What is entrepreneurship?

From Idea to Opportunity to Venture

Dr Shailendra Vyakarnam

Some basic debates

Born or made?

It cannot be taught..

It is only a matter of luck..

You do this because you cannot find a job

It is not for smart people

It is only for the money…

What are the Brazilian views?

Create a brand for an entrepreneur

HappyGood at…

Typical values Motto

“one line –

brand value”

Process of entrepreneurship

Due diligence

Market research

Business plans

Research groups

Individual academics

Industry research

Family business – diversification

Social need

Personal experience

Spotted a gap

New venture

Licence

Joint venture with

industry

New venture

New project

New Division

Spin off

Acquisition

Shane and Venketaraman, 2000

Complexity of technology commercialisation

Many ideasOpportunities

Business model

Choices

Sell IP

Licence

JV

New venture

Readiness – combines instinct/market information/customers

Lack of know how and know who..

Ideas – many possibilities – common

validation process...

Ideas – IP from Unicamp

Entrepreneurial Learning - Journey

INSPIRATION INTENTION INFORMATION IMPLEMENTATION

Postgraduate Diploma in Entrepreneurship

Technology/Knowledge based

opportunities

Using experience to filter ideas

• Social networks

• Access to experience

• Access to tacit knowledge – covering the knowledge gap

• Access to the right kinds of advice

• Sources of creative suggestions

Until 1985

1986-1990

1991-1995

1996-2000

2001-2002

CambridgeUniversity

AcornHermann

Hauser

Acquired by

Olivetti

Olivetti

Research LabAndy Hopper

Adaptive

Broadband

Cambridge

BroadbandAcquired by American

Microwave

Acquired by

Western

Multiplex

Corp

Andy Hopper

Peter Warton

IPV (Telemedia

Systems)

Andy Hopper

Virata(ATML)

Hermann Hauser

Andy Hopper

Merged with

Globespan

Acquired by AT &T

RealVNC

Virtual Network

Computing Level5NetworkAndy Hopper

ANTAlex van Someren

Nicko van Someren

nCipherAlex van Someren

Nicko van Someren

NetchannelHermann Hauser

Jack Lang

Acquired by

NTL

ARMElement 14

Stan Boland

Simon Knowles

Acquired by

Broadcom

Amadeus Capital PartnersHermann Hauser

IQ BioHermann Hauser, Chris Keightley

Part of DAKO

Diagnostics DakoCytomation -

Merged with

Cytomation Inc

CDT

Richard Friend

Richard Friend Plastic Logic

Analysys

David Cleevely

Cambridge

Network

David Cleevely

Hermann Hauser

Alec Broers

Cambridge

3G

David Cleevely

CPSPeter Duffett-Smith

Polight

Technologies

Stephen Elliott

Pavel Krecmer

ART

Daniel Hall

Pilgrim BeartActiveRF

Pilgrim Beart

Antenova

Zeus

Technology

Adam Twiss

David Reeves

Cambridge

Semiconductor

Gehan Amaratunga

Florin Udrea

MuscatJohn Snyder

Martin Porter Enterprise

AcceleratorJohn Snyder

John SnyderWebtop

Smartlogik

Acquired by Dialog

Small

World

Richard Green

Authur Chance

Dick Newell

CADShape Data

Charles Lang

Acquired by

GE

TensailsRichard Green

VBN

online

TerraPrise

Ubisense

Andy Hopper

Steve Pope

Andy Hopper

Andy Ward

Pete

StegglesSimon Elliott

David Cleevely

Electronic Share

InformationAcquired by

E* Trade

Hermann Hauser

Jack LangTop

expressJack Lang

Splashpower

Lily Chang

James Hay

Saviso Group

Adam Twiss

Bryan Amesbury

Innovia

Collin Ager

Garraint Davies

Cambridge Interactive Systems

Hermann Hauser

Mike Muller

Tudor Brown

Jamie Urquhart

Dick Newell, Tom Sancha

Stan Boland

Simon Knowles

Icera

Laser-ScanR. O. Frisch

M-Spatial

Adrian Cuthbert

Jon Billing Acorn alumni

To say Yes/No – sometimes instinct –

sometimes evidence

Phineas Gage (1848)Phineas Gage (1848)

Tamping Iron....Tamping Iron....

Damasio et al. 1994

Opportunity Recognition

What if 3M says No at each stage?

Technology-Driven Business Building

Brightness

Enhancement

Film

LCD

Film

LED Light Mixing

Light Control

FLG

X-ray

Scan

Notched

Fiber

Large-Diameter

Optical Fiber

FILM

1964 1970 1980 1990 2000

Optical

Lighting

Film

Glare-free

Overhead

Projector

Lens

Lens

Film

Traffic

Signal

Linear

Solar

Concen-

tratorDay

lighting

Total

Internal

Reflection

Overhead

Projector

Lens

Radial

Solar

Concentrator

Multi focal

Interocular

Lens

Low-profile

Overhead

ProjectorMicro lenses

Structured

Surface

Abrasives

Shaped

Particles

Trizact

Abrasives

Scotchlite

DGS

Internally

Lit Signs

Light

Pole

Lighted

Guidance

Tube

Lighted

Lane

Marker

Lane MarkersFluorescent

DGS

Conspicuity

DG3

Stem Web

Tape

Control

TAC

Smart

AdhesivesMicro Comply

Electrical Connectors

Structured

Surface

Filter ISO

porous

Structured

Surface Sensor

Micro-channel

cooling

Fluid

Transport

High flow

Filter

Programmed

Optics for Signs

Griplets

LENSES

ILLUMINATION

REFLECTIVE

MATERIALS

ABRASIVES

ADHESIVES

MATERIALS

ELECTRONICS

Prism

Reflectivity

Reclosable

Fasteners

Wide Angle

DGS

Cube corner

Diamond

Grade

Sheeting

One of the best known No No No

• Monoclonal antibodies...

• BTG – Stalled development

• Genentech

• CAT – Humira

• And the rest is history

Most painful errors in entrepreneurship –

Type II and Type III decisions

Yes

No

FailureSuccess

I

II

III

IV

How can we avoid Type II decision errors?

• Say Yes – Opportunity is a success = Hero!

• Say Yes – Opportunity fails = Crucified

• Say No – Opportunity is a success = Philosopher!

• Say No – Opportunity fails = Heroic philosopher!!

Consequence – No is the most frequently heard expression

faced by entrepreneurs! And it comes in many forms!

Technology dependent opportunity

Technical

attributes

Technical

advantageApplications

Applications -

commercial

advantages

Significant

wins

Viable

applications

Filter

Comparison

With rival

technologies

10x

2X

1X

Create and

Understand

Potential

Applications

segmentation

Market dynamics

Routes to market

Commercialisation

M

A

R

K

E

T

S

Market size

Return on investment

Business models

Team competence

Vision

Faster

Smaller

Cheaper

New effects

C

O

M

P

A

R

I

S

O

N

F

U

N

D

A

M

E

N

T

A

L

S

B

R

A

I

N

S

T

O

R

M

M

A

R

K

E

T

R

E

A

L

I

T

I

E

S

Market Driven Opportunities

Advantage

USP

Competition

Tapping into trends

Supply advantage

Brand leverage

Disruptive or

Incremental

Attributes

Aspirin

Vitamin

Markets

Segments

Growth

Sizes

Gap in the market

Positioning

Location

Commercial

advantages

Price points

Margins

Cash flow

Strategic directions for the future

Barriers to entry

Long term sustainability

Significant

wins

Biggest

markets

Ambition:

Lifestyle

Growth

Investments

ROI

Risks

Window of Opportunity

Speed of execution

Business model

Impact on family