Transcript IdeaandOpportunity
Idea and Opportunity Mapping
By- Rahul Jain
Searching New Ideas
Guided by Our Broad Objectives Brainstorm to generate solutions (Environmental Analysis) Shortlist Ideas for detailed scrutiny 1.
2.
3.
Develop ways of evaluating ideas (yours and others ’ ) (5Qs) SWOT Analysis Other constraints
Objectives
To Increase Profits To Minimize Losses To Capture new Market To increase the Wealth To work for Philanthropy To Introduce new Design/Technology
Goodknight Sony Hotmail Levis Ceasefire Barbie DisneyLand Wal-Mart Tommy Hillfiger
Some have focused on certain links
For product features: Sony Walkman, Apple Computer, Barbie Doll, Hotmail, Disneyland, Harry Potter
For information collection process: Internet based Ebay, Amazon, Google
For buying process: Amazon, Dell, widely distributed and well displayed products
For payment process: Visa and Master Cards
For delivery process: DHL’s jumbo boxes, couriers
Sources of New Opportunities
Customer-route: When customer dissatisfaction is high; appropriate also when investment in technology development/application not yet made
Product-route: Appropriate when product or process developed and attractive application required
Sources of New Opportunities
New Applications of existing products /technology (Chat)
Technology integration (call taxi, mobile)
Sources of New Opportunities
Industry and market changes
Growing healthcare awareness (and concern to lengthen life) created bottled water, HQ packaging, fitness, yoga..…
When industry grows quickly, established firms concentrate on defending what they have
B&W TV manufacturers in India, HMV
Neglected but fast-growing segments offer excellent opportunities (Budget hotels/ Retailing)
Sources of New Opportunities
Demographic changes
Managing old age creating many opportunities
Growing higher education needs and State’s helplessness
Growing security concerns in offices, homes
Interest in comfort, travel and leisure
Do you agree that basically we are….
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Lazy
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Pleasure seeking
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Comfort seeking And Any product/service that helps us achieve these needs have potential
Scanning the Environment
International Environment Domestic Environment Macro Environment Sectoral Analysis SWOT Analysis
Scanning the Environment
International Environment International developments affect all businesses World is a Global Economic village Integrated economies Increased susceptibility to external happenings Internationalization, Digitization, Outsourcing One has to understand the impact of these factors See more opportunities than threats.
Scanning the Environment
Political Environment Stable & conducive political climate Government policies Extensive institutional framework Technological Environment Level of technology Rate of change in technology Socio-Cultural Environment Customs, Norms and Traditions of the society Its crucial for the operations of MNCs
Scanning the Environment
Legal Environment Laws of the country Labor laws and Legal redressal system Copyright acts & Trademark infringement Economic Environment
Factors for Industry attractiveness Market growth rate Market size Demand variability Industry profitability Industry rivalry Global opportunities Macro-environmental factors
Scanning the Environment
Sectoral Analysis Study the sector or Industry conditions Study the industry attractiveness Constraints or thrust on technology, manpower & raw material SWOT Analysis Helps understand own skills & abilities Knowledge & experience Helps in understanding the competition
SWOT Analysis- Strengths
Experience & Expertise Financial Position Good Contacts Capital raising capacity Collaborations
Weaknesses
New Unfamiliar technologies Inability to raise huge investments Lack of Experience Lack of trained personnel Lack of Economies of Scale
Opportunities
Emergence of New technologies New Products with new market Special financing Schemes Government Incentives Rapid growth in market
Threats
Competition Poor state of Economy Change in technology Change in Habits New Products and services
Screening Ideas: Are they Opportunities?
5 Questions
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2.
3.
4.
5.
What important customer problem can you solve?
How are you going to do it?
How many customers are there that are willing to buy from you?
Why can only you provide the solution?
How can you defend against others?
Ask these questions BEFORE somebody else does!
Screening an Opportunity: 5 Questions
1.
What important customer problem can you solve?
How valuable?
How painful?
Remember, you need to change somebody ’ s behavior to buy your product.
Screening an Opportunity: 5 Questions
2.
How are you going to do it?
Business model: Product Distribution Location Technology/Innovation Service Brand
Screening an Opportunity: 5 Questions
3.
How many customers are there that are willing to buy from you?
How many customers are there? (Market size) How many will buy from you? (Market share) Who will be your first customer (besides your Mom)?
Who will be your 100 th ?
Screening an Opportunity: 5 Questions
4.
Why can only you provide the solution?
How are you unique? What do you provide that nobody else can?
Screening an Opportunity: 5 Questions
5.
How can you defend against others?
Location, brand, patent (or other IP), great service, great taste, great fashion sense … .
Self-Opportunity Match
Previous Experience (knowledge, skills)
Self
Access to new knowledge, skills
Customer
Problems (existing, emerging)
Level of dissatisfaction (criticality, discontentment)
Financial Attractiveness Strategy (source, cost, availability, adequacy)
Technical Attractiveness Strategy (Existing/new technology and products/services)
Solution to Customer
Dissatisfaction
Marketing Attractiveness Strategy (size, Entry, Sustenance)
Entrepreneurial Capability Strategy (Attitude, Skills, Knowledge pool/network – individual/group)
Market Attractiveness
Identify areas of high customer dissatisfaction
Assess market size
Assess challenges in accessing customers
Assess competitive attractiveness
Overall Attractiveness
Determine technical feasibility
Estimate financial viability
Team quality is critical
Assess entrepreneurial resources (ASK)
Assess fit with personal preferences and aspirations
What & how big are the gaps in capabilities
Can the gaps be filled? How? Implications for success
Remember, EXECUTION is key to success
Iteratively balance the venture tripod (mkt, tech, fin) and entrepreneur (your team’s) at every stage
Detached passion
Prepare a dynamic Business Plan
Pitfalls In Selecting New Venture
Lack of Objective Evaluation
No Real Insight into the Market
Inadequate Understanding of Technical Requirements
Poor Financial Understanding
Lack of Venture Uniqueness
Ignorance of Legal Issues
Finalizing a Product/Service
Combine opportunities provided by the environment with your strengths In terms of knowledge, skills, experience, etc Analyze the industry forces Now, finalize the product/service The proposed product/service must be compatible with: The capability Resources Available Need of society
Criteria in Selecting Ideas
Investment Rate of return Implementation Market Size Risk Uniqueness Expected Life Flexibility Environment considerations Effectiveness Total Score on Each parameter ( 1 to 5 – Poor to Good)
Log I:Presentation IVth Week Close to Heart Idea & SWOT
Analysis
Prepare for a 3 minute- 5 minute presentation on the idea that has been finally chosen.
Use the 5Q format
as a guide.
Be prepared to defend your ideas in front of a group Provide all the references and intext citations Email submission and upload on the internet: 2 days before the class Email id: [email protected]