Entrepreneurship Jerry Musnitsky

The World of Business 50’s & 60’s - Engineering –Build it in my garage and I am successful Engineers as CEO’s 70’s & 80’s - Marketing –Don’t care if it works or not, I can create a market influence demand, advertise it and sell it. Marketeers as CEO 90’s - Finance –Don’t care what you make, leverage, borrow and invest in junk bonds for a bigger return. Financiers as CEO

The World of Strategy Today –Do Everything Right And it still won’t work The User will Decide –No one has decision power –Everyone has veto power Information has Value Service has a Price Cover the World at Once!

Misunderstood Terms Operational Effectiveness –Total Quality Management (TQM) –Just-in-Time –Reengineering –Better, Faster, Cheaper Objective - Chase the Money

Better Definitions Strategy –The Quality of Management - TQM? –The Right Time and Place (Position) - Basketball –Systems Engineering (Integration) Technology - using it or creating Intellectual Property –Different Don’t count on the incompetence of your competitor Win contracts as high bidder! Don’t Chase the Money –Follow the Money in the Marketplace –Do the Right Thing and the Money will Come

The Role of Strategy Success is Predetermined Only Strategy creates Sustainable Advantage –Regardless of the technology or the pace of change Must have the Right Goal –Must have a different Value Proposition –Must be Unique –Must make Choices Must be focused on Profitability

Who’s Strategy Chief Strategist is the CEO –Must Take Risks The definition of an Entrepreneur is One Who Takes Risk! –Must Make Decisions A bad decision is better than no decision –Must be Schizophrenic (Flexibility) Ability to switch from Search to Track Ability to use Multi-Mode

–Keep the Goal and it will work Must do everything right Though only a few things get done right –Must be an Excellent Teacher Everyone must understand the Strategy –Marketing must sell it to the customers –Engineers must design towards it –The Inside sell is Harder than the Outside Sell – I spend most of my time translating English to English Business is Transparent and there are no secrets –Baseball versus [American] Football

What is Strategy? Identify a market, use your talents and capabilities, establish a plan that competitors are not implementing and cannot duplicate to create a Competitive Advantage that results in above average returns! Exit

What you need Market –Business Development Marketing, Politics, People Product/Service –Technology Intellectual Property, Application, People Organization Finance, Operations, People

Measurement Tools Market size (market cap) Funding availability –Need versus Desire We need [better] public education, but won’t fund it. We need to improve our environment, but no desire. Request for Proposal –Based on Specifications –Influence the Specification = Competitive advantage Win a Contract Profitable operations –You are what you win Increase corporate value

Entrepreneurship

Types of Businesses The Hobby The Pump & Dump The Smoke & Mirrors The Real Thing Lifestyle Firm –supports the owners & does not grow Foundation Company –Based on research & development and does not grow Gazelles –Very high growth potential High-growth potential –Attracts investors Government Blue Chips Four Groups Anyone Can Belong

Business Ventures WiMax Transportation Business-to-Business Technology Software Environment Medical Old Age Bagels in Paris Managing queues in France Service New Division –Intrapreneur Security Government –Mail –Voting –Services –Federal –State/local