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Technopreneurship:The IT ViewpointAndre Joseph T. FournierMasters of Business Process Management 2012Faculty of Science & TechnologyALAS 2011

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4 Types of EntrepreneurshipIncrementalRoutine business, modest novelty (new coffee shop, new BPO)ImitativeImitation of venture, same business model and template (new regional branch, franchised operations)

(Dorf & Byers)

4 Types of EntrepreneurshipRent-seekingBusiness that utilizes standards, regulations and laws to share in value of enterprise (licensing of patented ideas, products or trade secrets - Coca Cola Export)InnovativeBusiness based on innovation (new cure for infectious diseases, new production method to bring down drug cost, new DVD format, new memory chip, ICT-enhanced home appliance)

(Dorf & Byers)

Technopreneurship DefinedHigh tech ventures in ICT, electronics, internet, life sciences and biotech, such as: Cisco, Microsoft, Intel, Google, Genentech (upcoming: nanotech, materials, energy, environment)Service firms where technology is critical to their mission, such as: e-Bay, FEDEX, SMART money transfer, e-learning

Other definitions of TechnopreneurshipDelivery or design of High Tech product like Computer hardware or devicesUse of technology in the delivery or conduct of normal business activitiesA combination of both

More definitionsTechnopreneur the person who destroys the existing economic order by introducing new products and services, new forms of organization, use of new materials, etc.Destruction/Disruption by creating a new business or doing it within an existing one

Some successful Technopreneurs Sabeer Bhatia started Hotmail with $300,000 and sold it two years later to Microsoft for $400 million.Yahoo! began as a student hobby and evolved into a global brand that has changed the way people communicate with each other, find and access information and purchase things.Google was co-founded by Larry Page and Sergey Brin while they were students at Stanford University. Their IPO took place on August 19, 2004, raising $1.67 billion, making it worth $23 billion

More Successful TechnopreneurseBay was founded as a marketplace for the sale of goods and services for individuals. Amazon.com was one of the first major companies to sell goods over the InternetSkype was founded by 2 entrepreneurs from Estonia and was acquired by eBay for $2.6bn (1.4bn) . YouTube is a popular free video sharing website which lets users upload, view, and share video clips.It was acquired by Google in 2006 for $1.65 billion

4 February 2004

the empowered and connected customer

But this is just all a fairytale as of the momentThere are important considerations before we can move to a level where we can compete with foreign giantsSlapping the name Technopreneurship to a degree program without understanding the elements that make such a program work can prove to be disastrous.Certain elements or environment is needed for such a program to grow.

Some Basic FactsBusinesses start from ideas, but ideas alone do not make a business

Customers do not buy ideas, they buy products/services;

Customers pay the price; value is what they get

Three crucial components for business:

Excellent market opportunitySuperb entrepreneur (and management team)Resources needed to start the company and make it grow

More FactsEducation as a wholistic approach is needed to grow technoprenurial talentsTeamwork is essential-This cannot be done aloneEmphasis on Technical , managerial and entrepreneurial capabilities is importantDevelop the proper mindset to overcome weakness in Filipino culture

Technopreneurship Trilogy

WeaknessesFilipinos as investors are risk averse-SeguristaNo Collaboration-Kanya kanyaClass room and learning environment does not match the subject matter mostly pertaining to technologyOJT system tends to marginalize student traineesNo firm Academe-Industry linkageNO INTERNATIONAL CERTIFICATION

What is ITIL?ITIL is a documented set of best practices for ITSMIT service management (ITSM) is concerned with planning, sourcing, designing, implementing, operating, supporting and improving IT services that are appropriate to service needsITIL provides a comprehensive, consistent and coherent best practice framework for IT service management and related processes, promoting a high quality approach for achieving business effectiveness and efficiency in IT service management

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ITIL Service Lifecycle

Source: http://www.itservicemanagement-itil.com/tracer/itilv3-alignment/

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Myopic Vision of some InstitutionsFacebook ban spurs picket at ***** de *****GMANewsTue, Jul 19, 2011http://ph.news.yahoo.com/facebook-ban-spurs-picket-ateneo-davao-162505497.html

20Launched on 7 June 2010, tickets can be bought since 12 August 2010

The Delta ticket window

255 days 436 new customers per day

Facebook: most trafficked web site on Deltas flights

First to isolate the entire booking process in Facebook

European easyJet was first but referred back to their web page

Integrate into banner ads, ie complementary service vendors

Distributed Commerce put your shop where the customer is

Delta known for poor service

You can book flights on Facebook. Bad news: only on Delta

You have to be based in the US..20

Do we have Filipino Technopreneurs?Yes or No?

Dado BanataoFilipino ICT Hero

Dado BanataoBorn and raised in Barrio Malabbac, Iguig, Cagayan Valley, Banatao co-founded Mostron, Chips & Technologies, and S3 . Banatao is now regarded as a major contributor to the PC industry. He holds several patents including the first Windows graphical user interface (GUI) accelerator chip. He also was the first to push the idea of the "local bus" for the PC, and putting the Ethernet controller on a chip.

Dado BanataoChips & Technologies eventually went public in 1995, 22 months after it was established. This company was subsequently bought by Intel in 1997 for a reported 430 million dollars. His other company, S3 (start-up number 3) also went public and earned 130 million dollars in 1993, was sold to VIA Technologies for $323 million and continues to develop and market chipsets based on the S3 graphics technology.

Recent successes of DadoDado Banatao is now a multimillionaire investor. Dado decided to start his own venture capital firm named Tallwood Venture Capital with a capital of US$300 million, all of which came from his own pocket

Winston DamarilloDeveloped Gluecode Software as an open source application system providerSold Gluecode to IBM in 2005 for an estimated $100 millionLauncedh Morphlabs and continues to invest in start up IT companies.

Different Stages in ICT DevelopmentICT Consumer Manpower SupplierBPO destinationIncubation and Innovation HubICT HUBScience and Technology Hub

Successful ICT HubsSilicon ValleyTaiwan S & T HubBangaloreJapan S & T HubsSingapore S & T HubCyberJaya (upcoming)

Elements for a successful ICT HUBDevelopment of strategic talents thru Universities and schoolsCulture of Innovation and CreativityStrong Public-Private Sector partnershipPresence of Incubators and VCsPrivate sector takes the drivers seat in development

Davao City StrategyEmpower Student-Technopreneurs thru partnership with different Colleges and Universities with eventual goal of introducing a BS degree in TechnopreneurshipComplement with Mentor/Expert development thru scholarship assistance ICT Industry Sector StrengtheningPromotion of Davao City-PESO business plan competition

IncubatorInexpensive office space with shared servicesfor new startup businesses.Private SectorOwns/operates incubatorEntrepreneursBenefit from the cheaper cost of holdingoffice in an incubator. Benefits from trainingand business assistance.

savings, trainings, business helpUniversitiesGets revenue from research that gets commercialized. Consulting opportunities for faculty members. Internships for graduating students.

credibility,expert advice,technology, intellectual property

taxesBig IndustryEntrepreneurs could become part of their supply chain.

Entrepreneurscan becomesuppliers to bigcompanies

Incubator donations

universitydonations

consultanciesfor faculty

owns/operatesincubator

rent

revenues(c) 2006 UP Ayala TBI

DCCCII-PAHRDFDevelopment of Technopreneurship Course for ICT Schools and Universities in Davao City

Contrary to what some people say.....IT is not dead!

Other Strategies for SuccessScholarships provide a means of training staff and local businessmen in new methods, technologies and learningsJoin Business Plan Competitions such as PESO

Scholarships

2004 Philippine Emerging Startups Open. All rights reserved.41PESO: a brain gain initiative by Filipino graduate students at MITInspired by the MIT $50k (now $100k) Entrepreneurship CompetitionEstablished MIT PESO in 2004 with help from the MIT Public Service CenterMet up with local PESO organizers with MIT tiesLaunched PESO Challenge: a technology and innovation business plan competition now on its 3rd year

Mens et manusMind and hand MIT creed

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2004 Philippine Emerging Startups Open. All rights reserved.42Modeled After The MIT $100K CompetitionMost prestigious and successful entrepreneurship competition in the United States, formerly $50k competition17 years in the runningFacilitated creation of 60+ companiesAggregate value of $10.5+ billion If all the companies founded by MIT graduates and faculty formed an independent nation, the revenues produced by the companies would make that nation the 24th-largest economy in the world. - 1997 Bank of Boston study

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2004 Philippine Emerging Startups Open. All rights reserved.43

Technology and innovation orientationTeamwork and diversityWorkshops in entrepreneurship skill-buildingMentoring and tech transfer Post-competition monitoring and networking Teams own rights to plans

GovernmentIndustryVenture CapitalEntrepreneursPESOBusinessAcademiaSci. & EnggAcademia

PESO establishes linkages among key elements in the techno-entrepreneurship ecosystemThe PESO Challenge is more than just your usual business plan competitionObjective: Teams form start-ups to bring their business plans to market

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Other business plan competitions are those of: ENEDA (Entrepreneurship Educators Association), HSBC, JCI, Oriental Negros Innovation Awards, Chinese Filipino Business Club, Harvard Bus School (done once, in January 05). PESO is unique among all. This is not a school competition, not the NCAA or UAAP of business plans. IP rights to business plans should be with the teams, not schools. Team composition to be discussed in a later slide.Special emphasis on Coaching and mentorshipResources for winners after competitionDiversity of background and expertise within teamsNetworking across academic, industry, and investment sectorsTechnology- and innovation-rich ideasEntrepreneurial process excellence and professionalism

What YOU can do to help develop technopreneurs Be the point of first contact with students and young SMEs/EntrepreneursProvide support facilities for budding technopreneursBe Technopreneurs/investors yourselves!Spread the word/be disciples

Call To Action Organize and strengthen the IT sector in your area and provide a unified frontSupport SMEs/SMITEs in incubating businessProvide impetus for growth and developmentBe a strategic partner to in developmental efforts

Thank you, Gday and have a great conference