final flash Flashcards
Innovators
Initial adopters of the the product, willing to work with bugs
Early Adopters
A person who starts using a product or technology as soon as it becomes available to the public, demanding but provide valuable feeback
Early Majority
Are not and will not buy until the product’s value is demonstrated, when broken through the product has officially gone mainstream
Late Majority
Only purchase after the majority of people have
Laggards
In pure denial of the product and do not buy the product until they feel like they truly have no choice
Why is diversity important in a founding team? (Rent the Runway, Xiaomi)
- Greater creativity and innovation from different perspectives
- Reduced employee turnover
- Connect to a wider range of customers
Cost leadership key elements to success:
Economies of scale-efficient plants, Process innovation, Outsourcing (especially overseas)
Differentiation key elements to success:
Emphasis on branding advertising, design, service, quality, and new product development
The Innovator’s Dilemma is:
Should I lose money in the short term to hop on the new S-Curve or not pivot and let my company be gobbled up in the long-term?
What are some typical ways to segment a market?
(WILL BE ON QUIZ)
Geographic - Country. Region, Urban/Rural
Demographic - Age. income, gender
Psychographic - Personality traits/ interests
Benefits Sought - Convenience, value, safety, status
Behavioral (Physical) - Physical habits
(GDPBB)
Lean Startup vs Design Thinking
Lean Startup - Focuses on when you have an hypothesis and creating a product that can have product-market fit
Design Thinking - When the idea is properly developed through the creation of the product
Ecosystems
The main critical source of a competitive advantage, one of the only things in business that are very, very hard to imitate
Risk of ecosystems
Since every party contributes to the puzzle, if one party fails deliver it could become a massive bottleneck and mess everything up
What are the two main types of competitive advantage?
- Cost: similar product at lower cost
- Differentiation: price premium from unique product
Phases of a Technology S-Curve
https://gyazo.com/32a3b19d3dcf73a270e6681b745c864e
Exploration Phase → Phase early on in a tech s-curve figuring out how to expand and move towards mass expansion
Exploitation Phase → When you get to abuse the knowledge you gained from the exploration phase and see massive growth
How do you choose a method of segmentation?
- Perform qualitative and then quantitative research
- Talk to potential customers based on your assumptions
- Adapt as needed and then focus on reaching early customers
Jobs to be done def
what the customer wants out of their purchase (think of milkshake example)
Different Models of Corporate Innovation
- Open Innovation - involving the external ecosystem in the innovation process (Chez Panisse)
- Internal Venturing - setting up internal venture units to invest in startups and external innovation; investing in startups (Boston Beer Co.)
- Partnerships and Collaborations - partnering with other firms to co-create and co-innovate (Disney-Pixar, Nestle)
- Corporate Accelerators and Incubators - big companies providing resources and support to startups and internal innovation projects. (Disney, Polygon)
- Innovation Labs - A lab dedicated to exploring and experimenting with new ideas and technologies (Google)
What are the 4 technological megatrends?
- Artificial intelligence at scale
- Advanced connectivity
- Sustainable consumption
- Cryptography
Why does customer adoption follow an S curve?
As it provided a very useful way of breaking down the segements of adoption
What are three factors a firm should consider when choosing a beachhead target consumer.
https://gyazo.com/832872be6565384c21bfbbcfcd403f6a
They need to take into account the traits of learning, coherence, and reference.
What are some current trends in technology?
Artificial intelligence at scale (Chat GPT, AI Tools)
Advanced connectivity (Broadband speeds, 5G, 6G, etc.)
Sustainable consumption (All companies)
Digital trust (Encryption, Cybersecurity Companies)
What is the difference between a Sustaining Innovation & a Disruption Innovation?
(WILL BE ON QUIZ)
Sustaining makes life better for all customers (ex: Netflix introducing Video Streaming)
Disruptive is High Risk, High Reward and introduces a very different set of attributes from the one mainstream customers historically value, but have the chance of eventually becoming market leaders
How do you assess the attractiveness of a market?
competition, quality of market, revenue opportunity
What are the phases of Design Thinking + What are the benefits + drawbacks?
1) Exploration Phase
2) Concepualizing Phase
3) Prototyping Phase
The benefit is you come up with ideas you may have never thought of before, however, it requires a lot of resources and time
Why should a firm vertically integrate?
When you are at risk of a supplier taking advantage of your company or when you are developing a really complex product, you do not want to risk another company messing it up
Questions an Entrepreneur should ask themselves
- Do I have good goals?
- Do I have the right strategy?
- Can I execute the strategy?
