Status Report
Innovation Synergy Centre in
Jan 30 04
Why is the ISCM working- Community participation.
The ISCM is
starting to develop some of its significant potential. As a core operation, with limited staff and
resources, the ISCM will have limited reach and capability. By providing
leadership and a physical presence for the various special interest groups
within the business community, the potential to develop as a “
Many of the initiatives that are being led and encouraged from the ISCM base will bear the name of other organizations such as the YTA and AOMM. This is a unique capability, as it allows us to go forward on a number of issues, in some cases avoiding political stalemate with others who see some organizations as threats, but which can be seen as a non-threatening relationship, depending on where the initiative originates.
In addition, at small expense of leadership, we are being able to attract significant volunteer leadership by aligning initiatives with the appropriate people, at the same time forwarding benefits to both the general business community in the GTA, as well as those of the clients of the ISCM and its related partner and cooperating organizations.
This sense of “Community Ownership” is necessary to attain the potential of the ISCM.
Incorporation
At the last Board meeting the Objects of incorporation were
agreed upon. They were provided to John
Wilkinson, the ISCM legal rep, who worked with
Insurance
A preliminary application was submitted to our agent in December, when copies of the incorporation documents were available. The agent has submitted it to three potential insurers and we are awaiting the follow up quotes.
Financial
Grants
We originally forecast receipt of a $75,000 grant from MEDT to contribute 75% of our lease fees. This has been received and has been attributed accordingly.
We also forecast receipt of some MEDT grants for the Enterprise Centre which were received.
The $100,000 provided by
A Contribution agreement to provide services to clients has been provided by NRC/IRAP. We expect to consume the total amount by the end of March 04. (Termination date of agreement)
Original financial projections
Our original projections were based on a 12 month envelope of funding, May/03 to April 30/04. Due to delays in launching the business mentor portion of the initiative , and the shorter year than planned we have a carry forward funds from the capital side of our budget to enable us to catch up to our implementation objectives. These funds are reflected in our 2004 budget forecasts.
Based on some changes in personnel positions, and the nature of our NRC contract, we have been able to shift some 2003 forecast salary costs to that contract. In addition, the availability to Mr. Doug McIntyre to act partially as an “in House” mentor concentrating on financial issues has extended our reach. The current forecast indicates that we will be in a position to invoice for the entire contract amount.
Financial Summary
Original Forecast (12 Months)
|
|
Original Forecast (!2 Months) |
Available Budget |
|
|
Salary ISCM |
238,763 |
65,000 |
|
|
|
|
60,000 |
|
|
Salary |
65,000 |
|
|
|
Operating |
242,206 |
40,000 |
|
|
Capital |
|
257,000 |
|
|
From |
545,763 |
422,000 |
|
|
Grants (ISCM) |
|
75,000 |
|
|
Grants (ES) |
|
55,000 |
|
|
|
545,969 |
552,000 |
|
|
Cost/Month |
45,500 |
|
|
|
Start up capital |
80,000 |
60,000 20,000 |
|
|
|
|
|
|
|
|
625,969 |
632,000 |
|
Final (Unofficial 2003 Year End)
Summary of Costs Incurred (8 Months)
Please Note: (When comparing the two tables)
1) Our original budgets were predicated on a 12 month operating period.
2) Due to some start up delays, some initiatives and staffing have been delayed.
3) The Net numbers below include all grants, contributions, sponsorships and receipts from NRC (In excess of offsetting costs) being accounted for as offsets to operating coasts.)
4)
Operationally, reserve funds have been set aside in order that we may carry out
previously planned activities now that we have an active client base. We also have some potential liabilities to
mentors advisors to be incurred from the reserved NRC funds.
|
Item |
Costs Incurred |
Offset Costs |
Reserve Funds |
|
|
85,927 |
|
|
|
Operating |
100,000 |
|
|
|
Capital |
220,149 |
|
|
|
|
|
|
|
|
Total Costs |
406,076 |
|
|
|
Cost/Month (include Start- up costs) |
50,760 |
|
|
|
RBC |
|
|
20,000 |
|
MEDT |
|
75,000 |
|
|
NRC,IRAP (See Note 1) |
|
76,427 |
35,962 85,927 |
|
|
|
151,400 |
141,889 |
|
Net Cost of Operation to Markham (Before Reserves accounted ) |
254,649 |
|
|
1) The NRC “reserve” allocations represent invoice amounts that are outstanding, including a request to recover the salary cost of the President and the part of the contract cost of the Manager of Client relations.
2)
Note-
1) An active client activity plan is in place, and some of the reserve funds received from IRAP will be required to offset the costs incurred in providing client services during the next several months.
2) We are not scheduled to receive any funds from MEDT to offset our lease costs next fiscal year, so future lease costs will not be offset.
3) The ability to recover the Salary of the President next fiscal March 04 to April 05 is not yet confirmed.
Client Activities
Having had only a very few client activities in November, our list of clients is expanding rapidly. The client list is broken into a number of classifications:
Complete 13
Active 16
Discovery (determining client’s needs) 15
Leads 13
(Client is not yet qualified,
but their name has been submitted.)
___
57
As expected, projects vary in area of need, and the depth of assistance required.
List of Mentors
This continues to grow. We have made no special efforts to find the mentors on the list, and some are better qualified than others. All have been interviewed by Rod Graham, who maintains a file and resume of capability of each person on the list.
Generally the mentors are individuals, but in some cases, the mentor may represent a firm such as a lawyer’s office who will act as mentors.
Our current list contains the names of 60 mentors/advisors.
Administration
Issues
Process
Significant care is being taken to ensure that all of our processes are capable of withstanding an audit, and are designed to protect the organization from any lawsuits as a result of an error or omission by one of the consultants.
Documentation used:
Client Intake Form (Establish basic client information)
Confidentiality and Non-Disclosure Agreement
Letter of Engagement Offer
Mentor-Letter of Engagement Agreement
Mentor- Final Client Report
Client Evaluation Report Sample Invoice
Web Site
A preliminary meeting was held with Linda Harlock in December. However due to priorities around the Markham web site, and other training issues, a planned follow up technical meeting has been occurred for Jan 19. They are planning to prepare some design options. In the meantime, Robert Steele, the YTA/AOMM has mounted a temporary site.
Robert Steele, the YTA/AOMM consultant who works from the ISCM, is acting as our technical representative. Robert also designs web sites as a part time situation, and has a working knowledge of our needs. It is expected that Robert will be able to keep the ISCM web site current.
Newsletters
In preparation for first issue, several planning discussions have been held.
Peter Ott has been contracted to prepare the first three case studies for publications, with the expectation that we will regularly have new studies prepared.
In addition, one of our several of our mentors has expressed an interest in preparing a newsletter for us. This offer has not yet been developed.
Once we completed the case studies, and gathered enough content, a letter will be released.
In addition, Steve Chait has made available a part of the “Markham Good News” to carry news of ISCM activities.
Note: it is expected that we will be targeting two different client bases.
We have accumulated a list of 2000 names from a number of sources. We are developing an initiative to invite everyone on that list to “self qualify” if they are interested in participating in ISCM and ISCM partner related activities. We have the capacity to do so built into out CRM client monitoring system.
Client Monitoring System
We have a”No Cost” arrangement to use a new product called Smart Simple as a client management tool.
We are able to track all most of our activities, client lists, mentor lists etc.
In order to rapidly develop a client base, a program known as Reach Out has been initiated. Designed as a short term initiative, a limited number of consultants have been requested to contact potential clients, some from their client list, and some from lists we are developing. The objective of this program is to try and develop about 32-40 “in depth’ client interactions over the next few months.
As part of this initiative, we are holding many “discovery” meetings. It has been noticed that as part of some discovery meetings, we are giving references and handling many small but important issues for the companies being interviewed. Although a “significant” interaction will not result from many discovery meetings, the nature of the discovery meetings provide significant assistance in nearly all cases.
This program is beginning to provide a flow of qualified clients. In addition, other consultants are seeing the value of the additional resources available to assist their clients, Available on a non-competitive basis, clients are being linked to assistance that the consultants would not otherwise be able to make available. (Note- we do not support existing work which clients are currently involved.)
A number of referrals are being made from IRAP/NRC officers. Many of these are not coming from out “target” market” as they tend to be smaller firms, but are from the IRAP client base. Due to the relationship with IRAP we deal with these companies, and have had occasion to provide impact on a number of occasions. We are planning a program to make the IRAP network more aware of the benefits offered to their more mature clients.
We have had several opportunities to present the services of the ISCM with IRAP officers.
Other sources of referrals are the MEDT field office, as well as some of the other government officers with who we are working.
Venture Capital Initiative
This is a joint YTA-ISCM led initiative.
In June of
2003, a presentation at an YTA luncheon indicated a void in the GTA of a focus
for International Venture capitalist and other investors to come to as a focus
or general contact point. ISCM/YTA initiated a
working group in the fall to examine this issue to see if we could provide leadership
to fill this void. We met with
organizations such as TVG/GTMA and ITAC, and none had a mandate to work in this
area. In examining the issue further, we
found it would be necessary to form alliances in
This group meets regularly. In December and as part of an interest from MEDT/ICT we organized a workshop drawing together a number of key Venture Capitalist, Angel Investors, TVG, MEDT reps etc.
The follow up to this meeting will be the establishment of a working group to informally discuss initiatives to support SME funding, with observers from MEDT/ICT.
The next key initiative will be Feb 17, at which time many of the groups representing investors will be invited by the ISCM to get together to discuss how we can cooperate in this area.
Another
initiative that may go forward is to invite investors and potential investors
in the Markham/north of
In addition,
included in this working group is the GTMA who have an objective of attracting
investment into the GTA.
Partners and
Participating Organizations.
On Jan 12 I
visited
NRC/IRAP – NRC continues to be very supportive of the ISCM. They have provided a flexible contribution agreement to provide services to the business community, which also supports some cluster building activities. It is fully expected that this contribution agreement will be provided in the next fiscal year. (April/04 to March/05) This contribution agreement is the core funding to support many of our client outreach activities, including the ability to subsidize the initial part of a mentor/advisor interaction.
Example-
During a discovery meeting, a client was identified as needing assistance from
a senior, experienced software marketing individual who could guide them in
increasing sales in the
Leverage from NRC support
From our
NRC also has a number of its local IRAP officers work from the ISCM on an occasional basis. NRC defrays the cost of the space reserved as part of their funding agreement.
Royal Bank- Royal has offered to have one of their senior “Knowledge Based” bankers available at the ISCM for half a day a week to work with clients on financing issues. As our client base expands, we see this as a significant need.
MEDT
We are working with MEDT on several fronts.
The field staff of MEDT was invited to hold their two day meeting in the Lucent Business Centre in December. At that time an ISCM presentation was made on how we could assist their clients. Since that time we have received two direct client leads.
ISCM was also supported by the policy office of MEDT/ICT in preparing our fall submission to their Prosperity Initiative Program (This was a submission for an additional $200,000 of funding to assist clients to change their loose business plans into tight Investment plans). MEDT /ICT officers made a visit in June to ISCM to outline the program and encourage us to participate. During the process they were supportive. (Due to the change in Gov’t there are no specifics on the status of this initiative.)
On an ongoing basis, I am in regular contact with the ICT policy office. In cooperation with YTA and MEDT/ICT and Revenue, we held a workshop of R&D tax credits to which approximately 20 local companies attended, with approximately 6 from the Ontario Government.
At the early request from the policy group, we mounted a “Venture Capital/Angel Investment” workshop in early December. This was a non-official opportunity for both investors and MEDT to openly discuss trends and problems.
As a follow up, we will organize a “working group” inside of the YTA VC initiative to hold informal discussions on how to assist funding issues for small companies.
They have also
invited us to consider participating in several other issues in the north of
EDC- The Export Development Corporation now has an EDC field Officer available to meet with clients one day each week.
Industry
A trade
Officer is also available to meet with client one day a week. As part of our activities with IC, GTMA and
Ontario Exports, we have hosted a couple of incoming missions. Unlike most missions, we expend a significant
effort in identifying local companies to meet with the incoming mission
participants, with the view to build local export, representation
opportunities, as well as seeking to identify early, those firms that might be
interested in establishing a base in
Discussions
are underway with Industry
YTA/AOMM
We have developed very close ties with both York Technology Association and the Association of Ontario Medical Device Manufacturers Association. They have an individual who spends approximately half of his time working on initiatives for both organizations. He also, voluntarily provides the ISCM with some technical support as well as web site advice. Mr. Doug McIntyre, current Chair of the YTA, also works from the ISCM, dividing his time on YTA activities and providing mentoring advice to ISCM clients.
GTMA- Greater
We have identified several areas of cooperation.
Venture Capital Initiative
Incoming Missions
Cluster Studies
An interesting discussion was held with Don Eastwood, Director of Economic Strategy of the York Region. We discussed the validity of the ISCM model.
We discussed two areas of cooperation:
1) Assistance in organizing a meeting to discuss what regional related business SME’s across the region have.
2) The possibility of ISCM having access to the new regional data base.