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Center for Regional Economic Issues

REI Business Plan Summary


Working Draft v.1.1
June 2005
Center for Regional Economic Issues

Vision Mission Strategies


Research.-- Create and grow a
portfolio of actionable hypotheses
about open innovation systems in
regional economies

Networks.-- Develop collaborative


Provide civic leaders
networks that accelerate regional
Global leader in with the best
economic development
helping advanced practices and tools for
regions achieve transforming advanced
Products.-- Create and market a
sustainable regional economies
portfolio of products and services
economic growth and promoting
that generate revenues from regional
sustainable growth
economic development initiatives

Education.-- Penetrate business and


public policy schools with advanced
regional economic development
curriculum and activities
Center for Regional Economic Issues

Innovative businesses
Open Source Economic
Development
Views regional economies as
networks embedded in other
networks
Brainpower Innovation
Generates strategic roadmaps to

Dynamic clusters
build “clusters”
Creative People

Purposeful
Dialogue Created returns of over $200
invested for every $1 invested in
Oklahoma City’s economic
development strategy
Quality Places Branding

REI is currently deploying the


model in Indiana.

Attractive places

Ed Morrison developed the Open Source Economic


Development model, and he distributes it under a
Creative Commons license.
Center for Regional Economic Issues

REI strategies create


synergies to generate
revenues
REI Education REI Products

Generates Generates Research.-- Leads to new networks


revenues from in revenues from and civic education opportunities
person and web- Internet-based about “what works”
based training on platforms for
building clusters clusters
Networks.-- Provide test beds for
new Internet based products and
Case Revenues

education services

REI Research REI Networks Products.-- Leads to insights into


better networks and generates
Generates Generates access to networks for research
revenues from revenues from
innovative equity-based purposes
government and alliances (e.g.,
foundation funders royalties) Education.-- Provides pathway for
translating research into policy and
creates new product ideas

Case Brand Recognition


Center for Regional Economic Issues

REI’s strategy aligns with the


Case strategy
Case Education Case Service
REI’s four strategies align and
reinforce the University’s strategy.

REI Products As REI builds its strategies, we will


REI Education
and Services measure REI’s progress along two
metrics: brand recognition and
revenues.
Case Revenues

Case Values Brand recognition will be measured


using standard public relations
metrics.

REI Research REI Networks Revenues will be measured by


strategy. Each strategy area will be
considered a profit center for REI
and the University.
Case Research Case Transformation

Case Brand Recognition


Center for Regional Economic Issues

Performance
Strategy 2005-2006 Objectives Key success factors
indicators

Research.-- Create and grow a Research statistics (e.g. number 1. Build national research Number of and quality of
portfolio of actionable of hypotheses defined and network researchers committed to
hypotheses about open tested, dollars of extramural 2. Define research agenda participating in REI research
innovation systems in regional research) network
economies

Networks.-- Develop Network statistics (e.g. number 1. Expand Universities Number of networks supported
collaborative networks that of networks, average number of Collaborative network by REI infrastructure
accelerate regional economic people per network, 2. Support REI emerging NEO
development communications volume, percent networks (i.e., health care, bio-
of networks achieving their fuels, tele-working, sustainability,
mission, etc.) creative media)
3. Define Great Lakes network
targets

Products.-- Create and market Product commercialization 1. Formalize product Growth of product customer
a portfolio of products and statistics (e.g. percent of revenue development process base, conversion rate of REI
services that generate revenues from new products, cash flow 2. Develop prototype templates customer community from free
from regional economic break-even time, number users for basic OSED toolset to paid
development initiatives added per unit time, etc.) 3. Develop IT support network
(e.g., e-commerce and web-
casting)

Education.-- Penetrate Education statistics (e.g. size of 1. Expand REI.Tuesday franchise Growth of education customer
business and public policy schools opt-in e-mail lists, number of 2. Relaunch REI Review base (opt-in e-mail lists),
with advanced regional economic students, revenue per student, 3. Test market Innovate e-zine conversion rate of REI customer
development curriculum and public relations measures on community from free to paid
4. Test market civic leadership
activities exposure) courses
Center for Regional Economic Issues

Use to develop new products


REI’s research
Use to support new clusters
Use to educate and
form public policies
strategy builds a
“think and do” tank
KEY OPERATING CAPABILITIES
Brainpower Innovation REI MUST BUILD

Purposeful Build and manage research network


Dialogue

Define research agenda


Capture Capture
Quality Places Branding
Learning Learning
Secure extramural funding

Manage research projects

Manage data

Integrate with other REI strategic


activities
Generate Hypotheses
Use to define new research agenda Publish and promote
REI National
Research Network
Research Strategy
Center for Regional Economic Issues

Key Activities

Key Steps Who When

Identify
Morrison 3Q 2005
Network

Morrison,
Define Agenda 4Q 2005
Fogarty
Center for Regional Economic Issues

REI incubates
clusters and defines
strategy maps
KEY OPERATING CAPABILITIES
REI MUST BUILD

Identify and assess cluster potential

Design trust-building exercises

Build cluster business models

Define cluster charters, rules and


alliances

Design data and communications


infrastructures

Integrate with other REI strategic


activities

Conduct cluster events


Network Strategy
Center for Regional Economic Issues

Launch
Tuesdays REI.Tuesday Webcasts
Key Activities
CSU Universities NOCHE
Agreement Collaborative expansion

Disease Management Health Network

Biofuels and Advanced Vehicles

Key Steps Who When


East Cleveland 2010
Expand Universities Morrison,
3Q 2005
Collaborative Wheeler, Minter
Telework

Support existing Initiative


On-going
New Energy Roundtable
Medvick Matrix networks coordinators

Creative Digital Media Identify Great Lakes


Morrison 1Q 2006
opportunities
Blue Ribbon
Strategy Plan

Sustainable Development: Green Cities


Blue Lake Network

2003 2004 2005 2006 2007


Center for Regional Economic Issues
REI product strategy
drives to increase
revenues with
cluster-based tools
KEY OPERATING CAPABILITIES
REI MUST BUILD

Identify and assess new products

Design products

Identify markets

Develop and execute marketing


strategies

Provide customer support

Integrate with other REI strategic


activities
Product Strategy
Center for Regional Economic Issues

Key Activities

Key Steps Who When


Build Indiana
toolkit
Define product
Kozink, Kozmon On-going
development process
Test
seminars

Identify e-commerce
Test Kozmon On-going
webcasts providers

Identify e-commerce
providers
Test market webcasts Morrison 3Q 2005
Define product
development process

2003 2004 2005 2006 2007


Center for Regional Economic Issues

REI education
strategy is designed
to build clusters and
drive innovation
REI’s Message:
Our region will be transformed by open KEY OPERATING CAPABILITIES
networks of collaboration with colleges and REI MUST BUILD
universities in the middle of these networks

Identify key messages

Define audiences of “influencers”

Develop innovative educational


materials for use in business and
public policy schools

Develop Internet-based
communities of practice

Manage university relationships


Education Strategy
Center for Regional Economic Issues

Key Activities

Key Steps Who When


Expand REI.Tuesday
franchise through Merkel On-going
Collaborative
Test
seminars
Relaunch REI Review Morrison 3Q 2005
Test ezine
Test e-zine on NEO
2Q 2005
Relaunch REI
innovation
Review

Test seminars 3Q 2005


Expand REI.Tuesday
franchise

2003 2004 2005 2006 2007


Center for Regional Economic Issues Education Strategy
Indiana
Education strategy may be reshaped by
events in Indiana and REI’s new partnership
with Purdue.

“Open Source Economic Development is


remaking Indiana’s economic landscape. “
Scott Massey, CEO, Indiana Humanities
Council

Text
Center for Regional Economic Issues To achieve scale and execute its strategies,
REI must develop operational capabilities
Center for Regional Economic Issues

REI needs support to rebuild


REI Cash Balance ($000)
900
REI has faced twin challenges. Weatherhead’s financial
downdraft eliminated REI’s cash reserves needed for
675
rebuilding. Second, the decision by the Cleveland and
Gund foundations to step away from their 20 year
450 commitment to provide core funding for REI has
changed the financial model for REI.
225
REI is now developing a business plan that frees the
0 Center from core support from local foundations.
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

REI personnel costs ($000)


900 REI dramatically downsized in 2003-2004. REI now runs
with two University employees and a network of
consultants operating as independent contractors on
675 30 day contracts.

REI began rebuilding in 2004-2005. For this rebuilding


450
program to continue within Case, REI will need the
support of Weatherhead and the University.
225

0
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005
Center for Regional Economic Issues
REI has developed a strong reputation
for delivering practical results
Bruce Latimer, Ph.D. Ed and his staff have been tireless in their efforts to reach out and communicate with the
Executive Director surrounding community. I cannot applaud these important efforts enough. Their success
Cleveland Museum of Natural History in doing this is demonstrated in the energetic collaborations between individuals and
institutions where none existed before.

Richard Medvik You are doing a great job, and I am proud to be part of it. I am copying this note to Art
Standards and Regulatory Compliance Anton, the President and CEO, of Swagelok Company, where I have worked for 38
Engineer years. Art, like me, is a Case grad who is very interested in serving the city of Cleveland
Swagelok Company and North East Ohio. I’m sure he will be very impressed with your accomplishments as
he learns more about them.

Paul Sears REI plays a very important “honest broker” function of bringing resources, and people,
Dean, College of Business together around important and exciting ideas. In this regard, you are unique in the
Ashland University scope of your interests, and competence, you bring to the table.

Sam Cordes REI has a very impressive vision, products and services. We are delighted to have such
Co-Director, Center for Regional a close working relationship with Ed and REI.
Development
Purdue University

Paul Oyaski “Regionalism” and “economic development” have never been greater topics of
Director of Economic Development conversation or higher public policy priorities than today in Greater Cleveland. REI has
Cuyahoga County Commission brought substance and form and focus to this imperative community-wide dialog.
Center for Regional Economic Issues
Business plan work in progress

Detailing market opportunities, alliances and competition

Detailing product/service portfolio and product/service descriptions

Developing marketing and sales plans

Developing product/service development and commercialization plans

Developing operations plans (business processes, people and information


technology requirements, management decision-making systems)

Finalizing organizational and intellectual property plans, including governance

Defining management structure and key management roles

Building an activity-based financial model of the business

Detailing financial projections, including sources and uses of capital

Defining asset (including intellectual property) and risk management plans