Chapter 3 Flashcards
Opportunity
generate value through unique, novel or desirable p/s, processes not previously exploited
Opportunity Central Characteristics (3)
economic value, novelty/newness, desirability
Forms of value
economic/financial
social value
environmental/ecological value
Market Value Assumption
enough people in market to buy product or service
Jazmine valencia
What business did she start?
What type of approach?
What was her lesson?
- business to take advantage of market/social media for music to grow
- artist-focused marketing approach
- replace failure with lesson -> people less afraid of making mistakes and more cable of learning lessons
Opportunities to idea relationship
Not all idea are opportunities, only those most effective probable and efficient are put into action
Novelty
new, original and unused
Innovation and example
innovation if product or service is high novel, useful and valuable example is smartphone
Invention vs innovation
difference is in demand and usability. If invention succeeds in market, it becomes innovation
Invention and example
invention if product or service is high novel but not useful/valuable etc new ideas or failed start-ups
Improvement and example
improvement if product or service is not novel but valuable. Example: folded sunglasses, serrated ice-cream scoops
irrelevant and example
irrelevant if product is not novel and not valuable/useable etc pepsi drinks, sandwich mix
Idea Generation (7 strategies)
Analytical
Search
Relationship Seeking
Development
Interpersonal
Habit-breaking
imagination based
Analytical (more successful if carried out before work)
reasoning/research, logical, research based. Break problem into parts to generate ideas about innovation or product/service
Imagination Based and example
think out of the box and come up with something new. create unrealistic states or fantasies. Example: Gillette team think as human hairs.
Search
What I have experienced/learned before that can help me. Retrieve memories to make connections based on experience to problem at hand
Relationship Seeking
Connecting two things that are seemingly not connected to make unnoticed connections
Development
enhancing and modifying existing ideas to create alternatives/possibilities
Interpersonal
group members to generate ideas & build on each other’s ideas/interactions
Habit-Breaking
try new ideas or business functions, break habits that disrupt work or continue to fail. Break unproductive/procrastination
Favourable Opportunities(4)
Valuable, rare, fit, costly to imitate
Valuable
demand in market, must add value to society or value chain
Rare
Doesn’t exist regularly in business market
Fit
Aligns with skills and knowledge of entrepreneur or founding team
Costly to imitate
patents or trademark protection. Companies cannot easily copy, increase barriers. etc apple is entrepreneurial and Samsung is imitator
4 Pathways
Find, Search, Effectuate, Design
Find Pathway
opportunities exist independent of entrepreneurs and waiting to be found
Search Pathway
entrepreneurs are not quite sure what type of business they want to start. Engage in active search to discover new opportunities
Effectuate
Using what you have (skills, ability, knowledge) to uncover opportunity that fits you
Design Pathway
entrepreneur is focusing on unmet needs of customers, specifically existing needs to uncover ideas
