aps1015h class 10 - design thinking 2
TRANSCRIPT
APS 1015H: Social Entrepreneurship
Class 10: Design Thinking – Part 2
Wednesday, November 23, 2011
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Instructors: Norm Tasevski ([email protected]) Karim Harji ([email protected])
© Norm Tasevski & Assaf Weisz
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© Norm Tasevski & Assaf Weisz
Agenda
• Unreasonable Institute • Preparing for your Pitches • Design Thinking – Part 2 • Review of the course • Next week
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Your Investment Pitches…
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© Norm Tasevski & Assaf Weisz
Pitch guidelines
• Due Dates – Social Pitch: Midnight on Sunday, Nov 27 – Angel Pitch: Midnight on Sunday, Dec 4
• Format – PowerPoint deck – 1 page Précis
• Time Allotment – 12 min presentation (strict) – will give you 5 and 2 minute
warnings – 8 min Q&A
• Grading – To be done by Norm/Karim – Judges will inform us, but not assign your grades
• Feedback from Judges – Norm/Karim will email our/judges feedback shortly after the
class to integrate into angel investor pitch 5
© Norm Tasevski & Assaf Weisz
Timing
• Arrive by 8:00!!
• We will go in order – Group 1 goes first, Group 2 goes second, etc
• At the end of the pitches, the judges will deliberate (for 10 minutes)
• Judges will then provide feedback to the entire class (Karim and I will provide individual group feedback)
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© Norm Tasevski & Assaf Weisz
Advice for your pitches
• Focus on the key components of the business model, and highlight the key financial #s – Can you clearly explain how your business works? How it
makes money? How it generates social/environmental change?
• Comfortably stick to the time allotment – In your practice, aim to deliver your presentation in 10-11
minutes
• Anticipate the investor questions – If you were investing your own money into the business,
what would you care to know about the business model?
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© Norm Tasevski & Assaf Weisz
Social Investment Pitch…
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• Overview and mission • Management and
Advisors • Problem
– social issue being addressed
• Size of the problem – how big is the social issue
• Solution – Here’s how it works…
• Value proposition – Inc. social benefit
• Business model • Competitive advantage • Collaboration/
partnerships • Marketing and Sales • Financial projections • Financial requirements
© Norm Tasevski & Assaf Weisz
Angel Investment Pitch…
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• Overview and mission • Management and
Advisors • Customer problem • Market opportunity/size • Solution
– Inc. social issue being addressed
• Value Proposition • Competitive advantage • Where the solution fits
• Business model • Marketing and sales • Financial projections • Financing requirements
© Norm Tasevski & Assaf Weisz
PowerPoint tips
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© Norm Tasevski & Assaf Weisz
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Design Thinking - Part 2
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The Design Thinking Process
13 Source: IDEO (www.ideo.com)
Week 4 Today
Experimentation
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© Norm Tasevski & Assaf Weisz
“Experimentation” – Create a Prototype
15 Source: IDEO (www.ideo.com)
Step 1:
– Build a storyboard – Diagram the “story”
– Tips: • Make simple sketches! • Create a narrative (e.g.
“here’s how it works…”) • Focus on the experience
of the user/customer
© Norm Tasevski & Assaf Weisz
“Experimentation” – Create a Prototype
16 Source: IDEO (www.ideo.com)
Step 2:
– Build a prototype!! – Tips:
• Build a “good enough” prototype (both for products and services)
• Give it to others to use/experience
• Watch people use/experience it (don’t just talk to them about it)
© Norm Tasevski & Assaf Weisz
“Experimentation” – Create a Prototype
17 Source: IDEO (www.ideo.com)
Step 3:
– Get feedback on the prototype
– Tips: • Figure out what features
you want to test • ID the most important
questions you want answered
• Figure out where and how you want it tested
Evolution
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© Norm Tasevski & Assaf Weisz
“Evolution” – Build an Experience
19 Source: IDEO (www.ideo.com)
Step 1:
– Integrate feedback into new prototype versions
– Tips: • Evaluate the relevance of
feedback • Build the next “good enough”
prototype • Repeat until you have
something your users/customers are happy with
© Norm Tasevski & Assaf Weisz
“Evolution” – Build an Experience
20 Source: IDEO (www.ideo.com)
Step 2:
– Design a final product/service
– Sell it!! – Tips:
• ID the resources you need (materials, funds, time and people)
• Pitch! • Build partnerships • Plan next steps
Break
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Course Summary…
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Motivation
Innovation
Resourcefulness
Risk Taking
How is Social Entrepreneurship Different?
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© Norm Tasevski & Assaf Weisz
What Motivates The Social/Environmental Entrepreneur?
“…it was an epiphanal experience…” Ray Anderson, Interface Carpets
“I heard the same story again and again. Someone had experienced an
intense kind of pain that branded them in some way. They said, ‘I had’ to do
this. There was nothing else I could do.”
Jody Jensen, Ashoka
“I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of
hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that
kind of situation.” Mohammed Yunus, Grameen Bank
“…that made a real impression on me…”
Jeff Skoll, eBay, Skoll Foundation, etc.
© Norm Tasevski & Assaf Weisz
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-Coffee -Food -Merchandise
-Coffee shops
-Kiosks
-Personal (Baristas) -Online, print
ads -Adults that
want a place to
relax, work quietly, meet
friends, etc
-Locations -Coffee making
equipment -Baristas
-Coffee roasting/brewing
-Processing
orders
-Farmers -Suppliers
-Staff training
-Asset acquisition -Marketing
-In-store Purchases
© Norm Tasevski & Assaf Weisz
Tip…
• Be a Business Model “Alchemist” – You need to go through the business model process many times in order to figure out which model best fits
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Cost Drivers and Revenue Sources !
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-???!
-???!
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Where does HR Fit?
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Where does Marketing Fit?
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Embedding “Social” across the Business Model
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For-Profit Corporation!
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Non-Profit Corporation!
Charity!Partnership!
Sole Proprietorship!
Co-Operative Corporation!
© Norm Tasevski & Assaf Weisz
MORE DEBT-LIKE
36 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx
Financing Options – Over the Social Entrepreneurship “Life Cycle”
IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT
GRANTS
MORE EQUITY-LIKE
SOCIAL VENTURE CAPITAL FUNDS
ANGEL INVESTMENT VENTURE CAPITAL
PROGRAM-‐RELATED INVESTMENT/RECOVERABLE GRANTS
FORGIVABLE LOANS
SOCIALLY RESPONSIBLE INVESTMENT FUNDS
BELOW-‐MARKET DEBT
MARKET-‐RATE DEBT
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Aligning Supply and Demand
Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx
© Norm Tasevski & Assaf Weisz
Lessons from the Road Trips
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© Norm Tasevski & Assaf Weisz
Lessons from Guest Speakers
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© Norm Tasevski & Assaf Weisz
Next Week
• Be here for 8:00am!!
• Deliverables – Pitches due at Midnight
Sunday – 1 page Précis by
Midnight Sunday
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