Sho rt Description of the Course
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| Short Description: |
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This course teaches some of the generic and transferable skills required to become an entrepreneur in Informatics, and raises the student's awareness of the legal, financial, business, managerial and interpersonal issues and skills relevant to setting up and running an innovative ICT application company.
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| Summary of Intended Learning Outcomes: |
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At the end of this course students will be able to:
- demonstrate an awareness of the financial, marketing, intellectual property rights and employment issues relevant to setting up and running an innovative ICT application company;
- demonstrate an awareness of the problem solving, managerial, recruitment, negotiating and creativity skills required in setting up and running such a business;
- prepare reports which demonstrate knowledge and understanding of the above issues and skills; and
- prepare a business plan for such a company, which draws on the above knowledge and skills.
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| Assessed Coursework: |
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1. Case Study Write-up #1 (30% of Total Mark)
Maximum 500 words
Two Copies must be submitted to Informatics Teaching Office (ITO) by 12:00pm. Wednesday 16th Nov. 2005
2. Case Study Write-up #2 (30% of Total Mark)
Maximum 500 words
Two Copies must be submitted to Informatics Teaching Office (ITO) by 12:00pm.
Wednesday 23rd Nov. 2005
3. Business Plan. (40% of Total Mark)
Maximum 2000 words
Using the Seven Domains of an Attractive Opportunity model as set forth by Mullins in “The New Business Road Test”, frame your idea and opportunity in the form of a business plan. Weighted 32% of total mark.
Mon. 09 Jan 2006. Two copies must be submitted to Informatics Teaching Office (ITO) by 12:00 pm
10-15 Slides for presentation to the venture capital and angel panel. Weighted 8% of total mark.
Slides Due Monday Nov. 28 By 12.00 - ITO |
Download the Assessment Overview file
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| List of Case Studies: |
- All the following case studies are to be found in the course text book "Technology Ventures".
- Read all 7 to discuss in-class (1 hour each).
- Choose any 2 to write-up.
- Questions are given below each case.
- Each chosen case is worth 30% of your total marks. |
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| Case 1: |
Danger, Inc. - (D)
Describes a wireless device startup in Silicon Valley
that must analyze and decide on the best companies
for its portfolio of manufacturing and carrier partners.
Relevant Chapters: 13, 15, 19.
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| Case 2: |
Biodiesel, Inc. - (A. First Case Discussed)
A mini-case that explores a possible opportunity and
business model for commercialising biodesel, a
renewable organic product. Relevant Chapters: 2, 3, 4,
5.
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| Case 3: |
Yahoo! 1995: First Round Financing - (G. Last Case Read and Discussed)
Under time pressure, the founders must analyse and
choose their seed financing: selling their company,
partnering with a corporate sponsor or starting an
independent business. Relevant Chapters: 2, 3, 4, 8,
18.
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| Case 4: |
Global Wireless Ventures - (B)
Offered venture capital in three locations, founders
must choose the best entrepreneurial context to local
the headquarters of their company. Relevant
Chapters: 8, 11, 13.
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| Case 5: |
Jon Hirschtick's New Venture - (F. Penultimate Case Read)
Examines advantages and disadvantages of single vs.
staged financing options for this young computer
aided drafting (CAD) company. Relevant Chapters:
12, 13, 18.
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| Case 6: |
Artemis Images - (C)
A dynamic media company founded on digitizing
photo and video archives for special interest groups
discovers that even with a solid strategy, execution is
easier said than done. Relevant Chapters: 10, 16, 17,
18, 20.
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| Case 7: |
RADCO Electronics - (E)
A successful startup based on a using chemical
sensors to probe agricultural fields must deal with
'growing pains' (organizational, political and
strategical) as it expands. Relevant Chapters: 10, 11,
12.
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First Session Details
| Case 1: Danger, Inc . |
| Synopsis |
Danger, Inc. describes a startup in Silicon Valley that must analyze and decide on the best companies for its portfolio of manufacturing and carrier partners. With a complete solution that enables wireless carriers to offer innovative and affordable voice and data products to their customers over next-generation networks, Danger Inc. was a hot Silicon Valley startup. The founding team had successfully implemented a first-generation integrated solution, won numerous awards from the industry for their innovation, received enthusiastic consumer reviews for their handheld product, and had signed on their first major customer, T-Mobile. At this point, Danger needed to build a portfolio of strategic relationships that would help bring its technology to mainstream markets. |
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| Questions: |
1. Which wireless carriers were the leading candidates to create wireless data services based on the Danger platform for their customers around the world?
2. Which companies were the most attractive potential partners to design and manufacture Danger-compatible handheld devices?
3. How could Danger develop trust and collaboration with prospective partners who were often in fierce competition with one another?
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First Session Details
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Case 2: Biodiesel, Inc. |
| Synopsis |
Biodiesel Inc. is a mini-case study that involves three UC Davis students exploring an opportunity in biodiesel, an renewable organic product that can replace or complement original diesel fuel. The students come up with a business model starting with local producer's cooperatives.
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| Questions: |
1. What are the key factors in determining if this is a viable business opportunity? Is this just an idea or a real business opportunity?
2. What contextual (economic, regulatory, industry) factors should Biodiesel Inc. be aware of? What markets and market drivers should they focus on?
3. What are the flaws in the current business strategy? Flesh out their current business strategy. What partners and alliances do they need in order to be successful in production, distribution, marketing, and overall? |
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First Session Details
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Case 3: Yahoo!
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| Synopsis |
This case examines the challenges that Yahoo! founders Jerry Yang and David Filo faced in analysing and choosing a first-round financing option. With the possibility of either selling Yahoo! outright, partnering with a corporate sponsor or starting an independent business, Jerry and Dave have to consider not only the established culture and needs of their novel fledging webportal, but their own personal entrepreneurial goals and vision for Yahoo!. The pressure is also on them to make a critical decision, as Mike Moritz of Sequoia Capital offers them deal with a 24 hour deadline.
This case also includes excerpts from the original Yahoo! business plan.
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| Questions: |
1. What makes Yahoo! a true business opportunity and not just an idea? How do Dave and Jerry's personal goals and vision for Yahoo! align with each of their financing options? What is the vision and the value of Yahoo!? What is its business model and strategy?
2. Analyze the Yahoo! business plan using Sahlman's model as presented in Figure 8.7 (p. 191). Identify the major risks in each of these categories: deal, resources, people, and opportunity.
3. What are the advantages and disadvantages of each of the funding options Yahoo! could pursue? |
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First Session Details
| Case 4: Global Wireless Ventures |
| Synopsis |
Global Wireless Ventures examines the issue of entrepreneurial context. Entrepreneurs must judiciously choose the best enviroment for a home base to support their new venture, weighing not only the location's unique assets, liabilities and risks, but also their own personal needs. This case also provides a good overview of the global wireless industry and industrial clusters that support its growth.
Please see this document for corrections to Global Wireless Ventures diagrams in Dorf/Byers 1st Edition.
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| Questions: |
1. What is GWV's target customer and target market?
2. What factors should GWV consider in comparing the entrepreneurial context in Singapore , Sweden and Silicon Valley ?
3. Research Kista , Sweden and Singapore . Based on this research, what are the assets, liabilities and risks in the context of each region?
4. What assets (besides smart money) do you think are most critical for a start-up like Global Wireless Ventures? What institutions are likely to help you access those assets in each region?
5. Which region has the best context for GVW? Why? |
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First Session Details
| Case 5: Jon Hirschtick's New Venture |
| Synopsis |
Jon Hirschtick was ready for another entrepreneurial project and decided to leave his steady job to start Solidworks, a company aimed at developing powerful CAD (computer aided drafting) tools for lower end computing systems - which was then a wide open market. This case follows Jon through the steps he took to recruit a solid technical team through to his initial attempts at and offers of securing funding. For this initial funding round, Jon must decide whether Solidworks needs all the money upfront in a single round of capital or if the company should take the money in stages in order to obtain more favorable terms from the investors.
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| Questions: |
1. Evaluate Jon's team. What made Jon so successful at recruiting key players to Solidworks? What functional members of the team does he still need, within and outside of Solidworks? What are the potential advantages and disadvantages of having Michael Payne from PTC join the team?
2. Why has this deal attracted venture capital? Think about the team and the opportunity.
3. Can the founders optimize their personal financial returns and simultaneously ensure that SolidWorks has sufficient capital to optimize its chance of succeeding? What factors should the founders consider?
4. How can the s
yndicate optimize its potential return? What factors should it consider?5. Structure a deal that will serve the best interests of the founders, the company and the venture capital firms. |
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First Session Details
| Case 6: Artemis Images
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| Synopsis |
Artemis Images is based on entrepreneur Christine Nazarenus's vision of building a dynamic company for digitizing photo and video archives. With a seemingly solid team and content management expertise, Chris falls upon a perfect opportunity with the Indianapolis Motor Speedway Corporation (IMSC) archive to jumpstart her own business. She and her partners propose a long-term revenue-sharing business model, which differs from the traditional model of selling media management systems. Artemis also proposes to differentiate itself from its competitors with not only better content, but also better search functionality through its collection as well as merchandising options and community chatrooms. With a solid marketing and sales strategy and a promising market, where did Artemis make a wrong turn.
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| Questions: |
1. What are the main differences between an S-corporation and a C-corporation? Why did Artemis reorganize as a C-corporation?
2. How is Artemis going to make money? What are Artemis's main assets? What are the risks involved in the revenue-sharing model?
3. How is Artemis being funded? What are the advantages and disadvantages of each source of funding? Examine the projected financial statements for Artemis. Is this a good deal for investors? As an investor, what would you be wary of?
4. Artemis seemed to have a sound business model and strategy on paper. What went wrong in the execution? What considerations did the team overlook - in themselves and in their vision?
5. What should Artemis do next? |
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First Session Details
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Case 7: RADCO |
| Synopsis |
This case is centred around the 'growing pains' that
a rapidly growing company faces. RADCO
Electronics grew out of the successful
commercialisation of a simple method for probing
agricultural fields with inexpensive chemical
sensors. Expanding to different industries, the
rapidly expanding company is challenged with
organisational, political and strategical issues. The
company is outgrowing its centralized management
and organizational hierarchy and is considering the
restructuring of its upper management and
budgeting procedures. Questions arise in how
customers are billed and which departments are
actually bringing in revenue.
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| Questions: |
1. What are the intellectual property issues that
RADCO Electronics faces? What are the advantages
and disadvantages of keeping their software
algorithms a trade secret rather than patenting the
idea? Given that they do not have the patent to the
sensors, how can they better approach the sensors
issues?
2. What are the major flaws in the current
organisational design and what are the effects on
RADCO? What can be done to improve the
organizational and management structure? What
should be done about Poulos and Sells, if anything?
3. Given that Moore's 'Crossing the Chasm' model
suggests that a company should 'put all its eggs in
one basket' and secure a vertical before branching
out to other industries, can you gage how well
RADCO is doing? " Analyze Exhibit? Do you agree
with ExCom's centralised budget or Braun's
decentralised budget? What are the advantages and
disadvantages of each? Consider the effects beyond
the financial context.
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| List of Sessions: |
First Session Details
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Office hours are between 7:00pm and 9:00pm every Tuesday in Room7, 3a Buccleuch Place.
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Optional
Session 1
(21/9/05) Wed. 16:00 - 18:00
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Topic:
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- Introduction and Entrepreneurial Perspective
- Entrepreneurship in Scotland
- Entrepreneurship as an Alternative
- Course overview |
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Speakers:
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Mike Clouser:16:00 - 17:00
John Lee: 17:00 - 17:30
Break "Italian Sandwiches by Sadivino": 17:30 - 18:00
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Required Readings:
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Optional Readings:
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- Global Entrepreneurship Monitor (Scotland 2004).
To be handed out in class
- Fred Terman at Stanford : building a discipline, a university, and Silicon Valley
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Learning Outcomes:
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- Learn the entrepreneurial perspective.
- See entrepreneurship as a career alternative.
- Learn some basics about entrepreneurship in
Scotland and why its encouraged.
- Meet other classmates and learn social skills.
- Begin to form teams.
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Location Details:
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Room G11
William Robertson Building
George Square Campus |
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| Online Resources: |
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Stanford Technology Ventures Overview
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Edinburgh MBA Entrepreneurship Club
(You are invited to
join
for free)
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The Edinburgh-Stanford Link
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Second Session Details
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Session 2 (28/9/05) Wed. 14:00 - 18:00
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| Topic: |
- Creativity, Improvisation and Confidence
- Idea or Opportunity?
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| Speakers: |
- Mike Clouser: 14:00 - 15:30
- Ralph Clarke (Intellectual Harvesting): 15:30 - 16:30
- Liza Sutherland (Pufferfish): 17:00 - 18:00 |
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| Required Readings: |
- Read Note on Case Study Method from Stanford Technology Ventures Program (to be handed outin class)
- Technology Ventures: Chapters 1, 2, 3, 5 and 6
- The New Business Road Test: Chapters 1, 2 and 3 |
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| Optional Readings: |
- De Bono: Six Thinking Hats.
- Sutton, Robert: Weird Ideas that Work.
- Komisar, Randy: The Monk and the Riddle. |
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| Learning Outcomes: |
- Understand the Role of Creativity in Entrepreneurship.
- Learn how to improvise: attention to reality, flexibility, trust, teamwork.
- Meet other classmates and learn social skills.
- Begin to form teams.
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| Location Details: |
Room G11, William Robertson Building,
George Square Campus. |
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| Online Resources: |
- Robert Milne Online Video
- Why Be an Entrepreneur Now?
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Third Session Details
| Session 3 (5/10/05) Wed. 14:00 - 18:00 |
| Topic: |
- Idea to Opportunity
- Negotiation |
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| Speakers: |
- Mike Clouser (Case Discussion): 14:00 - 15:00
- Mike Clouser (Negotiation): 15:00 - 16:30
- Break: 16:30 - 17:00
- Graeme Bryce (Factonomy): 17:00 -18:00
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| Required Readings: |
- Read Case "A"
(Biodiesel, Inc.)
- Technology Ventures: Chapters 8
- The New Business Road Test: Chapters 4, 5 and 6
- Note on Market Research from Stanford Graduate School of Business (to be handed out in class) |
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| Optional Readings: |
- Schultz, Howard. Pour your Heart Into It
- The Beermat Entrepreneur: Turn Your Good Idea into A Great Business
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| Learning Outcomes: |
- Learn the difference between an idea and an opportunity. |
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| Location Details: |
Room G11,
William Robertson Building
George Square Campus |
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| Online Resources: |
- 10 ideas VCs will fund |
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Fourth Session Details
| Session 4 (12/10/05) Wed. 14:00 - 18:00 |
| Topic: |
- Feasibility and Assessment |
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| Speakers: |
- Adam Burdess (LBS): 14:00 - 16:30
- Adam Burdess: 17:00 -18:00
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| Required Readings: |
- Read Adam Burdess Handouts.
- The New Business Road Test: Chapters 7, 8 and 9
- Read Case (Chrysalis) (to be handed out in class) |
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| Optional Readings: |
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| Learning Outcomes: |
- Learn the basic skills necessary to research and assess a market opportunity.
- Learn and apply Mullin's "seven domains of attractive opportunities" . |
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| Location Details: |
Room G11, William Robertson Building,
George Square Campus |
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| Online Resources: |
- Brian Hickey lecture "On Opportunity"
- 10 ideas VCs will fund
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Field Trip Details
| Optional Field Trip (25/10/05) Tue. 10:00 - 17:00 |
| Topic: |
- Incubators: Hard and Virtual
- Field Trip to the Hillington Park Innovation Centre
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| Program: |
Depart: 10.00
Arrive: 11.30
Program: 11.30-13.00
Lunch: 13.00-14.00
Leave: 15.30
Arrive back by 17.00 |
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| Details: |
Caledon Coaches
Coach to pick up at 10.00 – George Square. In front of Hugh Robson Building.
Limit of 22 including tutor(s)
Mobile is 07051.240486
alex@calcoach.dircon.uk |
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| Learning Outcomes: |
- Gain knowledge of incubators and what services they offer to client companies
-Explore Hillington Park's “Hard” Incubator as well as its new “Virtual” wireless incubator
- Analyze and categorize the range of support options to startup companies from 3rd parties
- Evaluate an incubator and its services
- Network with innovent centre managers and startup companies
- Consider an incubator as a potential location for a future new venture
- Learn about the business environment for startups in the City of Glasgow |
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| Location Details: |
View Details |
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| Online Resources: |
- Scotland's National Center for Wireless and Mobile Application
- Internet Ecomonics: Market Trends and Analysis
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- National Business Incubation Association |
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Seventh Session Details
| Session 7 (2/11/05) Wed. 14:00 - 18:00 |
| Topic: |
- Presentation and pitching |
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| Speakers: |
- Bill Joos (Garage.com): 14:00 - 16:30
- Break: 16:30 - 17:00
- Bill Joos: 17:00 - 18:00 |
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| Required Readings: |
- Read Case "D" (Global Wireless Ventures)
- Technology Ventures: Chapters 8,18 and 19
- Bill Joos Handouts |
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| Optional Readings: |
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| Learning Outcomes: |
- Learn the fundamentals of negotiation
- Learn how to create a good elevator pitch
- Learn how to position your product or service most efficiently
- Learn how to master the skill of creating a presentation, including the PowerPoint version
- Learn and practice communication skills essential to raising capital, securing customers, and recruiting employees
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| Location Details: |
Room G11, William Robertson Building,
George Square Campus. |
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| Online Resources: |
- Garage.com
- Negotiations from STVP |
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Eighth Session Details
| Session 8 (9/11/05) Wed. 14:00 - 18:00 |
| Topic: |
- Unfair Competitive Advantage
- Bootstrapping Strategy
- Execution
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| Speakers: |
- Alex Ogilvie (Objective Associates): 14:00 - 15:00
- Tom Byers (Stanford University and LBS): 15:00 - 16:30
- Break: 16:30 - 17:00
- Tom Byers (Case Discussion 'Yahoo'): 17:00 - 18:00 |
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| Required Readings: |
- Read Case "G" ('Yahoo', 'Yahoo! 1995:First Round Financing')
- Technology Ventures: Chapter 4 and 6
- Tom Byers: Yahoo Case |
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| Optional Readings: |
- Nesheim: The Power of Unfair Advantage: How to Create it, Build it, and Use it to Maximum Effect
- Bootstrap: Lessons Learned Building a Successful Company from Scratch (book) |
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| Learning Outcomes: |
-Learn the concept of unfair competitive advantage.
-Learn how to think in terms of unfair compettive advantage when conceptualising and planning an information technology business venture.
-Understand the basics of bootstrapping.
-Learn about raising a first round of financing thro |
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| Location Details: |
Room G11, William Robertson Building,
George Square Campus. |
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| Online Resources: |
- Sales Strategy 101
- The Secrets of Bootstrapping
- Start with Nothing
- Bootstrap
- Bootstrapping Tactics |
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Nineths Session Details
| Session 9 (16/11/05) Wed. 14:00 - 18:00 |
| Topic: |
- Sources of Funding |
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| Speakers: |
- Sandy McKinnon (Pentech Ventures): 14:00 - 15:00
- Geoffrey Thompson (Braveheart Ventures): 15:00 - 16:30
- Break: 16:30 - 17:00
- Mike Clouser (Case Discussion): 17:00 - 18:00 |
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| Required Readings: |
- Read Case "F" (Jon Hirschtick's New Venture)
- Technology Ventures: Chapter 16, 18 and 20 |
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| Optional Readings: |
- Bootstrap: Lessons Learned Building a Successful Company from Scratch (book)
- Leasing as a Source of Capital – Chapter 10 of High Tech Startup by John Nesheim
- Bankers and Bootstraps as Funding Sources – Chapter 11 of High Tech Startup by John Nesheim
- Angels and Other Sources of Venture Capital: Chapter 12 of High Tech Startup by John Nesheim
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| Learning Outcomes: |
- Inspiration for bootstrapping a business startup and raising friends and family start-up capital.
- Learn the differences in the financial structures and climate for young companies across the Europe , the UK , Scotland and the United States.
- How to create a believable 3-year plan
- Explanation of sources of finance, including:
- Venture Capital.
- Business angels.
- Government help.
- Various loans.
- Factoring etc.
- The differences and relative pros and cons of:
- Bootstrapping.
- Friends and family.
- Angel investors.
- Venture capital, seed stage.
- Venture capitals, 1st round.
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| Location Details: |
Room G11, William Robertson Building,
George Square Campus. |
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| Online Resources: |
- Perspectives on the Rise of India and China
- Bootstrapping, still a great way to raise money |
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Tenth Session Details
| Session 10 (23/11/05) Wed. 14:00 - 18:00 |
| Topic: |
- IP, Legal, Accounting |
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| Speakers: |
- Mike Clouser: 14:00 - 15:30
- Chris Martin (Lindsays): 15:30 - 16:30
- Break: 16:30 - 17:00
- Chris Martin: 17:00 - 18:00 |
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| Required Readings: |
- Read Case "E" (RADCO Electronics)
- Technology Ventures: Chapter 10 |
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| Optional Readings: |
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| Learning Outcomes: |
- Learn basic accounting (mainly cash flow forecasts)
- Gain a basic awareness of tax laws for entrepreneurs
- Explanation of basic legal/regulatory issues for start-ups plus different types of business e.g. sole trader, partnership, company etc. with benefits and disadvantages of each
- Learn various IP defence mechanisms and the basic IP types (mostly copyright issues).
- Learn technology licensing strategies |
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| Location Details: |
Room G11, William Robertson Building,
George Square Campus. |
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| Online Resources: |
- The UK Patent Office website
- The UK Government's IP Portal
- Companies House
- company law basics factsheet
- company directors handout
- Times Online Enterprise Library |
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Eleventh Session Details
| Session 11 (30/11/05) Wed. 09:00 - 18:00 |
| Topic: |
- Presentations to Investors |
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| Speakers: |
- Sandy McKinnon
- Gordon Eadie
- Raymond Abott
- Mike Rutterford
- Peter Shakeshift,
- Geoffrey Thomson
- Mark Hogarth
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| Learning Outcomes: |
- Increase communication skills and better presentation style.
- Gain an ability to think on one’s feet and answer questions.
- Learn how to strategically present as a team.
- Learn the type of questions and concerns that angel financiers and venture capitalists will have.
- Learn how to present to a venture capitalist or angel investor under pressure |
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| Location Details: |
2 Buccleuch Place
HCRC
School of Informatics
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| Online Resources: |
- Nuturing and Growing Early Stage Ventures
- Business Plans – Templates and Guides |
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First Session Details
| Optional Networking Session (22/03/06) Tue. 18:00 - 22:00 |
| Topic: |
- Fun: Scottish Entrepreneur to speak, currently founded company in Silicon Valley |
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| Program: |
Starts: 18.00
Finishes: 22:00 |
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| Details: |
to follow |
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| Optional Readings: |
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| Learning Outcomes: |
-How to give an “Elevator Pitch”
-How to introduce yourself to someone you don’t know
-Learn about business etiquette in social sessions
-How to build your personal brand
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| Location Details: |
Playfair Library, Old College |
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| Online Resources: |
- Last Year's Event
- The Surge of Social Entrepreneurship
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