Transcript E102 Entrepreneurship - California Institute of Technology

E102
Entrepreneurial Development
Kenneth A. Pickar
Visiting Professor of Mechanical Engineering
Vedran Coralic TA
Graduate Student Mechanical Engineering
Outline of today’s lecture
• Organizational
– Time, Place
• Exercise 1 Introduction and Expectations
– Yours
• Who are you?
• A remarkable fact about you
– Me
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Course objectives
Class Communications
Other Local Entrepreneurial Offerings
A word on teams
A word on projects
A word on iteration-based business development
A word on the technology-based businesses and the “science” of
marketing
• Exercise 2
– Introduction of Products
Organizational
• P/F, or graded (3,0,6)
– Take into account Grades or P/F when teams
are formed
• Place: here (BBB 24)
• Time: 2:30 to 4:00 PM
• Come to Lectures!
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Question and discuss premeses
Meet speakers before or after
Meet mentors before or after
Network
– Class attendance and participation is
20 % of grade
•Rule 1 of Success in Life
– Class attendance and participation is
20 % of grade
•Rule 1 of Success in Life
Show up!
– Class attendance and participation is
20 % of grade
•Rule 1 of Success in Life
Show up!
•Rule 2 of Success in Life
– Class attendance and participation is
20 % of grade
•Rule 1 of Success in Life
Show up!
•Rule 2 of Success in Life
Show up on time!
Class Exercise
•Who are you?
– Name, field
– A remarkable fact about you
•What are your expectations for this
course?
My Expectations
• Teams will function well to create a serious business plan
• Behaviors will be Entrepreneurial
– Self-starting
– Innovative
– Risk-taking
• Problems with projects or team will be discussed frankly within
team. Err on the side of asking for help prematurely. Vedran can
help.
• Attendance at lectures required - except for unavoidable reasonse-mail Vedran and I if you cannot make it
• At the same time, most of the learning will be done outside of
class. Work will be continuous throughout quarter. A good
business plan is iterative and not done in one all-nighter
Course Objectives
• To learn the basic steps to getting a business
started
• To learn some of the general precepts of business
through a business synthesis exercise
• To understand the excitement and pitfalls of
entrepreneurship and apply this to your own
personal ambitions
• Even if your ambitions are academically inclined,
you will learn some of the questions to ask about
potential commercialization
Means of Achieving Objectives
Writing a business plan
• Researching Markets
• Learning the components of what makes up a new business
• Learning how to network
• Making business presentations including elevator speeches and a final
pitch to Angels
• Suggested Textbooks (on reserve)
• Readings
• Learn team behaviors by working in a team
• Lectures and Discussion
• Guest Speakers
• Mentors
• See real business presentations by entrepreneurs to
The Tech Coast Angels
Course Objectives
•To teach you nearly enough to start a
business
•To get you funded after this course
Ken Pickar
• PhD Low Temperature Physics, University of Pennsylvania
– Thesis in Third Sound in Liquid Helium
• Bell Laboratories, Murray Hill, NJ 8 years
• Bell Northern Research, Ottawa, CA 5 years
• GE Corporate R&D 9 years
– Medical Physics, Radar, Lighting, VLSI, Power electronics
• AlliedSignal Corporation 5 Years
– Radar, Braking Systems, Turbomachinery, guidance systems
• Caltech 13 years
Boards
Public Corporate
• Level One (NASDAQ) sold to Intel 1999
• Neustar (IPO June 2005 NYSE) (1999-2011)
• Ness Technologies (NASDAQ) (2004-2008)
Private Corporate
• H2Scan
Non Profit
• LA Regional Foodbank
• South Coast Botanical Garden
• IMI wheelchairs for the developing world
My Interests
1. What is the most effective way of doing product
design- especially for the developing world
2. Why do technologies succeed or fail?
– Why do good products fail?
– Why do good companies fail?
– What is good? Ethical considerations
3. What is the best way of transitioning technology
from an academic environment to a business?
4.What are the factors in creating a successful startup
Mentors
• Do you have a personal one now?
• Who are they?
• What do they do?
1.
E 105 Mentors
Team advisor and coach, providing business guidance
2. Models and counsels business behaviors
1. team processes
2. structured meeting methods
3. business communication techniques
4. negotiating and sales skills,
5. overall entrepreneurial life lessons
3.
Provides resource assistance including books, experts, classes
4.
Provides functional business advice where the mentor is not a
specialist
5.
Provide contacts and introductory access to potential customers,
partners and funding sources.
Mentors
Methodology: to guide rather than teach, to offer an
experienced sounding board
Past experience has shown that teams that used the
mentor relationship had a much higher quality
business plan
Set up a regular conversations to discuss your issues.
Responsibility for communication is yours.
Al Schneider
• President (2007-9 ) Los
Angeles Network Tech
Coast Angels
• Co-founder, Vice-Chairman
Pasadena Angels
Robert Buce
Principal and Advisor- numerous
Start-ups.
Former Partner and member of
Board of Directors- KPMG
Consulting
Clients include CarsDirect.com, Intel,
Toshiba, National Semiconductor,
Verizon, Pacific Bell, Mazda, and
Samsung
Kevin Scanlon
• Tech Coast Angels, Pasadena Angels (President
2012- ).
• Senior Management, Director and Vice President
for Cancer at Schering AG, Berlin (1996-2000).
• Helped start a gene therapy company, Xenex
• President, International Society of Cancer Gene
Therapy (2001-2004).
• Editor, The Cancer Gene Therapy Journal;(1991present)
Ananath Natarajan
• Co-founder, CEO Infinite Biomedical Technologies
(IBT) in 1997 and has been the CEO of the company
since then.
• BSE in Biomedical Engineering and Electrical
Engineering Duke University
MSE in Biomedical Engineering from Johns Hopkins
University
• MD from the University Of Chicago Pritzker School
Of Medicine.
• Associate Professor of Clinical Obstetrics &
Gynecology USC
• Ananth has several publications, presentations, and
patents to his credit. Cited by Technology Review
magazine as one of the top 100 young (under 35)
Innovators and Leaders in Technology in the world
• Member of the Caltech Associates
Hal Zarem
• PhD Caltech
(advisor: Amnon Yariv)
• Silicon Light Machines
President and CEO
• JDSU
Vice President of Sales and Marketing
• Ortel Corporation General Manager
• Authored/Co-authored 34 publications
Bill Bloom
• Caltech Grad
• Medical Device Engineer, Program Director, Vice President
R&D and Vice President of Operations, with JPL, American
Hospital Supply, Baxter Labs, Raychem, MiniMed, Siemens
Medical, and IVAC.
• Corporate Career co-mingled with serial start-ups in the
clinical chemistry field (Manhattan Instruments-1974),
wireless medicine field (CardioNet-1997), portable computing
(Segwave-2002) and medical electronics (Medipacs- 2007).
Consultant to numerous start-ups in the Southern California
Area.
• Now managing a stable of top-quality race horses, five wholly
owned by Westmore Thoroughbreds. Trained by Dan
Hendricks at Santa Anita Racetrack.
Mentors
Mentors will be in Class Thursday, Jan 12 to
meet you. We will assign one mentor per
Team.
Library Research
Caltech Libraries
• Kristin Buxton will talk about business
resources.
• You are invited to make an appointment with
her for advice on secondary research in your
business area.
Technology Transfer Office
• Fred Farina will lecture in E 102 on
Intellectual Property
• He is also available for consultation on your
projects
Tech Coast Angels
• Executive Committee LA Chapter
• www.techcoastangels.com
• Investment network for Southern California
start-ups
• Each individual sees ~50 proposal/presentations
per year and makes individual investment
decision
• If interest is sufficient term sheet is negotiated
• 500K-1.2M
Tech Coast Angels
Class members invited for a TCA meeting at
Caltech
Fri, Feb 17
UCLA Anderson School of Business
Jan 6, Feb 3, Mar 9,
USC Marshall School of Business Jan 20, Mar 23
Attendance at one is required!
Limited seating per session (Car pools can be arranged)
Please select which you would like to attend
Sign non-disclosure one week before session
Send form to Vedran
DOE Student Business Plan Competition
Caltech e-club Business Plan
Competiton
Neighboring Institutions
• We have had full cooperation from Faculty at
UCLA (Anderson School of Business) USC
(Marshall School of Business).
• This could include supplementary lectures or
even a follow on Team project with MBA
students
• Design expertise can be gained through Art
Center College of Design
Caltech-MIT Enterprise Forum
http://www.entforum.caltech.edu
• Saturday, January 14, 2012
“Venturing in the Privacy Tug-Of War: Opportunities in Controlling Personal Dat
• February 11, 2012 ”Incubators”
• March 10, 2012 ”Social Entrepreneurship”
• April 14, 2012 ”Energy”
• May 12, 2012 ”Video Game Industry”
• June 16, 2012 ”Assistive Technologies”
Additional resources open to
students
• Entretech
• LARTA
• LA Business Technology Center in Altadena
Speakers
TBD but in the past
have included
• Steve Streit
• Chris Halliwell
• Henry Kressel
• Bill Collins
• David Baltimore
• Others. . .
The
• Luncheon
discussions
• Elevator speeches
Teamwork
• E102 is a team-based course
– 2-4 members of each team with 3 optimal
– Team Grades will be the same for each member
of the Team
Teams
Team Formation and behaviors
1. Applicability of Caltech Honor Code
1. Keep your commitments
2. Assume all that you hear is proprietary
1. No third party non-disclosure statements will be
signed between people in class
2. There will be no disclosure to third parties
without permission of principal
3. Team behaviors are not cheating!
Let’s review why
it’s such a great thing to have teams. . .
and why working in one is always difficult
Plusses
Real world
More thinking power
diverse skills
Comprehensive
Non-linear effects
accountability
Minuses
•Depend on nonworkers
•Different directions
•Coordination
communication
•Less ownership
•Less responsibility
Why are Businesses developed
by teams?
• Complexity
– Skill specialization
• Parallel Processing
– Workload
– Speed
• Insight
– 1+1=3
– self-correcting
• Motivational
– Don’t let the team down
Some Attributes of Successful Teams
• Leadership
• Commitment
• Integrity
• Common purpose and agenda
• Behaviors
– respect
– pitch in
– delegate
• How does this apply to Caltech teams?
Some guidelines
• Decide on your objective
• Choose a leader
– The leader can be rotated
• Choose roles
– who does what on team
• Choose means of communication
– e.g. e-mail, phone, web-site, face-to-face
– frequency of meetings (when and where)
• Decide on ground rules
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Show up at meeting
Show up on time
What to do when a team member is not pulling weight?
What to do if the goals are seen as not reachable?
What to do if you can’t agree
Guidelines (cont.)
For meetings
• Assign and rotate roles
– Time keeper, scribe, leader
– Have agenda (leave time for chatter)
– Take process breaks periodically, ask yourself
•Are you sticking to an agenda?
•Do you have an agenda?
•Is everybody contributing or are some dominating?
•Are you wandering off the subject?
•Are you reaching your expectations?
• Write down agreements and disagreements
• Write down actions and plans for resolution (who does what to
whom?)
• Review action items at beginning and end of each meeting
• Try and invent new ways of interacting
• What if there is a disagreement?
– Write down how you would resolve
• What are the appropriate behaviors for
success?
• Write down and everyone signs
Action List
Action(What)
1.
2.
3.
4.
5.
6.
Responsible(Who)
Time (When)
Team Quality Check
• We will poll students separately 3 times during
course to assess how effectively teams are working
• At any time, please notify Vedran if you have
problems that cannot be resolved by yourselves
• If difficulties persist teams can be changed
• My experience is that the No 1 cause of Team failure
is different agendas (disproportion of effort)
• Include Mentors in your Team!
Why Teams Fail? -after Bill Collins
1 work style, personality mismatch
2 role clarity
3. Agenda seen and unseen, clear goal
4. Respect and integrity showing up
FEEDBACK ON TEAMWORK PROCESS
Students often encountered these major problems in
their teamwork process:
Unclear task allocation, leading to delays
Inadequate structure of meetings, and lack of
written documentation on discussion issues,
leading to confusion on what needed to be done
and who was to do it
Lack of leadership, leading to lack of disciplined
progress toward goals, and, often, low morale
Inadequate planning, leading to time wasting and
miscommunication
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How do we know what project
we will be working on?
1. You will hear brief presentations on
candidate projects
2. You will choose your first, second and
third choices
3. Vedran and I will assign you to a project
based on your choice and the population of
individual projects
4. If you are unhappy with the result, we talk!
Choice of Projects (prelim list)
Take 1,2,3
1
2
3
4
5
6
7
Anchovi
bidtofly.com
Bionetbook
Cloud Control
Energy Audit
Energy Storage
Ensuring Your
Childs Future – A
New Insurance Plan
for College Students
8. Fluidica
9. ImaginLabs
10. Linking Genotype to
Phenotype –
11. Locality
12. Propane power
source
13. Self-healing
photocells
14. Solar Fuel cells
15. unu