teaching and encouraging entrepreneurship and innovation belarus universities dr. kent millington...
TRANSCRIPT
![Page 1: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/1.jpg)
TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND
INNOVATION
Belarus Universities
DR. KENT MILLINGTONOCTOBER 2012
![Page 2: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/2.jpg)
TOPICS OF DISCUSSION
• Innovation• Opportunity Recognition• Managing Innovation• Technology Commercialization• Developing New Business• Business Model canvas
![Page 3: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/3.jpg)
Entrepreneurship Risks and Rewards
• Business Failure• Unpredictable Business Conditions• Long Hours• Product/Service compete on Price only• Imitation strategy
Risks:
![Page 4: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/4.jpg)
Entrepreneurship Risks and Rewards
• Financial• Emotional – building a business• Pride• Recognition• Flexibility• Creativity
Rewards:
![Page 5: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/5.jpg)
ENTREPRENEURSHIP: THE ART AND SCIENCE OF BUILDING VALUE
ART: CREATIVITY; ENERGY; FEEL; INSIGHT
SCIENCE: ANALYSIS; DISCIPLINE; SYSTEMATIC APPROACH
![Page 6: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/6.jpg)
Identify a need or opportunity
Create a solution - Innovation
Implement solution to create value
Harvest or other long-term strategy
ENTREPRENEURSHIP
![Page 7: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/7.jpg)
Two Kinds of Entrepreneurship
1. Opportunity – based2. Necessity – based
Young people 25-34 are dominant participants in entrepreneurship.
![Page 8: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/8.jpg)
Two Important Considerations for Entrepreneurs
• INNOVATION / CREATIVITY
• OPPORTUNITY IDENTIFICATION
![Page 9: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/9.jpg)
Continuum of Innovation
Imitative Incremental Evolutionary Radical Revolutionary
The secret to innovation is uncovering an unmet consumer need and the filling it in an innovative, creative way.
![Page 10: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/10.jpg)
Continuum of InnovationImitative: copies something well-known and acceptedIncremental: small improvements; faster, better,
cheaperEvolutionary: new to firm but not to world (i.e.,
technologies in new places)Radical: technologies that give large performance
improvements or lower costsRevolutionary: new to individual, firm, and the world
Best Opportunities between Incremental and Radical
![Page 11: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/11.jpg)
Latest science and technology
Needs in society and the marketplace
Creativity• Production of novel and useful ideas• Discovery of opportunities• Output: new ideas
Innovation• Refining, evaluation and first prototypes of the new ideas• Evaluation of opportunities• Output: prototype
Entrepreneurship• Creation of value in the marketplace• Exploitation of opportunities• Output: new product, service, or process
The Creativity-Innovation-Entrepreneurship Chain
![Page 12: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/12.jpg)
Types of Innovation1. Product: early stage of product life cycle,
innovations are frequent. As rate of product innovation decreases, process innovation increases. (What we make)
2. Process: makes manufacturing more efficient through automation, lowering costs. (How we make it)
Product /Service innovation creates much more new wealth than process innovation!
![Page 13: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/13.jpg)
Three Characteristics of Opportunity
NewnessPotential Economic ValuePerceived Desirability
Opportunity implies something that has not existed or been available before, that can yield potential economic gains, and whose development is consistent with legal and/or moral standards of the society in which it occurs.
![Page 14: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/14.jpg)
•Alertness •Social Network Ideas•Prior Knowledge
-Of markets-How to service markets-Customer problems-Accumulation over time
Example: Focus Media in Shanghai
A Framework
![Page 15: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/15.jpg)
Basic Propositions Concerning Opportunities
Proposition 1: Opportunities emerge from changes in knowledge, technology, economic, political, social, and demographic conditions.
Proposition 2: Recognition depends on previous experience which enables people to see links between previously unconnected changes, knowledge, or events.
![Page 16: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/16.jpg)
Product Opportunity GapSocial: Social and Cultural trends, Historical trends
Economic:State of the Economy, Level of Disposable Income, Changing Investment Opportunities
Technology:Emerging technologies, Re-evaluating existing technologies
Product Opportunity Gap
![Page 17: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/17.jpg)
Discontinuous opportunities: The source of radical innovation
NewMarkets
ExistingMarkets
Existing Products/Technology
New Products/Technology
Adjacent
Opportunities
Exploit current assets
and capabilities
Status QuoGrow marketshare and profit(business expansion,not new businessdevelopment)
Adjacent
Opportunities
Increase primary
market demand
Discontinuous
Opportunities
Create new markets
and new products
![Page 18: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/18.jpg)
… which create disproportionate wealth relative to adjacent opportunities
14%
86%Adjacentopportunities
Discontinuousopportunities
38%
62%
61%
39%
Type of newBusiness launch Revenues Profits
Source: Chan & Mauborgne (1997)
![Page 19: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/19.jpg)
Managing Technology - Discovery to Application
Scientific Discovery
Invention
Innovation
Technology Application
![Page 20: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/20.jpg)
Sustaining vs. Disruptive Technologies
Sustaining technologies focus on improvements of importance to existing customers. Existing companies best with incremental innovation.
Disruptive technologies create a new value proposition, reach new markets and customers. New companies better at disruptive, radical innovation.
![Page 21: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/21.jpg)
• Competitive Advantage– Something that the firm does better than any of
its competitors.– Goal: To have a sustainable competitive
advantage• Requires that the advantage:
– Must be valued by customers– Not easily duplicated by competitors
Creating Competitive Advantage
![Page 22: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/22.jpg)
Technology and Competitive Advantage
Technology
Competitive Dynamics
Competitive Advantage
Value Creation
![Page 23: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/23.jpg)
Major Strategic Questions
• Should we create our own new technology and innovations internal to the firm?
OR• Should we acquire technology from
external sources like acquisition or strategic alliances?
![Page 24: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/24.jpg)
Dimensions of Internal Innovation
1. Goal of internal innovation is for the firm to outperform its competition.
2. Internal innovation involves many individuals, capabilities, and resources.
3. Resources are critical to the innovation process. (Human, Physical, Financial)
![Page 25: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/25.jpg)
Reasons for Using External Innovation:1. The firm’s product line falling behind competitors.
2. A new competitor enters the market, which will change the dynamics of the industry.
3. The firm discovers its processes are not as efficient and/or effective as those of its competitors.
4. The firm believes its current products or processes are not going to be successful in the future.
5. Expansion into new markets and/or new products is achieved faster.
![Page 26: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/26.jpg)
Technology S - Curve
Time
Performance
Product
![Page 27: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/27.jpg)
The S-Curve of Technological Progress
![Page 28: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/28.jpg)
S – Curve Strategy
1st Technology
2nd Technology
3rd Technology
Time
Performance
Product
![Page 29: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/29.jpg)
Managing Along the S – Curve
1st Technology
2nd Technology
3rd Technology
Time
Performance
Product
Managing Growth
ManagingTransitions
![Page 30: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/30.jpg)
Management Implications
•Technology shifts before investment recovery•Management focus often fragmented•Engineering strength often misused• Marketing becomes a problem introducing
new technology over the old one•Difficult to manage the ROI in important technology.
![Page 31: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/31.jpg)
The Process of Technology Commercialization
Commercializing New Technologies, Vijay K. Jolly, Harvard Business School Press, 1997, p. 4
![Page 32: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/32.jpg)
Imagining Incubating Demonstrating Promoting SustainingCreating unique product ideas
Proving product viability
Build prototypes
Build products & introduce to markets
Build markets & improve products
Find interested people & money
Find resources to build prototypes & identify markets
Build initial markets & plan market expansions
Develop market growth strategies
Product planning steps
Business planning steps
Technology Commercialization Process
Resource Needs
People Small Moderate Medium Large
Physical None Moderate Medium Large
Financial None Moderate Large Largest
![Page 33: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/33.jpg)
Technology Assessment
1. Understand Technology2. Discover Possible Uses of Technology3. Understand Markets for Uses4. Determine How to Deliver Value
![Page 34: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/34.jpg)
How Companies Develop1.Small Business Entrepreneurship – 95%+ of business
2.Scalable Startup Entrepreneurship – receive most investment
3.Large Company Entrepreneurship – innovation as variants of existing core products; disruptive innovation difficult.
4.Social Entrepreneurship - innovation to solve social needs
![Page 35: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/35.jpg)
![Page 36: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/36.jpg)
Search for Business Model
Execution of Business Model
![Page 37: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/37.jpg)
Build a Customer Development Process
Concept/Bus. Plan
Product Dev.
Alpha/Beta Test
Launch/1st Ship
Product Development
Customer Development
? ? ? ?
![Page 38: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/38.jpg)
Customer Discovery: Step 1
CustomerDiscovery
CustomerValidation
CustomerCreation
CompanyBuilding
• Stop selling, start listening– There are no facts inside your building, so get outside
• Test your hypotheses – Two are fundamental: problem and product concept
![Page 39: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/39.jpg)
Customer Validation: Step 2
CustomerDiscovery
CustomerValidation
Customer
Creation
Company
Building
• Develop a repeatable and scalable sales process
• Only earlyvangelists are crazy enough to buy
![Page 40: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/40.jpg)
“Pivoting” is changing a fundamental part of the business model. It can be simple: recognizing that your product was priced incorrectly. It can be more complex: your target customer needs to change, the feature set is wrong, you chose the wrong sales channel or your customer acquisition programs are ineffective.
![Page 41: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/41.jpg)
– Goal is to create end-user demand and drive that demand into the sales channel. – Marketing message will be different based on the kind of market being entered and the
customers being sought– Brand building and heavy advertising work in existing markets but not so much in new
markets.
Customer Discovery: Step 3
CustomerDiscovery
CustomerValidation
CompanyBuilding
CustomerCreation
![Page 42: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/42.jpg)
– Where the company transitions from informal, learning, and discovery to formal departments of Sales, Marketing, Business Development
– Build departments to exploit early market success – Add employees to meet demand for products
Customer Discovery: Step 4
CustomerDiscovery
CustomerValidation
CompanyBuilding
CustomerCreation
![Page 43: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/43.jpg)
Nine Blocks of the Business Model
1. Customer Segments2. Customer relationships3. Value propositions4. Channels5. Key Resources6. Key Activities7. Key Partners8. Revenue streams9. Cost Structure
Business Model Generation, Alexander Osterwalder & Yves Pigneur, 2010
![Page 44: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/44.jpg)
Business Model Canvas
Key Partners Key
Activities
Key Resources
Value Proposition Customer
Relations
Customer Segments
Channels
Cost Structure Revenue Streams
![Page 45: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/45.jpg)
Customer SegmentsMass Market: focus on one large group; i.e., consumer electronics
Niche Market: specific segments; i.e., supplier-buyer relationships like auto parts manufacturers
Segmented: different needs and problems; i.e., banks and professional services (engineering, consultants)
Diversified: unrelated segments; i.e., Amazon selling products and providing computer services
Multi-sided platforms: credit card companies; i.e., card holders and merchants
![Page 46: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/46.jpg)
Value Proposition: Five Key Values
• Product: Performance, quality, features, brand, easy to use, safe.
• Price: Fair, visible, consistent, reasonable.• Access: Convenient location, found in reasonable time.• Service: Ordering, delivery, return, check-out.• Experience: Emotional, respect, ambiance, fun, intimacy.
• One value selected to dominate value proposition, a second to differentiate, and remaining three meet the industry norm.
![Page 47: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/47.jpg)
Channels
Communication: marketing message, raising awareness, customer evaluation
Distribution: delivering value proposition
Sales: places to purchase product or services
Finding the right mix of channels is crucial to bringing a value proposition to market.
![Page 48: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/48.jpg)
ChannelTypes
Own Partner
Direct Indirect
Sales Force
Web Sales
Own Stores
Partner Stores
Wholesale
1. Awareness: How to raise awareness of products?2. Evaluation: How do customers evaluate products?3. Purchase: How and where do customers buy?4. Delivery: How do we deliver value proposition?5. After Sales: How provide post-purchase support?
Channel Phases
![Page 49: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/49.jpg)
Customer Relationships
Motivations: Customer acquisition, customer retention, Boosting sales (upselling)
Personal AssistanceDedicated Personal AssistanceSelf-serviceAutomated serviceUser communitiesCo-creation of innovative products
![Page 50: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/50.jpg)
Key Resources
Physical: facilities, buildings, equipment
Human: especially for creative industries
Financial: sources of funding
Intellectual: patents, copyrights, partnerships, customer databases
![Page 51: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/51.jpg)
Key Activities
Production: designing, making, delivering
Problem solving: consulting, services, hospitals
Platform/network: software, networks, social media, brands, platform promotion
![Page 52: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/52.jpg)
Key Partnerships
Strategic alliances between non-competitors and financial sources
Strategic partnerships with competitors
Joint Ventures
Buyer-supplier relationships to assure reliable supplies
![Page 53: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/53.jpg)
Revenue Streams
One-time customer purchases
Recurring revenues
Asset sales, Usage fee, Subscription fees, Lending/Renting/Leasing, Licensing
Pricing considerations
![Page 54: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/54.jpg)
Cost Structure
Cost-driven model: minimize costs, low prices, maximum automation, extensive outsourcing, process innovation
Value-driven model: value creation, premium values, personalized service, product innovation
Economies of scale Economies of scope Fixed costs Variable costs
![Page 55: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/55.jpg)
Business Model Canvas
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relations
Customer Segments
Channels
Cost Structure Revenue Streams
![Page 56: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/56.jpg)
Business Model Canvas – SWOT Analysis
KP KA
KR
VP CR CS
C
C$ R$
Strengths
Opportunities
Weaknesses
Threats
Internal
External
Helpful Harmful
![Page 57: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/57.jpg)
Business Model Canvas – Value Innovation
KP KA
KR
VP CR CS
C
C$ R$
- Costs + Value
![Page 58: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/58.jpg)
Business Model Canvas – Value Innovation
KP KA
KR
VP CR CS
C
C$ R$
- Costs + Value
Eliminate
Reduce
Raise
Create
Cost Side Value Side
![Page 59: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/59.jpg)
Apple iPod/iTunes Business Model
What about your Company????
![Page 60: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/60.jpg)
Business Model Canvas for Apple iTunes
KP KA
KR
VP CR CS
C
C$ R$
Record Companies
OEMs
Hardware Design
Marketing
PeopleBrand NameiPod hardwareiTunes software
Seamless Music Experience
Lovemark
Switching Costs
Mass market
Retail stores Apple storesApple.com
People Manufacturing Marketing and sales
iTunes storesLarge hardware revenuesSome music revenues
![Page 61: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/61.jpg)
ENCOURAGING ENTREPRENEURSHIP
• Show how to take part in the world• Meet and know older entrepreneurs• Access to technologies and capital• Tax benefits and other incentives• Entrepreneurship education
![Page 63: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/63.jpg)
![Page 64: TEACHING AND ENCOURAGING ENTREPRENEURSHIP AND INNOVATION Belarus Universities DR. KENT MILLINGTON OCTOBER 2012](https://reader035.vdocument.in/reader035/viewer/2022062421/56649dbf5503460f94ab32c7/html5/thumbnails/64.jpg)