idea and opportunity mapping by- rahul jain. searching new ideas guided by our broad objectives...
TRANSCRIPT
Idea and Opportunity Mapping
By- Rahul Jain
Searching New Ideas
Guided by Our Broad Objectives Brainstorm to generate solutions(Environmental Analysis) Shortlist Ideas for detailed scrutiny
1. Develop ways of evaluating ideas (yours and others’) (5Qs)
2. SWOT Analysis3. Other constraints
Objectives
To Increase Profits To Minimize Losses To Capture new Market To increase the Wealth To work for Philanthropy To Introduce new Design/Technology
Goodknight Hotmail Ceasefire
Sony Levis Barbie
DisneyLand Wal-Mart Tommy Hillfiger
Some have focused on certain links
For product features: Sony Walkman, Apple Computer, Barbie Doll, Hotmail, Disneyland, Harry Potter
For information collection process: Internet based Ebay, Amazon, Google
For buying process: Amazon, Dell, widely distributed and well displayed products
For payment process: Visa and Master Cards
For delivery process: DHL’s jumbo boxes, couriers
Sources of New Opportunities Customer-route: When customer
dissatisfaction is high; appropriate also
when investment in technology
development/application not yet made
Product-route: Appropriate when product
or process developed and attractive
application required
Sources of New Opportunities
New Applications of existing products
/technology (Chat)
Technology integration (call taxi,
mobile)
Sources of New Opportunities Industry and market changes
Growing healthcare awareness (and concern to lengthen
life) created bottled water, HQ packaging, fitness, yoga..
…
When industry grows quickly, established firms
concentrate on defending what they have B&W TV manufacturers in India, HMV
Neglected but fast-growing segments offer excellent
opportunities (Budget hotels/ Retailing)
Sources of New Opportunities
Demographic changes Managing old age creating many
opportunities
Growing higher education needs and State’s
helplessness
Growing security concerns in offices, homes
Interest in comfort, travel and leisure
Do you agree that basically we are….
And
Any product/service that helps us
achieve these needs have potential
• Lazy
• Pleasure seeking
• Comfort seeking
Scanning the Environment
International Environment
Domestic Environment
Macro Environment
Sectoral Analysis
SWOT Analysis
Scanning the Environment
International Environment International developments affect all businesses
World is a Global Economic village
Integrated economies
Increased susceptibility to external happenings
Internationalization, Digitization, Outsourcing
One has to understand the impact of these factors
See more opportunities than threats.
Scanning the Environment Political Environment
Stable & conducive political climate Government policies Extensive institutional framework
Technological Environment Level of technology Rate of change in technology
Socio-Cultural Environment Customs, Norms and Traditions of the society Its crucial for the operations of MNCs
Scanning the Environment
Legal Environment Laws of the country Labor laws and Legal redressal system Copyright acts & Trademark infringement
Economic Environment
Factors for Industry attractiveness
Market growth rate
Market size
Demand variability
Industry profitability
Industry rivalry
Global opportunities
Macro-environmental factors
Scanning the Environment
Sectoral Analysis Study the sector or Industry conditions Study the industry attractiveness Constraints or thrust on technology, manpower & raw material
SWOT Analysis Helps understand own skills & abilities Knowledge & experience Helps in understanding the competition
SWOT Analysis- Strengths
Experience & Expertise Financial Position Good Contacts Capital raising capacity Collaborations
Weaknesses
New Unfamiliar technologies Inability to raise huge investments Lack of Experience Lack of trained personnel Lack of Economies of Scale
Opportunities
Emergence of New technologies New Products with new market Special financing Schemes Government Incentives Rapid growth in market
Threats
Competition Poor state of Economy Change in technology Change in Habits New Products and services
Screening Ideas: Are they Opportunities?5 Questions
1. What important customer problem can you solve?
2. How are you going to do it?3. How many customers are there that are
willing to buy from you?4. Why can only you provide the solution?5. How can you defend against others?
Ask these questions BEFORE somebody else does!
Screening an Opportunity:5 Questions
1. What important customer problem can you solve?
How valuable?
How painful?
Remember, you need to change somebody’s behavior to buy your product.
Screening an Opportunity:5 Questions
2. How are you going to do it?
Business model:Product
Distribution
Location
Technology/Innovation
Service
Brand
Screening an Opportunity:5 Questions
3. How many customers are there that are willing to buy from you?
How many customers are there? (Market size)
How many will buy from you? (Market share)
Who will be your first customer (besides your Mom)?
Who will be your 100th?
Screening an Opportunity:5 Questions
4. Why can only you provide the solution?
How are you unique? What do you provide that nobody else can?
Screening an Opportunity:5 Questions
5. How can you defend against others?
Location, brand, patent (or other IP), great service, great taste, great fashion sense….
Self-Opportunity Match
Self
Previous Experience (knowledge, skills)
Access to new knowledge, skills
Customer
Problems (existing, emerging)
Level of dissatisfaction (criticality, discontentment)
Solution to Customer
Dissatisfaction
Financial Attractiveness Strategy (source, cost, availability, adequacy)
Marketing Attractiveness Strategy (size, Entry, Sustenance)
Entrepreneurial Capability Strategy (Attitude, Skills, Knowledge pool/network – individual/group)
Technical Attractiveness Strategy (Existing/new technology and products/services)
Market Attractiveness Identify areas of high customer
dissatisfaction
Assess market size
Assess challenges in accessing
customers
Assess competitive attractiveness
Overall Attractiveness Determine technical feasibility
Estimate financial viability
Team quality is critical
Assess entrepreneurial resources (ASK)
Assess fit with personal preferences and
aspirations
What & how big are the gaps in capabilities
Can the gaps be filled? How? Implications for success
Remember, EXECUTION is key to success Iteratively balance the venture tripod (mkt,
tech, fin) and entrepreneur (your team’s) at every stage
Detached passion Prepare a dynamic Business Plan
Pitfalls In Selecting New Venture Lack of Objective Evaluation No Real Insight into the Market Inadequate Understanding of
Technical Requirements Poor Financial Understanding Lack of Venture Uniqueness Ignorance of Legal Issues
Finalizing a Product/Service Combine opportunities provided by the environment with
your strengths
In terms of knowledge, skills, experience, etc
Analyze the industry forces
Now, finalize the product/service
The proposed product/service must be compatible with:
The capability
Resources Available
Need of society
Criteria in Selecting Ideas
Investment Rate of return Implementation Market Size Risk Uniqueness Expected Life Flexibility Environment considerations Effectiveness
Total Score on Each parameter ( 1 to 5 – Poor to Good)
Log I:Presentation IVth Week- Close to Heart Idea & SWOT Analysis Prepare for a 3 minute- 5 minute presentation
on the idea that has been finally chosen. Use the 5Q format as a guide. Be prepared to defend your ideas in front of a
group Provide all the references and intext citations
Email submission and upload on the internet: 2 days before the class
Email id: [email protected]