The Sage Group Blog

Current Articles | RSS Feed RSS Feed

2010 Emerging Business Conversation

Posted on Mon, Apr 12, 2010
 

By Todd Ostrander

What is an Emerging Business?

Over the past 15 years, I have (1) started a new business from within an $800M business, (2) Entered a startup and remade it into another business entirely, and (3) took over a ‘leftemerging business blog 2 picture for dead' business, created a new business plan and funded the new business plan with existing investors.  Ironically, none of these were "Startups" from scratch even though I was the founder of each of the business plans that were ultimately funded.  Today, I work with a beverage franchisor, a unified communications company, a publisher, a media software company, and a real estate investment group.  The oldest of these is 13 years old, and the youngest is 6 months.  All are "Emerging Businesses".

Emerging businesses look an awful lot like the companies that your friends and mine work at every day.  These are businesses who have not achieved ‘critical mass' but the owners are still looking for that ‘inflection point' where it can.

An ‘Emerging Business' can be any business that hasn't hit its ‘stride' yet based on its original intended purpose.  Or, it could be that the market has changed and the business has to re-evaluate its place in the ‘new market'.  Each of the businesses that I've had the opportunity to work with, have all required resources beyond what they currently have. 

Emerging Businesses can take many shapes and sizes.  What type of business are you?  This will determine how to set realistic expectations for your business and determine your options for operating and growing your business.

In the next segment, I will describe these many different types of businesses and how that will determine the decisions that ownership needs to make toward expectations and future growth.


0 Comments Click here to read/write comments
Tags: , , ,

2010 Emerging Business Conversation (part 2)

Posted on Mon, Mar 15, 2010
 

By Todd Ostrander

An Introduction

building blocksAs we embark on a new decade, many of us are looking forward with the promise of better things to come.  The decade of 2000 to 2009 was difficult for many and 2008 and 2009 were among the worst economic years in memory.  What we know for sure is that the world is a different place than it was in 2000.

The idea of a ‘career' with a single company is long gone and many people have replaced that dream with a new reality, one of owning their own business - being an entrepreneur.  Many of you reading this ‘blog' or conversation, have already made that leap and some of you are even ‘veteran' entrepreneurs like me.

As an entrepreneur, I am always looking for that new piece of information that can help accelerate or transform my business or, simply give me an extra moment of time with my family.  I sincerely hope that this conversation will provide entrepreneurs with valuable insights that will do that and much more.

I have been fortunate enough to live the life of an entrepreneur and have been blessed by a family that supports me through the ups and downs that it brings.  I am passionate about looking back on my experience (the good, the bad, and the ugly) and passing it on to you so you don't have to experience all the mistakes I've made but can revel in the successes.

Over time, we'll address issues from starting and structuring your business to financing your business to marketing on a limited budget and maximizing your limited resources.  We'll address the latest trends in marketing and communications and how you can build your business on a shoestring while looking like a big brand.
The Sage Group is in the business of creating value for our clients.  Sounds like a cliché', doesn't it? Think of us as your outsourced Chief Strategy Officer.  Our experience over time proves that emerging companies rarely have the time to step back and evaluate what they are creating because you're moving so fast through the trees.  We view our role as that of giving an external view to your business and not only giving you the candid feedback that your team may not be comfortable giving but rolling up our sleeves beside you and getting our hands dirty executing with you.

This conversation is just one of the ways in which we add value to our clients and the emerging business market as a whole.  In it, we will address your business from the following areas:

  • The Mind of the Owner - Why are you doing this? What motivates you?
  • The Mind of the Investor - What are your investors expecting in return? Are they aligned with you?
  • The Mind of the Market - Is what you're doing unique and of value to the market? Does the market know who you are? Are you reaching your target market?
  • The Mind of the Company - Are you and your employees aligned with the Market and your objectives?

While we'll touch on each of these over time, our ultimate objective is to help you - the entrepreneur, achieve your ultimate objective over time.  This can only be done by sitting down with you and discussing your plan.  We look forward to that opportunity.  Only you can decide when your business is ready to take that next step toward your future.  The first quarter of the next decade isn't a bad time to start.


0 Comments Click here to read/write comments
Tags: , , , , , ,

Is Value Immutable?

Posted on Fri, Feb 05, 2010
 

Guy Kawasaki, the entrepreneur extraordinaire, tweeted with an inference that there were immutable laws of market leadership. I would like to think so. It would be a great benefit to The Sage Group and our clients if there was a prescription for leadership that was unchangeable.

blog photoThe same would apply to organizational value. If only there was a template that guaranteed corporate performance and, more importantly, long term corporate value.

At Sage we would like to think there is something that is predictable, that once executed, could guarantee ‘value’. I have come to believe that it is a way of seeing, hearing, interpreting, and acting. We call this: ‘The Path to Value™’. We like to think there is way to extract ‘data’ from an ecosystem, create a context and structure for that data that becomes ‘information’ and provide a comparative analysis that creates new insights or ‘intelligence’. From there we can create execution models that are consistently monitored and measured that will tell us, predictably, how our value strategy is progressing.

We had a group of executives that came from a variety of market sectors (Venture Capital and Private Equity, Mobility, SaaS, Wealth Management, Bio-Tech, and Marketing Research and Communications) sit down with us to discuss the changing nature of intellectual property (IP) and how it is impacting corporate performance both from a market strategy and investor value perspective.

IP is rarely understood by executive leadership teams. And with technology and market models changing, the traditional perspectives on IP can create not only corporate value degradation but market damage as well. Behavioral insights like this are not to be found in text books, but in a field of inquiry that doesn’t solely rely on the past or the pundits predictions of the future, but on the truth that comes from applying a critical eye to the symbiotic relationships with an ecosystem.

Is Value Immutable? I hope not. At the end of the day we want to help owners and investors find the strategic value no one else expected.


0 Comments Click here to read/write comments
Tags: ,

Choosing a Path to Value for your Intellectual Property

Posted on Fri, Jan 22, 2010
 

Is there a better way?Choosing a Path to IP Value photo

Consider the cost:

  • In 2008 485,312 patents or 1,867 per work day were filed with the U.S. patent office yet only  54% will eventually receive approval
  • The Caerus Institute reports that for the years 1990 – 2007, $23.7B was spent in the United States on patents that never issued and $19.9B on securing patent that had no value to the patent holder.  [No value means not being used for licensing revenue or cross license transactions, or does not read on any current or future products/services of the patent owner.
  • The Office of Public Affairs reports that only 3,000 out of 1.5 million patents that are presently in effect are commercially viable.
  • And in a study of the results of patent litigation at the appellate level during the years 2002- 2004 patentees lost 76% of the time against accused infringers.

In pursuit of reward:

  • The Economist reports that in the U.S., technology licensing revenue accounts for an estimated $45B annually and worldwide around $100B. IBM realizes about $1B per year and HP $200M.
  • In a 2004 McKinsey survey of corporate executives 75% of the executives expect to buy as well as sell more licenses over the next five years with 43% expecting a dramatic increase in licensing revenue.
  • For every $1M spent on R&D tech companies are filing two patents
  • It is estimated that three quarters of the value of publicly traded companies in America come from intangible assets

Intellectual Property and Value

  • IP includes patents, copyrights, trademarks, and trade secrets
  • As a defensive measure IP can protect company innovation and invention value from infringers
  • IP can create on-going licensing revenue streams to an organization without being capital intensive
  • Investors in start-up companies especially Venture Capitalists want patented technology that if need be can be sold to protect their investment
  • Intellectual property can be shared, exchanged and cross licensed to create and accelerate markets
  • The more patents a company has the more credibility a company has as a leader and innovator

Pace of Change

Intellectual property, patent management enforcement and the body of law are rapidly changing as are technology, invention innovation and market cycles. Any mismanagement of IP resources not only costs companies wasted dollars each year but causes them to miss out on the direct impact a strategically managed IP program can have on company value. Strategically driven IP programs can spur investor interest, strengthen a company’s balance sheet and earnings results and contribute to the ongoing health and sustainability of an organization.

The Executive Dilemma

Even though intellectual property holds promise as a key driver of business value most company executives discover that realizing it is easier said than done. The typical company applies traditional patent processes using conventional tactics to solve immediate patent problems. There is a lack of a strategic roadmap that integrates the near and long term market, technical, legal, financial and business considerations for the company. The result is many organizations find themselves spending too much time and costs on patents that have little strategic impact while at the same time under investing in intellectual property that could create new levels of organizational value and competitive advantage.

IP Path to Value℠ from The Sage Group and the Juhasz Law Firm

The IP Path to Value℠ provides organizations a better way to strategically develop and manage intellectual property assets. Co-developed by The Sage Group and The Juhasz Law Firm, IP Path to Value℠ is a nine stage multi-disciplinary strategic program that enables executives in companies of all sizes to identify, grow and realize a patent’s portfolio value. It is unique and innovative because it integrates business strategy, legal strategy, technical innovation and product and market readiness into the patent management process. IP Path to Value℠ assists executives in making more informed decisions as to balancing increased levels of investment and risk with return. It is a complete intellectual property solution from patent development to patent enforcement and monetization.

Announcing ‘Choosing a Path to Value for your Intellectual Property’ Seminar from The Sage Group and The Juhasz Law Firm

We are announcing a series of seminars around Choosing a Path to Value for your Intellectual Property to be held February through April in the Greater Seattle, WA and Austin, TX area with other locations soon to follow. Intellectual property has moved out of the R&D labs and hands of patent lawyers and landed in the corner office and board rooms. The seminar is intended for executive management and those in the organization held accountable for better patent decision making and return on investment.

To enroll in one of our seminars please contact info@the-sage-group.com or contact me at tom@the-sage-group.com.

And please feel free to visit our strategic alliance: The Juhasz Law Firm at www.patenthorizon.com.

Choosing a Path to Value for Intellectual Property


0 Comments Click here to read/write comments
Tags: , , , , ,

Introducing the The Sage Group℠

Posted on Fri, Nov 20, 2009
 

By Ron Worman, Managing Partner

The Sage Group LogoSage is a value transformation company.

But what is value?

And how do you go about transforming your company to achieve it?

We are launching our new conversation platform today so that we can share with you the lessons we see playing out everyday in the world of business. It just so happens that the crossover with our lives is frequent as well. So, in the end, we hope to help you impact your life as well as your business.

We will have three of the Sage partners sharing different perspectives of value:

  • Tom Miller, who runs our Intellectual Property (IP) Path to ValueSM Practice and who has worked with public and private companies as a board member and CEO, will be defining the term ‘intellectual property’, explaining its role in creating corporate value, and providing insights into how to streamline costs and accelerate the velocity and value of your intellectual assets. Tom also has extensive experience in global channel development and will be sharing his thoughts in this area as well.
  • Todd Ostrander, a serial entreprenuer, who runs our Emerging Business Practice, will be discussing how to launch new ventures within existing companies as well as new companies in emerging markets. If you want to be ‘investor ready’ and set the foundation for strategic value from the beginning of your ‘big idea’, you will want to be in dialogue with Todd.
  • Ron Worman PhotoAnd me, Ron Worman, will be sharing with you the perspectives of the Sage Network on value and how it affects you personally and professionally, as well as dictates the ultimate success of your organization. I helped launch The Sage Group in 2002 after helping CEOs launch and grow companies for over 20 years. I will focus largely on the ecosystems around markets and how they influence corporate behavior and investor valuations.

So back to the question I raised at the beginning: ‘What is Value?’

We will start breaking this down in my next blog. Stay tuned…

View the Juhasz Law Firm’s press release


0 Comments Click here to read/write comments
Tags: , , , ,

The IP Path to Value℠ Forum

Posted on Fri, Nov 20, 2009
 

Tom Miller PhotoWelcome to the Intellectual Property (IP) Path to ValueSM Forum - My name is Tom Miller. My goal is to help executives understand the unique challenges they face identifying, classifying, aligning and protecting their intellectual property. More importantly, my role is reduce the unnecessary cost associated with intellectual property, increase the long term strategic value to the company, and help to align the IP with the appropriate go-to-market plans within the company and find appropriate channels for exercising value that may reside outside the company’s focus. Sage has recently signed a strategic alliance agreement with The Jushasz Law Firm, one of the leading authorites on intellectual property in North America to work within the context of our Path to Value Methodology. We will keep you informed on how to best position this alliance to increase your ability to enagage your markets and increase your strategic value. But first, an introduction to my background.

I have been helping to craft the future of Sage since joining in 2008. I was President of Intermec Technologies, an automatic data capture, mobile computing, wireless and RFID public company (IN), from 2004 through 2005 and a corporate officer in UNOVA Corporation, Intermec’s parent company, from 2001 to 2006. I also served as Intermec’s Executive Vice President, Global Sales and Marketing from 2001 to 2003 and Senior Vice President, Sales Americas and as Senior Vice President of System and Solutions from 1999 to 2001.

From 1992 to 1999, I served in various positions with Norand Corporation including President and Senior Vice President of Sales, Marketing and Operations, helping in the development of Norand’s point-of-sale, wireless and direct store delivery automation businesses and in its 1997 sale to Western Atlas Corporation. I also served as chairman of the Automatic Identification and Mobility Association from 2002 to 2006. Currenty I serve on the board of directors for Infologix (IFLG) as well as Socket Mobility, Inc.(SCKT) and Entrigal, a privately held RFID Asset Management company. From 1996 to 2001, I was a member of the board of directors of Eagle Point Software, a NASDAQ listed architecture, civil engineering, and landscaping software company.

Nothing excites me more than aligning the purpose of an organization with a strategy; and a strategy with an execution plan that ensures the value created can be sustained.

I am looking forward to answering your questions about intellectual property as well as any other questions you might have that intersects with my market knowledge.


0 Comments Click here to read/write comments
Tags: , , , , , , , , , ,

The Emerging Business Forum

Posted on Thu, Nov 19, 2009
 

Emerging Markets Practice Leader

Todd Ostrander PhotoWelcome to the Emerging Business Forum. Whether you are a mature business looking to launch a new venture or an entreprenuer with intellectual capital looking for investors, The Sage Group℠ can help.

My name is Todd Ostrander, the Sage Practice Leader for Emerging Businesses.

I am also a veteran entrepreneur as well. My background includes specific expertise in enterprise software, Software as a Service (SaaS), mobility and early stage capitalization. Prior to joining Sage, I was the founding CEO of Perlego Systems, taking it from its creation, through its life cycle of team recruitment, business strategy, product acquisition and launch, and capitalization. Perlego was the first Software as a Service (SaaS) product in the Mobile Device Management category.

I spent the first 10 years of my career at The Boeing Company and Egghead Software In 1995 I started ELEKOM Corp. where I was Founder and VP of Products and Services. ELEKOM Corp. was the first entrant into the e-Procurement market and was sold to Clarus in 1998 [NASDAQ:CLRS]. After Clarus, I was successful in raising over $30M for my second startup, EssentialMarkets, a supply-side e-Procurement vendor and one of the first enterprise-focused SaaS companies in the world.

And yes, there was a third startup: M3 Interactive, a SaaS-based Enterprise Multi-media Network (EMN) and Proficiency Enhancement platform, which is still in the formative Go-To-Market stage where I remain an active Director.

Earning the right to ask for money is serious business. I have successfully raised over $65 million in Angel and Venture financing while building successful teams poised to ensure investor value. I am passionate about building company cultures required to ensure success.

And yes, I also retain ownership interests in real estate ventures while contributing to my community in various activities including acting as a member of the PLU School of Business Advisory Board.

In this forum I will be addressing how to turn an idea into an investor-ready business proposition. But also how to turn the investor contribution and ecosystem into a winning market model.

I look forward to your ideas and contributions.


0 Comments Click here to read/write comments
Tags: , , , , , , , ,
All Posts