Engineering 90

Entrepreneur

I am somewhere in Africa. Take EN90 because Crawford is really cool! Are we still friends?

This class will

Focus on practical work projects

Product Development Marketing Business Plan

Introduction

Engineering 90
Ways of making effective decisions in managerial situations with a significant technological component.

Start-up

Corporation

Skills and knowledge applicable to both start-ups and large corporate environments. Projects will be more of the entrepreneurial type.

s I PO

CEOs

Graduation Hopes & Dreams Energy

President

Start-ups Entrepreneurs Achievements in Corporation

We are in the Third Wave

The Economic Evolution

Information Wave Industrial Wave Agricultural Wave

8000 BC - 1850

1850 - 1960s

1960s - present

Jeremy & Tony Hope, Competing in the 3rd Wave, Harvard Business School Press, 1997

Impact of the Information Age

Source: The Internet Society (www.isoc.org)

Impact of the Information Age

Source: The Internet Society (www.isoc.org)

Todays Competitive Landscape

Powerful and unpredictable consequences for countries, businesses and individuals.

Exploding technology Global market Government driven (deregulation) Changing force of competition Pattern of employment Rapid pace of knowledge is now the key resource

The Impact of Technology

Creating wide range of new business opportunities e.g. internet -- reaches millions of users
Electronic banking, education on demand, digital photography, virtual shopping and virtual factories

Technology is creating new forms of organizations Information based networks have changed the economic equation

Fewer mergers, takeovers and conglomerates

Development of alliances and economic partnerships

Use network to coordinate supply and marketing activities without owning them

Global Market
Flow of money and information immediately. Corporations of every nationality are buying, selling, and investing in growth regions from around the world from a central computer. Marketing is leading to homogeneous buying patterns. McDonalds arches are recognized everywhere. Global shipping via internet. New regions of economic prosperity (East Asia)
1 9 60
% world economic output East Asia

4% Malaysia is the largest semi-conductor producer. 25%

Toda y

Government Driven
Changing Governments Collapse of communism China economic power Emergence of East Asia Privatization of state-owned industries

Billions of new customers in: East Asia India Eastern Europe Deregulation: Airlines Telecommunications Utilities

Changing Force of Competition

Traditional industrial boundaries are being erased computing software Is Microsoft communication consumer electronics information Companies cover large industry spheres through alliances and partnerships AT&T E.g. Microsoft AOL Netscape This is an emerging trend! Industry

Changing Pattern of Employment

Massification Demassification

In the 1970s, 90% of people worked for organizations, , career at company was a lifetime commitment.

Smaller, more focused companies, entrepreneurs, start-ups, spin-offs. Tightly focused companies.

Knowledge - Key Economic Resource

Creative use of knowledge and technology.
~2000

Intangible assets 2X tangible Tangible assets 2X intangible

American Companies

~19 8

0 s

For service and high tech companies

5 - 15 times

Intangible - intellectual assets - skills and capabilities of knowledgeable workers

Success in the 3rd Wave

World-Class Managerial Performance in Making Knowledge Productive

Think Outside the Box

3 Types of Companies in the Third Wave

1. Rule Makers 2. Rule Takers

who build the industry (IBM, CBS, United Airlines, Merrill-Lynch, Sears, Coca-Cola) who follow industry (Fujitsu, USAir, Smith Barney, JCPenny)

3. Revolutionaries who rewrite the Rules (IKEA, The Body Shop, Charles Schwab, Dell Computers, Swatch, Southwest Airlines) Never has the world been more hospitable to revolutionaries and more hostile to industry incumbants Gary Hamel
Gary Hamel, Strategy of Revolution, Harvard Business Review, 70 1996

Killer Application (Killer App)

A new good or service that establishes an entirely new product category, and by being the first, dominates it, returning several hundred percent on initial investment CDs Personal Computer Electronic fund transfer First word processing program The Holy Grail of technology investors Killer apps create wealth and can jump start stale economies, but they can also be destructive by bumping off other technologies and entire companies

Downes and Min, Unleashing the Killer App, Harvard Business School Press, 1998

New Product Development Project

You will prepare a new product concept/proposal as your first product. Think in terms of the 3rd Wave - unique and creative killer app products in the information age

THINK OUTSIDE THE BOX