994, Hal Josephson found himself chatting with a Silicon Valley public relations firm. Motorola had just given the firm $3.7 million to create an event. Would Hal like to produce it?
Those kinds of offers “don’t really happen anymore – obviously,” Josephson told an Alberta New Media/Industry Canada presentation recently in Edmonton.
Josephson is CEO of MediaSense, a San Francisco-based strategic marketing and international business development firm.
He’s been involved as a principal in many startups and has taken on key roles for major industry players. His credentials include experience in teleconferencing, communications, technology licensing, digital content development and ICT event production. Some of his clients include AT&T Motorola, IBM, Intel and 3DO.
Josephson provided an insight into Silicon Valley and what changes are coming, and gave tips on how Edmonton companies can learn about alliances, partnerships and business development strategies from his own experience and those in Silicon Valley.
Setting the scene, he described the state of San Francisco and Silicon Valley during the dot-com boom.
“A lot of kids were walking around with stock options – ‘funny money’ – offering $100-500k US over asking price. It was a frenzy,” he recalled.
“And during those times, anyone that had a half-baked idea could get funding and people were often successful in spite of themselves. Eventually, the Internet bubble burst.
“There are (now) For Rent signs on each corner. Places that rented for $2,500 are now going for $1,500-$1,800 — and try to get a tenant that has a credit rating.”
But Josephson sees this changing, and predicts a shift from purely Internet plays to biotechnology.
“Instead of hiring business development people, they’re hiring engineers — looking for (an) engineering breakthrough instead of barbecue.com.
“Business development was about creating alliances and partnerships. Now, it’s about producing sales and revenues.”
He knows that business today is complex, and true synergy – personal relationships, partnerships and alliances — is needed in order to compete and survive.
“The Power of Two magnifies exponentially when business partners effectively identify and leverage new opportunity.”
Fools of the boom thought it was sufficient to scratch each other’s back in an alliance — put your links on my site and I’ll do the same. But it got more complicated than that, said Josephson.
To have an effective joint venture, it’s imperative to know who will make the decision, who’ll run the show and who will ultimately be responsible, he advised.
Another major consideration often ignored, says Josephson, is (corporate) cultural integration. Make sure the people you’re working with are on the same wavelength. Companies sometimes need to determine if the partnership is necessary, if it makes sense, if it provides value or if it is a detriment to the organization.
Josephson stressed that before looking for partners, you should look within your own organization.
With budgets cut and funding more scarce, clients are being a little more choosy, he said. They want to know how your solution will solve their problem: Do they really need it or is it just a “wow” thing?
They want to know what’s the return on investment and how long it will take to be profitable.
On the issue of venture capital, Josephson said it’s imperative to:
* Have a well thought-out strategy. You need to plan your corporate activities, such as how your team will be deployed, and set timelines for completion of projects.
* Master the art of networking and make yourself (and your company) known. Deals do get done at parties.
* Practise evangelism — a term coined by Apple, the practice of getting the word out of who you are.
* Practise professional relationship building.
* Choose your public-relations team carefully. Make sure they are on your wavelength.
A final question from the floor concerned content.
“Content is king,” Josephson replied. “The pendulum keeps swinging back and forth . . . Internet two years ago, and CD-ROM seven years ago. Content will come back (again) and will become king.
“You can make a lot of money creating content. Look at movie studios – 90 per cent don’t make money at the box office, it’s the aftermarket.
“They own that content forever. You can license those rights.”
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