Pre midterm- Lec 2 Flashcards
SME (small medium enterprise) attributes
- Market focus is local /regional
- Jobs performed locally
- Little external capital / family businesses
- Grows at a linear rate
- Usually there is a cap to growth potential
Innovation driven enterprise (IDE) attributes
- Market focus is global
- The company is based on some innovation
- Jobs don’t have to be performed locally
- Diverse capital ownership
- Starts by losing money but if successful growth can be exponential
What makes an entrepreneur ‘different’?
- Vision & Identification of opportunities
- Comfort with uncertainty (risk)
- Influence- Building networks
- Financial management
Macro Trends
- internet of things
- Big data
- AI/ machine learning
- Blockchain
- Fintech
Consumer trends
- Information transparency (buyer power)
- Community driven
- Nomadic lifestyle
Sustainability trends
- climate action
- clean and affordable emergy
MICRO
Geography may determine specific development
priorities, customer needs, access to resources
(financial, technological and human)
Me perspective
- idea
- technology
- passion
Techniques to generate business ideas
- Brainstorming
- Scamper
- Design thinking
Brainstorming
Organize brainstorming sessions with a diverse group of people to generate a wide range of ideas.
Encourage free thinking and avoid judgment to foster a creative environment.
Use techniques like mind mapping to visually explore ideas and their connections
SCAMPER
- Substitute,
- Combine,
- Adapt,
- Modify,
- Put to another use,
- Eliminate, and
-
Reverse.
Think about a product,
service, or process from
different perspectives,
leading to innovative ideas.
Design thinking
Employ design thinking processes, which involve empathizing with users, defining problems, ideating solutions, prototyping, and testing.
This user-centric approach can uncover unique insights and innovative solutions.
Design thinking
- Discover- Learn About Your Audience
- Define- Construct Point of View Based on User Needs
- Ideate- Brainstorm and Come up with Creative Solutions
- Prototype- Build Representation of Your Ideas
- Test- Test your ideas
- Discover steps- 1 UNDERSTAND
The starting point of any design thinking project is a person – or a group, maybe – that has a particular need or problem.
-> **WHO **is the target group (size, characteristics)?
-> WHY does the user think she needs a solution?
-> WHAT does the user propose as a solution (if any)?
-> WHEN and for how long is the result needed (limited, long term)?
-> WHERE is the result going to be used (context, geography, media)?
-> HOW is the solution implemented (skills, budget, business model, go-to market)?
- Discover steps- 2 OBSERVE
Get to really know your user and the situation at stake. This phase focuses on what is called “qualitative” research (or
observation) methods.
-> physical observation
-> interviews (try the “5 why” questions)
-> idea boards / vision boards
-> photos, both mood and real life
2.Define
Define the point of view you’ll be working on.
HOW might we….?- state the problem clearly
Establish a common knowledge base.
-> start “unpacking” your findings
✔ recall, interpret and weight all the findings.
✔ encourage all the members of the group to share their experiences.
✔ tell stories, show pictures, convey emotions.
-> find patterns and cluster by theme.
-> give it time.
-> choose your point of view.
3.Ideate
Create as many as possible** ideas to reach a solution**
Brainstorming…
-> creative confidence – express ALL ideas.
-> Quantity over quality – cover that wall!
-> No limits.
-> No criticism!
Diversity in the team helps.
A relaxed atmosphere too
3.ideate techniques
- SCAMPER:
Substitute
Combine
Adapt
Modify
Put to other uses
Eliminate
Rearrange
2.SIX THINKING HATS:
Blue – The big picture
White – Facts & Information
Red – Feelings & Emotions
Black – Negative
Yellow – Positive
Green – New Ideas
4.prototype
Prototype quickly and cheaply.
Tangible – mockups with craft materials, drawings, landing pages, photos, videos…
5.Test
Put the prototype in front of actual users and collect feedback.
Learn about strengths and weaknesses.
Refine and go pack to 4
Business idea pitfalls
- Selling to everyone
- China syndrome - over-optimistic belief that capturing a tiny market share in a large market, like China, will lead to significant revenue
Perceptual Mapping
A visual representation technique used in marketing to show how consumers perceive a brand, product, or service in relation to
competitors and various attributes
Market Segmentation Criteria
-
Demographic- age,
gender, occupation, ethnicity etc - Psychographic- social class, lifestyle or personality characteristics.
- Behavioural- consumer behaviors: purchasing habits, spending habits, user status, and brand interactions.
Customer persona definition:
A semi-fictional character that represents a significant segment of a business’s target audience. based on data and research
Components of a Customer Persona
- Demographic info
- Professional details
- Psychographic (vules hobbies lifestyle)
- Goal and motivations
- Buying behaviour
- Pain points
In OECD countries young firms are key for the job market:
X% of employment
X% of new jobs
20% of employment
50% of new jobs
In NL and FR, transformational startups are 4% of all startups (avg) but…
X% (NL)
X% (FR)
of new jobs
22% (NL)
53% (FR)
Estimated total investor losses by 2002:
$5 trillion
A start-up’s priority should be
____ while searching for a business model that is ______.
‘Customer Development’
repeatable & scalable
Customer development
SEARCH
1. customer discovery
2. customer validation
EXECUTION
3. Customer creation
4. Company building
lean startup definition of waste:
everything that doesn’t lead to validated learning
Lean Startup 3 main principles
- Hypothesis
- Get out
- Agile
- Hypothesis
Instead of a “wishful” business plan, founders summarize their hypothesis – their vision and ‘best guesses’ for their business - on a business model canvas.
2.Get out
… of the building: start talking to customers right away and focus activities in what matters to them.
Use MVP (minimum viable product) and improve from there.
3.Agile
Develop the product fast, incrementally and in iterations, following customer feedback.
Different hypothesis
- Value- whether a product or service really delivers value to customers
-
Growth- how new users
will find and start using your
product, and how will the
company grow once people
start using it
Product- market fit refers to
the degree to which a product satisfies strong market demand: the startup has successfully identified a target market and developed a product that meets the market’s needs effectively
In the context of a startup, a “pivot” refers to
a fundamental shift in business strategy to test a new approach regarding the startup’s product, target market, or business model
Condition for scalability:
Achieving product-market fit is crucial for a startup’s success and scalability, indicating that the product is in line with market demands, and capable of being profitable to sustain growth.
A business model describes
how your company creates, delivers and captures value
The 9 building blocks of the business model canvas: right to left
- Customer segment- pep/org we creating value for
- Customer relationship- types of relationships and how to aquier and retain them
- Channels- through which touchpoints we interact with customers and deliver value to them
- Value proposition- bundle of service and product creating value for customer
- Revenue streams- Pricing mechanisms how me capture value
- key activities- what we neet to perform well
- Key resources- indespensible assets, create deliver and capture value
- Key partners- who can help us leverage our business model
- Cost structure- main costs
The business model canvas is a tool detailing…
how a startup intends to monetize their idea and build a business.
BMC pro
- Easy to understand.
- Adapts to any type of business.
- Widespread use, common language.
BMC cons
- Static in its vision of the business.
- Does not recognize business evolution.
- Lacking in terms of the needs of a typical tech startup.
Lean canvas pro
- Easy to understand.
- Focused on the process of creating tech startups.
- Recognizes the dynamics of growth.
Lean canvas Cons
- Less well understood.
- “Switching costs” – the need to learn new things.
Lean canvas
- customer segment
-
Problem- customers top 3
existing alternatives- how they solved today -
Unique value proposition
High level concept- ex. Discord= its like skype for gamers - solution
- channels
- rev stream
- cost struc
- Key metrics- key numbers telling how its going
- Unfair advantage- what i have the cant be easily copied or bought
Customer profile:
- Jobs to be done
- Pains
- Gains
Jobs to be done are ex
- Functional
- Social
- Personal /emotional
- Supporting
Pains are
- Undesired outcomes, problems or characteristics
- Obstacles
- Risks (undesired potential outcomes)
- Pains can also be functional, social or emotional
Gains are
- Required
- Expected
- Desired
- Unexpected
Value map
- Products & services
- Pain relivers
- gain creators
Products & services are:
- All the products and services you offer
- These are the elements of your value proposition
- Can be tangible, intangible, digital, financial, etc.
Pain relievers are:
How you’ll eliminate or reduce some of the things that annoy the customer before, during and after completing a ‘job’
Gain creators are:
How you intend to produce outcomes the customer expects, desires, or will be surprised by.
Includes functional utility, social gains, positive emotions and cost savings.
Revenue model examples:
- one off sale
- Rental
- Licensing
- Franchising
- Subscription/membership
- Pre- paying
- Freemium
- Commission
- Advertising
- Leasing
- Price per hour/unit
- Sponsorship
- Affiliates/referrals
