Internal & External Venturingwebarchiv.ethz.ch/tmu/education/lectures/previous/... · Technology Management and Entrepreneurship Eidgenössische Technische Hochschule Zürich The

Prof. PhD. Fritz FahrniTechnology Management and Entrepreneurship

EidgenössischeTechnische HochschuleZürich

Internal & External Venturing

May 03, 2007

SS07 Discovering Entrepreneurship



Discovering Entrepreneurship SS 07Datum Dozent22.03. Fahrni29.03. Baschera05.04. von Krogh12.04. Boutellier19.04. Schönsleben26.04. Grote03.05. Fahrni10.05. Frauenfelder17.05.24.05. Fahrni31.05. Hoffmann07.06. Fleisch14.06. Bretschger21.06. FahrniUnternehmenskultur und Ethik

Technologie - und Innovationsmgm.

Vorlesung / ThemaUnternehmensführung

Unternehmensstrategie

Operations& Supply Chain Mgm.

Unternehmen und Volkswirtschaft

Kunden-, Markt- & Marketing Mgm.

Human Resources Management

Auffahrt

Information Technology

Internes und externes VenturingUnternehmen und Geld I intern

Corporate SustainabilityUnternehmen und Geld II extern



Internal and External Venturing

Objectives

• to understand / guess what it takes to be successfulas a „venture company“

• to understand the potential of innovation in large AND small companies (Venturing & Corp. Venturing)

• to know patterns of how small companies (existingSME) can profit from High Tech developments

• to enhance the entrepreneurial spirit among thestudents



Overview

1) Link to Innovation Management & Entrepreneurship

2) Venturing & Venture Capital

3) Corporate Venturing

4) KMU and High Tech Development

5) Points to Watch: Stumbling Stones in Venturing

6) Summary



12559e

=

Effectivity

+ Efficiency

+ Innovation

+ Corp. Culture

Entrepreneurship = To Win



?

To innovate/grow or to die?



Costomer needs

identify & develop

Knowledge /Science

Use & apply

Success

Market x Technology = Success

x =

12129a

How do Corporations innovate?



Easy Glider

12647



14624e

CorporateNet

Internet(Netscape, Sun)

Sick PatientHealthy Patient(Health Care)

Sport-Event

Media Event(Olympic Games)

Fashion

Logistics(Benetton)

Toy Store Corner

Dept. Store for Children(Toys´R´us)

Visions: To change the rules = to escape the common believes



What IT can do tomorrow

Time

Min

iatu

rizat

ion

and

cost

redu

ctio

n

(2) PCs

(3) Mobiles

(4) Smart Things

(1) Mainframe



Quelle: Gerd Wolfram - Metro



Pay per risk

To obtain the data, it may not be necessary to install additional in-vehicle devices, e.g. data from truck toll systems may be used as inputs

Consortium to install truck toll systems on German autobahns e.g. already intends to provide their data as input for route planning or fleet management systems

Progressive Insurance offers usage-based car insurance based on GPS and cellular technology

System was introduced in Texas in 1998

Source: Ident 05/02; http://www.progressive.com/newsroom/2nd_patent.asp



14612/13

Time

continuous

Product-/Market-Success

discontinuous

Time

Product-/Market-Success

Dynamics

Car Model 07 09 11



Market

Knowledge / Technology

Ideas/ConceptsProjects New Products

Filter

0002

The Horn of Innovation



Maturity

• optimize, rationalize• high efficency• market position• cash • exit in time

Ideas & Dreams:- Space- Science- Thinkers

Effort:- Organization- Managers- Engineers

Harvest:- Persuasion / Marketiers- Optimisation- Wisdom

Organisational and Managerial Requirements

Souce: according to Sommerlatte, T.; Deschaps, J.P., 1986

12122-2b

• set focus• speed• growth and

investment• CRM / think global• logistics / SCM

Growth-phase

• broad, many ideas• ask questions• knowledge networks• market and money aresecondary• results in market and prices are relevant

Development-phase ?

Phases of Innovation: Different Strategies of Success



12298e

Customers

Command &Control

under pressure

Customers

GoalsValues & Attitude

Co-owner

wisdom

Entrepreneurship: Different Leadership Styles

searching

Open SpaceOpen Space

Customer

Customer

Customer



Source: McKinsey & Company, Inc.,

Market Success

Business Idea

CapitalEntrepreneurial Team

12093

Innovation: From an Idea to Success



Overview

1) Introduction: Link to Innovation Management




6) Summary




12645-2

Venturing is a Source of Economic Growth

-4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0

Tota

l Ent

repr

eneu

rial A

ctiv

ity(T

EA-In

dex)

GDP-Growth in %Souce: Global Entrepreneurship Monitor 2003



Venturing

• When and how are new venture companies successful? The View of a Venture Capitalist

• How can larger companies profit from the innovativeness of smaller enterprises?

• How can smaller companies profit?

• Which are the best strategies?

12658



The Venture Capitalist‘s View(VC)

Examplesfrom

Emerald Technology Venture Fund

(formerly SAM Private Equity)

External Venturing



The Stages

Atte

ntio

nof

In

vest

ors

Fina

ncin

gD

ecis

ions

Development ofan Idea

Rea

lizat

ion

Start-up andExpansion

EstablishedCompany


Business-planning

12095

From an Idea to Success



Business planning in technology-basedstart-ups

Dirk Voelz

St. Gallen, August 21st, 2003



The Sample

KTI-Label Companies:49 Companies with up to 35 Employees and an annualturn-over from O.4 to 5 Mio. CHF

Sectors:Life Sciences 40%Information and Communication Tech. 24%Micro and Nano Technology 19%Other 17%

Founded: 1998 – 2001

Status: 2004

12650



Challenge: Measure success of young companies

Typical quantitative Measurement not applicablebecause basic data does not exist

1. What is success of a Startup?-> Survival after 5 years

2. What is „performance“ of a Startup?-> Combined self evaluation and expertevaluation

3. How qualified is the team?-> Self assessment?

4. How intensive did we prepare?-> Self evaluation of effort and intensity

12651



HighPotential

Performers

1

84 1

LifeSciences

Biotech

Micro &Nanotech.

Inf. & Com.Technology

Others

SVOX

Myocontract

Hocoma

Nanosurf

Bitplane

ESBATech

BridgeCo

CoreThermosys.

Smartec

Sensirion

Mimotech

Aqua+TechSinusPoint

Synova

Therastrat

Onaras

Dualsystems

Dartfish Sensoptic

Medlight

VHF-Tech.

Frimorfo

Junisphere

Medaxis

HTceramix

Glycart

TopField Problems6

2nd tierPerformers

3 3Runners To watch

Performance Evaluation of CTI-Label Companies Status 01.2004

Voelz, D. (2004)

12626



Successful Companiesvery detailednone

Less Successful Companies

Financial Planning

Market Analysis

Technology Planning

Financial Planning

Market Analysis

Technology Planning

Average degree of intensity

very detailednone

Average degree of intensity

general complete detailed

general complete detailed

Comparison of the planning behaviorof successful and less successful companies

12655



sehr detailliertdetailliert

vollständigallgemein

keine

0

1

2

3

4

5

6

7

Comparison of the planning behaviorof successful and less successful companies

successfulcompanies

less successfulcompanies

Intensity in financial planning

Number ofStartups

12656



Planning is relevant: Look at what you have ignored to date. Develop a holisticview onto your business. Use planning to handle the complexity of yourbusiness. Do not forget to talk about it to colleagues and customers. Analyze and discuss!

The plan itself is less relevant: Do not go on with concepts, that have proven to be incorrect, with assumptions, that no longer hold. Think about your plansregularly. What will happen, if you act like you planned? How will thischange the financial side? Learn and adapt!

Keep some options: To miss some goals is normal during the development of entrepreneurial companies. It will be less of a problem, if you are prepared. Be flexible!

A business plan is marketing: Market yourself towards potential investors. Write, about what they want to read.

Four Success Factors in Business Planning

12657



Overview






6) Summary




Corporate Venturing

• When and how are new venture companies successful?


• How can small companies profit?


12658



Corporate Venturing in Car Industry

Quelle: M. Stahl, Diss. 2002

highnoneinternal

external

Plac

ing

of A

ctiv

ities

Amount of Capital

Scouting

InternalInnovation

ExternalVenturing

CorporateVenturing

Technology Transfer

12661



Corporate Venturing: Options

Options:

– Competitive Financing of Innovation and R&D

– New Structures for new Activities(MBO, Spinoff’s, Out-Licensing, ..)

– New Forms of Cooperation(Coopetition)

– Smart Buy-Back

12662



Corporate Venturing: Other Examples

– NOVARTIS

– BASF

– SULZER

12662



Overview






6) Summary




Venturing





12658



• KMU der hochfunktionellen Galvanotechnik

• Anzahl MA: 35

• hochfunktionell hinsichtlich der verschieden-artigen Anwendungen von Beschichtungen für dieApparate- Maschinen-und Automobilindustrie

• technologieorientiert, um zusammen mit demKunden dessen Problemstellung zu lösen

1

Veralit AGZürcherstrasse 81, CH-8952 Schlieren

9. November 2005 TEK.-InfoanlassHans Bollier



• Leistungsbilanz von A wie Automobile bis Z wie Zuführtransportsystme

• Engagement für 700-800 zufriedene Kunden in der Schweiz und im deutschsprachigen Ausland

• Unsere Erfahrung und unsere Dienstleistungen bieten eine hohen wirtschaftlichen Kundennutzen


Das sind wir ...



• Anodisieren• Hartanodisieren• Hartematalieren• chemisch vernickeln• Veralit-Nislide®• Hartchrom• Veralisieren

NANO-Technologie


Das tun wir ...



• Tribologisch beanspruchte Schichtsysteme bilden das Zentrum des am Markt gut eingefjührtenLeistungsspektrums von VeralitTribologie (griech.: Reibungslehre) ist ein Teil des Maschinen- und Apparatebaus

• Die Pflege und Ergänzung des Leistungsspektrums ist die Grundlage für Veralit‘s Technologie-Orientierung

• Diese Ergänzung mit der Unterstützung durch die TEK.-Idee anzugehen, war der driver des Bedarfs


Woher kommt der Bedarf von Veralit gegenüber TEK.?




Tribologie und Formel 1



• Ist es möglich, konventionelle, kommerziellechemisch oder galvanisch erzeugte Schichtsystememit den tribologischen Eigenschaften:

- gute Verschleisseigenschaften oder- gutes Gleitverhalten

durch neuartige Legierungen und/oder Dispersionenvon NANO-Teilchen zu modifizieren in Richtung:

- gute Verschleisseigenschaften und- gutes Gleitverhalten


Bedarfsformulierung



bisher neu

PTFE Grösse 0.3 – 0.5 my 0.15 my = 150 NANO-MeterVolumenanteil 20 – 25 % 25 – 35 %Phosphor 7 – 9 % 10 – 11 %Visuell matt-grau s-glanz anthrazit

Nislide® : chemisch abgeschiedene Nickel-Schicht mit eingelagerten PTFE-Teilchen

Nickel-PTFENickel-PTFE

79. November 2005 TEK.-Infoanlass

Hans Bollier

Veralit‘s am Markt bereits erfolgreich realisierter Schritt in Richtung Anwendung der NANO-Technologie




Tribologie in der Anwendung von Nislide®




Tribologie in der Anwendung von Nislide®



• Herstellung und Markt-Verfügbarkeit der geeignetenNANO-Teilchen : Metalloxide

• Eigenschaften dieser Teilchen (Grösse bis zu 100 NANO-Metern = 1 zehntausendstel Millimeter) in dererforderlichen Anwendung: Herstellung von wässrigen Dispersionen als wichtige Komponente für eine produktionstauglicheGalvano-Chemie

• Herstellung dieser Dispersionen


Wissen, das von Veralit an der ETHZ abgeholt werden konnte



• Wissen, wie unerwünschte Eigenschaften der NANO-Teilchen in der Dispersion, wie z.B. Agglomeration, ggf. durch eine gezielte Modifikationen der Oberfläche reduziert/vermieden werden können


Wissen, das Veralit an der ETHZ abholen konnte



Overview






6) Summary




Venturing





12658



negative positive

1) the goal is only technologyor money

Entrepreneurial Value for Customers,Employees and Asset Owners

12128

Venturing: 7 ways to stumble



Value for:

Technology only is the instrument

Financers Co-workers

Innovation = Value = Entrepreneur‘s Task

Customers

12119



Costomer needs

identify & develop

Knowledge /Science

Use it!

Success

Market x Technology = Success

x =

12129a

How do Corporations innovate?



negative positive



2) orientation only short-termor only long-term

„Sustainability“

12128




Development

• (+/-) - plannable

• expected in the Market

• (+/-) bearable

• not plannable

• not expected in the market

• possibly unbearable

„CONTINUOUS“ „DISCONTONUOUS“

12089

Dynamics



negative positive





3) Money without marketmechanism

Competing for Funds and Milestones

12128





Market Success

Business Idea

CapitalEntrepreneurial Team

12093

From an Idea to Success



negative positive







4) we have a good basis Focus = what do we DO in future?Develop Key Capabilities

12128




What we have

Less: Products,Segments, Facilities Cost

A B C D

What we do

More: Innovation, Speed, Quality, Ability to react A

B C D

Time

14618

Skills



14624e

CorporateNet

Internet(Netscape, Sun)

Sick PatientHealthy Patient(Health Care)

Sport-Event

Media Event(Olympic Games)

Fashion

Logistics(Benetton)

Toy Store Corner

Dept. Store for Children(Toys´R´us)

Visions: To change the rules = to escape the common belief



Key Capability

Experiments

Problem solving

Source: Leonard-Barton

Key Capabilities = Corner Stones of Entrepreneurial Success

Import ofexternal Skills

Integration andApplication of new

Technologies

6455

Key Capabilities



negative positive







4) we have a good basis Focus = what do we do in future?Develpo Key Capabilities

Dream AND realize5) we produce new ideasevery day

12128




Innovation

= 1% Inspiration + 99% Perspiration

= Knowledge + Skill + Implementation + Mastering

12104

Innovation Management and Entrepreneurship



negative positive







4) we have a good basis Focus = what do we do in future?Develop Key CapabilitiesDream AND realize5) we produce new ideas

every day6) Not invented here Creative Curiosity

12128




We do not live long enough,

to make all mistakes ourselves.

12123

Not Invented Here



negative positive







4) we have a good basis Focus = what do we do in future?Develop Key CapabilitiesDream AND realize5) we produce new ideas

every day6) Not invented here Creative Curiosity

7) Innovation has to bechaotic

Build Vision and Structure

12128




Goal/Vision

Efficiency EffectivityCustomer

Innovation

Culture

Reduce TimeReduce Time

ReduceCosts

ReduceCosts

Inspirationfrom outsideInspiration

from outside

E-BusinessE-Business

Act GlobalAct GlobalGet to know your

customersGet to know your

customers

Setstandards

Setstandards

Change therules

Change therules

QualityQuality

Act like an EntrepreneurAct like an

Entrepreneur

Use your SkillsUse your Skills

14619-1a

Growth



Overview


2) Venturing & Corporate Venturing




6) Summary6) Summary



12133e-3

Leader

vision

intuition

conviction

determination

courage

Do the right things

Manager+

objectives

allocation

knowledge

perseverance

organisation

Do things right

+ Communicator

Make them known

The Entrepreneur



12099-2be

innovative

competentunderstandable

on-time

with self-confidence

accountablelearning

SuccessfulEnterprise

Entrepreneurship Business Excellence Values



Internal and External Venturing

Objectives

• to understand / guess what it takes to be successfulas a „venture company“

• to understand the potential of innovation in large AND small companies (Venturing & Corp. Venturing)

• to know patterns of how small companies (existingSME) can profit from High Tech developments

• to enhance the entrepreneurial spirit among thestudents

Documents

Internal & External Venturingwebarchiv.ethz.ch/tmu/education/lectures/previous/... · Technology Management and Entrepreneurship Eidgenössische Technische Hochschule Zürich The