CGNB313 Technology Entrepreneurship Chapter 1 : Introduction to Technology Entrepreneur

Chapter 1 Outline The Entrepreneur’s Challenge The Entrepreneur Economics and the Firm Creative Destruction Innovation and Technology Summary

1 Summary Introduction to Technology Entrepreneur There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction. John F. Kennedy Summary What drives global entrepreneurship? The entrepreneur provides the creative force in order for capitalism (free enterprise) to work. Entrepreneurs strive to make a difference in our world and contribute to its betterment. They are also motivated by achievement, independence, and the accumulation of wealth. Chapter 1: Summary Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Entrepreneurs are people who identify and pursue solutions among problems, possibilities among needs, and opportunities among challenges. Chapter 1: Concept Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur For an entrepreneur, a challenge is a call to respond to a difficult task and the commitment to undertake the required enterprise. Chapter 1: Concept Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur The Elements of Overcoming a Challenge Able to deal with a series of tough issues Ability to create solutions and work to perfect them Can handle many tasks simultaneously Resiliency in the face of set-backs Willingness to work hard and not expect easy solutions Possess well-developed problem solving skills Able to learn and acquire the necessary skills for the tasks at hand Chapter 1: Table 1.5 Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur An opportunity is a favorable juncture of circumstances with a good chance for success or progress. It is the job of the entrepreneur to locate new ideas and to put them into action. Thus, entrepreneurship may be described as the identification and exploitation of previously unexploited opportunities. Chapter 1: Concept Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur An Attractive Opportunity Finding the Right Opportunity Timely Solvable Important Profitable Favorable Context The Sweet Spot Like to do the tasks Like the challenge Committed to do what is necessary Skilled at the needed tasks Willingness to learn Interests, Passions, Commitment Capabilities & Skills Chapter 1: Figure 1.1 - Finding the Right Opportunity Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur EA = (Y+I) – (W+R) Entrepreneurial Attractiveness (EA) Y = income; I= independence; W = work effort; R = risk; O = Other working conditions Scale 1-5 : 1 = low; 3 = medium; 5 = high Y+I = benefits W+R = costs EA = (Y+I) – (W+R) Chapter 1: Entrepreneurial Attractiveness, Page 11 - 12 Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur 2 Chapter 1: Table 1.8 – Example of New Opportunity Evaluation Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Entrepreneurial Capital EC = Ecomp x Ecomm ► Ecomp = Entrepreneurial competence is the ability to: 1) to recognize and envision taking advantage of opportunity and 2) to access and manage the necessary resources to actually take advantage of the opportunity ► Ecomm = Entrepreneurial commitment is a dedication of the time and energy necessary to bring the enterprise to initiation and fruition. Chapter 1: Entrepreneurial Capital Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Economic Value = Opportunity x Entrepreneurial Capital After T years the market value is: MV = M x C x EV = M x C x Ecomp x Ecomm where: M = management efficiency and effectiveness C = context Chapter 1: Economic Value Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur The intellectual capital of an organization is the talents of its people, the efficacy of its management systems, the effectiveness of its customer and supplier relations, and the technological knowledge employed and shared among its people and processes. Chapter 1: concept Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Economy Natural Capital Beneficial Outputs Financial Capital Undesired Waste Outputs Intellectual Capital Chapter 1: Figure 1.2 – A Model of the Economy Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Inputs The Firm Outputs Raw Materials Components & Modules Products & Services Financial Capital Physical Assets Technologies Chapter 1: Figure 1.3 – Transforming available inputs into desired outputs Technology Ventures: From Idea to Enterprise

The Firm’s Intellectual Capital Introduction to Technology Entrepreneur 1 The Firm’s Intellectual Capital Human Capital Organizational Capital Social Capital A firm’s theory of its business is how it understands its total activities, resources and relationships. Chapter 1: Figure 1.4 – Firm’s Intellectual Capital Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Waves of innovation throughout history Chapter 1: Figure 1.5 Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Dynamic Capitalism is the process of wealth creation characterized by the dynamics of new, creative firms forming and growing and old, large firms declining and failing. Creative Destruction is the entrepreneurial activity of destroying old models and creating new models of doing business. Chapter 1: Concept Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Summary : The critical ideas of this chapter are as follows: The entrepreneur as creator of a great enterprise The entrepreneur responds to an attractive opportunity A person can learn to be an entrepreneur The entrepreneur knows how to use knowledge to create innovation and new firms Positive entrepreneurship activity flows from a combination of entrepreneurial capital and intellectual capital that leads to productivity and prosperity The entrepreneur uses an appropriate organisational structure to achieve his or her goals Chapter 1: Summary Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Principle 1 The entrepreneur develops an enterprise with the purpose of creating wealth and prosperity for all participants – investors, customers, suppliers, employees, and themselves – using a combination of intellectual and entrepreneurial capital. Chapter 1: Principle 1 Technology Ventures: From Idea to Enterprise

“Entrepreneurial Skills Learned” Mark Zuckerberg (Facebook) Introduction to Technology Entrepreneur 1 DVD Video “Entrepreneurial Skills Learned” Mark Zuckerberg (Facebook) Description Zuckerberg talks about the entrepreneurial skills he acquired in college that led him to building Facebook. Chapter 1: DVD Video Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Mark Zuckerberg, Facebook Mark Zuckerberg is the founder of Facebook, a networking tool used by college students to meet people, reconnect with old friends and arrange events. The company just redesigned its Web site and received venture capital. Founded as Thefacebook in February 2004 by Mark Zuckerberg, Chris Hughes, and Dustin Moskovitz at Harvard, the website spread across campus and, within a few weeks, over half the undergraduate population had registered. The website then expanded to allow students from Columbia, Stanford, and then other Ivy League colleges to register. It became something of a network phenomenon, spreading rapidly to other schools, despite some competition from similar, local websites. Courtesy of http://www.accel.com/people/index.php, http://en.wikipedia.org/wiki/Facebook. http://www.msnbc.msn.com/id/6596533/site/newsweek, and http://www.seacoastonline.com/news/09082005/biz_nati/61811.htm. Related Links: http://www.facebook.com    Last Updated: Fri, Oct 31, 2008 Chapter 1: Video – Mark Zuckerberg Biography Technology Ventures: From Idea to Enterprise

“You Don’t Need to Drop Out of College” Jessica Mah, (inDinero) Introduction to Technology Entrepreneur 1 DVD Video “You Don’t Need to Drop Out of College” Jessica Mah, (inDinero) Description As undergraduate students at the University of California Berkeley, Jessica Mah and a friend had an idea for a product that solved their problems managing business finances. Mah describes the value of finishing college, and some of the early customer insights gained while building the first iteration of the product Chapter 1: DVD Video Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Jessica Mah, inDinero As co-founder and chief of inDinero, Jessica drives the development of inDinero’s product strategy, software development, and design efforts. She and her partners built the core product over the Summer of 2009, and the company has since raised funding from investors such as Y Combinator. Mah was the founder and technical lead behind internshipIN.com, which helped match students with internships. She’s been programming since age 9, building businesses since age 12, and finished high school at age 15. Mah holds degrees from Simon’s Rock the Early College, and from U.C. Berkeley, where she studied computer science and was president of the computer science undergraduate association. Mah has been mentioned in publications ranging from Inc. magazine to the Wall Street Journal, and has been featured on PBS to encourage students to pursue science and entrepreneurship. Related Links: https://indinero.com/    Last Updated: Wed, Oct 5, 2011 Chapter 1: Video - Jessica Mah Biography Technology Ventures: From Idea to Enterprise

1 DVD Video “Do What You Like to Get Where You Want” Introduction to Technology Entrepreneur 1 DVD Video “Do What You Like to Get Where You Want” John Melo (Amyris) “Technology Cycles Start with a Breakthrough Innovation” Judy Estrin(JLabs) John Melo, CEO of Amyris Biotechnologies, enjoyed building oscilloscopes, circuits and transistors - and yet he was a college dropout. In this clip, Melo comments on his non-linear career path and how his passion, personal interest, and sense of independence have propelled him from one episodic position to another. He states that he first looked for opportunities to do the things he loved to do, and then focused on the places he wanted to be. Estrin declares that technology cycles have to start with a break-through innovation, something significantly disruptive. When it happens we don't know it is a break-through technology, she notes. In time, however, applications are built around this technology, she adds. Chapter 1: DVD Video Technology Ventures: From Idea to Enterprise

1 Introduction to Technology Entrepreneur Chapter Exercise (see page 23, Exercise 1.2) Consider opportunities that have occurred to you over the past month and list them in a column Then, describe your strong interests and passions and list them in a second column. Finally, create a list of your capabilities in a third column. Is there a natural match of opportunity, interests, and capabilities? If so, does this opportunity appear to offer a good chance to build an enterprise? What would you need to do to make this to build an enterprise business? Opportunities Interests & Passions Capabilities Chapter 1: Chapter Exercise Technology Ventures: From Idea to Opportunity

1 Introduction to Technology Entrepreneur VENTURE CHALLENGE Select a high-potential opportunity that interests you and then use it for the venture challenge exercises at the end of each chapter. For example, you might consider one of these current trends in science and technology: mobile data applications, internet telephony, video podcasting, web services, nano-technology, clean technologies (including fuel cell, battery and solar), pandemic flu and biodefense treatments, and advancements in stem cell research. 1) Describe the opportunity that attracts you and why you think it is a new venture opportunity. 2) Describe the competencies and skills you and your team members possess. 3) What important stakeholders will you need, to be successful? 4) Describe the passion and commitment you have for the opportunity. 5) Is this a good opportunity for you? Chapter 1: Venture Challenge Technology Ventures: From Idea to Opportunity

Chapter 1 Complete