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 Wave The Economic Evolution 8000 BC - 1850 1960’s - present 1850 - 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)www.isoc.org Impact of the Information Age
Source: The Internet Society (www.isoc.org)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 India Eastern 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 ~2000 Intangible assets 2X tangible ~1980’s Tangible 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