Technology Industry Policy

1
?Technology Industry Policy Management? High-Tec
h Venture Model Strategy
By Dr. Carter Tseng Founder CEO Little
Dragon Foundation Member Committee of
100 March 19 , 2004
2
Table of Contents
A. Hsin-chu Science Park P2 P 3 B. Start-up
Company P 4 - P10 C. Successful strategy
(1) P11 - P12 Cost Leadership D. Successful
strategy (2) P13 - P17 Differentiation E.
Successful Business Model P18 - P22 MICROTEK
China lab F. A Passion for Success P23-P24
3
Background

• ChinaLab2001 Now
• Incubator Venture Capital Mentors
• Acorn Asia _at_ Shanghai
• China Lab _at_ Beijing
• Little Dragon Foundation1992 Now
• Education , Environment V.C.
• EMBA Course
• CEO Training Course
• Public Company TCL, BOE
• ECO Foundation
• E-TECH1989 1997
• Communication Company
• CPEFax/ModemISDN/TACable Modem
• TransmissionU-GainHDSLH-PipeADSL
• MICROTEK1980 1988
• Computer Company
• MICE
• Scanner
• OCEAN 1988 Now

1
4
Hsin-Chu Science Park

• Establish Dec.1980
• Total Area 7 SQ Km
• Total Company 350
• Total Employee 100,000
• Ph.D. 1,300
• Master 17,000
• RD Expense 6
• Rev. _at_ yr 2000 us28B
• Productivity us280K Per man?Year

2
5
World-wide 1 Products
World Market share
1. Image Scanner 82 2. Foundry
77 3. NoteBook P.C. 72 4.
Desktop P.C. 62 5. Mother Board
58 6. Monitor 47
7. CD-ROM DVD 72 8. Switch Power
Supply 90 9. EtherNet Hub MODEM 10.
Video Card Sound Card Graphics Card
3
6
Starting up a Successful Business (8 Key steps)

• Motivation, Vision Mission
• Business Model Plan
• Building your Team
• Market, Technology Products
• Customers Value Proposition
• Fund Raising Financials
• Incentives
• Legal Matters

4
7
Profile of a Scientist/Engineer

• Enjoy working in the Lab/Computer
• Like to solve technical problems
• Pay attention to details Numbers
• Always look for Logic
• Do NOT like deadline or make decisions
• Do NOT Know much about finance
• Do NOT enjoy working with people
• Emotional about their way

5
8
Profile of an Entrepreneur

• Vision to Change the World
• (Realistic Vision)
• Willing to Learn and Adapt
• Open to Criticism
• Realistic what can be done
• Strong People skills
• Emotionally Balanced
• Drive, Confidence and Perseverance
• Comprehensive Awareness of
• Bigger Environment

6
9
Why Fails?

• EgoI cant be wrong
• Emotion It is my idea
• Overconfident
• Unwilling to Learn and Adapt
• No concept of Wants and Needs
• Tunnel Vision
• Lack of people skills
• Too deep into details

7
10
Ten Commandments for Startup(I) (Dont do it)

• Because you want to get rich or famous
• Because you want to be the boss.
• Because other people done it so easily
• Because your mom ask you to.
• Without a plan.
• By yourself

8
11
Ten Commandments for Startup(II) (Dont do it)

• By Completely follow that plan.
• With someone you dont want to marry to.
• Dont wait if you are ready.
• Dont give up too easy.

9
12
Key to Success

• Team Work
• Market Driven
• Focus, Focus Focus
• Dedication
• Commitment
• People, People People
• Incentive System
• Profit/Bonus Sharing
• Stock Option
• Personal Satisfaction
• Self-Motivated
• Decision Making
• Learning Growing

10
13
Successful Strategy 1 Cost Leadership
Target Lowest Overall Cost Execution 1.
Purchasing 2. Manufacture
3. Marketing 4.
Service ? Operational Competition
11
14
Low Cost Operation

• Overall Low Cost
• a. Design Standardization Simplification
• b. MFG Modular
• c. Sales No Inventory
• Partner Concept
• a. Out-Sourcing
• b. Strategic Alliance
• High-Tech Industry
• 25 cost down rate per year
• Efficient Turn Around TimeTSMC
• Effective Infrastructure
• a. Key Component (within 1 hr)
• b. Manufacture Cost Labor Availability
• c. Global Logistic Support

12
15
Successful Strategy 2 Differentiation
Target 1. Unique Positioning Via Innovation
2. No (or Less) Competitor Execution 1.
Technology 2. Product Concept
3. User-friendly Dont strive for
Something better, But make something
different. ( To Create Dominate emerging
Opportunities) ? Strategic Competition
13
16
Innovation (1) Technology
(a) MICROTEK Image Scanner Mainframe vs
PC (b) SST Flash Memory 5V vs 3.3V   ? No
Competitor !!
14
17
Innovation (2) Product Concept
AIPTEK Digital Still Camera (a) Traditional vs
New Generation (b) Camera vs Toy
15
18
Innovation (3) User friendly
Nokia Principal 0,1,2,3 0 No Manual
Needed 1 Button 2 Seconds response
time 3 No more than 3 clicks to get where
you want
16
19
Core Competence
a Unique product or service that can NOT be
easily imitated is the best weapon for any
future competition 1. Providing Customers
distinctive Values that others can NOT
provide 2. Value perceived by the customer is
the real core competence 3. Whenever it brings
you competitive advantage
17
20
10 Key Success Factors
1.Mission Statement 2.Core Competency 3.Balanced
Management Team (Match Right person with the
function) 4.Business Model 5.Defendable
Weapons 6.CEO Quality (General NOT
Technical Manager) 7.RD and Products 8.Executio
n Capability 9.Management Capability of Finance,
(Ability to Raise Capital) 10.Plan for Future
and Growth
18
21
MICROTEKS Winning Strategy

• Product Differentiation strategy
• (a) Innovation
• (b) Cost vs. Performance
• People Incentive System
• (a) Stock
• (b) Bonus
• MarketInternational Positioning
• (a) Siemens
• (b) AGFA

19
22
MicroTeks Contribution

• World Class Innovative Products
• (a) MICE
• (b) Scanner
• Create Image-Related Industry in Taiwan
• (a) Scanner80world market share
• (b) DSC
• (c) Laser Projector
• Modern Skill management Training
• More than 100 CEO Produced
• Brain Drain to Taiwan/Park
• Over 17,000 M.S. Ph.D.

20
23
Winning Team
1. Silicon Valley (a) Innovation (b)
Emerging Technology (c) System
Architecture 2. Taiwan (a) ODM (b)Time to
market (c) Management (d) Volume MFG (e)
Logistics 3. China (a) Massive Domestic
MKT (b) Low Cost MFG (c) Skilled
Labor ?Economic Golden Triangle?
21
24
ChinaLab (Accelerated Incubator)




22
25
A P a s s i o n for Success
Dr. Ina Mori Founder of Kyocera
1. Profit 2. Ambition 3. Sincerity 4.
Strength 5. Innovation 6. Optimism 7. Never
Give up
23
26
Modern Skill and Technology
1. English (60 days) www.EnglishFree.com 2.
CEOs eLearning www.CEO21.org 3. Carnegie Dale
Training www.DaleCarnegie.com
24