Andre Joseph T.

Fournier
Master’s of Business Process Management 2012
Faculty of Science & Technology
ALAS 2011
4 Types of Entrepreneurship
1. Incremental
 Routine business, modest novelty (new coffee shop, new
BPO)

2. Imitative
 Imitation of venture, same business model and template
(new regional branch, franchised operations)

(Dorf & Byers)

4 Types of Entrepreneurship
3. Rent-seeking
 Business that utilizes standards, regulations and laws to share in
value of enterprise (licensing of patented ideas, products or
trade secrets - Coca Cola Export)

4. Innovative
 Business based on innovation (new cure for infectious diseases,
new production method to bring down drug cost, new DVD
format, new memory chip, ICT-enhanced home appliance)

(Dorf & Byers)

Technopreneurship Defined
 High tech ventures in ICT, electronics, internet, life
sciences and biotech, such as: Cisco, Microsoft, Intel,
Google, Genentech (upcoming: nanotech, materials,
energy, environment)
 Service firms where technology is critical to their
mission, such as: e-Bay, FEDEX, SMART money
transfer, e-learning
Other definitions of
Technopreneurship
Delivery or design of High Tech
product like Computer
hardware or devices
Use of technology in the
delivery or conduct of normal
business activities
A combination of both
More definitions
Technopreneur – the person who
destroys the existing economic
order by introducing new products
and services, new forms of
organization, use of new materials,
etc.
Destruction/Disruption by creating
a new business or doing it within an
existing one
Some successful Technopreneurs
 Sabeer Bhatia started Hotmail with $300,000 and
sold it two years later to Microsoft for $400
million.
 Yahoo! began as a student hobby and evolved into
a global brand that has changed the way people
communicate with each other, find and access
information and purchase things.
 Google was co-founded by Larry Page and Sergey
Brin while they were students at Stanford
University. Their IPO took place on August 19,
2004, raising $1.67 billion, making it worth $23
billion
More Successful Technopreneurs
 eBay was founded as a marketplace for the sale of
goods and services for individuals.
 Amazon.com was one of the first major
companies to sell goods over the Internet
 Skype was founded by 2 entrepreneurs from Estonia
and was acquired by eBay for $2.6bn (£1.4bn) .
 YouTube is a popular free video sharing website
which lets users upload, view, and share video
clips.It was acquired by Google in 2006 for $1.65
billion
4 February 2004
 empowered and
the
connected customer
But this is just all a fairytale as of
the moment
 There are important considerations before we can
move to a level where we can compete with foreign
giants
 Slapping the name “Technopreneurship “ to a degree
program without understanding the elements that
make such a program work can prove to be disastrous.
 Certain elements or “environment” is needed for such
a program to grow.
Some Basic Facts
 Businesses start from ideas, but ideas alone do
not make a business

 Customers do not buy ideas, they buy

products/services;

 Customers pay the price; value is what they get

Three crucial components for
business:

Excellentmarket opportunity
Superb entrepreneur (and
management team)
Resources needed to start the
company and make it grow
More Facts
 Education as a wholistic approach is needed to grow
technoprenurial talents
 Teamwork is essential-This cannot be done alone
 Emphasis on Technical , managerial and
entrepreneurial capabilities is important
 Develop the proper mindset to overcome weakness in
Filipino culture
Technopreneurship Trilogy

TECHNICIAN ENTREPRENEUR

MANAGER
Weaknesses
 Filipinos as investors are risk averse-Segurista
 No Collaboration-Kanya kanya
 Class room and learning environment does not match
the subject matter mostly pertaining to technology
 OJT system tends to marginalize student trainees
 No firm Academe-Industry linkage
 NO INTERNATIONAL CERTIFICATION
What is ITIL?
• ITIL is a documented set of best practices for ITSM
• IT service management (ITSM) is concerned with planning,
sourcing, designing, implementing, operating, supporting
and improving IT services that are appropriate to service
needs
• ITIL provides a comprehensive, consistent and coherent best
practice framework for IT service management and related
processes, promoting a high quality approach for achieving
business effectiveness and efficiency in IT service
management
 ITIL Service Lifecycle

Source: http://www.itservicemanagement-itil.com/tracer/itilv3-alignment/
Myopic Vision of some Institutions
 Facebook ban spurs picket at ***** de *****
 GMANews – Tue, Jul 19, 2011
 http://ph.news.yahoo.com/facebook-ban-spurs-
picket-ateneo-davao-162505497.html
Yes or No?
Dado Banatao
Filipino ICT Hero
Dado Banatao
Born and raised in Barrio Malabbac, Iguig, Cagayan
Valley, Banatao co-founded Mostron, Chips &
Technologies, and S3 .
Banatao is now regarded as a major contributor to
the PC industry. He holds several patents including
the first Windows graphical user interface (GUI)
accelerator chip. He also was the first to push the
idea of the "local bus" for the PC, and putting the
Ethernet controller on a chip.
Dado Banatao
Chips & Technologies eventually went public in
1995, 22 months after it was established. This
company was subsequently bought by Intel in 1997
for a reported 430 million dollars.
His other company, S3 (start-up number 3) also went
public and earned 130 million dollars in 1993, was
sold to VIA Technologies for $323 million and
continues to develop and market chipsets based on
the S3 graphics technology.
Recent successes of Dado
 Dado Banatao is now a multimillionaire
investor.
 Dado decided to start his own venture
capital firm named Tallwood Venture
Capital with a capital of US$300 million,
all of which came from his own pocket
Winston Damarillo
 Developed Gluecode Software as an
open source application system
provider
 Sold Gluecode to IBM in 2005 for an
estimated $100 million
 Launcedh Morphlabs and continues to
invest in start up IT companies.
Different Stages in ICT
Development
ICT Consumer
Manpower Supplier
BPO destination
Incubation and Innovation Hub
ICT HUB
Science and Technology Hub
Successful ICT Hubs
Silicon Valley
Taiwan S & T Hub
Bangalore
Japan S & T Hubs
Singapore S & T Hub
CyberJaya (upcoming)
Elements for a successful ICT
HUB
 Development of strategic talents thru Universities
and schools
 Culture of Innovation and Creativity
 Strong Public-Private Sector partnership
 Presence of Incubators and VCs
 Private sector takes the driver’s seat in
development
Davao City Strategy
 Empower Student-Technopreneurs thru
partnership with different Colleges and
Universities with eventual goal of
introducing a BS degree in
Technopreneurship
 Complement with Mentor/Expert
development thru scholarship assistance
 ICT Industry Sector Strengthening
 Promotion of Davao City-PESO business
plan competition
 Development of Technopreneurship Course in Davao City Universities
Critical Ingredients for Technopreneurship

Supply
Network

KB on Network of
Incubators Incubators

Courses

Steady S &T
Committee Deal Flow Education
Of
Funding
Incentive
Regime
Committee
Of
IP Regime Mentors /
Tutors

33 Nov. 27-Dec.2, 2006

 Entrepreneurs
Private Sector Benefit from the cheaper cost of holding
Owns/operates incubator
taxes office in an incubator. Benefits from training
and business assistance.

owns/operates
incubator
savings,
trainings, rent
business help

Incubator
Inexpensive office space with shared services revenues

for new startup businesses. Entrepreneurs

can become
suppliers to big
companies
credibility, Incubator
expert advice, consultancies donations
technology, for faculty
intellectual property

Universities
Gets revenue from research Big Industry
that gets commercialized. university Entrepreneurs could become part of their supply
Consulting opportunities for donations
chain.
faculty members. Internships
for graduating students.
(c) 2006 UP Ayala TBI
IT is not dead!
Other Strategies for Success
 Scholarships provide a means of
training staff and local businessmen in
new methods, technologies and
learnings
 Join Business Plan Competitions such
as PESO
Scholarships
PESO: a “brain gain” initiative by Filipino graduate students at MIT

 Inspired by the MIT $50k (now $100k)

Entrepreneurship Competition
 Established MIT PESO in 2004 with
help from the MIT Public Service
Center
 Met up with local PESO organizers with
MIT ties Mens et manus
“Mind and hand”
 Launched PESO Challenge: a – MIT creed
technology and innovation business
plan competition now on its 3rd year

©2004 Philippine Emerging Startups Open. All rights reserved. 41

Modeled After The
MIT $100K Competition
 Most prestigious and successful entrepreneurship competition in the United
States, formerly $50k competition
 17 years in the running
 Facilitated creation of 60+ companies
 Aggregate value of $10.5+ billion
 “If all the companies founded by MIT graduates and faculty formed an
independent nation, the revenues produced by the companies would make
that nation the 24th-largest economy in the world.” - 1997 Bank of Boston
study

©2004 Philippine Emerging Startups Open. All rights reserved. 42

The PESO Challenge is more than just your
usual business plan competition
• Technology and innovation
orientation Sci. & Eng’g Business
• Teamwork and diversity Academia Academia

• Workshops in entrepreneurship
skill-building Government Industry
PESO
• Mentoring and tech transfer
• Post-competition monitoring and Venture Capital Entrepreneurs
networking
• Teams own rights to plans
PESO establishes linkages
among key elements in the
Objective: Teams techno-entrepreneurship
form start-ups to bring their ecosystem
business plans to market

©2004 Philippine Emerging Startups Open. All rights reserved. 43

 What YOU can do to help
develop technopreneurs
 Be the point of first contact with
students and young SMEs/Entrepreneurs
 Provide support facilities for budding
technopreneurs
 Be Technopreneurs/investors yourselves!
 Spread the word/be disciples
 Call To Action
 Organize and strengthen the IT sector in
your area and provide a unified front
 Support SMEs/SMITEs in incubating
business
 Provide impetus for growth and
development
 Be a strategic partner to in developmental
efforts