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Entrepreneurship
&New Venture
CREATIVITY
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Remember Entrepreneurs Are:Remember Entrepreneurs Are:
InnovativeInnovative
CreativeCreative
ExcellenceExcellence
EgosEgos
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The Entrepreneurial VisionThe Entrepreneurial Vision
InnovationInnovation not imitationnot imitation
Propensity to ActionPropensity to ActionMarketing honestyMarketing honesty
Drive for dominanceDrive for dominance
Vision beyond the mundaneVision beyond the mundane
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Finding ideas for newFinding ideas for newventuresventures
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Viable Products/ServicesViable Products/Services Need more than just good science orNeed more than just good science or
technologytechnology
Need an understanding of marketNeed an understanding of marketneeds, fears, and wants even at theneeds, fears, and wants even at theearly stages of developmentearly stages of development
Require an understanding of theRequire an understanding of thecompetitivecompetitive londscapelondscape and the externaland the external
environments in each market.environments in each market.
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FOUR FACTORSFOUR FACTORS
Buyer UtilityBuyer Utility
Strategic PricingStrategic Pricing Business ModelBusiness Model
Adoption HurdlesAdoption Hurdles
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BUYER UTILITYBUYER UTILITYIs there a compelling reason forIs there a compelling reason for
customers to buy a new product orcustomers to buy a new product orservice? Utility and technical advanceservice? Utility and technical advance
are not the same.are not the same.
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BUSINESS MODELBUSINESS MODEL
How can a company profitably deliver theHow can a company profitably deliver thenew product, or service idea?new product, or service idea?
Are costs, capabilities and pricingAre costs, capabilities and pricingappropriate to the task?appropriate to the task?
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STRATEGIC PRICINGSTRATEGIC PRICING
How can a company price its newHow can a company price its new
product or service to attract theproduct or service to attract themass buyers?mass buyers?
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ADOPTION HURDLESADOPTION HURDLES
Are there reasons why an idea mayAre there reasons why an idea maynot be accepted by customers,not be accepted by customers,employees, strategic partners,employees, strategic partners,
regulatory agencies, insurance firms,regulatory agencies, insurance firms,or society?or society?
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EXAMPLES:EXAMPLES:
Engineering marvelEngineering marvel
Diverse functionsDiverse functions Theoretically could do almostTheoretically could do almost
anythinganything
Reality it could do very littleReality it could do very little Customers did not know how to useCustomers did not know how to use
Lacked attractive software titlesLacked attractive software titles
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BUYER UTILITY LEVERSBUYER UTILITY LEVERS
Customer productivityCustomer productivity
SimplicitySimplicity ConvenienceConvenience
Risk mitigationRisk mitigation
Fun and ImageFun and Image Environmental friendlinessEnvironmental friendliness
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Customer productivityCustomer productivity
What is the biggest block toWhat is the biggest block to
customers productivity?customers productivity? How does your product or serviceHow does your product or service
eliminate it?eliminate it?
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Customer productivityCustomer productivityHoovers leap in suction powerHoovers leap in suction powermade vacuum cleaning quickermade vacuum cleaning quicker
and easier.and easier.
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SimplicitySimplicity
What is the greatest source ofWhat is the greatest source of
complexity for customers?complexity for customers? How does this innovative product orHow does this innovative product or
service dramatically simplify this?service dramatically simplify this?
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SimplicitySimplicity
Intuits Quicken software eliminatedIntuits Quicken software eliminatedaccounting jargon from personalaccounting jargon from personal
financial accounting.financial accounting.
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ConvenienceConvenience
What is the greatest inconvenienceWhat is the greatest inconvenience
for customers or customer groups?for customers or customer groups? How does the innovative product orHow does the innovative product or
service remove the hassle?service remove the hassle?
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ConvenienceConvenience
Virgin Atlantic Airlines businessVirgin Atlantic Airlines businessclass doorclass door--toto--door limousine servicedoor limousine servicehelped ease the hassle of air travelhelped ease the hassle of air travel
for the most frequent and highestfor the most frequent and highestpaying travelers.paying travelers.
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Risk MitigationRisk Mitigation
What are the greatest uncertaintiesWhat are the greatest uncertainties
buyers face?buyers face? How does this innovative product orHow does this innovative product or
service eliminate these risks?service eliminate these risks?
What new risks does this product orWhat new risks does this product orservice create?service create?
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Risk MitigationRisk MitigationEnrons commodity swaps andEnrons commodity swaps andfutures contracts stripped thefutures contracts stripped the
volatility out of gas and electricvolatility out of gas and electricprices before they got caught up inprices before they got caught up in
their financial troubles.their financial troubles.
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Fun and ImageFun and Image
What are the biggest blocks toWhat are the biggest blocks to
enjoyment and image?enjoyment and image? How does this innovative product orHow does this innovative product or
service add positive emotion orservice add positive emotion orstatus to the life of the user?status to the life of the user?
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Fun and ImageFun and Image
Starbucks chic coffee bars are muchStarbucks chic coffee bars are muchmore than a place to buy a hot drink.more than a place to buy a hot drink.
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Environmental friendlinessEnvironmental friendliness
What causes the greatest harm toWhat causes the greatest harm to
the environment?the environment? How does the innovative product orHow does the innovative product or
service reduce or eliminate this?service reduce or eliminate this?
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EnvironmentalEnvironmental
friendlinessfriendlinessPhillips Alto light bulb uses lessPhillips Alto light bulb uses less
mercury than earlier designs whichmercury than earlier designs whichmeans eliminating the costs tomeans eliminating the costs to
businesses of special dumping sites inbusinesses of special dumping sites inEurope.Europe.
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TWELVE STAGES INTWELVE STAGES INTHE CREATIVETHE CREATIVE
PROBLEMPROBLEM--SOVLINGSOVLING
PROCESS.PROCESS.
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KEYS TO PROBLEMKEYS TO PROBLEMSOLVINGSOLVING
Different tasks call for variations in theDifferent tasks call for variations in the
phases,phases,The 12 steps comprise the complete cycle,The 12 steps comprise the complete cycle,You may bypass some phases or recycle.You may bypass some phases or recycle.
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DEFINING THE ISSUEDEFINING THE ISSUE
Go beyond mere symptoms to theGo beyond mere symptoms to the
corecore NeedNeed
Want, orWant, or
Fear.Fear. Isolate what youre looking for orIsolate what youre looking for or
focus.focus.
FOCUS, FOCUS, AND FOCUSFOCUS, FOCUS, AND FOCUS
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DATADATA--GATHERINGGATHERINGEXPERTISEEXPERTISE
Chance favors the expert.Chance favors the expert.PasteurPasteur
Find pertinent facts.Find pertinent facts.
Look at the source of the data. DontLook at the source of the data. Dontexpect certainty.expect certainty.
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ANALYZED
ATAANALYZED
ATA
Use wellUse well--established logical models,established logical models, Blend with intuitive techniques.Blend with intuitive techniques.
Dont forget your professionalDont forget your professional
training, nor be imprisoned by it.training, nor be imprisoned by it.
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GENERATE NEW IDEASGENERATE NEW IDEAS
Unbundle your assumptions aboutUnbundle your assumptions about
how things ought to be.how things ought to be. Through brainstorming or otherThrough brainstorming or other
methods, produce a large quantitymethods, produce a large quantity
ofof possible solutions.possible solutions.
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INCUBATIONINCUBATION
Dont just do something;Dont just do something;
stand there for a while.stand there for a while.
Allow ideas time to hatch or ferment.Allow ideas time to hatch or ferment.
But, dont stand forever waitingBut, dont stand forever waitingeither.either.
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SYNTHESIS =AH HA!=SYNTHESIS =AH HA!=ENLIGHTENMENTENLIGHTENMENT
In other words: The EurekaIn other words: The Eurekaevent.event.
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SELECTING orSELECTING or
DECIDINGDECIDING
Which idea will youWhich idea will you
implement?implement?
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SIMU
LATIO
N &SIMU
LATIO
N &VERIFICATIONVERIFICATIONWhat are the risks?What are the risks?
In a low risk situation, you might skipIn a low risk situation, you might skipthis step.this step.
When building a passenger aircraft,When building a passenger aircraft,
new drug, or life impacting idea younew drug, or life impacting idea youdare not skip.dare not skip.
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ORGANIZATIONALORGANIZATIONALACCEPTANCEACCEPTANCE
People support what they help create.People support what they help create.Involve people early on.Involve people early on.
Great ideas will die without the support ofGreat ideas will die without the support ofkey decisionkey decision--makers.makers.
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IMPLEMENTATION &IMPLEMENTATION &
EVALUATIONEVALUATIONTake action on the chosen idea, henceTake action on the chosen idea, hence
the meaning of the term Entrepreneur,the meaning of the term Entrepreneur,to enter and to do.to enter and to do.
Determine the effects. What are theDetermine the effects. What are thepotential outcomes: profits,potential outcomes: profits,
sustainability acceptance, etc.sustainability acceptance, etc.
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APPLY CREATIVE DECISIONAPPLY CREATIVE DECISIONMAKING TO THEMAKING TO THE
DEVELOPMENT OF YOURDEVELOPMENT OF YOUR
BUSINESS CONCEPT.BUSINESS CONCEPT.
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Think of these issues whenThink of these issues when
you read the courseyou read the course
material, when we discussmaterial, when we discuss
issues in class, etc..issues in class, etc..
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ELEVATOR PITCHESELEVATOR PITCHES
Can you explain your idea in 3Can you explain your idea in 3minutes?minutes?
Is your idea a solution looking for aIs your idea a solution looking for aproblem?problem?
Are you creating bigger problemsAre you creating bigger problems
than you are solving?than you are solving?Why should others be interested inWhy should others be interested in
your idea?your idea?
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How to keep the ideas coming..How to keep the ideas coming..
Put a technology to other usesPut a technology to other uses
Modify, adaptModify, adapt Magnify (bigger, stronger, higher)Magnify (bigger, stronger, higher)
Substitute (what else instead, whoSubstitute (what else instead, who
else instead)else instead) Rearrange, reverse or combineRearrange, reverse or combine
Source: The Complete Idiots Guide to New Product Development
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QUESTIONS?QUESTIONS?