EOTech

1
Beyond Science Starting a New Technology Business
Panel Discussion Sponsored by Optical Society of
America, Ann Arbor Section and Laser Institute
of America, Great Lakes Chapter April 10, 2007
2
Beyond Science Starting a New Technology Business

• Introduction of panel members
• State of Michigan Economy
• Key to Michigan economic recovery
• Requirements for starting and maintaining a
  successful technology business

3
Beyond Science Starting a New Technology Business
Dr. Tony Tai - L-3 Communications EOTech, Inc.
(Moderator) Prof Mohammed Islam - University of
Michigan, Coherix, Xtera Communications Wesley
Huffstutter University of Michigan, Tech
Transfer Office Skip Simms Ann Arbor
SPARK David Weaver Great Lakes Angels Ned
Staebler Michigan Economic Development
Corporation (MEDC)
4
Beyond Science Starting a New Technology Business
Michigan Employment Rate Versus the U.S.
Prof. George A Fulton, Institute of Labor and
Industrial Relation Research Seminar in
Quantitative Economics, University of Michigan
5
Beyond Science Starting a New Technology Business
Automotive Sales in the U.S.
Prof. George A Fulton, Institute of Labor and
Industrial Relation Research Seminar in
Quantitative Economics, University of Michigan
6
Beyond Science Starting a New Technology Business
What needs to be done to turn Michigans economy
around? You need to create a climate in which
business can be started, in which small business
can grow. Out of small businesses grow
tomorrows big businesses. How do you get bright
people with bright ideas for new businesses that
might work here to try them here? I dont know
the answer to that. But that would be the
question Id focus on Richard Schmalensee, dean
of MITs Sloan School of Management quoted by the
Free Press on March 30, 2007.
7
Beyond Science Starting a New Technology Business

• Requirements for starting a new technology
  business
• Distinct advantages over existing and future
  competing products
• Need to provide compelling reasons to buy your
  products or services
• A grow path exists
• Technology can be applied to multiple products
  and/or a large enough market exists to support
  continuous growth
• A solid and realistic business plan
• Cash requirements, revenue and profit
  projections, exit strategy
• Ability to convince others all of above
• Investors to fund your business
• Professional staff to join your company
• Customers to buy your products

8
Beyond Science Starting a New Technology Business

• Requirements for a successful new technology
  business
• Adequate funding
• Initial Phase Technical founders should have
  basic knowledge of all aspects of running a
  company
• Core competence in RD/product development,
  manufacturing engineering
• Also need basic knowledge of finance/accounting,
  marketing sales, manufacturing, HR, supply
  chain, etc.
• Transition Phase Build a strong Management Team
• Difficult to attract top talents to come to
  Michigan
• There are plenty of talents available within
  Michigan, particularly with the down sizing of
  many local companies

9
Beyond Science Starting a New Technology Business
Components of a Business Industry specific
Not industry specific Corporate management
Finance/accounting Human resources
Marketing Sales Information Systems
Research Development Product
Development Manufacturing Engineering
Manufacturing Material Procurement Supply
Chain management Quality Control and Systems
ISO/QS certification
Make use of local talents and keep them in the
State of Michigan. The down sizing/closing of
companies in Michigan makes many highly talented
and experienced managers available for small and
new companies. Most functions in a company are
not industry specific.