30
E-Business March 28, 2007 www.houstontech.org Robert Brackenridge Director, Technology Program Houston Technology Center (713) 658-1750
E-Business
March 28, 2007
www.houstontech.orgRobert Brackenridge
Director, Technology Program
Houston Technology Center
(713) 658-1750
AgendaAgenda
HTC Background
Modes of Commerce
Market Opportunities
Web-Based Startup Costs
How Does this Affect Me?
AgendaAgenda
HTC Background
Modes of Commerce
Market Opportunities
Web-Based Startup Costs
How Does this Affect Me?
HTC BackgroundHTC Background
HTC opened in 1999
Non-profit business accelerator for Houston based emerging technology companies (or companies strategic to our region)
Operations funded by Houston area corporations and institutions
Target technology sectors that are key to the region’s economic growth
Enhance Houston’s position as a leading technology city
Create jobs!
Energy - Energy capital of the world
Visualization and discovery, gathering, processing and transmission, alternatives
Information Technology - Home to hundreds of software, hardware, telecom companies
Life Sciences - World’s largest medical center
Devices, pharmatherapeutics, diagnostics, biotech, health care IT services
HTC Technology FocusHTC Technology Focus
HTC Technology FocusHTC Technology Focus
NASA Technologies - NASA’s Johnson Space Center and the related aerospace industry
Tech transfer and commercialization
Nanotechnology – Leading nanotechnology center
Multi-sector applications
HTC SCORECARD: HTC SCORECARD: 1999 – 20061999 – 2006
Business Acceleration: 1000+ plans reviewed 190+ companies assisted 60+ current companies 40 graduate companies $500+ million raised 2500+ new jobs
Business Community Support: 300+ companies/providers 80+ high net worth investors
(HAN) 40+ Mentors 8000+ network $5+ million contribution/
support 2000+ active volunteersEducational Seminars:
100+ educational seminars 10 High-Profile Technology Forums TECbridge Program HTC University 42 Technology Champions Meetings
AgendaAgenda
HTC Background
Modes of Commerce
Market Opportunities
Web-Based Startup Costs
How Does this Affect Me?
Traditional Commerce
What did this transaction look like?
How did we reach an agreement?
What if I believed the bag of flour was only worth ½ a chicken?
Let’s go way back….
Imagine a time when there were no computers. You are a farmer taking your chickens to the market. You need to get some flour for your family and stock up for a possibly long winter…
Bartering
Chicken Flour
What force drove the transaction to occur?
Is this an efficient process?
What if the flour guy didn’t want a chicken?
Complex Bartering
Is this an efficient process?
What are my risks?
What if the banana guy didn’t want a goat?
Chicken Flour
Goat Banana
Traditional CommerceFast forward a few hundred years…
You are now in a US colony (Virginia) with a common form of currency, specific to that colony. You are that same farmer in need of the flour. Your chicken is really old…
What did this transaction look like?
Currency Exchange
Where are the costs involved with this transaction?
Has value been created or destroyed by the introduction of an intermediary?
Is this an efficient process?
What are some of the other tangible benefits?
Chicken $ Flour
eBay CommerceFast forward two hundred years…
You are the proud owner of a porcelain chicken, but your tastes have changed and you have decided that you would prefer to collect cow shaped cookie jars.
What did this transaction look like?
eBay Commerce
Doesn’t this appear to be more complex?
Why was PayPal able to insert itself into the transaction?
Is PayPal a short-term solution?
Chicken
PayPal $ $
CowCookie
Jar
PayPal
Virtual CommerceMoving forward ten years…
You are player of World of Warcraft. No chickens this time… You have an amulet you just acquired, but as a warrior, your true desire is the domination of your enemy through the use of a special sword…
What did this transaction look like?
Virtual Commerce
How does this compare to traditional currency exchange?
Has technology created / destroyed value?
Why is China so worried about this form of commerce?
Amulet WOW$ Sword
Why the Changes?
What problem did currency solve?
What problem did eBay / Paypal solve?
What problem did WOW$ solve?
Technology is never adopted unless it solves a real problem or creates significant value.
What are your observations about the rapidly shrinking timescale by which these changes are occurring?
AgendaAgenda
HTC Background
Modes of Commerce
Market Opportunities
Web-Based Startup Costs
How Does this Affect Me?
Where are the Opportunities? There is no substitute for first hand experience…
Industry knowledge Familiarity with the inefficiencies of a process Common wish lists not being served Bringing together parties which do not typically engage
New technology platform How are people using it? What obstacles are they overcoming?
Listen and Observe!
Rapidly adapt!
Where Else?
SOURCE: Forrester Research – “State of the Enterprise” (2006)
0% 20% 40% 60% 80% 100%
Integration
Security
SOA
Open Source
SaaS
Vendor Reduc.
Offshore
Critical Very Important Important Not Important N/A
AgendaAgenda
HTC Background
Modes of Commerce
Market Opportunities
Web-Based Startup Costs
How Does this Affect Me?
23
Cost to Build:
Monthly Maintenance:
$70,000
$30,000
24
Cost to Build:
Monthly Maintenance:
$48,012
$3,625
25
Cost to Build:
Monthly Maintenance:
$60,000
$150,000
26
Cost to Build:
Monthly Maintenance:
$20,000
$46,000
27
Cost to Build:
Monthly Maintenance:
$200,000
$3,000
AgendaAgenda
HTC Background
Modes of Commerce
Market Opportunities
Web-Based Startup Costs
How Does this Affect Me?
IT Startup Tips Develop from experience
Focus! Focus! Focus!
Start small, but great
Develop rapidly – the most agile will win
Listen to your customers
Venture Capital Advice Plan for uncertainty in the funding market
Assume that you will not be receiving another round of funding. Now what would you do?
Plow back all of your operating margin into the company for the first 12 months at a minimum
Generate revenue and validate your model as quickly as possible (In my humble opinion…)
Share your vision and generate the excitement!
