Strategic Focus versus Nimbleness

This week I want to discuss the importance of strategic focus, while still being open to possible opportunities, sometimes called corporate “nimbleness,” which may seem like a contradiction. I am a strong believer in strategic focus, however I have also personally experienced a case where an “openness” to opportunity transformed the enterprise from a pedestrian company into a Silicon Valley legend. Ascend Communications was “focused” on ISDN based video conferencing with a modest and profitable OEM agreement with AT&T. However, AT&T came to Ascend and asked if it could solve a much bigger problem…


This week I want to discuss the importance of strategic focus, while still being open to possible opportunities, sometimes called corporate “nimbleness,” which may seem like a contradiction. I am a strong believer in strategic focus, however, I have also personally experienced a case where an “openness” to opportunity transformed the enterprise from a pedestrian company into a Silicon Valley legend. Ascend Communications was “focused” on ISDN based video conferencing with a modest and profitable OEM agreement with AT&T. However, AT&T came to Ascend and asked if it could solve a much bigger problem…

Nimbleness: Strategy or Opportunism?

I am a strong believer in strategic focus, however I have also personally experienced a case where an “openness” to opportunism turned the enterprise from a pedestrian company to a Silicon Valley legend. Ascend Communications was “focused” on ISDN based video conferencing with an OEM agreement with AT&T. However, AT&T came to Ascend and asked if it could solve a much bigger problem…dial-up access to the Internet over the voice switches was overloading them. 90 days later, Ascend delivered the solution, and the rest is Silicon Valley legend. The Ascend MAX became the global industry standard for dial-up Internet access, and the company the most successful SV company in 1996. So it always pays to keep your eyes and ears open.


Another Example of the Accelerated Corporate Life Cycle: Nimbleness

I am a strong believer in strategic focus, however I have also personally experienced a case where an “openness” to opportunism turned the enterprise from a pedestrian company to a Silicon Valley legend. Ascend Communications was “focused” on ISDN based video conferencing with an OEM agreement with AT&T. However, AT&T came to Ascend and asked if it could solve a much bigger problem…dial-up access to the Internet over the voice switches was overloading them. 90 days later, Ascend delivered the solution, and the rest is Silicon Valley legend. The Ascend MAX became the global industry standard for dial-up Internet access, and the company the most successful SV company in 1996. So it always pays to keep your eyes and ears open.

Is It Better to Be Strategic or Opportunistic?

I spoke with contributor Don Sull, who teaches strategy at MIT and the London Business School, about the tension between scholars who put sustainable competitive advantage at the center of strategy and those who argue that some industries are changing too quickly to allow for sustained performance. Here’s our edited conversation:

Who’s right — the “sustainable advantage” traditionalists or the “transient advantage” challengers?

They both have something useful to say. Let’s borrow some language from political philosophy and think in terms of thesis, antithesis, and synthesis.

Okay – what’s the thesis?     

Start with Michael Porter. His most brilliant insight was that companies compete on a bundle of connected, mutually reinforcing activities and resources. That bundle allows the company to create value in a way that can’t be imitated. (Ikea, for example, has figured out how to get customers to pay more than you might expect for furniture that they have to assemble themselves…thus keeping IKEA’s costs low. There’s a very sophisticated, interlocking set of choices behind the advantage they’ve created.) The people who came along later and talked about competing on competencies and resources – these are all extensions of Porter’s thinking. So that’s sustainable strategy.

It’s trendy to say that sustainable competitive advantage is dead. Empirically, this is simply not true. Microsoft is in the supposedly volatile technology sector. They’ve missed almost every technological breakthrough of the past decade — and yet they earned $237 billion in operating income from 2001 to 2013 working off a strategy that was in place in the mid-1990s. It’s easy to get caught up in the hype. Sustainability still matters.

But there are plenty of businesses that appeared to be unassailable at one time that turned out to be vulnerable.

Right, which brings us to our antithesis. Another group of people had a key insight – let’s call it the opportunistic view – which is that another way to create economic value is to seize a new opportunity. Firms often use an innovative technology or a new business model to seize the new opportunity and they typically disrupt someone else’s business in the process. So this view is often associated with innovation or disruption. The core, however, is creating value by seizing new opportunities.

It’s easy for people in academia to take rhetorical shots at each other over this divide. But by and large managers understand that they need to do both things – create a difficult-to-imitate competitive position, but also seize new opportunities, find new ways to compete.

That raises a key question — how do you balance the two needs?

Here’s where we get to the synthesis. There have been several important insights. Michael Tushman and Charles O’Reilly introduced the idea of ambidexterity. It’s incredibly difficult for a company to both exploit an existing advantage and explore a new one. So it makes sense for one business unit to focus on the incumbent business and for a mostly separate unit to create a new business — with both units answering to the same corporate head. There’s a lot of good evidence that this approach works.

Another approach is to run a portfolio of businesses. GE, Johnson & Johnson, and Samsung all do this successfully. Over time, you move into new businesses and out of older ones. A good chunk of the economy runs this way. When done well, it works.

HBR ran an article by Todd Zenger recently that was interesting, claiming that you can use your mutually reinforcing system of activities and resources as a platform to catch new opportunities. He has a nice analysis of how Disney does this. It’s similar to what Chris Zook and James Allen have said about adjacencies: you find opportunities that fit your core.

Then there’s the horizons view – which is a very practical approach. It says that you focus some resources on sustaining your business, some on incremental change, and some on disruptive businesses. LEGO is a great example. The CEO has 100 people working on the core business, 20 or so on a slightly wider range of opportunities, and fewer than a dozen on innovations that could fundamentally disrupt the company’s business model.

The corporate change literature fits in here, too, though it gets away from the strategy/innovation debate. These are the people who claim that Polaroid should have seen what was coming and turned itself around. But this is incredibly difficult to do if you are running a single, focused business. I won’t say nobody’s done it. But a lot more have failed than succeeded.

The bottom line, then?

The key to success in today’s volatile markets is strategic opportunism, which allows firms to seize opportunities that are consistent with the bundle of resources and capabilities that sustain their profits.

Quantum Computing Takes Center Stage In Wake of NSA Encryption Cracking

In the late 1990’s, I participated in the creation of the “point-to-point tunneling protocol” (PPTP) with engineers at Microsoft and Cisco Systems, now an Internet Engineering Task Force (IETF) industry standard. PPTP is the technical means for creating the “virtual private networks” we use at UBC, by encrypting “open” Internet packets with IPSEC 128 bit code, buried in public packets. It was an ingenious solution enabling private Internet traffic that we assumed would last for a very long time. It was not to be, as we now know. Most disturbing, in the 1990’s the US Congress debated giving the government the key to all encryption, which was resoundingly defeated. Now, the NSA appears to have illegally circumvented this prohibition and cracked encryption anyway. But this discussion is not about the political, legal and moral issues, which are significant. In this post I am more interested in “so now what do we do?” There may be an answer on the horizon, and Canada is already a significant participant in the potential solution.


In the late 1990’s while I was with Ascend Communications, I participated in the creation of the “point-to-point tunneling protocol” (PPTP) with engineers at Microsoft and Cisco Systems, now an Internet Engineering Task Force (IETF) industry standard.  PPTP is the technical means for creating the “virtual private networks” we use at UBC, by encrypting “open” Internet packets with IPSEC 128 bit code, buried in public packets. It was an ingenious solution, enabling private Internet traffic that we assumed would last for a very long time.  It was not to be, as we now know.  Most disturbing, in the 1990’s the US Congress debated giving the government the key to all encryption, which was resoundingly defeated. Now, the NSA appears to have illegally circumvented this prohibition and cracked encryption anyway. But this discussion is not about the political, legal and moral issues, which are significant.  In this post I am more interested in exploring the question: “So now what do we do?” There may be an answer on the horizon, and Canada is already a significant participant in the potential solution.

As it happens, Canada is already at the forefront of quantum computing, a critically important new area of research and development, that has significant future potential in both computing and cryptography.  I have previously written about Vancouver-based D-Wave, which has produced commercial systems that have been purchased by Google and Lockheed Martin Aerospace.  The Institute for Quantum Computing in Waterloo, Ontario is the other major center of quantum computing research in Canada. Without taking a major diversion to explain quantum mechanics and its applications in computing and cryptography, there is a great PBS Nova broadcast, available online, which provides a basic tutorial.  The Economist article below, also does an admirable job of making this area understandable, and the role that the Waterloo research centre is playing in advancing cryptography to an entirely new level.

We need to insure that Canada remains at the forefront of this critically important new technology.

Cryptography

The solace of quantum

Eavesdropping on secret communications is about to get harder

  • CRYPTOGRAPHY is an arms race between Alice and Bob, and Eve. These are the names cryptographers give to two people who are trying to communicate privily, and to a third who is trying to intercept and decrypt their conversation. Currently, Alice and Bob are ahead—just. But Eve is catching up. Alice and Bob are therefore looking for a whole new way of keeping things secret. And they may soon have one, courtesy of quantum mechanics.

At the moment cryptography concentrates on making the decrypting part as hard as possible. The industry standard, known as RSA (after its inventors, Ron Rivest, Adi Shamir and Leonard Adleman, of the Massachusetts Institute of Technology), relies on two keys, one public and one private. These keys are very big numbers, each of which is derived from the product of the same two prime numbers. Anyone can encrypt a message using the public key, but only someone with the private key can decrypt it. To find the private key, you have to work out what the primes are from the public key. Make the primes big enough—and hunting big primes is something of a sport among mathematicians—and the task of factorising the public key to reveal the primes, though possible in theory, would take too long in practice. (About 40 quadrillion years with the primes then available, when the system was introduced in 1977.)

Since the 1970s, though, the computers that do the factorisation have got bigger and faster. Some cryptographers therefore fear for the future of RSA. Hence the interest in quantum cryptography.

Alice, Bob and Werner, too?

The most developed form of quantum cryptography, known as quantum key distribution (QKD), relies on stopping interception, rather than preventing decryption. Once again, the key is a huge number—one with hundreds of digits, if expressed in the decimal system. Alice sends this to Bob as a series of photons (the particles of light) before she sends the encrypted message. For Eve to read this transmission, and thus obtain the key, she must destroy some photons. Since Bob will certainly notice the missing photons, Eve will need to create and send identical ones to Bob to avoid detection. But Alice and Bob (or, rather, the engineers who make their equipment) can stop that by using two different quantum properties, such as the polarities of the photons, to encode the ones and zeros of which the key is composed. According to Werner Heisenberg’s Uncertainty Principle, only one of these two properties can be measured, so Eve cannot reconstruct each photon without making errors. If Bob detects such errors he can tell Alice not to send the actual message until the line has been secured.

One exponent of this approach is ID Quantique, a Swiss firm. In collaboration with Battelle, an American one, it is building a 700km (440-mile) fibre-optic QKD link between Battelle’s headquarters in Columbus, Ohio, and the firm’s facilities in and around Washington, DC. Battelle will use this to protect its own information and the link will also be hired to other firms that want to move sensitive data around.

QuintessenceLabs, an Australian firm, has a different approach to encoding. Instead of tinkering with photons’ polarities, it changes their phases and amplitudes. The effect is the same, though: Eve will necessarily give herself away if she eavesdrops. Using this technology, QuintessenceLabs is building a 560km QKD link between the Jet Propulsion Laboratory in Pasadena, California, which organises many of NASA’s unmanned scientific missions, and the Ames Research Centre in Silicon Valley, where a lot of the agency’s scientific investigations are carried out.

A third project, organised by Jane Nordholt of Los Alamos National Laboratory, has just demonstrated how a pocket-sized QKD transmitter called the QKarD can secure signals sent over public data networks to control smart electricity grids. Smart grids balance demand and supply so that electricity can be distributed more efficiently. This requires constant monitoring of the voltage, current and frequency of the grid in lots of different places—and the rapid transmission of the results to control centres. That transmission, however, also needs to be secure in case someone malicious wants to bring the system down.

In their different ways, all these projects are ambitious. All, though, rely on local fixed lines to carry the photons. Other groups of researchers are thinking more globally. To do that means sending quantum-secured data to and from satellites.

At least three groups are working on this: Thomas Jennewein and his team at the Institute for Quantum Computing in Waterloo, Canada; a collaboration led by Anton Zeilinger at the University of Vienna and Jian-Wei Pan at the University of Science and Technology of China; and Alex Ling and Artur Ekert at the Centre for Quantum Technologies in Singapore.

Dr Jennewein’s proposal is for Alice to beam polarisation-encoded photons to a satellite. Once she has established a key, Bob, on another continent, will wait until the satellite passes over him so he can send some more photons to it to create a second key. The satellite will then mix the keys together and transmit the result to Bob, who can work out the first key because he has the second. Alice and Bob now possess a shared key, so they can communicate securely by normal (less intellectually exhausting) terrestrial networks. Dr Jennewein plans to test the idea, using an aircraft rather than a satellite, at some point during the next 12 months.

An alternative, but more involved, satellite method is to use entangled photon pairs. Both Dr Zeilinger’s and Dr Ling’s teams have been trying this.

Entanglement is a quantum effect that connects photons intimately, even when they are separated by a large distance. Measure one particle and you know the state of its partner. In this way Alice and Bob can share a key made of entangled photon pairs generated on a satellite. Dr Zeilinger hopes to try this with a QKD transmitter based on the International Space Station. He and his team have been experimenting with entanglement at ground level for several years. In 2007 they sent entangled photon pairs 144km through the air across the Canary Islands. Dr Ling’s device will test entanglement in orbit, but not send photons down to Earth.

If this sort of thing works at scale, it should keep Alice and Bob ahead for years. As for poor Eve, she will find herself entangled in an unbreakable quantum web.

From the print edition: Science and technology

Engineer to Entrepreneur

At the request of Professor Ray Taheri of the UBC Engineering Faculty, I gave this guest lecture to all 4th year engineering students in ENGR 499 Capstone Project. From my background in entrepreneurial mentorship and entrepreneurial finance, I focused on the unique challenges engineers face in considering starting and developing a new venture. I discuss the full range of issues, but my personal emphasis, from experience, is the “character” issue. Some excellent engineers have successfully made the transition to entrepreneurship and executive management, but for others the odyssey is a bridge too far. Consequently, I place significant emphasis on honest self-analysis and appreciation of one’s strengths and weaknesses. Listening is a priceless skill.


At the request of Professor Ray Taheri of the UBC Engineering Faculty, I gave this guest lecture to all 4th year engineering students in ENGR 499 Capstone Project.  From my background in teaching management and entrepreneurial mentorship, I focused on the unique challenges engineers face in considering starting and developing a new venture. I discuss the full range of issues, but my personal emphasis, from experience, is the “character” issue.  Some excellent engineers have successfully made the transition to entrepreneurship and executive management, but for others, the odyssey is a bridge too far.  Consequently, I place significant emphasis on honest self-analysis and appreciation of one’s strengths and weaknesses.  Listening is a priceless skill. If you have experienced Larry Page, he is an excellent example of an engineer who has very successfully transitioned into a senior management role. Sergei, on the other hand, opted for a CTO-like role, which I think was the right choice for him.

Engineer to Entrepreneur Presentation Transcript

  • 1. Engineer to Entrepreneur Engineering 499 Capstone Project , Winter 2013 ©David Mayes 1
  • 2. Engineer to Entrepreneur David Mayes, Lecturer: UBC Faculty of Management ©David Mayes 2
  • 3. Engineer to Entrepreneur Engineering 499 Capstone Project, Winter 2013 David Mayes Lecturer, Faculty of Management ©David Mayes 3
  • 4. Lecturer Introduction: UBC Faculty of Management ENGR 499, Engineering Capstone Project ©David Mayes 4
  • 5. ENGR 499, Engineering Capstone Project Instructor Introduction David Mayes: UBC Faculty of Management LinkedIn Profile: http://www.linkedin.com/in/mayo615 UBC Office: EME 4151 (250) 807-9821 / Hours by appt. Email: david.mayes@ubc.ca Mobile: (250) 864-9552 Twitter: @mayo615 Experience: Executive management, access to venture capital, International business development, sales & marketing, entrepreneurial mentorship, technology assessment, strategic planning, renewable energytechnology. Intel Corporation (US/Europe/Japan), 01 Computers Group (UK) Ltd, Mobile Data International (Canada/Intl.), Silicon Graphics (US), Sun Microsystems (US), Ascend Communications (US/Intl.), P-Cube (US/Israel/Intl.), Global Internet Group LLP (US/Intl.), New Zealand Trade & Enterprise. ©David Mayes 5
  • 6. Agenda • Engineer to Entrepreneur: • Common Business Misperceptions • What is Entrepreneurship? • The need for Competitive Advantage • UBC Library “entrepreneurship”resources • UBC Small Business Accelerator ENGR 499, Engineering Capstone Project, Winter 2013 Engineer to Entrepreneur ©David Mayes 6
  • 7. Engineer to Entrepreneur: Common Misperceptions ENGR 499, Engineering Capstone Project ©David Mayes 7
  • 8. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 1: “Everybody Loves “Cool New Technology” • Not exactly! • Assess commercial viability first! • Listen to potential customers • Validate with third party market research ©David Mayes 8
  • 9. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 2: “I need to go-it-alone to insure quality & design elegance” • Working alone or only with other engineers sounds good, but… • You need a team with diverse skills to build a thriving business • Think “business management” from the outset ©David Mayes 9
  • 10. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 3: “Marketing is fluff and selling is black magic” • If you build it, they will NOT necessarily come! • In reality, many “best designs” lose to competitors with better marketing • Intel 8086 was a “DOG!” ©David Mayes b
  • 11. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 3: “Marketing is fluff and selling is black magic*” *UBCO Library ©David Mayes 11 Davidow, William, (1986); Marketing High Technology: An Insider’s View, New York, The Free Press
  • 12. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 4: “We need to maximize functionality before we focus on customers” • You can’t engineer the right functionality UNTIL you focus on listening to customers • Customers will buy only the functionality they need and want…nothing more ©David Mayes 13
  • 13. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 5: “A good engineer hates unpredictability and risk” • A good entrepreneur embraces risk • Engineer driven solutions are often too little, too late…if they ever ship! • Managing risk is good; trying to eliminate risk is bad ©David Mayes 13
  • 14. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 6: “We can’t worry about making money until we get it built” • If you can’t make money, it isn’t a business • Business and market constraints are key determinants of “getting it right” • Getting it right at the wrong cost = failure ©David Mayes 14
  • 15. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur: Common Misperceptions Misconception # 7 “Outside financing causes loss of control and undue pressure to deliver” • Funding turbocharges a startup company • “Smart money” adds management value • Canadian gov’t grants focus on pure R&D • “Grantsmanship” is bad business strategy • Angels and VC’s focus on making money ©David Mayes 15
  • 16. ENGR 499, Engineering Capstone Project Engineer to Entrepreneur Suggested Reading* Uppuluri, Krishna (2011), Engineer to Entrepreneur, The First Flight, self-published, Krishna Uppuluri * UBCO Library ©David Mayes 16
  • 17. Agenda • Engineer to Entrepreneur: • Common Business Misperceptions • What is Entrepreneurship? • The need for Competitive Advantage • UBC Library “entrepreneurship”resources • UBC Small Business Accelerator ENGR 499, Engineering Capstone Project, Winter 2013 Engineer to Entrepreneur ©David Mayes 17
  • 18. What is Entrepreneurship? ENGR 499, Engineering Capstone Project ©David Mayes 18
  • 19. ENGR 499, Engineering Capstone Project What is Entrepreneurship? Entrepreneurial Opportunity • An economically attractive and timely opportunity that creates value. • The best opportunities exists only for the entrepreneur who has the interest, resources, and capabilities required to succeed. ©David Mayes 19
  • 20. ENGR 499, Engineering Capstone Project What is Entrepreneurship? The First Consideration: Your “Character” • Self-analysis: Do you have what it takes to be an entrepreneur? • Discuss your personality, capabilities, strengths and weaknesses with a mentor who knows you. • Listen! • Are you a visionary leader? • What about the chemistry with your team? • Investors will focus on three things: • “The team, the team, and the team.” ©David Mayes 20
  • 21. Entrepreneurial Incentives ©David Mayes 21 ENGR 499, Engineering Capstone Project What is Entrepreneurship?
  • 22. Drawbacks of Entrepreneurship • Hard work – Finding new customers and markets – Frustrations with financing, government, tax, technology, and employment issues • Long hours – 20% work more than 60 hours per week • Emotional loneliness • Strong possibility of failure • Disruptions to personal life ©David Mayes 22 ENGR 499, Engineering Capstone Project What is Entrepreneurship?
  • 23. Causes of Business Failure • Lack of managerial and financial abilities • Fail to adapt to competitive environment • A broad based study found the following: – 32% inadequate research and development – 23% lacked competitive advantage – 14% uncontrolled costs – 13% poorly developed marketing strategies – 10% poor market timing – 8% succumbed to competitor activities ©David Mayes 23 ENGR 499, Engineering Capstone Project What is Entrepreneurship?
  • 24. Characteristics of Artisan Entrepreneurs • A person with primarily technical skills and little business knowledge: – Paternalistic approach – Reluctance to delegate – Narrow view of strategy – Personal sales effort – Short planning horizon – Simple record keeping ©David Mayes 24 ENGR 499, Engineering Capstone Project What is Entrepreneurship?
  • 25. Characteristics of Opportunistic Entrepreneurs • A person with both business skills and technical knowledge: – Scientific approach to problems – Willing to delegate – Broad view of strategy – Diversified marketing approach – Longer planning horizon – Sophisticated accounting and financial control ©David Mayes 25 ENGR 499, Engineering Capstone Project What is Entrepreneurship?
  • 26. Four Routes to Entrepreneurship Entering a family business Opening a franchised business Starting a new business Buying an existing business ©David Mayes 26 ENGR 499, Engineering Capstone Project What is Entrepreneurship?
  • 27. Agenda • Engineer to Entrepreneur: • Common Business Misperceptions • What is Entrepreneurship? • The need for Competitive Advantage • UBC Library “entrepreneurship”resources • UBC Small Business Accelerator ENGR 499, Engineering Capstone Project, Winter 2013 Engineer to Entrepreneur ©David Mayes 27
  • 28. The Need for Competitive Advantage ENGR 499, Engineering Capstone Project ©David Mayes 28
  • 29. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Creating a New Business Entrepreneurs may start a new business from scratch due to several reasons: • A new product or service • Favourable conditions such as location, equipment, employees, suppliers or bankers • To capitalize on competitors’ weaknesses ©David Mayes 29
  • 30. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Evaluative Criteria – Market Factors ©David Mayes 30
  • 31. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Evaluative Criteria – Competitive Advantage ©David Mayes 31
  • 32. HMKNT 401, Introduction of Entrepreneurship The Need for Competitive Advantage Evaluative Criteria – Economics ©David Mayes 32
  • 33. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Types of Ideas That Evolve Into Start-ups ©David Mayes 33
  • 34. HMKNT, Introduction to Entrepreneurship The Need for Competitive Advantage Competitive Advantage • A firm offers a product or service that is perceived by customers to be superior to those of competitors, thereby promoting firm profitability • To establish competitive advantage, a business owner needs to understand the nature of the environment – External – what business potentials exist – Internal – what the firm is able to do ©David Mayes 34
  • 35. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Sustaining Competitive Advantage • An established, value-creating industry position that is likely to endure over time • Markets are dynamic and in constant flux • Results include superior profitability, increased market share, and improved customer satisfaction ©David Mayes 35
  • 36. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Assessing the Environment • The Macroenvironment – A broad environment with its multiple factors that affect most businesses in a society • STEEP – Sociocultural, Technological, Economic, Environmental, Political/Legal • Industry Environment – The combined forces that directly impact a given firm and its competitors ©David Mayes 36
  • 37. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Strategies That Capture Opportunities • Broad-Based Strategy Options –Seek an advantage in cost or marketing • Cost-Advantage Strategy and Options Requires the firm to be the lowest-cost producer » WestJet began as a low-fare, no-frills airline • Marketing-Advantage Strategy Emphasizing the uniqueness of the firm’s product or service » WestJet is moving to differentiate based on quality service ©David Mayes 37
  • 38. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Environmental and Organizational Impact on Opportunity Assessment ©David Mayes 38
  • 39. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Core Competencies and Assessing the Organization • Core Competencies • Value-creating organizational capabilities that are unique to a firm • Resources versus Capabilities • Resources are basic inputs that a firm uses to conduct business (capital, technology, equipment, employees, etc.) • intangible and tangible resources • Capabilities are the integration of several resources which are deployed together to the firm’s advantage. ©David Mayes 39
  • 40. HMKNT 401, Introduction to Entrepreneurship The Need for Competitive Advantage Venture Feasibility Assessment Model • Stage 1: Back-of-the-Envelope concept – Potential customers, technology available, match to entrepreneur, financial feasibility » Decision: go or no go • Stage 2: Research and Verification – Detailed analysis of customers, competition, HR required, technical and financial feasibility » Decision: go or no go • Stage 3: Refine the Concept – Detailed business plan » Decision: go or no go ©David Mayes 40
  • 41. ENGR 499, Engineering Capstone Project The Need for Competitive Advantage Taking the Plunge • A Precipitating Event An event, such as losing a job, that moves an individual to become an entrepreneur. Job termination Job dissatisfaction Unexpected opportunity ©David Mayes 41
  • 42. ©David Mayes 42 Mullins, John. (2010) 3rd Edition. The New Business Road Test. Harlow, UK: Prentice Hall, Financial Times Suggested Reading:
  • 43. Agenda • Engineer to Entrepreneur: • Common Business Misperceptions • What is Entrepreneurship? • The need for Competitive Advantage • UBC Library Resources • UBC Small Business Accelerator ENGR 499, Engineering Capstone Project, Winter 2013 Engineer to Entrepreneur ©David Mayes 43
  • 44. UBC Entrepreneurship Resources HMKNT 401 Introduction to Entrepreneurship ©David Mayes 44
  • 45. UBC Library “Entrepreneurship” Resources UBC-O Library Resources: • UBC Library, Industry Research Resource Guide: http://guides.library.ubc.ca/new_enterprise_development#tabs-6 • UBC, additional Industry and Market Research Resources: http://toby.library.ubc.ca/subjects/subjpage2.cfm?id=660 ©David Mayes 45
  • 46. Agenda • Engineer to Entrepreneur: • Common Business Misperceptions • What is Entrepreneurship? • Start-up and the need for Competitive Advantage • UBC Library Resources • UBC Small Business Accelerator ENGR 499, Engineering Capstone Project, Winter 2013 Engineer to Entrepreneur ©David Mayes 46
  • 47. UBC Small Business Accelerator Human Kinetics 401, Introduction to Entrepreneurship ©David Mayes 47
  • 48. http://www.sba-bc.ca/ UBC Small Business Accelerator ©David Mayes 48
  • 49. Additional Entrepreneurial Resources ENGR 499, Engineering Capstone Project ©David Mayes 49
  • 50. • entrepreneurship@ubc • http://www.entrepreneurship.ubc.ca/ • UBC Industry Liasion Office (UILO) • http://www.uilo.ubc.ca/pages/entrepreneurship/voucher Additional UBC Resources ©David Mayes 50
  • 51. Questions? ©David Mayes 51
  • 52. ©David Mayes 52

IEEE Seminar, February 6th, 5PM, EME 1151


Microsoft Word - Mayes

 

 

IEEE Okanagan Subsection
Presents
Mr. David Mayes
Faculty of Management, Global Internet Group, LLP
Big Data, the Cloud, and Smart Mobile: Big
Deal or Not?
Time & Date: 5pm-6pm, February 6, 2013
Location: EME 1151, UBC Okanagan campus
Talk Abstract: We are hearing regularly in the media about so-called “Big Data.” Is Big Data so
transformational that it will change our everyday lives, or is it just another evolutionary advance
that may improve productivity but not much else? The same arguments may apply to the concept
of “The Cloud,” and “Smart Mobile,” the other two major trends. I say that the three, taken together,
are coalescing into the most important new force in information technology in decades. They will
drive further innovation and productivity enhancements into the foreseeable future. The talk will
explore all three trends and pose questions for the future.
Speaker Biography: Mr. David Mayes is a full-time Lecturer in entrepreneurship, communication,
negotiation, IT and strategic management at The University of British Columbia, Faculty of
Management, and Master’s degree program. Mr. Mayes was founder and spokesperson for the Intel,
Microsoft and Compaq initiative for high speed consumer “universal” DSL Internet access. Mr.
Mayes also led a number of other major industry initiatives: Vendors’ ISDN Association, V.92
modem consortium. Mr. Mayes joined with Microsoft as an author of the IETF security protocol
PPTP (point to point tunneling protocol), creating secure “virtual private networks” across the
Internet. Mr. Mayes formed solar energy company, Sola Renewable Energy Ltd., and was
Executive Director and Chairperson of the Okanagan Environmental Industry Alliance (OEIA),
which works directly with local, regional, provincial and federal Canadian government groups.
Mr. Mayes began his career at Intel Corporation in California, Oregon and Europe. He left Intel
while based at Intel’s European HQ, to form his first entrepreneurial venture, 01 Computers Group
Ltd., based in London. Its corporate clients included the BBC, British Telecom and Imperial
Chemical Industries. Recently, Mr. Mayes was Vice President of Business Development at P-Cube,
iBEAM Broadcasting, and Director of Business Development at Ascend Communications. Mr.
Mayes was directly involved in a variety of multinational venture investments, public, private
mergers, acquisitions, corporate partnerships, and sales, including Ascend’s acquisitions of NetStar
and Cascade Communications.
Pizza and drinks will be provided after the talk. For further information please contact:
Julian Cheng (email: julian.cheng@ubc.ca)