Chapter 4: Recognizing New Opportunities Flashcards
3 Characteristics of Business Opportunities
- Potential Economic Value
- Novelty or Newness
- Perceived Desirability
(willing to pay $)
Idea
Before any opportunity, there is an idea
Should have: Novelty, desirability, and value
Connection between entrepreneurial mindset and ideas
EM gives entrepreneurs confidence to develop ideas and build opportunities.
What are the key strategies to generate ideas?
- Scanning: For new opps
- Connecting: Different concepts to create
- Lateral Thinking:
Creative approaches to solve problems - Imagining: Dropping constraints to create unrealistic states
- Observing: Shifting attention outward
- Collaborating: Brainstorm as a group to build on each other’s ideas
What are the four pathways to opportunity identification?
- To Find Pathway
Opportunities are waiting to be found. Clear problem. Common. - The Search Pathway
Consider hobbies and passions - The Effectuate Pathway
Creating opps based on fit (skills, knowledge, abilities) - Design Pathway
Most value-creating. Discover unmet needs (complex)
What does IDEATE stand for?
I - Identify
D - Discover
E - Enhance
A - Anticipate
T - Target
E - Evaluate
Explain the “Identify” component of the IDEATE method
- Find migraine headache problems (MMPs)
- Understand underlying reasons
- Improve existing solutions
(Observation and experience)
Explain the “Discover” component of the IDEATE method
- Discover potential solutions to the identified need/problem (brainstorming, focus groups)
- Think about opportunities elsewhere
Explain the “Enhance” component of the IDEATE method
- Innovate existing products/services
- SCAMPER technique
Explain the “Anticipate” component of the IDEATE method
- Look at unknown future, anticipate changes then create new ideas/opportunities
- Social/Demographic, Technological, Political or Regulatory, Market/Industry
Explain the “Target” component of the IDEATE method
- Define your target market
- Identify MHPs of target market then create solution
Explain the “Evaluate” component of the IDEATE method
- Reduce ideas to most viable
- Work on ideas that have
most potential - Differentiation
First-Person Opportunities
Problems or challenges that you take personal ownership of solving rather than just observing from a distance
Example: How might we design an app that helps students stay focused?
Third-Person Opportunities
Problems or challenges observed from an outside perspective, without personal involvement in finding a solution. Convert to first-person in target and evaluation steps.
Example: Students find it hard to stay focused while studying.
Nascent Entrepreneur
Someone who is in the early stages of starting a business but hasn’t fully launched it yet.
