Taylor History and Business Model
years ago, Gail and Matt Taylor moved to Boulder, Colorado to start
a new business based on a unique way
by this time, had over 20 years work experience - Gail in education,
Matt in architecture - their focus, in 1979, was on creativity, the
environment that stimulates it, and why individuals and organizations
where not using - to greater individual and social advantage - the many
alternatives that were available to them.
is now MG Taylor Corporation, AI, the KnOwhere
(CyberConn Systems) and iterations
was started in Boulder in August 1979.
first environment, the Anticipatory
Management Center, was built in the spring of 1980. The first
work done in the Center was for the Affordable Housing Project DesignShop
process with the City of Boulder.
Taylors left Boulder at the end of 1983 when Acacia purchased the Enterprise,
however, the environmental design group stayed behind and is now AI,
an affiliate member and Business Unit of the MG Taylor ValueWeb.
this regard, MG
Taylor has never left Boulder and the place of its origin.
Today, MG Taylor and its affiliate organizations and Business Units,
offer a wide variety of products and services designed for the knowledge/network
Economy. These are delivered, across all product/service lines
and all Business Units in four modes:
CONCEPT - Descriptive/Consultative
TEMPLATE - Drawings, Specifications and Manuals
PARTS - Pieces and Components
SYSTEM - Turn Key.
four modes make it possible for ValueWeb members and users of Taylor
products and services to access them at the level of formation they
desire and at a price-point they can afford. These access modes are
available be the product/service a DesignShop, a NavCenter, a table,
the modeling language or a workshop.
Taylor has been and remains a pioneer of the Network Economy. It has
created the market in a variety of categories including
an entirely new approach to collaborative work and the practice of Group
Genius - as well as - the creation of new places to work,
new tools to work with and new means of working remotely. MG Taylor
has been recognized as a Fast
Company by FastCompany magazine.
are now expanding this portfolio by creating the computer support and
augmentation systems necessary for doing the Taylor work process effectively.
The essence of this method is the integration of work-processes, tools
and environments in a way that systematically promotes Group Genius,
synergy and emergent behavior among human agents and agents of all kinds.
This is accomplished by a patent-pending
process. The expectation is for the Patent to be issued by the end of
the first quarter 20001.
In essence, the Taylor way of working offers 21st Century organizations
and ValueWebs an OS - an operating system - for functioning as a network
enterprise in the emerging economy.
OS is offered as a philosophy within the framework of a Modeling
Language and as a suite of integrated processes, tools and
environments necessary for the execution of real work.
focus of this method is the creation and use of ValueWebs
- which many now believe
to be a critical organizing principle for effective participation
in the new economy - and, the employment of Group Genius by those ValueWebs.
the years, MG Taylor has conceived and designed this organizational
strategy, build the processes and tools to support it, the environments
for it to act in, and has become an example of one by the
execution of its own organizational structure.
pioneering effort has involved a great of deal design and planning,
significant trial and error and a few false starts. MG Taylor, and its
various affiliate enterprises, has been a lab for both discovering
and executing a new enterprise strategy.
the beginning of the 21st Century, MG Taylor has emerged as a maturing
Network Economy Enterprise that offers a significant suite of integrated
products and services for the creation and support of network organizations
and the new economy.
are delivered by a ValueWeb that exemplifies the organizational strategy
these products and services are designed and delivered to support. Thus,
MG Taylor brings 20 years of real-world experience to the work it offers
investors, customers partners and clients.
Taylor does not do work for clients - it acts as a System Integrator
of a specific ValueWeb
domain - of which the client is an active member. It is this structure/process
that creates and distributes the value sought.
addition to this System Integrator role, some aspects of the work are
sometimes directly provided by MG Taylor and its affiliate organizations
and Business Units. Much of it, and sometimes most of it, is provided
by extended ValueWeb members.
the MG Taylor ValueWeb are many individuals and organizations with the
know-how and organizational ability to provide what is required in a
wide variety of circumstances. The ValueWeb grows, organically, as new
challenges are presented. MG Taylor organizations and members remain
active as product/service providers along with their Commissioner
of Baseball role.
Taylor, and the ValueWeb are moving well beyond the cofounders who now
are becoming members of the ValueWeb pursuing their own projects as
they continue to work with in Taylor organizations on a systematically
in early 2001, the market revenue value of the activities associated
with the Taylor way-of-working within the total ValueWeb is in range
of 100 million dollars a year - and growing.
ValueWebs are being created based on, or partially based on, the Taylor
OS. This way of working, a mixture of open code and proprietary
IP, is becoming ubiquitous
For MG Taylor, the startup process is complete. This startup was brought
to a demonstration level with less than $600,000 of invested capital.
Between 1979 and the first quarter of 2001, $43,000,000 of Revenues
were earned and spent - with all operating profits reinvested - to create
both the proprietary Taylor System and the organizations that now source
addition to the equity investment and Revenues, five and a half million
dollars in debt financing was required to do the task. This debt peaked
in 1998 and was reduced by over a million, from profits earned, in late
1998 and 1999. By the end of the 2001, this debt is expected to be less
than 2.0 million. The consolidated Balance Sheet of the Enterprise will
the Taylor ValueWeb is populated with a variety of producer-investor-user
owned and operated organizations. The goal is to substantially grow
this web over the next 12 months.
will be accomplished by the Core Business Units substantially increasing
revenues with a series of Alliances and Joint Ventures and by small
investments in their stock.
the last quarter of 1999 and into the first quarter of 2000, the entire
Enterprise concept came together into an integrated practice.
This was facilitated by executing this End Game Strategy and
Business Model, pursuing all merger, ownership and partnering alternatives
until the market voted and the best path was determined.
path chosen was the spin off of each Business Unit, the
development of an integration/coordination board, and the proposal to
created of a largely self-funding Enterprise through the Wit Beer
method of establishing a trading market for The Taylor Business Units
and selected ValueWeb members stock. Neither the integration board
concept or trading market are executed as of 2001. There are still substantial
questions regarding how this can be accomplished. The objective is to
create individual investor liquidity without distorting the Enterprise
with an IPO or other exit strategy.
following is a brief status report of each MG Taylor Enterprise member
up dated in January 2001:
Taylor Corporation Purpose and Work:
and market Taylor IP Licensed from iterations.
and develop (commissioner of Baseball) the Taylor ValueWeb.
Develop new IP related to our
core business focus.
Develop new IP with and for other startup and established organizations.
Maintain and develop client and business (meta) relationships (all
four Business Units). Provide System Integrator services for (large
scale) PatchWorks exercises. Consolidate the bottom
end of the boutique transformation service providers.
Net Worth just under $1. Million (consolidated - all Business Units).
Credit rating back to fair - recovering from late 97
and early 1998 operations.
Internal Board - developing external members.
IP defined and mostly protected.
Being presented with many new opportunities:
Several JV and product development opportunities.
New major License Opportunities.
Interest from several academic organizations.
Several network growth opportunities.
NavCenters in successful startup with a couple on the drawing boards.
The NavCenter product is now mature and ready for transfer.
Cash flow across all Business Units is not, yet, sufficient to retire
debt and finance growth. It is approaching this level, however.
True value of Enterprise is not stated on Financials or by BDO.
No new debt created in last 18 months; we are meeting current obligations.
Some ambiguities associated with EY License.
BDO evaluation 11.5 million for all stock - intangibles not considered.
Owns controlling interest AI and KnOwhere Stores, Inc.
Core management and delivery team of 7.
Outsourced: accounting and legal.
Uses (pays rent and fees) KnOwhere Stores as office and delivery environments.
Fixed Overhead and cash flow requirements of $3,000,000 a year (including
debt reduction and iterations Royalty).
Active Licenses: EY, AI, KnOwhere Stores, Yolke.
Senior external advisors: 6.
Products and Services:
Certification of Sites and KnowledgeWorkers.
System Integrator (process) of ValueWebs.
Provide Taylor OS (Method) in Modes 1, 2, 3, and 4
MG Taylor Web Page and e-commerce sites.
New Products/organizations Incubation.
Support NavCenter Operations (until transfer is complete).
Leadership of Taylor ValueWeb.
Publish: Building ValueWebs - book/web site.
Complete the Patent.
Establish Trade Dress definition and market position.
Define what it is - & is not: DesignShop, a NavCenter, PatchWorks
(& other products). Determine open
source and proprietary mix and Modes 1, 2, 3, & 4 for all products.
Evaluation of the Enterprise - and each Business Unit - stand alone.
the external Board.
Options and Grants issued.
Covert maximum possible Debt to Equity.
Spin off the Business Units - establish ROE between BUs and governance
Board. Establish ROE for the ValueWeb.
Start management transition.
Tell our Story.
e-commerce capability (all four Business Units).
Bury the past. Eliminate all contingent liability.
Prepare for EY resolution of issues.
Explore creating an Internet Wit Beer Market for the ValueWeb.
Complete development of the NavCenter process and program - Transfer
Establish several new business relationships.
Create candidate list for consolidation efforts - start
Continue earning a bottom line profit individually and on a consolidated
basis (all four Business Units).
Revenue from all product/service areas and all Modes (1, 2, 3 & 4).
Establish Business Unit profitability.
Accomplish $10,000,000 to $12,000,000 Gross Revenue & $20,000,000
run rate by year end - consolidated (all Business Units).
significant investment in the three to 10 million dollar range (MGT,
KnOwhere & Yolke).
Accomplish a Consolidated
Value of all MGT Business Units of $100,000,000 within a year
Purpose and Work:
integration of process, tools and environments - RD& D through distribution.
Position the concept, process & components of the next generation
Develop a state-of-the-art rapid prototyping and low-scale production
and support a multi-channel distribution system for AI and related
Work with and support Licensed producers of AI designs and systems.
Develop product for and integrated marketing with the KnOwhere Stores.
Develop, own, deploy and manage RDS environments.
Develop and operate community-based Centers.
Custom design and production of high quality architectural millwork.
Own shop established: 15,000 square feet, 15 employees.
Production of product (in terms of rate and quality) is under control.
Production levels 90% scheduled through next several months.
Significant Revenues from call in, Internet, non-affiliate sources.
upgrade path to $5,000,000 production capability.
Corporation, stock - 80% owned by MG Taylor Corporation - 20% by Bill
Core Team of four: Management, Design, Production Scheduling and Sales.
15 full-time craftsmen in shop.
Foundation Series WorkFurniture.
Foundation 2 System.
Mode 1, 2, & 3 Plans, specifications and kits.
Custom Architectural design, products and millwork.
Operation of Environments.
Technical Systems wiring, configuration and setup.
and Prototype Foundation 2 Series - Bat Wing and Armature.
Value engineer and Production tool the existing Foundation series.
Upgrade Shop with CNC, glue-racks, etc. - $5,000,000 level production
capability. Reduce cost of all products by 25%.
Steady Production of Foundation Series - e-commerce and KnOwhere distribution.
Accomplish competitive pricing through multiple channels.
Design Patents - all products.
design features with production capability to create unique signature
advantage. Establish Board of Directors - weighted toward external
Accomplish spin off from MG Taylor Corporation.
Complete first embedded technology experiments.
Profitable relationship with KnOwhere Stores - good fulfillment and
services practices. Successfully meet competitive challenges (large
and startup companies).
plus Gross Revenue for 2000. $5,000,000 plus run rate at year-end.
Less than 25% Revenue from any single source.
25% run rate of Revenue from e-commerce and KnOwhere Stores by year-end.
Purpose and Work:
a "Network Economy," 21st Century Marketplace built around a new way
of working. Equip the members of this marketplace (ValueWeb).
Be a distribution place for the Taylor products and services.
Provide major nodes for the Taylor KnetWeb and other JV NetWebs (ValueWebs).
Be a hot spot of start up enterprises by offering integrated incubation
services. Establish a strong BRAND for brand extension and CO-branding
is an idea that has just gelled.
KnOwhere is a strong support system of MG Taylor Corporation, its
clients and Licensees.
KnOwhere has developed a strong independent business, client base
Retail and WorkFurniture Sales are about $7,000 a month with potential
for much more.
Palo Alto has initiated Office Hotelling, Incubation and accomplished
strong Brand positioning,
2000 profitability will be significant (the second full year of independent
team in place.
Each Store has a small, maintenance-level staff which is expanding.
C Corporation is established - equity is divided between Principals
and MG Taylor. A employee option plan is in place.
An outside board is being established.
for the Network Economy - virtual and physical - KnetWeb operations.
Environment and support services for organizations (including MG Taylor
Corporation). Equipment of the Network Economy - retail sales of knowledge
Incubation services and environment for startup organizations.
ZoomTrax sessions and DesignShop events.
Offer MG Taylor and self-branded Work Shops.
Be a place (hub) for Patchwork events.
Hosting of ValueWeb member services and products.
Product display and demonstration, customer survey and feedback to
the KnOwhere look and Brand.
KnetWeb operations as support system of the Taylor ValueWeb.
Establish the full KnOwhere venue of products and services.
KnOwhere As A Marketplace in the consumers eye.
Get a significantly increased level of community activities at each
Establish a steady retail and AI WorkFurniture business - at a supportable
scale. Introduce first KnOwhere Brand products: Red Wagon and Bean
Enhance Palo Alto and Hilton Head Stores to look more complete for
walk in trade. Establish KnOwhere "@" projects/products.
Develop CO-branding plan and list of potential partners.
Do second KnOwhere DesignShop with focus on creating Silicon Valley
Establish one major, operational JV venture with a major
from operations $2,000,000.
Establish a $10,000,000 (annual revenue) run rate by year end.
Attract several million in investment.
Systems Purpose and Work:
a Platform for the creation and use of smart/intelligent Agent-based
systems. Provide the tool kit and network system of the Taylor processes
a network service organization in support of the overall Enterprise.
Provide the support system for KnetWeb and other similar products.
Provide an incubation environment and platform for Internet startups.
full time Principle.
30 plus year old basic ideas honed through 20 years of MG Taylor practices.
Several specific product concepts heading toward market convergence.
Built-in start up market with MG Taylor and KnOwhere.
The iterations Patent Pending covers several key, unique, software
Corporation established equity divided between Principals and MG Taylor
An outside board is forming.
(to be operated by the KnOwhere Stores for the Taylor ValueWeb.
KnetWeb Builder to be sold and licensed to users.
A variety of ISP, network and server services retailed through the
KnOwhere Stores. The Barista Platform providing server service and
sold and licensed to users.
Consulting, facilitation, design and IP bundling for Internet start
up for fee and equity. CyberConn Tool Kit (Java, client/server strategy).
Joint Venture Projects based on Agent/Agency design strategy and Patents.
Establish Internet start up service package.
Basic Barista Platform finished.
Version. 1.0 of KnetWeb shipped to KnOwhere.
Organize Barista and CyberConn product iterations.
Develop product/service marketing concept plan.
Have a fundable Business Plan.
fee income for MG Taylor and KnOwhere infrastructure support and services.
Establish Revenues for bundled services and IP in support of Internet
startups. $600,000 run rate by year-end.
of Business Units
Unit Synergy and Interoperability Purpose and Work:
that focus on the integration of process, tools and environment is
maintained. Maintain cooperation and synergy between Business Units
Create Enterprise architecture that provides investment opportunities
wi/ exit strategies. Create a market place of Taylor Enterprises
that encourages distributed ownership.
role is performed on a ad-hoc basis by MG Taylor.
ROE (rules of engagement) between all Business Units.
A consortium built around a Joint Venture agreement between Business
Defined System Integrator role for MG Taylor with participation from
Board made up of representatives from each Business Unit.
to the BUs, License holders, JV Partners and KnetWeb members.
Conflict resolution among ValueWeb members.
ROE defining participation in the game.
formally established and working well by year-end.
Implement basic Remote Collaboration method for members.
fee structure and Royalty method among all ValueWeb members.
is not a Business Unit in the MG Taylor ValueWeb. It is a member of
the Taylor ValueWeb on the level of the first clam shell.
iterations is owned my Matt and Gail Taylor and Todd and jeff
Johnston. It holds ownership of the basic Taylor
IP in the form of Patents (pending), Copyrights, Trade Marks,
has Licensed MG Taylor to develop specific expressions of the IP in
the form of specific products: certain workshops, DesignShops, PatchWorks
Designs, NavCenters, WorkFurniture, ValueWeb Systems Integration,
CyberConn I, and so on.
expressions of the IP will be owned by each Business Unit - Design
and functional Patents of the Foundation Series WorkFurniture by AI,
specific code by Yolke Incoporated as example.
relationship between iterations and the various Business Units
is contractual - iterations has provided certain IP for a royalty
from MG Taylor. Iterations has no ownership in any Business
Units and exercises no control of them through board membership or
a ValueWeb member, however, iterations is interested in developing
new IP to be developed by the Business Units and the ValueWeb at large.
Excursions, formed in 1988, is now a wholly-owned subsidiary of
is a member of the American Sail Training Association and is a Class
D Tall Ship.
is actually the registered home office address of iterations.
Certain aspects of CAMELOT’S persona is usable by MG Taylor
Corporation along with a year-to-year agreement for providing support
to the MG Taylor Business Development Process.
has been used, since 1990, for MG Taylor one-on-one client meetings
and as personal working-retreats for MG Taylor employees and associates.
Starting in late 1999, she has been made available to ValueWeb members
for a nominal fee - see Letters
IP & Brand Strategy
issued. file follow on patents.
Patent - All Products, AI and KnOwhere items.
Trade Dress - Described, advertised, documented (affidavits), Compliance
Trade Secrete - Manuals, disclosure letters.
Trade Mark - Complete list, distribute how to use manual.
- Use ROE, fee, statement on web sites.
Develop License compliance strategy.
License and Certification process - pricing, scale/scope/time definition.
Letter to License holders and IP violators - Post web page.
Guidance for License holders usage of IP and License.
Publish Manual 1.0 (MG Taylor Corporation).
the Taylor persona - Largely through individual efforts,
the MG Taylor House Mark as signifier of the global Brand.
Establish each Business Unit Brand and Mark with their product lines.
Secure Trade Marks, Logos on all products and services.
Position the Trade Dress with customers (related to each product/service).
Get Trade Dress and Brand elements in every environment (ours, Licensee
and client). Create virtual Trade Dress elements to match
physical Trade Dress.
Coordinate and integrate the various web pages.
Build pages around specific products/services.
Create many Internet Portals into our Enterprise.
Establish the seal of fitness (Group Genius Logo) as certification
Start systematic press releases.
Publish - web and print.
Lever academic relationships.
Develop appropriate follow up program with License holders.
Integrate the portfolio of products/service, in families, through
Modes 1, 2, 3, & 4. Integrate Marks and product/services:
solutions to specific customer problems. Make
use of the KnOwhere Store environments to engage with the public - Build
traffic, introduce the ValueWeb concept. Engage in effective Co-branding,
Cosponsoring - this develops opportunities for shared presence and maximum
use of Overhead investment.
Wagon, Bean People, Syntopical Reading groups, etc.
have been building this Enterprise for 22 years.
have been through several cycles of the Stages
of the Enterprise Model.
are now at closure with our formation process.
investigating several merger and acquisition opportunities, the strategy
that has emerged is the stay independent course - even in
a possible future acquisition, we will remain free to pursue our strategy
(with a fully participating Partner, of course).
will always have many options for merger or specific Business Units
being acquired. In fact, these become stronger (we become more attractive)
as we follow an independent pathway. To me, this is not the critical
point. What is important is building our ValueWeb and structuring
each relationship appropriately.
any case, this strategy involves distributing our ownership and broadening
our ValueWeb base by two orders of magnitute this year. It means bringing
our full vision and invention to the creation of a new way of working
and a new kind of market place. It is the course most consistent with
succeed, we have to continue our focus and spend resources on executing
this Model/Plan. We also have to adapt it as we bring new partners into
have to keep doing our day-to-day work and we have to do it in
a way that implements this strategy.
we have to do something else: we have to promote our Enterprise
the way we used to. It is time to be a much more active
voice out in the world.
2001, we are going to make great progress executing this strategy. We
will be in a very different position when we do.
are many ways to execute the plan - there is great opportunity for improvement
and local variation. It will be changed where error is found. Not every
element will be done perfectly - or on time.
this is not the beginning of a planning process - it is the end
of a process that started in 1996 and has intensified over the last
18 months. It is important to realize that while our Enterprise started
over 22 years
ago we have been developing a business only in the last four
and one-half years.
will be better to accomplish a comprehensive strategy, partially, than
a fragmented one - perfectly. It is better to do a great job with an
imperfect solution than a too slow implantation of a perfect
have accomplished a great deal in the last year. Our Business Units
are organized and have achieved independent operational and financial
status. We have strengthened our Brand and market position. Our IP is
in excellent shape with a Patent about to issue. Financially, we continue
to self-fund the Enterprise When you look at the array of products,
services, IP and organizations we have created, this is an astounding
have attracted serious partners and investors and this is most pleasing.
It shows that we are being perceived as having organizational value
and that we have the maturity to engage in long term enterprise building
with major organizations.
I revised this page, today (January 2001), it was interesting to see
what had to be changed since May 28, 1999 - and what did not. What did
not was the essential strategy - what did was the tense. Many of the
we must do statements have given way to simple statements
of present conditions.
is the true measure of our progress as an Enterprise.
May 28, 1999
voice of this document:
ENGINEERING STRATEGY PRELIMINARY DESIGN
May 28, 1999
June 18, 2000
20000215.42852.mt 20000218.42856.mt 20000523.70447.mt
this document is 95% complete
Taylor 650 814 1192
Matt Taylor 1999, 2000
Statement and Policy