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FHZ 1
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
EntrepreneurshipEntrepreneurship
Apply your engineering talentto create your dream
company.But remember - starting a
companyis easy, building a successful
business is hard!frank@zeniegroup.comwww.zeniegroup.com
11 February 2009
FHZ 2
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
StreetSmart EntrepreneuringStreetSmart Entrepreneuring
Frankly SpeakingFrankly Speaking
Give me your email address – I’ll send ,pdf copyGive me your email address – I’ll send ,pdf copy
Your Questions will influence theYour Questions will influence theValue of my Answers.Value of my Answers.
FHZ 3
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
DisclaimerI have an Agenda! But, it’s not hidden.
DisclaimerI have an Agenda! But, it’s not hidden.
Have you heard about the hammer that thinks everything looks like a nail?
I’m an entrepreneur and I actually do believe that “Entrepreneuring” leads to the best
solutions to most business problems!
FHZ 4
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
My Advice to EngineersMy Advice to Engineers
Engineering, Technology and Scienceare Entrepreneurial Tools
Customers, not technology, are its foundation.
FHZ 5
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
What a change !What a change !
In the late 1950s, 1960s and 1970s, we tried to instill “successful” big company practices into emerging companies - probably destroying many.
In the 1980s and 1990s; Peter Drucker, Tom Peters and others challenged this.
Today, I believe we should be instilling entrepreneurial leadership into our largest companies - maybe we can save them.
FHZ 6
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
OK – What is an entrepreneur?
FHZ 7
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
What is an Entrepreneur?What is an Entrepreneur?
Entrepreneurs BUILD BUSINESSES through INNOVATIVE SOLUTIONS
to UNMET CUSTOMER NEEDS.(Note: Entrepreneurs do exist in the public and non-profit sectors.)
“Above all, innovation is not invention. It is a term of economics not technology.” *
Entrepreneurs create discontinuities – They obsolete accepted practices and change
behavior.* Peter Drucker
FHZ 8
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Fast vs. RightFast vs. Right
Mature Businesses -
“Right First Time”
Entrepreneurial Businesses -
“Fast First Time”
Is this true? Why?
FHZ 9
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
The Changing World of InnovationThe Changing World of Innovation
18th Century - 19th Century - 20th Century - 21st Century
ATG
Affluence
Technology
Globalization
Agriculture Age(farmers)
Industrial Age(factory workers)
Information Age(knowledge workers)
Conceptual Age(creators and empathizers)
Courtesy of Daniel H. Pink
“A Whole New Mind” Why Right Brainers Will Rule the Future
2005 - page 49
Maybe Walt Disneyand Steve Jobs
are our prototypes
FHZ 10
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Frank’s Entrepreneurial PrinciplesThe Fundamentals are Simple
Frank’s Entrepreneurial PrinciplesThe Fundamentals are Simple
Vision - what you hope to achieve through this venture.
Culture - a set of underlying, shared values.
Innovative Product/Market Strategy -what you will sell and how you will sell it.
Sound Business Model -how you will earn a profit.
Passionate Execution
FHZ 11
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Markets Don’t Exist Markets Don’t Exist – Only Customers– Only Customers
Markets Don’t Exist Markets Don’t Exist – Only Customers– Only Customers
The Entrepreneur’s Job is to: Identify potential customers Understand their unmet needs, business economics, constraints
& priorities Create innovative, high value-added solutions to these needs Define new MARKET segments which enable you to
communicate your benefits effectively! Leverage your market segmentation for differentiation &
strategic advantage – dominate a niche and build from there.This is not an analytical or statistical exercise, rather its a face to face, creative and interactive customer experience.
FHZ 12
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
What would you prefer?What would you prefer?
You have a business with $10 million annual sales serving a $1 billion market. Choose 1:
1% market share spread across the entire market,
or 100% of a $10 million niche within the broad
market.
Why?
FHZ 13
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Entrepreneurial vs. Traditional Market Perspectives
Entrepreneurial vs. Traditional Market Perspectives
Traditional Market DefinitionFor example - 1960s Traditional US car manufacturers.
Big, powerful & inefficient.
Toyota mid 1960sSmall, fuel efficient & Low Costfollowed by variety of new models
Lexus - 1989One Luxury Model, LS400followed by variety of new models
Today Prius & Hybrids
FHZ 14
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Intellectual PropertyIntellectual Property
Market Power (MP) TRUMPS Intellectual Power (IP)
The more successful you become, the more competition you will attract.
How many great products were sustained monopolies?
Likely response to your intellectual property: Respect your patent and invent an equivalent or superior alternative. Respect your patent and purchase a license from you. Respect your patent and abandon the market. Ignore your patent and reverse engineer and copy your product.
FHZ 15
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
MP Trumps IPMP Trumps IP
Monopoly
True Story - One of my companies files a patent suit against a much large competitor for patent infringement.
It took 9 years from filing suit to damage determination. Legal expenses reached $2 million. Management distraction - huge opportunity cost. Jury determined patent was valid and the competingproduct infringed. Judge confirmed infringement, but no willful act by infringer. Final damages $50,000 + interest for 9 years.
FHZ 16
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
A Real ExampleA Real Example
Founded in January 1999 All founders from Zymark Corporation Ken Rapp, NEU ‘84 President & CEO FHZ co-founder & Chairman
Headquartered in Hopkinton, MA Website – www.velquest.com Some of today’s customers:
Pfizer, Glaxo SmithKline, Bristol-Myers SquibbAstraZeneca, Eli Lilly, Johnson & Johnson
FHZ 17
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Our Founding ProcessOur Founding Process
Who is our customer? - From our prior experience, we decided to serve laboratories in the pharmaceutical, biotech and related industries.
We wanted to create Primary Demand rather than compete with existing products.
“Customer Research” - Using our contacts, we visited 50 companies to discover their unmet needs.
The CEO attended every meeting accompanied by at least one other founder.
FHZ 18
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Customer Research – How We Do ItCustomer Research – How We Do It
Find thoughtful, objective people. Go to them – face-to-face. Bring a colleague. Look and Listen Very Carefully
Briefly explain your objective Confirm host’s time constraints Promise to share your findings Ask open-ended questions Follow-up with clarifying questions Observe body language Never ask what they want. Inquire about problems and current solutions. Customers
will ask for incremental improvements to current solutions. Your job is to create a far better solution – discontinuities.
Send thank you note and ask if you can come back to share your findings and clarify and additional questions.
Best Question:What keeps you
up at night?
FHZ 19
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
What We FoundWhat We Found
Analyst/ChemistsData Creation, Investigations
and Documentation
QA/RegulatoryInspections and Audits
Supervisors & Data ReviewersReview, Checking and Approval
Customers reported resource constraints because increasing work loads and tighter time constraints.
Digging deeper; in manual paper-based systems the FDA requires layers of redundant checking to claim data integrity.
As regulations increased, more resources were diverted from doing to checking and documenting.
We discovered that 70% of their total laboratory resources were committed to compliance.
FHZ 20
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
The FDAThe FDA
The FDA regulates US food and drug businesses. While it’s a US agency, it’s a strong model for Europe
and Japan. Many regulations are being globally harmonized because pharma is rapidly moving to global organizations.
Most FDA regulations for development and manufacturing are called Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP) – they are quite similar. We use GMP to describe the family of regulations.
Redundant Checking vs. Computer Validation
FHZ 21
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
VelQuest’s NicheVelQuest’s Niche
We created a new segment - “GMP Electronic Notebooks”
We are not a LIMS, ERP, Document Management System or many others - we make them more valuable.
If Microsoft is desktop, VelQuest is benchtop. We replace “paper notebooks” with fully
validated electronic data acquisition, documentation and quality verification.
FHZ 22
TheZenieGroup
StreetSmart Entrepreneuringwww.zeniegroup.com
Thanks
Questions and Discussion
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