Can a Nation Create Entrepreneurs Part 2

CAN A NATION CREATE ENTREPRENEURS? - AN ENTREPRENEUR’S JOURNEY

Innovation, Expansion & Scotland a happy mix?

Growing a business in Scotland today

15 minutes romp through years of work in Innovation

and Economic Development

Joe Pacitti- Powerwall Space Frame Systems

What is happening in Business?

The accelerating pace of global change & emerging global markets is a reality

A demand for increasingly sophisticated, integrated & connected products

Short-termism & Shareholder pressures

The reality of OEM “Global Downsizing” & greater focus on “core products & services”

The “realisation-gap” between Ideas and real market opportunities either remains constant or is widening ?

To Survive in the New Age………

Shorter product life cycles- mean more product development/improvement

Achieve shorter & shorter “Time to Market” development timelines

The need to understand & handle convergent technologies (increased demands for sophistication)

......Innovation is the key

Innovation Drivers

Problem Solving

Convergence /Cross-technology Applications

Accidents/Opportunities

Collaboration

Innovation through Collaboration

You can influence Connections

Generate and engineer introductions

Opportunities Accidents

Collaborations

Collaboration, Innovation & Business Growth- one method !

SMEs

Corporate MNCs

MarketProduct

Product Qualification

Expert TeamConsultants / Academics

IPProduct

capacity to develop 10 to 15%

30% of useto partnering

Stays with MNC

IP within SMEavailable to partner

Academia

Pro

duct

IP

SMEs MNCs

Academia

Intermediaries

Finance, Advisors

Simple Concept !

SMEsMNCs

Academia

Collaboration Projects

Get the organisations together

We have a Simple Concept !

Find common areas to work on …

We act as the glue ?

Intermediaries

Finance, Advisors

http://www.7dayshop.com/catalog/images/products/prod_stationary_btape.jpg

Wider Company base

Opportunity Formation Process

Develop opportunitiesEvents/Workshops

Refinement of opportunity and

shortlist

Validation Launch

Concept

NewProducts

Briefing in more Detail to all interested Companies

Check propensity to collaborateOf companies

Final collaborative group

Refinement

Is there a Structure to this..?

However you don’t want to kiss ugly frogs do you? So it might be a good idea to have the skills to separate out the good-looking from the ugly! or you will need to do a bit of cosmetic surgery

Frog Kissing

Key Words: experts

collaboration communication trading zones mental models expertise knowledge capabilitiesconvergent commercialiseinnovativelatent or orphan IPasset sweating

Key Words: personal

energy creativepeople orientateddetermination……………………….

accidents

serendipity

risk-taking

Frog Dating Agency

Types of Innovation

Types of InnovationSteady State

Often exhibited by well organised global companies Over time can get predictable, competition can catch up Lower Risk Lower returns

Disruptive Smaller more innovative companies (SMEs & Start ups) External funders looking for good bets Higher Risk Higher Return

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Steady State Disruptive

Combine the 2 types through collaboration

“Technologies such as connections between the brain and machines, wearable health monitors, smart houses made of environment-sensitive materials are not science fiction anymore, but are scientifically feasible.

It is very likely that these technologies will emerge in the next 20 years. However some convergent technologies are already hitting the marketplace, among these are optical micro-electromechanical systems (MEMS).

Convergence promises to transform existing technologies into lucrative commercial endeavors, and many companies are investing heavily in research and development (R&D).

Business and industry are already beginning to restructure themselves, as network-based organizations follow fundamentally new management principles”

Technical Insights - a unit of Frost & Sullivan

Convergent Technologies

“Converging technologies will require collaboration across disciplines. A good metaphor for such collaborations is the kind of trading zone that emerges whenever human beings from different cultures interact. We must avoid trading zones that are dominated by one discipline or set of interests, and instead encourage multiple stakeholders to form a shared mental model of what needs to be accomplished.”

MICHAEL E. GORMAN Division of Technology Culture & Communications

School of Engineering and Applied Science, University of Virginia , USA

Convergence & Collaboration

"Most high-tech VCs concentrate on one of three areas: information technology (IT), life science or materials. What we're seeing most interesting at Alameda Capital are those products based on a convergence of two or all three of these disciplines, say materials for use within IT.

Convergence technologies promise to be extremely powerful, especially given the advances in nano- and micro-scale technologies. Companies are creating and investing in new materials with different structural and functional properties from anything previously known. The ultimate goal of this approach is deliberate and intelligent manipulation of atoms and molecules so that the resulting structure has desired properties and functions at the macro level."

Because these convergence technologies are so multidisciplinary, it is difficult for competitors to "get the formula right" and duplicate any development. This means intellectual property can be more easily protected ,that's very important to us."

M. Norman Wu, managing director of Alameda Capital, a $100 million early-stage fund focused on convergence technologies

Convergence & FUNDING

Examples

Burton Snowboards and Apple®

created a wearable electronic jacket

with an integrated iPod™ control

system

The Burton Amp jacket uses

SOFTswitch™ technology, allowing

the iPod to be controlled via a control

pad on the sleeve

It is made with GORE-TEX three-layer

fabric, and is waterproof, seam-taped

and machine washable

Priced at $499

Burton and Apple

http://www.sgmag.com/gear/burton/

Adidas says it has

created the world's first

"smart shoe“, called “1”,

by mating it with a

computer chip that

adapts its cushioning

level to a runner's size

and stride

Adidas

• "This is the first intelligent shoe ever," said Erich

Stamminger, global marketing director for Adidas. "It

senses, understands and adapts.“

• Priced at $250

The chip is implanted in the arch

of the sole and is capable of

making 5 million calculations per

second to adjust the heel

cushioning depending on the

runner's size and stride

Adidas

• The microprocessor is located in the arch of the shoe,

and drives a tiny screw and cable system that adjusts

the heel cushion depending on the signals sent back by

an electric sensor coupled to a magnet

• It is powered by a battery that conserves power by

adjusting the shoe while it is in the air during a runner's

stride, avoiding resistance from the ground

http://www.cbsnews.com/stories/2004/05/07/tech/main616149.shtml

Powerwall Story

Results/Offering• Greener – 60% less energy in construction, reduced waste – heating bill £70/year• Faster - 40% to 50% time reduction in build• Better Quality – 10 to 15% improvement over current standards• Cost benefit – 10% to 15% over site construction

Driver - to find a better and improved construction process

The Powerwall Volumetric Process

DesignFrame

ManufactureFrame Fit

Out

Erect & Finish

TransportInternal Fit

Out

Construction for the 21st Century

Questions

& Discussion

Sandy FinlaysonMBM Commercial LLP

Raising Money

In America between 1980 and 2005net new employment from companiesmore than 5 years old:

ZERONet new employment from companies less than 5 years old:

40,000,000

The Policy IssueWhy Bother?

• Pre crisis - £40/£45 Billion

• Post crisis - £35/£40 Billion (PWC)

• Scottish Loan Fund - £90 Million

Corporate Debt in Scotland

In 2009:-• VC Investment in Europe = 20% of America (Ernst & Young)• Scotland gets 2% of UK VC Investment• Scottish Equity Risk Capital Report 2008• £100 Million invested in Scotland• c/f $2.1 Billion in Israel• £789 Billion under management

Equity Investment

• Scottish Co-Investment widely recognised as a model of best practice

• Syndicated investment by Business Angels leads the UK

• Archangels are one of the biggest Business Angel Syndicates in the World

• Informatics Ventures• Technology Enterprise Centre• Bio Quarter

But it’s not all bad news!

• Cash from Customers – Clever Contracts• Asset Finance• Cash-flow Finance• Crowd Funding• Peer-to-Peer Lending

Alternative Sources of Finance

• Savings and Credit Cards• Family, Friends and Fools• Business Angels• You need

– Commitment and Determination– Clear Customer Focus– Prospects of Cash Generation– A really Good Plan– A Good Chairman– Contacts and Networks

Tactics and Strategy

Social before everything was social (but with a traditional kick-start!)

“I think Entrepreneurs are good enough and strong enough to look after themselves”

Lord KirkhamFounder of DFS

Extract from an interview available on:

The entrepreneurial revolution started 9 years ago in the North East – led by the great and the good, joined by ordinary people doing extraordinary things.

It was all about telling stories………..

Being an entrepreneur can be a lonely experience at times. Thankfully in the North East there’s a well established community. A ‘big society’.

It was all about telling stories

The people behind the stories ‘started’ the community....

Extract from an interview available on:

“Entrepreneurship teaches the rest of society a lot of good things about accountability, self-belief, working in teams, trust and leadership”

Julie MeyerAriadne CapitalOnline Dragon

It offers the opportunity to take advantage of a huge wealth of knowledge within the community – there’s always someone who has been where you want to go.



Those people knew how to do stuff.......and did it.....

And just by doing what they do, everyone can inspire those who aspire to follow in the footsteps of those who have been there, done that and got the t-shirt.




Lots more people wanted to tell their stories.....

“Talk to people who have been through the experience, they can often just point you in the direction of others but itwill fast track your progression.’”

Graeme LowdonNomad DigitalEF Board Member

It offers the chance to talk to people who have been through the experience - even if they just point people in the direction of others it will fast track their progress.




Lots more people wanted to tell their stories.....

And meet people......they just weren’t always sure who?...

It inspires those with aspiration at all levels to extend their ambition by exposing them to those who have turned their vision into reality.

It’s essential to create and build on communities within communities to find common interests and actions. It’s about understanding the value of links and looking beyond boundaries.

It’s an upward journey and one that everyone takes step by step as far as they can – but it needs to be stimulated and nurtured. It’s about encouraging and developing self-reliance.

Be inspired.

Get Connected.

Tap into knowledge.

Share your experience.

Can a Nation Create Entrepreneurs Part 2

Business

Transcript of Can a Nation Create Entrepreneurs Part 2