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Tech Business 101 : 7/19/2016

SILC 2016
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Jeremy Callinan

on 19 July 2016

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Transcript of Tech Business 101 : 7/19/2016

Tech Business 101 : 7/19/2016

Who I am
Jeremy Callinan
- started selling software in 1998
- was webmaster at Pitt-Bradford 01-04
- graduated from Pitt-Bradford in 2004
- Teaching since then (Web Design, Android Programming, Security, Networking, Game Programming, Project Management)
- Started protocol 80
- Started tblurts
- Developed some startups as a partner, including wearable tech and several apps
- Developed trailmaker.org, pottermorenews.com
- Started/owned restaurant/bar
- Currently consulting for business in PA and NY
- Experience in manufacturing, oil & gas, retail
How to think about tech business potential
Enrico Fermi and Dr. Frank Drake

Creating something new
and
Solving Fermi/Drake problems
http://en.wikipedia.org/wiki/Fermi_problem -

http://www.seti.org/drakeequation

Question: How can you apply Fermi's and Drake's ideas to estimating markets?
The Basics - Tech Business 101
protocol 80
Web design - Zippo, BRMC
Programming - Henkel Loctite
Web Hosting - over 100 customers
Content Management - over 100 customers
SEO - Search Engine Optimization
Social Networking / Advertising
How can you use what you know?
What I've done using web design/programming/IT skills:
- independent consulting
- teaching
- developing other website ideas
http://callinanllc.com/
- developing other software
- selling on eBay - Silver Zippo Lighters
- designing t-shirts
and selling them online
- 3d Printing
- Drones
- VR / AR
Conclusion
things change.

how you do them right, doesn't.

Working hard matters the most.

first: what -business
then: why - risk
finally: how - technology
In that order. Figure out what you're doing, why you want to, and if you should, then how to do it.

explain in 1 sentence, details on 1 napkin.
Business - what is it exactly, that you're doing? And, why is it best?

McDonalds - manage the largest chain of hamburger fast food restaurants
Abercrombie & Fitch - manufacture the best lifestyle clothing, with a focus on casual wear for young consumers
American Apparel - create a vertically integrated high quality clothing manufacturer, distributor and retailer.
Amazon - sell online at the best price/experience combination
eBay - host auctions online the most user friendly way possible, with the biggest market
GMC - sell the highest quality SUVs, pickup trucks, vans, light-duty trucks, and medium duty trucks
Nike - manage design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services
Risk - what is it, and how do you
manage it?

It boils down to:

The possibility that a business will have lower than anticipated profits, or that it will experience a loss rather than a profit.



Business risk is calculated by adding numerous factors, including:

sales volume
per-unit price
input costs
competition
overall economic climate
government regulations


A company with a higher business risk should choose a capital structure that has a lower debt ratio to ensure that it can meet its financial obligations at all times.
total debt = the sum of current liabilities and long-term liabilities
total assets = the sum of current assets, fixed assets, and other assets such as 'goodwill'
And what is your personal risk?
Your risk = opportunity cost +
financial cost
Most important:
Is it worth it to spend the time
on it?
Remember: you won't get it back.
Start on the back of a napkin.


1. Write your idea out on the back of a napkin
2. Explain the business (what)
3. List the risks (why)
4. Figure out the technology (how)
You are the business.
You are your job.
...If you want to be successful.

1. first line of personal computers
2. Macintosh, an all-in-one desktop computer.
3. NextStep, NeXT Computer in 1985.
4. The Graphics Group, later renamed Pixar in 1986.
5. iPod portable music player
6. iTunes store, downloading of music
7. iPhone
8. iPad
The Importance of Time -
Steve Jobs
"Your time is limited, so don't waste it living someone else's life."
"For the past 33 years, I have looked in the mirror every morning and asked myself: 'If today were the last day of my life, would I want to do what I am about to do today?'"
"You have to trust in something - your gut, destiny, life, karma, whatever"
"My favorite things in life don't cost any money. It's really clear that the most precious resource we all have is time."
"Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose."
Most of the real risk is you.
things change.

how you do them right, doesn't.

Working hard matters the most.
"A lot of people in our industry haven't had very diverse experiences. The broader one's understanding of the human experience, the better design we will have."
So, to manage risk & be successful:

Work hard. I mean, really work hard.
Innovate / be creative / think out of the box = don't be afraid.
No one is that smarter than you anyways. They just might be more well rounded though, so experience as much as you can.
So, how will you use technology?
Businesses will compete on analytics to differentiate themselves

Smart mobility will change the way people interact

Technology blurs boundaries - semantic web

Cloud computing takes off

The power of the individual will spur innovation

Government’s role in innovation grows
Next 5 years
1. Use cloud services to cut costs
2. Market smart with social media/email/etc
4. Sell online
5. Enhance customer service
6. Connect with prospects and partners
7. Get organized with project management software
8. Simplify scheduling with customers
9. Understand your customers and your business
10. Get paid instantly, anywhere
10 ways to use technology
Part 1. Back of the napkin
Part 2: Business (What)
Risk

The human species' use of technology began with the conversion of natural resources into simple tools.

The prehistoric discovery of how to control fire increased the available sources of food and the invention of the wheel helped humans in traveling and controlling their environment.

Recent technological developments, including the printing press, the telephone, and the Internet, have lessened physical barriers to communication and allowed humans to interact freely on a global scale.
In 1983 a classified program was initiated in the US intelligence community.

It's plan was to reverse declining economic and military competitiveness.

The program,
Project Socrates
, used all source intelligence to review competitiveness worldwide for all forms of competition to determine the source of the US decline.
What
Project Socrates
determined was that technology exploitation is the foundation of all competitive advantage and that the source of the US declining competitiveness was:

the fact that decision-making through the US both in the private and public sectors
had switched
from
decision making that was based on technology exploitation (i.e., technology-based planning)
to
decision making that was based on money exploitation (i.e., economic-based planning)
at the end of World War II.
Think about how other people are looking at tech:

http://www.springwise.com/top-10-business-ideas-opportunities-2015/

http://www.zdnet.com/10-creative-ways-businesses-are-using-tablets-7000026935/

take their ideas and make them better
Describing your business idea
http://www.entrepreneur.com/article/222439

Lenovo - designs, develops, manufactures and sells personal computers, tablet computers, smartphones, workstations, servers, electronic storage devices, IT management software and smart televisions
Started in 1984, they are now the world's largest PC manufacturer, despite starting to manufacture PCs 11 years after the first PC was sold.

"Our management team often differed on which commercial road to travel. This led to big discussions, especially between the engineering chief and myself. He felt that if the quality of the product was good, then it would sell itself.
But I knew this was not true
, that marketing and other factors were part of the eventual success of a product."

Lenovo's first significant effort, an attempt to import televisions, failed.

The group rebuilt itself within a year by conducting quality checks on computers for new buyers.

Lenovo soon started developing a circuit board that would allow IBM-compatible personal computers to process Chinese characters.
This product was Lenovo's first major success.
"PROTECT AND ATTACK"
http://www.fastcompany.com/1793529/protect-and-attack-lenovos-new-strategy
"
The most dangerous thing is to be successful.
You then think every decision is the right one. That's why you have to review what you do"
Lenovo didn't make their first PC until 1990.

Before that, they were
distributing and installing PCs produced by foreign manufacturers before expanding into their own
production of PCs and launching its own PC brand.
Rather than beginning with core proprietary technology and gradually developing downstream
capabilities in manufacturing, marketing, sales and distribution, Lenovo followed a reverse
development process from downstream (sales and distribution) to upstream (innovation).

initial stage of distribution and sale (1984-1990)
the ensuing manufacturing and technology developing stage (1991-2004)
branding and global deployment (2005-present)
Question: Why buy IBM's business?
Web design - Zippo, BRMC
Programming - Henkel Loctite
Web Hosting - over 100 customers
Content Management - over 100 customers
SEO - Search Engine Optimization
Social Networking / Advertising
1

2

3
Baidu - In 1996, while at IDD (a division of Dow Jones), Robin Li developed the RankDex site-scoring algorithm for search engines results page ranking and received a US patent for the technology. He later used this technology for the Baidu search engine.
Baidu Map
Baidu Yun
Baidu Japan
Baidu Post Bar
Baidu News
Baidu Knows
Baidu MP3
Baidu Image Search
Baidu Video Search
Baidu Space
Baidu Encyclopedia
Baidu Search Ranking
Baidu Web Directory
Baidu Government Information Search
Baidu Postal Code Search
Baidu Legal Search
Baidu Love
Baidu Patent Search
Baidu Games
Baidu-Hexun Finance
Baidu Statistics Search
Baidu Entertainment
Baidu Tongji
Baidu Dictionary
Baidu Youa
Baidu Desktop Search
Baidu Sobar
Baidu Wireless
Baidu Anti-Virus
Baidu Safety Center
Baidu Movies
Baidu Index
Baidu Bookmarks
Baidu Browser
Baidu Yi
Now, Baidu is:
Baidu's aspirations do not stop at mobile dominance in China.

The company announced last May that it would invest $300 million in an R&D center in Silicon Valley.

There are rumors that the center is developing a bike that could drive itself through packed city streets. More recently, there has been talk of a self-driving car concept.
Define a clear goal.
Then use the skills you acquired attaining
that goal to expand.
Risk is what defines if it's worth it. If there's no risk,
why not? But remember, your risk in total is a combination of financial risk, and opportunity cost.

Are you engaged in making this business successful?
Do you have the right team?

Question: What ways could you tell if employees are engaged and working hard?
I didn't know what we were going to do.

I knew that it would be cool to work for myself instead of someone else.


My grandfather owned his own business.

He was the boss.

I didn't know what I wanted to do, I knew I wanted to be the boss though.

El Jefe
part 4: technology
What we did in 2006 was totally different
from what we did in 2002.

What we did in 2011 was totally different
from what we did in 2006.


markets and consumers change.
things change.

how you do them right, doesn't.

Working hard matters the most.
things change.

how you do them right, doesn't.

Working hard matters the most.
things change.

how you do them right, doesn't.

Working hard matters the most.
what's important isn't specific technology.
things change.

how you do things right, doesn't.

Working hard matters the most.
Evaluate and use the best technology you can find our create.
what
why
how

what's important isn't specific technology.
things change.

how you do things right, doesn't.

Working hard matters the most.
Evaluate and use the best technology you can find our create.
what's important isn't specific technology.
things change.

how you do them right, doesn't.

Working hard matters the most.
Evaluate and use the best technology you can find our create.
Technology
http://www.cnbc.com/2015/05/22/workmode-start-up-creates-uber-like-drone-service.html
http://www.inc.com/magazine/201410/david-whitford/marcus-lemonis-the-profit-turns-around-failing-businesses.html
Today's topics for consideration:
3d printing, IOT, drones, and augmented / virtual reality

Product
People
Process

Reviewing what you do (Product, People, Process):
Can you captivate someone in
60 seconds?
Question: what business have changed drastically in the past 15 years?
And what outside factors influence these changes?
Question: What products do you know of that are really great, but suffer from little or no marketing?
Question: How can you minimize risk?
Question: How can you be sure you have a broad perspective on a problem in your business?
Question: What's the issue with economic-based planning?
Question: What else do you think will happen?
1. business plan - 3-5 years
2. funding sources / ownership percentages
3. management team / quarterly meetings
Listen to other people
4. 2 or 3 projects (defined through project management techniques)

Project Management
1. WBS - Work Breakdown Structure (pic next)
2. Gantt Charts (pic next)
3. Critical Path
4. PERT
5. Critical Chain


Execution - Actually doing it right
https://en.wikipedia.org/wiki/Theory_of_constraints
https://en.wikipedia.org/wiki/Program_evaluation_and_review_technique#Implementation
Entrepreneurship
Business Management
And then,
Execution
- later

Describe your business idea!
3 teams

1. What do you want to do?
2. How big is the market?
3. How much it will cost?
4. What are the biggest risks?
5. What advantages will your business have?
6. What human resources will you need?
7. How will you use technology?

(3-5 yr time frame)

Risk
New Markets to Explore
IOT - Internet of Things

http://littlebits.cc/


AR/ VR

AR - Pokemon Go / Ingress - https://www.surveymonkey.com/business/intelligence/early-pokemon-go-retention/

https://www.ingress.com/

VR - Occulus Rift, HTC Vive, Android Gear VR / (Occulus), others too!

3D Printing - Regular Extruder, multiple extruders, liquid resin - http://www.cnet.com/news/terminator-style-3d-printing-grows-objects-from-a-pool-of-liquid/

Drones - Delivery, Surveillance / monitoring - leaks / defects / etc
http://www.digitaltrends.com/virtual-reality/will-htc-spin-off-vive-business/
protocol 80

Now IT support +
web marketing
and consulting
Full transcript