0 TO 70 INCUBATEES IN 2 YEARS: DELIVER QUALITY, LEVERAGE

“CRC Incubator”

0 TO 70 INCUBATEES IN 2 YEARS: DELIVER QUALITY,

LEVERAGE PARTNERSHIPS, GO VIRTUAL

(BEER)

Global Forum on Business IncubationHyberabad, November 2006

Phạm Minh Tuấn, MSc, MBADirector, CRC Incubator

HANOI UNIVERSITY OF TECHNOLOGYHANOI UNIVERSITY OF TECHNOLOGYCENTER FOR RESEARCH AND CONSULTINGCENTER FOR RESEARCH AND CONSULTING

ON MANAGEMENT (CRC)ON MANAGEMENT (CRC)

Virtual incubator for sustainable community ICT training centers in 64 provinces

Introduction and resultsSuccess factors and challenges

CONTENT



Timeline of Activities

9/2004: EstablishmentSponsored by World Bank Infodev

1/2005: Awarded prize to first tenant, a hospital software group (Vimes)

On a national software competition, broadcast live on VTV3

3/2005: Awarded prize to group with momordica-oil extract technology

“Entrepreneurship” national competition, broadcast on VTV3

4/2005: Opened 80m2 office space

2005-2006: Incubating 5 more tenants, consultancy, training, networking activities

9/2005: Finish “Planning Phase”

01/2006: Received sponsorship from Microsoft, USAID, Qualcomm, EVN Telecom, HP

Virtual incubator conceptIncubating sustainable community ICT training centers in 64 provinces (TOPIC64)

6/2006: Received 2nd grant from World Bank Infodev

Capacity buildingDeveloping sustainability model

Achieved results

Grant for only “Planning” in 2005

Grant for “Capacity building” in 2006-2007

30-50% seeds to become self-sustainable companies

Create jobs

Promote public awareness on business incubation

Develop a pilot and replicate Incubator experiences

Established an actual incubator, incubated 5+2 groups in 2005Created South-East Asia’s largest-scale program for Virtual Incubation with 64 incubatees, Microsoft, Qualcomm, USAID, HP, EVN Telecom as sponsors

>80% seeds have encouraging initial results

5 companies, 37 jobs, 64 virtual incubatees, hundreds more jobs

1000 people participating in trainings, networking eventsOver 20 articles, 3 TV reports on CRC IncubatorVisits by Bill Gates, US First Lady

Helped train 3 other incubators under Min. of Sciand Tech programCo-authored a guidebook with German experts

Initial objectives Achieved results

Incubation by another company, investor, incubator

Face-to-Face Incubation Process

Indivi-duals, groups

of entrepreneurs

Consulting, mentoringNetworkingTraining Company

visits

Nomination by faculties,

institutes

CompetitionsSoftware,

Entrepreneurship…

CRC Full incubation

CRC Partialincubation

Self-sustain-

able comany

Techno-logy being

applied

CRC fund

Regular activities

Corporations, funds

Panel1

Self Appli-cation

Entre-preneur-

ship course

Filter

Comp-letingbiz plan

Panel2

“Seeds”

Vimes (Hospital management software)

Implemented in 30 hospitals2nd prize, National Software Competition 2004Established legal entityReceived investment from Fintec

Group with momordica-oil extract technology

1st prize, “Entrepreneurship” national competition 2005Established legal entityPurchasing and processing momordica oil from provinces

Group with Factory mud-waste processing technology

Established legal entityWon 10k USD sponsorship from World Bank

E-learning software group3rd prize, National Software Competition 2004Established legal entitySigned contract with Hanoi Open University

VnTelecom Ltd.Completing online ad service systemValue added telecom servicesSignificant revenue from google and web design

Family tree service phahe.comSoftware for traffic measurement via video

Face-to-face Incubatees: Focus on ICT and Biotech

Virtual Incubation – Selection Process

15/64 centers completed85% already breaking even

Provided services (B-level)Free equipment, connectivityFace-to-face seminarsVCDs, guidebooks for trainers and managersUmbrella brand “TOPIC64”Website: marketing tool, e-learning environment, online consultation

Impact by 200860,000 students1,000 teachers64 sustainable centers500 affiliate centers

Virtual Incubatees: 64 Sustainable Community ICT Training Centers in 64 Provinces

Pre-seed Seed Early stage

Self-sustainable GrowthStart-up

Consultancies, law firms, advertising companies, accounting/auditing firms...

Large corporations

Other incubators

Venture Capital firms

FPT, Saigon Software Park...

IDG, Dragon,Indochina, Mekong...

Govt entities, NGOs VCCI,MPDF...

Positioning: Filling the gap in entrepreneurship support

Not for profitTechnology Business IncubatorFocus on consulting, services (not only infrastructure)Tied to an university

Introduction and resultsSuccess factors and challenges

Deliver QualityLeverage PartnershipsGo Virtual

CONTENT



EntrepreneursFacilities + Full servicesOne-stop shopBrand, credibilityTrust

HUTChange “ivory tower” mindsetIncome, jobs for staff, studentsBranding

GovernmentJobs, SME developmentApply technologiesModels, policies

SponsorsCorporate Social ResponsibilitySocial impact + SustainabilityPublicity, branding

InvestorsGood innovations and teamsWell prepared business plans

What they need How we deliver

Quantitative targetsProfessional staffGood project managementRegular reportsCreative PR“Just do it pragmatism”

Deliver Quality: Satisfying All Stakeholders

Deliver Quality: Balance Social Impact with Sustainability

Social ImpactTrain “Social” target groups: unemployed youth, disadvantaged, minority…Free or at low costUsually hard to sustain

SustainabilityTraining programs addressing demand from workers, entrepreneurs, officials, students…Find clients able to payUsually hard to reach social targets

How to Balance Both?Phase 1

Sponsor 15 centers with previous experience on “Sustainability”Request them to commit to “Social”groups (eg. 20 free trainings/ month)Gather experience for Phase 2

Phase 2Sponsor 45 centersPriority to centers with significant “Social” target studentsTransfer “Sustainability”experiences from Phase 1

Leverage Partnerships: Snowball Effect

Sponsor + Quick quality = New SponsorWB InfoDev

MicrosoftQualcomm

USAIDEVN Telecom

Hewlett-Packard

TOPIC64 Project: 3P-4P Relationship

4 Public and 3 Private partners4-Ministry “Steering Committee”15-member “Sponsor Board”

LeveragesMobilized sponsorship: cash, equipment, servicesLarge scale turned into more PR for all: Bill Gates, First Lady of US etc.“Green light” from all sidesKnow-how inputs allow quality implementationReach: 64 centers, 500 affiliatesDepth: PCs, connectivity, versatile curricula, management model

Leverage Partnership: Challenges of 3P-4P Relationship

3P-4P Relationship4 Public and 3 Private partners4-Ministry “Steering Committee”15-member “Sponsor Board”

Challenges15+ points of view20-version proposals25 suppliers

Key to managing the partnershipFind out and balance each partner’s real objectivesRegular communication with entire teamTeam representatives in each countryBuild confidence, avoid micro-management

Go Virtual: Use ICT to Overcome Small Space and Distances

Shortage of office spaceNeed grow “big” to satisfy sponsorsUrge to leverage ICT

Go virtual: e-learning, online forum, VCD and guidebooksServe coherent incubatees (64 ICT training centers)Extend depth gradually:

Now basic ITLater advanced IT, business, degree courses

Leverage “brand”TOPIC64 Bill Gates, US First Lady…National publicity campaignsLocalized websites, billboards, fliers for each province

Key Take-aways

Deliver QualityLeverage PartnershipsGo VirtualBeer

What we need nowE-Learning content to feed 64-province networkIdeas, Incubatees in Online Services Policy experiences for Ministry of Science and Technology and Vietnam Incubation Association

Contact

Center for Research and Consulting on Management (CRC)P 310, 17 Tạ Quang Bửu, Hà NộiTel : 84 4 868-4422Fax : 84 4 868-4287Website: www.crc.edu.vn

Phạm Minh Tuấn, MSc, MBA – Director of CRC IncubatorE-mail : [email protected]

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TRƯTRƯỜỜNG ĐNG ĐẠẠI HI HỌỌC BC BÁÁCH KHOA HCH KHOA HÀÀ NNỘỘIITRUNG TÂM NGHIÊN CTRUNG TÂM NGHIÊN CỨỨU VU VÀÀ TƯ VTƯ VẤẤN VN VỀỀ QUQUẢẢN LÝ (CRC)N LÝ (CRC)

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0 TO 70 INCUBATEES IN 2 YEARS: DELIVER QUALITY, LEVERAGE