The Magazine for Alumni _ Friends of the College of Business

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					                                        The Magazine                              Spring 2009 | Volume 2 – Number 1
                                        for Alumni & Friends
                                        of the College of Business Administration
                                        at the University of Illinois at Chicago

Pursuit of a Higher Calling pg 4 I The Center of Chicago’s Small Business Community pg 6 | UIC Students Venture into
Business Startups pg 8 | Business Leader of Tomorrow pg 13 I The Strategy of Innovation pg 14

                                        The Magazine
                                        for Alumni & Friends
                                        of the College of Business Administration
                                        at the University of Illinois at Chicago

                                        The Magazine
                                        for Alumni & Friends
                                        of the College of Business Administration
                                        at the University of Illinois at Chicago

                                        The Magazine
                                        for Alumni & Friends
                                        of the College of Business Administration
                                        at the University of Illinois at Chicago
      The Magazine
      for Alumni & Friends

      Spring 2009
      of the College of Business Administration
      at the University of Illinois at Chicago                                                                   

      The Magazine
      for Alumni & Friends
      of the College of Business Administration

    Dear alumni and friends,                                                    Contents
      at the University of Illinois at Chicago

    In January, we reached a significant milestone in our pursuit of a
    new Magazine for the College of Business Administration when the
             home                                                                            Pursuit of a Higher Calling
    University of Illinois Board of Trustees gave project approval for our
       for Alumni & Friends
       of the College of Business Administration                                             Alumni Spotlight: Wendy Lynn  .  .  .  .  .  .  .  . 4
    plan to renovate Douglas Hall on the east side of campus. Through
       at the University of Illinois at Chicago

    the leadership of Dean Stefanie Lenway, the creativity of renowned
    architects and designers and the support of the CBA community, we
    will transform Douglas Hall into a dedicated, state-of-the-art facility
                                                                                             The Center of Chicago’s Small
    forTheAlumni college and its stakeholders.
          the & Friends
                                                                                             Business Community
      of the College of Business Administration

    This facility, which is scheduled to open in fall 2011, will provide a
       at the University of Illinois at Chicago
                                                                                             Center for Urban Business  .  .  .  .  .  .  .  .  .  .  .  . 6
    unique learning environment for students and an accessible gath-
    ering place for the Chicago business community. It will include fully
                                                                                             UIC Students Venture into
    equipped learning studios, high-tech collaboration hubs for student                      Business Startups
    project work, a trading training floor, a board room and on-campus                       Technology Ventures Program  .  .  .  .  .  .  .  .  . 8
    space for the Liautaud Graduate School of Business.

    As part of the university’s ongoing commitment to sustainability, we
                                                                                             Business Leader of Tomorrow
    will take the necessary steps throughout the construction process to
                                                                                             Abeer Alkhatib  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
    achieve Leadership in Energy and Environmental Design certifica-
    tion for the building—making it the only LEED-certified business
    college facility in the Chicago area. We want this project to serve as a                 The Strategy of Innovation
    model for future renovations not just here at UIC but on campuses at                     Faculty Spotlight: Jelena Spanjol  .  .  .  .  .  . 14
    our peer institutions throughout the nation.

    While state resources provide a portion of the funding for the
    project, contributions from CBA alumni and friends are crucial to
    making it a resounding success. Your gifts are what will enable us to
    advance our mission and transform outstanding business students
    into exemplary business leaders.

    As we continue our Brilliant Futures Campaign, the CBA is
    committed to providing a high-quality education, producing cutting-
    edge research and creating new value in the business community.
    In addition to the Douglas Hall project, we are seeking to establish       BIZ Magazine is published for alumni and friends of
    permanency for the International Center for Futures and Derivatives,       the University of Illinois at Chicago College of Business
    which continues to be a spire of excellence for the college. The ICFD      Administration.
    is actively fostering research and innovation in futures and deriva-
    tives and also promoting understanding of the role these financial         Project Managers                             Photographer
    products play in risk management and economic growth.
                                                                               Chris Jasculca                               Julie Jaidinger
    The Brilliant Futures Campaign is the largest and most ambitious in        Rachel C. Stack
    the history of the University of Illinois, and we are currently at 51
                                                                               Writer                                       Unique Printers
    percent of our goal. Please support your alma mater and create a bril-
    liant future with us! For more information about alumni involvement        Heather Hoffman
    and the campaign, please visit
                                                                               Editorial Board                              Allstar Computer
    You are making a difference for the students and faculty here at the       Nicole Askew                                 Mailing Services, Inc.
    College of Business Administration!                                        Adrienne Field
                                                                                                                            If you have inquiries, feedback
                                                                               Anthony Padgett
    Best Regards,                                                                                                           or comments, please send an
                                                                               Design                                       e-mail to
    Rachel C. Stack                                                            Creative Quadrant, Inc.
    Director of Advancement

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                                                                                         Spring 2009       of the College of Bu
                                                                                                           at the University of

                                                                                                           The Magazine
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Message from the Dean | Building a Stronger CBA Community
                                                                                                           at the University of

                                                                                                           The Magazine

Dear Friends,
                                                                                                           for Alumni & Friend
                                                                                                           of the College of Bu
                                                                                                           at the University of

This past year has been an exciting one for the UIC College of Business
Administration. We established new partnerships with prominent Chicago-area
businesses, reconnected with members of our alumni network and added exemplary                             The Magazine
                                                                                                           for Alumni & Friend
teachers to our faculty. We expanded our global presence through the success of                            of the College of Bu
                                                                                                           at the University of
programs such as our Corporate MBA, which recruited more than 350 students from
China, Thailand, Korea and Taiwan, as well as our participation in high-profile events
such as the Chicago/London Conference on Financial Markets organized by the
UIC International Center for Futures and Derivatives. We also announced plans to
transform Douglas Hall into a permanent home for the college.

While we are excited by this progress, we recognize the need for continued
investment in our community to keep it strong and viable. With that in mind, we
launched several initiatives intended to elevate the college’s profile and offer our
stakeholders access to valuable resources. Among these initiatives was the creation
of a Research Paper Series on the Social Science Research Network Web site. This
online series houses a collection of working papers and published studies produced
by our faculty that is accessible by scholars and business leaders from around the
world. More important, it showcases the innovative research being generated by the
college and highlights our commitment to creating new knowledge and value.

We also developed UIC BIZ—a social networking site created exclusively for our
alumni. Through this site, alumni can connect with former classmates, make
professional contacts, search or present career opportunities, find or become
a mentor, get information about college-related news and events, and identify
volunteer opportunities. To date, more than 450 people have signed up and are
using the site.

Each of these initiatives underscores our dedication to building our community and
improving the lives of members like you. You are outstanding ambassadors for the
CBA and the reason we are a college on the move. Thank you for your support.
Enjoy the publication.

Stefanie Lenway – Dean

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    Spring 2009
    of the College of Business Administration
    at the University of Illinois at Chicago          

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    at the University of Illinois at Chicago

    The Magazine
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    at the University of Illinois at Chicago

    The Magazine
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    at the University of Illinois at Chicago

                                                        rom the moment she
                                                        walked into the job inter-
                                                        view, Wendy Lynn knew
                                                        the position would be
                                                        unlike any she’d ever held
                                                before. Her interviewers greeted
                                                her with hugs and kisses, some-
                                                thing that Lynn, a vice president in
                                                corporate human resources, would
                                                never have done. But this would
                                                be one of the new and surprising
                                                changes she would discover as she
                                                left her corporate life behind to
                                                become the president of a private,
                                                all-girls high school on Chicago’s
                                                South Side.
                                                For the previous nine years, Lynn had served
                                                as VP of employee benefit consulting at CNA.
                                                While it was a position she enjoyed and had
                                                worked hard to attain, she felt something was
                                                missing. At the urging of her boss, she accepted
                                                the challenge to be part of a CNA–Liautaud
                                                Graduate School of Business MBA cohort in
                                                2005. “I felt that it would be a good experience
                                                to learn with my coworkers,” she explains. “The
                                                program centered on CNA and featured an
                                                emphasis in accounting and finance, which
                                                I was interested in even though it wasn’t my
                                                background. The collaborative nature of the
                                                program and the attentive faculty made it
                                                a very worthwhile experience.” The general
                                                management perspective Lynn received from
                                                her MBA would prove helpful when she
                                                decided to make a rather unorthodox
                                                career move.

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Alumni Spotlight | Wendy Lynn, MBA ’07                                                                                                           of the College of Bu
                                                                                                                                                 at the University of

of a Higher Calling
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After almost a decade in the same position and armed with an          office at CNA and said, “I’ve found a way to save you money.
MBA, Lynn felt that she was ready for a new challenge. She            I’m leaving to become president of an all-girls Catholic school.”
contemplated moving up the ladder at CNA, but a shrinking             He threw his head back, laughed and said, “Well, you said you
economy was already showing its effects on the company. Having        wanted a challenge.”
worked at Acme Steel, Prudential Insurance and BorgWarner
                                                                      Each step on her new career path has been a journey of faith
in the past, she turned her attention to other companies. She
                                                                      for Lynn. “In my vocational search, I never saw this for myself,”
conveyed her concerns to her boss and gleaned opinions from
                                                                      she says. “Everything just came together—my fascination
mentors, but it wasn’t until a conversation with her priest that
                                                                      with learning, my love of education and a deep dedication to
she saw a glimpse of her future. “He told me he had a nagging
                                                                      single-gender education that both myself and my sons have
feeling that I should be doing something with an order of sisters
                                                                      experienced—and it brought me to this position.”
on the South Side,” she remembers. “I didn’t quite understand it,
but I’m amazed at how prescient he was.”                              When Lynn told colleagues of her new career plan, most initially
                                                                      responded with disbelief, but they followed by expressing their
                                                                      own desire to do something much the same. “I think a lot of
           “I think a lot of people are                               people are looking for more meaning in their work,” explains
                                                                      Lynn. “Many people search, and some find it in the corporate
        looking for more meaning in                                   world, but I have discovered what I consider a kinder, gentler
                            their work.”                              In her new role, she experiences the same collaboration,
                                                                      teamwork and supportive environment she’s been in before, but
                                                                      it has a softer edge. She uses many of the same financial smarts
Lynn’s husband, who is retired, does engineering work for the
                                                                      and skills she obtained through her MBA to achieve a new set
Motherhouse of the Sisters of St. Casimir in Marquette Park. A
                                                                      of goals. Strategic planning and financial acumen are neces-
friend mentioned that they were looking for a new president for
                                                                      sary to navigate the management of the school’s finances. Her
Maria High School. “I just about fell over when I heard this,” says
                                                                      background in corporate and labor law is essential for dealing
Lynn. She had always been passionate about education, particu-
                                                                      with staff and employment issues. Marketing skills play a role in
larly single-sex education, but had never entertained the idea of
                                                                      assessing and differentiating the school against others in the area,
going into the field. The idea of accepting new challenges had
                                                                      evaluating curriculum and networking with potential donors.
always been confined to the corporate world, and this prevented
Lynn from immediately jumping at the opportunity.                     “Overall, the biggest part of my job is to understand what makes
                                                                       people valuable workers and to pass that on to our students,”
 She discussed the position at length with both family and friends.
                                                                       says Lynn. “They need more than just book learning. They need
“The field of education pays a whole lot less than the corporate
                                                                       social and emotional skills.” Maria High School has just over 300
 world,” explains Lynn. “I needed to make sure my family was OK
                                                                       students, who come from a diverse population with many from
 with the decision. Thankfully, they were completely supportive.”
                                                                       tough financial backgrounds. “It’s a challenge to prepare these
 She decided to apply for the position with the notion, “If it’s
                                                                       students and instill in them the ability to discover, synthesize
 meant to be, it’s meant to be.” And so it was.
                                                                       and present their own knowledge,” declares Lynn. “But for me it’s
Upon accepting her offer at Maria, Lynn walked into her boss’s         a more fulfilling challenge to work towards than the bottom line.”

          The Magazine
          for Alumni & Friends

          Spring 2009
          of the College of Business Administration
          at the University of Illinois at Chicago                                                           

    P                                                                                          The
          The Magazine
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             atricia Perez hadn’t planned to open her
          of the College of Business Administration
          at the University of Illinois at Chicago

             own practice immediately after receiving
             her doctorate from the Illinois College

                                                                                          Center of
             of Optometry. However, when the ideal
          The Magazine

    situation presented itself, her career plans and
          for Alumni & Friends
          of the College of Business Administration

    path changed.
          at the University of Illinois at Chicago

    “My sister was the office manager at a practice whose owner
     decided to sell the business,” says Perez. “The opportunity just
           The Magazine
           for Alumni & Perez
     felt right.” Friends had the skills to be a successful doctor, but
           of the College of Business Administration
           at the was Illinois at Chicago
     felt she University oflacking the expertise to run her own business. “I’d

     only taken one business course, so I knew I would need to seek
     outside help to get my practice started.”

    Perez soon discovered UIC’s Center for Urban Business, an

    Illinois Small Business Development Center that receives govern-
    ment funding from the Small Business Administration and
    Illinois Department of Commerce and Economic Opportunity.
    The center’s purpose is to assist the growth and development of

    small- to medium-sized businesses in the Chicago area.

     Both the local and national economy depend heavily upon
     independent businesses—from bakeries and dentists to Internet
     companies and hardware stores—for jobs and income. Small
     businesses, which are comprised of anywhere from one to
     500 workers, currently employ half of all U.S. workers and are                business owners, we know which banks are more likely to fund
     responsible for the creation of 60 to 80 percent of the net new               which business loans,” says DeLaGarza.
     jobs during the past 10 years.
                                                                                   Although starting a business is difficult, keeping it afloat can be
     Each year, more than 600,000 people like Perez open a small                   even harder. With this in mind, CUB hosts monthly workshops
     business. It is a dream of many but a grueling process effectively            that brief entrepreneurs on essential business information such
     navigated by only the most determined. For those who success-
     fully launch their businesses, many obstacles, including a tough
     economy, lack of startup capital and increasing regulations, cause
     one third to close their doors within two years. Business owners
     benefit from having access to resources and networking, and
     CUB is dedicated to fulfilling those needs.

     Perez discovered CUB when searching for a loan. “I was referred
     by a banker,” she recalls. “CUB looked at my numbers and
     helped me decide what type of loan fit me best.” Assisting people
     with the financial challenges associated with starting a business
     is one of CUB’s main objectives. “We help identify funding
     sources such as business lines of credit, SBA loans, bank loans,
     grant programs and investor financing,” says Joseph DeLaGarza,
     director of CUB. “And we assist in preparation of loan requests.”
     CUB also functions as a free “broker” in that it helps business
     owners find the appropriate lender or financing instrument for
     their growth needs. “Since we work with so many lenders and

                                                              Patricia Perez, OD

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From left, Ric Orna and Joseph DeLaGarza

                                                                                           “Projects ranged from marketing and
            “In the past few years, we’ve seen our                                          strategic analysis to information technology,”
                                                                                            says Orna. “Judging by the number of repeat
            clients make great strides in terms of                                          clients, it appears business owners find the
                                                                                            services offered by the student teams to be
                            growth and potential.”                                          valuable.”

                                                                                           Perez used student teams to market her
                 Joseph DeLaGarza, Director of the Center for Urban Business               practice. “They provided me with a full
                                                                                           report about my business and a demo-
                                                                                           graphics profile, which led to a direct mail
as public relations and publicity, marketing, business operations, employment law          campaign,” recalls Perez. “It was great having
and human resources. In addition, CUB’s affiliation with the UIC College of Business       that kind of help because I had no experi-
Administration allows business owners to benefit from the knowledge and skills             ence in marketing.”
of the college’s faculty and students. CUB works with faculty from all departments
through its Entrepreneurial Student Teams Program, in which students have the              “We’re here to provide small- to medium-
opportunity to work on real projects with the center’s clients.                             sized business owners with whatever help
                                                                                            they need,” says DeLaGarza. “In the past
Ric Orna, an entrepreneurial studies major who graduated this year, worked with a           few years, we’ve seen our clients make great
CUB client in his Entrepreneurial Consulting class. “The first week of class we were        strides in terms of growth and potential.”
given a list of companies, and we formed teams based on our experience,” says Orna,         CUB helped clients garner more than $15
who consulted with a local company that runs four pawnshops. “They needed help              million in financing just last year.
with security IT for their shops.” Orna runs his own technology consulting firm to
help pay for school, so he knew this project would be a good match for his skills.         “The greatest thing we provide businesses
Over the course of the semester, Orna and his teammates mapped out the company’s            in Chicago is resources,” says DeLaGarza.
locations to determine their security needs. They also helped with the request for         “We offer a little bit of everything to our
proposals and vendor research.                                                              clients—for both new and established
                                                                                            businesses—and we are here to help
CUB’s counselors and staff ensure that the students rely upon their past work experi-       them succeed.”
ence as well as expertise gained in the classroom to guide clients through the projects.

         The Magazine
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        Spring 2009
         of the College of Business Administration
         at the University of Illinois at Chicago                                                             

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         of the College of Business Administration
         at the University of Illinois at Chicago

                                                hen Mike McCoy was accepted into UIC’s Liautaud MBA program, he never imagined
         The Magazine
         for Alumni & Friends
                                                his interest in entrepreneurship would result in him launching a fledgling medical
                                                device company before he even received his degree. “The idea of starting a business
         of the College of Business Administration
         at the University of Illinois at Chicago

                                                appealed to me,” he says. “However, achieving this amount of progress so quickly was
    Although&Chicago is home to a thriving small business
         The Magazine
         for Alumni Friends                                                        “The Technology Ventures Program is the only way I would have
    community, Illinoishasn’t historically been a strong market for
         at the University of it at Chicago                                         taken this upon myself,” says McCoy. “Through the program,
         of the College of Business Administration

    commercializing technology startups—lagging well behind other                   you are under the umbrella of the university and have access
    regions in the United States in terms of available resources and                to vital resources that might not have been available to us in
    interested investors. That was among the many issues discussed                  the business community.” This is the same reasoning that led
    during a recent Executives’ Club of Chicago’s High Technology                   Rod Shrader, associate professor of management, to develop
    Conference. Many of the conference attendees noted that                         Technology Ventures three years ago.

    although the city was “gaining ground against other metro areas                 After attending the Stanford Roundtable on Entrepreneurship
    as a home to technology-based business, [it still] struggles to                 Education for a number of years, Shrader began to wonder how
    nurture innovation of the Silicon Valley variety.”                              he could bring some of the ideas from the Roundtable to the
                                                                                    CBA. “I had been sitting there for a few years wondering what I
    What has proved vitally important in Chicago’s recent efforts
                                                                                    really brought to the table,” he says. “But I soon realized that we
    to create a more stable environment for burgeoning technology
                                                                                    could utilize many of these concepts at UIC.”
    companies is the abundance of talent, resources and commer-
    cially viable inventions found inside many of its research-based                As the idea began to grow in Shrader’s mind, he approached
    universities. This is why students like McCoy are discovering that              David Gulley, the assistant vice chancellor of research for
    graduate school may be the best place to start a business.                      UIC who was serving as the interim director of the Office of
                                                                                    Technology Management, to see how he might make use of the
    McCoy and his fellow classmates, Amir Bastawrous and Matt
                                                                                    technologies UIC had to offer. The OTM is a business unit of
    Norris, founded HeartSounds, Inc. in the Technology Ventures
                                                                                    the university that was set up after the implementation of the
    Program, a three-semester course that teaches students how
                                                                                    Bayh-Dole Act of 1980, which granted universities the ability
    to create and implement a business plan for an emerging
                                                                                    to patent and commercialize inventions that came from public
    technology. Their technology is an acoustic-based, non-invasive
                                                                                    funding. UIC is currently ranked among the top 50 in the United
    device for fetal heart monitoring and cardiovascular diagnostics
                                                                                    States for federal research expenditures—receiving more than
    invented by Roland Priemer, PhD, an associate professor of
                                                                                    $200 million annually.
    electrical and computer engineering at UIC.
                                                                                    Every year, faculty members from across campus present their
    Now, after months of market research, five business plan
                                                                                    discoveries to the OTM. Each discovery goes through a screening
    competition victories, more than a dozen pitches to venture
    capitalists and an MBA degree in hand, McCoy is ready to move
                                                                                                                                             Mike McCoy
    his company to the next stage.
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           Spring 2009
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           at the University of Illinois at Chicago                                                          

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            of the to of Business Administration
      processCollege determine whether it has
            at the University of Illinois at Chicago
      commercial potential. Those that are deemed
      viable are patented, presented for commercial
      partnerships and licensed to large compa-
      nies, The Magazine firms, venture capitalists and
            for Alumni & Friends
            of the businesses. Those that are not remain
      startup College of Business Administration
            at the University of Illinois at Chicago

     “When Rod approached me, I realized we
      had a great opportunity with the Technology
           The Magazine
           for Alumni Program, says Gulley. “The
      Ventures & Friends                      ”
           of the College of Business Administration
      students wouldathave real products to work
           at the University of Illinois Chicago

      with, and many of these ‘orphans’ could
      benefit from having some academic experi-
      ence put behind them.”

      Most of the discoveries at UIC come out of
      basic research and, therefore, are in very
      early stages. “Our scientists do the research
      side very well,” says Gulley. “We are looking
      for people to do the development side.” The
      reason many products remain “orphaned”
      is that companies in a tight economy do
      not have the resources to take products,
      especially medical devices, through the
      lengthy development process. Shrader and
      Gulley believed student teams could advance
                                                           From left, Technology Ventures students David Miller and Kesha Burch with Professor Rod Shrader
      the progression of each discovery through
      the Technology Ventures Program.

      About 20 students enter the program each             money,” says Shrader. Another more active way to raise capital is to enter business
      year, but many quickly learn that starting a         plan competitions.
      business, especially as a full-time student,
                                                           Dennis Serio, founder of the Illinois Business Investor Forum, approached Dean
      is no easy task. The three-semester setup
                                                           Stefanie Lenway and Shrader about starting a business plan competition within the
      helps to weed out the less serious students.
                                                           university. “My main goal was to have a competition between all the big research
     “It starts out as a typical classroom project,
                                                           institutions in Chicago,” he says. “I thought it would be good for them each to have
      but progresses into the real world,” says
                                                           their own competition first, and then send the best teams to the Chicago competi-
      Shrader. “By the third course, only the teams
                                                           tion.” And so Concept2Venture was born.
      with the highest potential for success will
      continue to invest in their technology.” The         Concept2Venture is UIC’s annual business plan competition. It is open to undergrad-
      continued investment means getting serious           uate and graduate students from any of UIC’s 15 colleges and schools. Prizes for the
      about acquiring the option to license from           competition total $20,000 in cash plus in-kind services from sponsoring companies.
      the OTM, incorporating the business and
      beginning to negotiate with investors.

     As many students find out, obtaining the              “All the twists and turns of the business are
     capital needed to bring a product to market
     is the hardest step in the process. As much             there and can’t be avoided, so challenges
     effort as the teams put toward their compa-
     nies, a lack of money is what keeps most                                        become solutions.”
     from moving forward. “I often try to steer
     students toward federal and state grants, but                                      David Gulley, Assistant Vice Chancellor for Research
     there is a great deal of competition for that

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                                                                                                                     Spring 2009                  of the College of Bu
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                                                                     “Since the program’s conception, some of the student teams have              of the College of Bu
                                                                                                                                                  at the University of
                                                                      been able to structure business plans that have taken them to the
                                                                      commercialization stage,” says Gulley. One of these teams was
                                                                      OrthoAccel, led by Kirk Purcell. “We took an assessment of our
                                                                      backgrounds and our strengths and formed our team around it                 The Magazine
                                                                                                                                                  for Alumni & Friend
                                                                      for the sole purpose of starting our own business,” says Purcell.           of the College of Bu
                                                                                                                                                  at the University of

                                                                                “It starts out as a typical                                       The Magazine
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                                                                                   classroom project, but
                                                                                                                                                  of the College of Bu
                                                                                                                                                  at the University of

                                                                           progresses into the real world.”
                                                                                Rod Shrader, Associate Professor of Management

                                                                     OrthoAccel’s technology is a device that came from the UIC
                                                                     College of Dentistry and decreases orthodontic treatment time.

                                                                     After taking second place in the first annual C2V and
                                                                     winning three other competitions, OrthoAccel caught the
                                                                     attention of investors. “A couple of the judges took a strong
                                                                     interest and introduced us to some angel firms,” says Purcell.
                                                                     OrthoAccel participated in the Rice Alliance for Technology
                                                                     & Entrepreneurship business plan competition in April 2006
                                                                     and had the opportunity to meet a judge who was starting a
                                                                     technology venture company. Less than a year later, OrthoAccel
The competition had its inaugural year in 2005, and the winner,      signed a merger agreement with SimplexityMD.
SanoGene Therapeutics, used it as a catalyst for success.
                                                                     “Our product was closer to market than many more invasive
“C2V was a great start for our competition success,” says Caralynn    medical devices, and we had solid patent protections,” explains
 Nowinski-Chenoweth, acting CEO of SanoGene Therapeutics, a           Purcell. “The hardest part was getting the deals made. Persistence
 biotech company founded in Technology Ventures that focuses          paid off, but patience played a big role.” Purcell remains on the
 on the use of RNA interference technology to treat incurable         board and is in regular contact with the CEO but is not involved
 cancers, specifically glioblastoma multiforme. After taking the      in the day-to-day activities of the company. OrthoAccel recently
 win at C2V, SanoGene went on to win seven more competitions          closed on a multimillion dollar deal that is funding the human
 across the country and earn $150,000.                                trials. Preliminary results have been very encouraging and are
                                                                      showing support of the technology’s claims. “Looking back, I take
“We hoped to get a win and gain some traction to start the
                                                                      pride in the fact that the company today follows the business plan
 business,” says Nowinski-Chenoweth. “After that, things took off
                                                                      we came up with that fall in class,” he says.
 quickly.” The first C2V competition took place on December 18
 and by January 3 Nowinski-Chenoweth was taking meetings with        Purcell’s story is a good example for future Technology Ventures
 venture capitalists, one of whom wanted to be the team’s mentor.    students. “It’s like a yellow brick road,” says Serio. “UIC is trying
                                                                     to set up a path for the entrepreneur to follow.” While UIC is
“Real products make all the difference for this program,” says
                                                                     organizing a plan from the inside, Serio and the IBIF are trying
 Gulley. “All the twists and turns of the business are there and
                                                                     to build an external roadmap. “Entrepreneurs in the state are
 can’t be avoided, so challenges become solutions.” Both Gulley
                                                                     being underserved,” explains Serio. The state of Illinois is not in
 and Shrader knew that the program’s success would give the
                                                                     a financial position to bolster entrepreneurship, which is why the
 university great visibility, which could lead to more opportuni-
                                                                     academic community provides such a great place to start. “The
 ties for the students.
                                                                     universities in Chicago and throughout Illinois hold a wealth

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          at the University of Illinois at Chicago                                                   

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     of talent, ideas and technology,” he says. “We need to showcase
           of the College of Business Administration                        sums to support the next stage of development. “Our goal is to
           at the University of Illinois at Chicago
     these talents and catch the attention of both the public and           raise $300,000 to complete product development, and then upon
     investors throughout the country.” Serio recognizes that the           completion, we will raise a few million to get to market which
     Midwest marketplace lacks the capital of the East and West             could be in as little as nine months,” McCoy says.
           The “Organizations such as the IBIF and the Chicago
           for Alumni & Friends                                             SanoGene recently made big strides by acquiring a partner—
           of the College of Consortium are trying to change that.
     Biomedical Business Administration                          ”
          at the University of Illinois at Chicago                          Cato Bioventures, a venture capital firm that assists growing
     Networking with these and other organizations throughout               life sciences companies. The partnership is helping to continue
     Chicago is vital to the growth and sustainability of the               research and development and raise $5 to $6 million for the
     Technology Ventures Program. “The networks are quite different         first human trials. “There is an opportunity to build critical
          The Magazine
     for each kind of technology—pharmaceuticals, engineering,
          for Alumni & Friends                                              value with small chunks of money and gradually build up,” says
          of the College of Business Administration
     nanotechnology—each have different experts, angel firms and
          at the University of Illinois at Chicago                          Nowinski-Chenoweth. With this current schedule, she hopes to
     venture capitalists,” says Shrader. “We are constantly working         start clinical trials in 2010.
     to develop relationships with individuals and businesses
                                                                            Not all teams make it to the commercialization stage. “We’ve
     throughout the city and state to provide our students with the
                                                                            had some really great teams with high-potential products,” says
     most opportunities.”
                                                                            Shrader. “But they just didn’t have the resources to continue.
     By finding a market niche and gaining exposure at competitions         When your product won’t make it to market for another 10 years,
     around the country, Serio believes that startup companies can          it gets harder to continue the fight.” Career plans, family obliga-
     begin to attract the capital they need to succeed.

                                                                                          “You have to choose a
                                                                                   technology you are willing to
                                                                                                lose sleep over.”
                                                                               Mike McCoy, Cofounder and COO of HeartSounds, Inc.

                                                                            tions and lack of capital can prevent teams or even individual
                                                                            team members from continuing. One member of SanoGene left
                                                                            the team after the C2V competition. “He received his MBA that
                                                                            December and was offered a great position elsewhere that suited
                                                                            him,” explains Nowinski-Chenoweth. “We were happy for him.”
                                                                            Her other teammate left the company in April to pursue other
                                                                            opportunities. “At this point, our resources are best spent on
     From left: Mike McCoy, Caralynn Nowinski-Chenoweth, Kirk Purcell
                                                                            the technology, so we’re taking a lean approach to management.”
                                                                            Nowinski-Chenoweth can see herself staying with the company
                                                                            until the product comes to market, even if that is a decade
     After spending months working 40-hour weeks, in addition               away, because her passion for the technology and all it promises
     to going to class and doing homework, McCoy’s schedule                 remains high.
     has relaxed slightly. “I’m working about 10 hours a week on            Bringing a company to commercialization or acquisition
     HeartSounds now, much of which is spent meeting with possible          takes perseverance and insight. “Before you even choose the
     investors,” he says. His company has reached the crucial point in      product, you have to pick good partners that you know you will
     its evolution—finding capital.                                         be compatible with,” advises McCoy. “Then you have to choose
     HeartSounds’ competition winnings have helped to sustain its           a technology that you are willing to lose sleep over. If you’re
     efforts, pay taxes, get validation in terms of intellectual property   not interested in the product, then you won’t be willing to
     and pay licensing fees to the university, but they need bigger         go the distance.”

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Business Leader of Tomorrow: Abeer Alkhatib
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                                                                                         Q: What drew you to UIC?
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                                                                                         I see UIC as a passport to career success. The         of the College of Bu
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                                                                                         faculty produces award-winning research
                                                                                         that they incorporate into the lessons in the
                                                                                         classroom. They also have career experi-
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                                                                                         By combining these two, we gain a solid                of the College of Bu
                                                                                                                                                at the University of

                                                                                         understanding of business functions, which
                                                                                         prepares us for success as business profes-
                                                                                         sionals. Also, UIC is a diverse university. I
                                                                                         encounter different languages and cultures
                                                                                         just walking across campus. This adds to my
                                                                                         knowledge, and reflects the spirit of Chicago.

                                                                                         Q: What has your experience been like
                                                                                            so far?

                                                                                         I am only taking three classes because I don’t
                                                                                         want my education to affect my work and
Q: Many students enter college directly after high school, but you have been             family obligations. I also don’t want to rush
   working for many years and are raising a family. Why did you decide to come           through my education; I want to extend it
   back to school?                                                                       and take advantage of each opportunity.
In 1995, I emigrated from Saudi Arabia, where attending university is a privilege        I love each of my classes this semester—
reserved for citizens. Since I was born in Kuwait, I was not afforded the opportunity    accounting, business communication and
to further my education, so my parents sent me to Chicago to live with my grand-         economics—because they are based on a
parents. I obtained my associate’s degree in computer science, but soon after I went     core curriculum I can apply to my job. I am
to work at my husband’s company. Getting my degree has always been in the back of        fascinated by my business writing class. We
my mind, but I was waiting for the right time. Now that my three daughters are more      use words that sizzle with clarity and impact.
independent, I decided it was time to go back to the classroom.                          The class helps us to express ideas clearly and
                                                                                         be precise in our writing. Gaining knowledge
Q: What degree are you working toward?                                                   builds self-confidence, which helps me work
                                                                                         toward the vision I want to achieve.
I am pursuing my bachelor’s degree in accounting. During the past 12 years, I have
been getting my life degree in accounting at my family’s business. My husband and        Q: How do you balance work, school and
his brother own a tax preparation franchise with more than 45 locations throughout          family life?
Illinois and Indiana, and I help to manage approximately 200 employees. Now I am
ready to gain the knowledge I need to answer the questions I have about the industry.    The key to balancing so many tasks at once is
                                                                                         commitment. If you are committed to what
Q: What more do you hope to gain from this degree that you haven’t learned from          you are doing, then you’ll be able to manage
   working in the field?                                                                 your time. People will respect your schedule
                                                                                         if they know you are dedicated. My husband
I find it fascinating that accounting principles were introduced in 1495 and haven’t
                                                                                         is cooperative and mindful of my busy
changed much in the past 500 years. The practice has evolved, but the general
                                                                                         workload, and my classmates are respectful
principles remain the same. I can take the experience I have from my job and see
                                                                                         of deadlines. It also helps that I’m not the
how it applies in the classroom. Then I can take the principles I am learning in class
                                                                                         only one in the house with homework. I
and apply them in my work. I enjoy interacting with my professors who show me
                                                                                         always ask my girls, “Did you finish your
how best to combine the curriculum and my professional life. This will help me move
                                                                                         homework?” and now they say back, “Did
on to obtain my master’s degree, sit for the CPA exam and one day possibly open my
                                                                                         you do yours?”
own CPA practice.

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         Spring 2009
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          at the University of Illinois at Chicago                                                 

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     Faculty Spotlight | Jelena Spanjol, Assistant Professor of Marketing
          of the College of Business Administration
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     of Innovation

              n 1968, Spencer Silver, a 3M scientist, discovered a type of adhesive that did not stick as well
              as other glues. Rather than disregard the discovery, Silver held seminars to introduce it to
              colleagues, hoping someone would find a use for it. Six years later, 3M employee Art Fry sat in
              church distracted by the numerous bookmarks in his hymnal and came up with the idea for
              Post-it Notes. Today, Post-it Notes are a household name in more than 800 countries.

     While this is not the traditional way to develop new products,       Breakthrough innovations involve a higher risk for the firm,
     the story illustrates the concept of breakthrough innovation,        so fewer companies are willing to invest in them. “Research
     which Jelena Spanjol, assistant professor of marketing, has          indicates that a company must be willing to endanger its own
     been studying for the last few years. “Growth is first in the list   competencies to develop new breakthroughs,” explains Spanjol.
     of strategic objectives for companies today,” says Spanjol. “And     “They must be willing to put their bread and butter at risk, and
     innovation is regarded as the engine that fuels growth.”             I wanted to determine if it was worth it.”

     In her latest research, Spanjol, whose expertise includes            She found that breakthrough innovation is associated with
     marketing strategy, product market dynamics and managerial           increases in both normal profits and economic rent, which are
     decision making, has identified some interesting trends related to   profits earned above those needed for compensation of risk and
     product innovation. Recently, she used data on more than 20,000      time. On average, each breakthrough innovation is associated
     new products from consumer packaged goods industries to              with an increase in firm value of $4.2 million, and risk is offset
     determine the relationship between innovation and firm value.        by above-normal stock returns. On the other hand, incremental
                                                                          innovation is associated with increases in normal profits only
     Spanjol separates innovation into two categories—breakthrough
                                                                          and has no impact on firm risk or economic rent.
     and incremental. Breakthrough innovations are defined as
     new products that are the first to bring novel and significant       Companies that invest in breakthrough technology are seen as
     consumer benefits to the market. These innovations include           innovators. Driven by technology, they look inward for product
     everything from medical devices to new features for existing         ideas. Noninnovators search the marketplace significantly more
     products such as the first detergent proven to remove odor from      for product ideas and are primarily driven by either a narrower
     laundry. Incremental innovations are more common occur-              focus on consumer research or competitors’ actions. These firms
     rences. They include minor new features on mobile phones or          tend to produce a larger number of product ideas than their
     extensions of a product line such as a new flavor of cereal.         technology-driven counterparts but less novel ones.

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Spanjol’s research shows a key difference between innovators and   tive company, also has “20 percent time” for its engineers, which
noninnovators lies in how firms view the marketplace. “What do     means that they can spend the equivalent of one day a week
they focus on? How do firms interpret and use their markets? I     working on projects that are not part of their job description.
looked at how much they invested in technology and the priority    The expectation is that this strategy will lead to the creation of
they place on technological development.”                          new programs and features.

                                                                   Deciding whether a company will take on the title of innovator
                                                                   comes from the top, but must be pervasive throughout the
        “Research indicates that a                                 company. “CEOs may be innovative, but this has to cross over
                                                                   to the day-to-day middle managers,” Spanjol says. “They need
      company must be willing to                                   an environment that stresses achieving the positives rather than
                                                                   avoiding the negatives.”
   endanger its own competencies                                   Spanjol’s research shows that perceptions of the company

   to develop new breakthroughs.”                                  as innovator are not always clear. “Sometimes the different
                                                                   functions will disagree on which strategy the company should
                                                                   employ.” This disconnect is a problem that Spanjol has intro-
                                                                   duced into her MBA courses, and she finds that many students
For example, Art Fry would have never worked with Dr. Silver’s     recognized this challenge in their own companies. She and her
new adhesive discovery if not for 3M’s “bootlegging policy.” To    students weigh the pros and cons of each strategy to determine
foster innovation, 3M encourages technical staff members to        how they affect the output of innovations and their management.
spend up to 15 percent of their time on projects of their own      “My hope is that they bring this back to their companies and
choosing. Google, rated Fortune magazine’s second most innova-     experience the real-world application of this research.”
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                                                  The Magazine                              Spring 2009 | Volume 2 – Number 1
                                                  for Alumni & Friends
                                                  of the College of Business Administration
                                                  at the University of Illinois at Chicago

                                                                                         The UIC College of Business
                                                                                         Administration creates new
                                                                                         knowledge, business, value
                                                                                         and leaders for Chicago and
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