Timmons New Venture Creation
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Timmons New Venture Creation as PDF for free.
More details
- Words: 1,624
- Pages: 30
T h e C o l u m b i a
Engineers in Law and Business Development February 4, 2004
B r i t i s h
Assistant Professor, Civil Engineering Coordinator, Engineering Management Program
o f
Sheryl Staub-French, PhD, [email protected]
U n i v e r s i t y
Entrepreneurship and Engineering Management
Introduction
Takeaways 1. A broad-based education is essential. 2. Entrepreneurship can you help you to understand the business context. 3. Establish your business philosophy.
1. BroadBroad-based Education
What is Entrepreneurship? “"Entrepreneurship is a management style that involves pursuing pursuit of opportunity without regard to resources controlled.” “Any attempt at new business or new venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team, or an established business.” “A way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced – for the purpose of value creation.”
A Way of Managing and Leading! Reference: Harvard Business School and Babson College
1. BroadBroad-based Education
Some Important Entrepreneurial Skills Oral and written communication Basics of finance and accounting Teamwork Creativity and opportunity evaluation Real-time strategy and decision making Comfort with change and chaos Risk-taking Evangelism, selling, negotiation, and motivation thru influence and persuasion
1. BroadBroad-based Education
Who is the entrepreneur? High
Creativity And Innovation
Inventor
Entrepreneur
Promoter
Manager / Administrator
Low
High
General management skills, business know-how, and networks
Reference: Jeffry Timmons “New Venture Creation”
1. BroadBroad-based Education
Entrepreneurship and Education Common question: Can entrepreneurship be taught? Asking the wrong question! The right question is….
Can Entrepreneurs Learn?
Reference: Ray Smilor
1. BroadBroad-based Education
Engineering Management Education Engineering Management at UBC
Bachelor of Science in Engineering with a Minor in
Commerce Master of Engineering with a sub-specialization in Engineering Management MBA Programs in Commerce
Entrepreneurship, Information Technology and Management, Supply Chain Management, …
Master of Management Program in Commerce
(1) Management Information Systems, (2) Operations Research, (3) Transportation & Logistics
Engineering Management Programs
Master of Technology Management (e.g., U. of Waterloo) Master of Engineering Management (e.g., Stanford)
1. BroadBroad-based Education
Engineering Management Subspecialization A program for graduate engineering students within the Faculty of Applied Science. Allows students to get a more balanced education in both technical and managerial subjects. Requires 12 credits in management courses, with the following 2 core courses:
APSC 541: Technology Entrepreneurship for Engineers APSC 540: Business Decisions for Engineering Ventures
http://www.civil.ubc.ca/ems/
1. BroadBroad-based Education
Entrepreneurship and Education Entrepreneurial Education1
Revolution in higher education K-12 (30 states offer, 8 states require)
Entrepreneurship at UBC
125 invention disclosures, 227 patents, $10.4M royalties2 MBA module on Entrepreneurship Core Course in Engineering Management Sub-
specialization: APSC 541: Technology Entrepreneurship for Engineers (may be offered to undergraduates in 2004-5)
Stanford Technology Ventures Program
Mission: accelerate high-tech entrepreneurship education and research across top engineering schools worldwide http://stvp.stanford.edu/
1Source: 2Source:
Jeffry Timmons “New Venture Creation” University-Industry Liaison Office
2. The Entrepreneurial Process
A Model of the Entrepreneurial Process Communication
Business Plan Ambiguity
$
Resources
Opportunity
Fits and gaps
Creativity
Leadership
Team Source: Jeffry A. Timmons “New Venture Creation”
Exogenous Factors
2. The Entrepreneurial Process
Product Idea The world will NOT beat a path to the door of the inventor of the better mousetrap Idea itself does not have value, it’s all about execution “Being first” is over-rated It is one among many relevant variable factors Look for Discontinuities IP rich How much R, how much D &d
R
Source: Mark Leslie – Stanford University
2. The Entrepreneurial Process
The Market Market demand
Who is the customer? Are they reachable? How will the product or service be priced? Costs to deliver? Market share and growth potential?
Competition
Current competitors, strengths/weaknesses? How will the leader’s react and how quickly? Why can’t they do the same and put you out of business?
Market structure and size
Emerging and/or fragmented market? Proprietary barriers to entry?
Margin analysis
Helps to differentiate opportunity from idea What is your business model?
Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Team Entrepreneurial Leader Learns and teaches – faster, better Deals with adversity, is resilient Exhibits integrity, dependability, honesty Builds entrepreneurial culture and organization Quality of the team Relevant experience and track record Motivation to excel Commitment, determination and persistance Tolerance of risk, ambiguity, uncertainty Team focus of control Adaptability Leadership Communication
Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Resources
$
Minimize and control versus maximize and own
You don’t need all the resources in place to succeed Money follows high potential opportunities with a strong management team
Different types of resources
Financial resources Assets People Your business plan
Think cash last!!!!!
Understand and marshall resources, don’t be driven by them Doing more with less is a powerful competitive weapon Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Case Example of Entrepreneurial Process
$
Resources
Opportunity Business Plan Fits and gaps
Team Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Yahoo! 1995 Product
Hierarchical organization of WWW links Builds hand-crafted, intuitive paths “Not just a directory but a media property.”
Market
$
Current Demand: 2M users after one year Current Market Size: 40M users of internet Projected Market Size: 200M users by 2000, $2B in web-based advertising
Resources
Business plan, use of Netscape network
Team
Jerry Yang and David Filo
Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Yahoo! 1995 The Deal
Opportunity
Business Plan Fits and gaps
Team Source: Jeffry A. Timmons “New Venture Creation”
$
Resources $4M valuation VC offers $1M for 25% ownership
Assemble a complete management team
2. The Entrepreneurial Process
Social Entrepreneurship Entrepreneurial approaches to social problems Not a new phenomenon Blurring of sector boundaries
Innovative not-for-profit ventures Social purpose ventures Hybrid organizations: for-profit and not-for-profit
Mission-related impact becomes the central criterion, not wealth creation Difficult to assess value: markets don’t work well
Valuing social improvements Public goods and harms Benefits for people who cannot afford to pay
Reference: Gregory Dees: “The Meaning of Social Entrepreneurship”
2. The Entrepreneurial Process
Hamed Shahbazi in APSC 541 Thursday February 5 from 5-6:30 in CEME 1202 Founder and CEO of InfoTouch UBC Civil Engineering graduate of 1997 Top 50 Canadian technology growth companies Deloitte and Touche Fast 50 award
3. Your Business Philosophy
Ethics and Corporate Responsibility Why is it important?
Its your name! Corporate Optics Brand Management Corporate Identity There are many reasons - Its good business!!
Its not just good to be profitable, its very profitable to be good. Can you be successful without it?
Reference: Hamed Shahbazi
3. Your Business Philosophy
The Warren Buffett Way Who is Warren Buffett? The greatest investor in the world ($36B worth) Renowned for recognizing and picking great leaders to drive his companies His overall business philosophy on leadership is based on I.E.I.
INTEGRITY ENERGY INTELLIGENCE
Can’t have two out of three Reference: Hamed Shahbazi
3. Your Business Philosophy
Challenges Too much emphasis on making a “Fast Buck” Not enough focus on value creation Compensation without value creation leads to issues with commercial sustainability which eventually lead to LOSS Usually business transactions that are not win-win
Reference: Hamed Shahbazi
3. Your Business Philosophy
The Solution Driving real value for fair compensation “Fair” is not only based on customer perception (micro-viewpoint) but also the big picture – supply and demand as well as other elements. Value is always proportional to compensation Call it “business homeostasis”
Reference: Hamed Shahbazi
3. Your Business Philosophy
The Process Process is just as important as the end game Everyday business negotiations are the very building blocks of value creation Harvard Law’s Negotiation Program calls this Mutual Gains Negotiation
Reference: Hamed Shahbazi
3. Your Business Philosophy
Value Creation Inside-out Value Creation internally within a company is just as important as creating value for a corporation’s external stakeholders What does this mean?
Encouraging personal development By helping employees fulfill their personal goals, the
company can realize its greatest ambitions Tireless incentive based encouragement of integrity, respect and innovation contribute to a better working environment – this enhances productivity.
Reference: Hamed Shahbazi
3. Your Business Philosophy
Ethics Policies Severe forms of frustration in the organization are symptoms of culture failure. Managerial action to merely deal with symptoms of frustration instead of preventing its causes deepens the existing culture failure. Culture failure is a leading cause of failing to meet one's corporate responsibilities.
Reference: Hamed Shahbazi
3. Your Business Philosophy
Ethics Policies Do you want to just appear to have corporate responsibility, or do you want to truly have corporate responsibility? It takes more than words and policies. It takes a commitment to ethical reasoning skills and an ethical operating culture. However, long term sustainable success is just not possible without it
Reference: Hamed Shahbazi
3. Your Business Philosophy
Video of David Neeleman Founder and CEO of JetBlue
Conclusions Be patient Treat people with respect Find a job that you enjoy Think Big!
T h e C o l u m b i a
Engineers in Law and Business Development February 4, 2004
B r i t i s h
Assistant Professor, Civil Engineering Coordinator, Engineering Management Program
o f
Sheryl Staub-French, PhD, [email protected]
U n i v e r s i t y
Entrepreneurship and Engineering Management
Engineers in Law and Business Development February 4, 2004
B r i t i s h
Assistant Professor, Civil Engineering Coordinator, Engineering Management Program
o f
Sheryl Staub-French, PhD, [email protected]
U n i v e r s i t y
Entrepreneurship and Engineering Management
Introduction
Takeaways 1. A broad-based education is essential. 2. Entrepreneurship can you help you to understand the business context. 3. Establish your business philosophy.
1. BroadBroad-based Education
What is Entrepreneurship? “"Entrepreneurship is a management style that involves pursuing pursuit of opportunity without regard to resources controlled.” “Any attempt at new business or new venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team, or an established business.” “A way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced – for the purpose of value creation.”
A Way of Managing and Leading! Reference: Harvard Business School and Babson College
1. BroadBroad-based Education
Some Important Entrepreneurial Skills Oral and written communication Basics of finance and accounting Teamwork Creativity and opportunity evaluation Real-time strategy and decision making Comfort with change and chaos Risk-taking Evangelism, selling, negotiation, and motivation thru influence and persuasion
1. BroadBroad-based Education
Who is the entrepreneur? High
Creativity And Innovation
Inventor
Entrepreneur
Promoter
Manager / Administrator
Low
High
General management skills, business know-how, and networks
Reference: Jeffry Timmons “New Venture Creation”
1. BroadBroad-based Education
Entrepreneurship and Education Common question: Can entrepreneurship be taught? Asking the wrong question! The right question is….
Can Entrepreneurs Learn?
Reference: Ray Smilor
1. BroadBroad-based Education
Engineering Management Education Engineering Management at UBC
Bachelor of Science in Engineering with a Minor in
Commerce Master of Engineering with a sub-specialization in Engineering Management MBA Programs in Commerce
Entrepreneurship, Information Technology and Management, Supply Chain Management, …
Master of Management Program in Commerce
(1) Management Information Systems, (2) Operations Research, (3) Transportation & Logistics
Engineering Management Programs
Master of Technology Management (e.g., U. of Waterloo) Master of Engineering Management (e.g., Stanford)
1. BroadBroad-based Education
Engineering Management Subspecialization A program for graduate engineering students within the Faculty of Applied Science. Allows students to get a more balanced education in both technical and managerial subjects. Requires 12 credits in management courses, with the following 2 core courses:
APSC 541: Technology Entrepreneurship for Engineers APSC 540: Business Decisions for Engineering Ventures
http://www.civil.ubc.ca/ems/
1. BroadBroad-based Education
Entrepreneurship and Education Entrepreneurial Education1
Revolution in higher education K-12 (30 states offer, 8 states require)
Entrepreneurship at UBC
125 invention disclosures, 227 patents, $10.4M royalties2 MBA module on Entrepreneurship Core Course in Engineering Management Sub-
specialization: APSC 541: Technology Entrepreneurship for Engineers (may be offered to undergraduates in 2004-5)
Stanford Technology Ventures Program
Mission: accelerate high-tech entrepreneurship education and research across top engineering schools worldwide http://stvp.stanford.edu/
1Source: 2Source:
Jeffry Timmons “New Venture Creation” University-Industry Liaison Office
2. The Entrepreneurial Process
A Model of the Entrepreneurial Process Communication
Business Plan Ambiguity
$
Resources
Opportunity
Fits and gaps
Creativity
Leadership
Team Source: Jeffry A. Timmons “New Venture Creation”
Exogenous Factors
2. The Entrepreneurial Process
Product Idea The world will NOT beat a path to the door of the inventor of the better mousetrap Idea itself does not have value, it’s all about execution “Being first” is over-rated It is one among many relevant variable factors Look for Discontinuities IP rich How much R, how much D &d
R
Source: Mark Leslie – Stanford University
2. The Entrepreneurial Process
The Market Market demand
Who is the customer? Are they reachable? How will the product or service be priced? Costs to deliver? Market share and growth potential?
Competition
Current competitors, strengths/weaknesses? How will the leader’s react and how quickly? Why can’t they do the same and put you out of business?
Market structure and size
Emerging and/or fragmented market? Proprietary barriers to entry?
Margin analysis
Helps to differentiate opportunity from idea What is your business model?
Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Team Entrepreneurial Leader Learns and teaches – faster, better Deals with adversity, is resilient Exhibits integrity, dependability, honesty Builds entrepreneurial culture and organization Quality of the team Relevant experience and track record Motivation to excel Commitment, determination and persistance Tolerance of risk, ambiguity, uncertainty Team focus of control Adaptability Leadership Communication
Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Resources
$
Minimize and control versus maximize and own
You don’t need all the resources in place to succeed Money follows high potential opportunities with a strong management team
Different types of resources
Financial resources Assets People Your business plan
Think cash last!!!!!
Understand and marshall resources, don’t be driven by them Doing more with less is a powerful competitive weapon Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Case Example of Entrepreneurial Process
$
Resources
Opportunity Business Plan Fits and gaps
Team Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Yahoo! 1995 Product
Hierarchical organization of WWW links Builds hand-crafted, intuitive paths “Not just a directory but a media property.”
Market
$
Current Demand: 2M users after one year Current Market Size: 40M users of internet Projected Market Size: 200M users by 2000, $2B in web-based advertising
Resources
Business plan, use of Netscape network
Team
Jerry Yang and David Filo
Source: Jeffry A. Timmons “New Venture Creation”
2. The Entrepreneurial Process
Yahoo! 1995 The Deal
Opportunity
Business Plan Fits and gaps
Team Source: Jeffry A. Timmons “New Venture Creation”
$
Resources $4M valuation VC offers $1M for 25% ownership
Assemble a complete management team
2. The Entrepreneurial Process
Social Entrepreneurship Entrepreneurial approaches to social problems Not a new phenomenon Blurring of sector boundaries
Innovative not-for-profit ventures Social purpose ventures Hybrid organizations: for-profit and not-for-profit
Mission-related impact becomes the central criterion, not wealth creation Difficult to assess value: markets don’t work well
Valuing social improvements Public goods and harms Benefits for people who cannot afford to pay
Reference: Gregory Dees: “The Meaning of Social Entrepreneurship”
2. The Entrepreneurial Process
Hamed Shahbazi in APSC 541 Thursday February 5 from 5-6:30 in CEME 1202 Founder and CEO of InfoTouch UBC Civil Engineering graduate of 1997 Top 50 Canadian technology growth companies Deloitte and Touche Fast 50 award
3. Your Business Philosophy
Ethics and Corporate Responsibility Why is it important?
Its your name! Corporate Optics Brand Management Corporate Identity There are many reasons - Its good business!!
Its not just good to be profitable, its very profitable to be good. Can you be successful without it?
Reference: Hamed Shahbazi
3. Your Business Philosophy
The Warren Buffett Way Who is Warren Buffett? The greatest investor in the world ($36B worth) Renowned for recognizing and picking great leaders to drive his companies His overall business philosophy on leadership is based on I.E.I.
INTEGRITY ENERGY INTELLIGENCE
Can’t have two out of three Reference: Hamed Shahbazi
3. Your Business Philosophy
Challenges Too much emphasis on making a “Fast Buck” Not enough focus on value creation Compensation without value creation leads to issues with commercial sustainability which eventually lead to LOSS Usually business transactions that are not win-win
Reference: Hamed Shahbazi
3. Your Business Philosophy
The Solution Driving real value for fair compensation “Fair” is not only based on customer perception (micro-viewpoint) but also the big picture – supply and demand as well as other elements. Value is always proportional to compensation Call it “business homeostasis”
Reference: Hamed Shahbazi
3. Your Business Philosophy
The Process Process is just as important as the end game Everyday business negotiations are the very building blocks of value creation Harvard Law’s Negotiation Program calls this Mutual Gains Negotiation
Reference: Hamed Shahbazi
3. Your Business Philosophy
Value Creation Inside-out Value Creation internally within a company is just as important as creating value for a corporation’s external stakeholders What does this mean?
Encouraging personal development By helping employees fulfill their personal goals, the
company can realize its greatest ambitions Tireless incentive based encouragement of integrity, respect and innovation contribute to a better working environment – this enhances productivity.
Reference: Hamed Shahbazi
3. Your Business Philosophy
Ethics Policies Severe forms of frustration in the organization are symptoms of culture failure. Managerial action to merely deal with symptoms of frustration instead of preventing its causes deepens the existing culture failure. Culture failure is a leading cause of failing to meet one's corporate responsibilities.
Reference: Hamed Shahbazi
3. Your Business Philosophy
Ethics Policies Do you want to just appear to have corporate responsibility, or do you want to truly have corporate responsibility? It takes more than words and policies. It takes a commitment to ethical reasoning skills and an ethical operating culture. However, long term sustainable success is just not possible without it
Reference: Hamed Shahbazi
3. Your Business Philosophy
Video of David Neeleman Founder and CEO of JetBlue
Conclusions Be patient Treat people with respect Find a job that you enjoy Think Big!
T h e C o l u m b i a
Engineers in Law and Business Development February 4, 2004
B r i t i s h
Assistant Professor, Civil Engineering Coordinator, Engineering Management Program
o f
Sheryl Staub-French, PhD, [email protected]
U n i v e r s i t y
Entrepreneurship and Engineering Management
Related Documents
Timmons New Venture Creation
December 2019 22
New Venture Creation Invite 2009
June 2020 2
Entrepreneurship And New Venture Creation In India
April 2020 7
Financing The New Venture
June 2020 7
The Church: New Creation, Not New Israel
November 2019 16
Creation
November 2019 40More Documents from ""
Historical Release Dates Non Farm Payrolls
November 2019 18
Msci World Index 1978 1979 1980
October 2019 19
Reverse Engeneering
December 2019 15
Economic Shift Information Technology Impact
October 2019 15
