technology ventures: from idea to enterprisechapter 2: summary in the field of observation, chance...
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Technology Ventures: From Idea to EnterpriseChapter 2: Summary
In the field of observation, chance only favors minds which are prepared.
Louis Pasteur
How can an entrepreneur identify and select a valuable opportunity?
The choice of an opportunity and the decision to act is a critical juncture in the life of an entrepreneur. With the decision to act, the entrepreneur prepares a business summary for the venture that is used to test the new venture with potential investors, employees, and customers.
Summary
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Chapter 2: Figure 2.1
Identifying the Opportunity
Determining the Entrepreneur’s capabilities and interests
Evaluating the opportunity
Writing a summary of the concept
Testing the summary and the concept with potential customers
and investors
Deciding to act on the opportunityor look elsewhere
Six steps to acting as an entrepreneur
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Chapter 2: concept
Types of Opportunity:
Opportunity Pull:
the size of the opportunity attracts opportunity seekers to attempt to exploit it.
Example:
A drug to mitigate the effect of Alzheimer’s disease.
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Chapter 2: concept
Types of Opportunity:
Capability Push:
a new technology or capability causes a search for new applications.
Example:
Digital Television
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Chapter 2: Table 2.1
Nine Categories of Opportunity:1. Increasing the value of a product or a service2. New applications of existing means or technologies3. Creating mass markets4. Customization for individuals5. Increasing reach6. Managing the supply chain7. Convergence of industries8. Process innovation9. Increasing the scale of the firm
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Chapter 2: Table 2.2
Evaluating an Opportunity: Sources of DiscontinuitiesI. Society
Aging societyLifelong educationFood and populationRegulation
II. TechnologyInnovationDisruptive technologiesNew knowledge
III. MarketsDeregulationSupply chain disruption
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Chapter 2: Figure 2.4 – Evaluating An Opportunity
Characteristics of Entrepreneurial Teams • Positive attitudes towards independence, achievement, and innovation • Acceptance of risk and demanding work effort • Capabilities matching the needs of the venture • Willing to make the commitment required • Passionate about the opportunity
Resources • Capable of securing access to the human, financial, and physical resources required by the opportunity
Characteristics of
the Opportunity • Novelty of the product • Potential for sustainable long-term success • Potential for good return on investment • Potential for a growing market • Good risk-versus-reward balance • Customers are known and responsive
Characteristics of the Context• Timeliness• Favorable industry conditions• Future conditions appear favorable
100%
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50%50%0%
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Chapter 2: Figure 2.5 - The seven domains of attractive opportunities
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Technology Ventures: From Idea to Enterprise
Chapter 2: Table 2.8
The Elements of a Business Concept Summary
•Explain the problem or need and identify the customer.
•Explain the proposed solution and the uniqueness of the solution.
•Tell why the customer will pay for the solution.
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Chapter 2: Table 2.9
The Elements of the Business Story
BackgroundDescribe the current situation, the characters, and the problem.
ChallengeDescribe the challenges and conflicts that impede a coherent plan to solve the problem.
ResolutionPortray a solution to the challenges and the problem and how the venture will succeed by resolving the problem.
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Chapter 2: Table 2.12
The Elements of an Executive Summary
1. Business Concept: The problem and the solution2. Market, Customer, and Industry3. Marketing and Sales Strategy4. Organization and Key Leaders5. Financial Plan: Four years of summary results6. Financing and Key Allies Required
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Chapter 2: Principle 2
Principle 2The capable entrepreneur knows how to identify, select, describe, and communicate an opportunity that has good potential to become a successful venture.
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Chapter 2: Venture Challenge
VENTURE CHALLENGE
Consider the opportunity you identified at the end of chapter 1.
1) Evaluate it using Table 2.6’s principles and Table 2.7’s process. Write a concept summary using the format provided in Table 2.8.
2) Create a brief business story for the opportunity (venture) as summarized in Table 2.9 and present it to your team. Be sure to clearly describe the product or service, what problem it is solving, and who the customer is.
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Chapter 2: DVD Videos
DVD Videos
“Find a Wave and Ride It”
Erik Straser (MDV)
“Some Disruptive Technologies and Opportunities”
John Doerr (KPCB)
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Technology Ventures: From Idea to Enterprise