ENT 3003 Exam 1 1 Action plan a series of small experiments to provide feedback and help them test and rework the original ideas until they best meet the needs of the customer a Seeff stage 5 of the creation process implementing the action plan to turn the idea 2 Brainwriting collaborative activity that involves getting ideas down on paper and then organizing the ideas and creating themes a Each individual writes 3 ideas on 3 Post its b Everyone take 3 Post its they didn t create looks at them and write 3 new ideas on c Process repeats for several rounds until all Post its are placed on a white board which beings the process of finding common themes and combining ideas 3 Business associates a personal network friends associates acquaintances a Rich source of innovative ideas b Refine ideas direct to resources c Built from a concentrated effort of entrepreneurs to go out and meet new people into reality Post its daily 4 Business concepts a concise description of an opportunity that contains 4 elements the value proposition the customer definition the product service being offered and the distribution channel a Can be thought of as an elevator pitch entrepreneurs only have a few seconds to get an investor interested in a business concept b Also gives focus to the development of the business 5 Competitive analysis assessing the competition to find ways to create new value that customers will pay for a 3 types of competitors i ii iii Direct Indirect substitute Emerging potential b Collecting information about competitors current market strategies management style and culture pricing strategy customer mix promotional mix c Dealing with competition provide meaningful differentiation in their solutions to consumer needs plan to maintain a market focus after launch quickly focus on developing relationships with key people in the supply chain and key customers 6 Contemplation quiet time on a regular basis trains the mind to shift quickly into the creative mode and helps make creative thinking a habit 7 Corporate ventures entrepreneurial like ventures inside large companies a Also called corporate entrepreneurship intrapreneurship b skunk works route an autonomous group is given the mandate to find and develop new products for the company that may even be external to the company s core competencies Typically operate outside the traditional lines of authority more flexible fast and creative work environment c iii Inside existing structures to succeed must have i ii Senior management commitment difficult to move project forward without A champion several champions at the highest levels who can open doors make valuable contact lend credibility Corporate interoperability environment must encourage collaboration while also allowing the entrepreneur a higher degree of autonomy Clearly defined stages and metrics need a timeline and a way to measure on progress and success A superior team Spirit of entrepreneurship v vi iv 8 Creation theory entrepreneurs are the actors they create opportunities via their actions reactions and experiments around new products services and business models a Act and then monitor how customers respond to actions b Willing to generalize from small samples take more risk with less information and rely on their own abilities to develop the opportunity 9 Creativity basis for invention enables entrepreneurs to differentiate their businesses from competitors critical skill for recognizing or creating opportunity 10 Customer matrix lays out the benefits distribution channel product service and potential competition for each of the identified customer segments 11 Customer profile a description of the primary customer that comes from the primary research Includes Income level a Age b c Education d Buying habits when where how much e Where these customers typically find these types of products services f How they would like to purchase 12 Decade of entrepreneurship 1980s a Early 1980s business was in terrible shape To become competitive small more flexible entrepreneurial manufacturers hired subcontractors who could perform tasks more efficiently b Big business downsized and reversed the trend of diversification Restructuring and reorganizing resulted in improved performance increased profits and higher stock prices c Late 1980s young entrepreneurial ventures were internationalizing much earlier than expected and at a much smaller size 13 Design and development process goal is to bring new products to a market at the right time and for the right cost so that customers will pay a price that reflects value to them a Design the activity that transforms a set of requirements into a format that brings all the elements into an integrated system i Form texture color fit user interfaces production and assembly processes to manufacture parts and the methods for joining all the parts together Critical determines features and performance reliability price appeal and cost ii 14 Discovery theory opportunity arises from shifts in external factors in the market or industry such as regulation technological changes and changes in customer preferences a Opportunities are waiting for an entrepreneur to discover them so require a more systemic approach to scanning the environment b Alertness awareness c Decision making under high levels of risk 15 Disruptive radical innovations make previous technology and ways of doing this obsolete and in general can find no identifiable market in the earliest stages of development a Often patented b Internet birth control pill transistor 16 Distribution channel how benefits are delivered to the customer best option fulfills the customer s expectations about where and how the product service should be sold 17 Economies of scale marking production distribution costs to produce have declined relative to the price of their goods and services a Barrier to entry for new ventures that cannot easily achieve these same economies b Form alliances with other small firms to share resources and compete on a more level playing field 18 Eligible for a patent a patent gives the patent holder right to defend the product against other who would attempt to manufacture use or sell the invention during the period of the patent Must fit into one of five classes a Machine something with moving parts circulatory b Process or method for producing a useful and tangible result c Article of manufacture d Composition of matter e New use or improvement for one of the above that does not