UW-Madison students bring innovative product to market

Osman Ozcanli, a senior engineering student at UW–Madison, is spending a lot of time these days hanging around the University Book Store. He’s already well-stocked with pencils, paper and Badger paraphernalia, and has purchased all of his textbooks for the semester. In fact, he’s not there to buy anything.

Rather, this enterprising student is checking on his inventory of OZ Pack binders – accessories designed for students who wish to carry their books in something other than a bulky backpack. The products have been brought to market, in part, as a result of the G. Steven Burrill Technology Business Plan Competition at UW’s School of Business.

The annual competition is scheduled for April 24-25 this year. A panel of seasoned business and scientific experts will award $22,000 to top contestants, including $10,000 to the team winning first place. Each competing team must include science or business qualifications, as well as business expertise. Together students prepare a written business plan and make an oral presentation about commercialization of a technology they have created or discovered while at the UW–Madison.

In preparation for last spring’s Burrill competition, Osman used his winter break to great advantage. Upon arriving in his native Turkey for this short respite, he began sketching, cutting out patterns and testing various textiles. He was hoping to give shape to an idea that he and fellow engineering student, Anand Chhatpar, had during a fall course on business creation. As with many promising innovations, their concept was elegant in its simplicity, but presented certain design difficulties. What eventually emerged was the OZ Pack, a compact accessory for organizing and transporting study materials in situations where a backpack is overkill.

Osman and Anand next enlisted the consulting help of business major Puneesh Malkani, and applied to participate in the 2002 Burrill competition. The three would-be entrepreneurs spent the spring semester analyzing the business side of the equation. By the end of April, with business plan in hand, they were prepared to test their business concept and presentation skills against an impressive field of technology-based, student-led ventures. Even though the OZ Pack won the prestigious Tong Prototype Prize, it didn’t win the Burrill. Yet this minor setback was not the end of their story.

During the ensuing summer, Osman teamed with his high school friend, Baris Akyelli, to manufacture the OZ Pack and market it to Turkish high school students, the team’s original target market. They successfully landed an order from a local college prep company, collecting a 30 percent down payment, which was sufficient to enlist the services of a local manufacturer. After the first OZ Packs hit the market, the duo sold additional binders to their former high school and to Migros, a 72-store chain of high-end retailers scattered throughout Turkey. The latter taught them some valuable real-world lessons about playing in the major leagues. Migros demanded three months of “float” before paying for their order, leading the students to imagine shrinking margins and a cash-flow crunch.

Contacts nurtured by Osman during an internship at Kohler Manufacturing led to additional sales to Turkish firms. However, the winter break found him pondering the potential market in the U.S. Sure, OZ Packs were a hit in Turkey where backpacks are considered unfashionable. “Turkish students are practical,” explains Osman. “They only carry what is necessary – the book or papers they need at the time.”

But how would OZ Packs fare in Madison where college students seem to carry an entire library wherever they go? Thanks to University Book Store’s purchase of OZ Packs, Osman and his partners are able to test the U.S. college market while they continue their undergraduate education. In the meantime, Osman says that he has two new messenger bags on the drawing board, and is considering branching into wallets, pencil cases and laptop carryalls. He’s also interviewing for a sales manager.

Other students who have developed real businesses from concepts presented at the Burrill Competition include:

• Chad Sorenson, who shortly after winning second place in the Burrill competition in 2001, launched Fluent Systems LLC to manufacture TankMate, a wireless information feedback system for the application of anhydrous ammonia.
• Anca Copaescu and Florentina Popovici, who won the top prize of $10,000 in the 2001 Burrill competition, launched Metagenomics, which builds “gene libraries” and a database by extracting and cloning DNA from the soil.
• Joe Saari, who formed Precision Information in 1998 with one of the judges from the Burrill competition. PI produces the Encyclopedia of Personal Finance, a software package designed to provide comprehensive financial education for the common investor. PI has captured the attention of Ameritrade, New York Life, Morningstar and Intuit, who offer the package as a value-added service to their clients.

For more information about the OZ Pack, visit www.ozpack.com.