Developing a sound value chain for technology business

“Developing a sound value-chain for technology business incubation support”

What does a healthy ecosystem of support look like?

“To succeed we need a small business ecosystem that works”Hon. Dep. President MC Ramaphosa, #SABIC2016

What does the technology development pathway look like?

“To succeed we need a small business ecosystem that works”Hon. Dep. President MC Ramaphosa, #SABIC2016

What does the technology development pathway look like?

This not a linear approach…

Innovators Financiers

Unaudited

Sep 00 to

Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02

REVENUE

iD-refcheck 10,803 2,740 3,097 3,476 3,873 4,260 4,700 5,318 5,852

iD-voice 0 0 0 0 0 0 0 0 432

iD-auto 0 0 0 411 948 1,492 2,235 3,336 4,980

UK 0 0 0 0 825 2,750 4,750 7,625 11,438

China 0 0 0 0 0 0 0 450 1,500

Canada 0 0 0 0 0 0 0 0 400

iD-academic 0 0 0 0 400 600 2,000 5,000

iD-mobile

iD-cert

iD-transact

iD-ref new territories A,B,C

TOTAL REVENUE 10,803 2,740 3,097 3,887 5,645 8,902 12,285 18,730 29,601

Cost of sales

iD-refcheck 6,373 1,400 1,257 1,254 1,394 1,542 1,718 1,966 2,169

iD-voice - - - - - - - - 62

iD-auto - - 273 654 1,042 1,561 2,331 3,479

UK - - - - 630 2,100 3,713 6,019 9,028

China - - - - - - 315 1,050

Canada - - - - - - - 240

iD-academic - - - - 208 312 1,040 2,600

iD-mobile

iD-cert

iD-transact

iD-ref new territories A,B,C

TOTAL COS 6,373 1,400 1,257 1,527 2,678 4,684 6,992 10,630 16,028

Shared understanding (incl. terminology)

#$tartUp_₤€¥

EARLY STAGE FUNDING SUPPORT

Bootstrapped Business

1999 – 2008

Gov Loans & Grants:

R3mil

Own funds R400 000

FUNDING & SUPPORT

“Nothing was integrated. Had to deal with all of them separately, different mandates. Did about 50 business plans. Mandates changed in the middle of the process!!! But is was soft money and allowed me to prove the concept.” unhealthy support system

Closing remarks

• Support needs to be available through out the stages of development – cradle to grave• Differentiation of value add by various institutions critical – to avoid duplication and

wastage • Poor access to markets a glaring reality of most support programmes – especially in

areas where potential for value addition is highest (next slide)• Need to move beyond collaboration lip service

Basic Strategic Application Design Production/ Sales

Research Development Manufacturing

PRODUCT LIFE CYCLE

Activity L

eve

l S

ca

le

Local

Research

Local Industry &

Industrial Products

OVERSEAS TECHNOLOGY SOURCES

Research Development Production

Innovation “Chasm”

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