Workshop Idea Generation and Opportunity Assessment

8/2/2019 Workshop Idea Generation and Opportunity Assessment

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Idea Generation & Opportunity Assessment

2007-8 Business Plan Workshop SeriesPresented by: Chris Pavlides

Executive Director

Innovation & Entrepreneurship Institute9/6/07


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Temple Entrepreneurship

Princeton Review and Entrepreneur Magazine (Nov.06 issue) ranked Templeas 4 th in the nation for its undergraduateentrepreneurship program and 7 th for itsgraduate programFortune Small Business Magazine(Sept.07) issue ranked Temple among top25 entrepreneurial colleges in the nation


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The Power of EntrepreneurialThinking

What makes an entrepreneur? Seeing opportunity where others dont Innovation: Better, Faster, Cheaper, Easier Fire in the Belly Willingness to take risks

Why think like an entrepreneur? Changing economy new career options Corporate Intrapreneurship


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Why become an Entrepreneur?

Be my own bossPursue my own ideas

Make lots of moneyControl my own career/destinyDevelop a unique product or service

Help peopleBecome famous


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Characteristics of SuccessfulEntrepreneurs

Passion for the Business: change peopleslives. Critical for investors.Product/Customer Focus: Must satisfycustomer needsPersevere through setbacks and failures

Execution Intelligence: Translate creativityinto action & measurable returns


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Common Traits & Characteristicsof Entrepreneurs

Achievement driven Alert to opportunitiesCreative

DecisiveEnergeticStrong work ethicModerate risk takerNetworkerLengthy attention span

OptimisticPersuasivePromoter

Resource assembler/leverSelf-confidentSelf-starterTenaciousTolerant of ambiguity

Visionary


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Recognizing Opportunities & Generating Ideas

Idea is thought, impression, notion

Opportunity: favorable set of circumstances that createneed for product or service

1. Externally stimulated: e.g. Jeff Bezos/Amazon2. Internally stimulated: e.g. BrainReactions

Opportunity has 4 essential qualities1. Attractive2. Durable3. Timely4. Creates/adds value for buyer/user


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Observing/Study Trends1. Economic factors

2. Social factors3. Technological Advances4. Political Action/Regulatory statutes


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Economic ForcesConsumers level of disposable incomeInterest rate changesMore women in workforceSocial ForcesBoth parents working: fast foodPeople too busy: Sony WalkmanLife stress: spas, wellness clinics


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1. Family & work patterns2. Aging of the population3. Increasing diversity in the workplace4. Globalization of industries5. Increased focus in health care & fitness6. Proliferation of computers & Internet7. Increase in numbers of cell phone users8. New forms of music & entertainment


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Technological AdvancesCell phones: people very mobile

E-commerce: people very busy

Political Action

New laws: help companies complyTerrorism: Products & services to protect


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Solving a Problem1. Observe people challenges

2. Look for problems3. Listen to people complains4. Think of your own problems


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Small Group Exercise:What Opportunities Exist?

Group should choose a market andidentify a BIG PERVASIVE PROBLEMcustomers face.Brainstorm some products or services tosolve those problemsShare ideas with larger group


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Techniques in Generating Ideas

Brainstorming : generate ideas quickly,no analysis or decision making.Enthusiasm, originality, lots of ideasFreewheeling, livelyNo criticism allowed

Session moves quicklyLeapfrogging encouraged


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Focus groups1. People selected are familiar with issues

2. Whats on customers mind 3. Conducted by trained moderator4. Success depends on moderators ability

to ask questions and keep on track


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Surveys : gathering info from sample of individualsBy phone, mail, online, in personRandom portions of population

Customer Advisory Boards


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Feasibility Analysis

The process to determine if a businessidea is viable worth pursuing

1. Product/service feasibility analysis2. Industry/market feasibility

3. Organizational feasibility4. Financial feasibility


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Product/Service Feasibility Analysis

Concept testing : validate customerinterest, desirability & purchase intent

1. Validate underlying premise2. Help develop the idea3. 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 be

positioned versus similar ones in market- Description how the product would besold or distributed.


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Usability Testing : measures productsease of use and the users perception of the experience using model/prototype


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Industry/Market Feasibility Analysis

Industry attractivenessMarket timeliness

Identification of niche market


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Industry AttractivenessLarge and growingImportant to the customerFairly 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 advantage

Identifying a niche market


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Organizational Feasibility Analysis

Sufficient management expertise,organizational competence & resources tosuccessfully launch a business- Management ability- Resource sufficiency


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Financial Feasibility Analysis

Total start-up cash neededFinancial performance of similarbusinessesOverall Financial Attractiveness of theproposed venture


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Evaluating Opportunities: Quick Screen

Looks at: Markets and Margins Competitive Advantages Value Realization Overall Potential

Exercise: Evaluate your groups idea usingthe first two screens


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Markets and Margins

Need/want/problem

Identified Unfocused

Customers Reachable, receptive Unreachable, loyal toothers

Market Size $100 million + Less than $10 million

Market GrowthRate

More than 20% Less than 20% or

shrinking

Gross Margin >40%, durable


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Competitive Advantages

Barriers toCompetitors Entry

Defensible None

Contacts andNetworks

Key access Limited

Degree of Control:

High Low

Prices and Cost High Low

Channels of supply,

distribution

High Low

Workshop Idea Generation and Opportunity Assessment

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