Statement of Work Please provide a hard copy signed by all group members by the end of class Monday (4/6), or delivered to JT Bexell mailbox by 5pm Please provide a hard copy signed by all group members by the end of class Monday (4/6), or delivered to JT Bexell mailbox by 5pm Include in your statement Include in your statement A description of the product or service A description of the product or service Your goals to be achieved by the end of quarter Your goals to be achieved by the end of quarter Specific sections to be included in your final business plan Specific sections to be included in your final business plan Your anticipated group work schedule Your anticipated group work schedule Schedule and content of the five updates you will provide during the quarter Schedule and content of the five updates you will provide during the quarter Resources you plan to use Resources you plan to use Specific business databases or reference resources Specific business databases or reference resources Most important- interviews you will complete with potential customers, community experts, OSU staff and other resources Most important- interviews you will complete with potential customers, community experts, OSU staff and other resources

Opportunity Recognition

Characteristics of a good opportunity High market share attainable (>20% after five years) High market share attainable (>20% after five years) Customers and users Customers and users Reachable Reachable Solves an important customer need Solves an important customer need Provides rapid customer payback Provides rapid customer payback Market is emerging or has fragmented competition Market is emerging or has fragmented competition Economics Economics Low initial investment required Low initial investment required Short time to break even Short time to break even Sustainable cash flow Sustainable cash flow Competitive advantages Competitive advantages Proprietary protection Proprietary protection Competition is slow or napping Competition is slow or napping Well developed contacts and network Well developed contacts and network Top notch people Top notch people

Some Technology Trends That Will Create Opportunities Life Sciences- genetic engineering, genomics, biometrics Life Sciences- genetic engineering, genomics, biometrics Information technology- internet, wireless devices, interconnectivity Information technology- internet, wireless devices, interconnectivity Nanotechnology- Devices 100nm or less for drug delivery, biosensors, and other applications Nanotechnology- Devices 100nm or less for drug delivery, biosensors, and other applications Energy - fuel cells, energy efficient appliances, new heating & cooling methods, energy transmission, “micro-energy” generation Energy - fuel cells, energy efficient appliances, new heating & cooling methods, energy transmission, “micro-energy” generation Green Technology - renewable fuel sources, recycle and reuse, bioremediation, recognition of the “carbon footprint” Green Technology - renewable fuel sources, recycle and reuse, bioremediation, recognition of the “carbon footprint” Robotics- teams of small coordinated robots for monitoring or safety functions Robotics- teams of small coordinated robots for monitoring or safety functions Security devices- personal identification, computer security, “smart” cards Security devices- personal identification, computer security, “smart” cards Human/Computer Interface- speech recognition, improved man- machine information transfer and sharing Human/Computer Interface- speech recognition, improved man- machine information transfer and sharing Entertainment- available anywhere, anytime, can be personalized Entertainment- available anywhere, anytime, can be personalized

Some Megatrends That Will Create Opportunities Aging of the baby boom generation Aging of the baby boom generation Increasing diversity of the people of the United States Increasing diversity of the people of the United States Rising middle class of developing nations Rising middle class of developing nations Pervasive influence of media- television, DVD’s internet Pervasive influence of media- television, DVD’s internet Decreased “information asymmetry” due to the internet Decreased “information asymmetry” due to the internet Two working parent families Two working parent families Change from centralized to distributed systems: energy generation & food production Change from centralized to distributed systems: energy generation & food production

Characteristics of an Attractive Opportunity Timely- a current need or problem Solvable- can be addressed in the near future with accessible resources Important- the customer deems their problem worthy of being solved Profitable- the customer will pay for the solution and allow a profit Context- a favorable regulatory, competitor and industry situation