What They Dont Teach You At Stanford Business School

Stuff you can't learn in B-school: LARRY CHIANG

The AfterParty for Lecture #5, CS 183B

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By Larry Chiang

I love After Parties. Have you been to one I’ve hosted? This afterparty I’m hosting on a WordPress via 5 embedded tweets and two pictures with one jaw dropping video.

If you’re a lazy student taking CS 183B online for zero cost, let me cut to Peter Thiel’s lecture’s chase and conclusion:

“A business creates X dollars of value and captures Y% of X”

That is exactly EUBM (more on “Engineer Up a Business Model” #EUBM later! Down below.

Peter Thiel at the 44:10 mark reveals: “Often times for scientists & engineers, Y equals zero”

That’s a problem.

Problem: We engineers get screwed when a douchie pays us zero

Solution: Delve into a different class at Stanford. “Technology Entrepreneurship” is Engr 145. It’s all free at “#ENGR145”

bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
10/8/14, 8:19 AM
Peter Thiel during #CS183B Lec3, said capture Y% of X value
How to start?
How to do?! #CS183Do recommends #EUBM pic.twitter.com/g6lQpAqkRl

Problem: “Y” = Zero
Solution: Make Y > 0.

bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
9/16/13, 12:27 PM
As a student of “Business Model Generation”, I simplify p44 and 45 to #EUBM (CS VP C CR R$ KR KA KP CS

Problem: Engineers can’t believe alpha male problems

For example, in this business model canvas, area number one can be “I’m a big dumb HTB and as a Huge Takeover Bank I can’t tell what cellphone numbers are google voice. Lol most google voice numbers scream fraud when you’re doing bill collection from deadbeats who “charged off”. Credit code 9 is ChargeOff when a bank gives up on a loan

Problems in the real world are super basic but tough for CS majors to identity

Thus, the value (X) in the above case is helping banks lose less cash by screening out credit applicants that have google voice and no legit cellphone service

Now, lets get our “Y”, bitchezz

The “Y” corresponds to “2”
Remember the “X” is region “1”

the “X” is region “1”. It’s the value to a company

“Y” corresponds to “2” aka REVENUE STREAMS

bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
11/15/13, 11:30 AM
My mentor taught me to #EUBM which is cuts the lean startup methodology in to 3 specific, non-random, signature moves

For example

bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
11/11/13, 6:32 PM
A great example of #EUBM and #CTCFTR flip.it/Bf6Rm

Testimonial #7 of 9

88W3pdKY_normal.png Nick Tippmann (@ntippmann)
7/16/12, 5:00 PM
So Simple, So Brilliant – #EUBM Engineer up a Business Model – VIDEO bit.ly/OK1Ooh via @LarryChiang


bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
12/6/12, 11:37 AM
Elliott @Loh, my method is to #EUBM and get a ‘seasoned executive’ to pre-pay a clear thing that is missing. And solve it using #LCRRM

Practice entrepreneurship on something already dead like #99dresses, #Plancast or this…

(it died after sxsw)

bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
3/11/13, 12:44 PM
Luv the @heybigfish logo.
It’s cute
It’s a pitch
It’s a #EUBM
It’s a call-to-action

It died after SXSW
SO just like a Doctor practices on cadavers, practice on a startup that’s written a postmortem

Disclosure: I sold Plancast and financially benefitted after the postmortem

(Think of it as “last board of director doing” versus the opposite VC douche which is First Investor Signalling)

Or if resuscitating something dead creeps you out… Do something “LCMCC” and new

bd26194fa93733b624ec22966dbdb9d9_normal.jpeg Larry Chiang (@LarryChiang)
10/16/13, 12:40 PM
U in @UTexasMSTC ?! Id take 3 days in SF to “#EUBM up an #LCMCC” at Marc @Benioff‘s #DF13
He’s CEO. And founder.

More on EUBM in the two ENGR145 videos

(Remember, hashtags used to be snarkie. Now, they’re signature business subroutines)


Conclusion: That was quite the fun afterparty. You’re welcome.


Written by Larry Chiang

October 8, 2014 at 4:31 pm

Posted in Uncategorized

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