June 2013 In Business Magazine by InMedia

JUNE 2013

Special Section: Top Technology Business Services Companies

Arizona Is Fertile Ground for New Tech Hub

power Lunch by the numbers business Calendar $4.95 INBUSINESSMAG.COM

This Issue Tempe Chamber of Commerce Arizona Technology Council

As an employer, you face challenges At SCF Arizona our caring, experienced team of workers’ compensation experts can help you keep workers safe while meeting your responsibilities as an Arizona employer.  Web services and tools to manage your account  Statewide work comp medical

providers and facilities  Friendly, efficient and

caring claims service As your business partner, we care about our customers. We care about your business. Visit scfaz.com and put Arizona businesses choice for workers’ comp insurance to work for you.

602.631.2600 | Get a Quote 1.888.706.4070 | En español 602.631.2302 | scfaz.com

In Arizona, we kick the future into high gear. So do our talented professionals, turning ideas into innovation, driving corporate expansion. Our state is in the top tier for job growth. We’re a Best State for Business. We have the country’s largest public university graduating the finest minds in high-demand disciplines. Arizona’s undisputed top-line priority is supporting and backing business. Icons Intel, Avnet, Boeing, Mayo Clinic, Banner, General Dynamics – and thousands of others – thrive here. Our aggressive pro-business policies and pro-growth legislation continue to lead the nation. Simply put, our state leads the pack. If you want to expand, we can help. Because when it comes to success, Arizona is all business.

ARIZONA KNOW HOW. JOIN US.

Ar i zonaKnowHow.c o m 866. 306. 7542

~ How do you get to be the leader of the other 49?

KNO W

I nnova te .

Ad v a n c e .

H O W

S u c c e e d .

A Jean-Georges Vongerichten Creation

June 2013

www.inbusinessmag.com In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce. Partner Organizations

Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 • www.aztechcouncil.org

Located at The Phoenician 6000 E. Camelback Road, Scottsdale, AZ 85251 (480) 214-8000

Lynda Bishop, President NAWBO Phoenix Metro Chapter (602) 772-4985 • www.nawbophx.org

www.jgsteakhousescottsdale.com Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 • www.scottsdalechamber.com

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

Associate Partners Ahwatukee Foothills Chamber of Commerce www. ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org Glendale Chamber of Commerce www.glendaleazchamber.org Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org

J u n e 2013

inbusine ssmag.com

NORTHCENTRAL UNIVERSITY

BUSINESS AT A HIGHER DEGREE THE INDIVIDUALIZED FEEDBACK YOU NEED TO SUCCEED

“At Northcentral, we prepare

Our One-to-One faculty mentored approach (one student paired with one faculty member) means your classroom size is one. You’ll be personally educated by

students to become leaders, and the additional skill sets acquired through an advanced degree can help take your career to the next level.” A. Lee Smith, Ph.D Dean, School of Business and Technology Management

highly-credentialed faculty, and 100% of our graduate faculty hold Doctoral degrees.

✓ ONE-TO-ONE TEACHING MODEL

✓ REGIONALLY ACCREDITED

ct rina p er do e

i er xp

ent ia m

In addition to NCU’s regional accreditation from the HLC, our business programs in the School of Business and Technology Management are accredited by the Accreditation Council for Business.

✓ NO PHYSICAL RESIDENCY

In today’s competitive marketplace, business and technology professionals are constantly called upon to prove they have the ability to help their organization run more efficiently no matter their field or area of expertise. Northcentral University’s School of Business and Technology Management has adopted a similar results-oriented approach, delivering rigorous online MBA, DBA and PhD programs designed to provide high-level training that can help you solve problems, improve processes and make informed decisions in your field as you develop the business acumen that today’s organizations and clients demand.

u nu s a d

✓ 100% DOCTORAL FACULTY

NORTHCENTRAL UNIVERSITY DELIVERS PROFESSIONALLY RELEVANT, ONLINE MBA, DBA AND PHD DEGREE PROGRAMS. FOR MORE INFORMATION VISIT WWW.NCU.EDU/IB OR CALL 855.791.4324 Northcentral University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools (HLC) 230 South LaSalle Street, Suite 7-500, Chicago, IL 60604, 1.800.621.7440, www.ncahlc.org). Northcentral’s business programs in the School of Business and Technology Management are accredited by the Accreditation Council for Business Schools and Programs (ACBSP). Northcentral University strives to enable students to make informed choices about their academic program selection by making disclosures to prospective students in a clear, timely, and meaningful way. Visit www.ncu.edu/GE for more information. Active programs and specializations may vary. Please contact NCU for current program and specialization offerings.

Contents

IN BuSINESS MAGAZINE

JUNE 2013

Special Section: Top Technology Business Services Companies

June 2013

TECHNOLOGY

Arizona Is Fertile Ground for New Tech Hub

JuNE 2013 • inbusinessmag.com

power Lunch by the numbers business Calendar $4.95 INBUSINESSMAG.COM

This Issue Tempe Chamber of Commerce Arizona Technology Council

Is Our Technology Drought Over?

We lost the lead 40 years ago, but this time around we’re doing everything right. Business and policy leaders share with Eric Jay Toll the actions and advantages that are making Arizona fertile ground to be the new tech hub. Departments

11 Guest Editor

Features

Charles Vermillion, CEO of OneNeck IT Services, introduces the “Technology” issue.

20 Equity-raising Opportunity Exists for

Small Businesses

14 Briefs

“Arizona Admin Serves,” “IRS is Your Partner in Business?” “AZ TechCelerator Surprises,” “Demographics Drive Housing Market,” “Contest is Win for Small Business,” “Cashing In on the ‘Internet of Things,’” “Microbusiness Blossoms at Phoenix Public Market” and “ProKure Revolutionizes Commercial Cleaning”

28 Company Culture: Framework for

Success

Build a framework to successfully build a culture, and the culture can provide a framework for the business’s success, says Dr. David “Doc” Vik. Meet in the b oard ect o room n the . fairw ay.

Conn

Prese

nts

39 Technology

Omn i und ersta nds

A spotlight on the industry and leading tech business services companies ni Hot els &

Resort s

Busine

nt and 3

“enga

analys

ts return

Arizon

Partner section

– Sept. 2O13

effective

chamber.org

na Tech nology

Council:

The Voic e

nolog

of the Technolo

gy Indu stry

Presid

ent’s

y Repo

Messa

June – Sept. 2O13 aztechcoun cil.org

You’v chang e no doubt ing the heard the maxim down world town about Phoen one perso than n at ix recen 1,500 high I can tly there a time. In world schoo tell you all at were is no l stude that manag once. small nts chang more They feat as were stude ing the we host ing our own invite the nts d to showc best of fair an avera arrang from across Intern e for ge of the state ase their the best who ationa more 1,100 a variet were each projec than l Scienc These y year and 400 volun ts at the e and young the increaof disciplines. Engin teer judges innov Intel eering Why sed need ators in the do we from Fair. came for areas do it? from With more and mathe of scienc students to 70 count than One Renai earn degre e, techn ries, matic award and territo region ology, s (STEM 2 N. Centra ssance es s stude s engine ), our nts for resear the result ries to share l Ave., Square Phoen fair promo ering ch. STEM ix, Arizon Suite s of their Phone 750 explor tes and of youth AzSEF exists indep : 602-34 a 85004 ation enden solely in Fax: 602-34 throu 3-8324 t resear for intera Arizona they comp by provid for the better gh 3-8330 info@a ctions etedTfor ch as of ztechc than ment ing oppor with ideas, e m $3 millio more pe ouncil profes career tunitie .org sional n in prizesC h a m bBut explor Tucson It was er ad s s, prese ation va ns Ta . make there’ Offic The Unive the Arizo fitting that more. g e Helpin and projec ntation such na Techn rsity e Scienc will rewar discoveries Counc g young t analysis. of Arizo e ology and il playe Steven 9040 peopl na Techn d us all so early S. them in this d a role Preside G. Zylstr for in their e (near Rita Road, ology Park head comp I-10 and to Arizo years to Suite Arizona nt and CEO, a, etition lives after additi Tucso 1150 Techno high Rita . In na’s and come. As on n, schoo logy Council most Phone Arizona Road) resea as a membto my servin other l, they of 85747 rch : 520-38 unive g and devel get the Fax: 520-38 er of rsities 2-3281 local the fair’s can impac chanc senio arran 2-3299 tucson e to gain r grand t mank opment skills geme decid comm @azte nts ind. Even award Arizo ing to that truly ittee, chcou na Scien winne the 13 ncil.or One last stay in Arizo better, many rs of g (AZSE ce and the recen F) na as thing: Engin are to have profes eering Techn staged annua t fun! After The fairs siona ology Fair lly by kids. offer the intern Counc And speak all, the the Arizo the chancls. comp at the ationa il Foundation na ing for e etitor fairs, l comp all of s went it’s our know etition us who are still on to Steve ing chanc . n volun e have be marke we played Preside G. Zylstra teer fun a part nt and d by CEO in caree while succe There ss. rs that Debor Leigh org/sp ’s always ah Zack Golds will Managi Senior room tein onsor for more. ship.s Membe Director, busin Program ng Directo html rship r, ess can s and Go to Service Don Events azsef. year’s get involv to find out s Executi Ruedy intern how your Jennif ed. If Anne ve Emeritu ationa Directo to er you Phoen Rody Tucson r, Membe Ayres misse s, ix in 2016 l fair, take Office d this Finance Director, rship oppor Service and Adminis and 2019 heart. It tuniti s return Justin es to Alex is availa tration along s volun Directo Rodriguez Executi Williams with Merry ble at teer. r, Tucson ve Emeritu more Lake More www. And if Merre Tucson Office societ inform s, Directo ll Office Marketi yforsc ation one life, you get the r, Don Rodrig ng and ience Jerem chanc you can Commu .org. y Baben nication be a winne e to chang Editor uez dure, e even Ph.D. Directo r, too. Arizona r, Ron SciTech 2013 AzSEF Festiva Executi Schott l ve Emeritu winne Doug Phoeni rs who Sejal Aggarw advanced to Reid x Office s,

Who

Te m p e

If outre ach is ways one of to en the mo gage , wh st cos tly The ans y contin ue to wer is do it? ROE.

Chamb

We Ar e

The Arizon is Arizon a Techn associ a’s premie ology Counc ation r trade il techno for scienc logy compa e and nies.

e r. o r g

Phoenix

Office

Manage

ment

chco

uncil

.org

Counterfeit software can hit businesses with big costs in money and time. Plus: Key economic indicators provide a sense of the health of the local economy.

View from the top looks at how Doug Bruhnke is building a network of global opportunities for Valley business.

29 Books

New releases focus on building a motivated work force.

34 Assets

2014 BMW M6 Convertible Plus: Training for leadership success

36 Power Lunch

O.H.S.O. Eatery and nanoBrewery Plus: Cool and healthy choices for beating the heat

66 Roundtable

There are lessons for businesses across all sectors in the rise and fall of yesterday’s IT leaders. On The Agenda

31 Spotlight

Cybersecurity program Trade with Mexico presentation

32 Calendar

Business events throughout the Valley

and Staf

Arizona Director, Innovati on Institute

Intel

al • Kelsey ISEF Jacob Tejas Dharm Cabrejas Barter • Paula • Ivy Beatty araj Aditya • Khurana • Anvita Gupta Chang • • Nitish • Aakas Peela Manav h Jain • Sevak • • Ryan Sarah Sakha • Silva ArizO

J u n e 2013

measure

a Tech

Arizo

In This Issue

Celebr ating 10 Years… SciTec Page 2 h Festiv al…Pa ge 4 Legislative Action …Pag e6

azte

Tools to

specifi

• tempe

is to ed from The trouble c activities ging” time spent quantify – a click with potent or having , howev and are rate is two-w er, arises ial and ay one examp instea Typica when loyal custom conversation lly, this In person d interacting le of availab we s can be compa ers online in person are no longer , how conve le analyt seen nies do you . rsation . comm in action ics. on Faceb soliciting determ unicat or your one reflect by ine if ing online ook, Twitter feedback vision? someo upon upon is that Rarely led to ne is , Linked from postin conten it is fairly in the engag a signific what introdu gs t In, etc., norma audien ed with simple One outstagenerated ction ant of whate based l course ce is you, your by the to determ interes ver experi business oppor led to what nding of busine compa simply ine may be ted in benefi introdu ence gaugin tunity. ss does by soliciti what your t to social ny itself. undue ction is top g their that inevita . of mind, Unfortunatel ng feedba level of media Nonpr y, we subse bly ofits typica partici ck or tend to quentl marke pation lly engag y giving think ting: outrea with you credit ch. Outrea e in the most where it ch is expen very expen sive form of netwo sive to condu rk ct due to the

Commerce Council

AdvAnT AgE

engageme

ss &By Melody Johns Decisio on, Vice CyberT n • President, Memb rails ership • Infu IT Par Devel opme sionsoReturn on tners nt, Tempe ft phrase buzz Cham ement • mo • engag ber of (ROE) biMana The purpo being Comm is yet spurre erce d by social another gebenefi se of an ROE the after media

49 Tempe Chamber of 57 Arizona Technology

return on

Profiles Techno of the Lead ing logy Bu Se TEMP sines rvice E CH s s AM CoBE mpa R nie June 2013 s

18 By the Numbers 19 Trickle Up

Top Te ch

Noted business leaders Trish Bear, Douglas L. Davis and Brad Jannenga respond to IBM’s burning business question of the month.

Special Sections

We spotlight UMOM and the Valley of the Sun YMCA.

12 Feedback

Attorneys Bahar Schippel and William A. Kastin discuss qualified small business stock and a soon-to-sunset tax provision by which business owners may entice investors.

30 Nonprofit

nA T ech

nOlO

gy r epO

inbusine ssmag.com

Work here, there, anywhere — Regus workspace solutions

Get 2 months free* on a Regus Office or Virtual Office. Regus provides innovative workspace solutions that give you everything you need to work your way. No lease. No long-term commitments. No worries. • Fully furnished and equipped offices • A receptionist to answer your calls • On-site IT support • Access to professional meeting rooms • State-of-the-art video communications studios • Access to over 1,500 business lounges and cafes worldwide

Visit one of our 15 locations throughout the Phoenix area .

Call 1-800- OFFICES or visit regus.com. *Terms and conditions apply. Offer not valid in all Regus locations. Twelve-month term required. Offer applies to initial term of agreement and may not be combined with other offers. Promotion available to new customers only. Offer expires 12/31/13.

inbusine ssmag.com

J u n e 2013

June 2013 • Vol. 4, No. 6

passionate about your profitability Publisher Rick McCartney

At Holmes Murphy, we think providing you with innovative answers

Editor RaeAnne Marsh

to the ever-increasing challenge of rising healthcare costs is one

Art Director Benjamin Little

Contributing Writers Gremlyn Bradley-Waddell Mike Hunter William A. Kastin Don Rodriguez Bahar Schippel Eric Jay Toll David “Doc” Vik, D.C. Ernest von Simson

of the most important things we can do to affect your company. That’s why we take the time to get to know your company’s challenges and consult with you to provide the highest-quality, lowest-cost solutions — tailored especially for your business. If you are looking for an advisor who understands the complexities of Employee Benefits and a partner who helps you develop the right financial solutions, call Holmes Murphy — the nation’s 26th-largest* broker.

Photographer-at-large Dan Vermillion Advertising

* Business Insurance, July 2012

Cash flow solutions to help your business grow. “My business runs better now that I’m not chasing invoices.” Jay, Hallmark Global Tech.

Visit www.bibbyusa.com or call 877-88-BIBBY

J u n e 2013

Operations Louise Ferrari

lferrari@inmediacompany.com

Senior L ouise Ferrari Account Executives lferrari@inmediacompany.com

Cami Shore

cshore@inmediacompany.com

Greg Stiles

gstiles@inmediacompany.com

More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

President & CEO Rick McCartney Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little Financial Manager Donna C. Mitchell, CPA Accounting Diane Meyer Office Manager Matthew D. Whitmire

Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 4, No. 6. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2013 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

inbusine ssmag.com

Charles Vermillion, CEO, OneNeck IT Services Corp.

Guest Editor

Technology Outside the Box

Chuck Vermillion is CEO and founder of OneNeck® IT Services Corporation and is responsible for establishing the strategic vision for the company. He launched the company in 1997, and has been the driving force behind OneNeck’s continued success as an IT industry leader. Vermillion is chairman emeritus of the Arizona Technology Council. He has been honored with the Governor’s Celebration of Innovation Ed Denison Business Leader of the Year Award as well as numerous other honors and awards. With more than 28 years of experience providing information technology consulting, Vermillion is and will continue to be an outspoken advocate for the IT industry in Arizona.

Technology is sometimes portrayed in the media for its man-vs-machine role in workplace job losses. But it is also touted as an economic growth sector — in fact, it is one of the areas Arizona’s leaders have identified as key to the state’s development of a sustainable, strong, high-wage-based economy. A number of organizations, including the Arizona Technology Council, are focusing on developing the State of Arizona into a Technology Titan. And we’re beginning to see results. In the most recent issue of Fast Company, Arizona was named the No. 1 state for entrepreneurial activity, the No. 2 state for percentage growth in entrepreneurial activity, and the No. 4 state overall for innovation. It doesn’t stop there. Entrepreneur magazine recently ranked Arizona as one of the top 10 states to start a business due to programs such as the Arizona Innovation Challenge and tax credits for angel investments, as well as others. It’s clear business and government have teamed together to make Arizona a “technology- and business-friendly environment.” In his cover story “Is Our Technology Drought Over?” Eric Jay Toll looks at the Silicon Desert we once were and how lack of diversification actually undermined the concept, and then comes forward to look at the breadth of our currently evolving technology community. With interviews from Sandra Watson at the Arizona Commerce Authority, Barry Broome at the Greater Phoenix Economic Council, mayors of Valley cities and other business leaders, Toll examines how we are positioning ourselves to generate future growth. This issue also offers, in a “Finance” feature, an alert to small-business owners on how to take advantage of a provision in the American Taxpayer Relief Act of 2012 to avoid paying federal taxes on gains from selling qualified small business stock. Snell & Wilmer attorneys Bahar Schippel and Bill Kastin share strategies that enable small businesses to raise equity through this provision that is more commonly used by investors, but note the provision sunsets the end of this year. In the “Roundtable” feature for this technology issue of In Business Magazine, Ernest von Simson, a veteran IT industry researcher, discusses the rise and fall of yesterday’s IT leaders and the important lessons today’s companies can draw from them in order to remain strong and grow. And this issue includes a special section on the Valley’s technology sector, with profiles on leaders in selected areas of the broad spectrum. It can be argued that almost everything in today’s business world is connected to technology, and articles throughout this issue of In Business Magazine highlight that reach. However, although technology is the main thrust this month, the publication continues to provide diverse content focused on building business in our community. Welcome to the June issue of In Business Magazine. Sincerely,

Charles Vermillion Chief Executive Officer OneNeck IT Services Corp.

Tech Hub What is Arizona known for? It is increasingly difficult to answer that question. Tourism and real estate have helped to build our economy in recent years — and have been the root of our vulnerabilities as well. Technology, on the other hand, is something that we can capture as our own and build an industry here that can be known throughout the world. As you’ll read in our cover story, we once began this effort in the 1970s with some success, only to have lost it. Many local organizations and economic groups are working to bring back the possibilities in tech and even go beyond

inbusine ssmag.com

silicon products and pinpoint newer technologies in the areas of biotechnology, aerospace, automotive, software, Web applications, data centers and more. Thank you to Chuck Vermillion for his leadership through his company, OneNeck, and the various organizations he is involved in to ensure Arizona is synonymous with technology once more. Efforts by local pioneers and those newly vested in business here are quickly giving Arizona its due distinction in technology. —Rick McCartney, Publisher

Connect with us: Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com

J u n e 2013

Feedback

Valley Leaders Sound Off

Executives Answer

Your company’s field of technology is recognized as one of the state’s important clusters. How is your company’s presence helping us become a technology capital?

Douglas L. Davis

Trish Bear

Vice President, Intel General Manager, Intel’s Arizona Fab/ Manufacturing Site Sector: Semiconductor Process Technology, Manufacturing

President and CEO I-ology Sector: Internet Technology Since 1998, I-ology has been focused on transforming Arizona-based businesses through developing robust Web technologies as well as supporting the expanding role our technology community plays in the Arizona economy. I-ology believes passionately in supporting Arizona as an emerging technology capital in three fundamental ways: For more than 15 years, we have been supporting community organizations, such as the Arizona Technology Council and American Marketing Association, in moving technology legislation forward. We are also concerned with technology branding — it’s critical that Arizona continues to refine and portray a sophisticated state image in the recruitment of technology talent. I-ology continues to promote to out-of-state talent that we have not only lucrative jobs to offer but also a pretty incredible lifestyle. Third is our ongoing support of STEM (Science, Technology, Engineering and Math) education, which is very important because it continues to promote not only critical jobs for the future but also provides our future work force with the necessary advanced education. We are confident technology will continue to be a driving force in our economic growth.

Intel is building the most complex machines ever built by humans — and we’re doing that in our wafer fabrication facilities in Chandler. Our newest technology is built using tri-gate or 3-dimensional transistors, which is the most advanced semiconductor process technology in the industry. The presence of these factories and technologies in the Chandler area creates high-value engineering, technician and support jobs that are valuable to our local economies. And the many suppliers that are essential to these operations are also developing their technologies, infrastructures and capabilities accordingly. This nurtures a local hightechnology ecosystem as a corresponding attribute to our expanding “technology capital.” In addition, Intel has a strong relationship with Arizona State University and hires a large number of graduates from several engineering, science, supply line and finance disciplines. The collaboration with partner companies, universities and state, county and city governments is key to the continued growth and vitality of Intel in Arizona. Intel intel.com

I-ology, Inc. — the Science of the Internet i-ology.com

A recipient of numerous industry awards and an active community involvement leader, Trish Bear is an established and well-recognized veteran of the Web industry. Under her guidance, I-ology has experienced exponential growth. I-ology creates Web-based business tools to streamline a company’s operations and has been recognized multiple times for achievements and distinctions in growth and excellence from industry leaders, publications and organizations.

Brad Jannenga President WebPT Sector: Computer Software Technology, Healthcare Through WebPT, we’re creating an ecosystem larger than ourselves — one that benefits our company, our employees, the Arizona tech scene and the Valley as a whole. Not only have we launched our extremely fast-growing start-up in Phoenix — which means we’re providing jobs in Arizona (more than 100 in the last year) — but we’re devoted to keeping the company here. That means as we grow we’ll continue to help the local economy.

J u n e 2013

As corporate VP and general manager of Arizona Fab/Sort Manufacturing within Intel’s Technology and Manufacturing Group, Doug Davis is responsible for all aspects of the Arizona wafer factory operations. He has an extensive background in product development, business management and engineering leadership, and has led Intel’s businesses in areas such as embedded, communications, industrial automation and tablets. He holds a bachelor’s degree in Electrical Engineering and an MBA.

And we’re not your average company. We do things differently, like focus on culture and collaboration — and community. This is what has allowed us to grow so quickly, attract rock-star talent and generate interest from top-tier national investors, which in turn brings attention to the state and other Arizona-based companies. And that’s the ultimate goal. That’s why we put so much emphasis on mentoring not only our own employees but also other entrepreneurs in the Valley. We don’t want to succeed alone; it will take all of us growing, learning and improving together to really make Arizona a technology capital. WebPT webpt.com

In 2008, Brad Jannenga and his wife, Heidi, a practicing physical therapist, created WebPT, an EMR for the rehab community. Brad now serves as president and CTO as well as WebPT’s idea man. In 2009, the Arizona Republic named Brad Jannenga one of the “Top Entrepreneurs in Arizona,” and in 2012, the Phoenix Business Journal honored him as one of their “Top 40 Under 40.”

inbusine ssmag.com

the freshest seafood s the finest prime steaks s exquisite wines genuine service s live entertainment 7 nights a week s private dining

mastro’s steakhouse

8852 pinnacle peak road, scottsdale 480.585.9500

mastro’s city hall steakhouse 6991 east camelback road, scottsdale 480.941.4700

mastro’s ocean club

15045 north kierland blvd., scottsdale 480.443.8555

www.mastrosrestaurants.com

inbusine ssmag.com

J u n e 2013

Briefs

Quick and to the Point

Bytes Arizona Admin Serves Few know the Arizona Department of Administration or that it has a website for Arizona State jobs, procurement with the State and other benefits for individuals and businesses. The site will also inform on public meetings and notices that azdoa.gov/online_services.asp

IRS is Your Partner in Business? The IRS is exploring opportunities to partner with organizations to help entrepreneurs in Arizona thrive in their business ventures, especially new sole proprietors. By providing links and downloadable PDFs, it gives proprietors a site to find information through tax publications, videos and social media. It also provides specific resource information in PDF format for recordkeeping and understanding gross business receipts issues. irs.gov

AZ TechCelerator Surprises The City of Surprise is a leader in mentoring of new and innovative business with its AZ TechCelerator program. Mentorships, discounted space and a Citysupported drive to succeed are helping micro to small business. Apply online. aztechcelerator.com/apply

Demographics Drive Housing Market

Lifestyle-inspired design change is the approach Maracay Homes is taking to make its new homes stand out in the re-emerging housing market. Among the features in its Arizona Collection are an “owner’s entry” from the garage, with cubbies for personal items and a technology station for docking electronic devices, that displaces the laundry room to a new location behind the master closet, and outdoor living rooms that expand everyday living space beyond the four walls. These homes, whose low $200,000s starting price puts them in range for first-time homebuyers, are debuting in several new communities around the Valley this year. Demographics dictate for other homebuilders, as the rebounding of the Valley’s housing market is showing strength at opposite ends of the spectrum. Communities from Vi and Plaza Companies — Vi at Silverstone and Vi at Grayhawk, both in Scottsdale — target those aged 55 and older, a demographic gaining steadily

increasing interest from builders and developers, according to a new report from the National Association of Home Builders. The communities offer different types of housing to serve residents as their needs change — traditional single-family homes, assisted-living residences and a skilled nursing home. Looking to younger families, Texas homebuilder Gehan Homes is opening its first community in Arizona, Hacienda at Greer Ranch, in Surprise. This introduces Gehan’s new series of homes targeting the move-up homebuyer. “Our opening in Greer Ranch is a vote of confidence in the Phoenix market, which has clearly rebounded and where we see positive signs for the longer-term health of the housing market,” says Tim Gehan, CEO of Gehan Homes. The homebuilder will build in three additional communities Valley-wide this year. —RaeAnne Marsh Gehan Homes gehanhomes.com Maracay Homes maracayhomes.com Vi viliving.com/communities

Visualize This

Seeing Is Believing Video Contest is Win for Small Business

The Arizona Small Business Association

announced the winner for its amAZing® Small Business Video Contest at the 20th Annual Enterprise Business Awards Luncheon last

Go online for more!

month at The Phoenician. All In The Present won first place, along with $500 cash. The other finalists were Kaptured Photography,

Visit our “Briefs” link online.

J u n e 2013

SWAT Fitness and Benjamin Franklin Plumbing. http://bitly.com/20abvc

inbusine ssmag.com

Photo courtesy of Maracay Homes

pertain to Arizonans.

Briefs

Quick and to the Point

Cashing In on the ‘Internet of Things’

Presence, a recently launched smartphone application from Mesa-based People Power, is the first free wireless Web camera made by recycling old smartphones or mobile devices as cameras, which can be used as monitoring devices. Users include the City of Globe’s school district, which uses smartphones donated by the residents as an affordable measure to maintain security monitoring after-hours. People Power is counting on the “free-mium” business model to reach users and plans to monetize the endeavor by connecting with providers of the various devices, explains David Moss, who cofounded the company with Gene Wang. For the technology entrepreneurs, it’s all about understanding “the value of what the ‘Internet of Things’ — a network of physical things connected to an individual through his or her smartphone — can do,” Moss says. “To find value in this space, people have to buy a ‘thing’ and [make sure it’s] compatible with other ‘things’ they might be controlling from their smartphone or tablet.” Moss says he and Wang wanted, instead, to allow people to use what they already owned. They built the Presence app on a cloud platform that enables different technologies to talk to each other in an open source manner. They also took security to a level one step beyond that of a banking connection, Moss notes. “It’s not just you authenticating who you’re talking to, but back the other way — to authenticate the device itself that’s talking to the server.” —RaeAnne Marsh

Micro Business Blossoms at Phoenix Public Market

Last month, the Phoenix Public Market celebrated the opening of the Phoenix Public Market Café by St. Francis owner Aaron Chamberlin, which re-energizes space that had been empty for a year. Many of the market’s micro businesses will also directly benefit by selling products to the new restaurant. As a venue, the Phoenix Public Market contributes strong support to the local economy in the realm of small business — particularly micro businesses, which “represent a staggering 99.7 percent of all employer firms in the country,” according to Dan Klocke, vice president of development with the Downtown Phoenix Partnership, quoting data from microexec.com. The Phoenix Public Market provides a low-cost opportunity for a business to promote products, establish revenue and expand. Noting the low-risk environment allows business owners to “learn, perhaps make a few mistakes, and grow,” Klocke says, “Today, 45 vendors who started at the Phoenix Public Market now have products that can be found in major grocery stores and restaurants throughout the Valley.” Klocke names the City of Phoenix and Bank of America as among groups whose support has enabled the market to “hold firm in our mission to create opportunities for small businesses that may not be able to open storefronts because of the cost.” To date, the market’s 100-plus micro businesses have sold more than $7 million in local products. —RaeAnne Marsh Downtown Phoenix Partnership downtownphoenix.com Phoenix Public Market foodconnect.org/phxmarket

People Power peoplepowerco.com

A patented delivery system for ClO2 (chlorine dioxide), a biocide long recognized for its effectiveness in odor and pathogen control but previously available only in large applications, brings the product within reach for small businesses. ProKure Solutions offers easy-to-store, long-shelf-life pouches that dissolve in water to reliably create specified concentrations, providing “a new tool for commercial users in numerous industries committed to providing a healthy environment for their clients and staff,” says ProKure principal Jason Lipsey. Among advantages of ClO2 are it eliminates odor — not just masks it — and reduces labor while forming no dangerous byproducts. The biocide has broad commercial application, but ProKure is focusing on five primary markets, according to Lipsey. These are sports and fitness, from school to professional; justice and

J u n e 2013

correctional facilities; long-term care; food processing; and transportation — public, private, fleet and dealership. Says Lipsey, “As cars move through the disposition program [being readied for resale], smells — like tobacco and pets — can have upward of 20 percent impact on price.” The ProKure pouches can be dissolved either into a solution in the concentration appropriate for the intended cleaning or in a container so that the ClO2 gas can be captured for use primarily as a deodorizer. Ken and William Bezar had contacted Roz and Jason Lipsey, president/CEO and COO/CFO, respectively, of Jokake Construction, to demonstrate their product’s use for the Lipseys’ company. “We realized it offered a new tool to provide a healthier environment,” says Jason Lipsey, who was familiar with the compound as one of the best biocides available and with one of the lowest chemical footprints. Entering into a partnership with the Bezars and co-founding the new enterprise as ProKure, the Lipseys acquired ProKure as part of Jokake and established Phoenix as the West Coast office to the Bezars’ East Coast office in Pennsylvania. —RaeAnne Marsh ProKure Solutions prokuresolutions.com

inbusine ssmag.com

Photos courtesy of People Power (top); Prokure Solutions (bottom)

ProKure Revolutionizes Commercial Cleaning

SEDAN SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH

“We are really good at telling your story to lenders in the marketplace...” Robert S. Wilson

(602) 696-1060 robertwilson@stoneywilson.com

Turning ObsTacles inTO OppOrTuniT ies TOgeTher

Financial Statement Quality Review Assist businesses to properly produce accurate financial information for their company and to understand what the financials tell them.

Expense Reduction Review and Recommendations to reduce operating expenses.

“...and we help build strong relationships with other key partners for your business.”

Banking and Credit Relationships Establish complete banking and loan relationships for small to mid-size business clients.

Julie Stoney

(602) 370-1776 juliestoney@stoneywilson.com

inbusine ssmag.com

6501 E. Greenway Parkway Scottsdale, Arizona

www.stoneywilson.com J u n e 2013

By the numbers

by RaeAnne Marsh

Metrics & Measurements

Big Price Tag on Counterfeit Software

Malware problems mean the stakes can be high for business Unwitting piracy is a “surprisingly large problem” in the United States, says Peter Han, Microsoft’s vice president of original equipment manufacturing in the U.S. Counterfeit software has become harder to spot — instead of packaging with misspellings and poor printing that made the counterfeit product fairly obvious, packaging now is more sophisticated, “even with some duplication of the hologram that appears in our software media that carries our code,” Han notes. The reason, he explains, is organized crime syndicates have entered the field once held by small-fry mom-andpop counterfeiters. The FBI is now actively involved in helping the U.S. government and trade representatives track down the syndicates, which may span continents. In addition to infecting a user’s computer with malware, spyware, adware and tracking cookies, counterfeit software can compromise operations with authentication backdoors — which can open the affected computer to vulnerability at a later date — Trojan horses and keystroke-capturing software. Says Han, “The prosaic danger is the software won’t do what it’s supposed to do” — and the end user can’t get a document produced or cover a vulnerability, for instance. But a more subtle and insidious problem he points to is a person’s loss of trust. “People lose confidence [in the company’s IT department and] in the quality of the

software, and focus more on problems than the productivity they need for the business.” Borrowing is one source of pirated software (16 percent); some even is purchased at specialty computer stores (3 percent) and direct from the manufacturer (4 percent). But the major source is the Web because the electronic download sites — the channel through with this counterfeit software moves — have a huge volume and no policing, Han explains. Smaller companies may make the decision of acquiring software from such sites from a fiscal standpoint, because it looks like a way to save a little money. Indeed, consumers and small businesses are the most targeted, according to Han. But he notes it can happen even at large enterprises, if the CEO or IT staff isn’t watching closely. Users can protect themselves by checking the sites microsoft.com/genuine and howtotell.com. Han also recommends “common sense” precautions such as making sure the packaging and documentation is high quality and there is a certificate of authenticity and an end-user license document. Victims of counterfeit software should get the software off their computer right away, to eradicate the source of potential problems, and report it to Microsoft, who will map it into a global database and give the information to the FBI.

Key Indicators Key indicators for our state economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy. Economic Indicators (Arizona) Unemployment (Apr. 2013)

■■ ■■ ■■ ■■ ■■ ■■ ■■

J u n e 2013

-0.31

2,515.4

0.01

No. of Housing Permits (Mar. 2013)

1,832

33.33

Consumer Confidence (Q3 2012)

71.3

32.04

$22.78

1.0

Average Hourly Earnings (Apr. 2013)

Eller Business Research

Retail Sales (Arizona) Feb. 2013

Retail Sales (in thousands)

Feb. 2012

Total Sales

6,753,385

6.63%

Retail

$4,044,640

$4,199,515

Food

$1,045,934

$1,041,567

Restaurants & Bars

$904,544

$911,036

Gasoline

$758,267

$728,898

Contracting

$700,947

$738,554

Change Y0Y

Eller Business Research

Real Estate

Microsoft microsoft.com

Commercial: Office*

Q4 2012

Vacancy Rate

27.9%

25.7%

Net Absorption (in SF)

92,786

1,256,546

$23.45

Commercial: Indust.*

■■ ■■ ■■ ■■

2013 study by IDC

Q4 2011

Rental Rates (Class A)

Percentage of counterfeit software that installed malicious code: 78% of Web-based programs installed tracking cookies and spyware 36% of Web-based programs installed Trojan horses and dangerous adware 28% of Web-based programs had download system performance issues 20% of CD/DVD programs installed malware

■■ 1 in 3 consumer PCs that install counterfeit software will be infected with malware this year. ■■ In North America, external cost plus labor involved in identification, repair, recovering data and dealing with identity theft is estimated to be $203 per infection. ■■ Globally, in 2013 enterprises will spend $114 billion dealing with security issues caused by pirated software.

YOY % Change

7.9

Job Growth (in thousands) (Apr. 2013)

Counterfeit Software, Real Consequences Problems with counterfeit software: 45% slowed the PC and had to be uninstalled 34% did not run and the programs had to be reinstalled 30% overran the PC with popups 26% infected the PC with a virus 24% slowed the home network 22% worked for a while, then stopped 17% caused the hard drive to need to be reformatted

Number

Q4 2011

Vacancy Rate Net Absorption (in SF) Rental Rates (General Industrial)

Residential:

12.3%

11.2%

2,853,602

1,776,184

$0.51†

$0.46†

Mar. 2012

Total Sales Volume Total Median Sale Price

$23.27

Q4 2012

Mar. 2013

8,944

8,658

$139,000

$179,900

New Build Sales Volume

669

894

New Median Sale Price

$226,690

$274,762

Resale Sales Volume Resale Median Sale Price

8,275

7,764

$131,000

$170,000

* Cassidy Turley Arizona †

Industrial rents are expressed as triple net. Latest data at time of press

inbusine ssmag.com

A View from the Top

Trickle Up

Doug Bruhnke: Building Local Globally

Helping clients build business, he pushes the borders of enterprise by Gremlyn Bradley-Waddell Doug Bruhnke’s approach to business, instilled at a young age by family members and bolstered later by his experiences with Japanese culture, has long been, “Whatever it takes.” It’s that kind of no-holds-barred determination — the Japanese call it “ganbaroo,” a term loosely translated as “do your best” — that has brought the New York native success in his career, which includes more than 20 years with the DuPont Company. Today, Bruhnke serves as president and founder of Growth Nation, an international marketing firm based at ASU’s SkySong Innovation Center in Scottsdale. “We help people who want to grow their business really grow their business,” says Bruhnke. While he says most public relations or marketing firms specialize in just one area, Growth Nation takes a holistic approach by assessing a client’s needs and implementing a plan. “We actually help execute it,” he says, explaining that, typically, one employee is dedicated to each client account and coordinates with appropriate consultants and marketing or service companies. “We recently had a customer who wanted to have the

governor introduce their product, and we got it done. We go the extra mile.” Bruhnke cites his German grandfather, who “became an entrepreneur at age 50,” as his mentor. Bruhnke spent his boyhood summers with his grandparents, working at their successful machine shop and auto parts store in Long Island. Later, Bruhnke earned a Bachelor of Science degree in chemical engineering at the University of Utah and went to work for DuPont, initially as a chemical engineer. But he soon discovered marketing and international business, two niches for which he developed a passion. Indeed, his expertise in both areas, as well as his engineering background, now serves as strong selling points for Growth Nation. “We do a really good job with companies that have a technical product,” says Bruhnke, who holds five patents from his days at DuPont in addition to an MBA from Michigan State University. “Chemical engineers think in terms of process. It’s actually a very good way to do marketing. We’ve developed a very unique marketing process in which we put together a plan, measure results and then make corrections, sort of like a refinery or a chemical plant.”

Sectors of Strength

Photo courtesy of Growth Nation

Doug Bruhnke launched the enterprise — initially as Stamos International, using his wife’s family name — with the Salt Lake 2002 Olympics as his first client. Since relaunching in 2007 with a new name and a business model focused on marketing, sales and growth, he has worked with organizations that range from small and mid-sized companies to Avnet, Kitchell and Arizona State University. The Growth Nation™ process has created more than $1 billion of new revenue — locally and globally — in these primary areas:

■■ Information technology, high tech and cleantech ■■ International trade and regional economic development ■■ Manufacturing, logistics, industrial, energy, publishing, aerospace and automotive ■■ Healthcare, medical, pharmaceutical and life sciences

inbusine ssmag.com

■■ Professional services — engineering, ■■ ■■ ■■ ■■

environmental, design, financial, banking, legal, accounting and consulting Government — airports, cities, tribal, counties and states Retail, franchise and small business Real estate and development Nonprofits

It was at DuPont where he became steeped in Japanese culture and its customer service ethic; the “whatever it takes” concept rang true for him and has remained his mantra since. “It is, ‘Whatever it takes — if I have to go to your house, if I have to work 24/7,’” he explains. For Growth Nation clients, that means Bruhnke has their backs. If they need content for a website, Growth Nation gets it done, even if it occasionally comes without compensation. If clients need last-minute publicity, which they may have declined earlier, Growth Nation steps in and creates a memorable event. It also means finding a backup public relations specialist at the eleventh hour, when the client’s own person has “fallen off the face of the Earth,” as Bruhnke once experienced. “If I do have a fault, it is to commit to things and making [them] happen 24/7,” he says. Bruhnke’s newest venture, on which he’s working during his own time, is The Global Chamber. Using the spirit of collaboration, which he perfected at DuPont after becoming the first engineer to be placed into the company’s central research department, he’s working to create an international chamber of commerce. One of his goals is to position Arizona as the ideal business environment because it has much to offer. “It is a ‘doing’ state,” he says. “People execute stuff here.” Growth Nation growthnation.com

J u n e 2013

Finance

Fundamentals of Funding

Equity-raising Opportunity Exists for Small Businesses Qualified small business stock offers attractive gains for investors Owners of small businesses may find it easier to raise money in 2013. This is because, among the favorable tax breaks included under the American Taxpayer Relief Act (the “2012 Act”), there is a temporary extension of a provision that excludes 100 percent of gain arising from the sale of certain qualified small business stock (QSBS). This is a benefit small-business owners can use to entice investors, but it is important the owners understand what investors will be looking at in order to best position their companies to take advantage of the opportunity. Under the right circumstances, for QSBS acquired during 2013, 100 percent of the gain from the sale of such stock will not be taxed. This falls under the alternative minimum tax rules as well as regular income tax. With an effective tax rate of zero percent — coming at a time when the effective tax rates on gains from the sale of capital assets have increased from 15 percent to 23.8 percent for certain high-income taxpayers — the QSBS exclusion is an extremely favorable tax provision and benefits both investors and businesses looking to raise equity.

J u n e 2013

In general, to qualify as QSBS, stock must be that of a domestic C corporation. Owners of other types of entities may consider changing their business to C-corp status, but should carefully weigh the pros and cons of such a decision — including the fact that C corporations are subject to double taxation. Additional requirements that must be satisfied to qualify as QSBS are: ■■ The stock must be acquired in an original issuance from the corporation in exchange for money, property or services; ■■ The aggregate gross assets of the corporation could not have exceeded $50 million at any time between Aug. 10, 1993 and immediately following the issuance; ■■ At least 80 percent of the corporation’s assets, determined by value, must be used in the active conduct of a trade or business; and ■■ The investor must hold the stock for more than five years before selling it. The amount of gain from the sale of QSBS eligible for exclusion is generally limited to the greater of $10 million or ten times the taxpayer’s investment in the QSBS being disposed during the year. inbusine ssmag.com

Photo courtesy of Ben Arnold Photography

by Bahar Schippel and William A. Kastin

Photo courtesy of Ben Arnold Photography

Small businesses should expect that investors seeking to benefit from the QSBS rules will conduct due diligence about the company’s history. Such due diligence will typically include determining the historical gross assets of the issuing corporation and understanding how the corporation’s assets are used in connection with one or more qualifying trades or businesses. Further, the investors will be looking for representations from the issuing corporation, both historical and forward looking, to allow the investor to conclude that the issued stock is and will continue to qualify as QSBS.

Basically, for a corporation to be able to issue qualified small business stock, the adjusted basis of the corporation’s assets plus its cash on hand cannot have, on any day since Aug. 9, 1993, exceeded $50 million. And the corporation will be limited in how much qualified small business stock it can now issue based on the difference between $50 million and the sum of the total cash on hand plus the adjusted basis of the corporation’s other assets at the time of the issuance. There is a special rule if property other than cash was contributed to the corporation. Furthermore, a controlled group of corporations, consisting of a parent and any subsidiaries more than 50-percent parent-owned, are treated as one corporation for the purposes of the aggregate gross assets test. The issuing corporation must be involved in the active conduct of a trade or business. For QSBS that relies on a business’s research and/or development activities, the R&D must be in connection with getting ready for a future active trade or business. Such activities qualify as an active trade or business even if the activities presently generate no income. Some businesses are specifically cited as not meeting this definition. A corporation is not deemed to be involved in the active conduct of a trade or business if it provides services in the fields of health, law, engineering, architecture, accounting, actuarial sciences, performing arts, consulting, athletics, or financial or brokerage services; or if it is connected to banking, insurance, finance, leasing or investing, hotels or restaurants, farming or mineral extraction; or anything similar to these businesses or fields. A corporation is also not deemed to be involved in the active conduct of a trade or business if more than 10 percent of its assets, by value, consist of real property that is not used in a qualified trade or business, and the ownership of, dealing in, or renting of real property is not treated as the active conduct of a qualified trade or business. As a general matter, only individuals qualify for the QSBS exclusion rules. In addition, individuals who hold QSBS indirectly through an interest in a flow-through entity (such as a partnership, limited liability company or S corporation) may also qualify for the exclusion. The current law automatically sunsets at the end of 2013. As a result, for QSBS acquired on or after Jan. 1, 2014, only 50 percent of gain from the sale of such stock is excluded for purposes of computing a taxpayer’s federal income tax. Although investing in QSBS after 2013 will continue to provide a more tax efficient alternative than investing in other stock, investing in QSBS in 2013 is much more beneficial. There are many other tax considerations that may ultimately affect the net after-tax internal rate of return on an investor in a C corporation, all of which should be carefully analyzed before proceeding to form or convert into a C corporation. Business owners and taxpayers are strongly encouraged to consult with a tax professional familiar with these rules and the taxpayer’s particular situation.

Who Benefits, and How?

Snell & Wilmer L.L.P. swlaw.com

Special treatment available for taxpayers selling QSBS has existed since 1993. Compared to maximum long-term capital gain at that time, QSBS was a good investment. In the following years, the difference between QSBS and long-term capital gain decreased. But the 2012 Act again created a situation that makes QSBS investment more attractive — upon its sale, the benefit of investing in QSBS during 2013 can be as high as 23.8 percent of the gain.

Bahar Schippel is a partner at Snell & Wilmer and specializes in tax planning for mergers and acquisitions, fund formation, joint ventures and real estate transactions; drafting LLC and partnership agreements; structuring debt workouts; and designing service provider equity compensation for LLCs and partnerships.

inbusine ssmag.com

William A. Kastin is a partner at Snell & Wilmer, where his tax practice focuses on business formations, mergers & acquisitions, real estate, §1031 “like-kind” exchanges, loan workouts and modifications, private equity transactions and daily operations.

J u n e 2013

Is Our

Technology Drought Over? Arizona is fertile ground for new tech hub by Eric Jay Toll

“Arizona is the edge of newness. Time moves quicker here. The five C’s have been surpassed. New things are happening — new approaches to government, new businesses, new technologies, new cities; anything is possible in this Valley.” —Michael Crow, Ph.D., president of Arizona State University

Not long ago,

disco was king and typewriters shared desktops with personal computers. The Valley of the Sun was known as the “Silicon Desert.” Chandler was its oasis. Motorola and Intel were its bedrock. People were still looking for the way to San Jose and Silicon Valley didn’t exist. “We were once the Silicon Desert,” reminisces Barry Broome, president and CEO of the Greater Phoenix Economic Council. “Back in the 1970s and 1980s, that’s what we were called.” “It died,” Mesa Mayor Scott Smith says pointedly. “It was ours, but the ball was dropped. The Silicon Desert concept dried up about the same time Silicon Valley captured its name.” »

Arizona is fertile ground for tech hub Even as Arizona held a leading position in the evolving world of microprocessors, the state still clung to its mid-century economic vision of Five C’s — cattle, citrus, climate, copper, cotton — and never made room on the list for “computers.” Fast forward 40 years and the Valley of the Sun economy leaves the Five C’s in the dust.

Gone with the Wind The late 20th century wasn’t pleasant for Metro Phoenix technology sectors. Elsewhere, tech companies were hiring thousands of workers in the 1990s — and Silicon Valley was the capital. In Arizona, Motorola was cutting back. Oregon surpassed Arizona in tech hiring. The Valley shed one of every three technology jobs. In Arizona, there was a laissez-faire approach to recruiting technology businesses. As the metro sprawled, the desert opened to logistics, services and call centers. Retail became job king. There were still technology jobs, but more back office than innovation. In 2008, the Great Recession shook Arizona’s economy — entire job sectors were nearly extinct.

Diversification Breeding Success More recently, there has been a tremendous rethinking in business diversification. The types of business landing in the Valley and the local businesses growing here are not locked into any one technology sector. The recently announced technology companies moving to or growing their base in Arizona include aerospace, automotive, software, semiconductors, Web applications, data centers and biotechnology. Although the Arizona Department of Administration projects a modest 4.5 percent growth in technology jobs through 2014, its numbers could be jostled by recent wins for the Valley. General Motors Information Technology Innovation Center alone is adding 1,000 jobs. Four local business expansions are creating a like number of new jobs among them.

Phoenix Rising from Old Tech Ashes Across the Valley today there is a focus on the right kind of economic development

activities. There are no longer any giveaways; cities and the state are measuring return on investment and the focus is on new and expanded local business with high-value jobs. Metro Phoenix is competing on the big stage. The technology revolution in the Valley of the Sun started quietly in 2002. Shoots started poking up while the economy was flaccid. Market assets attracted an entirely new business sector: data centers. IO Data Centers took over a massive former water bottler near Sky Harbor in 2009. A year later, Phoenix NAP opened its colocation facility in the same neighborhood. Others followed. Last year, Cyrus One built a 1-million-square-foot data center in Chandler. “We’ve changed,” notes Chandler Mayor Jay Tibshraeny. “Home-grown and new facilities opened. It’s not just semiconductors. We have all types of technology businesses today. It is obvious that this is a great place for a technology business to succeed.” Led by technology hiring, the Valley’s recovery grew faster than elsewhere in the nation. In March, online job search site Dice.com reported that Phoenix ranked fourth

“The availability of reliable, economical power is important to a data center, and there is ample supply here. There’s a good labor force, and a need to promote the area to more workers. Of course, you can’t overlook the stability of the region from a natural catastrophe standpoint.” —Ian McClarty, president of Phoenix NAP

J u n e 2013

inbusine ssmag.com

of all U.S. metropolitan areas in year-over-year technology job offerings. In the months on either side of the Dice.com report, the Arizona Commerce Authority snagged new technology employers, pumping more than 2,500 jobs into the Metro market. Everyone wants the high-value companies that TechAmerica Foundation says are paying double Arizona’s median wage (tech workers in the state average almost $90,000 a year). In building the technology economy, Phoenix is in hot competition with “brand name” markets: Silicon Valley, Calif.; Highway 128 Corridor, Mass.; Seattle, Wash.; Atlanta, Ga.; and Austin, Texas. Say their names and people think “technology.” When you say “Phoenix” or “Arizona,” there just isn’t the same brand-name sizzle — not that the market is unknown.

The Phoenix Market Measures Up “Phoenix has a strong reputation,” says Daniel Kah, a partner with Greyhill Advisors, a corporate relocation consultancy located in Austin, Texas. “[It] has performed well by any metric.” Kah says there are hundreds of evaluations in business relocation, but it comes down to one objective: Facility success and profitability. To win a business, a market has to top the list in five essential metrics: workforce quality and availability; cost to relocate, operate and make a profit; timeline from decision to operation; market attractiveness for living and working; and regulatory structure. “There could be 20 metros on the first shortlist,” Kah says. “We start analyzing metrics to narrow it to three to five specific sites.” The bottom line, he adds, comes from considering the question, “Where are we going to have the best success?” Announcing recent relocation wins for the Phoenix area, Governor Jan Brewer touted Arizona’s taxes, regulations and incentives as the draw. Mayor Smith sees it slightly differently. “We can offer attractive tax packages, keep regulations under control, but that just gets us into site selection. What gets us over the top is answering a CEO’s challenge, ‘Tell me I can find the people who will make my business succeed.’” Kah agrees with Smith’s view, saying that economic incentives and tax breaks sweeten the pot but they are not going to move an underperforming metro up the list. “A high-

inbusine ssmag.com

“We’re doing the right things to attract capital, keep the talent here and get the story out about our business climate.” —Brandon Clarke, leader with Startup Arizona value company is not going to pick a location just because some money is dangled in front of them,” he says. “Incentives might be a tiebreaker, but they want to move to a location where they will succeed.” Observing that some are just not aware how well the Valley measures up against the brand name markets, he adds, “It’s impressive that local leaders are thinking about the need for Phoenix’s brand image.”

Goodbye Five C’s; Hello to a New Alliteration Learning, labor, location, lifestyle, legal — the five L’s could be coined as Arizona’s new alliteration to replace the five C’s. They are creating a positive buzz about technology in Arizona. “What breeds success in a market is a cluster of highly creative, critical thinkers,” observes Dennis Hoffman, Ph.D., director of the L.

William Seidman Research Institute at ASU’s W. P. Carey School of Business. “There appears to be a direct correlation between technology market success and educated workforce clusters. You see it in Boston, San Diego, the Bay Area; and we’re seeing it here.”

Learning “A lot of what’s driving this market comes out of ASU,” Broome says. He notes ASU president Michael Crow, Ph.D., is aiming for the school to have a $750-million research budget by 2020, but believes that’s not ambitious enough. “He should hit that by 2016, and a billion dollars a year by 2020. That makes this market very attractive to technology business.” “I like Barry’s enthusiasm,” responds Dr. Crow. “We are putting a lot of effort into our status as a Tier One research institution. It would be nice to achieve those goals.” The research dollars are growing small technology J u n e 2013

“We took a place that’s hot as heck, has no water, and made it the sixth-largest city in the country. With DNA like that, it’s no wonder we have more new businesses succeeding than anywhere else in the country. It’s our Western-ness that just finds a way to make things work.” —Clate Mask, CEO and co-founder of Infusionsoft

businesses. “ASU has had a lot of success with transferrable research,” he continues. Transferrable research is an idea, design or product created at ASU and then patented, sold or licensed for a private company to bring it into the marketplace. It takes academic theory and makes it real. ASU, the creators and the Valley benefit from the results. “We expect to aggressively compete and win those research dollars because we’re generating results,” says Dr. Crow. The success is palpable. Since 2002 — when Dr. Crow started his new model for an American research university — ASU says its research directly created 51 startup companies, received 207 patents, inked nearly 400 license and option agreements and generated $21 million in licensing revenue. All these efforts drove the college into the top 20 of non-medical school research universities in the U.S. This ranking puts ASU at the same height as M.I.T., University of Texas – Austin, University of California – Berkeley and Georgia Tech. Coincidentally, all are research universities in the “brand name” markets competing for the same highvalue tech jobs as Metro Phoenix. “A major attraction in a high-value tech firm relocation is a strong research university,” notes Kah. While ASU seems to be the epicenter as technology successes rumble out of its research and development programs, other institutions are also contributing to Metro Phoenix’s strength in this sector. These include

J u n e 2013

Grand Canyon University and numerous business incubators such as the Center for Entrepreneurial Innovation at GateWay Community College.

“That’s doesn’t count our BBA graduates.” Significantly, 70 percent of ASU’s W. P. Carey graduates retain Arizona addresses, he reports.

Labor

“Companies look at lifestyle with corporate headquarters relocation,” says Kah. “For a satellite, they assume that, if the market is growing with good workers, people are picking a place with a lifestyle they like.” There’s an assumption that similar workers will want to live there as well, he adds. ZocDoc’s Massoumi hit additional locationrelated advantages. “We realized that ZocDoc needed an office in a different time zone with predictably pleasant weather, a low likelihood of natural disasters and an abundance of direct flights across the U.S.” Combine the way people live with convenient geography and climate and there’s a major appeal. Characterizing Arizona as, essentially, a West Coast state, Kah considers this to be a plus. “Phoenix is close and has excellent modes of transportation to get people and goods into California,” he says. “The Arizona regulatory climate is favorable, development is far less expensive and facilities go up fast.” Despite all its challenges, California is still a top 10 world economy. Easy access to that market without the cost or regulatory issues makes Arizona very attractive to businesses needing a West Coast location, he says. “We’ve opened two offices in California,”

“[Businesses] looking at Phoenix ask me, ‘Who’s like me in town?’ I am now able to point to similar businesses in almost every technology sector,” reports Phoenix Mayor Greg Stanton. “They want to know that there are other successful businesses similar to theirs — because it affects their ability to recruit and keep employees. Smart public policy encouraging diversity makes a big difference in site selection.” Internet start-up ZocDoc, headquartered in New York City, put its second location in the Valley. Enumerating the reasons he picked this metro, CEO Cyrus Massoumi says there was “…most importantly, a large, educated pool of potential employees; Phoenix fit the bill.” Clate Mask, CEO and co-founder of Infusionsoft, recalls there used to be a perception that the Valley did not have a strong labor pool to serve businesses in the technology sector. But, he states, “That’s just not the case. We have a remarkable, educated work force.” ASU is working to turn out a small city of graduates every year. “Our Valley-based W. P. Carey MBA graduates earn over $1 billion a year in salary,” says Dr. Hoffman.

Lifestyle and Location

inbusine ssmag.com

Arizona is fertile ground for tech hub explains new Arizona Commerce Authority CEO Sandra Watson. “We believe that this is the market from which it’s easiest to move new business [into] the state.” Wins with Silicon Valley Bank and UBS Bank and snagging Stealth Software UV’s U.S. headquarters support that contention. “California looks at Arizona and says, ‘It’s a lot like us,’” says Broome. “Our cultures and lifestyles are similar, and that’s an attraction for a business seeking to succeed with a new facility.”

Legal, Collaboration, Results The Valley’s image got a big boost from an unlikely source last year. On the morning after his 2012 State of the Union address, the President wanted a backdrop of American technological achievement and job creation. He chose Intel’s Chandler plant as the prime example of how U.S. manufacturing is leading the way for the local and national economy by, he says, “investing in start-ups. They’re supporting science and math education; they’re helping to train new engineers.” “When President Obama spoke in front of the new Intel $5-billion FAB42 facility, a lot of people started looking at Arizona differently,” says Mayor Tibshraeny. “We’ve gotten a lot of traction from his visit. We’re getting calls and CEOs are rethinking Arizona.” As recently as five years ago, Valley cities scratched and clawed to give the biggest deal to any new business siting a facility within their borders. The recession, a couple of embarrassing incentive payouts and legal action chilled the financial handouts. Now, cities are working together against other states and adopting regional attitudes. “If it’s good for the Valley, it’s good for Phoenix and all of us,” says Mayor Stanton. “Of course, I’d like business in Phoenix, but a good employer locating anywhere in the Valley has benefits for everyone here.” GPEC has carried the load with local economic developers for a number of years. The cooperation between cities and the state grew exponentially during the recession. The job to cohesively sell Arizona to new technology companies lands on the shoulders of ACA’s Watson. “We’ve got a great story to tell,” she says. “Arizona has the knowhow to be a technology center.” The ACA is unwrapping a multi-million-dollar marketing campaign to get the word out. inbusine ssmag.com

The success of small local businesses thriving and outside businesses finding a strong work force, welcoming environment and a lot of reasonably priced land and buildings all combine to make growing companies take a hard look at Arizona. But while these factors are important, they don’t make a technology company move to the Grand Canyon State. Time is of the essence when a corporation wants to locate in the metro, says Kah. The state’s legal environment makes it possible for businesses to get a facility opened more quickly than in many other states. To close deals, Valley civic leaders and the governor open their doors and meet businesses to talk about company needs. Local governments are pushing streamlined approval processes. Mesa uses a project manager approach, locking in an approval date and working the review process backwards to meet that deadline. Other cities have implemented or are putting similar processes into place. “We’ve seen a unique opportunity to use the variety of technology businesses to attract other types of technology into the market,” says Watson. “It really comes down to Arizona know-how.”

The Phoenix market is a strong competitor when ranked against the “brand name” metros in those high-value business deals. The result: Valley of the Sun is snagging those high-value jobs. Leaders are doing what’s necessary to continue winning technology jobs for the desert. The sectors are broadly diversified. Valley economic development is proving to be a job well done at a time when a job done well is just what this market needs. Arizona Commerce Authority azcommerce.com Arizona State University asu.edu Center for Entrepreneurial Innovation ceigateway.com Chandler, City of chandleraz.gov Grand Canyon University gcu.edu Greyhill Advisors greyhill.com Greater Phoenix Economic Council gpec.org Infusionsoft infusionsoft.com L. William Seidman Research Institute seidmaninstitute.com Mesa, City of mesaaz.gov Phoenix, City of phoenix.gov Phoenix NAP phoenixnap.com Startup Arizona s.co/region/arizona TechAmerica Foundation techamericafoundation.org W. P. Carey School of Business wpcarey.asu.edu ZocDoc zocdoc.com

“Business executives look to a place and want to know if they can be successful there. They look at this market and they see there a lot of opportunities for success.” —Mayor Scott Smith, City of Mesa

J u n e 2013

Focus

Our Subject In-Depth

Company Culture: Framework for Success

Build a framework to successfully build a culture, and the culture can provide a framework for the business’s success by Dr. David “Doc” Vik A culture is what makes a company unique. It is all about what, why and how a group of people or an organization does things. It also is about the language, mindset, traditions and values — which don’t cost much money, but there needs to be a structure that supports and maintains all these elements. Many companies I have visited want a great culture and try to do things they’ve seen successful companies have done for their culture, but found they didn’t work. The reason is they have just implemented things they took from another company’s culture and tried to plug them into their own culture, but nothing aligned with what they were delivering, creating or offering. Five key structures create a culture:

The Information Age has opened up many more possibilities and opportunities for employees to choose who they work for and even where they work, not discounting working remotely or for themselves. So companies must provide a compelling company purpose if they are going to attract and retain top talent. I’ve been involved with a recruiting company in San Francisco for the last couple of years, and helped them make it to INC’s list of America’s fastest-growing companies. We have more than 200,000 candidates in our database, and the No. 1 reason given for leaving their current company is lack of purpose. Sure, some would like a shorter commute or need to move to another state for personal reasons and some want a bit more money, but lack of purpose trumps them all.

Vision

Business Model

Create a vision statement that lets everyone know “this is what we do.” If it is grand enough, it will attract top talent who want to help create the vision. Make sure the vision isn’t transaction-based — it needs to be experience-based in order to truly attract employees. Once the employees are on board and know the what, all thoughts, decisions and actions can be aligned to it. This will be the guiding light to help them create, re-invent and deliver the vision, and will be crucial for the employees to find the best way to do things, but it needs to evolve over time.

The lifespan of an S&P company a generation ago was 50 years. Today, the lifespan of an S&P company is 25 years and shrinking. Companies are dying at an unprecedented rate, and many times it has to do with the business model not evolving with the times. Not too long ago, in the Industrial Age, customers were tethered by distance and location. Companies were company-centric, thinking only about themselves and how much money they could make. They took advantage of poor business models, with high prices, up-selling and long contracts simply because there were not a lot of choices for customers, who had nowhere else to go. We now live in the information Age, where news travels fast and the choices of where people can buy things are abundant and worldwide. The companies that are thriving today are in alignment with the wants, needs and demands of customers. They give the customers the freedom of choice, price and value. It doesn’t mean a company always has to give the lowest price, but if it doesn’t, it needs to make sure that there is a lot of added value. Consider: Does your company treat people like they matter and do everything it can to create a great experience, prompting customers to come back again and again? Is there tangible added value for your

Purpose Everyone needs a purpose in their life, and this is just as true in businesses. The purpose is the why of doing something. If a company’s purpose is only about making money, employees won’t stand behind it for long. If the purpose is compelling enough and gives them a great reason to work at the company, it will attract and retain passionate employees who want to fulfill the company’s purpose. Make sure the purpose complements the company’s vision and is in alignment with it. And make sure both purpose and vision are short, memorable and repeatable.

J u n e 2013

inbusine ssmag.com

Books customers to be loyal to your company? Or is your company still company-centric, doing everything it can to squeeze the last dime from every customer?

The ‘Wow’ Factor Having or creating unique/WOW factors may be the single most important thing for companies in business today. Companies need to determine why someone would want to work for it or buy from it, and play that up. What is unique or WOW about it? Does what it sells or delivers stand out from the rest? Create unique/WOW factors that set the company apart, make it unique or make it WOW the customers. There are any number of things to choose from: quality, value, price, service, delivery; the list goes on.

Values Create some meaningful values — whether a few or a lot. Make sure the values will help empower the employees and help them reach their full potential. If the values are all company-centric, they will attract no one. A good idea is to have the employees come up with the values to begin with, as they are the ones who will be living in the culture with the values that are created. This leads to much less resistance than telling employees which values they are going to be living by at the company. These five key structures — aligned with the wants, needs and demands of employees and customers, and the Information Age — will frame a company’s own unique culture. Once the structure is set, the people part of the organization can help create the culture, and, over time, it will become part of the company’s DNA. The culture will then be the blueprint of what, why and how a company does things — now and long into the future, helping employees and company reach their full potential.

The Zappos story I worked with Zappos.com from 2005 to 2010. I was recruited to be the coach, empowering the employees and helping create the culture for the company. In addition to providing leadership training to everyone in management, I was charged with working with individuals, teams and departments regarding relationships, communication, goal-setting and reinvention, while creating a common language — all helping to create and drive the culture. Zappos has now garnered worldwide attention for its culture and has elevated its standing on Fortune’s “Best Places to Work” from No. 23 in 2009 to No. 15 in 2010 to No. 6 in 2011. I started by creating relationship. I met with all the employees for at least a half-hour, getting to know them on a personal level, as a person and not an employee, because I cared — we all cared at Zappos. Empowering people doesn’t only mean empowering them at the professional level, but empowering them at the personal level. Because if people aren’t empowered at the personal level, the professional level not only doesn’t matter, it doesn’t work. The Culture Secret theculturesecret.com

David “Doc” Vik, D.C., author of The Culture Secret: How to Empower People and Companies No Matter What You Sell, is founder and CEO of The Culture Secret, through which he promotes his vision “to empower people and companies” with culture techniques and strategies that yield net results in diverse business sectors.

inbusine ssmag.com

Building Employee Culture

The Human Equity Advantage: Beyond Diversity to Talent Optimization Trevor Wilson, global diversity strategist and visionary leader, presents a fresh, new management model that goes beyond the traditional diversity debate toward inclusion and building human capital. Featuring case studies and practical diagnostic tools and assessments, this book will benefit everyone who is interested in improving their business by building on the unique talents of employees’ innate strengths, unique abilities, personality, attitude, life experience and virtues. It outlines eight core competencies that will guide leaders to create equitable and inclusive work environments where employees are valued because of, not in spite of, their differences, and each person can be recognized and developed to strive for his or her highest potential. Trevor Wilson $39.95 • John Wiley & Sons, Inc. • June 2013

Kiss Your BUT Good-Bye: How to Get Beyond the One Word That Stands Between You and Success A simple, engaging and eminently practical guide to overcoming one’s weaknesses — one’s “Buts” — to achieve the desired career and personal relationships. Imagine a workplace where all the employees are aware of the things they do — or fail to do — that prevent them from being more productive and valuable. Imagine a company where everyone speaks openly and honestly about his or her weaknesses and is committed to strengthening and overcoming them. Imagine an environment where colleagues help one another become more efficient and less disruptive by speaking the truth about what detracts from the team’s efforts and objectives. Imagine a place where the firm’s most talented employees know exactly what they need to do to attain a leadership position. Joseph Azelby and Robert Azelby $25.99 • HarperCollins Publishers • June 2013

How Successful People Lead: Taking Your Influence to the Next Level In this book, No. 1 New York Times bestselling author John C. Maxwell explains how true leadership works. It is not generated by a person’s title. In fact, being named to a position is the lowest of the five levels every effective leader achieves. To be more than a boss people are required to follow, a person must master the ability to inspire and invest in people. He or she needs to build a team that produces not only results but also future leaders. Combining the advice contained in these pages with skill and dedication, a person can reach the pinnacle of leadership — where influence extends beyond his or her immediate reach for the benefit of others. John C. Maxwell $10 • Center Street • On shelves and online

J u n e 2013

NonProfit

by RaeAnne Marsh

Actions to build Community

UMOM: Housing Interventions Aim to Prevent Homelessness

Housing is a big part of UMOM’s focus, as the organization operates nine different housing interventions to serve the homeless and victims of domestic violence. Its shelters are among the small percentage able to accommodate two-parent families and single men, with no restrictions on the age of boys in the facility. And one of its dedicated programs provides aid to U.S. military veterans’ families “when they hit that bump in the road and need that support,” says UMOM CEO Darlene Newsom. Of the 180 veteran families UMOM has helped, 90 percent have maintained their housing. Of UMOM’s mission, Newsom says, “It’s not about managing homelessness, but eliminating it.” Two case managers and a housing specialist work with each family, with each case manager responsible for 15 families. Partnership with about 40 other community organizations and institutions extends UMOM’s impact. “We’re big on partnerships,” Newsom says. When UMOM identifies women with traumatic brain injury, for instance, Barrow Neurological Institute’s brain clinic provides, through a grant, testing and treatment. At partner GateWay Community College, UMOM clients can take their GED; UMOM provides preparation and tutoring. UMOM’s roots are with the United Methodist Church, which continues to be a force in its endeavors — particularly with volunteers and in-kind services. UMOM umom.org

Snapshot

■■ UMOM was founded in 1964, and serves about 6,000 people each year. ■■ Programs include emergency shelter for families, transitional ■■

■■

shelter for families, housing for single women and Rapid ReHousing, which provides rental assistance to families until they have enough income to pay their own rent. UMOM is developing social enterprise programs that incorporate the organization’s mission into training for its recipients of service. The first, a catering business it is developing, will provide food service training and experience to UMOM clients while generating revenue for the organization. Its two annual fundraisers are coming in the fall: UMOM Walk for Homeless Families, at the Phoenix Zoo on Sept. 28, and the Buckles and Bangles gala, at the Camelback Inn on Oct. 25.

Snapshot

■■ Approximately 65 percent of the YMCA’s funding comes

from membership and program fees. Funding also comes from government grants and other contributions.

■■ Las Artes works with youths who have “one foot in jail,” says ■■ ■■ ■■

Scobas. “Arts gets kids excited about coming back for their GED.” And many continue their education. Another program is a medical and dental clinic at the ChrisTown YMCA, reaching more than 6,000 children in that area who have no other medical or dental care. It impacts their schoolwork, too, Scobas notes, when they no longer have a constant toothache. Youth in Government gives teens a chance to run the Capital and pass laws. The Valley of the Sun YMCA was one of six Y’s in the country asked to work with the Center for Disease Control and United Healthcare to develop a type 2 diabetes program.

Established in 1892, the Valley of the Sun YMCA is the oldest human services nonprofit in Arizona, and George Scobas, president and CEO, notes it is also the largest provider and offers the most diverse services. “There are three pillars we work with,” Scobas says. Youth development programs help children and teens realize their full potential through valuebased programs designed to build skills, self-confidence and positive peer relationships. Healthy living programs and resources provide an opportunity for people in the community to achieve “some form of peak health and well-being.” And the social responsibility programs aim to create community, “helping kids and neighborhoods achieve their dreams.” Education, workforce development, cultural understanding, vocational rehabilitation and arts are just some of the areas the 26 service programs cover. Collaborative partnerships is another strength. “As a nonprofit, we need to be good with collaboration and partnerships, because we can’t do it all ourselves,” Scobas says. He cites the partnership between the Lincoln Family YMCA and ASU as one of the Y’s most unique partnerships, connecting its building with the university’s downtown campus. “For universities, downtown campuses really grow if [students] feel like part of the downtown fabric.” The Y is also working with companies to design corporate wellness and membership programs. Valley of the Sun YMCA valleyymca.org

In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.

J u n e 2013

inbusine ssmag.com

Photos courtesy of UMOM (top), Valley of the Sun YMCA (bottom)

Valley of the Sun YMCA: Broad Reach with Diverse Programs

www.inbusinessmag.com

June 2013

O n t h e Ag e n D a

A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.

Organization of Women in International Trade – Phoenix

Cross-Cultural Communications with Mexico Thurs., June 20 — 8:30a – 10:30a Trade with Mexico is the topic this month, as Phoenix’s chapter of the Organization of Women in International Trade continues to deliver educational programs focusing on international trade. Among those invited to speak is Sandra E. Correa-Suárez, Ph.D., a faculty associate in ASU’s School of International Letters and Cultures, who will address the importance of nuances in cultural awareness issues that Arizona companies will need to understand in negotiating business with companies in Mexico. Also from the School of International Letters and Cultures is associate professor and fellow presenter Cynthia Tompkins, Ph.D., who has co-authored several books on Latin America. Roberto Suárez, a local architect who has worked with businesses here and in Mexico, brings to the presentation his own extensive experience of having done business north and south of the border. While the organization’s mission is to provide a supportive and collaborative forum to expand knowledge of global trade issues and to advance the role of women in international trade through networking, Melissa Proctor, VP and general counsel, says its programming draws attendance by both genders. Topics addressed in each year’s programming include export issues, transportation issues and new developments in international trade. The presentation will be held at the offices of the Maricopa Association of Governments, at 302 N. 1st Avenue in Phoenix. Cost for members is $25; for non-members, $35. —RaeAnne Marsh

Photo courtesy of Jay Mark

Organization of Women in International Trade – Phoenix owitphoenix.org

Arizona Chamber of Commerce and Industry

Who’s Watching You: Identifying and Mitigating Your Cyber Attack Risk Tues., June 18 — 8:30a – 10:30a Cybersecurity is an increasingly vital aspect of being in business, and, to speak on this issue, the Arizona Chamber of Commerce and Industry is bringing an authority called “one of the leading thinkers in developing the architecture for Homeland Security” by Michael Chertoff, former Secretary of Homeland Security: Stewart Baker. Baker set cybersecurity policy, including inward investment reviews focused on network security, when he served as the first Assistant Secretary for Policy at the Department of Homeland Security. He is the author of Skating on Stilts – Why We Aren’t Stopping Tomorrow’s Terrorism, a book on the security challenges posed by technology, and is co-author of Steptoe’s Cyberblog, a blog that serves up opinionated and provocative thoughts on cybersecurity and privacy issues that arise at the intersection of law, information technology and security. “Too many companies have been caught unprepared by a cyber-attack, losing important information in the process. We are excited to host a program that will prepare businesses to combat this growing threat and protect their valuable information,” says Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. The information in this program will benefit both public and private companies and is aimed especially at in-house attorneys, company CEOs and presidents, and chief technology officers. Baker suggests companies measure themselves against the adversary rather than a checklist. Takeaway for program attendees will be a strategic framework for assessing the cybersecurity threats they face, the kinds of tactics that various attackers are likely to use against them, the costs of letting the attacks succeed, and the kinds of measures needed to keep the attackers from succeeding. The program will be held at the chamber’s new offices at 3200 N. Central Avenue in Phoenix. Cost to attend for members is $15; for non-members, $25. —RaeAnne Marsh Arizona Chamber of Commerce and Industry azchamber.com

Notable Dates This Month Fri., June 14 Flag Day Sun., June 16

Father’s Day

Fri., June 21

Summer Equinox

Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.

inbusine ssmag.com

J u n e 2013

O n t h e Ag e n d a ARIZONA CHAMBER OF COMMERCE AND INDUSTRY Eggs & Issues w/ Congressman Matt Salmon Fri., June 7 7:00a – 9:00a

Members: $40; non-members: $55 The Scottsdale Plaza Resort 7200 N. Scottsdale Rd., Scottsdale azchamber.com

Who’s Watching You: Identifying and Mitigating Your Cyber Attack Risk Tues., June 18 8:30a – 10:30a

Presenter is Stewart Baker, who served as the first Assistant Secretary for Policy at the Department of Homeland Security. Members: $15; non-members: $25 Arizona Chamber of Commerce and Industry 3200 N. Central Ave., Phoenix azchamber.com (See article on page 31.)

2013 Annual Awards Luncheon Fri., June 28 11:00a – 2:00p

Members: $75; non-members: $85 Sheraton Phoenix Downtown Hotel 340 N. 3rd St., Phoenix Taylor McArthur, (602) 248-9172 ext. 123

ARIZONA HISPANIC CHAMBER OF COMMERCE Financial Wellness Series

Tuesdays, June 4, 18 (Weeks 2, 3) Mon., June 24 (Week 4) Noon – 1:30p

Week 2: Learn how to create a critical succession plan to sustain the success of your business. Week 3: A discussion on wealth-building and how to prepare for your future. Week 4: Learn about Alliance Bank and the wide spectrum of financial services available for your business, tailored to meet your financial needs and banking decisions, including commercial leasing. Remember to bring your lunch as these are working sessions. Free Arizona Hispanic Chamber of Commerce 255 E. Osborn Rd., Phoenix (602) 279-1800

Technology Series

Wednesdays, June 5, 19 (Weeks 2, 3) Tues., June 25 (Week 4) Noon – 1:30p

Week 2: Learn about how equipment and devices are wired to your business services. Week 3: Learn the technical basics about fire alarm systems and devices used most in modern technology securing both life and property. Week 4: Learn how to catch problems before they occur with a touch point that runs on autopilot. Remember to bring your lunch as these are working Free Arizona Hispanic Chamber of Commerce 255 E. Osborn Rd., Phoenix (602) 279-1800

J u n e 2013

June 2013

Business Basics Series

Mon., June 10 (Week 3) Fri., June 28 (Week 4) Noon – 1:30p

Week 3: Session will cover understanding the importance of worksite infrastructure and creating a healthy worksite culture. Week 4: SCORE offers business counseling and mentoring business startups on how to grow and maintain your business. Remember to bring your lunch as this is a working session. Free Arizona Hispanic Chamber of Commerce 255 E. Osborn Rd., Phoenix (602) 279-1800

Minority Certification Series Wed., June 12 (Week 3) Thurs., June 27 (Week 4) Noon – 1:30p

Week 3: SBA offers certification information and opportunities for small businesses to gain an understanding of competing for successful bid contracts. Week 4: The DBE Program fosters small and disadvantaged businesses an environment of nondiscrimination preparing participants to compete successfully in the broader marketplace. Remember to bring your lunch as this is a working session. Free Arizona Hispanic Chamber of Commerce 255 E. Osborn Rd., Phoenix (602) 279-1800

ARIZONA SMALL BUSINESS ASSOCIATION “Building Futures” Thurs., June 13 11:30a – 1:00p

Informative session presents strategies for diversifying across asset classes. This presentation is HR CE eligible. Lunch is included. Presented by Scottsdale Wealth Management Group. Free ASU SkySong 1475 N. Scottsdale Rd., Scottsdale asba.com

Healthy Arizona Worksites Program Part 1 – Phoenix Tues., June 18 8:30a – noon

Workshop series on implementing or enhancing a worksite wellness program. Free ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

Wage and Hour Workshop Wed., June 19 8:30a – 3:30p

Learn the common pitfalls to avoid, recordkeeping and retention requirements, and how to properly classify employees. Workshop is co-sponsored by ASBA and the Mountain States Employee Council. MSEC members: $209; non-members: $250 Mountain States Employee Council 8687 E. Via de Ventura, Scottsdale asba.com

I-9 Compliance Wed., June 26 8:30a – 12:30p

Session, co-sponsored by ASBA and the Mountain States Employee Council, will provide participants with a better understanding of I-9 compliance requirements and the requirements of state specific employment eligibility verification laws. MSEC members: $125; non-members: $150 Mountain States Employee Council 8687 E. Via de Ventura, Scottsdale asba.com

ARIZONA TECHNOLOGY COUNCIL 2013 Business + IT Expo

Thur., June 13 2:30p – 5:00p (Expo); 5:30p – 8:00p (Awards)

Variety of industries will showcase products and services, then top CIOs and IT executives will be named. Free Sheraton Phoenix Downtown 340 N. Third St., Phoenix aztechcouncil.org

Council Connect: Using Success Profiles for Business Growth, Wed., June 19 11:30a – 1:00p

Panelists show powerful — and doable — research-based methods to grow business successfully through the right people. Presented by ImpaQ Solutions. Lunch is provided. Members, $35; non-members, $55 Seasons 52 2502 E. Camelback Rd., Phoenix aztechcouncil.org

ASSOCIATION FOR CORPORATE GROWTH – ARIZONA Leadership, Relevance and Reinvention Tues., June 11 7:00a – 9:00a

Richard McDonald, SVP of Global Marketing at Fender Musical Instruments. Members and sponsors: $49; nonmembers: $69; after June 7, add $10 Arizona Biltmore Resort & Spa 2400 E. Missouri, Phoenix acg.org/arizona

CENTRAL PHOENIX WOMEN Luncheon

Wed., June 19 11:30a – 1:00p

Speaker Deborah Johnson presents “High-Stakes Communication.” $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE Legislative Recap: “Your Community, Our Support” Fri., June 14 8:00a – 9:30a

Tom Dorn, president of the Dorn Policy Group and lobbyist for the East Valley Chambers of Commerce Alliance, provides a recap of Arizona Legislature’s activities of interest to the business community. Free; advance registration required Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler chandlerchamber.com

GREATER PHOENIX BLACK CHAMBER OF COMMERCE “Social Media For the Savvy Business Professional” Webinar Thurs., June 27

Webinar is presented by Brenda Cunningham, based on the new e-book Your Resume Is Not Enough: How to Network Your Way UP the Corporate Ladder! Free phoenixblackchamber.com

GREATER PHOENIX CHAMBER OF COMMERCE Annual Member Luncheon Wed., June 5 11:30a – 1:00p

A panel of experts reveals the results of a recent independent study comparing Phoenix businesses with national statistics. Members: $25; non-members: $35 Pointe Hilton Squaw Peak Resort 7677 N. 16th St., Phoenix phoenixchamber.com

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS Desert Diamonds Awards Gala Wed., June 12 11:00a – 1:00p

This power-packed event includes the live announcement of the 2013 Desert Diamond Award winners. Members: $50; non-members: $60; after June 9, add $15 Scottsdale Resort and Conference Center 7700 E. McCormick Pkwy., Scottsdale nawbophx.org

NORTH PHOENIX CHAMBER OF COMMERCE Business Resource and Networking Luncheon Tues., June 11 11:30am-1:00pm

NPCC member Cindy Gordon with Culture Shock Coaching, LLC., will speak on “Employee Recruitment/

inbusine ssmag.com

Please confirm, as dates & times are subject to change.

Retention.” Luncheon sponsors: C & R Tire and Automotive, Paradise Valley Community College. Members: $15; non-members: $20; after June 7, all: $25 Stone Creek Golf Club 4435 E. Paradise Village Pkwy. S., Phoenix RSVP online, bit.ly/12QKS6d.

PEORIA CHAMBER OF COMMERCE

WEST VALLEY WOMEN

Members: $20; non-members: $30; at the door, add $5 Scottsdale Thunderbird Suites 7515 E. Butherus Dr.., Scottsdale Nikki Hoffman, (480) 355-2712

Title Sponsors: ASU, Larry H. Miller Group; lunch sponsor: SRP $75 ASU West 4701 W. Thunderbird Rd., Glendale peoriachamber.com

$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

SOUTHWEST VALLEY CHAMBER OF COMMERCE Lunch & Learn

WOMEN OF SCOTTSDALE

TEMPE CHAMBER OF COMMERCE Hot Topics and Lunch: “The ACA: Compliance or Consequences”

SCOTTSDALE AREA CHAMBER OF COMMERCE

Thurs., June 20 11:30a – 1:00p

Airpark Forum Wed., June 12 7:30a – 9:00a

The Affordable Health Care Act — “Your World Is About to Change.” Presenters include Don Hughes, policy advisor for healthcare to Governor Jan Brewer.

A panel of three legal experts will address the ramifications of the Affordable Care Act as it relates to businesses and individuals. Members: $25 in advance, $30 day of; non-members: $35 Location TBD tempechamber.org

Each month, a featured guest speaker presents on a business subject. Free Microsoft Store at Scottsdale Fashion Square 7014 E Camelback Rd., Scottsdale content.microsoftstore.com/store/detail/ Scottsdale-AZ

Tues., June 4 11:30a – 1:00p

“Tax Free Retirement,” hosted by Joan Laubach of Your Wealth & Health. Free Southwest Valley Chamber of Commerce 289 N. Litchfield Rd., Goodyear Danielle, (623) 932-2260

Wed. & Thurs., June5 & 6 8:00a - 5:00p (June 5), 8:00a - 2:00p (June 6)

Wed., June 12 8:30a – 11:30a

“Meet the Mayors”

Thurs., June 6 11:30a – 1:00p

West Valley Business Education Conference & Expo

Business Professionals Breakfast Mixer

Thurs., June 13 10:00a – 2:00p

Annual Business Luncheon Fri., June 21 11:30a – 1:00p

$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

OTHER BUSINESS EVENTS Luncheon – Arizona Association for Economic Development Tues., June 4 11:00a – 1:15p

Mix It Up Expo

Dave Krietor, CEO of Downtown Phoenix, Inc., will discuss its new role in the Valley and what impact it will have on Arizona’s overall economy. AAED members: $40; non-members: $50 Phoenix Country Club 2901 N. 7th St., Phoenix aaed.com

The Everest College Phoenix Mesa Campus presents an employee and business mixer to connect its students with businesses and educate them about what area businesses have to offer. Free Everest College Phoenix Mesa Campus 5416 E. Baseline Rd., Suite 200, Mesa Darryl Robinson, (813) 316-6912

Cross-Cultural Communications with Mexico Thurs., June 20 8:30a – 10:30a

Event is presented by the Organization of Women in International Trade – Phoenix. Members: $25; non-members: $35 Maricopa Association of Governments 302 N. 1st Ave., Phoenix owitphoenix.org (See article on page 31.)

Cross-training for your business

Special Sections

Events Online

Email Magazine

Your company deserves to be fit. Performance Marketing: Print. Online. Email. Social Media. Events. (480) 588-9505 inbusine ssmag.com

www.inbusinessmag.com

info@inbusinessmag.com J u n e 2013

ASSETS

by Mike Hunter

We Value What We Own

Open for Business: 2014 BMW M6 Convertible Hot days, cooler nights (sort of) is what to expect as we approach summer in Arizona. However, the BMW M6 Convertible is all about performance and sporty comfort with or without the top down. M6 Series is known for its power and mostadmired design. When BMW determined that sexy was also an attribute for their M line, the M6 Convertible was the outcome. With the highest technology born of the racing circuit, this convertible has an M TwinPower Turbo V-8 engine and a seven-speed M double-clutch transmission with Drivelogic for maximum power and supreme efficiency in engine speed. And with a high-performance chassis, the “razor-sharp precision” combines impressive agility and perfect performance. The 560 horsepower and 4.3-second jump from zero to 60 mph cause one to quickly forget the topless element that makes looking at the M6 Convertible so exciting. Described as “athletic,” this machine was designed to impress inside and out. The exterior curves give it a stance that says speed and style and the M details mean it is equipped with luxury and sport in mind. “Ground-breaking” ergonomic seat design coupled with the finest materials provides passengers with perfect comfort whatever the driving situation. Carbon-fiber interior trim and Merino leather add to the interior look, but the instruments are all M design. The M-emblem instrument panel and the M-specific information and modified displays for speed and revs with the famed red needles register performance for the driver in a way that excites even the most tech-savvy car enthusiast. BMW electronics for audio, telephone, navigation and more are well-engineered and well-placed and provide software and technologies that BMW is quickly becoming known for. The convertible-top electronics are smooth and well-built, giving the driver pure comfort when “uncovering” the interior of this sporty coupe. It may not be the perfect “cooling” machine 2014 BMW M6 Convertible for our area but it certainly holds true to the mantra, “the ultimate driving machine.” City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 sec Transmission. . . . . . . . . 7-speed M double-clutch

BMW bmwusa.com

Trained to Succeed It can be lonely at the top, as the saying goes. Well, here are some local groups that are succeeding in creating leadership success to help people improve as businesspeople and leaders while enriching themselves as individuals.

Leadership Development Services

Leadership of individuals and teams within an organization is what coach and author Lois Zachary specializes in. Her series on mentoring and leadership are known to improve morale, performance, communication and the bottom line for businesses and individuals. leadservs.com

U & Improved

Leadership in life and business is the focus of this growing group. U & Improved leadership training helps individuals find their passion, regain enthusiasm and increase self-confidence to find a path to attain goals, success and a fulfilling life. uandimproved.com

MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $115,500

J u n e 2013

inbusine ssmag.com

Photos courtesy of BMW (left)

Valley Leadership

Dedicated to strengthening leadership in individuals, this well-known group works to enrich the community as well. Leadership combines with connecting and educating individuals to become communityminded businesspeople. Each year, Valley Leadership graduates a class of truly deserving leaders. valleyleadership.org

Healthcare Trust of America, Inc.â&#x20AC;&#x2122;s Leasing Team Has Expanded And Is Stronger Than Ever! Healthcare Trust of America, Inc. (NYSE: HTA) is committed to providing our tenants and physicians with best in class service that will keep them coming back for more. Our on the ground property management, engineering, and leasing teams are focused on establishing long term relationships with each of our tenants. Headquartered in Scottsdale, HTA is proud to be the leading owner of medical office buildings in Arizona with over 1.3 million square feet of space. Webb Medical Plaza - Building B Sun City West, AZ

For leasing information or to arrange a personalized tour, please contact: Sumer Riddle

Leasing Associate 480.998.3478 ext. 115 sumerriddle@htareit.com

Chelsea Maddox

Regional Leasing Director - South/Southwest 480.998.3478 ext. 143 chelseamaddox@htareit.com

Katie Kelley

Senior Leasing Associate 480.998.3478 ext. 158 katiekelley@htareit.com

Power Lunch

by Mike Hunter

Meals that matter

Chill Out Getting away for lunch in the heat seems like a chore, so why not make it a cool and healthy moment — alone or with a client or business associates? Here are some of the cool “cool” spots where a light meal or a cool beverage will help to get the job done.

GreenMix

Fresh ingredients and healthy eating are what make up GreenMix. This “modern fresh salad” restaurant is anything but hot. Cool salads in a variety of forms — traditional salads, wraps and more. Cool grilled chicken, seasonal vegetables and many signature dressings mean flavor, too. 2160 E. Baseline Rd., Phoenix (602) 268-8228 greenmixeats.com

Not an unlikely lunch spot unless you are only interested in beers, O.H.S.O. Eatery is an Arcadia neighborhood hangout that serves up a mean hamburger and the lighter side of gourmet American pub grub and makes diners feel right at home. The setting is casual, but it is common to see Wall Street types there for lunch or early happy hour. Festive with great patios in front or in back, its atmosphere is all about casual fun. The service is casual as well — sometimes attentive and sometimes the opposite. Brews on tap or bottled are a treat at lunch or a must in the evening. Local Arizona brews are served as well as some O.H.S.O.-brewed beers — with patrons having the opportunity to brew their own quaff. “We will be brewing with eight guests over the [weeks of June] and then launching the ‘brew your own’ program completely,” says coowner Jon Lane. Enthusiasts will be pleased with the lineup. The setting is casual, but it is common to see Wall Street types there for lunch or early happy hour. Festive with great patios in front or in back, its atmosphere is all about casual fun. The service is casual as well — sometimes attentive and sometimes the opposite. Brews on tap or bottled are a treat at lunch or a must in the evening. Local Arizona brews are served as well as some O.H.S.O.-brewed beers, with patrons having the opportunity to brew their own quaff. “We will be brewing with eight guests over the [weeks of June] and then launching the ‘brew your own’ program completely,” says co-owner Jon Lane. Enthusiasts will be pleased with the lineup.

Jamba Juice

Smoothies and seasonal cool drinks can become a meal at Jamba Juice. With 100-percent fresh fruits and ingredients, the menu here is vast and includes nutrients to order. From proteins and grains to grasses and dairy, these “meals” are almost all made with frozen ingredients or ice. Cool tastes for sure. 18 locations Valley-wide jambajuice.com

WM Sacks

Ditch the soups (although they are delicious) and go for a well-made cool sandwich. The Sacks Symphony says it all. Turkey, cool avocado, sprouts and bacon will provide flavor and keep temperatures down. Fresh and flavorful salads are also a specialty that will chill anyone out. 2 Phoenix and 2 Tempe locations sacks.info

O.H.S.O. Eatery + nanoBrewery 4900 E. Indian School Rd., Phoenix (602) 955-0896 ohsobrewery.com

J u n e 2013

inbusine ssmag.com

Photos courtesy of Jamba Juice (left), O.H.S.O. Eatery and nanoBrewery (right)

Oh So Fine: O.H.S.O. Eatery

Meet in the boardroom. Connect on the fairway.

Omni understands Meet. Golf. Connect. Repeat. Do it all and more at the award-winning Omni Tucson National Resort. 520-297-2271 â&#x20AC;˘ omnihotels.com/thinktucson

ÂŠ2012 Omni Hotels & Resorts

Presents

Top Tech Profiles of the Leading Technology Business Services Companies

Business & Decision CyberTrails â&#x20AC;˘ IT Partners Infusionsoft â&#x20AC;˘ mobiManage

Welcome to the In Business Magazine Top Tech special section, profiling technology business services companies that do so much to propel business. Technology has become a core aspect of every business enterprise, with the number of options expanding exponentially and advances that quickly turn yesterday’s “must-have” into today’s “obsolete.” g the Leadin Profiles of s Leading businesses in technology’s many fields call Arizona home. Once-promising y Busines Technolog Companies Services growth was squandered, but, as this issue’s cover story “Is Our Technology Drought Over?” reveals, Arizona is re-emerging as a significant hub in tech fields as diverse as aerospace, automotive, biotechnology and semiconductors, as well as software, Web applications and data centers. Opportunity is expanding, and more and more technology is founded here in the Valley. In Business Magazine is pleased to spotlight these Top Tech companies that are focused on directing technological advances to helping enterprises better their business.

Top Tech

tands

at nd more rt. nal Reso

ktucson

Top Tech

Presents

om. way.

n • & Decisio Business nsoft • s • Infusio CyberTrail ge • mobiMana rs tne Par IT

Tick, Tock, Tech: Our Place in Time Phoenix area claims its spot in technology’s history by Don Rodriguez

When it comes to the Phoenix metropolitan area’s evolution into a global technology center, don’t discount an impressive pedigree. The proof is in just one tech giant’s offspring that now dot the landscape: ON Semiconductor, Freescale, General Dynamics’ Advanced Information Systems and Iridium. From silicon solutions to global communications, all had their start as units of one company: Motorola. There was a time when working for the tech behemoth (Remember the east Phoenix campus on 56th Street north of Thomas Road?) meant a person likely had a career for life with one company. With Motorola’s humble beginnings in the early 1950s in a research and development lab in Phoenix — the company’s first outside Illinois — the seed was planted for more to come in the technology community.

inbusine ssmag.com

Over the years, some of the biggest players in technology eventually found their way to the Valley of the Sun. For anyone who has used a PC or one of countless smart devices, there’s a chance that the chips inside were fabricated at Intel’s facilities in Chandler. When it comes to aerospace and defense, Boeing’s Mesa site ultimately gave birth to one of the saviors of troops throughout the world with an airborne arsenal. It’s known simply as Apache. Even a first-time visitor getting off a plane at Sky Harbor International Airport gets a peek at A&D’s stronghold here simply by looking just across the tarmac to see the name Honeywell. These players in the global economy are really just part of the story. Small to mid-sized companies got their start through the years as vendors to supply the components and other parts that the large companies have needed to create their

products. This is a key reason that Arizona consistently is named one of the best places in the nation to launch a business. Name a tech trend and Phoenix has taken its place in the middle of it as the sector’s products — especially semiconductors, electronics, and aerospace and defense — have grown to become the state’s strongest exports today. Even Mother Nature has played a role by keeping away natural disasters like earthquakes while providing plenty of sunshine. The results are the Valley’s becoming a safe haven for data centers that house some of the world’s most sensitive information while renewable energy is finally taking hold. With researchers at Arizona State University now involved in such emerging fields as biotechnology and sustainability, new chapters surely will be written for technology’s history here. J u n e 2013

Top Tech

Business & Decision Choosing the right business information integration partner can make or break your business. At Business & Decision (B&D), we have a reputation with our clients and industry experts alike for functional and technological expertise and have forged partnerships with all of the key technology vendors to provide you with the most appropriate solutions for your business needs.

J u n e 2013

We contribute to the success of your project by driving maximum business performance through our global reach/ local approach. We leverage the knowledge of our 2,500 expert consultants and 10 strategic partners to work with you on a range of initiatives from proof-of-concepts to mission-critical, enterprise-wide, global solution delivery. We also offer full lifecycle support, from consulting to continuous improvement, through hosting and ongoing change management and are recognized by Gartner in their Magic Quadrant for BI and CRM Service Providers. B&D is an international consulting and systems integration company and a known leader in business intelligence (BI), customer relationship management (CRM), enterprise resource planning (ERP), enterprise performance management (EPM), data warehousing, and master data management (MDM), and a major player in life sciences

computer systems validation (CSV). B&D also has an FDA-qualified data center in the Philadelphia region supported by managed services for all industries.

Profile Company Name: Business & Decision Main Office Address: 8414 N. 90th St., Suite 101 Scottsdale, AZ 85258 Phone: (602) 244-1200 Website: www.businessdecision.us Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 250 (nationwide) City Nationally Headquartered: Wayne, PA CEO/Managing Director: Sylvain Thauvette No. of Years with Firm: 8 Year Established Locally: 2009 Specialties: Business Intelligence (BI), Customer Relationship Management (CRM), Cloud Solutions, Enterprise Resource Planning (ERP), and Managed Services & Hosting Solutions

inbusine ssmag.com

Top Tech

CyberTrails As the IT leader in Phoenix since 1995, CyberTrails helps small to mid-sized businesses select, implement and manage the right technologies to support their business goals. We appreciate your need to be strategic while also meeting the daily demands of running business-enabling technology and performing within tight budget constraints. We also know there aren’t enough hours in the day to be both strategic and operationally effective — that is where we come in.

Whether you need on-site or offsite support, CyberTrails possesses an impressive scope of expertise, able to solve wide-ranging technical complexities. Acting either as an extension of your IT department — strengthening existing competencies — or filling in for desired skill sets (either temporarily or on a permanent basis), we employ a success-based delivery methodology that assures the discovery and deployment of the right solution for your business. With our flexibility, rapid implementation and enthusiastic 24/7 customer support, you’ll get exactly what you need to fit your specific situation, which allows you to leverage the same kinds of technology as much larger companies do without the big financial commitment. With our dedication to providing best practices and best of breed in IT management today, getting IT Right for Your Business has never been easier!

Profile Company Name: CyberTrails Main Office Address: 1919 W. Lone Cactus Dr. Phoenix, AZ 85027 Phone: (623) 434-6079 Website: www.cybertrails.com Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 24 City Nationally Headquartered: Phoenix V.P. of Sales: Rick Estrada No. of Years with Firm: 3 Year Established Locally: 1995 Specialties: Managed Services, Hardware Sales, Virtualization, Back-up, Help Desk

Your Cloud Your Way! The Leading provider of Managed Information Technology Services in Phoenix! Public and Private Cloud Hosting • IT Hardware Sourcing and Sales Server Migration • Patch Management and Infrastructure Monitoring Data Backup and DR Planning • IT Consulting • 24/7 Help Desk

Should Your Company be on the Cloud? THINK. BEYOND. TECHNOLOGY

Visit www.cybertrails.com and download our free whitepaper.

SALES: 623-434-6079

inbusine ssmag.com

J u n e 2013

Top Tech

IT Partners IT Partners was founded in 2003 by technology industry veterans. Over the last 10 years, IT Partners has become an industry award-winning datacenter technology solution provider that supports mid-sized to large healthcare, financial services, manufacturing, government, education and tribal organizations. We are known by many customers as their “go to” datacenter solution provider — helping our customers to successfully design, deploy and integrate datacenter server, storage, networking and virtualization technologies.

IT Partners has a consultative approach that enables us to truly understand our customers’ needs and business requirements — ensuring that we recommend the best solution or approach to each customer’s unique situation and environment. Our consultants have years of experience working within mid-sized and global IT environments on missioncritical business application, disaster recovery, data back-up, protection and infrastructure initiatives. Customers say they work with IT Partners because our consultants have specialized knowledge of datacenter infrastructure technologies and virtualization. Our consultants utilize their “real world” expertise when working on datacenter projects to ensure projects are completed on time and within budget. If you are seeking a highly effective and collaborative team that possess the experience, skills and knowledge to help

support your mission-critical business application and infrastructure initiatives, we invite you to visit our website to learn more about IT Partners.

Profile Company Name: IT Partners Main Office Address: 6939 S. Harl Ave. Tempe, AZ 85283 Phone: (602) 667-0100 Website: www.goitpartners.com Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 32 City Nationally Headquartered: Tempe CEO/Managing Director: Gary Johnston, President; Willie Hawileh, CEO No. of Years with Firm: 10 Year Established Locally: 1993 Specialties: Data Center Infrastructure, Virtualization, IT Transformation/Optimization, Servers/Storage/Networking, Consulting Services

Your New Datacenter is Calling. IT Partners is known locally as our customers’ “Go To” IT Solution Provider – designing and implementing data center technology solutions the right way, the first time, on time and within budget. In recognition of our 10th anniversary, we wish to thank all of our customers, business partners and employees for the ongoing relationships, dedication and support. Visit our website to read more about our 10th anniversary server, storage, networking and consulting promotions.

J u n e 2013

w w w.goitpartners.com/Ten

inbusine ssmag.com

Top Tech

Infusionsoft Founded in 2001, Infusionsoft is a custom software company that specializes in solutions for small-business owners who need an answer to the problems of using too many systems to manage their sales and marketing efforts. Today, the company founded by Clate Mask and Eric and Scott Martineau works with more than 14,000 small-business customers in 70 countries, and plans to reach 100,000 customers by 2016.

With innovative, all-in-one sales and marketing software solutions, Infusionsoft allows small-business owners to seamlessly manage their sales and marketing efforts, improving their cash flow and profit margins. Through a series of acquisitions, the company has added features to its existing software solutions. A newly acquired tool call “GroSocial” is currently helping customers generate leads through popular social Web sites Twitter or Facebook. GroSocial’s media marketing software helps users create a professional social media presence, capture leads and connect with customers around the globe. CustomerHub, acquired in 2012, offers customers a Web-based application that features a membership site and customer portal platform. The easy-to-use application helps small-business owners market and sell their goods and services online. As the only all-in-one sales and

marketing provider, Infusionsoft combines customer relationship management (CRM), marketing and e-commerce into a comprehensive Web-based solution perfect for the true small-business owner.

Profile Company Name: Infusionsoft Main Office Address: 1260 S. Spectrum Blvd. Chandler, AZ 85286 Phone: (866) 800-0004 Website: www.infusionsoft.com/inbiz Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 350+ City Nationally Headquartered: Chandler CEO: : Clate Mask No. of Years with Firm: 12 Year Established Locally: 2001 Specialties: CRM, Market Automation, Email Marketing, Social Media Lead Generation

The Small Business Success Machine. The only all-in-one sales and marketing software built for small business, Infusionsoft combines intelligent automation with powerful CRM, e-commerce, email marketing and social media tools. So you get big business functionality, right-sized for your business.

Get organized

Nurture leads, boost referrals

No contracts, no surprises

Integrated sales and marketing tools give you the who, what, when and where of your business at a glance.

Behavior-based triggers deliver the right message at the right time – without you lifting a finger.

Pay one low monthly subscription fee. Add users as you grow for instant scalability.

Eliminate manual tasks

Know your customer

Increase productivity

Intuitive automation tools take care of administrative duties so you can get down to business.

Comprehensive reporting tools provide key insights to help segment your audience and optimize your strategy.

An easy-to-use online platform means you and your team can work from anywhere, anytime.

Visit

inbusine ssmag.com

J u n e 2013

Top Tech

mobiManage MobiManageâ&#x20AC;&#x2122;s vision is simple: to build the best mobile solutions on the planet and give its clients the tools to engage their visitors, guests and customers. MobiManage is a true adaptive mobile technology company focused on building an open platform that integrates into any existing website, CMS, CRM or database. It ensures its clients have unique and engaging mobile products that integrate into a comprehensive mobile marketing platform, providing businesses with leading, cutting-edge mobile technology and marketing tools

J u n e 2013

for easy and quick integration into marketing campaigns and strategies. MobiManage builds award-winning, engaging mobile solutions that harmonize with existing websites and marketing programs, all compatible with iOS Apple products, all Android platforms, Windows and Blackberry. Having designed more than 400 custom mobile websites and applications, mobiManage provides businesses with custom design and easy integration with CRM/CMS systems, all with the freedom and flexibility needed for growing businesses. Utilizing mobiManageâ&#x20AC;&#x2122;s mobiPlatform, clients can deploy, manage and support all mobile products, allowing for easy real-time changes. Integrated into the platform are a series of marketing tools that include mobile advertising, surveys, GEO location, SMS and more. MobiManage offers integrated responsive server-side website design and kiosk solutions with turnkey

interactive solutions, utilizing WordPress, Joomla, Microsoft and others. It offers free estimates/proposals.

Profile Company Name: mobiManage Main Office Address: 6900 E. Camelback Rd., Suite 840 Scottsdale, AZ 85251 Phone: (888) 355-6624 Website: www.mobimanage.com Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 10 City Nationally Headquartered: Scottsdale CEO/Managing Director: Douglas Ralston, President and CEO No. of Years with Firm: 6 Year Established Locally: 2007 Specialties: Custom App and Web Design and Development, Responsive Mobile-first Web Design, Software Development, Mobile Marketing, Kiosk and Tablet Products

inbusine ssmag.com

Technology as a Service

We make IT simple. Contact me for additional information: Larry Bua Executive, Business Vision and Innovation Direct: 602.828.2254 Larry.Bua@BestIT.com

Get to know the

BUSINESS SIDE OF COX. Cox Business has built a robust Arizona infrastructure with 23,000 miles of 99.99+% reliable Hybrid Fiber/Coax connecting to a fully redundant national backbone. Cisco-certified technicians on the ground and continuous monitoring from our Regional Operations Center resolve problems before they impact your enterprise. Itâ&#x20AC;&#x2122;s a network designed to exceed business continuity requirements and service designed to exceed expectations. Thatâ&#x20AC;&#x2122;s how we do business.

623-594-5238 coxbusinessaz.com

Internet. Data. Phone.

TEMPE CHAMBER

Advantage June 2013 – Sept. 2O13 • tempechamber.org

Return on Engagement and 3 Effective Tools to Measure It By Melody Johnson, Vice President, Membership Development, Tempe Chamber of Commerce Return on engagement (ROE) is yet another buzz phrase being spurred by social media. The purpose of an ROE analysis is to quantify the benefits returned from time spent “engaging” or having two-way conversations with potential and loyal customers online. Typically, this can be seen in action by companies soliciting feedback from postings on Facebook, Twitter, LinkedIn, etc., based upon content generated by the company itself. One outstanding benefit to social media is that it is fairly simple to determine what your audience is interested in by soliciting feedback or simply gauging their level of participation with you

after specific activities – a click rate is one example of available analytics. The trouble, however, arises when we are no longer communicating online and are instead interacting in person. In person, how do you determine if someone is engaged with you, your conversation or your vision? Rarely in the normal course of business does one reflect upon what introduction led to what introduction that inevitably led to a significant business opportunity. Unfortunately, we tend to think of whatever experience is top of mind, subsequently giving credit where it may be undue. Nonprofits typically engage in the most expensive form of network marketing: outreach. Outreach is very expensive to conduct due to the »

If outreach is one of the most costly ways to engage, why continue to do it? The answer is ROE.

Te m p e C h a m b e r. o r g

T e m p e C h a m b e r A d va n ta g e

Make no mistake – a personal connection and engagement is what turns a stranger into a friend, friend into a customer and a customer into a loyal customer. »

costs associated with traveling to specific service regions, payment for exhibitor spaces, dedicated staff time and design and printing of collateral materials, along with the considerable amount of time it takes to engage with few potentially qualified individuals. If outreach is one of the most costly ways to engage, why continue to do it? The answer is ROE.

Without analytics and tracking software, how is ROE measured with face-to-face encounters? Though lacking complicated algorithms, the following three techniques will steer you in the right direction in deciding how to fill your calendar with the most efficient networking opportunities.

The 3 Effective Tools Count to 10

List the top 10 most valuable business contacts you have in your portfolio. Think of individuals that not only have the ability to pull some very important strings for you, but that are also willing to do so. Rank them in order of importance to you and your business. Finally, list everyone you can think of that is in some way connected to the same network, without making exclusions. You never know when someone will be an asset to you, either now or later. Finally, make note of how you were introduced to these key individuals. By doing so, you will be able to discover patterns leading you to what specific activities, associations and events have been the most fruitful use of your time.

1+1=20

Who is your professional mentor? If you do not have one, get one. Looking up to someone who has found success is an effective way to keep your eye on where it is that you want to go. In addition to a mentor, it is useful to identify key people in your community that would be beneficial for you to meet. In the process of identifying who you would like to connect with, do some research. Find common organizations, affiliations, memberships, boards, associations – anything that your mentors have in common with you – and ask them to help you participate. Oftentimes it takes only a simple introduction to open up doors beyond your imagination. You will be able to efficiently connect with those who you are drawn to personally or professionally, simply by choosing to engage where and when they too engage.

Unlike return on engagement, return on investment is fairly easy to calculate. You should know exactly how much money it costs your business to be associated or affiliated with various organizations. ROI should be calculated before joining a new association in order to establish clearly outlined goals on how you will engage. For example, someone interested in joining the Tempe Chamber of Commerce can easily look at the annual investment and divide by the number of individual prospects you hope to meet in any given year. You can divide a sponsorship opportunity by the number of resulting impressions. This calculation will give you a rough estimate of how your expectations will be fulfilled and what level of activity will be required to do so. Make no mistake – a personal connection and engagement is what turns a stranger into a friend, friend into a customer and a customer into a loyal customer. Opting for passive messaging can give the impression that you do not know or want to know your customer. When businesses have fewer and fewer resources, it is important to invest wisely in both time and money. Thinking strategically on the front end can help you maximize the benefits of your investment.

Good Ol’ Fashioned Return on Investment (ROI)

T e m p e C h a m b e r A d v a n ta g e

Giant Scissors, Ribbon and So Much More

By Melody Johnson, Vice President, Membership Development, Tempe Chamber of Commerce A ribbon-cutting ceremony is a public ceremony conducted to inaugurate the opening to the general public of a new building or business, or to celebrate the expansion or relocation of an existing business or organization. Often, the ceremony is conducted in just the manner the name suggests â&#x20AC;&#x201C; by stretching a ceremonial ribbon across the main entrance of the building, which is then cut in a ritual manner by a dignitary to declare the building open for business. Chambers of commerce throughout the country have mastered this ceremonious ritual, and the Tempe Chamber of Commerce is no exception. One significant benefit to doing business in Tempe is that the cityâ&#x20AC;&#x2122;s elected officials tend to be visible and involved in the community, making it a point to celebrate milestones with its citizens. Frequently, these local political leaders will be invited to do the honors and cut the ribbon. As ribbon-cutting ceremonies are also conducted to open businesses, it is likely that the owners or executives of the business will do the honors. In either case, members of the media can be invited to broadcast the event. New members joining the Tempe Chamber of Commerce are encouraged to conduct a ribbon-cutting ceremony to celebrate their membership and bring public awareness to their investment in the local business community. Because of the enhanced awareness brought to the organization, the event can typically generate new business opportunities by engaging with active community members through the Chamber network.

How to Plan a Ribbon Cutting 1. Save the date: Check with the projectâ&#x20AC;&#x2122;s key participants before you set a date for the grand opening. You will want them all to attend. 2. Contact your local chamber of commerce: Assuming you are already a member, ribbon-cutting ceremonies are often a component of your membership. If you do not belong to your local chamber, join! 3. Draw up a list of invitees: Consider inviting business suppliers, partners, neighbors, clients and the general public. The Tempe Chamber can assist you in inviting elected officials or in contacting the media. 4. Promote, promote, promote: Print posters or flyers and post via e-mail and social media outlets. Target the audience that will be using the new facility. Design an invitation, which should include the name of the event, date and time, location and name of the ribbon cutter and any other distinguished guests. Also include R.S.V.P. information. 5. S et up a program: Welcome and introductions, speeches, ribboncutting, recognition of contributors and closing. Again, the Tempe Chamber of Commerce can assist in creating a process that flows from beginning to end. 6. Giant scissors and ribbon: The Tempe Chamber has got you covered. We will supply the ribbon and the giant scissors, take a memorable photo and assist you with day-of coordination.

A ribbon-cutting ceremony is a longstanding celebration to acknowledge your presence in the local community. Allow us to celebrate with you! Contact the Tempe Chamber of Commerce at (480) 967-7891 or info@tempechamber.org to join and schedule your ribbon cutting today!

Cobblestone Auto Spa

FastMed Urgent Care

Te m p e C h a m b e r. o r g

C2 Tactical Shooting Range

T e m p e C h a m b e r A d va n ta g e

As members of the Tempe Chamber of Commerce, you and your employees have access to exclusive discounts and programs. Through a variety of partnerships and affiliations, we are able to provide our members with discounts on legal services, identity theft protection, e-mail marketing and more, as well as provide access to educational programs and services. Visit www.tempechamber.org to take advantage of these great benefits.

The ACA: Compliance or Consequences A Hot Topics Panel Discussion With open enrollment set to begin this October, small businesses everywhere are scrambling to understand the Affordable Care Act and prepare for it the best they can. On June 20, the Tempe Chamber will be presenting a special Hot Topics and Lunch event to answer some of the many questions small business owners might have. “The ACA: Compliance or Consequences” will feature a panel of three legal experts who will address the ramifications of the ACA as it relates to businesses and individuals. Compliance issues, public health rationale, penalties, taxes and IRS enforcement will be addressed with a short question-and-answer session following the presentation. The panel is comprised of Daniel G. Orenstein, Deputy Director, Network for Public Health Law – Western Region; Gary W. Fleming, CPA, Henry & Horne; and Megan Scanlon, Attorney, Quarles & Brady.

Tickets are $25 for members and $35 for the general public and are available at tempechamber. org or by calling (480) 967-7891. Tickets include lunch and the hour-long panel presentation. This event will be held at the Radisson Hotel Phoenix Airport, 427 N. 44th St., Phoenix.

Discover Vietnam & Cambodia An opportunity presented by the Tempe and Gilbert chambers of commerce and Chamber Explorations The Tempe Chamber, in conjunction with the Gilbert Chamber of Commerce and Chamber Explorations, invites you to join us on a once-ina-lifetime journey to Vietnam and Cambodia. We will be holding informational meetings on June 27 and Aug. 20 at 6 p.m. (location TBD), where attendees can learn more about this all-inclusive travel opportunity. A representative of Chamber Explorations will be in attendance to review the travel itinerary and answer any general questions regarding the Discover Vietnam & Cambodia expedition. Itinerary highlights include visits to Siem Reap, Angkor Thom, Angkor Wat (UNESCO), Banteay Srei

Ha Long Bay

T e m p e C h a m b e r A d v a n ta g e

Temple, as well as an optional Ha Long Bay Overnight Cruise Tour and much more. The tour is $2,999 per person, based on double occupancy, with a $600 single supplement. The cost includes roundtrip airfare from Los Angeles; accommodations for seven nights; 11 meals; professional English-speaking guides; motor coach transportation; admissions/ sightseeing fees per itinerary; and more. The departure date is Monday, Nov. 11. To sign up for one of the informational meetings, please RSVP to info@tempechamber.org. To see full details on this amazing trip, please visit tempechamber.org.

The Value of Competition

By Melody Johnson, Vice President, Membership Development, Tempe Chamber of Commerce As I watched the NCAA tournament this year, I was reminded, as a former college basketball player, of the value of competition. Though winning is the objective of any athletic competition, it is the takeaway associated with losing that is of most value: Many things can be learned from one’s competitors. Basketball, as in any contest, involves strategy. It’s impossible to develop an effective strategy without knowing your competitors’ strengths and weaknesses, so coaches continually watch game film to study plays and discover potential opportunities to exploit the opposition’s inevitable shortcomings. Business is no different. What are your competitors doing that you are not? Have they positioned themselves in the market in ways that perhaps you haven’t thought of? The notion of “avoiding” competition is futile at best, because as we all know, in a free-market economy, competition is good for consumers – keeping prices affordable and increasing the level of customer service. That being said, innovation is key. However, there is no reason to reinvent the wheel. Oftentimes it is in the best interest of business to “borrow” successful ideas, launching innovation from there. This is where the Tempe Chamber of Commerce comes in. In addition to providing businesses a platform on which to market their products and services, and connect with the local community, the Chamber offers its

members exposure to competitors, industry partners and local leadership – all a tremendous value in designing an effective strategy. Be it networking, professional development or advocacy, the Tempe Chamber of Commerce exists to make doing business in Tempe attractive and profitable. Win the game of business. Belong.

Ken Blanchard College of Business | College of Education | College of Nursing | College of Arts & Sciences | College of Fine Arts & Production

Campus • Evening • Online

A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).

Te m p e C h a m b e r. o r g

T e m p e C h a m b e r A d va n ta g e

Effective Networking

By Sean Donovan, Vice President, Media and Program Development, Tempe Chamber of Commerce Effective networking does not mean arriving first, dominating the appetizer table and chatting it up with your friends. A mixer or networking function where you don’t meet anyone new, expand your business or get a lead may be a lot of fun, but it’s not a smart use of a great opportunity for growth. The Tempe Chamber hosts three monthly mixers dedicated to network development: one morning mixer, one evening mixer and the “speed dating for business” Networking @ Noon luncheon. On top of that, larger events, ribbon cuttings, committee involvement and various workshops all provide great ways to grow your circle of peers, clients and resources. Here are some tips to help you maximize your networking experience. 1) Show up on time. Not half an hour early while the venue is setting up and not half an hour late when the program has already begun. Respect your time and that of everyone else for the best results. However, if other commitments keep you from arriving on time, better late than not showing up at all. 2) Meet new people! The biggest networking gaffe people make is to immediately seek out people they already know and then spend the whole time with them. Get out of your comfort zone and introduce yourself to some new faces. Also, ask people you know to introduce you to other attendees. If you see someone you know talking with someone you have not met, introduce yourself and enter the conversation. If you are talking

with a new connection, introduce him or her to people you know and expand your circle of connections. 3) Be sure you have a clearly written name tag and business cards to hand out. Remember that you’re not there to make a business card collection or hand out as many of your cards as possible – you’re there to meet the people themselves. 4) Be an active listener. Avoid reciting your elevator speech over and over. Start a discussion of a more personal nature like asking, “What do you do when you’re not working?” or “How long have you lived in Arizona?” Then listen to the answers. Quite often a strong business relationship develops as a result of common interests. 5) “What do you do?” means “What do you do that can benefit me or my customers?” When discussing your job, relate it to how you can provide a service or use. Rather than stating you are an expert in social media, you can say, “I make it easier for consumers to find your business.” Pique their interest and let them ask you for more information. 6) Follow up. Within 24 hours, call or email the people you met at the event. Even if you don’t see an immediate connection, simply saying hello is important in order to be remembered in the future. Send an invitation to connect on LinkedIn. Too many people walk away from networking events feeling good but doing nothing. Take one decisive action based on something you learned or someone you met.

Connect with the Tempe Chamber! Join us on Facebook

Join the Tempe Chamber

Check out our blog

Read our monthly e-newsletter

Watch our videos

facebook.com/tempechamber linkedin.com/tempechamber

tempechamber.org/advocateonline

T e m p e C h a m b e r A d v a n ta g e

twitter.com/tempechamber

tempechamber.org/blog

youtube.com/tempechamber

Breakfast for Chamber Champions Honors Members, Community Leaders During our annual awards ceremony we were pleased to honor several individuals and businesses that have gone above and beyond in their efforts to make Tempe a thriving community. AlphaGraphics on Elliot and Kyrene and Statera received the 2013 Business Excellence Awards for their success in responsible business leadership in the community and their passion for excellence. Also recognized were four outstanding finalists: Allstate – Office of Julie Jakubek; Henry & Horne, LLP; Southwest Airlines; and Tempe Camera.

2013 Business Excellence Award recipient AlphaGraphics on Elliot and Kyrene. From left: Meegan, Eric and Steve Adams.

Jackie Thompson of Southwest Airlines was presented with the Volunteer of the Year Award for her dedication in making the Tempe Chamber and its programs a success. Vic Linoff was presented with the Spirit of Tempe Award, which recognizes lifetime achievements of service, dedication and contribution to the community. Harvey Gibson of Tempe Schools Credit Union was honored with the Tempe Leadership Outstanding Community Leadership Award, which recognizes achievements and service that contribute to improving the quality of life in Tempe. Past recipients have included Bobbie Cassano (1993); Sharon Doyle (2008); Margaret Hunnicutt (2010); and Beth Fiorenza (2012) just to name a few.

2013 Business Excellence Award recipient Statera

Special thanks to our sponsors: Presenting Sponsor, APS; Silver Sponsor, Allstate; Copper Sponsors, Edward Jones, Phoenix Sky Harbor International Airport, SCF, SRP and Wells Fargo; Print Sponsor, Printing Specialists; and AV Sponsor, Sonoran Studios.

Photos by Jay Mark

Volunteer of the Year recipient Jackie Thompson, Community Affairs and Grassroots Manager for Southwest Airlines, at left, with Tempe Chamber President/CEO Mary Ann Miller

Vic Linoff, pictured here with his wife Vicki, was presented with the Spirit of Tempe Award.

Te m p e C h a m b e r. o r g

Harvey Gibson, business development officer at Tempe Schools Credit Union, was honored with the Tempe Leadership Outstanding Community Leadership Award.

T e m p e C h a m b e r A d va n ta g e

Board of Directors Chairman of the Board: Jack Pisano Chair-Elect: Jeff Mirasola Mary Ann Miller, President and CEO maryann@tempechamber.org Sean Donovan, Vice President, Media and Program Development sean@tempechamber.org Donna Dzatko, Operations Manager donna@tempechamber.org Julie Flanigan, Director of Finance julieflanigan@tempechamber.org Shari Hodziewich, Membership Retention shari@tempechamber.org Melody Johnson, Vice President, Membership Development melody@tempechamber.org Sachiyo Spires, Communications Director sachiyo@tempechamber.org

Treasurer: Phil Howard Vice-Chairs: Margaret Hunnicutt, Kristine Kassel, Tim Ronan Immediate Past Chair: Dave Long Directors: Steve Eberhart, Joe Hughes, Kelly Lorenzen, Mary Palomino, Laura Robertson, Aqeel Shahid, Jackie Thompson, Liz White, Brian Wood Ex-Officios: Tanya Chavez, Stephanie Nowack, Virgil Renzulli Committee Chairs: Neil Chitel/Jeff Heisner, Harvey Gibson, Jim Hall, Vicki Kringen, Dave Long, Kelly Lorenzen, Jayson Matthews, Al Shipley, Jan Whalen Tempe Chamber of Commerce 909 E. Apache Blvd. Tempe, AZ 85281 (480) 967-7891

The latest business news on inbusinessmag.com and on twitter @inbusinessmag

/inbusinessmag

T e m p e C h a m b e r A d v a n ta g e

@inbusinessmag

Arizona Technology Report Arizona Technology Council: The Voice of the Technology Industry

In This Issue Celebrating 10 Years…Page 2 SciTech Festival…Page 4 Legislative Action…Page 6

Who We Are The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office

One Renaissance Square 2 N. Central Ave., Suite 750 Phoenix, Arizona 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, Arizona 85747 Phone: 520-382-3281 Fax: 520-382-3299 tucson@aztechcouncil.org

President’s Message You’ve no doubt heard the maxim about changing the world one person at a time. In downtown Phoenix recently there were more than 1,500 high school students changing the world all at once. They were the best of the best who were invited to showcase their projects at the Intel International Science and Engineering Fair. These young innovators came from more than 70 countries, regions and territories to share the results of their independent research as they competed for more than $3 million in prizes. It was fitting that the Arizona Technology Council played a role in this competition. In addition to my serving Steven G. Zylstra, as a member of the fair’s President and CEO, Arizona Technology Council local arrangements committee, the 13 senior grand award winners of the recent Arizona Science and Engineering Fair (AZSEF) staged annually by the Arizona Technology Council Foundation went on to the international competition.

Management and Staff Steven G. Zylstra

Deborah Zack

Don Ruedy

President and CEO

Senior Director, Membership Services

Executive Emeritus, Tucson Office

Leigh Goldstein Managing Director, Programs and Events

Jennifer Ayres

Justin Williams

Director, Membership Services

Executive Emeritus, Tucson Office

Anne Rody

Alex Rodriguez

Director, Finance and Administration

Director, Tucson Office

Jeremy Babendure, Ph.D.

Merry Lake Merrell

Don Rodriguez

Director, Arizona SciTech Festival

Editor

Director, Marketing and Communication

Ron Schott Executive Emeritus, Phoenix Office

aztechcouncil.org

June – Sept. 2O13 aztechcouncil.org

Doug Reid Director, Arizona Innovation Institute

I can tell you that managing our own fair is no small feat as we host an average of 1,100 students from across the state each year and arrange for more than 400 volunteer judges from a variety of disciplines. Why do we do it? With the increased need for students to earn degrees in the areas of science, technology, engineering and mathematics (STEM), our fair promotes and awards students for STEM exploration through research. AzSEF exists solely for the betterment of youth in Arizona by providing opportunities for interactions with professionals, presentation of ideas, career exploration and project analysis. But there’s more. Helping young people make such discoveries so early in their lives will reward us all for years to come. As most of them head to Arizona’s and other universities after high school, they get the chance to gain research and development skills that truly can impact mankind. Even better, many are deciding to stay in Arizona as professionals. One last thing: The fairs offer the chance to have fun! After all, the competitors are still kids. And speaking for all of us who volunteer at the fairs, it’s our chance have fun while knowing we played a part in careers that will be marked by success. There’s always room for more. Go to azsef. org/sponsorship.shtml to find out how your business can get involved. If you missed this year’s international fair, take heart. It returns to Phoenix in 2016 and 2019 along with more opportunities to volunteer. More information is available at www.societyforscience.org. And if you get the chance to change even one life, you can be a winner, too.

2013 AzSEF winners who advanced to Intel ISEF Sejal Aggarwal • Kelsey Barter • Paula Beatty • Jacob Cabrejas • Ivy Chang • Tejas Dharmaraj • Anvita Gupta • Aakash Jain • Aditya Khurana • Nitish Peela • Sarah Sakha • Manav Sevak • Ryan Silva Arizona Technology Report

Alan C. Nelson (left), founder, chairman and CEO of VisionGate, receives his company’s 2011 award from Steven G. Zylstra, the Council’s CEO and president, and Linda Capcara, founder of TechTHiNQ.

A Decade in the Making Governor’s Celebration of Innovation marks 10 years of success for winners

Yulex (Phoenix) 2009 and 2011 Green Innovator of the Year Jeff Martin, president & CTO VisionGate (Phoenix) 2011 Innovator of the Year – Start-Up Company Scarlett Spring, president WebPT (Phoenix) 2010 Innovator of the Year – Start-Up Company Brad Jannenga, president & CTO

Jeff Martin, president and CTO, of Yulex speaks to the audience after receiving his 2011 award.

Universal Avionics Systems Corp. (Tucson) 2010 Innovator of the Year – Large Company Steve Pagnucco, general manager/ manufacturing division

Arizona Technology Report

Why did your organization seek a Governor’s Celebration of Innovation award? Spring: Being a start-up is difficult regardless of the circumstance. But being a prerevenue-generating medical device company during the toughest economic recession since the Great Depression is an extraordinary challenge. Even if you have a revolutionary technology, it is important when a third party validates your technology. The Governor’s Celebration of Innovation award was an important component to our validation strategy and served as an acknowledgement by our community and within the state that the Cell-CT platform is game-changing. VisionGate’s mission is to save lives through early detection of cancer, focusing on lung cancer, which is the No. 1 cancer killer. With a mission as compelling as that, the Governor’s Celebration of Innovation award gave us traction when we needed it most. Jannenga: We created WebPT to fill a gaping hole in the rehabilitation therapy software market, and even though we started from humble beginnings, the company experienced rapid growth and success. We felt we had an exciting story to share with the tech community here in the Valley, and the Governor’s Celebration of Innovation award was the perfect platform to do so. Pagnucco: Universal Avionics sought the GCOI award primarily to provide our employees with unique local recognition for their innovative work. It was also an excellent way to expose our name locally, which may help with recruiting. Martin: Yulex sought the GCOI award because we felt the award recognized innovation in technology for green chemistry in a manner which would highlight our employees’ dedication to this critical cause.

Photos by Mark Goldstein

or the past decade, the Governor’s Celebration of Innovation has been a night for the state’s science and technology to, well, celebrate the innovations that are making the world notice Arizona. But it’s the awards ceremonies that have generated the most buzz over the years. For the winners, standing in the spotlight makes the long days and nights of creating, fine-tuning and marketing their discoveries worth it. As GCOI marks its first 10 years with this year’s theme of “A Decade of Honoring Technology in Arizona,” we asked leaders of recent winning companies to share their memories of entering the competition and what followed.

What was the reaction by your staff and customers about winning?

How has winning impacted your company? That is, what differences have you noticed?

Martin: Pure elation! Virtually all managers in the company attend the ceremony and it was such a rewarding and memorable moment. Our customers were proud of our accomplishment as well.

Jannenga: Winning this award reinforced our credibility. We knew we were driving change in our market and providing a valuable solution to the rehab therapy community. However, receiving this honor validated our efforts to our audience—and our competitors. It helped solidify our brand and our place in the market, which also helped us attract more top talent.

Pagnucco: Definitely pride. The awards are on display in our facility and we point them out with pride to visitors. Spring: The team was thrilled and continues to look at the award with a sense of pride. Recently, I had a colleague mention the award to me. They had remembered our company winning in 2011, so it’s amazing how many people are connected to the event and pay attention to the winners. Jannenga: The Arizona community holds the GCOI Award in very high regard, so needless to say, we here at WebPT were ecstatic to receive it.

What advice would you give GCOI entrants who want to impress the judges to the point of winning? Jannenga: Be a badass and strike out on your own path. If you’re innovative—if you’re identifying problems and providing valuable solutions—the awards will follow. Don’t simply enter the scene to win awards. That’s not what innovation, entrepreneurialism or our burgeoning tech community is all about. The easiest way to predict the future is to create it. Pagnucco: Impressing the judges really starts way before the application process; it’s really about the innovative culture and results your company have developed. If you’ve developed award-worthy products or services, telling the story to the judges should be the easy part! Make sure you address all the criteria, keep your description in layman’s terms and make sure your welldeserved pride in your company’s results comes through. Spring: Demonstrating that your company can make an impact in the market and you have the ability to execute that strategy. Martin: Keep your focus on improving your basic business fundamentals. Keep your eye on the rim of the basket, not the scoreboard! Manufacturing division of 2010 winner Universal Avionics

Spring: Clearly, it was a boost to our fundraising efforts. VisionGate followed up that event by delivering our fully automated Cell-CT device three months later and plan to open a CLIA (Clinical Laboratory Improvement Amendments) lab offering an LDT (laboratory developed test) in the near future. Therefore, there is much evidence to support the momentum that winning the GCOI award gave us as a company. Pagnucco: The biggest impact for our company, since our marketing is very industry-specific and worldwide in scope, is that it helps with local Arizona name recognition and reputation as an innovator, which we feel will continue to help us with attracting the best talent. Martin: Yulex received considerable attention post GCOI award, in particular from companies who are seeking assistance in developing technologies and products based on novel sustainable practices.

Governor’s Celebration of Innovation: Nov. 14 | 4 to 8 p.m. Phoenix Convention Center West Building, Third Floor, 100 N. Third St.

Awards Individual • William McWhorter Award • Ed Denison Award • OneNeck IT Services Lifetime Achievement Award

Company • • • • • •

Innovator of the Year – Academia Innovator of the Year – Large Company Innovator of the Year – Small Company Innovator of the Year – Start-Up Company Green Innovator Pioneering Award

To nominate a person or company for an award, or get more information, go to aztechcouncil.org.

aztechcouncil.org

Arizona Technology Report

SciTech in the City Communities partner with festival to make second year a success It usually takes extreme scenarios to unite cities, let alone an entire state: natural disasters, crime sprees, threatened economies. But when it comes to the Arizona SciTech Festival, municipalities across Arizona have readily joined the celebration of contributions by science, technology, engineering and math to our society. “We have found the cities as ideal partners because people seem to want to resonate with something that is in the best interest of their community,” says Jeremy Babendure, the festival’s director who spends countless hours during the year coordinating which activities will fill out the calendar. He recently finished work on the second annual festival held February 9 through March 17. A challenge for festival organizers often is that people will typically see the schools as the go-to point for anything related to education. Instead, “when the real solution needs to be a comprehensive cultural-based solution, cities are one of the best allies to do this,” he says. A plus for city fathers is the festival offers ways to present a vision of prosperity to the many stakeholders in the community. “Cities are often looking for ways to communicate their vision of economic development and passion for the future,” he says. Participants in ASU’s Night of the Open Door

Arizona Technology Report

This has been especially true in light of financial hardships that city governments have suffered along with their residents during the ongoing recession. “The economy has really forced everyone to be more streamlined with resources and the festival is no different,” Babendure says. “As a result, communities looked to leverage existing events and existing resources, and integrate the vision of science and technology into it.” An example was the Science of Chocolate at the Glendale Chocolate Affaire. Keeping a close eye on budgets didn’t lessen the commitments that cities demonstrated when getting behind activities. Events sponsored by the cities for this year’s festival varied. Examples include:

Tempe Geek Week/Geeks’ Night Out Students from grade school to university level were joined by their parents and friends at the second year of this celebration with the addition of robots and NASA. But even city officials stepped in to show off science they put to work every day: Tempe Water Conservation Office’s interactive watershed model demonstrated how water moves through the watershed before coming out of faucets with the turn of a tap. Visitors had the chance to meet ERIC (Educational Recycling Information Center), a 38-foot trailer filled with innovative and interactive ways to learn about the recycling cycle. That included information about how Tempe works with Singh Farms in Scottsdale to turn the community’s green waste into nutrient-rich compost to enrich neighborhood parks and gardens. Household Products Collection Center representatives demonstrated how many common household products can be dangerous to families, pets and the environment if not used, stored and disposed of properly.

Arizona State University’s Night of the Open Door While not exactly an official city event, Tempe is home for many of the 1,000 volunteers and 10,000 visitors who headed to the campus to celebrate the sciences, engineering, humanities and arts. More than 100 interactive activities were available as visitors experienced performances, hands-on activities and lectures while seeing areas usually closed to the public, including the Biodesign Institute, ASU Super Computer, Mars Space Flight Facility and Frank F. Hasbrouck Insect Collection.

For the second year, this popular event celebrated the past, present and future of baseball through a variety of interactive exhibits that let fans discover the science behind America’s pastime.

Glendale

Tucson

More than three dozen chocolatiers and tours of the Cerreta Candy Co. factory left no doubt about the type of confection that was at the heart of the event. This was the second year that Chocolate Affaire organizers collaborated with the Arizona SciTech Festival. Visitors were able to learn about the science and medicinal properties of chocolate with Dr. Francisco Villarreal, professor of medicine at the University of California-San Diego. There was even a Science of Chocolate booth.

Science demonstrations and experiments were at the heart of this second annual event. Topics were based on Tucson’s technology innovations, STEM education information, University of Arizona science and technology advancements, and the effect of science and technology industries on the city’s economy.

Science of Chocolate

Glendale Solar Day Solar industry experts were on hand to answer questions and provide the latest information about how the sun has been harnessed as an energy source. Children were able to learn how solar energy works by participating in activities.

Scottsdale

Two girls try the giant Etch-A-Sketch during Tempe’s Geek Week.

Spring Training Festival

Science In The City

Family SciFest Demonstrations and hands-on STEM activities were offered to stimulate interest in science and math.

Tech in Tucson Showcase Innovators working in cutting edge science and technology were in the spotlight during this peek at technologies being developed in Tucson. This also offered the chance for students to learn more about tech industries and careers.

Science of the City

Forum

Attendees learned how science is used every day to provide services essential to city of Scottsdale residents. These services include water, sewer and trash pickup. Also offered were demonstrations from the fire department and the traffic management center as well as a look at automated book sorters at the library, landscape management at city parks, new technologies at the aquatic center and the city’s first “green” CNG garbage truck.

“Technology Innovation and Economic Development in Southern Arizona” was the title of this forum that featured Tucson Mayor Jonathan Rothschild and Rep. Ron Barber, D-Ariz. Also on hand were tech industry and University Of Arizona executives and innovators who shared how science, technology and innovation create well-paid careers and drive economic development in southern Arizona.

aztechcouncil.org

Arizona Technology Report

Funding the Future Two bills hold potential for new dollars for tech development Two measures making their way through the Arizona Legislature with the support of the Arizona Technology Council hold the promise of raising the state’s tech profile by boosting funding for early-stage technology firms as well as research and development. If passed, the tax credit legislation known as HB2646 will create an investment fund to support growing companies. In addition, HB 2342 would increase the annual maximum income tax refunds to taxpayers for increased research activities and modify the payment process. The Arizona Commerce Authority would oversee the fund and award the refunds. After being passed by the Senate’s Finance and Appropriation committees, the Rules committee still needs to take up HB 2342. Meanwhile, HB2646 is awaiting the conclusion of budget deliberations and won’t move to Senate Rules committee until the budget is determined. The Legislature already showed its support of the refund component of the R&D program when it passed in 2010. In its current form, total refunds are capped at $5 million per calendar year as they are

Arizona Technology Report

approved on a first come, first served basis. In the first two years ending Dec. 31, 120 applications were approved by ACA to receive an R&D refundable tax refund. Awarded companies made capital investments totaling nearly $58.5 million. Combined their gross payrolls totaled nearly $289.5 million with an annual average wage of $79,976, which was 83 percent more than the annual state wage.

Big Returns More than $141.1 million was spent by the companies for research and development during the two-year period. A total of nearly $10 million was refunded to the companies during the two year, resulting in $14.10 spent in the local economy for every $1 invested in R&D. If the new legislation passes, total refunds will be capped at $10 million in calendar year 2014 then capped at $15 million in calendar year 2015 and each calendar year thereafter. Also, during the first half of the calendar year, the ACA cannot approve refunds greater than 50 percent of the total. During the second half, the remaining 50% of the dollar limit plus

any unused balance from the first 6 months may be approved. If HB2646 is enacted, insurance companies will be allowed take up to $50 million in credits against taxes owed to the state in the next three years if they invest that amount in high-tech, early-stage firms. The bill limits the state’s involvement to issuing tax credits for those companies directly investing in the fund. The legislation specifies the types of businesses to receive the tax credits should be involved in health, bioscience, semiconductors, electronics, information technology, energy, aerospace and defense. Unlike any other tax credit program, the first profits realized by the fund would go directly into the state’s general fund. Thereafter, a percentage of the revenue would go back into the fund, creating an “evergreen” effect and allowing for further investment in other Arizona-based businesses. Arizonans would also benefit through the creation of high-paying jobs, additional corporate income taxes, payroll taxes, business property taxes, and increased collaboration in R & D with the state’s universities.

Strategic Summit Annual gathering offers marketing pros chance to gain new ideas An expert in positioning and product development will be a featured speaker when the Arizona Technology Council teams up with the Business Marketing Association’s Phoenix Chapter and the Printing Industries of Arizona to present the fifth annual Marketing Technology Summit on Aug. 22. The event will be held 12:30 to 6 p.m. in the Grand Ballroom of the Hilton Scottsdale Resort & Villas, 6333 N. Scottsdale Road. A keynote speaker will be Tim Riesterer, chief strategy and marketing officer of

Corporate Visions. Riesterer is responsible for heading the strategic direction of the firm in thought leadership, positioning and product development. The theme of the event will be content marketing, which is the method of creating and delivering content that is relevant to a target audience with the intent to keep its members engaged. The idea is to educate the audience about your product’s or service’s value so that ultimately you get their business.

The topic for the summit’s first panel discussion will be Content Marketing for Sales Success while the afternoon panel will address the subject of Content Marketing Secrets of Master Marketers. The event also will feature an expo and conclude with a reception. The cost for attendees will be $40 for members of the three host groups and $60 for nonmembers. For information about sponsorship opportunities and other details about the summit, go to aztechcouncil.org

Retreat in the Red Rocks Program designed with CEOs and other leaders in mind When you’re the top person in an organization, it’s not easy sharing your concerns, doubts and especially frustrations with people who call you “boss.” That’s a key reason that the Arizona Technology Council’s CEO retreat has been popular enough that it returns Aug. 19-20 for its sixth year. Once again the red rocks of Sedona will be the backdrop as CEOs, presidents and business owners from throughout Arizona will meet for networking and discussions in workshops designed with leaders in mind. Most activities will be at the Hilton Sedona Resort & Spa, 90 Ridge Trail Drive. On Aug. 19, the day starts with a golf tournament and ends with a reception at L’Auberge de Sedona. The featured speakers at the program on Aug. 20 will be:

aztechcouncil.org

• J im Hayden, CEO and founder of Board Developer, who will serve as moderator • Frank Helstab, managing partner of The Institute for Corporate Planning & Finance, who will lead the workshop “Maximizing your Company’s Value” • Margo Boster, CEO and principal consultant of ImpaQ Solutions, who will lead the discussion on “Living Your Legacy: Culture, Purpose, Employees vs. Shareholders, etc.” • Scott Salkin, CEO and founder of IDS Technology Marketing, will offer the presentation “Re-Engage: Accelerating Your Pipeline through Marketing’s New Dynamics” For registration and other information, go to www.aztechcouncil.org.

Arizona Technology Report

Index Index by Name

Fiorenz, Beth, 55

Lipsey, Jason, 16

Scobas, George, 30

Azelby, Joseph, 29

Fleming, Gary, 52

Martin, Jeff, 58

Smith, Scott, Mayor, 22

Azelby, Robert, 29

Gehan, Tim, 14

Martineau, Eric, 45

Spring, Scarlett, 58

Baker, Stewart, 31

Gibson, Harvey, 55

Martineau, Scott, 45

Stanton, Greg, Mayor, 22

Bear, Trish, 12

Hamer, Glenn, 31

Mask, Clate, 22, 45

Suárez, Roberto, 31

Boster, Margo, 63

Han, Peter, 18

Massoumi, Cyrus, 22

Thauvette, Sylvain, 42

Brewer, Jan, Governor, 22

Hawileh, Willie, 44

Maxwell, John, 29

Thompson, Jackie, 55

Broome, Barry, 22

Hayden, Jim, 63

McClarty, Ian, 22

Tibshraeny, Jay, Mayor, 22

Brunhnke, Doug, 19

Helstab, Frank, 63

Moss, David, 16

Tompkins, Cynthia, Ph.D., 31

Chamberlain, Aaron, 16

Hoffman, Dennis, Ph.D., 22

Newsom, Darlene, 30

Vermillion, Charles, 11

Clarke, Brandon, 22

Hunnicutt, Margaret, 55

Orenstein, Daniel, 52

Vik, David, D.C., 28

Correa-Suárez, Sandra, Ph.D., 31

Jannenga, Brad, 12, 58

Pagnucco, Steve, 58

von Simson, Ernest, 66

Crow, Michael, Ph.D., 22

Johnston, Gary, 44

Proctor, Melissa, 31

Watson, Sandra, 22

Davis, Douglas L., 12

Kah, Daniel, 22

Ralston, Douglas, 46

Watson, Tom, Jr., 66

Donavan, Sean, 54

Kastin, William A., 21

Salkin, Scott, 63

Wilson, Trevor, 29

Doyle, Sharon, 55

Klocke, Dan, 16

Scanlon, Megan, 52

Zylstra, Steven, 57

Estrada, Rick, 43

Linoff, Vic, 55

Schippel, Bahar, 21

Greater Phoenix Black Chamber of Commerce, 32

Phoenix NAP, 22

Tempe Schools Credit Union, 55

Greater Phoenix Chamber of Commerce, 32

Phoenix Public Market, 16

U & Improved, 34

Phoenix, City of, 22

UMOM, 30

Plaza Companies, 14

Universal Avionics System Corp., 58

ProKure Solutions , 16

Valley Leadership, 35

Regus, 9

Valley of the Sun YMCA, 30

SCF Arizona, 3

Vi, 14

Scottsdale Area Chamber of Commerce, 33

VisionGate, 58

Snell & Wilmer, LLP, 20

WebPT, 12, 58

Index by Company Alerus Bank & Trust, 13 All In The Present, 14 Alliance Bank of Arizona, 2 Allstate – Office of Julie Jakubek, 55 AlphaGraphics, 55 Arizona Chamber of Commerce and Industry, 31, 32 Arizona Commerce Authority, 4, 5, 22 Arizona Department of Administration, 14 Arizona Diamondbacks, 37

Greater Phoenix Economic Council, 22 GreenMix, 36 Greyhill Advisors, 22 Growth Nation, 19 Healthcare Trust of America, 35 Henry & Horne, LLP, 55 Holmes Murphy, 10

Southwest Airlines, 55

Arizona Hispanic Chamber of Commerce, 32

IBM, 66 Infusionsoft , 22, 45

Southwest Valley Chamber of Commerce, 33

Arizona Small Business Association, 14, 32

Intel, 12, 41

Startup Arizona, 22

Arizona State University, 22

I-ology, 12 IRS, 14

Stoney-Wilson Business Consulting, 17

Arizona Technology Council, 32, 63, 64 Association for Corporate Growth – Arizona, 32 AT&T, 40 Best IT, 47 Bibby Financial Services, 10 BMA Phoenix, 64 BMW, 35 Boeing, 41 Business & Decision, 42 Cassidy Turley, 15 Center for Entrepreneurial Innovation, 22 Central Phoenix Women, 32 Chandler Chamber of Commerce, 32 Chandler, City of, 22 Cox Business, 48 Culture Secret, The, 28 Cushman & Wakefield,67 CyberTrails, 43 Dice.com, 22 Digital Equipment, 66 Downtown Phoenix Partnership, 16

IT Partners, 44 J&G Steakhouse, 6 Jamba Juice, 36

Surprise, City of, 14 TechAmerica Foundation, 22 Tempe Chamber of Commerce, 33, 56

W. P. Carey School of Business, 22 West Valley Women, 33 WM Sacks, 36 Women of Scottsdale, 33 Yulex, 58 Zappos, 29 ZocDoc, 22 Bold listings are advertisers supporting this issue of In Business Magazine.

L. William Seidman Research Institute, 22 Leadership Development Services, 35 Maracay Homes, 14 Maricopa County Attorney’s Office, 6

Check Out the New

Mastro’s, 13 Mesa, City of, 22 Microsoft, 18 mobiManage, 46 Motorola, 41 National Association of Women Business Owners, 32 National Bank of Arizona, 68

/inbusinessmagphx

@inbusinessmag

It's THE Hub to Building Business

North Phoenix Chamber of Commerce, 32 Northcentral University, 7 O.H.S.O. Eatery + nanoBrewery, 36 Octane Raceway, 9 OMNI Hotels & Resorts Tucson, 38 OneNeck IT Services Corp., 11

Driver Provider, The, 17

Organization of Women in International Trade – Phoenix, 31

Gehan Homes, 14

Ostriker von Simson, 66

Grand Canyon University, 22, 53

People Power, 16 Peoria Chamber of Commerce, 33

inbusine ssmag.com

J u n e 2013

Roundtable

A Candid Forum

Change in Business: Threat or Opportunity?

Lessons for today from the rise and fall of yesterday’s IT leaders by Ernest von Simson Waves of change roll through the information technology sector roughly every fifteen years or so; for sectors outside IT, the waves may come less frequently but no less destructively. The IT experience can be viewed as a wind tunnel through which other businesses can pretest their survivability. The experiences in the following IT examples can be applied to businesses across all sectors to illustrate that, as agile and often new firms will produce creative new solutions, slow-footed companies will be destroyed.

The Perils of Incumbency Market leaders bear significant legacy burdens in navigating abrupt change in business models and technologies. Their perspective on new competitors can be deflected by their focus on traditional competitors, as when Digital Equipment, then the second largest computer company, missed the rise of California’s Sun and other Unix firms because of management’s focus on the other Massachusetts minicomputer makers. The market leader’s cost structures can also block change; minicomputer companies, for instance, didn’t fail because of disruptive technology but because they couldn’t slash sales and R&D expenses to meet the new breed. And great sales organizations, often the crown jewels of successful companies, too often try to block change in products or distribution models.

CEO Success Factors For the leadership of new companies, critical success factors include, first, a deep knowledge of the market, typically founded on first-hand experience with that sector. Second, a clear appreciation of the technology’s current reality and future trajectory. Third, sound judgment about people. And finally, “steadfastness” — the CEO’s ability to hold the direction he or she has selected even while pundits, customers and, especially, direct lieutenants say he’s wrong. IBM’s Tom Watson Jr., for instance, introduced tape storage over the objections of top sales executives, who feared erosion of the hugely profitable punch-card business.

Replacing CEOs Replacing a CEO is the board of directors’ most important and most conflicted responsibility. For mature companies, replacement often comes too late — sometimes delayed because directors have become captive to their board positions and/or a charismatic CEO. For start-ups, replacement of a founder/CEO often comes too early. Venture capitalists routinely oust the founders of fledgling companies as soon as the employee count crosses some arbitrary number like 100 or 1000, ignoring the countervailing truth that most successful IT companies, with the greatest return to shareholders, were built by their founders: Steve Jobs at Apple, Jeff Bezos at Amazon, Larry Ellison at Oracle, Bill Gates at Microsoft and Larry Page and Sergey Brin at Google.

J u n e 2013

Transient Technology To achieve sustainable strategic advantage, a new technology wave should represent a radical shift in both underlying technology and business model. The PC sector filled the bill and created substantial wealth for a few hardware leaders and dozens of software suppliers, starting with Microsoft. The minicomputer sector did not, and its demise over 10 years would be accompanied by major losses for the software firms that hitched their futures to quickly fading stars like Data General and Datapoint. Minicomputers were simply low-end versions of the mainframe, with cheaper circuit technology but proprietary circuit designs, operating systems and distribution models, while personal computers were built on a “layered” approach, in which each manufacturer shared processors (typically Intel), operating systems (typically Microsoft) and even basic applications like databases, spread sheets or word processing. Common components made two huge differences: lower costs and a much higher volume of users with essentially the same systems. The rising volume of users attracted even more software applications, which attracted even more users; and so it went.

First Mover Disadvantage The first entrants into a new market created by a disruptive technology will establish an unassailable competitive advantage and reap the lion’s share of benefits in terms of customers, markets and profits, even when the technology becomes commonplace. Take the early bank ATMs, for example, or the recently introduced smartphone bank apps for categorizing small business expenses or remotely depositing checks through photography. But that’s only half the story. First movers often enter the market before it’s been definitively reshaped by the disruptive technology. Too often they try to mold new technology around old business models, with disastrous results. Amazon, FaceBook and Google, for instance, are capsizing forerunners like Friendster, MySpace, AltaVista and dozens of others.

Looking Back to See Ahead History never exactly repeats itself but many phenomena reappear. It’s these that are worth observing for old and new companies alike to extrapolate the lessons to their own industry. The Limits of Strategy: Lessons in Leadership from the Computer Industry LimitsofStrategy.com

Ernest von Simson, author of The Limits of Strategy: Lessons in Leadership from the Computer Industry, is senior partner of Ostriker von Simson, a consultancy that assists the largest worldwide enterprises in the selection and deployment of advanced technologies, and co-director of the CIO Strategy Exchange, a private sector think tank serving top CIOs.

inbusine ssmag.com