Strategies for Business Alliances CALED's 23rd Annual Economic Development Training

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Strategies for Business AlliancesCALED's 23rd
Annual Economic Development Training
Presentation

• Ken Dozier
• Far West RTTC
• 04/17/03

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The Future

• When the Rate of Change Outside is Greater Than
  the Rate of Change Inside, The End Is In Sight

Jack Welch, Chairmen General Electric
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Velocity

• According to Silicon Valley
  CEOs, 60 of the high-tech items
  they manufacture today did not exist 10 months
  ago

Lon Hatamiya, Secretary - California Trade and
Commerce Agency
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What is Knowledge ?
Truth
Knowledge
Belief
Universal
Social
Personal
No Debate
Converge on debate
Diverge on debate
Effect
Cause
Cause
10 Philosophical Mistakes (Adler 85)
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The Future
where ... The ENIAC is equipped with 18,000
vacuum tubes and weighs 30 tons, computer in the
the future may have only 1,000 vacuum tubes and
weigh only 1.5 tons
- Popular Mechanics, 1949
This Telephone has too many shortcomings to be
seriously considered as a means of communication.
The device is inherently of no value to us
- Western Union, Internal memo, 1876
The problem with television is that the people
must sit and keep their eyes glued on a screen
The average American family hasnt time for it
- New York Times, 1949
I predict the internet... Will go spectacularly
supernova and in 1996 catastrophically collapse
- Bob Metcalfe, 3COM founder and inventor, 1995
There is no reason anyone would want a computer
in their home
- Ken Olson, president and founder, Digital
Equipment Corp., 1977
Source The Future is Ours Communication of
the ACM, March 2001
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The Non-Linear
Developers
Drivers

• Gates Microsoft Xerox
• Jobs Apple Xerox
• Clark SGI ES, Stanford
• Clark Netscape University of Illinois

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Global Competition
1. 2.

• Finland
• Luxembourg
• Netherlands
• Hong Kong
• Ireland
• Sweden
• Canada
• Switzerland

Source The world Competitiveness Yearbook IMD
International
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Make Sell vs. Sense Respond
Chart Source Corporate Information Systems,
Applegate
Federal Agencies, SBIR Mission Based, Linear
(push) Universities Curiosity Based, emerging,
(push)
Chabol (large companies) hierarchy, products
based, (push)
Venture Niche markets, public trading (pull)
Incubators and Science Parks created to bridge
gap between development and commercialization
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Industry Clusters
(ERI/McGraw Hill,Americas Clusters,1995)
Key Export Oriented Firms
Consumer Electronic Assembly
Computer Hardware Assembly
Industry Cluster Electronic
Key Supplier Oriented Firms
Tool, Die Machinery
Office Production Supply
Specialized Component Supply
Key Economic Infrastructure Providers
Education Training Institutions
Physical Infrastructure Providers
Financial and Regulatory Institutions

• Industry Cluster collections of competing and
  collaborating industries in a region networked
  into horizontal and vertical relationships,
  involving strong common buyer-supplier linkages,
  and relying on a shared foundation of specialized
  economic institutions. Because they are built
  around export-oriented firms, industry clusters
  bring new wealth into a region an help drive the
  regions economic growth.

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Industry Clusters
(ERI/McGraw Hill,Americas Clusters,1995)
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Industry Clusters
(ERI/McGraw Hill,Americas Clusters,1995)
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Clusters
Gus Koehler, USC
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Clusters
Human Resources
Start-up Early Stages Rapid Growth
Mature Declining
Gus Koehler, USC
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Clusters
Gus Koehler, USC
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Clusters
Gus Koehler, USC
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Americas Most Wired Town
In 2000, Blacksburg, VA Total population
43,849 Total Households 15,319
Source Demographic Profile BEV, Andrea Kavanaugh
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Blacksburgs Telecommunication Philosophy

• Public has funded parks, roads, libraries,
  safety and sanitation for over 50 years.
• Every service was once provided by the private
  sector
• Public took over to protect common good
• Public Investment in telecommunications is
  necessary for viability in the Information
  economy.

Source Andrew Cohill, Telco. For neighborhood
and communities
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Blacksburg's Level Playing Field

• Regulated monopoly service providers invested
  infrastructure in a risk free environment with
  a guaranteed rate of return.
• In many communities this is a source of income
• Local and regional entrepreneurial start-ups must
  compete against established monopolies.

Source Andrew Cohill, Telco. For neighborhood
and communities
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Blacksburgs Edge

• Modestly Invest in four low risk
  telecommunications areas.
• Allows startups access to the infrastructure
  needed to remain viable in the Information
  Economy.
• This has
• Spurred further private sector investment
• Created jobs
• Expanded the tax base
• Provided greater choice in services

Source Andrew Cohill, Telco. For neighborhood
and communities
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Community Investments
Community investment in duct allows small and
regional entrepreneurial telcom companies to
compete with old monopoly services providers
may be provided by either the community or the
service provider. All present and future voice,
video, and data services can be delivered to the
homes on a single fiber pair
Duct
Date exchange Points
Dark Fiber
Multimedia Service Access points, keep local
video, voice, and Internet data traffic within
the community which reduce costs for all in the
community
Co-location facilities
Co-location facilities provide a place for
service equipment. Shared facilities reduce cost
for all.
Source Micheal Cohill, Telco. For neighborhood
and communities
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Media Bandwidth
Source 1999 Fall Meeting, Community
Development Council, Chuck Matthews INFOWORLD,
Sept. 2000
ATM
Gigabit Ethernet
IEEE 1394 / Firewire
LASER / Fast Ethernet
10BaseT / CAT 5
Microwave / Ethernet
G3 / Wireless LAN
DSL/ Cable
G2 Wireless
G1 Wireless
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High Speed Services
High Burst
Frame Relay
SMDS
X.25
Myrinet
ATM/ BISDN
Switched T-Carriers
DSL
ISDN
Dial up
Dedicated Private line and Ethernet
Low Burst
64 K
1.5M
45M
150M
600M
1.6G
bps
Source Broadband Communication Systems, Conrad
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The right Network for you
The overall picture
Adapted From Residential Broadband by George Abe
(Cisco Press 1997)
Service Provider
Today lt5-years 10-years Beyond
SD HD
Broadcasters
Digital
Analog
MMDS
LMDS
LECs
POTS
ADSL
VDSL
FTTH
FTTC
MSOs
Cable
HFC
ATM
Wireless
CDMA
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Smart Building Project

• The connection point in each cubicle / office
• ATM to the desktop.
• A coaxial and fiber optic connection for next
  generation high-speed bandwidth requirements
  like streaming video and distributive computing.
• Additional Ethernet ports for multiple connection.

• The 6 packs
• 4 Category 7 cable
• 1 Fiber Optic
• 1 Coax Cable

• Energy and Efficiency

Image courtesy of Johnson Controls
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Planting the seed
Smart Lighting Systems
If you are going to build smarter buildings of
the future, you need to have smarter people. You
cant just build a buildings and they will come .
Fiber optics
ATM
Telementoring
Smart HVAC Systems
Modular System
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Media Cluster Project

• 2 floors / 28,000 sq.ft.

Feature include Screening Room, fiber optics, HQ
dubbing and recording room.
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(SB) Energy Achievements

• Penn Center West office park
• 64,000 sq.ft. gross
• 2 floors
• 66/sq.ft.

Source DOE Energy 2000
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(SB) Energy Achievements

• Thoreau Center for Sustainabilityrenovation at
  55/ft2, Able to achieve a 1.06 W/ft2 lighting
  usage (a 48 reduction)
• Ridgehaven Green Office buildingrenovation at
  37/ft2,Building that achieved a 60 reduction
  in energy consumption

Source EREC - Dept of Energy
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Assessing Your Technology
CIO Magazine June 2002
After-Technology (Customer Facing)
Industry Adoption of Technology
Before Technology (Non-Customer Facing)
CEO Not Involved
CEO Involved
Executives Approach to Technology
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Contact Information
For more information, please visit our website at
http//www.usc.edu/go/TTC
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