BizTEC13 Workshop 1: Idea Management
Download as PPT, PDF0 likes434 views
The document summarizes a workshop on idea management and evaluating business opportunities. It discusses: 1) The entrepreneurial process including opportunity discovery, evaluation, assembling resources, and exploiting opportunities. 2) Criteria for evaluating opportunities such as unique value proposition, revenue model, industry analysis, risks, and team capabilities. 3) Tools for industry and idea evaluation including market research, competitor analysis, and SWOT analysis. Examples are provided to demonstrate how to apply these evaluation frameworks.
BizTEC13 Workshop 1: Idea Management
- 1. Workshop 1: Idea Management The Entrepreneurial Process & How to Evaluate my Business Idea Sharon Itzkovitch – Technion 1
- 2. Agenda • The high-tech entrepreneurial process • Criteria for opportunity evaluation • Tools for evaluating industry and idea • Innovating in existing markets
- 4. The Entrepreneurial Process in High Tech Business Plan Opportunity Opportunity Discovery Performance: Source New • Exit value Expected Assembling Opportunity • Sales/Growth Technology/ value resources exploitation • Profits Innovation Opportunity Evaluation The entrepreneurial team
- 5. Sources of Opportunity Opportunity Sources Discovery Opportunities 1. Technology Changes/Inventions 2. In-efficiencies and incongruity between reality as it is and as it ought to be 3. Changes in the way we live, learn, work, etc 4. Demographic trends 5. Market changes-value chain disruption, deregulation
- 6. Technology as a Source of Opportunity Incremental Radical - Extension of existing - New technology creates product new market - Demand-side market / - Supply-side market / customer pull technology push
- 7. Opportunity Opportunity An opportunity Sources Discovery Can you shortly describe: • The product or service you want to offer • Your customers (in very specific terms) • The unique value proposition to these customers- something that will make a difference to them • Why are you better than competitors
- 8. The Entrepreneurial Process in High Tech Business Plan • Sufficient expected value to go for it and to Opportunity Opportunity recruit resources Source Discovery • Sufficient expected Performance: New capability to execute • Exit value Technology/ Expected Assembling Opportunity • Sales/Growth Innovation value resources exploitation • Profits Opportunity Evaluation The entrepreneurial team
- 9. Issues Facing Young Entrepreneurs Opportunity Discovery • Industry domain know-how • Understanding customer’s need • Specific expertise in at least one area Opportunity Evaluation • Industry domain expertise • Understanding the process from a technology to a manufacturable and sellable product • Understanding market access and its costs
- 10. Assembling Resources Expected Assembling value resources • Establishing company as legal entity • Recruiting personnel • Raising money • Renting a place • Selecting service providers • Choosing partners
- 11. The Entrepreneurial Team Founder Teams are preferable: • Complementary skills and capabilities • Emotional support • Wider network • Higher rate of success, therefore investors like teams However, be ready for conflicts in team: • Make a founder’s agreement • Have a trusted third party • Remember- conflicts could be good for the venture Assembling resources The entrepreneurial team
- 12. Opportunity Exploitation Performance: Opportunity • Exit value exploitation • Sales/Growth • An iterative process with continuous • Profits adaptation of product/service offering and business model • Balancing fire fighting and long term planning • In parallel: build marketing & sales; R&D; HR policies; build alliances and do fund raising • Hard work, persistency, self-confidence
- 13. Criteria for Opportunity Evaluation 1. Unique Value proposition: Do we fulfill and important customer need? Who has this need- who is our target market? Do we do it in an unique way? How will we differentiate our company from what is already out there?
- 14. Criteria for Opportunity Evaluation 2. Revenue Model: How are we going to make money? Value Appropriated Examples of Delta between Value created and Value appropriated: -Search engines -Music downloads -Some medical treatments Value Created
- 15. Criteria for Opportunity Evaluation 3. Are we in the right industry/ market? Is the industry growing / mature? How big is your market in dollars (market size) ? How fast is it growing (market growth)? How many competitors do you have and of what quality are they? What are the barriers to entry?
- 16. Industry Life Cycles and Business Opportunities Blue Oceans: -New market space; value innovation -Starbucks, SW Airlines Market size Mini TV’S TV in mobile phone • Fast growth • Fragmented markets • Many players Electric cars • No standards Time
- 17. Criteria for Opportunity Evaluation 4. Do we know the risks and the time and money needed to become profitable? Time, money and risk to product (Pharma versus Internet) Time, money and risk to market Time , money and risk to money
- 18. Criteria for opportunity evaluation 5. Can we as team do it? - Self confidence essential - Over confidence often necessary otherwise you would never start but listen to team members and advisors - If you do not passionately believe in your idea and capabilities nobody else will, but if you are the only one you may have a problem…
- 19. Example(1): Opportunity Evaluation Social traffic and navigation app • Customer value proposition? • Revenue Model ? • Right Industry ? • Risks and time to money? • Can they do it ?
- 20. Example(2): Opportunity Evaluation Glasses for developing countries The amount of liquid in lens can be adjusted with a pump. Universal Glasses developed by Prof. Joshua Silver , nuclear scientist of Oxford • Customer value proposition? • Revenue Model ? • Right industry ? • Risks and time to money ? • Can he do it ?
- 21. Example(3): Opportunity Evaluation www.israeltoremet.org To connect between small donors and NGO’s in Israel. Entrepreneur: Yonatan Ben Dor Opportunity : 27,000 NGO’s in Israel looking for donations • Customer value proposition? • Revenue model ? • Right business ? • Risks and time to money ? • Can he do it?
- 22. Tools for Evaluating Industry and Idea מחקר שוק- מטרות הכרת הענף, המתחרים ושרשרת הערך זיהוי לקוחות והבנת הדרישות שלהם הערכת הביקוש הנוכחי ופוטנציאל השוק זיהוי הזדמנויות וסיכונים תחזיות של מכירות ונתחי שוק
- 23. מחקר שוק- מה בודקים? הענף והתחרות: הכרת המתחרים כולל פתרונות / טכנולוגיות חלופיות שחקנים ומוצרים לאורך שרשרת הערך תחרות פוטנציאלית מתעשיות אחרות היקף וגודל השוק זיהוי פלחי לקוחות פתיחות / התנגדויות בשוק הצורך והכאב גישה ללקוחות דרישות מקבלי ההחלטות בארגון רגישות למחיר
- 24. סקר שוק- מקורות בעלות נמוכה לקוחות פוטנציאליים תערוכות וכנסים אינטרנט: ... Crunchbase; patent search; Google פרסומים מקצועיים חוקרים ומובילי דעה בתחום מקורות ממשלתיים: משרד התמ"ת, מכון היצוא... מחקרי שוק שנעשו ע"י חברות מחקר )כגון ( IDC , D&B
- 25. Industry Analysis Macroeconomic Political development Situation Threat of New Potential Entrants “The Five Forces” Changing Changes in Business Customers’ Practices Industry Customers Competitors Bargaining Power Bargaining Power of Suppliers of Buyers Rivalry Regulation Demographic/ De-regulation Psychographic Re-regulation Changes Threat of Substitutes Technological Ecological Change Change Adapted from Porter, Michael (1980), Competitive Strategy, Free Press
- 26. Competitors Analysis ?Who are your direct and indirect competitors Competitor’s offer to customers Competitor’s strategy How will you be different than competitors? Competitor’s assumptions How will the competitor about the industry respond to your initiatives? Competitor’s key strengths and weaknesses
- 27. Presenting the Competitive Analysis 1. Simple Yes-No Value DrsFosterSmith. PetSmart.com PetMeds.com com Products on Yes Yes Yes home page Retail store Yes No No locator Yes Yes Yes Expedited shipping options Non-pet-type No Yes Yes categories
- 28. Presenting the Competitive Analysis 2. Competitive Array Key industry success weight Comp #1 Comp#2 Us factors Product Innovation Extensive distribution Customer service Price Total Score
- 29. Presenting the Competitive Analysis 3. Two by Two
- 30. Analysis S.W.O.T ניתוח הסביבה חוזקות strength S הפנימית חולשות weaknesses W ניתוח הסביבה הזדמנויות opportunities O החיצונית איומים threats T
- 31. Analysis S.W.O.T - Strengths - Weaknesses לדוגמא: לדוגמא: - טכנולוגיה מתקדמת - חוסר במשאבים כספיים - פטנט - חוסר ניסיון - מוצר פשוט לשימוש, יתרונות ברורים - תאימות נמוכה - צוות יועצים )(advisory board - לא ניתן להתנסות במוצר לפני הרכישה - Opportunities -Threats לדוגמא: לדוגמא: - תחום חם - מתחרה חזק - סטנדרט טכנולוגי חדש - ספק חזק - שינויים רגולטורים - משבר כלכלי
- 32. Questions ?