Defining the Opportunity

Innovation, Entrepreneurship & Design Toolbox

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an observed market opportunity new

technology/capability

”demand-pull idea” VS ”knowledge-push idea”

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A business idea: two sources

• A currently unsolved problem is spotted:

It could be personal or friends’ experiences or observation in the news or in current trends

...Often referred to as ‘customer pain’ or an unmet demand

Example: students suffer from crooked back

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If demand-pull idea

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• Study of reasons behind the problem:

Carrying heavy books

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• Conceivement and development of a solution (product/service)

• The solution might incorporate technology, but the technology solution is created and tailored specifically for the problem.

• A new discovery or a new technical capability with many possible applications is made/developed Also known as a ‘platform technology’

• A suitable commercial application is identified Find the most compelling industry/market likely to need or adopt the new technology at

an early date – find a problem to solve!

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If technology-push idea

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• Development of the raw technology further to deliver the envisioned applications

develop for “Market readiness”

• Once the technology is sufficiently developed, the inventor/entrepreneur start-up can either:

1. Manufacture its own products using the technology, and sell them to customers

2. License the protected tech to other companies, which will develop and sell their own products using the technology

3. Sell the start-up company, with its Intellectual Property and its highly specialised managers and staff (‘human capital’), to another (usually larger) company

If technology-push idea

Demand-pull ideas usually go into the market for products Make products/services and sell directly to customers

Knowledge-push ideas may end up in either The market for products or the market for technology

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If you have a demand-pull ideaGo to ‘Idea generation and evaluation’ exercise in the

IE&D Toolbox• benchmark your idea against other solutions• Improve your idea

If you have a knowledge-push ideaGo to the ‘Technology/Application Matrix’ in the IE&D Toolbox

• Compare and evaluate commercial applications

Afterwards you can further reality-test your assumptions and conclusions using Entrepreneurial Market Research and Value Chain/Value Network analysis.

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Two possible journeys...

Your Idea/ProjectDid you start with a problem or a technology/capability?

Idea Generation and evaluation Technology/Application matrix

Entrepreneurial Market ResearchValue Chain/Network analysis

Knowledge push caseDemand-pull case

Evaluate, improve Evaluate, choose

Reality -test

Reconsider? Reconsider?

Clarysse, B. and Kiefer, S., 2011. The Smart Entrepreneur. London: Elliot & Thompson, Ch. 1.

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Further reading