Global Opportunities Professor Stephen Lawrence Leeds School of Business University of Colorado ESSAM 2010
Agenda Where do good ideas come from? Is there a difference between an idea and an opportunity?j How can we identify opportunities? How can we screen potential opportunities?
Sources of Ideas Where do good ideas for new products & companies come from?
How Are Ideas are Generated? Textbook Version Reality
Sources of Ideas Follow your Passion! Read extensively Business publications Trade & industry journals Technology magazines (Tech Review) Network Talk with everyone and anyone Talk with potential customers! Flash of insight!
Good Ideas … CAN OCCUR TO ANYONE!
Good Ideas... COME FROM PERSONAL EXPERIENCE!
Good Ideas... CREATE EXCITEMENT!
Ideas versus Opportunities Are all good ideas good business opportunities?
My Business Idea ($$) ?
Ideas Are Overrated Build a better mouse trap Most ideas already considered There is little new under the sun Process of refinement is essential
When Is an Idea an Opportunity? Attractive Durable Timely Adds value Open window Entry is feasible Customer will pay Management team Competitive advantage Economics Rewarding Forgiving Growth Timmons, New Venture Creation
Identifying Opportunities How can we identify opportunities? What criteria should we use?
S-Curve Progression Performance and Adoption often follow an S-Curve Performance, Adoption Effort (time, funds) Foster, Innovation: The Attackers Advantage, Summit Books, 1986 Opportunity Sweet Spot
Performance Effort (time, funds) Successive Innovations Foster, Innovation: The Attackers Advantage, Summit Books, 1986 Disruptive Gap Attacker’s Advantage Disruptive Innovation
Vitamins vs. Pain Killers
Identify Customer PAIN! It’s easier to sell pain-killers than vitamins If you want to stir someone to action, Tell them that somebody is robbing them of $20 Don’t tell them that they have an opportunity to earn (save) $20
Identify Pain Provide Relief
Segway Human Transporter Introduced Dec-2001 $4,450 each Forecast for 2002 10,000/week Reality for 2002 ~10/week Some special apps Remains a curiosity
Segway-Based Wheelchair
Global Opportunities
What is a “global” product (or service)? How do global products differ from “domestic” products?
Global Products Satisfy a need (relieve pain) across cultural/political/economic boundaries Satisfy either of the following: 1. Meet a global expectation or standard 2. Are malleable and “easily” modified to meet cultural/political/economic differences Examples of global products Examples of domestic/local products
Global Opportunities Assignment
Assignment Global Opportunities Meet with your team Develop 3 ideas for “born global” products and/or services Assess the commercial viability of each Customer pain points Global prospects Economically attractive Select the most attractive of the 3 Report back your ideas to the class
Teams