To: Interested members of the HPP Exec Committee
From: Doug Lenat
Subject:  PLAN FOR THE HPP INDUSTRIAL ASSOCIATES PROGRAM
Date: Feb. 9, 1983    -- VERSION 3


This is an initial draft (Mark 3); please keep this confidential!


Primary goals: 
	Raising a large amount of unrestricted funds for HPP
	Not disrupting the work or directions of the HPP
Secondary goals:
	Avoiding conflicts with Teknowledge, Intelligenetics, etc.
	Avoiding stealing companies from the Computer Forum
	Not giving out too much office space or other resources
	Providing useful, customized experiences for each industrial visitor
	Providing education, consulting, some training, and possibly some 
		collaborative research for each member company
	Provide HPP with a pool of human resources for labor, and as experts
Inputs:
	We accept up to ten companies as HPP-IAP members (up to 5 in Year 1)
	Each company contributes an initial fee ($100k)and an annual fee ($70k);
		the annual fee covers all costs, plus $30k
		the initial fee creates a large nestegg of additional funds
Outputs (i.e., the services we provide):

(1) Visitors: the company can send one person for all four academic
quarters, or two for two (subject to space, and to our approval of the
individual(s)).  Each visitor is given counseling ahead of time to decide
what activities they'll do (read and study; apprentice as an Nth year
grad student would; build their own small system; act as an expert) and what
preparations they should take before their visit.  This ensures us
some usable labor to help with our projects, and little "drag" in any case.
In rare cases, of OUR choosing, the company's and individual's goals and
abilities may coincide with our own research interest, and some collaborative
research may be undertaken (probably at additional cost to the company).  In
such cases, the research component should dominate -- we don't want to weaken
the HPP, or compete with Teknowledge, by undertaking simply an engineering task.

(2) Consulting: HPP provides 4 free consulting days for them; they
get their choice of faculty members for one of those days, and an 
appropriate other person (by mutual agreeement; generally a non-faculty
member of the HPP) for the other 3 days.  The consultant is paid for
these days ($1000/day).  Additional consulting time may be arranged
by mutual agreement, but is not guaranteed.

(3) Computer Forum: this is included as part of their fees.  Companies
which are already Forum members get a discount of the entire Forum fee.
Note that HPP would probably maintain those companies in the Forum, and
would thereby gain an additional amount in unrestricted funds.  The Forum
includes sending 3 representatives to the annual conference, CSD memos, and
one free consulting day.

(4) HPP Conference:  I propose we hold an annual 1 (or 1.5) day meeting.
It is structured to be informative to, and open to, HPP students, staff,
and to the HPP-IAP members as well.  
Each company sends 4 repreentatives.  All the talks are videotaped that
day, and copies are made. Each member company gets a copy of those tapes and
hardcopies of the vugraphs used.  We may wish to make this part of a longer
HPP retreat some years, with the remainder of the meeting closed to non-HPPers.

(5) SIGLUNCH: the companies get SIGLUNCH notices, and each is free to
send 1-2 attendees. We videotape some of our SIGLUNCHES (but NONE of our 
RIPLUNCHES or special HPP project meetings, and only those Siglunches where
the speaker consents) and distriute copies of the tapes to members.

(6) Courses: visitors are welcome (as paid auditors) at any seminars and
AI courses our faculty happen to be teaching (222,102,223,224,225,229, etc.)

(7) Library/Computer/Memo: privleges at the CS library, and if they request
it at the main Stanford library.  Moderate use of Xerox machine, SCORE or
SUMEX account (for mail purposes only), hardcopies of HPP memos and CS reports.
Visitors will be made aware that HPP Working Papers are available, and are to
be treated as exactly that: more or less confidential drafts.

(8) Software: We will provide access to our languages and programs
to visitors while they are here.  Code they write may be taken with them.
Compiled versions of lanaguages we desire to circulate (e.g., MRS) will
also be supplied.  We do not guarantee to maintain any software, however.

Cost of services (for each company, presuming 5-10 members):
Visitors: hard to ascertain; their MARGINAL cost is $200/mo for space: $3k
Consulting: Paying $1k consulting fees to HPP faculty and staff for 4 days: $4k
Forum: $12.5k
HPP Conf: $2.5k, including the videotapes, food, etc.
Siglunch: 30 videotapes: $3k
Courses: auditing fees paid to the university: $7k
Lib/Comp/Memos: $2k (plus an amortiz. of about $4k for add'l Lisp machines)
Administrative and secretarial costs: $4k
Software: essentially none; small tape copying fees from time to time.

Total: $42k.
Adding in an approximate profit of $28k gives an annual fee of $70k --
this is reduced to $57.5k for Forum members who wish to pay separately.

The first year, to build up our nestegg, we would ask for an extra $30k,
thus a total of $100k ($88.5k for Forum members).

Management: We are already overburdened with administrative matters.
I propose that Carolyn Tajnai seve as administrative manager, much
as she does for the Forum.  She is more or less willing to take on
the extra burden, and the perfect job she does for the Forum makes her
the only one around with experience and proven competence at that 
sort of management -- the kind involving personal contact and interfacing.
In more detail, it would entail paying the Forum a little for her services,
perhaps creating a new, AA3 job to Manage both Forum and HPP-IAP, etc.
Those costs are already figured in above.  I am willing initially to
direct the HPP-IAP, but only if we get someone (like Carolyn) with whom
I can work and on whom I know I can depend.  

STILL TO DO: 
	Check the costs, legalities, conflicts, etc. 
	Filter this proposal through interested HPP-EXEC members
	Send final proposal to Gene Golub for approval
	Then send it to Jerry Lieberman for approval
	Finalize arrangements with Carolyn Tajnai (or hire other manager)
	Prepare brochure
	Recruit the companies
	Begin videotaping Siglunches
	Arrange the annual HPP retreat this June

MISC. NOTES:
The object is NOT to do sponsored research for these companies,
though the brochure will stress that the door for such work is
clearly opened by their participation in the IAP.  Under no circumstance
will we do work with classified or company-confidential information.
We should move VERY FAST on this if we are to use a 6/83 HPP Conference
as a lure in recruiting companies.  A delay of a month now might result in
a final delay of six months or even a year in getting started.