Ideas Flashcards
What is the dynamic external environment
Company’s core competencies (value prop, Customer offering)
Competitor’s offerings
Customer Needs (company capabilities)
Sweet spot:
- Customer offering aligns with customer needs
- The strategic area of customer needs that can be serviced by the capabilities of a company that cannot be met by a competitor
Value proposition definition
The way your customers would describe your product or service and why they do business with you over your competitors.
- What can we do better than anyone else that will meet your needs
What is connected to value propositions
Company’s core capabilities
What is the 4 components of strategy
Strategic objective
value prop
target customer
capabilities
Uber
Value prop
Capabilities
Competitor offerings
How did context enable Uber
Could uber be disrupted
Value prop
- connect riders and drivers via mobile app
- Real time ETA and location
- cashless
- driver and passenger ratings
Capabilities
- Uber app
- underlying mapping technology
Competitor offerings
- 50% more expensive bc of dispatch fees
- Undetermined wait time
- older less desirable vehicles
- poor driver service
How did context enable Uber
- high smartphone adoption
- accurate mapping technology
- mobile payment
Could uber be disrupted
- self-driving vehicles
Shoppers
Value prop
Capabilities
Competitor offerings
How did context enable shoppers
Could shoppers be disrupted
Value prop
- National wide
- trusted
- PC optimum
- post-office
- convenience stores
Capabilities
- Deep pocketed owners from loblaws
- established brand
Competitor offerings
- smaller chains offer localized service
- Costco offer lower price Rx and convenience
How did context enable shoppers
- Loss of main street competitors in both Rx and convenience stores
Could shoppers be disrupted
- internet based pharmacies, amazon
Define
Mission
Vision
Strategy
Values
Mission
- Statement of purpose or reason for being
Vision
- Visualization of where the company in 3-5 years
Strategy
- Competitive game plan
Values
- Guiding principles for employee behaviour
Why is a strategy statement important for a startup (4)
- Aligns resources to goal
- Common language
- Creates culture
- Allows coordinated changes to strategy
Define red ocean and blue ocean
Red ocean
- Handful of large players who compete for market shares
- Low margin
Blue ocean
- new uncontested spaces where companies can grow
What is Porter’s 4 competitive positioning. Give examples
- Cost leadership (Walmart)
- Company tries to become the low-cost producer in its industry
- have some kind of advantage in scale or access to raw materials - Differentiation (apple and tesla)
- A firm seeks to be unique by developing and exploiting some attribute that is valued by a large segment of the market - Cost focus (local farm, dollar store)
- A firm seeks a cost advantage in a focused, SMALL target segment - Differentiation focus (Ferrari, Gucci)
- A firm seeks to differentiate its offerings to a NARROW subsegment of a larger market to avoid competing with larger firms that service broader audiences
What are the 4 strategies in creating a blue ocean
Eliminate
Create
Raise
Reduce
Define lean startup strategy?
What is the process (6)
Prescribes a methodical and efficient process to finding a product market fit through iterative product introduction cycles
Ideas
Build
Product
Measure
Data
Learn
-avoids month of planning only to find out product does not fit
- helps quickly identify areas to pivot
What are the 4 types of customer pain points
Financial
Productivity
Support
Process
What is the venture capitalist investment criteria
- A compelling idea that solves an important problem
- A large market for that problem space
- A passionate team
- Demonstrated market traction
T/F the most important criteria for VCs is the idea
False
- they focus on the team, large market, and demonstrated traction
3 key components of a great idea
- A compelling solution to an important problem
- A significant market opportunity or TAM
- Intellectual property that is defensible
Define total addressable market TAM
The total market for the start up’s product or service that it and its competitors have the potential to reach
Define Intellectual property IP
The proprietary or differentiating features that are at the core of a start-up’s product or service offering
Define defensible IP
IP that can be defended against a competitive threat through some kind of proprietary advantage
Define patent
Why avoid filing patents (5)
A legal filing that protects a specific part of a company’s intellectual property from being used by competitors.
Patents are filed for very specific parts of a company’s IP and typically have both a geographic jurisdiction and a time frame.
Why avoid
- Costly
- costly if sued
- most inventions are not unique
- easy to work around most patents
- takes away focus from founders
Define pain point
A specific problem that occurs somewhere along a customer’s path to purchase or to use an existing product or service.
After finding pain point, next step is to validate that there is a large market opportunity for the solution
Ideas don’t have to be… (4)
- New inventions
- Unique
- First to Market
- Allowed to evolve
Define minimum viable product
A strategy for getting into the market quickly so that you can learn from early customers
What are the 5 steps of design thinking
- Empathize
- understanding the problems - Define the problem
- organizing the research info to produce a concise problem statement and possible solution - Ideate
- brainstorming phase - Prototype
- turning ideas into physical representation - Test
- putting prototype in the hands of the user
Define design thinking
A process for practical, CREATIVE resolution of problems or issues that looks for an improved or disruptive future result
A concept that places the customer’s point of view at the forefront of the innovation process to ensure that empathy for the customer’s experience plays a central role in the innovation process.
T/F Design thinking is a human-centred and iterative learning process
True
When is the problem defined?
When it is
clear
concise
realistic
understood
achievable
capable of being measured
Differentiate between structured problems and unstructured problems
Structured problems:
- Exist in an established situation
- Are programmable, can be solved with known approaches
- Fully understood, known data
- Relate to routine or understood tasks
Unstructured problems: (business problems)
- Exist in emergent situations
- Require creative solutions and approaches
- Uncertain and unclear data
- Are highly complex with many input variables
What are 2 valuable tools for understaning the customer’s POV
- Empathy Maps
- What does a customer think, feel, see, hear, do, say in a situation
- Pain points - Customer Journey maps
- Customer’s interaction with cues and clues
Differentiate between divergent thinker and convergent thinker. What kind of thinking is design thinking?
Divergent thinker:
- thinks of all possible ways to reach a solution
Convergent thinker
- Thinks for a final solution
DT is a series of both. During the divergence, we are CREATING choices, and during convergence, we are MAKING choices
What is design thinking excellent at
- Understanding the unrealized needs of customers
- Helping organizations learn and iterate faster
- Reducing the failure rates of new products and services
- Generating disruptive, not just incremental, innovation
- Good for wicked problems
Define Wicked problems
Global issues that refuse to be solved using standard problem-solving approaches.
- climate change,
- wealth inequality
- access to healthcare
- and poverty
These challenges that affect almost all businesses, such as maintaining a competitive advantage.
Define the worst possible idea tool
Method in which team members purposefully try to find the worst possible idea in order to get the “brain juices” flowing and inspire further creativity in the team
Define bodystorming
Used to enhance creativity in which the team images what it would be like if the solution already existed and was in use
