Article by:
AUGUSTA DWYER
Special to The Globe and Mail Last updated on Tuesday, Jul. 07, 2009 11:12AM EDT
The problem Dentist's business stalls as he competes with bigger firms and struggles to gain acceptance from dental community
The plan Warm up to dental stakeholders, improve Internet presence, restructure the company and approach investment bankers
The payoff A better go-to-market strategy and heightened customer awareness
When Norman Kwan invented a new type of dental implant in 1993, he was convinced it would revolutionize a costly, two-step procedure and generate a successful business.
The dentist from St. Catharines, Ont., set up Biomedical Implant Technology Inc. and gained approval for his device from Health Canada in 1996 and from the United States Food and Drug Administration a year later.
Yet success has proven elusive. Dr. Kwan has invested $5-million of his own money in BIT Inc. but treats only 200 to 250 patients a year. Schools of dentistry and the dental community at large have yet to embrace his implant, called BioHex. The Royal College of Dental Surgeons of Ontario, for instance, frowns on practitioners making and selling their own products. Where Dr. Kwan sees a faster, cheaper alternative, the RCDSO sees a conflict of interest.
In the traditional implant procedure, a screw is planted into the bone where the old tooth used to be. It is left to heal, then reopened surgically to attach the new tooth. The cost: up to $6,000 per tooth. In Dr. Kwan's procedure, a combined tooth-and-screw is implanted into the bone. It can be done in a single operation and costs about half as much.
"Everybody in the world is using the two-piece approach, in which the weak link is the connection between the implant and the post that's supporting the tooth," he says.
A reliance on entrenched methods means universities are not interested in his technology and won't include it in their curricula, he says. He has tried sending product brochures to other dentists, but so far only a handful regularly refer patients to him. He maintains two websites with similar information, one for patients and one for dentists.
Finding investment capital has also been a struggle. "I'm in a very narrow market that most people would not understand except dentists," Dr. Kwan says. "There is no revenue from investors unless you are with a university or supported by a big company."
Nonetheless, he is convinced that opportunity abounds. As companies cut employee benefits, many people are looking for cheaper alternatives. And the dental prosthetics business is highly lucrative.
Dr. Kwan's goal is to expand BIT Inc. so that he can devote himself full time to the company and relieve the pressure on him from the RCDSO.
***
What the experts say
The BioHex story is a common one, says Dan MacDonald, chief executive officer of Halifax-based InNOVAcorp, which helps small companies commercialize their technology. There is "compelling technology, little investor interest, modest market acceptance, founder facing a go-forward dilemma," he says.
The problem "is most often related to the entrepreneur grossly underestimating the time, cost and multi-stakeholder complexity of replacing a long-entrenched 'gold standard,' " he adds.
He suggests that Dr. Kwan try a new strategy in which he engages key stakeholders - dental-innovation thought leaders, industry media and market analysts, insurers, employers and dental product suppliers, among others.
Mr. MacDonald advises hiring a respected independent medical-device marketing consultant to help refine BIT Inc.'s go-to-market strategy. Without identifying the product or company, the consultant should sound out a representative group of stakeholders in one influential market.
Restructuring the company is a good idea, too, Mr. MacDonald says. Staying on as founder and chief scientific officer, Dr. Kwan should make way for a CEO with a proven track record in bringing similar products to market. What's more, some of those top stakeholders, who have looked at and like the product, could be asked to join the company's board of directors.
The company should also obtain "medical-device-savvy investment banking advice" and garner new investors, Mr. MacDonald says. An investment banking representative should contact potential investors and test interest. Listening and learning from these interactions will help identify the company's strengths and weaknesses, as well as opportunities and threats.
And with each step, he advises that Dr. Kwan stop and assess how things are going. Has there been a material increase or decrease in the probability of the company's success in the eyes of advisers and investors? Or does it make more sense to prepare the BioHex intellectual property for sale or license to a larger global partner?
Thursday, July 9, 2009
Sunday, May 10, 2009
Mother's Day
What can you say about the role of a mother that would even come close to recognizing the scope and scale of being a mother?
A few thoughts on the topic on this Mother’s day.
Mother’s were 24 X 7 X 365, before we even knew what those numbers meant.
To say that Mother’s make sacrifices to care for their children is the understatement of all time.
Could anyone know you better than your mom ?
This time of year there are always calculations on how much a mom would make in salary if they were to be paid a fair wage. The numbers always seem low and do not do justice to the priceless efforts of moms.
While there has been “progress” in the area of sharing family and household responsibilities between mom and dad, we have a long way to go.
As we raise our sons and daughters, the examples we set as parents will help move the “progress” faster and further.
I am so fortunate to be married to a beautiful and wonderful mom.
To Mothers everywhere, Happy Mother’s Day !
A few thoughts on the topic on this Mother’s day.
Mother’s were 24 X 7 X 365, before we even knew what those numbers meant.
To say that Mother’s make sacrifices to care for their children is the understatement of all time.
Could anyone know you better than your mom ?
This time of year there are always calculations on how much a mom would make in salary if they were to be paid a fair wage. The numbers always seem low and do not do justice to the priceless efforts of moms.
While there has been “progress” in the area of sharing family and household responsibilities between mom and dad, we have a long way to go.
As we raise our sons and daughters, the examples we set as parents will help move the “progress” faster and further.
I am so fortunate to be married to a beautiful and wonderful mom.
To Mothers everywhere, Happy Mother’s Day !
Saturday, March 28, 2009
Investors have more confidence in execs with business scars
Investors have more confidence in execs with business scars
Globe and Mail March 27, 2009
Every entrepreneurial story has a chapter on failure. As a venture capitalist, he says seeing business scars and knowing that the entrepreneur has learned from that experience gives him more confidence in investing in the business.
http://www.theglobeandmail.com/servlet/story/RTGAM.20090327.wsb-INCpodcast_DanMacDonald0327/BNStory/incubator/home
Globe and Mail March 27, 2009
Every entrepreneurial story has a chapter on failure. As a venture capitalist, he says seeing business scars and knowing that the entrepreneur has learned from that experience gives him more confidence in investing in the business.
http://www.theglobeandmail.com/servlet/story/RTGAM.20090327.wsb-INCpodcast_DanMacDonald0327/BNStory/incubator/home
Tuesday, March 24, 2009
InNOVAcorp Nominated for International Award
Innovacorp Nominated for International Award
Innovacorp has been named one of two finalists for the National Business Incubation Association's 2009 international award for work with start-up businesses.
The award recognizes the world's best methods to help new companies commercialize innovations and overcome hurdles. Previous winners have come from Silicon Valley, Paris and Taiwan.
The National Business Incubation Association is the world's leading organization for helping business start-ups and entrepreneurship. It is based in Ohio and represents more than 1,600 organizations in 40 countries.
Innovacorp for winning international recognition for their leadership in helping Nova Scotia's entrepreneurs turn great ideas into sustainable businesses."
Innovacorp is internationally recognized for its approach to helping early stage technology companies in Nova Scotia develop products and services for export. Its High Performance Incubation business model incorporates incubation infrastructure, business mentoring, and seed and venture capital investment to help entrepreneurs with business growth.
Innovacorp's key industries include information and communications technology, life sciences and clean technology. The organization is working hands-on with about 45 companies across the province, including CleanCount, Clinical Logistics, Coemergence, DementiaGuide, GOALLINE, ImmunoVaccine Technologies, Marcato Digital Solutions, Medusa Medical Technologies, MorSwift and ViaPeak.
Innovacorp is a finalist with the prestigious San Jose BioCenter in San Jose, Calif. The winner will be announced in April at the National Business Incubation Association's annual international conference in Kansas City, Miss.
Update:
Congratulations to the world-class San Jose BioCenter from San Jose, California, on winning the National Business Incubation Association's 2009 award for business incubation program of the year.
It was a great honour for the Innovacorp team to be one of two international finalists, especially up against the San Jose BioCenter.
Innovacorp has been named one of two finalists for the National Business Incubation Association's 2009 international award for work with start-up businesses.
The award recognizes the world's best methods to help new companies commercialize innovations and overcome hurdles. Previous winners have come from Silicon Valley, Paris and Taiwan.
The National Business Incubation Association is the world's leading organization for helping business start-ups and entrepreneurship. It is based in Ohio and represents more than 1,600 organizations in 40 countries.
Innovacorp for winning international recognition for their leadership in helping Nova Scotia's entrepreneurs turn great ideas into sustainable businesses."
Innovacorp is internationally recognized for its approach to helping early stage technology companies in Nova Scotia develop products and services for export. Its High Performance Incubation business model incorporates incubation infrastructure, business mentoring, and seed and venture capital investment to help entrepreneurs with business growth.
Innovacorp's key industries include information and communications technology, life sciences and clean technology. The organization is working hands-on with about 45 companies across the province, including CleanCount, Clinical Logistics, Coemergence, DementiaGuide, GOALLINE, ImmunoVaccine Technologies, Marcato Digital Solutions, Medusa Medical Technologies, MorSwift and ViaPeak.
Innovacorp is a finalist with the prestigious San Jose BioCenter in San Jose, Calif. The winner will be announced in April at the National Business Incubation Association's annual international conference in Kansas City, Miss.
Update:
Congratulations to the world-class San Jose BioCenter from San Jose, California, on winning the National Business Incubation Association's 2009 award for business incubation program of the year.
It was a great honour for the Innovacorp team to be one of two international finalists, especially up against the San Jose BioCenter.
Thursday, February 12, 2009
Dan MacDonald on how to approach investors
http://www.theglobeandmail.com/servlet/story/RTGAM.20090205.expertInsight0210/BNStory/specialSmallBusiness
Dan MacDonald is president and CEO of Halifax-based InNOVAcorp, which operates as a venture capitalist through management of the Nova Scotia First Fund. Its seed and early stage investments target emerging technology companies that have high growth potential. Mr. MacDonald, who has 23 years of experience building businesses, talks about the investor-entrepreneur relationship.
What's your advice on how entrepreneurs can attract investors? What are investors looking for?
Dan MacDonald: Entrepreneurs need to be aware that individual investors – be they angel investors or institutions – tend to invest in certain types of industry sectors, business models, stages of growth, business size, locations, etc. While investors can obviously expand their scope from time to time, it is important to understand, as much as possible, the investor's tendencies in order to determine compatibility.
Investors who are open to considering investments in entrepreneurs are looking for opportunities that have the right combination of five elements: people, market, “barrier,” fundability and potential return. (And, of course, a product or service that is compelling and articulated clearly in a couple of minutes.)
People: This one is key. Investors might make their mind up in the first 60 seconds based on the approach and style of the entrepreneur. Beyond first impressions, investors want to understand the entrepreneur's relevant expertise, commitment to success, the level of their own skin in the game (money and time), ability to recruit and lead additional talent, to manage finances and to clearly communicate and execute the path forward.
Market: The addressable market for the product or service needs to be large enough for the potential revenues and profits to be interesting.
Barrier: The barrier to entry for a potential competitor must be high. The recipe of expertise, trade secrets, industry contacts, intellectual property, partners – or put another way, the “unfair advantage” of the opportunity – must be such that it will not be relegated to one of many.
Fundability: When the investor considers the amount of funds and time that will be needed to obtain a return on investment, the investor needs to believe that the business can attract the required funds and execute the plan.
Return: At the most basic level, investors are looking for a return on their investment. The potential risk and return from investing in an entrepreneur competes with the other types of investments. Entrepreneurs must appreciate the fact that the opportunity they are presenting to an investor may be one of many the investor has been presented with that month, that week, even that day.
What are common pitfalls of negotiating with an investor from the perspective of the entrepreneur?
Dan MacDonald: Entrepreneurs commonly approach investors before they are ready to clearly articulate the opportunity and answer or defend the questions on people, market, barrier, fundability and potential return. Many investors do not give second chances.
It's also not ideal to negotiate with your back against the wall. Obviously an entrepreneur who is virtually out of money is not going to be able to negotiate as good a deal as one who has time to consider other options.
Also, entrepreneurs need to consider the investment under negotiation in the context of what will likely happen, in at least the medium term. For example, how will the company valuation (that is, enterprise value based on the percentage of company purchased for the amount of investment) set by this investment look to future investors? Ideally, the valuation of the company will rise over time.
Another common pitfall is providing too much information too early. To get to a point where you are actually negotiating with an investor who seems compatible and trustworthy is an accomplishment in itself. Until this point, the entrepreneur needs to be careful to be truthful, of course, but also be aware of the timing and depth of certain information provided to the investor.
Proprietary information relating to the technology, detailed plans, financial information, etc., should be held until the investor has put an offer, pending due diligence, on the table. While the investor can back out of the deal at any time, the entrepreneur needs to understand the types of terms and conditions the investor expects for the given amount of investment. Better to know early on than find out after you have bared all.
Geneviève Gagnon, owner of La fourmi bionique granola company, got to know her investor. But she had her business mentor do the actual negotiating, so as to limit tension. She says this worked very well for her. What are your thoughts on this?
Dan MacDonald: Having a representative negotiate on your behalf has its pros and cons. Potential pros include avoiding potential damage to the working relationship, and time to consider and discuss terms and conditions without the pressure of a face-to-face encounter.
But there are cons, too. If you delegate negotiation responsibility, then you may end up with a deal you do not like. If you can't negotiate your own deal with a potential investor, it may be perceived as a weakness. You could also miss getting to really know the character of the investor. Many investors would not accept negotiating through a delegate.
Ideally, you, the entrepreneur, would seek advice prior to and during the negotiation. If you are uncomfortable with a term or condition, ask for it in writing so that you can seek advice. Have a sense of urgency but do not let yourself be rushed during negotiations.
Ms. Gagnon regrets sharing with the media the percentage of her business she sold (she did not disclose the dollar amount). What are your thoughts on how openly entrepreneurs should talk about such deals?
Dan MacDonald: While it is very tempting to share the details of an investment – especially one involving an investor whose name or brand can improve the credibility of the entrepreneur – it is not advisable. With the investor's permission, simply stating that they are an investor is all anyone should know. Depending on the market the entrepreneur is addressing, customers might request financial information looking to ensure solvency. This should be handled carefully, again without disclosing details of the investment.
Once the deal is signed, what's your advice on managing the investor-entrepreneur relationship?
Dan MacDonald: Regular and clear communication is key. Understand the investor's expectations for communication and involvement, and exceed these expectations without overdoing it. Communicate sales won only after the deal is truly closed. Whether it is good news or bad news, communicate the impact and your plan to capitalize on the good or manage and minimize the not-so-good. If there is neither good nor bad news to share, then call with a regular update anyway.
If you have set an expectation that for good reason is no longer achievable, or that you discover is not feasible, then reach out and explain yourself. Suggest a new go-forward plan and ask for their advice. Follow up in writing with the new agreed path.
Should entrepreneurs be prepared in case things go unexpectedly bad between them and their investors? If so, what can they do?
Dan MacDonald: Like most relationships, there are bound to be some rough spots. If things go unexpectedly bad, and you have regularly communicated and tried your best to keep things on track, then the investor-entrepreneur relationship may change but should be manageable.
If things go unexpectedly bad, and you have not regularly communicated and you surprise the investor with the bad news, you should expect – and maybe deserve – a rough ride.
Dan MacDonald
Dan MacDonald is president and CEO of Halifax-based InNOVAcorp, which operates as a venture capitalist through management of the Nova Scotia First Fund. Its seed and early stage investments target emerging technology companies that have high growth potential. Mr. MacDonald, who has 23 years of experience building businesses, talks about the investor-entrepreneur relationship.
What's your advice on how entrepreneurs can attract investors? What are investors looking for?
Dan MacDonald: Entrepreneurs need to be aware that individual investors – be they angel investors or institutions – tend to invest in certain types of industry sectors, business models, stages of growth, business size, locations, etc. While investors can obviously expand their scope from time to time, it is important to understand, as much as possible, the investor's tendencies in order to determine compatibility.
Investors who are open to considering investments in entrepreneurs are looking for opportunities that have the right combination of five elements: people, market, “barrier,” fundability and potential return. (And, of course, a product or service that is compelling and articulated clearly in a couple of minutes.)
People: This one is key. Investors might make their mind up in the first 60 seconds based on the approach and style of the entrepreneur. Beyond first impressions, investors want to understand the entrepreneur's relevant expertise, commitment to success, the level of their own skin in the game (money and time), ability to recruit and lead additional talent, to manage finances and to clearly communicate and execute the path forward.
Market: The addressable market for the product or service needs to be large enough for the potential revenues and profits to be interesting.
Barrier: The barrier to entry for a potential competitor must be high. The recipe of expertise, trade secrets, industry contacts, intellectual property, partners – or put another way, the “unfair advantage” of the opportunity – must be such that it will not be relegated to one of many.
Fundability: When the investor considers the amount of funds and time that will be needed to obtain a return on investment, the investor needs to believe that the business can attract the required funds and execute the plan.
Return: At the most basic level, investors are looking for a return on their investment. The potential risk and return from investing in an entrepreneur competes with the other types of investments. Entrepreneurs must appreciate the fact that the opportunity they are presenting to an investor may be one of many the investor has been presented with that month, that week, even that day.
What are common pitfalls of negotiating with an investor from the perspective of the entrepreneur?
Dan MacDonald: Entrepreneurs commonly approach investors before they are ready to clearly articulate the opportunity and answer or defend the questions on people, market, barrier, fundability and potential return. Many investors do not give second chances.
It's also not ideal to negotiate with your back against the wall. Obviously an entrepreneur who is virtually out of money is not going to be able to negotiate as good a deal as one who has time to consider other options.
Also, entrepreneurs need to consider the investment under negotiation in the context of what will likely happen, in at least the medium term. For example, how will the company valuation (that is, enterprise value based on the percentage of company purchased for the amount of investment) set by this investment look to future investors? Ideally, the valuation of the company will rise over time.
Another common pitfall is providing too much information too early. To get to a point where you are actually negotiating with an investor who seems compatible and trustworthy is an accomplishment in itself. Until this point, the entrepreneur needs to be careful to be truthful, of course, but also be aware of the timing and depth of certain information provided to the investor.
Proprietary information relating to the technology, detailed plans, financial information, etc., should be held until the investor has put an offer, pending due diligence, on the table. While the investor can back out of the deal at any time, the entrepreneur needs to understand the types of terms and conditions the investor expects for the given amount of investment. Better to know early on than find out after you have bared all.
Geneviève Gagnon, owner of La fourmi bionique granola company, got to know her investor. But she had her business mentor do the actual negotiating, so as to limit tension. She says this worked very well for her. What are your thoughts on this?
Dan MacDonald: Having a representative negotiate on your behalf has its pros and cons. Potential pros include avoiding potential damage to the working relationship, and time to consider and discuss terms and conditions without the pressure of a face-to-face encounter.
But there are cons, too. If you delegate negotiation responsibility, then you may end up with a deal you do not like. If you can't negotiate your own deal with a potential investor, it may be perceived as a weakness. You could also miss getting to really know the character of the investor. Many investors would not accept negotiating through a delegate.
Ideally, you, the entrepreneur, would seek advice prior to and during the negotiation. If you are uncomfortable with a term or condition, ask for it in writing so that you can seek advice. Have a sense of urgency but do not let yourself be rushed during negotiations.
Ms. Gagnon regrets sharing with the media the percentage of her business she sold (she did not disclose the dollar amount). What are your thoughts on how openly entrepreneurs should talk about such deals?
Dan MacDonald: While it is very tempting to share the details of an investment – especially one involving an investor whose name or brand can improve the credibility of the entrepreneur – it is not advisable. With the investor's permission, simply stating that they are an investor is all anyone should know. Depending on the market the entrepreneur is addressing, customers might request financial information looking to ensure solvency. This should be handled carefully, again without disclosing details of the investment.
Once the deal is signed, what's your advice on managing the investor-entrepreneur relationship?
Dan MacDonald: Regular and clear communication is key. Understand the investor's expectations for communication and involvement, and exceed these expectations without overdoing it. Communicate sales won only after the deal is truly closed. Whether it is good news or bad news, communicate the impact and your plan to capitalize on the good or manage and minimize the not-so-good. If there is neither good nor bad news to share, then call with a regular update anyway.
If you have set an expectation that for good reason is no longer achievable, or that you discover is not feasible, then reach out and explain yourself. Suggest a new go-forward plan and ask for their advice. Follow up in writing with the new agreed path.
Should entrepreneurs be prepared in case things go unexpectedly bad between them and their investors? If so, what can they do?
Dan MacDonald: Like most relationships, there are bound to be some rough spots. If things go unexpectedly bad, and you have regularly communicated and tried your best to keep things on track, then the investor-entrepreneur relationship may change but should be manageable.
If things go unexpectedly bad, and you have not regularly communicated and you surprise the investor with the bad news, you should expect – and maybe deserve – a rough ride.
Dan MacDonald
Thursday, December 11, 2008
It has been a year already.
A year ago today, my father-in-law Roy McGonnell passed away at the young age of 69.
69 is way to young to die.
Roy was quite a guy.
He was a husband, a brother, father of three, proud grandfather of 7, a multi sport Canada games level athlete, policeman turned postman, umpire, story teller, literally every ones friend, the caregiver of his disabled wife for over 12 years.
As we say in in Atlantic Canada "Roy was a real character".
Roy was a person who constantly told stories. As I think back, these stories were Roy's way of sharing his views on everything from sports, to politics, to family matters. I never heard him say an unkind word about anyone.
Suffering from cancer for over a year, I never heard him complain once. Except for the night before he died he was watching harness racing on TV and expected to see 5 races not 4. He was pissed ;)
Some thoughts about Roy as we approached his anniversary;
1. Roy read the local paper every day from cover to cover. He especially read the sports section scores as statistics. I would hear him discussing the latest sports scores, players, issues with friends...he would catch people off guard when he even new who got what penalties for what in games across North America, but also the actual attendance of the game ie: "there was only 17,235 people at the game in San Jose on Tuesday night."
2. My youngest daughter always enjoyed getting an offer of a "freezy" when we visited Roy. It felt a little strange however to get the offer in February when it was -25C ;)
3. Roy often asked us all, if we felt we were "dressed up" even if we weren't really "If we were going to a beauty contest ?"
I and my three children have had the pleasure to know such a man.
They don't make many like Roy anymore.
Rest in peace Roy.
Dan MacDonald
69 is way to young to die.
Roy was quite a guy.
He was a husband, a brother, father of three, proud grandfather of 7, a multi sport Canada games level athlete, policeman turned postman, umpire, story teller, literally every ones friend, the caregiver of his disabled wife for over 12 years.
As we say in in Atlantic Canada "Roy was a real character".
Roy was a person who constantly told stories. As I think back, these stories were Roy's way of sharing his views on everything from sports, to politics, to family matters. I never heard him say an unkind word about anyone.
Suffering from cancer for over a year, I never heard him complain once. Except for the night before he died he was watching harness racing on TV and expected to see 5 races not 4. He was pissed ;)
Some thoughts about Roy as we approached his anniversary;
1. Roy read the local paper every day from cover to cover. He especially read the sports section scores as statistics. I would hear him discussing the latest sports scores, players, issues with friends...he would catch people off guard when he even new who got what penalties for what in games across North America, but also the actual attendance of the game ie: "there was only 17,235 people at the game in San Jose on Tuesday night."
2. My youngest daughter always enjoyed getting an offer of a "freezy" when we visited Roy. It felt a little strange however to get the offer in February when it was -25C ;)
3. Roy often asked us all, if we felt we were "dressed up" even if we weren't really "If we were going to a beauty contest ?"
I and my three children have had the pleasure to know such a man.
They don't make many like Roy anymore.
Rest in peace Roy.
Dan MacDonald
Saturday, December 6, 2008
Where is the bottom ?
November and December 2008 will go down as one of the most dramatic economic downturns in history. Yet depending on which type of business you are in and or where you are located, you may not have even felt it yet.
All indications are that virtually every business will be impacted in someway, some severely others less so.
It will be amazing to look back after the inevitable recovery to analyze the impact of the media on this economic downturn compared to others. If one was to read and view the news these days, which I for one find it hard not to, it is gloom and doom 24hrs a day.
The markets are directly impacted by our overall confidence. It is critical that we remain both optimistic and realistic.
I believe strongly that this is the time for us to maximize the efficiency of our businesses, to constructively challenge status quo thinking, to provide support for better methods, to ensure regular honest communications with customers, staff, suppliers and partners.
So where is the bottom ?
No one knows for sure, but by most accounts it will be in the next 6 to 12 months.
The best strategy is to be lean, mean, and fit to ride the inevitable recovery better and stronger than ever.
Dan MacDonald
All indications are that virtually every business will be impacted in someway, some severely others less so.
It will be amazing to look back after the inevitable recovery to analyze the impact of the media on this economic downturn compared to others. If one was to read and view the news these days, which I for one find it hard not to, it is gloom and doom 24hrs a day.
The markets are directly impacted by our overall confidence. It is critical that we remain both optimistic and realistic.
I believe strongly that this is the time for us to maximize the efficiency of our businesses, to constructively challenge status quo thinking, to provide support for better methods, to ensure regular honest communications with customers, staff, suppliers and partners.
So where is the bottom ?
No one knows for sure, but by most accounts it will be in the next 6 to 12 months.
The best strategy is to be lean, mean, and fit to ride the inevitable recovery better and stronger than ever.
Dan MacDonald
Friday, November 14, 2008
The State and Future of IT - Panel November 14, 2008
Speaking notes from
"The State and Future of IT - Panel Discussion" November 14, 2008 - Halifax Club
1. What will be the impact of Information Technology on business in the next five years?
IT will continue to be important to companies. It is still very relevant and one of the easiest ways to drive productivity. Many companies will be consolidating, merging, and acquiring over the next two years. The rationalization of the resulting business IT systems and ensuring maximum productivity will be key.
That being said, while the CIO, IT staff and partners attempt to get all of that right, we will see the return of the rogue IT systems of the mid nineties when work group networks and applications popped up everywhere as the main frame glass house was changing to client server.
This time it will not be PC hardware and unsupported desktop apps, it will be web based services and applications purchased\acquired underneath the radar by work groups and business units. Why ? They need to be competitive and will not wait for IT to deliver.
The gen Y's will fuel this kind of IT revolution
IT departments will have their hands full to ensure the security policy and overall integrity of this activity.
Mobilization of apps, access, data will further enable users and challenge IT
I believe that all of this anarchy will actually result in higher productivity for everyone except the IT staff. They will need to adapt, add value, and ultimately deliver an affordable supportable IT system.
2. What do businesses and the IT sector need to do in the near-term to capitalize on these opportunities?
From a professional services point of view, there will be a considerable opportunities in scoping, designing, implementing and supporting all of the IT related to company consolidation and M&A activity. This is a 1 to 3 year horizon
I believe that businesses in the IT sector need to balance the input and feedback from their classic customers ie: enterprises, CIO’s, IT departments with the reality of what is happening at the user/consumer/prosumer level.
I believe that if we only listen to the classic voices, then we will quickly become out of touch even extinct.
There will be opportunity in the professional services related to establishing sanity and integrity of the classic IT domain and that of the web 2.0 world.
3. What will the office of the future look like? What will tomorrow's business-person be able to do (say, in 5-10 years) that they can't do now?
The Office of the future is not an office.
Work will not be a place, it will be where ever you need to be. Home, at a customer site, at a project meeting, in a hotel, wherever you are.
Many of us will be independent contractors and or will be working with independent contractors
We will have a highly effective/efficient mobile device which will rival today’s portable computer
We will be increasingly mobile, and wireless
Like many of us do already today, the royal we will be looking for a compfortable, fast, free/inexpensive, and appropriately secure network from which we can work for 30 minutes of 3 or 4 hours, and then we will move on.
In the five year horizon, tomorrow's business person will be able to do what only early adaptors do today. Be highly productive, any place any time. This means of course that a business person in this horizon will find it very difficult to disconnect so as to concentrate on other important things ~ ie: life.
Finally we will live in a "paperless'ish office" mostly because when we are mobile we tend not to print ;)
Dan MacDonald
"The State and Future of IT - Panel Discussion" November 14, 2008 - Halifax Club
1. What will be the impact of Information Technology on business in the next five years?
IT will continue to be important to companies. It is still very relevant and one of the easiest ways to drive productivity. Many companies will be consolidating, merging, and acquiring over the next two years. The rationalization of the resulting business IT systems and ensuring maximum productivity will be key.
That being said, while the CIO, IT staff and partners attempt to get all of that right, we will see the return of the rogue IT systems of the mid nineties when work group networks and applications popped up everywhere as the main frame glass house was changing to client server.
This time it will not be PC hardware and unsupported desktop apps, it will be web based services and applications purchased\acquired underneath the radar by work groups and business units. Why ? They need to be competitive and will not wait for IT to deliver.
The gen Y's will fuel this kind of IT revolution
IT departments will have their hands full to ensure the security policy and overall integrity of this activity.
Mobilization of apps, access, data will further enable users and challenge IT
I believe that all of this anarchy will actually result in higher productivity for everyone except the IT staff. They will need to adapt, add value, and ultimately deliver an affordable supportable IT system.
2. What do businesses and the IT sector need to do in the near-term to capitalize on these opportunities?
From a professional services point of view, there will be a considerable opportunities in scoping, designing, implementing and supporting all of the IT related to company consolidation and M&A activity. This is a 1 to 3 year horizon
I believe that businesses in the IT sector need to balance the input and feedback from their classic customers ie: enterprises, CIO’s, IT departments with the reality of what is happening at the user/consumer/prosumer level.
I believe that if we only listen to the classic voices, then we will quickly become out of touch even extinct.
There will be opportunity in the professional services related to establishing sanity and integrity of the classic IT domain and that of the web 2.0 world.
3. What will the office of the future look like? What will tomorrow's business-person be able to do (say, in 5-10 years) that they can't do now?
The Office of the future is not an office.
Work will not be a place, it will be where ever you need to be. Home, at a customer site, at a project meeting, in a hotel, wherever you are.
Many of us will be independent contractors and or will be working with independent contractors
We will have a highly effective/efficient mobile device which will rival today’s portable computer
We will be increasingly mobile, and wireless
Like many of us do already today, the royal we will be looking for a compfortable, fast, free/inexpensive, and appropriately secure network from which we can work for 30 minutes of 3 or 4 hours, and then we will move on.
In the five year horizon, tomorrow's business person will be able to do what only early adaptors do today. Be highly productive, any place any time. This means of course that a business person in this horizon will find it very difficult to disconnect so as to concentrate on other important things ~ ie: life.
Finally we will live in a "paperless'ish office" mostly because when we are mobile we tend not to print ;)
Dan MacDonald
Friday, October 17, 2008
National Angel Organization: Vetting Early Stage Investment Opportunities
2008 National Angel SummitOctober 16-17, 2008
"Networking, Strategy, Leadership: A Forum for Smart Investing."
The event focused on a variety of angel-specific topics, including bridging funding gaps: idea to exit, best practices version 2.0, global angel access, and much more.
InNOVAcorp’s Dan MacDonald kicked-off the event as the morning keynote speaker on October 17. (To watch a video of Dan's presentation, "Vetting Early Stage Investment Opportunities," visit goldencoast.ca/2008/nao.)
For more information visit angelinvestor.ca.
"Networking, Strategy, Leadership: A Forum for Smart Investing."
The event focused on a variety of angel-specific topics, including bridging funding gaps: idea to exit, best practices version 2.0, global angel access, and much more.
InNOVAcorp’s Dan MacDonald kicked-off the event as the morning keynote speaker on October 17. (To watch a video of Dan's presentation, "Vetting Early Stage Investment Opportunities," visit goldencoast.ca/2008/nao.)
For more information visit angelinvestor.ca.
Saturday, August 9, 2008
Why bother greening your business?
Why bother greening your business?
You would have to be living on Mars over the past couple of years not to be aware of the “greening” of virtually everything in the name of environmental sustainability and cost savings.
As an individual, I am genuinely worried about climate change, the continuing damage to our environment, the ugly legacy we will leave our children and grandchildren, and the 100 year storms which seem to happen every couple of years now. Fuel costs have risen to a point where energy is a material portion of our family expenses. We recently traded our SUV for a smaller sedan and around the house we are more conscious of the principles of reduce, reuse, and recycle. We know we can do more and we understand it is up to us to make it happen.
As a business leader however, I and probably many others like me are not so confident on the logical steps required to “green our business”. While I am clearly not an expert in this area, I have given this some thought, conducted some basic research and would like to share some insights on the topic of “greening our businesses” in the form of a FAQ.
1. Why bother greening your business?
2. If oil prices drop to $100 again will all this green stuff blow over?
3. Is there a return on investment (ROI)?
4. Do customers really care about green?
5. Will customers pay more for green products and services?
6. How green is the business now?
7. What is “green washing”? What is “green sheen”?
8. How green do we need to be?
9. How might we create a green culture?
10. What is some good greening the business resources?
1. Why bother greening your business?
Many, including our customers would say this is a rather silly question at this point given all we know now. We must green our businesses because; it is the right thing to do, our employees (existing and even more so recruits) will expect it, our customers and partners will soon (if not already) ask us to prove it, and because there can be a return on investment. I wonder if General Motors debated “green” in the board room over the past couple of years.
2. If oil prices drop to $100 again will all this green stuff blow over?
No. The price of oil may drop some; it might even drop to close to $100. While possible, this is not likely to cause the green stuff to blow over. High oil prices are with out a doubt a key catalyst for every thing green because the impact is so universal, but I believe the green thing is more fundamental now. We all have a responsibility to lessen our impact on the environment and our purchasing power will increasingly only go to those we believe are on the same green page as we are.
3. Is there a return on Investment (ROI)?
Yes. But when a business looks at “green” in terms of getting off the grid by implementing for example a windmill, an energy savings based ROI can be measured in a decade or more. This ROI timeline is neither compelling nor practical for most small and medium sized businesses. This is not the way to think though. Many of the greening methods and initiatives do not require big capital expenditures. The ROI of “greening your business” should be measured in improved top and bottom line, improved employee and customer loyalty, market expansion, and yes reduced energy costs. Further, there is likely a financial risk in not being green because being so will have the opposite effects.
4. Do customers really care about green?
Yes. In business to business segments it is becoming common place for companies to demand their partners and suppliers are green. This in fact is essential for them to be green. Corporate responsibility, including being green, will become a common procurement specification.
In business to consumer segments, one could argue that the expectations here will rise even faster. Corporate brand managers are very concerned about their companies green reputation. Those businesses targeting customers which fall into the gen x and y categories had better be green or going that way.
5. Yes but will customers pay more for green?
Yes and No. In the short term, B2B and B2C companies will be able to charge a 5 to 10% premium, but not in the medium long term. Quality control and ISO certification were key business initiatives in the 80’s and 90’s. They were differentiators at first, but over time they became table stakes, part of the cost of doing business.
Green however I believe is different. Quality and ISO affected the delivery of your products and services only, not our environment which could affect us all.
When it comes to green, customers will look for the high value products and services which are also green (read will not buy your products and services unless they are green). While customers do in one way or another pay for quality, it is now table stakes and they have come to expect it. The same will go for green. For the next 5 to 10 years businesses will be able to differentiate by offering excellent products which are also green.
6. How green is the business now?
This is a tough question to answer. With out some type globally accepted or defacto neither green measurement nor documented comparables how can we tell how green we are. For now, beyond some rudimentary carbon footprint/green house gas emission calculators, we are sort of on our own. I wouldn’t try this as an excuse though. We need to proactively baseline “our greenness” in order to truly make measureable improvements and obtain a measureable return on investment. Every business needs a green plan of some kind and need to continually refine it over time. This does not have to be complicated. More on this later.
7. What is “green washing”? What is “green sheen”?
Green washing is a term used to describe the perception of consumers that they are being misled by a company regarding the environmental practices of the company or the environmental benefits of a product or service. The term green sheen has similarly been used to describe organizations which attempt to appear that they are adopting practices beneficial to the environment. Source: Wikipedia
It should go with out saying that neither green washing or green sheen would help the brand of any organization.
8. How green do we need to be?
I believe that we are all expected to understand where we are right now, and use best efforts over time toward greening our business. No one is expecting an overnight green makeover, just as no one will tolerate a total disregard for green. A business must make a genuine effort and be able to share with key stakeholders how they are approaching greening the business.
Share? Yes share, via a simple list of things which have been done, are being done, and will be looked into in the future. Employee involvement is key to making sure the maximum impact is felt.
When it comes to key B2B customers, a proactive review of their website to better understand published policies relating to green (environmental, carbon foot print, green practices, etc) will give you perspective on how green you will need to be.
9. How might we create a green culture in our business?
Be genuine. Share with the staff that you would are looking for ways to green the business and that everyone is responsible for making it happen. Set clear high level guidelines that green initiatives which cost more than $X to implement or will affect the performance of the business relating to customer satisfaction must be first approved. Make a list of greening opportunities and when implemented, list the persons who came up with the idea and those who implemented.
10. What are some good greening the business resources?
- Good ideas for the home and office: http://www.greenlivingideas.com/
- Calculating carbon footprint: http://www.carbonfootprint.com/
- Helpful information as well as incentives to green your home and business: http://www.conservens.ca/
- Information on carbon offsets: http://www.v-c-s.org/
- Information on ISO green standards such as ISO14064: http://www.iso.org/
- Resource for both businesses and individuals who want to be environmentally proactive and www.upongreen.com
Dan MacDonald
P.S. While we can all do our part in to green our homes and businesses in some meaningful way, we all need to be aware that many families are struggling to manage their finances especially high energy costs. A large percentage of these families are essentially unable to make some of the “green choices” many of us take for granted such as trade their vehicle for a more efficient one or use mass transit.
You would have to be living on Mars over the past couple of years not to be aware of the “greening” of virtually everything in the name of environmental sustainability and cost savings.
As an individual, I am genuinely worried about climate change, the continuing damage to our environment, the ugly legacy we will leave our children and grandchildren, and the 100 year storms which seem to happen every couple of years now. Fuel costs have risen to a point where energy is a material portion of our family expenses. We recently traded our SUV for a smaller sedan and around the house we are more conscious of the principles of reduce, reuse, and recycle. We know we can do more and we understand it is up to us to make it happen.
As a business leader however, I and probably many others like me are not so confident on the logical steps required to “green our business”. While I am clearly not an expert in this area, I have given this some thought, conducted some basic research and would like to share some insights on the topic of “greening our businesses” in the form of a FAQ.
1. Why bother greening your business?
2. If oil prices drop to $100 again will all this green stuff blow over?
3. Is there a return on investment (ROI)?
4. Do customers really care about green?
5. Will customers pay more for green products and services?
6. How green is the business now?
7. What is “green washing”? What is “green sheen”?
8. How green do we need to be?
9. How might we create a green culture?
10. What is some good greening the business resources?
1. Why bother greening your business?
Many, including our customers would say this is a rather silly question at this point given all we know now. We must green our businesses because; it is the right thing to do, our employees (existing and even more so recruits) will expect it, our customers and partners will soon (if not already) ask us to prove it, and because there can be a return on investment. I wonder if General Motors debated “green” in the board room over the past couple of years.
2. If oil prices drop to $100 again will all this green stuff blow over?
No. The price of oil may drop some; it might even drop to close to $100. While possible, this is not likely to cause the green stuff to blow over. High oil prices are with out a doubt a key catalyst for every thing green because the impact is so universal, but I believe the green thing is more fundamental now. We all have a responsibility to lessen our impact on the environment and our purchasing power will increasingly only go to those we believe are on the same green page as we are.
3. Is there a return on Investment (ROI)?
Yes. But when a business looks at “green” in terms of getting off the grid by implementing for example a windmill, an energy savings based ROI can be measured in a decade or more. This ROI timeline is neither compelling nor practical for most small and medium sized businesses. This is not the way to think though. Many of the greening methods and initiatives do not require big capital expenditures. The ROI of “greening your business” should be measured in improved top and bottom line, improved employee and customer loyalty, market expansion, and yes reduced energy costs. Further, there is likely a financial risk in not being green because being so will have the opposite effects.
4. Do customers really care about green?
Yes. In business to business segments it is becoming common place for companies to demand their partners and suppliers are green. This in fact is essential for them to be green. Corporate responsibility, including being green, will become a common procurement specification.
In business to consumer segments, one could argue that the expectations here will rise even faster. Corporate brand managers are very concerned about their companies green reputation. Those businesses targeting customers which fall into the gen x and y categories had better be green or going that way.
5. Yes but will customers pay more for green?
Yes and No. In the short term, B2B and B2C companies will be able to charge a 5 to 10% premium, but not in the medium long term. Quality control and ISO certification were key business initiatives in the 80’s and 90’s. They were differentiators at first, but over time they became table stakes, part of the cost of doing business.
Green however I believe is different. Quality and ISO affected the delivery of your products and services only, not our environment which could affect us all.
When it comes to green, customers will look for the high value products and services which are also green (read will not buy your products and services unless they are green). While customers do in one way or another pay for quality, it is now table stakes and they have come to expect it. The same will go for green. For the next 5 to 10 years businesses will be able to differentiate by offering excellent products which are also green.
6. How green is the business now?
This is a tough question to answer. With out some type globally accepted or defacto neither green measurement nor documented comparables how can we tell how green we are. For now, beyond some rudimentary carbon footprint/green house gas emission calculators, we are sort of on our own. I wouldn’t try this as an excuse though. We need to proactively baseline “our greenness” in order to truly make measureable improvements and obtain a measureable return on investment. Every business needs a green plan of some kind and need to continually refine it over time. This does not have to be complicated. More on this later.
7. What is “green washing”? What is “green sheen”?
Green washing is a term used to describe the perception of consumers that they are being misled by a company regarding the environmental practices of the company or the environmental benefits of a product or service. The term green sheen has similarly been used to describe organizations which attempt to appear that they are adopting practices beneficial to the environment. Source: Wikipedia
It should go with out saying that neither green washing or green sheen would help the brand of any organization.
8. How green do we need to be?
I believe that we are all expected to understand where we are right now, and use best efforts over time toward greening our business. No one is expecting an overnight green makeover, just as no one will tolerate a total disregard for green. A business must make a genuine effort and be able to share with key stakeholders how they are approaching greening the business.
Share? Yes share, via a simple list of things which have been done, are being done, and will be looked into in the future. Employee involvement is key to making sure the maximum impact is felt.
When it comes to key B2B customers, a proactive review of their website to better understand published policies relating to green (environmental, carbon foot print, green practices, etc) will give you perspective on how green you will need to be.
9. How might we create a green culture in our business?
Be genuine. Share with the staff that you would are looking for ways to green the business and that everyone is responsible for making it happen. Set clear high level guidelines that green initiatives which cost more than $X to implement or will affect the performance of the business relating to customer satisfaction must be first approved. Make a list of greening opportunities and when implemented, list the persons who came up with the idea and those who implemented.
10. What are some good greening the business resources?
- Good ideas for the home and office: http://www.greenlivingideas.com/
- Calculating carbon footprint: http://www.carbonfootprint.com/
- Helpful information as well as incentives to green your home and business: http://www.conservens.ca/
- Information on carbon offsets: http://www.v-c-s.org/
- Information on ISO green standards such as ISO14064: http://www.iso.org/
- Resource for both businesses and individuals who want to be environmentally proactive and www.upongreen.com
Dan MacDonald
P.S. While we can all do our part in to green our homes and businesses in some meaningful way, we all need to be aware that many families are struggling to manage their finances especially high energy costs. A large percentage of these families are essentially unable to make some of the “green choices” many of us take for granted such as trade their vehicle for a more efficient one or use mass transit.
Subscribe to:
Posts (Atom)
