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SMO 310 > Module 2 - Entrepreneurship and Innovation > Flashcards

Module 2 - Entrepreneurship and Innovation Flashcards

1
Q

What is the definition of entrepreneurship? How does this vary from stereotypical idea of entrepreneurship?

A

Seek to understand how opportunities to create something new arise + are discovered or created by specific individuals who then use various means to exploit or develop them, thus producing a wide range of effects
(not always profit motivated, doesn’t have to involve creation of brand new company)

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2
Q

What are 2 main forms of enterprises? What characterizes each?

A

1) Small/Medium Enterprises (SME) = local, low innovation, linear growth)
2) Innovation Driven Entrepreneurship (IDE) (aka High Growth Startup) = global, big company, non-linear growth (hockey-stick)

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3
Q

3 other types of entrepreneurship?

A
  • Intrapreneurship = innovate within a company
  • Social venture
  • Lifestyle Entrepreneur = ex. Etsy, Influencers
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4
Q

3 types of entrepreneurial opportunities?

A
  • New market for existing product
  • new prodcut for existing market
  • new market and new product
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5
Q

Common traits across entrepreneurs?

A

1) make decisions in uncertain environments (on stuff no one has ever done before/no road map)
2) lack information
3) effectuation!

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6
Q

What are the steps of the ABLE framework?

A
  1. Ask/Build
  2. Build/Launch
  3. Experiment/Evaluate
  4. Learn/Adapt
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7
Q

What is the liability of newness?

A

Companies more likely to fail at beginning stages than later because they are still working to convince people that their idea/product is a good/useful one.

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8
Q

What is the concept of The Slow Hunch (from ‘Where Good Ideas Come From youtube video)

A
  • Idea is in back of someones mind, resurfaces because it connects with another small hunch (theirs or someone elses)
  • Ideas need time to incubate
  • Ideas are often only one piece of the puzzle
  • Hunches need to collide with other hunches, especially those in other people’s brains
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9
Q

What did we learn from the Food Truck Simulation?

A
  • Most people default to analysis and planning
  • Analysis doesn’t work in uncertain/unpredictable environments
  • Should learn by doing –> trial and error
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10
Q

What is the LEAN startup?

A

Cost effective way to understand consumer needs and desires, unify product market fit aka develop product using customer validation methods
- Business model canvas
- MVP
- Ask Build Experiment Learn
- Pivoting (customer delivery > customer validation > back to customer delivery > ..)
Favours: experimentation over planning, customer feedback over intuition, iterative design over “big design upfront” development

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11
Q

4 steps of problem definition process? What are the parts of each?

A

1) Establish need for a solution =articulate problem in simplest terms possible (basic need, desired outcome, who benefit)
2) Justify the need = why should we attempt to solve this problem (effort aligned with our strategy?, how ensure solution is implemented?)
3) Contextualize the problem (what approaches have we and others tried, constraints on implementing solution)
4) Write the problem statement = establish consensus on what a viable solution would be (symptom?, what requirements should be met, how evaluate solution and measure success)

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12
Q

What was the EWV story?

A

Want help with drinking water in third world countries, worked through proper problem definition, figured need to make convenient and very low cost, decided to focus on rainwater bc accessible, learned storage is the main problem, need to be light, ended up with double bag system to collect 125 litres water very lightweight and easy to fold up and carry around

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13
Q

What are the 3 categories of means under effectuation?

A

Who you are, what you know, who you know

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14
Q

3 main principles under effectual reasoning? What does each entail?

A

Affordable loss: invest what can afford to lose (money, social capital, time, etc), start with trying to sell product, don’t put all the effort into building it first, find way ro implement idea within means you can assemble
Strategic partnerships: use competitors to help, network help with which market end up in, help with capital savings
Leveraging contingencies: surprises can be used as inputs into the new venture creation process, can help determine direction

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15
Q

2 schools of thought on where ideas come from?

A

1) They’re all out there in holes/imperfections in the market, just need to be found
2) They’re created through the process entrepreneurs go through

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16
Q

Where do preexisting opportunities come from?

A

Trends (societal, tech, economic, government), work experience, hobby/personal experience, chance, perceptual changes, education/expertise, industry/market changes (consumer attitudes, tech advance, etc)

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17
Q

Explain the effectuation cycle thingy

A

means > goals > interact with ppl > stakeholder commitments > either new means then start over or new goals and go back to goals section theeennnn at some point get to the new product/market/business part

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18
Q

Steps to start gaining network and get people involved in your venture?

A

Do an inventory from inside out (family, friends, peers, colleagues, friends of friends)
Invite people in (email list for updates, send regular updates, blogging)
Change roles (dont see people only as customer/investor/etc, consider if others you haven’t thought of may be interested in getting involved)

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19
Q

Describe the Bergquist ice hotel story

A

He was part of massive company who didnt know his name, fan of river rafting and helped tourists, got into tourist business but seasonal bc Sweden, discovered people love ice, hot weather wrecked it but contingencies!, so make first ever ice hotel and the fact that it can die makes it more special :)

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20
Q

Describe Kaiser hospital design thinking example

A

Kaiser company wanted improve, enlisted nurses into design and problem solving process, decided to help with shift change, used software to record patient info during shift, passed info in front of patient so know what’s goin on

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21
Q

Shimano design thinking example

A

Bike company directed at high end road bikes, wanted to appeal to boomers, found out they wish they biked but intimidating and not sure where to go and how to be safety and didnt want annoying bike with lots of upkeep. So created ‘coasting’ bike very simple backpedal brakes, auto shifting, storage for helmet, came with info on safest places to ride

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22
Q

Definition of design thinking? 5 steps?

A

Human centered, innovative, iterative, creative, ideation, experimentation. People first, profit/business second.
Empathize Define Ideate Prototype Test

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23
Q

How to interview

A

Ask for recollections, open ended questions, give data and ask to sensemake, change subject if getting non-helpful answers, ask at end ‘anything you’d like to add’ to open up for any extra details

24
Q

Describe interview structure graph thing

A

Intro self, intro project, build rapport, evoke stories, explore emotions (not too long here), question statements, thanks and wrap up.

25
Q

What are the barriers to ideation? And how fix them?

A

Fear of making mistakes/failing (allow people to think about topic alone and ahead of time, 6-3-5 method)
Inability to tolerate diversity/ambiguity/weird ideas! (make sure everyone knows quantity > quality)
Tendency to judge and not generate whatever random ideas you think (write down allll ideas, don’t say “Jolene’s idea is bad”)

26
Q

Startups differ from existing companies on business model how?

A

Existing companies execute business model VS startups look for one
Startup = temporary organization designed to search for a repeatable and scalable business model

27
Q

3 steps of business model

A

Value identification = genuine value needed/desired by customers/stakeholders
Value delivery = how deliver that value
Value capture = who gets paid and how if success?

28
Q

What are the two starting points for the business model canvas?

A

Customer segments and value proposition

29
Q

What are the parts of the business model canvas?

A

Customer segments, customer relationships, channels, value propisition, key partners, key activities, key resources, cost structure, revenue streams

30
Q

What is the ‘how’ part of the business model canvas?

A

Key activities, resources, and partners - who help? who provide other complements? what activities in house? what education needed for product? what resources needed to support all parts? need patents etc?

31
Q

What is the financial part of the business model canvas?

A 
Cost structure (fixed and var costs, breakeven, cost drivers, most expensive resources and activities?)
Revenue streams (how do customers pay now, how would customers like to pay, revenue model enable easy adoption for customers?)
32
Q

What makes up value proposition part of business model canvas?

A

which unmet needs you serve? What product to each segment? How differentiate? Pricing strategy? How make easier for customers to adopt this product?

33
Q

What makes up ‘who’ part of business model canvas?

A 
customer relations (how get and keep customers, nature of relationship, switching costs, cost of relationships)
customer segments (most important ones, archetypes/personas, new or existing market)
channels (how do they want communication from you, how want products from you, direct/indirect communication/sales)
34
Q

What is an MVP?

A

Minimum viable product! version of new product that allows the team to collect the maximum amount of validated learning abt customers with the least effort.

35
Q

How does riskiest assumption matrix work?

A

Stuff with low confidence and highly critical should be tested with MVP bc riskiest (low confidence but not critical // very critical but also validated already/confident // confident and not critical anyway)

36
Q

Example for MVP?

A

Group wanted to simplify farmer data collection for watering/fertilizing/etc. and deliver actionable data. Thought MVP should be drone with all the software to collect the info and then show info to farmer. Really tho farmers cared only about good data, so could just rent camera and helicopter, get the data itself (that the drone WOULD get) then see if farmers really want it

37
Q

Why MVP help new entrepreneurs?

A

Get to product customers actually want in a cheaper and quicker way, while less risky and more accessible. Worst case scenario possibility can fall within affordable loss range

38
Q

What was balanced snacking case?

A

two friends from school after years apart got together to start endeavour with snack mix product subscriptions. Tested MVP with small facebook webpage and ads, not even with actual product, then saw got real demand and cobbled together a first product with shit from the dollar store, then saw that actually good idea and demand exists! for very low cost :)

39
Q

4 ways venture capitalists really assess a pitch?

A

Passion overrated - preparedness more important
Trust beats competence - investor likes someone who projects trustworthiness
Coachability matters - more to angel investors (bc more involved), open to feedback important
Gender stereotypes play a role - bias against typical feminine traits (warmth sensitivity emotionality) and prefer male traits (dominance, assertiveness, aggressiveness)

40
Q

4 primary areas for assessment in a pitch/idea

A

People behind idea (sensical as a group, team backgrounfs talents experiences)
Resources available to carry out idea (equity and debt, tech, social capital)
Knowledge abt industry/market (new venture concept, porters 5 forces, regulations)
Ability to generate revenue (profit potential and cost efficiency)

41
Q

Key criteria to assess own venture?

A 
Significant need?
Effective solution to address need?
How big potential gross margin?
How hard to get customers?
Best team?
42
Q

What is KIC

A

knowledge of industry checklist! = what industry am i in, what do I know about it, competitor analysis

43
Q

2 tensions in the art of the pitch? explain em

A

Visionary vs Pragmatist (if mundane idea, pitch need to be visionary/exciting // out there pitch needs pragmatic explanation)
Style vs Substance (balance between passion energy excitement and preparedness thought out logical clear)

44
Q

4 techniques to balance visionary/pragmatic pitch

A

1) analogy = connect with other businesses to seem more visionary/pragmatic (we’re like how LinkedIn completely changed the hiring process)
2) classification = categorize idea under industry/company type depending on want visionary or pragmatic (flying car is personal transportation company (P) or airplane company (V))
3) Authority = namedrop! (Elon Musk says ‘this is the most exciting idea ever’)
4) Symbolic action = use symbols to show credibility, dependability (logo of school/investor/charity or symbol of cutting own paycheck to support sends a message that committed)

45
Q

Do most companies grow?

A

Not really, most small businesses don’t want to, but growing firms survive longer

46
Q

What are the two options for growing a business?

A

Scaling = penetrate existing markets, leverage existing capabilities, more leaders needed for more complexity (enhance)
Expanding the scope = new markets/product categories/businesses, new leaders needed for different domains (expand/explore)

47
Q

What are the causes of unsuccessful scaling?

A

Customer - too much on customer acquisition before product-market fit
Product - build product w/o problem-solution fit
Team - Hiring too many people too early, hiring specialists before needed
Financials - too little money to get through valley of death, too much money so become undisciplined
Business model - too much focus on profit maximization early, too much planning/execution w/o regular feedback, not adapting to changing market

48
Q

What is a network example?

A

Paul Revere spread info to people who had connections he couldnt connect with by himself vs William Dawes spread info to people who were all interconnected to him and his connections so circuitous almost

49
Q

Why is a network valuable?

A

Access to private and trustworthy info (public info unspecial)
Access to diverse skills/perspectives/info

50
Q

3 characteristics of high performing networks?

A 
Diversity = different information and perspectives help with innovation!
Brokerage = the right contacts can spread way far and get you a ton of info from just knowing like 4 people (other way though is that network fold in on self and info ends up redundant) (spread is good for growth and bringing in help, redundancy good for inner management team to network internally)
Trust = strong ties from good friends and long relationships better, created from shared experiences, best for serious help // weak ties are more acquaintances, theres more of them, better for get a lot more information flow and create lots of bridges
51
Q

What is the self-similarity principle?

A

When you’re searching out new network contacts/introducing yourself, you tend to choose people who already resemble you (ex @ party find people with your vibe/similar clothes/music/drink)

52
Q

What is the proximity principle?

A

Because often connect with people similar to us, they are already too close to us to provide useful info ~ redundancy stuff = one of your connections is already connected to them so relatively useless

53
Q

How to help grow and strengthen your network?

A
  • Talk to people very different from you
  • Do shared activities together that can build trust and strengthen tie
  • Pay attention to and frequently connect with superconnectors (people who introduce you to lots of useful connections)
  • Be a giver not a taker! give back to your network with new connections for them or other helpful things
54
Q

What was Aatif’s main story?

A

He was working at ATCO, the big boardroom dudes did research and thought of this smarthome idea, asked Aatif to lead the idea, he checked if homeowners felt it was valuable (nope lol), went door knocking on EV owners, gathered evidence on what the actual problem was for the consumer!

55
Q

Charlene what she did to become so connected?

A

Went to every single school/program related event, volunteered in her desired industry, attended events in a city before even moving there, did case competitions and went to speaker events, joined groups and councils

56
Q

LEAN Startup according to Steve Blank

A

1) Create and summarize hypotheses with business model canvas (rather than writing out whole business plan)
2) Test hypotheses by asking potential users, purchasers, partners for feedback on all elements, then use feedback to start over and revise
3) Agile development - create and test MVPs

57
Q

5 constraints for new ventures Steve Blank

A

1) high cost getting first customer and higher cost of getting product wrong
2) long tech development cycles
3) limited number of people with appetite for the risks inherent in founding/working at a startup
4) Structure of VC industry bc startups need multiple large investments from different firms
5) Geographic concentration of entrepreneurial expertise

SMO 310 (2 decks)

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