Chicago: Building an Ecosystem,

Driving Success

Fred Hoch, PresidentIllinois Technology Association (ITA)March 23, 2010

Tier 1: Silicon Valley, Boston, Seattle

Tier 2: San Diego, Austin, North Carolina, Virginia, Portland and a host of other “tech” cities

Where does Chicago fit?

How does Chicago compare in the US?

Illinois Technology IndustryBy the Numbers

4500 Information Technology Companies300,000 Workers$17 Billion in SalariesVendor and Customer Workforce (Technology Companies and IT

Departments)Ranked in top 5 in IT employment in US Huge operations of national players (e.g. IBM, Microsoft)

However…- No One Talked to One Another – Lots of technology silos

- No One Thinks of Chicago as a Technology Center

- Government didn’t care

- There was no Money

- Big Companies didn’t know small companies

But it wasn’t until recently that we began to build an

ECOSYSTEM out of necessity to change all that!

How did we get ready to build a Top Technology Center?

1. Inventory

Financial ServicesHealthcareTravelReal Estate/ConstructionManufacturingTransportation and LogisticsLocation Based ServicesGamingRetailMedia/AdvertisingBusiness Services

Top Verticals in Illinois Information Technology

What is Chicago Technology?

In verticals such as financial services, manufacturing, real estate, travel and

healthcare, Illinois is home to the companies leading the digital business

revolution.

We are not Facebook and Google – We are not cool!

How do you get ready to build a Top Technology Center?

1. Inventory2. Be Prepared for Opportunity

Move to Electronic TradingDemise of MotorolaDigitization of BusinessHigh Cost of Healthcare

Challenges or Opportunities?

How do you get ready to build a Top Technology Center?

1. Inventory2. Be Prepared for Opportunity3. PASSION

Who has the passion?

Not the incumbents, but those who will be leaders in 10, 20 years!

How do you Build a Top Technology Center?

1. Connect

Connect: FORCE THEM TOGETHER!Bring together all part of the ecosystem: big companies, small companies, different sectors, industry, academia, lawyers, money, CEOs, HR, CTOs, Marketing and on and on…

• Focus on Private Sector• Get their heads up• Buy Beer

How do you Build a Top Technology Center?

1. Connect2. Collaborate

Collaborate: Be a Nexus!Start to find ways to have them work on efforts of self interest and community passion.

•NOT only Events – Constant Hum•Meet Opportunities with Insight•Business Development•Shared Goals•Start with Small Companies (Grassroots)

How do you Build a Top Technology Center?

1. Connect2. Collaborate3. Communicate

Communicate: Bullhorn It!Get the word (reality AND opportunity) out to everyone – not just tech cluster

•Business Leaders•Other Industries•Government Officials•Mom / Dad

How do you Build a Top Technology Center?

1. Connect2. Collaborate3. Communicate4. Collegiate

Collegiate: Open the Ivory Tower

Find ways to break down the barriers with Universities

•Figure out what they are doing•Drive collaboration with Industry – make them work

•Get students involved in companies

How do you Build a Top Technology Center?

1. Connect2. Collaborate3. Communicate4. Collegiate5. Coerce

CoerceGet Government Officials off the Dime!

•First, get them out of the way•Second, tell them where to invest•Third, let your wins be theirs

How do you Build a Top Technology Center?

1. Connect2. Collaborate3. Communicate4. Collegiate5. Coerce6. Capitalize

Capitalize It: Raid the Piggy Bank

Find the Money•Not Just “VCs”•Industry Folks•Successful Entrepreneurs•Not Primarily Government

How do you Build a Top Technology Center?

1. Connect2. Collaborate3. Communicate4. Collegiate5. Coerce6. Capitalize

Illinois Technology AssociationBy the Numbers

5 Years Old (last week)Private Sector Driven100 to 700 Corporate Members$150K to $2M in Revenue22K sq ft TechNexus Clubhouse

40 companies incubated, 2000 executives a month200 Connections a Month160 Events a Year Established a Foundation focused on Talent

Is your region the technology center of the next 25 years?