INNOVATION CAPTURE Michael Cybulski Describe the innovation. Environmental companies have focused on satisfying the regulatory needs of today’s companies. They define their services in terms of how attractively they help clients overcome regulatory burdens. However that is not the primary goal of corporations in today’s market. The primary goal of corporations is to maximize market share and profits. When environmental companies think in line with these goals; provide additional sources of financing, improve cash flow, conserve capital, lower overhead costs, provide tax advantages, then they will have access to the highest levels of corporations. I propose CleanAir develop a new department that will lease and manage CEM systems. The advantages of this program for our clients are; Leasing does not tie up a company’s bank lines, it leaves cash available for working capital and growth. Working capital is left free to grow your business. Leasing lets you budget the cost of a CEMs system over its useful life. Lease payments are a regular expense that comes out of pre-tax income instead of after-tax profits. These payments can be deducted as an operating cost. Overhead costs go down as companies no longer need the staff to operate the CEM systems. An operating lease is not capitalized on the balance sheet as a liability, and therefore, does not affect the company’s debt ratios. Lease payments are expensed through the income statement. This means capital budget funds are left available for acquisitions to increase market share. By combining our “on-line CEM control” with a leasing package CleanAir can attract a significant amount of business through showing how we can increase their bottom line and still have their CEM’s system professionally managed. We must show that the rewards of our system outweigh the risks. If we can achieve this CleanAir will double in size. What are the benefits from achieving the innovation? In and of itself this new department has the ability to exceed all others in revenue generation, but it also helps in the following ways; Opens opportunities for CleanAir to speak to a management level we have not yet reached. Create business for Rentals through doing rental and repair of CEM equipment. Create business for Express through the sale of delivery systems and analyzers. Create business for CleanAir Europe by bringing in corporations with international operations. Create opportunities for our ventures with Pegasus and SAIC by using our relationships to sell other services. Create opportunities for the trading company to market QA/QC plans, Title V implementation, and permitting. Create opportunities for source testing. What are the major obstacles? CleanAir must change its sales prospective from value-added services approach to a bottom line approach. Only in this way can we overcome the risk factor this new system brings. Clayton C. Orcutt declared, “Change itself is not progress, but change is the price we pay for progress.” We must successfully develop the on-line CEM system so that it gives clients confidence in its ability to manage CEMs and keep the data confidential. This is a paradigm shift in how business is done and therefore it will be perceived as carrying with it a high risk. However with the proper financial incentive, this idea will be accepted. What are the skills, knowledge and capital resources needed? CleanAir must fully comprehend the cost accounting used to calculate CEM’s expenditures. We must present this in financial terms (the rewards) and professional capabilities (eliminate the risks). It would take two people working on this full time for up to three months to bring this to market. What are the individuals, groups, companies and organizations to work with in order to achieve this innovation? Work with 3M to understand the cost accounting practices. Work with our banker to develop a system where CleanAir buys an existing CEM’s system for a lease back program. What is the plan of action (include completion dates)? Work with corporation on cost accounting practices 30 days Develop complete business plan for our banker 45 days Beta test on-line CEM system 90 days Create sales literature 90 days Sales process can be expected to have a six month to a two year span.