Bell Labs - The Idea Factory

www.njtc.org May 2012 Vol. 16 Issue 4 $3.50

The Business Behind the Technology Sectors of New Jersey

Innovative, Inspiring, Revolutionary… Bell Labs – The Idea Factory Author Jon Gertner is the Keynote Speaker for NJTC’s Annual Meeting on July 12, 2012 Discover How Your Company Can Become The Next Idea Factory Great leaders and companies have one thing in common – they are not afraid to be innovative. In his book, The Idea Factory: Bell Labs and the Great Age of American Innovation, Jon Gertner, an editor at Fast Company magazine and a contributing writer for the New York Times, explores how Bell Labs became one of the most innovative companies in the world. From 1925 to 1980, Bell Labs contributed more to technology than any other company in history. It filed for 17,000 patents during that fifty year period, which is the equivalent of five patents per day. Today, more than 30,000 patents can be attributed to Bell Labs. The name Bell Labs is synonymous with cutting-edge invention. It was the incubator of innovation – birthplace of the 20th century’s most advanced technologies. From the telephone to the transistor, semiconductor, radar, C programming language, mobile phone and the first global communications satellite; Bell Labs produced more major discoveries and Nobel laureates than most universities. Every electronic device on earth has some of Bell Labs’ DNA. The New Jersey Technology Council (NJTC) is pleased to have Jon Gertner as the keynote speaker at its Annual Meeting on Thursday, July 12 from 11:00 AM – 2:00 PM at the Forsgate Country Club in Monroe Twp., NJ. You will not want to miss this opportunity to learn first-hand how Bell Labs was able to motivate its team to develop the revolutionary products that changed the way we all live, work and play. continued on back cover Jon Gertner, Author of The Idea Factory: Bell Labs and The Great Age of American Innovation

GROW. WISELY.

To grow and succeed, you need an advisor who knows your company and your industry. Who is committed to helping you implement a sustainable strategy for growth. EisnerAmper is that advisor. The professionals in our Technology Group combine their passion about the industry with a focus on teamwork and communication.

TM

Let’s get down to business.

John Pennett Partner 732.287.1000 [email protected]

www.eisneramper.com EisnerAmper LLP Accountants & Advisors NEW YORK | NEW JERSEY | PENNSYLVANIA | CAYMAN ISLANDS

Independent Member of PKF International

contents On the Cover Meet Jon Gertner, author of The Idea Factory: Bell Labs and the Great Age of American Innovation at NJTC’s Annual Meeting on July 12. Gertner will share best-practices on the how to sustain a culture of innovation and insight on how your company can become the next Idea Factory. A book signing will take place.

Features

Business & Strategy

13 The Changing Face of Payments

8 A New Approach for Next-Generation Product Development



By Benedict Baerst and Amir Goldman Though most transactions in the retail sector are now conducted electronically, paper checks still account for nearly a quarter of non-cash transaction volume. Much of this volume is driven by small businesses, whose payments needs remain unfulfilled despite widespread card adoption.

16 How Do You Get “IT”?

By Jerry Masin When compared with the rest of the jobs market, the number of available IT jobs is high. Skills analysis, training, and an inside track to IT hiring departments can lead job seekers to significant and sustainable job opportunities.

Columns

10 Rutgers Camden Technology Campus Introduces a Paperless Mobile Platform



6 Corner Office: Stevie M. Davidson

M  eet Stevie M. Davidson. She is the founder of Health Informatics Consulting and is passionate about educating healthcare professionals, promoting EHR adoption, and improving the clinical quality and business performance of healthcare organizations.

B  y Michele Huber Rutgers Camden Technology Campus, Inc. has launched an initiative to help businesses easily exchange information with potential customers, funders, employees, and vendors.

T  echLaunch was created to provide entrepreneurs the training and resources to de-risk start-up challenges and assure quicker and higher returns for both the entrepreneur and investors.

NJTC Connections 4 President’s Message `18 Photo Gallery

17 Dollars & Sense EASY ACCESS TO CAPITAL – NOT SO FAST



By Richard Holman Product development is supposed to be the innovation engine driving companies forward. Yet the numbers reveal otherwise. Find out why these results are so dismal.

11 EDA Acts To Advance NJ’s First Technology Accelerator By Travis Kahn

5 Talent Networks





20 New Members

By Mike Lopez Does the JOBS Act make it easier for smaller companies to raise public and private capital in the U.S. financial market?

TechNews

PUBLISHER Maxine Ballen • [email protected]

May 2012 • VOL. 16 NO. 4 New Jersey Technology Council & The Education Foundation 1001 Briggs Road, Suite 280 Mount Laurel, N.J. 08054 phone (856) 787-9700 fax (856) 787-9800 www.njtc.org

VP of Publications Leo M. Mennitt • [email protected] Contributing Editor Jennifer Simoni • [email protected] NJTC Connections Editor Judy Storck • [email protected] GRAPHIC DESIGNER Bonnie Jacobs • [email protected]

22 Calendar of Programs

NJTC Tech Wire: http://njtcblog.wordpress.com Follow @njtc on Twitter Join the NJTC Group on LinkedIn

TechNews is published by the New Jersey Technology Council and The Education Foundation. We are located at 1001 Briggs Road, Suite 280, Mt Laurel, N.J. 08054. ©2012 NJTC. All rights reserved. Reproduction or use, without permission, of editorial or graphic contents in any manner is prohibited. To obtain permission, contact Leo Mennitt at lmennitt@njtc. org or 856-787-9700 x227. TechNews is published eight times a year and is free to all NJTC members. Unqualified subscribers pay $29.99 per year, $39.99 for two years. Reprints are available for a fee upon request. For more information on the New Jersey Technology Council, see www.njtc.org. To contact a staff member, see the staff box for email addresses. Submissions for New Jersey TechNews are welcome. All editorial copy published is at the discretion of the editor. Send submissions to [email protected]. The views expressed in New Jersey TechNews do not necessarily reflect those of the New Jersey Technology Council or New Jersey TechNews. Advertising information: Leo Mennitt at 856-787-9700 x227 Subscription information: www.njtc.org Postmaster: Send address changes to: NJTC, 1001 Briggs Road, Suite 280, Mt. Laurel, N.J. 08054.

TechNews | www.njtc.org | May 2012

3

FOUNDER, PRESIDENT & CEO Maxine Ballen • [email protected] CHIEF OPERATING OFFICER Joan C. Praiss • [email protected]

President’s Message Summer is fast approaching, and as some people are winding down thinking of summer vacations, we have an exciting few months ahead of us. The much-buzzed-about FinTech Conference is this month on May 23rd in Jersey City. This exciting, inaugural conference will highlight the region’s financial tech sector. NJ’s financial tech companies are on the For more NJTC cutting edge of a fast-moving industry, and we’re ready to make NJ the premiere destination for FinTech companies. Space is event news filling up fast. If you’re business is involved with FinTech, you go to don’t want to miss this conference. www.njtc.org/events Following on the heels of our exciting FinTech conference, is our CFO Awards, June 8th. Come celebrate the regions best, brightest, and most-accomplished financial executives. They’re the unsung heroes of the business world, and this is our chance to acknowledge all they do to keep our businesses growing and prospering. And finally our Annual Meeting is July 12th. For those of you not on a beach somewhere, you’re in luck: This year’s annual meeting will feature guest speaker, Jon Gertner. He is a contributing writer for the New York Times Magazine, an editor at Fast Company, and author of the recently published book, The Idea Factory: Bell Labs and the Great Age of American Innovation. Mark your calendars; it’s going to be a great event. n

—Maxine Ballen, President & CEO, NJTC

I am proud to say that as a member of the New Jersey Technology Council, NJTC gets IT. SetFocus was founded with the premise that everyone deserves a good education and a good job. Since 1997, we have been delivering on-site and virtual job-specific training programs combined with vocational counseling services that allow individuals to achieve economic viability by learning new technologies, building their employment brand and maintaining job sustainability. Over the past 15 years, our proven formula has propelled the careers of more than 2,300 IT professionals. NJTC is committed to helping New Jersey build upon and maintain its status as one of the premier technology centers in the United States. A motivated and well-trained workforce is a key element to that commitment. In that regard, NJTC continues to be a “thought and action” leader through its programs that help to create and sustain jobs in our state. SetFocus is pleased to be collaborating with NJTC and the Technology and Entrepreneurism Talent Network through sponsorship of the Bridging the Gap Technology Scholarship Program. The goal of the Scholarship is to offer individuals with financial need the ability to participate in the SetFocus Master’s Program, a combination of hands-on training and career mentoring activities, designed to help them to develop career potential and marketable professional skills in the areas of applications and database development. SetFocus continues to look forward to working with NJTC and its members to advance the cause of economic viability as an outcome of learning, growth and job sustainability.

4



VP Publications/Business Development Leo Mennitt • [email protected] COMPTROLLER Yvonne M. Riley • [email protected] EXECUTIVE ADMINISTRATOR Karen Lisnyj • [email protected] events Manager Meredith Meyer • [email protected] MEMBER Relations Manager Ellen Stein • [email protected] OFFICE Manager/ MEMBERSHIP SERVICES/ NJTC Connections Editor Judy Storck • [email protected]

Why My Company is a NJTC Member...



VP MEMBERSHIP Paul A. Frank III • [email protected]

—Jerry Masin, President, SetFocus

TechNews | www.njtc.org | May 2012

IT COORDINATOR Erwin Racimo • [email protected] Events Coordinator Martine Johnston • [email protected] NJTC Charter Members Deloitte Edison Ventures KPMG LLP Maloy Risk Services Morgan Lewis PNC New Jersey Technology Council & Education Foundation www.njtc.org 1001 Briggs Road, Ste 280 Mount Laurel, NJ 08054 856-787-9700

Talent Networks

Tech Companies Expect More From New Grads Than Good Grades Since last Fall the NJTC Talent Network has been asking technology companies their projections on IT hiring, and skills they expect to be in greatest demand. John Reed, executive director of Robert Half Technology, supports what we’ve been hearing, “The (IT hiring) trend remains positive. Those in hot specialties, such as networking and IT security, will continue to be in strong demand. Mobile media is an especially important area of growth right now.” However, there’s a caution for recent grads: what you know only gets you through the pre-qualifying phase of the hiring process. In the actual interviews and selection process, companies report that “a good fit” is what gets candidates hired. The “good fit” skills and attributes are shown on the IT Sector Competency Building Blocks Model shown below on Tiers 1 through 3 -- the gray and red levels (source US Dept. of Labor, Employment and Training Administration). A competency is a cluster of related knowledge, skills, and abilities that affects a major part of one’s job, correlates with performance on the job, and can be measured against well-accepted standards. Most frequently cited “soft skill” IT job competencies are: • Teamwork (and concern for team goal attainment) • Interpersonal communication (listening and speaking) • Collaboration (consultation and resolving differences with others) • Problem solving and decision making • Ability to admit and learn from mistakes. Candidates who can give specific examples of when and how they applied these skills, whether through extra-curricular activities, sports, volunteer work, part-time project work, and/or internship, are the ones most likely to make it through the selection process to finalist. Hiring managers believe that past performance is the best indicator of future behavior. And they concur that technical skills can be trained, but “soft skills” take much longer to develop. “Soft skills” can, and often do, make or break the hiring decision. So the candidates who will fare best in landing a job are likely to be those who prepare to confidently explain specific past experiences that demonstrate “soft skills” savvy. For more information on competency models and planning your company’s human assets, visit http://www.careeronestop.org/competencymodel/

BRIDGING THE GAP - A JOB SKILLS WORKSHOP TECHNOLOGY AND ENTREPRENEURISM TALENT NETWORK WORKSHOP April 17, 2012 • Fairleigh Dickinson University • Madison, NJ Bridging the Gap Job Skills Workshop provided job seekers with up to date information on the latest technology jobs and trends, interviewing skills, networking skills, best practices, job search resources, and more. The attendees had an opportunity to network with companies and heard from industry experts, education and training providers, and career counselors. In addition there were representatives from the NJ Department of Labor and Workforce Development who informed the audience about special programs and services that will assist them in their job search.

TechNews | www.njtc.org | May 2012

Upcoming Events May 2 Tech & Entrepreneurship Talent Network Entrepreneur Boot Camp Rutgers Busch Campus, Piscataway http://njtc.org/events/ bootcamp12/home.html May 9 Transportation, Logistics, Distribution Talent Network TLD Career Awareness Panel Event Raritan Valley Community College Contact: Portia Henry mailto:[email protected] May 14 Life Sciences Talent Network Industry HR Conference Hilton East Brunswick http://www.bionj.org/ news/hr-conference May 16 Tech & Entrepreneurship, Financial Svcs, Advanced Manufacturing Talent Networks People to Business (P2B) Early Stage Companies Support New Jersey Institute of Technology (NJIT) Contact: Lou Wagman mailto:[email protected] An event matching small and earlystage tech-based companies with potential volunteer professionals www.p2bcompany.eventbrite.com

5

corner office:

Stevie M. Davidson, CPHIT Founder of Health Informatics Consulting, LLC

Stevie M. Davidson is passionate about helping educate healthcare professionals, promoting EHR adoption, and improving the clinical quality and business performance of healthcare organizations. She is a seasoned leader in healthcare with a focus on business operations, quality improvement, and information technology.

After years in the pharmaceutical and Telecom industries, what prompted you to found Health Informatics Consulting? In the early 2000’s, the Telecom industry was on a severe downfall, and it was time for me to change direction. After years doing extensive travel both domestic and internationally, I was looking for a project that was not so demanding on my time. I did receive an offer to do consulting for a project under CMS called DOQ-IT. It was very much like our current Meaningful Use initiative by way of providing guidance and assistance to providers with adopting Electronic Medical Records (EMR) and working towards quality improvement. I already had the background of healthcare, project management, software development, and compliance under my belt. After several months of working on that project I unfortunately suffered from a serious knee injury, which prevented me from walking for eight months. During that time, I reflected on what I really wanted to be when I grew up. I realized how much I enjoyed helping providers with transforming their business processes and getting them to an electronic environment successfully. The DOQ-IT project limited our work to Primary Care providers, with some exceptions but not many. I wanted to help all providers in every discipline of medicine. So I decided to go online and open an LLC in New Jersey, which I did for $99, and the rest is history. It was hands down the best career decision I ever made.

What are the biggest challenges you and your company face? Healthcare is like the Wild West these days. Prior to ARRA/HITECH in 2009, things were much easier and I had more time to hand pick resources and train them my own way on how to consult, educate, advocate, and deliver exemplary service and high quality deliverables. Keeping up with the ever-changing rules and regulations on both the Federal and State level is very challenging. It is a constant roller coaster. Finding qualified resources these days and getting them up to speed quickly is even more of a challenge. Of course, HIC will never compromise on the quality of service we deliver, and the advocacy and protection we provide to our clients day in and day out. The people that get on the HIC bus must be the right ones. I am a firm believer that when you put others first, the rest will come naturally. I am surrounded by brilliant people that hold HIC’s vision, mission, and core values with the same passion and conviction as I do. I know we could overcome any challenge we encounter.

What kind of changes in the industry have you seen since you started your company? The changes have been overwhelming for providers, hospital C-levels, and other healthcare administrators. HITECH has really been a game changer. The multitude of regulatory changes and mandates has left it almost impossible for providers to practice medicine anymore. It is all about business sustainability more than it is practicing medicine, and the art and science of it is slowly fading away. EHR adoption, Meaningful Use mandates, 5010, ICD-10, RAC Audits, and Privacy and Security compliance are all on the forefront. It is so overwhelming for practices, hospitals, and other healthcare organizations to deal with from a technology, resource, and financial perspective.

6

You are a huge advocate and expert of digitizing healthcare information, what message do you think is the most important to get out there? “DO NOT HURRY TO FAIL!” What I am seeing out there frightens me. Providers are adopting EMR technology to avoid penalties and to receive their first reimbursement check of $18,000 for achieving Meaningful Use Stage 1 to cover their investment as quickly as they can. Due diligence and in-depth contract negotiations should be a priority and most times are not. We are doing a lot of clean up due to poor implementations. Lack of workflow transformation, implementation planning, and insufficient training and optimization are key contributors. Providers need to take their time, get expert help, and negotiate a solid contract. It is a huge investment that impacts their business revenue, operations, and patient satisfaction. EMR adoption is NOT an IT project; it is a clinical implementation and must be handled with that care and respect. HIC has clients small and large that will attest that implementation is tough, but they would never go back to paper. Their revenue, operations, and even their quality of life are better for it. When we walk into a practice that is struggling financially and operationally, and then successfully transition them from paper to EMR, it significantly improves their business health. There is no greater reward then hearing from a client that we took them from “Good to Great”. So long answer short, take your time, do it right, don’t compromise, and get expert help. I wouldn’t dare treat myself for a clinical issue; I go to a specialist.

President George W. Bush had set a national goal for every American to have a personal electronic medical record by 2014. Are we anywhere near reaching that goal? Adoption is slowly increasing and it varies state by state, but it is not as expedient as it should be. I am a huge proponent of electronic medical records, however the lack of upfront financial support to do it successfully along with mandating providers to adopt to avoid penalties and other ramifications is causing more harm than good. The mindset of “I am just doing what I have to do to get my money back and not penalized,” does not lead to making sound investments and quality improvements of any kind. I think many are waiting to see how much of this will stay or go based on the upcoming elections. Specialists that have a low number of Medicare patients, such as certain Plastic Surgeons, are not very concerned about penalties. Adoption, I feel, will continue to increase, but without the proper business case and return on investment opportunities it won’t be at the level the government expects.

So why is the medical field behind other industries when it comes to technology? Even the banking system seems more up-to-date; I just deposited a check through my phone last week. You just answered the question. The consumer is the driver for technology. How many of us would tolerate not being able to use an ATM card or not have online Bill Pay for our credit card payments? Historically, if you asked a consumer if they would choose a provider based on whether they had an EMR system or could share their medical record with another provider, you would be hard pressed to find one. Consumers I believe are the drivers of IT adoption. If I had to choose a bank that online Bill Pay versus one that didn’t, you can be sure I would be a customer of the bank that did. Convenience, access, availability, and security are what the consumer expects. Healthcare has changed drastically since President

TechNews | www.njtc.org | May 2012

By Jennifer Simoni

What type of government initiatives do you think are working to help move medical practices into the digital age?

Bush put forth the first push for EMR by 2014, and HITECH pushed it further. Consumers are getting more and more educated on what is available to them, and Personal Health Record (PHR) use is on the rise. Consumers want their prescriptions electronically transmitted as well as other conveniences like making appointments online, requesting Rx refills, e-visits, and even paying their providers with online Bill Pay. As consumer education in these areas increase, so will the demand and we will then see healthcare IT catch up and keep pace very quickly.

As a patient, I feel like my doctor’s attention is already hard to come by, with busy schedules and booked waiting rooms. My doctor’s practice has been trying to digitize their records for two years, and on a recent visit, she spent more time trying to get my stats into her computer than talking to me. Is digitizing the practice going to make it even harder to get a doctor’s attention? Good question and it is all about upfront planning, training, optimization, and workflow transformation. We see far too much of this and it goes back to what I said previously about hurrying up to fail and to start treating EMR adoption as a clinical implementation, not a IT project. Practice transformation, training, and optimizing templates are critical. Scanning charts upfront and entering specific pieces of clinical data like a patient’s problem list, active medications, and allergies play a significant role of efficiency when they go live on the system. Patient satisfaction, revenue, and staff performance will all be compromised if this is not done correctly. I will not say that an EMR system will take away from a provider’s attention due to technology. If it is done well, that should not be the case. What will take away from the patient is the provider’s ability to balance charting on their tablet or PC and keeping eye contact with their patient. That is something the provider has to figure out and what method works best for them. Other than that, I cannot blame the technology; I will blame all of the factors I listed above.

There are a lot of initiatives out there, but sticking to government-driven, well my opinion may not be such a positive one. For the well-known initiatives such as P4P, Bridges to Excellence, Meaningful Use, and now ACOs, outside of NCQA and PCMH, I am really not sure how helpful any of the others are at this point. Having the independent opportunity to evaluate and understand one’s own return on investment and how it will truly improve the quality of care, which is most important, is what the driver should be. In addition, what will provide cost reduction; improve the quality of care, and the bottom line of a practice? I agree we need timelines and incentives to keep the ball rolling, but these are decisions that practices and other healthcare organizations should vet and make based on a good business case and other factors. NCQA Recognition/PCMH are two that I feel the most strongly about, as they have proven and documented results in these areas and have assisted with preventative medicine in such a positive way. It is an initiative that needs an electronic environment with strong reporting capabilities to manage well and reap the outcomes and rewards both financially and clinically. Healthcare providers, administrators, and executives are intelligent professionals that can make, and are making, these types of technology and business decisions every day independent of any initiative. There are so many initiatives hitting at once, that they become more of a hindrance than helping move practices forward in a positive way.

If you could change just one thing about the healthcare industry, what would you change? I don’t think there is enough article space for me to answer that question! But if I had to change one thing it would be how Meaningful Use and EHR adoption was structured and put forth. The mandate is not productive as it sits, and is causing poor documentation against coding and practices making investments in solutions that are not a good fit; and as a result using them ineffectively or tossing them completely. We are seeing compliance issues on the rise, patient safety concerns, practices struggling financially, and patient satisfaction issues. Forcing MU down providers’ throats is not going to achieve the goals HHS, CMS and the ONC have set. To add insult to injury, Health Information Exchange (HIE) is the technology that will bring all providers with EHR systems together to share data. Every state is trying to implement an HIE for this purpose and the Federal Government’s vision is to pull them all together to deploy the Nationwide Health Information Network (NHIN). First and foremost, an HIE is the equivalent to building a highway, and practices with EMR systems are the cars that drive on it. What good is the highway if there are no cars on it? Unless adoption increases quickly, and is done successfully with usable, accurate, and structured reportable data, where is the quality improvement and cost reduction coming from? Maybe I am missing something, but I don’t think so. Providers just want to practice medicine and do it well; we need to let them!

When you’re not busy advocating for a better healthcare information system, what do you like to do in your downtime? Downtime? I would love to know what that is! When I do get downtime, my family is my priority. Traveling, golfing, food, and wine are all next in line. n

TechNews | www.njtc.org | May 2012

7

Business & Strategy

A New Approach for Next-Generation Product Development By Richard Holman

Product development is supposed to be the innovation engine driving companies forward. Yet the numbers reveal otherwise: For every four projects that companies green-light, only one makes it to market, according to a recent study by professors at Georgetown University’s McDonough School of Business. Research from Booz & Company backs this up. They examined 50 projects in the automotive, industrial, and aerospace sectors and found that 80 percent of them consumed substantially more time and money to launch than initially projected. Why such dismal results? For many companies, the process of product development is simply too regimented. This traditional, gated model for new product design follows a series of go/no-go decisions along a linear timeline. It’s a carefully choreographed approach that assumes almost perfect information and analysis at the front end in order to produce a successful product at the back end. Unfortunately, the real world doesn’t work that way. All too often, by the time the product hits the market, customer needs have evolved (or, more likely, they weren’t fully understood in the first place). In addition, finalizing design decisions early in the process leads to unforeseen complexity and risk at subsequent stages, leading to substantial cost overruns and delays when work has to be redone. In short, this approach is deceptively orderly at the front end, which often results in chaos later on. Some companies have tried to improve the traditional productdevelopment process by implementing a “lean” approach. These efforts (which we think of as 2G development) focus on eliminating waste and improving speed-to-market. They synchronize information flow, capture the voice of the consumer more effectively, and standardize repetitive tasks. Yet while lean development is a step forward, it represents a half solution at best. It wrings all the inefficiencies out of the back end of product development, but it still requires that the main parameters— design specifications, budgetary constraints, product specifications, and supplier requirements, among others—be locked down fairly early in the process.

8

If companies are to create products that will truly disrupt the market, they will need a new approach – call it 3G product development. This method captures all the benefits of the lean approach on the back end, while implementing a far more agile and flexible process at the beginning stages. The goal is to allow rapid and frequent iterations

early on, allowing for a larger potential influx of design options, with a thorough understanding of the potential risks and complexities they entail. Software companies have been the earliest adopters of 3G product development. These companies must routinely iterate multiple versions of their programs and assess them against customer needs and preferences. Admittedly, the software industry has the added advantage of releasing its products incrementally, adding new features over time based on consumer needs and preferences. While most other sectors don’t have that advantage—and must execute traditional platform releases of their products—they can still apply agile principles to the front end of their product-development process. Doing so will allow them to reap many of the benefits of this approach, such as incorporating customer input to optimize the product, and identifying or eliminating risks. To succeed at 3G product development, companies must generate far more design concepts and thoroughly test early prototypes with

TechNews | www.njtc.org | May 2012

Accounting Q&A

I have heard that I now have a few choices to make when deciding what type of Service Audit for my business; is it still called a SAS70?

customers (in a period of weeks, not months). As the results come in, cross-functional product development teams—design, engineering, manufacturing, procurement, and sales and marketing, among others—must work together to integrate that information into a blueprint for subsequent iterations. While this method may seem more chaotic in the early stages, it actually drives down uncertainty and risks in later phases, making the overall process less costly and more efficient. In our experience, this approach—agile in the front end, lean in the back end—can reduce the labor and capital resources required to get a product to market by 30 percent, or more. It can also substantially reduce cycle time to launch by 30 percent to 50 percent. Just consider the returns that Apple has enjoyed from the rapid-fire sequence of products that began with the iPod, then the iPhone, and finally the iPad—products updated virtually every 12 months or so, all built using many of the best 3G agile techniques. Third-generation product development requires discipline and, for many companies, a complete transfor-mation of how they design, develop, and launch products. Implementing this new approach may unearth inefficient approaches deeply embedded in the organization, and it may generate friction among departments that have grown used to the status quo. However, given the increasingly competitive business environment, the effort could pay off significantly, and turn product development into the profitable innovation engine it was always meant to be. n

From 1992 until this past June, SAS 70 engagements were the only option for a service company that wanted or needed to provide their customers with a report covering internal controls related to their customer’s data and processing of that data. There are now three distinct types of Service Organization Control (SOC) reports available. They are called SOC1, SOC2 and SOC3. These reports are not interchangeable; however, they address different needs. The most “direct replacement” for a SAS70 is a SOC1 report, as its purpose is to report on controls at a company that provides services to customers when the subject controls are relevant to the customer’s internal controls over financial reporting. SOC2 and SOC3 reports are relevant to controls related to compliance and operations. Specifically they relate to controls over the security, availability and processing integrity for systems and the confidentiality and privacy of information processed by the system. These reports do not extend to the controls related to financial reporting. If you are considering your first Service Auditor’s Report, be sure to consult with a firm that truly has a specialty in this area. Their experience and guidance can make all the difference. Tony Chapman is the Practice Leader of the Service Audit Practice of WithumSmith+Brown, PC. Tony may be reached at 609.520.1188 or [email protected].

Richard Holman is a principal at Booz & Company. www.booz.com

TechNews | www.njtc.org | May 2012

9

Business & Strategy

Legal Q&A Is it possible to obtain a “No Further Action Letter” from the State of New Jersey where, in fact, “further action” is definitely required by someone? Under the old framework at NJDEP, a responsible party would typically petition NJDEP for a “No Further Action Letter” (NFA). As custom would have it, purchasers and lenders in real estate transactions would request an NFA confirming the obvious – that is—that, literally, no further action is required because the property has been remediated to applicable commercial or residential standards, as the case may be. In atypical circumstances, under the old system, NJDEP might have issued an NFA where contamination of a regional nature existed, or perhaps in cases where the consultant or attorney pushed the State hard enough. Alternatively, the State might have issued a “mini NFA” providing clearance for a particular constituent or discrete area of concern, in lieu of a “site wide” approval. With the new LSRP Program in full swing, owners, operators and lenders should take notice of the “form” approvals available to licensed consultants. NFAs are now replaced by Response Action Outcomes (RAOs). The consultant issuing the RAO (now standing in the shoes of NJDEP), has optional language to be included in the final approval, confirming that, in fact, contamination exists. In such cases, for example, where off-site contamination has migrated onto another property, a “final approval” may evidence not that “no further action” is required – but, rather, that no further action is currently required by a particular owner or operator. Bottom line: Read the fine print. Marc D. Policastro is a shareholder at Giordano, Halleran & Ciesla, PC. in the firm’s Environmental and Real Estate, Land Use and Development Practice Group. He can be reached at 732 741-3900 or at [email protected].

10

Rutgers Camden Technology Campus Introduces a Paperless Mobile Platform By Michele Huber Rutgers Camden Technology Campus, Inc. has launched an initiative to help businesses easily exchange information with potential customers, funders, employees, and vendors. The initiative, called the RCTC Information Exchange platform, enables enterprises to conduct business more. The platform, ApplyRapid™, is the first of this type in the nation. The company that developed the platform is also called Apply Rapid and is located at the Rutgers Camden Business Incubator. ApplyRapid™ is a secured mobile and cloudbased profile repository platform that helps businesses and other enterprises easily exchange information with potential clients, funders, employees, and vendors. The platform allows information requestors (such as businesses or college admissions departments) to build custom requisitions (known as Links) to request information from information providers (such as consumers or students) who hold password protected profiles. The information provider is

able to determine when and how information within its profile is shared with the information requester. The ease of the information exchange with this platform is achieved through a fourstep process. For example, at a New Jersey Business Incubation Network conference, startup businesses may be invited to present their ideas to prospective investors and financial institutions. At the conference, the information exchange could occur this efficiently: 1) a startup business scans the link (powered by a QR code) of a prospective investor; 2) reviews the information required by the investor to apply for funding; 3) clicks to grant the investor access to information it needs. Then 4) the investor tracks the information identifies the most attractive investment opportunities. ApplyRapid, Inc. is planning to launch globally after the RCTC’s initiative and similar programs are implemented in New Jersey. n

For more information about ApplyRapid, contact Donta’ D. Bell, CEO and founder, ApplyRapid, Inc., 200 Federal Street, Suite 244, Camden, NJ 08103, [email protected], (856) 671-1090.

NJTC Follows You On Twitter Opera Solutions @OperaSolutions Why Your #IT Spending is About to Hit the Wall http://jit.ly/_MgqfS

Virtua Health @VirtuaHealth Tanning beds could be worse for you, than initially thought. http://ti.me/HNsUww

Cognizant @Cognizant Cognizant among 12 organizations that have successfully used tech to improve organizational judgment: Tom Davenport http://j.mp/IF5Dax

Phone.Com @phonedotcom Click to Call Button gives visitors 2 ur site the ability 2call u w/o having 2 dial http://ow.ly/7llPm #SmallBiz #UI #VOIP #SMB

OwlPoint @OwlPoint Service-Now Developer/Lead - Chicago, IL http:// owlpoint.catsone.com/careers/index.php?m=port al&a=details&jobOrderID=973422

Follow the NJTC on Twitter @NJTC TechNews | www.njtc.org | May 2012

EDA Acts To Advance NJ’s First Technology Accelerator BY Travis Kahn New Jersey is looking for the next Google. With an eye toward nurturing the next generation of technology pioneers, the New Jersey Economic Development Authority (EDA) this week approved entering into a partnership with TechLaunch, LLC to create the state’s first Technology Accelerator. “This is an opportunity for the state to partner with the private sector to fill a market need in New Jersey by helping promising entrepreneurs achieve success,” said EDA Chief Executive Officer Caren Franzini. “We are embarking on a competition for innovation to reveal New Jersey’s entrepreneurial strengths, using a model that provides a potential return on the EDA’s investment and allows New Jersey to compete with neighboring states in maintaining and attracting technology talent.” The accelerator model has achieved notable success in other states by offering technologyfocused entrepreneurs an opportunity to showcase their products and ideas in a highly intensive, mentor driven and boot camp-style environment in return for an opportunity to receive funding. While building on this successful model, New Jersey’s initiative will be unique due to the first-rate talent associated with the state’s large enterprise businesses, the considerable intellectual property assets of these businesses and the ensuing acquisition pipeline from these same industries. “I share in the EDA’s optimistic vision for the future of entrepreneurial innovation within the State of New Jersey,” said Mario Casabona, Founder and CEO of TechLaunch. “TechLaunch was created to provide entrepreneurs the training and resources to de-risk start-up challenges and assure quicker and higher returns for both the entrepreneur and investors. As part of the TechLaunch business model, a twelve week LaunchPad business boot-camp program will provide the training, networking with mentors and potential strategic partners to increase the value of the enterprise and likelihood of followon funding. The program will culminate in a demonstration and an investor pitch from each company,” Casabona said. “I look forward to an exhilarating collaboration between public, private, and academic resources with two goals

in mind: to accelerate the commercialization of technology and strengthen entrepreneurial development within the State of New Jersey.” Upon final execution of the agreement with EDA, TechLaunch intends to run its inaugural class later this year at the initial host campus, Montclair State University. TechLaunch expects to host 12 companies in the first year, making average investments of $18,000 per company. The companies will be chosen by TechLaunch through a competitive selection process. To support this effort, the EDA has agreed to make an annual investment of $150,000 over three years. EDA’s investment requires $300,000 private sector matching funds annually. Franzini noted that New Jersey is especially suited to launch a successful Technology Accelerator given the state’s ecosystem of resources and long history of technological innovation. “From world class research universities and innovative, global companies to state-ofthe-art infrastructure and a highly educated workforce, New Jersey is the ‘innovation’ state,” Franzini said. “TechLaunch will leverage New Jersey’s technology-based assets and create an environment that allows our most promising entrepreneurs to grow and ultimately deliver products to market.” February’s approval of the agreement with TechLaunch follows the Board’s January authorization of a $2 million investment in New Jersey-based Edison Venture Fund VII, which targets financial, healthcare information, interactive marketing and enterprise 2.0 technology companies. The fund, which has obtained nearly $206 million in committed capital to date, is seeking to invest in 25 to 30 expansion stage companies with a $300 million target size for the fund. To date, the EDA has approved investments in eight venture capital funds totaling $31.5 million; the funds have leveraged EDA’s investment by more than 25 times. To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www. NewJerseyBusiness.gov. n

Jumpstart Your Career

Turning Training Into Action SetFocus was founded with the premise that everyone deserves a good education and a good job. This is especially true for our returning veterans who have demonstrated dedication, diligence and the ability to turn training into action. The SetFocus US Armed Services Veterans Training and Career Counseling Program, GI to IT, will enable these individuals to learn, grow and secure a sustainable employment in database and application development opportunities. To learn more about the GI to IT program, email [email protected] or call 973-889-0211 ext. 135

Travis Kahn is Executive Director of TechLaunch (www.techlaunch.com). He can be reached at [email protected].

TechNews | www.njtc.org | May 2012

11

Meet some of the industry experts speaking at FinTech Conference. Kim Guadagno, New Jersey Lt. Governor As Lt. Governor, Kim Guadagno has led the Christie Administration’s efforts to improve New Jersey’s economic vitality, to streamline government, and to make business feel welcome again in New Jersey.

Robert O. Carr Chairman and Chief Executive Officer, Heartland Payment Systems As Chairman and Chief Executive Officer of Heartland Payment Systems, Bob Carr is responsible for the strategic direction and growth of the company. Bob co-founded Heartland Payment Systems with Heartland Bank in 1997, quickly building the foundation for an end-to-end credit, debit and prepaid card processing engine.

Master of Ceremonies, Chris Sugden, Managing Partner, Edison Ventures Chris is a successful entrepreneur, experienced in finance, business strategy, product management, sales, marketing and capital formation. confirmed Speakers as of MaY 23, 2012 • Maxine Ballen, President and CEO, NJTC • Chris Davis, Co-founder and Managing Director, Two Four Systems • Steve Ehrlich, CEO, Lightspeed • John Eley, CEO, Pivot • Lucien Foster, AVP Corporate Strategy, NASDAQ OMX • Jeffrey Hare, Partner, DLA Piper LLP • Yaacov Heidingsfeld, CEO, Trader Tools • S unil Hirani, CEO of trueEX (former CEO of Creditex) • Wayne Johnson, Raymond James • Flint Lane, CEO & President, BillTrust • Reid Nagle, Founder, SNL Financial • Gregory Pacholski, President and CEO Albridge Solutions • Neil Platt, SVP, GM Banking and Payments, Fiserv (CashEdge) ModeratorS: Alex Tabb, The Tabb Group Michael Cichowski, Edison Ventures Tom Grundy, KPMG Amir Goldman, Susquehanna Growth Equity Andrew P. Gilbert, Esq., DLA Piper

12

Who Will Change the Financial Technology Industry? The FinTech industry is growing and evolving at a rapid pace. What’s the next big thing? What’s the next product or service that’s going to change the game? Which regulations will affect small and big business? The NJTC, along with Edison Ventures, is hosting its first ever FinTech Conference on May 23. The conference, held in Jersey City, will highlight the FinTech industry, and shine a spotlight on the companies right here in our own backyard that are helping to push the industry forward. Billtrust Invoice Central and CashflowNavigator.com are just two of those products helping move the industry ahead.

Billtrust Invoice Central Invoice Central is a cloud-based business invoice network that provides vendors with a one-stop site they can use to deliver invoices and accept payments. It gives small businesses a way to pay invoices across multiple vendors online without having to log in to multiple vendor sites to make payments and track their activity. Why will your product change the FinTech industry? Over the last 10 years, Billtrust has been very successful in helping companies roll out “biller direct” electronic billing sites. A new concept has emerged that is known as “consolidated billing,” which brings greater efficiency to the bill payment process. Invoice Central brings the consolidated billing model to the B2B market by providing a single website for small businesses to receive and pay invoices online across multiple vendors. The site improves efficiency for both vendors and small businesses and encourages more companies to adopt a paperless approach. Invoice Central streamlines the invoice delivery and payment process for vendors and small businesses. It provides vendors with a hub to deliver invoices and accept payments electronically. Small businesses can sign up for free, and begin receiving and paying invoices from multiple vendors. The one-stop location design helps businesses avoid late fees, maximize early-pay discounts and save time by scheduling future payments.

CashflowNavigator.com A simplified Web-based financial planning system to help households maximize cash flow and achieve financial independence. Why will your product change the FinTech industry? Our goal is to make CashflowNavigator.com an independent, Web-based one-stop financial planning hub. To achieve this, we first restructured the entire financial planning process, starting with the goal of financial independence. We provide simple rules to help maximize not just your net worth (wealth) but also your cash flow (financial independence). The rules found in an e-booklet is a free download from the cashflownavigator. com Web site entitled Wealth is Good, Cash Flow Is Better. Next, a single automated measurement tool integrates all your net worth and cash flow data in one place. This worksheet is initially pre-populated with data from one of 288-modeled U.S. households that have a financial profile that most closely matches yours. Your financial data and opportunities are prioritized, allowing you to select and achieve one high-impact goal at a time, which you update monthly until it is achieved, using an automated Goaltracker feature. The Web site also includes a social networking platform including blogs, user feedback forums and idea exchanges about increasing net worth and cash flow. All cashflownavigator.com tools and resources are free and secure. No personal identification information is required. In April CashflowNavigator received the Institute for Financial Literacy’s “Financial Literacy Program of the Year” award. We’re helping households, of all different financial standings, track and easily analyze their wealth, cash flow, and realize their financial independence.

TechNews | www.njtc.org | May 2012

The Changing Face of Payments By Benedict Baerst and Amir Goldman The advent of digital wallets on mobile devices promises consumers increased convenience and expanded functionality. The industry attention lavished on these innovations, however, diverts focus from some significant friction on the road to digitization of transactions outside of the retail sector. Though card adoption has largely brought electronification to retail transactions, a quarter of total non-cash volume has yet to migrate from paper checks. This stubborn corner of the market consists of transactional relationships lacking the scale or volume needed to support a network of intermediaries peddling dedicated terminal hardware and risk management services. SaaS delivery models and Internet marketing, however, have drastically reduced the costs of acquiring transactional volume. Recognizing the opportunity, an emerging set of payments providers are just now beginning to court this segment with a host of highly targeted solutions.

Why Do Checks Still Exist?

Understanding the composition of this submarket helps explain its resistance to electronic payments despite the momentum of debit and credit. Card payments are tremendously beneficial for high-volume, large-scale merchants like grocery and department stores but are not always cost-effective for other businesses. A major obstacle is the need for dedicated hardware to realize the convenience benefits of cards. High implementation costs and physical swipe readers ward off field-based businesses, particularly those accepting payments on an infrequent basis or of significant value. Data segmenting remaining check volume by payer and payee type helps tease out some distinctive characteristics of the holdouts. From 2006 to 2009, overall volume decline was concentrated around recurring transaction types: consumer-to-business and business-tobusiness payments at the point-of-sale.1 On the other side of the spectrum, person-to-person check volume is actually increasing slightly above macroeconomic growth. The balance of check volume is

composed of remittances, both B2B and B2C. Overall, the average value of check transactions continues to hover around $1000; the average card transaction, on the other hand, is closer to $50.2 Square Inc, a venture-backed company that has received much press attention, can be credited with minimizing the implementation costs of

“Payments trends are driven by behavior, not innovation, and how we transact is a generational question as well as A technological one.” card acceptance by leveraging ubiquitous hardware (mobile phones) and freely distributing swipe readers to drive merchant account openings. Percentage-based transaction fees, however, limit appeal to recipients of high-value payments. Given these factors—implementation and fees— many merchants find card acceptance unattractive despite consumer demand. Depending on the context, the value proposition of cards may skew in favor of either merchant or customer. For transactions above a certain value, the percentage-based fees make cards uneconomical regardless of the hardware costs. Another barrier to merchant card acceptance, even among those taking small payments, is the difficulty of validating ROI. A taxi driver whose volumes can vary from 12 fares one day to 42 the next may not easily discern the subtle uptick in volume card acceptance promises. Even if he could, he might easily misattribute any improvement to a host of other factors, like economic growth (more business travel) or See Payments, page 14

Technology Directory The Technology Directory is an online resource listing more than 3600 companies and the leading professional service providers supporting them with locations in New Jersey or having a strong connection to the region. The Directory is an open on line platform linking directly from www.njtc.org. NJTC Members have special privileges in the Technology Directory including expanded information about the business they are in and the verticals they serve. contact: Leo Mennitt • [email protected] • www.njtc.org

TechNews | www.njtc.org | May 2012

13

START YOUR JOB SEARCH TODAY

The Best Place to Find the Perfect Job... Is Just a Click Away! JOBSEEKERS • Manage your job search • Access hundreds of corporate job postings • Post an anonymous resume • Advanced Job Alert system EMPLOYERS • Quickly post job openings • Manage your online recruiting efforts • Advanced resume searching capabilities • Reach targeted & qualified candidates • May special – $50 job postings code: maytn

www.njtc.org Phone: 856-787-9700 or contact Leo Mennitt [email protected]

www.njtc.org 14

Payments

continued from page 13

lousy spring weather (more rainy days).3 A few percentage points clearly taken off of his monthly revenue number, on the other hand, is readily noticeable and directly attributable. This issue with the “demonstrability” of ROI inhibits adoption in many analogous situations where the decision-maker weighing card acceptance lacks the dataset necessary to see the results. As such, it is not surprising that cards initially gained their footing at national department stores. Small, independentlyowned entities, on the other hand, were late adopters, remaining cash-only until customer demand became overwhelming. To those transacting low volumes of high value, cash was never viable in the first place— particularly when fulfillment and payment are not simultaneous. The plumber, real estate agent, or small accounting firm billing each of their customers several times a year may only accept several dozen payments a month. In these circumstances, a two percent or greater fee to PayPal or Square likely outweighs the friction of cashing checks. Likewise, the convenience of a card is considerably less pronounced in service-oriented settings. The burden of filling out a check may seem quite bearable to a consumer following a few hours of tax planning.

The Hidden Costs of Checks

Courtesy of the Check 21 Act, presentment by image capture has significantly cut the costs of check processing, and depository institutions now clear 96% of volume electronically.4 The small businesses depositing many of those checks, however, continue to incur their own processing costs downstream of their banks. Many of these costs are indirect, manifested in business metrics like collection time rather than bank fees. Fragmentation makes for lousy economics in the eyes of volume-driven payment processors who might otherwise inform the market of its needs. As SaaS delivery models become the norm, however, technology providers are beginning to fill the void, finally cracking open the market with solutions geared towards a wider set of inefficiencies. Service-based practices, accounting for about two thirds of small businesses, are a particularly compelling end market for software providers to target. According to data collected by SGE’s portfolio company PaySimple, 70% of them do not accept any form of electronic payment at all. Owners have little time to study non-core operational concerns, and many opportunities to enhance productivity remain unexploited. In fact, 65% of these businesses track outstanding

payments on spreadsheets or paper, and some owners even handwrite invoices. Such approaches certainly cloud cash flow dynamics. Perhaps most dramatically, manual billing delays collection time by 60 to 90 days compared to automated systems. Given the tangible benefits of rapid cash collection— better terms with vendors, effective expense management, and certainty of payment—the value of automation is considerable once measured on an aggregate basis.5 The opportunity to payments companies, therefore, is much broader than transaction processing services. The market needs integrated solutions for all accounts receivables functions, not just payments acceptance. In fact, competitive research indicates that SMBs are far more receptive to solutions solving several pain points at once. Recurring billing, credit card acceptance, and eCheck processing all have their point solutions, but the value proposition weakens considerably as implementation grows increasingly complex. Industry pundits have heralded the demise of check and cash payments for nearly two decades now, yet both forms of payments have proven surprisingly resilient. Mobile device penetration, electronic invoicing, and integrated platforms for merchant and consumer alike will all continue to erode check usage. Nevertheless, payments trends are driven by behavior, not innovation, and how we transact is a generational question as well as technological one. Unlike other industries, widespread change requires adoption by three parties, not one, and new forms of payment can only emerge incrementally. The SMB market is so attractive because it represents a rare opportunity to bring electronic payment types, already accepted by consumers and banks alike, to the last remaining party, the merchant. Given the decades it took to pry open this market in the first place, even a modest foothold should prove amply defensible, and successful entrants will likely find themselves with a sticky, inaccessible, and fast-growing customer base. n 1. The Federal Reserve System. The 2010 Federal Reserve Payments Study: Noncash Payment Trends in the United States 2006-2009. New York, NY, p. 12-22. Retrieved from http://www.frbservices. org/files/communications/pdf/press/2010_payments_study.pdf 2. For historical data, see: Gerdes, G., & Walton, J. The Use of Checks and Other Noncash Payment Instruments in the United States. (The Federal Reserve Bulletin: August 2002). New York, NY, p. 363. Retrieved from http://www.federalreserve.gov/pubs/bulletin/2002/0802_2nd.pdf 3. For a statistical analysis of variables influencing fare income among taxi drivers, see: Farber, H. Is Tomorrow Another Day? The Labor Supply of New York Cab Drivers. (NBER Working Paper No. 9706: May 2003). JEL No. J4, J6., p. 25. 4. Bauer, P. & Gerdes, G. The Check Is Dead! Long Live the Check! A Check 21 Update. (The Cleveland Federal Reserve, September 2009). Retrieved from http://www. clevelandfed.org/research/commentary/2009/0609.cfm 5. Data from PaySimple customer reseach

Benedict Baerst is an Analyst and Amir Goldman is a Director at Susquehanna Growth Equity, LLC. www.sgep.com

TechNews | www.njtc.org | May 2012

Dollars & Sense

EASY ACCESS TO CAPITAL NOT SO FAST

O

By Michael Lopez

n April 5, 2012, President Obama signed into law the “Jumpstart Our Business Startups Act” (the JOBS Act), which was previously overwhelmingly approved by the U.S. Senate and U.S. House of Representatives. The JOBS Act consists of a package of bills intended to make it easier for smaller companies to raise public and private capital in the U.S. financial market Among the most significant provisions in the JOBS Act is the creation of a new category of issuers called “emerging growth companies” that would be exempt from, or subjected to reduced regulatory requirements for a limited period of time in an effort to encourage them to go public in the United States. The JOBS Act also includes other measures intended to ease significantly private capital formation and reduce public reporting requirements for small and emerging companies. One of those measures would exempt from the Securities Act registration requirements for certain “crowdfunding” transactions. “Crowdfunding” describes a capital-raising strategy whereby groups of people pool money, composed of small individual contributions, to support the accomplishment of a particular goal. Today, there is increasing interest in crowdfunding as a means of offering investors an ownership interest in an early-stage or small company. The Act would permit your emerging technology company (through a qualified intermediary) to raise up to one million dollars within any 12 month period. Many would believe that they could simply go to the internet to start the solicitation process (and I’m sure this has been and will continue to be attempted). The JOBS Act does require an issuer to file with the SEC and provide to investors and a “qualified portal” specified information among which is the following: A description of the issuer’s business,

anticipated business plan, and other financial information. Financial disclosures would require audited financial statements to the extent the issuer was looking to raise between $500,000 and $1,000,000 within that 12 month period. To the extent the issuer is looking to raise less than $500,000 attested to financial information would still need to be presented but not with the audit requirement. And those acting as the funding portal intermediary would need to take certain actions among which (besides registration with the SEC) would be to: • Provide disclosures, including those related to risks and other investors education materials, and ensure that investors review such disclosures, affirm risk of loss and answer various questions relating to financial qualifications. • Take such measures to reduce risk of fraud, including but not limited to, background and regulatory checks on directors, officers and significant shareholders of issuers. • Make available to the SEC and to potential investors any information provided by the issuer to investors and intermediaries, not later than 21 days prior to the first day on which securities are sold to any investor. • Make such efforts as the SEC determines appropriate by rule to ensure that no investor in a 12-month period has purchased securities offered pursuant to this exemption that, in the aggregate, from all issuers, exceed certain investment limits. While there are still many questions to be asked and answered surrounding this new and groundbreaking legislation, it is clear that those looking to raise up to a million dollars to jump start their company will have reduced barriers and time constraints to entry into this market place for precious capital. But there will still be enough regulatory requirement (as there should be) to make the entrepreneur stop and think “not so fast.” n

Michael Lopez, CPA, is a Partner with EisnerAmper LLP and a member of the firm’s Technology Group. Contact: [email protected]; 347-735-4610.

TechNews | www.njtc.org | May 2012

15

By Jerry Masin Thomas Edison said, “Vision without execution is hallucination.” In today’s economic environment – where businesses have learned to do more with fewer people, yet struggle to find qualified candidates for those positions that are open – seeking employment without proper education and training is vision without execution. Unemployment rates remain stagnant in part due to more job seekers reentering the job market as the economy continues to recover, yet less jobs available because many positions cut during the recession are gone forever as technology has spurred improvements in business processes. As columnist David Brooks recently said, “American skills have not kept up with technological change.” Those Americans who have kept up are succeeding. While unemployment rates still remain above 8 percent, unemployment in the information technology sector consistently runs well below national levels, as low as 3.3 percent in June 2011 when the national rate was 9.2 percent. And the news for the IT community, and those seeking employment in this sector, keeps getting better. After sitting on their cash for most of the recession businesses once again are investing in IT, on both the software and hardware sides. U.S. businesses are forecast to spend $551 billion on IT products and services in 2012, according to the “United States Information Technology Report Q1 2012” issued by MarketResearch.com. Drivers of that investment include cloud computing, mobile applications, data center consolidation, product innovation such as tablets and netbooks and technology innovation such as GPS, the report said. Monster added government mandates such as those of the American Recovery and Reinvestment Act. Because computers do not program themselves this increase in investment translates into demand for skilled IT workers. According to “Tech Hiring Trends 2012” issued by Acquity Group, there will be an increased demand for mobile application developers and data warehouse analysts this year. U.S. News and World Report lists software developer and database administrator as the second and fifth best jobs of 2012. Yet not everyone gets IT. The Princeton Review showed that the 10 most popular college majors continue to include business administration

16

and management/commerce (#1), psychology (#2), English language and literature (#6) and political science and government (#9). At the same time 52 percent of U.S. businesses report having difficulty filling open positions, according to ManpowerGroup’s “2011 Talent Shortage Survey.” Only 14 percent of hiring managers reported that over the last three years “most” or “nearly all” job candidates had the skills their company looks for in a potential employee, according to a recent survey by the Career Advisory Board. Even in IT there is a shortage of necessary skills, with 93 percent of businesses reporting an overall skill gap among their IT staff, according to the “State of IT Skills” report by CompTIA.

Learning, Growth and Sustainable Employment In the new economy of the 21st century, economic vitality is the outcome of a three-part formula: learning, growth and sustainable employment. Through job-specific education and training workers become properly skilled, help businesses grow and remain employable. So how does an unemployed or underemployed non-IT worker take advantage of this increasing demand for skilled IT employees? As Edison said, they need to execute a plan. First, job-seekers must perform a skills assessment. A job search is a journey and just as a traveler begins a journey by assessing what he or she will need for the trip job-seekers must determine which skills they possess and lack. (Skill self-assessment tools are readily available online.) For example, to succeed as an application developer or database developer workers require a basic understanding of computing, objectoriented concepts, relational databases and how to write code. Because much of this can be trained, job-seekers in this field also must possess discipline, organizational skills, a burning desire to learn and a burning desire to succeed. Job-seekers can also confer with a career coach to determine their best path. Any discussion about where a worker wants to go must include a discussion of where the jobs are. Next, the execution of a career change and new job search entails job-specific education

TechNews | www.njtc.org | May 2012

photos: ©Bonnie Jacobs

and training that is holistic. Because past job training and business knowledge carry value, an effective IT training program must link past job experience with the new skills being learned. And finally the IT job search must include marketing – promoting the job-seeker with his or her new skills to prospective employers. SetFocus, an information technology training school that trains applications developers, database developers and other Microsoft professionals, puts this three-pronged approach to the test. Before any training begins, students partake in skill assessments, which help them and their instructors identify their current skills, their strengths and their areas needing improvement. Past job experience and knowledge is heavily weighed. Armed with this blueprint of knowledge, a training plan is outlined and executed through a curriculum that is designed and periodically reviewed in partnership with IT hiring companies. This ensures that students complete the 13-week full-time or 30+-week part-time program possessing the necessary skills and education to make them marketable. SetFocus’ marketing includes career development efforts through the school’s placement partners that connects graduates with businesses in a wide variety of sectors requiring highly skilled IT professionals. This thee-step formula of linking to past work experiences, building required skill sets and marketing to prospective employers allows graduates to maintain significant placement success. Most importantly, the holistic foundation of their training enables graduates to enjoy sustainable employment.

to outsource or hire new workers than invest in training for existing employees. In an era of high unemployment, many employers expect new employees to come prepared with the skills and training to be productive immediately, according to Brenda Gilchrist, principal and co-founder of the HR Matrix. For employment to be sustainable it must be valuable today and tomorrow. The best way to ensure that is through job-specific education and training. Information technology that drives nearly all business growth is taking a more prominent position in companies every day. Investment in IT will accelerate as technological innovation such as cloud computing and mobile applications advance exponentially. With this will come a greater need for IT professionals ready to step in and become productive immediately rather than lag behind a learning curve that is soaring skyward. Now is the moment for those outside the information technology sector who are considering entering to take that step and redefine their careers with a properly executed plan for their future. Education is the pathway to technology-focused employment. Learning, growth and sustainable employment – this is how to get IT. n

Education that Leads to Employment Education and training is only relevant if it leads to sustainable employment. Education and training is the means; employment is the end. And for employment to be sustainable, it must bring value to the employer. The idea of hitting the ground running has never been more relevant than in today’s economy. Companies are no longer willing to invest in training for two or three years; they demand their employees be productive now. According to CompTIA, employers are more likely

Jerry Masin is president of SetFocus, an information technology training school headquartered in Parsippany, New Jersey. He can be reached at 973.889.0211 or [email protected]. www.setfocus.com.

Everyone is talking about “the cloud” but most companies are only scratching the surface of the benefits available from these innovative tools. Hosted VoIP phone service. Colocation of data, software, and hardware. Efficient disaster recovery solutions. As a Global Top 100 Managed IT Service Provider, Ancero is at the forefront of the cloud movement. Contact Ancero today to ensure that your business is achieving maximum results from all of today’s and tomorrow’s technologies.

AnceroNJTC-CloudAd-052511.indd 1

5/25/11 12:09:05 PM

TechNews | www.njtc.org | May 2012

17

NJTC photo gallery Private Cloud Data Centers and Networking Reception March 20, 2012 • Ancero • Mt. Laurel, NJ NJTC’s preferred provider, Ancero hosted a reception to inform attendees about issues of liability, Disaster Recovery Plans, and how the cloud can help mitigate a potential loss of business in the event of a fire. A networking reception followed.

What’s Next in Mobile, Telecom & the Cloud March 27, 2012 Juniper Networks OpenLab – The Junos Center for Innovation, Bridgewater, NJ From the region’s universities and companies, presentations included product demonstrations, providing participants a glimpse of mobile applications, new equipment and cloud concepts that are reinventing technology throughout the region. Presentation from: • Juniper Networks OpenLab – The Junos Center for Innovation - Vin Spinelli, Managing Director, Mobile Solutions • Drexel University - Doug Pfeil, Research Associate, Drexel Wireless Systems Lab • Harrisburg University of Science and Technology - Dr. Joseph E. Cannon, Professor of Computer and Information Sciences • New Jersey Institute of Technology - Dr. Cesar Bandera, Adjunct Professor in NJIT’s School of Management and College of Computing Sciences • Monmouth University - Dr. William M. Tepfenhart, CTO, Rapid Response Institute and Associate Professor/ Graduate Studies for the Computer Science/ Software Engineering Department – • Princeton University - Jennifer Rexford, Professor of Computer Science • Rutgers University - Rutgers Wireless Labs - Ivan Seskar, Assoc. Director of Information Technology • Stevens Institute of Technology - Yanzhi Ren - Ph.D. Student, Data Analysis and Information Security Lab, • University of Pennsylvania - Harjot Gill, Graduate Student, Computer Information Science

NJTC 2012 CFO of the Year Awards Breakfast June 8, 2012 • Forsgate Country Club Celebrate with us as we honor some of our region’s finest financial executives The award categories are: CFO of the Year • Deal of the Year• Financier of the Year• Hall of Fame For details and to register visit www.njtc.org

18

TechNews | www.njtc.org | May 2012

Attendee Fees:

NJTC Members $150 Non-Members $300

For Additional Information www.njtc.org

May 23, 2012 • 8:30am-2 pm Opera Solutions, 10 Exchange Place, Jersey City, NJ Master of Ceremonies Chris Sugden, Managing Partner, Edison Ventures

A Conference Highlighting New Jersey’s Financial Technology Industry Featured Speaker Kim Guadagno, New Jersey Lt. Governor Keynote Speaker Robert O. Carr, Chairman and CEO, Heartland Payment Systems

Agenda

Register Today

CONCURRENT PANEL DISCUSSIONS:

CAPITAL MARKETS TRACK • Dodd-Frank and the New Market Structure

The panel will discuss the evolving regulatory landscape including the potential impact of implementation of The Dodd-Frank Act and the Volcker Rule. Moderator: Alex Tabb, The Tabb Group

Signature Sponsor

• Emerging Technology in Capital Markets

Capital markets and trading industries have witnessed significant transformation over the last 10 years - The evolution of algorithmic trading to high frequency trading; retail equity to retail foreign currency trading; technology serving wealth advisors becoming available to retail investors. Moderator: Michael Cichowski, Edison Ventures

PAYMENTS AND CONSUMER FINANCIAL SERVICES TRACK • Regulating Payments & Banking: The State of the Industry

The CARD Act and Consumer Financial Protection Bureau are just two of many big issues affecting the payments and retail financial services industry. Moderator: Tom Grundy, KPMG

Gold Sponsors

• Payments Innovations: Mobile, Gaming and Beyond

Mobile payments, social applications, gamification are transforming consumer behavior. Financial services companies are making significant investments in these areas. Moderator: Amir Goldman, Susquehanna Growth Equity

LUNCHEON PANEL: FinTech SUCCESS STORIES CEOs of financial technology companies will discuss their triumphs and challenges. Moderator: Andrew P. Gilbert, Esq., DLA Piper

confirmed Speakers as of March 27, 2012 • Maxine Ballen, President and CEO, NJTC • Chris Davis, Co-founder and Managing Director, Two Four Systems • Steve Ehrlich, CEO, Lightspeed • John Eley, CEO, Pivot • Lucien Foster, AVP Corporate Strategy, NASDAQ OMX • Jeffrey Hare, Partner, DLA Piper LLP • Yaacov Heidingsfeld, CEO, Trader Tools • Sunil Hirani, CEO of trueEX (former CEO of Creditex)

• Mitchell Hollin, Partner, LLR Partners • Wayne Johnson, Raymond James • Flint Lane, CEO & President, BillTrust • Reid Nagle, Founder, SNL Financial •G  regory Pacholski, President and CEO Albridge Solutions • Neil Platt, SVP, GM Banking and Payments, Fiserv (CashEdge)

Conference Supporters

LLR Partners Raymond James Signal Hill Capital Group Silicon Valley Bank Susquehanna Growth Equity

NJTC New Members

As of March 2012

lectronics Advanced Materials & Manufacturing Access Optical Networks Monmouth Junction, NJ • www.accessopt.com Holographic Data Storage in Non Volatile Crystal Media, High Speed Optical Communications and Interconnects for Cloud, Enterprise, NAS, SAN, and High Performance Computing Applications.

CMIT Solutions of Cherry Hill is the premier IT support and IT services company for small to mid-sized businesses in Cherry Hill, Marlton, Voorhees, Haddonfield, Haddon Heights and surrounding South Jersey towns.

Enixs Technology, LLC Edison, NJ • .enixstechnology.com Enixs Technology is one of the fastest growing advanced electronic equipment manufacturers and suppliers of Trainer Boards and Electronic Laboratory equipments for Universities and Research Laboratories.

DotcomWeavers Inc. Paramus, NJ • www.dotcomweavers.com Dotcomweavers is a cutting-edge web design and development company headquartered in Paramus, New Jersey. In business for more than 7 years, Dotcomweavers has been providing its clients first to market innovative web solutions that help businesses stay competitive and grow.

Environmental & Energy Economic Green Solutions Sparta, NJ We provide Best in Breed Sustainable and Green Energy Solutions to Enterprises and Organizations in the Metro NY Region.

Epion Health Lebanon, NJ • www.epionhealth.com Epion Health is placing Smart Screen™ tablets pre-loaded with tools and apps for use by physicians and patients at the point of care.

Locus Energy New York, NY • www.locusenergy.com Locus Energy helps renewable integrators easily monitor, maintain and optimize performance across a fleet of installed systems. The web-based platform provides comprehensive system monitoring for installation professionals as well as easy access for their end-users. NAC Harmonic Drive, Inc. Port Jervis, NY • www.nacharmonicdrive.com NAC Harmonic Drive, Inc. provides precision harmonic drive gearing components and gearheads for the aerospace, machine tool, electronics, printing, robotic and motion control industries. NAC is dedicated to providing world class quality, exceptional value, and superior customer service to our customers around the globe. Holganix, LLC Glen Mills, PA • www.holganix.com Holganix manufactures a proprietary bio-nutritional soil amendment that reduces the need for fertilizer by 90% and pesticides by up to 50% while providing superior results at 30% overall lower cost. Governmental – Foreign Israel Economic Mission to North America New York, NY • www.israeleconomicmission.com The Israel Economic Mission provides a direct link between the Israel and U.S. business and financial communities. Our goal is to manage the Government of Israel’s U.S. Dollar denominated debt, expand bilateral trade and investment and provide the timely information that executives in both countries need to conduct business together.

DocView Solutions, LLC Cherry Hill, NJ • www.docviewsolutions.com/ Healthcare software development company

Intellectual Tax Properties (DynaTax) Newark, NJ • www.dynatax.net ITP is an intellectual property holding company that owns exclusive rights of use and assignment to a portfolio of four US patents, related software systems and trademark to the name Dynatax. Dynatax is a patented estimated income tax withholding calculator, self-impound, and remittance service designated for over 40 million self employed US taxpayers. Three operating business units: Consumer, Commercial Licensing, & Payments Processor. All protected services are electronic. First patent term expires 2029. ITMS Marlton, NJ • www.itms.us.com ITMS L.LC. ofers a range of security and penetration scanning solutions. We can help find the holes in your network before an intrusion has occurred. We have over 13 years of experience securing computer networks. Lumos Information Services Piscataway, NJ • http://lumoslearning.com Lumos Learning is a publisher of innovative tools that enhance and extend classroom learning for children in K-12. Using the Lumos Study Programs, parents and educators can reinforce the classroom learning experience for children and help them succeed in the classrooms and standardized tests. Newport Financial Center Jersey City, NJ • www.newportfinancialcenter.com Newport Financial Center is a 500,000 SF Data Center/ Colocation facility in Jersey City, NJ.

Information Technologies Achieve, Inc. Jersey City, NJ

paSafeShare LLC Collts Neck, NJ • www.pasafeshare.com paSafeShare LLC is a Colts Neck, NJ based software solutions company providing solutions for intellectual property and data protection. The flagship product family, paSS™ delivers persistent file protection of business documents, spreadsheets, and presentations. Whether you send information to employees, customers, vendors, or business partners, paSS ensures that your recipients can view the information in its native form; but cannot print copy, modify, or forward the information to unauthorized recipients. paSS is a trademarks of paSafeShare LLC

CMIT Solutions Cherry Hill, NJ • www.cmitsolutions.com

Triveni IT North Bergen, NJ • www.triveniit.com

Individual – Executive in Transition Bob Moul Devon, PA Former Chairman and CEO

20

TechNews | www.njtc.org | May 2012

A technology company focusing on mobile and web applications. Virtual Computing Solutions, LLC Princeton, NJ • www.vuapps.com VCSL is a provider of cloud based software and data integration services. Our core product, VU Tracker is used by organizations and universities across the nation. Wachter Technology Solutions Inc. Mount Laurel, NJ • www.wachter.com Wachter Technology Solutions is a leading solution and service provider of data, voice, security, power and other integrated building systems. WinHire Inc. Monmouth Junction, NJ • www.winHire.com WinHire is a next generation video social recruitment platform, enabling corporates to gain exponential productivity in recruitment process Lifepoint Informatics Glen Rock, NJ • www.lifepoint.com Lifepoint Informatics is a trusted leader in healthcare IT focusing on laboratory outreach connectivity, health information exchange, and clinical data interoperability. Since 1999, Lifepoint has enable 200+ hospitals, clinical labs and anatomic pathology groups to grow their market share and extend their outreach programs through the deployment of its ONC-ATCB Certified We b Provider Portal and comprehensive portfolio of ready-to-go EHR interfaces. TreeIntoSky Inc. Lawrenceville, NJ • www.TreeIntoSky.com TreeIntoSky is about a new book FORMAT to standardize and inject personalized educational content into blockbuster video games. Advance Response Sea Girt, NJ • www.advanceresponse.com Healthcare technology (Software as a Service) company that improves collaboration between providers and payers during claim reconciliation. Gunter Media Group South Orange, NJ • www.guntermediagroup.com The Gunter Media Group is a digital publishing company for the science, technical and medical publishing industry with a focus on the small and medium size publishers. LifeSciences Advanced Pharmaceuticals, LLC Plainsboro, NJ • www.advancedpharmausa.com My company, Advanced Pharmaceuticals, LLC, located in New Jersey, is trying to develop a novel diagnostic tool for the screening and detection of prostate cancers. We also have clinical projects on the discovery/development of novel drugs and treatment for prostate cancer and rare neurological diseases such as Krabbe Disease. DNJ Pharma, Inc. Mullica Hill, NJ • www.dnjpharma.com DNJ Pharma, Inc. is a biopharmaceutical company specializing on drug discovery and development IVDiagnostics Valparaiso, IN • www.ivdiagnostics.com IV Diagnostics developed an in-vivo technology platform for cellular and molecular diagnosis of blood

Joining the NJTC Paul Frank • Ext 222 • [email protected] borne diseases. Joteq New York, NY • www.joteq.com Joteq Inc. brings convenience, horizontal drop delivery, and push-button simplicity to eye drops, with its new jotTM range of products. Patent-pending designs can be configured to deliver eye drops across all categories. jotTM also provides a more effective way to deliver drops to domestic pets, and other animals. Service Providers - Business Consultant BGS Healthcare Manalapan, NJ Multidisciplinary practice which evaluates emerging healthcare technologies, ensuring viability and alignment in a fast-paced environment, maximizing ROI and M&A opportunities. Service Providers – Insurance Alliant Insurance New York, NY • www.alliantinsurance.com From rapid changing security threats to intense governance scrutiny - more and more technology firms are turning to Alliant and our portfolio of risk financing solutions. Service Providers - Legal Bhuchar Law Princeton, NJ • www.bhucharlaw.com Bhuchar Law provides corporate immigration advice. Buchar Law has represented global IT companies, multi-national organizations, start-up ventures and Fortune 500 companies for all their immigration needs. Service Providers - Marketing cinquino+co. Woodland Park, NJ • www.cinquino.com cinquino+co. helps companies achieve performance goals by building their brand through solution-neutral marketing communications. Service Providers - Venture Capital Sunrise Capital Partners New York, NY • www.sunriselp.com Sunrise Capital Partners is an investment firm that engages in a broad range of investment activities out of the US and India and has the flexibility to invest within sector focus of Healthcare, Technology and Business Services. Yenni Capital, Inc. Scarsdale, NY Yenni Capital, Inc. provides investment banking and venture capital services to both domestic and international corporations. We maintain global relationships with institutional, private and strategic investors. We have recently advised and invested in cutting-edge healthcare and technology firms, including Supertron Technologies in Newark. Telecommunications Castle Hill Holding LLC Charlottesville, VA • www.castlehillholding.com Code Square, Inc. Jersey City, NJ • www.codesquare.me/ CodeSquare is a patent pending technology that takes the guesswork out of your friends, fans, or customers finding your social profile or page. With

CodeSquare you can create powerful and easy-to-use QR Codes that allow anyone to Like, Follow, or add you with one click. PCS Wireless Florham Park, NJ • www.pcsww.com Founded in 2011, PCS Wireless is one of the largest mobile phone and tablet distributors globally. We offer an extensive line of mobile products and services such as asset recovery, reverse logistics, and buyback programs. Veracity USA, Inc. Glen Rock, NJ • www.veracityglobal.com We design, develop and market innovative transmission storage and display products primarily for network video surveillance applications. Our aim is to support the evolution of mega-pixel video surveillance, designing unique products which solve real world IP video problems. Renewels Aerolase • www.aerolase.com AMBLER Growth Strategy Consultants, Inc. www.thegrowthstrategist.com ASTIR IT Solutions • www.astirit.com Audio Technologies and Codecs, Inc. (ATC Labs) www.atc-labs.com AWT Private Investments • www.awtprivateinvestments.com Bartlett & Company Inc. • www.bartlettgroup.com Bella Technologies, Inc. Bergen Community College • www.bergen.edu Bezwada Biomedical, LLC • www.bezwadabiomedical.com Binary Tree, Inc. • www.binarytree.com Blank Rome LLP • www.blankrome.com Blue Lotus SIDC • www.bluelotussidc.com Brother International Corporation • www.brother.com Cima Green LLC • http://caravantradingco.com Citibank, N.A. • www.citibank.com Coranet • www.camelotgrp.com DATA, Inc. • www.datainc.biz DataPipe • www.datapipe.com DRS Technologies, Inc. • www.drs.com FiberMedia Group, LLC • www.fibermedia.net Folded Structures Company, L.L.C. • www.foldedstructures.com Fry Communications • www.frycomm.com Herrington Technology LLC • www.herringtontechnology.net Hilin Life Products, Inc. • www.hilinlife.com HITS Consulting Group LLC • www.hitscg.com iContracts Inc. • www.icontracts.com Japan External Trade Organization (JETRO) • www.jetro.org JCP&L/ A FirstEnergy Company • www.firstenergycorp.com Kirusa • www.kirusa.com Mercadien Technologies, LLC • www.mercadien.com Neeta Mukerjee, Ph.D NeuroDx • www.neurodx.com ObjectFrontier, Inc. • www.objectfrontier.com PrinceTel, Inc. • www.princetel.com QUALCOMM • www.qualcomm.com RedVision Systems, Inc. • www.redvision.com RF Telematics LLC • www.rftelematics.com Robert Half International, Inc. • www.rhi.com Rowan University • www.rowan.edu Schutz Engineering Corp. Semorex, Inc. • www.semorex.com Sequent • www.sequent-tech.com Soligenix • www.soligenix.com SSTi • www.s-s-t-i.com Tetrus Consulting Group • www.tetrusconsulting.com Treadstone Technologies, Inc. www.treadstone-technologies.com Trien Rosenberg • www.trienrosenberg.com Universal Display Corporation • www.universaldisplay.com Wiss & Company LLP • www.wiss.com World Currency USA • www.worldcurrencyusa.com

TechNews | www.njtc.org | May 2012

Membership Services Judy Storck • Ext 246 • [email protected] Member Relations Manager Ellen Stein • Ext 228 • [email protected]

NJTC Board of Directors Chairman of the Board Govi Rao, Noveda Technologies, Inc. Board Members Joseph Allegra, Edison Ventures Virginia Alling, PNC Bank Mel Baiada, BaseCamp Ventures Maxine Ballen, New Jersey Technology Council Joel Bloom, New Jersey Institute of Technology Kate Bluvol, PricewaterhouseCoopers LLP Robert Bothe, Opera Solutions James Bourke, WithumSmith+Brown, PC Paul Boyer, Ancero, LLC Skip Braun, Deloitte Leslie Browne, Senesco Technologies, Inc. Michael Christman, Coriell Institute for Medical Research John Clarke, Cardinal Partners Mark, Clifton, SRI Sarnoff Corporation Steven Cohen, Morgan Lewis Saki Dodelson, Achieve3000, Inc. Patricia Donohue, Mercer County Community College Caren Franzini, New Jersey Economic Development Authority Andrew Gilbert, DLA Piper Richard Goldberg, DRS Technologies, Inc. Mark Greenquist, Telcordia Technologies, Inc. James Gunton, NJTC Venture Fund Darren Hammell, Princeton Power Systems Brian Hughes, KPMG LLP Michael Kacsmar, Ernst & Young LLP Carl Kopfinger, TD Bank, N.A. William Kroll, MATHESON Shihab Kuran, Petra Solar Flint Lane, Billtrust Steve Lerner, Morris-Meyer, LLC Nancy Lurker, PDI, Inc. John Martinson, Edison Ventures Dan McGrath, Maloy Risk Services Richard Napoli, ObjectFrontier, Inc. Simon Nynens, Wayside Technology Group, Inc. Bob Olanoff, Systech International Gregory Olsen, GHO Ventures, LLC Kevin Pianko, WeiserMazars LLP Philip Politziner, EisnerAmper LLP Marianna Rabinovitch, ECI Technology Jeffrey H. Rosedale, Woodcock Washburn LLP James Russo, Princeton Financial Systems Douglas Schoenberger, Verizon Eric Shepcaro, Telx David Sorin, SorinRoyerCooper LLC Stephen Waldis, Synchronoss Technologies

21

NJTC CAlendar What’s Next in Micro and Smart Grids May 9 • 5:00 PM - 7:00 PM Bergen Community College 400 Paramus Road, Paramus, NJ Members $25.00 • Non-Members $50.00 Students $5.00 The term “microgrid” may conjure up images of self-sufficient military bases and remote outposts, generating and consuming power without any connections to the larger electricity grid. Such stand-alone microgrids now add up to about 450 megawatts of commercial and industrial capacity, and another 322 megawatts in the campus and institutional sector, in the U.S., according to Pike Research. But utilities, as well as their customers and partners, are increasingly looking past microgrids’ ability to “island” themselves to protect from broader power outages, and are seeking out ways they can use their on-site distributed power generation, and demand reduction and management systems to help the grid at large. In fact, these bite-sized smart grid systems could be an inevitable part of the build out of the “super grid” envisioned by such smart grid champions as Al Gore. Join NJTC as we present selections from a “Call for Presentations” that will discuss these innovations and what they can mean to our region. Presenters Include: • Rick S. Blum, Electrical Engineering Professor, Lehigh University • Inigo Goiri, Post Graduate Student, Rutgers University • Paul Sotkiewicz, Chief Economist Market Services, PJM Interconnection • Sotirios G. Ziavras, Professor & Director of the Computer Architecture and Parallel Processing Laboratory, New Jersey Institute of Technology The following NJTC Workgroups will also meet from 4:00 - 5:00 PM Cyber Security and International Partnerships

22

CFO Peer Network-Impact on the CFO during Leadership Changes May 10 • 8:00 am - 10:00 am Ernst & Young LLP 99 Wood Avenue South, Metro Park, NJ Open to CFO’s, C-level and Senior Management only Members: No Charge • Non-Members $25.00 CFO Alliance Members: No Charge When leadership at a company shifts hands, the effect is all-encompassing. When such an event occurs, the added responsibility of any organization’s financial beacon - the CFO - is immense. How does the company’s evolving strategic direction and newly shaped executive philosophy directly impact the duties of the CFO? What steps can a CFO take to more easily and efficiently navigate this fresh, uncharted territory? Hear from your fellow member CFO’s about their firsthand experiences, and what they would do differently if it were to happen again. Don’t catch yourself wondering how you would adjust to the situation – save the date and join us Moderator: • Stephen Muretta, Assurance Partner, Ernst & Young, LLP Speakers: • Ken Zuerblis, CFO, Savient Pharmaceuticals, Inc. • Robert Olanoff, CFO, Systech International

Mergers & Acquisitions: A CEO Perspective May 16 • 8:00 AM - 10:00 AM Morgan, Lewis & Bockius LLP 502 Carnegie Center, Princeton, NJ Members $0.00 • Non-Members $25.00 Sponsors: • Morgan Lewis • WithumSmith+Brown • TriNet HR According to the Global CEO Business Outlook Survey 2011–2012 by ICD Research executives from all industries expect to see increased levels of M&A activity citing attempts to reduce operational costs and increase organizational efficiencies as major factor examples. Featured Speaker: Burton Goldfield, CEO, TriNet In 2009, despite the difficult economic times, Burton Goldfield, CEO of TriNet, raised $80M to acquire a larger, public competitor, making TriNet the largest privately owned PEO and the industry’s second largest PEO overall. Under

TechNews | www.njtc.org | May 2012

Burton’s supervision, TriNet paid off its acquisition debt early, less than 15 months after securing the funds to acquire Gevity. Please join us on May 16 to hear firsthand from Mr. Goldfield as he shares his insights and personal reflection on his successful acquisition. Where were the challenges and lessons learned? What might he have done differently? Additional Speakers Steve Cohen, Partner, Morgan Lewis and Jim Weeks, Partner, WithumSmith+Brown will offer legal and accounting/tax perspectives. Open to CEO’s, C-level and Senior Management only

FinTech Conference May 23 • 8:30 - 2:00 Opera Solutions 10 Exchange Place Jersey City Members $150.00 • Non-Members $300.00 See page 19 for more information

CFO Awards June 8 • 8:00 am - 10:30am Forsgate Country Club 375 Forsgate Drive Monroe Township, NJ Members $55.00 • Non-Members $110.00 Non-Sponsor Professional Service Provider $150.00 The New Jersey Technology Council is pleased to announce the 2012 CFO Awards, an event that recognizes the accomplishments of financial executives from New Jersey and the surrounding region’s diverse technology companies. NJTC is Pleased to Announce the Keynote Speaker: Ed Pilner, CFO & Partner, GeoPeak Energy The award categories are: • CFO of the Year • Deal of the Year • Financier of the Year • Hall of Fame All attendees must be pre-registered. No Walk-ins.

Mobile Applications Forum June 14 • 2:00 PM - 7:00 PM Princeton University Convocation Room, Friend Center Princeton, NJ Members $25.00 • Non-Members $50.00 Students $5.00 Building applications for wireless, mobile Internet and broadband services is one of the most exciting areas of development in the technology arena. The New Jersey Technology Council looks to foster this innovation in the region so that developers, entrepreneurs, market leaders and investors can come together to discuss strategic direction, showcase and share their ideas and connect with resources and partners. We will present some of the best applications in development in the US. Working with the Canadian Consulate General, NJTC will present two panels and a Mobile Application Showcase where selected developers from the US and Canada will make presentations of their applications. NJTC will present two panels: and a Mobile Application Showcase where selected developers will make presentations on their applications. Panel 1: Application Trends Mobile App Showcase Winners of the Mobile Application Competition including

SAVE THE DATE

Panel 2: TBA Two WorkGroups will be offered Application Development and Mobile Learning

Health Information Technology Summit: Connected Healthcare July 19 • 9:00 AM - 4:00 PM New Jersey Hospital Association 760 Alexander Road, Princeton Members $60.00 • Non-Members $60.00

NJTC Annual Meeting July 12 • 11:00am-2:00pm Forsgate Country Club 375 Forsgate Drive Monroe Township, NJ Members Only: $75.00 Keynote Speaker, Jon Gertner Author of “The Idea Factory: Bell Labs and the Great Age of American Innovation”

Presented by the New Jersey Technology Council New Jersey Health Information Technology Coordinator The content will focus on the information and communication technologies driving the emergence of the “Smart Healthcare Consumer”. Where are the new opportunities in social media, patient engagement, and mobile health? How do technologists... encourage provider adoption? and support informed and inspired “self-trackers”?

The Energy Master Plan Implementation & Implications July 17 • 1:00 PM - 6:00 PM Members $25.00 • Non-Members $60.00

Exhibitor Opportunities available Contact Judy Storck: [email protected]

For updated information or to register for NJTC events, visit www.njtc.org

Networks

NJTC Industry Networks present programs about opportunities and challenges facing NJ technology companies by industry segment. Electronics, Advanced Materials & Manufacturing Patron Sponsors: EisnerAmper Woodcock Washburn LLP Contact: Paul Frank • Ext 222 [email protected] Ellen Stein • Ext 228 [email protected] Enviro-Energy Industry Patron Sponsors: Atlantic City Electric Morgan Lewis WeiserMazars LLP Woodcock Washburn Contact: Paul Frank • Ext 222 [email protected] Ellen Stein • Ext 228 [email protected]

IT/Software Patron Sponsors: BDO Contact: Leo Mennitt • Ext 227 [email protected] Judy Storck • Ext 246 [email protected] Life Sciences Patron Sponsor: McGladrey Contact: Leo Mennitt • Ext 227 [email protected] Meredith Meyer• Ext 234 [email protected] Telecommunications/Media Patron Sponsor: Drinker Biddle Verizon New Jersey Contact: Paul Frank • Ext 222 [email protected] Judy Storck • Ext 246 [email protected]

NJTC Peer Networks bring together like-minded technology professionals to share common issues, learn best practices and gain perspective across all technology industry segments. CEO Forum Patron Sponsors: Morgan Lewis TriNet WithumSmith+Brown Contact: Ellen Stein • Ext 222 [email protected] CFO Peer Network Patron Sponsors: Cresa NJ – North/Central LLC Ernst & Young, LLP Contact: Martine Johnston • Ext 244 [email protected]

TechNews | www.njtc.org | May 2012

CIO Peer Network Patron Sponsors: Oracle telx Contact: Karen Lisnyj • Ext 229 [email protected] Government Affairs Contact: Karen Lisnyj • Ext 229 [email protected] Venture Capital and Financing Patron Sponsors: Fox Rothschild LLP PricewaterhouseCoopers LLP TD Bank N.A Contact: Ellen Stein • Ext 228 [email protected] Women in Technology Patron Sponsor: CNA Technology SorinRoyerCoopers, LLC Contact: Joan Praiss • Ext 231 [email protected]

23

The New Jersey Technology Council and Education Foundation 1001 Briggs Road, Suite 280 Mt. Laurel, N.J. 08054

Non-profit Org. U.S. Postage

PAID

New Jersey Technology Council

ON THE NJTC TECHWIRE DAILY UPDATES ABOUT THE REGIONS MOST TECH SAVVY COMPANIES • Stockton scholarship fund reaches $20 million goal two years early. ATLANTIC CITY The Richard Stockton College of New Jersey had a lot to celebrate at this year’s scholarship gala. “You Make the Difference: The Campaign for Stockton College” exceeded its $20 million goal — with two years to spare. • N.J. AT&T lab receives patent for self-destructing ‘Mission: Impossible’ e-mails. Have you ever sent an e-mail you wished would self-destruct after the intended recipient read it? • RESEARCH SCIENTIST/ENTREPRENEUR WHO ORBITED EARTH AS PRIVATE CITIZEN TO SPEAK AT RVCC GRADUATION Dr. Greg Olsen, a research scientist and entrepreneur who was the third private citizen to orbit the earth on the International Space Station, will deliver the commencement address at Raritan Valley Community College’s (RVCC) 43rd annual spring commencement. • CIRCULITE® PROVIDES UPDATED CLINICAL DATA ON SYNERGY® MINIATURE VENTRICULAR SUPPORT SYSTEM IN MULTIPLE PRESENTATIONS AT ISHLT ANNUAL MEETING Positive Clinical Data Support Synergy’s Potential to Improve Hemodynamics, Exercise Capacity and Quality of Life in INTERMACS 4, 5, and 6 Patients with Chronic Heart Failure. • DBSi and Risk Masters, Inc. Announce Collaboration. Bethlehem, PA Data Based Systems International, Inc. (DBSi), a premier data center services company providing flexible, cost-effective technology solutions with a focus on IT Disaster Recovery (ITDR) will be collaborating with Risk Masters, Inc. to provide consulting assistance to DBSi clients interested in Business Continuity Planning. Headquartered in Bethlehem, PA, DBSi [...] • Women in Science: Does the Glass Ceiling Extend to the Lab? PHILADELPHIA Despite a long and productive history of scientific research and discovery that dates back to ancient times, women are still somewhat of a rarity in the STEM fields of science, technology, engineering and math. What strides have women in science made and what challenges remain? • NJ UNIVERSITY PRESIDENTS LAUNCH CAMPUS COMPACT PRINCETON, NJ The presidents of 22 New Jersey colleges and universities will officially launch the state affiliate of the national Campus Compact, an organization charged with advancing the public purposes of colleges and universities by deepening their ability to improve community life and to educate students for civic and social responsibility. • Connotate Automates Altitude Digital Partners’ Ad Exchange Data Collection Processes. Supply-side Advertising Firm Uses Leading Web Data Extraction and Monitoring Solution to Power the Latest Version of its Next Generation SSP

Innovative, Inspiring, Revolutionary… continued from front cover Gertner will provide answers to some of the most critical challenges that technology, bio-tech, pharma and R&D companies face: What causes innovation? Why does it happen? How can you nurture it? How can you sustain a culture of innovation? NJTC members who attend the Annual Meeting will learn how to develop a culture within their own company that supports and inspires new product development through collaboration. Steve Jobs once said, “The most difficult and important thing to create was not an innovative product but a great organization that could continually create innovative products.” What defined Bell Labs from its inception until the 1980s was a large, brilliant, interdisciplinary team that was encouraged to work together and had resources to support exploration. Today, research is generally more constrained, which hampers the innovative process, and as a result; its outcome. Gertner will give the audience best practices to keep your company on the front-line of best-in-class innovation. He will explain how Bell Labs was able to nurture its team to consistently deliver the pioneering products needed to advance technology. Register today for the Annual Meeting at www.NJTC.org, and learn more on how Bell Labs became The Idea Factory. n