Entrepreneurship in Action: From Idea to Opportunity {II}
Means-Ends Framework in Action: Trajectory of New Technologies Emergence of a New Venture Through Superior Value Proposition
Storage Primary Secondary storage storage Volatile Nonvolatile Temporary Permanent Secondary storage characteristics Media Capacity Storage devices Access speed
Characteristics of Storage Volatility DRAM / SRAM Mutability Read / Write; Read Only; Slow Write, Fast Read Accessibility Random / Sequential Addressability Location; File; Content Capacity Raw Capacity / Storage Density Energy Use Moving Parts / Solid State
The Cost of a Disk Access Time Component Action Seek Time Time to move the read/write arm to the correct cylinder Rotational delay (or Time it takes for the disk to rotate so latency) that the desired sector is under the read/write head Transfer time Once the read/write head is positioned over the data, this is the time it takes for transferring data
Floppy Disks Diskettes Floppies Portable storage media Floppy disk drives Traditional Floppy Disk (FDD)
Traditional Floppy Diskette
Types of Floppies High capacity Known as a floppy-disk cartridge Require special disk drives Three well known types Ends Old New Zip disks Means HiFD disks Old SuperDisks New
Hard Disks Use thicker, metallic platters for storage Faster than a floppy diskette Large capacity Located inside system unit Known as a fixed disk Ends Old New Designated as the C drive Means Old Advantages over floppies New Access speed Capacity
Hard-Disk Cartridges Removable hard disks Used to complement internal hard disk Capacities of 10 to 20 PC Card Hard Disks GB Ends Old New Means Old New
Hard-Disk Packs Removable Massive storage capacity Common in mainframes Resembles stack of Ends Old New Means vinyl records Old New
Performance Enhancements Disk caching Redundant arrays of inexpensive disks (RAID) File compression Ends Old New and decompression Means Old New
Optical Disks Compact Permanent storage Laser beams reflect off pits Two common types Ends Old New CD Means Old DVD New
Compact Disc Optical format From 650 MB to 1 GB capacity Rotation speeds vary Types Read only: CD-ROM Ends Old New Write once: CD-R Means Rewriteable: CD-RW Old Picture CDs and Photo CDs New
Digital Versatile Disc Digital Versatile Disk or Digital Video Disk (DVD) Similar to CDs, but can store more data Types Read only Ends Old New Means Write once Old Rewritable New
DataPlay Optical disk Write once format Quarter size 500 MB capacity Holds 5 hours of CD- quality sound Use for storing and Ends Old New Means playing music files Old New
Solid-State Storage Flash memory cards Widely used in notebook computers Used to record MP3 music files Key chain hard drives Ends Old New Key chain flash memory Means Old devices New Connects to a USB port
Internet Hard Drives Ends Old New Means Old New
Always On the Move One Trillion digital images will be captured in 2015 700 billion of these will be captured on mobile phones 300 hours of video are uploaded to YouTube every minute Biggest customers Mobile and Tablets Consumer Electronics Computing
Secondary Storage Pioneers Seagate Western Digital Terradata Micron EMC
Means-Ends Trail Chief Executive Officer Sanjay Mehrotra, President and Chief Executive Officer Eli Harari and Sanjay Mehrotra Honeywell and Intel Set up SanDisk in 1988
From Idea to Start-up Dr. Eli Harari, an Israeli engineer, began making early contributions to electrically erasable programmable read-only memory [EEPROM] a precursor to flash memory Harari worked on flash memory at Intel, leaving to found a start-up which failed In 1988, Harari launched the company that would become SanDisk with Sanjay Mehrotra and Jack Yuan Early on, SanDisk had recognized that digital cameras would need digital storage, and computers could become ever more mobile and light and would require a similar storage technology In 1988 Harari offered the flash memory card technology to Kodak for inclusion in their cameras. Kodak offered to fund the development with the condition that SanDisk offer a three year exclusive contract for the 'digital film'. Harari and SanDisk rejected the offer, preferring to have competition in the marketplace
• high-density flash memory process, Removable module integration, cards device design and Mobile Embedded reliability; Consumer products • securing data on a electronics USB drives flash memory device; Digital media • controller design and Computing players firmware; Solid state • system-level devices integration; • multi-die stacking and packaging technology;
SanDisk 1995-2010 Year Revenue, $ million 1995 62 2000 602 2005 2,310 2010 4,830 2014: $ 7 Billion
SanDisk Becomes Ubiquitous From a 3 person start up SanDisk has 4,000 employees SanDisk shipped 700 million units last year SanDisk R & D spending $513 billion 19 nm technology On average, customers purchased over 2 million SanDisk products each day In fiscal 2011, SanDisk delivered record revenue with strong profitability and cash generation, driven by a leading position in a broad range of markets Grew sales to $5.7 billion representing a 17% growth year over year Focus on profitable growth allowed SanDisk to generate more than $1 billion in cash flow from operations
FISCAL 2014 KEY FINANCIAL METRICS Metrics in millions, except FY’14 FY’13 percentages and per share amounts Revenue $6,628 $6,170 Gross Profit $3,068 $2,867 percent of revenue 46% 46% Operating Income $1,558 $1,562 percent of revenue 24% 25% EPS $4.23 $4.34 5,000 patents: named a Thomson Reuters 2014 Top 100 Global Innovator for the fourth consecutive year. Introduced the iXpand™ Flash Drive, designed specifically for iPhone and iPad, allowing quick photo and video transfers from an iPhone or iPad to a Mac or PC.
Beyond the Horizon A critical ability for a successful entrepreneur is to make appropriate predictions regarding the uncertain future Discovery of new resource New consumer desires New technological opportunities Correctly anticipate consumer preferences and efficiently use resources to meet these preferences The goal of an entrepreneur is to know the consumer’s future wants Before the consumer knows them
Characteristics of an Opportunity Creating value Not necessarily low cost Opportunity is not always (rarely?) found in well-documented growth markets Opportunities are not necessarily the result of inventions by the entrepreneur Not everyone pursues opportunities, even if they are obvious
Nine Categories of Opportunity Increasing the value of a product/service New applications of existing means of technology Creating mass markets Customization for individuals Increasing reach Managing the supply chain Convergence of change Process innovation Increase the scale of the firm
Preparing a Concept Statement Concept statement should provide a description of the product or service being offered the intended target market the benefits of the product or service a description of how the product will be positioned relatively to similar ones in the market a description of how the product or service will be sold and distributed
Means-Ends Framework Product Old Means Commodity Improvement Process Breakthrough New Means Improvement Innovation
Creating a New Value Equation Reduce What factors should be reduced well below the industry standard ? Eliminate Create What factors What factors should be should be created that eliminated that New Value the industry the industry Equation has never has taken for offered ? granted ? What factors should be raised well beyond the industry standards ? Raise
Applications Technology-Driven Businesses Specific business opportunity Customer Technologies and Segment Competencies
Opportunity Checklist Product, market and industry Demand, current market size and growth rate Cost structure Economics Profit potential Time to breakeven Capital requirements Financial returns
Opportunity Checklist Competitive Advantage Variable/ fixed cost Entry barriers Protectable Intellectual Property Personal Personal goals and fit Upside v/s downside Stress tolerance Sustainable Advantage Opportunities for extensions Management team Harvest
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