CHAPTER 1

DEFINE TECHNOPRENEUR
A form of entrepreneurship and business leadership focused on identifying high-potential, technology-intensive business
opportunity for possible exploitation into new product or service, based on revolutionary breakthrough in technology or
technological advancement.

FACTORS MOTIVATING TECHNOPRENEUR

i. Timely: current need, unmet demand or problem; be at right time.
ii. Solvable: problem that can be solved in near future with accessible resources.
iii. Important: a customer deems their problem or need as important aspect.
iv. Profitable: customer will pay for the solutions and allow the enterprise to profit.
v. Context: a favorable regulatory and industry situation.

SOURCES OF INTELLECTUAL CAPITAL:

i. Human capital:
- There are combination of knowledge involving skill of the entrepreneurial team and business employees.
ii. Organizational capital:
- The management structure and peripherals that support the human capital.
iii. Social capital:
- The relationships and quantity of relationships that the business maintains with its suppliers, partners and
customers.

4 ENTREPRENEURSHIP KEY DIMENSIONS

i. Risk:
 Elements of uncertain outcomes or event inherent in the process of exploiting opportunity and start business - be
either low risk or high risk.
- Entrepreneur take risks to obtain higher rewards that come from higher risk - while carefully evaluate the risk first;
risk can give either advantages or disadvantages.
 Achievement acquired from calculated, thought out approach where anything possible is done to identify and
minimize potential problems.

ii. Creativity & Innovation:

 Entrepreneurship characterized by specific effort of bringing something new and different to the market.
 Creativity focuses on thinking of new things
 Innovation focuses on doing new things.

iii. Opportunity Exploitation:

 Focused on taking advantages or exploiting previously unexploited opportunity.
 Results in creation of a new enterprise or business along with the wealth associated with it.
 New enterprise: beneficial to the society and make positive changes.

iv. Pro-activeness:
 The tendency to act on information, ideas and opportunity in timely and speedy manner.
 Classified as acting at the right time and manner in superiority of an idea or opportunity.
 Differentiate between successful, less successful or failure.

PHASES OF ENTREPRENEURIAL PROCESS

i. Idea Search & Generation Phase:
 a.k.a opportunity formation or discovery phase.
 The business idea involves creating new technology or adapting existing one.
ii. Idea Evaluation & Development Phase:
 Characterized by efforts to better understanding of how to bring the idea or opportunity into full-fledge economic
activity or business.
iii. Idea Exploitation Phase:
 Characterized by the decision to pursue business opportunity or not.
 CHAPTER 2

DIFFERENCE BETWEEN CREATIVITY, INNOVATION & INVENTION

CREATIVITY INNOVATION INVENTION
The production of new and useful Specific instrument of A product of research.
idea as well as the ability to entrepreneurs, where they can
Definition discover new way of looking exploit change as opportunity for
problem and opportunity. different business or service.
Ability to use imagination in Ability to apply creative solution Not all inventions lead to
Outcome developing new idea, things or to problems and opportunity to commercially viable outcome.
solutions. enhance people’s live

TECHNIQUES IN STIMULATE & DEVELOP CREATIVE THINKING SKILL

i. Problem reversal: see things at the opposite, inside-out or upside-down to understand that things.
ii. Forced analogy: gain new insights - force relationship between almost everything.
iii. Brainstorming: generate ideas based on principle of suspending judgments.
iv. Lateral thinking: explore multiple possibilities from different perspective rather than pursuing conventional single
approach.
v. Attribute listing: separate thing into smaller parts and develop ideas to improve on them.

PHASES OF CREATIVE PROCESS

PHASE 1 - BACKGROUND OR KNOWLEDGE ACCUMULATION
 Study subject matter background by reading, discussion with experts, researchers in the field.
 Expose entrepreneurs to variety of perspective on the subject matter.

PHASE 2 - MIND INCUBATION PROCESS

 Individual immerses himself in the data allowing subconscious mind to muse or ponder on the information gathered.
 Distance from subject matter and letting subconscious mind working on it allow creativity to burst.

PHASE 3 - IDEA EXPERIENCE

 Occur when discovering solution or new solution. Idea may appear suddenly or may come incrementally and begin
formulating the solution.
 Getting more ideas by imaging about the project and always keep a notebook to record emergence of ideas at odd
hours.

PHASE 4 - EVALUATION & IMPLEMENTATION

 Stage that require discipline, courage and perseverance.
 More possibilities of failure.
 Testing idea before the best workable ideas is put into final form and successfully implemented.
 CHAPTER 3

DEFINE ENTREPRENEURIAL OPPORTUNITY

Situation in which new product, services and processes introduced and sold at greater than the cost of production.

CONCEPT OF “WINDOW OF OPPORTUNITY”

i. Entrepreneur must hit the “Window of opportunity” for which the opportunity exited.
ii. Defined as short period of time during which an opportunity must be acted or missed.
iii. Describe the time period in which a firm can realistically enter new market.
iv. Deemed to be “open” or “close” to denote degree of attractiveness at a particular time.
v. Term “open” refer to opportunity lending itself to be exploited at that time because it has value and potential for
wealth creation.
vi. Term “close” refer to opportunity potential diminished due to being exploited by another entrepreneur or that
period of time is out-of-date or obsolete.

OPPORTUNITY ANALYSIS PROCESS

EVALUATING ENTREPRENEURIAL OPPORTUNITY

INTERNAL FACTORS
1. Capabilities: The ability or quality such as knowledge, experience, and skill necessary to develop business venture.
2. Resources: Include financial, physical and human resources consistent with the magnitude of business venture.
3. Interest: The will or passion to pursue the business venture.

EXTERNAL FACTORS
1. Market: Involves determining the market size and potential customer.
2. Financial: Determining the incurred cost in developing business venture,
3. Technical: Determining the requirements to proceed with the idea that include machineries, raw materials, the
processes and infrastructure.
4. Economic forces: Direct impact on level of disposable and customer buying patterns.
5. Social and cultural trend: Understanding impact of social and cultural trend on new product, service, and business
idea, a fundamental price of opportunity recognition puzzle.
6. Technological advance: Provide opportunity to help people satisfy basic needs and desire more convenient way.
7. Political and regulatory changes: New regulators lead to new business and opportunity to start firms and help
companies comply with the laws.
 CHAPTER 4

WHY CONDUCT FEASIBILITY STUDY?

i. To determine whether the idea is viable or worth pursuing.
ii. Surface new opportunities.
iii. To provide quality information for decision making.

COMPONENT OF FEASIBILITY STUDY [MARKET, TECHNICAL, ORGANIZATIONAL, FINANCIAL]

MARKET FEASIBILITY STUDY
Definition:
An assessment of market’s overall appeal for the product or service being proposed.

Aspect:
i. Product or services - before enter the market, it should meet the prospective customer needs and wants.
Product: defined as anything that can be offered to a market for attention, acquisition, or use that might satisfy a
need or want (Kotler, 2008).
Service: defined as any activity or benefit that one party can offer to another, essentially intangible and doesn’t
result in ownership of anything (Kotler, 2008).

ii. Customers:
Refer to individuals and household, business organization local as well as international and government organization
that buy a product and service for consumption - target market for organization’s product and service.

iii. Market Demand:

Refer to the local potential purchase expected from target market - normally expressed in units or Ringgit.
Information on market demand is critical in determining the viability of proposed product or service. Market demand
can be calculated base on population of the target market, number of houses in the target market or competitor’s
sales.

iv. Competitors:
Refer to other business that provides similar, substitute or alternative product/service to the same market segment.
In competitors analysis, the business not only has to identify who are the major competitor but also the number of
competitors in the market. The presence of the competitors can effect immensely on the success of the business
product/service that enter the market.

v. Market Shares:
Refer to the portion of the market that the business can control after taking consideration market demand and the
competitors’ position in the same market - normally in form of percentages of total demand.

TECHNICAL FEASIBILITY STUDY

Definition:
Determine whether the business has the necessary technology and equipment to the produce of intended
product/service.

Aspect:
i. Technology equipment
The business should identify the type of technology to be used and need to know whether the technology is
accessible for purposed business venture. Must also identify types of equipment required. The cost of technology
and equipment needs to be included in determining the feasibility of the venture. The ability to obtain the
technology and equipment will affect the start-up timeline.

ii. Materials
The business should identify the types, quantity and quality of raw materials required. A list of suppliers for the raw
materials needs to be identified and contractual arrangements with the suppliers need to be made to ensure the
organization’s supply uninterrupted. The cost of raw materials should also be satisfactory and within budget.
iii. Manpower
The organization has to identify the technical workers required in producing the product/service - has to set
appropriate skill and the number of technical numbers needed.

iv. Location
Location refers to the place where the proposed business or project is likely to be set up. Organization should find
the location that near to market customer, near to raw material and major infrastructure.

ORGANIZATIONAL FEASIBILITY STUDY

Definition:
Determine whether the business has the necessary and sufficient human resources to bring particular product/service
idea to market successfully.

Aspect:
i. Organizational structure
Identify responsibilities for each job position and the relationship among those positions. Technopreneur must form
the right organization structure to accomplish the organization goals and missions.

ii. Management team

A group of individual responsible to bring product/service idea to market successfully. The organization evaluate the
power and ability of its management team to requisite passion and expertise to lunch the venture. Necessary to
identify the types of position needed and the qualification and experience required filling those positions.

iii. Compensation
Refer to monetary and non-monetary rewards in various form of payment including salary, sales commission,
allowance, bonus, EPF and SOCSO contribution.

iv. Supporting service

Refer to the assistance and service given by private agencies and government. Organization should identify
appropriate type of supporting services to launch the intended product/service.

FINANCIAL FEASIBILITY STUDY

Definition:
An assessment of the financial aspect of the business.

Aspect:
i. Start-up capital
The total cash required to start the business including the cost for purchase of non-current asset, working capital,
development cost and other expenses.

ii. Financial sources

Option to utilize either:
Internal financing - The funds provided by family, friends, partners or shareholders.
External financing - The fund available from outside organization such as loans from financial institutions, venture
capital, and business angel.

iii. Profitability analysis

Involve determining whether proposed venture is generating enough profit to make proposed venture feasible. To
conduct a profitability analysis, a 3 year financial projection must be prepared including cash flow statement, income
statement and balance sheet statement.
 CHAPTER 5

NEW PRODUCT
Any product “perceive to be new” in the mind of the consumers.

NEW PRODUCT DEVELOPMENT (NPD)

A process by which entrepreneur creates “newness” of the product physically for the purpose of selling it to the
customers.

CLASSIFICATION OF NEW PRODUCT

A NEW PRODUCT
i. A product whose technological characteristic differ slightly from those of previously produced product.
ii. Such innovation involve radically new technologies, based on combining existing products in new uses, or derived
from the use of new knowledge.

IMPROVED PRODUCT
i. An existing product whose performance has been significantly enhanced or upgraded.
ii. Simple product may be improved through use of higher-performance components or materials, or complex product
consists of numbers of integrated technical sub-systems improved by partial changes to one of the sub-systems.

STAGE OF NPD PROCESS

RESEARCH AND DEVELOPMENT
Refer to organized effort directed toward discovering new knowledge, product or process - due to limited preliminary
data which gives a critical step in new product development.

PRODUCT DESIGN
Refer to the conceptual translation of new product idea or concept based on the design - includes product design and
its architecture and required parameters to satisfy market need.

CONCEPT TESTING
Refer to initial test apply to most new product designed - involves showing a preliminary description of the product or
service to prospective customers to gauge customer interest and purchase intent.

BUILD PROTOTYPE
Refer to the first physical depiction model of the new product or service - prototype used to elicit comments from
designers and users to learn more about the product.

TEST MARKETING
Refer to carried out prior to full-scale launching of a new product - new product introduced in test marketing to a
representative sample of population to assess the market’s reaction.

COMMERCIALIZATION
CONCEPT TESTING
DEFINITION:
The initial test for most new product designed. Involve the process of using quantitative and qualitative methods to
evaluate consumer response to a product idea prior to introduction of product to the market.

PURPOSE:
 Choose most promising alternative from set of alternative.
 To get an initial notion of the commercial prospects of a concept.
 To find out who interested in the concept.
 To indicate direction of further development work.

STEP INVOLVED:
 Define purpose of the test
 Choose survey population
 Choose survey format
 Communicate the concept
 Measure customer response
 Interpret the results

METHOD OF COMMUNICATING PRODUCT CONCEPT:

 Verbal description
 Sketch
 Rendering

USABILITY OF NEW PRODUCT

DEFINITION:
A measure of a user’s experience when interacting with a product. To understand more about the product, factors that
contribute in determine usability of new product must be considered.

FACTORS:
i. Ease of learning - require question on duration of learning product’s operation.
ii. Efficiency of use - require question on speed the user need to complete necessary steps.
iii. Memorability - require question about user memory ability in using the product another time.
iv. Error frequency - require question on error occurrence the user made and the level of these errors to the product.
v. Satisfaction - require question on user’s interest on operating the product.

PRODUCT DIMENSION
i. Features - the changing in application device for the product.
E.g.: Usage of liquid instead of powder detergent

ii. Quality specification - the changing in performance capabilities of the product.

E.g.: New and improved washing detergent

iii. Packaging - the changing in promoted image of the product

E.g.: Use of bio-degradable packaging material

iv. Price - the changing in the after-sales service for the product.
E.g.: Frequency of service for motorcycle

v. Technology - the changing in the availability of the products

E.g.: Use of vending machines for top-up cards
 CHAPTER 6

INTELLECTUAL PROPERTY (IP)

DEFINITION
IP is defined as legal entitlement attached to expressed form of an idea, or some other intangible subject matter that
enables the holder to exercise exclusive control over the use of IP.

CONCEPT
Any authorized use of creation or works by unauthorized parties is prohibited and protected by law.

TYPES OF INTELLECTUAL PROPERTIES (IP)

PATENT (Expired: 20 years from filing date)
Definition:
Exclusive right granted for an invention that provides a new way of doing things or offers a new technical solution to a
problem

Guideline:
i. Pursue patent that are broad or commercially significant and offer a strong position - significantly novel proprietary.
ii. Prepare patent plan in detail - outline the cost to develop and market the innovation.
iii. Have your action relates to your original plan - stick to original plan during early stage of establishing patent.
iv. Establish infringement budget - infringer may fear real damages, prepare realistic budget for prosecuting violation of
patent.
v. Evaluate the patent strategically - process usually take 3 years, must compare with lifecycle of proposed innovation
or technology.

Criteria:
i. Functional/Technical
The invention must relate to how something works, what it does, what it made of or how it is made.
ii. New
The invention must first time appear anywhere in the world.
iii. Invention action
The invention must be figured out by creative thinking in technical field and work hard.
iv. Industrially applicable
The invention must be capable of being made or use in an industry.

COPYRIGHT © (Expired: Subsist during the author’s life plus 50 years after his death)
Definition:
Form of IP protection or exclusive right given to individuals who produce original work of art and literature, music, films,
broadcasting, and computer programs.

Protected Creations:
i. Literary work
E.g.: Novel, lyric, article, computer program and some type of database
ii. Dramatic works
E.g.: Theatre presentation & Stage plays
iii. Broadcast
E.g.: Documentary, live coverage of event
iv. Recording
E.g.: Sounds, film
v. Artistic work
E.g.: Painting, sculpture, collages, architecture, diagram, maps and logos

INDUSTRIAL DESIGN
The ornamental or aesthetic aspect of an article.
DIFFERENCE BETWEEN PATENT & UTILITY INNOVATION
PATENT
Exclusive right granted for an invention that provides a
new way of doing things or offers a new technical
solution to a problem. Patent is protected 20 years from
filing date.
UTILITY INNOVATION
Exclusive right granted for a minor invention which does
not require satisfying the inventiveness test. Utility
innovation is protected for 10 years from filing date.

CHAPTER 7

FINANCING NECESSITY
i. To determine start-up cost
Different size of business needed different types of start-up cost.

ii. Fixed assets replacement

At last, the fixed asset of the company will become obsolete and the company will have to reinvest in new fixed
assets.

iii. Growth
The company needs financing to expand current operations or additional costs related to advertising, payroll,
warehouse or research and development.

PRE-SEED FINANCING
Relatively small amount of capital provided to an inventor or entrepreneur to prove a specific concept for a potential by
profitable business opportunity that still has to be developed and proven. The funded work may involve product
development, but rarely involves initial marketing.

KEY SOURCE OF FINANCING PRE R&D STAGE

PRE-SEED FINANCING
 At this phase, talk of a "company" is still premature. What usually exist are an immature idea and an incomplete
management team, and there is no guarantee that the idea is technologically feasible or commercially viable. The
preliminary financing in the first stage is obtained from individuals who are close to the entrepreneur and know him
or her family and friends, private investors who are not organized in investing institutions, or incubators. The money
is needed to support the development of the idea in order to promote the product at least to the stage in which its
feasibility is proven and to write the business plan.

ANGEL FINANCING
 High net-worth individuals that represent as essential source of funding for early stage, high-risk ventures. Typically
successful entrepreneurs, these investors offer expertise, experience, and contacts that can be invaluable to the new
venture. Angel financing often work in groups to improve the efficiency of their due diligence and to allow them to
complete larger deals. The most important considerations in the angel financing decision are the personal
characteristics of the entrepreneur and the market-product potential of the business. Geography and industry focus
are surprisingly unimportant.

SELF, RELATIVE & FRIEND

 The entrepreneurs own resources include not only their personal savings and assets, but also their debt capacities in
obtaining limited amounts of external finance. The entrepreneur’s access to established source of external finance is
limited. Hence, most entrepreneurs rely on their own resources, supplemented by funds from relatives and friends.

GOVERNMENT’S FINANCING ASSISTANCE

 Classified into government funding scheme and grants - This program will help the entrepreneur to running the small
business and to achieve a goal. For example, Malaysian venture capital Management Berhad (MAVCAP) is committed
purely to the technology sectors and will invest in the mix of local and overseas businesses.
DIVERSIFICATION STRATEGY
Involves branching out into new products and new territories - business diversify made because being in single industry
can be risky, new technology or product and fast changing customer preference can destroy a particular business.

Two types:
 Related diversification strategy - which refers to a situation where business diversifies into another area that is
strategically fit with existing business. Meant to allow the business to capitalize on synergies such as transfer and
share valuable expertise, technology know-how and other competitive capabilities to consolidate related activities
into single operation to achieve low cost and capitalize on well-established brand name.

 Unrelated diversification strategy - which refer to situation where a business diversifies into another area that is
totally different from existing business activities. May be carried out in order to distribute and spread the risk of
doing business across different industries, when the business is currently operating in an attractive industry and
there is a need to look for other possibilities.

CHAPTER 8

COMMERCIALIZATION OF RESEARCH & DEVELOPMENT (R&D)

 Product of R&D will not generate revenue unless successfully commercialized. Commercialization refers to efforts
taken to introduce new technology-based products to the market with the aim of gaining commercial return. The
commercial value of a research is measured by the contribution of research findings to the development of new
process, services or product.

 Improved product work better, which may translated into lower total cost for the use of the product over its life-
cycle. Less costly products reduce the cost of acquisition and hence increase the total market size.

 Each raises different issues - new product must anticipate changes in the customer behavior based on design created
in commercialization process, and assess the cost customer willing to pay for it.
Case: development of Internet access tools.

 The improved product has to identify limitations in current products and identify how an improvement can be made
based on technology.
Case: CD - initial cost is higher than some functional equivalent but offers better performance, convenient to use.

 Less costly product tries to maintain the performance level of existing product but use technology to reduce costs.
Case: development of personal computer system.
 CHAPTER 9

GROWTH STRATEGIES
ANSOFF MATRIX

New Market Development Diversification

Market
Existing Market Penetration Product Development

Existing New

 Market penetration seeks to increase market share for existing products or services in existing markets. Market
penetration is especially affective when current market not yet saluted, current market usage can be increase,
market share if major comparative are in the decline but industry sales are increasing, increased economies of scale
and sales and marketing expenditure are highly and positive correlated historically.

 Market development strategy involves introducing present product or services to new groups of customers. These
new group may come from new geographical areas or different demographic market. Market development may also
beyond national boundaries as they reduce the overall risks associated with fluctuations of demand in existing
market.

 Product development involves increasing sales by improving or modifying present product or service. It may be
employed when a business has successful products that are in the maturity stage of the product life cycle. A business
operates in an industry that is characterized by rapid technological environment. Major competitive offer better
quality products at compatible price and a business have strong R&D capabilities.

 Diversification strategies involve branching out into new products and new territories. Business diversify are made
because being in single industry can be risky and new technologies, new products or fast changing customers
preference can destroy a particular business.

CHAPTER 10

ENDING A BUSINESS
1. RETRENCHMENT
 Occurs when a business regroup by reducing cost and asset to reverse declining sales and profit.
 Includes activities such as selling off asset to raise the needed cash, pruning product line, close-down poor
performing business, reduce number of employees and declaring bankruptcy.

2. DIVESTMENT
 Done cautiously by selling part of the venture cash to be reinvested in more promising business - used when a
business has pursued a retrenchment strategy but failed to accomplish and need improvement.
 A business need more resource to be competitive, when one particular division is responsible for a business
overall poor performance and doesn’t fit well with the rest of the business.

3. LIQUIDATION
 Involve the selling of part of company’s assets for their tangible worth - recognition of defeat.
 Undertaken when both retrenchment and divesture is unsuccessful - enable stockholders to minimize losses.

4. HARVESTING
 Strategy pursued by a business in effort to cash out and harvest the profit.
 In contrast, it associate more with the owner’s personal reason for terminating the venture - reason may include
boredom and burn out, lack operating and growth capital, no heirs to leave business to, aging and heath
problems and desire to pursue interest.