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WHERE TECHNOLOGY MEETS LIFESTYLE
features
20 people profile
Perspectives from medical patent expert Stephanie Mansfield
22 business profile
HistoSonics is blazing new trails in surgery tech
26 focus on
technology
32
Michigan businesses are good medicine for VCs
32 lifestyle
So you think you know Ann Arbor …
departments 6
editor’s letter
8
automation alley update Views and news from Automation Alley
12
metro retro Plugging in with video games
14 tech+design Powering up is like a walk in the park
LOG ON FOR THE LATEST MICHIGAN TECH NEWS
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education kaleidoscope In pursuit of nutrition and job creation
38 trends Online learning explodes 40
expert outlook Linking education and innovation in the medical ecosystem
42
making the scene Automation Alley Gala recap
www.xologymagazine.com
FALL 2014 VOLUME 8, NUMBER 4
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editor'sletter ANGIE BAAN
www.xologymagazine.com
E DI TOR I A L EDITOR | Jane Racey Gleeson
A
s the seasons change from summer to fall, it seems a good time to take a look at the changes in Michigan’s business status. It wasn’t long ago we were hearing the same message over and over again: Michigan needs to attract more venture capitalists for business success. But that wasn’t happening, even before the Great Recession, and certainly not during it. Today, we’re hearing a different message that’s resonating throughout the state. Tim Peterson, managing director of Arboretum Ventures, a VC firm focused on healthcare, sums it up in our Focus on Tech feature article when he says the number of VCs in the state has grown significantly in the last 10 years. Our Focus on Tech writer Ilene Wolff takes a close look at how some national venture capitalists are impressed with what’s happening in Michigan and are establishing offices here: Baird Capital and Cultivian Sandbox Venture Partners, to name a couple. You’ll read about the companies that are being funded, including ProNAi, a biopharmaceutical firm that secured the largest round of VC money in Michigan’s history this year. And there are more success stories, including HistoSonics, featured in our Business Profile. The company is striving to be the market leader in non-invasive surgery technology and is making its mark with histotripsy, a non-invasive soft tissue surgical technique developed at the University of Michigan. Another important angle of the region’s growing medical industry is patents — critical company assets for creating and maintaining an advantage in the market. Our People Profile features patent agent Stephanie Mansfield, who shares her expertise in obtaining patents for medical and biomechanical devices, engineering tissues and healthcare products. On a lighter note, if you’re interested in exploring Ann Arbor this fall — beyond the world of football — you’ll get some great ideas from writer Susan R. Pollack, whose sevenitem sampler of things to do in this dynamic city is featured in our Lifestyle article. Enjoy this issue of X-OLOGY Magazine. And visit our website — XOLOGYMagazine.com — for more tech-focused topics.
EDITORIAL ADVISORS Ken Rogers Kelly Kozlowski Erin Sommerville COPY EDITORS Nicole Kampe Erin Sommerville CONTRIBUTING WRITERS Nicole Kampe Susan R. Pollack James Kelsey Matthew Totsky Leslie Mertz Ilene Wolff C R E AT I V E CREATIVE DIRECTOR | Alex Lumelsky CONTRIBUTING PHOTOGRAPHERS Jeff Kowalsky Max Wedge Susan R. Pollack PRODUCTION | SKY Creative P U B LI S H I NG PUBLISHED BY RDE ENTERPRISES INC. Publisher | R. David Eick PRINTED BY ARBOROAKLAND GROUP Vice President | Chuck Rymal OPERATIONS | Joseph P. Pietrangeli A DV E RT I S I NG MANAGING DIRECTOR, SALES AND MARKETING | R. David Eick ACCOUNT MANAGERS Scott Cooper Greg “Porky” Campbell FOR ADVERTISING: 248.231.8067 OR 248.549.0981 david@xologymagazine.com X-OLOGY IS A QUARTERLY MAGAZINE PUBLISHED FOR AUTOMATION ALLEY. THE MISSION OF X-OLOGY IS TO UNCOVER THE MOST SURPRISING AND RESONANT STORIES ABOUT THE PEOPLE, COMPANIES, TECHNOLOGIES AND IDEAS THAT ARE TRANSFORMING SOUTHEAST MICHIGAN. X-OLOGY IS DISTRIBUTED TO 10,000 HOMES AND 5,000 BUSINESSES THROUGHOUT EIGHT COUNTIES; 2,500 ARE DISTRIBUTED FOR RECRUITING IN THE TECH SECTOR AND 2,500 COPIES ARE SOLD IN STREET SALES. FOR SUBSCRIPTIONS, PLEASE CALL: 248-549-0981. COPYRIGHT © 2014, RDE ENTERPRISES
Jane Racey Gleeson Editor jane@XOLOGYmagazine.com
NO PART OF X-OLOGY MAGAZINE MAY BE REPRODUCED IN ANY MANNER WITHOUT THE WRITTEN CONSENT OF THE PUBLISHER. FOR PERMISSION AND RE-PRINT REQUESTS, PLEASE CONTACT PUBLISHER@XOLOGYMAGAZINE.COM. THE X-OLOGY NAME AND LOGO, AND THE VARIOUS TITLES AND HEADINGS HEREIN, ARE TRADEMARKS OF RDE ENTERPRISES. POSTMASTER: SEND ADDRESS CHANGES TO X-OLOGY MAGAZINE, 4303 NORMANDY COURT, ROYAL OAK, MI 48073
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FALL 2014 • X-OLOGY
Committed to Detroit for 160 years. Trust. Always.
Butzel Long proudly celebrates 160 years of trusted service. We’ve served U.S. presidents and industrial geniuses. Helped create auto companies and telephone giants. And established a trust that has remained unchanged for a remarkable 160 years. From the days when steamships ruled the waves, through today as the entire world moves at the speed of light, the tenacious attorneys of Butzel Long have provided unparalleled legal counsel and advice to clients worldwide on every issue under the sun. We were there to deal with the impact of the industrial revolution, and we’re here today to deal with the challenges and complexities that businesses confront in a global economy. Along the way, we’ve proven what it means to lead. We’re more determined than ever to give our clients nothing but the best advice. In return, we earn their trust, day after day, year after year. Trust stands the test of time. And we thank Detroit and the world beyond for always allowing us to do our best.
butzel.com Ann Arbor • Bloomfield Hills • Detroit • Lansing • New York • Washington, D.C. • Alliance Offices Worldwide • 313-225-7000
automationalleyupdate In addition to working with local employers, Automation Alley is also helping to train unemployed individuals for high-level IT jobs through the Code ReConnect program. The first cohort of Code ReConnect graduates completed training in June.
more than 500 local workers trained through TTDP Automation Alley has reached a significant milestone with its Technical Talent Development Program (TTDP). To date, more than 500 local workers have received technical training through TTDP, helping to ensure that Southeast Michigan’s information technology workforce is among the most skilled in the nation. Automation Alley expects to train approximately 1,000 people over the life of the program. Launched in 2012 with two Michigan employer partners, HP Enterprise Services of Pontiac and Lakeside Software, Inc. of Bloomfield Hills and Ann Arbor, TTDP is made possible through a $5 million grant from the U.S. Department of Labor, Employment and Training Administration, awarded to Automation Alley to create jobs and train workers within Southeast Michigan’s tech industry. TTDP provides funding to local employers for high-level IT training of both potential and current employees. Local training providers, including corporate training companies, workforce develop8
FALL 2014 • X-OLOGY
ment organizations and educational institutions, administer the training. “Our Technical Talent Development Program is addressing a critical need in Southeast Michigan to fill the IT skills gap. And now, because of our efforts, more than 500 people have gained high-level IT skills, such as certified ethical hacking and Microsoft solutions developer,” says Alysia Green, Automation Alley’s director of talent development. “We’re proud of this milestone and will continue to create talent initiatives through TTDP that contribute to the growth of our members and the future success of our region.” In 2013, Automation Alley awarded 13 local companies a portion of $750,000 in training funds through the first round of the TTDP Challenge Fund. Automation Alley member companies with immediate IT training needs were eligible to apply for the funds. This year, through a second round of the TTDP Challenge Fund, 24 local companies were awarded a portion of $1 million in technical training.
ADDITIONAL TRAINING THROUGH CODE RECONNECT In addition to working with local employers, Automation Alley is also helping to train unemployed individuals for high-level IT jobs through the Code ReConnect program. The first cohort of Code ReConnect graduates completed training in June. Automation Alley partnered with Kelly IT Resources, a division of Kelly Services, Inc., to provide the trainees with access to employment opportunities with local tech companies through a sixmonth paid mentorship program. To learn more about TTDP programs and training, contact the Automation Alley Resource Center at 800-427-5100 or info@ automationalley.com.
The Automation Alley Technical Talent Development Program is made possible by a $5 million grant funded by the U.S. Department of Labor, Employment and Training Administration, and is an equal opportunity program.
Automation Alley
Product Lifecycle Management Center at Oakland University
Save time Reduce costs Mitigate risks Increase profits Improve quality Create less waste Streamline processes Diversify into new markets What is PLM? PLM, or product lifecycle management, is the process of managing the lifecycle of a product from its conception and design, through manufacture, to service and disposal.
Register for classes today!
Visit www.automationalley.com/plmcenter • AutoCAD Essentials
For the new user who requires comprehensive training, learn about features, commands and techniques for creating, editing and printing drawings in AutoCAD.
• CATIA – V5 Foundations
For new CATIA V5 users, this class covers both fundamental and advanced topics in the most commonly used workbenches. The primary emphasis of this course is on parametric solid modeling in V5 but an introduction to assembly design, drafting and wireframe and surface is also included.
• Autodesk Inventor Essentials
Learn how to create production ready drawings of parts and assembly models as well as the valuable concepts that lead to “shortcuts” in your design process.
• NX – New User
Get on track with this integrated class focused on feature-based modeling, assemblies, and drafting. Learn the fundamentals of parametric modeling and engineering drawings.
For more information, contact the Automation Alley Resource Center at (800) 427-5100 or info@automationalley.com. X-OLOGY • FALL 2014
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automationalleyupdate
automation alley hosts kidpreneur coding camp
Two interns from Detroit Venture Partners accept their $5,000 grand prize from Automation Alley staff at #hackDPL, Automation Alley’s 24-hour hackathon to build an app for the Detroit Public Library.
hackathon benefits the detroit public library Two interns from Detroit Venture Partners were awarded the $5,000 grand prize at #hackDPL, Automation Alley’s 24-hour hackathon to build an app for the Detroit Public Library. Automation Alley held the event July 11-12 at its Detroit office, located at Grand Circus. The first-place winners were David Kircos of Grosse Pointe, MI, and Hunter Rosenblume of Syosset, NY. Kircos is a computer science major at Michigan State University, and Hunter is a computer science major at Georgia Institute of Technology. The mobile application they developed provides library users with alerts and notifications about Detroit Public Library events, programs, closings and other important dates. It also allows users to search the library’s catalog and order e-books. The apps were judged by Will McDowell, business analyst with Detroit Labs, maker of mobile apps for iPhone, Android, Windows and the Web; Victor Ibegbu, acting assistant director for information systems for the Detroit Public Library; Beth Niblock, CIO for the City of Detroit; and Mark Ostach, CEO of Digerati Inc. “#hackDPL was a tremendous success, thanks to the hard work of Automation Alley and Grand Circus and all of the contestants who ‘grinded it out’ for 24 hours to create a mobile application to benefit the citizens of Detroit,” says Atiim Funchess, Detroit Public Library’s assistant director for marketing. “We were extremely impressed with the diversity and level of talent that competed and truly grateful for the end results.”
our mission:
To grow the innovation cluster of Southeast Michigan by providing programs and services to the technology business community that encourage entrepreneurship, increase exporting, attract foreign direct investment, develop high-tech talent, support advanced manufacturing and help technology-driven businesses of all sizes succeed.
our vision:
Southeast Michigan will be globally acknowledged as the leading technology and innovation region in the United States by 2020. 10
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This summer, Automation Alley hosted a camp for young children to learn about coding through Kidpreneur. Kidpreneur empowers children ages 7-13 to bring their ideas to life with hands-on training in entrepreneurship, Web design, robotics, app development, coding and the latest technologies. The company is the brainchild of serial entrepreneur Thanh Tran, who is also the founder of D-Movement and D-NewTech, organizations that aim to inspire Detroit’s growth. Tran says the idea for Kidprenuer came about when he realized there were not enough opportunities available for young children to learn about entrepreneurship and new technologies. “I have kids, I love entrepreneurship and I love technology. Coding is in such high demand right now, and it’s important we encourage kids at a young age. That’s the way I want to raise my kids: to become future innovators and job creators,” Tran says. Kidprenuer classes and summer camps are taught by professionals with real-world experience at various locations throughout the metro Detroit area, all of which encourage entrepreneurship and collaboration. This summer, Automation Alley hosted a weeklong camp for students to learn about coding through Kidpreneur.
“It’s been a thrill to see these young children getting excited about technology. Promoting technology education is an important part of Automation Alley’s mission,” says Automation Alley Executive Director Ken Rogers. “Kidpreneur is an innovative startup company that’s helping to build Southeast Michigan’s technical talent pipeline and ensuring our future workforce is among the most skilled in the world.”
For more information about Kidpreneur, visit www.kidpreneur.co/.
Automation Alley Foundation Members Automation Alley would like to thank its Foundation Members for their regional leadership and support in contributing to the success of the organization. All Covered Altair Arab American and Chaldean Council Automotive Design & Production Baker College Blue Cross Blue Shield Butzel Long Central Michigan University Chrysler Group LLC City of Troy Crain’s Detroit Business Delphi Corporation Detroit Economic Growth Corporation Detroit Manufacturing Systems Detroit Regional Chamber DTE Energy Fourstream USA General Motors GlobalAutoIndustry.com Goodwill Industries Grand Circus HR Pro/BenePro Johnson Controls Inc. Just Energy Corporation Keaton Publishing Group Kelly Services, Inc. Kettering University Lawrence Technological University Macomb Community College Macomb County Government Macomb Daily Meritor, Inc. Michigan Economic Development Corporation Microsoft New Horizons Computer Learning Centers Oakland Community College Oakland County Oakland County Workforce Development Board Oakland Press Oakland University Plante Moran Plex Systems, Inc. Quality Metalcraft Rave Computer Salesforce.com SMART The Resource Network, Inc. Troy Michigan Works! U.S. Army TARDEC/NAC UHY Advisors Walsh College Wayne County
metroretro
plugging in with video games BY JAMES KELSEY
V
ideo games are everywhere these days. It seems every other 10-year-old has one system or another. When asked, many avid gamers say Pong or Asteroids was the first video game. They would be wrong — by more than 25 years! The first entertainment device considered a video game was the Cathode-Ray Tube Entertainment Device, created by physicists Thomas T. Goldsmith Jr. and Estle Ray Mann in 1947. A screen projected planes and boats onto paper, and players used a light-gun to shoot the targets. This led to the creation of Nimrod in 1951, a special purpose computer that played the game of Nim, followed by OXO, a version of tic-tac-toe created for the EDSAC computer. Some claim that since these games didn’t use a screen, but rather lights or a projector, they can’t be considered video games. That recognition, they say, should go to Tennis for Two, which was created in 1958 — more than a decade after the Cathode-Ray Tube Entertainment Device was unveiled. GETTING IN THE GAME As video games grew in popularity, arcades began sprouting up in the late 1970s and early 1980s. The first arcade game, Periscope, was an electromechanical game from Japan created in 1966. Shipping it to the United States was so costly that arcade owners began charging players 25 cents. Coin-operated games quickly became the standard. The next 14 years saw the release of Pong (in 1972), Asteroids (in 1979) and the ever-popular Pac-Man (in 1980). 12
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Today, most video games are played at home, save for popular arcades like Chuck E. Cheese’s and Dave and Buster’s. Sanders Associates introduced the first home console, The Brown Box, in 1967. The Brown Box came with 12 built-in games and used light guns. A separate system of vacuumtube circuits was required. Five years later, Magnavox created the Odyssey and players could attach their consoles directly to any television. Sadly, due to false rumors about it only working on a Magnavox TV, the Odyssey soon fell out of favor. BIG THREE Nintendo, Sony’s PlayStation and Microsoft’s Xbox are the go-to sources for today’s savvy gamers. Nintendo released the Nintendo Entertainment System in 1985, the best-selling console in history. The PlayStation was released 1995, the most popular system of its time, followed by Microsoft’s release of the Xbox in 2001, boasting the most popular game ever — Halo: Combat Evolved. Nintendo broke all the rules in 2006 with its gesture-controlled Wii. This, however, was preceded by the first gesture-controlled (and highly criticized) system: Mattel’s Power Glove. Yes, from that movie. A LOOK TO THE FUTURE What’s next for intrepid gamers? Virtual reality. At least Sony’s Project Morpheus and Facebook’s Oculus Rift hope so. These consoles feature a headset with a screen for each eye, creating the most lifelike gaming experience ever.
Clockwise from top left: Video games Project Morpheus, Tennis for Two, Periscope and Pac-Man.
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tech+design
powering up is like a
walk in BY JANE GLEESON
T
he next time you find yourself frantically searching for an outlet to power up your dying iPhone, you might want to think about taking a walk instead. That is, if you’re wearing SolePower’s EnSole — a shoe insole that generates and stores power as electricity. The removable insole (available as the EnSole and EnSole2) weighs no more than seven ounces, including the battery PowerPac, and charges electronics via USB. Originally designed as an energy-harvesting light-up shoe to keep university students safe when walking at night, the EnSole has turned SolePower into a promising Pittsburgh-based startup. The SolePower system is the brainchild of Matt Stanton and Hahna Alexander, two Carnegie Mellon University (CMU) mechanical engineering students who took the light-up shoe innovation to the next level by creating an alternative to traditional heavy power packs and solar-driven chargers for smartphones, iPads and tablets. 14
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Stanton admits to being SolePower’s businessperson while Alexander is the company’s techie. The result of their combined expertise is a lightweight, weather-independent system that is getting lots of attention from backpackers, hikers and other outdoor enthusiasts who often find themselves in remote locations. The inventors are also seeing a market for the defense industry and humanitarian organizations working overseas. The fact that the product is an insole versus a shoe
the park HOW IT WORKS
• To generate power by walking, the cut-to-fit SolePower insole can be placed in any shoe or sandal. A drive train converts the energy of heel strikes into rotational energy, spinning magnetic rotors.
gives the company versatility: It can be put into a sandal for use in developing nations or sold to a boot company that supplies footwear for soldiers. The waterproof and weather-resistant insole is designed to endure three years of walking an average of 2.5 to 5 miles a day. “For every hour of walking, you get 2.5 hours of talk time back on your iPhone,” says Stanton. “It’s been a whirlwind the last few years, Stanton says, noting that the company recently walked away with a $100,000 prize from AOL co-founder and ven-
ture capitalist Steve Case’s Rise of the Rest startup business pitch competition. It also took top honors at CMU’s 2013 McGinnis Venture Competition and was named a 2014 Popular Science Invention Award winner. And in June, Alexander demonstrated SolePower’s technology at the first White House Maker Faire. Expected to be released to retailers in spring 2015, the products will range in price from $69.99 for a spare PowerPac to $149.99 for the EnSole and $199.99 for the EnSole2.
• The power generated while walking is stored in an external PowerPack. This PowerPack is waterproof and can be placed inside of a fabric holster that integrates with the shoelaces to create a secure and comfortable attachment. • Electronic devices can be charged by connecting them to the PowerPac’s USB port. Almost any device that can be charged using a computer USB port can be charged by the PowerPac.
X-OLOGY • FALL 2014
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educationkaleidoscope
IN PURSUIT OF
HEALTHY FOOD AND
PHOTOS COURTESY KETTERING UNIVERSITY
JOB CREATION
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FALL 2014 • X-OLOGY
BY LESLIE MERTZ
G
“
ive a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” But what happens if you teach him to grow fish and vegetables? Kettering University’s Center for Culminating Undergraduate Experiences (CCUE) has teamed up with Flint’s nonprofit Metro Community Development to find out. They believe the result may just bring healthy, locally grown food, as well as jobs, to area families.
X-OLOGY • FALL 2014
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educationkaleidoscope
Multiple Disciplines = Multiple Benefits
In the cyclical aquaponics system, fish feed the vegetables and the vegetables feed the fish.
The project revolves around aquaponics, an enclosed system that combines a fish farm with a vegetable farm. It works like this: Fish live in a shallow fish tank where they feed on garden scraps; the water from the tank — including the nutrition-packed waste from the fish — is pumped into a raised garden bed, where the waste feeds the plants; and the now-clean water drains back down to the fish tank. “It’s a cycle,” says Matthew Sanders, Ph.D., director of CCUE and professor of industrial engineering. “We’re using the water over and over, the fish feed the vegetables and the vegetables feed the fish.” AN IDEA IS BORN The idea for the project came from Metro Community Development, an organization that fosters community development initiatives and partnerships within Michigan’s Genessee County region. “We were looking at aquaponics from an economic development point of view,” says Ravi Yalamanchi, CEO. If an aquaponics system can be scaled up to a large operation where costs are minimized and production is maximized, such an operation would employ local workers, provide good food for the area population and bring money into an economically challenged region. 18
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“Kettering has always been a great partner to Metro, so we approached the university and Matt (Sanders) in particular, because he has a background in this area,” Yalamanchi says. On the heels of another successful nonprofit collaboration that used solar panels and geothermal heating for an urban-garden greenhouse, Sanders was quick to sign on. “I could get my students involved and the community would benefit. It was a win-win situation,” he says. A SOLUTION-DRIVEN PROJECT The aquaponics project was a good fit for the CCUE in which Sanders directs the students in his interdisciplinary Senior Capstone Design course to “think outside the box” and develop solutions to real-world problems (see sidebar). CCUE students got started on the Metro project by conducting extensive research on aquaponics systems. “It’s a lot bigger project than I anticipated,” says Kettering student Jeanette Smith, who is writing her senior thesis on the project. “We had to consider things like how we could pump the water efficiently and how we could capture as much sunlight as possible, especially being in a northern climate.” The students looked at which types of vegetables would grow well, provide the best economic return
A multidisciplinary approach is best, especially when it comes to problem solving, according to Dr. Matthew Sanders of Kettering University. That has been especially true for the students in his Senior Capstone Design course who have been working on the aquaponics project. “This is an interdisciplinary capstone course, so we have students from different departments who have to work together,” Sanders says. For the aquaponics project, students represent diverse fields, such as mechanical engineering, electronics and chemistry, and each brings a different perspective to bear. To accomplish anything, the members of the team have to learn from one another, and then proceed toward a common goal. That is an important lesson especially in today’s increasingly multidisciplinary job environment, he says. “Like in a reallife job environment, they have to deal with each other, and figure out how to work together and succeed within a timeline. It is excellent experience.”
and offer the most nutritious or best-tasting choices to the buying public. Most grocery stores stock vegetables that travel well or retain the color long after they’re picked, she explains, but not necessarily for their taste or their nutritional content. “We’d like to offer our community organic, nutritionally superior produce fresh off the vine and at a reasonable price,” says Smith. The students even discussed ways to rely not only on vegetables as profit-makers, but also on the fish, which was a bit more difficult. “Because a single fish can produce enough food for five to 10 plants, the number of fish that we’re able to grow is limited based on the space for our produce,” she says, adding that fish can take a year or more to grow to a marketable size. “So we’ve looked at all kinds of fish, including walleye, salmon and ornamental fish like the koi, and we’ve thought about growing fish only to fingerling size (and selling them to a hatchery).” While they were trying to optimize the system, the students also developed a software application (see sidebar) to provide 24-7 monitoring and management of the system. CREATING THE MODEL As the research progressed, the students built the prototype, which measures 4 feet wide, 5 feet deep and 6 feet tall, in the lab at Kettering. As it neared completion, they began considering how to enlarge it to the size Metro has in mind: a 69-foot by 41-foot garage space with a high ceiling. “The Metro location will be a pilot so we can learn about the infrastructure that is needed for a large-scale aquaponics system and the costs associated with it,” Yalamanchi says. Much of the labor to construct the Metro system will come from students in the nonprofit’s YouthBuild program, which helps disadvantaged youth gain job and life skills. “If the pilot is successful, then we’re planning to expand it in 2015 to a full-scale production at our smallbusiness incubator located in the former Farmers Market in downtown Flint,” Yalamanchi says. That will present additional opportunities for YouthBuild students. “What we’re hoping is that once this is set up, rather than going out and hiring people, we want to train our students on the aquaponics project so they can see the employment possibilities in the food market, whether it’s in growing, packaging, distributing or selling.”
Dr. Matthew Sanders discusses the aquaponics project with Kettering students Jeanette Smith and Ahleum Kwag.
An Aquaponics App The Kettering University students went above and beyond in the development of their aquaponics system. Besides designing and building a fully functional, economical and effective prototype, they added a software application that can control the whole system with a few taps on a smartphone. “With the expertise of some of our engineering students, we wrote the software so that we can monitor everything from the temperature and pH of the water to how the vegetables are doing,” says Professor Matthew Sanders. On top of that, the app makes it possible to control any combination of factors within the system remotely. The app will significantly help with cost control in the larger-scale pilot at the nonprofit Metro Community Development, and ultimately the aquaponics project planned for the site of the former Flint Farmers Market, says Ravi Yalamanchi, CEO of Metro. “To be cost-effective, we can’t hire someone to be on site 24 hours a day, so this is a great way to increase efficiencies.” It will indeed result in cost savings, but the app represents something extra to Sanders. “This project is about more than aquaponics. Anybody can look at YouTube and make an aquaponics project. That’s not what we’re doing. We are asking our students to come up with creative ideas for a problem. That’s what this app represents: Our students are thinking outside the box, and that’s where real innovation comes in.”
He also foresees the project developing smaller but similarly self-sustaining aquaponics models that individual families can implement to grow food for themselves or to sell to neighbors. “From what we learned, the Flint/Genesee community spends about $1 billion in food a year, but about 90 percent is coming from outside,” Yalamanchi says. “We’re not looking to have a multimillion-dollar aquaponics business, but we do hope to provide some economic opportunities, including jobs, for low-income residents. We’re approaching it in incremental steps: first, to learn how to do it in the most efficient way possible and, second, to see just how effective it can be in our community.” X-OLOGY • FALL 2014
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peopleprofile
“Just like soccer, the patent process is a game of both finesse and endurance. The game isn’t won at the kick-off, and the ability to adjust your strategy throughout the game gives you the best result.”
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Stephanie M. Mansfield, Ph.D. Registered Patent Agent Brooks Kushman P.C., Southfield, MI WOW FACTOR Stephanie Mansfield is a patent agent at Brooks Kushman P.C. with 17 years of experience in obtaining patents for medical and biomechanical devices, engineering tissues and healthcare products. “In my job, I get to see the latest advances in technology and then secure patent protection for those inventions. Inventions can span from simple mechanical devices to complex therapeutic systems, but even seemingly small innovations can make a big impact. For example, one client developed a relatively simple product that greatly enhanced the usability and effectiveness of a device for treating sleep apnea. Not only were we able to obtain broad U.S. and foreign patent protection for the invention, but we also aided this startup company by securing trademarks for its products and successfully enforcing its patent against companies that introduced competing products.”
and development process, resulting in an increased number of application filings as companies seek to stake out their territory amongst their competitors.”
PASSION FOR INDUSTRY “My clients range from individuals and small startups to research institutions and large companies. Their areas of technology range as well, allowing me to constantly add to my existing scientific knowledge and leverage that accumulated expertise for my clients’ benefit. Obtaining patents involves both technical analysis and creativity in order to best distinguish the new invention from what existed previously. Once introduced, the new technology can result in important advances in medical care and improvement in the quality of life for many individuals.”
CREDENTIALS • Bachelor’s, Biomedical Engineering, Northwestern University • Master’s, Mechanical Engineering, University of Michigan • Ph.D., Biomedical Engineering, University of Michigan
VIEW FROM THE TOP “U.S. patent strategy has shifted since the America Invents Act (AIA) came into effect. AIA harmonized U.S. patent law with patent laws in foreign countries so that the date of filing a patent application, rather than the date of any prior inventive activity, now determines the priority of a client’s invention as compared with others. This change requires companies to consider pursuing patent protection for innovations earlier in the research
CORPORATE CLIMB While pursuing her B.S., Mansfield conducted research through internships at Dow Chemical, and she entered graduate school with the intention of pursuing a career in academics. However, upon completing her Ph.D., a job opportunity at Brooks Kushman caused her to take a different path. “I thoroughly enjoy how this practice combines scientific analysis, technical writing and patent strategy. Although the inventors will always be the technical experts, with my scientific and research background I’m able to understand and speak their language, allowing me to obtain the strongest possible patents for their inventions.”
VOICE OF EXPERIENCE “In the life sciences and medical industries, as in other sectors, patents are important company assets for creating and maintaining an advantage in the market. Considerations for successfully obtaining patent protection for an invention include understanding the technology, a client’s business needs and the competitive landscape. However, these factors, and even patent law itself, can be moving targets, such that it is essential to remain flexible and informed. The biomedical industry in Michigan is growing rapidly, bolstered by VC interest and catalysts such as innovation competitions to support new technology, and it is an exciting time to be a patent practitioner in this field.”
– Interviewed by Matthew Totsky
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HistoSonics blazing new trails in medicine BY MATTHEW TOTSKY
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HISTOSONICS
B
enign Prostatic Hyperplasia (BPH) — better known as an enlarged prostate — is a condition that plagues an estimated 50 percent of all men by the age of 50. Those numbers jump to 75 percent for men 80 years or older, and more than two million men in the U.S. seek treatment annually for the condition. Most of these cases are treated with drugs and approximately 350,000 require surgical or minimally invasive procedures each year. Invasive surgical options come with a high risk of complications, whereas minimally invasive alternatives may not provide long-term relief. But now, there is a renewed optimism for relief thanks to work being done by HistoSonics in Ann Arbor, MI. “Our mission is to be the technology and market leader in non-invasive surgery,” says Chris Gibbons, president and chief executive of HistoSonics, a company that began operations in December 2009. “It is our hope that histotripsy platform technology will replace traditional procedures to help reduce patient
The VORTX RX system provides the surgeon with tools to plan and deliver histotripsy.
trauma and healthcare costs significantly.” Histotripsy, developed at the University of Michigan, is a non-invasive soft tissue removal technique (called ablation) that mechanically disrupts target tissue, resulting in complete cellular destruction with no thermal injury. During the process, the liquefied tissue is absorbed or voided without remnants or scarring. “Histotripsy is a way to control cavitation — the formation and maintenance of ener-
getic microbubbles from ultrasound pressure changes that destroy unwanted tissue,” says Gibbons. “The process uses therapeutic ultrasound to treat tissue by pulsing sound energy into the body and creating a cavitation in the target tissue. “Because histotripsy is a mechanical, non-thermal process, the boundary between treated and untreated tissues is very precise,” Gibbons says. “Essentially, we are creating and controlling cavitation to mechanically destroy tissue without heat. This results in less inflammation and less overall trauma.” THE ORIGINS OF HISTOTRIPSY Histotripsy technology was invented at the University of Michigan by a team that included Charles Cain, Ph.D.; Brian Fowlkes, Ph.D.; Tim Hall, Ph.D.; and Zhen Xu, Ph.D., from the Department of Biomedical Engineering, and William Roberts, M.D., from the Department of Urology. The process was in development for nearly 10 years before being licensed to HistoSonics in early 2010.
More than two million men in the U.S. seek treatment annually for the condition Benign Prostatic Hyperplasia — better known as an enlarged prostate.
BPH is the first clinical application of histotripsy and scientists at the University of Michigan are researching other applications, including lithotripsy, cancer tumor ablation, blood clot thrombolysis for deep vein thrombosis and cardiac tissue ablation. Gibbons sees her company being heavily involved in this undertaking. “As a startup company, HistoSonics is focused on BPH with other applications on our road map,” she says. “We plan to advance other applications in parallel with BPH. In the field of urology, this could include treatment for things like kidney stones and prostrate cancer. Treatments for liver cancer and blood clots are examples of applications that would take place outside of urology.” THE VORTX RX HistoSonics has developed the VORTX RX system to provide surgeons with the tools to plan and deliver histotripsy to their patients. At this time, it is strictly an investigational device and is limited by law to investigational use by qualX-OLOGY • FALL 2014
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INVESTING IN MICHIGAN
COURTESY HISTOSONICS
The HistoSonics team is committed to becoming the technology and market leader in non-invasive surgery.
ified investigators in the United States and Canada. The histotripsy treatment begins with 3D image reconstruction of the prostate. The urologist then creates a 3D outline of the target tissue volume to be treated. After confirmation of the procedure plan, the urologist precisely navigates the histotripsy treatment through the target volume using joystick controls. The urologist is able to monitor the procedure in real time with ultrasound image guidance throughout the treatment. Once treated, tissues change in ultrasound appearance from bright to dark, enabling the surgeon to easily track the treatment as it progresses. “We built upon the great work done at the University of Michigan and developed a clinical use system to begin the clinical study phase for the device,” says Gibbons. “With histotripsy, you can see the treatment in real time and it looks like a vortex or a tornado bubble cloud, which is how the VORTX RX got its name.” The VORTX RX aims to provide the long-lasting benefits of a surgical treatment while minimizing the possible types of side effects or complications often found with medications and surgeries. The first treatment of a patient with BPH using the VORTX RX device was performed by urologist Timothy Schuster, M.D., at ProMedica in Toledo, OH, in July 2013. The study is also being conducted at the University of Michigan by John Wei, M.D., in the Department of Urology, who performed the first histotripsy treat24
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ment at U-M in November 2013. “We’ve enjoyed great support from U-M’s urology department throughout the clinical trial design phase and the study’s execution and patient recruitment,” says Gibbons. “And we’ve worked in conjunction with the team at ProMedica. These sites are conducting a pilot clinical study that will enroll a limited number of men with BPH symptoms at both facilities. The primary goal of the pilot clinical study is to demonstrate safety of the VORTX RX in the treatment of BPH.” So far, the reaction in the medical field to histotripsy and the VORTX RX has been quite strong. “The urology community continues to recognize the unmet clinical need for a non-invasive therapy that removes tissue volume (debunks) in the prostate,” Gibbons says. “We do, however, have a long clinical pathway ahead of us. This includes safety studies and broader based pivotal studies that are required for regulatory approvals. The path to sale of the device is still three to four years down the road because we have to follow the process and demonstrate that the device is safe and effective before it can be approved for sale. Some devices can get to market more quickly, but newer, innovative ones like ours often have a higher hurdle. It is important for a revolutionary technology platform like histotripsy to follow this rigorous scientific and clinical process to ensure it achieves its potential for dramatically improving patient outcomes.”
Each year, privately held companies from a range of industries are evaluated by a committee of qualified venture capitalists called the Michigan Growth Capital Symposium (MGCS). Presenters are selected based on the following criteria: market opportunity, competitive advantages, intellectual property, partnerships, business/technology platform, financial projections, exit strategies and the quality and experience of the management team. Thus, the annual MGCS event is touted as the premier venture event where financiers meet “the ‘Best of the Midwest’ high-growth companies in new businesses and emerging technologies.” “It is a terrific forum for nationally based investors to converge in Michigan,” says Chris Gibbons, president and chief executive of HistoSonics. “It shows a global application for our product and an overall spike in Midwest investing. Things are growing at a disproportionally higher rate here as opposed to what’s going on in the rest of the country.” This year, HistoSonics was recognized by the MGCS and Gibbons was selected to present at the event on June 17, 2014, at the Marriot Resort at Eagle Crest in Ypsilanti. The importance of getting funded and launched in Michigan is not lost to Gibbons. Previously, she participated in Michigan Venture Capital Association’s (MVCA) Entrepreneur-in-Residence program. “The MVCA is a nonprofit trade organization that brings together venture capital industry participants in our state. Their goal is to grow and sustain a vibrant venture capital community in Michigan,” she says. “They support entrepreneurs who want to stay in Michigan and help them find technology within the state so they can launch companies here and ultimately keep them in Michigan.” The MVCA EIR/CEO Placement Program is now called the Executive Attraction Program and is described as being designed to increase the number of venture-backed executives and the number of successful venture-backed companies in Michigan. “The program was instrumental to the launch of HistoSonics,” says Gibbons. “By teaming with a venture fund (venture investors), the company was able to attract a strong financing syndicate and optimally prepare for launch so that we could hit the ground running. I can’t say enough good things about the program.”
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MICHIGAN BUSINESSES: BY ILENE WOLFF
H
e has no hard numbers to back his claim, and he hasn’t done a formal study, but Tim Petersen says he would bet there are more venture capitalists in the Ann Arbor, MI, building that houses Arboretum Ventures than there were in the entire state in the 1990s. “There were a handful 10 or 15 years ago,” says Petersen, managing director of Arboretum Ventures, a venture capital firm specializing in the healthcare sector. “Now there are three to four times that, and I think it’s both quality and quantity.”
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GOOD MEDICINE FOR VCs Tom Kinnear, professor of business and entrepreneurship at the University of Michigan, agrees. “It was pretty horrid back 15 years ago, 20 years ago. Now it’s exciting,” he says. Much of the recent VC investment is focused on medical-related companies. In fact, this year saw the state’s largest single venture capital investment round — $59.5 million — invested in Plymouth Township-
based ProNAi Therapeutics Inc., which develops drugs to fight cancer. Survey information in “2013: Investing in Michigan’s Future,” from the Michigan Venture Capital Association (MVCA), bears out Petersen’s and Kinnear’s claims. The MVCA’s membership includes almost every venture capital company in Michigan. In the past five years, the number of venture capi-
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tal investment firms in Michigan has increased by 44 percent, compared with a 6 percent increase in the number of firms nationally, according to the MVCA report. The number of VC professionals in Michigan has increased 84 percent, compared with a 13 percent decrease in professionals nationally. Several national firms established Michigan offices in 2013, including Baird Capital and Cultivian Sandbox Venture Partners. Their addition brought the number of national firms with a Michigan presence to 10. Almost two dozen VC firms in the state are actually based in Michigan, and three of them were new in 2013.
“If you look back over 10 years, about 66 percent (of VC money) was to life sciences ventures. Looking ahead, I think that we’re going to see a different mix of investments.” – PAULA SORRELL MANAGING DIRECTOR OF ENTREPRENEURSHIP & INNOVATION, MICHIGAN ECONOMIC DEVELOPMENT CORPORATION
That impressive growth continues. Since the report was published, ex-Chrysler executive Tom LaSorda jumped into the venture capital ecosystem, establishing IncWell in Birmingham, MI. IncWell had invested about $2 million in 12 companies, according to a Detroit Free Press column in August, and was about to open a second fund totaling more than $2 million with several other ex-Chrysler executives and Stephen Polk, former R.L. Polk chairman. IncWell not only joined the MVCA, the company also took advantage of its program for VC fellows. Reda Jaber, an MVCA fellow, is IncWell’s director of business development and leads its medical sector. Initial companies funded by IncWell with invest28
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ments of $100,000 to $250,000 are a diverse mix, according to the column, and include CureLauncher, a Bloomfield Hills startup that matches people with clinical trials. Additionally, according to the MVCA report, in 2013 there were 116 active, angel-backed companies in earlier-stage development in Michigan, a 137 percent increase in the past five years. When it comes to sheer dollar amounts, Michigan is also doing very well. The MVCA reports that total capital under management in Michigan rose 45 percent, while nationally it rose by 7 percent. The average fund size in Michigan rose by 8 percent, while nationally the average fund size decreased by 1 percent. The total venture capital under management among all firms operating in Michigan has grown since 2009, from $2.4 billion to $4 billion, an increase of about 66 percent. For Michigan-based firms, capital under management rose by 12 percent in 2013, compared with the previous year. About 84 percent of that capital has already been deployed, with 3 percent reserved for follow-up financing and 13 percent available for new investment. The National Venture Capital Association reports that Michigan had $108 million in venture capital invested in 72 deals in 2013, lagging behind Illinois (93) and Ohio (86) but in front of Indiana (15), Minnesota (39) and Wisconsin (19). However, many of the deals included in the national data represent pre-seed and economic development organization investments that are excluded from MVCA’s data. More targeted data collected by the MVCA shows that the total investment in Michigan was actually $120 million in 40 companies in 2013. Additionally, angel investors pumped almost $10 million into Michigan companies last year, according to the report.
THE PERFECT PITCH
WHO’S GETTING THE MONEY? ProNAi, the Ann Arbor biopharmaceutical company that secured the largest round of VC money ever in Michigan, is just one shining example. Other life sciences success stories include an $80 million initial public offering by Esperion Therapeutics, producer of therapies for high cholesterol; and the $130-million acquisition of Pioneer Surgical, a maker of orthopedic and other biologic implants. ProNAi, Esperion and Pioneer aren’t alone among medical companies successfully securing funding. Life sciences companies represent the biggest chunk of venture capital investments in the state, at about 45 percent. “I think that’s driven by the research universities and the big hospitals,” says Jim Adox, MVCA chairman. “That’s really what’s driving it, medical innovation.” Paula Sorrell, managing director of Entrepreneurship & Innovation with the Michigan Economic Development Corporation, agrees and says, “If you look back over 10 years, about 66 percent (of VC money) was to life sciences ventures.” However, she adds, “Looking ahead, I think that we’re going to see a different mix of investments.” Sorrell says she expects more investment in advanced materials and vehicle-related technology. STATE AT A TIPPING POINT? Whatever the mix, Sorrell says she expects a decision on spending more money to woo private venture capital to the state, in the form of Venture Michigan III, before the end of the year. It’s her job to make a recommendation to the Michigan Strategic Fund Board, but Sorrell says details are still being worked out. “It’s all very to-be-determined right now,” she says. Venture Michigan funds, which began in 2012, are sourced by debt borrowing, a strategy initially employed in Oklahoma to give its economy a boost. Michigan is one of 10 states that use debt vouchers to pour money into promising ventures. Other states use direct appropriation. Almost all of these funds invest in advanced technology, whether it’s medical or advanced materials and manufacturing. Venture Michigan Fund I contributed about $95 million in new capital to the venture community, while VMF II contributed about $120 million, according to the MEDC website. The VMFs attract new private money by offering matching funds to qualified projects.
What is the secret to crafting the perfect pitch and ideal strategy to raise money to support a startup? According to one expert, the best approaches do not to focus on capitalization at all. “Too many entrepreneurs say ‘Imagine what I could do if only I had the capital,’” says Michael Brennan, business commercialization and capital investment adviser to clients at two Oakland University-affiliated business incubators: the Macomb-OU Incubator and OU INC. “That is the walk of death.” Instead of becoming an expert at obtaining venture capital or other funding, entrepreneurs should hire a professional to advise them on a commercialization strategy or link up with an incubator, Brennan says. That, he explains, gives them the time and energy to focus on building the value of their business by finding customers or building a management team. Brennan’s advice comes from real-world experience. Before he began advising incubees at the two OU incubators where he works, he raised several million dollars for his own real estate and mortgage business in the 1990s. “That’s how I got started in the business, by realizing the mistakes,” he says. “I learned so much, but much of that learning was painful.” Brennan says he eventually sold his company and signed on with OU to help others. In addition to Brennan, X-OLOGY talked to other experts in government, VC firms and those who’ve successfully capitalized their startups to learn what advice they have for entrepreneurs seeking funding. Here’s what they had to say: “Talk to the (state’s) Small Business Development Center Technology Team. They specialize in helping creators develop pitches, and their services are free.” — Paula Sorrell, managing director of Entrepreneurship & Innovation, Michigan Economic Development Corporation “Really know about whom you’re pitching to. Know about me, who my prior investments are. If you’re pitching to me, ideally you’d have a warm introduction to me.” — Jim Adox, chairman, Michigan Venture Capital Association “We’re pretty transparent in our public faces. Get on the Internet. Do your homework and be appropriately selective. Tailor your pitch. Figure out which college classmate of yours works for one of my companies. Take the time to figure out if you know somebody who knows us — it’s worth it.” — Tim Petersen, managing director, Arboretum Ventures “Have a big idea with a large market, and a company that would have a valuation of $100-300 million a few years down the road. Have your management team in place, angel money and a product in beta testing. Having revenue and real customers is even better.” — Tom Kinnear, professor of business and entrepreneurship, University of Michigan “Start the process early. It’s easier to build a relationship when you don’t need the money. Show the investors who you are, what you have accomplished, what you will do next, and do that over time so they know your capabilities and you know them. Keep asking yourself: ‘Is this funding team the right fit for our product? Where we are going? Who are we?’” —Christie Coplen, president, VERSICOR “Approach each meeting as a potential partnership. Don’t come to the table to ‘pitch.’ Engage in dialogue instead of presenting the entire time. Find out what their important issues are by asking them. Don’t assume anything from what you’ve read or been told.” — Amy L. Earl, chief operating officer, CureLauncher
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MEDICAL MAIN STREET’S INNO-VENTION CONFERENCE KEEPS RE-INNOVENTING ITSELF That’s good news to the VC community, because the venture capital investors in the MVCA’s survey found that their Michigan-based portfolio companies will need at least $260 million in the next few years, and the firms have just $109 million in reserve for these follow-up investments. “That’s where Michigan Venture Fund III comes in,” says Adox. The VMFs have helped move the state along to reach a tipping point, where national companies like Baird and Cultivian become interested in setting up a local shop in Michigan. “They move to set up an office here because of the VMF,” says Kinnear. “It’s one of the drivers of growth.” Not only that, the VMF helps set off a domino-type reaction with a very positive effect. “Success begets success,” says Arboretum’s Petersen. “We as investors benefit by other investors being around.” THE DOMINO EFFECT Other “dominoes” in the process that have helped Michigan become more of a national player include: • Growing numbers of startups with marketable ideas, as shown in part by the high number of patents issued in Michigan. • Federal research dollars pouring into Michigan universities at a rate of $1.6 billion yearly. “That’s really going back to the beginning of the pipeline,” says Sorrell. • Commercialized spinoffs from those same universities, which, historically, saw Stanford University and the Massachusetts Institute of Technology making a lot of money from licenses and intellectual property. They adopted the same strategy. “The new Michigan is based on these startups and having the money to back them,” says Kinnear. • Independent research organizations, like the Van Andel Institute in Grand Rapids, and hospital initiatives, like the Henry Ford Innovation Institute and Beaumont’s Commercialization Center. “It’s having an impact,” says Petersen. “It’s another source of innovation for us to take a look at.” • The closure of Pfizer seven years ago, which opened up its facilities for use by life sciences entrepreneurs. “Those three buildings are used and filled up by scientists,” says Sorrell. • The 21st Century Investment Fund, part of the 30
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INNO-VENTION 2014, the third yearly conference sponsored by Medical Main Street, a consortium of Oakland County and Southeast Michigan health systems, is bringing back events that were popular at past conferences and has developed some new offerings for attendees, as well. The event is set for Oct. 21-22, at The Suburban Collection Showplace in Novi, MI. This year’s keynote speaker is Krischa Winright, CIO of Spectrum Health and vice president of information technology at Priority Health. She will present “Digital Web & Mobile Experience: What Does It Really Mean for Health Care?” But INNO-VENTION is also expanding its exhibit space, Demonstration Alley. There will be even more companies showing off their latest innovations in life sciences and healthcare technology. The event is also expanding its one-on-one meetings between attendees and purchasing agents from six major healthcare providers. Medical Main Street partnered with the Michigan Economic Development Corporation’s Pure Michigan Business Connect Team to facilitate the matchmaking sessions. Those interested in a one-to-one meeting must have applied in advance at www.puremichiganb2b.com. Four new breakout sessions are on tap, as well. “Intellectual Property: Resources for Navigating the Patent System,” and “If not an Accountable Care Organization, Then What?” run concurrently; so do “How Health Care and Wellness in the Workplace Are an Asset,” and “How Mobile Technology Continues to Transform Health Care.” In addition, the Workforce Intelligence Network of Southeast Michigan will host a session aimed at both those who hire and those who train healthcare workers. Attendees will be able to exchange information in an effort to ensure that job applicants are ready for work their first day. This session also will include an overview of the Southeast Michigan healthcare workforce. The conference will bring back some “oldies but goodies,” as well. Popular events and features returning this year include an evening networking reception on Oct. 21; the Commercialization Competition, during which six startups pitch their products Shark Tank-style to a panel of investors; and the INNO-VATOR of the Year Award and luncheon. Oakland County Executive L. Brooks Patterson, who co-created Medical Main Street in 2008, will welcome attendees on Oct. 22. “Each year INNO-VENTION has gotten bigger as Medical Main Street’s influence extends its global reach,” says Patterson. “Oakland County and the region have created some of the world’s most advanced technologies. I expect this year’s event will be the best we’ve ever had.” Visit www.medicalmainstreet.org for more information and registration. You can get a good feel for the conference by checking out the website’s archive of past INNO-VENTION conferences.
state-managed 21st Century Jobs Fund’s $1 billion from tobacco settlement money, used in part either to invest in capital investment funds or co-invest with them or for loan programs. “Like many things like that, it was a real jump starter,” Kinnear says. • The MVCA itself. “No other state in the Midwest has anything like the MVCA,” says Petersen. MVCA’s Adox, the current association chairman, cites in particular his group’s talent programs — for business fellows and for executives — that help develop and retain talent in Michigan by creating career opportunities for them.
Congratulations to Our Colleagues Selected as 2014 Best Lawyers in America 速
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SUSAN R. POLLACK
lifestyle
LACK R. POL SU SAN
so you think you know
ANN ARBOR... The options are endless in this vibrant college town BY SUSAN R. POLLACK
Hordes of visitors to Ann Arbor this fall will be heading to the legendary Big House — Michigan Stadium — to watch the University of Michigan Wolverines play football. But if you’re not a Big 10 pigskin fan, there are plenty of activities around this campus town that have nothing to do with tailgating and scoreboards. Even if you think you know Ann Arbor, you may be surprised at the range of recreational options, indoors and out, from craft-beer sampling and river paddling to sauerkraut-making and tequila-tasting. The fun starts with the seven-item sampler on the following pages.
Above, from left: Kelsey Museum of Archaeology houses a treasure trove of ancient artifacts. The student-designed MiSo House (Michigan Solar House) at Matthaei Botanical Gardens boasts zero-energy consumption. The Herb Knot Garden is a fragrant spot at Matthaei Botanical Gardens in Ann Arbor. Opposite page: Ann Arbor is becoming known as a craft beer hub. X-OLOGY • FALL 2014
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INSPECT ANCIENT TREASURES If you’ve always wondered what’s inside that quaint, turreted building on State Street, now’s a great time to find out. Enter the new Upjohn Wing of the renovated Kelsey Museum of Archaeology and you’ll find a treasure trove of priceless ancient art that’s free for visitors to admire. From magical amulets and mummy masks to an array of coins and textiles, more than 3,000 tools, vessels and other artifacts offer a window into the lives of the ancient Greeks, Romans, Egyptians and Middle Eastern civilizations, including many objects excavated by University of Michigan archeologists. As Cathy Person, the museum’s education outreach director, says, you could think of amphora — two-handled storage jars used for wine or oil — as “the Tupperware of antiquity.” What about those little burial statues called ushabtis? The small figures represent servants for the dead that are placed in royals’ tombs to serve mummies in the afterlife. The Kelsey’s mummy of a little boy about 3 years old, with six fingers on one hand, is a hit with kids. www.umich.lsa.edu/kelsey SAMPLE SMALL-BATCH SUDS Ann Arbor is gaining a national reputation as a top beer-brewing city, winning 4th place in the 2013 Beer City USA annual poll. Hops fans can sample an amazing array of craft beers — and tasty food — at Washtenaw County’s three brewpubs and nine microbreweries that brewed and sold 14,588 barrels of beer last year. A good place to start is Washington Street in Ann Arbor, home to both Grizzly Peak and Arbor Brewing Company, the state’s No. 1 and No. 4 top-selling 34
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brewpubs, respectively. Together, they rolled out 2,623 barrels in 2013 — or about 15 percent of all the craft beer brewed by Michigan’s brewpubs, including Arbor Brewing’s popular Sacred Cow and Bollywood Blonde. Move on to nearby hotspots Jolly Pumpkin Café & Brewery, Blue Tractor BBQ & Brewery and, for lagers, Wolverine State Brewing Company. Ashley’s Restaurant & Pub also has a wide, rotating selection of craft brews on tap. Elsewhere in Washtenaw County, try Chelsea Alehouse Brewery and Original Gravity Brewing Company in Milan. TOUR A TILE STUDIO Every Thursday at 11 a.m., visitors are invited to take a free tour and marvel at the sure, steady hands of SUSAN R. POLLACK
lifestyle
RUN THE CASCADES Though tamer than Spain’s famed “running of the bulls,” Ann Arbor’s favorite new outdoor pastime, “running the cascades,” provides some memorable thrills of its own. A series of nine drops and pools, Argo Cascades offers paddlers and tubers an uninterrupted float trip along a short, peaceful stretch of the Huron River near downtown. Practicing first on the pond area, beginners learn how to go with the flow in this 2 ½-year-old manmade attraction that was designed to bypass Argo Dam and remove a difficult boat portage. Paddlers may take out their boats before the last drop, drag them back up the grass and repeat the run for more cheap thrills — and, hopefully, few spills — in the clean, sandy-bottomed river that ranges from 6 inches deep to nearly 5 feet in spots. Rental canoes, 1- or 2-person kayaks, 5-person rafts and tubes are available at the Argo Canoe Livery — or bring your own, along with a picnic. Paved walking/biking paths run along the river. www.a2gov.org/canoe
Master briner David Klingenberger turns cabbage into sauerkraut at his craft-food enterprise, The Brinery. Opposite page: Skilled artisans called “Bee Gees,” or bulb glazers, use blue bulbs familiar in baby nurseries to apply color to tiles.
“Bee Gees” — or bulb glazers — at Motawi Tileworks, a design studio and showroom specializing in American art tiles, located on Ann Arbor’s west side. Using the same blue bulb syringes familiar from baby nurseries, skilled artisans pool glaze onto tiles using a centuries-old, raised-line technique called cuenca. Tours run 60-90 minutes and delve into the history and philosophy of the studio launched in 1992 on Packard Street in the garage of Nawal Motawi’s par-
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PHOTOS BY SUSAN R. POLLACK
IN A NUTSHELL: • Ann Arbor was founded in 1824 when John Allen and Elisha Rumsey headed west from Detroit on a one-horse sleigh. Its name was inspired by a shady grove where their wives, Ann and Mary Ann, met to chat. • Population: 114,024 in 28 square miles, including approximately 40,000 University of Michigan students. Eighteen percent of Ann Arbor residents were born outside the United States and 21 percent speak a language other than English at home. • Average age of residents: 27.3 years. • Education: 64.2 percent have four years of college or more. SOURCE: ANN ARBOR CONVENTION & VISITORS BUREAU
Clockwise from top left: Nature themes are popular at Motawi Tileworks in Ann Arbor. Orchids bloom in Matthaei Botanical Gardens’ conservatory. Learn about tequila and mezcal in special tasting sessions at Isalita, a new Mexican cantina on Liberty Street.
ents. Featuring nature, art deco and Frank Lloyd Wright designs, tiles reflect the style and craftsmanship of America’s Arts & Crafts potteries. Twice yearly, during annual spring and winter sales (first Saturdays in June and December), visitors may try their hands at tile decorating at Make-a-Tile workshops. www.motawi.com TASTE TEQUILA Learn the difference between tequila and mezcal at special tequila-tasting sessions at Isalita, Ann Arbor’s festive new Mexican cantina. Bartender and “tequila master” Jeff Westerman guides participants through nuances in flavor, finish, age and price while sharing anecdotes about these spirits made in Mexico by distilling the fermented juice of agave plants. Between samples, dip into palate-cleansing bowls of crisp taco chips, 36
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guacamole and salsa. Arrange a private tasting for 10 or more — family groups, bachelorette parties, etc. — or ask about once-monthly tasting events. Price is $25 per person, plus tax and tip. Reservations are required. Call 734-213-7400. www.isalita.com MAKE SAUERKRAUT Learn Fermentation 101, the ancient art of lacto-fermentation, from master briner David Klingenberger, owner of The Brinery. Handson workshops teach participants basic processes required to ferment vegetables at home, from pickles and sauerkraut to various flavors of kimchi. Attendees taste samples and leave with a jar of kraut and a recipe pamphlet. Add-ons include a t-shirt and lunch at the workshop site, Washtenaw Food Hub, 4175 Whitmore Lake Road, Ann Arbor. www.thebrinery.com
APPRECIATE NATURE Fall is a great time to visit Matthaei Botanical Gardens, which made international headlines this summer for the once-in-a-lifetime bloom of its 80-year-old American agave, also known as a Century plant. Visitors may wander trails, explore display and children’s gardens, browse the well-stocked gift shop and duck into the toasty conservatory to inspect tropical and desert plants — all for free (other than a small charge for parking). Contemplate life while walking the labyrinth, and ponder a greener lifestyle at MiSo House (Michigan Solar House). 734-647-7600; 1800 North Dixboro Road. For longer hikes, head to Nichols Arboretum, fondly known to generations of college students as “the Arb.” Romp amid 123 acres studded with native trees, wildflowers and paths leading to the Huron River. www.lsa.umich.edu/mbg
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X-OLOGY • FALL 2014
37
trends
E-LEARNING ECONOMY
E-Learning: Changing the Face of Education BY JANE GLEESON
I
n the mid 1980s, early adopters of online learning included Western Behavioral Sciences Institute, New York Institute of Technology, Electronic Information Exchange System of the New Jersey Institute of Technology and Connected Education, according to the website InnovativeLearning.com. Nearly 20 years later, in 2003, more than 1.9 million students were participating in online learning at institutions of higher education in the United States, according to a report from the Online Learning Consortium (formerly the Sloan Consortium), an information resource for online higher education. Fast forward to the Consortium’s 2013 report — based on responses from more than 2,800 colleges and universities — which reveals the number of higher education students taking at least one online course has now topped 7.1 million. The 2013 survey also reveals that the percent of academic leaders rating the learning outcomes in online education as the same or superior to those as in face-to-face instruction grew from 57 percent in 2003 to 74 percent in 2013. At Lawrence Technological University, a 4,500-student private university in Southfield, MI, some 9 to 11 percent of students enroll in online courses. “E-learning has changed the way that colleges view the classroom,” says Dr. Richard Bush, executive director of eLearning Services at LTU. “We can reach students, no matter where they are, or the time of day they study best, with the same quality instruction as they would find in the classroom. E-learning allows institutions to bring together technologies and strong faculty to create a learning environment often unmatched on-ground.” E-learning is also a growing trend at community colleges, according to survey results from the National Association for Community College Entrepreneurship and Hewlett-Packard. Survey respondents identified these top five benefits of e-learning: increases access through location and time-flexible learning. resources and information are available to students 24/7. ➤ Teachers can use a wide variety of tools and methods for teaching. ➤ It is a good supplement to face-to-face curriculum. ➤ It can lead to a richer learning experience if integrated correctly, freeing up class time for more engaging activities.
THE E-LEARNING INDUSTRY HAS BEEN GROWING STEADILY:
$35.6
2003
2011
BILLION
$6.5 BILLION
$56.2 2014
$27.1 2008
BILLION
BILLION
ONLINE LEARNING THE PROS AND CONS PROS
CONS
Allows for learning in distant or disadvantaged places Facilitates easy information sharing
Changing technology may create barriers to accessing learning environments Isolates students from one another as well as
between students and instructors
their instructor
Students have multiple ways to communicate,
Self-discipline is important for effective
via discussion threads, online forums and blogs
learning to occur
ENROLLMENT IN ONLINE COURSES HAS SEEN SIGNIFICANT INCREASES SINCE 2008
17%
INCREASE IN ONLINE COURSES
1.2%
INCREASE IN CLASSROOM COURSES
➤ It
➤ More
Worldwide, in 2011, an estimated $35.6 billion was spent on e-learning, whereas today that number has grown to $56.2 billion and is expected to double by next year. Corporations report that e-learning is their second most valuable training method, saving them at least 50 percent when they replace traditional instructor-based training with e-learning — which also cuts down instruction time by up to 60 percent. 38
FALL 2014 • X-OLOGY
OF THE 4.6 MILLION STUDENTS E-LEARNING, 82% ARE UNDERGRADUATES. 14% ARE GRADUATE LEVEL.
UNDERGRADUATE
82% GRADUATE
OTHER
4%
14%
SOURCES: ELEARNINGCOACH.COM; WORLDWIDELEARN.COM; HEALTHCAREADMINISTRATION.COM; DDI.COM; MINDFLASH.COM; SLOAN-C “ONLINE EDUCATION IN US”; IDC.COM; “THE WORLDWIDE MARKET FOR SELF-PACED ELEARNING PRODUCTS AND SERVICES: 2009-2014 FORECAST AND ANALYSIS” AMBIENT INSIGHTS.
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expertoutlook
Linking Education and Innovation in the Medical Ecosystem BY AMY BUTLER
S
outheast Michigan’s medisearch and gave them the chance cal device industry is in the to meet and talk about business midst of a transformation — challenges and potential solutions fueled by an expanding collaboratheir innovations represent. tive partnership linking education, For medical device developers, business and government. Oakmeeting and having the opportuland University William Beaumont nity to collaborate with medical School of Medicine (OUWB) and students at the capstone open Oakland University’s Medical Dehouse presented a unique opporAMY BUTLER vice Incubator, OU INC (with the tunity. One company, Functional School of Engineering and ComInnovation Enterprises (FIE), talked puter Science), along with support about how valuable it is for a medifrom Oakland County’s Medical Main Street, cal student to be aware of an occupational or are exploring ways of integrating innovation physical therapist’s role and what is required and entrepreneurship with nontraditional on their part for success, as oftentimes the medical education. The results are creating physician discharges a patient to various levnew opportunities for learning, business els of occupational and physical therapy for growth and the birth of new ideas. a significant amount of time. OUWB is fast becoming nationally known Additionally, the importance of research for its nontraditional, transformational and substantiating the body of evidence availmethod of providing medical education. able to the therapist to make clinical decisions A key element of the OUWB “educational based on best practices has never been higher. experience” is the Capstone Program. The According to Nathan Barnett, president of FIE, Capstone Program provides an opportunity for students to understand and appreciate the potential to promote health and wellbeing, via scholarly activity, involving a wide range of community- and healthrelated issues. The program features an independent research project consisting of many components that span the four years of school. Each student selects a project as well as a mentor. OU INC has teamed up with the Capstone Program by introducing several of its startup client companies and advisors to the medical students at a recent capstone open house. The client companies offered several topics for consideration by students for their re40
FALL 2014 • X-OLOGY
“By working with and mentoring these individuals and the medical school at large in collaborative research studies, the entrepreneur and medicine have the ability to blend in a much more cohesive way with a virtually limitless ceiling of potential success.” For the students, the interchange affords an opportunity to share some of their extraordinary experiences and ideas, and to learn more about the medical ecosystem in the region. Robert Folberg, OUWB dean, speaks about the value the Capstone Program brings to students, saying: “The program opens doors for our students to realize and expand their capabilities, to look at innovation and how it can impact medicine and to bring their wealth of talent and experience to the medical community. Some of our students who have no research background before medical school do not think it is possible for them to engage in research.” To build on the synergy of the partnership, OUWB, OU INC and Medical Main Street are launching plans for innovative programming that will afford additional opportunities, in a team-orientated approach, that enable medical students, business and community leaders to interact and collaborate around a common theme as they brainstorm key issues, innovate solutions and take action on them. The programming will expand the ideas and possibilities for advancing medical education and innovation when people with varied viewpoints are engaged.
Amy Butler is executive director of OU INC, a Michigan SmartZone Innovation Incubator and Clean Energy Research Center and part of Oakland University’s School of Engineering and Computer Science.
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makingthescene
14TH ANNUAL AUTOMATION ALLEY AWARDS GALA The 14th Annual Automation Alley Awards Gala was held Sept. 12 at the MotorCity Casino Hotel in Detroit. The Awards Gala is the region’s most prestigious event honoring technology organizations and their leaders. The event celebrated the accomplishments and continued growth of the individuals and companies moving Southeast Michigan’s technology economy forward. This year’s Awards Gala included a special video presentation featuring important figures from Automation Alley history to honor the organization’s 15th anniversary, as well as remarks from Master of Ceremonies Cindy Pasky, CEO of Strategic Staffing Solutions; David Hay, senior director of the office of the executive chairman and chairman of the board at Kelly Services, Inc.; Doug Smith, senior vice president of strategic partnerships and government affairs for the Michigan Economic Development Corporation; and Automation Alley Executive Director Ken Rogers. The night also included networking opportunities with top executives, decision-makers and leading members of the region’s business community, a gourmet dinner and an afterglow with live entertainment, dancing and the ever-popular cigar lounge.
1
2014 Awards Gala winners included: 2
• Automation Alley Member Company of the Year: Comau
3
• Educational Program of the Year: Michigan Advanced Technician Training Program (MAT2) • Entrepreneur of the Year: David Wang and Ronny Chiang (BEET Analytics Technology, LLC) • Global Trader of the Year: Firstronic LLC • Technology Company of the Year: Detroit Labs
5
JEFF KOWALSKY
4
9
6
7
10
11
8
12
1. BEET Analytics Technologies co-founders David Wang (second from left), Ronny Chiang and staff 2. Automation Alley Executive Director Ken Rogers 3. Cindy Pasky of Strategic Staffing Solutions 4. Dr. Sree Jasti of Society of Toxicology and Satish Jasti of Bank of America 5. Jacqueline Wilson of Wayne State University and Gloenda Price of Detroit Public Schools Foundation 6. David Hay of Kelly Services, Inc., and Jennifer Llewellyn and Darrin Llewellyn of Troy Michigan Works! 7. Amanda LaRoy and Gary LaRoy of the Michigan Economic Development Corporation and Rebecca Wenglinski of Oakland County Economic Development 8. Sarah Blackmer and Sandy McKinnon of Pratt & Miller Engineering and Oakland County Executive L. Brooks Patterson 9. Sue Zaccardelli and Jerry Zaccardelli of Brown & Brown Detroit 10. Amanda Abernathy and Gary Abernathy of New Horizons Computer Learning Centers 11. Guests of the Awards Gala received complimentary hand-rolled cigars. 12. The Paul Keller Orchestra provided live entertainment.
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FALL 2014 • X-OLOGY
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