Lead to Win: Creating technology and

knowledge jobs

Tony BailettiSprott School of Business

Systems and Computer Engineering Bailetti@sce.carleton.ca

Enable UMarch 23, 2010

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Agenda

A. Lead to Win

B. Lessons you can use

C. Research

D. Takeaways

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A. Overview of Lead to Win

• Become largest source of technology and knowledge jobs in Canada’s Capital Region

• Business ecosystem approach to economic development

• Anchored around opportunity development process

• Phase I: selects right people and opportunities

• Phase II: is mandatory six day Opportunity Development Program, cuts in Day 3 and 6

• Phase III: helps business accepted into ecosystem to generate a minimum of 6 knowledge and technology jobs over three years

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Types of market offers

• Customer premise equipment• Enterprise software• Hosted services• Mobile applications• Telecom solutions, wired and wireless• Product development tools and services• Aerospace engineering• Pharmaceutical • Professional consulting and services• Intellectual property

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Company founders benefit from:

Phase II• Stronger business

opportunity quickly• Knowledge to establish

and grow successful tech business

• Confidence and motivation

• Access to large and diverse business network

• Foundation to sell to first customers, raise funds and attract/retain talent

Phase III• Review boards & mentors• Opportunity validation• Presentations to large

customers• LTW founders & TIM students• Bootstrap financing• Founders’ Club• Purposeful networking events• Conference & shared space• Services from suppliers who

share founders’ risk• Brand company & ecosystem• New niche formation• Thought leadership: OSBR.ca• Free memberships in OCRI &

Ottawa Chamber of Commerce

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B. L1. Operational definition

A business ecosystem is comprised of companies and organizations (players) that work together to:

Deliver value to customers, partners, themselves and region

Benefit from products and services delivered by a platform

Interact with resources outside their community

boundary

Enables value creating exchanges that would not occur otherwise

Ensure continued existence of their community

Time

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L2. Keystone is player responsible for:

• Platform operations and evolution

• Ecosystem health Number & diversity of players Players’ productivity Resources attracted by keystone Platform predictability

• Leadership and governance structure

• Transaction cost minimization

• Audience building Global reach Attract and retain resources and talent

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L3. Keystone types

Vendor neutralDefense

department

Lead to Win

BBB

Talent First

Coral CEA

Vendor or consortia dominates

Apple

MicrosoftGoogle

Closed Open

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?

?PervasiveMedia Mobile

Apps

Ecosystem diversity

Lead to Win Coral CEA

Talent First Network

# of technology jobs created$ risk capital invested

# of students educated for creative economy

Each vertical ecosystem to operate multi million $ specialized asset

• Each company in phase III creates 6+ tech jobs

• Talent • Open source

stacks• OSBR.ca

BBB • Web conference for academic institutions open source project

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Overview of four ecosystems

Mandate Platform Success Scope

Lead to Win Launch and grow technology businesses

• Opportunity & deal development process

• # tech jobs• Investment

Region other regions

Coral CEA (Comm Enabled Applications)

• Provide member companies building blocks, commercialization support and out of box process to differentiate offers• Fill gaps in commercialization

• Software assets in $15.3 M sandbox

• # tech jobs• Investment # apps that use Sandbox• # new CEA companies• Keystone income

Canada Global

Big Blue Button

• Deliver high quality experience to remote students

• Open source code • # talented developers• # of companies

Global

Talent First Network

• Thought leadership• Fill gaps in skills for creative economy

• Skill development • # tech jobs• # companies that make money from open source assets• # grad students

Province

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L4. Multi-side platform

Gro

up

3

Gro

up

4

Regional economic development orgs

• outcome # 1• outcome # 2

Group 2Group 1

• Keystone-run platform adds value to players in N groups

• Value to a player in one group increases with number of players in other groups

• Regional development is one group

• Concrete & visible regional outcomes

• Platform can be process, physical location, service, product

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LTW: Apr 09-Mar 10(126 org)

LTW: Mar 10-June 11(250)

L5. Platform anchored on a process

Opportunity dev

Opportunity & deal dev

Regional economic development orgs (8)

• 6+ jobs/startup in 3 yrs• Healthy ecosystem

Regional economic development orgs (8)

• 6+ jobs/startup in 3 yrs• Healthy ecosystem

Technology startups

(78)

Technology companies

(14)

Multinationals(8)

Service providers

(15)

Service providers

(25)

SME(20)

Academic (4) Academic

(5)

Early customers

(20)

Investors(14)

Investors(7)

Technology startups

(150)

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L6. Opportunity development process

I. Recruit talent

II. Harden & strengthen opportunity

III. Launch and grow business

6+ tech/knowledge jobs per firm over 3

yrs+

Healthy ecosystem to grow successful

tech businesses

30 firms, 39 founders 82

8 wks 4 wks 104 wks

Jun 09:

Aug 09: 66 19 firms, 27 founders

98

62

212 in Day 1

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55Nov 09: 21 firms, 34 founders

315 Applicants

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167 in Day 6

35

44

126 in 88 firms into ecosystem

69 49Mar 10: 18 firms, 26 founders37

78 startups active

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Deal development process

Stage 0 1 2 3 4

Orchestrator

Customer

Supplier

Funder

Pay off

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L7. Ecosystem sustainability

• Using ecosystemCompanies generate

greater profitable revenueRegion attains better

outcomes

• Healthy ecosystem

• Superior information & access to many deals

• Transparency of intellectual property rights

Region’s outcomes• 6+ jobs/startup in 3 yrs• Healthy ecosystem

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L8. Prices for access & transactions

• Group that is needed most or is harder to get receives a price break

• Group that gets most value out of access to members of other groups bears more of cost

• If price of product for group A is high, number of A users decreases which lowers value of products for groups B, C, D etc.

• Prices and marginal costs for goods and services delivered to a group are not closely related

• Price setting is not enough to induce desired outcomes Complex coordination problems do exist

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L9. Make visible

• Show multiple views of business ecosystem

• Define boundary

• Show links to resources and talent outside boundary

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L.10 Engage community

• Secure commitment of expert volunteers to attain concrete outcomes

• Engage regional development organizations, academic institutions, municipalities, and service providers

• Invite institutional and angel investors as well as serial entrepreneurs and company leaders to review opportunities

• Concurrently grow each participating group• Add players that complement opportunity development • Enhance credibility of platform and ecosystem• Provide missing assets (e.g., resources, market,

technology)

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C. Research

• Efficient use of vendor-neutral business ecosystems

• Measure effectiveness of vendor-neutral ecosystems vs other ecosystem types as tools for regional economic development

• Ecosystem maps and health dashboards

• Volunteers who work for startups expecting to create jobs for themselves

• Designing successful keystones

• Orchestration, affiliates, network pricing, auctions, volume discounts

• Services to provide each group

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D. Takeaways

• Embrace business ecosystem approach to develop regional economy

• Knowing how to establish and enable business ecosystems to develop regional economy is a key competitive advantage

• Ecosystems can: Harness innovative individuals worldwide to solve local

problems Launch and grow technology companies Create and retain jobs and attract private investment Enhance experience of graduate students Attract new, creative individuals

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Thank you!

www.carleton.ca/timwww.leadtowin.cawww.coralcea.net

www.talentfirstnetwork.org/wiki

Bailetti@sce.carleton.ca