Ric Fulop, founder of A123 System, gave us a talk in our Managing Innovation class. A123 Systems is the Boston based startup (MIT spinoff) that everybody talks about. It develops next generation Lithioum-Ion batteries (high power and fast recharging),
I already had the opportunity to talk to Ric multiple times earlier this year.
Interestingly he said:
- "If you are in a mature market, you cannot make any mistake with your customers... they will never talk to you again. But if you create a market and the customer wants your product very badly, then you are allowed to make mistakes or be late"
He also discussed about competitive advantages of startups. He said that in a startup you need:
- Either low cost or proprietary technology: With one of both you can knock at the door of somebody.
- Customer integration (supply chain): this is something you develop later (you cannot start there).
- System locking: it is critical for long term sustainability
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