From Opportunity to Enterprise
The New Business Proposition E n t r I e n p n r Means-Ends New Value o Resources and Customers e Framework Equation v Organization Benefits n a e t u I r o s n h i p
How the Entrepreneur C ty Creativity Combines R Rearranges/Reverses E Enhances/Enlarges A Adapts/Adopts T Transforms/Modifies E Eliminates New S Substitutes Value Proposi- tion?
Combine What ideas can be combined? Can we combine purposes? How about an assortment? How about a blend, an alloy, an ensemble? Combine units? What other articles could be merged with this? How could we package a combination? What can be combined to multiply possible uses? What materials could we combine? Combine appeals?
Rearrange/Reverse What other arrangement can be better? Interchange components? Other pattern? Other layout? Other sequence? Change the order? Transpose cause and effect? Change place? Change schedule?
Rearrange/Reverse cont Can I transpose positive and negative? What are the opposites? What are the negatives? Should I turn it around? Up instead of down? Down instead of up? Consider it backwards? Reverse roles? Do the unexpected?
Eliminate What if this were smaller? What should I omit? Should I divide it? Split it up? Separate into different parts? Understate? Streamline? Miniatuarize? Condense? Compact? Subtract? Delete? Can the rules be eliminated? What’s not necessary?
Adapt What else is like this? What other idea does this suggest? Does the past offer a parallel? What could I copy? What other process could be adapted? What different contexts can I put my concept in? What ideas outside my field can I incorporate?
Adopt/Put to Other Uses What else can this be used for? Are there new ways to use it as it is? Other uses if modified? What else could be made from this? Other extensions? Other markets?
Transform/Modify How can this be altered for better? What can be modified? Is there a new twist? Change meaning, colour, motion, sound, odour, form, shape? Change name? Can the package be combined with the form?
Enhance/Enlarge/Magnify What can be magnified, made larger or extended? What can be exaggerated? Overstated? What can be added? More time? Stronger? Higher? Longer? How about greater frequency? Extra features? What can add extra value? What can be duplicated? How could I carry it to a dramatic extreme?
Substitute What can be substituted? Who else? What else? Can the rules be changed? Other ingredient? Other material? Other process? Other Procedure? Other power? Other place? Other approach? What else instead? What other parts instead of this?
Combine: MT908 Stainless steel tool Size of a credit card 11 useful functions A must-have for the camper or backpacker Product Description This credit card-size multi-function survival tool includes a can opener, knife edge, screwdriver, ruler, cap opener, 4-position wrench, butterfly screw wrench, saw blade, direction ancillary wrench, 2-position wrench, and a keychain hole- comes with a pouch
Combine ……
Reversing Compressed air Vacuum cleaner
Rearrange
Eliminate
Adapt HumaPen(R) MEMOIR(TM), world's first reusable insulin pen with memory Available by prescription MEMOIR tracks the date, time and amount of the last 16 doses, including the priming dose, a function that may help simplify the daily process of diabetes management Its writing pen design enables the potential for more discreet insulin injections in public
Modify and Adopt Jacuzzi Using their knowledge of hydraulics acquired in the six years of building planes, they started making pumps for deep wells and revolutionised the Californian orange-growing industry by providing vastly- It was a short step from improved means of irrigation. there to making a bath with Candido had a son — Kenneth — built-in pumps, and from who suffered from rheumatoid there to adding heaters and arthritis and who needed filters. hydrotherapy treatment in hospital. The child was in great pain most of the time, but in 1948, his father modified one of the company’s agricultural pumps to swirl the water in his bath and the resulting whirlpool relieved the child’s discomfort .
Transform and Simplify Kalnirnay Marathi Home Calmanac Sales: 15,115,173
Enlarge and Magnify
Substitute
Beyond the Horizon A critical ability for a successful entrepreneur is to make appropriate predictions regarding the uncertain future Discovery of new resource New consumer desires New technological opportunities Correctly anticipate consumer preferences and efficiently use resources to meet these preferences The goal of an entrepreneur is to know the consumer’s future wants Before the consumer knows them
Entrepreneurial Process Leading to New Entreprise Searching Tasks Task 1: Conceive a unique idea for a business Task 2: Identify market opportunities for a new business Planning Tasks Task 3: Plan for a new enterprise Task 3: Assess the feasibility Marshalling Tasks Task 5: Raise money to start a business Task 6: Convince others to invest in your business Task 7. Convince others to work for you in your new business Implementing Tasks Task 8: Manage a small business Task 9: Manage rapid growth Successful New Venture
Feasibility Analysis Situation : Uncertain Resources : Inadequate Time to Complete : Unpredictable
What is Feasibility Analysis? The process of determining whether a business idea is viable Preliminary evaluation of a business idea conducted for the purpose of determining whether the idea is worth pursuing Takes the guesswork (to a certain degree) out of a business launch and provides an entrepreneur with a more secure notion that a business idea is feasible or viable
When to Conduct a Feasibility Analysis Timing of Feasibility Analysis The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business The objective is to evaluate the opportunity before a lot of resources are spent on pursuing the idea Elements of a Properly Conducted Feasibility Analysis A properly conducted feasibility analysis includes four separate elements
Elements of Feasibility Analysis Product/ Service feasibility Industry/ Spending the Market time and resources Proposed feasibility necessary to move Business forward with the Venture Organizational business opportunity depends on… feasibility Financial feasibility
Product/ Service Feasibility Analysis Assessment of the overall appeal and acceptance of the product or service being proposed The idea is that before the new venture rushes a product or service into development it should be confident that the product or service is what its prospective customers want The two components of a product/ service feasibility analysis are: Concept testing Usability testing
Product/Service Feasibility Three Purposes of Conducting a Concept Test Purpose How it is accomplished This can be accomplished via personal interviews, phone Validate the underlying interviews, and focus groups and simply by watching premises of a product people perform relevant tasks. or service idea A firm may show a product idea to a prospective customer, get feedback, and tweak the idea. Then, in an iterative Help develop an idea manner, they’ll show the idea to more potential customers, get feedback and tweak the idea some more, and so on. Some type of buying intention question appears in almost Estimate the potential every concept test, usually in the form of a survey market share the product questionnaire. or service might command
Key Questions to Answer Prior to Writing a Concept Who is my target audience? What characteristics differentiate my target audience from the general population? What problem does my product solve? How does my product or service provide their desired solution? What differentiates my product from other potential solutions? What reassurances do they need that my product or service will solve their problem? What price will they be willing to pay?
Writing a Winning Concept Insight: To be successful, a concept must clearly state the consumer insight (need) Point of Difference: How the product will meet the need uniquely Reasons to Believe: Provide convincing proof Rational Benefits: Appeal to logic in line with current situation Emotional Benefit: Make customer feel happy and delighted
Sell Water? Insight: People are suffering from ill health : both sons had jaundice Point of Difference: Water with maximum purity as against mere filtration Reasons to Believe: Health is top priority Rational Benefits: Pure, safe drinking water Emotional Benefit: I will feel good about myself knowing that I am taking care of my family
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