Communicating Israeli Style

One thing that became apparent to the participants in this program last year was the stark contrast between Israeli and American communication styles.  Add to that dichotomy the diversity of our team this year: one Taiwanese, two mainland Chinese, one Brazilian and one Nigerian by way of the United Kingdom.  And not to mention that not all Israelis are made equal either, as the nation’s open immigration policies have brought in diversity from across the globe.  The resulting makeup of every technology commercialization team is diverse.

While multinational companies have found that this type of diversity often leads to great results, it is not without its difficulties.  As a result, we all took part in a course on cross cultural communications focusing on the differences between American and Israeli styles.  We discussed how each culture views itself and how it views the other and enjoyed looking at some of the following differences.  For instance, where Americans see themselves as friendly and open, Israelis see this as naivety; and where Israelis see themselves as confident and willing to take risks, Americans consider this brash and arrogant.  In short, members of a particular group tend to see their defining characteristics as positives that others sometimes view as negatives.

While dissecting these cultural differences was a fun and sometimes comical experience, the recognition and corresponding application of them in our work this summer is serious.  My team is comprised of four individuals all born in different countries across several continents (US, China, Ukraine, Israel), so understanding the quirks of our counterparts is crucial to our success.  Disagreements will no doubt arise, but understanding our cultural differences can help us limit the disagreement to business decisions and defuse and difficulties stemming from our respective backgrounds.

When we leave Israel in July, our technologies will remain here in Haifa, and the inventors will remain in their labs at the Technion.  One skill that we will all take back with us, however, is the real world expertise of navigating an international business team.  Indeed, many of us signed up for this experience because we relish the thought of connecting and working with people from across the world – the international nature of our team bears this out.  One of the challenges of today’s business environment is the ability to effectively navigate cross cultural situations, and I know we are all better prepared for this challenge moving forward.

Getting Down to Work

Between biomed conferences, Israeli holidays involving barbecuing on the beach and a little sightseeing, we have spent countless hours working on our technologies.  On our first full day in Israel everyone met their Israeli counterparts and saw presentations from the Technion innovator who developed their techs.  From that moment on, we have been fully immersed in every aspect of our technologies: wrapping our minds around the science behind them, researching the potential applications for them, meeting with experts in the field and related fields in which they could be commercialized and of course conceiving of the initial business models for their potential commercialization.

With just one week to immerse ourselves in our technologies, each team presented five potential applications to the class and our instructors.  We were encouraged to move beyond the most obvious applications for our technologies, which means we saw some really outside-the-box ideas for commercial applications for these innovations.

While our instructors, Ze’ev Ganor and Asher Epstein, went easy on us in our first class, they turned on the Israeli charm for our second Thursday night meeting.  The first presentation was interrupted during their first few slides for questions – a sharp contrast from the MBA classes back home where professors patiently await the obligatory “Questions?” slide to tell you how wrong your assumptions are.

Olivia and Lisa presenting their technology

To that end, we have learned a lot during our first full week.  First, you must think outside the box when it comes to entrepreneurship – thinking linearly about applications for a new technology is an easy way to get shot down by a venture capitalist.  Second, understanding the market for a new technological application is not as straightforward as it might at first appear.  Numerous assumptions must often be made (especially when dealing with an innovation that solves a problem in a unique manner), and those assumptions must be supported by logical claims.  Failure to do so is an easy way to ensure tough questions from venture capitalists.  And third, selling a new technology is all about solving a problem.  Convincing your audience of the severity of this problem and how your innovation addresses it better than the competition is the basis of your sales pitch, and you should never lose sight of it.

ILSI Biomed Conference

Yesterday we headed south to Tel Aviv for the Israel Life Science Industry (ILSI) Biomed Conference at the beautiful Dan Intercontinental Hotel.  After dealing with Tel Aviv traffic, we arrived just in time for the real highlight of the conference: a speech from Israeli President Shimon Peres.  In a country the size of the United States, you would never have the chance to see the president(!) speak at an industry conference, but this is one of the real benefits of working in a small nation like Israel. 

Shimos Peres at the ILSI Biomed Conference

The Israeli government recognizes the importance of the high tech sector for its overall economic health, and its support shows through in more than just loans for startup businesses.  When the president of a nation in the midst of serious political discussions takes time to speak to a group of business people and scientists, it really shows where his country's priorities lie.


After President Peres' speech, we broke out into different sessions on topics ranging from technology transfer best practices to the rapidly developing mobile healthcare sector.  We had the opportunity to network with industry experts, venture capitalists and scientists at the cutting edge of their field.


We ended the evening with a reception as we watched the sun go down over the Mediterranean before piling onto a bus for our trip back to Haifa.  While tiring, it was certainly a day well spent and a great introduction to the plethora of high tech companies doing business here in Israel.

Lag Ba’omer

Lag Ba’omer is apparently Hebrew for bonfires and barbecued meats on the beach. (Actually, Lag Ba’omer is a Jewish holiday celebrating the 33^rd night of Passover which commemorates the number of days between barley and wheat harvests in ancient Israel).  Regardless of its true meaning, it finally answered the age-old question: "How many MBA’s does it take to get a BBQ going?"  The answer, as we found out, is all 12 of us.

Indeed, this holiday is celebrated in modern Israel by lighting giant bonfires on the beach, grilling up some delicious meats and cracking open a Goldstar.

Israeli bonfire on Lag Ba'omer

We celebrated our first Israeli holiday together on Saturday night by doing as the Israelis do.  We sent a few teammates to the Arab market to purchase the provisions, assigned another third of the group to prep, and let the remaining teammates man the grill.  Once we got the grill going...

Ken lighting the grill

...we all chipped in when it came to eating the delicious grilled kebabs, lamb sausages, onions, mushrooms, corn and marshmallows...

Marc working the grill

For a while, we felt like we could have been anywhere in the world enjoying just another beach barbecue.  Amos compared the evening to his undergraduate days in Central California, and I didn't feel too far off from those summer evenings along the Atlantic Coast.  And then we looked inland and saw the R&D centers for Google, Intel and Microsoft overlooking us the whole time.  Only in Israel.

Our First Few Days

A Guest Post from Femi Oluboyede:

After about 24hrs of travelling depending on the country the trip began, all 12 participants of the Global Technology Entrepreneurship Fellowship 2011, at the Technion University in Haifa, Israel arrived at Ben Gurion airport in Tel Aviv. Jennifer Birch, our trip coordinator, met most of us at the airport and we eventually began the trip from Tel Aviv to Haifa where we would all be staying for the next 8 weeks of the program.

First impressions of Israel: lots of greenery, lots of high-rise buildings and easily recognized brand name companies such as Microsoft, Intel, Nissan, McDonald’s etc. The highways are quite similar to those in the US and rush hour traffic is a universal unifier. Some of us expected to see a lot of security and a strong military presence at the airport, but other than one security officer asking to see all our passports as we awaited the arrival of two classmates on a delayed flight, this airport could be just like any other around the world.

The house we’re staying in is down a series of steps off Anzo Serini street in Haifa. The women’s part of the house has several bedrooms on two floors, living space and adjacent to the men’s house which has five bedrooms on two floors, a dining and living room space and a really lovely garden area with flowers with a view of Haifa and the Mediterranean sea.

Our first meal was salad and pizza as we gathered together in our new living space to meet one another (except for one of us, finishing off his on-line final exam from Tel Aviv) for the first time. A quick walk around the area after the meal revealed that we were in a fairly quiet residential area. Tomorrow, we would explore the path to the beach after recovering from our trip. We headed home and slowly crept to bed to get some much needed rest and battle the jet-lag setting in.

A Realization

A Guest Post from Shawn Latimer:

I woke up this morning to instant coffee, offset by a beautiful view of the Mediterranean off of our shared porch, and began to contemplate the task in front of us.  The first of 8 classes was last night, and the rigor and detail we need to put into our final deliverables is daunting.  These are real applications, with real opportunity to create real businesses.

And we will be part of the team that makes it happen.

Some of the technologies have potential to save lives, providing better tools across the medical industry.  But the only way to get them into the hands of the people that can use them is to produce an actual product, and then get it in front of people.  This is the best kind of synergy between inventor and business.  Sure, we would all love to make a blockbuster product that makes heaps of money.  The real value though, is in getting these techniques to market so they can save lives.

We have 8 weeks to scope out an entire business model, from initial ideas for how to use the patent all the way through to the budget and final business plan.  It’s an ambitious goal, but with the help of our Israeli classmates, and this view, I think we can make it work.

Celebration, Send Off

With just two weeks before our departure for Haifa, Miles Gilburne of ZG Ventures graciously hosted a reception in honor of the Dingman Center’s Global Technology Entrepreneurship Fellowship.  This opportunity allowed our team to meet the donors whose contributions have helped make our summer experience a reality.  The host kicked off a round of speeches by welcoming us into his home and sharing his insight on the importance of entrepreneurship and innovation in succeeding in the business world.

Then, Dean G. “Anand” Anandalingam (or Dean Anand for short) of the Robert H. Smith School of Business provided a global context to the importance of what we are doing this summer.  From cross-cultural dialogue and international business experience to a hands-on lesson in innovation and entrepreneurship, he explained that our team is engaging in the type of practical learning that exemplifies the ideal 21^st century MBA education.

Before the night was through, Asher Epstein, Managing Director of the Dingman Center for Entrepreneurship and the leader of our trip to Israel, introduced the team and allowed us to formally present ourselves to the Dingman community.  Speaking in front of accomplished entrepreneurs and investors will be an everyday occurrence for our team this summer, so this was spot-on in terms of preparation.

Amos Cruz introducing himself with the team looking on

Our team left the night with a deeper appreciation of just what we will be tasked with this summer and its implications for our careers and professional development as well as its broader significance for the Smith School.  And while the takeaways were many, they can be summarized with the following:

We were told that no matter how hard we work, Israeli venture capitalists will find flaws in our business plans; this is the nature of early stage investing.  We were reminded that few startup ventures ever grow into full-fledged businesses; we must at once temper our expectations while still thinking big.  It was impressed upon us that only through hard work and creative thought will we succeed this summer.  But most of all, the experienced entrepreneurs expressed a sense of envy that they had not had the opportunity to immerse themselves in such a rich learning experience early in their careers.  I can speak for all of us when I say that this event truly set a positive tone for the 8 weeks that await us in Israel.

Preparations

In order to prepare ourselves for the challenges of tech transfer and venture capital that await us in Israel, our team of MBA’s has been preparing since January.  We began this process by researching the three primary technology sectors for the Israeli economy: agricultural, water and medical devices.  We wrote in-depth reports detailing the economic drivers, strengths and weaknesses and primary companies in each of these segments.  We shared the reports with one another and will continue to review them as they apply to our specific projects and the companies we visit.

With the basics under our collective belt, the team met with several experts who shared their breadth of experience on topics ranging from intellectual property law to Jewish business ethics to the technology commercialization value chain.  Their knowledge has provided us with a basis of understanding that will make the transition to doing business in Israel much smoother, and for that we are grateful.

Ann Liebschutz, Executive Director, US Israel Science and Technology Foundation 

Ann expanded on our conception of the Israeli business environment by sharing her experience in promoting collaboration between Israeli and US firms and researchers.  Specifically, Ann contributed to our team’s understanding of the role of the Office of Chief Scientist in technology commercialization and how Israel has been able to cultivate such a pro-startup business environment.  Understanding and leveraging the public funds and support available in Israel is a crucial factor for the survival and success of the nation’s startups.  There is no doubt that we will be able to apply Ann’s expertise in our own work this summer.

Rick Zitelman, President and Founder, The Zitelman Group

With teammates from the US, China, Taiwan, Brazil, and Nigeria, one thing our team does not lack is international experience.  Rick’s discussion on Jewish business ethics, however, exposed our team to a different perspective on business dealings as seen from the perspective of Jewish tradition.  As a venture capitalist with experience investing in early stage technology companies in Israel, Rick’s insights were pertinent and highly applicable to our experience this summer.

Rick Zitelman of The Zitelman Group

Miles Gilburne, Managing Member, ZG Ventures LLC

From researchers, to tech transfer officers, to venture capitalists and everyone in between, our task this summer will require us to satisfy a diverse group of stakeholders.  Miles Gilburne imparted more than 25 years worth of venture capital experience when he led a spirited discussion on the technology transfer value chain.  He dissected the complex web of individuals that we will encounter throughout the technology commercialization process and explained the unique motivations and goals of each player throughout the process.

Miles Gilburne of ZG Ventures

Israel – Startup Nation

Dan Senor and Saul Singer’s Startup Nation: The Story of Israel’s Economic Miracle is required reading for anyone looking to do business in Israel.  In it, the co-authors describe how Israel has undergone a transformation from fledgling nation to the world’s most exciting place for technological innovation and entrepreneurship.  The reasons are varied, but all have their roots in a shared sense of survival around which this small nation has cultivated the ideal environment in which to start a business.  If you don’t believe me, just consider that Israel has:

• the highest density of startup companies in the world (one for every 1,844 Israelis)
• more companies listed on NASDAQ than all of Europe
• the greatest portion of GDP spent on civilian R&D worldwide

From the perspective of an MBA student and entrepreneur, Israel offers everything you could ever dream of.  I’m told that driving down Highway 2 from Haifa to Israel I will see offices for global leaders like Intel, HP, Google and Microsoft.  Not to mention that I will have access to Israeli startups-turned-corporations such as Teva, Given Imaging and Netafim.  And nevermind the brilliant researchers at the Technion and the venture capitalists to whom I will pitch my ideas on a weekly basis.

The concentration of multinational firms, innovative startups and funded research in an environment that encourages learning by doing and innovative approaches to problem solving makes Israel the ideal place for an internship and beyond.

Shalom and Welcome!

This summer a group of 12 MBA students will spend eight weeks in Haifa, Israel as part of the Dingman Center’s Global Technology Entrepreneurship Fellowship.  There, we will develop commercialization plans for exciting high-tech intellectual property at the Technion in Haifa.  With this blog we hope to communicate what promises to be the experience of a lifetime through our photographs, videos, and collective voice.

What exactly will we be doing in Israel?  At the Technion, often referred to as Israel’s MIT, we will work in teams with our Israeli counterparts to develop commercialization plans for some of the world’s most cutting-edge IP.  We will study Israeli technology and industry dynamics through company visits and meetings with the leaders in agro-technology, water-technology and medical devices.  We will attend conferences in Tel Aviv and Jerusalem to immerse ourselves in the latest trends and network with executives in the technology sector.  And we will gain invaluable insight and feedback by pitching our plans weekly to Israeli venture capitalists.

In our free time we’ll explore all that Israel has to offer.  We’ll swim (or float on?) the Dead Sea, tour the ancient city of Jerusalem, enjoy bustling Tel Aviv, and hike in stunning scenery in Israel’s North.  We’ll seek out the finest shawarma and falafel Israel has to offer.  And we might even spend a few hours on the beach.

We'll do all of this as a team; we'll learn from one another, sharing cultures, languages and perspectives towards the goal of collective learning.

Throughout the summer this blog will relate the story of our time in Israel.  We hope you enjoy it.