Idea Generation & Competitive Advantage - Paula Jensen

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18 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

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Paula Jensen

Industrial Engineering Instructor

ENGM 625

Technology Ventures
: From Idea to Enterprise

Chapter 1: Summary

There are risks and costs to a program of
action. But they are far less than the long
-
range
risks and costs of comfortable inaction.



John F. Kennedy

What drives global entrepreneurship?

The entrepreneur provides the creative force in order for
capitalism (free enterprise) to work. Entrepreneurs strive to
make a difference in our world and contribute to its
betterment. They are also motivated by achievement,
independence, and the accumulation of wealth.

Summary

Economic Growth & the Technology Entrepreneur

1

Chapter 1: Figure 1.1
-

Finding the Right Opportunity


Timely


Solvable


Important


Profitable


Favorable Context


Like to do the tasks


Like the challenge


Committed to do what is
necessary


Skilled at the needed

tasks

The

Sweet

Spot

An Attractive

Opportunity

Interests,
Passions,

Commitment

Capabilities & Skills

Finding the Right

Opportunity

Economic Growth & the Technology Entrepreneur

1

Technology Ventures
: From Idea to Enterprise

Chapter 1: Figure 1.5

Waves of innovation
throughout history

Economic Growth & the Technology Entrepreneur

1

Technology Ventures
: From Idea to Enterprise

Chapter 1: concept

Dynamic Capitalism

is the process of wealth creation
characterized by the dynamics of new, creative firms
forming and growing and old, large firms declining
and failing.


Creative Destruction

is the entrepreneurial activity of
destroying old models and creating new models of
doing business.

Economic Growth & the Technology Entrepreneur

1

Technology Ventures
: From Idea to Enterprise

Technology Ventures
: From Idea to Enterprise

Chapter 2: Summary

In the field of observation, chance only favors minds which
are prepared.




Louis Pasteur

How can an entrepreneur identify and select a valuable
opportunity?

The choice of an opportunity and the decision to act is a
critical juncture in the life of an entrepreneur. With the
decision to act, the entrepreneur prepares a business
summary for the venture that is used to test the new venture
with potential investors, employees, and customers.

Summary

Opportunity and the Concept Summary

2

Chapter 2: Figure 2.1

Identifying the Opportunity
Determining the Entrepreneur’s
capabilities and interests
Evaluating the opportunity
Writing a summary of the concept
Testing the summary and the
concept with potential customers
and investors
Deciding to act on the opportunity
or look elsewhere
Six steps to

acting as an

entrepreneur

Opportunity and the Concept Summary

2

Technology Ventures
: From Idea to Enterprise


Increase value of a product or service


New applications of existing technologies


Creating mass markets


Customization for individuals


Increasing reach


Managing the supply chain


Process innovation


Increasing the scale of the firm


Capabilities:

is it consistent with mission,
knowledge base ?


Novelty:

does product have sufficient
differentiating qualities that it creates value for the
customer ?


Resources:

are the available resources sufficient
for the venture ?


Return:

is expected return consistent with the
risk of the venture ?


Commitment:

is the entrepreneurial team
sufficiently passionate about the venture that they
can commit ?

Chapter 2: concept

Types of Opportunity
:

Opportunity Pull
:


the size of the opportunity attracts opportunity
seekers
to attempt to exploit it.

Example
:


A drug to mitigate the effect of Alzheimer’s disease.

Opportunity and the Concept Summary

2

Technology Ventures
: From Idea to Enterprise

Chapter 2: concept

Types of Opportunity
:

Capability Push
:


a new technology or capability causes a search for

new applications.

Example
:


Digital Television

Opportunity and the Concept Summary

2

Technology Ventures
: From Idea to Enterprise

Team:


accept risk


knowledge base


commitment

Opportunity:


novelty


potential market


good risk vs reward

Context:


timeliness


industry conditions


market conditions

Resources:


financial


processes


human

100%

50%

Team:


accept risk


knowledge base


commitment

Opportunity:


novelty


potential market


good risk vs reward

Context:


timeliness


industry conditions


market conditions

Resources:


financial


processes


human

100%

50%

Holiday Inn

Team:


accept risk


knowledge base


commitment

Opportunity:


novelty


potential market


good risk vs reward

Context:


timeliness


industry conditions


market conditions

Resources:


financial


processes


human

100%

50%

Electric


Auto


Microtrends

vs

MegaTrends


MicroTrends



Mark J. Penn
--
Pollster


Single Women Head of House Record


Soccer Moms decrease


Women majority of Car buyers


Men majority of Truck Buyers


Majority of purchasing power is 49 plus



Micro Trends


Mark Penn YouTube Video


Consumers


Existing Companies


can we improve existing products


Distribution Channels


distributors keenly aware of market trends


Federal Government


Patent Office (Official Gazette)


Regulations (OSHA)


Research & Development


Ken Olsen


Focus Groups


8
-
12 market group conceptualize new product
need


Brainstorming


structured


central question is stated


each member gives idea in turn (no criticism)


ideas written on flip chart


ideas generated until all members pass


review written list for clarity and discard duplicates


unstructured


Variations to Brainstorming


visual brainstorming


analogies/free
-
word association


6
-
3
-
5 method


6 people 5 minutes 3 ideas


pass sheets of 3 ideas to the right


5 minutes 3 ideas which build on first 3


complete 6 rotations (or as many as there are
members)


Nominal Group Technique (NGT)


generate list of ideas (brainstorm)


each member rank orders ideas highest to lowest


idea with highest total score gets worked on first


Variations


One half plus one; eliminate half at a time until arrive at a
manageable number


Multivoting; rate each idea on scale of 1 to 100


Problem Inventory Analysis


easier to relate to known products and criticize to
arrive at a new product idea


Checklist Method


modify, adapt, put to other uses, substitute, . . .


Free Association


similar to brainstorming
-

create chain of ideas


Forced Relationships


Isolate elements of a problem


Find relationships between elements


Record relationships in an orderly form


Analyze relationships to find ideas or patterns


Develop new ideas from patterns


Value Analysis


maximize value by constructively skimping


Attribute Listing


list attributes of a problem


e.g. SD has little economic development, what
types of industry/products/services do well here


Matrix Charting


similar to house of quality


Big
-
Dream Approach


ideas should be conceptualized without
constraints


Parameter Analysis


2 aspects, parameter identification & creative
synthesis

Technology

Observation


Need

Analysis

Parameter

identification

Creative

synthesis

Realization

Market Need

New Product

t

Introduction Growth Maturity Decline

t

Introduction Growth Maturity Decline

Idea Concept Develop Test


Market

EVALUATE


Evaluation of market demand is most
important criterion of a proposed new
product idea


Competing producers, prices, and
marketing strategies should be evaluated


New product compatible with existing
management


New product should contribute to
company’s financial structure


New product compatible with existing
facilities


Idea Stage


each new idea expressed in terms of values &
benefits


consumers presented with cluster of ideas
determine which should be pursued


Table 4.4 & 4.5


Concept Stage


refined product idea tested to determine
consumer acceptance


conversational interview
-

consumers respond to
statements that reflect product attributes, quality,
reliability, price, promotion, distribution


Product Development Stage


consumer reaction to physical product is
determined


consumer panel tracks use of product


consumer panel records virtues, deficiencies of
product and competing products


Test Marketing Stage


New Coke

Technology Ventures
: From Idea to Enterprise

Chapter 3: Summary

Success in any enterprise requires the
right product, methods, and workers, and
each must complement the others.



Joseph Burger

How do successful entrepreneurs create a compelling business design for
their new ventures?

To design a new business, the entrepreneur must cogently and clearly
describe the customers and their needs and how the new venture will
satisfy those needs.

Summary

Vision and the Business Model

3


Create a vision


Mission
statement


State the value proposition


Create the business model


Describe the core competencies &
competitive advantage


Act


Clarity


Consistency


Uniqueness


Purposeful



We strive to preserve and improve life through the
innovation of biomedical devices while supporting,
training, and inspiring our employees so that
individual ability and creativity is leased and
rewarded. Our goal is to be the leader in our
industry by 2006 and be widely known throughout
the world.

Chapter 3: Table 3.3
-

Elements of a Mission Statement

A
mission statement

is a description of the
course of action to implement the vision.

• Core Values

• Customers and/or Stakeholders

• Products

• Competitive Advantage

• Values Provided to Customer

• Markets or Industry

Possible elements of a mission statement

Vision and the Business Model

3

Technology Ventures
: From Idea to Enterprise

Ex. Our mission is to design and
manufacture electronic devices that
serve the needs of the aerospace
industry on a timely basis and at
reasonable prices.

Chapter 3: Concept

The
Value Proposition
defines the company to
the customer.

Vision and the Business Model

3

Technology Ventures
: From Idea to Enterprise

Chapter 3: Table 3.6

The
Value Proposition
defines the company to
the customer.

Five values offered to a customer


1.
Product
:



Performance
, quality, features, brand, selection,
search
, easy to use,
safe

2.
Price
:





Fair
, visible, consistent, and reasonable

3.
Access
:



Convenient
, location, nearby, at
-
hand, easy to
find, in
a reasonable
time

4.
Service
:



Ordering
, delivery, return, check
-
out

5.
Experience
:


Emotional
, respect, ambiance, fun, intimacy,



relationships, community

Vision and the Business Model

3

Technology Ventures
: From Idea to Enterprise

Chapter 3: concept

The
Unique Selling Proposition
is a short
version of firm’s value proposition.

Example
:




Intel has a
USP
:






The best product with great service.

Example of a value proposition
:


Intel offers product as their primary value and
service as their secondary value.

Vision and the Business Model

3

Technology Ventures
: From Idea to Enterprise

Chapter 3: Table 3.8



Customer Selection

Who i
s the customer?

Is our offering relevant to this customer?



Value Proposition

What are the unique benefits?



Differentiation and Control

How do we protect our cash flow and
relationships?

Do we have a sustainable competitive advantage?



Scope of Product an
d
Activities

What is the scope of our product activities?

What activities do we do and which are
outsourced?



Organizational Design

What is the organizational architecture of the
firm?



Value Capture for Profit

How does the firm capture some of the total v
alue
for profit?

How does the firm protect this profitability?



Value for Talent

Why will good people choose to work here?

How will we leverage their talent?


Elements of A Business Model

Vision and the Business Model

3

Technology Ventures
: From Idea to Enterprise

Chapter 3: Table 3.9



Customer Selection:
High Relevance


Four Segments: Corporate, Government, Education, Consumer.



Value Proposition:
Unique Benefits



A customized computer at a good price with great service readily

accessible via phone

or the Internet.



Differentiation and control:
Sustainable competitive advantage



Customized products via a direct sales channel on the phone or Internet with strong

service and customer relationships.



Scope of Product and Activities



Desktop, laptop, and servers.


Strong supply chain management.



Organizational Design



Divisional organization for each customer segment.



Value Capture for Profit


Opportunities for cross
-
sell and up
-
sell. Avoid price as the key value and focus on

service and accessibility.



Value for Talent: Learn, Grow, Prosper



Training, Learning, and Career Opportunities.

Dell Computer Business Model

Vision and the Business Model

3

Technology Ventures
: From Idea to Enterprise

Product
Price
Access
Service
Experience
Product
Wal-Mart
Amazon
Honda
Disney World
Price
Target
Holiday Inn
Olive Garden
Access
Barnes & Noble
Priceline
Dell
Starbucks
Service
Toyota
SW Airlines
McDonald's
Experience
Mercedes
AOL
Nordstrom
Primary Value
Secondary Value

Customer selection


Value proposition


Differentiation


Scope of product/activities


Organizational design


Value capture for profit


Value for talent


Customer


Corp, Govt, Ed,

Indiv


Value



customized computer


Differentiation

direct sales, service


Scope



desktops, laptops, servers


Organization


divisional by customer
seg


Value capture


focus on service, access


Value for talent

career opportunities

American
SW Airlines
Customer
World traveler
U.S. Traveler
Value
Product / Accessibility
Price / Service
Differentiation
Wide scope - goes
almost anywhere
limited point-to-point
flights
Scope
Broad: connects
everywhere
Narrow:
Organization
Hub and Spoke
High fixed cost
Point-to-point
Lower, flexible costs
Value Capture
Dominate hub city
high occupancy
Value Talent
high pilot salaries
stock options

Core competency of Google is the design
and operation of a software search engine.
It is the dominant online search engine.
While starting as a search tool for finding
information on diverse subjects, it has also
become a tool for people searching for an
online site selling a product of interest.


High quality


Toyota


Service



Starbucks


Price



Wal
-
Mart


Mrkt Segment


Dell


Product Breadth

Amazon


Innovation


Medtronic


Intellectual Prop.

MicroSoft