1. FND 2610: Foundations of Business and Entrepreneurship Technological Entrepreneurship Week March 29. 2004

2. Session Outline Why is Technological Entrepreneurship Special? E-Ink?

3. More “Ecosystem” Complexity Products require integration of many technology streams (e.g., microprocessors) Individual products are used in larger overall systems (e.g., photo equipment) * Products serve B2B and/or B2C customers (i.e., components and end products) Many enterprises work cooperatively and competitively around a new innovation *  –Complex “enterprise ecosystems” –“Value networks” –“Coopetition” * Drawn from Dhebar, A., When It Comes to Marketing, Why Are High-Tech Products Special? (unpublished working paper, 2003)

4. More Dynamic Markets Technology streams exhibit “discontinuities” (e.g., substitution for mechanical watches) “Discontinuities” breed standards battles and dominant designs (e.g., MAC, UNIX, OS/2 and Windows ) Many products exhibit positive “network externalities” (e.g. cellular phones and VCRs) * Turbulent markets  –Continuous new product development –Threats to overconfident, successful incumbents –Opportunities for entrepreneurial enterprises * Ibid

5. More Technology and Market Risk Competitive advantage is technology-fueled (e.g., semiconductors) Technology resists planning and forecasting (e.g., “known-unknowns” and “unknown- unknowns”) “ Discontinuities” create turbulent markets Large, upfront expenditures and “distant returns” (e.g., biotechnology) Significant technology and market uncertainties and risks  –Significant potential value for customers, employees and investors –Broader and deeper support infrastructure and pools of resources

6. Unique Vulnerability Novel technologies are enticing on their own merits (e.g., third-generation mobile networks – 3G) They suggest many – often too many – promising product possibilities and opportunities (e.g., a 3G device will be a phone, computer, television, pager, video- conferencing center, a newspaper, a diary, a credit card, etc.) * “Build it and they will come mentality” (i.e., the technology will make it possible and its adoption by potential users somehow will miraculously follow)  –“Idea-driven” ventures –Low probabilities of success * Drawn from “The Economist: A Survey of Telecoms”, Not Just Talk (Vol. 369, No. 8345, October 11-17, 2003) p. 8

7. More Critical Roles For People Technology and innovation are inherently knowledge- based Innovation depends critically on key people “deep” in both technology and customer need * Role of people and learning is significant large –Critical role of intellectual property protection –“Learning” organizations * Drawn from Taylor, W., The Business of Innovation: An Interview with Paul Cook (Harvard Business Review, March-April 1990)

8. Session Outline Why is Technological Entrepreneurship Special? E-Ink