Powering A Knowledge Economy
Boris N. Reznik, Ph.D.
Chairman, Vendevia Group
Miami, Florida USA
www.vendevia.com
Riga, Latvia
June 9, 2004
©2004 Vendevia Group LLC
Guided Entrepreneurship™
The Lessons of History
How Silicon Valley grew from a small agricultural region to the worldwide
leader in the commercialization of science and technology.
The Emergence of the Entrepreneur
Why the entrepreneur is the real key to commercializing science and
technology.
Guided Entrepreneurship™
The most effective method for building an army of entrepreneurs in the least
possible time.
Guided Entrepreneurship Centres™
How and why they work to implement Guided Entrepreneurship programs.
A GEC Case Study
Creating the Latvian Legend
Taking the first steps
©2004 Vendevia Group LLC
How Latvia Can Become A Worldwide Leader
In The Commercialization Of Science & Technology
From Silicon Valley to
The Latvian Legend
Silicon
Valley
Boston
Corridor
Research
Triangle
New Jersey
Biogarden
Bangalore
India
How Latvia can become a
worldwide leader in the
commercialization of
science and technology
Latvia
©2004 Vendevia Group LLC
Imagine the
Possibilities
In The Beginning
It Wasn’t Always Called
Silicon Valley
Two great Universities (Stanford &
UC Berkeley) with great scientists
and great students
Cultural reverence for science
No real local markets for S&T
Great potential business
environment (Lots of Land, Low
Taxes, Cheap Labor)
Then came Sputnik followed by NASA
The Age of MegaTech was born
Huge Companies
Making Huge Products
For Huge Contracts
Sunnyvale California c1955
©2004 Vendevia Group LLC
The Bay Area
Northern California
Apollo Versus Harvey Wagner
Rich Incentives
Product
Entrepreneur
Government
Contracts
Commercial
Contracts
Technology
Centric
Market
Centric
Selling
Size
Selling
Capabilities
Competition
Recognition
Guidance
The Foundations of the Entrepreneurial Factory
©2004 Vendevia Group LLC
Mid 1960’s
Teknekron Gives Birth To A New Paradigm
To Create Entrepreneurs
Market Centricity
Can y ou recognize
inf ormation?
“RETNA”
RETNA
REI
Distribution
Optics
Insurance
Magnetic
Storage
Sy stems
1967
Microf iche
To store
images f or
f aster
retriev al
Slug
Codes
Can y ou
read f ast?
you
Can
ta?
e da
m
o
s
read
Can y ou recognize
images?
Optical
Character
Recognition
More?
Mag Stripe
Image
Processing
More?
Optical Laser
Disk
Still more?
Financial
Financial
Juke Box
Faster and
more reliable?
Bar Codes
Teknekron
Insurance
Can y ou store
more inf ormation?
Distribution
UC
Berkeley
More information?
1961
©2004 Vendevia Group LLC
How the Entrepreneurs Took On
The MegaTech Giants - And won!
Communications
Communications
& IT
and IT
3D
Bar Codes
Smart
Cards
Transponders
GPS
Transportation
Transportation
The Major Elements of Market Centricity
The market asks and the entrepreneur finds the science and answers
Small and agile versus big and slow
Market Solutions versus Products
From the God of the $ to the Goal of the Contract
Building An Army of Entrepreneurs
©2004 Vendevia Group LLC
Teknekron and The Mushroom Effect
Boeing
General
Motors
Litton
Sun
Microsystems
EDS
Hewlett
Packard
Lockheed
Martin
AT&T
Occidental
Petroleum
Symbol
Technologies
MCI
Lucent
Technologies
CONSOL
Energy
.
.
IBM
Both TIBCO &
TERA
Went Public
.
.
.
Teknekron spin offs grow
The new entrepreneurship becomes the legacy
Teknekron Alumni defined entrepreneurship through the’80s
What Entrepreneurs Do And How They Do It
Russian Science
Latvian
Science
&Latvian
Technology
& Technology
W orldwide
EU
Worldwide
Technology
Markets
Markets
The entrepreneur is a connector
between the source of the technology
and the users of the technology.
“No one buys technology for the sake
of technology, they buy it to solve a
problem or realize an opportunity.”
Very W ide Gulf
- H. Wagner
The Connector
LatvianScience
Science
Russian
Latvian
&&Technology
Technology
Worldwide
W orldwide
Technology
Markets
Markets
Connector Requirements
Client and market centric
Entrepreneurially driven
Mastery of running
an entrepreneurial business
Problem Solving Point Of View
Desire
That’s all fine and good, but
“How do you build an army of
entrepreneurs?”
©2004 Vendevia Group LLC
Bridging the Gulf
Cost Per Entrepreneur
The Lowest Cost Per Entrepreneur Developed
Venture
Fund
Accelerator
Incubator
Number of
Entrepreneurs
Per Centre
Guided
Entrepreneurship
Focuses on
the financial deal
Focuses on
the technology
Focuses on
the market
Develops
Companies
Develops
Product
Develops
Entrepreneurs
All approaches are designed for a different purpose
Guided Entrepreneurship creates the entrepreneurial soup
and builds the critical mass required for an army
©2004 Vendevia Group LLC
Guided Entrepreneurship Is Both Effective & Efficient
A Look Inside and Outside
GEC
The GEC supplies the basic infrastructure.
But it’s the constant interaction that makes it run.
Candidates - Entrepreneurs - Mentors - Technologists - Clients
©2004 Vendevia Group LLC
Guided Entrepreneur Centre
A Competitive Approach To Progress
Spin Off
The goal is to
go public.
Division
Manager
Entrepreneur
In Training
Candidate
Application
made to join a
specific GEC.
Goal is to get
selected.
Working on a
full time basis
in a GEC.
Goal is to get
out into the
field, meet
clients and
land a
contract.
Has first signed
contract in hand.
Goals is to build
team and make
more sales to
create a division.
Is running a
Division. Goal
is to dominate
market niche
and spin off a
company.
©2004 Vendevia Group LLC
Climbing The Stairs In The GEC
From Candidate To Spin Off
©2004 Vendevia Group LLC
Inside A Guided Entrepreneurial Centre
How Guided Entrepreneurship Builds
An Army of Entrepreneurs That Makes A Difference
Driving
World Wide
Markets
©2004 Vendevia Group LLC
Creating Entrepreneurs
The GEC - A Case Study
©2004 Vendevia Group LLC
Boris Reznik Founds ATC in 1985
Platinum
Software
Merisel
Famous
Footwear
Whitestone
Bridge
Manhattan
Associates
HNC Software
Just In
Time
Light
Signatures
Symbol
Technologies
4th Shift
Zmarket
Metasys
Oracle
Arriba
Celerity
American
Turnkey
Cisco
Systems
Optum
Software
Equifax
.
.
Sonica
IndX Software
Inatel
.
.
Avexus
.
Logicware
Swiss Log, AG
Siemens
We’ve done it in IT and are doing it in Biotech
Thousands of jobs created along with and billions of € of value
A Look At The Basic Architecture
©2004 Vendevia Group LLC
Creating The Latvian Legend
The Government Role
The Setup Role
The GEC
–
–
–
–
–
–
Specialized to Market
Segment
Ensures Market Focus
Fosters Competition
Creates Tailored Incentives
Provides Access to Resources
Provides Guidance
Getting Started
Do conceptual design of GEC
program for Latvia
Create a GEC Strategic
Initiative
Establish Setup Agency and
fund it appropriately
Do detail design of the overall
GEC Initiative Infrastructure
Create the first GEC and start
Guided Entrepreneurship
Evaluate progress and make
adjustments
Continue rolling out the
program
©2004 Vendevia Group LLC
Creating The Latvian Legend
Powering A Knowledge Economy
Boris N. Reznik, Ph.D.
Chairman, Vendevia Group
Miami, Florida USA
www.vendevia.com
Riga, Latvia
June 9, 2004
©2004 Vendevia Group LLC
Guided Entrepreneurship™