Thanks everyone who attended the PMI Montgomery County, Maryland Chapter dinner meeting. I really enjoyed our discussion. Download: http://bit.ly/pmimcho Slideshare: http://bit.ly/pmimcss Contact me if you need assistance implementing an inclusive economic development process. Let me know how I can help you create a thriving business ecosystem in your community. Regards, Hector Del Castillo, CPM, CPMM Product Innovation Consultant Bold PM Connect: http://linkd.in/hdelcastillo

1. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Hector Del Castillo
linkd.in/hdelcastillo
This presentation may contain copyright material owned by other authors. I have made an attempt to make
proper attributions. If you feel that I have failed to do so, I would greatly appreciate it if you contact me
directly so I can attempt to correct the matter.

2. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Thanks everyone that attended this discussion.
It was an honor to serve as guest speaker.
If you like this content, be sure to like it in
Slideshare and share it with others.
Interested in bringing this topic to your
community?
Contact me and let me show you how I can help
you.

3. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Special Thanks

4. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Follow: @hmdelcastillo @PMInstitute
Use: #BizEcosystem
Tweet!

5. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Tweet The Following
Excited to attend @PMInstitute
@MontgomeryCoMD meeting to discuss
benefits of a #BizEcosystem
http://bit.ly/pmimc506

6. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Key Takeaways
• Benefits of creating a business ecosystem
• Keys to creating an effective business
ecosystem

7. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
What We Will Discuss
• Current Situation
• Why We Need To Transform Our Business
Ecosystem
• Keys To A Thriving Business Ecosystem
• Key Takeaways
• Q&A

8. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
CURRENT SITUATION

9. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
US 2015 Economy Forecast
• [1]Ranked 6th in the world based on GDP
• [1]Ranked 16th in the world based on Social
Progress Index
• [2]28 million “small businesses,” defined as
firms with fewer than 500 employees
• [3]As of March 2015, unemployment rate was
unchanged at 5.5%; fewest new jobs in 15
months
Source: 1. “America’s Failing Report Card for Social Progress,” Michael E. Porter, Boston Globe, http://hbs.me/1I0gAnR
2. “4 Types of Small Businesses,” Harvard Business Review, April 2015, http://s.hbr.org/1bZGZbL
3. “US Jobs Growth Slumps,” MarketWatch, April 2015, http://on.mktw.net/1zCb4Za

10. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Few High Growth SBs
Source; 4 Types of Small Businesses, Harvard Business Review, April 2015, http://s.hbr.org/1bZGZbL

11. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
MD 2015 Economy Forecast
• As of Sept 2014, MD has 2.61 million jobs; about
same number as before great recession in 2007
(Bureau of Labor Statistics)
• Most of the positions created post great
recession are in low-paying functions
• Number of part-time jobs remains several
percentage points higher than historic averages
• Predicted annual job growth rate of 0.5% through
2016
Source: “Gloomy 2015 Forecast for Maryland,” Baltimore Sun, Nov 17, 2014

12. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Key Industries
• Aerospace & Defense
• Energy & Sustainability
• Life Sciences
• IT & Cybersecurity
• Manufacturing
Source: Choose Maryland Website

13. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
County Industry Sectors
Source: Montgomery County Economic Development Website

14. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
County Job Growth Trends
Source: Montgomery County Economic Development Website, EMSI, 2013.4—Industry Overview for Complete Jobs
Maryland Department of Labor, Licensing and Regulation. Monthly Labor Review, October 2014

15. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
County Job Trends
Jobs in 2014
511,201
0% above
national
average
% Change,
2009-2014
1.2%
The nation:
4.9%
Average
Earnings/Job in
2014
$76,698
The nation:
$58,057
Source: Montgomery County Economic Development Website, EMSI, 2013.4—Industry Overview for Complete Jobs
Maryland Department of Labor, Licensing and Regulation. Monthly Labor Review, October 2014

16. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
County Business Trends
• Home to over 33,000 businesses ranging from large
publicly-held corporations to startups
• Leading industry sectors include federal contractors,
professional services, life sciences, information
technology, cybersecurity, and healthcare
• Large presence of hospitality companies, retail, financial
services, agriculture/horticulture businesses and
construction/real estate corporations
• Over 118 companies with 100+ employees are
headquartered in Montgomery County
Source: Montgomery County Economic Development Website, April 2015

17. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
VC Dollars by State
Source: Venture Capital Dollars by State, 2009-2014 (http://ssti.org)

18. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Current Situation
S W
TO
Our Weaknesses
•Stagnant job growth
•Too dependent on federal
government (8 out of top 10
employers)
•Defficient business
ecosystem
Our Opportunities
•Expected growth in several
tech sectors in US
•Diverse funding options
accessible
Our Strengths
•Most populous county in MD
•MHI: $98,221
•29.2% of residents over 25
years of age hold post-
graduate degrees
•Vibrant entrepreneurial stack
Our Threats
•Tysons business growth
•Disruption from ExOs

19. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Market Problem & Proposed Solution
Market Problem
• Stagnant job growth
• Increase in lower paying
jobs since 2007
• MD is still adjusting to ramp
down in government
spending
• Disconnected resources for
small businesses
Proposed Solution
• Create an ecosystem for
small businesses and startups
to connect them to key
growth sectors
• Establish programs to
connect key collaborators
with entrepreneurs and small
business owners to focus on
growth sectors

20. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Why We Need To Transform
Our Business Ecosystem

21. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Outcomes
GXS
Type Private
Industry B2B e-Commerce, Data integration, Cloud
Services Brokerage
Founded 2001
Headquarters Gaithersburg, Maryland, U.S.
Products Managed services, professional services, B2B
integration
Revenue $480 million (2011)
Number of employees Approximately 3,000
Source: Wikipedia

22. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Outcomes
MICROS Systems, Inc.
Type Public
Traded as NASDAQ: MCRS
Industry Hospitality Support, Computer hardware
Founded 1977, incorporated 1978
Headquarters Columbia, Maryland, USA
Key people Peter Altabef, President & CEO
Products See Product listing below
Revenue $1,007.9 M USD (FY11; 10.2% increase from FY10)
Number of employees 4,953 (2011)
Website www.micros.com
Source: Wikipedia

23. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Outcomes
Source: Wikipedia
Type Subsidiary
Industry Network security; intrusion detection, intrusion
prevention system and anti-malware
Founded 2001
Founder Martin Roesch
Headquarters Columbia, Maryland
Key people John Becker (CEO), Martin Roesch (Founder and CTO)
Products Sourcefire FirePOWER network security appliances
Revenue $223.1M (FY12)
Number of employees 560 (3Q12)
Website http://www.sourcefire.com/

24. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Benefits
• Supports launch of new companies1
• Fosters business synergy2
• Enables business scalability3
• Creates jobs in your community4
• Boosts economic growth5

25. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Business Ecosystem
A network of organizations including
suppliers, producers, distributors,
customers, competitors, government
agencies involved in the delivery of a
specific good and/or service through both
competition and collaboration.
Source: “Predators and Prey: A New Ecology of Competition” James F. Moore, Harvard Business Review, May-June 1993

26. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Key Elements
Source: Feld, Brad (2012-09-06). Startup Communities: Building an Entrepreneurial Ecosystem in Your City Wiley.

27. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Evolutionary Stages
Source: “Predators and Prey: A New Ecology of Competition” James F. Moore, Harvard Business Review, May-June 1993

28. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
It Takes a Village…
Customers
(Buyers & Users)
Producers
(Entrepreneurs)
Funders
(Advisors &
Investors)
Killer Value
Proposition
Collaborators
(Suppliers &
Distributors)

29. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Ecosystem Framework
Led by entrepreneurs
Have a long-term commitment
Inclusive of anyone who wants to participate
Engage the entire entrepreneurial stack
Source: Feld, Brad (2012-09-06). Startup Communities: Building an Entrepreneurial Ecosystem in Your City, Wiley.

30. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
KEYS TO A THRIVING BUSINESS
ECOSYSTEM

31. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
1. Must use participatory
community economic
development planning practices.

32. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
We live in a time of exponential
change.
- Peter H. Diamandis, Co-Founder and
Executive Chairman, Singularity
University
Source: Exponential Organizations, by Ismail, Salim; Malone, Michael S.; van Geest, Yuri, Oct 2014

33. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
2. Must have a long-term
commitment.

34. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Iridium Moment

35. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
3. Must be inclusive of anyone
who wants to participate.

36. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo

37. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
4. Must engage key stakeholders.

38. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Emergence of ExOs
Source: Exponential Organizations, by Ismail, Salim; Malone, Michael S.; van Geest, Yuri, Oct 2014

39. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
5. Must create a master plan.

40. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Linear vs. Exponential Growth
Source: Exponential Organizations, by Ismail, Salim; Malone, Michael S.; van Geest, Yuri, Oct 2014

41. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
6. Implement action steps and
metrics.

42. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Plummeting Costs
3D Printing
Cost: $ 40,000 (2007) to $ 100 (2014) Scale: 400x in 7 years
Industrial Robots
Cost: $ 500,000 (2008) to $ 22,000 (2013), Scale: 23x in 5 years
Drones
Cost: $ 100,000 (2007) to $ 700 (2013), Scale: 142x in 6 years
Solar Energy
Cost: $ 30 per kWh (1984) to $ 0.16 per kWh (2014), Scale: 200x in 20 years
Source: Exponential Organizations, by Ismail, Salim; Malone, Michael S.; van Geest, Yuri, Oct 2014

43. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
7. Regularly report progress.

44. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
AirBnB Market Share
Source: Exponential Organizations, by Ismail, Salim; Malone, Michael S.; van Geest, Yuri, Oct 2014

45. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
8. Take corrective action as
needed.

46. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
ExO Architecture
Source: Exponential Organizations, by Ismail, Salim; Malone, Michael S.; van Geest, Yuri, Oct 2014
External Attributes Internal Attributes

47. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
9. Improve policies and
procedures as needed.

48. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Industry Comparison

49. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Case Study
Waze
Founded 2007
Headquarters Israel
Founder(s) Ehud Shabtai
CEO Noam Bardin
Employees 80
Parent Google
Website www.waze.com
Source: Wikipedia

50. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Case Study
WhatsApp Inc.
Founded 2009
Headquarters Mountain View, CA, USA
Founder(s) Jan Koum, Brian Acton
CEO Jan Koum
Owner Facebook
Employees 55
Parent Facebook
Website www.whatsapp.com
Source: Wikipedia

51. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Case Study
General Electric
Founded 1892
Headquarters Schenectady, NY, USA
Founder(s) Thomas Edison, Charles
Coffin, Elihu Thomson,
Edwin Houston
CEO Jeffrey R. Immelt
Employees 307,000 (2014)
Website www.ge.com
Source: Wikipedia

52. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Key Takeaways
• Use participatory planning1
• Have long-term commitment2
• Inclusive of anyone3
• Engage key stakeholders4
• Create master plan5
• Include action steps and metrics6
• Regularly report progress7
• Take corrective action as needed8
• Improve policies and procedures9

53. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Hector Del Castillo
• 15+ years transforming products to wealth for technology-based
companies
• AIPMM Body of Knowledge (ProdBOK®) Contributor
• Established companies
– Jet Propulsion Laboratory, Lucent Technologies, MEI Technologies
• Small companies and startups
– Nextone Communications, Smith Micro Software
• Launched 30+ Products for global deployment
– HW/SW, Telecom, Enterprise Mobility, Information Security
Services, Professional Development
• Certified Product Manager and Certified Product Marketing
Manager
• MS EE, University of California at Santa Barbara
• MS EE & BS EE, University of Texas at El Paso
53

54. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Tweet The Following
I enjoyed today’s discussion @PMInstitute
#MoCo meeting about the benefits of a
#BizEcosystem. http://bit.ly/pmimcss

55. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Make a great first impression!
Improve your relationships!
Find your next opportunity!
BuildYour Own Personal Brand
Tuesday, June 9th
5:30 – 9:30 p.m.
TysonsVA
Earn 4 PDU’s.
Sign up by May 15th to take
advantage of early bird discount.
http://bit.ly/branddive609

56. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Turn your ideas into a great business!
Build A Winning Business Model
Thursday, June 11th
5:30 - 9:30 p.m.
Tysons,VA
Earn 4 PDU’s.
Sign up by May 15th to take
advantage of early bird discount.
http://bit.ly/bmdive611

57. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Upcoming Activities
1-on-1 Office Hours
Thursday, May 7th, LaunchWorkplaces, Gaithersburg, MD
Set up a 30-minute appointment to discuss options to overcome
your specific business challenges. Register: http://bit.ly/101oh507
Battle of the Startups: Pitch to Panel of Judges,
Investors & Entrepreneurs
Tuesday, May 12th, Mason Enterprise Center, Fairfax,VA
Join session where you can witness founders pitching their
companies to investors. RSVP: http://bit.ly/scsi512
MIT Enterprise Forum DC Mentor Program: Startup
Construction 101
Tuesday, May 19th, Refraction, Reston,VA
Connect with entrepreneurs and setup two 1-on-1 appointments
with experienced advisers. RSVP: http://bit.ly/mitef519
Follow the short links for more information.

58. © 2015 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Thank You!
Hector Del Castillo, CPM, CPMM
Product Innovation Consultant
linkd.in/hdelcastillo
@hmdelcastillo
hmdelcastillo@gmail.com
Download: http://bit.ly/pmimcho
Slides: http://bit.ly/pmimcss