From Idea to Opportunity : Approach to New Product Development
Idea and Opportunity A form, look or appearance of a thing as opposed to its reality A conception existing in the mind A thought, a mental image, a notion An opinion, view or belief Opportunity Defined An opportunity is a favorable set of circumstances that creates the need for a new product, service or business idea Ideas without Action Have No Economic Value
From Idea to Business Technological change Potential opportunity New product or service New raw material New market New method of production New way of organizing Superior value proposition Creation of a new business
Converting Ideas into Opportunity Form of the Techno- Example of a Reasoning Opportunity logical Business Idea in Superior Value Change Response to the Proposition Opportunity New product or Internal Automobile The internal service combustion combustion engine is engine used to power automobiles New raw Oil Producing Oil is refined into material gasoline gasoline to power vehicle New market Refrigeration Refrigerated ship The refrigerated ship allows farmers in one country to sell their produce in another country
Converting Ideas into Opportunity Form of the Techno- Example of a Reasoning Opportunity logical Business Idea in Superior Value Change Response to the Proposition Opportunity New product or Internal Automobile The internal service combustion combustion engine is engine used to power automobiles New raw Oil Producing Oil is refined into material gasoline gasoline to power vehicle New market Refrigeration Refrigerated ship The refrigerated ship allows farmers in one country to sell their produce in another country
Converting Ideas into Opportunity Form of the Technological Example of a Reasoning Opportunity Change Business Idea in Superior Value Response to the Proposition Opportunity New method Computer Computer-aided design The computer of production allows designers to make products without building physical prototypes New way of Internet Online book sales The internet allows organizing buying and selling products without retail outlets
Converting Ideas into Opportunity Form of the Technological Example of a Reasoning Opportunity Change Business Idea in Superior Value Response to the Proposition Opportunity New method Computer Computer-aided design The computer of production allows designers to make products without building physical prototypes New way of Internet Online book sales The internet allows organizing buying and selling products without retail outlets
What’s the Form of the Techno- Example of a Reasoning Connection? Opportunity logical Business Idea in Superior Value Change Response to the Proposition Opportunity Perfect Eyesight Throwing Light HiFi Music Retail Revolution Intersection of Laser technology with healthcare, entertainment and commercial sectors
Entrepreneurial Opportunity A situation in which one can create a Superior Value Proposition through New Means-Ends Framework Content Creation Consumption
Means-Ends Framework Product Old Means Commodity Improvement Process Breakthrough New Means Improvement Innovation
Means-Ends Framework Ends Old New Existing New features Current New versions Old Means 5 S Breakthrough New 6 sigma Radical
Means-Ends Framework:Music Industry Product Commodity Old Means Improvement CDs AudioBooks Process Breakthrough New Means Improvement Innovation Polymers/Layers iTunes
Means-Ends Framework Old Means New Means
UFO Moviez promised to be a game- changer with its use of satellite technology to transmit movies to millions in theatre complexes — even in Tier-II and Tier-III towns. This helped not only to cut down print costs, but also fought against piracy while increasing office collections.
Creating a New Value Equation Reduce What factors should be reduced well below the industry standard ? Eliminate Create What factors What factors should be should be eliminated that created that New Value the industry the industry Equation has taken for has never granted ? offered ? What factors should be raised well beyond the industry standards ? Raise
Technology-Driven Businesses Applications Specific business opportunity Customer Segment Technologies and Competencies
Where Did the Ideas for Opportunity Come From? 23% It developed from another idea I was considering 56% My experience in a particular industry or market 30% Thinking about solving a particular problem 42% Discussions with my family and friends 31% Discussions with potential or existing customers Discussions with potential or existing suppliers 16% Discussion with potential or existing 8% investors/lenders 29% Knowledge or expertise with technology 9% Other sources Percent of responses 10% 20% 30% 40%50% 60% 0%
Taking Idea Forward Situation Problems and desires Diverse ideas Connection Application Benefit Value equation
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
Characteristics of an Opportunity Creating value Not necessarily low cost Opportunity is not always (rarely?) found in well- documented growth markets Opportunities are not necessarily the result of inventions by the entrepreneur Not everyone pursues opportunities, even if they are obvious
Vinod Khosla : Idea, Problem, Opportunity and Business To me, any big problem is a big opportunity because if you think about it, no problem, no solution, no company It's very simple Every big problem is a big opportunity If you don't have a big problem, you don't have a big opportunity Nobody will pay you to solve a non-problem
Nine Categories of Opportunity Increasing the value of a product/service New applications of existing means of technology Creating mass markets New product or Customization for individuals service New raw material Increasing reach New market Managing the supply chain New method of Convergence of change production Process innovation New way of Increase the scale of the firm organizing
The Entrepreneur C Combines R Rearranges/Reverses E Enhances/Enlarges A Adapts/Adopts T Transforms/Modifies E Eliminates S Substitutes
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-improved means of It was a short step from there irrigation. to making a bath with built-in Candido had a son — Kenneth — who pumps, and from there to suffered from rheumatoid arthritis and adding heaters and filters. who needed 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
The New Product Concept Need-form concepts Form Need New Products Form- Need- technology technology concept concepts Technology
Elements of the Product The core cluster of tangible and intangible elements Facilitating Facilitating A separate cluster of Products Services tangible elements, the facilitating products A separate cluster of The Core intangible elements, Cluster the facilitating services
Shot on iPhone 6S
Product Definition What will it do ? Who will buy it ? What will be its rough dimensions ? What are the major competitors ? What functional features should it have ? What are the psychological descriptors of the product ? What is its context ?
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