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Wii – a platform for innovative product development …a Cool Idea with Loads of Microbusiness Potential

The Nintendo Wii and it’s accessories represent a new platform with a lot of new opportunities for entrepreneurs to develop derivative products from.  

A case in point, Johny Lee at Carnegie Mellon University has developed and posted working designs and software for a low-cost interactive whiteboard based on the WiiRemote and a PC.   You have to see it to believe it -

Software for the Wiimote Whiteboard is freely available

Links to this and other Wii related projects he is working on is available at this location.


Join Lead to Win: Drive Massive Innovation in Canada’s Capital Region

Join Lead to Win:

Drive Massive Innovation in Canada’s Capital Region

If you are serious about starting a profitable technology based business in the National Capital Region during the current economic situation, we invite you to apply to Lead to Win (LTW).

LTW is a proven program for talented technology individuals who wish to establish and grow successful businesses in Canada’s Capital Region.  Past program participants have come from a wide range of backgrounds, including – sales, business development, product managers, design engineers, systems analysts, and management.  LTW previously ran during the 2002 economic downturn.  Out of the 29 participants in 2002 – over half launched a new business.  Collectively those businesses created over 300 new jobs and attracted over $90M in investment.

The first 2009 LTW training session starts May 19, 2009. If you have what it takes, we encourage you to apply immediately.  Applications are now being accepted online at www.leadtowin.ca.

The LTW program is free to qualified applicants – no strings attached, no small print, no surprises.  Our region is investing to make LTW participants successful for the benefit of the individual and the community.

LTW has three phases. In the first phase, you apply online.  Qualified applicants will then be invited to meet with LTW leadership.  Participants will be selected based on their experience, commitment, and opportunity profile. In the second phase, you participate in an intense six day training program where you will learn how to lever business ecosystems, profitably serve attractive vertical markets, and the key factors that contribute to the ultimate success of a fledgling technology company. Upon completion of this second phase, you will be well equipped, and encouraged, to launch your new technology businesses in the National Capital Region.  In the third phase, LTW connects you to strategic customers, revenue opportunities, and individuals, companies and organizations that can provide requisite resources, including capital.

LTW is supported by The City of Ottawa, The Talent First Network, alumni from the 2002 Lead to Win program, community expertise, and faculty members and graduate students of Carleton University’s Technology Innovation Management program (www.carleton.ca/tim).

To apply to LTW, please contact: Press and program, please contact:

Ottawa Tony Bailetti:

Bailetti@sce.carleton.ca

613 829 8885

Tony Bailetti Bailetti@sce.carleton.ca

613-829-8885

Rowland Few rfew@sce.carleton.ca

613-222-4394

Ian Graham Ian@thecodefactory.com

613-321.3831

Gatineau
Serge Lafontaine slafontaine@arrow.com

613-884-8965

Lead-to-Win Turns Economic Downturn into Opportunity for Laid-Off Technology Workers in Canada’s Capital Region

April 16, 2009 – Press Release

Ottawa, Ontario

Lead-to-Win Turns Economic Downturn into Opportunity for Laid-Off Technology Workers in Canada’s Capital Region

In the tech meltdown of 2002, four out of five laid-off tech workers did not find work in high tech, and in Ottawa-Gatineau two out of five laid-off tech workers left the region.   In 2009, Canada’s Capital Region high tech sector faces a significantly greater challenge.

Today, Ontario’s Talent First Network is pleased to announce the launch of the Lead To Win  program for laid-off tech workers.  The program is based upon a program of the same name that was delivered during the last economic downturn in 2002. Over half of the participants in the 2002 Lead to Win program created a new business in Canada’s Capital Region.  These new businesses collectively created over 300 jobs and attracted over $90M in investment.

“Lead to Win is a great initiative for our region and we are pleased to support the program,” stated Larry O’Brien, Mayor of the City of Ottawa.  There is a proven recipe here. This is precisely the sort of innovative action that takes the current economic situation and turns it into a compelling opportunity for growth.”

Professor Tony Bailetti of Carleton University stated “We have a real opportunity to drive massive innovation in Canada’s Capital Region. Lead to Win will equip the next wave of technology entrepreneurs to launch new businesses that target the right market spaces. We did this in 2002 and we are going to do it again.”

David Vicary, founder of Weyeseyes and previously President and founder of Nakina Systems was also a 2002 Lead to Win participant. Vicary statedThe Lead to Win program was developed to help entrepreneurs in tough times. The lessons learned in Lead to Win were critical to my success in founding and growing Nakina Systems.”

The program is intended for talented individuals who want to launch a new technology business.  The program is free to qualified applicants.  Applications are currently being solicited for the program.  Space is limited and interested individuals are encouraged to apply online at www.leadtowin.ca.

Lead to Win is sponsored by the City of Ottawa, Talent First Network and Carleton University.  Lead to Win associates include alumni from the 2002 Lead To Win program, local businesses, and faculty members and graduate students of Carleton University’s Technology Innovation Management program (http://www.carleton.ca/tim).

About the Talent First Network

The Talent First Network is a successful Ontario-wide initiative funded by the Ontario Ministry of Research and Innovation and Carleton University.  The Talent First Network enables the commercialization of market offers that rely on open source projects and global ecosystems for their revenue.

Contact: Tony Bailetti, Bailetti@sce.carleton.ca, 613 829 8885

MagCloud – Do It Yourself Magazine Publishing …a Cool Idea with Loads of Microbusiness Potential

HP is currently running a beta of a new online service called “MagCloud“.  The service allows anyone to produce a magazine and print it – on demand – for $0.20 a page.  The service also offers an online store to allow publishers to sell their magazines.  The service will take care of printing, mailing, subscription management, and more.

HP’s longer-term plan is to sell their specialized printers and inks to businesses who will offer regional on-demand printing services.

This ability to do on-demand printing of magazines can allow smaller operations and professional service organizations to offer new services to businesses which need to quickly and cheaply produce magazines.  One of the benefits offered by the service is the ability to do tweaks to the magazine master document much more quickly and with less cost then traditional methods of producing magazines.

Technology Rates Adoption from 1900 to Present

history-of-productsThis interesting chart is from the New York Times, it highlights the speed of adoption of new technologies over the years.  The general conclusion is that adoption/consumption of new technology occurs much faster today then in the past.

Carleton University Poster Session – Innovation, Talent, Commercialization

I attended the Carleton University engineering poster session on Mar 20th.  89 engineering students  displayed the results of 36 4th year projects (http://www.sce.carleton.ca/courses/sysc-4907/webforms/posterLocations.php).

The projects ranged from the abstract to the commercially viable, and from simple to complex.  The one thing that stood out in general was the high quality of the students.   The projects I found  most interesting were the ones which struck me as being commercially viable with further development – examples from the poster session included:

  • An application which linked exercise equipment (in this case a treadmill) into a virtual reality world where the treadmill user could “run” through the virtual reality world and potentially interact with other users around the world
  • An inexpensive and compact wireless sensors technology that automatically create a wireless mesh communication network to allow easy deployment of sensors (e.g., smoke detector) without the cost of dedicated wires (or even electrical outlet)
  • An iPhone-based geo-tagged photo blogging application
  • A Nintendo Wii technology-based interactive projection “whiteboard’

Poster sessions like this can be a great way to help advance commercialization of university work and link local investors/entrepreneurs to ideas and talent.

McGuinty Government Announces $250M Fund

McGuinty’s government announced a new fund today oriented towards helping keep Ontario start-ups moving forward in the face of a non-existant venture capital market.  The fund will match private investments dollar for dollar.   It is said to be based upon a similar model implemented in Scotland.

This is a great step towards supporting innovation and start-ups.

Ontario Commercialization Network to be Reformed?

The Ontario Commercialization Network Steering Committee Report was delivered to the Minister late February.  PWC produced a report on OCN prior to the Steering Committee Report but it was not made public.

ocnmap

The report makes some blunt assessments of serious problems with  Ontario’s current approach to economic development and commercialization.  Some key findings include:

  • Lack of co-ordination and sharing across many fragmented organizations
  • Lack of overall governance
  • Lack of clear entry-point for clients/entrepreneurs
  • Lack of metrics and performance targets
  • Need for better co-ordination between Provincial and Federal governments
  • Economic conditions demand quick action

Key recommendations include specifics related to:

  • Fixing the governance model
  • Fixing the delivery model
  • Reducing overlaps of products and services within the Province and between the Province and Federal programs

The report was one of the best i’ve seen so far – it cuts directly to the issues and provides some very rational recommendations.

High Tech Worker Study Shows Optimistic Disposition Helps Reduce Stress Levels

In 2002, Carleton University ran a survey to look at stress among tech workers – “Coping with Job Uncertainty : A Survey of Employed and Unemployed High Technology Workers”.   The report identified numerous interesting results, however the one that I found particularly noteworthy was the fact they found that people who have an optimistic predisposition have a natural buffer against stress.    In fact, the more optimistic one’s nature, the less stress they reported.

The full report is available here.

Corporate Blogging Applications and Guidelines

I came across the following set of blogging guidelines that companies have published for their employees -

Some common uses for social media/blogging inside corporations include:

  • Process information and training
  • Frequently asked questions (FAQ) and support information
  • Commonly used resources, URL’s to applications, documentation, contact information
  • Corporate new-hire training and indoctrination
  • Online reference
  • Product information and training
  • Support communities of practice
  • For professional consulting
  • Peer to Peer knowledge transfer,  e.g. across divisions
  • Membership interest groups
  • Leveraging professional team to learn from each other
  • New results distribution
  • Performance support, e.g. reminders
  • Share best practices and to poll other members
  • To teach staff tools they need for success in the workplace and world

Making Technology Happen

I have the first and second edition of this book on my bookshelf.  It is concise, practical advice for starting and running a technology/knowledge-based company… and it is written by a local tech leader – Denzil Doyle!   For those trying to figure out where to start and what to do I recommend this book as a good place to start reading.

Making Technology Happen describes in detail the techniques used to identify and exploit technology and how to build and manage a technology-intensive company around that technology. It covers such activities as ‘go-to market’ strategy development, general management, investment analysis, organizational development, and competitive market analysis – all from the perspective of a technology-intensive enterprise. It is used by governments and technology transfer professionals across North America, as well as by entrepreneurs and business executives


Canadian Federal Government Employee Stereotypes

The stereotypical government employee is usually characterized as “lazy”, “inefficient”, “in by 9 out by 4″.

With the tech downturn, a lot of people I know ended up in the government.  The general consensus among the ex-tech people who ended up in the government is that yes,  there are pockets of poor performers and demoralized individuals – but by and large – the majority of government employees are motivated and engaged in doing the best job they can.  The other observation of the ex-tech people inside the government is that the internal politics are very similar (although more pronounced in some departments more then others!) to the politics that they encountered inside Nortel.

On a personal level, my observations and experiences with Federal government employees include:

  • I have made submissions and worked with the NRC-IRAP team over the years.   I have found the NRC-IRAP team in general to be top-notch from the executives down to the ITA’s – they recognize the importance of their role in the future of Canada tech development and they work as an engaged and committed partner.
  • Stats Canada produces high quality research reports that I have found to be very insightful and valuable in supporting my various market analysis activities over the years.
  • The Passport office is a model of efficiency and customer orientation.  When I look back to the first passport I got compared to the last one a few years ago – they have made massive improvements.  In general I have found they are increasingly efficient and customer service oriented.    The last time I went in to get my renewed passport – in-spite of a full waiting room of people – I was in and out in less then 30 minutes.   I personally like the way they introduced an option for a taxpayer to pay extra for expedited services.
  • On the e-Government side, e.g. making it easy to find information and access services online, the government continues to make improvements year over year.   I have always been able to find the information I need online.   As an aside – I believe our government’s expertise in e-Government is a area we should be looking to export/develop into commercial businesses.

Politicians aside, in general it is my opinion that we have a pretty good group of people working for us in the Federal government.

The Face of Canada is Changing

Stats Canada published a report in December 2008 – “Immigrant Economic and Social Outcomes in Canada“, that called out some interesting facts, including:

  • One in five persons living in Canada is foreign born
  • In Toronto, almost half of the population is foreign born

Census statistics from 2001 provides a broader overview of immigrant origin in Canada:

immigrant-population

I personally believe this is a great advantage for Canada.  The more ties we have with other countries, the more likely that business relationships will be developed.

Yet More on Trends…

There is more data and  complexity everyday.   There are a number of very interesting sites on the web that present visualization of data on a wide variety to topics, including:

I particularly like the site “Visual Literacy” which provides online training on methods to represent information visually.  They have an interactive diagram which summarizes, with examples, all the various various visualization techniques.  Not to be missed!

What IT/Tech Certifications Have Value Relative to Salary and Job Opportunities?

There are a vast, and increasing, number of technical certifications available.  A big question many people have is what is the value – if any –  of an individual spending the time and money to obtain a certification.  Will the certification increase prospects for employment?  Will the certification increase the salary of the holder?

A study published by TechRepublic “2008 IT skills and salary report“, gives some insight into the salaries of various certification holders:

averagesalaries

TechRepublic also published another report identifying the following IT-specific certifications as being the “Top 10″ relative to increasing employment opportunities:

  1. Microsoft Certified Technical Specialist (MCTS) or Microsoft Certified IT Professional (MCITP) (formerly MCSE)
  2. Microsoft Certified Architect (MCA)
  3. Certified Information Systems Security Professional (CISSP)
  4. Systems Security Certified Practitioner (SSCP)
  5. GIAC Security Expert (GSE)
  6. Cisco Certified Internetwork Expert (CCIE)
  7. Cisco Certified Security Professional (CCSP)
  8. Red Hat Certified Engineer (RHCE) and Red Hat Certified Architect (RHCA)
  9. Information Technology Infrastructure Library (ITIL)
  10. Certifications for Special Situations (including VoIP)

CompTIA has a comprehensive list of IT/Technical certifications.

Ottawa Job Seekers “Directory of Potential Employers” Available

For local tech job seekers – be sure to pickup your copy of the Ottawa Business Journal’s Ottawa Technology Magazine which hit the newstands this week.   The magazine features more than 1,300 technology company listings in clean tech, life sciences, high technology and other sectors.

The Current State of Canadian and Ottawa Business Incubators

Business incubation has been identified as a means of meeting a variety of economic and socioeconomic policy needs, which may include:

  • Creating jobs and wealth
  • Fostering a community’s entrepreneurial climate
  • Technology commercialization
  • Diversifying local economies
  • Building or accelerating growth of local industry clusters
  • Business creation and retention
  • Encouraging women or minority entrepreneurship
  • Identifying potential spin-in or spin-out business opportunities
  • Community revitalization

Business incubators typically provide a range of services to clients that may include:

  • Help with business basics
  • Networking activities
  • Marketing assistance
  • High-speed Internet access
  • Help with accounting/financial management
  • Access to bank loans, loan funds and guarantee programs
  • Help with presentation skills
  • Links to higher education resources
  • Links to strategic partners
  • Access to angel investors or venture capital
  • Comprehensive business training programs
  • Advisory boards and mentors
  • Management team identification
  • Help with business etiquette
  • Technology commercialization assistance
  • Help with regulatory compliance
  • Intellectual property management
  • Facilities (e.g. office space, specialized lab space) and associated business services (e.g. security, receptionist, meeting rooms, phone service, photocopiers, printers,  internet service)

Stats Canada released a report in late 2008 “The Business of Nurturing Businesses” which takes a look at business incubators in Canada based on survey data taken in 2005.   Some key findings from the report include:

  • Almost all business incubators are sponsored by economic development organizations, governments, academic institutions, i.e. tax money
  • 1 in 6 incubators offer facilities and on-site support services
  • Almost half of all incubators were focused on professional, scientific and technical services businesses
  • The top three most used services of incubators were: legal consultation, management guidance and assistence in obtaining financing

There are various lists of incubators in Canada, unfortunately none up-to-date, including:

In Ottawa, we have the following business incubators:

Unfortunately, with the exception of Carleton University’s Tony Bailetti, there is little/no information available on the public incubators relative to return on investment of the tax money in the operation of the incubators – which would lead me to believe that compelling results do not exist.

From the perspective of efficiency, it appears that our tax money is being spent a bit recklessly relative to overlapping mandates and services.    The Ontario government and Ottawa Municipal government have both being doing a review of how they are funding and delivering their economic development programs.   I hope that as part of this review, they look towards stronger collaboration and reduced overlap of services between Provincial and Municipal programs.

A future blog entry will examine how business incubators role will evolve/change in the context of Business Ecosystems.

References:

Emerging New Channels to Market for “Creative Class” Microbusinesses

For a start-up, one of the biggest challenge is gaining access to customers and being able to transact business with them as easily and quickly as possible.  In the last 5 years,  new business models have been emerging that help reduce that challenge, referred to as Ecosystem business models.

These new business models are providing knowledge workers (aka the “Creative Class“) access to ready-made delivery platforms and selling channels to a well-defined market.

These emerging channels to market typically provide a means to connect suppliers with consumers, usually handling the transaction between the two as a trusted mediator (taking a percentage in return for the channel services, e.g. selling platform, marketing, customer management, fulfillment, transaction handling):

  • Apple Apps Store – sells applications to Apple iPhone phone users, handles delivery and payment, payment is via iTunes account
  • Google Android Market - sells applications to Android mobile phone users, handles  delivery and payment using Paypal
  • Amazon Webstore - sell your wares online, access Amazon shoppers and Amazon store tools, handles payment using Amazon account
  • 99Designs -  companies/individuals post requests for graphics designs and designated “prize money”, companies/individuals post responses, the winning design selected gets the “prize money”
  • oDesk - teams or individuals post skills/availability, companies/individuals post jobs with desired fee for completion (fixed rate or hourly)
  • Shutterstock – royalty-free photographs, individuals/companies provide photos and get paid based on sales
  • Innovation Exchange – companies/individuals post challenges and cash, suppliers post responses
  • Mechanical Turk – people post questions/tasks, suppliers post answers/accept task
  • Cafepress – individuals/companies generate graphic content, Cafepress puts it on mugs, shirts, etc and handles all fulfillment for the supplier
  • Amazon Kindle – sell eBooks via Amazon and their new eBook reader
  • uTest – on-demand software testing
  • Crowd Spring – similar to 99Designs
  • Lulu - sells self-published books
  • Beta Test – links beta-testers with software publishers (e.g. iPhone)
  • Eclipse Foundation - links Eclipse IDE consumers with suppliers who build on top of the Eclipse open source IDE platform
  • Just Parts - links consumers of auto parts with suppliers
  • Top Coder – links software designers with companies who respond to contest proposals
  • Article One Partners - offers rewards for finding prior art against posted patents
  • Spot Us - allows journalists to post story ideas and solicit funding from public

One channel which can be very significant for Microbusinesses is Paypal -

  • Paypal – “one-click” purchasing between suppliers and consumers.  Many niche sellers, e.g. 3rd party add-on suppliers for Joomla! use Paypal as their transaction vehicle.  Most eCommerce solutions provide a gateway to Paypal as the payment means.  Paypal itself also can accept credit cards on behalf of a seller.  Paypal by itself provides access to a group of consumers who are comfortable transacting business online.  Paypal provides a trusted supplier relationship between the buyer and the supplier.  I have to confess I never thought Paypal would amount to anything when I first heard about the business many years ago…

What do Companies do to Adapt to Economic Meltdowns?

Typically companies will focus on:

  1. Delivering what really matters to customers
  2. Eliminating all costs that add no or little value to customers
  3. Selling services previously provided for free
  4. Increasing efforts to steal customers of competitors
  5. Improving operational efficiency
  6. Eliminating inventory payments
  7. Reducing payments to suppliers

There is some interesting analysis in a thesis report from Carleton University (COMPETITION DURING MARKET MELTDOWNS: THE PERFORMANCE OF TELECOMMUNICATIONS EQUIPMENT SUPPLIERS DURING 2001-2003, by Yanxia Hao, 2004) which suggests that:

“…companies should focus on a narrow range of effective actions to improve company performance during market meltdowns.”

 

Lead to Win Ecosystem Announced

On Feb 12th, during a presentation at MaRS in Toronto, Tony Bailetti announced the launch of the Lead to Win Ecosystem.

ltw-ecosystem

The Lead to Win ecosystem will be headquartered in Ottawa,  it is focused on:

  • Facilitating the formation of multi-location, international teams
  • Equipping teams to exploit the new creativity economy
  • Supporting teams’ rapid start-up, operations and execution
  • Linking teams to opportunities and channels

The Lead to Win ecosystem is based on the 2002 Lead to Win program which was extraordinarily successful in delivering meaningful and measurable economic development results to the Ottawa region.

If you are interested in more information on the Lead to Win ecosystem or want to be a part of it – drop a note to Tony Bailetti, and read the material on Business Ecosystems on this site.

Recommended Joomla Extensions

Some of the best Joomla! content management system add-ons are listed below:

A complete list of all available Joomla! 3rd party extensions is available at http://extensions.joomla.org/

JoomlaPack Website Move from a Godaddy Website Hosting account to GoDaddy Virtual Dedicated Server Account

I like playing with technology as a hobby, including virtualization, Web 2.0 technologies, networking, etc.   If you don’t know what Joomla, or Virtual Servers are – you can move on to the next post.

If you are using GoDaddy Website Hosting, you may want to upgrade to the more flexible GoDaddy Virtual Dedicated Server (VDS) service. The following steps are intended to provide guidance to how to use JoomlaPack to simplify the transfer.

  • Prepare a backup of the shared hosting site to be moved using JoomlaPack

  • In the VDS Master cPanel, configure and compile PHP to match the needs of your website applications, e.g. Multi-byte String Handling

  • In the VDS Master cPanel, create a new account (new virtual server) with the associated domain name <vdstargetdomainname>

    • If possible, if you have a xxxx.com domain, get another xxxx.net, xxxx.info of the same name and use that as the domain for the target VDS virtual server so you can keep the other site active while you do the transfer, then you can change the DNS records to point the old domain to the domain of the target VDS virtual server (and you can park the domain on top of the target VDS virtual server using the VDS Master cPanel) the old domain name once the transferred site is up and running

  • In the VDS Master cPanel, ensure the target VDS server’s root account <vdsrootuser> has “wheel” authorization to allow su for chown functions

  • On the target VDS virtual server make a .htaccess file with “Options All -Indexes” to turn off directory browsing by anyone while you are doing the install

  • Connect to the target VDS virtual server using SSH and use ftp to transfer the JoomlaPack backup archive to the target VDS virtual server public_html folder from the shared website hosting account

  • Upload kickstart.php to the target VDS virtual server into the public_html folder

  • In the target VDS cPanel, create the Joomla databases and associated database user/password, create any 3rd party databases and associated database users/passwords

  • Open your webbrowser http://<www.vdstargetdomain.xxx>/kickstart.php and restore files and databases per JoomlaPack restore instructions

  • SSH into the target VDS virtual server and “su”.

    • Update the owner and group of the files “chown –Rf <vdsrootuser>:nobody public_html”

    • Update permissions to 775 (or 755 if you apps will take it) using “chmod -R 0775 public_html

    • Selectively change permissions of folders according to the recommended Joomla security guidelines and as required by any installed Joomla 3rd party extensions

      • If you are using the JSN Imageshow Pro extension, you will need to ensure that WRITABLE (CHMOD 777) {joomla_root_folder}/modules/mod_jsn_imageshow_pro /jsn_imageshow_pro

  • Connect via webserver to the Joomla administrator back-end of the target VDS virtual server :

    • Update hard file paths in configurations of various Joomla extensions such a JoomlaPack and DOCMan

    • For non-Joomla applications, ensure you go to their configuration files (e.g. config.php) to change database name, database login info, root directories

    • Update any Joomla 3rd party extension license files that are linked to IP address

  • Check the target VDS virtual server php.ini configuration to ensure settings for upload_max_filesize match configuration needs for any Joomla 3rd party extensions such as DOCMan, e.g. upload_max_filesize = 8M

  • If you had SSL certificates on the original hosted shared site you will need to revoke the GoDaddy SSL certificate and generate a new one for the Master VDS cPanel. Also note that if you want to use https on the target VDS virtual server you will need to use a dedicated IP address for that VDS virtual server (rather then a shared IP with multiple hosted domains)

  • In the Master VDS cPanel, remove “wheel” privileges from your target VDS virtual server <vdsrootuser> account

Is The Recession The Best Thing to Happen To Canada?

There are two interesting new ideas that I find very promising, and if the City of Ottawa is able to capitalize on them, it may create a major new source of growth for our local economy.

Richard Florida is a professor at the Rotman School of Management in Toronto.  His primary area of research is that of the “Creative Class”.   Dr Florida argues that the economy is shifting away from routine-oriented jobs to creativity-based occupations.    He also argues that the ability of an economy to adapt and weather disruptions are greater for a creativity-based economy compared to routine-jobs based economy.   Dr Florida recently delivered a report to the Ontario government on this topic - it is interesting reading.

In Ottawa, we have Tony Bailetti, a professor at Carleton University.  His primary area of research is that of  “Ecosystems”.   He argues that the business models of the world are changing.   During the Industrial Age – companies were vertically integrated.  During the Technology Age – companies were horizontally integrated with outsourced partners.  In the emerging Ecosystem Age – Dr Bailetti argues that it is all about creative knowledge workers and collaboration.    An ecosystem is not a single company, but rather is a collaborative community formed around a central keystone organization that facilitates collaborative relationships and access to wide established markets.  And this is more then just a theory – Ecosystems exist today and their numbers are growing.   A leader in this emerging Ecosystem business model is headquartered in our city! The Eclipse Foundation is a very successful keystone organization — they are at the heart of the worlds most successful Integrated Development Environment platform.

Ecosystems are a means of organizing and enabling knowledge workers, leveling the playing field against established Technology Age and Industrial Age competition, and flattening the world relative to allowing world-wide virtual teams to come together to create innovation, wealth and economic growth.  Ecosystems effectively give a practical framework around how we can capitalize on the power of the “Creative Class”.

Dr Florida and Dr Bailetti’s work have evolved independently but are very complimentary and timely.

I would love to see Tony and Richard get together as  their ground-breaking ideas represent a strong opportunity for Ottawa, Ontario and Canada to re-invent itself.

If you are one of those people who is planning  to create their own microbusiness and you are looking for ideas to pursue – you would be wise to learn more about what Ecosystems are and how you can capitalize on them.   The good news is that Tony is planning to make an important announcement on Thursday about a new initiative related to Ecosystems that you will want to know about – because it can help you - I’ll post an update to this post on Friday.

Ottawa Already Has an Innovation Hub – It’s Name is Tony Bailetti

It was great to see the article from Peter Kovessy of the Ottawa Business Journal today entitled “Innovation Hub in Stagnation”.  We need more public oversight, debate and analysis on how our local political leaders have and  are proposing to spend our tax dollars to spur innovation and economic growth for our region.

Relative to the Innovation Hub idea – there have been very negative public comments made about the plan  from Ottawa tech leaders and entrepreneurs right from the beginning. The father of local high tech, Denzil Doyle, was straight to the point:

It is discouraging to see the idea of an Innovation Hub being run up the flagpole. On a scale of one to ten, I would rate it at minus five as something that is going to solve the region’s high tech problems. About 20 years ago, we were told that if we invested in a life sciences technology park, we would grow a life sciences industry that would rival the telecom industry. We all know how that turned out. We seem to forget that Mitel started in the basement of an office building in Kanata and that a combination of its working capital and outside investment financed its real estate requirements thereafter. DY-4 started in a very ordinary building on Laperriere Ave – and so on.

Entrepreneur John Oligvie called it out:

I have spent a lot of time in Silicon Valley and in Boston and these two global high-tech centers have managed so far without building “innovation hubs”. This is discredited, “big government” thinking. Technical and business innovation can only be done by entrepreneurs, not by government. If you asked local VCs and tech entrepreneurs what they needed most in order to succeed, I doubt that anyone’s first answer would be “a big shiny new building”.

From my perspective, I have yet to talk to a local entrepreneur who is supportive of the Innovation Hub.  When it comes to high tech and innovation driven economic development – most do not feel the City of Ottawa is coupled into reality.

I personally believe we need to have less of our tax money being spent on “overheads” such as buildings and associated staff and instead direct the tax money to programs that directly support the needs of regional entrepreneurs and the important local economic development they produce.

People like Tony Bailetti and the Talent First Network are on the right track -

“To innovate effectively, small and cheap is big; big and expensive simply doesn’t work” says Bailetti. He adds: “What we need to drive massive innovation in Ottawa is many small innovation hubs like TheCodefactory, all linked to early buyers worldwide. Mechanisms that enable our innovators working anywhere in Ottawa to collaborate with early buyers at the start of the innovation cycle can produce significant benefits for our community.”

Tony Bailetti is one of the few people around that truly understands what it takes to foster innovation and deliver regional economic development.   His actions and results as one man have exceeded the results of any local organization or initiative when it comes to developing entrepreneurial activity and results for our region.  He is motivated by the desire to “Do the right thing” and “To make a difference” for his community and his students.   Tony is one of Ottawa’s (if not Canada’s) most valuable resources when it comes to economic development and technology innovation.

As an example – in 2002, Tony Bailetti ran an entrepreneurial training course called “Lead to Win”.   The course was free to the participants.  Of the 29 participants – over 50% launched a company in the Ottawa region.  The resulting entrepreneurial activity, innovation and  companies – launched by that one initiative, by that one manresulted in the creation of over 300 local jobs and the influx of over $90M into our local economy.

That is exactly the type of  community-based leadership and grass-roots economic development activity our governments should be encouraging, learning from and backing.

Ottawa already has an Innovation Hub and its name is Tony Bailetti.


Reflections on Second-Sourcing Manufacturing

I’ve had the opportunity over the last 20 years to look at second-sourcing manufacturing from both the perspective of a large telecom company, and the perspective of a system-based company start-up.   I took some time recently to capture what I learned on reflection -

Reasons for Second-Sourcing Manufacturing by Vendor:

  • Flexibility in pricing negotiations (leverage)
  • Flexibility in production volumes
  • Flexibility in production run priorities/intervals and prototype runs
  • Manufacturer disaster mitigation due to site problems (e.g. fire, flood, natural disaster, labor problems, transportation delays)
  • Manufacturer disaster mitigation due to financial strength (e.g. market conditions, sensitivity to a small number of customers)
  • May be required by customers of the vendor (e.g. particularly in case of large telecom customers or government)
  • Poor support or responsiveness by the manufacturer
  • Poor quality or process control by the manufacturer
  • There maybe government restrictions requiring products bought locally be made locally

Challenges associated with Second-Sourcing Manufacturing for Vendor:

  • Increased support costs associated with RMA, troubleshooting field problems based on source of card manufacture
  • Increased design cost for system to track and manage vintages according to source of card manufacture
  • Extra costs and effort required to vet, engage and manage an additional supplier
  • Extra costs for dual sets of component supply and obsolete stock
  • Extra costs due to yield problems (two bone piles)
  • Extra costs due to training manufacturer and fitting manufacturer for test and repair functions
  • Export restriction laws on specific technology
  • If off-shore – other complexities – language, timezones, shipping,  etc

Practical Considerations:

  • Most system developments have more then one single-sourced component on it (often from a small specialized supplier) – which is usually a higher risk then manufacturing line to the vendor and more difficult for the vendor to manage around (e.g.  no footprint compatible alternative components)
  • Manufacture and debug capabilities for specialized components can limit selection of potential manufacturers
  • Interval between production runs can be problematic for some manufacturers since the biggest customer tends to get the most priority on the lines
  • Off-shoring usually makes sense with system components with specific high volumes, limited assembly and test needs, and work best for builds with proven high yields and low technology complexity

Things a Manufacturer Can Do to Avoid/Preempt Second-Sourcing:

  • Establish method to assure vendor of long-term financial stability and business model on an ongoing basis
  • Present a disaster recovery/mitigation plan (e.g. second-site, cross-manufacturer agreement to protect each other)
  • Present a partner proposal to offer pricing flexibility that is fair to both manufacturing and vendor
  • Up-sell the cost and efficiency benefits of single-source
  • Offer to let them purchase equity in manufacturer
  • Offer to setup a preferred vendor agreement, e.g. commitments of volume in return for commitments of second site implementation, commitments to annual cost reductions over the life of the product build, commitments of turn-around time/priority
  • Offer to use their existing supply chain to leverage cost reductions on commodity components for the vendor
  • Offer to implement a Vendor-Managed Inventory program, where single-sourced high value components are held in Vendor-owned inventory at the manufacturer’s site,  but they are only sold to the OEM just before they are added to the assembly, which reduces the manufacturer’s inventory holding costs and reduces lead-time uncertainty for these big $ items.

If anyone has any other insights, let me know!

eCommerce Solutions for Microbusinesses

I’ve talked to several people recently who have been wrestling with eCommerce.  In one case the company was wanting to sell downloadable products online but not sure whether to build, contract or host.   Another had deployed an open source based solution and had engaged an off-shore contractor company for installation and ongoing support – they were wrestling with the challenge of growth and software maintenance support costs.

Today,  there is little reason anyone should be funding custom-coding or software maintenance for eCommerce solutions.   The only effort should be focused on eCommerce storefront  product catalog, related content, community – and fullfillment!   In this regard, there are some very high quality hosted eCommerce Merchant solutions available, of which I suggest people evaluate when looking to deploy an eCommerce solution for their microbusiness:

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