Académique Documents
Professionnel Documents
Culture Documents
U n i v e r s i t y
Entrepreneurship and
Engineering Management
o f
B r i t i s h
Sheryl Staub-French, PhD, ssf@civil.ubc.ca
C o l u m b i a
Assistant Professor, Civil Engineering
Coordinator, Engineering Management Program
Takeaways
What is Entrepreneurship?
High
Inventor Entrepreneur
Creativity
And
Innovation Manager /
Promoter
Administrator
Low High
General management skills, business
know-how, and networks
Opportunity
Business Plan
$
Resources
Creativity Leadership
Team
Source: Jeffry A. Timmons “New Venture Creation”
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 R&d
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
Opportunity
Business Plan
$
Resources
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
$
Resources
$4M
Fits and gaps valuation
VC offers
$1M for 25%
ownership
Assemble a complete
Team management team
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
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
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”
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
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.
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
Be patient
Treat people with respect
Find a job that you enjoy
Think Big!
T h e
U n i v e r s i t y
Entrepreneurship and
Engineering Management
o f
B r i t i s h
Sheryl Staub-French, PhD, ssf@civil.ubc.ca
C o l u m b i a
Assistant Professor, Civil Engineering
Coordinator, Engineering Management Program