Temple engineering 2013

Technology Entrepreneurship Is it in your future?

Andrew Maxwell Ph.D.

Overview of presentation

What is technology entrepreneurship?

Why study technology entrepreneurship?

Biggest challenges for technology entrepreneurs?

Why form a new venture?

What are the critical factors for venture success?

How does this affect your design project?

Where can you find out more?

2

P. Eng. (Imperial), MBA (LBS) Ph.D. in Management of Technology Chief Innovation Officer, CIC Ass. Prof. Fox School of Business/College of Eng. Co-founder 4 technology startups, coached over 100 Taught at U of Toronto/Waterloo Founded U of Toronto’s technology incubator Teach technology entrepreneurship online / in class

Andrew Maxwell Ph.D.

3

What is technology entrepreneurship?

“An act of innovation that involves endowing existing resources with new wealth producing capacity not restricted to a new technological innovation that results from research and development, or to an innovative cost reduction process, but maybe a new application for existing technologies, a product or service innovation or a new way or place of doing business”

Peter Drucker

Two types of technology entrepreneurs: Develop technology to drive a new venture Utilize technology to serve unmet market need

4

What makes a successful Technology Entrepreneurs?

Combine technological ability, business skills and entrepreneurial traits

Able to manage / anticipate technology development Anticipate market needs Strong organizational, leadership and financial skills Able to find and form partnerships Passionate, committed and desire to have an impact Deal with business growth issues: raising external

finance, taking on business development role5

Why study technology entrepreneurship at Temple?

Traditional jobs for engineers not as easy to obtain Most new technologies launched in startups Engineers should look to understand technology

entrepreneurship as an option Taking technology entrepreneurship course helps you:

• Understand link between technology development / market demand• Appreciate the performance and market risks• Provide skills and tools that will help you in your career• Help you work better with entrepreneurial technology companies• Develop a possible entrepreneurial roadmap

.

6

Example from classBufferbox class presentation (Uwaterloo)

7

Complete presentation: https://vimeo.com/31990205Company web site: www.bufferbox.comBufferbox in 2 minutes: http://vimeo.com/59006368

What can you learn in a technology entrepreneurship class?

Help link design project to a market need Understand market validation / venture creation process Build high-performance technology/business teams Identify the critical factors for venture sucess Anticipate and overcome challenges of raising money

Entrepreneurship and commercialization of technological innovation recognized as drivers regional wealth

Enhance your value in the competitive job market AND help you ascertain if entrepreneurship is in your future

8

What are the biggest challenges for engineers?

Change from science of technology to science of people: Learn how to become a leader and team builder Understand how and why customers adopt new products Be willing to share control with multiple stakeholders Solve critical problems - develop decision processes Make decisions without complete information Build confidence in team, investors and customers

Understand the technology is not the solution, but a means to provide customer value

9

Lessons from academics

Problems relying on individual experience: Sample size is small Tendency to rely only on successes

Problems relying on theory: Based on what should happen – not what does happen Ignore complexity – to provide simple prescriptions

Motivated my research: Venture characteristics that lead to success not failure Entrepreneur characteristics that lead to success not failure How investors make investment decisions

10

Eight critical characteristics for venture success

Market adoption Market potential User acceptance Route to market Technology stage Barrier to entry Entrepreneur experience Financial viability

11

Twelve characteristics of successful entrepreneurs Capability:

Competence, critical thinking, new resource skill

Experience: Prior activities, relevant knowledge, education

Traits: Confidence, extraversion, openness,

agreeableness, conscientiousness

Relationship building: Trusting, able, trustworthy, communicative

Highly motivated to have impact – but might have to choose between maximizing cash or being king

12

13

What investors look for

Solutions that create a new value for customers Have a significant technology advantage Able to achieve a first mover advantage Scalable and in a dynamic and growing market Able to show benefits of new venture creation Have a management team that is capable Capable of building long-term relationship between

investor and management team Andrew’s TEDX UW talk on trust

Full presentation 2 minute presentation

Why form a new venture, rather than use an existing corporation? Business opportunity might be too risky Business might disrupt market & challenge incumbent Entrepreneur’s commitment essential for success Existing companies unable to see opportunity, or too

interested in looking after existing business Alternate partnerships required for success Corporate culture and processes might be too slow

However, if complementary assets, large dollars, or strong brand required - existing company might be optimal

14

How do these insights influence your design project?

Design project one of highlights of undergrad course Use it to solve real problem, and understand application To commercialize –

Understand value proposition Evaluate competitor alternates Anticipate how people will make adoption decision

Brainstorm commercialization options Plan A through existing company (how do you choose) Plan B through start up (your role and your team)

Build team consensus (who owns/does what)

15

BufferBox - Let us handle your package

Google acquires Bufferbox - December 2012

Potential outcomes

Action itemswww.fox.temple.edu/iei

If you are interested in an entrepreneurial career: Get involved in Entrepreneur Student Association -

meeting every Wednesday 12.00 -1.00 in Alter 503 BYOBB – business plan competition – join a team Entrepreneur workshops – every Thursday 4.30 –

6.00 in Alter 503 Course: Entrepreneurial engineering Demo class: https://secure.vidyard.com/dashboard?

direction=desc&order_by=created_at&page=12&rollup=day

17

Thanks for your time

Questions?

Andrew Maxwell

Email: [email protected]

Office: Alter Hall 551

Blog: http://www.DrAndrewMaxwell.com

18