1. 13 Summary Acquiring and Organizing Resources
To get profit without risk, experience without danger, and reward without work, is as impossible as it is to live without being born.
A.P. Gouthev
Summary
How can entrepreneurs efficiently acquire and organize the resources needed to launch their venture?
Successful entrepreneurs are good at locating and acquiring the resources they need to start and build their firm. They need capital, people, and intellectual and physical assets to launch and grow their business.
Chapter 13: Summary
Technology Ventures: From Idea to Enterprise

2. 13 Acquiring and Organizing Resources
Another useful definition of entrepreneurship is the pursuit of opportunity without regard to resources currently controlled.
Chapter 13: Entrepreneurship
Technology Ventures: From Idea to Enterprise

3. Sources of Capabilities Sources of Financial Capital
Acquiring and Organizing Resources 13
The Credibility Cycle
Physical Assets
Sources of Capabilities
Suppliers
Sources of Financial Capital
Talent-People
Customers
The Credibility Cycle
Chapter 13: Figure 13.1
Technology Ventures: From Idea to Enterprise

4. 13 Acquiring and Organizing Resources Sources of Legitimacy
•Regulatory — Legal actions, accreditation, credentials
•Social — Fair treatment, endorsements, networks, image
•Industry — Attractive, respected industry, known and understood business model
•Talent — Known, respected people
•Location — Within an industry cluster, good location, visible
•Intellectual Property — Trade secrets, patents or copyrights
Chapter 13: Table 13.1
Technology Ventures: From Idea to Enterprise

5. 13 Acquiring and Organizing Resources Principles of Persuasion
Cialdini, 2008.
Consistency
•People adhere to their verified commitments
•Ask for voluntary, public commitments
Authority
•People highly regard experts
•Show and state your expertise.
Scarcity
•People want scarce products.
•Describe unique benefits
Liking
•People like those who like them.
•Uncover shared bonds and offer sincere praise and compliments
Reciprocity
•People respond in kind to others
•Give to others what you want to receive
Social Proof
•People respond to a display of endorsements by people they trust
•Use testimonials and endorsements from trusted leaders
Chapter 13: Table 13.2
Technology Ventures: From Idea to Enterprise

6. 13 Acquiring and Organizing Resources Criteria for Location Selection
Availability of potential employees and consultants
Availability of complementor firms
Road and airplane transportation
Quality of life — education, culture, recreation
Costs of doing business
Availability of suitable facilities
Proximity to markets
Availability of support services
Affordable housing
Chapter 13: Table 13.3
Technology Ventures: From Idea to Enterprise

7. 13 Acquiring and Organizing Resources
A cluster is a geographic concentration of interconnected companies in a particular field. Clusters can include companies, suppliers, trade associations, financial institutions, and universities active in a field or industry
Chapter 13: E-commerce
Technology Ventures: From Idea to Enterprise

8. 13 Acquiring and Organizing Resources
Characteristics for innovation in a cluster setting
Chapter 13: Table 13.5 – clusters
Technology Ventures: From Idea to Opportunity

9. 13 Acquiring and Organizing Resources
E-commerce: digitally enabled commercial transactions between and among organizations and individuals.
Chapter 13: E-commerce
Technology Ventures: From Idea to Opportunity

10. 13 Acquiring and Organizing Resources
Value chain: a sequence of business activities for transforming inputs into outputs that customers value, as depicted below.
Chapter 13: Value Chain, Figure 13.2
Technology Ventures: From Idea to Enterprise

11. 13 Acquiring and Organizing Resources
Questions for Selecting Value Chain Activities that will be carried out by the New Venture Firm
1. Value: Is the activity a primary source of product value for the firm?
2. Rarity: Does the activity include a resource or capability controlled by the firm and rarely available to competing firms?
3. Imitability:Do competing firms have a cost disadvantage when imitating the scarce resource or capability held by the new venture firm?
4. Organizational Mission: Is the activity critical to the mission of the firm and is the firm organized to exploit this valuable, rare, and costly to imitate resource or capability?
Chapter 13: Table 13.7
Technology Ventures: From Idea to Enterprise

12. 13 Acquiring and Organizing Resources
Virtual organization: manages a set of partners and suppliers linked by the Internet, fax, and telephone to provide a service or product.
Chapter 13: Virtual Organization
Technology Ventures: From Idea to Enterprise

13. 13 Acquiring and Organizing Resources
The Seven Key Characteristics of a New Basic Technology
• Functional Performance — an evaluation of the performance of the basic function
• Acquisition Cost — initial total cost
• Ease of Use — use factors
• Operating Cost — cost per unit of utility provided
• Reliability — needs for service and useful lifetime
• Serviceability — time and cost to restore a failed device to service
• Compatibility — fit with other devices within the system
Chapter 13: Table 13.9
Technology Ventures: From Idea to Enterprise

14. 13 Acquiring and Organizing Resources
Effective new ventures use their persuasion skills
and credibility to secure the required resources
for their firm in order to build a well coordinated
mix of outsourced and internal functions.
Chapter 13: Principle
Technology Ventures: From Idea to Enterprise

15. VENTURE CHALLENGE 13 How do you plan to attract talent and resources?
Acquiring and Organizing Resources 13
VENTURE CHALLENGE
How do you plan to attract talent and resources?
What location have you selected? Describe your use of online commerce.
Describe what functions your venture will outsource.
Chapter 13: Venture Challenge
Technology Ventures: From Idea to Enterprise

16. DVD Video 13 “Outsourcing” Jeff Hawkins (Palm)
Acquiring and Organizing Resources 13
DVD Video
“Outsourcing”
Jeff Hawkins (Palm)
Chapter 13: DVD Video
Technology Ventures: From Idea to Enterprise