opportunity discovery process
Post on 13-Apr-2017
982 Views
Preview:
TRANSCRIPT
1
Overview ofSBI’s Opportunity Discovery Process (ODP)
Prepared by:Dr. Chulho ParkVice President
Strategic Business Insightscpark@sbi-i.com
October 2015
2
Opportunity Discovery Process for Value Creation
3
Opportunity Discovery—Incubation EngineOpportunity
Profile
Trends, SWOT
Idea
Resurrection
New Challenge
Refinement
Concept
Refinement
New Challenge
OpportunityDiscovery
EngineInternal and External Sources
R&BD
R&BD
“Failure” Mode
Customer Value
Creation
Customer Value
Creation
Validation
Validation
Concept
Opportunity DiscoveryWorkshop
OpportunityValue
Proposition
OpportunityRoadmap
OpportunityWorkbook
OpportunityWorkbook
OpportunityDiscovery Workshop
OpportunityValue
Proposition
OpportunityProfile
OpportunityRoadmap
4
Key Success Factors for an Opportunity
Address important customer’s (unmet or new) needs
Create significant financial value or benefit
Develop unique, compelling technical approach
Create competitive advantage
Fit to the company strategy
“Important” Opportunity
Product/ServiceNeeds
CustomerNeeds
TechnologyNeeds
Research & DevelopmentNeeds
5
Opportunity Discovery—The Front End of Innovation in the New R&BD Paradigm
Infrastructure: Organization, Resource, Processes
Analysis of External Drivers and Dynamics
CommercializationManagement
IP AssetManagement
Technology (R&D)Management
CompanyBusiness
Visionand
Strategy
Opportunity (Value) Discovery
Value Development (R&D, BD)
Creation of Customer Value and Company
Profit
Infrastructure: Organization, Resource, Processes
Analysis of External Drivers and Dynamics
CommercializationManagement
IP AssetManagement
Technology (R&D)Management
CompanyBusiness
Visionand
Strategy
CompanyBusiness
Visionand
Strategy
Opportunity (Value) Discovery
Value Development (R&D, BD)
Creation of Customer Value and Company
Profit
6
Problem Definition and Scope
Development of Opportunity Profiles
Initiation:Preparing Workbook
Idea Generation:Brainstorming Ideas
Opportunity Clustering:Clustering Opportunities
Opportunity Evaluation:Evaluating Clusters
Focus Areas
Opportunity Ideas
Attractive Opportunities
MarketNeeds
TechnicalNeeds
Opportunity Clusters
Industry/Markets
Selection Criteria
SBI’s Process Involves Creative Brainstorming Followed by Careful Clustering and Screening
7
Bring together multidisciplinary skills: marketing, R&D, manufacturing, planning
Develop critical mass of necessary knowledge quickly: consumers, markets, technologies, competition
Encourage knowledge sharing and consensus building Create broad view and perspectives of market and technology
landscapes with a specific decision focus Leverage the expertise, experience and genius of others Increase efficiency and productivity for innovative idea generation Break down organizational barriers (silos) Create learning environment through repetitive use of structured
brainstorming.
Why Structured Brainstorming
8
Three Types of Brainstorming Workshops
Positive Negative
Multidisciplinary Team
Expert Group
Scenario-Based
Broad view Many diversified ideas Rapid knowledge base
development
In-depth expertise A few high-quality ideas Effective and efficient for
specific cases
Through search Comprehensive view Innovative ideas through
systematic approach
Less productive, and often inefficient
Difficult to maintain the quality of ideas
Narrow view Prone to be biased Hard to access experts
Time consuming and expensive
Often less productive Difficult to execute
9
Step 1: Prepare a workbook for Opportunity Discovery workshop
Step 7: Refine the selected opportunities and specify next steps
Step 2: Discuss industry trends and issues, and the company’s business/R&D strategy and capabilities
Step 3: Identify new business and/or research opportunities
Step 4: Segregate the opportunities into clusters
Step 5: Develop evaluation criteria and assess their relative importance
Step 6: Evaluate and select the best refined opportunities using the selection criteria
SBI Conducts the Process via Well-defined Steps
10
Step 1: Prepare a Workbook for Opportunity Discovery Workshop Describe opportunity discovery objectives:
– Who needs opportunity ideas, and why (or for what purpose)– What kinds of outcome needed or desired– How to use the outcomes (next steps)
Set specific goals for an opportunity discovery workshop:– Opportunity types: new business, product/service, research, or
application ideas– Time horizon: short-, mid-, and/or long-term– Search domain scope: e.g., display, flat panel display, or LCD– Number of ideas to be created– Consideration of its own core businesses or technologies– Consideration of resources (financial or human resources)– Consideration of risk
11
Check List for Characterizing Opportunity Discovery
OpportunityType
Basic Science and Research
Application Development
Product orService
Business orMarket
SearchScope
Existing/Core Areas Only
Growing and Emerging Areas
Totally New Areas Only
NoConstraint
Time Frame (Examples)
Short-term (1 to 2 Years)
Medium-term(3 to 4 Years)
Long-term(Over 5 Years)
NoConstraint
Technical Capability Req.
Low Medium High NoConstraint
Investment Requirement
Low Medium High NoConstraint
Risk Low Medium High NoConstraint
Number of Opportunities
Small(< 5 Ideas)
Average(10 to 20 Ideas)
Large(> 40 Ideas)
NoConstraint
OpportunitySearch Domain Example: Portable Multimedia Devices
(Note) Please make circles where are appropriate.
Illustrative Only
12
Step 1: Prepare a Workbook for Opportunity Discovery Workshop
Form a workshop preparation team (typically, a team leader plus 1 to 3 staff members)
Set/refine specific objectives and goals for a opportunity discovery workshop
Set a tentative schedule of the whole opportunity discovery process Determine a workshop process and desirable contents of a workbook Scout experts for workbook production, and assign tasks Scout experts for a opportunity discovery workshop (typically, a
workshop leader, a workshop moderator, a workshop recorder, numerous domain experts in the areas of market, technology, consumer, upstream and downstream industries)
Set a workshop date and place, and a tentative agenda for the workshop Prepare workshop materials such as idea cards, blackboard, beam
projector, notebooks, etc.
13
Typical Contents of a Workbook
Objectives of Opportunity Search– New business development– R&D idea search
Technology Analysis:– Technology trends– Emerging technologies– Emerging materials– Technical issues and needs
Market Analysis:– Market trends– Emerging markets– New product development– Change in consumer behavior– Market issues and needs
Competitive Analysis:– Major competitors: strategies and
technical approach– Potential new competitors or entrant
Other External Environmental Analysis:– Government science and technology
strategy and investment policy– Environmental issues– Regulatory and social issues– Issues in IP and standardization
Company’s Business Strategy:– Strategic vision and directions– Business strategy, expansion plan, and
new business development plan– Resource availability
Company’s Technology Strategy:– Technology strategy and R&D portfolio– Core technologies and core
competencies– Resource availability
WORKBOOK TABLE OF CONTENTS TEMPLATE (Illustrative Only)
14
Step 2: Discuss External Environments and Company’s Capabilities and Issues Kickoff the brainstorming workshop: introduction of the workshop
participants and agenda Refine and confirm the objective and decision for opportunity
search workshop Review the methodologies and processes of the workshop Present a workbook: industry overview and more Discuss about the guideline for the opportunity search Analyze major external and internal driving forces and trends to
identify new market and technical needs
15
Analysis of Driving Forces and Trends Will Help Identify Needs for Innovation
Competitive BusinessEnvironments
Social/EnvironmentalChanges
Disruptive Science& Technologies
External Driving Forces
BusinessOpportunities
Product/ServiceOpportunities
R&DOpportunities
Outcome of Opportunity Discovery Workshop
Business & Technology• Strategy• Capability• Resource
InternalOpportunity Discovery
• Decision-Focus• Goals• Scope
Internal
Brainstorming WorkshopTechnology-Driven
OpportunitiesCustomer-Driven
Opportunities
OptionalInput
Product/ServiceNeeds
CustomerNeeds
TechnologyNeeds
Research & DevelopmentNeeds
16
Step 3: Identify New Business/Research Opportunities Think about a new business or research opportunities and write
the idea in a given standard format. The format includes:– Name of an idea provider– Title of the idea– Description of the idea– Need: market, consumer, and/or technical needs– Skills/technologies required for the idea– Additional notes such as investment, related technologies, competition,
experience, synergy, etc.
Present the idea to the workshop participants in order to:– Refine the idea and make a bigger idea – Reduce duplication of the same idea– Inspire other ideas to the participants
17
Put your idea on a card:– No idea is a bad idea; be creative; take risks
Get in line to present your ideas Make your point briefly and precisely (without interruptions by
others), so that others may also contribute Post your idea. Give a two sentence description of the idea while
posting it Allow others to express their ideas; no “idea killing” behaviors Think of another idea. Build on other participants’ ideas Leverage the knowledge/genius of others and the workbook Only one person speaking at a time; no “sidebar” conversations
Rules of Brainstorming Workshop
18
Identify positive trends and find a way to exploit them. Identify negative trends and come up with a way to counteract them. Look at your current activities, portfolio, and interests for ideas that
might appeal to others. Watch what your competitor is doing and find a way to do it better.
Discovering Opportunity Ideas in Changes
CoreKnowledge
Trend 1 Trend 2
Intersection
KnowledgeVectors
Focus AreasFocus Areas
CoreKnowledge
Trend 1 Trend 2
IntersectionIntersection
KnowledgeVectors
Focus AreasFocus Areas
Sources of Changes• Technological advances• Social and environmental changes• Competitive dynamics• Consumer trends• Business model paradigm shift
19
Contributor: _______________
Description______________________________________________________________________________________________________________Need______________________________________________________________________________________________________________Skills/Technologies Required______________________________________________________________________________________________________________Additional Notes (required investment, related technologies, etc.) _____________________________________________________________________________________________________________________________________________________________________
Sample Format of an Idea Card
Product or Service:
20
Product or Service: Simple OLED Film Structure
Description:Reduce number of films necessary to produce OLED
NeedLower manufacturing cost and make flexible TFT-OLED easier
Skills/Technologies RequiredMonomer/polymer synthesis, functionalizing polymers, film deposition
Additional Notes (required investment, related technologies, etc.)SDI and SAIT
Contributor: Chulho Park
Example of an Idea Card
Idea Number: 7
21
Product: Simple OLED Film Structure
Example of the Title Card of an Idea
7
Related Idea Numbers: 3
22
Step 4: Segregate the Opportunities into Clusters Review the ideas created Eliminate duplicated or similar ideas Combine ideas that are subsets of other ideas or same kinds of ideas into
a new or existing idea Classify ideas in a few groups that can be:
– Similar technologies required– Similar applications or products– Same markets or industries
Name the clusters Note:
– Some ideas can belong to multiple clusters– Clusters can be used for portfolio selection and balancing
23
Step 5: Develop Evaluation Criteria and Assess Their Relative Importance Determine an evaluation method and criteria Determine a scale for each of the criteria
– Complexity of a scaling/measure depends on information/expert availability and experience
– 3 or 5 levels are appropriate in most cases Describe each level of the scale for the criteria
– Describe a level of a scale quantitatively as much as you can– Describe the rest qualitatively
Assess the relative importance/weights of the selection criteria Assess the relative importance of the scales
24
Success = SDemand x STechnology x SStrategic-Fit x SCompetition
Basic Principle of Opportunity Evaluation
Demand
CommercialSuccess
Technology Competition
Strategic Fit
Is there a market? Who are the customers Why do they buy (needs)? Market size, growth rate? Price, cost, profitability?
Can we make it? When the technology ready? Technology competitive? Capability, resource? Technical risk?
Does it fit with our strategy? Strategic fit? Management commitment? Cultural fit? Urgency, priority?
Will it be competitive? Competitive advantages? Sustainability? Potential new competitors? Advent of disruptive
technologies?
25
Small Medium LargeMarket Potential < $500 million $0.5 – 1 billion > $1 billion/yr at 2007
Low Medium HighTime/Urgency Customers will buy the product
(> 4 years)Customers will buy the product
(2 to 4 years)Customers will buy the product
(< 2 year)
Low Medium HighStrategic Fit Not fit with strategies and no
synergies with current business/ technology
Supports the existing Core businesses and
technology
Global leadership,Leveraging core competency
Low Medium HighCompetitive Position Many pre-existing competitors Significant challenges
to sustain advantagesFew pre-existing competitors,
Sustainable advantages
Low Medium HighBiz DevelopmentCapability Little expertise in the area Some expertise in the area Leading expertise in the area
Low Medium HighTechnology FeasibilityDifficult to make or
buy, high technology project risk
Technology is feasible, medproject risk
ComponentsDevices < $1 billion $1-3 billion > $3 billion/yr at 2007
Easy to build, Low technology project
risk
Alternative Approach: Multi-Attribute WeightingExample of Evaluation Criteria and Their Scales
Attribute
26
Criteria Relative Weight
Market Potential 25%
Time/Urgency 25%
Strategic Fit to Company 5%
Competitive Position 15%
Biz Dev. Capability 15%
Technology Feasibility 15% Scale Weight
High 3.0
Above Avg. 2.5
Average 2.0
Below Avg. 1.5
Low 1.0
Example of Evaluation Criteria Weighting and Scale
27
Step 6: Evaluate and Select the Best Refined Opportunities Select an evaluation methodology or tool such as Excel
spreadsheet or Analytic Hierarchy Process (AHP), etc. Evaluate the opportunities with respect to the selection criteria Prioritize the opportunities and select a few opportunities for the
further review Check the priority with intuition or group consensus Conduct a sensitivity (what-if) analysis by changing relative
importance of the criteria and/or ratings of the opportunities Select top-priority opportunities Refine the selected opportunities for the next step
28
An Example of Multi-Attribute Weighting Method
Evaluation of Opportunity IdeasWeight: 0.30 0.25 0.15 0.15 0.10 0.05 1.00
Strategic Market Competitive Technology Time/ TotalCriteria: Fit Potential Position Capability Availablility Urgency Score
Opportunity IdeasOpportunity Idea - 1 2.5 2.0 2.0 1.5 2.0 1.0 0.6750Opportunity Idea - 2 1.0 3.0 3.0 2.0 3.0 2.0 0.7333Opportunity Idea - 3 1.5 1.0 1.0 3.0 2.0 1.0 0.5167Opportunity Idea - 4 3.0 1.0 1.5 1.0 1.5 3.0 0.6083Opportunity Idea - 5 2.0 3.0 2.0 1.5 1.5 2.0 0.7083Opportunity Idea - 6 3.0 2.0 2.0 2.0 2.5 3.0 0.8000Opportunity Idea - 7 1.5 2.5 1.5 1.0 1.0 1.5 0.5417
Scale Weight
High 3.0
Above Avg. 2.5
Average 2.0
Below Avg. 1.5
Low 1.0
Illustrative Only
29
Step 7: Refine the Selected Opportunities and Specify Next Steps
Refine the selected opportunities using SRI’s NABC format:– Consumer/Market/Product/Technical Need– Compelling Business/Technical Approach– Consumer/Company Benefits– Competition
Specify the next step for realizing/implementing the selected opportunities:– Conduct in-depth market research and technology intelligence– Develop executive-summary opportunity profiles (using NABC format) – Develop detailed opportunity profiles for validation, enhancement,
and implementation
30
Development of an Opportunity Profile
31
Opportunity Value PropositionA simple “NABC” approach can be used for profiling, communication,
validation, and promotion of an opportunity
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
Customer needs, market and product needs, or
technical needs
Compelling and unique technical and/or business
approach
Competitive advantages and disadvantages to
technology/market leaders
Current status and issues, and next step or action plan
Customer benefits and company/R&D benefits
32
Introduction Brief description of an opportunity Strategic objectives and goals Time and resource constraints
Key Items Addressed in an Opportunity Profile
Needs Customer (new or unmet) needs Product or service needs Technology needs or push/drivers
Competition Competitors with strengths/weaknesses Compelling competitive advantages Technology gaps, sustainability
Next Steps The current status (IP, R&BD stage) Next step to do Resource requirement, or commitment
Approach The current leaders’ approaches Compelling technical/business approach Modus operandi
Benefits Customer benefits Company benefits Synergy, side effects/benefits
1
65
3 4
2
33
Creating a Compelling Opportunity Pitch
34
Steps in Creating an Opportunity Pitch
Know your audience– What are they trying to accomplish that your idea can
affect?– How do they measure their accomplishment?– Which of those measures would your idea help most to
improve? Package your pitch
– The Hook – what grabs attention– The Core – your content– The Close – request for action or input
The core content is your NABC– …matched against the knowledge of your audience
Practice and improve– Both your message and your delivery– Be natural and sincere– Test yourself: Can your spouse or another significant
person in your life understand what you are saying?
“Elevator Pitch”
A concise summary of your Value Proposition in about 150 to 225 words (omit details!)
35
Making the First Draft Opportunity Pitch
Opportunity ProfileDescription _______________CoreN: ______________A: ______________B: ______________C: ______________Next Steps _______________
The first draft of opportunity pitch can be easily made by rearranging and connecting the components of an opportunity profile.
Try to make a compelling story!
Opportunity PitchHook _______________Core ______________ ______________ ____________________________ Close _______________
36
Example: Pitch for Disposable Hearing AidsFred Fritz: President Songbird Medical Systems
Audience: Opportunity Pitch to a prospective customer
HOOK: Are you having trouble hearing? CORE: For the first time, disposable hearing aids are available. Today, high-quality hearing aids cost several thousand dollars and have to be fitted by a doctor. Because they cost so much, they have to be made out of hard, durable materials that do not fit comfortably or tightly in the ear.
We offer a disposable hearing aid that costs one dollar a day. It has the best-quality digital sound and, because you throw the units away every month, it is made of a soft material that fits comfortably, securely and invisibly in your ear. You can buy them over the counter in your drug store. CLOSE: Would you like to see one?
Source: SRI International
37
Validating and Incubating Opportunities
38
Opportunity Incubation Investigate the selected
opportunities Develop opportunity profiles with
compelling opportunity pitch Identify and secure sponsors
and/or collaborators for value creation
Validate the opportunities Evolve the opportunities into
important ones with higher value creation potential and commercial success
Iterate the phases till ready to commit with confidence
Trends, SWOT
IdeaConcept
Resurrection
New Challenge
Refinement
Concept
Refinement
New Challenge
Well-aligned with•Strategic Vision•Customer Needs
•Organization•Incentive, Reward
Internal and External Sources
R&BD
R&BD
“Failure” Mode
Customer Customer ValueValue
CreationCreation
Customer Customer ValueValue
CreationCreation
Validation
Validation
Trends, SWOT
IdeaConcept
Resurrection
New Challenge
Refinement
Concept
Refinement
New Challenge
Well-aligned with•Strategic Vision•Customer Needs
•Organization•Incentive, Reward
Internal and External Sources
R&BD
R&BD
“Failure” Mode
Customer Customer ValueValue
CreationCreation
Customer Customer ValueValue
CreationCreation
Validation
Validation
39
Opportunity Validation and Prioritization
Demand
Technology Competition
Who are the customers?Why do they buy (needs)?
Market size and growth rate?How much are they willing to pay?
When will the technology be ready?Is the technology competitive?
What is the technical risk?What is the cost?
What are differentiation factors?What are competitive advantages?Are they sustainable in long-term?
CommercialSuccess
Success = SDemand x STechnology x SCompetition x SStrategic-Fit
Must pass the four tests: Will there be markets? Can we make it? Will we be competitive? Does it fit to our strategy?
Strategic Fit
SustainableLeadership
Does this fit with the company strategy?Is the company capable of executing this?What is the long-term profitability?
40
Opportunity Incubation
Customer ValueCreation55
CommercialDevelopment44
Research andDevelopment22
Research OpportunityDiscovery11
CommercializationOpportunity Discovery33
Customer ValueCreation55
CommercialDevelopment44
Research andDevelopment22
Research OpportunityDiscovery11
CommercializationOpportunity Discovery33
Customer ValueCreation55
CommercialDevelopment44
Research andDevelopment22
Research OpportunityDiscovery11
CommercializationOpportunity Discovery33
Customer ValueCreation55
CommercialDevelopment44
Research andDevelopment22
Research OpportunityDiscovery11
CommercializationOpportunity Discovery33
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
ImportantNeeds
UniqueApproach
CustomerBenefits
DynamicCompetition
Next Steps,Action Plan
FlexibleStage-Gate Approach
Validating and Incubating Opportunity with Repeated Use of NABC Approach throughout the Whole R&BD Process
41
Next Step: Action Plan Develop strategic direction for how to create value of the
selected opportunity Develop strategic roadmap for value creation Identify potential applications, new products or services for
both existing businesses and new business areas Identify key success factors including both technical and non-
technical factors Develop milestones for key internal R&BD activities and
signpost for uncertain key external driving forces
42
Technology Strategy Profile Based on Opportunity Profile
To develop an opportunity-driven strategic technology roadmap, a technology (strategy) profile will be developed based on the
opportunity profile as the first of the TRM process
Description Need Approach Benefit Competition Next steps
Technology Options Best Technology Acquisition Strategy Milestones Product/Service
Roadmaps Key Success Factors
Opportunity Profile Technology Profile
43
Tech
nolo
gy S
trat
egy
Prof
ileOpportunity Roadmap Concept
Technology Requirements
Products/ Services &Key Success Factors
Products/ Services 1
A B C
Products/ Services 2Products/Services 1
A B C
Key Success Factors1. .…….2. ……..3. ….
Necessary Techs1. .…..2. .…..3. .….
Opportunity Roadmap
Products/Services
Key SuccessFactors
Technology
Now By 2010 By 2013
A B C
A B C
1 2 3 4 ?
top related