- The net present value of the business's projected cash flows over 5 years is RM230,000. To generate a 24% return, the purchase price today should be RM230,000. - Discounting the annual cash flows back using a 24% discount rate, the net present value is RM230,000. This indicates the maximum purchase price to achieve the targeted 24% return.

1. IT 01203Technopreneurshipyuszren@gmail.com

2. Technology Description (format)-1 weekFocus on your core technologyWhat makes your product or services work.Key components neededspecialized knowledge (experience and skills involved and regulations that may govern the use of the technology to deliver the product/service)R&D plan in the near future/trend (how, how much?)

3. Current trends of IT in 2009Malaysian RMK-9 (refer on my take of What’s Hot 2009)1.Information Security2.E-Commerce3.E-Learning4. Development of Application & Content5.Open Source

4. De-mystifying tools/technology/software you are usingTrue that some are reliable/superior than othersWhat matters is the real execution of the taskBasically – if it works for you than use it. Ruby on Rails

5. Software architecture

6. Tire swing analogy on application development

8. Application Architectureis commonly used for the internal structure of an application, for its software modularization.Applications Architecture is the science and art of ensuring the suite of applications being used by an organization to create the composite application is scalable, reliable, available and manageable.

9. One not only needs to understand and manage the dynamics of the functionalities the composite application is implementing but also help formulate the deployment strategy and keep an eye out for technological risks that could jeopardize the growth and/or operations of the organization.

11. Front-end- the interface, the all things are nice and beautifulBack-end-database, application, the ugly side, complex

12. Technology Valuation AnalysisWhat will be the value of your technopreneurship. The fruits of your labor are for :consumption of the society at largewill need to be committed to 3rd parties in some form or other usually throughsome kind of technology licensing arrangements viapartnerships,teaming arrangements or outright sales and purchase.

13. Types of Licensed Rights in TechnologyBusiness Transactions – outright sales and assignmentsProduct Licensing - duplication the making of some device, system or service that has already been completed and proven by the seller. Technology Rights -is used to designate transactions for pre-commercial designs and data

14. Sellers and Buyers in Technology Licensing Transactions – TRADEThe license is the contract between the Seller and Buyer – this conveys technology rights from the seller to the buyer 4 Distinct AspectsTR – Technology RightsR – Risk involved in the transactionA – Art of DealMakingDE – Deal Economics

15. What Accompanies The DealSeparate purchase agreementsEmployee agreementsServices/consulting agreementSupply agreement -Non-disclosure agreementEquity Participation – could have incorporation and shareholder issues

16. Technology Rights come in 3 forms of IP(i)Patents (ii)Trade Secrets (iii) CopyrightsMajor Areas of Uncertainty: Assumption of IP protection Strength and breadth is uncertain Interpretation of claim languageValidity of patentDifferent countries interpretationHow secret is trade secret Risk of disclosure precludes protection IP protection is necessary but insufficient condition for value

17. Why is Technology Licensing ImportantWhat is R & D money buying, how do you justify the investment ? How about return to shareholders?Substantial portions of R&D has to be used thru partnership, teaming, merger, acquisitions and other relationshipsInvolves technology being licensed, transferred, committed to 3rd party Product of R&D ==== Patent data in US in 2001 350K patents submitted, 170K granted

18. Technology Licensing Issues - 1Basic Principle in Technology Valuation - Forecast the future value of operating profits and cashflow.When there is a history of sales , costs, and profitability the future becomes more predictable.Is the past a harbinger of the futureforecast the future value of operating profits/cashflowsdue diligence – confirm historic data , test hypothesisAbsence of data prevents the rigid mindset that the future can be determined by the past

19. Technology Licensing Issues - 2your track record is in front of youforecast with no datain a sense is easier as start from scratch no baggage from the pastprevents rigid mindset, paralyzing inertiawireless, biotech and ecommerce come with no track recordpossible opportunities for failure/great success & progress

20. The Greatest Tech Story – The Internet Revolution“ Larry Roberts – Internet PioneerFamiliarity and Repetition creates assumptions about what is and is not possibleAssumptions from History Automatically Do Not Become Facts ( .. they become superstition)

21. Six Situations of Technology LicensingEnforcement Licensing Opportunity LicensingOpportunistic LicensingDivestiture LicensingPartnership LicensingStartup Licensing

22. Pricing & ValuationValuation is the direct output of valuation tools & methodsPricing is the internal & external communication of perceived valuevaluation is an opinion , pricing is an offerpricing leads to negotiation, agreement and commitmentseller can establish lower price for quicker dealno time – fire salelot of time, due diligence, marketing efforttechnology ages like apple not fine wineplaying hard to get is a risky strategypricing – is a strategic issuevaluation – determines assets intrinsic valueThe Price – Arthur Miller play - The Price is nothing but a Viewpoint

25. Factors that affect final valuationAvoiding Startup Costs

26. Can pay more than what valuation indicates