Presentation
USC ETTC
Workshop on Promoting Business Development in Technology
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Jack Welch, Chairmen General Electric
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“ According to Silicon Valley CEO’s, 60 % of the high-tech items they manufacture today did not exist 10 months ago”
Lon Hatamiya, Secretary - California Trade and Commerce Agency
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“Startups are now expected to go public within 618 months after venture investment”
Donna Jensen, Founder and CEO of startups.com
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st
• Knowledge is a New Kind of Asset
– The foundation of industrialized economy is shifting from natural resources to intellectual assets (Hansen 99) (Davis 98)
– Knowledge assets are viewed as factors of production that may be more important than traditional resources of capital, labor and land. (Davis 98)
– Converging technologies and rapid innovations can transform markets Overnight . Administrative systems no longer provide the underpinnings of value creation. (Teece 98)
– Reward goes to those who are good a sensing and seizing opportunities. Dynamic capabilities are most likely to be resident in firms that are highly entrepreneurial . (Teece 98)
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• 3 Finland
• 4 Luxembourg
•5 Netherlands
•6 Hong Kong
•7 Ireland
•8 Sweden
•9 Canada
•10 Switzerland
Source: The world Competitiveness Yearbook IMD International
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Truth
Universal
No Debate
Effect
Knowledge
Social
Belief
Personal
Converge on debate Diverge on debate
Cause Cause
10 Philosophical Mistakes (Adler 85)
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“Man will never reach the moon, regardless of all future scientific advances”
Lee De Forest, Radio Pioneer, 1957
“where ... The ENIAC is equipped with
18,000 vacuum tubes and weighs 30 tons, computer in the the future may have only
1,000 vacuum tubes and weigh only 1.5 tons”
- Popular Mechanics, 1949
“There is no reason anyone would want a computer in their home”
- Ken Olson, president and founder, Digital Equipment Corp., 1977
“This ‘Telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us”
- Western Union, Internal memo, 1876
“The problem with television is that the people must sit and keep their eyes glued on a screen;
The average American family hasn’t time for it”
- New York Times, 1949
“I predict the internet... Will go spectacularly supernova and in 1996 catastrophically collapse ”
- Bob Metcalfe, 3COM founder and inventor, 1995
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–
Tacit (Social) / Codified (Explicit)
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Observable[product] / Not Observable[process]
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Positive (Failures)/ Negative (Successes)
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Autonomous (Stand Alone)/ Systematic (Part of a
System)
–
Protected (Patent, TM, CW) /Not Protected (Trade
Secret)
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(ERI/McGraw Hill,”America’s Clusters”,1995)
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(ERI/McGraw Hill,”America’s Clusters”,1995)
Motion Pictures
Aviation
Electronics
Defense
Aviation
Automobile
Manufacturing
Food
Processing
Agriculture
Theme Parks
Motion Pictures
Television
Computer
Peripherals
Defense
Instruments
Defense
Aerospace
Commercial
Aviation
Metal
Products
General
Manufacturing
Information
Processing
Theme Parks/
Tourism
Visual Media
Production
Professional
Services
Multimedia
Technology
Engineering
Services
Technology-Based
Manufacturing
General
Manufacturing
Information
Processing
Business
Services
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• Entrepreneurship Super Normal Wealth Creator
– Business Environments Have Become Hypercompetitive because of the
High Magnitude and Velocity of Interfirm Rivalries (D’Aveni, 94)
– Innovations in Products, Services, Business Processes, and Organizational
Designs are Creating Dramatic Discontinuities in Product- Market Spaces and Disrupting the Traditional Approaches to Competitive Strategies and
Business Conduct (Christensen, 97)
– In the Short Run, Entrepreneurial Firms Reaps Supernormal Returns
(Create Wealth) as Established Incumbents and Rivals Seek to Understand the Competitive Disruptions in their Market Space.(Christensen 97)
– Thus Competition Occurs in the Form of a Series of Market Disruption
Moves by New Entrants or Entrepreneurial Firms and Efforts by
Incumbents and Rivals to Shape Their Response Actions (Young et al 96)
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Make & Sell vs Sense & Respond
Chabol (large companies) hierarchy, products based, (push)
Federal Agencies, SBIR :
Mission Based, Linear (push)
Universities : Curiosity
Based, emerging, (push)
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Incubators and Science Parks created to bridge gap between development and commercialization
Venture : Niche markets, public trading (pull)
Chart Source: Corporate Information Systems, Applegate
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Traditional Entrepreneurship
Sung
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Typical Waterfall model
Six Stages basic research, development research, product and process ideas, prototype, production, diffusion
Criticisms
Too much focus on the solution “push” basic research not the only initiator stage relationship between research and commercialization is too complex to be linear
Users are the key “pull” to the problems and markets
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New Non-Linear Model
2001 study of startup companies across: Software telecom (35%), Bio-med (19%), Computers (16%), and
Semi-conductors (10.8%)
Most innovation at application stage (55%), development (
22%), research (12%) production (9%)
Age: Linear older ( 35-45), non linear (25-35)
Education: Linear more (28%P,42%M,30%B), Non Linear
(7.5%P, 22%M,67%B)
Experience: Linear narrower (59% research, 35% commerce), Nonlinear (37% research, 29% commerce, 17% education)
Both groups agreed on success factors: business plan , leadership, technical skills, management skills, and location
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The Non-Linear
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Seven Organizational Change Propositions, Venkatraman 1994
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Zmud 2001
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• Entrepreneurial Firms Represent a New Online
Community
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Network computing, supported by advanced communications infrastructure, can facilitate collaborative entrepreneuralism (Teece 98)
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Successful business models set themselves apart in their communication design leading to a deconstruction of traditional value chains and the emergence of value Webs. (Lechner 01)
• The most critical factor for a venture business success is how to implement and commercialize lab-based technology/knowledge/ideas into actual products and/or services (Sung 01)
• Entrepreneurial firms use knowledge to reshape clusters of assets in distinctive and unique combinations to serve ever changing customer needs. (Teece 98)
• The key sources of wealth creation at the dawn of the new millennium will lie with new enterprise formation. (Teece 98)
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Community = Set of Agents + Medium
Agents = user groups
Medium = Internet
Subscribers
Netiquette
Self Organized
Non-Commercial Culture
Communities - Business Models and System Architectures:
The Blueprint of MP3.com, Napster and Gnutella Revisited, Lechner
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Knowledge
Intention
Communities - Business Models and System Architectures:
The Blueprint of MP3.com, Napster and Gnutella Revisited, Lechner
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• Secondary Market Research as practiced by expert communities may be not be producing market knowledge fast enough or broad enough for modern high velocity markets
– Market analysis of existing markets was not encouraging
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A KMS that uses IT to gather primary market information rapidly, facilitates the complex transformation between basic research (IP) and commercialization (Wealth)
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Online research for potential markets has changed the lens
– MOB/WOB community is rich with profitable SMEs
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MULTI-CHANNEL SPATIALIZATION SYSTEM FOR AUDIO SIGNALS
U.S. patent 5,438,623 (August 1, 1995)
PROBLEM ADDRESSED separation of auditory inputs by simulation of different source locations
TECHNICAL APPROACH
(1) use of synthetic auditory head related transfer function (HRTF) to simulate different virtual spatial source locations for up to five auditory signals;
(2) analog-to-digital conversion for noise-free processing with HRTF, and subsequent digital-to-analog conversion for presentation of modified signals to right and left ears
POTENTIAL APPLICATIONS teleconferencing, aeronautical communications, virtual reality video games, command and control
BENEFITS (1) binaural hearing advantages: substantial improvement (6-8 dB)in signal to noise; faster reaction times, less listening fatigue, increased perception and immersion; (2) less expensive than general purpose 3D audio displays; (3) customizable; (4) user-friendly, not requiring computer interface
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In the CAP, say you need to build a Technology Status
Report.
Clicking on the link, brings up more information about what is a
Technology Status Report (TSR), including an example.
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Clicking on the details button reveals more information about the TSR.
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You can sort or filter you selection
Each technology list the available primary marker research we have done.
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INC. Magazine May 1999
Images courtesy of INC. magazine
• Michael Porter - Harvard University just formed
ICIC (Institute for a Competitive Inner City)
Recently completed a 5 year study of 100 inner city growth companies:
– 46% compound annual growth rate
– Generated on average 50 jobs/year per company for five years
– Annual hourly wage $13/hour high wage jobs at $ 26/hr
• Ride the Information Technology and
Telecommunications wave
• Location, Location, Location
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• Breakaway
– On going profitable south central MOB IT Service Business
– Strong Private and Public Network
– No Products
– Access to Capital Financing
• Far West
– Assisted with Business Plan
– We located Physicist
– Located Chip Designers
– Located Short Run Factory for prototype chips
– Located an Incubator
– Assisting with SBIR and STTR to ensure dual use
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Leveraging Existing Network
Breakaway will take lead on SBIR Phase I and Phase II
(hopefully) Far West RTTC will support
USC School of Engineering will support STTR work.
Large Chip manufacturer is monitoring process
Large Set Top Box manufacturer is monitoring process
VC is monitoring process
Investment Bank is monitoring process
DoD is monitoring process
Time to Market 24 to 36 months
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