After eureka!: 7 questions to test if it's a good business idea.
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Transcript of After eureka!: 7 questions to test if it's a good business idea.
After Eureka!7 questions to test if it’s
really a good business idea.
simon kirby | opine consulting | www.opineconsulting.com | © Opine Consulting Limited, 2010
01020304
0605
07
Market attractiveness?
Customer needs?
Proposition?
Competitor lock-out?
Profitability?
Feasibility?
Strategic fit?
01Market attractiveness?1. What’s the size and
value of the market? 2. How much of it is
realistically available? 3. Is the market
changing, growing, shrinking or consolidating?
4. Are there any changes or discontinuities that could transform the market in your favour?
“I have determined that there is no market for talking pictures.”
Thomas Edison
02 Customer needs?1. Are my customer
needs clearly defined, strong and unmet?
2. Are there unvoiced customer needs?
3. What’s it worth to the customer to meet those needs?
“If I had asked people what they wanted, they would have said faster horses.”
Henry Ford •
03 Proposition?1. Is the proposition
clearly defined?2. Does it meet strong
customer needs? 3. Is it different?4. Is it interesting?
“One thousand songs in your pocket.”
Apple (the first iPod)
04Competitor lock-out?1. Is it patentable? 2. Can I use or build a
powerful brand?3. Are there any scale
economies and can I get big quickly enough to benefit from them?
4. Do I bring a distinctive capability to the innovation?
5. Can I build exclusive partnerships?
“One thousand songs in your pocket.”
Apple (the first iPod)
05 Profitability?1. What businesses are
comparable? How much do they make and what are they worth?
2. How risky are the cost and revenue streams?
3. How many revenue streams does the innovation generate? [the more, the better.]
“Growth is the scoreboard, not the game.”
Gary Hamel
•
06 Feasibility?1. Who needs to be
asked what to understand if it can be done?
2. Are there precedents that suggest it’s feasible?
3. Can I do it at reasonable cost and risk?
”one must look at things from the simplest, most practical point of view. ”
Fyodor Dostoevsky
07 Strategic fit?1. What core
competency would the venture deploy?
2. How does it fit or leverage brand or distribution strengths?
3. Does it use proprietary processes, skills and know-how?