Professor Serguei Netessine (@snetesin) joined us to discuss his book “The Risk Driven Business Model” (co-written with Karan Girotra). In the discussion, he explained the theme of the book in coming up with the four key questions that will define any company, with examples of companies not just from the US but also in Asia. Finally, he also talked about his role as a business school professor in guiding the students and alumni from INSEAD Business School, Singapore and an angel investor within the various ecosystems from US to Singapore with interesting companies such as RedMart, TabSquare and EditSuits, which are forming the successful entrepreneurial footprint in Southeast Asia and beyond.
Here are the interesting show notes and links for our discussion:
- The story of Serguei Netessine
- What’s his role in INSEAD Business School as the Timken Chaired Professor of Global Technology and Innovation and the research director of the INSEAD-Wharton alliance?
- What’s his research been focusing on and what are the courses which he has been teaching in INSEAD for entrepreneurs and corporations?
- A discussion on the book: “The Risk Driven Business Model”
- What is the central thesis of the book?
- What are the key choices for entrepreneurs & executives to make in designing the business models which will either increase or reduce two characteristics of risk: information risk & incentive alignment risk?
- What are the four questions that will define a company?
- The What Strategy: What the business is about & what its attitudes are on the question of risk.
- The When strategy: identifying the organization’s key decisions & understand when information adequate to make them becomes available at acceptably low risk.
- The Who strategy: changing the business model to empower a better-informed decision maker. Selecting the decision maker who suffers the lowest consequences and stands to benefit most from the decision.
- The Why strategy: resolving incentive misalignments by making changes to your business models – change revenue & profit stream, synchronize the differing time horizons imposed by the parties in respective business models, cover situations in which the uncertainty is high where the best solution is pursue a strategy of vertical integration.
- Interesting examples discussed on the book in the podcast: Dell, Netafim, Blockbuster and Asian companies: Xiaomi and Alibaba in China
- The INSEAD Alumni and Angel Investing
- What are the type of companies which he invest in?
- A discussion on the INSEAD alumni who have built successful companies (PropertyGuru, Transferwise) and the emergence of the “INSEAD mafia” in Singapore.
- His current portfolio of companies.
Producer’s disclosure & disclaimer: Bernard is currently an entrepreneur in residence in INSEAD Business School and is also working for Singapore Post Ltd which is invested by Alibaba. The opinions and views presented in this podcast are strictly his own and does not represent the organisations which he works for.