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High-Tech Business Development

Success Through Relationships

Eric OrnasUCSC ISM 1013/9/06

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AgendaIntroductionTech market cyclesLeadership through alliancesThe role of business developmentBasics of strategic partnershipsRisk assessment and reductionWinning relationshipsPersonal communication and political awarenessA day in the life

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My BackgroundCOO, Satori Labs, Inc. (www.satorilabs.com)Software: PC, client server, Internet technologies, wirelessMultiple perspectives Start-up and established companies Founder, CEO, business development, customer

support management, sales, technical support Supplier, customer, partner, products, services International and domestic markets

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Satori Labs, Inc.

Digital pen and paper solutions for healthcare forms automationTransparent ComputingAngel fundedNew company,new technology, new marketChallenges Define and build market, establish identity,

credibility, generate revenue, dominate market

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Examples of Tech CyclesMainframe and mini-computersClient-server computingThe Personal ComputerNotebook ComputersUltra-mobile, convergent devices The Internet Dot Com marketPeer-to-peer technologyNanomachine technologyBiotech/nanocomputing covergenceWeb 2.0

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How the Tech Cycle Plays Out

Rapid introduction of new technology and business modelsEasy funding for new venturesStrong productivity growthCapital investment soars as companies try to keep up with new technologyInflation is held down by rising productivity, intense competition from new companies, and falling prices for new technologyBuoyant stock markets

Technological stagnationDifficult for new competitors to emerge in the marketWeak productivity growthTechnology spending flattens out, while overall investment fallsInflation rebounds as productivity growth slows and new startups become less commonDepressed stock markets

Expansion Phase Contraction Phase

Business Week

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Customer Adoption Curve

InnovatorsInnovators

Early Early MajorityMajority

Late Late MajorityMajority

EarlyEarlyAdoptersAdopters LaggardsLaggards

VolumeVolume

TimeTime

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Establish Leadership Quickly

The illusion of momentumleads to…The perception of momentumwhich leads to…The Reality of momentum

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And the Wheel Goes Round

Launch

Adjust

Re-inventAssess

Customer responseTechnical innovationCompetitive responseMarket conditions

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The Role of Business Development

Strategic alliances and partnershipsLicense necessary technologyIndustry standardsNew revenue streamsGain marketshare

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Intra-company Relationships

Senior managementR&DSalesMarketingProduct ManagementLegalFinance

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Reporting Structures

Direct report to CEOReporting to MarketingRecent trend reporting to Sales

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High Risk Outcome

New Company

New Technology

New Category

New Customer Market

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Assessing Risk

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High Risk Outcome

New Company

New Technology

New Category

New Customer Market

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Reducing Risk Through Alliances

Partner A

Partner DPartner C

Partner B

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Create Your Partnering Strategy

Who can help you reach your goalsWho will pay youWho can protect youWho gains if you winWho suffers if you losePartnerships are perishable

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Successful Partnerships

Clear objectivesReal value for each partyTop management involvement/buy-offInterdepartmental participationPlan for next stage of relationship

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The Standards Battles

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Importance of Standards

Grow marketsGain from “shared” effortControl the gameKnow the landscapeVisibility and credibility

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A Web of Alliances

InfrastructureInfrastructurePartnerPartner

OS PartnerOS Partner

WirelessWirelessPartnerPartner

HW PartnerHW Partner

StandardsStandardsPartnerPartner

ApplicationsApplicationsPartnerPartner

ServersServersPartnerPartner

InternetInternetPartnerPartner

Core Core StrategyStrategy

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Negotiating the Relationship

Prepare Clear set of objectives Set your limits beforehand Do your homework Work with those who share your values Anticipate

Negotiation is a processNegotiate with integrityFocus on relationship, not just the deal

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Negotiating the Relations

Create an atmosphere of cooperationListenSilence is okayMinimize other party’s concessionsGo for the WIN-winShow no fear

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A Day in the Life

Strategize and planResearchMeetings: internal and externalPhone calls and emailReading, writing, reviewing contractsOn the road

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Business Development Profile

Technically astuteAbility to think strategicallyOrganizational and political intelligenceExpert at prioritization of complex issuesExcellent communication skills Written, oral and presentation

People skillsExtrordinarily adaptable and nimble

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Personal Communication and Political Awareness

The best technology often doesn’t winWho are the stake holders?What is the political dynamics?Maintain your integrity

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Thank You