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Entrepreneurship

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Entrepreneurship Apply your engineering talent to create your dream company. But remember - starting a company is easy, building a successful business is hard! – PowerPoint PPT presentation

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Title: Entrepreneurship


1
Entrepreneurship
  • Apply your engineering talentto create your
    dream company.
  • But remember - starting a companyis easy,
    building a successful business is hard!

frank_at_zeniegroup.com www.zeniegroup.com
11 February 2009
2
  • StreetSmart Entrepreneuring
  • Frankly Speaking
  • Give me your email address Ill send ,pdf copy
  • Your Questions will influence theValue of my
    Answers.

3
DisclaimerI have an Agenda! But, its not
hidden.
Have you heard about the hammer that thinks
everything looks like a nail?
Im an entrepreneur and I actually do believe
that Entrepreneuring leads to the best
solutions to most business problems!
4
My Advice to Engineers
Engineering, Technology and Scienceare
Entrepreneurial Tools Customers, not
technology, are its foundation.
5
What a change !
  • In the late 1950s, 1960s and 1970s, we tried to
    instill successful big company practices into
    emerging companies - probably destroying many.
  • In the 1980s and 1990s Peter Drucker, Tom Peters
    and others challenged this.
  • Today, I believe we should be instilling
    entrepreneurial leadership into our largest
    companies - maybe we can save them.

6
  • OK What is an entrepreneur?

7
What is an Entrepreneur?
  • Entrepreneurs BUILD BUSINESSES through
    INNOVATIVE SOLUTIONSto UNMET CUSTOMER NEEDS.
  • (Note Entrepreneurs do exist in the public and
    non-profit sectors.)
  • Above all, innovation is not invention. It is
    a term of economics not technology.
  • Entrepreneurs create discontinuities They
    obsolete accepted practices and change behavior.

Peter Drucker
8
Fast vs. Right
  • Mature Businesses -
  • Right First Time
  • Entrepreneurial Businesses -
  • Fast First Time
  • Is this true? Why?

9
The Changing World of Innovation
Courtesy of Daniel H. Pink A Whole New Mind
Why Right Brainers Will Rule the Future2005 -
page 49
ATG Affluence Technology Globalization
Conceptual Age(creators and empathizers)
Information Age(knowledge workers)
Industrial Age(factory workers)
Maybe Walt Disneyand Steve Jobs are our
prototypes
Agriculture Age(farmers)
18th Century - 19th Century - 20th
Century - 21st Century
10
Franks Entrepreneurial PrinciplesThe
Fundamentals are Simple
  • Vision - what you hope to achieve through this
    venture.
  • Culture - a set of underlying, shared values.
  • Innovative Product/Market Strategy -what you
    will sell and how you will sell it.
  • Sound Business Model -how you will earn a
    profit.
  • Passionate Execution

11
Markets Dont Exist Only Customers
  • The Entrepreneurs Job is to
  • Identify potential customers
  • Understand their unmet needs, business economics,
    constraints priorities
  • Create innovative, high value-added solutions to
    these needs
  • Define new MARKET segments which enable you to
    communicate your benefits effectively!
  • Leverage your market segmentation for
    differentiation strategic advantage dominate
    a niche and build from there.
  • This is not an analytical or statistical
    exercise, rather its a face to face, creative and
    interactive customer experience.

12
What would you prefer?
  • You have a business with 10 million annual
    sales serving a 1 billion market. Choose 1
  • 1 market share spread across the entire market,
    or
  • 100 of a 10 million niche within the broad
    market.
  • Why?

13
Entrepreneurial vs. Traditional Market
Perspectives
Traditional Market DefinitionFor example - 1960s
Traditional US car manufacturers. Big, powerful
inefficient.
Today Prius Hybrids
Toyota mid 1960sSmall, fuel efficient Low
Costfollowed by variety of new models
Lexus - 1989One Luxury Model, LS400followed by
variety of new models
14
Intellectual Property
  • Market Power (MP) TRUMPS Intellectual Power (IP)
  • The more successful you become, the more
    competition you will attract.
  • How many great products were sustained
    monopolies? Likely response to your intellectual
    property
  • Respect your patent and invent an equivalent or
    superior alternative.
  • Respect your patent and purchase a license from
    you.
  • Respect your patent and abandon the market.
  • Ignore your patent and reverse engineer and copy
    your product.

15
MP Trumps IP
  • Monopoly
  • True Story - One of my companies files a patent
    suit against a much large competitor for patent
    infringement.
  • It took 9 years from filing suit to damage
    determination.
  • Legal expenses reached 2 million.
  • Management distraction - huge opportunity cost.
  • Jury determined patent was valid and the
    competingproduct infringed.
  • Judge confirmed infringement, but no willful act
    by infringer.
  • Final damages 50,000 interest for 9 years.

16
A Real Example
  • Founded in January 1999
  • All founders from Zymark Corporation
  • Ken Rapp, NEU 84 President CEO
  • FHZ co-founder Chairman
  • Headquartered in Hopkinton, MA
  • Website www.velquest.com
  • Some of todays customers
  • Pfizer, Glaxo SmithKline, Bristol-Myers Squibb
  • AstraZeneca, Eli Lilly, Johnson Johnson

17
Our Founding Process
  • Who is our customer? - From our prior experience,
    we decided to serve laboratories in the
    pharmaceutical, biotech and related industries.
  • We wanted to create Primary Demand rather than
    compete with existing products.
  • Customer Research - Using our contacts, we
    visited 50 companies to discover their unmet
    needs.
  • The CEO attended every meeting accompanied by at
    least one other founder.

18
Customer Research How We Do It
  • Find thoughtful, objective people.
  • Go to them face-to-face. Bring a colleague.
  • Look and Listen Very Carefully
  • Briefly explain your objective
  • Confirm hosts time constraints
  • Promise to share your findings
  • Ask open-ended questions
  • Follow-up with clarifying questions
  • Observe body language
  • Never ask what they want. Inquire about
    problems and current solutions. Customers will
    ask for incremental improvements to current
    solutions.
  • Your job is to create a far better solution
    discontinuities.
  • Send thank you note and ask if you can come back
    to share your findings and clarify and
    additional questions.

Best Question What keeps youup at night?
19
What We Found
  • Customers reported resource constraints because
    increasing work loads and tighter time
    constraints.
  • Digging deeper in manual paper-based systems
    the FDA requires layers of redundant checking to
    claim data integrity.
  • As regulations increased, more resources were
    diverted from doing to checking and documenting.
  • We discovered that 70 of their total laboratory
    resources were committed to compliance.
  • Analyst/Chemists
  • Data Creation, Investigations and Documentation

QA/Regulatory Inspections and Audits
Supervisors Data Reviewers Review, Checking and
Approval
20
The FDA
  • The FDA regulates US food and drug businesses.
  • While its a US agency, its a strong model for
    Europe and Japan. Many regulations are being
    globally harmonized because pharma is rapidly
    moving to global organizations.
  • Most FDA regulations for development and
    manufacturing are called Good Manufacturing
    Practices (GMP) and Good Laboratory Practices
    (GLP) they are quite similar. We use GMP to
    describe the family of regulations.
  • Redundant Checking vs. Computer Validation

21
VelQuests Niche
  • We created a new segment - GMP Electronic
    Notebooks
  • We are not a LIMS, ERP, Document Management
    System or many others - we make them more
    valuable.
  • If Microsoft is desktop, VelQuest is benchtop.
  • We replace paper notebooks with fully validated
    electronic data acquisition, documentation and
    quality verification.

22
  • Thanks
  • Questions and Discussion
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