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REPORT KUALA LUMPUR VENTURE CAPITAL

The objective of Kuala Lumpur International Venture Capital Symposium 2011, held in Kuala Lumpur on 11th and 12th of October 2011, was to promote local and foreign capitalists to invest in high technology industries. Many leading figures and experts in venture capital, entrepreneurs, business people and government leaders were invited to put light on the importance of venture capital industries for a better economic.

This report focuses the talk delivered by Dr. Rob Adams; who is currently associated in the faculty of the MBA program at University of Texas, Austin. His area of interest is entrepreneurship and is considered an authority on the subject. He is also the author of the book titled: “If You Build It Will They Come”, which he also presented in this symposium.

During his presentation, Dr. Adams explained how market validation is crucial to a successful venture. To illustrate this he presented two case studies. The first one was about Motorola’s project called Iridium while the second case study’s subject was Apple’s iPod. Even though the technology that Iridium offered was far more sophisticated and ahead of its time than iPod; nevertheless, Iridium failed because of poor marketing strategy and false assumptions about their tentative customers. iPod, on the other hand, was not a technological breakthrough rather a design breakthrough and was highly criticized and considered a flop idea. However, it targeted the right customers with the right strategy and went for a narrower market than the wider one like Iridium. Unlike Iridium, which went into bankruptcy, iPod was a big success which is evident from its stock market value. These case studies made the distinction between doing a lot of work and not gaining anything, and doing little work but doing it right.

According to Dr. Adams the most important job as an entrepreneur is to figure out the market problem through market validation. Market validation is a process whereby research is done on evaluation of the market for a product even before the product is built. Dr. Adams explained that market validation have three steps which are: ready, aim, and fire. Ready, involves a relatively quick two day assessment of the big picture opportunity you looking at. The next step is aim, a deep dive into the target market using primary research techniques to develop your product according to the customer’s need and also to know your competition. Fire is the last step, where a culture inside a company is organized to make it market oriented. Fire is basically the art of converting market data into product features and getting a product out the door quickly; it is like the conclusion of the first two steps.

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