Presentation on theme: "Entrepreneurship: Successfully Launching New Ventures, 2/e"— Presentation transcript:
1Entrepreneurship: Successfully Launching New Ventures, 2/e Bruce R. BarringerR. Duane IrelandChapter 2
2Case Study – Upin & IpinCreators of Upin & Ipin - Nizam Abdul Razak, Safwan Abdul Karim and Usamah Zaid - among founding members of Les' Copaque.Trio were Multimedia University graduates who started off as animators in another local animation, till in 2005, they met a former oil dealer, Haji Burhanuddin Radzi, and his wife, Hajjah Ainon Ariff, to set up Les' Copaque.
3Case Study – Upin & Ipin…continued First series - produced specially for Ramadan in 2007 to instil the significance of the holiest month amongst its audience.According to Safwan, "We started this short four-minute animation series last year to test local market acceptance and to gauge how it would react to our story telling capabilities.“
4Upin & Ipin…conceptNizam believed - international animation market may be interested in a particular Malaysian cultural aspect made of a relaxed, unhurried village life.He explained in a 2008 report, "Famous animation series, such as Japan’s Doraemon, are based on their respective local rather than international culture. We believe we can do the same with ours."
5Some creative ideas… Doraemon – local context in a village Local values3DUnique Business Model - Licensing
61. Source of Business Ideas Work experienceBetter and more detailed understanding of what customers needs, preferences and wantKnowledge of competitors, pricing, suppliers…Less need for start-up market researchAble to make more realistic assumptions in the business plan about sales, marketing, operating costsIndustry contacts - become the first customers of the start-up.(Katz/Green, Pg. 80)
10Hobby or personal interest Leisure activitiesAdvantages• Know and enjoy it• Build on your existing knowledge base• You may already have contacts—suppliers, potential customers, distribution channelsDisadvantages• Skills may be insufficient as a professional• Decisions are based on pleasing the customers - might lose a source of relaxation• May not be able to make enough money
12Chance happening or serendipity An "Aha!" moment.When we've encountered something in life—a personal need, a business situation, annoying with technologyPast experience and expertise - may not be consciously aware of the connection at the time.Many realized they could offer something new or better in a field they are familiar with.The better you know an industry, a product, or a market, the more likely – able to realize - fill an unmet need and pursue your inspired new idea.
16Education and expertise “One of the huge mistakes people make is that they try to force an interest on themselves. You don’t choose your passions; your passions choose you.” - Jeff BezosPassion guided, industry drivenFinancial thermostat
19Technology transfer and licensing TOT = the process of transferring skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments or universities and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to (and may arguably be considered a subset of) knowledge transfer.(Katz/Green, Pg. 80)
20The compensation may take the following forms; Licensing - agreement whereby an owner of a technological intellectual property (the licensor) allows another party (the licensee) to use, modify, and/or resell that property in exchange for a compensation (consideration).The compensation may take the following forms;Lump sum royaltyRoyalty based on volume of production (called running royalty)Right to use licensee's technology (called cross licensing).
21Benefits:Through licensing of proprietary technology, small firms can earn substantial income from markets that they could not penetrate on their own, and large firms can have foreign affiliates without high financial and legal risks.
232. Identifying Opportunities Observing trendsPolitical and Regulatory ChangesNew changes in political arenaNew laws and regulationsEconomicStrong economy – more RMWeak economy – less RM
24SocialSocial changese.g healthy foods, green productsTechnological AdvancesWirelessStem Cell
25Solving A Problem Finding Gaps in the Marketplace Identifying opportunities to recognise problems and find ways to solve themEvery problem is a brilliantly disguised opportunity?Finding Gaps in the MarketplaceShortage / lack of what?Find frustration
263. Creative Thinking Always ask question: Is there a better way? Challenge custom, routine and tradition.Be reflective, deep in thought.Be prolific thinkers with tools (e.g SCAMPER, blue ocean, green ocean)Try to see an issue from different perspectives(Scarborough, Pg. 54)
27Realize - there might be more than one right answer. See mistakes as ‘valuable lessons’ on the way to success.See problems as a stepping stone for new ideas.Understand failure is a natural part of creative process – after testingRelate unrelated ideas to a problem to generate innovative solutions‘Have helicopter skills’ - rise above daily routine and see an issue from a broader perspective(Scarborough, Pg. 54)
284. Barriers To Creativity Searching for the one right answerUniversity students – exam basedFocusing on being logical – emotional, spiritualBlindly following rules – but not against Islamic principlesViewing play as frivolous – (not a serious purpose)(Scarborough, Pg. 57)
29Becoming overly specialized – rigid to listen to others. Fearing looking foolish.Fearing mistakes and failure.Believing that “I am not creative”.(Scarborough, Pg. 57)
305. How To Enhance Creativity Include creativity as a core company value – ‘Shura’Embracing diversity – international, different ethnic groupsExpecting creativity – brainstorm***Expecting and tolerating failure (a bit) – Shura…Creating an organizational structure that nourishes creativity – open to constructive feedbackEncouraging curiosity – inquisitive mindsCreating a change of scenery periodically – visit, holiday(Scarborough, Pg. 61)
31Providing creativity training – Green Ocean Providing supportDeveloping a procedure for capturing ideas – suggestion boxTalking with customers – interacting with themLooking for uses for your company’s products or services in other marketsRewarding creativity(Scarborough, Pg. 62, 63)
326. Techniques for Improving Creative Process Brainstorming (Scarborough, Pg. 72)Mind-Mapping (Scarborough, Pg. 72)Focus GroupInternet Research – Youtube, Video Montage
337. Techniques for Improving the Creative Process SCAMPER methodS- Substitute – alternative – online newspaperC- Combine – 2 in 1A- Adapt – not taking everything – Blue OceanM- Magnify or Modify – standout – 24 hoursP- Put it to other uses - GPSE- Eliminate – one of the activities – online orderingR- Rearrange – cost effective – Dell’s business model(Katz/Green, Pg. 87)