CLEVELAND, Ohio -- Just because Cleveland has the legacy of being an old economy and manufacturing powerhouse does not preclude it - or the region - transitioning from the Rust Belt to the Tech Belt.

It seems logical to me that legacy businesses have legacy type problems that don't

Michael C. DeAloia

need to be solved by Silicon Valley-size solutions. These problems easily can be resolved by Cleveland-area entrepreneurs. Two of which have solved heritage issues with fascinating solutions proving that Cleveland doesn't have to journey so far from its manufacturing dynamo roots to make money, create jobs and solve deep business problems.

From Parts to Procurement. What could say "Cleveland" more than making auto parts? Cleveland and the surrounding cities all have had their hand in creating the best auto parts in the world. So it seems logical that the solution to auto parts procurement for auto dealerships would be created in Northeast Ohio.

OEConnection, soon to be just OEC, was founded by GM, Ford, Chrysler and Bell Howell (GM and Ford still remain as shareholders) in late 2000 to solve a problem that had vexed the auto manufacturing industry since its inception. OEConnection's mission was clear - provide a parts-ordering solution to franchise car dealerships by embracing the Internet for a solution.

"Parts are a very profitable business for dealers, but dealers only control 27 percent of the parts business," said Chuck Rotuno, CEO of OEC.

Dealerships must have the parts for a myriad of cars -- and if they don't, they need to get them quickly. Historically, getting a needed part quickly was inefficiently done by a parts clerk calling other area dealerships, finding the part, then driving to get the part and bringing it back to the service department. Missing parts meant missing money for the dealer.

OEC created a back-end aggregation network that allows auto dealers to buy and sell OEM parts. The dealership pays a flat monthly fee for the software, with no surcharge or transaction fees. OEC now has more than 10,000 customers and revenues are quickly approaching $100 million.

"The OEC platform originates more than $20 billion in annual auto part trades," Rotuno said. The company now has more than 270 employees, many of which work out of corporate headquarters in Richfield. Another 30 employees are based in Columbus. Nearly 50 percent of all its employees are on the technology side. OEC is quickly becoming one of the most successful software companies in Northeast Ohio -- all by focusing on solving an old-economy problem.

Efficiency in Waste. One of the best ways to create a new-economy company solving old-world problems is a trip on StartUpBus. Essentially, a number of entrepreneurs and technologists jump on a bus, begin driving to an exotic locale and within 72 hours create a company or technology.

That's exactly how WasteBits, of Akron, was born in 2012. Dan Collins, CEO, believed so much in what was created during his bus trip that he left his full-time job in 2013 to launch the company. He then convinced a couple other brave souls to leave the safety of a consistent paycheck to join him in the startup.

By early 2014, WasteBits unveiled its first commercial software for the waste industry. The company created an open software platform that allows waste generators, service providers and facilities - to communicate effectively. Before WasteBits, it would take an average of 16 days for a waste generator to have the proper paperwork created and filed for the waste to be picked up for disposal. After WasteBits arrival, the same activity takes four hours.

WasteBits has grown from those initial three brave souls to now employing 12 full-time workers. Collins expects to double that next year, and close out a $1 million convertible debt round soon.

The legacy industries of the Rust Belt were prolific creators of waste and borne out of that serious issue was a vibrant solution. And there are thousands of such fascinating technology-based solutions yet to be created.

Start Your Own Internet Biz. For those of you interested in joining this ever-expanding rank of technology entrepreneurs, there is an upcoming conference for you.

On April 9, the University of Akron School of Law will host NEXTOhio, an Internet startup conference. The event will run from 5:30- 7:30 p.m. at Quaker Station in downtown Akron. The event is free and open to the public.

During the conference there will be a number of experts offering advice to nascent entrepreneurs when it comes to legal formation, how to raise money in the Midwest and what mistakes NOT to make.

If you have ever wanted to launch your own Internet business or, perhaps, invest in a regional startup, then this event is for you. Register at www.nextohio.com. I hope to see you there.