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Idea Generation & Opportunity Assessment

Idea Generation & Opportunity Assessment

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Idea Generation & Opportunity Assessment

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  1. Idea Generation & Opportunity Assessment Presented by Rich Bendis, CEO Innovation America

  2. Temple Entrepreneurship Temple is: • A national leader in entrepreneurship education and applied learning • Ranked 6th in the U.S. for undergraduate programs by Entrepreneur magazine and the Princeton Review • Cited for excellence in entrepreneurship by Fortune Small Business, and U.S. News and World Report

  3. Characteristics of Successful Entrepreneurs • Passion for the business • Vision and endless ideas • Product/customer focus: Must satisfy customer needs • Persevere through setbacks andfailures • Executional excellence: Translate creativity into action & generate measurable returns

  4. The Power of Entrepreneurial Thinking • What makes a successful entrepreneur? • Seeing opportunity where others don’t • Innovation: better, faster, cheaper, easier • “Fire in the Belly” • Willingness to take risks • Extreme work ethic

  5. Three Key Processes Idea Generation Opportunity Recognition Creativity Increasing Relevance to Founding Venture

  6. Kinds of Intelligence • Analytic intelligence - The ability to analyze and evaluate ideas, solve problems and make decisions • Creative intelligence - Going beyond what is given to generate novel and interesting ideas. • Practical intelligence - The ability that individuals use to find the best fit between themselves and the demands of the environment • Social intelligence - The ability to understand and manage all types of people and to act wisely in human relations • Successful intelligence - The acquisition and use of what you need to know to be successful in a particular environment.

  7. Successful Intelligence Practical Intelligence Analytic Intelligence Successful Intelligence Success Creative Intelligence

  8. Confluence Approach Creativity emerges from a confluence of • Intellectual abilities • Broad, rich knowledge base • Appropriate style of thinking • Personality attributes • Intrinsic, task-focused motivation • Environment supportive of creative ideas

  9. Additional Aspects Active search Entrepreneurial alertness Prior knowledge Social networks Opportunity recognition

  10. Pattern Recognition • Seeing links between seemingly unconnected trends, changes, events • Connections form an identifiable pattern

  11. Entrepreneurial Opportunity • Situation in which a person can develop a new business idea that has potential to generate profit

  12. Opportunities from Change Truly valuable entrepreneurial opportunities come from an external change that either: • Makes it possible to do things that had not been done before • Makes it possible to do something in a more valuable way.

  13. Change Leads to Potential • New technology • Political and regulatory shifts • Social and demographic change Potential

  14. Forms of Opportunity Entrepreneurs develop business ideas by: • Developing new products and services • Tapping new markets • Formulating new methods of production • Identifying new raw materials • Developing new ways of organizing processes

  15. Recognizing Opportunities & Generating Ideas • Idea is thought, impression, notion • Opportunity: favorable set of circumstances that create need for product or service. Ex: Jeff Bezos/Amazon • Opportunity has four essential qualities • Attractive • Durable • Timely • Creates/adds value for buyer/user

  16. Recognizing Opportunities & Generating Ideas • Observing/Study Trends • Economic factors • Social factors • Technological Advances • Political Action and regulatory statutes

  17. Recognizing Opportunities & Generating Ideas • Economic Forces • Consumers level of disposable income • Interest rate changes • More women in workforce • Currently: global recession • Social Forces • Both parents working: fast food • People too busy: digital organizers • Life stress: spas, wellness clinics

  18. Recognizing Opportunities & Generating Ideas • Family & work patterns • Aging of the population • Increasing diversity in the workplace • Globalization of industries • Increased focus in health care & fitness • Proliferation of computers & Internet • Increase in numbers of cell phone users • New forms of music & entertainment

  19. Recognizing Opportunities & Generating Ideas • Technological Advances • Cell phones: allows people to be mobile • E-commerce: accommodates busy schedules and working from home/remote locations • Political Action • New laws: help companies comply; ex: SoX • Terrorism: Products & services to protect

  20. Recognizing Opportunities & Generating Ideas Solving a Problem • Observe people’s challenges • Look for problems • Listen to people’s complaints • Think of your own challenges

  21. Recognizing Opportunities & Generating Ideas • Personal characteristics for opportunity recognition • Prior experience in an industry • Entrepreneurial alertness/6th sense • Social networks • Creativity: preparation, incubation, insight, evaluation, elaboration

  22. Small Group Exercise: What Opportunities Exist? • Group should choose a market and identify a BIG PERVASIVE PROBLEM customers face. • Brainstorm some products or services to solve those problems • Share ideas with larger group

  23. Techniques in Generating Ideas • Brainstorming: generate ideas quickly, no analysis or decision making • Enthusiasm, originality, lots of ideas • Freewheeling, lively • No criticism allowed • Session moves quickly • Leapfrogging encouraged

  24. Techniques in Generating Ideas • Focus groups • People selected are familiar with issues • What’s on customers mind • Conducted by trained moderator • Success depends on moderator’s ability to ask questions and keep on track

  25. Techniques in Generating Ideas • Surveys: gathering info from sample of individuals • By phone, mail, online, in person • Random portions of population • Customer Advisory Boards

  26. Feasibility Analysis • The process to determine if a business idea is viable worth pursuing • Product/service feasibility analysis • Industry/market feasibility • Organizational feasibility • Financial feasibility

  27. Product/Service Feasibility Analysis • Concept testing: validate customer interest, desirability & purchase intent • Validate underlying premise • Help develop the idea • Try to estimate sales

  28. Product/Service Feasibility Analysis • New Business Concept Paper - Description of product/service offered - Intended target market - Benefits of product/service - Description of how the product will be positioned versus similar ones in market - Description how the product would be sold or distributed.

  29. Product/Service Feasibility Analysis • Usability Testing: measures product’s ease of use and the user’s perception of the experience using model/prototype

  30. Industry/Market Feasibility Analysis • Industry attractiveness • Market timeliness • Identification of niche market

  31. Industry/Market Feasibility Analysis Industry Attractiveness • Large and growing • Important to the customer • Fairly young rather than older/mature • High rather low operating margins • Not being crowded Primary and secondary research is needed

  32. Industry/Market Feasibility Analysis • Market Timeliness - Improved product = market exists - Breakthrough product: - First mover advantage - Second mover advantage • Identifying a niche market

  33. Organizational Feasibility Analysis • Sufficient management expertise, organizational competence & resources to successfully launch a business - Management ability - Resource sufficiency

  34. Financial Feasibility Analysis • Total start-up cash needed • Financial performance of similar businesses • Overall financial attractiveness of the proposed venture

  35. Evaluating Opportunities: “Quick Screen” • Looks at: • Markets and Margins • Competitive Advantages • Value Realization • Overall Potential • Exercise: Evaluate your group’s idea using the first two screens

  36. Markets and Margins

  37. Competitive Advantages

  38. I know quite certainly that I myself have no special talent; curiosity, obsession and dogged endurance, combined with self-criticism, have brought me to my ideas.- Albert Einstein The air is full of ideas. They are knocking you in the head all the time. You only have to know what you want, then forget it, and go about your business. Suddenly, the idea will come through. It was there all the time. - Henry Ford A mediocre idea that generates enthusiasm will go further than a great idea that inspires no one. - Mary Kay Ash