The Shape of Things to Come: Massachusetts 2020
June 18, 2010Newton Marriott Hotel
Mark Nemec, Ph.DManaging Director, Technology Industry Client Group
Forrester Research
Some Thoughts on The “Reset Economy”Mark R. Nemec, Ph.D.Managing DirectorForrester Research
June 18, 2010
5 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
We have experienced the “Gateway”Recession
6 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
Three Forces Driving Society
The State
Markets
Technology
7 Entire contents © 2010 Forrester Research, Inc. All rights reserved. Source: Forrester Research based on US Department of Commerce data
Communications equipment
Computer equipment
Software
0
1%
2%
3%
4%
5%
6%Innovation
andgrowth
Refinementand
digestion
Innovationand
growth
Refinementand
digestion
Innovationand
growth
Refinementand
digestion
19591–1970 1970–1976 1976–1985 1985–1992 1992–2000 2000–2010
Annual change in US IT investment-to-GDP ratio (CAGR)7.8% 1.1% 8.6% 0.2% 6.4% -4.7%
US
IT i
nve
stm
en
t-to
-GD
P r
ati
o
2010–2016
3.1%
Innovationand
growth
Beyond the Gateway
8 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
From Process Automation to Optimizing Results
Network computing helped automate transactional
processes in industries like manufacturing.
Next Gen (Smart, Cloud, Green) Computing will help make
collaborative processes more effective by better leveraging
assets and managing liabilities.
9 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
10 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
The Adoption Trend For Social Among Business Technologists Points UpApril 2010 “Social Technographics®: Business Technology Buyers”
11 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
Overall, the Future is Bright
12 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
Thank you
Mark R. Nemec
+ 1 617.613.6431
www.forrester.com
Jamie Goldstein General Partner
North Bridge Venture Partners
Communications & Infrastructure
Digital Media
Software
Materials
Healthcare Tech
NBVP at a Glance
Early-stage Investors
Seed & Series A
$2.3B under management
12 investment professionals
Bi-Coastal
Waltham, MA
San Mateo, CA
75 existing portfolio companies
Growth Areas for MassachusettsGrowth Areas for Massachusetts
1. Mobile
2. Video
3. Cloud Computing
4. Open Source
5. Healthcare IT
6. Advanced Materials
- Energy – Generation & Storage
- Lighting
Anchor Companies/Employers
• Starent, Quattro
• Akamai , SeaChange, Brightcove
• EMC, Citrix
• Acquia, Black Duck
• PhaseForward, Athena Health
• A123, 1366
• Color Kinetics, QD Vision
Post-Recession CompaniesPost-Recession Companies
1. Capital Efficient
• Limited capital to prove thesis
2. Scalable Business Model
3. Crisp Customer ROI
4. Inexpensive Access to Customers
5. Scrappy Management
Massachusetts’ StrengthsMassachusetts’ Strengths
Characteristics:
Technically challengingStrong ROIKnown customersWorldwide markets
Sectors:Communications EquipmentInfrastructure SoftwareAdvanced MaterialsLife Sciences
Massachusetts well positioned for the “new” economy
Frank van Mierlo
President
1366 Technologies
Solar at the cost of coal
19
Silicon can reach coal parity
*LCOE calculated assuming 5.75kWh/m2/day (17% capacity factor), a 7% discount rate, and a 30-year project life.20
We need disruptive manufacturing technologies
Need manufacturing innovations in Si PV
Invention: Bessemer Steel Process
Impact: Cut cost of steel by >60%,
Invention: Pilkington Float Glass
Impact: Cut cost of glass by >60%,
Direct Wafer
60% cost reduction in the manufacturing
of high quality standard Si wafer.
Direct Wafer
Old1. Cast Ingot 2. Cut Brick 4. Saw Wafers
Make Wafer
Pure Silicon
1366 Direct Wafer
1 Machine
3. Grind & Polish Brick
>45% Silicon Wasted
7.0g/W
<3.0g/W
23
• 156 mm wafer (or larger)
• Low CAPEX / high throughput
• High efficiency potential
• Double effective Si capacity
One year of US oil imports buys enough solar panels to generate the electricity for all
Americans to drive electric cars for 30 years.
Greg HerremaSenior Vice President and President of Analytical Instruments
Thermo Fisher Scientific
The Shape of Things To Come: Massachusetts 2020
Thermo Fisher Scientific Company Overview
Greg HerremaPresident, Analytical InstrumentsJune 18, 2010
27
Thermo Fisher Scientific Company Overview
• $10+ billion in revenues
• 35,000 employees in 40 countries
• 350,000 customers in 150 countries
• #234 on Fortune 500
• Innovative products
• Applications expertise
• Scientific productivity partner
• Thermo Scientific: innovation
• Fisher Scientific: convenience
Leading Brands
The world leader in serving science
Scale
Depth
28
An Increasingly Important Mission
Enabling our customers to make the world…
Healthier Cleaner Safer
29NOTE: Based on 2009 revenues
Attractive Revenue Profile
Complete Portfolio
Attractive End Markets
Unmatched Global Reach
Global leader in products and services for life sciences and healthcare
30
Thermo Fisher Response to Recession
Emerged a StrongerIndustryLeader
2009 Recession:Worst Economy in 20 years
• Returned to top-line revenue growth
• Deployed capital on M&A and stock buybacks
• Continued to expand leading presence in Asia
• Maintained R&D investment; launched successful new products
• Exceeded goals for cost reduction
31
Favorable Macro-Economic Trends
Aging populationMore than 2/3 of revenue from life science and healthcare markets
Growth in emerging marketsLargest footprint in Asia and continuing to expand
Increased concern for consumerproduct safety
World-class portfolio with strength in chemical, elemental and microbiological analysis
Increased environmental regulation Leading technologies in air, water and radiation monitoring
Thermo Fisher Scientific is Well-PositionedMacro Trends
Biopharma consolidationOnly supplier with depth of capabilities that enable customers to achieve merger synergies
32
Thermo Fisher Scientific in Massachusetts
Waltham
Agawam
BeverlyBillerica
Cambridge
Franklin
Milford
WilmingtonWoburn
Worcester
Global Headquarters: WalthamTotal Employees in Massachusetts: 1,400
• Agawam• Research Market Channel
• Beverly• Environmental Instruments
• Billerica• Process Instruments
• Cambridge• Biomarker Research Laboratory
• Franklin• Environmental Instruments
• Scientific Instruments
• Milford• Laboratory Equipment
• Wilmington• Process Instruments
• Woburn• Biosciences
• Worcester• Specialty Diagnostics
33
• 130 hospitals, teaching hospitals and medical centers
Medical
• 430 biotech, pharmaand research product companies
• Center of technology innovation
Life Sciences
Massachusetts: The Perfect Combination
SOURCES: Mass Biotech Council 2010; Mass Board of Registration 2009; College Board 2010;National Center for Educational Statistics, Fall 2010
Academia
• 100 colleges and universities• Research labs
• Nearly 450,000 students
34
Building on Our Industry Leadership
• Leveraging scale and depth
• Industry-leading brands
• Strong financial resources
• Commitment to innovation
• Expanding global presence