2 What is an Opportunity? Idea for a new product Product description in embryonic formNewly sensed needNewly discovered technologyRough match between a need and a possible solution
3 Types of Opportunities Familiarity with the solution likely to be employed.Familiarity with the need the solution addresses.
4 Opportunity HorizonsHorizon 1: Improvements, extensions, variants, and cost reductions of existing products for existing marketsHorizon 2: opportunities push out into less know territory in one or both dimensions of the market or technologyHorizon 3: attempts to exploit opportunities that are some way new to the world.
6 Tournament Structure of Opportunity Identification
7 Effective Opportunity Tournaments Generate a large number of opportunitiesSeek high quality of the opportunities generatedCreate high variance in the quality of opportunities
8 Opportunity Identification Process Step 1 – Establish a charterStep 2 – Generate and sense many opportunitiesStep 3 – Screen opportunitiesStep 4 – Develop promising opportunitiesStep 5 – Select exceptional opportunitiesStep 6 – Reflect on the results and process
9 Step 1 – Establish a charter FroliCat:Create a physical product in the cat toy market that we can launch to the market within about a year through our existing retail sales channelDry erase marker with ink-level indicatorCreate a dry erase marker similar to existing markers that wool have an integrated ink-level indicator indicating when the marker is empty or close to empty. We will launch to market within one year through via a new LLC and internet sales plus major chains such as Target, Wallmart, Staples, Amazon, OfficeMax.
11 Techniques for Generating Opportunities Follow a person passionCompile bug listsPull opportunities from capabilitiesStudy customersConsider implications of trendsClothes sizingGreenWirelessImitate, but better
12 Techniques for Generating Opportunities Imitate, but betterMedia and marketing activities of other firmsDe-commoditize a commodity (competition based on price)Drive an innovation “down market” – cheaper products with same or similar functions, not all the bells and whistlesImport geographically isolated innovations – Starbucks, Redbull
13 Mine Your ResourcesLead users – people with advanced needs that are not begin met.Representation in social networksUniversities and government laboratoriesOnline idea submission
14 Step 3 – Screen opportunities Pick opportunities with high likelihood of creating valueConsider – market need, technological feasibility, alignment with strategy, etc.Two methodsWeb based surveysMultivotingGroup must have at least 6 members. More than 10 preferred.Members must have relevant experience
15 Step 4 – Develop promising opportunities Invest modest resources into developing a few opportunitiesSearch internet for existing solutionsTalk to customersQuick prototypesEstimate market size and growth rateResolve the greatest uncertainty surrounding each one at the lowest cost in time and money.List major uncertainties and cost to resolve, then pick the biggest ones with the lowest cost first.
16 Step 5- Select exceptional opportunities Real-Win-Worth-it (RWW) method – 3MIs the opportunity real?Market size?Is technology available?Lkelihood product can be delivered at the right time and price.Can you win with the opportunity?Establish a sustainable competitive advantage?Can you patent or protect it?More capable of executing it then your competitors?Is the opportunity worth it?Do you have the rources?Will investment pay off sufficiently
17 Step 6 – Reflect on the results and process How many opportunities came form internal sources vs external?Did we consider dozens or hundreds of opportunities?Was the innovation charter too narrowly focused?Were our filtering criteria biased?Are the resulting opportunities exciting to the team?
18 Thought Questions2. Would consumers make good raters in an opportunity screening process? 3. Can you really answer the question of whether an opportunity is real before developing a product concept? 4. Could a great opportunity identification process result in a product that fails in the market? 5. How do the risks differ between two types of Horizon 2 opportunities, one addressing a current market need and the other using a current solution?