Republic of the Philippines

Mindanao State University-Iligan Institute of Technology

COLLEGE OF ENGINEERING AND TECHNOLOGY
A.Bonifacio, Tibanga, Iligan City, 9200
Homepage: http://www.msuiit.edu.ph/coet

Introduction to Technopreneurship

PREPARED BY:

Prof. Rosal Jane G. Ruda-Bayor

 Technopreneurship
Entrepreneurship
Identifying gaps in any Technology
market and converting Application or use of
it to a profitable scientific knowledge
business

Results in a tech-savvy, creative,

driven, innovative business
model which defies the present
economic order using a product
or service that uses technological
solutions to change the
traditional way of doing
something

Technopreneurship is ENTREPRENEURSHIP in the domain of

TECHNOLOGY.
Famous Technopreneurs

• CEO and Chief Engineer at SpaceX

• CEO and Product architect at Tesla, Inc.
• At 10 yrs. old, he taught himself how
to program and sold his first software
at age 12.
• Founded X.com which later became
Paypal
• Dedicated to space exploration and
dreams of colonizing Mars.

“The path to a CEO’s office should be

through ENGINEERING and DESIGN”
Famous Technopreneurs

• Business magnate, industrial engineer,

investor, and media proprietor
• Chairman, CEO and co-founder of
Apple, Inc.
• Showed an early interest in electronics
and gadgetry
• Worked with fellow engineer Steve
Wozniak to create small computers
which started the era of small
computers
“Innovation distinguishes between
a leader and a follower.”
What do ENGINEERS do?
Common answer: Solve and fix
problems, design and model
things, create mathematical
models, and related activities

Engineers create
VALUE for
investors
 50 can be reduced to
How?? individual products

15 are patentable or
patented
100
ideas 7 may support a workable
business

5 may have solid business

models with adequate
cash flow

2 with the right team

2 with real potential or

sales
How?? May produce 2 start-ups valued
at a million dollars
Each by wealthy investors

By creating value, engineers

100 Could become entrepreneurs
ideas Using their own ideas, while
using investment capital from
wealthy investors.
When engineers solve
problems, they create value
for their employers. Their
employers benefit, and so do
their customers.

Licensing also works for engineers

who do not want to start their
own business.
 Fundamentals of Business
Business starts with an IDEA

NO IDEA → NO PRODUCT

NO PRODUCT → NO CUSTOMER

NO CUSTOMER→ NO BUSINESS

Rick Hopper’s idea is to provide

a product that will solve the
problem of finding a place to
secure your glasses.

Engineers must design products with customers in mind.

 Rick Hopper’s ReadeRest
• Problem: There is no good place to store your glasses on
one’s person unless you use a bulky case.
• Solution: Using magnets and paper clips

Initial sales Offered $150,000 for

are at 65% control of the
$65,000.00 company (2012)

RESULT: By 2014, sales

Pitch to wealthy investors reached $10 million.
Funding agencies
Rick Hopper has created a value for himself and his investors
using a simple invention that weighs less than two quarters.
 Technological Innovation
• Innovation is a new, unique, improved marketable
product or service that can generate revenue from
paying customers to bring sustainable profits for an
established company or start-up business.
• Not all new businesses are “innovative” businesses.
• Examples of innovation:
a) Creating a product that never existed
b) Converting waste or discarded material to product
c) Expanding the scope and application of an existing
product
 Classifications of Innovation:
a) Efficiency innovations – make products
cheaper, faster and better
b) Sustaining innovation – build on top or
improve existing products
c) Disruptive innovations – brings new products
to the market that can make existing products
obsolete
 Group Homework
1. Give a specific example of the three types of
innovation and explain why you believe this
example falls under that category.
2. Presentation will be done on Thursday. 3 slides
only. 1 slide for each example. Example can be
theoretical or based on actual company
happenings (internet research will help you).
 Seven Phases of Technological Innovation

Pre-Start-up Phases: Phases 1-3

Phase 1: Idea Creation

• An idea to solve a problem, meet customer needs or grab an
opportunity

Phase 2: Develop a Product or Service from your

Idea
• Reduce the idea to a product or service for a target market

Phase 3: Business Model and Business Plan

Development
• Get help from mentors, build a team, cover all aspects of the
business to generate sales
 Seven Phase of Technological Innovation

Execution – Start-up and Beyond: Phases 4-7

Phase 4: Find investment Capital
• Success is based on the value created in Phase 2 and
3

Phase 5: Create a Functioning Start-up

• Legal and organizational preparation

Phase 6: Grow to Financially Steady State or Maturity

• Growth in profits
• Engineer may sell ownership to exit the business

Phase 7: Innovation Beyond Maturity

• Past maturity but remaining to be innovation
• Example: Apple, Inc.
The BUSINESS MODEL and the
BUSINESS PLAN