Entrepreneur

Engineering 90

I am somewhere in Africa. Take EN90 because Crawford is really cool! Are we still friends?

This class will Focus on practical work projects

Product DevelopmentMarketing

Business Plan

Introduction

Engineering 90

Skills and knowledge applicable to both start-ups and large corporate environments. Projects will be more of the entrepreneurial type.

Ways of making effective decisions in managerial situations with a significant technological component.

Start-up Corporation

•Start-ups

•Entrepreneurs

•Achievements in Corporation

President

IPO’s CEO’s •Graduation

•Hopes & Dreams

•Energy

We are in the Third WaveThe Economic Evolution

8000 BC - 1850 1960’s - present1850 - 1960’s

Agricultural Wave

Industrial Wave

Information Wave

Jeremy & Tony Hope, Competing in the 3rd Wave, Harvard Business School Press, 1997

Source: The Internet Society (www.isoc.org)

Impact of the Information Age

Impact of the Information Age

Source: The Internet Society (www.isoc.org)

Today’s Competitive Landscape

Powerful and unpredictable consequences for countries, businesses and individuals.

•Exploding technology

•Global market

•Changing force of competition

•Government driven (deregulation)

•Pattern of employment

•Rapid pace of knowledge is now the key resource

The Impact of Technology

•Creating wide range of new business opportunities

•Technology is creating new forms of organizations

e.g. internet -- reaches millions of users

Electronic banking, education on demand, digital photography, virtual shopping and virtual factories

Information based networks have changed the economic equation

Fewer mergers, takeovers and conglomerates

Development of alliances and economic partnerships

Use network to coordinate supply and marketing activities without owning them

Global Market

•Flow of money and information immediately. Corporations of every nationality are buying, selling, and investing in growth regions from around the world from a central computer.

•Marketing is leading to homogeneous buying patterns.

McDonalds arches are recognized everywhere.

Global shipping via internet.

•New regions of economic prosperity (East Asia)

% world economic output

East Asia

1960

Today

4%

25%

Malaysia is the largest semi-conductor producer.

Government Driven

Changing Governments

•Collapse of communism•China economic power

•Emergence of East Asia•Privatization of state-owned industries

Billions of new customers in: East Asia

IndiaEastern Europe

Deregulation:

•Airlines

•Telecommunications

•Utilities

Changing Force of Competition

Traditional industrial boundaries are being erased

Is Microsoft

Companies cover large industry spheres through alliances and partnerships

computing

software

communication

consumer electronics

information

Industry?

E.g.

AT&T

Microsoft

AOL

Netscape

This is an emerging trend!

Changing Pattern of Employment

Massification Demassification

In the 1970’s, 90% of people worked for organizations, …, career at company was a lifetime commitment.

Smaller, more focused companies, entrepreneurs, start-ups, spin-offs. Tightly focused companies.

Knowledge - Key Economic Resource

•Creative use of knowledge and technology.

American Companies

~2000Intangible

assets2X tangible

~1980’sTangible assets

2X intangible

Intangible - intellectual assets - skills and capabilities of knowledgeable workers

For service and high tech companies 5 - 15 times

Success in the 3rd Wave

World-Class Managerial Performance in Making Knowledge Productive

Think Outside the Box

3 Types of Companies in the Third Wave

1. Rule Makers who build the industry (IBM, CBS, United Airlines, Merrill-Lynch, Sears, Coca-Cola)

2. Rule Takers who follow industry (Fujitsu, USAir, Smith Barney, JCPenny)

3. Revolutionaries who rewrite the Rules (IKEA, The Body Shop, Charles Schwab, Dell Computers, Swatch, Southwest Airlines)

“Never has the world been more hospitable to revolutionaries and more hostile to industry incumbants” Gary Hamel

Gary Hamel, Strategy of Revolution, Harvard Business Review, 70 1996

Killer Application (Killer App)

A new good or service that establishes an entirely new product category, and by being the first, dominates it, returning several hundred percent on initial investment

•CD’s•Personal Computer•Electronic fund transfer

•First word processing program

The “Holy Grail” of technology investors

“Killer apps create wealth and can jump start stale economies, but they can also be destructive by bumping off other technologies and entire companies”

Downes and Min, Unleashing the Killer App, Harvard Business School Press, 1998

New Product Development Project

You will prepare a new product concept/proposal as your first product.

Think in terms of the 3rd Wave

- unique and creative killer app products in the information age

THINK OUTSIDE THE BOX