Updates from IBD Shanghai – ARM Accelerator

Written by Harsh Thusu, Jennifer Hoss, Justin Wedell, Chris Roberts, and Amanda Eller

FTMBA students Harsh Thusu, Jennifer Hoss, Justin Wedell, Chris Roberts, and Amanda Eller traveled to Shanghai, China during summer 2017 to work with ARM Accelerator.

IBD team in the ARM Accelerator Shanghai office

The Internet of Things (IoT) involves embedding objects in our surroundings with sensors, which capture data and make decisions without the need for human intervention. IoT is poised to change the world, and our client, ARM, is playing a major role in the IoT revolution. ARM is a multinational semiconductor company that designs architecture for the chips that power our smartphones and tablets. Over the next 20 years, ARM expects to deliver 1 trillion chips for IoT devices.

Two years ago, ARM China launched the ARM Accelerator to support IoT startups. Our five-person IBD team traveled to Shanghai to work with ARM Accelerator, helping them develop a strategy to attract Silicon Valley startups, and crafting a plan to diversify their revenue sources.

Initial Research: Bringing Silicon Valley to China

IBD team members Jen, Harsh, and Chris presenting our recommendations to ARM leadership

Our initial challenge was to advise ARM Accelerator on a strategy for attracting U.S. startups. We hypothesized that U.S.-based startups would not want to travel to China for the program, and anticipated recommending a Silicon Valley office. To test our hypothesis, we spoke with founders from 12 different IoT startups in the U.C. Berkeley ecosystem.

We were surprised to learn that virtually all of the founders had either already spent time in China, or anticipated going in the near future. The primary reason for Chinese travel was to connect with manufacturers, but several startups were also interested in meeting Chinese investors and customers.

IBD students with ARM Accelerator leadership, including Allan Wu (center), President of ARM China and Haas MBA ‘96

We also discovered that most startups learn about accelerators through their networks. The ARM brand is strong, but few startups had heard of ARM’s accelerator, underscoring the need for business development efforts and localized marketing content in Silicon Valley.

Evaluating the Accelerator Business Model

In the weeks leading up to our trip, we expanded our focus. At two years old, ARM Accelerator is still a startup, and they wanted insights into how other accelerators achieve financial sustainability. We analyzed successful accelerators from around the world, and compiled preliminary recommendations to test in-country.

IBD team member Jen Hoss at the TechCode Shanghai Accelerator, testing an Augmented Reality windshield

 

Day of Arrival

On May 12, we flew to Shanghai. None of us had ever visited mainland China, and we were eager to meet the ARM Accelerator team and learn more about the Chinese startup ecosystem.

ARM Accelerator founder Andy Chen and head engineer Shi Lei gave us a warm welcome, and briefed us on an itinerary packed with interviews. Over the following days, we met with ARM Accelerator graduates, venture capital investors, other accelerators, and the local government. We even attended a presentation in which ARM Accelerator companies pitched their autonomous vehicle technologies to representatives from BMW.

IBD team members from left to right, Jen Hoss, Justin Wedell, Amanda Eller, Chris Roberts, and Harsh Thusu, meeting with bike-sharing startup MoBike.

Interview Highlights: TechCode, Shanghai government, and MoBike

TechCode is an accelerator and incubator started in China, with locations all over the world. Daphne Han provided insights into the benefits of the accelerator for TechCode’s corporate sponsor. She also gave us a tour of their co-working office space, and IBD team member Jen got to test a TechCode company’s “Smart Windshield,” which uses Augmented Reality to provide real-time information to drivers.

Another highlight was our meeting with Zhang Lan from the Shanghai government’s Development and Reform Committee. Mr. Lan shared fascinating insights about the government’s role in supporting entrepreneurship, and the incentives available to ARM Accelerator companies.

Mr. Lan then brought us to the MoBike headquarters. MoBike is a bike sharing startup that has taken

IBD team at the MoBike Shanghai office, with Shanghai government official Mr. Zhang Lan and our ARM colleague Allan Zhong

China by storm, with support from the government. 25 years ago, Shanghai was full of bicycles, but their replacement with motorcycles and cars has exacerbated pollution. MoBike is reversing the trend, and we were impressed by the number of Chinese taking advantage of MoBike. MoBikes can be parked anywhere, and locked or unlocked with a smartphone app; each morning the bikes pile up in front of office buildings, and by evening rows of MoBikes surround the metro stations.

Our ARM Accelerator hosts took us for a traditional Chinese business dinner, which meant plenty of baiju, or Chinese spirits

Eating our way across China

The team made the most of our free time by trying every dumpling we could find. We learned about the art of handpulled noodles, sampled Uigher-style barbecue, and tasted Schizuan Province’s spicy mala peppercorns.  We even contemplated opening a Berkeley franchise of China’s popular Yang’s Dumplings chain.

Between meals, we climbed the Great Wall, explored Beijing’s Forbidden City, and hiked the mountains surrounding Hangzhou’s famous West Lake.

And throughout our trip, we were greeted by local Haasies. Alan Wu, President of ARM China and Haas MBA ‘97 provided valuable feedback throughout our project and shared his visions for China’s technological future.

Making new friends over a Beijing-style hotpot dinner

And the Haas Shanghai Alumni group welcomed us with a happy hour, where we met two incoming classmates to the class of 2019.

After a successful three weeks in China, we are excited to continue following ARM Accelerator’s progress as they help build companies shaping the future of IoT.

Summer IBD Team Teaches 2 Week Entrepreneurial Course to Students in Harare, Zimbabwe

Written by Sampada Chavan, Kathryn Linarducci, Senthuran Raveendranathan, Yi Zhang, and Praveen Settipalli

The Berkeley Haas IBD team finally arrived in Harare, Zimbabwe on Sunday, July 2 after over 30 hours of travel time. After a quick shower break, we were taken to the ACT headquarters where we met the 24 brilliant students who we will be teaching over the next two weeks.

ACT is a non-profit entrepreneurship development program that aims to build an entrepreneurial ecosystem in Zimbabwe. It was launched in 2014 and has developed in collaboration with several prior Haas IBD teams. This year’s ACT classroom training has expanded to 3-weeks in length. In the 1st week, students learn the fundamentals of design thinking, identify opportunities in the market, and form teams to address the issues identified. In the 2nd week, students take a break from their own projects to participate in the inaugural corporate hackathon with ACT’s partner, Innscor, a parent company that owns well-known Zimbabwean consumer staples and durable products brands. Students will have the unique opportunity to present their innovative recommendations to Innscor executives. In the 3rd week, students will refocus on the own projects and learn core business skills such as marketing, leadership, strategy, and finance. They will make a final pitch of their project to the ACT Executive Team and local investors. Once students complete the training, they will be eligible for mentorship through ACT and potential seed funding for their own business ideas.

Back (L to R: IBD team -Praveen Settipalli, Sampada Chavan, Kate Linarducci, Yi Zhang, Sen Raveendranathan) Front ( L to R: ACT Program Coordinator Irene Chikumbo, ACT Founder Henri Lambert, LBS intern Zac Orlando)

In addition to the Berkeley IBD team, which consists of team lead Praveen Settipalli (EWMBA Class of 2016) and (EWMBA Class of 2018) Sampada Chavan, Sen Raveendranathan, Kate Linarducci, and Yi Zhang, this year’s ACT teaching team also includes London Business School MBA student Zac Orlando, and former Haas FTMBA IBD students Dan Fishman and Sebastian Amenabar, who are primarily responsible for teaching the third week of classes when the EWMBA IBD team heads back to California.

The IBD team prepared diligently for 7 weeks prior to arriving in Harare, refining the curriculum, creating lesson plans and teaching materials, building out the corporate hackathon, and recommending a strategy for ACT to expand.

On Day 1, we introduced the students to design thinking by redesigning a wallet with the customer in mind. First, students shared and explained the contents of their wallet. Next, each student team converged on a particular item of interest and dug deeper into why and how to design for that item. The teams created prototypes, gathered feedback from the end user and refined their product. The final product was far different than the wallet that they started with. One team found that many people carried receipts in their wallet in order to budget and reconcile their daily spending. Instead of creating a new wallet better suited for carrying receipts, their proposed solution to eliminate receipts with a budgeting tool instead.

We also challenged students to be creative with limited resources. With only $2 of seed capital and 2 hours, students were asked to go out in the field to create value. Judges awarded the ingenuity of the winning team, who spoke to customers at a high-end supermarket to identify an opportunity to charge for smart shopping services to busy shoppers. They did not even use the $2 they were given. Taph Machirori, 30, reflected, “the $2 challenge taught me not to limit myself. I don’t need to be confined with the resources I think I have. Think outside of the box.”

On Day 2, each student had one minute to present a need they see in the market today – these ranged from inefficiencies in the patient experience at hospitals and pharmacies to the lack of recycling in Zimbabwe. Students then voted on the presentation topics that interested them and teams were formed based on their voting preferences and leadership styles.

For the rest of the week, students learned design thinking through a combination of lectures and hands on experience working on their team project. The IBD team taught the students to diverge and converge as they framed and reframed the problem, tested their assumptions, brainstormed and narrowed down their ideas, and created their prototype.

Student teams went out into the field during each step of the process to observe and conduct interviews to validate their assumptions, redefine their “how might we” statement, present their proposal, and receive feedback on their prototype. The Haas IBD instructors shadowed and mentored student teams throughout the week.  Since the design thinking process is not a linear, often times teams were met with unexpected insights that led them to reconsider and pivot in a different direction.

Knowing when to pivot is an important lesson in design thinking and students experienced this first hand with the marshmallow exercise. Teams had 18 minutes to create the tallest free-standing structure possible using 1 meter of string, 1 meter of tape, 20 spaghettis, and 1 marshmallow. The marshmallow had to be at the top of the structure. The team that constructed the winning structure, at 20 inches, iterated several times with the placement of the marshmallow instead of waiting until the time was running out.

At the conclusion of the first week of classes, students expressed their excitement for what they had learned. Gilbert Kumusasa, 27, shared, “even at home, everyone has seen the change in the way I think about things. There’s no limit to anything we can do: be it at home, at work, at social settings. We can use this design thinking process to look at problems and come up with innovative solutions.”

After a long week of teaching and learning, the IBD/ACT team got a taste of Zimbabwean culture on our day off. We enjoyed a leisurely meal of sadza (Zimbabwean typical staple food made out of cornmeal) and stews, which are eaten with your hands. Lunch was so delicious and filling that we decided to walk it off at Domboshava, a granite hill just outside of Harare with ancient cave paintings and spectacular balance rocks.

 

IBD Hong Kong Blog

Written by Andy Kang, Donald Bullock, Brian Burke, Tulio Da Silveira, and Juan Norero

Day Zero

After a 15-hour flight, we’ve finally landed in Hong Kong! Despite being jetlagged, we’re pretty excited about the prospect of living in Asia and working with our client G-Hub, a tech startup. To celebrate, my IBD teammates Donald, Tulio, Brian and I (Willy, our team lead, hadn’t landed yet) had dinner at a Japanese-Brazilian restaurant. Knowing that we would be meeting our client for the first time in just a couple of hours, we called it a night.

Day One

We commuted to work the next morning taking the subway and walking through the busy streets of Hong Kong. Not used to the humidity and covered in sweat, we met Alan, the CEO, and the rest of the G-Hub team mostly consisting of local “Hongkongers.” After introducing us to each of the 10 or so employees that made up the G-Hub team, Alan gave us a quick tour of the small, minimalist, yet quaint open-space office before taking us to the conference room.

This is where he showed us his company’s products. We didn’t fully understand all the technical jargon being used, but we were excited to finally see G-Hub’s temperature and energy-monitoring solutions in person. The products looked amazing—seeing was believing. After hearing about the company’s vision and asking some questions, we had our first official in-country team meeting laying out our project plan and action items.

For lunch, Alan brought us to a wonton noodle soup restaurant, and we were blown away by how amazing the local cuisine was. With satisfied stomachs, we had a productive day revising our Day of Arrival presentation and starting the next phase of our project.

After work, the IBD team and I went to a local bar for happy hour, played some darts, and wrapped it all up with a nice Cantonese-style dinner with two of our classmates Fede and Marisol, who happened to be in the area.

Day Two and Three

After going through our Day of Arrival presentation and receiving valuable feedback from Alan and Nic, the founder of G-Hub, we met with Yannic and Tomny, the chief UI and UX designers, for a product demonstration. This was our first deep interaction with a product designer/programmer, and so we had many questions. Simplicity was the theme. According to Yannic, “you want to make your product as easy as possible for customers to use…you need to balance the many features you want to add with simplicity.”

Afterward, we sat down with Nic and got to hear him talk about his motivations for starting G-Hub, his other entrepreneurial ventures, where he thinks technology is going, and what the future of G-Hub looks like.

For the rest of the day, we dug deep into our MBA toolkit and developed a robust return on investment and customer lifetime value models to better understand the value customers derive from G-Hub’s solutions and prioritize different customer segments.

The epic day concluded at Nic’s place. Not only did we get an amazing view of the bay from his mansion-sized house, but he also served us really good cuts of meat and cheese while sharing his travel stories. With the Latin music fading away and unable to consume any more alcohol or food, we called an Uber and headed home.

Day Five

Today we were invited by the G-Hub team to a large family-style dim sum lunch. Chicken feet, shumai, roasted pork, and steamed pork buns went around the table as we talked about life outside of work and learned about Chinese culture.

For the evening, we met a friend that one of our Haas classmates Jason introduced us to. She and her friends brought us to a brightly-lit local restaurant/bar where we shared drinks with the locals while yelling “Gom bui,” which means cheers, at the top of our lungs. We then went to a more Western area called Lan Kwai Fong where the imbibing continued…

Day 15

After about ten days of work, we trekked to Bangkok led by our very own Donald. And it was love at first sight–the mix of street food, temple visits, and Thai massages was the break that we all needed. What happens in Bangkok stays in Bangkok.

Day 16

Today is a national holiday in Hong Kong, and so today we rode a boat around the Hong Kong harbor. A perfect little break right before our final presentation.

Day 18

I can’t believe it’s all over! Not only did our final presentation with our client go really well, but we all also experienced living in a different culture, worked with a startup, and became a family. IBD was a once-in-a-life-time experience. Excited about the project but a little bit homesick, we said our goodbyes and are headed back to Berkeley. Team IBD Hong Kong out.

Tackling the Youth Skills Gap in Uganda: An Update from Makerere University

Written By: Team Makerere, Hans Klinger, Elizabeth Foster, Matthew Hamilton, Jeannie Valkevich, and Carolyn Chuong

Our sweet ride while in Kampala that we affectionately call the “Mute-mobile” (our IBD team is creating the strategic plan for the Mutebile Center at Makerere University)

Our sweet ride while in Kampala that we affectionately call the “Mute-mobile” (our IBD team is creating the strategic plan for the Mutebile Center at Makerere University)

We arrived in Uganda around midnight, which meant we needed to wait an extra day to see the bright blue sky, rich red clay, and lush green foliage of East Africa. However, what we didn’t have to wait for were the bright smiles of the welcoming Ugandan people. Charles, one of our clients at Makerere University, was awaiting our arrival with a Berkeley baseball hat, personalized sign, decaled car, and a grin ear to ear. This would become standard during our first week in-country, when we would meet Makerere students, university professors, the Governor of the central Bank of Uganda, the Prime Minister, and many others.

Our team is working specifically with the Makerere University Private Sector Forum (PSF), which was established 11 years ago as a public-private partnership in the country’s largest and most prestigious university. The Forum’s mission is to bridge academia and the private sector to foster socioeconomic development throughout the country. It’s now launching a new center, for which our IBD team is creating the strategic plan, that will address the youth skills gap in Uganda.

Jeannie Valkevich demonstrating how to create a journey map

Jeannie Valkevich demonstrating how to create a journey map

Before arriving, and continuing into our first-week in-country, we’ve conducted over 50 interviews across what our client calls the ‘trinity’: Academia, the Public Sector, and the Private Sector. Part of the process was understanding the student perspective and, in particular, their pain points as they enter the workforce. To that end, we carried out a design thinking workshop for 23 students, led by our team’s former rockstar teacher (and timekeeper connoisseur) Jeannie. After a silly icebreaker that involved some pretty embarrassing dance moves on our end, we asked students to draw out their “journey maps.” Students mapped out the high points when they felt encouraged and confident about the career development process, as well as low points when they felt confused or discouraged. Given that the students were overflowing with ideas Jeannie had her work cut out facilitating the group discussion.

Matt Hamilton showing off his flawless dance moves during the icebreaker

Matt Hamilton showing off his flawless dance moves during the icebreaker

The workshop really started to get rolling after the break. Four groups of students, each paired with one IBD team member, began to ideate on potential programming for the new Center. After diverging, we encouraged students to converge around an agreed upon set of programs. The groups came up with a number of creative ideas–everything from a student-run farm, to a marketplace to share student ideas with the private sector, to a cross-faculty idea sharing platform. The groups then presented their ideas and recommendations (Shark Tank style) to PSF leadership. And they weren’t shy about asking questions or challenging each others’ proposed programs. As we closed out the session, we had to cut off half-a-dozen raised hands and ask them to keep the conversation going after the workshop. It was pretty inspiring to see how much energy the students had at the end of the three hours. One of the PSF staff members Patrick remarked afterward, “Our students often feel like their voices don’t matter–they were so happy to have their perspective considered.”

Hans Klinger working with the students as they begin to converge on a program idea for the center

Hans Klinger working with the students as they begin to converge on a program idea for the center

After wrapping up the design workshop, we headed over to the Parliament of Uganda to meet with the Prime Minister, Dr. Ruhakana Rugunda, who just happens to be a Cal Alum. Dr. Rugunda has been a staunch supporter of this new center at Makerere University from the start. Before getting down to business, he was eager to hear which states in the U.S. we hailed from. He was back on campus just a few years ago for a class reunion, which I’m sure made some of his classmates feel unaccomplished. Apparently, Berkeley hasn’t changed much since 1978. He also mentioned there was an East Africa Berkeley reunion in Kampala just a few months ago–pretty cool knowing there’s a Cal Bears community in this part of the world. Before heading out, we gave Dr. Rugunda a Cal pennant as a gift, which we’re sure certain he’ll hang behind his desk, right next to the flag of Uganda.

Left to right: Jeannie Valkevich, Matt Hamilton, Khamisi Musanje (Makerere University), Dr. Ruhakana Rugunda (Prime Minister of Uganda), Carolyn Chuong, Beth Foster, and Hans Klinger

Left to right: Jeannie Valkevich, Matt Hamilton, Khamisi Musanje (Makerere University), Dr. Ruhakana Rugunda (Prime Minister of Uganda), Carolyn Chuong, Beth Foster, and Hans Klinger

More to come from Kampala soon!

2017 Full-Time IBD Clients

If you have been following our IBD newsletter over the last few months, you may have noticed that we have shared a lot of information about the IBD course, the processes we go through to select IBD Team Leads, and how we assign Team Members to projects.  So far we have introduced you to our talented IBD Team Leads and two of our IBD Faculty Mentors.  We are very proud of the IBD course, including our hard-working MBA faculty and students and what they bring to the program, but we haven’t yet shared with you information about one of the most important aspects of the IBD program: our clients.  Without our valuable clients, the IBD course and the opportunities it affords to Berkeley-Haas MBA students wouldn’t exist.

The first IBD program took place in 1992 with 15 participating MBA students.  Since then IBD has worked with over 450 clients in 89 countries.  Clients are introduced to IBD through a myriad of channels.  IBD Executive Director Kristi Raube and Director of Business Development David Richardson spend countless hours talking with prospective IBD clients and traveling to far-flung destinations to pitch the IBD experience.  Berkeley-Haas and UC Berkeley alumni are also a huge part of the process of IBD project development.  They act as local ambassadors for our work, helping IBD staff develop and refine a variety of challenging consulting projects worldwide.

Over the many years of its existence, the IBD program has partnered with governments, NGOs, 
nonprofits, social enterprises, entrepreneurs, and companies of all sizes and industries.  This year, for example, the Spring 2017 IBD program includes eleven for-profit clients and five nonprofit clients in eleven different industries.  To conclude work on their respective IBD projects, our MBA students will end up traveling to Asia, Africa, Europe, and South America.

We are currently partnering with three returning clients from the Spring 2016 IBD program.  Nine of our Spring 2017 IBD projects boast a valuable Berkeley-Haas or UC Berkeley alumni connection; four of these have an alum currently working in the organization.  No matter how this year’s 16 remarkable client organizations came to be a part of the Spring 2017 IBD course, we are honored and grateful to work with all of them.