Workshop Idea Generation and Opportunity Assessment
Transcript of 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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Recognizing Opportunities & Generating Ideas
Observing/Study Trends1. Economic factors
2. Social factors3. Technological Advances4. Political Action/Regulatory statutes
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Recognizing Opportunities & Generating Ideas
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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Recognizing Opportunities & Generating Ideas
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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Recognizing Opportunities & Generating Ideas
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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Recognizing Opportunities & Generating Ideas
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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Techniques in Generating Ideas
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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Techniques in Generating Ideas
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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Product/Service Feasibility Analysis
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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Product/Service Feasibility Analysis
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/Market Feasibility Analysis
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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Industry/Market Feasibility Analysis
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