Introduction to Technology Entrepreneurship 2009.

1. Technology EntrepreneurshipTheory to Practice Seminar2009 Tarek Salah Kamel Management of Technology MSc., Nile University tarek.kamel@nileu.edu.eg

2. This introduction training was developed initially for the “Entrepreneurship Education Initiative” between Intel and the Arab Science and Technology Foundation (ASTF) using part of the Intel+UC Berkeley Technology Entrepreneurship Challenge training materials. http://entrepreneurship.berkeley.edu/main/GEEI.html This customized version for Egypt is for a 1 full-day FREE seminar for Egyptian Universities senior students (Engineering, Science, …etc.) to prepare them to the concepts of Entrepreneurship and Innovation.

3. Agenda Introduction to Entrepreneurship Entrepreneurial Process Opportunity Identification Business Strategy Business Plan Writing Basics Startup Company Valuation Model Introduction to Marketing

4. 1. Introduction to Entrepreneurship

5. an entrepreneur?!

6. Real entrepreneurs!

7. Invention versus innovation

8. Invention versus innovation

9. What is entrepreneurship? Business Entrepreneurship (Companies) or Social Entrepreneurship (NGOs)

10. Egyptian examples! (business & social)

11. What is entrepreneurship? A critical component of a complex dynamic process to bring innovations into market

16. The entrepreneur Self starter, defines goals as he or she goes alone. Does the important things by himself or herself. Not a good delegator, strong need to control. Charismatic leader, but hard to follow. Extremely strong drive and capacity for work. Reward oriented for money, visible rewards (cars, boats, clubs, etc.) community admiration for accomplishments, prerequisites. Excellent problem-solving abilities. Innovative thinker. Realistic, takes moderate and well calculated risks. Committed to the company.

17. The professional manager Career oriented with well defined goals. Accomplishes tasks through people. A good delegator and motivator. Good leader and people person. Competitive and politically astute. Reward oriented for cash, visible rewards, status, prerequisites. Experience, ability, and accomplishments are evident. Plays by the rules, not a risk taker. Committed to self, more than company.

19. Adam Osborne decided to package all the PC components together as a portable computer (July, 1981).

20. In two months the company had its first $1,000,000 in sales.

21. By the second year the net revenues reached $100,000,000.

22. Consumers were interested in a larger, more standard 80-characters display

24. Adam Osborne decided to package all the PC components together as a portable computer (July, 1981).

25. In two months the company had its first $1,000,000 in sales.

26. By the second year the net revenues reached $100,000,000.

27. Consumers were interested in a larger, more standard 80-characters display

29. Osborne delayed the generation of needed capital through public offering for 6 months

30. Kaypro, a competitor, took advantage of the weak points and introduced the larger screen model in the perfect time for market demands.

31. Osborne announced he will introduce the bigger screen one while still has orders for the 1st model (large inventory) – A serious mistake.

34. New product concept creates new markets or alters old markets

35. If a company competes with innovation, it should plan to continue competing with innovation

36. All products have a finite life span. Timely product innovation should be part of every management’s technology strategy

37. The timing of announcements is very important

38. Capital formation and cash flow are very important for a growing business

40. 2. Entrepreneurial Process

46. Key elements needed

47. The founding team – an a team

48. resources

49. strategy

50. strategy - The business plan

51. 3 Core Questions to Answer: What the company is doing? Why? How? Open File

61. Elaborate Business Plan

62. Technology adoption life cycle (TALC) Innovators = Technology Enthusiast. People who are fundamentally committed to new technology … techies. Early Adopters = Visionaries. True revolutionaries in business and government to exploit new tech capabilities. Early Majority = Pragmatist. People who make the bulk of all technology infrastructure purchases and do not love technology for its own sake. They believe in evolution and not revolution. Late Majority = Conservatives. Pessimistic to gain any value from technology investment and are price sensitive and are unwilling to pay for any extra services. Laggards = Skeptics. Not to sell to these people but to sell around them LaithKassis (PICTI)

63. Technology adoption life cycle Mainstream Market Crossing the Chasm Early Market The Chasm LaithKassis (PICTI)

64. Linking all together Mainstream Market Crossing the Chasm Early Market The Chasm The Valley of Death Scarce funding for early-stage innovation

65. Linking all together

66. Developing A new model

67. Developing A new model

68. Actions to start Are you ready to start?!

69. 3. Opportunity Identification

72. Technology and society Society, Customers & Stakeholders Business Technology Science& Discovery Carlson Consulting

73. Technology and society Markets Society, Customers & Stakeholders Products Business Technology Science& Discovery Carlson Consulting

74. Technology dynamics Product B Business Product A Technology dynamics Science& Discovery Carlson Consulting

76. Instant value perspective

78. Business evolves

79. Takes timeScience& Discovery Carlson Consulting

80. Opportunity identification Societal Trends in: Technology Economic Regulation Social/Cultural Behavior Politics Identified problems Market Gaps Technology Forecasting

82. Economic Growth

83. Improved Healthcare

84. Increasing Mobility

85. Environmental Decline

86. Increasing De-CulturationHow to gain insight in trends business opportunities?

87. Trend coupling matrix Carlson Consulting

88. Trend coupling matrix Carlson Consulting

89. Trend coupling matrix - example Carlson Consulting

90. Case study in groups Groups of 5. For the following trends, try to deduce the coupling matrix: Fresh Water shortage in 2015 by 75% People are using GPS equipment the same they are using mobile today Google is selling Geo-maps with details up to 20M below sea level. Visa entry by Arabs to Arab states is canceled Nanotechnology is able to desalinate salty water at a 90% lower price than today. Computer prices are at 90% lower price, with today’s processing power. 1st human robot assistant came into market in 2015. “What If?” Scenario Analysis

91. The power of technology forecasting Technology Foresight Trend Analysis Scanning Expert Judgment Road Mapping Scenario Planning Carlson Consulting

93. Anticipate future needs

94. Use poor information when necessary

95. Expect the unexpected

96. Think long term as well as short term

97. Dream productively

98. Learn from your predecessorsCarlson Consulting

99. Do all industries have equal opportunites? How to Analyze the Attractiveness of a Certain Industry?!

102. Case study: digital imaging in the 90s Copyright © 2009 TarekSalah, Arab Science and Technology Foundation, tarek.salah@astf.net

103. Case study: digital imaging in the 90s Copyright © 2009 TarekSalah, Arab Science and Technology Foundation, tarek.salah@astf.net

104. Case study: digital imaging in the 90s In 2007 180 New Models! From over 27 vendors were released

105. Case study: digital imaging in the 90sExisting Competitors Copyright © 2009 TarekSalah, Arab Science and Technology Foundation, tarek.salah@astf.net

108. Image Science research were in corporate laboratories.Copyright © 2009 TarekSalah, Arab Science and Technology Foundation, tarek.salah@astf.net

111. Traditional Camera + Scanner, $800 to $1500 (PC)

112. Traditional Camera + PhotoCD player, $300 (TV)

113. Still-video, $1000 to $4000 (TV)

114. Traditional Video + Frame Grabbers , $350 (PC)

115. Camcorder, $800 (TV)Copyright © 2009 TarekSalah, Arab Science and Technology Foundation, tarek.salah@astf.net

116. Case study: digital imaging todayPlenty of Manufacturers Copyright © 2009 TarekSalah, Arab Science and Technology Foundation, tarek.salah@astf.net

117. 75 Models!! Case study: digital imaging todayMany Products

118. 65 Models!! Case study: digital imaging todayMany Products

119. 70 Models!! Case study: digital imaging todayMany Products

120. 60 Models !! Case study: digital imaging todayMany Products

121. Case study: digital imaging todayMany Products … Which are not differentiated! 180 New Models from over 27 vendors are released in 2007 alone

123. Slow Industry Growth.

124. High Developed Experience.

127. Slow Industry Growth.

128. High Developed Experience.

131. The 5 competitive forces Porter Interview Movie

132. 4. Business Strategy

133. What is strategy? The basic purpose of strategy is for a company to make a series of Moves to achieve a Sustainable Competitive Advantage. What is Strategy?

134. What is strategy? “…competitive advantage…is tougher to create and sustain with each passing year….(but)…As hard as it has become to create an edge, some smart organizations are finding new ways to do it…a few standouts …keep creating new competitive advantages, over and over…” Business Week, (Aug. 21-28, 2006, p. 80) To be effective, the moves require careful analyses of: The industry environment and The firm’s internal resources, capabilities, and competencies. Internal Analysis Tools External Analysis Tools

136. Ability to ChangeStrategy  A change-in-direction for long-term future’s prosperity

137. What tools to use to formulate strategy?

138. Strategic business model How a company generates profit?

139. Example

145. 5. Business Plan Writing Basics

147. Online training on writing your business plan Small Business Administration (SBA) “How to Write a Business Plan”: http://app1.sba.gov/training/sbabp/index.htm

148. Online training on writing your business plan Small Business Administration (SBA) “Developing a Successful Business Plan”: http://www.paloalto.com/sba/course.cfm

149. Online training on writing your business plan Small Business Administration (SBA) “Online Training Courses”: http://www.sba.gov/services/training/onlinecourses/index.html

150. Online training on writing your business plan Small Business Administration (SBA) “Online Training Courses”: http://www.sba.gov/services/training/onlinecourses/index.html

151. Online training on writing your business plan Small Business Administration (SBA) Another Assessment Tool : http://web.sba.gov/sbtn/sbat/index.cfm?Tool=4

152. Online training on writing your business plan Small Business Administration (SBA) Another Assessment Tool : http://web.sba.gov/sbtn/sbat/index.cfm?Tool=4

156. 3 Core Questions to Answer: What the company is doing? Why? How?

158. business plan process overview

162. 6. Startup Company Valuation Model

169. 3 factors that add value to a startup

189. 7. Introduction to Marketing

190. Is this marketing? Prof. Tarun Sony

191. Radical changes in marketing: CC DV TP Create … Communicate … Deliver … Value … to a Target Market … at a Profit Philip Kotler

192. 3 business in marketing

193. Value chain model of thought Prof. Tarun Sony

194. Prof. Tarun Sony

195. 3Cs

196. 4ps

197. A more holistic view Prof. Tarun Sony

199. Target marketing decisions

200. Value proposition

201. Analysis of marketing opportunities

202. Tactical

203. Product features

204. Promotion

205. Merchandising

206. Pricing

207. Sales channels

208. ServiceProf. Tarun Sony

209. The information technology (IT) effect The spread of information and communications technology is fundamentally changing the nature of marketing strategy and operations.

210. Example: Palm Jebel Ali Palm Jebel Ali

211. Have a clear vision and go achieve it!Thanks Tarek Salah Kamel Management of Technology MSc., Nile University Tarek.kamel@nileu.edu.eg