The requirement of this essay is in the files below which named “CSE170_Winter 2020_Term Paper A Instructions (1) “. At the same time, all the powerpoints the essay may use are below. Thank you so much.

CSE170
Winter 2020
02/06/2020

CSE 170 Term Paper A: Instructions for creating “Term Paper, Part A”
(due in canvas on 02/13/2020)

First, select one topic from the first four (including today’s) presentations in Winter
2020:
​1. Water Resource Management and Information Technology

Professor Brent Haddad, 01/16/20.

2. What Drives Venture Capital
Paul Vroomen, VC Partner & UCSC PhD
Alumnus, 01/23/20

3. A Customer-Centric approach to Product Development
Tanguy Leborgne, Vice-President, Plantronics
01/30/20

4. Technology Management: A CIO Perspective
Tom Gill, former CIO, Plantronics
02/06/20

For the term-paper topic you have selected write a ​1200-1500 word draft (5-7 double-spaced
pages) ​using the process and structure described below:

Outline: ​Before writing the paper ​create an outline ​for the paper based on the structure for the
term-paper described in the next four bullets. ​You must attach your outline at the end of your
paper. Carefully ​read the next four bullets before creating your outline.

Divide ​your paper into sections and subsections, each with an ​appropriate heading​. Each
paragraph should only contain one idea, which is clearly stated at the beginning of the paragraph,
and then developed in the paragraph. The next three bullets describe how the sections are
organized.

Set-up of a theme for your paper (1-2 paragraphs)​: Develop a creative, thought- provoking
theme ​or ​hypothesis ​for your paper. This theme should be within the context of the (clearly
stated) key product/technology, and/or business/management, and/or commercialization issues
addressed in the speaker’s presentation.

Develop the theme (8-10 paragraphs). ​Develop your theme or hypothesis with suitable
arguments, supported by ​evidence ​and ​examples​. Be sure that the technology issues (e.g., a
company’s technology and product line) and business issues (e.g., marketing and sales strategy)
that you discuss are clearly related to the specific context of the speaker’s presentation (e.g., how
distribution channels are used to market products, etc.). Provide several concrete examples (e.g.,
examples of successful research projects at Microsoft, Seagate’s markets and products, etc.).

End the theme (1-2 paragraphs)​: Re-examine your theme or hypothesis. Does it still stand; does
it need to be refined, or changed? What conclusions can you draw from this seminar presentation
relative to the development, management, and commercialization of technologies and products?
What are the technology, business, and management challenges and opportunities going forward?

Use the following ​sources of information ​in writing your term paper: your own class notes the
speaker presentations on the CSE170 class website: ​https://canvas.ucsc.edu/courses/30042
internet and library research on relevant companies and topics. Hand in the completed term-paper,
Part A, in canvas on Thursday, 02/13/20.

https://canvas.ucsc.edu/courses/30042

CSE170

Winter 2020

A Customer-Centric Approach to Product Development
Tanguy Leborgne Vice-President and General Manager,

Consumer Plantronics, Santa Cruz

Abstract​:

From the day two airline pilots working in a garage set out to invent a new kind of
aviation headset until today, Plantronics has considered breakthroughs in audio
technology as a daily business. The Company pioneered the lightweight headset,
the mobile headset, noise- cancelling technology and the personal speakerphone,
always driven by a single obsession: remove the barriers to simply smarter
communications.

Plantronics is a publicly held company (NYSE: PLT) headquartered in Santa Cruz,
California with offices in 20 countries, including major facilities in China, England,
Mexico, and the Netherlands. Products are sold and supported through a
worldwide network of Plantronics partners, including resellers, systems integrators,
retailers and mobile carriers.

This talk will cover an overview of the customer-centric approach taken at Plantronics
to develop new products. In particular it will focus on how to ensure your products and
solutions address real problems that need to be solved and that customers are willing
to pay for!

About the speaker:

Tanguy Leborgne is a business and product executive who’s passionate about
solving the big problems consumers are faced within the audio, video, photo and
music spaces.

Over the years, Tanguy has built deep industry and market knowledge in hardware
and software solutions applied to consumers. Tanguy loves to connect the dots and
equally enjoys being the strategic critical thinker focused on business opportunities or
the enabler of sound product definition and go-to-market execution on a global basis.

In his current role at Plantronics, Tanguy is driving the business and product strategy
for all Plantronics consumer solutions. Before joining Plantronics, Tanguy held a variety
of similar general management, product and marketing leadership roles at Avid for 7
years and Adobe for 11 years.

Next Week​:

02/06/20:​ Tom Gill, former CIO, Plantronics on “IT Management: A CIO Perspective”;

CSE 170
Winter 2020

Water Resource Management and Information Technology
Prof. Brent Haddad

Professor, Environmental Studies
University of California, Santa Cruz

Abstract​:

Water and energy are two essential natural resources. Professor Haddad studies
them both independently and in terms of how they interact with each other. He will
provide an introduction to water and energy management and finance at both the
national and local levels. He will also discuss the many roles of information
management in the fields of energy and water.

About the speaker:

Professor Brent Haddad was the founding chair of the Technology Management
Department. He has recently returned to the Environmental Studies Department. He
studies natural resource management and holds both an MBA and a PhD. In addition to
being a professor, he has consulted for many years on energy and water issues.

Next Week​:

01/23/20: Paul Vroomen, VC Partner, on “What Drives Venture Capital?”.

CSE170,Winter ’20

01/23/20

What Drives Venture Capital?

A Perspective from Both Sides of the Table

Paul Vroomen, PhD Entrepreneur, Venture
Capitalist, UCSC Alumnus

Abstract: ​Entrepreneurs and venture capitalists can form spectacularly successful
partnerships, or they can disagree bitterly, virtually assuring failure for both. VCs are
driven by demands that, if understood by entrepreneurs, can improve the likelihood of
mutual success substantially. This presentation explores the primary factors that
influence decision making at a venture capital firm and identifies the metrics that venture
capitalists apply to select potentially interesting companies from the many hundreds that
a tier 1 venture firm reviews annually.

Additionally, a case study of a start-up company in the semiconductor industry will be
discussed using the company presentation that resulted in successfully raising an
additional $15M equity financing. The case study will enable illustration of how the
metrics applied by venture capital firms were addressed in the presentation.

Finally, the JOBS Act, which was passed by Congress in early 2012, will be reviewed in
terms of its impact on the venture capital industry.

About the Speaker: ​Paul Vroomen was educated in South Africa and the Netherlands
and started his career as a chip designer for spread spectrum radio communications
chips. After 7 years as a design engineer, he moved into marketing and product
management, ultimately becoming Vice President/General Manager of the Computer
Peripheral Business Unit at Zilog, Inc., followed by VP/GM of the Digital Entertainment
Business Unit at VLSI Technology, Inc. and then Group President/GM of the Consumer
Division of Oak Technology, Inc. All three were public companies with shares traded on
NASDAQ.

In 1999 Paul took on the role of President/CEO of his first venture funded start-up,
SandCraft, Inc. a fabless semiconductor company that he re-positioned in the network
communications market and where he raised $43M in the C round of venture funding.
After Sandcraft was acquired, Paul became President /CEO of Connex Technology, Inc.,
which he re-positioned as a supplier of HDTV image processing chips. After Connex,
Paul joined the investment team at Tallwood Venture Capital, one of the largest pure play
semiconductor Venture Capital Funds in Silicon Valley. There he led the Tallwood
investment in Sandbridge Technologies, Inc., a fabless semiconductor company in the

mobile phone market. Paul became President/CEO of Sandbridge, which was
successfully acquired in 2010.

Paul recently earned his PhD in Technology & Information Management from the School
of Engineering at UCSC. He is currently focusing on research that can be directly
applied in his next start-up.

Next Week – 01/30/20: ​Tanguy Leborgne, Vice-President, Plantronics, “A
Customer-Centric approach to Product Development”.

CSE170
Winter 2020

02/06/20

Technology Management – A CIO Perspective
Tom Gill, Former Vice-President and Chief
Information Officer Plantronics, Santa Cruz

Abstract ​: Since the day two airline pilots working in a garage set out to invent a new kind of aviation
headset until today, Plantronics has considered breakthroughs in audio technology as their daily business.
They pioneered the lightweight headset, the mobile headset, noise-canceling technology and the personal
speakerphone, always driven by a single obsession: remove the barriers to simply smarter
communications.

Plantronics is a publicly held company (NYSE: PLT) headquartered in Santa Cruz with offices around the
world including major facilities in China, England, Mexico and the Netherlands. Their products are sold
and supported through a worldwide network of Plantronics partners including resellers, system
integrators, retailers and mobile carriers.

After sixteen years as CIO, Tom too an early retirement package from Plantronics last year to pursue a
career in Real Estate so rather than talk about Plantronics, Tom will cover the topic of technology
management from a CIO’s perspective. Included in the discussion are the people, process, technology and
challenges faced by CIOs as they transform their businesses. Tom is also available to answer questions
about Plantronics, their internship program and hiring opportunities during Q&A.

About the Speaker: Formerly, as Vice President of Information Technology and CIO at Plantronics for
sixteen years, Tom had responsibility for global IT at Plantronics. Tom led an IT team focused on
partnering for innovation, top line growth and value creation. Tom has been named to the Computerworld
100 IT leaders, InformationWeek 500 and was recently a finalist for the Bay Area CIO of the Year in the
area of innovation and business transformation.

Before joining Plantronics, Tom held senior IT management positions at Bay Networks, Tandem
Computers and TRW. He has a BS in Business Information Systems from San Diego State University.
Tom currently serves on the Board of Directors for Crowd Mics, a tech startup that turns smartphones into
audience participation devices.

Technology Management- A CIO Perspective

Tom Gill

CIO Perspective – Agenda
People make it happen
Process is key
Technology enables transformation
There are challenges!
Q&A

People – IT Roles
Project Manager
Business Analyst
Business Intelligence Analyst
Data Scientist
App Developer
Dev Ops Engineer
Database Administrator (DBA)
System and Storage Administrator
Network Engineer
Information Security Analyst
Service Desk Engineer

People – IT Partnerships
With business unit and business functional leadership
With every end user
With external suppliers and customers
With strategic IT vendors

People – CIO Leadership
Chief Information Officer – typically a Vice President
CIO provides the strategy, direction and resources to IT team and business
CIO should then empower
CIO is there to help “steer” projects and personally assist when needed

Process – Consistent IT Process is Critical
Projects methodology – Globally consistent business case, phase definitions and deliverables are important to project execution
Support – Consistent support models help reduce incident and problem frequency and response time
System configuration – Common WW client system image and support process ensures employee uptime and productivity
Standards – Adoption of ITIL may help depending on maturity and size of organization

Process – IT Facilitates Business Process Transformation
Business process change is a partnership between Business Analysts and process stakeholders
Processes include quote to cash, procure to pay, hire to retire, etc.
Stakeholder roles include WW process owners, process leads and change champions
Enterprise architecture helps make most efficient use of resources
Essential to avoid “departments gone wild”
Reduces redundancy
Ensures scalability and security
Drives process and system integration including single source of truth

Process – IT Governance Focuses on Highest Return on IT Investment
Demand for new IT systems and services exceeds budget and human capital
Thousands of solutions and great ideas
Every investment needs a business case
Problem to be solved
Solution alternatives
Cost / benefit calculation – ROI
Tough prioritization decisions are made regularly
IT strategy follows business strategy!

Technology – Common Apps
Enterprise Systems
SAP
Oracle
Emerging cloud solutions
Sales, customer support and Marketing – Salesforce.com a leader
Collaboration and productivity
Microsoft Office, Sharepoint and Skype
Google Apps
Hundreds of other departmental apps

Technology – IT Infrastructure
Network components include WAN, LAN, WiFi and Internet enabled with switching, routing, firewalls and access points – Cisco is a leader
Data center solutions include compute capacity, storage, virtualization – Dell, EMC, NetApp and VMWare are leaders. New storage vendors are emerging
Cloud services are ubiquitous
Software as a Service, Platform as a Service and Infrastructure as a Service
Salesforce.com is an early entrant for SaaS – thousands have followed
Amazon, Rackspace and Google are leaders for PaaS and IaaS
Audio Visual has become a key IT service area including trade show Kisoks, conference room tech, auditorium and virtual meetings support a distributed global workforce

Technology – Devices
BYOD vs. company provided
Laptops and Macs
Smartphones keep us connected and help with balance
Tablets have unique use cases
Event and trade show kits

CIO Perspective – Challenges
Demand for services exceeds supply – governance and tough decisions are needed
Pressure to spend within budget and meet spending benchmarks
Information security and protection of intellectual property, customer and employee information
Globally consistent processes and systems
“Shadow IT” roles and activities
Hiring and retaining talented people!

What Drives Venture Capital?
A Perspective From Both Sides of the Table
Paul Vroomen
*

*

Agenda
Introduction
How Venture Capital Works
The Impact of Internal Rate of Return Expectations
Case Study: Sandbridge Technologies, Inc.
A $15M Powerpoint Presentation
The Future of Venture Capital
Big Changes Coming….
*

Thought Experiment
You are an entrepreneur….
You have worked for 10 to 12 hours per day, often 7 days a week for the past 3 years,
You have risked your entire personal savings,
You have endangered your marriage,
You see your kids mostly just before they fall asleep,
You have questioned your own sanity,
But, you finally have a working prototype….
*

The Entrepreneur’s View
What??

They want 10X return on their money?
They want 65% ownership of my company?
They want a controlling vote on the Board of Directors?
They want to be paid their money first before anyone else gets anything, even me, the founder, if we sell the company?

Vulture Capitalists!!
*

*

The Venture Capitalists View
This guy has a good idea , BUT:
He has no CEO track record and has never run a company before
His executive team has significant holes (especially in marketing)
The company’s business plan is way too optimistic, especially given that it has missed critical milestones, twice
They have one significant customer, but that customer is known for collaborating with innovative start-ups and then doing their own thing

I will ensure that our term sheet enables me to protect my capital and is structured so that I can direct the CEO to correct the issues with the company or replace him with someone that can if he does not!
*

*

The Primary Reason
The Entrepreneur, by definition, is an optimist
The Venture Capitalist, by experience, is a pessimist
The partnership of the two can work, sometimes spectacularly,
if each understands what is driving the other.
*

*

How Venture Capital Firms Work
Venture
Capital
Firm
Managed by
General Partners
Limited Partners
All Accredited
Investors
Investor 1
Investor 2
Investor n
$xM
$yM
$zM
Company 1
Company 2
Company k
Venture Fund
Committed Capital
$(x+y+…+z)
Private Equity
Portfolio
$aM
$bM
$uM
Base+(1-c).Surplus
c.Surplus
Liquidity Event
C = “Carry” = 20% – 35%
Mgt. Fee ~2%p.a.
*

*

EBO and VC Historical Performance
*
Source: US Venture Capital Index and Selected Benchmark Statistics, June 2014, Cambridge Associates, LLC
IRR: Net cash on cash returns to Limited Partners (after deduction of management fees and carry percentages)
AVERAGE IRR (1999-2009)
Electronics: -0.54%
Financial Services: 14.42%
BioTech: 16.04%
AVERAGE IRR (1999 -2009)
Information Technology: 24.23%
– Internet-Business: 23.2%
– Internet-Commerce: 37.8%

Implications of IRR Expectations
Required capital growth to achieve IRR:
To achieve 33% IRR, a $1 investment needs to grow to $7.40 in 7 years.
*
Time from investment: 5 Years 7 Years 10 Years
IRR: 25% 3.0X 4.8X 9.3X
IRR: 33% 4.2X 7.4X 17.3X
IRR: 50% 7.6X 17.1X 57.7X

*

Typical VC Fund Performance
Ten year VC fund that returned 3X net to limited partners from a portfolio of 20 companies:

Received proposals from >1,000 companies per year
Agreed to view presentations from 300+ companies per year
Performed Due Diligence on 30 companies per year
Invested in 3 – 4 companies per year (during first 5 years of fund)
10 companies were shut down within 3 years of initial investment
6 companies were acquired within 3-7 years and returned sufficient to recover capital
3 companies were acquired within 3-7 years and returned 1.5X to 5X
1 company returned >38X in 8 years (IPO – Home Run!)
*

Sandbridge Technologies, Inc.
Company/Team:
– Fabless semiconductor company based in White Plains, NY
– Founded in 2002 by 2 veteran IBM TJ Watson Research Center engineers
– Team of 55 experienced semiconductor and software engineers

Product:
– Multi-threaded, multi-CPU DSP chip for mobile phone baseband applications
– Automatically adapts to the protocol in which the phone was operating.

Customers:
– Multi-million dollar contractual partnership with one of the world’s top three cell
phone makers.

Intellectual Property:
– 25 granted patents and 20 pending or provisional patents
*

*

By late 2008, Sandbridge had consumed $53M in 3 VC funding rounds and needed a further $15M for the commercialization phase
The $15M Presentation…
*

*

Sandbridge Technologies, Inc.
But things change quickly! By late 2009:
The company’s primary customer and software partner had withdrawn from the partnership – it had quietly built its own chip in parallel with the partnership
The software team was behind schedule in delivering the broadband communications software stack; PC dongle and femtocell markets were well below forecast
The company was scrambling to identify and negotiate partnership agreements with software partners for cellular protocol software development
To generate short term revenue the company was negotiating license agreements with several interested parties.
The Board of Directors had decided that the company should focus on identifying potential M&A transactions

*

*

Sandbridge Technologies, Inc.
Conclusion
Company was sold for an aggregate of $55M in several transactions in late 2009 and early 2010.
All employees were hired by two licensees of the company’s technology
One licensee also acquired the right to deploy the original chip in electronic systems in China and is using it in “home gateway” applications
Management received a “carve out” from the proceeds of the sale
C Round Investors received a 1.6X return on their investment of $35M in 3 years, for an IRR of 16%; Venture Funds in the Electronics industry returned (4.9%) in 2010.
Everyone was happy.
*

*

Big Changes Are Coming to the Private Equity Investment World….
*

Security Token Offerings (STO) create a new asset class in private equity:
Crowd Funding (CF)
Why?
*

Crowd Funding Growing Rapidly
Source: coinschedule.com/stats
*
Crypto-token (ICO + STO) Crowd Funding
2015 2016 2017 2018 (to 9/21)
No. of ICOs/STOs 0 50 371 785
Amount Raised ($B) – 0.098 6.24 20.033

Why ECF/ICO Growth?
REACH:
Online – investors and issuers worldwide can participate
Not limited to accredited investors – access to larger amount of capital
LIQUIDITY:
ECF smart contracts/ICO tokens can be bought & sold at will (for now)
JOBS Act mandates 1 year holding period
TRANSACTION COST
Standardized terms – reduces legal expense
Smart contracts – reduces investor management expense
Transaction fees lower than traditional financing cost
TIME TO MONEY
Financing campaign can be completed in days, even hours.
*

Private Equity Model Changing
Private
Equity
Firm
Managed by
General Partners
Limited Partners
All Accredited
Investors
Investor 1
Investor 2
Investor n
$xM
$yM
$zM
Company 1
Company 2
Company k
Venture Fund
Committed Capital
$(x+y+…+z)
Private Equity
Portfolio
$aM
$bM
$uM
Base+(1-c).Surplus
c.Surplus
Liquidity Event
C = “Carry” = 20% – 35%
Mgt. Fee ~2%p.a.
*

*

Dividends
ICO/ECF
Web
Platform
Investors
Accredited and
Non Accredited
Investors
Investor
Group 1
Investor
Group 2
Investor
Group n
$xM
$yM
$zM
Issuer 1
Issuer 2
Issuer k
Online Intermediary
CF
Portfolio
$xM – TF
$yM – TF
$zM – TF
Base + Surplus
c.Surplus
Liquidity Event
c = “Intermediary Commission %”
Intelligent
Decision
Support
System
Transaction Fee
The New Private Equity Investment Model
*

The Problem
How to enable a large, diverse set of non-expert investors to identify investment opportunities that are likely to succeed, from a large, diverse set of privately held companies of different size, stage and quality?
*

A Solution
*
Create an Intelligent Decision Support System (IDSS) drawing on:
Private Equity Investment Practice
Finance Theory
Statistical Learning Algorithms & Processes
Decision Support Systems Engineering

Deploy the IDSS as a tool to support investors and issuers on a web based Crowd Funding Platform (CFP)

IDSS Overview
*
Can the enterprise yield an acceptable rate of return?
Does the enterprise have the team, market and products to credibly achieve the rate of return?
Revise/Reject
Revise/Reject
Accept
Yes
No
Yes
No
Stage 1
Evaluate
Stage 2
Verify

What is an “Acceptable Rate of Return”?
Apply:
Finance Theories
Modern portfolio theory
The theory of efficient markets
Statistics:
The central limit theorem
Historical IRR data for large datasets of: Equity Funds, VC Funds (Cambridge Associates), Angel Investments (AIPP)
To Determine:
The optimum risk-reward “frontier” for the Private Equity market
The efficient frontier
The target IRR for an efficient CF portfolio and consequently, individual CFF investments
*

Efficient Frontier: Equity Market
*
At 10% higher risk for ECF, the expected IRR target for an efficient portfolio of ECF assets is >= 28% with 99% confidence

CF Investment Risk
*
*
Angel Investments
are Risky….
1,137 AIPP exited angel investments:
IRR = -100%: 46.7%
-100% target investment IRR = 58%
Valuation: 12x rolling average of future 4 quarter cash flow
Demonstration: Stage 1

IDSS Overview
*
Can the enterprise yield an acceptable rate of return?
Does the enterprise have the team, market and products to credibly achieve the rate of return?
Revise/Reject
Revise/Reject
Accept
Yes
No
Yes
No
Stage 1
Evaluate
Stage 2
Verify

Classifier
Database
IDSS Functional overview
*
Issuer Business Plan
Calculate IRR
Industry
Database
Issuer Database:
4 +year revenue, cash flow forecast
20 attributes
Adjust Plan?
NO
NO
YES
Modified Business Plan
Classifier Attributes
Classify
Optimal Classifier
NO, Yellow
Modified Attributes
YES
Issuer
Database
YES
Industry Metrics
Adjust
Attributes?
Stage 1
Evaluate
Stage 2
Verify
Issuer
Database
Industry Database:
Public company valuation data
Industry TAM, ratios
Classifier Database:
Training and test set
Reject
Review
Accept
Feasible?
Reject
Green
Red,
Yellow
NO, Red

*

Statistical Learning Process
*

Attribute Selection
Create preliminary set based on domain knowledge (15 attributes)
Interview domain experts (3 VC General Partners, 3 CFOs (1 large, 2 small companies) and add if not identified in 1. (18 attributes)
Extract attributes from the research literature and add if not identified in 1, 2. (31 attributes)
Identify research papers from peer reviewed journals containing statistically significant correlation between attributes and success
Rank research papers by citation rate (citations/year)
Starting at highest ranked article extract attributes if not already identified in 1,2
Repeat until no new attributes are found
Analyze attributes to eliminate redundancy or correlation (21 attributes)
*

Attribute set
*

Attribute Quantification
*

Parameter

Description

Measure

Quantify

Team:

EXP

Demonstrated leadership ability in the past

Measures number of years each team member has been in same position, or had equivalent title/responsibility in prior career as in new venture

Years in same position divided by total work experience of founding team, in years

Product:

PPL

Level of product development planning detail

Measures the degree of thoroughness of the product/service development plan, specifically time granularity, staffing, critical path, dependencies and key milestones

At least weekly granularity =1; each task staffed =1; critical path identified=1; dependencies identified=1; key milestones identified=1; Score=sum of the above/5

Market:

MGR

The target market enjoys a significant growth rate

Determines whether the Compound Annual Growth Rate (CAGR) of the Market that can be served with the product(s)/service(s) that generate plan revenue (SAM), lies within predefined thresholds

If CAGR>25% score =1; if CAGR>20% score =0.8; if CAGR>15% score =0.6; if CAGR>10% score =0.4; if CAGR>5% score=0.2; else score =0

Performance
Error Rate
Number of Attributes
Sample Size
Room for performance improvement with more data
At ~ 60 instances, synthetic model error rate approaches Bayes error within 5% (current dataset has 17 balanced instances)
Learning curves for kNN algorithm
(synthetic model, uncorrelated attributes)
Accuracy (true positives plus false yellows): 64%
Vroomen Capital, Inc. Proprietary & Confidential
*
(17,20)
Vroomen Capital, Inc. Proprietary & Confidential

Key Outcomes
Accuracy (true positives plus false yellows): 64%
Accuracy will improve with a larger training set – learning curve
94.5% confidence that IDSS performs better than random selection
Stage 1: 99% confidence that IRR target for CF assets is >= 28% at 10% higher risk
Stage 2: >98% confidence kNN (k=1) performs best for current data set
*

Conclusion
The private equity industry is on the verge of facing the same disruption that the Internet has brought to the music industry, the airline industry, the hotel industry, the car rental industry,……
*

Relate to Hypothesis; describe how this helps both expert and non-expert decisions – removing emotion. Establish the need for the KE system.
*

Appendix
*

Initial Coin Offerings: Background
Issuer offers a pre-determined quantity of its own crypto-currency “tokens” (mostly on Ethereum) – these are NOT share certificates
Investors offer to buy a fixed number of tokens at a fixed price in a Dutch auction
Transaction is recorded on a blockchain (again, mostly the Ethereum blockchain) – significantly reduces transaction cost
The tokens are liquid and so can be bought and sold directly between sellers and buyers
So far ICOs not regulated by JOBS Act or SEC in the US (but see: https
://www.nytimes.com/2017/07/25/business/sec-issues-warning-on-initial-coin-
offerings.html)
ICOs experiencing rapid growth: >$1.2B raised so far in 2017 (>10X entire 2016)
*

JOBS Act, Title III: Background
*
Passed in both Houses of Congress in early 2012 with large bipartisan and private equity industry support
Signed into law by President Obama on April 5, 2012
Recorded in Federal Register on January 30, 2016
Enables privately held companies to publicly solicit up to $1M per year in equity financing by issuing securities to an unlimited number of investors.
Opens up private equity investment to non-accredited investors
Accredited investor: Net worth >$1M; Annual Income >$300K
Only 2.6% of the US population qualify as accredited investors
Caps the amounts that non-accredited investors can invest
$5,000 per year if Net Worth <$100K; Annual Income <$100K $10,000 per year if Net Worth >$100K per year; Annual Income >$100K per year
Requires ECF transactions to be conducted by a web based Intermediary that ensures transactions conform to the requirements of the Act and the SEC regulations governing such transactions.

Biography – Paul Vroomen
MSEE, MBA, PhD (Technology & Information Management, UCSC)
Chip Designer – first 7 years out of college
Business Unit VP/GM – 3 Public Companies
Zilog, Inc. – Microprocessors; VLSI Technology, Inc. – Satellite TV.; Oak Technology, Inc. – HDTV/DVD.
President/CEO – 3 Venture funded Start-ups
SandCraft, Inc. – Datacom; Connex Inc. – HDTV; Sandbridge Inc. – Mobile Phone
Executive-In-Residence
Tallwood Venture Capital, LLP
Raised $73M in Venture Capital funding
Co-Board and Board member at 7 companies
Currently working on next start-up – Fintech (ICO/Equity Crowdfunding Platform); Member of Sand Hill Angels
*

Cumulative Cash Generated/Consumed
-15
-10
-5
0
5
10
15
012345678910
Years from Initial investment
$Million
Entrepreneur’s ViewVenture Capitalist’s View

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

IRR
<= 0% 0% on Pareto (Calc)

0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
I
R
R
< = 0 % 0 % < I R R < = 2 5 % 2 5 % < I R R < = 5 0 % 5 0 % < I R R < = 7 5 % 7 5 % < I R R < = 1 0 0 % 1 0 0 % < I R R < = 1 2 5 % 1 2 5 % < I R R < = 1 5 0 % 1 7 5 % < I R R < = 2 0 0 % 2 0 0 % < I R R < = 2 2 5 % 2 2 5 % < I R R < = 2 5 0 % 2 5 0 % < I R R < = 2 7 5 % 2 7 5 % < I R R < = 3 0 0 % ( n o t e 1 ) 3 0 0 % < I R R < = 3 2 5 % 3 2 5 % < I R R < = 3 5 0 % 3 5 0 % < I R R < = 3 7 5 % 3 7 5 % < I R R < = 4 0 0 % % o f I n v e s t m e n t s Distribuon of Returns: AIPP Raw Data Distribuon Pareto (Calc) -60% -40% -20% 0% 20% 40% 60% 80% 100% 10 11 12 13 14 15 16 17 18 19 20 IR R (% ) Quarters from First Investment 10% Equity 15% Equity 20% Equity 25% Equity -60% -40% -20% 0% 20% 40% 60% 80% 100% 10 11 12 13 14 15 16 17 18 19 20 I R R ( % ) Quarters from First Investment 10% Equity 15% Equity 20% Equity 25% Equity -60% -40% -20% 0% 20% 40% 60% 80% 100% 10 11 12 13 14 15 16 17 18 19 20 IR R (% ) Quarters from First Investment Baseline 90% of Baseline QoQ Revenue Growth -60% -40% -20% 0% 20% 40% 60% 80% 100% 10 11 12 13 14 15 16 17 18 19 20 I R R ( % ) Quarters from First Investment Baseline 90% of Baseline QoQ Revenue Growth -10 -5 0 5 10 15 20 25 30 0 2 4 6 8 10 12 14 16 18 20 $M Quarters Quarterly Revenue Cumulative Investment Cumulative Cash Flow 90% Baseline Revenue -10 -5 0 5 10 15 20 25 30 0 2 4 6 8 10 12 14 16 18 20 $ M Quarters Quarterly Revenue Cumulative Investment Cumulative Cash Flow 90% Baseline Revenue

TIM

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01

January 16, 2020

Water and Energy Research

Prof. Brent M. Haddad

Environmental Studies

Office Hours: M 10:30 to noon

Natural Sciences 2, Rm 493

bhaddad@ucsc.edu

1

The Fresh Water Management Challenge

Water doesn’t arrive where, when, and in the quality and quantity in which it is needed.

The Fresh Water Management Challenge
Water doesn’t arrive where, when, and in the quality and quantity in which it is needed.
Therefore, ongoing intervention in natural systems is needed to meet society’s water needs.

The same can be said for Energy:

The same can be said for Energy:
Energy doesn’t arrive where, when, and in the quality and quantity in which it is needed.

The same can be said for Energy:
Energy doesn’t arrive where, when, and in the quality and quantity in which it is needed.
Therefore, ongoing intervention in natural systems is needed to meet society’s energy needs.

Thermoelectric
Domestic
3
7
4
3
Industrial
Livestock
1
1
Mining
Commercial
Withdrawal
(BGD)
Water Consumption (BGD)
107
Irrigation
Sources: 1USGS, Estimated Use of Water in the United States in 2000, USGS Circular 1268, March 2004
2USGS, Estimated Use of Water in the United States in 1995, USGS Circular 1200, 1998
Source: Jared Ciferno,NETL
Linking Water and Energy: Power Production

Map by Shih-Tsiang; water flowing through wastewater
treatment facilities in US, 2007.
Water Flowing Through Cities, U.S.

Pitt/Carnegie Mellon Study: water for 110 proposed new power plants
Findings
11.4 trillion gallons of municipal wastewater collected and treated annually in U.S.
On average, one fairly large POTW can completely satisfy the cooling water demand for each of 110 proposed power plants (EIA, 2007)

Inventory of available wastewater
Inventory of water needs
http://www.netl.doe.gov/technologies/coalpower/ewr/water/pp-mgmt/pubs/06550/42722FSRFG063009

Other links between water and energy…
Pumping water takes energy
Purifying water takes energy
Heating and cooling water takes energy
Manufacturing water equipment takes energy
Monitoring water systems takes energy

WATER USE
ENERGY DEMAND

Other links between water and energy…
Water cools thermal power plants
Hydropower requires flowing water
Fossil fuel extraction and refining require water
Biofuels require irrigation water

WATER DEMAND
ENERGY USE

When water and energy systems are linked, reducing use of one reduces use of the other… “2-for-1 benefits”

When water and energy systems are linked, reducing use of one reduces use of the other… “2-for-1 benefits”
Pumping less groundwater means using less energy
Demanding less electricity means withdrawing less water to cool power plants.
Investing in water efficiency devices means less energy to purify, heat, and cool water

When water and energy systems are linked, reducing use of one reduces use of the other… “2-for-1 benefits”
Data systems that can help:

When water and energy systems are linked, reducing use of one reduces use of the other… “2-for-1 benefits”
Data systems that can help:
Leak detection
Precipitation and moisture detection
Water quality monitoring
Fire risk and rapid response
Conservation monitoring (based on billing information)
Elevation mapping

(focus on water)

Introduction to Santa Cruz’s water supply

Santa Cruz Watershed

How much water is flowing in the San Lorenzo River?

Graham Hill Water
Treatment Plant

Santa Cruz water sources:
San Lorenzo River – 47%
North Coast Rivers – 32%
Beltz Wells – 5%
Loch Lomond Reservoir – 16%

City of Santa Cruz historic average daily water production:
10 million gallons per day
(7.48 gallons = 1 cubic foot)
10 mgd ~ 15.5 cfs
Current actual….6.4 mgd ~ 9.9 cfs

2/3 of Santa Cruz water goes to residential use, and
1/3 goes to commercial use.
There is almost no industrial and agricultural use.
UCSC is the city’s biggest water customer.

Question:
Does the San Lorenzo River have enough discharge to meet the city’s water demands?

City of Santa Cruz historic average daily water production:
10 million gallons per day
(7.48 gallons = 1 cubic foot)
10 mgd ~ 15.5 cfs
Current actual….6.4 mgd ~ 9.9 cfs

Quick answer:
Almost….the city historically uses 10 mgd x 47% from the river = 4.7 mgd of river water.
At low flow, the river provides ~6.4 cfs = 4.1 mgd.
4.1 mgd from the river at low flow
< 4.7 mgd needed historically. But also consider: 1. There are other demands on the river, including: other water rights holders, recreation uses that want high flows, and endangered species protection (coho salmon). 47% is the annual average…in the summer more water is taken from the river because the city is using more water overall. 10 mgd is the historical use and now Santa Cruz uses less because it is more efficient. Photo: Coastal Watershed Council Precipitation Local surface and groundwater Interbasin transfers Re-prioritizing existing uses Conservation Cutbacks Reuse (small amount!) New supply Santa Cruz uses: How do cities (in general) meet their water needs? Precipitation Local surface and groundwater Interbasin transfers Re-prioritizing existing uses Conservation Cutbacks Reuse New supply, such as ocean desalination Precipitation Local surface and groundwater Interbasin transfers Re-prioritizing existing uses Conservation Cutbacks Reuse New supply Each of these strategies requires a mix of technology, policy, economic incentives, and public acceptance. How do cities (in general) meet their water needs? Examples of technologies Pumps/piping/storage Flood protection Sensors/measurement Treatment Emergency response Modeling/scenarios Examples of policies Public Information Conservation campaigns or rules Defining water rights - how much you can use - how much you can pollute Examples of economic incentives Water Pricing – usage costs, fixed costs, and fees Financial penalties for overuse or polluting Examples of “public acceptance” The public generally believes: It’s “OK” to have severe water cutbacks in a severe drought. It’s “OK” to have water that doesn’t taste perfect. It’s “OK” to go way over budget in a water emergency like a drought to meet supply needs. Continuing Challenges for Santa Cruz: Being prepared for the next drought! Having sufficient funding for regular upkeep and emergencies Improving habitat for Coho Salmon, which could mean loss of water supply Moving wells inland from the coast to avoid saltwater intrusion. Continuing Challenges for Santa Cruz: Thanks – Questions? Prof. Brent Haddad 493 Nat Sci 2 Mondays 10:30-noon 43 Chart1 0 Sheet1 BGD Thermoelectric Withdrawal 136 Thermoelectric Consumption 4 To resize chart data range, drag lower right corner of range.

Tanguy Leborgne, VP & GM Consumer

A CUSTOMER-CENTRIC APPROACH TO PRODUCT DEVELOPMENT

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95% of products launched each year FAIL!

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… Why Do Most New Products Fail?

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Flawed
Processes…
(…and communication breakdown)

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JUST not
READY YET!

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Not Your Cup Of Tea…

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Failure To Adapt…

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No One Is Immune…

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10
Facing Market Facts and Customer Reality

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Identify and calibrate the Opportunity

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11

Know your market

Study Competition

Understand Key Trends

Know Your Capabilities

Build Utmost Intimacy With Your Target Audience

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The most painful
The most pervasive
The most urgent
The high $$ ones
Identify BIG
HAIRY PROBLEMS

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Their Desires
Their Values
Their “Social Map”
Get into their Minds…

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Research Helps Understand Your Audience Better
Close Ended
Numerical Analysis
Trends & correlations
Segment sizing
Open Ended
Help Dig Deeper
Address the “WHY’s”
Know values, environment

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Obsess over Cause-and-Effect Analysis vs. Top Requirements
The Analysis…
…Turn Facts Into Actionable Insights
?

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The Right Insights Lead To A Stronger Roadmap

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Portfolio Strategy & Product Management
Focus on identifying and calibrating problems
Engineering & Development
Focus on solving problems
Marketing & Sales
Focus on articulating and delivering the story
Know Your Respective Roles…

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18

SOUNDS
OVERWHELMING?

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OVERWHELMING??
market-mapping and weB search

can go a LONG way…

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Identify a Problem

Search

Document

MASTER P.L.A.N.S.

ILLUSTRATION

IDENTIFIED PROBLEM:
POOR PRODUCT MANAGEMENT DECISION-MAKING

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ONE BIG HAIRY PROBLEM:
POOR DECISION-MAKING BY PRODUCT MANAGERS
LEADING TO FAILED PRODUCTS

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CREATE YOUR MARKET MAP WITH THE NEW 4P!

Places
People
Products
Plan

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OVERWHELMING??
PLACES

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OVERWHELMING??
PEOPLE

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OVERWHELMING??
PRODUCTS

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OVERWHELMING??
YOUR master P.L.A.n.s.

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OVERWHELMING??
POSITION YOUR BUSINESS IDEA
Ultimate training on decision-making
for successful product management in Tech

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OVERWHELMING??
VALIDATE IT BY REACHING OUT TO PRODUCT MANAGERS!
Hi,
I’d like to pick your brain on some idea I have developed specifically targeted at product management professionals and general managers in tech. There’s nothing I’m selling at this stage, I’m more in the idea validation phase. You have great product management experience so I thought I’d reach out to you to get your take on it.
What typical issues have you been faced with when making decisions on a product idea or a concept and how to pursue it? 
What kind of processes, tools or techniques do you have for making effective decisions? Any structured decision-making framework or more ad hoc?
How satisfied are you with the outcome of your decision-making on such new product ideas and requirements?
What do you wish you would have you actually don’t have right now when it comes to making such product-related decisions?
On a higher level have you ever engaged in training courses on decision-making for your role? Is there any reason why you have not been following any formal training  on such decision-making techniques and framework?
Nice, because my idea and what I’m working on right now is actually related to a comprehensive set of training and tools on decision-making for product owners in Tech. There are many aspects ranging from opportunity cost of not investing in proper decision-making, how to handle business pressure, how to make sense of  too much information, how to avoid blind spots, how to conduct proper data analysis and risk assessment, how to spot fake information or even avoid bad consensus.
How do you feel about such training and tools? Is this something that would be relevant enough to you or your teams for you to invest time and money in?

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OVERWHELMING??
REFINE AND KEEP VALIDATING

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Problem ID

Market Map

P.L.A.N.

Idea Positioning

Validation

Refinement

Know intimately your target audience
Build products for your target audience
But remember, your market is NOT your target (market is much larger!)
In Summary…

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Forget internal “opinions”!
Focus on properly analyzed market facts
Relentlessly prioritize
NIHITO!
Recap… Outside-In!

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THANK YOU!

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