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UNESCO Team Visit:UNESCO Team Visit:Prince Abdullah Bin Prince Abdullah Bin Abdulaziz Science Abdulaziz Science

Park (PASP) Project.Park (PASP) Project.

KFUPM

22nd-25th February 2003

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Effective Strategic Effective Strategic Management; Management;

Route to Science Park Route to Science Park SuccessSuccess

Harry Nicholls

ADCAL

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Credentials

Experience of Strategic Management as Chief Executive, Chairman, Professor and Consultant

Consulting Experience of Science Parks in more than 35 countries

Synthesis of the above and the application of supporting computer-assisted tools

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Harry Nicholls was the Managing Director ,Harry Nicholls was the Managing Director ,1982 - 1992, of Birmingham Technology Ltd.,1982 - 1992, of Birmingham Technology Ltd., the managing company of Aston Science Parkthe managing company of Aston Science ParkBirmingham, United KingdomBirmingham, United Kingdom

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Entrepreneurs in the Incubator Entrepreneurs in the Incubator (BIC) at Aston Science Park(BIC) at Aston Science Park

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Some Questions/Issues

Science Park success criteria Time-scale - Piero Formica’s 70 years

for maturity in the Bologna Packaging industry,

experience at AstonScale of competition from Asia

Pacific Government Policies

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Familiar Success CriteriaFamiliar Success Criteria

technological factors usually pre-eminent technological factors usually pre-eminent in people’s initial judgementin people’s initial judgement

then physical environment - pretty then physical environment - pretty buildings, landscaped settingbuildings, landscaped setting

inter-action between tenant companies and inter-action between tenant companies and host universityhost university

level of support - subsidy from local, level of support - subsidy from local, regional and national governmentregional and national government

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My Success CriteriaMy Success Criteria

wealth and welfare creationwealth and welfare creation– through the successful establishment and

facilitation of the growth of knowledge-based, high technology companies, ( which is the main mission of science parks)

achieved through quality of managementachieved through quality of management in tenant companies and the park in tenant companies and the park managing companymanaging company

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Aston Science Park MissionAston Science Park MissionTo create wealth and long term employment in the City of Birmingham by encouraging the establishment and and facilitating the rapid growth of knowledge-based companies through the provision of business, management,and technical support, venture funding, flexiblepremises and leases to meet changing requirements.

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Lessons from ExperienceLessons from Experience

the importance of the commercialisation the importance of the commercialisation

of technology as a contributor to the of technology as a contributor to the

process of wealth creationprocess of wealth creation

the importance of science parks as a the importance of science parks as a

vitally dynamic force in economic vitally dynamic force in economic

developmentdevelopment

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Lessons from ExperienceLessons from Experience

the need to accept that science parks are a the need to accept that science parks are a

long-term developmental process - not a long-term developmental process - not a

"quick-fix" solution"quick-fix" solution

the need for clarity of objectives the need for clarity of objectives

the vital importance of the quality of the vital importance of the quality of

managementmanagement

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Lessons from ExperienceLessons from Experience

the need to tailor the objectives of a park the need to tailor the objectives of a park

to the technological, political, social and to the technological, political, social and

business realities of the area, country in business realities of the area, country in

which it is situated which it is situated

the need to reconcile conflicting interests the need to reconcile conflicting interests

of various stakeholdersof various stakeholders

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MissionMission

strategic visionstrategic vision

strategic adaptabilitystrategic adaptability

clarity of objectivesclarity of objectives

success criteriasuccess criteria

conflict resolutionconflict resolution

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Examples of Successful Experience

Birmingham & the Lunatics

Stanford and Silicon Valley

Utah, MIT

The Cambridge Phenomenon

Chalmers Institute

Nancy and its Technopôle

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Birmingham

Merchants of Light

Industrial Revolution

Community of “movers & shakers”

Prototype for Silicon Valley?

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Stanford

Hewlett Packard established 1938First science park 1951Real estate developmentSilicon valley - not plannedUS government, NASA, DoD, moneyCheap labour - Vietnamese, MexicansFertile soil of university, entrepreneurship &

venture capital

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Utah

US national science foundation pilot

initiative

Wayne Brown - champion, academic &

entrepreneur

Now several hundred US innovation

centres

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MIT

Route 128Spin-offs, estimated by the Bank of

Boston in 1989 to be worth $10 billion and 300,000 jobs annually to Massachusetts

25 companies per yearMIT research record and reputation not

damaged, but enhanced, by this processOnly 3% of inventions suitable to Spin-off

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Cambridge

Cambridge InstrumentsCambridge Science ParkThe Cambridge PhenomenonFamily tree of companies linked to 14

departments of Cambridge University - +400spin-offs and spin-offs from spin-offs - 20,000

employedScience Park only indirectly involved - key factor

is the supporting Community as in Stanford

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Cambridge 2

St. John’s College Innovation Centreemphasis is on building-in mechanisms, that

will encourage innovation and entrepreneurship

University activities represent less than 15% of the total high technology business activity in the area which now includes more than 700 companies with a combined turnover in excess of £2 bn.

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Chalmers

Chalmers early organisation for collaboration with industry

Further developments in Chalmers co-operation with industry

Uddevalla shipyard closure - a technology transfer case

What are the lessons?

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University spin-offs, SMEs, and the science base

Technology originatorEntrepreneurthe R & D organisationVenture Investor

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Path to MaturityPath to Maturity

attainment of self-sustaining growth attainment of self-sustaining growth

and re-creationand re-creation

tenant companiestenant companies

science park complexscience park complex

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Technological InnovationTechnological Innovation

Business ProcessBusiness Process Re-EngineeringRe-Engineering

Managing InnovationManaging Innovation

Total QualityTotal QualityManagementManagement

Quality FunctionQuality FunctionDeploymentDeployment

In Search of ExcellenceIn Search of Excellence

Thriving on ChaosThriving on Chaos

ConcurrentConcurrent EngineeringEngineering

Strategic SellingStrategic Selling

EntrepreneurshipEntrepreneurship& Innovation& Innovation

ManagingManagingKnow-HowKnow-How

High Tech MarketingHigh Tech Marketing

ConceptsConcepts&&

PrinciplesPrinciples

Complex Process - mass of conflicting advice

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Technological Technological InnovationInnovation

Business ProcessBusiness Process Re-EngineeringRe-Engineering

Managing Managing InnovationInnovation

Total QualityTotal QualityManagementManagement

Quality Quality FunctionFunction

DeploymentDeployment

In Search of ExcellenceIn Search of Excellence

Thriving on Thriving on ChaosChaos

ConcurrentConcurrent

EngineeringEngineering

Strategic Strategic SellingSelling

EntrepreneurshiEntrepreneurshipp

& Innovation& Innovation

ManagingManagingKnow-Know-HowHow

High Tech High Tech MarketingMarketing

ConceptsConcepts&&

PrinciplesPrinciples

Enterprise Support Enterprise Support Systems & Processes...Systems & Processes...

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Typical ProblemsTypical Problemsgap between strategic planning and gap between strategic planning and

product planningproduct planningstrategic plans “shelved” & not strategic plans “shelved” & not

implementedimplementedexcessive product orientationexcessive product orientationweak market orientationweak market orientationlack of effective processes for transition lack of effective processes for transition

and innovationand innovation

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Critical ChallengesCritical Challenges Provide significant value and benefits:Provide significant value and benefits:

through innovative & unique productsthrough innovative & unique products

at a price customers are willing to payat a price customers are willing to pay

by innovating from withinby innovating from within

Become Market-Oriented through: Become Market-Oriented through:

strategic product planningstrategic product planning

continuous product assessment & enhancementcontinuous product assessment & enhancement

representing R&D as product plansrepresenting R&D as product plans

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Strategies for Innovation (SFI)Strategies for Innovation (SFI)

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Project ResultsProject Results

Plans & Models that can be Readily Plans & Models that can be Readily ImplementedImplemented

Trained ManagersTrained Managers

Common Framework for Assessing Common Framework for Assessing Success PotentialSuccess Potential

A Strategic Management Support SystemA Strategic Management Support System

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Importance of Synergy

Identify strategic gaps in the region’s technological capability and eliminate them

Identify strategic strengths in the region’s technology and reinforce them

Make use of the multiplier, accelerator and demonstration effect

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Path to Maturity

Attainment of self-sustaining growth

and re-creation

Relationship between companies

Relationship between companies and

universities and research institutes

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Incubator

Science ParkTechnopolis Wider Economy

Technopôle

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Desired Technology Profile

Chosen technologies do not have to be

“leading edge” or “state of the art”Technologies that fit with the potential for

business success of the area Profits from a successful venture can be used

to develop higher level technologyTechnology for its own sake likely to result in

commercial failure

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Technology Push Versus Market Pull

Solution in search of an applicationMarket need requiring technological

answer

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Technology Mission

Exploitation of technologies from abroad

Why invent what already exists ?

It is the use of technology that is important

not its development

Exploitation of research from universities and

other institutions within region

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Summary

markets, markets, marketsnot technology, technology, technologythe aim is the creation of wealththe aim is not technology for the sake of

technologythe aim is not satisfaction for the

engineer or scientist but satisfaction for the manager meeting the needs of customers profitably

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Prestige Aston Science Park building Prestige Aston Science Park building now occupied by successful former now occupied by successful former

BIC tenant FAME ComputersBIC tenant FAME Computers

70% of Science Park buildings occupied by graduates from BIC