University of the PhilippinesAyala Foundation Technology Business Incubator TBI - PowerPoint PPT Presentation

Title: University of the PhilippinesAyala Foundation Technology Business Incubator TBI


1
University of the Philippines-Ayala Foundation
Technology Business Incubator (TBI)

• Mercedes M. Barcelon
• Senior Manager
• Ayala Foundation

2
Overview

• Established in 1993 via a Department of Science
  Technology grant to the University of the
  Philippines (UP)
• Re-launched in 2000 through a UP- Ayala
  Foundation collaboration on a parcel of 5
  hectares of land donated by UP in its Science
  Technology Parks South sector
• The TBI is located in what is now called UP-Ayala
  Techno Park, a Philippine Economic Zone Authority
  (PEZA) registered Information Technology zone
  in Diliman, Quezon City, a suburb of Manila

3
Objectives

• Encourage collaboration between the academic
  community and industry
• Develop a model that will produce the manpower
  needed by the country to become globally
  competitive in Information Communication
  Technology
• Develop human and institutional capacity to
  encourage technology based entrepreneurs

4
Target Market

• Technology start-ups
• RD service providers
• knowledge-based activities

5
Current Status

• TBI consists of a 520 square meter building with
  8 tenant-locators
• Plan for an expanded facility to offer more space
  is yet to be implemented
• It is currently managed through a Steering
  Committee and a Project Management Team

6
The Locators

• Fluxion, Inc.
•  One of the leading platform developers and
  solutions providers for mobile technology in the
  Philippines. It is the first beneficiary of the
  incubation program of iAyalas Ideafarm, a
  former locator at TBI.  
• Products include
• Fatbox Platform, a proprietary platform for
  deployment of
• SMS, WAP, Internet and MMS based applications.
• Fatbox SMS launched as Globe StorIt
• Fatbox Corporate launched as Mobile MyDocs
• SMS War Game launched by Smart Combat game
  simulation
• Photo Album, virtual personal and photo library
  launched by
• Globe
• Mobile Cam, real time traffic photo updates on
  your mobile
• phone launched by Globe

7

• OptiServe Technologies, Inc.
•  
• A company involved in the design, development and
  integration of custom-built applications software
  for education, local government units and
  business.
•  
• Products include
• CMBIS, developed for electric distribution
  facilities
• SUCCeSS school management software
• LOGGINS access to government services and
  information

8

• I-Gate Solutions Technologies Corp.
• The company produces environmental control units
  for telecom companies. It is involved in the
  development and manufacture of automation
  products for cell site applications.
• Products include
• Digital transfer switch with temperature control
• Transient voltage surge suppressor

9

• Integrative Learning
• A Knowledge-Systems Integration Company. A
  content innovator that provides a pioneering
  e-learning venue offering the first Master's
  Degree Program for teachers in the Philippines
  and other developing countries. It uses the,
  multi-intelligent distance learning protocol as a
  standard for distance education design and
  delivery.
•  
•  Astra (Philippines), Inc.
•  
• Develops software and hardware solutions for
  export, mainly to Japan. It also engages in
  research and development in areas such as Optical
  Character Recognition, Mobile and Wireless
  Computing, and Entertainment Software, to name a
  few.

10

• Systema Computer Solutions Corporation
•  
• A software company that delivers business
  solutions using innovative and cost effective
  information technologies. SYSTEMA is in
  partnership with 10art-ni Corporation, a Japanese
  web system consulting and development company,
  SYSTEMA plans to conduct research and development
  pertaining to 10art-nis Web Work Bench Software,
  an application framework product for Java
  development.

11

• Center for Economic Policy Research Center
  (SHARED Asia Project)
• The Center for Economic Policy Research has
  been designated as the Asian focal point for
  Scientist for Health Research and Research for
  Development (SHARED), a web-based knowledge
  management approach designed to foster networking
  among health scientists in developing and
  developed regions.
• The Center is in partnership with UP Manila
  Information System, the Philippine General
  Hospital, the National Institute of Health and
  the Philippine Center for Health Research and
  Development.

12
Lessons, Challengesand Best Practices
13
Overview of the Philippine ICT IndustryThe
Philippine ICT industry must move along the
Global Supply Chain in order to become globally
competitive
Global Supply Chain
Finance, Distribution and Support Services
Raw Materials / Resources
Assembly and Component Construction
Programming and Basic Services
Basic Construction
Design and Engineering
Indonesia
Philippines
India
Japan
Low Labor Cost High Risk Low Value Added Product
Oriented
High Labor Cost Low Risk High Value
Added Services Oriented
Continuum
14
Five areas have been identified as critical
success measures
These areas address stakeholder concerns and
contribute to the success of the TBI
Produce viable enterprises
Opportunities for growth exist
Professor retention satisfaction
UP benefits from research opportunities
TBI is financially self-sufficient
15
Measure of Success Produce Viable Enterprises

• Promote TBI effectively
• Screen for key locator attributes
• Assemble a dynamic mix of locators
• Provide locators with services they need

Produce viable enterprises
Opportunities for growth exist
UP benefits from research opportunities
Professor retention satisfaction
TBI is financially self-sufficient
16
A formal, integrated promotional process
communicated TBIs differentiation
Segment Target Markets
Generate Key Messages
Utilize Appropriate Channels

• Target markets include
• Entrepreneurs
• Multinationals
• Key stakeholders

• Appropriate channels that are
• Strategically relevant
• Cost-effective

• Differentiation points include
• Link with UP
• Ayala connection
• Significant room for expansion

17
A promotional plan used available resources
News and publication features
Word-of-Mouth
Student Club Sponsorship

• Resources include
• AFI marketing
• UP marketing
• Ayala marketing
• Networks

Industry Training Seminars
Entrepreneurship Fairs
Corporate Academic Networks/
18
Discussion Forum Groups

• Regular Kapihan or idea exchange
• Katipunan Brain Gain Network
• Creativity and Innovation Advocates
• Venture Capitalists
• Manufacturing Linkage Program
• Electronic Industries Association of the Phils.

19
Measure of Success Produce Viable Enterprises

• Promote TBI effectively
• Screen for key locator attributes
• Assemble a dynamic mix of locators
• Provide locators with services they need

Produce viable enterprises
Opportunities for growth exist
UP benefits from research opportunities
Professor retention satisfaction
TBI is financially self-sufficient
20
A focus on key locator attributes to produce
viable enterprises
Limited resources dictate that the TBI maximize
its yield of success
Focusing on key locator attributes increases the
yield of viable enterprises
High yield of success required
Lower yield of success acceptable
21
A venture capitalist approach to screen locators

• Complementary locator features
• Locator offers distinctive intellectual or
  physical assets
• Locator will use intellectual or physical assets
  available

Pool of potential locators

• Business plan
• Minimal size of the market
• Novelty of the concept
• Business viability of the concept
• Measurable targets

VC approach to screening
Viable enterprises

• Financial requirements
• Cash burn rate
• Sources of funding

• Management attributes
• Commitment
• Abilities

22
Entry Criteria

• Value creation in any of these technologies
•  
• Information and Communication Technology
• Internet technology
• Network technology
• Wired and wireless technology
• Data communication
• Digital signal processing

23
Entry Criteria

• Products and services in support of ICT
• Algorithm development
• Software design and development
• Hardware design and development
• Microelectronics design

24
Entry Criteria

• Documentary Requirements for Pre- Qualification
• Articles of Incorporation and/or Business
• Registration papers
• Business License current year
• Company/Business Profile
• Proposed use of the space detailing
• activities to be performed
• Latest audited financial statements

25
Measure of Success Produce Viable Enterprises

• Promote TBI effectively
• Screen for key locator attributes
• Assemble a dynamic mix of locators
• Provide locators with services they need

Produce viable enterprises
Opportunities for growth exist
UP benefits from research opportunities
Professor retention satisfaction
TBI is financially self-sufficient
26
A dynamic mix of companies leverages available
resources and reduces risks
27
A proper focus on the variety of size and
industry of locators will contribute to the
success of the future expanded project

• Size variety
• Emphasis on recruiting a few key, large locators
  in order to attract a host of smaller
  entrepreneurial companies. One or two key large
  locators can serve as catalysts for attracting
  smaller ones
• IT Subsector diversity
• By focusing on obtaining a diverse sampling of IT
  locators, the project would be able to leverage
  unique and creative resources while reducing risk

28
Measure of Success Produce Viable Enterprises

• Promote TBI effectively
• Screen for key locator attributes
• Assemble a dynamic mix of locators
• Provide locators with services they need

Produce viable enterprises
Opportunities for growth exist
UP benefits from research opportunities
Professor retention satisfaction
TBI is financially self-sufficient
29
Service delivery processes vary according to
level of commonality
Developing system- and human-based service
interfaces add value to locators

• System Interface
• Intranet-based
• Easy to access
• Easy to use

More robust platform over time
COMMON NEEDS
locator needs classified

• Personal Interface
• Service Coord.
• On-site
• Professional

Enhanced knowledge base of Service Coordinator
over time
CUSTOM NEEDS
30
A significant aspect of the value proposition
offered is the diversity of services provided
The success of locators can be greatly enhanced
by the services offered
Types of Services
locator
locator
Operational
Connectivity Maintenance Utilities
locator
locator
Business Development
UP Resources Interaction between
locators Industry links
locator
locator
Professional Services
Legal (including IP) Finance Marketing
locator
locator
31
Formal assessment and continuous improvement of
locator service needs enhance growth
Service offerings begin with MOA and continue
throughout relationship
Periodic Process
Continuous Improvement
Formal need assessments between Project mgmt team
locator
Pre MOA
Review service offerings and add new services as
necessary
32
Vision

• A Philippine entrepreneurial environment that
  fosters the emergence of new business ventures
  that will create jobs, elevate local skills, and
  fuel the national economy

33
What PESO will provide

• To Connect
• Networking venues for members of academic,
  business, industry and investment sectors
• Mentoring by experienced entrepreneurs and
  industry experts
• To Create
• Guidance in writing professional business plans
• Opportunities for refining presentation skills
  and presenting to potential investors
• Knowledge transfer between MIT/Silicon Valley and
  PESO competitors
• To Catalyze
• Accelerate the product concept to market process
  that can help build the national economy
• Post-competition support for winning teams and
  business plans

34
Model The MIT 50K Competition

• Most prestigious and successful entrepreneurship
  competition in the United States
• 15 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 BankBoston study

35
Measure of Success UP Receives Benefits from
Research Opportunities
Produce viable enterprises
Opportunities for growth exist

• UP to maintain and develop appropriate resources
• UP to develop a comprehensive IP plan

Professor retention satisfaction
UP benefits from research opportunities
TBI is financially self-sufficient
36
Updating, Linking to, and Providing Access to
Adequate Resources are Critically Important
Considering three aspects of resources will
provide relevance and usefulness to locators
Provide Access
Maintain and Develop Adequate Resources
Facilitate Linkage
Continuous Improvement
37
The decision of which resources to provide is
important
Encourage means to inventively recreate
capabilities
Establish a source of information, distribute
that information, and promote the use of that
information

• Human Resources
• Professors
• Students
• Faculty
• Administration
• University links
• Facilities
• Research labs
• Testing facilities
• Computers, workstations, printers, etc.
• Processes
• Beta testing sites
• Business processes (IP drafts, etc.)
• Research drafts
• Confidential information

• Establish an information source of ongoing
  research
• University of Philippines
• Locators
• Establish appropriate channels for communication
  of research
• Web-based
• Newsletters, printed media
• Service coordinator
• Word of mouth
• Promote the use of information
• Incentives for use of/contribution to information
  source
• Recognition of successes

• Monitor Global Capabilities
• Philippine Competitors
• Southeast Asian Competitors
• Global Capabilities
• Upgrade Aging Facilities
• Assess needs of current research
• Establish a source of financing
• Facilitate Creativity in Developing Improvement
• Reward creative ideas
• Introduce continuous improvement management
  techniques
• Recognize successes
• Implement Improvement

Provide Access
Maintain and Develop Adequate Resources
Facilitate Linkage
Continuous Improvement
38
Measure of Success UP Receives Benefits from
Research Opportunities
Produce viable enterprises
Opportunities for growth exist

• UP to maintain and develop appropriate resources
• UP to develop a comprehensive IP plan

Professor retention satisfaction
UP benefits from research opportunities
TBI is financially self-sufficient
39
UPs Technology Licensing Office provides a
comprehensive IP plan to benefit from research
opportunities of the TBI
Manage entrepreneur, professor, student
expectations

• Comprehensive intellectual property plan

Provide the UP with the required protection of
its legal rights
UPs university wide intellectual property
program
Ease the collaboration of all parties involved
40
Measure of Success TBI is Financially
Self-Sufficient
Produce viable enterprises
Opportunities for growth exist
UP benefits from research opportunities
Professor retention satisfaction
TBI is financially self-sufficient

• Address future financial concerns

41
TBI faces challenges in bringing about financial
stability

• Current situation
• 100 occupancy
• 5 Million Peso Reserve from corporate sponsor,
  Ayala Corporation
• 10 Million Peso grant for hardware from Mirant
  Foundation when a special project, the Java
  Research Development Center was established
• 20 Million Peso grant from the World Bank infoDev
  grant to help foster entrepreneurship and private
  sector development
• Challenges and concerns
• - Bleak economic situation
• Delayed building of additional space
• No provision available yet for co-location and
  opportunities for growth of start ups
• Replacement Reserve
• No funding set aside for capital improvements,
  maintenance, etc.
• Bigger concern as building ages

42
World Bank infoDev Grant

• Aimed at fostering entrepreneurship and private
  sector development in developing countries.
• Dedicated to establishing a network of incubators
  to facilitate the emergence and development of
  ICT-enabled small and medium sized enterprises
  (SMEs) in developing countries.

43

• Foster the use of ICT in micro, cottage and small
  businesses and start ups
• Disseminate best practices in IT based business
  incubation

44

• Programs
• Connectivity Network
• Business Resources Inventory
• Service Clinics
• Training
• Idea Exchanges/For a
• Biz Dev Plan Competition
• Entrepreneur learning Labs
• Philippine network of business incubators
  accelerators

45

• Programs
• Best Practices Sharing
• Needs Analysis
• Awareness Raising
• Policy Advocacy

46
Java Research and Development Center (JRDC)

• A 4-way collaboration Mirant Foundation, Ayala
  Foundation, Sun Microsystems, UP
• Incubating facility for small enterprises who
  want to avail of the following services/
  competencies
• Java and Internet Technologies
• Open Technologies
• Project Management
• Software Quality Assurance
• Technology Research and Innovation

47

• ServicesJava Consulting, Software
• Applications Development, Project
• Management Implementation,
• Training Maintenance Support
• Incubation
• Web Applications Testing Services
• Technology Research
• Software Tool Room
• Product Development Java-based
• applications in both Open Source and
• Unix platforms

48
Measure of Success Increase UP Professor
Retention and Satisfaction
Produce viable enterprises
Opportunities for growth exist
UP benefits from research opportunities
Professor retention satisfaction

• Address all professor motivations

TBI is financially self-sufficient
49
Professors are Motivated by the Promise of both
Financial and Non-financial Rewards

• Financial Rewards
• Consulting Fees
• Research Generated Equity

• Non-financial Rewards
• Reputation
• Personal Enjoyment

Provide Access to VCs and interested Locators
Provide Access to interesting Locator Research
Encourage Research done for Locators to be
Published
Encourage Research to be done that has a
Commercial Motivation
Encourage Research to be shared among colleagues,
locators, and other Universities
50
Measure of Success Opportunities for TBI Growth
Exist
Opportunities for growth exist
Produce viable enterprises
UP benefits from research opportunities
Professor retention satisfaction

• Identify key processes to allow growth of TBI

TBI is financially self-sufficient
51
Processes need to be flexible in order to grow
Do we have the processes in place to get to the
next level?
Start-Up
High Growth
Mature

• Sources of funding to reach the next level?
• Management skills required?
• Strategic focus?

52
Key challenges to deliver on the promise of a
technology business incubator

• Lack of Specialized Expertise
• Lack of Research Space
• Lack of Room to Grow
• Tendency to promote to only large companies
• Maintaining the upkeep of building
• Ensuring service interface
• No supporting light-industry in the area
• Improvement of the tenant entry criteria and
• establishment of exit criteria