concepts Flashcards
What is the Entrepreneurial Design Process?
- Problem Definition: Identifying a problem or opportunity to address.
- Ideation: Generating ideas for solutions.
- Prototyping: Creating early versions of a product or service.
- Testing: Testing and refining the solution based on feedback.
- Iteration: Repeating the process to achieve a desired outcome.
What are the areas of opportunity that can lead to innovation?
Unexpected Occurrences: Unexpected successes and failures can be productive sources of innovation opportunities.
Incongruities: Incongruities between expectations and results can open up possibilities for innovation.
Process Needs: A need for a better process or a solution to a problem can lead to innovation.
Industry and Market Changes: Changes in industry or market structures can create opportunities for innovation.
Demographic Changes: Demographic events, such as changes in population or age distribution, can lead to innovation opportunities.
Changes in Perception: Changes in how people perceive a product, service, or industry can create opportunities for innovation.
New Knowledge: New knowledge or discoveries can lead to innovation opportunities.
What are some characteristics of Innovative entrepreneurs?
A commitment to the systematic practice of innovation
A willingness to take risks and experiment
A focus on creating purposeful, focused change in an enterprise’s economic or social potential
A ability to identify and capitalize on innovation opportunities
Whqat is Market Segmentation?
Market segmentation is a crucial decision for companies, as it determines what products to produce, how to market them, and who the competitors are. However, many managers give little thought to whether their segmentation scheme is leading their marketing efforts in the right direction.
What is Jobs-to-be-Done Segmentation?
Jobs-to-be-done segmentation is a framework that views customers as hiring products or services to get a specific job done. This approach recognizes that customers have different needs and priorities, and that products or services can be designed to meet those needs.
“The customer rarely buys what the business thinks it sells. The customer buys what the business does.” - Peter Drucker
Once the customer job (what they want to buy) has been identifyed, the Marketing Mix can be configured to meet their needs. what is Marketing Mix aka the 4 Ps?
Product: Developing products that meet the customer’s functional, emotional, and social needs.
Price: Pricing products in a way that is consistent with the customer’s perceived value.
Promotion: Promoting products in a way that resonates with the customer’s needs and motivations.
Place: Making products available in a way that is convenient and accessible to the customer.
What does lean startups do differently?
The lean startup approach builds on these ideas (hypothesis-driven entrepreneurship—test then invest—, small batches and rapid prototyping), but in our view, it goes several steps further.
First, the lean startup approach evaluates an early stage startup’s entire business model, whereas
most of its intellectual antecedents focus more narrowly on a startup’s product. Second, the lean
startup approach introduces two new concepts: minimum viable products that efficiently test business
model hypotheses, and pivots that change certain business model elements in response to failed
hypothesis tests. Finally, unlike other methods for managing an early-stage venture, the lean startup
approach balances the strong direction that comes from a founder’s vision with the need for
redirection that follows from market feedback.
What are the steps in hypothesis-driven entrepreneurship process?
(This is from the lean startups part of the course)
- envision- hypothesis
- build - mvp
- measure- run tests, get feedback
- learn- confirm/reject hypothesis
- decide- persevere, pivot or perish
- revision (go back to 1.)
What is a false positive or a false negative result?
A false positive
indicates that a hypothesis has been confirmed when in reality it is not valid.
A false negative indicates that a hypothesis has been disconfirmed when in reality it is valid.
What is the mom test?
The Mom Test is a set of simple rules for crafting good questions that even your mom can’t lie to you about. It’s a way to ensure that you’re asking the right questions to get honest feedback about your business idea.
It helps reduce false positives and understand the motives behind peoples answers.
What is “The Elephant in the Room” in the mom test?
The elephant in the room is the biggest risk or challenge that needs to be addressed. Ignoring it can lead to wasted time and resources.”
What is the meaning of “the right it”?
A new product, service, or idea that has the potential to succeed in the market.
What is Pretotyping?
Pretotyping is a process of testing and validating the market potential of a new idea before investing too much time, money, and effort.
Pretotyping: A process of testing and validating the market potential of a new idea before investing too much time, money, and effort.
What are the Benefits of Pretotyping?
Reduced Risk: Pretotyping reduces the risk of investing too much time, money, and effort in a project that may not succeed.
Increased Efficiency: Pretotyping increases efficiency by allowing you to test and validate the market potential of a new idea quickly and cheaply.
Improved Decision Making: Pretotyping improves decision making by providing you with data and feedback that can inform your decisions.
What are some methods of pretotyping?
The Mechanical Turk: ideal for situations where you can replace costly, complex or yet-to-be-developed technology with a hidden human being performing the functions of that technology.
The Pinocchio: suited for situations where things like size, shape, weight, portability, etc., are important and where one’s imagination can be used to fill in the blanks.
The Minimum Viable Product (MVP): a working prototype with features and functionality stripped down to the bare minimum in order to collect the maximum amount of validated learning about customers with the least effort.
The Provincial: provides the core features of the intended final product, but limits its scope (and scale) to support a small subset of the ultimate target market.
The Fake Door: creates an entry point for a potential product (or new feature) without actually building the product.
