CEBU INSTITUTE OF TECHNOLOGY – UNIVERSITY

COLLEGE OF ENGINEERING AND ARCHITECTURE

DEPARTMENT OF INDUSTRIAL ENGINEERING

COURSEWARE

ES038 L1C1
TECHNOPRENEURSHIP
WEEK 1

Prepared by:
Engr. KRISTAN IAN D. CABAÑA
Instructor

Second Semester
Academic Year 2020-2021
 ABOUT THE COURSE
Course / Section ES038 TECHNOPRENEURSHIP Credit Units 3
Term Offered Second Semester AY 2020-2021 Total Hours 54
Instructor Engr. KRISTAN IAN D. CABAŇA
Pre-Requisite/s ES034 ENGINEERING MANAGEMENT
Co-Requisite/s None

COURSE DESCRIPTION

Technopreneurship is a philosophy, a way of building a career or perspective in

life. The course covers the value of professional and life skills in entrepreneurial
thought, investment decisions, and action that students can utilize in starting
technology companies or executing R&D projects in companies as they start their
careers. The net result is a positive outlook towards wealth creation, high value
adding, and wellness in society.

COURSE LEARNING OUTCOMES

CLO1: Evaluate and define the market needs and provide solutions to key problems
CLO2: Experience the entrepreneurial process from the generation of creative ideas
Explore the feasibility and creation of a business enterprise, and experience
CLO3:
the dynamics of participating on a business team
CLO4: Create and present a business plan for a technology idea
CLO5: Develop creative idea into a real product

WEEK 1 TOPIC
MODULE 1: INTRODUCTION TO ENTREPRENEURSHIP

LEARNING OUTCOMES
LO1 Recognize the importance of entrepreneurship and technology ventures
Describe the entrepreneurial revolution and entrepreneurial sector of the
LO2
economy
Describe types of businesses and discuss the characteristics commonly
LO3
shared by fast—growth companies

PRE-COURSE DELIVERABLE

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 Hello! I welcome you to this course of exploring your business
and techie mind using a wide range of tools.

“The entrepreneurial mystique? It’s not magic, it’s not mysterious

and it has nothing to do with the genes. It is a discipline. And like
any discipline, it can be learned.” -Peter Drucker

This introductory courseware is designed to introduce you to the

foundational concepts of technopreneurship, including the
definition, profile of the technopreneur, and the role of venture
creation in society. You’ll explore where technology
entrepreneurship and impact entrepreneurship align and where
they diverge, and you’ll learn proven techniques for identifying the
opportunity, assessing the opportunity, hypothesis testing and
creating a prototype.

By the end of this course, you’ll know how to test, validate and
prototype your idea, and also whether or not you fit the profile of
a technopreneur!

Tips for Studying Online:

Having the freedom to study online can be convenient, but this

might make it difficult to focus and start studying. When learning
online, you should become a self-directed learner!

Here are some great tips for you:

• Read the syllabus and course guide: all the important
information can be found here.
• Plan weekly study time ang if possible email output on time.
• Spare time for the class at least 3 times a week.
• Ask questions to your instructor (check your course locator)
• Make connections with your fellow classmates.

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 WEEK 1 TOPIC
MODULE 1: INTRODUCTION TO ENTREPRENEURSHIP

Technopreneurship in the Philippines

Addressing widespread poverty is the single most important policy challenge facing the
Philippines. Not only is poverty high when benchmarked against countries in Asia, but
also the rate of poverty reduction has been slow. While the Philippine economy has grown
at an average of 6 percent for the last five consecutive quarters (since 2012), poverty
incidence remains above 20 percent of the population. The critical challenge is to spread
the payback of this huge economic turnaround among the people, especially the poorest
of the poor.They should feel the benefits of the growing Philippine economy.

Entrepreneurship can provide the solution by creating wealth, jobs, and social
empowerment. If we are to address the issue of poverty with some degree of success,
history tells us we have no choice but to actively encourage entrepreneurial ventures.

In the Philippines, entrepreneurship is viewed as important to empowering the poor,

enhancing production, and as an impetus to innovation. The 1987 Philippine Constitution
recognizes entrepreneurship as an engine of economic growth. Article XII Section 1
highlights the role of private enterprises in supporting equitable distribution of income and
wealth, sustaining production of goods and services and expanding productivity, therefore
raising the quality of life.

The Philippine Development Plan (PDP) further reinforces the thrust on entrepreneurship
through trade and investment to achieve the government’s goal of economic development
and job creation. Based on the plan, measures for macro-economic stability, employment,
trade and investment, agribusiness, power-sector reforms, infrastructure, competition,
science and technology, and anti-corruption are being pursued to strengthen Philippines’s
competitiveness and contribute to job creation.

In 2011, there were approximately 830,000 business enterprises in the Philippines. Of

these, 99.6 percent are classified as micro, small, and mediumsized enterprises (MSME)
which are responsible for 38 percent of total job growth.

Source: www.cipe.org/resources/entrepreneurship-philippines-opportunities-challenges-
inclusive-growth/

“A FARMER’ SON STORY”

“My story could be your story. As Filipinos, it must be our story.”

Dado Banatao was born the son of a farmer in the rural Philippines. He
grew up in poverty, without shoes or access to electricity.

In the 1980s, Dado's innovations helped usher in the era of the personal
computer. He pioneered the PC chipset and graphics acceleration
architecture that continue to be two of the foundation technologies in
every PC today. Along the way, Dado founded three companies: S3,
Chips & Technologies and Mostron.

Watch Dado’s story here:

https://youtu.be/6YdgKvdW43o

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 Great Initiative: PhilDev Foundation & Commission on Higher
Education

The mission of PhilDev is to advance science and technology for the country's national
development by strengthening the foundations and cultivating the mindset of the youth
on technopreneurship. PhilDev, in partnership with the Commission on Higher
Education(CHED), crafted the #Technopreneurship 101 (T101) course to encourage
engineering students to explore the entrepreneurial and R&D career paths.

Rigoberto Advincula, principal author of T101 and Trustee of PhilDev, wrote the course
in collaboration with leading universities in technopreneurship both in the United States
and the Philippines. Through CHED, the T101 was rolled out to 539 higher education
institutions in the Philippines nationwide.

https://bit.ly/PhilDevTEC101

Source: http://www.phildev.org/technopreneurship

TECHNOPRENEURSHIP
TECHNOLOGY
ENTREPRENEURSHIP

What is entrepreneurship?
Entrepreneurship is the practice of embarking on a new business or reviving an
existing business by pooling together a bunch of resources in order to exploit
new found opportunities.
• A way of thinking and acting that is opportunity obsessed, holistic in approach and
leadership balanced for the purpose of wealth creation. (Babson’S Definition)
• Entrepreneurship is creative destruction. Dynamic disequilibrium and optimization,
is the norm of a healthy economy and the central reality of economic.
• The entrepreneur searches for change, responds to it, and exploits it as an
opportunity. Innovation is the specific tool of entrepreneurs, the means by which
they exploit change as an opportunity for a different business or a different service.
(Drucker,1985)
• Entrepreneurship is the pursuit of opportunity w/out regard to the resources
currently under one’s control. (Stevenson)

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 The Power of Technopreneurship

POP QUIZ #1: NAME THAT STARTUP!

FIRST STARTUP?

HINT 1:
“All the best things that I did at <my startup> came from (a) not having
money and (b) not having done it before, ever. Every single thing that
we came out with that was really great, I’d never once done that thing
in my life.”

HINT 2:
Cofounder A single-handedly designed all the hardware and software
for their personal computer while working at his day job at HP.
Cofounder B’s mesmerizing charisma and vision has been described as a
“reality distortion field”.

SECOND STARTUP?

HINT 1:
A fresh college grad and a hedge fund manager started this company
that initially developed cryptography software

HINT 2:
Their next product was a service for transmitting money via the Palm
PDA – precursor of today’s smartphones

THIRD STARTUP?

HINT 1:
This startup tried unsuccessfully to sell computer hardware that allowed
people to visualize complex images clearly, such as CAT scans & MRIs.
The present company of this startup tried to sell the startup and only
got one interested buyer, who paid only $5M.

HINT 2:
To survive, they made short digitally animated films for TV
advertisements to demonstrate the company’s imaging hardware.

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FOURTH STARTUP?

HINT 1:
He graduated from Ateneo de Manila in 1998 but had a tough time
looking for a job because of the Asian Currency Crisis. He was eventually
hired as an assistant manager at KFC SM North EDSA Outlet.

HINT 2:
He founded a company to develop digital products for the mobile
consumer with P62.5K in seed capital which he grew into a company
that debuted in the PSE in 2014 with a market cap of P6.8B.

FIFTH STARTUP?

HINT 1:
This husband and wife team, Isosceles and Leonora from UP Chemistry
sold their first product called Calda which was based on Isosceles’
thesis.
HINT 2:
Eventually their company became one of the leading pharmaceutical
companies in the Philippines, and manufactures among many other
drugs, Ascof (from Lagundi leaves) under license from UP.

LAST STARTUP?

HINT 1:
A taxi-hailing application founded in 2012 and headquartered in Cebu
City and was developed by an alumnus of CIT University from the
Information Technology Department.
HINT 2:
Because of the COVID-19 pandemic, one of the CEOs of the taxi-hailing
application created another application that helps avert the spread of
COVID-19.

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Nowadays, most of us listen to music primarily with our mobile phones through a
streaming service – but that hasn’t always been the case. When music became
downloadable, the market quickly became filled with pirated copies of songs that were
distributed through networks. The music industry tried to fight back, but with little to no
success. Then one day in Sweden, a couple of music enthusiasts saw an opportunity and
started to build a platform with the idea to distribute music online legally. In essence, they
decided to embrace the power of the internet and move the music industry to a digital
format.

While Spotify started small, it has since grown into a global powerhouse in the frontline
of change in the music industry. Music album sales have dropped at a steady rate since
the digital distribution of music became possible. At the same time, the music streaming
market has grown rapidly and still continues to grow. Spotify created the technology and
the product, but it has also been a key factor in the emergence and growth of a completely
new market.

Spotify is just one example of the Nordic ecosystem producing the most unicorns per
capita. Other examples include companies like Klarna, Skype, Supercell, iZettle, CRF
Health, MySQL and King. The sheer number of success stories suggests that there is
something in this area that people are doing right.

The global impact of new technology companies is undeniable, but the impact of these
companies is controversial. Not all technology companies have had only positive effects
on the world. However, when done right, fast growing technology companies offer a great
opportunity for a change towards the better, both for society and individuals. Especially
in the Nordics, more and more technology companies are focused on “scaling good” –
aiming to have a net positive influence on our society.

The next generation of world-changing companies are already in the making, and there’s
room for more.

Some exciting new companies to watch include:

• Meru Health – offers an evidence-based app-based treatment program for

depression, burnout and anxiety.
• Karma – offers surplus food from restaurants, cafes and grocery stores at half of
the regular price.
• Hedvig – builds a new generation of insurance platforms that use AI to help
evaluate customers and operates on a policy of using any surplus for social
good.
• Spinnova – turns wood or waste into textile fibre, without harmful chemicals.
• Clue – tracks the menstrual cycle, and is a free app built in collaboration with top
health researchers.

The Essence of Entrepreneurship

Put simply, entrepreneurship means that you choose a direction for your life and take
responsibility for getting things done. The simplest example of entrepreneurship is of
course founding your own company, but you can have an entrepreneurial mindset while
working for any company – becoming a so-called “intrapreneur.” In today’s world, it’s
exceedingly important to have entrepreneurial skills. In other words, it’s important to be
self-directed, to understand what problems are important to solve and to have the
capacity to find innovative ways to solve problems and provide value. That’s why we
created this course: to provide everyone who’s interested with a useful skill set for using
entrepreneurial tools and thinking in any context.

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 The Benefit of Innovation
Innovation is not just coming up with ideas. Innovation means the creation of new and
useful ideas that lead to a method, product or a service. Just creating something new is
not enough – while creativity can be defined as making something new and useful,
innovations are defined by a concrete solution that results from creativity, often to solve
an existing problem.

Innovation is created by a culture that fosters and inspires imagination and self-
expression where everyone can contribute. Innovation is needed to create sustainable
economic growth on a national level. Just enhancing what already exists isn’t enough
when new solutions and ways of working are continuously being developed in the global
market. Entrepreneurship provides a strong breeding ground for innovation. The self-
directed nature of working as an entrepreneur opens up a new way of doing creative work
that isn’t self-evident in larger companies. Put another way, entrepreneurs are risk takers
that reach for the stars.

So why should I care about entrepreneurship?

Entrepreneurship offers a possibility for anyone to help shape the future, both for them
as an individual and for society as a whole. Everyone has their own reason why they are
involved in entrepreneurship. To understand common reasons, we asked “Why did you
start?” from 17 early-stage entrepreneurs in the Nordics. The six most popular answers
were:
• I saw a problem I wanted to solve
• I wanted to do something of my own
• I wanted to change the world (before I had an idea)
• I had a business or service innovation model in mind
• I wanted to escape from my payroll job
• I had a tech innovation in mind
We believe that entrepreneurship is essentially about solving problems. The majority of
leading entrepreneurial teams are solving a problem they (or someone close to them)
have faced. Different people solve different problems. This is why we need a diverse
group of entrepreneurially minded people from all over the world so we can find and solve
more problems.

Quick Recap 01:

1. What is innovation?
a. A new idea.
b. A new useful idea.
c. A new useful idea that leads to a method, product or a service
d. A new useful idea that leads to a method, product or a service that becomes a
success in the marketplace
2. What is entrepreneurship based on?
a. Financial Ownership (an equity stake)
b. A feeling of ownership (personality responsibility)
c. Founding a company (being the creator)
3. Why is diversity beneficial for a startup?
a. It’s easier to work with people with different backgrounds,
b. Diversity leads to a broader perspective of problems to be solved.
c. Investors relate more easily to your team.
d. It’s easier to find co-founders with different backgrounds.

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 Different Types of Entrepreneurship
As mentioned, entrepreneurship is not tied to being a financial owner of a company and
you can work as an entrepreneur in many different settings.

Entrepreneurship through financial ownership

Let’s start with the traditional dimension of entrepreneurship, which is through financial
ownership. One thing to point out is that owning a part of a company doesn’t automatically
mean that the person is an entrepreneur. The person should also have an operative role
in the company or for example be an active board member.

To discuss entrepreneurship through financial ownership we should cover the different

types of companies.

• One-person companies are entities owned by solo entrepreneurs (often called

freelancers) who make their living doing projects here and there and have
registered a company for billing purposes.
• Boutiques can be cafes, restaurants, clothing stores, barber shops, and so on.
They are often local and it’s common that the owner works as an entrepreneur or
is at least very close to operations. These kinds of businesses rarely aim for high
growth.
• Small and medium-sized companies (SMEs) are mostly groups of people who
provide services or sell a relatively niche product. SMEs usually aim for moderate
growth. In many cases there are entrepreneurs through financial ownership but
there can be many variations – for example the entrepreneurs, a wealthy family or
a private investor can be the financial owner.
• Large corporations are often international and have a wide offering. Decision
making is dispersed between the owners, the board, the executive team and other
governance structures. Financial ownership is divided among shareholders in
many cases on the public market and there are often no entrepreneurs based on
financial ownership. Even though an employee of a big company could own a tiny
fraction of the company shares it doesn’t mean they are entrepreneurs based on
that. One needs to own a significant percentage. Sometimes there might be a few
individuals like a family who own a major part of the company and are acting as
entrepreneurs.

There are many different ways to categorize companies and the listing above is just one
example. For instance, you can also categorize companies into service/consulting
companies and product companies. For service/consulting companies, the value the
company can produce is (in most cases) almost directly tied to the amount of people
working there – meaning growth is dependent on the number of employees. Product
companies can sell more products without necessarily needing to add a large number of
employees.

Entrepreneurship through intrapreneurship

An intrapreneur is an employee acting like an entrepreneur inside of a company, even if

the person doesn’t possess significant financial ownership of the company. They take
responsibility, are proactive, look for solutions to problems and take calculated risks like
other entrepreneurs.

One can be an intrapreneur in any kind of a company if the company creates an

environment where that is possible. Often in SMEs, many employees are intrapreneurs
because there are no rigid structures and the roles are wider, meaning employees have

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many responsibilities. As Risto Siilasmaa discussed in the interview above,
intrapreneurship is possible at bigger corporations also.

Today, some companies have actual intrapreneur roles, but a critical thing to remember
is that these employees are not the only ones who can and should be intrapreneurs. If
the company environment allows it, almost any employee can be an intrapreneur. Actually
many great employees might not realize it that they can be categorized as intrapreneurs.

Every company needs an entrepreneur to get started, but to grow the business and
survive when conditions change, intrapreneurs are needed. Companies need people to
take proactive action when unexpected problems and possibilities come up – at some
point, the original entrepreneur(s) can’t take care of everything.

Entrepreneurship outside of companies

As entrepreneurship is not tied to financial ownership, you can also work like an
entrepreneur outside of companies, including at associations, clubs, or public entities.
Many students work like entrepreneurs in student clubs and associations, parents might
work like entrepreneurs in their children's sports clubs, and there are countless other
places where people can act like an entrepreneur.

Startup Entrepreneurship

Startups are a special company type and being a startup entrepreneur is also different
from other types of entrepreneurship. In the rest of the course, we will focus on startup
entrepreneurship: what it means, what is the impact that startups have on individuals and
society, and the guidelines for building startups.

Quick Recap 02:

1. Daisy runs a store that sells computer components and gear. What type of a
company is this?
a. Small or Medium Enterprise
b. Boutique
c. Startup
d. Corporation
2. Natalie and Tom decide to start a company selling their architecture know-how to
clients. What type of company is this?
a. Small or Medium Enterprise
b. Boutique
c. Startup
d. Corporation
3. Why are consulting companies almost never considered to be startups?
a. There is no founding team.
b. They don’t require capital investment.
c. They can’t grow to a large size.
d. Created value is tied to the amount of people working there.
4. What is intrapreneur?
a. A person running their own company.
b. A person who has shares in a startup.
c. An entrepreneurial-minded person who typically works for a larger
organization.
d. An entrepreneurial minded person who works for their own company.

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 Startup History
Before taking a deep dive into startup entrepreneurship, it makes sense to discuss how
the whole startup world originated. If we think of a startup as a highly scalable tech
company aiming for rapid growth (we will discuss the definition of a startup more in the
next chapter), we can start to look for the first startup in history.

For example, Edison General Electric company (now GE), could be thought of as one of
the first startups. The growth and difficult path to victory for that company is similar to a
typical startup journey. Many companies like Nokia could also be thought of as a startup
in their early days.

However, none of these companies could be considered a startup in their current state
as they are now large corporations.

The rise of Silicon Valley

Startups are often linked with the rise of Silicon Valley. This tech company concentration
around Stanford University has had a huge impact on the technological development of
the world since the 1970s. The term Silicon Valley was first coined in 1971 in a magazine
called Electronic News, when it mainly referred to the companies in the area that were
manufacturing semiconductors (for which the main ingredient was silicon). In the 1980s,
the term Silicon Valley was used to refer to the whole area of Palo Alto, Cupertino,
Sunnyvale and Mountain View, among others.

The startup boom in the area didn’t really start until the end of the 1990s when the dot.com
boom took over. The belief in technology and the possibility that the internet could change
the world grew to unparalleled heights. Companies like Amazon and Netscape were
paving the way and created the sense that success was waiting for everyone who knew
how to register a domain. Things got out of hand and the dot.com bubble burst, causing
one of the biggest crashes in the global economy in recent decades.

Even though the dot.com bubble showed that every idea doesn’t have value just because
it’s on the internet, the belief in technology and the internet didn’t die out.

Technology companies in the 2000s

After the dot.com bubble, the startup community learned from it, moved on, and even
accelerated their speed. If we look at the American major technology companies like
Facebook, Uber, Airbnb, Twitter, LinkedIn, Tesla or Dropbox, none of them existed 20
years ago – even Google was founded only 21 years ago.

The internet and other modern technologies have created huge business opportunities
and the possibility to grow companies rapidly. All of the above-mentioned companies
have grown into billion-dollar valuations in just a few years.

These companies have had a fundamental impact on our world. The world's largest media
company, Facebook, has no content creators on their payroll. The world's largest hotel
chain, Airbnb, owns no hotels. The world’s largest taxi company, Uber, don’t own a single
taxi. And so forth. Technology companies have shaken many industries and captured
markets from traditional companies.

The startup world today

The startup phenomenon is no longer confined into the Silicon Valley or even the US, but
rather it has become a fully global phenomenon with growth centres all over the world,

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such as Stockholm, Berlin, London, Helsinki, Tel Aviv, Singapore, Beijing, and Tokyo.
Even many developing countries have startup centres and active incubators and
accelerators, enabling thus a fertile ground for new kinds of entrepreneurial ideas to grow.

What we like is that not all startups hubs are similar. For example, the startup scene in
Finland has been driven by students. Around 2009, at the same time when Aalto
University was founded, a group of students formed AaltoES, the Aalto Entrepreneurship
Society, which has been a driving force in the growth of Finnish startup activities. The
society has been changing attitudes and also created Slush, the world’s leading startup
event, and Junction, the largest hackathon in Europe. The whole Nordic startup scene is
different compared to others – for example, there is more and more emphasis on having
a net positive impact on our world. Another example of a rapidly growing startup
movement is in Asia, where many cities are active startup hubs today.

After the 1970s, when companies were manufacturing semiconductors in Silicon Valley,
the startup world has changed quite a bit. Despite the bursting of the dot.com bubble and
the financial crash of 2008, the startup ecosystem is alive and constantly developing.
Hopefully in the future, we'll have even more startup hubs around the world as having a
chance to become a startup entrepreneur should not be dependent on anyone’s
background.

Quick Recap 03:

1. In which decade did the dot.com bubble take place for the most part?
a. 1950
b. 1960
c. 1970
d. 1980
e. 1990
2. Which of these companies have been founded after the year 2000? (Choose all
that apply)
a. Apple
b. Facebook
c. Airbnb
d. Uber
e. Google
f. Dropbox
g. Ravio

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 ACTIVITY WEEK 1: TECHNOPRENEUR PROFILING
DEADLINE: April 17, 2021 on or before 11:59PM

GENERAL DIRECTION:
1. Answer the POP QUIZ 1, QUICK RECAP 01, 02 and 03, and the following
ACTIVITIES (A and B) below.
2. Download WORKSHEET TEMPLATE here:
https://drive.google.com/open?id=11w5PiK27eCWzazIlbepDLxmaAa5rb3WM
3. Submit your output in WORD or PDF file. FILENAME: LE1-TEC-FAMILYNAME
4. Submit your activity on or before 11:59PM February 1, 2021 thru GOOGLE FORM.
Access form thru this link: https://forms.gle/1VSvyQD5zwbTApkz6

A. INSTRUCTION: Search for a LOCAL example of SUCCESSFUL INNOVATION and

dissect the chronology and factors that led to its SUCCESS.

Guide Questions:
1. What was the first venture attempt? What was the result?
2. What did the founders do differently? How did they adjust?
3. What strategic changes worked?

B. INSTRUCTION: After checking definition of Technopreneurship and profile of

successful ones, create an ANATOMY OF A TECHNOPRENEUR. Do not copy paste
from Google. BE ORIGINAL! BE CREATIVE!
*NOTE: Manual illustration is ALLOWED.

Sample output:

END OF WEEK 1

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