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Entrepreneurial Mindset Case Study: 1: Sec 2 Group 9

Veridicom was launched in 1997 as a venture by Lucent to develop affordable biometric devices. However, the company struggled due to an inability to understand customer wants, price sensitivity, and conflicts between management. A new CEO was appointed who shifted the strategy to focus on solutions and a customer-centric approach rather than just the product. As an investor, it would not have been advisable to initially invest in Veridicom due to a lack of market research and understanding of demand and the financial viability of affordable devices.

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Rahul Basu
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82 views7 pages

Entrepreneurial Mindset Case Study: 1: Sec 2 Group 9

Veridicom was launched in 1997 as a venture by Lucent to develop affordable biometric devices. However, the company struggled due to an inability to understand customer wants, price sensitivity, and conflicts between management. A new CEO was appointed who shifted the strategy to focus on solutions and a customer-centric approach rather than just the product. As an investor, it would not have been advisable to initially invest in Veridicom due to a lack of market research and understanding of demand and the financial viability of affordable devices.

Uploaded by

Rahul Basu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Entrepreneurial Mindset

Case Study: 1

SEC 2 GROUP 9
INTRODUCTION

● Lucent had its initial public offering in the year 1996 after the company recruited
Steve Socolof from a management consulting firm along with Booz Allen and
Hamilton to develop a venture incubator for Bell Labs
● Post assessment by team Lanza and secured funding, Verdicom was launched in
California, 1997 with Tom Rowley as CEO.
● Strategies:

- Affordable cost biometric devices

- End market pull


THE ROAD - An End and A Beginning
CONFLICTS NEW STRATEGY

● ● New CEO appointed: Mike D’Amour


Inability to find out what the market
● Shift to a solutions company
wants
● ● Funding
Price sensitivity
● The dynamic between the CEO and
investor was a Disaster
● Super fragile chips
1. If you were an investor, would you invest in Veridicom as the
first investors? Why or why not?

● No, as the first investors I would have not invested in Veridicom.


● The reasons are as follows:

- There was no proper idea of the target market segment decided. There was
absence of any form of market research.

- The technology was very highly cost driven and considering the number of users in
the future, it was futile to think that it would turn out to be a success.

- There was the presence of marketing myopia as there was no proposition

of adding value to the customers as all the focus was on product built up.
2. What due diligence would you do on this deal? What aspects
are most critical and why?
Most critical aspects and why:

● Ensuring high product quality: This is critical


because the chips were fragile and many a
times it had residual memory of the last
Due diligence I would do on this deal:
user.

● To find out the proposed target market. ● From a product centric approach turn to
● Identifying target customer base ( Industry customer centric approach by providing
tangible solutions to consumers as it is a
base) prerequisite to launch something new in the
● Know about the product durability & market.

performance. ● Cost minimization of production by


● Analyse existing demand in market. associating with suitable firms and
businesses as in the long run the financial
● To check affordability and hence the viability will be the backbone of success.
financial viability of the product.
● Future scope of the product: This is critical
wrt the long term viability of the business.
3. Would you make any changes in the team?
If so, how? If not, why not?

● Appointing a marketing head who is exceptional to make sure that the product is placed
well to thrive
● To help solve initial struggles and mishaps, hiring someone (like John Meyer) earlier itself,
could benefit the investors as well as CEO.
● Current Team is performing well and requires no big change. However, hiring technology
guys from the likes of reputed institutes such as MIT & Stanford.
● The research knowledge which they bring aboard will host a plight of opportunities for this
new market.
4. What changes would you make in the approach that the
team took?

Appropriate Changes include the following:

● Encourage the use of additional Security in any transaction by spreading awareness among
people
● Investing more into Research and Development in order to Identify economic alternatives.
● Studying the market really well by setting up a team to understand the customers and
market.
● Better analysis of the competitors to understand how they operate.

THANKYOU

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