entepreneurship for engineers

Entepreneurship

Back ground

• B.S Electronics and Communication Engineering

• Master in ICT entrepreneurship ,

• SSES Alumni

• PhD Candidate at Industrial Economics and Management Division at KTH

• Previously Software Developer

• Now business developer for Virtway.com and www.icyou.se

Before we start

What is Entepreneurship?

The process of coordinating resources to exploit or take advantage of opportunities that exists in the market or are created by innovation in an attempt to create value. (Brown, 1994)

Entrepreneurship is about

• Creating value

• Finding Opportunity window

• In Current or new markets

• Providing solution

• Innovation

• Market/Customer

What Entepreneur Do?

• Feels / Finds a Pain/ Opportunity window

• Creates a Solution

Can you tell me something that you own or use but do not need?

Let’s do a test

• Please count F’s

Count the F’s

© 2013 StockholmCircle - Serdar Temiz 9

FINISHED FILES ARE THE RE-

SULT OF YEARS OF SCIENTI-

FIC STUDY COMBINED WITH THE

EXPERIENCE OF YEARS.

Count the F’s

© 2013 StockholmCircle - Serdar Temiz 10

FINISHED FILES ARE THE RE-

SULT OF YEARS OF SCIENTI-

FIC STUDY COMBINED WITH THE

EXPERIENCE OF YEARS.

Can your read this?

© 2013 StockholmCircle - Serdar Temiz 11

i cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno't mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is taht the frsit and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it whotuit a pboerlm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt! if you can raed tihs forwrad it.

Result:

• Brain is very powerful

• If trained correctly brain can see opportunities

• You can gain entepreneurial perspective in the same way

Example

• Pessimistic

• Optimistic Zamzam

Votka

Soda

Orange Juice

Entepreneur

What Entepreneurs do- in detail

• 1-Feels / Finds a Pain/ Opportunity window

• 2-Propose a Hypothesis/ a Value – An unproven proposition

– A possible solution to a problem

– Guess

• 3-Test it

• 4-iterate to 1 until it proves to meet customer expectation

• 5-Provide Solution and scale it

Where Entepreneur Jumps in?

product / service

need/ expectation

Find a Customer-I

• Why?

• Who is your customer?

Grave, School, hospital, apotek, free newspaper

• Can everyone be your customer?

• "people who want to buy a flat,"

• "anyone needs job"

• “Everyone who goes to university”

Find a Customer-II

• Find a customer for solving a pain

• Use the Customer Profile

• Describe who is making purchasing decision?

IT ? Operations Group? Management?

• Make sure they are happy

• Market is important but

-do not only think market

• Billion dollar market does not start in few minutes

Value Proposition

• a bundle that meets that meets a customer's needs or solve his/her problem.

• benefits can be tangible and intangible

• Reason why customers pick one business or another.

• can be – innovative, new disruptive offer

– similar to existing offers but just added feature or attribute in some sort of way

Q’s to answer – Value Proposition

• What pain do we solve for customer?

• What do we deliver for customer?

• What value do we develop for customer

• Which need of customer do we satisfy?

Some Elements that may add to value

• newness

• customization

• getting job done

• support

• price

• design • status/ brand • Accessibility • risk deduction • usability

Q’s for Customer

IDENTIFIABLE – what distinguishes them? MEASURABLE – how many belong to your target segment? REACHABLE – how to reach, communicate with each segment WILLING– do they want it? ABLE– they want but can they afford it?

Q’s for Customer - Macro Level

• Population size • Population character • Disposable income levels • Educational background • Primary languages • Infrastructure • Regulations • Political affiliation • And so on…

Simple Business Model

Value Proposition

Revenue Model

Production Model

Delivery Model

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MVP

• Minimum set of features that is enough to satisfy some set of customers (usually early adopters)

Slice- which part of it/ how to rotate it?

Pivoting

• Changing important part of business model

• - can be simple: chancing pricing

• -can be complex: target customer, user needs change, feature set changes, new distribution channel

Keep In Mind -Paradox

• Customer is important but you can not give all they want

• Learn to stay No,

• Learn to focus

• Learn to ”change and adopt”

• They may not know what they want: buying process is mysterious

Selling T-shirt?/ Online?

Story

In 2003, Karin Stenmar needed promotional tees for the jazz club where she worked – just 100 simple organic cotton t-shirts,

Her Problem: T-thirst were very cheap

Uhh! Is it A problem?

Hypothesis Development

• Start to ask herself: • who is producing,

• what is used to produce,

• how is production environment

• Teamed with Annika Axelsson

• Hypothesis : can we produce and sell clothes without harming the environment and human exploitation

What did they mean?

• Organic product ,

• reasonable working hours,

• not minimum but wages to live on,

• the opportunity to co-determination

• the right to organize

Value Proposition

actual raw material, organic and fair trade cotton processed in a sustainable manner through the whole chain from seed to finished product

Don't Eat Macaroni

• Started production unit based in Kadawatha, Sri Lanka

• Factory's first employee, Mrs. Rukmani, now has its own factory with decent conditions

Go back to our question:

• Notice: I did not talk anything about tech

• It is all about finding and satisfying customer

While creating sustainable business model

Work in Groups- Q1

In groups of three, name at least three products / services and explain:

• What was the problem?

• Who is/was their initial target customer?

• What is their value proposition?

• How did they solve the problem?

Work in Groups- Q2

• In groups of three, identify three problems facing students at YTU.

• Come up with suggestions on how to solve it

• You have 45 minutes to prepare for a discussion.

• Include your team name, team members, problems and suggestions on how to solve!