2. ShenzhenWare.com
I am Terry
Joined HP Taiwan
President, China HP
President, TI Asia
Executive VP, Foxconn Technology Group
Foxconn International Holding
Retired
Mentoring young Makers on the startup journey
from Terry & Friends
Age 27
Age 40
Age 45
Age 56
Age 59
Age 60
Today
Cartoon, by Shining Hsiong, founder of ShenzhenWare, with Pencil Fifty-three on iPad.
3. ShenzhenWare.com
Maker Space
Manufacturing Space
From Maker to Entrepreneur:
Innovation comes from Long Tail, Entrepreneurship comes from Makers
From Idea
to Prototype
module
Small batch
Supply Chain
& CM
Accelerator
Lacks supply
chain &
Manufacturing
expertise
Scale production
How to attract
attention of large
companies
Sales
Domestic &
Overseas
INNOVATE
REPLICATE
COMMERCIALIZE
MANUFACTURE
Crowdfunding
Small batch manufacturing
Accelerator
VC funding
Scale production
Sales
Phases Challenges
Diagrams from Terry Cheng’s keynote speech at MDCC presented by CSDN in 2013.11
0
0.1
1K
1
100K+
4. ShenzhenWare.com
August 2014
Shining and Terry started the
“Terry & Friends” group as a
means of connecting and
mentoring Makers on the Start Up
journey. The group started with
40 members to over 6,000 today.
Enabling Hardware Entrepreneurship
For makers in Chine through a series of public events
7. ShenzhenWare.com
WeChat as a social platform
Managing relationships with 6,000 members
Endless replies on WeChat everyday through the iPad:
• All handwritten in traditional Chinese characters
• Every new member receives a personalized message with
Terry’s bio
• Personalized dialogue and discussion
• Ensure all replies are prompt and completed before EOD
• Encourage participation from new users of WeChat
Cartoon, by Shining Hsiong, founder of ShenzhenWare, with Pencil Fifty-three on iPad.
9. ShenzhenWare.com
Public events
Over 20 events in 6 major Chinese cities
Every month Terry travels to China from Taiwan, hosting events in Shenzhen,
Guangzhou, Shanghai, Beijing, Chengdu, Taipei, and Hangzhou to strengthen
relationships through offline events.
13. ShenzhenWare.com
Challenges in hardware startups
On the product level
Product
Definition
‣ No product
differentiation
‣ Lack of market
direction
Talents
Technology
Realization
Equity
Distribution
Supply Chain
& Fabrication
Business
Model
Sales
Strategy
Funding
…
‣ Lack of feasibility
‣ Low technical
competence
‣ Low quantity
‣ Lack of manufacturing
vendors
‣ Dependancy on supply
chain
‣ Lack of sales
channels or wrong
channels
‣ Unclear online vs.
offline strategies
‣ Lack of specific
talents
‣ Lack of attraction
‣ Over distributed
‣ Over centralized
‣ Long product
iteration
‣ No sustainable
business plan for
growth
‣ Not enough
funding
‣ Over reliant on
investors
14. ShenzhenWare.com
Lack of vision
A common problem
Most teams have young members with
little work experience. Most teams do
not plan for the future and also lack the
whole picture. They can’t see the forest
for the trees.
Cartoon, by Shining Hsiong, founder of ShenzhenWare, with Pencil Fifty-three on iPad.
16. ShenzhenWare.com
You read a book from beginning to
end. You run a business the opposite
way. You start with the end, and then
you do everything you must to reach it.
”
“
Former ITT President:Harold Geneen
19. ShenzhenWare.com
Shenzhen Shanzhai Phone Ecosystem
Shanzhai 1.0
In fact, the Shanzhai Phone ecosystem in the past
provided environment for innovation and creation. It
continuously improved supply chain ecosystem that
brings ideas to mass production efficiently. It also
fully unleashed the technical advantage from tooling
materials to industrial design replying on the diverse
distribution channel across the country and the
world fertilized hundreds of thoughts of small
businesses…
Shanzhai plays a crucial role in Shenzhen becoming the global manufacturing center!
20. ShenzhenWare.com
Shenzhen Shanzhai Phone Ecosystem
Shanzhai 1.0
Funding Platform
(e-BOM)
4 Core Modules
Design House
Integrator
Phone Case
Foreign Brand
Domestic Brand
Mobile Brand
System Brand
Distribution
Channels
Branding ChannelsOrder
Order
Order
Shipping
Consign
Consign
Order
PCB Shipping
PCBA Assembling
Factories
System Assembling
Factories
21. ShenzhenWare.com
Shanzhai is dying
Why is the ecosystem decaying
‣ Single mobile phone market has matured, profit margin gets smaller
‣ Higher technological barriers as smart phone enters 4G/5G
‣ Internet and e-commerce replace the advantage for physical distribution channels
‣ Government policy suppresses copying, infringement, low quality…
22. ShenzhenWare.com
Chance for Shan Zhai to be Reborn
Rethinking about Shanzhai’s future
Internet IoT Maker
Movement
Modulation
Open
Source
Shanzhai will not
be in Shenzhen
only, but the
entire country,
even the world
Incubator, accelerator, foundation, media, government policy that
encourages innovation and entrepreneurship...
Everything is
connected, one
product to
product system
More creative
and innovative
talent
Accelerated
product
development
Open source
hardware +
software,
shorten R&D
time, lower
development
barriers
23. ShenzhenWare.com
#1Main Group #3#2 #4
Wearable
Product Dev
Group
RobotsToys Drones
Health &
FItness
Audio
Smart
Home
Router
Industri
al Design
Supply
Chain
Marketing
& Sales
Investing Incubation Media
Beijing
Regional
Group
Southwe
st
Hangzhou Taipei
North
America
Leisure
Entertainment
Group
FoodieSoccer English
Resource
Group
…
…
…
…
…
Beauty
Connected
Automobile
Biking
Hangzhou
Shan Zhai 2.0 Ecosystem Structure
T&F
24. ShenzhenWare.com
Leveraging by the Internet
Shanzhai 2.0
Congregation Consolidation Integration
of resources
based on main
group
of expertise
based on
specialty group
of information and
value flow system,
based on software
platform
25. ShenzhenWare.com
What else we need to do?
Shanzhai 2.0
Integrity Open Source Innovation
Integrate Online and offline to establish Core Value System and to
build The unique Shanghai 2.0 culture :
26. ShenzhenWare.com
WHY I AM
DOING THISMany people ask me the question:why are you doing this? I can spend
time doing things with more monetary return. Bill Gates earns millions
per hour, but he still gotta pay movie tickets.
This makes me HAPPY!
27. ShenzhenWare.com
Seeed Studio | O'Reilly Media | Techshop | ShenzhenWare
David Cranor
Dellaena Maliszewski
Jon Bruner
for helping to make this happen.
Shining Hsiong
Mengmeng Chen
Zichuang Xiong
for helping me with the slides.
SPECIAL THANKS TO
28. ShenzhenWare.com
Terry Cheng @ Terry & Friends
THANKYOU
The Ecosystem of Makers and Startups
Contact me via: terry@shenzhenware.com