Ruth Ann S. Basnillo

SYSANAL

O0A

Ann Winblad

Cofounder, Open Systems, Hummer Winblad

            Ann Winblad, together with the other three guys he worked with at the Federal Reserve Bank cofounded Open Systems.

            After doing this startup, Winblad also cofounded the first venture firm to focus exclusively on software which is Hummer Winblad Venture Partners in 1989.

            What motivated Winblad to do this startup, though she already had a very good job at Federal Reserve Bank, was the feeling of being empowered as a youth to achieve. She had the feeling of fearlessness about the risks if she continues working on it.

            The particular problem this startup encountered was the difficulty about pricing strategy and collecting money from people. The accounting software they offered was something that’s entirely new during that time. In fact, Winblad was one of the first generation of entrepreneurs who figured out by trial and error what a software startup was.

            I think people used the service because the product these cofounders offered, if not built by them, would yield to difficulty in building accounting system. Moreover, the product they offered was a software where accounting system would be used for computers.

            The impact of their startup in the history of Internet is that through the trial and error of Winblad, software startup would not be figured out. The startup that it influenced was Hummer Winblad, in a way that this became the first venture firm to focus exclusively on software.

            What’s unique about this startup was that it started out of only $500 from the cofounder’s little brother. It was something, basically, that was never done nor offered before.

            If I were in the cofounders’ shoes, I would have also risk my very good job for starting a company but the thing is, I would just do that and take the risk if I already had a great idea in mind.

            I think, the startup would not be possible in a Third World Country because the thinking of Third World countries’ government is more on the basic needs of people to survive and live. Startups like that are not given too much importance in a Third World Country because people’s way of thinking would be that those stuffs are just for rich people. The peculiar characteristic of the startup was that it was purely built by risk and that allowed it to flourish where it was conceived. They would have not done that if the cofounders didn’t take the risk.

10 THINGS I DIDN’T KNOW:

1. After reading the case study, I learned that Open Systems was one of the first startups to offer software as product. Before, I have heard about software but I didn’t know that Open Systems was one of the first software startups.

2. After reading the case study, I learned that a female cofounded Open Systems. Before, I never thought that a female had already cofounded a startup.

3. After reading the case study, I learned that when forming a company, there’s a big difference between being an inventor and being an entrepreneurial to leading a company because you’re not fending for yourself but for the shareholders. Before, I didn’t know that there’s such a big difference.

4. After reading the case study, I learned that Open Systems was sold for $ 15 million. Before, I haven’t heard about Open Systems.

5. After reading the case study, I learned that the software first offered by Open Systems was Accounting Software. Before, I didn’t know that there’s software for Accounting Systems.

6. After reading the case study, I learned that Ann Winblad was probably the most powerful woman in venture capital now. Before, I thought that a guy is the most powerful in venture capital.

7. After reading the case study, I learned that the company was started initially without any idea about what to do. Before, I thought that when you start a company, you already had the idea for it.

8. After reading the case study, I learned that Open Systems was started with a criterion wherein they would build a company where they would like to work. Before, I already had the idea about this criterion in our Principles of Management subject but I didn’t understand it fully well.

9. After reading the case study, I learned that Winblad cofounded Hummer Winblad Venture Partners after having sold Open Systems. Before, I didn’t know about Hummer Winblad Venture Partners.

10. After reading the case study, I learned that Hummer Winblad Venture Partners was the first venture firm to focus exclusively on software. Before, I didn’t know about any venture firms focused exclusively on software.