New Venture Development Week-3 Instructor: Bora ÖZKENT

Today’s Agenda Goals Discussion Topics Identify sources of information for finding and screening venture opportunities. Conceive of the “next sea-changes” related to recent advances in technology, and societal, demographic, and environmental trends. Explain the role that ideas, pattern recognition, and the creative process plays in entrepreneurship. Define the differences between an idea and an opportunity. Assess opportunity via a zoom lens on the criteria used by successful entrepreneurs, an-gels, and venture capital investors in evaluating potential ventures. Discussion Topics Discussion-1: Where do good ideas come from? Exercise 4- Idea generation guide

Customer Development Model

Idea to Opportunity Have we identified a problem a customer wants to see solved? Does our product solve this customer problem or need? If so, do we have viable and business model? Have we learned enough to go out and sell?

Discussion 1 Where do good ideas come from?

Sources of Ideas Opportunity Screening Innovation Sea (ecosystem) changes Trend spotting Pattern recognition Cloning, Inspiring, Adapting Social networks Past Experience Innovation Coincidence/Accident Problem/need observation Blue ocean strategy Creative thinking Customer development

Sea Changes 5-7

See Changes and Business Opportunites Sea Change Venture Apple Store 3 D Printing Customer Experience Value Chain Change Political Sea Change Apps Omote 3D Simit Sarayı Amazon.Com Business in Northern Iraq

What Sea Changes Do You Observe? Global Politics YOU Customer Trends Value Chain Changes Economy Paradigm Shifts Politics New Technology Nature & Environment Rules & Procedures

Opportunities By Observing Existing Businesses Trend Spotting Cloning Inspiring Adapting Brontosaurus Effect Cloo and Sharing Economy Ebay-Gittigidiyor Aldi-Bim Walmart-Staples Sompa Japan

RAIN React Assume INsist

Yes but... We tried that before… This won’t work because… We have no time... What good is it for us? Prepare a presentation about it... This will cost too much... It sounds good in theory but...

SUN Suspend Understand Nurture

Sources of Ideas Opportunity Screening Sea (ecosystem) changes Trend spotting Pattern recognition Cloning, Inspiring, Adapting Social networks Past Experience Innovation Coincidence/Accident Problem/need observation Blue ocean strategy Creative thinking Customer development

Innovation is bringing new solutions to unsolved problems.

WILLINGNES to SEE and SOLVE PROBLEMS

Problems w/h electrc cars: Let’s Try Problems w/h electrc cars: Expensive Battery (10.000$) Short Range (150 KM) Takes too Long to Charge (5-6 Hours)

No Problem No Innovation

Easy Methods for Discovering Observing Feeding Recording Cataloguing Reviewing Using problem lists

CUSTOMER INSIGHT

For the Next Week (Edition 9) Reading: Timmons and Spinelli, Chapters 4 and 7 Discussion-1: In what ways does looking through sustainability lens change how an entrepreneur approaches a new venture opportunity? Discussion-2: How has the communications revolution become a major driver of entrepreneurial thinking and opportunities in sustainable, green business models? Discussion-3: What is an example of a wicked problem facing humanity, and what types of opportunities might arise for social entrepreneurship in that space? Case: Northwest Community Ventures Fund (Page 233)