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Riga, LatviaJune 9, 2004
Guided Entrepreneurship™
Powering A Knowledge Economy
Boris N. Reznik, Ph.D.Chairman, Vendevia Group
Miami, Florida USAwww.vendevia.com
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How Latvia Can Become A Worldwide LeaderIn The Commercialization Of Science & Technology
The Lessons of HistoryHow Silicon Valley grew from a small agricultural region to the worldwide leader in the commercialization of science and technology.
The Emergence of the EntrepreneurWhy the entrepreneur is the real key to commercializing science and technology.
Guided Entrepreneurship™The most effective method for building an army of entrepreneurs in the least possible time.
Guided Entrepreneurship Centres™ How and why they work to implement Guided Entrepreneurship programs.
A GEC Case Study
Creating the Latvian LegendTaking the first steps
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Imagine thePossibilities
From Silicon Valley toThe Latvian Legend
How Latvia can become a worldwide leader in the
commercialization of science and technology
SiliconValley
BostonCorridor
ResearchTriangle
New JerseyBiogarden
BangaloreIndia
Latvia
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In The BeginningIt Wasn’t Always Called
Silicon Valley
Two great Universities (Stanford & UC Berkeley) with great scientists and great students
Cultural reverence for science
No real local markets for S&T
Great potential business environment (Lots of Land, Low Taxes, Cheap Labor)
Sunnyvale California c1955
The Bay AreaNorthern California
Then came Sputnik followed by NASA
The Age of MegaTech was bornHuge Companies
Making Huge ProductsFor Huge Contracts
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Mid 1960’sTeknekron Gives Birth To A New Paradigm
To Create Entrepreneurs Apollo Versus Harvey Wagner
Product Entrepreneur
GovernmentContracts
CommercialContracts
TechnologyCentric
MarketCentric
SellingSize
SellingCapabilities
GuidanceCompetition RecognitionRich Incentives
The Foundations of the Entrepreneurial Factory
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The Major Elements of Market CentricityThe market asks and the entrepreneur finds the science and answersSmall and agile versus big and slowMarket Solutions versus ProductsFrom the God of the $ to the Goal of the Contract
Market CentricityHow the Entrepreneurs Took OnThe MegaTech Giants - And won!
REI RETNAUC
Berkeley
Teknekron
Optics
1961
1967
Microfiche
To storeimages for
fasterretrieval
MagneticStorageSystems
Can you storemore information?
Can you recognizeinformation?
Optical LaserDisk
More?
Still more?
Juke Box
ImageProcessing
Can you recognizeimages?
OpticalCharacter
RecognitionCan you
read some data?
Mag Stripe
More?
SlugCodes
Can youread fast?
Bar Codes
Faster andmore reliable?
SmartCards
Transponders
3D Bar Codes
GPS
Mor
e in
form
atio
n?
Distribution
Transportation
Insurance
Financial
Communications& ITCommunications
and IT Transportation
“RETNA”
Distribution
Financial
Insurance
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Teknekron spin offs growThe new entrepreneurship becomes the legacy Teknekron Alumni defined entrepreneurship through the’80s
Building An Army of EntrepreneursTeknekron and The Mushroom Effect
Both TIBCO &TERA
Went Public
IBM
Sun Microsystems
HewlettPackard
AT&T
SymbolTechnologies
LucentTechnologies
.
.
.
Boeing
GeneralMotors
EDS
LockheedMartin
OccidentalPetroleum
MCI
CONSOLEnergy
.
.
Litton
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Bridging the GulfWhat Entrepreneurs Do And How They Do It
The entrepreneur is a connector between the source of the technology
and the users of the technology.
“No one buys technology for the sake of technology, they buy it to solve a problem or realize an opportunity.”
- H. Wagner
Connector RequirementsClient and market centricEntrepreneurially driven
Mastery of runningan entrepreneurial business
Problem Solving Point Of ViewDesire
Russian Science& Technology
WorldwideTechnology
Markets
Very Wide Gulf
Latvian EU
Russian Science& Technology
WorldwideTechnology
Markets
The Connector
Latvian WorldwideMarkets
WorldwideMarkets
Latvian Science& Technology
Latvian Science& Technology
That’s all fine and good, but“How do you build an army of
entrepreneurs?”
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Guided Entrepreneurship Is Both Effective & EfficientThe Lowest Cost Per Entrepreneur Developed
All approaches are designed for a different purposeGuided Entrepreneurship creates the entrepreneurial soup and builds the critical mass required for an army
Cos
t Pe
r E
ntr
epre
neur
VentureFund
AcceleratorIncubator
GuidedEntrepreneurship
Focuses onthe financial deal
DevelopsCompanies
Focuses onthe technology
DevelopsProduct
Focuses onthe market
DevelopsEntrepreneurs
Number of Entrepreneurs
Per Centre
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Guided Entrepreneur CentreA Look Inside and Outside
The GEC supplies the basic infrastructure.But it’s the constant interaction that makes it run.
Candidates - Entrepreneurs - Mentors - Technologists - Clients
GEC
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Climbing The Stairs In The GECA Competitive Approach To Progress
Candidate
Application made to join a specific GEC. Goal is to get
selected.
Spin Off
The goal is to go public.
Division Manager
Is running a Division. Goal is to dominate market niche and spin off a
company.
Entrepreneur
Has first signed contract in hand. Goals is to build team and make more sales to
create a division.
In Training
Working on a full time basis
in a GEC. Goal is to get out into the field, meet clients and
land a contract.
The Race To The Top
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Inside A Guided Entrepreneurial CentreFrom Candidate To Spin Off
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Creating Entrepreneurs How Guided Entrepreneurship Builds
An Army of Entrepreneurs That Makes A Difference
Driving World Wide
Markets
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We’ve done it in IT and are doing it in Biotech
Thousands of jobs created along with and billions of € of value
The GEC - A Case StudyBoris Reznik Founds ATC in 1985
Cisco Systems
Oracle
Arriba
Equifax
.
.
.
Merisel
FamousFootwear
Light Signatures
Symbol Technologies
Manhattan Associates
.
.
American Turnkey
Sonica Inatel
Siemens
LogicwareSwiss Log, AG
MetasysOptum
Software
HNC Software
Celerity
IndX Software
WhitestoneBridge
Zmarket
Just In Time
4th Shift
PlatinumSoftware
Avexus
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Creating The Latvian LegendA Look At The Basic Architecture
The Government Role
The Setup Role
The GEC– Specialized to Market
Segment
– Ensures Market Focus
– Fosters Competition
– Creates Tailored Incentives
– Provides Access to Resources
– Provides Guidance
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Creating The Latvian LegendGetting Started
Do conceptual design of GEC program for Latvia
Create a GEC Strategic Initiative
Establish Setup Agency and fund it appropriately
Do detail design of the overall GEC Initiative Infrastructure
Create the first GEC and start Guided Entrepreneurship
Evaluate progress and make adjustments
Continue rolling out the program
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Riga, LatviaJune 9, 2004
Guided Entrepreneurship™
Powering A Knowledge Economy
Boris N. Reznik, Ph.D.Chairman, Vendevia Group
Miami, Florida USAwww.vendevia.com