It's our first Christmas without snow! Frankly, I don't miss it. Palm trees wrapped in Christmas lights work just fine for me.
Lindsey's mother arrived last Sunday and the two have been shopping ever since. They've shopped to the North, shopped to the South, Shopped to the East, and shopped to the west, looking for the clothes they like best! I have enjoyed the silence by reading a few books and actually playing my X-box for the first time since we arrived.
Thanks to Lindsey's mother we actually have quite a few presents under our tree. Without her, it was going to be a very thrifty Christmas since we are burning mass amounts of cash as part of this Southern California lifestyle.
Tonight will be a quiet evening and tomorrow we are preparing a nice turkey dinner. My family will be having their traditional Christmas Eve family fun night were they play games such as Trivia Pursuit and the like. It will be different to miss that, but I guess the sun and nice weather will have to comfort me.
Merry Christmas to all our friends and family from Lindsey and me!
Sunday, December 24, 2006
Tuesday, December 19, 2006
What am I reading over Christmas break?
There is a lot of free time over the Christmas break with the quarter system. Preparing for this, I pro-actively ordered two MBA related books before the end of the class. I just finished reading The Innovator's Dilemma by Clayton Christensen. The book addresses how even well-managed companies can not seize opportunities presented by disruptive technology.
Disruptive technology is improvements to current technology that are not sufficient for the current market, but could create a new (although less profitable) market. Established companies often ignore disruptive technology because their customers do not want it, the new markets are too small, and the margins are smaller than they currently experience. The problem is if the disruptive technology's capabilities improve at a greater rate than the demand of the established customers, at some point the disruptive technology will be adopted by those customers and the established firm will lose market share.
An example is Flash drives. When invented, the capacity of flash drives could not service the laptop industry, but they were ideal for iPods. As flash technology improves, it may develop the size and cost capabilities demanded by the laptop industry. Then, the flash drives will overtake the current 2.5" drives because flash is much more stable. Disruptive technology is not limited to hi-tech - discount retailing was a disruptive technology for the department stores. When first introduced, department stores wanted nothing to do with the low margins of discount retailing. The problem is that as the ability of the discount retailer to offer better discounts and move into higher quality goods, they are now supplanting the department stores from their traditional market as we can now go to Walmart to get a good blender.
This book is a classic and I highly recommend it to anyone interested in business. While there are the occasional detailed analysis, the book is written is a very easy-to-read style.
Disruptive technology is improvements to current technology that are not sufficient for the current market, but could create a new (although less profitable) market. Established companies often ignore disruptive technology because their customers do not want it, the new markets are too small, and the margins are smaller than they currently experience. The problem is if the disruptive technology's capabilities improve at a greater rate than the demand of the established customers, at some point the disruptive technology will be adopted by those customers and the established firm will lose market share.
An example is Flash drives. When invented, the capacity of flash drives could not service the laptop industry, but they were ideal for iPods. As flash technology improves, it may develop the size and cost capabilities demanded by the laptop industry. Then, the flash drives will overtake the current 2.5" drives because flash is much more stable. Disruptive technology is not limited to hi-tech - discount retailing was a disruptive technology for the department stores. When first introduced, department stores wanted nothing to do with the low margins of discount retailing. The problem is that as the ability of the discount retailer to offer better discounts and move into higher quality goods, they are now supplanting the department stores from their traditional market as we can now go to Walmart to get a good blender.
This book is a classic and I highly recommend it to anyone interested in business. While there are the occasional detailed analysis, the book is written is a very easy-to-read style.
Saturday, December 16, 2006
More Southern California Observations
We are now approaching the end of four full months of living in Orange County and I figure it is time for some more observations about So.Cal. life.
1) Driving the So.Cal highways is an intense experience. Whenever I hit an on-ramp to one of the freeways, I prepare for battle. The on-ramps are shorter than normal, so you need to come up to full speed very quickly. Top it off, California has two accepted 'Hi-speed' lanes the far left and the far right which means are you are try to accelerate into the right lane there is almost always some BMW flying up the lane at 90 mph. The best way to relate So.Cal. drivers to Canadians is this: picture a Montreal driver with slightly less insanity and a great deal more self-centered.
2) I still can't get over the prevalence of Valet parking in the OC. I am certain that there is a McDonald's somewhere in the OC with valet parking.
3) I am already starting to feel that 10 Celcius is cold. That didn't take long.
4) How can everyone in the OC drive a high-end vehicle. I am certain there are some BMW drivers who live in a card board box, but at least they have the car.
5) So.Cal. people get right into Christmas too! There are lights on the palm trees and the Santa Claus parade consists of lighted yachts.
6) While there seems to be a large selection of stores to shop, it is funny that they have a smaller selection of items than what we are used to in Canada. For example, Kleenex, yogurt, margarine, toilet paper are items that we get large selections of product names and quantity packaging. Here, most stores have a very limited selection of items. Target carries two brands of Kleenex (one name brand and the other private label) and only sell singles or three packs. No massive packs of 12 boxes.
1) Driving the So.Cal highways is an intense experience. Whenever I hit an on-ramp to one of the freeways, I prepare for battle. The on-ramps are shorter than normal, so you need to come up to full speed very quickly. Top it off, California has two accepted 'Hi-speed' lanes the far left and the far right which means are you are try to accelerate into the right lane there is almost always some BMW flying up the lane at 90 mph. The best way to relate So.Cal. drivers to Canadians is this: picture a Montreal driver with slightly less insanity and a great deal more self-centered.
2) I still can't get over the prevalence of Valet parking in the OC. I am certain that there is a McDonald's somewhere in the OC with valet parking.
3) I am already starting to feel that 10 Celcius is cold. That didn't take long.
4) How can everyone in the OC drive a high-end vehicle. I am certain there are some BMW drivers who live in a card board box, but at least they have the car.
5) So.Cal. people get right into Christmas too! There are lights on the palm trees and the Santa Claus parade consists of lighted yachts.
6) While there seems to be a large selection of stores to shop, it is funny that they have a smaller selection of items than what we are used to in Canada. For example, Kleenex, yogurt, margarine, toilet paper are items that we get large selections of product names and quantity packaging. Here, most stores have a very limited selection of items. Target carries two brands of Kleenex (one name brand and the other private label) and only sell singles or three packs. No massive packs of 12 boxes.
Saturday, December 09, 2006
OC Christmas Party
On Friday, Lindsey threw a small Christmas party for our friends. Lindsey spent alot of time cooking up a plethora of dishes. People started showing up around 7pm and the last people left after 5 am. I was pretty spent and slept until 3pm the next day. At my age, a night like that makes the next day (and sometimes the day after) a complete write-off.
It is really great that we have met some really wonderful people in the area. These people have embraced us and we wanted to show our appreciation. We also reached out to a few other people who we knew were around after exams. Rudy, his wife Colleen, and their 4 month old child, Alex, came out. Alex could only party until around 8:30pm, so he and Colleen left early. We also invited Faris out. Faris's wife was back home and he was left here all alone. It was great to get him out. This was their first real exposure of some of the poker "animals" and they held up alright, but we will expect more of them their next time out (including Alex).
The evening started out relaxed with a lot of conversation and eating. Next poker was rolled out and the real partying began decimating our liquor cabinet. After the first group left, some die-hards remained to play a third game. Then, Christine, a Poli-Sci Phd candidate, wandered into our apartment (we leave our door open to keep the apartment cool). She certainly livened up the room as we tried to get her to acknowledge her hidden attraction to our friend Jeff. I think we spent the next hour trying to convince her, through a series of strategic poker hands, to take Jeff out on a date. As you can see from the picture we had some minor success (go Jeff!).
I think any party that goes on to past 5am is a success. Lindsey deserves the bulk of the credit for pushing for it and doing all the work. A note to my other fellow students: we decided against a mass invitation because our apartment could not handle a mass amount of people. Just with the people that showed up 3 wine glasses were broken and two speakers were knocked over (one on poor Tammy's head [seen on right with Lindsey] as she was passed out on our couch - she didn't even budge). We always try to bring new people over to our place, just in controlled amounts (and this strategy gives Lindsey and I a better chance to get to know them). Anyways, you can see the rest of the pics here.
Tech Coast Angels Screening Event
This past Wednesday, myself and two other members of the VCIC team were generously invited to watch a Tech Coast Angels (TCA) screening event. At the event, 4 young companies present before some of the members making the case about why they should receive angel investment funding.The event is a great opportunity to see how experienced investors grill entrepreneurs. For obvious reasons, I won't go into any detail about the presenting companies, but the four were from very diverse backgrounds. It was interesting to see the presentations from the investors perspective; learning what works and what doesn't.
After watching the event I have a few preliminary tips for entrepreneurs seeking investment. First, answer each question as directly as possible. There seems to be two reasons entrepreneurs do not answer the question they are asked: 1) they want to dance around the issue; and 2) they misunderstand the question. In the first case, the entrepreneur is not fooling anyone. These investors have "been there -done that" and, even if he should fool them, there will be due diligence later on that will catch up with him. IMO, the second case may be worse because if the investor asks a question and the entrepreneur answer addresses something else, that is bad. If the investor cuts him off and brings him back to the initial question and the entrepreneur still answers something else, it can be an indicator that the entrepreneur can't focus on the issue at hand. How can an investor be confident that when a issue arises in the company that the entrepreneur will cut to the heart of the matter and address it if he can't answer a direct question?
Second, have a plan and understand your weaknesses. The worse thing an entrepreneur can do is to fluff up the weak areas. The investors will see them and if he continues to assert it will not be a problem, you will lose all credibility. There is no shame to say that you need help in an area and make that part of your plan for use of the investment funding.
Finally, really think if you need angel funding. While we all want to believe our business is design for hyper growth and greatness, some businesses are not meant for the angel/VC route. Once you go this route, an angel or VC will demand a hockey stick-like growth curve and an exit in a very short time frame. An entrepreneur must understand if the market of his business can accommodate that growth or that exit time-frame. Some markets are designed for slower growth. There is nothing wrong with that. In fact, it will lend itself to growing itself through revenues and thus avoiding the need to dilute equity to the outside investors. The main point is that if the market will not deliver the growth rate or exit time-frame, the entrepreneur will soon find himself with some upset partners and he could find himself removed from the company.
Wednesday, December 06, 2006
Exams Are Done!
Yesterday, I finished my last exam and my project management group did its final presentation. I am officially done for the quarter. The exams were challenging, but I find that they really give you a lot of time to complete them. For example my accounting and stats exams were 2 1/2 and 3 hours respectively and IMO a fair time would have been 1 1/2 and 2 hours. Someone made a fair point that the additional time may be granted given the large proportion of international students and other students who do not have a numbers background. I am probably too much of a hard ass.
Kudos need to be doled out to my study group who made it easy to complete our assignments on time with meetings scheduled well in advance and professional discussions that always moved us forward. We seem to work well together. While we aren't the best of friends and hang out on a personal level, we do come together to get the task completed. We are still improving as a group and I am pretty sure we have not yet reached our potential. More Kudos need to go out to my project management team. I was the only 1st year in a class full of 2nd years and they welcomed me into their group. While the project wasn't the most memorable, we were able to punch it out and I expect we will get a good mark (An "A" maybe...).
I am now faced with over a month until next quarter begins. While I would like to reach out and start making some company contacts at my target companies, I fear that the Christmas season may make this difficult. I do remember one entrepreneur who told me he was very successful making sales contacts during Christmas because the workers would always be in the office, but they tended to be bored and were more willing to talk during an unsolicited phone call. I will let you know if he was right.
Kudos need to be doled out to my study group who made it easy to complete our assignments on time with meetings scheduled well in advance and professional discussions that always moved us forward. We seem to work well together. While we aren't the best of friends and hang out on a personal level, we do come together to get the task completed. We are still improving as a group and I am pretty sure we have not yet reached our potential. More Kudos need to go out to my project management team. I was the only 1st year in a class full of 2nd years and they welcomed me into their group. While the project wasn't the most memorable, we were able to punch it out and I expect we will get a good mark (An "A" maybe...).
I am now faced with over a month until next quarter begins. While I would like to reach out and start making some company contacts at my target companies, I fear that the Christmas season may make this difficult. I do remember one entrepreneur who told me he was very successful making sales contacts during Christmas because the workers would always be in the office, but they tended to be bored and were more willing to talk during an unsolicited phone call. I will let you know if he was right.
Sunday, December 03, 2006
First Quarter Evaluation
It is hard to believe we are at the end of the first quarter. I thought I would give my assessment about the quality of classes and student life here at Merage. I am doing this before finals, so that I am not influenced by my results.
Classes
I have been very impressed by the classes and by the professors. The professors enjoy sharing their topics with students and make great efforts to communicate their subjects in a simple manner. While all teachers have been very good, I want to highlight our accounting professor, Charles Shi. Professor Shi has done a phenomenal job communicating the sometimes tricky concepts of financial accounting in an easy-to-understand manner. In my opinion, it is even more impressive when you take into account that english is not his first language. While the communication is great, it is Professor Shi's dedication to refining his methods of explaining difficult concepts. While many teachers just show up and read from a text book (especially for first year classes), Professor Shi demonstrates a great desire to modify his teaching methods to best communicate his subject to his students. It is this effort for which I applaud him.
Student Social Life
Every Thursday there is a two hour social where the Student Association provides some free drinks and snacks. It is a great way to end a week of classes and hang out with your students. I think at each social I am able to connect with at least one student that I had not met before. Thursday night is always pub night; it is usually good for at least 20 students to show up and have a good time. Recently, one of our students has pushed for an additional Tuesday pub night that has mixed success depending on the students workload. The point is that there is always something to do. The drawback about the UCI area is that you must drive wherever you go (cab is only an option for the obnoxiously rich). But once you accept that you must drive, there are a number of fun bars to visit.
The people are great. I must state that if you are moving into the area, you must make assertive efforts to meet new people and continue to socialize with them. Otherwise, as many are from the L.A.-OC area, it can be difficult to break into their everyday lives. I have made a very conscious effort to socialize, such as the regular poker game, and it has paid off in spades. Lindsey and I are developing a wonderful group of friends.
Extra-Curricular Activities
If you find yourself with nothing to do at business school, you need to seriously evaluate yourself. Too many activities is the common theme of business school and time management will help reap the rewards. The activities are run by committed students, staff and faculty and an argument can be made that each would enrich the traditional MBA student. Merage is similar to most schools with its wealth of E-C options.
Orange County
Three words from a transplanted Canadian: "Paridise on Earth". The scenery and weather of Orange County is wonderful. It is December and I am still wearing a light shirt and sandals. The waterfront areas are scenic and beautiful. The beaches are gorgeous. Sure as you move inland, Orange county gets very generic and "suburb-y", but who says you need to live there? I think if I am fortunate enough at the end of my program to have a number of job offers, the one that allows me a quick commute from a waterfront area would be received preferentially. [Quick Edit: Today is December 3rd and it is 83 F or 28 C - How are our Canadian Friends?]
Final Thoughts
So far Merage has exceeded my expectations. The area has provided an almost too comfortable lifestyle that makes you never want to leave. Finally, there are always something to do if you are willing to drive.
Classes
I have been very impressed by the classes and by the professors. The professors enjoy sharing their topics with students and make great efforts to communicate their subjects in a simple manner. While all teachers have been very good, I want to highlight our accounting professor, Charles Shi. Professor Shi has done a phenomenal job communicating the sometimes tricky concepts of financial accounting in an easy-to-understand manner. In my opinion, it is even more impressive when you take into account that english is not his first language. While the communication is great, it is Professor Shi's dedication to refining his methods of explaining difficult concepts. While many teachers just show up and read from a text book (especially for first year classes), Professor Shi demonstrates a great desire to modify his teaching methods to best communicate his subject to his students. It is this effort for which I applaud him.
Student Social Life
Every Thursday there is a two hour social where the Student Association provides some free drinks and snacks. It is a great way to end a week of classes and hang out with your students. I think at each social I am able to connect with at least one student that I had not met before. Thursday night is always pub night; it is usually good for at least 20 students to show up and have a good time. Recently, one of our students has pushed for an additional Tuesday pub night that has mixed success depending on the students workload. The point is that there is always something to do. The drawback about the UCI area is that you must drive wherever you go (cab is only an option for the obnoxiously rich). But once you accept that you must drive, there are a number of fun bars to visit.
The people are great. I must state that if you are moving into the area, you must make assertive efforts to meet new people and continue to socialize with them. Otherwise, as many are from the L.A.-OC area, it can be difficult to break into their everyday lives. I have made a very conscious effort to socialize, such as the regular poker game, and it has paid off in spades. Lindsey and I are developing a wonderful group of friends.
Extra-Curricular Activities
If you find yourself with nothing to do at business school, you need to seriously evaluate yourself. Too many activities is the common theme of business school and time management will help reap the rewards. The activities are run by committed students, staff and faculty and an argument can be made that each would enrich the traditional MBA student. Merage is similar to most schools with its wealth of E-C options.
Orange County
Three words from a transplanted Canadian: "Paridise on Earth". The scenery and weather of Orange County is wonderful. It is December and I am still wearing a light shirt and sandals. The waterfront areas are scenic and beautiful. The beaches are gorgeous. Sure as you move inland, Orange county gets very generic and "suburb-y", but who says you need to live there? I think if I am fortunate enough at the end of my program to have a number of job offers, the one that allows me a quick commute from a waterfront area would be received preferentially. [Quick Edit: Today is December 3rd and it is 83 F or 28 C - How are our Canadian Friends?]
Final Thoughts
So far Merage has exceeded my expectations. The area has provided an almost too comfortable lifestyle that makes you never want to leave. Finally, there are always something to do if you are willing to drive.
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