1. Which factors can you raise above competitors?

2. Objectives Explore value innovation as an approach to entrepreneurial opportunity analysis and new venture creation Explore the impact of raising factors on your success as an entrepreneur

3. Macroeconomic Change Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Opportunity Identification Value Innovation Eliminate Reduce Raise Create Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

4. Once the elimination and reduction of factors are made, attention can turn to raising select factors What factors can elevate the values that truly matter for customers? –Work to exceed customer desires in these areas Raising these high-value factors –Differentiates you from competitors and –Improves your competitive advantage

5. Encyclopedia Britannica Est. 1768 120,000 peaks sales in 1990 Last print set sold in 2010 to 8,000 customers $1,395 in 2010

6. Encyclopedia Britannica Digital Path

7. Enter Microsoft Encarta Britannica delivered comprehensive, early CD-ROM and online products Encarta brought an inexpensive, multimedia, not-at-all comprehensive encyclopedia into the home –Helped Microsoft sell Windows PCs to families Britannica’s parallel focus on costly multiple printings and biannual regular updates were pitfalls

8. Wikipedia’s value innovation Aligned value, profit, and people propositions based on product differentiation and low cost Created new value for users Motivated the general public to –Embrace and –Assist in implementing the new strategy of collaboratively developing the written content of the Wikipedia encyclopedia

9. Wikipedia’s impact Engaging readers and the public in developing content –Raised the timeliness and –Breadth of its content Presented a sustainable advantage in cost and in value versus –Encyclopedia Britannica, –Microsoft’s failed Encarta.com offering, and –Existing and future competitors

11. Summary Raising factors that matter to customers adds true value to the market: Timeliness and Breadth of Content (Wikipedia) versus Accuracy and Comprehensiveness (Britannica and Encarta) Step four of value innovation is creating factors