ENTREPRENEURSHIP By

First Admiral Adjunct Prof

Dato’ Ir Hj Ahmad Murad B Hj Omar (Rtd)

BE (Mech) MSc EBM (Warwick)

FIEM FIMarEST MSNAME (US)

PEng CEng CMarEng ASEAN Eng

1 Entrepreneurship UTM Nov 2015

17th

Nov 2015

Languages

Key Strengths

Working experience Education

• Bahasa Malaysia • English

Office: Kuala Lumpur

Position: Executive Chairman Omahams Corp Sdn bhd/Leadership Coach

1982 - BE (Mechanical) UTM 2003 - MSc Business Engineering Management Warwick UK

Joined the Royal Malaysian Navy 1974 . Served : - 1982 Fleet Maintenance Engineer. - 1984 to 1990 Project Engineer KD

MARIKH - 1990 UK exchange engineer at Bae

Shipyard Scotland - 1991 to 1994 Marine Engineer of KD

LEKIR (Corvette) - 1995 to 1999 Fleet Operations

Command as Staff Marine Engineering Officer

- 2000 Director Engineering Ministry of Defence

- 2001 to 2004 Director General Engineering Ministry of Defence

- 2004 2007 Fleet Systems Commander (First Admiral)

- 2007 – Retired Joined MTI Sdn Bhd as CEO 2007 to 2009 Joined Genaixis Sdn Bhd as Chairman 2009 to 2010 2010 – current OMAHAMS Corp Sdn Bhd

1999 - 2000

• Development of Engineering Management Skills (Hard & Soft Skills)

• Project Management (Marine Projects) • Extensive knowledge in ship repair &

shipbuilding. • Strong relationship with international

professional body – Institute of Marine Engineering Science & Technology (IMarEST) UK (Position held: Vice President).

• Professional Engineer registered with Board of Engineers Malaysia (BEM).

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Nationality: Malaysian

First Admiral Dato’ Ir Ahmad Murad B Omar (Rtd)

Key projects

Projects managed through-out career: - 1984 KD MARIKH Offshore Patrol Vessel - 1990 (KD JEBAT) design machinery space

in Bae Shipyard Scotland. - 1994 Refit KD LEKIR - 2001 Fast troop Vessel Conversion - 2002 KD Sri INDERAPURA Refurbishment - 2004 KLD TUNAS SAMUDERA - 2007 Remanufacturing Mercedes Benz

Trucks for Malaysian Army - 2008 Restructuring of Motor Teknologi

Industri Sdn Bhd as a Remanufacturing hub for MTU engines.

- 2009 Six Sigma project for Boustead Naval Shipyard

- 2010 Committee for development of National Oceanography Blueprint with MOSTI.

- 2011 Committee for national Maritime Shipbuilding & Ship Repair Industry with MiGHT

- 2013 Process Improvement & Production Capacity Integration Project for Boustead Naval Shipyard. Entrepreneurship UTM Nov 2015

Syed Mokhtar

• Tan Sri Syed Mokhtar Shah bin Syed Nor Al-Bukhary merupakan seorang ahli perniagaan dan usahawan Melayu yang terkaya di Malaysia.

• Beliau mempunyai harta bernilai RM2.93 billion pada 2005 seterusnya menjadi orang ketujuh terkaya di Malaysia pada 2005.

• Dilahirkan di Alor Setar pada 1951.

• Mula sebagai usahawan 1970.

Entrepreneurship UTM Nov 2015 3

Tony Fernandez

• Dato' Anthony Francis Fernandes is a Malaysian entrepreneur and the founder of Tune Air Sdn. Bhd., who introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly".

• Born 1964 in Kuala Lumpur. Followed mother to TUPPERWARE parties when young.

• Turned Air Asia around

• Worth 530 million

Entrepreneurship UTM Nov 2015 4

Jack Welch

Entrepreneurship UTM Nov 2015 5

• Jack Francis Welch Jr, a chemical engineer, CEO of General Electric for two decades.

• Known for his leadership and uncaring and rigid character.

• Born Nov 1935 in Peabody Massachussets USA.

• Retired. Worth 750 Million USD (aprox 3.4 billion Ringgit Malaysia)

Entrepreneur

• More than just a business.

• A person who identifies

– opportunities and pursue it relentlessly,

– allocate resources and

– create value

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Entrepreneur

• is someone who organizes, manages, and assumes the risks of a business or enterprise. An entrepreneur is an agent of change.

Entrepreneurship UTM Nov 2015 7

“Entrepreneurship”

• is process of discovering new ways of combining

resources.

• is the process of starting a business, typically a start-up company offering an innovative product, process or service.

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IT IS ABOUT SEARCHING THE MARKET PLACE AND CONSOLIDATING RESOURCES.

organizing

opportunities assuming

risk

planning

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HABITUAL ENTREPRENEURS’ HAVE

5 CHARACTERISTICS IN MIND

They passionately look at new opportunities

They pursue opportunities with enormous discipline.

They pursue only the very best opportunities exhausting themselves and their organization by chasing every single option .

They focus on execution especially adaptive execution.

They engage the energies of everyone in the domain.

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Case Study – John Macekey Story

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1978 USA- land of meat and fast food John never had business training neither did his girlfriend (Renee) Both 25 and 21 respectively Collected 45k from close friends and relatives to start a natural food store

Named it “Safeway” First year sales was 300k but actually loss 23k. After 2 years John wanted to relocate but shareholders were against it. Moved from selling vegetarian food to meat and poultry. First natural food store – “Whole Food Markets” open in 1980. Food was from natural growers and farmers. Quality high and sales went up.

1978 USA- land of meat and fast food John never had business training neither did his girlfriend (Renee) Both 25 and 21 respectively Collected 45k from close friends and relatives to start a natural food store

Named it “Safeway” First year sales was 300k but actually loss 23k. After 2 years John wanted to relocate but shareholders were against it. Moved from selling vegetarian food to meat and poultry. First natural food store – “Whole Food Markets” open in 1980. Food was from natural growers and farmers. Quality high and sales went up.

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CASE STUDY 1 - summary

• John employed 19 workers.

• Disaster struck. 400k wiped-out.

• Within 30 days help from friends, banks and loyal customers. Came backand later 38 stores mushroom in USA.

• Since then 16 major acquisitions

• 1992 there were 12 stores and 92M$ sales. Invested in NASDAQ stock exchange.

• Acquisitions of companies that had same ethics as Whole Food Markets

• Today Whole Food Markets has 270 stores in North America, 54,000 staff the world‟s largest retailer in organic

foods.

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BUILDING A BUSINESS

• Competitive edge

• Challenging Times

• Time is of the essence

• Elements contributing successful business

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ELEMENTS CONTRIBUTING

TO SUCCESSFUL BUSINESS

• Become a leader

• Develop a business plan

• Surround yourself amongst people • Offer a product and service • Design a marketing plan • Perfect a sales process

• Create a customer experience

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FOUR FACTORS OF LEADERSHIP

Leader

Follower

Communication

Situation

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1,9

CountryClub

9,9

TeamLeader

Impoverished 1,1

Authoritarian 9,1

LEADERSHIP GRID (BLAKE & MOUTON MANAGERIAL GRID) C

o

n

c e

r

n of p

e

o

p

l

e

1 2 3 4 5 6 7 8 9 Concern of Results

9 8 7 6 5 4 3 2 1

Middle of the Road

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LEADERSHIP STYLES Autocratic leadership. Being in control commands the staff to do and how to do it. Overdoing results in staff losing creativity and respect. Used sparingly and at the right instance will bring good to the organization.

Laissez faire leadership. Lay back kind of style and allows the staff to make

decisions and run how they think best. Continue along this track may result in total loss of control and direction. Effective when managing experts to facilitate creative thinking.

Shared leadership. It’s a partnership where the leadership of individual is shared between the leader and the staff member. Aimed at delivering optimum performance in a motivated and cooperative environment.

Simon Cooper “Brilliant Leader”

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Leadership

Purpose

3 PRINCIPLES OF

LEADERSHIP

Passion

Performance

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DRUCKER’S 3 LEADERSHIP GUIDELINES

VOLUNTEER MAKE

MISTAKES & LEARN

NEVER STOP LEARNING

EXPECT SOME

FAILURE BUT KEEP AT IT

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LEADERS ARE BORN?

Competency Based Leadership Model

Level 1 No competence

Level 2 Par al competence

Level 3 Broadly competence

Level 4 Fully competence

Key decision

point

Hands-on leadership

style

Hands-off leadership style

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No one is a born leader

• Everybody starts equal

• Mary Kay Ash – built a billion dollar Kay Cosmetics Corporation with only USD5000.

• Took the first step when she was a child unknowing what leadership is about.

• She had to manage the household at three when her father was sick and her mother had to care for her father.

• Leadership started young, believe in faith, family and career.

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LEADERSHIP - Traits

Self-esteem

Values and standard setting Clear vision and mission

Make sound timely decisions

Motivation

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DEFINING VISION & MISSION

• Why do we need to develop a Vision? – A vision is essential as it refers to a picture in the future

with some implicit or explicit commentary on why people

should strive to create that future.

– In a change process a Vision serves three different purposes:

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• clarify the general direction for change. • it motivates people in the direction where the business is

heading to.

• helps to coordinate the actions of different people in a remarkably fast and efficient way.

Entrepreneurship UTM Nov 2015

DEFINING VISION • Corporate vision is a short, succinct, and inspiring statement of what the organization intends to become and to achieve at some point of time in the future often stated in competitive terms. • Vision refers to the category of intentions that are broad, all-inclusive and forward-thinking. • It is the image that the business must have of its goals before it sets out to reach them. It describes aspirations for the future, without specifying the means that will be used to achieve those desired ends.

…….Leading Change by John P Kotter, Library of Congress Publication, 1996, p 67

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DEFINING MISSION

Mission statement;

• A mission statement is an organization’s vision translated into written form. It makes concrete the leader’s view of the direction and purpose of the organization. The reason for its existence.

• A mission statement should be a short and concise statement of goals and priorities. • Ideally mission statement should refer to your customer and the difference that your product or service is going to make in their lives.

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SURROUND YOURSELF

AMONG GREAT PEOPLE

• The greatest untapped natural resource and the most

expensive in any organization is its people. • Are your people working well together • Great people are effective people • Attributes to look for in effective people;

•

•

•

•

•

Smart Savvy Hardworking Ambitious Nice in a constructive way adding value

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OFFER A PRODUCT OR

SERVICE

• Customer response

• Quality (durable and reliable)

• Reputation will make or break you

• Is price the criterion always?

• Offer “solutions‟ not product

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DESIGN A MARKETING PLAN

Is market big enough?

To pursue?

Market concentrated enough

Is there market?

Who is competitor?

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IS THERE MARKET

IS MARKET BIG ENOUGH

MARKET CONCENTRATED ENOUGH

WHO IS THE COMPETITOR

FOCUS ON MARKETING

PRINCIPLES

differentiation

concentration segmentation

specialization

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PERFECT A SALES PROCESS

Customer delight

Returning customer

Must generate return (income)

profitability

Customer interface

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CUSTOMER response

reliability

Responsible

CREATE A CUSTOMER

EXPERIENCE Selection

Specialized service

Quality

Delivery

Employee satisfaction

Commitment by employees

32 Entrepreneurship UTM Nov 2015

Hewlett Packard Story

• William Hewlett & David Packard –started from a garage.

• Both engineers. Designed urinal.

• Then produced audio oscillator (1939)

• 1st year sale US5,639, profit US1,563.

• David then did accounting & business law.

• From garage move to a building. FIRE.

• 1996 HP went into computer business. First computer created.

• 1998 first desk top scientific calculator. (HP9100A)

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HP CONTINUED

• Where is HP today?

• 60 years of innovation and a series of

disappointment.

• In 2007 HP was the first IT company in history to

post revenues in excess of USD100Bn .

• Largest technological company.

• Where did it all started?

• Two engineers in a GARAGE.

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Engineers Contribution to Society and Ethical Practice

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Engineers’ Responsibility

• To the mankind

• To profession , and

• To environment

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• Contribute to building a sustainable society, present and future

• Apply professional and responsible judgment and take a leadership role

• Do more than just comply with legislation and code

• Use resources efficiently effectively and

• Seek multiple views to solve sustainability challenges

• Manage risk to minimize adverse impact to people or the environment

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This (6) guidance describes the role of professional engineers in sustainability.

Ref: Engineering Council UK (www.engc.org.uk)

• Professional engineers have a significant role to play in sustainability.

• Work to enhance welfare, health and safety of all.

• With minimal of resources and paying regards to environment and sustainability of resources.

• Engineers are providers of options and solutions to maximize social value and minimize environmental impact.

• A pure environmental approach is insufficient.

• Look at poverty alleviation, social justice and local as well as global connections.

• Leadership and influencing role of engineers should be priority.

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The role of professional engineers in sustainability

• The goal of sustainable development is to enable all people throughout the world to satisfy their basic needs and enjoy a better quality life without compromising future generations.

• The following principles have been agreed in the UK;

– Living within environmental goals

– Ensuring a strong , healthy and just society

– Promoting good governance

– Achieving sustainable economy

– Using sound science responsibly

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Sustainable development

• Engineers have a responsibility to maximize the value of their activity towards building a sustainable world. – Recognize through their activity may be local and immediate but the

impacts of their work may be global and long-lasting.

– Understand other relevant social and cultural structures outside own community practice.

– Understand important potential role of engineers in the sustainable development of communities.

– Recognize impacts of engineering projects on communities, global and local and consider views of community.

– Understand important role of engineers.

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Contribute to build a sustainable society , present and future

• Engineering is a profession with strong ethical dimension. In making sound judgment engineers should:

– Look at broad picture.

– Ensure knowledge n sustainable development is current.

– Be prepared to influence the decision-maker of a project.

– Identify all issues and options to the decision-maker such that the decisions are sound.

– Identify options and take note of global, economic, social and environmental outcome.

– Endure solutions and options offered will contribute to sustainability.

– Be aware that there are inherent conflicting and un-measurable aspects of sustainability.

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Apply professional and responsible judgment and take a leadership role

• In seeking sustainable solutions compliance to codes and legislation alone is insufficient and engineers should:

– Strive to go beyond minimum where possible anticipating future legislation.

– By their example help others to improve.

– Drive future legislation.

– Alert relevant authorities if there are deficiencies in legislation and if sustainable outcomes can be endangered by regulation change.

– Use technical expertise to influence development of new legislation and codes.

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Do more than just comply to legislation and codes

• Engineers have a stewardship role with planetary resources and a responsibility to society to create more useful products with lowest possible use of raw materials , water and energy.

– Understand there are environmental limits and finite resources.

– Reduce resource demands.

– Reduce waste production.

– Use systems and products that reduce embedded carbon , energy and water use, waste and pollution.

– Adopt strategies for re-use, recycling, decommissioning and disposal of materials.

– Minimize any adverse impacts on sustainability at design stage.

– Work to repair any damage.

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Use resources efficiently and effectively

• The increasing complexity of sustainability challenges means engineers working alone can no longer address all issues:-

– Engage with stakeholders and all professionals at every stage of a project. Including non-specialists.

– Avoid working in isolation.

– Utilize cross discipline knowledge and diverse skills.

– Promote important leadership role of the engineer in finding solutions to sustainability challenges for benefit of society.

– Seek a balanced approach.

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Seek multiple views to solve sustainability challenges

• Engineers are routinely involved in planning and managing projects , where they should:

– Harness skills to minimize damage to people or environment from engineering process and products.

– Undertake comprehensive risk assessment before project launch.

– Ensure risk management include potential environment , economic and social impacts beyond he economic life of the project.

– Recognize the long term risk impact.

– Give sustainability the benefit of any doubt , adopt a precautionary approach where scientific knowledge is not conclusive.

– Investigate monitoring systems so that any environmental or social impacts are identified early.

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Manage risk to minimize adverse impact to people or the environment

Conclusion

Challenges for engineers in contributing towards sustainability is plenty Political might and drive Integration between various

technologies Leadership The ever changing needs and

requirements of society

Conclusion (continued)

Engineers contribution to society can be effective if:

Integration between science and technology coupled with creativity and innovation augmented by planning and design excellence in meeting society demands.

Conclusion (continued)

Some examples of Engineer’s contribution to society, the profession and environment are:- Advancement in manufacturing towards improved end user

satisfaction and material ad cost optimization.

Solving existing problems and useful to society

Energy enhancements contributing to society comfort improvements

Averting natural disasters and containing damange and risks.

Conducting research and development towards improving planet earth environmental sustainability and negative impacts.

Improving transportation modes for ease and time optimization for mankind.

BOOKS RECOMMENDED FOR

FURTHER READING

Now Build A Great Business by Mark thomson/Brian Tracy,

American management Association 2011.

Brilliant Leader by Simon Cooper, Prentice Hall , 2008. Entrepreneurship, by Peggy A Lambing & Charles R Kuehl,

3rd Ed, Prentice Hall 2003.

How They Started in Tough Times, by David Lester & Beth

Bishop, Advantage Quest Publications, 2010.

Entrepreneurship 101, Michael E Gordon PhD, John Wiley &

Sons, 2007.

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END

50 Entrepreneurship UTM Nov 2015