Ockham Technology PAPER Essay Example

keep it small but faced difficulties having two members from one venture firm. Failure to bring together the right people could potentially jeopardize the growth and stability of the company.

The second issue involves the lack of industry experience within Chasm's founding team. Despite recognizing this need, James Traditional struggled to hire individuals with sufficient expertise in order to compensate for this lack of industry knowledge.

Overall, while Champ Technologies has achieved initial success, they must address these challenges in order to maintain control over critical functions and ensure ongoing growth and success. (p.12) (p.4)Champ Technologies collaborated with Ron Hardin from Flex Solutions during the development of their product. Despite a poorly prepared software prototype presentation with IBM, they were fortunate to secure the $KICK IBM deal. However, their Powering slides in Exhibit 5 showed little thought given to their presentations. It is important to note that collaborating with a big company like IBM carries high risks. If Champ fails to meet Vim's expectations, rumors will spread and customers may lose confidence, potentially preventing future deals. Champ faced a dilemma regarding outsourcing their system development work or operating in-house. The team was unsatisfied with the quality and progress of their work with Flex Solutions, leading them to reconsider their equity deal and pay cash instead. Additionally, Traditional lacked operational skills for a software startup if they decided to hire their own developers. Recognizing the tight deadline and the risk of losing their biggest customer, Champ realized they needed to act quickly. The action plan includes improving communication and establishing boundaries to reduce employee conflicts.Conflicts can occur in the workplace for various reasons, such as differences in values

and goals between co-founders. Jim Traditional and Mike Meistersinger should establish boundaries and promote open communication to ensure smoother business operations. The "divide and conquer" strategy mentioned earlier is an effective approach that involves segregating duties to prevent one person from having complete control over a process, thus addressing control issues within the company.

To manage limited resources effectively, Champ Technologies should consider securing financing from Nor-Mosey, which is a well-known venture capital firm in Atlanta. This firm has two general partners with direct experience in sales force management and information technology, making them a suitable choice for Champ. While Traditional may have to give up some control by having two board members from one venture firm, having experienced individuals on the board can provide valuable resources and expertise.

On the other hand, seeking advice from inexperienced board member Bobby Crews would be less beneficial for Chasm's operations and growth. Additionally, it would be advantageous for Champ Technologies to outsource their product development to NIT, an Indian company.NIT meets the outsourcing criteria of meeting aggressive deadlines, reusing 80% of the product for future customers, meeting specifications and quality standards, forging a productive relationship, and keeping costs low. They specialize in software development, making them the most suitable company. Champ has equal price sensitivity between NIT and Thoughtfully due to equal fixed costs. However, Nit's formalized development process and strong credentials may raise questions due to lack of information in the case. The case does not mention Nit's physical location, and their fixed costs may be unrealistically optimistic. If Champ decides to use Hotshot Coders, further research is necessary. Champ should regularly evaluate employee performance and operational processes

as they enter the growth phase. Additional skills required for success include hiring an accounting firm for financial management or an advertising agency for product marketing. Champ Technologies can also employ various pricing structures to expand its product line. Overall, executives should effectively manage their company to create value for investors and grow their businesses.The importance of certain founders' skills may increase as the strategy and business model shift, leading to role changes. As founders gain familiarity with startup challenges and evaluate their motivations and abilities in relation to the needs of the company, their commitment may change. Over time, founders also develop a deeper understanding of each other's abilities and level of commitment. However, founders often overestimate their early-stage value, which can cause problems if a co-founder's contributions decline later on. Personal life circumstances can also impact a founder's commitment and contributions. In the case of Champ Technologies, all founders were aware that Ken, who brought the idea, was expecting a child. However, Ken himself was unsure how this would affect his decision to leave his full-time job and focus on building Champ. Unexpected health issues can also disrupt co-founders' dynamics. For instance, when Microsoft was still private, founder Paul Allen was diagnosed with Hodgkin lymphoma and had to step away from the company for three critical years before it went public, leaving Bill Gates as the sole active founder during that period. These circumstances have the potential to disrupt even an equitable distribution of ownership.When Robin Chase and her partner Ante founded Zipper, a car-sharing startup, they decided to split equity equally with a simple handshake agreement. This allowed them to avoid any

tension regarding the equity split and focus on developing the startup. Despite hearing about other teams facing difficulties with equity negotiations, Robin was relieved that she and Ante were able to avoid such problems. However, as time went on, it became clear that their level of dedication differed. While Robin fully dedicated herself to the startup and made significant contributions to its growth, Ante remained at her full-time job and only became more involved by summer without joining full-time. This bothered Robin because despite her efforts, Ante still held an equal percentage of ownership. Reflecting on the initial handshake agreement, Robin considered it a foolish decision as different skills, achievements, and milestones could hold varying values in the future. The resulting distress from this decision lasted for a year and a half. Eventually, Ante decided to leave the company but continued as a shareholder. These issues can have significant costs both emotionally for individuals like Robin who experienced angst over this situation and financially in terms of tangible expenses.At governors.com, founders Kale and Tom had a supporter named Chichi who invested $19,000 and worked after hours for five months. However, instead of joining governors full-time, Chichi dropped out. Prior to closing their first round of financing, potential funder Mayflies required Kale and Tom to buy out Chichi and regain his equity.