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 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 from David Mayes

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

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Big Data Is Still Hard, But It Gets Better

SUMMARY:When it comes to using big data, there are still bottlenecks. Many of these are around the tools that people use to try to make sense of massive amounts of information.

What’s standing between your staff and big data analysis? That was the existential question posed of DJ Patil and Jeff Hammerbacher at the GigaOM Structure:Dataevent today in New York. The two had different takes on how easy it was to give people the power to use data, with Hammerbacher, who is the co-founder of Cloudera, saying that it’s pretty simple today.

He did say that today many aspects of the input and ingress of data will end up being automated, much like systems administrators responsible for running the data center have seen many of their tasks automated.

Patil, who is now a data scientist in residence at Greylock Partners, was a bit more focused on end users. He shared his visit to a nonprofit called DoSomething.org earlier today, and said that people there had plenty of curiosity and a desire to play with data and ask questions, but they didn’t always know what to ask to get the insights they seemed to want. “We need another layer to help those people figure out what they want to ask,” he said.

From Patil’s perspective we need tools that will help us tell stories with data and let people play with it in ways that can help people come to new conclusions or see new relationships. “This is less of a machine learning problem than a ‘Can I try a bunch of things with the data?’ kind of problem,” said Patil.

And for those who are still intimidated by playing around with big data Patil has this to say, “Most people doing sophisticated analysis they don’t really know what they are doing.”

Check out the rest of our Structure:Data 2013 coverage here, and a video embed of the session follows below:

http://new.livestream.com/gigaom/structuredata

Gigaom

What’s standing between your staff and big data analysis? That was the existential question posed of DJ Patil and Jeff Hammerbacher at the GigaOM Structure:Data event today in New York. The two had different takes on how easy it was to give people the power to use data, with Hammerbacher, who is the co-founder of Cloudera, saying that it’s pretty simple today.

He did say that today many aspects of the input and ingress of data will end up being automated, much like systems administrators responsible for running the data center have seen many of their tasks automated.

Patil, who is now a data scientist in residence at Greylock Partners, was a bit more focused on end users. He shared his visit to a nonprofit called DoSomething.org earlier today, and said that people there had plenty of curiosity and a desire to play with data and ask questions, but they…

View original post 4,060 more words

How to Say “Look at Me!” to an Online Recruiter

globally recognized “avatar”

The article below from yesterday’s New York Times, underscores the importance of having a professional online presence on LinkedIn, Twitter.  YouTube and developing your own blog are emphasized.  I congratulated one of my fourth year students yesterday for posting her first group discussion topic on LinkedIn.  It was a great topic for discussion. Everyone should be doing the same to establish your professional focus, knowledge and to broadcast your thoughtful comments.  I endorse all of the suggestions in this article. There will always be subtle grey areas of nuanced opinion, which is where your own judgment and personality play a role in what you choose to do.  But, if you are presenting yourself professionally and honestly, as you discuss issues in your comments and your blog,  the prospective employer should “get” that.  If they do not, it may not be your problem. You may want to move on to another prospective employer.

I saw a blog post this weekend that asked rhetorically if you should use an avatar or Gravatar.  I think the specific question was whether a recruiter would interview someone showing only an avatar.  I think the answer to that is, “probably not.”  This is an area I have mentioned in class and in one-on-one’s:  applying to work at Google is a way different process than applying at KPMG.  Different industries and corporate cultures call for different job search strategies.  I do believe that avatars/Gravatars should be used in parallel with a solid professional photo of yourself.  My Gravatar is actually my letterhead logo for my personal correspondence.  Gravatars are not replacements for a traditional image.   Avatars/Gravatars are evidence that you understand the Web and online brand development…your personal brand.

My Gravatar

Reblogged from the New York Times Technology Section

By PHYLLIS KORKKI, Published: January 26, 2013

IF you are thinking of looking for a job this year, or are already searching for one, be warned: for some job seekers, the rules have changed. Technology and social media have altered the way some employers consider candidates. Simply sifting through job postings and sending out applications en masse was never a good route to success, and is even less so now.

Enlarge This Image

Minh Uong/The New York Times

One of the most important questions that many job seekers can ask these days is this: How searchable am I? Some employers aren’t even bothering to post jobs, but are instead searching online for the right candidate, said Barbara Safani, owner of Career Solvers, a career management firm in New York.

Not having an Internet presence can be damaging, Ms. Safani said. She is among those who recommend that job seekers spend serious time detailing their skills and experience on commercial sites likeLinkedIn and Twitter, with an eye toward making their names a magnet for search engines.

“Having a blog can be a good way to show that you are a thought leader” while improving your professional visibility, she said. And consider YouTube as a way to enhance your searchability, she advised. If an employer comes across a video of you giving a speech or a training presentation, she said, you may gain an advantage.

More companies are turning to Twitter as a way to broadcast job openings, so you should use it to follow recruiters, industry leaders and individual companies, said Alison Doyle, a job search specialist for About.com. She said that by linking to articles and sharing your expertise on Twitter, you can enhance your professional reputation — though you should beware of the site’s potential as a time drain.

On Facebook, “liking” a company can mean receiving early notice of job openings and other news. But privacy concerns make Facebook tricky, Ms. Doyle said: Make sure you understand who is receiving which of your posts, or resolve to be thoroughly professional on Facebook at all times, she said. Be aware that hiring managers may see what you post on any of the major social media outlets, she added.

OLD-FASHIONED, personal networking can still be an effective way to land a job, but online networking now supplements it in many fields. Both Ms. Safani and Ms. Doyle say LinkedIn is a very important Web tool for making those connections.

The site offers premium services for a fee, but almost all of the main features for job seekers are free, Ms. Doyle said. Spend a few minutes on the site each day making new connections, she advised, and keep your profile up to date.

To improve the chances that a connection request will be accepted, especially from someone you don’t know, send a personal message along with it, noting, say, your similar backgrounds, said Nicole Williams, a consultant who works as a career expert for LinkedIn.

Baldly asking someone at a company for help in landing a job is never a good idea, on LinkedIn or anywhere else. Share links and advice with people in your LinkedIn network before asking for a favor like an introduction to a hiring manager or a written recommendation that would appear on the site. If you are seeking a particular position, Ms. Doyle said, you might say something like: “I’m interested in this job. Do you have any information that you can share with me?”

Joining industry groups on LinkedIn can build your visibility. You can also join college alumni organizations or other focused groups, like one for working mothers.

Make full use of the skills section of LinkedIn, Ms. Williams advised, and the more specific you are, the better. Instead of saying that you have marketing skills, note the exact areas — direct mail campaigns, for example. LinkedIn can direct you to companies that are seeking these skills so you can follow them. Listing your skills could also bring you to the notice of a recruiter.

Be aware, too, that an employer may be viewing your application via a mobile phone. Mobile traffic involving job search more than doubled in 2012 over 2011 at the employment site Indeed.com, said Rony Kahan, a co-founder and C.E.O. So make sure you know how your résumé and cover letter look on a small screen. Résumés should be in a PDF format so they can be viewed on a variety of phones.

In the age of online applications, one school of thought holds that cover letters are a waste of time, but Ms. Doyle disagrees. Cover letters are still a great way to differentiate yourself from the competition, she said — and the rise of applications via cellphone just means they should be more concise, and specific to the job at hand.

Corporate Fines Are Nothing More Than Tax Deductions

In yet another sign that applying monetary fines to corporations is nothing more than adding a “cost of doing business,” The New York Times reported Saturday that corporations routinely, not only pass on the cost of heavy regulatory fines to their shareholders and to consumers, they also write off the fines as corporate tax deductions.

http://www.nytimes.com/2013/01/13/business/paying-the-price-in-settlements-but-often-deducting-it.html

Toronto Emits Way More Carbon Per Day Than New York City

Yesterday, New York City‘s Sustainability Office put out this video to graphically visualize the reality of how much carbon, in tonnes is produced by New York City in one day..

The amazing fact from all of this is that Toronto apparently produces almost 15% more carbon per day than NYC… Then add the fact that urban environments, by their nature tend to emit less carbon than suburban and rural areas.

Is this why Canada missed its carbon reduction commitment by more than 30%???

I am deeply perplexed by climate change deniers.  I have had in depth conversations with scientists and engineers who follow the “scientific method,”  and though the preponderant majority of scientists are convinced by the data that they have collected, others seem consumed by the elegance of their “method,”  and how the scientific method offers them an opportunity to become famous by looking for possible flaws in the data.    I do understand that point. Copernicus and Leonardo Da Vinci were pioneers of elegant new ideas. But at some point the law of diminishing return applies, and you must acknowledge that Copernicus is right. More weird, many focus on denial of the fact that human activity and fossil fuels are the base explanation in the data.  It is all just natural cycles.   One said to me that the scientific method is not democratic.

By now one would assume that while we may find minor issues, no one is going to become the next Copernicus or Leonardo by denying human caused climate change. In frustation with climate change deniers, I have offered the position that “sustainability is the right thing to do, either way.”

Of course, there is documented evidence that the Koch brothers and others have a financial and political agenda, and are actively funding climate change denial…

To me it is just mental masturbation as our grandchildren face living with our environmental mess..  Right wingers say the same about Keynsian economics and deficits.