The Business Plan

A
Innovation Strategies
There’s a better way to do it. Find it!

Thomas Edison
Summary
How can an entrepreneur build an effective strategy
based on innovation that will lead to a sound
technology venture?
An innovation strategy is structured to effectively
commercialize new products and services for its
customers. Using an idealized model of a window of
opportunity, the entrepreneur can decide when to act. The
entrepreneur needs to maintain a sense of urgency but
avoid being too early or too late to market. Entrepreneurs
establish and build a network of partners who work with
them to achieve the new venture’s goals.
Chapter 5: Summary Technology Ventures: From Idea to Enterprise

A
Emergent industries:
Newly created or newly recreated industries formed by
product, customer, or context changes [Barney 2002].
Chapter 5: Concept Technology Ventures: From Idea to Enterprise

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Three Types of Industries and Their Characteristics
TYPE OF INDUSTRY
CHARACTERISTICS
Mature Growing Emergent
Revenue Growth Slow Moderate Potentially Fast
Stability High Moderate Low
Uncertainty Low Moderate High
Industry Rules Fixed Fluid Unestablished
Competitiveness High Moderate Low or None
Chapter 5: Table 5.1 Technology Ventures: From Idea to Enterprise

A
First Mover Potential Advantages and Disadvantages

Possible Advantages Possible Disadvantages
 Create the Standard and  Short-Lived Advantages Are Competed
the Rules Away
 Low Cost Position  Higher Development Costs
 Create and Protect  Established Firms Circumvent or violate

Intellectual Property patents and intellectual property
 Tie Up Strategic  Cost of Attaining the Resources

Resources
 Increase Switching  High Uncertainty of Designing the Right

Costs for the Producer Product. If vision is wrong, then large
costs to switch
 Increase Switching  Customer is reluctant to buy when a

Costs for the Customer large cost to switch may be incurred

A
Creativity is the ability to use the imagination to

develop new ideas, new things, or new solutions.
Six Resources for A Creative Enterprise

• Knowledge in the Required Domain and Fields — knowing what is new
• Intellectual Abilities to recognize connections, redefine problems and
envision and analyze possible practical ideas and solutions
• Inventive Thinking about the problem in novel ways
• Motivation towards Action
• Opportunity Oriented Personality and Openness to Change
• Contextual Understanding that supports creativity and mitigates risks

A
Creativity Process
Start Describe
The Problem
Reframe and
Start Again
Build a Prototype
and Show It to the
Incubation Period:
Customer
Observe and
Study the Problem
Evaluate
and Intuitive Thinking,
Test the Ideas Brainstorming
Insights, Ideas,
Inventive Thinking
Chapter 5: Figure 5.3 Technology Ventures: From Idea to Enterprise

A
Types and sources of innovation
Basic design concepts
Chapter 5: Figure 5.4 – Four types of innovation Technology Ventures: From Idea to Enterprise
A
Importance reflects the magnitude of the economic value of

an invention.
Radicalness measures the degree to which an invention,
regardless of economic value, differs from previous inventions
in the field.
Patent scope describes the breadth of intellectual property
protection for the invention.
Chapter 5: concept Technology Ventures: From Idea to Enterprise

A
The Factors that Influence the Entrepreneur to Exploit An

Independent Invention
1. The Business Interests, Capabilities, and Experiences of the

Entrepreneurial Team
2. The Characteristics of the Industry in Which the Invention Will Be

Exploited
3. The Characteristics of the Invention

a. Importance of the invention — Economic value and
potential payoff
b. Radicalness of the invention — differentiation of the
invention from its predecessors
c. The breadth of patent protection of the intellectual
property

A
The New Business Formation Process for an Invention
New Technical Knowledge
The capabilities and

knowledge of the
New Invention entrepreneurial team
The characteristics of the

Characteristics of the Industry in which the
Invention: invention will be
Importance
Radicalness
Patent Scope
Will this invention be

Availability of resources exploited as a new venture
required for this venture led by this team?
YES
NO
New Firm
A
Disruptive or radical innovations introduce a set of attributes to a

marketplace different than the ones that mainstream customers
historically have valued, and the products often initially perform
unfavorably along one or two dimensions of performance that are
particularly important to those customers.
The Expected Trajectory of a Disruptive Innovation
High
Range of performance
required in the
Performance mainstream market
Expected
Trajectory
Current performance of the innovation

Low
Now Time

A
The Elements of An Attractive Innovation Strategy
• A well defined customer

• A key customer benefit that is measurable in dollars
• Short period until economic payback and positive cash flow
• A high benefit to price ratio for the customer
• A proprietary advantage that can be maintained or defended
• The core competencies required to exploit the new technology are
present or available to the new venture
• Access to the necessary resources

A
Technology Factors
• Feasibility
• Performance
• Manufacturability
Business Model
• Vision
• Target Market
• Value Proposition
Strategy
The four steps to • Industry and Competitor Analysis
• Expected Competitive Advantage
achieve a favorable
technology innovation.
Expected Economic Results
• Revenue
• Profitability
• Return on Capital
• Time to Profitability

A
Complement:
A complement to a product is any other product that
makes the first one more attractive to the customer.
The Value Network

Customers
Competitors The New Complementors

Venture
Suppliers

A
An innovation strategy builds on creativity, invention, and technologies,

acting within a value network, to effectively commercialize new products
and services for its customers.
Chapter 5: Principle Technology Ventures: From Idea to Enterprise

B
Risk and Return
Our greatest glory is not in never falling

but in rising every time we fall.
Confucius
Summary
What determines the success of entrepreneurial
efforts and how can they be managed?
A new venture that creates a novel solution to a problem
will be subject to uncertainty of outcome. An action in an
uncertain market is sure to experience a risk of delay or
loss. It is the entrepreneur’s task to reduce and manage
all risks as much as possible.

B
Risk and Return
Risk is the chance or possibility of loss.

Regret is the amount of loss a person can tolerate.

B
Risk and Return
Hazard = Risk = Hazard x Uncertainty

Level of Total
Investment
Perceived Risk
Variability of
Outcomes =
Uncertainity
Anticipated
returns Decision
Decision
New Venture
Risk Adversity of Choice
Team
Fit of Team Attractive

Competencies Venture
with Venture Opportunity

B
Risk and Return
Economies of scale are expected based on the

concept that larger quantities of units sold will result
in reduced per-unit costs.
Scalability refers to how big a firm can grow in
various dimensions to provide more service.
Question:
A new firm plans to develop and sell a database offering information on
college admissions and selectivity. If successful, will this firm expect
economies of scale and scalability?

B
Risk and Return
Network economies arise in industries where a
network of complementary products is a determinant of
demand (also called network effects).
The reinforcing +
characteristic of a Wide visibility and recognition
positive loop of the value of the network
exhibiting network
effects.
Re-enforcing
Loop +
Utility (Value)
of the network
Number of users
+ on the network

B
Risk and Return
Risk and Return
Higher return & higher risk

of a disruptive application
40
High-return
& high risk
30 venture
Annual
Expected
Return
(%) 20 Moderate risk venture
10 S&P500 stock
portfolio
Low risk franchise
0 Risk-free T-bill
0 Low Moderate High Highest
Chapter 6: Figure 6.9 – return vs. risk Technology Ventures: From Idea to Enterprise
B
Risk and Return
The entrepreneur seeks to manage risks and attain

economies of scale, scope, and networks while achieving
scalability of the business.

C
The Business Plan
The method of enterprising is to plan with

audacity and execute with vigor.
Christian Bovee
Summary
How are ventures actually formed and what is the role of

the business plan?
Entrepreneurs respond to attractive opportunities by forming new
ventures. One particularly important step is the development of a
business plan. We also discuss the benefits of joining a cluster of
interconnected enterprises.

C
The Business Plan
Building A New Business
Opportunity
Vision
Access to Distinctive Capabilities of

Resources Competencies the Team
Innovation Business Industry

or Strategy Context
Novelty
Talent Structure Processes
Profitability
Chapter 7: Figure 7.1 – building a new venture Technology Ventures: From Idea to Enterprise
C
The Business Plan
The Five-Step Process for Establishing A New Venture
Step
1. Identify and screen opportunities. Create a vision and concept statement and build an
initial core entrepreneurial team. Describe the initial ideas about the value proposition and
the business model.
2. Refine the concept, determine feasibility and prepare a mission statement. Research the
business idea and prepare a set of scenarios. Draft the outline of a business plan and an
executive summary.
3. Prepare a complete Business Plan with a financial plan, and the legal organization suitable
for the venture.
4. Determine the amount of financial, physical and human resources required. Prepare a
financial model for the business and determine the necessary resources. Prepare a plan
for acquiring these resources.
5. Secure the necessary resources and capabilities from investors as well
as new talent and alliances. Launch the organization

C
The Business Plan
Stories are an integral part of the process by which founders

start and build new ventures, acquire needed resources, and
generate new wealth (Lounsbury and Glynn, 2001)
Stages of the Story
Chapter 7: Table 7.2 - 3 stages of the new venture story Technology Ventures: From Idea to Enterprise
C
The Business Plan
A business plan is a document that describes the

opportunity, product, context, strategy, team, required
resources, financial return, and harvest of a business
venture.

C
The Business Plan
The Elements of a Business Plan
 Executive Summary
 The Opportunity — Quality, Growth potential
 The Vision — Mission, Objective, Core Concept
 The Product or Service — Value Proposition, Business Model
 The Context — Industry, Timeliness, Regulation
 The Strategy — Entry, Marketing, Operations, Six Forces
 The Organization — Structure, Culture, Talent

7
C
The Business Plan
The Elements of a Business Plan (cont.)
 The Entrepreneurial Team — Capabilities and Commitment
 The Financial Plan — Assumptions, Cash Flow, Profit
 The Required Resources — Financial, Physical, Human
 The Uncertainties and Risks
 The Financial Return — Return on Investment
 The Harvest — Return of Cash to Investors and Entrepreneurs
Chapter 7: Table 7.3 continued Technology Ventures: From Idea to Enterprise

C
The Business Plan
Ten Common Mistakes or Gaps in Business Plans
 Solutions or technologies looking for a problem
 Unclear or incomplete business model and value proposition
 Incomplete competitor analysis and marketing plan
 Inadequate description of the uncertainties and risks
 Gaps in capabilities required of the team
 Inadequate description of revenue and profit drivers
 Limited or no description of the metrics of the business
 Lack of focus and a sound mission
 Too many top down assumptions like "we will get 1% market share"
 Limited confirmation of customer demand or pain

CC
The Business Plan
The Business Plan
Context: Economy, Regulatory, Industry
People
The Team
Capabilities
Attitude
Reputation
The
Deal Business
Resources
Reward, Risks Financial
Incentives
Ownership
Physical The business plan serves
Intellectual
Harvest as the alignment tool for a
Plan new business venture.
Opportunity
Customers
Strategy
Business
Model

C
The Business Plan
Entrepreneurs can learn and master a process for building

a new venture and they communicate their intentions by
writing a business plan.

D
Types of Ventures
Even if you are on the right track, you’ll

get run over if you just sit there.
Will Rogers
Summary
What forms do new businesses take and what are corporate
ventures?
The appropriate legal and organizational format used to organize a new
venture will vary according to several factors such as context, people,
legal and tax consequences, and cultural norms. New ventures can range
from small businesses or consulting services to high-growth, high-
potential enterprises. Other organizations start out operating in a niche
market and grow into a broader one. An important contrast to these
independent ventures is the corporate new venture. It emerges within
larger existing enterprises and is granted autonomy so it can fulfill its
promise.

D
Types of Ventures
Organizational Forms:
•Independent venture: new venture not owned or controlled by an
established corporation.
•Corporate venture: new venture started by an existing corporation.
•Nonprofit organization: Corporation, member association, or charitable
organization that provides a service but does not earn a profit, nor does
it distribute dividends or payments to its employees, donors, or
volunteers. Today, these organizations are often called not-for-profit.
Chapter 8: Organizational Forms Technology Ventures: From Idea to Enterprise

D
Types of Ventures
Organizational Forms (continued):
•Family-owned: includes two or more members of a family who hold

control of the firm.
•Franchise: legal arrangement in which the owner of a business format

has licensed it to an individual or local firm, called a franchisee. The
franchisor is the organization that owns and operates a firm that
controls the business format and its associated trademarks and logo.
Chapter 8: Organizational Forms Technology Ventures: From Idea to Enterprise

D
Types of Ventures
Types of New Business Ventures:

Small business is a sole proprietorship, a partnership, or a
corporation owned by a few people.
Niche business seeks to exploit a limited opportunity or market
to provide the entrepreneurs with independence and a slow-
growth buildup of the business.
High-growth business aims to build an important new business
and requires a significant investment to start up.
Chapter 8: Types of New Business Ventures Technology Ventures: From Idea to Enterprise
D
Types of Ventures
Types of New Business Ventures (continued):
Radical innovation business seeks to commercialize an important

new innovation and build an important new business.
Nonprofit organization is a corporation or a member association

initiated to serve a social or charitable purpose.
Corporate new venture (CNV) is that started by an existing

corporation for the purpose of building an important new business
unit as a solely owned subsidiary or a spin-off as a new independent
company.
Chapter 8: Types of New Business Ventures Technology Ventures: From Idea to Enterprise
8
D
Types of Ventures
The Six Types of New Ventures

Planned
Revenue for Most
Type Growth Likely Description Objective
Size
1. Small Slow Small Sole proprietorship, and Provide independence and wealth to
Business family business partners by serving customers
2. Niche Slow to Small to Slow growth of corporation Provide steady, lower-risk growth, good
Medium Medium income
3. High Growth Fast Medium Fast growth, needs large Important new business
to Large initial investment
4. Non-Profit Slow Small to Serves members or a To serve a social need

Organization Medium social need
5. Corporate Medium Large Independent unit of an To build an important new business unit
New Venture to Fast existing corporation or separate firm

D
Types of Ventures
Characteristics of Corporate New Ventures
 Newness and Novelty of the Product Relative to the

Firm's Existing Products
 Independence or Semi-Autonomy from Existing
Corporate Structure
 High Potential for Significant Innovation
 Unique Entrepreneurial Team Leadership Capabilities

D
Types of Ventures
Contrasts between independent ventures and corporate ventures

D
Types of Ventures
Four models of corporate entrepreneurship (Wolcott and Lippitz, 2007)
Chapter 8: Figure 8.3 – Four models of corporate entrepreneurship Technology Ventures: From Idea to Enterprise
D
Types of Ventures
The Five-Step Process for Establishing A Corporate New Venture
1. Identify and screen opportunities. Create a vision. Designate a venture

champion and an entrepreneurial team.
2. Refine the concept and determine feasibility. Prepare the concept and vision
statement. Draft a brief Business Plan Summary or Outline for review and
gathering support.
3. Prepare a complete Business Plan. Identify the person to lead the new venture.
4. Determine the best form of the corporate new venture: internal new venture
unit; spin-out, subsidiary, or internal project.
5. Establish the Corporate New Venture with talent, resources, and capabilities
transferred from the parent company.

D
Types of Ventures
Extracting value from corporate venturing
Chapter 8: Table 8.12 – Extracting value from corporate venturing Technology Ventures: From Idea to Enterprise
D
Types of Ventures
An important, vigorous new business venture can emerge

from a large firm when afforded the appropriate balance of
independence, resources, and people to respond to the
opportunity.

E
Knowledge, Learning, and Design
Knowledge and human power are

synonymous, since the ignorance of the
cause frustrates the effect.
Francis Bacon
Summary
How can a new organization access and use knowledge
in order to build its new venture?
The creation and management of knowledge can lead to new,

novel applications and products. Sharing knowledge
throughout a firm can enhance the firm’s processes and core
competences, thus making the firm more innovative and
competitive.

E
Knowledge is the awareness and possession of information, facts,

ideas, truths, and principles in an area of expertise.
Intellectual capital is the sum of the knowledge assets of a firm.

E
The Knowledge Creating and Sharing Activities of A Firm
1. Present: Shared
Problem Solving
2. Implementing
4. Acquiring Core New Processes
Knowledge from
Competencies and Tools within
Outside the Firm
the Firm
3. Future:
Experimenting
and Learning

E
Knowledge management is the practice of collecting, organizing,

and disseminating the intellectual knowledge of a firm for the
purpose of enhancing its competitive advantages.

E
Managing Knowledge in A Technology Venture
ROLE: Identify and evaluate the role of knowledge in the firm.
VALUE: Identify the expertise, capabilities and intellectual

capital that creates value in the form of products and
services.
PLAN: Create a plan for investing in the firm's intellectual

capital and exploiting its value while protecting it from
leakage to competitors.
IMPROVE: Improve the knowledge creation and sharing

process within the new venture.

E
A learning organization is skilled at creating, acquiring, and

sharing new knowledge and at adapting its activities and behavior to
reflect new knowledge and insights.

E
The Entrepreneurial Learning Process

Outcome or
Step Question Action Required
1 Identify the problem What do we want to Desired specific result
or opportunity change?
2 Analyze the problem What is the key cause Key cause identified
or opportunity of the problem?
3 Generate potential How can we make a A list of possible

solutions positive change? solutions
4 Select a solution and What's the best way to Establish a criteria, select
create a plan do it? the best solution and
set a plan to
accomplish it
5 Implement the How do we implement Monitor the

selected plan the plan effectively? implementation
6 Evaluate the outcome How well did the Verify that the problem
and learn from the outcome match our is solved. Why did it
results desired result? work?

E
A prototype is a physical model of the product or service.

E
The Prototype Development Process
Initial Build:
Requirements Prototype to Demonstrate
and Attributes of the Product and Its
the Product Benefits
Revise:
Evaluate the
Prototype and Its
Specify Additional Demonstrated
Requirements and Benefits
Attributes
Identify further
Requirements and
Attributes for the
Product
Satisfactory?
Continue to
Adjust?
?
No
Yes
Complete Final
Prototype

E
A scenario is an imagined sequence of possible events or

outcomes, sometimes called a mental model.
Chapter 9:Concept Technology Ventures: From Idea to Enterprise

E
The Elements of A Scenario
Key Issues
and
Questions
Logics:
Driving
The Rationale
Forces
for the Story
The
Story or
Scenario
Outcomes: Learning:
The Conclusion Understanding
and
of the Story
Decisions

E
Knowledge acquired, shared, and used is a powerful tool for the

entrepreneur to build an innovative, learning organization that can
compete and grow effectively.

E
Describe and sketch a prototype of a small, low energy consumption

two-person vehicle for in-town operation only. Create a brief scenario
for this vehicle.
Chapter 9: Exercise Technology Ventures: From Idea to Enterprise

F
The Marketing and Sales Plan
Successful salesmanship is 90 percent preparation and

10 percent presentation.
Bertrand R. Canfield
Summary
What is the best way to attract, serve,

and retain customers?
Any new firm needs to build a marketing plan

that describes how it will attract, serve, and
retain the customers targeted for its
products.

F
Marketing is a set of activities with the objective

of securing, serving, and retaining customers for
the firm’s product offerings.
Chapter 11: Marketing Technology Ventures: From Idea to Enterprise

F
The Six Elements of the Marketing Plan
•Marketing Objectives
•Customer Target Segments
•Product Offering Description
•Marketing Research and Strategy
•Marketing Mix
•Customer Relationship Management

F
Building A Marketing Opportunity

Plan and a Sales Plan
Mission & Strategy
Business Model
https://www.mql5.com/en/signals/979656
Target Market & Customer
Marketing Objectives
Marketing Research
Marketing Plan
Sales Plan

F
A market segment consists of a group with

similar needs or wants and may include
geographical location, purchasing power, and
buying attitudes.
Chapter 11: Market segment Technology Ventures: From Idea to Enterprise

F
Four crucial questions to ask about target markets

(Mullins, 2006)
Chapter 11: Table 11.2 – Crucial questions to ask about target markets Technology Ventures: From Idea to Enterprise
F
Positioning is the act of designing the product

offering and image to occupy a distinctive place in
the target customer’s mind.
Chapter 11: Positioning Technology Ventures: From Idea to Enterprise

F
High A positioning map

for personal
X Dell
computers
showing the
X EasyPC
position of a new
Performance X HP product, EasyPC.
Price X Apple Mac
Medium
X Gateway
Low
Low Medium High
Ease of Use
Chapter 11: Figure 11.3 - Positioning Map Technology Ventures: From Idea to Enterprise
F
The unique selling proposition is a statement

of the key customer benefit of a product that
differentiates it from its competition.
Chapter 11: Unique selling proposition Technology Ventures: From Idea to Enterprise
F
Create a positioning map for the airline industry

and describe the position of a new product that
provides regional service using a jet with 72
seats. Describe its unique selling proposition.
Chapter 11: Exercise Technology Ventures: From Idea to Enterprise

F
The positioning statement describes the

customer, the need, the product, the key benefit
and the product differentiation.
Chapter 11: Positioning statement Technology Ventures: From Idea to Enterprise

F
Positioning Statement
• For (target customer)
• who (statement of need or opportunity)
• that (statement of benefit)
Differentiation
• Unlike (primary competitive alternative)
• our product (statement of primary differentiation
Chapter 11: Figure 11.4 (a) Technology Ventures: From Idea to Enterprise
F
Positioning Statement for Tesla Motors

 For wealthy individuals and car aficionados
 Who want an environmentally friendly, high-end sports car
 The Tesla Roadster is an electric automobile that delivers
unprecedented performance without damaging the
environment.
Differentiation
 Unlike Ferraris and Porsches,
 Our product has fantastic mileage, unparalleled performance,
and no direct carbon emissions.
Chapter 11: Figure 11.4 (b) Technology Ventures: From Idea to Enterprise
F
Market research is the process of gathering the

information that serves as the basis for a sound
marketing plan.
Chapter 11: Market Research Technology Ventures: From Idea to Enterprise

F
The Market Research Process
1. Define the product and its unique selling proposition. Identify

the customer segment. Develop a set of questions that will
provide the necessary data on customer preferences and behavior.
2. Collect the data using surveys, published sources, focus groups,

interviews, and other means to secure it.
3. Analyze and interpret the data to determine if the product

meets the needs or wants of the customers and determine
whether they will pay the price you seek.
4. Draw conclusions on the customer and their needs, preferences

and behavior.
Chapter 11: Table 11.3 – Market research process Technology Ventures: From Idea to Enterprise
11
F
Customer development process
Chapter 11: Figure 11.5 – customer development process Technology Ventures: From Idea to Enterprise
F
The Four Elements of the Marketing Mix
Product Price
Product Variety List Price
Quality Discounts
Design Credit Terms
Features Payment Period
Brand Name
Packaging
Warranties
Returns Policy
Promotion Place
Public Relations Channels
Advertising Locations
Sales Force Inventory
Direct Messages Fulfillment

F
Customer relationship management (CRM)

consists of a set of conversations with the customer.
Chapter 11: Customer Relationship Mgmt. Technology Ventures: From Idea to Enterprise
F
The Customer
Search Acquire Use Maintain Dispose
Conversations
Design Build Sell Service
The Firm
The Customer-Firm Relationship as Conversation

F
Five Characteristics of an Innovation
Relative Advantage represents the perceived

superiority of an innovation over the current product or
solution it would replace. This advantage can take the
form of economic benefits to the adopter or better
performance.
Compatibility represents the perceived fit of an

innovation with a potential adopter's existing values,
know how, experiences, and practices.
Complexity describes the extent to which an innovation

is perceived to be difficult to understand or use. The
higher the degree of perceived complexity, the slower the
rate of adoption.

F
Five Characteristics of an Innovation (cont.)
Trialability represents the extent to which a potential

adopter can experience or experiment with the
innovation before adopting it. The greater the trialability,
the higher the rate of adoption.
Observability represents the extent to which the

adoption and benefits of an innovation are visible to
others within the population of potential adopters. The
greater the visibility, the higher the rate of adoption by
those that follow.

F
The Chasm Model
CHASM

F
Selling is the transfer of products from one person

or entity to another through an exchange
mechanism.
Chapter 11: Selling Technology Ventures: From Idea to Enterprise

F
A sound marketing plan enables a new firm to

identify the target customer, set its marketing
objectives, and implement the steps necessary to
sell the product and build solid customer
relationships.

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There’s a better way to do it. Find it!

Chapter 5: Summary Technology Ventures: From Idea to Enterprise

Chapter 5: Concept Technology Ventures: From Idea to Enterprise

Three Types of Industries and Their Characteristics

Revenue Growth Slow Moderate Potentially Fast

Stability High Moderate Low

Uncertainty Low Moderate High

Industry Rules Fixed Fluid Unestablished

Competitiveness High Moderate Low or None

Chapter 5: Table 5.1 Technology Ventures: From Idea to Enterprise

First Mover Potential Advantages and Disadvantages

 Low Cost Position  Higher Development Costs

 Create and Protect  Established Firms Circumvent or violate

 Tie Up Strategic  Cost of Attaining the Resources

 Increase Switching  High Uncertainty of Designing the Right

 Increase Switching  Customer is reluctant to buy when a

Chapter 5: Table 5.2 Technology Ventures: From Idea to Enterprise

Creativity is the ability to use the imagination to

Six Resources for A Creative Enterprise

Chapter 5: Table 5.3 Technology Ventures: From Idea to Enterprise

Chapter 5: Figure 5.3 Technology Ventures: From Idea to Enterprise

Basic design concepts

Importance reflects the magnitude of the economic value of

Chapter 5: concept Technology Ventures: From Idea to Enterprise

The Factors that Influence the Entrepreneur to Exploit An

1. The Business Interests, Capabilities, and Experiences of the

2. The Characteristics of the Industry in Which the Invention Will Be

3. The Characteristics of the Invention

Chapter 5: Table 5.4 Technology Ventures: From Idea to Enterprise

The capabilities and

The characteristics of the

Will this invention be

Disruptive or radical innovations introduce a set of attributes to a

Current performance of the innovation

Chapter 5: Figure 5.7 Technology Ventures: From Idea to Enterprise

The Elements of An Attractive Innovation Strategy

• A well defined customer

Chapter 5: Table 5.5 Technology Ventures: From Idea to Enterprise

Chapter 5: Figure 5.8 Technology Ventures: From Idea to Enterprise

The Value Network

Competitors The New Complementors

Chapter 5: Figure 5.10 Technology Ventures: From Idea to Enterprise

An innovation strategy builds on creativity, invention, and technologies,

Chapter 5: Principle Technology Ventures: From Idea to Enterprise

Our greatest glory is not in never falling

Chapter 6: Summary Technology Ventures: From Idea to Enterprise

Risk is the chance or possibility of loss.

Chapter 6: concept Technology Ventures: From Idea to Enterprise

Hazard = Risk = Hazard x Uncertainty

Fit of Team Attractive

Chapter 6: Figure 6.1 Technology Ventures: From Idea to Enterprise

Economies of scale are expected based on the

Chapter 6: concept Technology Ventures: From Idea to Enterprise

Chapter 6: Figure 6.7 Technology Ventures: From Idea to Enterprise

Risk and Return

Higher return & higher risk

0 Low Moderate High Highest

The entrepreneur seeks to manage risks and attain

Chapter 6: Principle Technology Ventures: From Idea to Enterprise

The method of enterprising is to plan with

How are ventures actually formed and what is the role of

Chapter 7: Summary Technology Ventures: From Idea to Enterprise

Access to Distinctive Capabilities of