Enterprise The New Business Proposition E n t r I e n p n - - PowerPoint PPT Presentation

From Opportunity to Enterprise

The New Business Proposition

Means-Ends Framework New Value Equation I n n

• v

a t I

• n

E n t r e p r e n e u r s h i p Resources and Organization Customers Benefits

Combines Rearranges/Reverses Enhances/Enlarges Adapts/Adopts Transforms/Modifies Eliminates Substitutes

New Value Proposi- tion?

How the Entrepreneur C R E A T E S

Creativity ty

Combine

 What ideas can be combined?  Can we combine purposes?  How about an assortment?  How about a blend, an alloy, an ensemble?  Combine units?  What other articles could be merged with this?

How could we package a combination?

 What can be combined to multiply possible

uses?

 What materials could we combine?  Combine appeals?

Rearrange/Reverse

 What other arrangement can be better?  Interchange components?  Other pattern? Other layout?  Other sequence? Change the order?  Transpose cause and effect?  Change place?  Change schedule?

Rearrange/Reverse cont

 Can I transpose positive and negative?  What are the opposites?  What are the negatives?  Should I turn it around? Up instead of down? Down instead of up?  Consider it backwards?  Reverse roles?  Do the unexpected?

Eliminate

 What if this were smaller?  What should I omit?  Should I divide it? Split it up? Separate

into different parts?

 Understate?  Streamline? Miniatuarize? Condense?

Compact?

 Subtract? Delete?  Can the rules be eliminated?  What’s not necessary?

Adapt

 What else is like this?  What other idea does this suggest?  Does the past offer a parallel?  What could I copy?  What other process could be adapted?  What different contexts can I put my

concept in?

 What ideas outside my field can I

incorporate?

Adopt/Put to Other Uses

What else can this be used for? Are there new ways to use it as it is? Other uses if modified? What else could be made from this? Other extensions? Other markets?

Transform/Modify

How can this be altered for better? What can be modified? Is there a new twist? Change meaning,

colour, motion, sound, odour, form, shape?

Change name? Can the package be combined with the

form?

Enhance/Enlarge/Magnify

 What can be magnified, made larger or

extended?

 What can be exaggerated? Overstated?  What can be added? More time? Stronger?

Higher? Longer?

 How about greater frequency? Extra

features?

 What can add extra value?  What can be duplicated?  How could I carry it to a dramatic extreme?

Substitute

 What can be substituted? Who else? What

else?

 Can the rules be changed?  Other ingredient? Other material?  Other process? Other Procedure?  Other power?  Other place?  Other approach?  What else instead? What other parts

instead of this?

Combine: MT908

 Stainless steel tool  Size of a credit card  11 useful functions  A must-have for the camper or

backpacker

 Product Description  This credit card-size multi-function survival tool

includes

 a can opener, knife edge, screwdriver, ruler, cap

• pener, 4-position wrench, butterfly screw wrench,

saw blade, direction ancillary wrench, 2-position wrench, and a keychain hole- comes with a pouch

Combine ……

Reversing

 Compressed air  Vacuum cleaner

Rearrange

Eliminate

Adapt

HumaPen(R) MEMOIR(TM), world's first reusable insulin pen with memory Available by prescription MEMOIR tracks the date, time and amount of the last 16 doses, including the priming dose, a function that may help simplify the daily process

• f diabetes management

Its writing pen design enables the potential for more discreet insulin injections in public

Modify and Adopt

 Using

their knowledge

• f

hydraulics acquired in the six years

• f

building planes, they started making pumps for deep wells and revolutionised the Californian

• range-growing

industry by providing vastly- improved means of irrigation.

 Candido had a son — Kenneth —

who suffered from rheumatoid arthritis and who needed hydrotherapy treatment in hospital. The child was in great pain most of the time, but in 1948, his father modified one of the company’s agricultural pumps to swirl the water in his bath and the resulting whirlpool relieved the child’s discomfort.

It was a short step from there to making a bath with built-in pumps, and from there to adding heaters and filters.

Jacuzzi

Transform and Simplify

Kalnirnay Marathi Home Calmanac

Sales: 15,115,173

Enlarge and Magnify

Substitute

Beyond the Horizon

 A critical ability for a successful entrepreneur is to

make appropriate predictions regarding the uncertain future

 Discovery of new resource  New consumer desires  New technological opportunities

• Correctly anticipate consumer preferences and

efficiently use resources to meet these preferences

• The goal of an entrepreneur is to know the consumer’s

future wants

Before the consumer knows them

Entrepreneurial Process Leading to New Entreprise

Searching Tasks

Task 1: Conceive a unique idea for a business Task 2: Identify market opportunities for a new business

Planning Tasks

Task 3: Plan for a new enterprise Task 3: Assess the feasibility

Marshalling Tasks

Task 5: Raise money to start a business Task 6: Convince others to invest in your business Task 7. Convince others to work for you in your new business

Implementing Tasks

Task 8: Manage a small business Task 9: Manage rapid growth

Successful New Venture

Feasibility Analysis

Situation : Uncertain Resources : Inadequate Time to Complete : Unpredictable

What is Feasibility Analysis?

 The process of determining whether a business

idea is viable

 Preliminary evaluation of a business idea

conducted for the purpose of determining

whether the idea is worth pursuing

 Takes the guesswork (to a certain degree) out of a

business launch and

provides an entrepreneur with a more secure

notion that a business idea is feasible or viable

When to Conduct a Feasibility Analysis

 Timing of Feasibility Analysis

The proper time to conduct a feasibility

analysis is early in thinking through the prospects for a new business

The objective is to evaluate the opportunity

before a lot of resources are spent on pursuing the idea

 Elements of a Properly Conducted Feasibility

Analysis

A properly conducted feasibility analysis

includes four separate elements

Elements of Feasibility Analysis

Proposed Business Venture Product/ Service feasibility Industry/ Market feasibility Organizational feasibility Financial feasibility

Spending the time and resources necessary to move forward with the business opportunity depends on…

Product/ Service Feasibility Analysis

 Assessment of the overall appeal and acceptance

• f the product or service being proposed

 The idea is that before the new venture rushes a

product or service into development

it should be confident that the product or service

is what its prospective customers want

 The two components of a product/ service

feasibility analysis are:

 Concept testing  Usability testing

Product/Service Feasibility

Three Purposes of Conducting a Concept Test

Purpose How it is accomplished Validate the underlying premises of a product

• r service idea

This can be accomplished via personal interviews, phone interviews, and focus groups and simply by watching people perform relevant tasks.

Help develop an idea

A firm may show a product idea to a prospective customer, get feedback, and tweak the idea. Then, in an iterative manner, they’ll show the idea to more potential customers, get feedback and tweak the idea some more, and so on.

Estimate the potential market share the product

• r service might command

Some type of buying intention question appears in almost every concept test, usually in the form of a survey questionnaire.

Key Questions to Answer Prior to Writing a Concept

 Who is my target audience?  What characteristics differentiate my target audience

from the general population?

 What problem does my product solve?  How does my product or service provide their desired

solution?

 What differentiates my product from other potential

solutions?

 What reassurances do they need that my product or

service will solve their problem?

 What price will they be willing to pay?

Writing a Winning Concept

• Insight:
• To be successful, a concept must clearly state the

consumer insight (need)

• Point of Difference:
• How the product will meet the need uniquely
• Reasons to Believe:
• Provide convincing proof
• Rational Benefits:
• Appeal to logic in line with current situation
• Emotional Benefit:
• Make customer feel happy and delighted

Sell Water?

• Insight:
• People are suffering from ill health : both sons had

jaundice

• Point of Difference:
• Water with maximum purity as against mere filtration
• Reasons to Believe:
• Health is top priority
• Rational Benefits:
• Pure, safe drinking water
• Emotional Benefit:
• I will feel good about myself knowing that I am taking

care of my family

Turnover Rs 500 + crore Price Rs 15,000 to Rs 20,000

Success factors * In 1999, RO purifiers were not available * Kent created a product & demand for it * First to bring a wall-mounted RO purifier * In 2005, Kent roped in Hema Malini Success factors * Purifiers certified by WQA & NSF, USA * In 2006, launched mineral RO purifier * In 2013, launched no-wastage purifier that collects the impure water for recycling

The company is growing at 30 per cent and leads the Rs 3,000-crore market for RO water purifiers with a 35-40 per cent market share.

Our Mission: freedom from water-related problems and peace of mind for good health Our fundamental vision is defined by producing innovative healthcare products that purify the water we drink, the food we eat and the air we breathe, and thus help people live healthier.

Eat Healthy with KENT Ozone Veg & Fruit Purifier Remove harmful farm chemicals & micro-organisms Breathe Pure with KENT Ozone Air Purifiers Make indoor air pure & germ free Wash & Bath Better with KENT Water Softeners Convert hard water into soft water