Introduction of Entrepreneurship and Innovation

subjects in a Computer Science course in Brazil

Eduardo Felipe Zecca da Cruz, Alexandre Alvaro

Departamento de Computa<;ao de Sorocaba (DComp) Universidade Federal de Sao Carlos (UFSCar) - Sorocaba

Sorocaba - SP - Brasil duhzecca@gmail.com, alvaro@ufscar.br

Abstract-The recent changes in the world and in technology present both challenges and opportunities to the computer education, which must be adapted / change to meet these challenges. More and more computer courses strive to include entrepreneurship and innovation in the curriculum. However, integrating entrepreneurship and innovation education in computing curriculum could have a significant effect on the creativity, innovativeness, leadership and entrepreneurial intentions of computing undergraduates. In this way, this paper present a view on teaching entrepreneurship to computer science students and describe an experience in introducing entrepreneurship and innovation in computing curriculum in a computer science course at Brazil.

Index Terms - Entrepreneurship, startups, education, Brazil.

INTRODlJCTION

The recent global changes in current world order stands out new challenges and opportunities to the computer science education. The existing environment is very different from one decade ago. The technologies, processes, methods and tools have been changing with the globalization, research and development. New interdisciplinary fields like sustainability, social remarks, bioinformatics and robotics has become reality to the computing and is even more influenced by Communication and Information Technology (CIT) [I].

On the other hand, young people face to several challenges in your lives; the rapid technologic advanced, multifaceted carrier, the life style changes and assume greater personal responsibility for achieving "success" in his personal and professional life. Young people need a higher education background, which will give them the qualities, skills and personality to mitigate the challenges during the professional timeline [2]. In Latin America, the young has a big responsibility to achieve successful and is ahnost inadmissible fail, whether in choice of profession or in whatever segment [3].

Related to these challenges, the computer industry is one of the most dynamic and it is becoming reality to several different areas. So, the introduction to the entrepreneurship education in computer science curriculum could be significant effect in creativity, innovation, leadership and entrepreneurship intentions to the students. Historically, the entrepreneurship education has fueled the generation of innovation and technological advantages. Therefore, the entrepreneurship

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education for computer science curriculum significantly increases the ability of the students lifelong and desire to innovate [3].

According to Global Entrepreneurship Monitor [4], the lack of education is the main barrier to the entrepreneurship. The problem in computer science degree is that the curriculum focus in technical lectures instead of complementing with business lectures in order to instigate the business creation during the course. Fry and Leman [5] comment that nowadays the renowned university in US, Europe and China solving this problem introducing lectures in the context of entrepreneurship in curriculum. Additionally, a research about entrepreneurship formal education and preview experience in entrepreneurship related that its increases the self-reliance in students, either to a job in a company as creating your own business [6].

In this context, this paper presents one initiative of computer science degree from UFSCar (Federal University of Sao Carlos), Sorocaba campus, in development of a lecture about Entrepreneurship and Innovation in CIT (Communication and Information Technology) such as the impact that could be observed during theses 3 years in this lecture. Section 2 shows the related work in literature; Section 3 presents the concepts about entrepreneurship and innovation in CIT; Section 4 describes the teaching methodology; Section 5 presents the main results achieved and lessons learned during this course; and, finally, Section 6 presents the concluding remarks and directions for future work.

RELATED WORK

In literature there are some works that related several universities, mainly in US, Europe and China, trying to promote entrepreneurship and innovation. The initiatives could be mentioned in the following areas: (i) introduce technical abilities with non-technical areas like innovation, entrepreneurship, leadership, communication and business model (Mexico University [7], Arizona State University [8], Florida Atlantic University [9], Zhejiang University at China [10], program together with Hofstra University at EUA and Qatar University [11], State University of North Carolina [12], a set of universities from China [13]); (ii) development of startup acceleration and incubation centers (province of West Java at Indonesia [14]); (iii) achievement of studies in order to identify problems, challenges and case of success in introduction entrepreneurship and innovation in computer

courses (Baylor University [5], Polytechnic University of Valencia [3], regional universities from China [15], a set of universities from China [16]).

Additionally, the Stanford\ the Harvard2 and the MIT3 are the main pillars of the entrepreneurship education in US. These renowned universities mix technical with non- technical skills, where the focus is on entrepreneurship, innovation, leadership and merchant areas. From these three universities some startups were created like Yahoo!, Microsoft, Apple, Google, Facebook, among others.

The MIT's programs, although open to students from engineering and science, was centered in Sloan School of Management; the Harvard program's is also allocated in Business School; and the Stanford program's is performed by Engineering School. The MIT and Harvard offers a wide range of courses, looking for introducing management and business techniques based on available technologies. The course uses a variety of teaching methods: study cases, internship, lectures, external evaluations of students task by venture capitalists and hands-on projects. All courses involve teamwork and focus on presentation techniques.

The Stanford Technology Ventures Program (STVP) is hosted by Stanford School of Engineering. It is the main education program on entrepreneurship based on non-technical abilities like merchant opportunities, business, leadership, etc. To do so, the program offers introductory and advanced courses in marketing, financial, strategy and innovation.

In both, the MIT, the Harvard and the Stanford, the entrepreneurship education is part of the formal curriculum and the business activities are funded by the school. In Brazil, a few universities have this kind of initiatives in Engineering or Computer graduation degree. There are three cases that should be mentioned: (i) Federal University of Pernambuco (UFPE), where the students from bachelor's degree in computer science have the option to choose the Entrepreneurship course besides the optative course available; (ii) Federal University of Minas Gerais (UFMG) and (iii) Federal University of Bahia (UFBA), where it is also offers the optative "Entrepreneurship" course in computer science degree. Even so, these courses offer the entrepreneurship and innovation course as optional in curriculum. At this point the case of UFSCar (Federal University of Sao Carlos) - Sorocaba is different because it is a required course in the curriculum. This may have influence due to the recent creation of the computer science degree in this university (five years ago) and the young teachers who arrived with desire to change the way education is provided.

ENTREPRENlJEliRSHIP AND INNOVATION IN CIT

Entrepreneurship is the process to start a new business based on a product or a service. People immersed in this process are driven by the desire to innovate and change the way things are done (status quo). The most common stages of a

1 http://www.gsb.stanford.edu/

2 http://www.hbs.edu/

3 http://mitsloan.mit.edu/

startup are: thinking in an idea, identifying opportunities and feasibility analysis (i.e. validating hypothesis in the market), defining the resources (i.e. people, tools, strategies, etc.), design, development and acceleration of the idea in the market, collect market feedback, improve the product or service, rapid growth and consequent spin-off from startup to the market [11 ].

In last years, the scientific and technological innovation has established as one of the most important factors to ensure growth, competitiveness and high profitability businesses. There are several evidences for the importance of this issue and many studies support the view that innovation is the key to survival in competitive environments. New processes and products, new business models, creating new markets, attracting and retaining talent or enhance the image before partners, new customers and investors, represent some of the results of innovation.

Moreover, the Information Technology and Communication (lCT) have contributed to institution (public or private) becoming more agile in its processes. ICT can be considered as a way to the process of technology-based innovation, increasing productivity and competitiveness.

However, for a long time Brazil failed to exploit their potential in entrepreneurship and technological innovation. In part because government policy had started to invest in RD&I (Research, Development & Innovation) late, and partly because the education and culture of the people in this area have never been focused as a priority. Public universities in Brazil, which are considered as the main sources of qualified professionals, have no dynamism in the process of formation their students and curriculum changes. This can be seen by the amount of curriculum that is not updated frequently in several educational institutions of the country.

TEACHING METHOSOLOGY

The Pedagogical Project (PP) of bachelor degree in computer science from UFSCar - Sorocaba was developed considering issues such as sustainability [17], entrepreneurship, innovation and business management. The project was developed in compliance with curriculum guidelines determined by the Brazilian Computer Society [18]. Moreover, the PP agenda determines that the student's education should be based not only on technical elements, allowing to work not only as a developer or technology broadcaster, but also as an agent of change the society.

The PP's is designed considering two disciplines in the area of entrepreneurship: Small Business Management, and Entrepreneurship and Innovation in ICT. The first discipline bringing all the basic knowledge necessary in order to the student have notions of managing any business in its initial phase. The second seeks to instigate the entrepreneurial profile of the students aiming to introduce non-technical concepts as a way to complement the technical courses of the curriculum. Thus, the focus of this paper is related to the experiences of the second discipline, which has been conducted since 20 I 0, and so far, three groups have done it and attended ahnost 200 students.

The related work (presented on Section 2), mainly considering the experiences at Stanford, Harvard and MIT -references in the entrepreneurship area around the world - and adding the experience of the author of this paper as a spectator, competitor and judge of several startup competitions in Brazil (Brazil Challenge4, Call to InnovationS, Buscape Challenge6, 12P 7 , FGV Latin Moot Corp 8 , Telefonica Wayra 9 , RBS Entrepreneurship and Innovation I 0, IG Startup 11 and Startup Weekend 12 ) it could be defined a teaching methodology appropriate to the course. The main idea of the course is to encourage and provide a way to the students create startups during the semester. To do that, it was created a startup competition during the course where it is the main scenario of creation, evolution, feedback, development and implementation of student's ideas. At the end, a panel of judges evaluates the projects and the three best may win some kind of award or receive invitation to participate of an acceleration process in one of our partners.

The teaching methodology was detailed in 4 major steps: Theory, Idea Design, Idea Development and Presentation. Figure 1 shows these 4 major steps and related topics during the course.

The Theory step aimed at bringing Entrepreneurship and Innovation concepts in order to the students familiarize themselves with the topic: understand what is a startup, what challenges are relevant in the context of Brazil, the expectations of the market, the competition, what techniques are used for creating a startup, and analysis of cases in order to understand all the processes around a successful startup in the market. The sections of a business plan are explored in order to show what an entrepreneur need to worry, considering several business models on the market as a way to illustrate ways to remunerate the business. After that, Lean Startup concepts [19] are presented and compared with the "old model" of creating startups as a way to show how the creation of "agile startups" -failing fast and learning fast - makes sense today. Finally, the concepts of intellectual property were presented as a way to the students understands their rights under the trademarks, patents and software registration considering Brazilian laws and the difference around the world.

The Idea Design step shows a set of market trends for startups, both reputable consultancy (e.g. McKinsey, IBM, Trend Watching, ARC Chart, etc.) as renowned investors I persons around the world (e.g. Steve Blank, Guy Kawazaki,

4 http://www.desafiobr.com.brl

5 http://www3.fiap.com.bricalltoinnovation/

6 http://suaideiavalelmilhao.com.brl

7 http://ideatoproductla.org/

8 http://latinmootcorp.org/

'J http://wayra.orglbr

10 http://www.prei.com.br/

11 http://startups.ig.com.br/premio20111

12 http://brazil.startupweekend.org/

Warren Buffet, Steve Jobs, Romero Rodrigues, etc.); and many speakers I entrepreneur from Sao Paulo, Campinas, Sorocaba region are invited to speak and tell your experiences in his/her startup creation. With this content all students are encouraged to think about any technological-based idea for projects and do pitch's in 1 minute for the whole room (usually between 30% -40% have some idea in the room). After all pitch's, the students have a time to convince other students about your idea in order to join their project team and create the startup co­founder team (up to 4 students). With startup's team composed, the students begin working on the first presentation of the idea, which is based on Guy Kawazaki13 guide (reference in the area of investment in the U.S.): 5/5/30 - 5 minutes, S slides and 30 points. Once done the presentation, students receive feedback from their ideas as a way to start the development. Some videos of entrepreneurs and I or investors are presented as a way to show the challenges, obstacles, failures and successes issues from startups around the globe.

In the Idea Development step, the students looking to understanding better all the details necessary for its startup like merchant, business model, competitors, value proposition, differential competitive, among others. Moreover, the students need to define the hypothesis that should be tested in the market, looking for fail fast and learn fast (one of the main premises of Lean Startup principles [19]). For that, they need understanding more about business model.

According to Osterwalder and Pigneur [20], a business model describes the rationale of how an organization creates, delivers, and captures value. To do that, they created a methodology, called Business Model Canvas (BMC), which was composed of 9 areas in order to help the co-founders to obtain a better knowledge of several important aspects of your startup. The areas are: 1. Customer Segments; 2. Value Proposition; 3. Channels; 4. Customer Relationship; 5. Revenue Streams; 6. Key Resources; 7. Key Activities; 8. Key Partners; and 9. Cost Structure. After developed the BMC, each group presents to the room as a way to gather feedback and learn collectively from all BMC's created in the course.

Additionally, a core component of Lean Startup methodology is the build-measure-Iearn feedback loop. The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question [19]. So, the students must defme and develop a MVP in order to validate the market and collect feedback as soon as they can. This will help them evolve the product I service that ara proposed, decreasing the elapsed time and money.

13 http://www.guykawasaki.com

Theory

• Entrepreneurship and innovation concepts; • Entrepreneurship and innovation scenario at Brazil and amund the

wurld;

• Characteristics, types and entrepreneur abilities;

• Finan�ial supporl al Brdzil (venlure capital, angels, menluring, seed money, equity);

• Business Plan stages, process and critical view;

• Business Models; • Startup, Lean Startup and hands-on; • Analysis of entrepreneurship cases;

• Intellectual property.

• Eut.repreneur talks; • Market trends for startups and CIT (e.g. McKinsey, lliM, Trend

Walching, ARC CharI, etc);

• Pitch 's of students with some idea (e.g. persuade other students);

• Time Lo deline Lhe slarLp cu-luunders based un inLeresL,;;

• PresentaLiun based on 5/5/30 (5min., 5 slides anLl 30 poinLs):

• idea's feedback.

• Hypotheses definition:

• Business Model Canvas development;

• Minimum Viable Pruduct (MVP) definitiun;

• l'vIVP development;

• Elevalor piL�h of lmin.,

• FeeLlback during development.

• Presentation based on 1011 0/30 (10 min., 10 slides and 30 points) to some judges; investors;

• 5 min. to answers;

• Final results (i.e. ranking of better to worst startup); • Awards and with all and investors.

FIGURE 1 TEACHING METHODOLOGY.

At end, the students are encouraged to submit a pitch of only I minute; i.e. try to summarize everything they have learned and presents in 1 minute, which is a very difficult and arduous for students however has an impressive result. This video is usually available on Youtube I Vimeo so all students can watch the pitch's in the next classes.

RESULTS AND LESSONS LEARNED

The main expectation of this course, since its inception, was to bring a privileged knowledge to the students of bachelor degree in computer science from UFSCar - Sorocaba, looking for instigate them to create technology-based startups, even if only during the discipline and nothing else. However, some students are more interested in the subject and end up taking the ideas developed during the course forward. In this sense, three ideas extrapolated activities in the discipline and are being developed by students:

Finally, the Presentation step aims to organize a day where all the students will present their projects in 10/10/30 (10 minutes, 10 slides and 30 points) for a panel of judges consisting of up to 6 persons: teacher, one teacher invited from UFSCar - Sorocaba and 4 entrepreneurs and I or investors in the market. The purpose of this day is to assess students regarding your startups to identify those with the greatest opportunity versus possibility to leave to the market. So, a ranking of startups is defined and the 3 better are rewarded in some way. In 2010, it was awarded with a pen-drive and digital camera, and in 2011 it was awarded with incubation for 2 months in a partner company and, in 2012 the course fmished in February and, probably, the first project will be incubated in Sorocaba city Incubator and the other two will receive an award.

• Brochure: An iOS app that displays the prices of the products in supermarkets around you (e.g. 20km from you), classifying them by product category. You can get more information of the product and the location of the market. This application was submitted to the Buscape Challenge "Your Idea Value 1 million." This app was not selected however there was an idea selected that is 90% equal to this in more evolved stage of development14• So, the students are developing the

14 http://www.meucarrinho.com.br

final version of this product in order to put it online to download in Apple Store.

� Grocery >

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13 � �

Fruits >

Cleaning >

Utilities >

Dough >

Flowers >

Snacks > FIGURE 2

BROCHURE PRINT SCREEN.

• EcoManager: A web system that intends to perform the solid waste management of a city. This system has to meet the government's determination through the National Policy on Solid Waste, which every city must manage their waste properly until 2014. This project won the A ward of Greenpeace Challenge for Smart Cities 15. Now, the students are finishing its first version in order to put in a city hall of Sorocaba in beta test.

--- 0 =::.�o- 0

FIGURE 3 ECOMANAGER PRINT SCREEN (in portuguese) .

• Flagging: An android app that manager the "hot points" of a city. The users can check-in a place near his/her (e.g. lOkm) and say if it is good or not. Based on that, the point in the map above increase or decrease. So, everyone could identify the hot points

15 http://gl.globo.comipernambuco/noticia/20 12/06/equipe-de­sao-paul 0-vence-n 0-reci fe-desafi o-de-cidades­inteligentes.html (in portuguese)

(i.e. restaurants, bars, clubs, etc) that are good to go or not to go now.

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FIGURE 4 FLAGGING PRINT SCREEN .

Still on, a group of four students became interested in the area and initiated the creation of the Junior Company from computer science course at UFSCar - Sorocaba. In the 2nd half of 2011, one of projects of the course was the creation of the Junior Company, creating your business plan, statute and selecting students to operate the startup.

Furthermore, since 2010 it was applied a survey in order to understand the impact of this kind of course into the life of the students. Now it will be presented the composition of the 3 last surveys applied to this course which totally 182 students answered. Additionally, the answers were anonymous which do not intimidate them to answer the survey.

First, it is intends to know what is the knowledgement in entrepreneurship area from the students. Figure 5 show that 59% of the students don't have any knowledge in the begging of the course. Actually, this shows the Brazilian entrepreneurship reality once the entrepreneurship bubble has becoming since 201112012 in Brazil and the next courses will be impacted from those experiences acquired in the market by the students.

Do you have any knowledgement in enterpreneurship area?

FIGURE 5

• Yes

KNOWLEDGEMENTE IN ENTERPRENEURSHIP AREA.

Second, we try to identify what is the expectation of the students during the course. This help us to verify what the intentions of the students in the begging of the course and if there are some changes during the course (related to Figure 8). According Figure 6, 44% answered that would like to be entrepreneur; however 29% were interested only in grade. This should be worked more during the course in order to decrease this interesting of the students. Some insight to do so is try to eliminate the grade from this course and the investor will evaluate the startups and give points to each one; if there are any that do not receive points should doing again the course in the next year.

What is your main expectation during this

course?

• Interested in grade

• Become enterpreneur

• Increase non-technical skills

• Other

FIGURE 6 EXPECTATION FROM THE STUDENTS.

Third, it is intends to know if this course instigate the entrepreneurial skills in the students. The major answer (Figure 7 shows around 83% from Yes and Substantial) say yes but it is necessary increase this vision of the students in order to demonstrate that the leadership, customer development, business and communication skills are so important to the professional / entrepreneur nowadays. More talks from the market could help this factor and will be increased in the next course.

Do you believe that the development of a startup during a computer science course

increase the entrepreneurial skills? 4%

FIGURE 7 ENTERPRENEURIAL SKILLS.

.Yes

• Substantial

.A little

.No

At last, we try to map if the course influenced the students in its carrier decision. According to the Figure 8, 38% intends to create its own business. We believe that this is amazing, considering that the course happened only in the last 3 years. The goal is achieving around 70% in this metric however it should spend more 5 years to achieve that.

Thought these survey we could identify some aspects that should be increased during the course, like show the importance of non-technical skills to computer science students, approximate the students to its customer / market and partnership with investor in order to the projects developed could be really launched to the market. However, the results achieved until now can show the importance of this kind of course to a computing curricula.

After this course, what do you intend to do?

FIGURE 8

• Working in some

technology company

• Become a teacher

• Create your own

business

• Prepare to be a public

tender

• Other

INTENTITIONS AFTER FINISHED THE COURSE.

Additionally, several lessons could be learned during the execution of this course. The intention is to learn from what went wrong and seek to improve the course. So, there are some lessons learned:

• Some theoretical basis is critical to engage students in beginning and it is essential hands-on knowledge by the teacher in order to perform a set of dynamics with students;

• Multidisciplinary is very interesting for the entrepreneurship as a way to complement the skills of co-founders. As the discipline happens in the bachelor's degree in computer science, becomes difficult to obtain this multidisciplinary. However, it has been started some partnerships with other courses from UFSCar - Sorocaba (like business administration and economics) which courses that happens in the same semester and have complementarity to technical skills from computer science;

• Networking in the area is essential to attract entrepreneurs, investors and mentors to talk and join the final judge, as well as industry partners as a way to encourage students through a set of awards and acceleration support of the startups;

• The teacher must have previously entrepreneurship education and innovation as well as experience in entrepreneur area (i.e. be entrepreneur), joined in contest startups, talking to investors, made pitch's in the market, know the market, I.e. have the entrepreneurial profile in order to talk the same language of the market with your students; and

• The method of the course should be executed m a systematic ways in order to provide better assessments

and comparisons of the data obtained in the course year after year.

CONCLUDING REMARKS AND FUTURE WORK

Entrepreneurship and innovation education is becoming the future trend of modern higher education reform [21]. Universities must move with the times and develop new ideas, seeking to develop and/or accelerate startups, especially for higher education institutions in a set of areas of computing / business. The universities must be care to the problems existing into the market and work with real problems during the courser and research in order to create solutions that can be very useful to the society. With creation of new business, everyone wins: the society wins with the return of the investment (ROI) (i.e. taxes paid), the university awarded with the generation of applied research and attracting more resources for research, and market gains with the human resource development high capable. Although it looks like normal to do so in some countries, in Brazil it is very difficult to find universities thinking in the future of its university and doing (real) research together with the industry.

Thus the computer courses in Brazil should be more practical. If we are compared to universities in the world, Brazilian universities do not focus so much on courses that develop practical activities together with students. These activities that resemble those performed on a day-to-day life of an entrepreneur and give an adequate view of what are the challenges that these future entrepreneurs will face.

In this way, the UFSCar - Sorocaba has been working hard at introducing entrepreneurship, innovation and intellectual property in order to strengthen and complement the knowledge of both the students of bachelor degree in computer science and society as a whole through the creation of Startup Club 16,

where monthly meetings are held (Startup Day) through multidisciplinary partnerships near Sorocaba / Sao Paulo city.

ACKNOWLEDGMENT

I would like to thanks some partners that inspired / helped me build this course, like Silvio Meira, Augusto Camargo, C.E.S.A.R. (http://www.cesar.org.br) and UFPE (http://www.cin.ufpe.br). Still. this work was partially supported by the FAPESP, grant 2012110157-1.

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16 http://www.clubestartup.com.br (in portuguese)

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