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6. EDSR 08-14-2006ITEM # 6. vex ~ ; ~ ~ L ~ • ~ : ~_~ , iii ~ ~ i TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic DevelopmentC/~ DATE: August 14, 2006 SUBJECT: Consider Contribution toward Metro Fringe Enterprise Networks Systems Analysis Attachment • July 10, 2006 Staff xepoxt to the EDA xe: Metro Fringe Enterprise Network Systems Analysis Background Last month the EDA heard an overview of the Metro Fringe Enterprise Network Systems Analysis (ENSA) project sponsored by the MN Dept of Employment & Economic Development (DEED) and the Initiative Foundation and as described in the attached staff xepoxt dated July 10, 2006. Issue The Metro Fringe group received a proposal fox project management services to complete comprehensive research on a selected set of potential targeted manufacturing industries fox the Wright and Sherburne County region. Following is a breakdown of the project cost: Cost of Research Services: $10 000 Proposed Funding * -funds committed Initiative Foundation Grant: $ 7,500 Wright County: $ 1,250 Sherburne County: $ 1,250 Big Lake up to $500 Sherburne County up to $500 Elk River request up to $500 Consider Contribution toward Metro Fringe ENSA August 14, 2006 EDA Mee[ing Page 2 of 2 Last month the Elk River EDA was asked to consider making a $500 contribution toward the project Since the EDA had several questions about the project, staff arranged to have Sandy Voigt, Program Manager fox Technology Finance from the Initiative Foundation provide the EDA a brief presentation and answer questions about the ENSA project. Action Requested Following the brief presentation and opportunity fox questions and answers, staff recommends the EDA consider making a matching financial contribution up to $500 toward the Metro Fringe ENSA project. S:\EDA\ENSA project\8.14.06 eda.ENSA project.doc ITEM # 5. rover MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: July 10, 2006 SUBJECT: Consider Contribution Toward Metro Fringe Enterprise Network Systems Analysis (ENSA) Attachments ENSA Presentation to Sherburne County Economic Development Alliance (SCEDA), June 28, 2006 Minnesota Technology & Inowledge Based Solutions Proposal, May 24, 2006 Background Since last August, City staff has hosted three Metro Fringe ENSA group meetings at Elk Rivet City Hall. The attached PowexPoint presentation provides the following information regarding the ENSA project: • ENSA is a new tool sponsored by the MN Dept. of Employment & Economic Development and the Initiative Foundation for using industry statistics in Economic Development. • There are four ENSA regions. One region is the "Metro Fringe" region, which includes Elk River. • The Metro Fringe group has completed preliminary work toward the project and has begun making financial contributions. Issue The Metro Fringe group generated a Request Fox Proposals in May fox project management services for comprehensive research on a selected set of potential targeted manufacturing industries. The group received the attached joint proposal from Minnesota Technology and Knowledge Based Solutions. The Initiative Foundation has verbally offered to contribute a $7,500 grant toward the cost of the $10,000 proposal. The Metro Fringe group is hoping to raise the remaining $2,500 ($1,250 from Wright County and $1,250 from Sherburne County). Consider Contribution Towazd Metro Fringe Enterprise Network Sys[ems Analysis (ENSA) July 10, 200G EDA Meetlng Page 2 of 2 Recommendation Staff recommends that the EDA consider a contribution of $500 to be taken from its 2006 marketing budget toward utilizing the services of Minnesota Technology and Knowledge Based Solutions to complete the comprehensive research on the selected set of potential targeted manufacturing industries as part of the Metro Fringe ENSA project. NextSten Once the remaining $2,500 is raised and the $7,500 Initiative Foundation giant is approved, the Metro Fringe group will meet with Minnesota Technology and Knowledge Based Solutions and authorize them to begin work on the project. Enterprise Network System Analysis Presenrotl ro: BCEDA June 28, 2006 Initiative Fauntlation Santly Voigt Enterprise Network System Analysis .Anew tool for using industry statistics in Economic Development ^ Provides information to expand business opportunities in greater Minnesota ^ Duluth/Superior Study l Economic Development and ENSA ^ Enterprise Network System Analysis ^ provides information to expand business opportunities in Greater Minnesota economic communities i ~ ~' it e"/ t..y.ex t; i ._.~~. Enterprise Network System Analysis ^ First, identify what manufacturers are located in the service area ^ Then, ask what other industry sectors could be served by these same manufacturers ^ Finally, new industry opportunities are identified for local businesses Four Central Minnesota Regions ^ Initiative Foundation partnered with DEED to expand the possibilities of ENSA and implementation ^ Four regions were identif ed in Central Minnesota based on manufacturing concentrations ^ North Central, East Central, Metro Fringe, Benton-Steams ^ Initiative Foundation convened initial meetings and identifed committee chair .- G o-'~ i Analysis for Metro Fringe ~~ • Buffalo Big Lake i ~- ~ .Delano Beckar • Elk River Monticello /-~~~,,, . Inclutles all _ In the region... F~ -~<~ ; ` _. Metro Fringe Region Sherbuma end Wdgnl Counties Steering Committee formetl of local EDA's, county end tity reps, antl selected intlustry raps Taryete0 industries itlanfified; priorities itlentifietl Further analysis contlugetl to seleQ top prospects Reaauesl for Proposal deveiopetl antl sent to itlentifietl cronsultants by W right County and contributing $1,250 City of Big Lake has agreed to aU as fiscal agent fa the proleh and will ba submitting grant rapuast to IniAedve Fountlation for $7,500.00 City of Big take has agreetl to contribute $500.0010 project cast Consultant seleQetl wiN kick~aff meeting planned far mid July Metro Fringe Region . Criteria chosen to narrow 57 potential industries to 31 ^ Existing supply of relevant workers ^ Highest percent of local mfg. inputs ^ Industry prospects for future growth ^ Highest wages nationwide ^ Job growth nationwide ^ Wage growth nationwide ^ firm growth nationwide Metro Fringe Selected Potential Industries Software Reproducing Oil & Gas Field Machinery & Equipment Mfg. Ceramic Wall & Floor Tile Manufacturing Brick & Structural Clay Tile Manufacturing Welding & Soldering Equipment Manufacturing Elevator 8 Moving Stairway Manufacturing Kitchen Utensil, Pot, & Pan Manufacturing 3 Benefits • Each Region identifietl the goal of the process ^ Start, expand, or recruit at least 2 businesses in the area (one in Sherburne County antl one in Wright County), creating at least 15 jobs in each location, using the ENSA oats tool as a means to taryet industries that make the bell economical sense for the region. . Guide conversation with manufacturers during Business/Re[ention visits . Discuss InpuUOutput information and business priorities • Identify "At-Risk" Industries . Assist with supplier development opportunities Economic Development Trends • Malyze what yw wmently have . Assess what you are good at • Iden[i/y and locate existing resources • Pursue complefing Ne resource package Lessons Learnetl: • $$$'s neetletl tarimplementation • Collabore4on is rndcalfm implementation o Ciry of Elk FtirwJiostlrg mee0iys o Wright COUiayRFP wwk antl conMbule,t:$'s o Ciry of Big Lake-fiscal host antl roMdbute $S's o Sheroume Cwnly-???? • Oata sources are continually tlefinetl Q~es ~~~ ' ~ Initiative rFoan~ation San6y Norgt 320.631.2012 4 WEST METRO FRINGE ENTERPRISE NETWORK SYSTEMS ANALYSIS PROJECT A PROPOSAL May 24, 2006 Submitted jointly by: Minnesota Technology, Inc. ul Third Avenue South, Suite 120 Minneapolis, MN 55401 (612) 373-2900 ~~~crow. minnesotatechnolo~-. org and Knowledge Based Solutions 5537 Tenth Avenue South Minneapolis, MN 55417 (612) 619-3902 TABLE OF CONTENTS I. PROJECT BACKGROUND ..............................................1 II. TECHNICAL APPROACH .............................................1 A. PHASE ONE: INDUSTRYOVERVIEWSANDPOTENTL9LSUPPLIERANALYSES .................................................................................................................................... 2 1. Industry Overviews ............................................................................................. 2 2. Potential Supplier Analyses ............................................................................... 3 3. Target Industry Selection .................................................................................. 4 B. PH,9SETW0: ENTERPRISENETWORxFEASIBILITYASSESSMEN'l' .............. 4 C. PHASE THREE: ENTERPRISE NETWORKACTIONPLAN .................................. 5 D. A FLEXIBLE TECHNICALAPPROACH .................................................................. 6 E. DELIVERABLES ........................................................................................................ 6 F. RF,SEARCHMETHODS ............................................................................................ 6 G. WoRxPL,4N ............................................................................................................ 7 III. STAFFING PLAN ............................................................ 7 IV. ORGANIZATIONAL CAPABILITIES ......................... 8 V. COST PROPOSAL .............................................................. 9 CVs OF PROPOSED PERSONNEL ..................ANNEX I. Project Background The West Metro Fringe Enterprise Network Systems Analysis Project represents a joint initiative of local economic development leaders and funding partners who are committed to stimulating the economic growth of the West Metro Fringe Minnesota region. The approach is to cultivate an enterprise network-a regional cluster of interrelated businesses-through the development or recruitment of a firm from a new, non-local industry that largely can be supplied by existing businesses. The competitive advantage gained from a collaborative alliance of these companies is expected to generate growth for the region. The Enterprise Network System (ENS) data tool, developed by the Minnesota Department of Employment and Economic Development (DEED), was used to produce a list of 57 new, non-local industries as potential targets. Additional criteria were applied to narrow the list to 3i industries. The West Metro Fringe Enterprise Network Systems Analysis (ENSA) Project Workgroup ultimately chose four industries for further consideration. The immediate challenge is to select the new industry with the best prospects for success in creating an enterprise network. A further task is to identify two or more firms in the selected industry that could be started, expanded or recruited to the area. In addition, other potential participants must be identified and engaged to facilitate the formation of a collaborative enterprise network. A particular strength of the Project Team is the experience gained from working on two ENSA projects that are currently underway in other Minnesota regions. Discoveries, insights, and lessons learned from these studies can be applied, as appropriate, to the West Metro Fringe Project. II. Technical Approach The Request for Proposals (RFP) invites an approach consisting of secondary research on the six potentially targeted industries, primary research on the six industries, and an industry recommendation with proposed action steps. The Project Team, which will be composed of specialists from Minnesota Technology Inc. (MTI) and Knowledge Based Solutions (KBS), proposes hereto modify that approach for three reasons. First, many forms of primary research are time-consuming and expensive. It is unlikely that useful work could be done within preferred timelines or budget constraints. Second, the combination of secondary research and selective expert interviewing will be powerful enough to enable the selection of a target industry to pursue. Finally, rather than merely proposing next steps after recommending an industry to pursue, the project can bring the ENSA Workgroup closer to actually developing an enterprise network. The Project Team views the modified project as consisting of essentially three tasks: i) Selecting a target industry, Minnesota Technology, Inc, and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Malysis Project Proposal May 24, 2006 Page 1 2) Creating target company profiles for the types of company that would serve as initial focal points for an enterprise networks, and 3) Designing an action plan for adding the profile-type companies to the region and to begin developing the enterprise network. The Project Team proposes athree-phase project to help the ENSA Project Workgroup accomplish these tasks: • Phase One: Industry Overviews and Potential Supplier Analyses • Phase Two: Enterprise Network Feasibility Assessment • Phase Three: Enterprise Network Action Plan Each of these tasks is addressed in detail below. A. Phase One: Industry Overviews and Potential SuppiierAnalyses The proposed outcome of Phase One is the selection of the target industry with the greatest likelihood of success. Extensive work already has been completed using the ENS tool and a variety of national and local data sources to narrow the list of potentially targeted industries to six. This process has relied on economic data analysis and local economic development knowledge. Selecting a target industry involves blending two perspectives. The industry should be a "good bet" in terms of its prospects for future success and it should be a "good fit" in relation to the West Metro Fringe region. i. Industry Overviews The Project Team proposes to employ secondary research methods and selected expert interviews to produce industry overviews of the six potentially targeted industries in Phase One. Industry overviews will be used to evaluate the extent to which the industry is a "good bet" and to support the target company profiling work that will follow in Phase Two. Industry overviews will address the following items: • Products and Apulications. Except for dry pasta manufacturing and prefabricated metal building manufacturing, the potentially targeted industries produce a fairly diverse range of products. Products in all the industries have many applications. Understanding the mix of products and applications in an industry will be helpful in deciding what type of company to attempt to introduce to the region. • End-use Industries. Given the mix of products and applications in a potentially targeted industry, the next step will be to identify primary end-use industries. National input-output data from the Bureau of Economic Analysis will be helpful here, but will be complemented with industry sources to incorporate perspective. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Analysis Protect Proposal May 24, 2006 Page 2 • Market Demand. The national market will be reviewed for each of the targeted industries to assess market size, trends, and the outlook for the future. • Competitive Dynamics. The competitive environment of each industry will be surveyed. This will include identifying the major competitors and their place within the industry. The team will also assess the role of offshore competition. • Barriers to Entrv. The ease of market entry for a new company in the industry will be considered from a broad perspective. This information will be useful in evaluating the options of attracting an existing company versus developing a new business in the region. • Issues and Indicators. The research will highlight the issues relevant to deciding which industry to pursue by flagging opportunities and threats. Each industry will receive a "good bet" assessment based on the industry overview. 2. Potential Supplier Analyses Industry overviews are expected to provide knowledge useful for selecting "good bet" industries to target. However, a "good bet" industry that is not also a "good fit" will not be a good choice. Based on experience gained from other ENSA projects, the Project Team has developed a specialized method of supplier analysis to address "good fit" issues in Phase One. This method builds upon the enterprise network system analysis work that already has been done and extends it to assess: • the number and size of potential suppliers by supplying industry; • the volume of sales a new firm might create for suppliers by industry; and • the location of the potential suppliers in relation to regional boundaries. These considerations are important in assessing the benefit that a potential target industry could actually bring to the region. The Project Team will conduct a supplier analysis for each of the four potential target industries based on lists of potential suppliers in the region and beyond developed by Cameron Macht of the Minnesota Department of Employment and Economic Development. These suppliers will be entered into a Microsoft Access database designed to facilitate the analysis. In addition, the database will make it convenient to view or print out brief profile information on each potential supplier including contact information, number of employees, and business and industry descriptions. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Frtnge Enterprise Network Systems Analysis Project Proposal May 24, 2006 Page 3 3. Target Industry Selection The preceding work will be used to produce an overall evaluation of attractiveness for each potentially targeted industry. The Project Team will use this evaluation as the basis from which to make a recommendation of a target industry for further development. The recommendation will address the goal of adding at least two businesses to the region-one in Sherburne County and one in Wright County. Opportunities will be noted for identifying complementary and cooperative suppliers rather than competitive ones. The industry overviews, supplier analyses, potential supplier profiles, and evaluative assessments will be presented to the ENSA Workgroup at a presentation meeting to support decision-making. The intention is that the ENSA Workgroup will choose one industry to pursue as the project moves into Phase Two. B. Phase Two: Enterprise Network Feasibility Assessment It should be noted that the selection of a target industry is not sufficient to define the types of companies to target. As will be shown in the results of Phase One, there can be numerous product and market opportunities within a selected industry. The proposed outcome of Phase Two will be the development of target company profiles that will define the types of companies most likely to be successful as initial focal points for an enterprise network. In addition, the Project Team will produce a preliminary feasibility assessment for locating such companies in the region. Phase Two will begin by developing working hypotheses as to the types of companies to target. As these preliminary profiles are tested throughout the phase, they will be modified, abandoned or replaced with more viable options. Although Phase One addresses "good fit" by means of supplier analyses for the target industries, Phase Two drives down more deeply into issues of fit by means of interviewing. Interview subjects will include potential local suppliers, manufacturers in the target industry, industry experts, local entrepreneurs, and local manufacturers in related businesses potentially able to expand into the target industry. Note that previous research results and additional secondary research will be used to identify interview subjects and to guide the questioning. The feasibility assessment will address the following: Supplier Types. The Project Team will select representative suppliers from the local supplier types to be interviewed. For supplier types not available locally, the analyst will determine the location of other sources of supply. Target industry experts and manufacturers will be asked to discuss the importance of geographic proximity of suppliers. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Analysis Project Proposal May 24, 2006 Page 4 • Supplier Capacity. Local suppliers will be asked to discuss existing and potential capacity issues. • Networking Potential. Suppliers will be asked about their previous experience with and disposition toward cooperative business arrangements. • Labor Requirements. Target industry experts and manufacturers will be questioned about their labor market concerns. • Opportunities for Recruitment. Target industry experts and manufacturers will be interviewed about issues related to locating new plants. This inquiry will be guided by knowledge of best practice in industrial site selection and prior research. For example, Greg Schrock of MTI found in a 2003 surveys that nearly two thirds of the Twin Cities' manufacturing and technology service companies were planning to invest in a new or expanded facility within a year. He profiled the types of companies most likely to invest in Greater Minnesota and what business climate "improvements" would make them even more likely to invest there. • Opportunities for New Business Development. The Project Team will initiate a preliminary exploration of the prospects for developing a target company in the region. This will involve scouting out local entrepreneurs as well as identifying local companies in a related business that maybe able to expand into the target industry. At the conclusion of Phase Two the Project Team will have identified one or more target company profiles with the best prospects for success. In addition, the team will have identified some options and issues related to actually adding target companies to the region and initiating an enterprise network. Note that it is possible for the feasibility assessment to conclude that there is little viable opportunity for the selected industry after all. C. Phase Three: Enterprise Network Action Plan A significant challenge for many economic development initiatives is in moving from study to action. The purpose of Phase Three is to help bridge the gap between research and implementation. The preliminary feasibility assessment from Phase Two is expected to give rise to possibilities, yet the path ahead will remain full of risks and unknowns. Phase Three is an opportunity to review and integrate what was learned, test the waters of the mast likely opportunities, and determine the next steps for action. Site selection criteria and marketing and recruitment strategies will be addressed. Conclusions will be captured in a planning framework document to facilitate ENSA Workgroup discussion, decision-making, and action planning. Schrock, G. "Twin Cities and Greater Minnesota Connections: A Business Perspective," Center for Rural Policy and Development, (March 2004). Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Malysis Project Proposal May 24, 2006 Page 5 D. A Flexible Technical Approach The project phases described above should not be viewed as a formulaic or turnkey solution. It is expected that discovery and insights from early activities will suggest ways that later activities can be modified to better accomplish project objectives. An important aspect of the proposed approach is flexibility to accommodate these modifications as long as they do not constitute significant changes in scope. Major changes in scope can be incorporated as needed if they are renegotiated and accepted by all parties. E. Deliverables Results of each phase will be delivered using a PowerPoint presentation in a face-to- face meeting to allow for questions and discussion. Supporting documentation such as spreadsheets, source documents, maps, interview logs, etc, will be provided. The deliverables also include a database of potential suppliers with various reporting options and a planning framework document. The following table summarizes deliverables and outcomes by project phase. { t i i4 p~ Ph ~ '~ ~ jai hl! I t k I i (1` i ~ ~#~ iii s s 1 .~. ~i~~ Y(.. ~t IAA ~~E131, I~~ ~I {l~e ~i~I IC hli i d n t , I~ i~l i li~i it ~ 1, I ' ]]~~ I;-+i4ellYe~r!ab,e$~Itl Pli J.~11,~~ 14N .Ii~ilt~ ~U i aJ ~ tt~~~ p~ I'lh;i i i i~l~ ~ ~ i ht ~ ~ ~ zyI( (, yyi~pp pp {{ jj~~ ~7 (( d ,iiitL~"kR ~(114l~~~i~ 0~~}i ~t~.A {I~I~I~1it~a,A•, Phase One: Industry Overviews PowerPoint presentation with Selection of a target industry for and Potential Supplier Analyses supporting documentation; further research database including potential supplier profiles Phase Two: Enterprise Network PowerPoint presentation with Establishment of profiles for the Feasibility Assessment supporting documentation types of companies to be added to the region Phase Three: Enterprise Network PowerPoint presentation with Action steps for developing the Action Plan supporting documentation; enterprise network planning framework document F. Research Methods The Project Team will employ research methods, tools, and technologies of secondary and primary research. Secondary research sources include proprietary databases, Internet sources, government agencies, professional associations, research institutions, and specialized libraries. Primary research activities will include interviews with company sources and industry experts. Secondary research methods and selected interviews have proven effective in generating useful knowledge for decision making without requiring the time and expense of primary market research methods such as surveys, focus groups, etc. In a recent Knowledge Based Solutions project, interviewing was used to guide the design and assess the feasibility of a new business venture. Engaging potential suppliers in this way produced the additional benefits of educating them about the new business and creating support for the venture. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Analysis Project Proposal May 24, 2006 Page 6 A number of tools contribute to the ability of the Project Team to execute the project. For example, the team has access to company databases from Harris InfoSource, InfoUSA, Thomson Gale, and Dun & Bradstreet. Other tools include Microsoft Access (database), Microsoft MapPoint (business mapping and data visualization) and IMPLAN (economic impact modeling). G. Work Plan A sample work plan is provided below based on a total project time of i3 weeks as specified in the Request for Proposals. The work plan assumes a start date of Thursday, June t5, 2006 and a completion date of September i5, 2006. Modifications to this work plan can readily be made upon agreement of all parties. f Ps'~I { ii ~ f I~(h iSilj(iSi f elf~7y f ~i ~ f,~ I I i ppppi ~~55 , t~ (~~~ f~ p~, {a i ~j ~i~~~ ~lif t~+1~y f i h ~{ ~ ;{,I~ {{vf f f ~ ~ r. ~y 171 l+ t i~ iy4~ ~5i i131 ~j~~i ~k1•+~~'~~1~~411i ~f i~ ~ tl H ~ ~ ~!`~y '~~ `7~ (~~~~ i 1 jj'~ l~~~~'i1 ~ti ~ i f ~ l ~l( ~ ~ ~ 1~ f ~ kf {'~ ~ 1 y i ~1~j1 t ~ i1 l I'?f s l„p.{ 1 t 1V 1 1 ,, nr i, 1i;~ 4 ..1 E.I. I ii i?E1.,+ir„ t, {i.. ~'~ ~ Sl "AEI+S!~ Itlflli 14~Si~N i ~Hhkilili Phase One-Industry Overviews and Potential Supplier Analyses Thursday, June 15, 2006 Project Start. Meeting #1: Kick-Off (review of needs and proposed approach; project fine-tuning and launch of Phase One) Thursday, July 20, 2006 Meeting #2: Industry Overviews and Potential Supplier Analyses (presentation of results and selection of target industry; project fine- tuning and launch of Phase Two) Phase Two-Enterprise Network Feasibility Assessment Thursday, August 24, 2006 Meeting #3: Enterprise Network Feasibility Assessment (presentation of results and selection of target company profiles; project fine-tuning and launch of Phase Three) Phase Three-Enterprise Network Action Plan Friday, September 15, 2006 Meeting #4: Enterprise Network Action Plan (presentation of results and action steps) and project close III. STAFFING PLAN The Project Team's approach to staffing this project is to provide the services of a team of two specialists to complete all research, analysis, reporting and planning requirements described throughout this proposal. Our two-person team consists of Business Management Specialist Mary Connor and Business and Market Analyst Roger Hurd. This team is currently working with the East Central Minnesota ENSA and North Central Minnesota ENSA groups. Both Ms. Connor and Mr. Hurd have experience providing business development services in the West Metro Fringe region. We describe the qualifications of the Project Team below. Detailed CVs for each of these specialists are included as Annex A. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Analysis Project Proposal May 24, 2006 Page 7 Mary Connor has 32 years' experience in assisting a wide variety of firms and organizations with implementation of business improvement and financial management initiatives. Currently, Ms. Connor works as a Management Systems Specialist with MTI, where she provides one-on-one consulting and training services in a variety of business disciplines throughout the state of Minnesota. Ms. Connor has extensive experience assisting firms located in the West Metro Fringe area, most recently the Elk River Machine Company and several other subsidiaries of the Elk River based Cretex Companies, Inc. In addition, Ms. Connor has been involved in the facilitation of the Monticello area CEO Peer Council group, which area CEO's to meet and give them a forum to exchange ideas on business development and growth. The Monticello CEO Peer Council includes participation of several firms located in the West Metro Fringe, including Andrew Tool, Blow Molded Specialties, Interior Components Group, International Precision Machine, Louis Industries, Weeres Industries, and Sportech. Prior to joining MTI, Ms. Connor served as Chief Financial Officer at Midwest Fire Protection, Inc. in Minneapolis and as Controller at the College of St. Catherine in St. Paul. Ms. Connor holds BS and MBA degrees from the University of Minnesota. Roger Hurd has 27 years of experience in providing customized research, analysis and consulting services to a wide range of clients, including several companies in the West Metro Fringe area. He is the founder and principal of Knowledge Based Solutions, a firm that develops knowledge tailored to support client problem-solving and decision-making. He specializes in analysis to guide new business opportunities and strategic marketing initiatives. Roger was formerly the Manager of Business Intelligence Services with Minnesota Technology, Inc., where he conducted market opportunity assessments, competitive intelligence analyses and various other studies on behalf of client companies. Prior to that, he headed INFORM, the commercial business research service at the Minneapolis Public Library. He holds MBA and MLS degrees from the University of Minnesota. Clients have included Fortune 500 companies as well as small manufacturers and non-profit organizations in Minnesota. IV. ORGANIZATIONAL CAPABILITIES Minnesota Technology, Inc. (MTI) was established in i99i as an economic development organization designed to help small and mid-sized Minnesota companies gain competitive advantages by providing innovative business and technology solutions combined with in-depth insight about the companies and people on the state's technology scene. Operating as a private non-profit 5ot(c) 3 organization, MTI seeks to create a robust Minnesota economy that features a diverse mix of advanced manufacturing and technology-based businesses that provide secure, well-paying jobs. Since its inception, MTI has served over 5,00 companies across the state and has helped the state's economy realize gains of more than $~oo million through increased sales, higher profits, and lower costs. Knowledge Based Solutions (KBS) develops knowledge to enable clients to be more effective in solving problems, making decisions and accomplishing their objectives. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Analysis Project Proposal May 24, 2006 Page 8 KBS pursues this mission in three ways. Knowledge external to the organization is developed through research and analysis. Knowledge internal to the organization is discovered within databases. Daily operational management of knowledge is enhanced via desktop applications. All three service areas leverage knowledge for competitive advantage. KBS has been providing "knowledge for action and results" to manufacturing, service and non-profit clients since zoo3. V. COST PROPOSAL As specified in the Request for Proposals, the cost of the proposed project is $io,ooo. Minnesota Technology, Inc. and Knowledge Based Solutions West Metro Fringe Enterprise Network Systems Analysis Project Proposal May 24, togs Page 9