BBIC Entry Date Extened

The TKM – Ernst & Young Big Business Idea Competition is a prestigious launch pad for new commercial ventures. The 2006 competition was launched in June by HE Ahmed Al Dheeb, Under Secretary at the Ministry of Commerce and Industry and according to Knowledge Oasis Muscat (KOM) management entries have been pouring in from entrepreneurs, students and new companies. To be eligible, the ideas have to be original or a significant improvement on an existing business and make significant use of technology. “We’ve received a large number of entries so far and due to the response and interest in the competition it’s been decided to extend the competition’s entry closing date from 1:00pm, Saturday 2 September to 1:00pm, Saturday 16 September. After the 16th we’ll be sending entries to our panel of judges (technology investors, consultants, bankers, government personnel and successful entrepreneurs) for comment and feedback. We’ll then have the unenviable task of reducing this to a shortlist of semi-finalists and finalists,” remarked Ibtisam Al Faruji (pictured left), Head of Marketing at KOM. More information about the TKM – Ernst & Young Big Business Idea Competition is available at www.kom.om/bbic

The TKM – Ernst & Young Big Business Idea Competition is expected to provide a platform to turn innovative ideas into businesses – not only through prize money, but the mentoring, PR and credibility that goes with it that can help secure investment. “In a knowledge economy it’s vital to provide mechanisms to support innovative technologies. Oman has a growing technology and science base and competitions such as the TKM - Ernst & Young Big Business Idea Competition leverage this knowledge into the commercial world and helps support social and economic growth, this is extremely important to Oman,” commented Mohammed Al Ghassani, Executive Vice President, PEIE and member of the judging panel.

According to Dave Pender, Adviser, PEIE and member of the judging panel: “Entrants to the competition include science researchers, lone inventors, small companies and entrepreneurs from around the sultanate. The ideas received so far make significant use of science, technology or design and range from wireless communications to environmental solutions.” From a global perspective, the longest-standing business plan competition is the US$100K competition at MIT, which has facilitated the birth of over 60 companies with an aggregate value of over US$10.5 billion dollars. These companies have generated over 1,800 jobs and received US$175 million dollars in Venture Capital funding. The TKM – Ernst & Young Big Business Idea Competition is certainly much younger, but it has every intention of taking domestic entrepreneurs on and up.

BBIC Interview with Habib Hanna

Habib, would you mind giving us an overview of NCR Corporation?
NCR Corporation (NYSE: NCR) is a leading global technology company. Based in Dayton Ohio, NCR (http://www.ncr.com/) employs approximately 28,000 people worldwide. In Oman, NCR is offering integrated Information and Communication Technology (ICT) solutions in the field of Financial Solutions (ATMs, Bill Payment, etc.), Teradata enterprise data warehouse (EDW) and Customer Relationship Management (CRM), contact centres, retail solutions (web kiosks/ point of sales, etc.), cheque processing and Imaging Solutions, high-quality document and media consumables, turnkey ICT infrastructure and business solutions, as well as lifecycle support and managed services for critical IT environments.

Why have you become involved in the TKM – Ernst & Young Big Business Idea Competition?
One of our key objectives as NCR Oman is to effectively contribute to the development of the ICT sector in the Sultanate. This is our duty towards this country where we employ more than 50 people. And thus we will try to support all initiatives that we believe will bring positive results to the domestic ICT scene.

How important are start-ups to Oman’s economy?
Start-ups enable the ICT sector to become productive rather then being just receptive, allow new job creation, provoke business innovations, fuel capital investments into the country, and contribute effectively and sharply to the overall growth of the economy. In short, they’re important.

What personal experience do you have of the start-up culture?
I was engaged on the business side with many start-ups in the area of ISP/ASP business – where we were advising those new companies on how to build their business models, structure their mode of operation as well as to design, implement and manage their full technology infrastructure.

What characteristics do you need to be a successful entrepreneur?
Good vision, directed by a solid business plan and coupled with sound execution.

Which international entrepreneur has inspired you and why?
Google. They changed the rules of the game and have been very successful with introducing innovative services and products such as “Google Earth”.

What are the key ingredients for a successful start-up?
First, start-ups should come with something that the market needs and wants. Second, start-ups should have a solid business plan. Third, they should start with the minimum investment required. And lastly, they should start with the right people on board.

How could the region’s banking community improve the services they provide to start-ups?
Banks could support start-ups not only by offering financial facilities to those enterprises, but also to advise them on their overall financial plans. The banking community in the region is very sophisticated and has extensive experience and knowledge in various industries – and thus could help those start-ups by advising and re-shaping their plans to be the best possible.

What path do you suggest for would-be Omani entrepreneurs?
Improve something in what customers do today. Customers normally invest in technologies to at least fulfil one of those things: save money (think of ROI) , improve existing services, create new services, create new revenue streams, enable better security and control, and/or improve their image in the market place.

What are the drawbacks to being an entrepreneur?
There is always a risk involved when we talk about entrepreneurs. Will you be able to cope with the market challenges? How quickly the market would react to those products/services or even to the business model of the start-up? A lot of effort is needed initially to build the credibility of the start-up in the market. However, those could be covered with the proper market strategy and a solid business plan directed by sound execution.

What do you think the dotcom has done for enterprise and innovation?
On the positive side we have global reach – where any enterprise can market and sell its products globally. However, it also showed us that you have to have real value in what you do in order to stay in the market. You cannot create a bubble that will last for long.

How do you recognize the next big thing?
Simply by thinking globally and acting locally

BBIC Interview with Matt Harrison

This week we caught up with Matt Harrison – a Muscat-based marketing consulting. Matt’s a big supporter of the BBIC initiative and this is what he had to say on entrepreneurs, lack of sleep, Citigroup and Procter & Gamble, the importance of listening to young people and the advice he’d give his kids on setting-up a start-up.

Matt, what’s your interest in the BBIC?
Entrepreneurs drive the Omani economy, whether they’re a small family-run grocer shop, a smart graphic design firm or the next big Internet idea. It’s this zeal for creating something new and building something that we need to encourage and promote in Oman. In this regard, the TKM – Ernst & Young Big Business Idea Competition is an excellent initiative that can only help contribute to developing a stronger domestic entrepreneurial environment. We’ve got to be running these kinds of initiatives - they play an important social, economic and business role.

What advice do you have for young entrepreneurs? What's the most important thing they need to do to succeed?
Forget about sleeping or learn to need less sleep. Focus on doing a few things extremely well. Do everything with a vengeance. Make room in your business for all kinds of people. Plan to make lots of mistakes - make them, fix them and then forget them. Look forward not back.

I like that. On the flip side, what are some of the reasons you think entrepreneurs fail?
Entrepreneurs can sit on the accelerator for too long. They need to partner with a good finance guy to put the brake on their enthusiasm and excesses. Otherwise, one day they'll just slam into the wall. As they say: there are no skid marks in start-ups.

Some Oman-based business people believe that IT is a commodity - necessary for competitiveness but insufficient for advantage. What do you think about this?
Adopting IT is very much a part of the entrepreneurial process. In fact, recent research indicates that IT is more than a commodity, it’s a strategy and one that Oman-based companies need to capitalize on in order to survive.

Look at large multinationals like Citigroup and Procter & Gamble - all early IT adopters – they dominate their markets because of superior IT and a superior knowledge of how it impacts every segment of their business. It doesn't matter whether you’re in healthcare, manufacturing, banking, logistics or selling toothpaste in a local supermarket understanding how to use IT to design, organize and implement your business is key to survival.

Sticking with the IT theme, it’s probably safe to say that the very thought of the Internet and e-business strikes fear into the minds of many Oman-based executives. What do you make of this?
If your GM or CEO is frightened of the Internet and e-business, then your firm has got big problems. Fearing what’s quickly becoming a reality isn’t going to move your firm on and up, is it? While the Internet and its ability to transcend geographies is a huge threat to traditional, stagnant business models, it’s also one of the biggest opportunities Omani businesses have ever had. In today’s networked economy, progressive companies can take advantage of lower than ever transaction costs, global recruiting and sales, fast-track business models and an overall ability to make their businesses faster, stronger and more fluid.

What general words of business wisdom would you offer to entrepreneurs, managers and executives reading this BBIC interview?
I'd tell them…

Technology’s not a commodity - firms that treat it as such are doomed to mediocrity or worse.
Listen to young people - they represent your biggest consumer market and will increasingly become your most valuable human resource.
Look beyond your company’s walls. To succeed you need more than a solid business - you need an effective business web, so get out there and network, attend seminars, workshops and conferences.
Always make new mistakes - never old ones - and learn from them.
IT serves people and not the other way around.
Take great pleasure in what you do, or find something else to do.

Final question: You’ve got children - if one of them came home tonight and said they wanted to quit their job and start a company, what would you say?
I’d ask them three questions.

Is the product or service to be provided by the new company real? I mean, does it save time or money or increase productivity?
Is the problem they’re solving big enough to matter to a lot of people? You don't want to create the greatest gaming software never sold.
Are they starting a business or just creating a product or service that's an add-on or nice to have extension of things that are already offered by major players.

Then I'd ask how much they want to borrow from me!

Planning for Start Ups

Did you know that one half of all new businesses fail within the first 3 years of trading? But with sound planning, some business know-how and, most important of all, a great dream you can dramatically improve your chances of surviving, growing and succeeding.

Look to the long-term
The primary task in managing a business is deciding its long-term objectives. If you can imagine what you want your business to look like in 5 years time you have more chance of achieving your dreams.

Create your vision
You need to think about what products and services you will be offering and to what type of customer. Consider your future market position and competitive advantage. Do you envisage expanding and if so what turnover, outlets, staff and annual growth rate to you anticipate? Think big and dare your dreams to come true.

Plan for success
On any long journey a map is essential. So take your dream and plan the main steps you will need to take to get from where you are now to where you want to be in 5 years. Then plan this in detail for the next 12 months. Include a cash flow projection, so you can be sure you don't run out of cash along the way. Review what you have achieved every 6 months and plan the next stage of development.

Review your customer profile
Most businesses can identify future outgoings. Sales projections are more difficult. Market research helps here. Review the profile of typical customers and note any changes or gap.Look at your sales pattern. Has it changed dramatically? If so, how will you redress the balance? Are you overly dependent on any specific products or customers? Who are your most profitable customers? Do you look after them to ensure repeat business?

Identify your most profitable products/services
Do you concentrate enough on these to maximise profits? Exactly how many enquiries do you get anyway? How many of these ask for quotations? How many go on to buy? What is stopping the others from going from one stage to the next?

Think about your image
How can you improve the image people have of your business? Why do clients buy? Why don't they? How important is price or quality when closing a sale?

Consider the competition
How do you compare with your competitors? Can you learn from them? Why do people buy from them, not you?

Managing price and margins
Pricing is a compromise between cost, quality, demand and competition. But when setting a price, remember to cover everything. A Rial free delivery service as a sales initiative still costs money to provide. Margins are very important. Often it is better to sell less at a higher margin.

Managing discounts
Give discounts by all means but consider their real impact on profits. If you buy something for RO70 and sell it for RO100, you make RO30. If you offer a 10% discount, you give away one-third of your profit. So you have to sell 50% more to finish where you started.

Special promotional discounts
Quantity discounts soon become part of your customer's perception of your price structure. Special promotional discounts are better. Ideally set a time limit on them. This allows you to measure their real impact.

Manage cash flow
Your precious working capital should be funding your growth, not your customers'! Remember that customers cost you money until their invoice is settled. It is considered professional, not pushy, to ask customers to agree to your payment terms when taking an order. Get the invoice out the same day as delivery, clearly marking when payment is due. Give customers a credit limit, both in time and money. If they reach it, don't take new orders until the invoices are settled. Consider factoring your invoices to generate extra working capital.Give your bank confidence

Your bank is there to help. To do this, they must have confidence in you. So even if you are not borrowing money, keep them informed. This is where your business plan comes into its own. It shows them the route map to your goal and they can use it to benchmark the stages in your journey. If you consistently reach the targets you set yourself, you will find it that much easier to raise finance when you need to fund growth in the future. Give your bank regular updates and provide accounts. Annual accounts show how you have managed the business historically. Regular management accounts will show where your business is today.

BBIC Interview with Alan Rooke

Would you mind giving us an overview of OmanLine?
OmanLine is A BPO organisation based in KOM. We offer four products/services to clients within Oman and the region. The first is an outsource Contact Centre services; the second is a medical transcription services; the third is the training of Omani nationals in certain BPO disciplines and finally we offer Business Consultancy Services to medium and large organisations which either wish to outsource Contact Centre services or which wish to create and/or improve a captive Contact Centre.

Why have you become involved in the TKM – Ernst & Young Big Business Idea Competition?
To be totally honest – because I was asked if I would be interested and, upon consideration, realised that I am very interested and am very keen to be part of this process.

How important are start ups to Oman’s economy?
Start ups are vital to any economy but even more so for Oman. There has been a tendency in the GCC region to stick with what is safe i.e. multi disciplined family run trading companies, construction companies, retail etc. Oman needs to have a fuller more rounded economy of which start ups are a vital component.

What personal experience do you have of the start-up culture?
I have been involved in two start up ventures – one is a major success and the other failed due to the inexperience of those involved and their inability to adhere to their original plan and strategies.

What characteristics do you need to be a successful entrepreneur?
Excellent business sense, single mindedness and dedication.

Which international entrepreneur has inspired you and why?
Richard Branson. If you read his book “Losing my Virginity” you cannot fail to be impressed by his vision, his irrepressible spirit and his ability to surmount massive obstacles.

What are the key ingredients for a successful start-up?
The most obvious is a workable proposition or idea. Once you have that it all comes down to hard work, making sure you have done all the necessary homework. You need to have done exhaustive research on the markets, the demand, the pricing, the competition, your positioning and all the other forces that either Michael Porter or Tom Peters can explain better than I can.

How could the region’s banking community improve the services they provide to start-ups?
My experience of regional banks is that they don’t support SME or start ups. Therefore, just having a program in place that caters directly to such operations would be a major step in the right direction.

What path do you suggest for would-be Omani entrepreneurs?
I think the BBIC has to be a very good starting point.

What are the drawbacks to being an entrepreneur?
No personal life, no personal time and lots stress.

What do you think the dotcom has done for enterprise and innovation?
Depending on what you mean by “the dotcom” my response would vary. If you mean the dotcom revolution of the 1980s and 90s I think it showed us all what is possible. It also showed us how fragile companies can be when there is no proper product or service and no proper business plan. In other words it showed us how gullible people can be.

How do you recognize the next big thing?
Again to be honest I can’t define how – I just go with a gut feeling. Some things you instinctively know will not work – no matter how good the idea or the plan, others shouldn’t but do.