Boost of ICT business
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1 Boost of ICT business Alain le Loux MBA MSc. Business Accelerator ICTLabs European Institute for Innovation & Technology
2 Topics Background Alain le Loux Background & history ICT Labs Thematic Action Lines of ICT Labs Contents of the ICT Labs Entrepreneur Support Program ICT impact & the valley of death Coaching of ICT companies Examples of common problems Contact details Questions?
3 1. Background Alain le Loux (1971) - Education University of Twente ( ) Computer Science, Technology Management & Communications Business School Nederland Executive MBA ( ) cum laude graduated Marketing Management, Strategic Management Financial Management, IT Management Human Resource Management, Operations Management International Management Training courses General Management, Marketing, Mass communication Prince-2 Projectmanagement Winning Major Sales, SPIN sales training Etc. etc. etc.
4 1. Background Alain le Loux Business experience 18 years in IT-business & 3 years health technology 2011 until now: Business Accelerator ICT Labs Particularly: StartUpWeekend.org 2009 until now: Business Accelerator Kennispark Twente : CEO Virobuster Technologies : Managing Director Division Application Services & Projects Getronics PinkRoccade (1.000 FTE; member executive committee), 130 million yearly revenue : BU Director Managed Application Services (300 FTE) : Manager Client Software (70 FTE) : Project Manager 1996: Bid Manager 1995: Consultant New Technologies
5 2. EIT ICT Labs Vision and Mission EIT ICT Labs will turn Europe into the global leader in ICT Innovation Stockholm Helsinki EIT ICT Labs aims at the radical transformation of Europe towards a knowledge-based society turning ICT innovation into quality of life Eindhoven Paris Berlin Trento
6 3. EIT ICT Labs - Thematic Action Lines Thematic Action Lines Smart Spaces including service-centered home Smart Energy Systems smart energy management, Green ICT Health & well-being including ambient assisted living, digital medicine Intelligent Transportation Systems novel forms of safer & sustainable traffic and transportation systems Future Media and Content Delivery entertainment, education, accessing media Digital Cities towards intelligent and sustainable digital cities A Thematic Action Line Has an application area with a long-term business objective Integrates research, innovation and education Has clear leadership Must be European-wide Integrates relevant technological competences Has a Strategic Ambition which includes a clear vision and a measurable objective
7 4. Entrepreneur Support Program Per country: Entrepreneur support / business acceleration of the TOP-5 companies. Mentoring & Coaching Valorization Connection bridges with customers and distributors Incubation Internationalization Reduced time-to-market of new products and/or services Every year around new spin-off companies.
8 5. ICT Impact It is increasingly through productivity gains and wealth created in other sectors that ICT has its major impact EU: 25% of GDP growth and 40% of productivity growth are due to ICT EU: Differences in economic performance between industrialized countries are largely explained by levels of ICT investment, ICT research, and -use, and by the competitiveness of information society and media industries. NL: ICT important sector: both in size (7% of Dutch GDP, >24,000 companies, 30 bln Euro) and in growth rate (>2% above average) ICT plays an important role in the growth of productivity in ALL domains were ICT is used in. 50% of production gains are attributed to ICT.
9 5. Valley of death Gap in available Cash necessary to develop technology to proof-of-principle, prototype, and / or product Capital to develop ideas to innovations Gaps in Information between entrepreneur and potential investor and partner about - Technology: What is it? - Potential of Technology: What can it do? - Business Opportunity: What size market? Risks Technological & Financial Health care: Regulation No Capital
10 5. Linear Innovation Process Tech transfer opportunities Competitor tracking Licensing in Patentability evaluation (patent & literature search) Competitor product analysis Government / industry regulations Component / process licensing opportunity search Maintain patents License out Infringement searching IDEATION DEVELOPMENT PRODUCT Basic Research Applied Research Proof of Concept Design and Development Market Testing Production Process Development Launch Version Control Technology search Market research Funding sources Product & component specification Design & technical requirements Industry standards Comp. analysis Marketing Production UNIVERSITIES KNOWLEDGE MARKETS
11 6. Coaching of ICT companies - generic approach Professionalize the marketing of the products and services Professional outlook of the whole company Positioning of the products / services Focus on USP s and customer value Industrialization of products Finding the best pricing strategy Low entrance & flexible pricing Preparing future company growth (organization development milestones) Financial planning Patents & protection of the business Focus, focus and speed!! Focus on launching customers CEO coaching & team development Deal making & coaching Commercial attack plan Strategic direction Internationalization
12 Example 1 BlueMark Innovations Location: Enschede (NL) Size: 4 FTE Website Description BlueMark Innovations offers a platform: where users are located inside a building using Bluetooth technology. access to personalized and locationbased information via mobile internet on smartphones. the location of users is updated realtime with an accuracy up to 1 meter. Examples indoor TomTom: navigate visitors in your building Indoor Location Based Services (LBS): inform users about nearby shops, restaurants, localized commercial messages. Location-based mobile advertising Proximity detection: personalize commercial messages of your narrowcasting system. Business intelligence: acquire detailed information how visitors use your building.
13 Example 2 Smart Signs: innovative wayfinding Location: Enschede (NL) Size: 8 FTE Website: Typical customers: Offices, Hospitals, Museums, Exhibitions, Airports, Hotels, Cruisers, etc. Description: Smart Signs are a new type of electronic door- and way-signs (using RFID) that present personalized guidance and messaging. Users will get a smart tag and by intelligent monitors they will get the way finding information and also the room reservation information on the outside of rooms.
14 Example 3 Security Matters - Network Intrusion Detection Software Location: Enschede (NL) Size: 5 FTE Website: Typical customers: Banking, Insurance, Government, Ministry of Defense, etc. Description Security Matters has built the Network Intrusion Detection suite (SilentDefense) that will: Detect zero-day and targeted attacks Reduce the number of false positives Create a customized shield for organization s own web services
15 7. Examples of common problems A. Help, I have a customer. And now? How much money do I ask? B. I don t have General Terms & Conditions! C. Help, I have 100 potential customers in a specific field, but no one wants to have my solution. I m sure they are interested in it! We don t know what we are doing wrong. D. I never get customers trough the website. E. Do I need patents or not? It is quite expensive? F. Help, we need money for our marketing and further growth. G. How to get the first customers? H. We want to grow fast. What to do?
16 A. Pricing Start situation: company wants to deliver software to customer for General questions about pricing: Competitors? What is the customer value? What will it cost if the customer develops itself? Maximum price level 0 proposal Cost of own development > customer value 2 million per year
17 B. General Terms & Conditions
18 C. Pricing Start situation: per year, need to sign for an agreement for 3 years Company delivers software for educational institutes. Problem: didn t sell to customers. Potential list of 100 customers in a specific field. After mailings and visiting only 1 customer. Solution: low threshold 400 per month, no restrictions Result: Within 3 months, more then 20 new customers
19 D. Search Engine Optimalization Different approaches for SEO. 1 of the solutions is working with landing pages.
20 E. Patents Initial patent application: ~ PCT application: ~ 5000 after 30 months costs rise significantly: Sell/license patent before 30 months
21 E. Patents Example: Technology company has 7 secrets which could be patented. 1 Important secret: we patent it (afterwards: it is public information) 2 Important secret: we patent it (afterwards: it is public information) 3 Important secret: we patent it (afterwards: it is public information) 4 REAL secret: we didn t patent it 5 REAL secret: we didn t patent it 6 We used this as a USP to customers (we described only the customer value and not the technique itself) 7 We used this as a USP to customers (we described only the customer value and not the technique itself)
22 F. Writing business plans for investors
23 F. Business models Business Model Generation (Osterwalder & Pigneur)
24 F.
25 G. First customers Negotiation with the first leads. Business accelerator takes the lead in the customer conversation Use of the Spin Selling techniques (Neil Rackham) Situation, Problem, Implication, Need Payoff
26 H. Business growth
27 8. Contact details EIT ICT Labs Alain le Loux ICT Labs High Tech Campus AA Eindhoven The Netherlands ir. Alain le Loux MBA
28
29 Thank you for your attention! Page 29
30
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