EMEN : ENTREPRENEURSHIP FOR ENGINEERS

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1 COURSE DESCRIPTION: The opportunity for today s engineers to launch their own technologically-focused businesses has never been greater. Indeed, among many fields of expertise, engineers are uniquely positioned to take advantage of the latest cutting-edge breakthroughs and translating them into new and successful business ventures. From an engineer s perspective, there is nothing quite like taking an innovative idea, even one sketched on the proverbial napkin, and carrying it through all the stages of commercialization: evaluating whether the idea is valuable to others, defining the features that matter the most, building the prototypes to test the efficacy of your idea, and finally providing your finished product to an excited customer. Most engineers are involved with such commercialization efforts within their existing companies. On the other hand, starting your own business is a tremendous way to unleash your creative and entrepreneurial spirit in ways difficult to achieve when working for someone else. Imagine dedicating your time and energy on something that truly fuels your passion, that you are convinced will really make a difference. Yes, it comes with a certain amount of risk, but if managed properly, can also provide tremendous reward, financially and personally. Yet with all this opportunity, most engineers are never exposed to the underlying principles associated with creating a successful business venture. The result is that promising ideas never get off the drawing board because engineers as aspiring entrepreneurs often lack the how and why of new venture creation. Moreover, you don t need a business degree to launch a successful new venture. Many of the most exciting new companies were all started by engineers, notably Google, Tesla and Aquion Energy, to name just a few. In this course, we ll explore the concepts of entrepreneurship as they relate to creating an innovative and successful new technology venture. We ll then take those concepts and dive into the how-to, showing the steps required to convert creative technical ideas into viable and sustainable businesses. This includes topics such as technology evaluation, market and industry analysis, startup and growth financing, forming the right team, intellectual property strategies, legal organizational structures, managing growth and defining your exit strategy. COURSE OUTCOME This is a very practical course that incorporates a semester-long project that integrates the key elements of the course into a realistic proposal for a new venture. By the end of this course, you will have conceived of a credible opportunity for a new business, gone through many of the steps necessary to ensure success, and have constructed a compelling business proposal and presentation to pitch to potential investors for funding. 1 P age

2 LEARNING OBJECTIVES: Define the principles and concepts of innovation; Learn the tools to evaluate new technology, product, service or business opportunities, then employ those tools in an actual project of value to you; Describe and apply the steps to turn new technology ideas into viable businesses opportunities; Quantitatively determine your target customer, why they would buy your product, and how to make sure they know about your product so they can buy it; Learn the terminology to effectively communicate with your financial peers and investors; Build the necessary team to ensure success of your venture; Write effective business proposals for today s investors that describe the financial benefits and resources associated with the new opportunity; Build confidence in presenting business proposals to both technical and non-technical stakeholders; Recognize and overcome the non-technical and non-financial challenges that inevitably come up when creating something new and different to the world; Learn the skills necessary to manage your startup after the launch, notably shifting from planning to execution of all of the details necessary for success; Have fun. Creating a new business opportunity from an original idea is an inspiring and incredibly rewarding endeavor, and one that will impact your career and the careers of your teammates for years to come! COURSE INSTRUCTOR: Professor: Dr. Michael Readey Phone: michael.readey@colorado.edu Office Hours: W & Th: 3:00-5:00 & by appt. Location: ECOT 411 CLASS: Room: ECCR 105 Time: 5:30 8:00 pm Days: Thursdays 2 P age

3 REFERENCE MEDIA: There are countless books out there on entrepreneurship. But only a few can be regarded as truly valuable when it comes to providing both the best research behind successful ventures and a howto process showing the steps necessary to go from innovative idea to viable business. Moreover, there are new ideas emerging about entrepreneurship as it relates to the rapidly expanding digital product sector. As such, we ll avoid those books proclaiming follow my way and be successful and use references that are well-respected by the startup community, and focus on the various approaches that can be adapted to your specific situation. The primary reference we ll use is: Launching New Ventures: An Entrepreneurial Approach, by Kathleen Allen (Cengage Learning, 2015). This books covers all the essential topics of entrepreneurship and has some excellent case studies. The text is bundled with CourseMate, an online learning tool. There are several packages available from the publisher with a variety of costs: The Hardback Bundle: ISBN The Loose-leaf Bundle: ISBN (recommended it is the lowest cost option). CourseMate w/ ereader: ISBN An excellent secondary text (optional) is: Kathleen Allen s Entrepreneurship for Scientists and Engineers (Pearson Press, 2010). It is a short text that focuses strictly on the technology venture. Purchasing it is optional (Amazon is best here). We ll refer to it for its excellent case studies. The course will also draw upon the following very useful references, as well as several case-studies, videos, and articles from major business magazines and research journals that help support the content. Technology Ventures: From Idea to Enterprise, 4 th ed., by T. Byers, R. Dorf, and A. Nelson. (McGraw-Hill Press, 2015). Technology Entrepreneurship, T. Duening, R. Hisrich & M. Lechter (Elsevier, 2015). Innovation & Entrepreneurship, 3 rd ed., J. Bessant & J. Tidd (J. Wiley & Sons, 2015). The Start-Up Owner s Manual, by S. Blank & B. Dork (K&S Ranch Publishers, 2012). Preparing Effective Business Plans, 2 nd edition, by B. Barringer (Pearson Press, 2015). The following books highlight the concept of the Business Model Canvas, an idea that has rapidly caught-on with the startup world. Business Model Generation, by A. Osterwalder & Y. Pigneur (J. Wiley & Sons, 2010). Value Proposition Design, by A. Osterwalder, Y. Pigneur, G. Bernarda, and A. Smith (J. Wiley & Sons, 2014). 3 P age

4 TENTATIVE CLASS OUTLINE Module Date Description 1 1/19 Introduction & Admin: Engineers as Entrepreneurs: Yes we can! 2 1/26 Entrepreneurship in a Nutshell: The 2-Hour Startup 3 2/2 Innovation & Creativity: Coming up with your compelling business idea. 4 2/9 Customers & Competitors: Does anyone else think this is a great idea? 5 2/16 Business Models: Just how are you going to make money with this? 6 2/23 7 3/2 Lean Prototyping: How not to spend all your money on things no one wants. Business Model Validation: Ensuring the long-term viability of your business. Intellectual Property Matters: Protecting your Assets. Building Your Team: Recognizing you can t do it alone. 8 3/9 Entrepreneurial Finance I: Target Cost & Pricing Strategies 9 3/16 Entrepreneurial Finance II: Bankers, Angels & Sharks 10 3/23 The Business Plan & Investor Pitch: Funding your Startup --- 3/30 Spring Break: No Class 11 4/6 You re Funded. Now What? The Launch & Legal Organization Structures 12 4/ /20 Marketing Strategy: How will you let people know about your product? Operations Strategy: How will you build and ship your product? Managing Growth: Life Beyond the Startup Phase. Exit Strategies: Where are you really heading? 14 4/27 Valuation Methods: Google wants to buy your company. What is it worth? 15 5/4 Project Pitch Day: Your turn in the Shark Tank! 4 P age

5 COURSE MECHANICS: The class will use Design to Learn (D2L) for Announcements, Project Submissions, and Course Material Downloads. A Google Community page has been established for this course. The idea here is to share ideas, experiences and questions and answers, in a community environment so that we all learn from each other. On campus students are expected to attend all lectures with laptop, tablet or smart phone to participate in class exercises. Distance students are expected to participate live (via ZOOM) when possible, and if not, watch the video and contribute via the Google Community page. Recorded sessions are available via D2L. All students are required to take the Engineering Management Program s Honor Code Quiz once per semester. EMP s Honor Code Quiz is available to all registered students via D2L starting January 3. NOTE: You must complete the exam by 11:59 pm, MST Friday, January 27, 2017 and achieve a score of 100% or you will be dropped from the course. COURSE GRADING & EVALUATION POLICY: Grading is analogous to Performance Reviews in business sometimes it is the only way to assess your knowledge and the value of your contributions. In this course, grading is based on points earned through completion of weekly assignments, a midterm exam, a final project and participation. Points are then converted to percentages based on the following breakdown: Participation 10% Weekly Assignments 50% Midterm Exam 1 20% Final Project and Presentation 20% Total Grade 100% Participation: A Google+ Community is set up for the participation portion of the course. Each week there are 10 points possible for participation credit. Starting the second week of the class, two students will post a relevant article or video link that relates to the class topics or other topics of interest related to product development and design. The other students will then post a comment to the lead posts. We ll then rotate this process throughout the course such that everyone has a chance to post an article of their choosing. 5 P age

6 Weekly Assignments: With the goal of building an effective New Venture Presentation Pitch, most weeks will have an assignment that will essentially constitute a chapter in your final presentation. The assignment will be covered in class, and be submitted within a timeframe that allows you to conduct a comprehensive analysis (usually 1-2 weeks). a. The policy on homework submission is based upon the principal that in the real world you should not be late, and that your investors and customers expect work done to their schedule, not yours. b. Late submissions are divided into two categories and will be handled accordingly. (1) A COORDINATED LATE submission occurs when you know you will miss the due date for a graded assignment and you contact me in advance. Notification must be made by with 24 hours minimum advance notice. Point reductions up to the amounts below may be assessed for a COORDINATED LATE submission: hours late a deduction of 25% the of earned grade hours late a deduction of 50% of the earned grade 3. >48 hours No credit (2) An UNCOORDINATED LATE submission occurs when you miss a deadline without communicating with me. No credit will be given for the assignment. It is also highly likely that you will be asked to present your contribution to the class for their review. This is a valuable way to practice your speaking skills, hone your presentation abilities, and to learn how to get constructive feedback from your peers. Midterm Exam: There is one midterm that reviews the material covered up to that point in time. The exam may include concepts, numerical problems, and essay questions. The midterm is a take-home exam and open-book. It is anticipated that no memorization of formulas will be required as this is rarely necessary in the engineering world. Final Project & Presentation: At the end of the semester, each student will submit their Business Plan and have the opportunity to present the Plan to their peers and if possible, a mock investor panel. Grading will be based on a rubric defined in class. Final Exam: There is no Final Exam for this course, as the Final Project serves as a much better assessment your knowledge and ability to apply the material covered in class. 6 P age

7 Scale: The final grade is a percentage based on total points earned versus total points possible. A C A C B D B D B D C E < As grades are based on an absolute point score and not a class curve, all students are able to achieve an A in the course. EXPECTATIONS: Be on time! A digital device with internet access is required for each class (i.e. Laptop, Tablet, smart phone, kindle, etc.). Be sure to bring a charger if necessary. Be considerate - No cell phones calls, texting, newspapers, MP3 players, etc. Complete reading and review assigned handouts before attending. Assignments in advance of each class lay the foundation for more interaction and discussion. You will be called upon in class to answer questions and to facilitate discussion. For distance students, the expectation is you participate in class in whatever fashion you can, either live via Zoom or using the Google+ Community page established for everyone. CONFIDENTIALITY & INTELLECTUAL PROPERTY: Students should not disclose any company material or intellectual property that is considered confidential. The University cannot guarantee confidentiality of any material presented, developed or discussed during this course. Students should treat all work of their fellow classmates as confidential, especially the ideas developed by other students or student teams throughout the course. If any student wishes to discuss a company confidential matter, please see me first and we can go through the process of making that possible, protecting all parties involved. 7 P age

8 PROGRAM & UNIVERSITY PROVISIONS AND REQUIREMENTS 1. Classroom Behavior Students and faculty each have responsibility for maintaining an appropriate learning environment. Those who fail to adhere to such behavioral standards may be subject to discipline. Professional courtesy and sensitivity are especially important with respect to individuals and topics dealing with differences of race, color, culture, religion, creed, politics, veteran's status, sexual orientation, gender, gender identity and gender expression, age, disability, and nationalities. Class rosters are provided to the instructor with the student's legal name. I will gladly honor your request to address you by an alternate name or gender pronoun. Please advise me of this preference early in the semester so that I may make appropriate changes to my records. For more information, see the policies on classroom behavior and the student code. 2. Sexual Misconduct, Discrimination, Harassment and/or Related Retaliation The University of Colorado Boulder (CU Boulder) is committed to maintaining a positive learning, working, and living environment. CU Boulder will not tolerate acts of sexual misconduct, discrimination, harassment or related retaliation against or by any employee or student. CU's Sexual Misconduct Policy prohibits sexual assault, sexual exploitation, sexual harassment, intimate partner abuse (dating or domestic violence), stalking or related retaliation. CU Boulder's Discrimination and Harassment Policy prohibits discrimination, harassment or related retaliation based on race, color, national origin, sex, pregnancy, age, disability, creed, religion, sexual orientation, gender identity, gender expression, veteran status, political affiliation or political philosophy. Individuals who believe they have been subject to misconduct under either policy should contact the Office of Institutional Equity and Compliance (OIEC) at Information about the OIEC, the above referenced policies, and the campus resources available to assist individuals regarding sexual misconduct, discrimination, harassment or related retaliation can be found at the OIEC website. 3. Academic Integrity, Plagiarism, and the EMP Honor Code Quiz All students enrolled in a University of Colorado Boulder course are responsible for knowing and adhering to the academic integrity policy of the institution. Violations of the policy may include: plagiarism, cheating, fabrication, lying, bribery, threat, unauthorized access, clicker fraud, resubmission, and aiding academic dishonesty. All incidents of academic misconduct will be reported to the Honor Code Council (honor@colorado.edu; ). Students who are found responsible for violating the academic integrity policy will be subject to nonacademic sanctions from the Honor Code Council as well as academic sanctions from the faculty member. Additional information regarding the academic integrity policy can be found at honorcode.colorado.edu. 8 P age

9 The faculty of the Engineering Management Program (EMP) believe that a culture of integrity is essential to both the long-term, personal success of our students and to the economies and countries in which they live and work. Therefore, EMP has created an Honor Code Violation Policy that specifies a program-specific, academic consequence for a second violation of the CU Honor Code: EMP HONOR CODE VIOLATION POLICY Any and all violations of the CU Honor Code in EMP classes will be reported to the Honor Code Council. As per CU s policy, the faculty member will determine the academic sanction for an offense. The CU Honor Code Council will determine any additional, non-academic sanctions. This portion of EMP s policy is a restatement of the Honor Code policy approved by the CU Board of Regents. A second violation of the CU Honor Code by any students enrolled in Engineering Management courses will result in the academic sanction of not being allowed to enroll in any future Engineering Management courses. The development of the Internet has provided students with historically unparalleled opportunities for conducting research swiftly and comprehensively. The availability of these materials does not, however, release the student from citing sources where appropriate; or applying standard rules associated with avoiding plagiarism. Specifically, the instructor will be expecting to review papers written by students drawing ideas and information from various sources (cited appropriately), presented generally in the student's words after careful analysis, synthesis, and evaluation. An assembly of huge blocks of other individuals' existing material, even when cited, does not constitute an appropriate representation of this expectation. Uncited, plagiarized material shall be treated as academically dishonest. If the student is confused as to what constitutes plagiarism, s/he should review the CU Honor Code on this topic, and refer to the following excellent resources: and Students agree that by taking this course all required papers may, at the discretion of the instructor, be subject to submission for a Textual Similarity Review to Turnitin.com for the detection of plagiarism. All submitted papers will be added as source documents in the Turnitin.com reference database solely for the purpose of detecting plagiarism of such papers in the future. Finally, the Engineering Management Program faculty have established a policy whereby all students enrolled in an EMP course must, at the beginning of each semester, take and pass 9 P age

10 a basic quiz about the CU Honor Code. Each student must take the quiz once each semester, regardless of how many courses they are taking in the department. You must receive 100% on the quiz in order to pass the exam. The instructions and quiz will be made available on D2L when the student enrolls for any EMEN course or any course cross-listed, co-listed or co-located with an EMEN course. 4. Disability Services If you qualify for accommodations because of a disability, please submit to your professor a letter from Disability Services in a timely manner (for exam accommodations provide your letter at least one week prior to the exam) so that your needs can be addressed. Disability Services determines accommodations based on documented disabilities. Contact Disability Services at or by at dsinfo@colorado.edu. If you have a temporary medical condition or injury, see Temporary Injuries guidelines under the Quick Links at the Disability Services website and discuss your needs with your professor. 5. Religious Observances Campus policy regarding religious observances requires that faculty make every effort to deal reasonably and fairly with all students who, because of religious obligations, have conflicts with scheduled exams, assignments or required attendance. In this class, See the campus policy regarding religious observances for full details. 6. Class Attendance for On-Campus Students Unfortunately, some on-campus students have used the availability of the lecture videos to stop attending classes, and rely instead on the videos to learn the material. In the opinion of the faculty, this choice often results in a significant reduction in the quality of the educational experience for both on-campus and distance students; therefore, EMP has established the following policy for all on-campus students registering for an EMEN course: Class attendance for all on-campus students is expected and required. Unexcused absences may incur a penalty against the student s final grade. 7. Access to Recorded Course Lectures The lecture videos are available for streaming and downloading via Desire2Learn (D2L) by all students registered for their respective EMEN course; whether they are on-campus or distance students. This improves the quality of the educational experience for all students, enabling any student to review each lecture as many times as needed to master the material. If you have difficulties accessing the video, FIRST check Technical Help / FAQ at: If you are still experiencing difficulties, please contact: caete@colorado.edu. 10 P age

11 8. Account You are expected to use your CU student account. All of your from professors and the university will be sent to your CU account. You can choose to redirect your CU to an alternate (work/personal) account. For assistance in activating your account and forwarding , contact the Help Desk at HELP or 9. Recording of EMP classes Please note that students attending EMP classes live, whether on-campus or via teleconferencing, may be recorded. 10. Proper Use of Copyrighted Materials The Engineering Management Program (EMP) has a large distance learning population and, as such, many copyrighted materials are offered electronically to students. EMP has the responsibility to comply with the copyright law regulating distance education for a nonprofit, state institution, i.e., the Technology, Education and Copyright Harmonization (TEACH) Act of It s the student s responsibility to comply with U.S. copyright law with respect to the use and sharing of the electronic materials (this includes the videos of class lectures) provided within the program. 11. Appropriate Classroom Use of Laptops Although having a laptop in class opens up new learning possibilities for students, sometimes students utilize it in ways that are inappropriate. It is easy for your laptop to become a distraction to you and to those around you. Therefore, please refrain from instant messaging, ing, surfing the Internet, playing games, writing papers, doing homework, etc. during class time. Acceptable uses include taking notes, following along with the instructor on PowerPoint, and other directed class activities, as well as working on assigned in-class activities, projects, and discussions that require laptop use. Note: This syllabus is subject to change during the semester at the instructor s discretion. Photo source on page 1: 11 P age