Idea Generation and OpportunityAssessment.ppt

8/13/2019 Idea Generation and OpportunityAssessment.ppt

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Passion for the businessVision and endless ideas

Product/customer focus: Mustsatisfy customer needsPersevere through setbacks and failures

Executional excellence: Translatecreativity into action & generatemeasurable returns


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What makes a successfulentrepreneur?

Seeing opportunity whereothers dont Innovation: better, faster,cheaper, easier

Fire in the Belly Willingness to take risksExtreme work ethic


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Increasing Relevance to Founding Venture

Idea

GenerationCreativity

Opportunity

Recognition


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Analytic intelligence - The ability to analyzeand evaluate ideas, solve problems and makedecisionsCreative intelligence - Going beyond what isgiven to generate novel and interesting ideas.

Practical intelligence - The ability thatindividuals use to find the best fit betweenthemselves and the demands of the environmentSocial intelligence - The ability to understandand manage all types of people and to act wiselyin human relationsSuccessful intelligence - The acquisition anduse of what you need to know to be successful ina particular environment.


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PracticalIntelligence

CreativeIntelligence

AnalyticIntelligence Success

SuccessfulIntelligence


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Creativity emerges from a confluence ofIntellectual abilitiesBroad, rich knowledge baseAppropriate style of thinkingPersonality attributesIntrinsic, task-focused motivationEnvironment supportive of creativeideas


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Active search

Entrepreneurialalertness

Prior knowledge

Social networks

Opportunityrecognition


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Seeing links between seeminglyunconnected trends, changes, eventsConnections form an identifiablepattern


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Situation in which aperson can developa new business ideathat has potential to

generate profit


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Truly valuableentrepreneurialopportunities come froman external change thateither:Makes it possible to dothings that had not beendone beforeMakes it possible to dosomething in a morevaluable way.


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New technologyPolitical and regulatory shiftsSocial and demographic change

Potential


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Entrepreneurs develop business ideas by:Developing new products and servicesTapping new marketsFormulating new methods of productionIdentifying new raw materialsDeveloping new ways of organizing

processes


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Idea is thought, impression, notionOpportunity: favorable set of circumstancesthat create need for product or service. Ex:

Jeff Bezos/AmazonOpportunity has four essential qualities

AttractiveDurableTimelyCreates/adds value for buyer/user


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Observing/Study Trends Economic factors

Social factors Technological Advances Political Action and

regulatory statutes


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Economic ForcesConsumers level of disposable incomeInterest rate changesMore women in workforceCurrently: global recession

Social ForcesBoth parents working: fast foodPeople too busy: digital organizersLife stress: spas, wellness clinics


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Family & work patternsAging of the populationIncreasing diversity in the workplaceGlobalization of industriesIncreased focus in health care & fitnessProliferation of computers & Internet

Increase in numbers of cell phone usersNew forms of music & entertainment


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Technological AdvancesCell phones: allows people to be mobile

E-commerce: accommodates busyschedules and working fromhome/remote locations

Political ActionNew laws: help companies comply; ex:SoXTerrorism: Products & services to protect


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Solving a ProblemObserve peoples challenges Look for problems

Listen to peoples complaints Think of your own challenges


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Personal characteristics foropportunity recognition

Prior experience in an industryEntrepreneurial alertness/6 th senseSocial networksCreativity: preparation, incubation,

insight, evaluation, elaboration


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Group should choose a market andidentify a BIG PERVASIVEPROBLEM customers face.Brainstorm some products or servicesto solve those problems

Share ideas with larger group


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Brainstorming: generate ideas quickly, noanalysis or decision making

Enthusiasm, originality, lots of ideas

Freewheeling, livelyNo criticism allowedSession moves quicklyLeapfrogging encouraged


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Focus groups People selected are familiar with

issues Whats on customers mind Conducted by trained moderator Success depends on moderators

ability to ask questions and keep ontrack


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Surveys: gathering informationfrom sample of individuals

By phone, mail, online, in person

Random portions of population Customer Advisory Boards


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The process to determine if abusiness idea is viable worthpursuing

Product/service feasibility analysis Industry/market feasibility Organizational feasibility Financial feasibility


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Concept testing: validate customerinterest, desirability & purchase

intent Validate underlying premise Help develop the idea

Try to estimate sales


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New Business Concept Paper- Description of product/service offered- Intended target market- Benefits of product/service- Description of how the product will bepositioned versus similar ones in market

- Description how the product would be sold ordistributed.


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Usability Testing: measures products ease ofuse and the users perception of the experienceusing model/prototype


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Industry attractiveness Market timeliness Identification of niche market


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Industry AttractivenessLarge and growingImportant to the customer

Fairly young rather than older/matureHigh rather low operating marginsNot being crowded

Primary and secondary research is needed


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Market Timeliness- Improved product = market exists- Breakthrough product:- First mover advantage- Second mover advantageIdentifying a niche market


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Sufficient management expertise,organizational competence & resources tosuccessfully launch a business

- Management ability- Resource sufficiency


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Total start-up cash neededFinancial performance of similarbusinesses

Overall financial attractiveness ofthe proposed venture


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Looks at:Markets and MarginsCompetitive Advantages

Value RealizationOverall Potential

Exercise: Evaluate your groups idea using thefirst two screens


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Need/want/problem

Identified Unfocused

Customers Reachable,receptive

Unreachable,loyal to others

Market Size $100 million+

Less than $10million

Market GrowthRate

More than20%

Less than20% orshrinking

Gross Margin >40%,durable


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Barriers toCompetitorsEntry

Defensible None

Contacts andNetworks Key access Limited

Degree ofControl

High Low

Prices and Cost High LowSupply/distributionChannels

High Low


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I know quite certainly that I myself have no specialtalent; curiosity, obsession and dogged

endurance, combined with self-criticism, havebrought me to my ideas .

- Albert Einstein

The air is full of ideas. They are knocking you in thehead all the time. You only have to know what

you want, then forget it, and go about yourbusiness. Suddenly, the idea will come through.

It was there all the time.- Henry Ford

A mediocre idea that generates enthusiasm will go further than a great idea that inspires no one .

- Mary Kay Ash

Idea Generation and OpportunityAssessment.ppt

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