1. Entrepreneurial opportunities
Attractive, timely, durable, provide value

2. Opportunities defined
Situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at a price that is greater than their cost of production (Casson, 1982)
An opportunity that is attractive, durable, timely, and grounded in a product or service that delivers value to a customer (Armstrong)

3. Run a prison! Timely? Durable? Attractive?
Grounded in a product or service that delivers value to a customer?

4. Pet rocks! Timely? Durable? Attractive?
Grounded in a product or service that delivers value to a customer?

5. Type writer repair! Timely? Durable? Attractive?
Grounded in a product or service that delivers value to a customer?

6. “Handheld electronic device”
Timely?
Durable?
Attractive?
Grounded in a product or service that delivers value to a customer?
Apple Newton Message Pad,
iPhone 4S and iPhone 5

7. Takeaways
You must meet all criteria (attractive, timely, durable, provides value) to ensure quality of opportunity
Experiment, prototype, and protect intellectual property (see Apple Newton example)
Prepare for imitators – what is unique about your offering?

8. The business model canvas
For opportunity development, focus first on:
The customer segment that has the unmet need and
The value proposition that fulfills the unmet need
This approach combines the market with the unmet need with your idea

9. 1 Customer Segments The Customer Segments Building Block defines
the different groups of people or organizations an
enterprise aims to reach and serve

10. Customer Segments Customer groups represent separate segments if:
Their needs require and justify a distinct offer
They are reached through different distribution channels
They require different types of relationships
They have substantially different profitabilities
They are willing to pay for different aspects of the offer

11. Examples of Customer Segments
Mass market
Niche market
Segmented
Diversified
Multi-sided platforms (or multi-sided markets)

12. 2 Value Propositions
The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment
The Value Proposition is the reason why customers turn to one company over another.

13. Examples of Value Propositions
Newness
Performance
Customization
“Getting the job done”
Design
Brand/status
Price

14. Can you pitch your idea yet?
The burning pain or unmet need your constituency is experiencing
Your brilliant, naturally following solution
Why you are different and better than their current solution
Why go with you?
A call to action.

15. Market behaviors
Use the journalistic interrogatives to quantify your target market’s behaviors and determine your value proposition:
When do they have their big pain? (contingency)
How many people x How often? (= units purchased) x How much they spend (= total revenues from solution/period)
Where? (point of sale)
How does your solution deliver value?

16. Macro-market analysis
See PDF

17. Opportunity Recognition, Shaping and Re-shaping

18. Idea-to-opportunity transition
Seed of idea
Idea
Viable
Opportunity
Passion
Professional
Experience
Idea
Multiplication

19. Idea multiplication – IDEO technique
Gather
Stimuli
Observe 1
Multiply
Stimuli
Brainstorm/brain-write 2
Create
Customer
Concepts
Build a simple mock up 3
Optimize
Practicality
Add/remove features 4

20. Designing a better consumer experience
Observation
Brainstorming
Rapid prototyping
Refining
Implementing

21. Observation Understand the consumer experience by:
Shadowing. Observing people using products, shopping, going to hospitals, taking the train, using their cell phones.
Behavioral mapping. Photographing people within a space, such as a hospital waiting room, over two or three days.
Consumer Journey. Keeping track of all the interactions a consumer has with a product, service, or space.
Camera Journals. Asking consumers to keep visual diaries of their activities and impressions related to a product.

22. Observation
Camera Journals. Asking consumers to keep visual diaries of their activities and impressions related to a product.
Extreme User Interviews. Talking to people who really know – or know nothing – about a product or service, and evaluating their experience using it.
Storytelling. Prompting people to tell personal stories about their consumer experiences.
Unfocus Groups. Interviewing a diverse group of people: To explore ideas about sandals, IDEO gathered an artist, a bodybuilder, a podiatrist, and a shoe fetishist.

23. Brainstorming
An intense, idea-generating session analyzing data gathered by observing people. Each lasts no more than an hour. Rules of brainstorming are strict and are stenciled on the walls:
Defer Judgment. Don’t dismiss any ideas.
Build on the Ideas of Others. No “buts,” only “ands.”
Encourage Wild Ideas. Embrace the most out-of-the box notions because they can be the key to solutions.

24. Brainstorming
Go For Quantity. Aim for as many new ideas as possible. In a good session, up to 100 ideas are generated in 60 minutes.
Be visual. Use yellow, red, and blue markers to write on big 30-inch by 25-inch Post-Its that are put on a wall.
Stay focused on the topic. Always keep the discussion on target.
One conversation at a time. No interrupting, no dismissing, no disrespect, no rudeness

25. Rapid Prototyping
Mock up working models to help everyone visualize possible solutions and speed up decision-making and innovation. Guidelines:
Mock up everything. It is possible to create models not only of products but also of services such as health care and spaces such as museum lobbies.
Use videography. Make short movies to depict the customer experience.
Go fast. Build mock-ups quickly and cheaply. Never waste time on complicated concepts.

26. Rapid Prototyping
No frills. Make prototypes that demonstrate a design idea without sweating over the details.
Create scenarios. Show how a variety of people use a service in different ways and how various designs can meet their individual needs.
Bodystorm. Delineate different types of consumers and act out their roles.

27. Refining Narrow down the choices to a few possibilities:
Brainstorm in rapid fashion to weed out ideas and focus on the best remaining options
Focus prototyping on a few key ideas to arrive at an optimal solution to a problem
Engage the client actively in the process of narrowing the choices

28. Refining Be disciplined and ruthless in making selections
Focus on the outcome of the process – reaching the best possible solution.
Get agreement from all stakeholders. The more top-level executives who sign off on the solution, the better the chances of success.