Whitney The Entrepreneurial Engineer Feb80

STRATEGIES FOR STARTING AN ELECTRONICS COMPANY: THE ENTREPRENEURIAL ENGINEER ATALK BY THOMAS M. WHITNEY ApPLE COMPUTER INC. FEBRUARY 9.1 1980 STRATEGIES FOR STARTING AN ELECTRONICS COMPANY: THE ENTREPRENEURIAL ENGINEER I. INTRODUCTION A. Definition of an Entrepreneur B. Overview of Talk C. New Product Process D. Strategy Flowchart II. DEFINE A NEED A. Importance of Experience B. Example Environments 1. Office 2. Factory 3. Education III. UNDERSTAND THE CUSTOMER A. What is Value B. Who is not the Customer C. Capitalizing on the Success of Others IV. APPLY TECHNOLOGY A. History: Looking for Characteristics of Failures and Successes B. Risk Evaluator C. What are the Important New Technologies 1. VLSI 2. Interfaces 3. Machine Intelligence - Computing Power and Software V. INNOVATE, ENGINEER, AND INTEGRATE A. Contribution - What is it? B. Focused Energy - Define Objective C. Prototypes - Demonstrate and Sell D. People E. Importance of Support - Financial and Technical VI. PUTTING IT TOGETHER - Case Study of HP-35 Calculator VII. SUMMARY: A Strategy for New Product Development Thomas M. Whitney February 9, 1980 WHAT CHARACTERIZES THE ENTREPRENEUR • URGE TO "MAKE THINGS HAPPEN" - DESIRE TO BE OWN BOSS AND CONTROL - WILLINGNESS TO TAKE RISK • DESIRE FOR EGO SATISFACTION - CHANGE THE WORLD - RECOGNITION AND FAME • DESIRE FOR PERSONAL FORTUNE INDEPENDENCE TO MAKE THINGS HAPPEN • LOVE OF THE PURE JOY OF WINNING COMPETITIVE PIECES OF A NEW VENTURE PRODUCi OR SERV\CE VENTURE PRODUCT MAIN THEME: SUCCESSFUL NEW PRODUCTS ARE THE RESULT OF THE INNOVATIVE USE OF NEW TECHNOLOGIES TO SATISFY A NEED. MOMMY, WHERE DO NEW PRODUCTS COME FROM? NEW PRODUCT PROCESS TECHNOLOGY 1 TECHNOLOGY 2 NEED __ PRODUCT ENGINEERING STRATEGY FLOWCHART DEFINE A NEED , DEFINE A CUSTOMER " DETERMINE WHAT IS VALUE TO CUSTOMER " " INVESTIGATE TECHNOLOGIES ENGINEER " INNOVATE ...... .. A R " INTEGRATE -- T c ,. DEMONSTRATE S T o ,- -- M p A N Y DEFINE ft, NEED • UNDERSTAND THE ENVIRONMENT • TAP YOUR PERSONAL FRUSTRATIONS • ~10ST DEADLY KIND OF THINKING - "IF IT'S AGOOD IDEAJ WHY HASN'T IBM (GM J EXXON J HPJ ... ) ALREADY DONE IT?" DEFINE AND UNDERSTAND THE CUSTOMER • WHAT IS VALUE TO THIS CUSTOMER? • HOW WILL THE PRODUCT BE PURCHASED? (WHOSE MONEY) APPROVALS) ETC.) • WHAT IS THE CUSTOMER'S HISTORY OF READILY ACCEPTING NEW PRODUCTS? • WILL PRODUCT CHANGE FUNDAMENTAL WAYS OF OPERATING AND THINKING? SOME ENVIRONMENTS WITH CRITICAL NEEDS • THE OFFICE • . THE FACTORY • EDUCATION COMPARISON OF OFFICE AND PRODUCTION WORKERS CAPITAL INVEST- ANNUAL PRODUCTIVITY INCREASE ,SIZE GROWTH PER PERSON OFFICE 0.4% 45M 2.3% $ 2)300 PRODUCTION 0.6% 30M 0.8% $25)000 LABOR FORCE ~1ENT WHAT HAPPENS IN THE OFFICE? DATA r OFFI CE COMMUNICATING COPYING STORING RETRIEVING INFORMATION ... ... WHO IS THE CUSTOMER? • CLERK - TYPIST - SECRETARY • OFFICE SUPERVISOR • MANAGERS AT ALL' LEVELS WHAT IS VALUE? • T…