2 Summary Opportunity and the Concept Summary In the field of observation, chance only favors minds which are prepared. Louis Pasteur Summary How can an entrepreneur identify and select a valuable opportunity? The choice of an opportunity and the decision to act is a critical juncture in the life of an entrepreneur. With the decision to act, the entrepreneur prepares a business summary for the venture that is used to test the new venture with potential investors, employees, and customers. Chapter 2: Summary Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Six steps to acting as an entrepreneur Chapter 2: Figure 2.1 Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Types of Opportunity: Opportunity Pull: the size of the opportunity attracts opportunity seekers to attempt to exploit it. Example: A drug to mitigate the effect of Alzheimer’s disease. Chapter 2: concept Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Types of Opportunity: Capability Push: a new technology or capability causes a search for new applications. Example: Digital Television Chapter 2: concept Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Nine Categories of Opportunity: 1. Increasing the value of a product or a service 2. New applications of existing means or technologies 3. Creating mass markets 4. Customization for individuals 5. Increasing reach 6. Managing the supply chain 7. Convergence of industries 8. Process innovation 9. Increasing the scale of the firm Chapter 2: Table 2.1 Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Evaluating an Opportunity: Sources of Discontinuities I. Society Aging society Lifelong education Food and population Regulation II. Technology Innovation Disruptive technologies New knowledge III. Markets Deregulation Supply chain disruption Chapter 2: Table 2.2 Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Characteristics of Entrepreneurial Teams • Positive attitudes towards independence, achievement, and innovation • Acceptance of risk and demanding work effort • Capabilities matching the needs of the venture • Willing to make the commitment required • Passionate about the opportunity Characteristics of the Context • Timeliness • Favorable industry conditions • Future conditions appear favorable 100% 50% 50% 100% 100% 50% 0% Characteristics of the Opportunity • Novelty of the product • Potential for sustainable long-term success • Potential for good return on investment • Potential for a growing market • Good risk-versus-reward balance • Customers are known and responsive 50% Resources • Capable of securing access to the human, financial, and physical resources required by the opportunity 100% Chapter 2: Figure 2.4 – Evaluating An Opportunity Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Chapter 2: Figure 2.5 - The seven domains of attractive opportunities Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary The Elements of a Business Concept Summary Explain the problem or need and identify the customer. Explain the proposed solution and the uniqueness of the solution. Tell why the customer will pay for the solution. Chapter 2: Table 2.8 Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary The Elements of the Business Story Background Describe the current situation, the characters, and the problem. Challenge Describe the challenges and conflicts that impede a coherent plan to solve the problem. Resolution Portray a solution to the challenges and the problem and how the venture will succeed by resolving the problem. Chapter 2: Table 2.9 Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary The Elements of an Executive Summary Business Concept: The problem and the solution Market, Customer, and Industry Marketing and Sales Strategy Organization and Key Leaders Financial Plan: Four years of summary results Financing and Key Allies Required Chapter 2: Table 2.12 Technology Ventures: From Idea to Enterprise

2 Opportunity and the Concept Summary Principle 2 The capable entrepreneur knows how to identify, select, describe, and communicate an opportunity that has good potential to become a successful venture. Chapter 2: Principle 2 Technology Ventures: From Idea to Enterprise

2 VENTURE CHALLENGE Opportunity and the Concept Summary Consider the opportunity you identified at the end of chapter 1. Evaluate it using Table 2.6’s principles and Table 2.7’s process. Write a concept summary using the format provided in Table 2.8. Create a brief business story for the opportunity (venture) as summarized in Table 2.9 and present it to your team. Be sure to clearly describe the product or service, what problem it is solving, and who the customer is. Chapter 2: Venture Challenge Technology Ventures: From Idea to Enterprise

DVD Videos 2 “Find a Wave and Ride It” Erik Straser (MDV) Opportunity and the Concept Summary 2 DVD Videos “Find a Wave and Ride It” Erik Straser (MDV) “Some Disruptive Technologies and Opportunities” John Doerr (KPCB) Chapter 2: DVD Videos Technology Ventures: From Idea to Enterprise