The ITESM Eco-system for E & I Adapted: From formal Executive presentation in Jönköping 2010-09-07

Credits: Dr. Marcela Ramirez-Pasillas, ITESM Campus Querétaro, ITESM HQ Monterrey, ITESM Edomex Copyright: ITESM HQ, Monterrey, Mexico (Material) & Hans Lundberg (Presentation)

Coimbra, Portugal, May 15, 2013

Hans Lundberg,

PhD in Entrepreneurship & Serial Social and Academic Entrepreneur

WHY RELEVANT?

MEXICO

• Total Area: 1,972,550 km2

• Population: 115,296,767

• GDP (PPP)Per capita: $15,312

• GDP (Nominal)Per capita: $10,247

= Strong Emerging Economy

UKRAINE

• Total Area: 603,628 km2

• Population: 44,854,065

• GDP (PPP)Per capita: $7,598

• GDP (Nominal)Per capita: $3,971

= Potential Emerging Economy (in xx years)

WHY RELEVANT?

MEXICO

• Have an Entrepreneurial Vision

• Have oceans of domestic problems but DONT over-focus them = Entrepreneurial Orientation (EO)

• Understands at least partially the crucial difference between E and I

UKRAINE

• Must develop an Entrepreneurial Vision

• Have oceans of domestic problems and DO over-focus them = Must work hard on changing attitudes towards Entrepreneurial Orientation

• Over-focus I - Do not know about E

Traditional Management focus on:

• Control & Discipline

• Uniformity & Conformity

• Efficiency & Effectiveness

• Contractual relationships

• Long-term planning

• Functionality

• Specialization

• Trying to create certainty

• Trying to clarify ambiguity

• Rules, Routines, Policies, Manuals, Standardization, …

• Avoiding/Minimizing risk

• Discouraging failure

• Seeing change as a threat

= Linear and sequential thinking and leading, over-emphasizing rationality, and thinking this “is the superior way things should be done”

Entrepreneurial Management focus on:

• Being opportunity driven• Respecting and understanding processes of creativity• Having a broad take on innovation and understands that innovation only is a (minor)

part of the Entrepreneurial Processs• Balanced risk taking/Reasonable space for failure and experimentation• See change as the constant, not as something between two constant conditions• Motivate people to achieve and to excel – rewards and acknowledge it internally and

publically• Create at a ‘can-do’ and ‘work-is-fun’ culture. Be genuine about it, otherwise you will

be seen as a manipulative and cliché-providing charmer/poser• Create a culture where one gain from sharing information, knowledge and learning –

delegation, decentralizing, empowerment, self-government• Encourage people to belong and to ‘own’ the organization• Strong vision is essential• Effective communication is vital

= Management with a ‘light touch’; high degree of autonomy (and equal amount of responsibilities) – very low tolerance for misuse of such trust!

Opportunity (E)

Entrepreneur (E)

Resources (E) Organisation (E)

Focus (T)Fit (T)

Configuration (T)

The Entrepreneurial Process:

4 Empirical (E), 3 Theoretical (T) &

9 Functional (F) Concepts

-Focusing (F)

-Directing (F)

-Leading (F)

-Attracting (F)

-Shaping (F)

-Managing (F)

-Scanning (F)

-Identifying (F)

-Analyzing (F)

What is a business opportunity?

A gap in the market that creates a chance to dosomething differently and better relative to how it

so far has been done (“all these things seems possible to do”)

What is an innovation?

A way of doing something differently and better relative to how it so far has been done (“of

all things possible to do, we will do this”)

Why is this distinction fundamental: Well, 98% of start-ups fail to reach any size that matters…

10 different types of innovations:

• New products- Thousands…

• New services- Thousands…

• New production techniques/philosophies - JIT/TQM: 1980s, 1990s- Kansei Engineering (Affective Design) commonly used in Japan and Korea by many renowned companies, but rather new in the west as of now.

• New operating practices - Fast-food industries (Fordism applied to food)

- DHL/FedEx (etc.) (Completely different logistical chains)- Dell (Pick & Choose computer parts)

• New ways of delivering/distribution- IKEA (redefining customer relations)- DHL (new global standards for ‘service’ and ‘delivery time’ via an extraordinary sophisticated system for logistics founded on applied mathematics- Benetton (extreme market system integration in order to take “delayed decisions”)

• New ways of informing/marketing- Very rapid developments; ‘too innovative’? Customer adaption is sometimes slower than the pace of innovation…

• New ways of managing internal/external relations- Nordstrom (“We have 1 rule in this company; use

your judgment”) (internal)- Chelsea FC/Manchester U TV (external)

• New ways of designing organizational relations/architecture- Network´s/Cluster’s extra-organizational co-operation- Strategic development of intra-organizational units

10 different types of innovations:

• New ways of improving society and people´s life

10 different types of innovations:

Last but not least, one of the most important entrepreneurial capacities:

The combinatory capacity (= the unique bundle of innovations you compete with)

-New ways

to combine multiple innovations

For example, a new product developed by a newly designed organizational unit that to some extent (relative to

mainstream operations within the firm) uses new methods for marketing, distribution, etc.

10 different types of innovations:

How to build a national educational standard and a complete ecosystem for the

required broad take entrepreneurship and innovation?

Benchmark Case: ITESM, Mexico

So:

• Privately founded in 1943

• Non-profit

• Independent

• Non-government operational support

• 27 non-profit sponsoring

organizations

• 567 trustees

Tecnológico de Monterrey(ITESM)

Educational system

22 liason office

París

Madrid

Barcelona

Dallas Washington

Boston

MontrealVancouver

Shanghai

FriburgoBruselas Beijing

Houston

Panamá

Miami

Medellín

Bogotá

Lima

Quito

Guayaquil

Buenos Aires

Rep. Dominicana

Students abroad 6,959

South America

North AmericaEurope

54%8%

5% 4.5%

28%

Africa

0.03%Agreements with 312 universities

for faculty and student exchange

Asia

Oceania

Foreign students 4,529

North America

South America

Europe Asia

33%35.5% 5%

2%24% 0.5%

Agreements with 312 universities

for faculty and student exchange

OceanIaAfrica

SACS Southern Association of Colleges and Schools

AACSB International Association for Management Education

EFMD European Foundation for Management Education (EQUIS)

ABET Accreditation Board for Engineering and Technology

AMFEM Asociación Mexicana de Escuelas de Medicina

IFT Institute of Food Technology

NHSA National High School Association

CACEI Consejo de Acreditación de la Enseñanza de la Ingeniería

SECAI Sistemas de Evaluación de las Ingenierías

Accreditations

Mission 2015

• Monterrey Tech

educates persons

– With integrity, high ethical

standards and a humanistic and

social science perspective

– Internationally competitive in their

professional fields

– Citizens committed to their

communities well being

Challenges

• Generation of jobs (Incubators)

• Competitiveness of the country based on the knowledge economy: (Research Centers and Technology Parks)

• Sustainable social development

• The professionalization of public administration and analysis of the proposal for public policies

ITESM

Business Incubators & Accelerators

(= How an E & I Eco-system might look after 20-something years of dedicated efforts and billions of pesos)

•Accelerators: 14

•Incubators: 26

•Virtual incubators: 1

•Landing:32

•Risk capital groups: 10

•Technology Parks: 12

Tecnológico de Monterrey6 Integrated Business Incubator Concepts

Tecnológico de MonterreyBusiness accelerators

• Mexico city

• Querétaro

• State of Mexico

• Toluca

• Guadalajara

• Puebla

• San Luis Potosi

• Monterrey

Fast accelerating companies in process: 180

Direct jobs: 2,463

Current number of companies

incubating : 1,022

290 students

170 alumni

562community

Tecnológico de MonterreyBusiness incubator

Tecnológico de MonterreySuccessful incubated companies

Tecnológico de MonterreySuccessful incubated companies

Tecnológico de MonterreySuccessful incubated companies

Tecnológico de MonterreySuccessful incubated companies

Tecnológico de MonterreySuccessful incubated companies

Successful incubatedcompanies

• Nordster Technologies (State of Mexico)

• Verifid (Querétaro)

• Bit Technologies México (Toluca)

• Unima Seguridad Integral (Guadalajara)

• Wyon (Guadalajara)

• Macrivel (Irapuato)

• Power engineering services and solutions (Monterrey)

• Blocknetworks (Monterrey)

• ARIC (Cuernavaca)

• Rocas Technologies (Tampico)

Tecnológico de MonterreyRisk capital agencies

Technology parks

Science & Technology

Parks in the World

USA (38%) Europe (38%) Asia (14%)

• Currently there are (probably) more than 500 STP:s in the world

• Over 60 % have been developed after 90´s

• Rest of the world 10%

• Good Sources:

http://www.iasp.ws (International Association of Science Parks)

http://www.unesco.org/new/en/natural-sciences/science-technology/

Source: Estimated numbers by IMF, 2008; IASP web page 2013

1. LOCALIZATIONN

2. TECHNOLOGY FLOW

3. AIMED COMPANIES

4. ESPECIALIZATION

5. AIMED MARKETS

6. NETWORKING APPROACH

7. OWNERSHIP & GOVERNMENT

Basic Strategic Positioning (Based on: International Association of Science Parks, IASP)

Urban Non- Urban

Knowledge source(Science Park)

Market position(technology Park)

Newly created firms Matured companies

Generalist Specialist

Domestic International

Strategic networking Occassional networking

Institutional Private

Parques Tecnológicos ITESM: Scale Matter!

ChihuahuaParque de Innovación y

Transferencia de

Tecnología

7500 m2

Automotriz y TI

MonterreyCentro de Innovación

y Diseño Estratégico

de Productos

9800 m2

Diseño Industrial y TI

MonterreyCentro de Innovación y

Transferencia de Tecnología

6000 m2

Mecatrónica, Diseño

Industrial,

Telecomunicaciones y TI

MonterreyCentro de Bioingeniería

8000 m2

Biotecnología

QuerétaroParque Tecnológico

8500 m2

TI, Automotriz,

Aeroespacial, Energía

Renovable

Estado de MéxicoParque Tecnológico

1350 m2

Electrónica y TI

GuadalajaraParque Científico y

Tecnológico

1200 m2

Diseño Digital y TI

HermosilloSede Tecnológica

Automotriz y Aeroespacial

para el Desarrollo y la

Investigación de Sonora

3000 m2

Automotriz y Aeroespacial

CuernavacaParque Tecnológico

3158 m2

Biotecnología,

Mecatrónica y TI

PueblaParque Tecnológico

4600 m2

Automotriz, Diseño

Digital y TI

CONTINUED…

Parque de

Innovación

Tecnológica de

CIBNOR

La Paz, BCS

Parque de Investigación

e Innovación

Tecnológica

Monterrey, NL

Parque Tecnológico

Tamaulipas

Cd. Victoria, Tam

Silicon Border

Science Park

Mexicali, BCN

Tecnoparque

Azcapotzalco

Edo. México

At every Campus

LANDING

At One Particular Campus:

Queretaro

At One Particular Campus:

Queretaro

Edificio Queretaro

10 Levels

Spaces for:

Landing of companies

Organizations

Incubators & Firm growth-

enhacer

All required Infrastructure and

Utility Services

Lobby

Levels 1 & 5 – Incubator

Level 2 – Landing

Sofeq

Sala de Juntas Sedesu

Sofeq

Jóvenes Empresarios Coparmex

Level 3 – Landing

Level 4 – Landing

Sala de Juntas

Levels 6 & 7 – Landing

Levels 8 & 9 – Escuela de Graduados en

Administración (EGA) & International

Competitiveness Centre (CCI)

Landing examples

Queretaro

13 IT & electronic companies

2 Sustainable energy companies

3 Aero-spatial company

1 Automotive company

1 Engeneering company

2 Technology development centre

1 Technologic services company for manufacture companies

1 International organization

1 Representative company of IT Cluster (InteQsoft)

1 Public agency (Sofeq)

1 Association (Jóvenes Empresarios de Coparmex)

Snapshots from some of the

other Technology Parks in the

ITESM Eco-system

Tecnológico de MonterreyTechnology parks, Monterrey

Companies• Incubation 160•Acceleration 54• Landing 22

Tecnológico de MonterreyTechnology parks, Guadalajara

Companies• Incubation 7•Acceleration 25• Landing 2

Tecnológico de MonterreyTechnology parks, Chihuahua

Tecnológico de MonterreyTechnology parks, Nuevo León

Park Innovation and Technology TransferGovernment N.L.

Tecnológico de MonterreyTechnology parks, State of México

My Challenge to you:

You are a consortia with many Ukrainian leading technology universities – we have 3 whole years

and 1,2 million euro to do the planning (TEMPUS)--

How would you design your business model for the Ukrainian version of the ITESM Eco-system for E

and I?

Good guide: European Investment Bank, 152 pages guide for decision makers

Thanks!

For more on European Entrepreneurship Research:

The Entrepreneurship SIG of European Academy of Management (EURAM)

http://www.euram2013.com/r/default.asp?iId=FHDGEI