DEPARTMENT OF COMPUTER SCIENCE

University of Toronto

CSC454/2527S: The Business of Software

January-April 2000

Course Overview

Version of 18 December 1999

January-April 2000, Mondays, 6:10-9:00 p.m., SF1105

Lecture and Discussion, usually from 6:10-7:00 p.m.

Meeting with Guest Entrepreneur, usually from 7:10-8:00 p.m.

Tutorial, 8:10-9:00 p.m., SF1105 + SS1084 + SS1087 + SS1088

Description

A broad overview of the software industry and a detailed look at the principles for starting and operating successful and growing businesses within the industry.

Objectives

The objectives of this course include development of:

• An understanding of the high-technology business environment in general and of the computer and software industries in particular.

• An understanding of the basic principles involved in crafting a small healthy growing business within the software industry, emphasizing eight key areas: innovation, focus and objectives, opportunity and timing, proprietary technology and capability, marketing and distribution, finance and financing, leadership and management, and partnerships.

• The ability to write, present, and critique business plans and to formulate and enhance computer-based financial forecasting models.

Synopsis

Topics will include the computer and software industries; sources of innovative opportunity; software business definition; software market planning and product planning; the management of R&D and software development; software product marketing; software sales and sales management; software product manufacturing and support; the financing and financial management of high technology ventures; legal protections for software as intellectual property; and leadership, management, and human resources for high technology industries. Particular emphasis will be placed on how the Internet is changing the software industry.

The class will be enriched by the participation of guest entrepreneurs — skilled practitioners active in the industry.

Intended students

Computer Science 4th year and graduate students; others by special permission.

Course photographs

During the first and second week of class, pictures of students will be taken in SF4306. You may have your picture taken Tuesdays or Wednesdays from 4 to 6, or Thursdays from 1 to 3. It is strongly recommended that you do this.

Communication with the class

Announcements, course notes, assignments, etc. will be posted on the course listserv and the Web site http://www.dgp.toronto.edu/people/RMB/bizsoft.html. Subscribe to the listserv by sending a message to listserv@listserv.utoronto.ca. In the body of the text type the command line "subscribe csc454-l <firstname> <lastname>". Don't put any subject in and if you have an automatic signature, it must be removed.

Course schedule

See Course Schedule on the Web site. It may be updated from time to time.

Course texts and readings

See Course Text and Readings Package on the Web site.

Reading list: assignments and due dates

See Reading List: Assignment + Due Dates on the Web site. It may also be updated.

Guest entrepreneurs (Subject to change without notice)

See Guest Entrepreneurs on the Web site. It will be updated.

Faculty

See Course Faculty on the Web site.

Instructional methods, criteria for evaluation

• Reading from Reading List, organized with respect to lectures; course package on sale in bookstore, also on reserve in Engineering and SigSam Libraries.

• Lectures + question and answer, typically 30-45 minutes each week.

• Presentations by guest entrepreneurs most weeks; Class discussion with guests, formulation and analysis of key issues the following week (5% individual grade based on questions and other class participation).

• Development of a business plan, including a financial forecasting model, for a new software venture, presented in stages throughout the semester —

1% (individual grade) for ideas

2% (team grade) for submission 0

7% (team grade) for submission 1

13% (team grade) for submission 2

32% for final submission

20% (team grade) for the plan

4% (team grade) for improvement

8% for individual participation (see detailed description below).

Note: This is to be done in teams of 4, except by special permission from your TA.

Note: 5 points out of 100 is subtracted each day the assignment is late (weekend=2 days)

• Oral presentation of key ideas from either an interim or final business plan (5%, individual grade), the latter in the style of the American Electronics Association venture capital conference (see detailed description below).

• Midterm exam (7%, individual grade).

• Final exam, testing your ability to recall, understand, and apply concepts discussed in class and in the readings (28%, individual grade).

• Note: Independent of your term marks, you must achieve a grade of at least 35% on the final exam in to order to pass the course.

Business plan assignments and due dates

10 January (8 a.m.) — Ideas (1%): Each individual hands submits to the class listserv a single submission containing one or two new venture ideas, each described in a single short paragraph. Each submission must also include:

• name, address, phone number, and email address to facilitate team formation

• a list of useful skills or background, e.g., work in a particular industry, commerce courses taken, expertise in a field other than computer science or commerce

17 January — Plan v.0 (2%): Each team submits to the class listserv the names of its members, and a one-page description of the idea chosen for the business plan

31 January. — Plan v.1 (7%): Each team hands in a draft executive summary (with ellipses) for its ultimate business plan, as well as a skeletal draft business plan. This is to be handed in on paper, and also posted to the class Web site. Emphasis should be placed on presenting the basic idea, objectives, and mission statement for a proposed new venture, and on describing in detail the product or service and the market to be served. The submission must also indicate who on each team is responsible for what part of the work, and who will make oral presentations on February 28th and on April 3^rd.

28 February — Plan interim oral presentation (4%): Individuals will make brief oral presentations (2 and 1/2 minutes each) discussing key ideas and challenges in the evolving business plan. Each team will designate 2 members who will make the final presentation on April 3^rd; all others will make interim oral presentations.

6 March — Plan v.2 (13%): Each team hands in a complete draft business plan. This is to be handed in on paper, and also posted to the class Web site. Emphasis should be placed on expanding and clarifying what was included in plan v.1, especially in terms of competitive analysis and competitive edge, and on adding marketing, financial, financing, and human resource plans for the new venture.

3 April — Plan final oral presentation (4%): The two individuals from each team who have not made interim presentations will collaborate on a final oral presentation (5 minutes total per team) presenting the most salient aspects of your business plan. Presentations will be heard by a panel of industry experts. This will hopefully include a venture capitalist who will agree to review "the best plan."

7 April — Plan final (32%): Each team hands in its final complete business plan in two copies, along with the marked-up copy of Plan v.2. The plan should also be posted to the class Web site.