1. Idea and Opportunity Mapping By- Rahul Jain

2. Searching New Ideas Guided by Our Broad Objectives Brainstorm to generate solutions (Environmental Analysis) Shortlist Ideas for detailed scrutiny 1. Develop ways of evaluating ideas (yours and others ’ ) (5Qs) 2. SWOT Analysis 3. Other constraints

3. Objectives To Increase Profits To Minimize Losses To Capture new Market To increase the Wealth To work for Philanthropy To Introduce new Design/Technology

4. GoodknightHotmail Ceasefire Sony Levis Barbie DisneyLandWal-Mart Tommy Hillfiger

5. Some have focused on certain links For product features: Sony Walkman, Apple Computer, Barbie Doll, Hotmail, Disneyland, Harry Potter For information collection process: Internet based Ebay, Amazon, Google For buying process: Amazon, Dell, widely distributed and well displayed products For payment process: Visa and Master Cards For delivery process: DHL’s jumbo boxes, couriers

6. Sources of New Opportunities Customer-route: When customer dissatisfaction is high; appropriate also when investment in technology development/application not yet made Product-route: Appropriate when product or process developed and attractive application required

7. Sources of New Opportunities New Applications of existing products /technology (Chat) Technology integration (call taxi, mobile)

8. Sources of New Opportunities Industry and market changes Growing healthcare awareness (and concern to lengthen life) created bottled water, HQ packaging, fitness, yoga..… When industry grows quickly, established firms concentrate on defending what they have B&W TV manufacturers in India, HMV Neglected but fast-growing segments offer excellent opportunities (Budget hotels/ Retailing)

9. Sources of New Opportunities Demographic changes Managing old age creating many opportunities Growing higher education needs and State’s helplessness Growing security concerns in offices, homes Interest in comfort, travel and leisure

10. Do you agree that basically we are…. And Any product/service that helps us achieve these needs have potential Lazy Pleasure seeking Comfort seeking

11. Search for Business Idea  Scanning the Environment  Sensing the Opportunity  Initial Screening  Discard  Build On

12. Scanning the Environment It is quite possible that many of the promising ideas might not make commercial sense. It involves close examination of the environmental conditions and their impact upon the business idea. This analysis may advice to modify, adapt, rearrange, substitute, combine, reverse, etc.

13. Scanning the Environment International Environment Domestic Environment Macro Environment Sectoral Analysis SWOT Analysis

14. Scanning the Environment International Environment International developments affect all businesses World is a Global Economic village Integrated economies Increased susceptibility to external happenings Internationalization, Digitization, Outsourcing One has to understand the impact of these factors See more opportunities than threats.

15. Scanning the Environment Political Environment Stable & conducive political climate Government policies Extensive institutional framework Technological Environment Level of technology Rate of change in technology Socio-Cultural Environment Customs, Norms and Traditions of the society Its crucial for the operations of MNCs

16. Scanning the Environment Legal Environment Laws of the country Labor laws and Legal redressal system Copyright acts & Trademark infringement Economic Environment

17. Factors for Industry attractiveness Market growth rate Market size Demand variability Industry profitability Industry rivalry Global opportunities Macro-environmental factors

18. Scanning the Environment Sectoral Analysis Study the sector or Industry conditions Study the industry attractiveness Constraints or thrust on technology, manpower & raw material SWOT Analysis Helps understand own skills & abilities Knowledge & experience Helps in understanding the competition

19. SWOT Analysis- Strengths Experience & Expertise Financial Position Good Contacts Capital raising capacity Collaborations

20. Weaknesses New Unfamiliar technologies Inability to raise huge investments Lack of Experience Lack of trained personnel Lack of Economies of Scale

21. Opportunities Emergence of New technologies New Products with new market Special financing Schemes Government Incentives Rapid growth in market

22. Threats Competition Poor state of Economy Change in technology Change in Habits New Products and services

23. Screening Ideas: Are they Opportunities? 5 Questions 1. What important customer problem can you solve? 2. How are you going to do it? 3. How many customers are there that are willing to buy from you? 4. Why can only you provide the solution? 5. How can you defend against others? Ask these questions BEFORE somebody else does!

24. Screening an Opportunity: 5 Questions 1. What important customer problem can you solve? How valuable? How painful? Remember, you need to change somebody ’ s behavior to buy your product.

25. Screening an Opportunity: 5 Questions 2. How are you going to do it? Business model: Product Distribution Location Technology/Innovation Service Brand

26. Screening an Opportunity: 5 Questions 3. How many customers are there that are willing to buy from you? How many customers are there? (Market size) How many will buy from you? (Market share) Who will be your first customer (besides your Mom)? Who will be your 100 th ?

27. Screening an Opportunity: 5 Questions 4. Why can only you provide the solution? How are you unique? What do you provide that nobody else can?

28. Screening an Opportunity: 5 Questions 5. How can you defend against others? Location, brand, patent (or other IP), great service, great taste, great fashion sense ….

29. Self-Opportunity Match  Self  Previous Experience (knowledge, skills)  Access to new knowledge, skills  Customer  Problems (existing, emerging)  Level of dissatisfaction (criticality, discontentment)

30.  Solution to Customer  Dissatisfaction  Financial Attractiveness Strategy (source, cost, availability, adequacy)  Marketing Attractiveness Strategy (size, Entry, Sustenance)  Entrepreneurial Capability Strategy (Attitude, Skills, Knowledge pool/network – individual/group)  Technical Attractiveness Strategy (Existing/new technology and products/services)

31. Market Attractiveness Identify areas of high customer dissatisfaction Assess market size Assess challenges in accessing customers Assess competitive attractiveness

32. Overall Attractiveness Determine technical feasibility Estimate financial viability Team quality is critical Assess entrepreneurial resources (ASK) Assess fit with personal preferences and aspirations What & how big are the gaps in capabilities

33. Can the gaps be filled? How? Implications for success Remember, EXECUTION is key to success Iteratively balance the venture tripod (mkt, tech, fin) and entrepreneur (your team’s) at every stage Detached passion Prepare a dynamic Business Plan

34. Pitfalls In Selecting New Venture Lack of Objective Evaluation No Real Insight into the Market Inadequate Understanding of Technical Requirements Poor Financial Understanding Lack of Venture Uniqueness Ignorance of Legal Issues

35. Finalizing a Product/Service Combine opportunities provided by the environment with your strengths In terms of knowledge, skills, experience, etc Analyze the industry forces Now, finalize the product/service The proposed product/service must be compatible with: The capability Resources Available Need of society

36. Criteria in Selecting Ideas Investment Rate of return Implementation Market Size Risk Uniqueness Expected Life Flexibility Environment considerations Effectiveness Total Score on Each parameter ( 1 to 5 – Poor to Good)

37. Log I:Presentation IVth Week- Close to Heart Idea & SWOT Analysis Prepare for a 3 minute- 5 minute presentation on the idea that has been finally chosen. Use the 5Q format as a guide. Be prepared to defend your ideas in front of a group Provide all the references and intext citations Email submission and upload on the internet: 2 days before the class Email id: rahulkjain16@yahoo.co.inrahulkjain16@yahoo.co.in