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From idea to opportunity
orHow to generate efficient projects
Marius GheneaBusiness Days
Tg. Mures30 September 2010
AGENDAA few ideas on the business ideasSources of ideasTrending ideasThe myth of creativityFrom idea to opportunity to businessBusiness planningPositioning of the BusinessPersonal details, Q&A
A few ideas on the IDEA
• How much is it really worth?
• Does it have to be unique?
• What happens if we tell it?
A lot of ideas are pitched every day, in all sorts of circumstances (including TV shows), but very few of those ideas ever get a material realization...
“Good ideas are a dime, a dozen”
Busting some myths on innovation
Busting some myths on innovation Innovation rarely involves lonely inventors and is always based on
legacy or reused ideas Apple didn’t invent the MP3 player, or the computer, or the phone! Most innovations come without “epiphanies”... Innovation is in many cases explained by short-term motivations The fear of ideas being stolen IS paranoia We are happy with existing good ideas, not with new ideas we don’t
understand! Innovation has to permeate society, not to stay “ahead of its time”, in
order to generate progress Being idle could help a lot! Look at Newton and at Archimedes The best idea is NOT sure to win! The future never enters the present in the shape of a finished product!
A few pointers for the ideaLook at problems/pains in the marketCheck the size of that particular marketThink of ways to alleviate the pain, ways
to solve the problem (better)Keep it simpleBe specific It’s OK to copy somebody else but...Beware of the “me, too” trap!
Sources of IdeasConsumersConsumers!Consumers!!Existing products/servicesDistribution channelsGovernmentR&D, inventions
From Idea to Opportunity: Trends
Web trendHealth trendGreen trendClean energy trendSocial trendEtc.
Trend analysis: web and greenGREEN TREND
• Starts with the assumption that many customers are willing to pay more for green products
• Numerous areas of “green” (not only green retail, but also irrigations, consulting, eco-friendly printing, recycling, green cleaning services, etc.)
• Not all with “green” written on it will be successful
• Somewhat separate trends are organic trend and clean-energy trend (but in the same ballpark)
WEB TREND• Opened by web 2.0• Low-cost entry barriers • Numerous applications
(blogging, online video, consulting, e-commerce, mobile apps, etc.)
• Not all with “web” written on it will be successful
• In fact, there’s a much higher percentage of failure in online compared to offline business
The myth of creativity
Nothing is more important for economical growth than INNOVATION
Do we need MORE, or LESS creativity in order to foster INNOVATION?
Fashion, fads: little impact on economic growth
Breakthrough innovations are rare and invented sometimes independently by many people (e.g. fountain pen or telephone)
There are structured methods to generating ideas!
Methods of Generating Ideas Focus groups Brainstorming Brainwriting Reverse Brainstorming! Problem Inventory Analysis Gordon Method Checklist Method Free Association Forced Relationships Attribute Listing Collective Notebook Method Big Dream Approach Parameter Analysis Etc.etc.
Brainstorming
1. No criticism allowed2. Wild ideas are
encouraged3. Volume of ideas is
required4. Combination and
improvements of ideas are encouraged
Check-list method1. New ways to use? Put to other uses?2. What could I copy? What else is like this? 3. Modify? Change color, form, size? 4. What to add to it? Larger, smaller? 5. Lighter, miniature? Duplicate, multiply?6. Substitute? Other material? 7. Rearrange? Change components? 8. Interchange components? Transpose
cause/effect?9. Turn it backward? Turn it upside-down?10. Combine? Blend, alloy, assort?
Want to improve a torch?
Feature Attribute Ideas
Casing Plastic Metal
Switch On/Off On/Off low beam
Battery Power Rechargeable
Bulb Glass Plastic
Weight Heavy Light
Attribute Listing
Producing Big Ideas on Demand1. Shower up your creativity! Best ideas
come when you aren’t worried about anything...
2. Sleep on it! Your answers often come when you stop thinking about them...
3. Engage in mind-mapping! Using a piece of paper and mapping the problem works...
4. Schedule day-dreaming! Unplug from push issues at the time when you’re thinking best
5. Laugh it up! Doing silly things consciously helps you get creative...
Opportunity Recognition: where does it come from?
Education
Experience: personal or work related
Networking information
Gut-feeling!
Determine the Need for an IdeaType of need: continuing/declining/emerging/futureTiming of need: duration/frequency/demand-cycleOther ways to satisfy need: without/as-is/modifiedPerceived risks/benefits: utility/appeal/taste/habitsPPR: demand-elasticity/price&market-stabilityMarket size and potential: growth/trends/threatsClient funds availability: economy/income/loansCash-outflows/inflowsComparison to other investments
Basic Principles, Time Management Principle of Desire: recognizing the need to change personal
attitudes for time allocation
Principle of Effectiveness: focus on the most important issues!
Principle of Analysis: understand the current structure of the time allocation and why/where this is inefficient
Principle of Team-Work: understanding of the fact that most of our time is taken up by others and the need to delegate
Principle of Prioritized Planning: the categorization of tasks by their degree of importance and urgency and a corresponding allocation of time
Principle of Reanalysis: periodic review of time allocation, to make sure priorities have not changed or shifted
Time Management Chart
urgencyim
porta
nce
START PLANNING ACT ON IT!
ELIMINATE DELEGATE
The business-plan is, though often criticized, probably the single most important document for the entrepreneurs at start-up stage
The Business Plan
The business-plan should be prepared by the entrepreneur!
However, he/she may consult with many other sources of information when drafting the business plan:
• accountants • marketing consultants • more experienced entrepreneurs • lawyers • etc.
The Business Plan
The Business Plan Could be useful for employees, investors, the bank,
suppliers, customers, advisors, consultants, etc. Should be viewed from three perspectives: the
entrepreneur’s, the marketing perspective and the investor perspective
Helps determine the viability of the business Provides guidance for entrepreneurs and for other
stake-holders Important tool to help obtain financing or other
types of support Self-assessment for the entrepreneur The business-planning never ends, the business-
plan should be reviewed and marked-up as often as needed!
The main three statements
P&L
More or less statements?
Cash-flow vs. profit
Cash Flow StatementsCash Flow is NOT the same as Profit!
Methods: direct or indirect
Important: Monthly projections needed!
Based on best estimates!
Getting to Break-Even
Simplified Break-Even Chart
Positioning of the businessA
bilit
y to
prov
ide
a un
ique
prod
uct/s
ervi
ce
Value to custmer
of product/service
Dotcom
companies
Bad
company!
Price
competition
You should
be here!
Positioning of the business
Positive Customer-centric Empowering Self-explanatory Specific Core Relevant Long-lasting Diferentiated
Positioning of the businessMake it personal! Speak plainly Apply the opposite testCascade the messageFlow with the go
(or Google search)
Profile: www.ghenea.ro
Q&A
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