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

Global leader in helping advanced regions achieve sustainable economic growth

Provide civic leaders with the best practices and tools for transforming advanced regional economies and promoting sustainable growth

Networks.-- Develop collaborative networks that accelerate regional economic development Products.-- Create and market a portfolio of products and services that generate revenues from regional 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 Creative People

Innovation Dynamic clusters Branding

Generates strategic roadmaps to build “clusters” Created returns of over $200 invested for every $1 invested in Oklahoma City’s economic development strategy REI is currently deploying the model in Indiana.

Purposeful Dialogue

Quality Places

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 Generates revenues from in person and webbased training on building clusters Case Revenues REI Products Generates revenues from Internet-based platforms for clusters

Research.-- Leads to new networks and civic education opportunities about “what works” Networks.-- Provide test beds for new Internet based products and education services Products.-- Leads to insights into better networks and generates access to networks for research purposes Education.-- Provides pathway for translating research into policy and creates new product ideas

REI Research Generates revenues from innovative government and foundation funders

REI Networks Generates revenues from equity-based alliances (e.g., royalties)

Case Brand Recognition

Center for Regional Economic Issues

REI’s strategy aligns with the Case strategy
Case Service

Case Education

REI’s four strategies align and reinforce the University’s strategy. As REI builds its strategies, we will measure REI’s progress along two metrics: brand recognition and revenues. Brand recognition will be measured using standard public relations metrics.

REI Education Case Revenues

REI Products and Services

Case Values

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

Strategy
Research.-- Create and grow a portfolio of actionable hypotheses about open innovation systems in regional economies Networks.-- Develop collaborative networks that accelerate regional economic development

Performance indicators
Research statistics (e.g. number of hypotheses defined and tested, dollars of extramural research)

2005-2006 Objectives
1. Build national research network 2. Define research agenda

Key success factors
Number of and quality of researchers committed to participating in REI research network

Network statistics (e.g. number of networks, average number of people per network, communications volume, percent of networks achieving their mission, etc.)

1. Expand Universities Collaborative network 2. Support REI emerging NEO networks (i.e., health care, biofuels, tele-working, sustainability, creative media) 3. Define Great Lakes network targets 1. Formalize product development process 2. Develop prototype templates for basic OSED toolset 3. Develop IT support network (e.g., e-commerce and webcasting) 1. Expand REI.Tuesday franchise 2. Relaunch REI Review 3. Test market Innovate e-zine 4. Test market civic leadership courses

Number of networks supported by REI infrastructure

Products.-- Create and market a portfolio of products and services that generate revenues from regional economic development initiatives

Product commercialization statistics (e.g. percent of revenue from new products, cash flow break-even time, number users added per unit time, etc.)

Growth of product customer base, conversion rate of REI customer community from free to paid

Education.-- Penetrate business and public policy schools with advanced regional economic development curriculum and activities

Education statistics (e.g. size of opt-in e-mail lists, number of students, revenue per student, public relations measures on exposure)

Growth of education customer base (opt-in e-mail lists), conversion rate of REI customer community from free to paid

Center for Regional Economic Issues

Use to develop new products Use to support new clusters Use to educate and form public policies

REI’s research strategy builds a “think and do” tank
KEY OPERATING CAPABILITIES REI MUST BUILD Build and manage research network

Brainpower

Innovation

Purposeful Dialogue

Capture Learning

Quality Places

Branding

Capture Learning

Define research agenda Secure extramural funding Manage research projects Manage data Integrate with other REI strategic activities

Generate Hypotheses Use to define new research agenda REI National Research Network

Publish and promote

Center for Regional Economic Issues

Research Strategy Key Activities

Key Steps Identify Network Define Agenda

Who Morrison Morrison, Fogarty

When 3Q 2005

4Q 2005

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

Center for Regional Economic Issues

Launch Tuesdays

REI.Tuesday Webcasts

Network Strategy Key Activities

CSU Agreement

Universities Collaborative

NOCHE expansion

Disease Management Health Network

Biofuels and Advanced Vehicles

Key Steps
East Cleveland 2010

Who Morrison, Wheeler, Minter Initiative coordinators

When 3Q 2005

Expand Universities Collaborative Support existing networks Identify Great Lakes opportunities

Telework

New Energy Roundtable Medvick Matrix

On-going

Creative Digital Media

Morrison

1Q 2006

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

Center for Regional Economic Issues

Product Strategy Key Activities
Key Steps
Build Indiana toolkit

Who Kozink, Kozmon

When On-going

Test seminars

Define product development process Identify e-commerce providers

Test webcasts

Kozmon

On-going

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 networks of collaboration with colleges and universities in the middle of these networks

KEY OPERATING CAPABILITIES REI MUST BUILD 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

Center for Regional Economic Issues

Education Strategy Key Activities

Key Steps Expand REI.Tuesday franchise through Collaborative
Test seminars

Who Merkel

When On-going

Relaunch REI Review Test e-zine on NEO innovation Test seminars

Morrison

3Q 2005 2Q 2005 3Q 2005

Test ezine

Relaunch REI Review

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) 900 675 450 225 0

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

900

675

REI dramatically downsized in 2003-2004. REI now runs with two University employees and a network of consultants operating as independent contractors on 30 day contracts. REI began rebuilding in 2004-2005. For this rebuilding program to continue within Case, REI will need the support of Weatherhead and the University.

450

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

Sam Cordes Co-Director, Center for Regional Development Purdue University

REI has a very impressive vision, products and services. We are delighted to have such a close working relationship with Ed and REI.

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