1. Master of Business Synergies (MBS) Inspiring Innovative Cross-functional Combinations New-Generation post-MBA Inspirational Learning for the New Rapidly Changing Knowledge-driven Economy by Vadim KotelnikovVadim Kotelnikov Founder Ten 3 Business e-Coach – innovation unlimited! www.1000ventures.com September 2004

2. Master of Business Synergies (MBS) by Dr. Vadim Kotelnikov Founder, Ten 3 Business e-Coach for Innovative Leaders www.1000ventures.com 1. WHY MBS? 2. WHAT is the content of MBS? 3. HOW can you benefit?

3. Master of Business Synergies (MBS) Inspiring innovative cross-functional combinations! 1000ventures.com © Vadim Kotelnikov To win today and tomorrow, you need new MBS competencies to:  build your cross-functional excellence  build an adaptive organization  master systemic innovation  build synergies between your complex business system and social system  leverage the power of diversity  to achieve sustainable business growth Meeting the Challenges of the New Rapidly Changing Knowledge-driven Economy The Formula of Synergy 1 × 1 × 1 = 111 MBS is not about mastering operations, it is about inspiration and business innovation. MBS helps you discover new growth opportunities by placing you in a creative chaos environment, encouraging synergistic thinking about your business system, and inspiring innovative cross-functional combinations.

4. The Tao of Business Success Leveraging Diversities and Finding the Delicate Balance 1000ventures.com Yin Passive, accepting side Yang Active, aggressive side BALANCED COMPANYOutside InInside Out BALANCED GROWTHBottom line: Efficiency improvement Top line: Venturing & Speed BALANCED MANAGEMENTWorking IN your businessWorking ON your business BALANCED LEADERSHIPEmployee empowermentCoaching & Energizing BALANCED PROCESSESManaging operationsManaging innovation INNOVATIONIncrementalRadical CHANGE MANAGEMENTAdapting to changeCreating change CUSTOMER SUCCESSListening & TailoringLeading & Co-innovating PEOPLE & ALLIANCESManaging differencesHarnessing diversity © Vadim Kotelnikov

5. Master of Business Synergies (MBS) Coaching Innovative Leaders for New Organic Organizations Key Features OLD MECHANISTIC ORGANIZATION NEW ORGANIC ORGANIZATION Management StyleCommand & ControlEntrepreneurial Leadership OrganizationPyramid, robustFlat, responsive Decision MakingVerticalDistributed InnovationLinearSystemic Growth ManagementStrategic ManagementChange Management Process ManagementFunctionalCross-functional 1000ventures.com MBS – new post-MBA creative learning:  MBA tells you, ‘Be a good administrator – understand different functions’  MBS tells you, ‘Be an innovative leader – create synergies across functions’ © Vadim Kotelnikov

6. Business Systems The Balanced Approach YOUR BUSINESS WHEEL An unbalanced wheel will roll neither fast nor far Case in Point Balancing 10 resources between 2 perspectives Case A: 10 x 0 = 0 Case B: 9 x 1 = 9 Case C: 8 x 2 = 16 Case D: 7 x 3 = 21 Case E: 6 x 4 = 24 Case F: 5 x 5 = 25 1000ventures.com Customer STRATEGY Innovation FinanceProcesses

7. 1000ventures.com Sustainable Competitive Advantage Synergy of Distinctive and Reproducible Capabilities © Vadim Kotelnikov Your Sustainable Competitive Advantage TANGIBLE  Intellectual property rights  Exclusive licenses  Statutory monopolies INTANGIBLE  Strong brands  Leadership  Tacit knowledge & skills  Teamwork  Organizational culture  Business processes  Partnerships DISTINCTIVE CAPABILITIES (cannot be replicated by competitors) REPRODUCIBLE CAPABILITIES (can be replicated by competitors)  Technical capabilities  Financial capabilities  Marketing capabilities  Explicit knowledge  Non-exclusive licenses

8. Master of Business Synergies (MBS) New-Generation post-MBA Inspirational Learning Create synergistic – winning! - cross-functional combinations Build your sustainable competitive advantage by creating a synergistic combination of your distinctive capabilities 1000ventures.com © Vadim Kotelnikov by building an adaptive organization and synergistic business processes Manage change effectively by building your lateral thinking, entrepreneurial and people skills Unlock your entrepreneurial creativity Manage innovation systemically – with speed! by building your cross-functional excellence and innovation system by balancing continuous improvement and venture strategies Achieve sustainable business growth

9. Master of Business Synergies (MBS) by Dr. Vadim Kotelnikov Founder, Ten 3 Business e-Coach for Innovative Leaders www.1000ventures.com 1. WHY MBS? 2. WHAT is the content of MBS? 3. HOW can you benefit?

10. Master of Business Systems (MBS) x Master of Business Synergies (MBS) = Master of Business Success (MBS) Personal Development × People Skills × Systems Thinking Venture Management Venture Financing Venture Investing Venture Strategies Entrepreneurial Leadership Sustainable Growth Synergistic Marketing Systemic Innovation Synergistic Partnerships Synergistic Processes 1000ventures.com © Vadim Kotelnikov Entrepreneurial Creativity Synergistic Organization Master of Business Synergies (MBS)

11. Master of Business Synergies (MBS) 12 Courses and Their Target Users 1000ventures.com Businesses MBS e-Courses Start UpSmallMedium & Large Venture ManagementXXX XX Venture FinancingXXX X Venture InvestingXXXX Venture StrategiesXXXX Entrepreneurial LeadershipXXX Entrepreneurial CreativityXXX Synergistic OrganizationXXXXXX Synergistic PartnershipsXXX Sustainable GrowthXXXXXX Synergistic MarketingXXX Systemic InnovationXXX Synergistic ProcessesXXX

12. 1000ventures.com Master of Business Synergies (MBS) courses Entrepreneurial Creativity PERSONAL DEVELOPMENT  Creative Thinking  Achievement Management  People Skills ENTERPRISE CUSTOMER OPPORTUNITIES  Discovering Opportunities  Pursuing Opportunities  Moving with Speed  Creating Customer  Winning Customer  Retaining Customer COMPETITION  Competitive Advantage  Competitive Strategies  Change Management  Creative Business Models  Venture Management  Innovation Management © Vadim Kotelnikov

13. CONTINUOUS GROWTH RAPID GROWTH INITIAL GROWTH START UP Define product & market niche. Prepare a venture plan. Prepare a business plan. Build management team. Protect your intellectual property. Brand company. Position & launch the product. Create platform to expand lines. Capture market share. Launch differentiated produce. Gain repeat customers. Expand channels & revenues. Expand management team. Train and coach employees. Start inventing your second stage of growth. Reinvent differentiation & competitive strategies Cultivate leaders. Empower employees. Broaden lines, extend geographic coverage. Inject relentless growth attitude in your people. Build a balanced business system. Keep reinventing your growth strategies. Establish a responsive innovation system. Develop capability for flexibility & speed. 1000ventures.com © Vadim Kotelnikov Master of Business Synergies (MBS) courses Venture Management

14. 1000ventures.com Master of Business Synergies (MBS) courses Entrepreneurial Leadership Leadership Arts, Skills, & Tasks  Leadership Attributes  Entrepreneurial Creativity  Strategic Thinking  Business Systems Thinking  Results-based Leadership  Volatility Leadership  Energizing & Coaching  Change Management CUSTOMER Results INVESTOR Results ORGANIZATION Results EMPLOYEE Results © Vadim Kotelnikov

15. MBS Courses: Sustainable Growth 1000ventures.com© Vadim Kotelnikov IMPROVEMENT STRATEGIES Synergistic Organization  Inclusive Company / 7-S Model  Corporate Capabilities  Results-Based Leadership  Innovation Management System Value Chain Management  Business Process Management  Systemic Innovation  Continuous Improvement VENTURE STRATEGIES Disruptive Product Development  Radical Project Management  In-company Ventures  Spinouts  Cooperative Research & Design Strategy Innovation  Opportunity-driven Growth  Venture Investing / Acquisitions  Joint Ventures Balanced Business System Managing Change & Moving with Speed Competitive and Differentiation Strategies VISION Building Your Sustainable Competitive Advantage

16. 1000ventures.com Master of Business Synergies (MBS) courses Synergistic Processes PERSONAL DEVELOPMENT  Process Thinking  Cross-functional Excellence  Systems Thinking PROCESS ENTERPRISE CUSTOMER PROCESS MGMT SYSTEM  Business System  Enterprise Process Mgmt  E-Business  Creating Customer Value  Customer Service  Customer Partnership INNOVATION  Leveraging Diversities  Process Innovation  Innovation Process  Strategic Achievement  Adaptive Organization  Cross-functional Teams © Vadim Kotelnikov

17. VENTURE STRATEGIES In-company Ventures Spinouts Venture Investing Venture Acquisitions IMPROVEMENT STRATEGIES Incremental Innovation Continuous Improvement Firm (CIF) Quality Management & Six Sigma Synergistic Acquisitions & Joint Ventures “Shun the incremental and go for the leap“ - Jack Welch 1000ventures.com © Vadim Kotelnikov Master of Business Synergies (MBS) courses Venture Strategies

18. 6 in 1000 business plans get funded on an average 5% of business plans are read beyond the executive summary 10% of proposals pass initial screening 10% of pre-screened proposals pass due diligence & receive funding Opportunity Introduction Initial Screening Due Diligence Negotiating Funding - presentation, executive summary, milestone chart, cash flow forecast - management team, business plan - management, personnel, marketing, production, financials, references - valuation, ownership, control, management, legal contract 1000ventures.com Selection Parameters Master of Business Synergies (MBS) courses Venture Financing

19. Investment motivations Investment criteria Finding deals Initial screening Due diligence Negotiation and actual investment Post-investment monitoring Exiting and realizing returns Preparation Following Up Investing 1000ventures.com Master of Business Synergies (MBS) courses Venture Investing

20. Top Management Team Leading Innovation Cross-Functional Teams Mapping Innovation Road People Empowered Employees Driving Innovation Culture Supporting Innovation Vision & Strategy for Innovation Processes, Practices, & Systems Supporting Innovation Working Environment 1000ventures.com Master of Business Synergies (MBS) courses Synergistic Organization

21. BUSINESS innovation © Vadim Kotelnikov ORGANIZATIONAL innovation PRODUCT innovation PROCESS innovation MARKETING innovation TECHNOLOGY innovation STRATEGY innovation 1000ventures.com Master of Business Synergies (MBS) courses Systemic Innovation

22. MARKETING GROWING TOGETHER RETAININGSELLING 1000ventures.com © Vadim Kotelnikov  Customer-focused Company  Service-Profit Chain  Customer Intimacy  Listening  Observing  Creating Value  Branding  Differentiating  Communicating  Influencing  Customer Service  Customer Relationships  Customer Satisfaction  Customer Value Proposition  Positioning & Advertising  22 Laws of Marketing  Relationship Selling  Persuading People  Closing the Deal Master of Business Synergies (MBS) courses Synergistic Marketing

23. Master of Business Synergies (MBS) by Dr. Vadim Kotelnikov Founder, Ten 3 Business e-Coach for Innovative Leaders www.1000ventures.com 1. WHY MBS? 2. WHAT is the content of MBS? 3. HOW can you benefit?

24. Vadim Kotelnikov Founder, Ten 3 Business e-Coach, www.1000ventures.comwww.1000ventures.com E-mail: vk@1000ventures.comvk@1000ventures.com THANK YOU! 1000ventures.com Master of Business Synergies (MBS) How You Can Benefit 1.You’ve already benefited by going through this inspirational presentation 2.You can start learning MBS yourself free of charge. Brief and free MBS e-courses are available at 1000ventures.com (Click here)Click here 3.You can order inspirational MBS in-house training courses for your organization. (Click here to see the details.)Click here 4.You can provide MBS training / consultancy to others yourself. (Click here to subscribe to the full version of the Ten3 Business e-Coach.)Click here 5.We can provide MBS training to others together as a joint venture. (Click here to see MBS partnership opportunities for innovation catalysts)Click here