BOI Presentation (1)

8/4/2019 BOI Presentation (1)

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BUSINESS OPPORTUNITY

IDENTIFICATION

Ahmedabad Management Asso/EDIShiv Kothari


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Contents Individual Characteristics that lead to Opportunity

Recognition

Factors Affecting Opportunity Recognition Entrepreneurial Alertness Information asymmetry and prior knowledge;

Discovery versus purposeful search;

Social networks;

Personality traits, including risk-taking, optimism and self efficacy,and creativity.

Active Search


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Pattern Recognition Pattern recognition plays a central role in opportunity

identification:

Opportunity emerge from a complex pattern of changingconditions they come into existence at a point in timebecause of juxtaposition of conditions which did not existpreviously

Recognition of Opportunity depends, in part, on individualcognitive structures framework developed from

experiences that provide the cognitive basis for ConnectingDotsinto pattern suggestive of new business opportunities


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Opportunity recognition Opportunities develop as individuals shape elemental ideas

into full-blown business plans.

Opportunity recognition appears to include three distinctprocesses:(1) sensing or perceiving market needs and/or underemployed

resources

(2) recognizing or discovering a fit between particular marketneeds and specified resources,

(3) creating a new fit between heretofore separate needs andresources in the form of a business concept.


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Recognition of opportunities depends, in part, on

individual cognitive structures - frameworks

developed from experience that provide thecognitive basis for connecting the dots into

patterns suggestive of new business opportunities


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Factors affecting Opportunity

Recognition Entrepreneurial Alertness

Information asymmetry and prior knowledge;

Discovery versus purposeful search;

Social networks;

Personality traits, including risk-taking, optimism and

self efficacy, and creativity. Active Search


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Entrepreneurial Alertness A set of perceptual and information processing skills

Any recognition of opportunity by a prospective entrepreneur ispreceded by a state of heightened alertness to information.

Definition - a propensity to notice and be sensitive to informationabout objects, incidents, and patterns of behaviour in theenvironment, with special sensitivity to maker and user problems,unmet needs and interests, and novel combinations of resources.

More alert to new opportunities and use information differently


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Alertness

Opportunities often recognized by people not

engaged in active search

Abundant natural curiosity and a broad range of

interests is helpful

Related to cognitive capacities such as high

intelligence and creativity


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The Alert Individual

Perceive the market environment correctly

Identify the true driving forces and critical factors

Infer the real relational dynamics among theseelements


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Alertness Schema*** What is really going on here

Be

Objectively

Accurate

What are

Three Other

Ways to

See/ThinkAbout This

What is

Everyone

Else Doing

What is

The Opposite

Of this

*** Anything that is/could be seen asunusual, unexpected, anomalous*** How Can I make money


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Information asymmetry and prior

knowledge Tend to notice information that they know.

Prior knowledge triggers recognition of the value of the new information.

Three major dimensions of prior knowledge are important to the process of

entrepreneurial discovery: Personal Interest

Domain know how and expertise

Process Related Knowledge

Market related knowledge,

Ways to serve markets, and

Customer related knowledge.


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Prior knowledge access to

appropriate information Information gathered through rich and varied life

experience

Leveraging a rich and varied network of contacts

and associates


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Social Networks Entrepreneurs who have extended networks identify significantly

more opportunities

Social network includes the entrepreneurs inner circle (the set of people with whom an entrepreneur has long-term, Stable relationships, (they are not partners in the venture),

action set (people recruited by the entrepreneur to provide necessaryresources for the opportunity),

partnerships (start-up team members),and

a network of weak ties (a network used to gather general informationthat could lead to identifying an opportunity or to answering a generalquestion)


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Personality traits, including risk-taking,

optimism and self efficacy, and creativity.

Perceived self-efficacy leads to optimism and a

higher propensity to see opportunities rather than

threats in any given situation.

Successful entrepreneurs discover opportunities that

others do not see.


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Active Search

Entrepreneurs are more likely to engage in active

search for opportunities

Focused in a particular domain: rely more heavily

on personal contacts and specialized publications

than on sources of general information


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Pattern Recognition in Opportunity

Recognition


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Thanks forThanks foryour participation!your participation!


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Email: [email protected]

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BOI Presentation (1)