Developing a sound value chain for technology business
- 1. “Developing a sound value-chain for technology business incubation support”
- 2. What does a healthy ecosystem of support look like? “To succeed we need a small business ecosystem that works” Hon. Dep. President MC Ramaphosa, #SABIC2016
- 3. What does the technology development pathway look like? “To succeed we need a small business ecosystem that works” Hon. Dep. President MC Ramaphosa, #SABIC2016
- 4. What does the technology development pathway look like?
- 5. This not a linear approach…
- 6. Innovators Financiers Unaudited Sep 00 to Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 REVENUE iD-refcheck 10,803 2,740 3,097 3,476 3,873 4,260 4,700 5,318 5,852 iD-voice 0 0 0 0 0 0 0 0 432 iD-auto 0 0 0 411 948 1,492 2,235 3,336 4,980 UK 0 0 0 0 825 2,750 4,750 7,625 11,438 China 0 0 0 0 0 0 0 450 1,500 Canada 0 0 0 0 0 0 0 0 400 iD-academic 0 0 0 0 400 600 2,000 5,000 iD-mobile iD-cert iD-transact iD-ref new territories A,B,C TOTAL REVENUE 10,803 2,740 3,097 3,887 5,645 8,902 12,285 18,730 29,601 Cost of sales iD-refcheck 6,373 1,400 1,257 1,254 1,394 1,542 1,718 1,966 2,169 iD-voice - - - - - - - - 62 iD-auto - - 273 654 1,042 1,561 2,331 3,479 UK - - - - 630 2,100 3,713 6,019 9,028 China - - - - - - 315 1,050 Canada - - - - - - - 240 iD-academic - - - - 208 312 1,040 2,600 iD-mobile iD-cert iD-transact iD-ref new territories A,B,C TOTAL COS 6,373 1,400 1,257 1,527 2,678 4,684 6,992 10,630 16,028 Shared understanding (incl. terminology) #$tartUp_₤€¥
- 7. EARLY STAGE FUNDING SUPPORT
- 8. Bootstrapped Business 1999 – 2008 Gov Loans & Grants: R3mil Own funds R400 000 FUNDING & SUPPORT “Nothing was integrated. Had to deal with all of them separately, different mandates. Did about 50 business plans. Mandates changed in the middle of the process!!! But is was soft money and allowed me to prove the concept.” unhealthy support system
- 9. Closing remarks • Support needs to be available through out the stages of development – cradle to grave • Differentiation of value add by various institutions critical – to avoid duplication and wastage • Poor access to markets a glaring reality of most support programmes – especially in areas where potential for value addition is highest (next slide) • Need to move beyond collaboration lip service
- 10. Basic Strategic Application Design Production/ Sales Research Development Manufacturing PRODUCT LIFE CYCLE ActivityLevelScale Local Research Local Industry & Industrial Products OVERSEAS TECHNOLOGY SOURCES Research Development Production Innovation “Chasm” 10