Module 1.2 basics of technopreneurship

MODULE 1.2

Basics of Basics of TechnopreneurshipTechnopreneurship

Roles of Roles of Technopreneurship Technopreneurship

in job creation and in the in job creation and in the National economyNational economy

ROLE ROLE PLAYINPLAYIN

GG

• Employment creation• Local resources • Decentralization and

diversification of business • Promotion of technology • Capital formation • Promotion of an entrepreneurial

culture

Importance of Importance of TechnopreneurshipTechnopreneurship

What is Technopreneurshi

p?

High tech ventures in ICT, electronics, internet, life sciences and biotech.Service firms where technology is critical to their mission, such as: e-Bay, FEDEX, SMART money transfer, e-learning Technopreneurship is entrepreneurship in the field of technology.

Technopreneurship Technopreneurship DefinedDefined

EntrepreneursEntrepreneurs - people who enter people who enter into new and pioneering venturesinto new and pioneering ventures..- is whole-brained, meaning he/she - is whole-brained, meaning he/she uses both the left brain (logical) uses both the left brain (logical) and right brain (creative). and right brain (creative).

EntrepreneurshipEntrepreneurship – Starting up a Starting up a

new businessnew business

Source: Federico Gonzalez, President PESO Inc.

Entrepreneur & Entrepreneur & Entrepreneurship Entrepreneurship DefinedDefined

Course Model - SEEDCourse Model - SEED

Self Mastery

Environment Mastery

Enterprise Mastery

Development of Business

Plan

Self- MasterySelf- Mastery

Self-mastery passion comes from knowing yourself.

Self-mastery brings passion. When you know yourself, you know what you want and do not want.

Source: Jay Bernardo III

A A self-mastered self-mastered personperson does not need high IQdoes not need high IQ does need high EQ and AQdoes need high EQ and AQ is naturally a/an:is naturally a/an:

performer – competitive and performer – competitive and efficientefficient

epicure – sensual and cheeryepicure – sensual and cheery boss – takes charge and loves a boss – takes charge and loves a

good fightgood fight is whole-brainedis whole-brained has a personal vision and knows has a personal vision and knows

strengths strengths and weaknessesand weaknesses

What is a self-mastered person?

Environment MasteryEnvironment Mastery

Environment mastery is about generating business ideas and seeking opportunities out from his or her environment through

serendipity walks

crises

trends

etc. Source: Jay Bernardo III

An environment-masteredenvironment-mastered person

understands the industry he/she is in sees the opportunities, not the problems is on top of the situation instead of being

under the situation is the organization/industry innovator and

strategist

What is an environment-mastered person?

Enterprise MasteryEnterprise Mastery Enterprise Mastery is how to run a

business

This pertains to the knowledge of the different enterprise disciplines such as:

Creating the Business

Marketing Management

Operations Management

Financial Management

Risk Management Source: Jay Bernardo III

What is an enterprise-mastered person?

An enterprise-mastered person

understands and integrates the functions of management (marketing, human resource, operations, and finance)

understands and integrates the process of management (planning, organizing, directing, and controlling)

leads and inspires rather than manage

Development of Development of Business PlanBusiness Plan

Development of a business plan covers:

writing the business plan

presenting and defending the business plan

adding refinements to the presented business plan

1. Incremental1. Incremental• Routine business, modest noveltyEx. (new coffee shop, new BPO)

2. Imitative2. Imitative• Imitation of venture, same business

model and template • Ex. new regional branch, franchised

operations

4 Types of 4 Types of EntrepreneurshipEntrepreneurship

3.3. Rent-seekingRent-seekingBusiness that utilizes standards, regulations and laws to share in value of enterprise

Ex. Coca Cola Export

4. Innovative4. InnovativeBusiness based on innovation

Ex. new memory chip

1.1. Hard WorkingHard Working

2.2. Self-ConfidentSelf-Confident

3.3. Builds for the FutureBuilds for the Future

4.4. Profit-OrientedProfit-Oriented

5.5. Goal-OrientedGoal-Oriented

6.6. PersistentPersistent

7.7. Goal-OrientedGoal-Oriented

8.8. Responds to feedbackResponds to feedback

Characteristics of an Characteristics of an EntrepreneurEntrepreneur

9. Demonstrates Initiative9. Demonstrates Initiative10. Willing to Listen10. Willing to Listen11. Sets Own Standards11. Sets Own Standards12. Copes with Uncertainty12. Copes with Uncertainty13. Committed13. Committed14. Builds on Strengths14. Builds on Strengths15. Reliable and Has 15. Reliable and Has IntegrityIntegrity16. Risk-Taker16. Risk-Taker

Characteristics of Characteristics of Technopreneurship Technopreneurship cont.cont.

What is the

What is the

difference difference

between an

between an

entrepreneur

entrepreneur

and a and a

salaried salaried

employee?employee?

• A technology idea owner who ventures to make his idea a commercial reality

• An entrepreneur who gets a technology idea, finds an opportunity to make it a commercial reality.

What makes an What makes an Entrepreneur a Entrepreneur a TechnopreneurTechnopreneur

Lets have a MATCHING GAME!!!Lets have a MATCHING GAME!!!

TECHNOPRENEUR

ENTREPRENEUR

Differences between Technopreneurship and Entrepreneurship

LOCAL•SMART LINK – (Computer shop)

Dealing with computer hardware and software, Repairs, Networking and Computer ad LCD Rentals. (OCW)

•LANE SYSTEM – Software Integration Developer

Some Technology Some Technology VenturesVentures

NATIONAL•NETOPIA – Internet Café•YEHEY.COM – Internet Portal

INTERNATIONAL•YOUTUBE - a video sharing website

Businesses start from ideas, but ideas Businesses start from ideas, but ideas alone do not make a businessalone do not make a business

Customers do not buy ideas, they buy Customers do not buy ideas, they buy products/services; products/services;

Customers pay the price; value is what Customers pay the price; value is what they getthey get

Source: Federico C. Gonzalez, President PESO Inc.

Some Basic FactsSome Basic Facts

A marketable product may not result in a viable business

A studied approach to planning the business is needed.

Entrepreneurship is calculated risk-taking, not foolhardiness.

Some Basic Facts Some Basic Facts cont.cont.

Source: Federico C. Gonzalez, President PESO Inc.

TechnopreneurshiTechnopreneurship Ecosystemp Ecosystem

MODULE 2

Get 1 sheet of paper!

• Think of an task that each of you (or group) would like to conduct or do (i.e. Cooking viand, repairing your PC, constructing a “bahay kubo”, etc) and write it in a paper

• Then, list down what you need to accomplish the task.

• Present your identified task and requirements (1-2 minutes per student/group)

Warm Up Warm Up ActivityActivity

• Many of the tasks, if not all, have pre-requisites (i.e. money, materials, personnel, etc)

• Similarly, for technopreneurial venture to start, grow and succeed, it must also have the required resources, environment and support.

IntroductionIntroduction

But, what are these things?

At the end of this session/lecture, the students should be able to –

• Enumerate the different actors/ players for the technology ventures to prosper, and

• define the roles of the different actors/players in techno ventures

Learning Learning ObjectivesObjectives

H E L F

Successful technopreneurship

=

Technopreneurship Technopreneurship EcosystemEcosystem

HumanResourc

es

Environment

FinancialResources

Laws & Policies

TechnoVentures

Human Resources Component

• Research - Thinker, Idea generator, Innovator

• Developer - Implementor, technical people

• Scanner and marketing people

• Financers


Environment Component

• Science parks, Incubation centers

• Academic Institutions, R & D Centers

• Internet access, Communication

• Communication and Other Support Services

• Geographic accessibility

• Venture Mentoring Services/Support


Laws and Policies

• Intellectual Property Rights Office

• Technology Licensing Office – facilitates commercialization of inventions

• Legal Services


Financial Component

• VC and Investors

• Business Sector

• Funding Agencies

• Financial Services (i. e. Accounting)


Financial Resources

VC, Investors, Business Sector, Funding Agencies

Human Resources

Academe, R & D Centers, technical

personnel

Technology Venture

Environment

Science Parks, Incubation Centers,

Infrastructure, Comm and other Support

Services

Laws and Policies

Technology Licensing Office,

IPR Office

Academe and Research Institutions

1. Ateneo de Davao University

2. Brokenshire College

3. Cor Jesu College

4. Davao Doctors College

5. Holy Child School of Davao

6. Jose Maria College

7. St. Mary’s College

8. Interface Computer College

9. University of Immaculate Concepcion

10.University of Mindanao

11.University of the Philippines Mindanao

12.University of Southeastern Philippines

Department of Science and Technology

Commission on Higher Education

PESO

Davao City Chambers of Commerce and Industry

Science and Technology Park, Bago Oshiro, Tugbok, Davao City

Brokenshire Learning Center

EnvironmentEnvironment

Academe (Colleges & Universities)

DOST, DCCI, PAHRDF

Funding Agencies Industries, Businesses, LGUs, Private Sectors

Incubation Centers & Science Parks

Framework of Engagement or Collaboration

Why Why Technopreneurship?Technopreneurship?

Philippine EconomyPhilippine Economy

•Population 84 M•Population of working age?

–Approx 50% of popn = 16 years old and below

•Employment•GNP from large companies > 100 employees

•GNP from small companies, < 100•Number of large companies 5%?•95% are small companies?

Source: M.Barcelon, UPATBI

Economy, Exports ??Economy, Exports ??

$22MTaiwan

65M

7M

4M

24M

60M

84M

$15BVietnam

$120BHK

$120BSingapore

$90BMalaysia

Tourism, food/cars, electronics

$65BThailand

Electronics, traditional goods

$40BPhilippines


How?How?

Start the Ball RollingStart the Ball Rolling•Innovation

–Person gets an idea, active search, by chance, present employment or experience

•Triggering Event–Career prospects–Deliberate choice

•Implementation•Growth


Common ComponentsCommon Components

•Three crucial components for business:– Excellent market opportunity– Superb entrepreneur (and management team)

– Resources needed to start the company and make it grow


Customer Need– “Can you give me the names of prospective customers?”

– If you cannot give any names, you only have an idea, not a market.

– Would-be entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have not yet identified a market need.


1. Excellent market 1. Excellent market opportunityopportunity

Timing–Will the idea or window of opportunity look brief, it could just be a fad?

–If the window is brief, the entrepreneur will rush to open the business, usually with inadequate planning.

–Can lead to costly mistakes.Source: M.Barcelon, UPATBI

1. Excellent market 1. Excellent market opportunityopportunity

•Even with the right opportunity, the business will be successful if led by a person with strong entrepreneurial and management skills.–Entrepreneurs should have experience in the same industry or a similar one. Cannot go on OJT at the same time.

–Ideal entrepreneur is one who has been a successful entrepreneur in the same industry

–Have management experience, preferably with responsibility for budgets, profit and loss, sales.


2. The Technopreneur 2. The Technopreneur and the Management and the Management TeamTeam

•Entrepreneural frugality means:–Low overhead–High productivity–Minimal ownership of capital assets


3. Resources3. Resources

Sources of seed

capital

3.3Other

1.1Gov’t guaranteed loan

4.0Mortgaged property

6.3Venture Capital9Friends

12.4Employees/partners

12.9Family 14.4Bank loans

78.5%Personal savings


The 9 Fs The 9 Fs •Founders – first class entrepreneur•Focused – focus on niche markets, specialize

•Fast – decision making, implementation•Flexible – open mind, respond to change•Forever innovating •Flat - organizations•Frugal – low overhead, productivity high•Friendly – to their customers, suppliers, workers

•Fun – to be associated with an entrepreneur company Source: M.Barcelon, UPATBI

(c) 2006 UP Ayala TBI

Thank you!Thank you!

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Module 1.2 basics of technopreneurship