‫بسم هللا الرحمن الرحيم‬

Summary of the course:

Fund. Of innovation and Entre.

Made by:
SREE Tutorials team

Thanks to :
Dr. Mohammad Naser
 Session 1A
Imagination + Implementation= Ideas
Ideas + Implementation = chances ( Opportunities)
Chances + Implementation = Creativity
Creativity + Implementation = Innovation
Innovation + implementation = Entrepreneurship

Innovation Innovation Innovation

Invention

First step : Invention Between steps : Innovation

Constraints : Constraints are inevitable and helpful. Without them, we would

not innovate.
Innovative work ( Exploring) Routine work (Exploiting)
Untraditional Traditional
Improve the quality of products keep the quality of products
High risk Low risk [ not zero]
High variance Low variance
Gives the chance of doing routine Give the chance of doing innovative
work work
Goal : Make money later Goal : Make money now
Both will support the development of the product
Entrepreneurship – the process of starting and operating your innovative
business
The Risks:
Business failure Team risk
Financial loss Market risk
Loss of employment Technology risk
Loss of time Capital risk

The entrepreneurial personality:

Self-Starter. - Outgoing Person. - Lifelong Learner. - Optimist.

Session 2A
Creativity: Doing new things with old things and Bringing old ideas to
new products, people, places.
Self efficacy: A person’s belief in their capacity to successfully perform
a particular task
Guided mastery: The best way to develop self-efficacy by allowing
people to experience success
Creative confidence : Your belief in yourself that you are creative.
A mindset is: The way a person thinks about himself.
Growth Mindset : the idea that we can grow our brain's capacity to
learn and to solve problems
 Fixed mindset Growth mindset
Avoids failure Learns from failure
Avoids challenges Likes challenges
Avoids criticism Learns from criticism
Blames others Takes responsibility
Wants to succeed Wants to learn
Effort is not necessary Effort is necessary
Threatened by success of others Inspired by success of others

Session 3A
Design thinking process Approach A: Risks
Empathy map

Opportunity
Brainstorming
statement
and how might
we question
Design thinking process Approach B:
Opportunity
statement

Brainstorming and

how might we question

Empathy
map

Risks

Divergent Thinking Convergent thinking

Not logical Logical
Add more possible Ideas and Relate between existing solutions
solutions logically
Ex: Humidity and consumption of rice Ex: Hot weather and Ice cream

Generating insight [basic step] : Observation + Inference

Developing insight [Advanced step] :
• Immerse : Connect with people
• Observe: Watch quietly
• Engage: Have a conversation.
Need: A physical, psychological or cultural requirement of an individual or group
that is missing or not met through existing solutions. It could be a partial need or
a full need.
 Session 3B
Empathy map : bridge between empathy and insight.

Opportunity statement : is a two-part statement that identifies a need

of the user and an insight about the user and/or the problem
Ex:

Ex:
The teacher needs a way to explain to his students , Unexpectedly in
his world there is no good way of illustrating information.
 Session 4A
How Might We Questions : rephrasing of the opportunity statement,
showing the need.
Ex:
How might we help the teacher in illustrating information?
How might we provide clean drinking water to Africa?

Brainstorming: A process of generating as many ideas as possible by

sitting and discussing with your team members.
Brainstorming rules:
Have one conversation at a time. --- Go for Quantity.
Build on the ideas of others. --- Encourage wild ideas.
Be visual. --- Stay on topic. --- Defer judgement.

Session 4B
The idea becomes alive in the prototype stage.
Prototype : is an early sample or model built to test a concept or
process .
A prototype provides advantages
1. It enables you to test and refine the functionality of your design
2. It makes it possible to test the performance of various materials.
3. It'll help you describe your product more effectively
4. It will encourage others to take you more seriously
Why should you make a prototype and test it?
Advance your idea – Get reactions – Think better while building

Session 5A
Invention cycle:

Passion/ confidence
matrix:
Elements of charisma:
1. Presence: your presence affects the audience.
2. Warmth: you have a good idea of what people feel.
3. Power: your ideas are effective.
Story telling method:

Session 5B:
Principles of
leading
innovation:
Negative ideas spread ad destroy others.
If you want to evaluate someone look at his achievements not his
words.

Session 7A
Reasons not to be an entrepreneur :
Low money – No power – No flex time
Strategy: A plan or road map of the actions that a firm or organization
will take to achieve its mission or goals
Strategy has three elements: Vision – Mission – Goals

Vision: An informed and forward-looking statement of purpose that

defines the long-term destiny of a company , it is imaginative, and it
should be no more than 20 words..

Example on vision:
UOS : Where civilizations meet.
Mission: a description of the course of action to implement the vision.
The mission of an organization is clear and big.
Elements of mission:

Example of mission:

Session 7B:
How to know if your idea is good?
1. Mindset:
• Entrepreneurial: untraditional, cares about people and
product.
• Bureaucrat: traditional, cares about capital, resources and
risk.
 2. Framework:
• Market: Is the market large and growing?.
• Team: Do you have experts in the technology and business?
• Product: Is your product 10 times better than the
competitor?
3. Risks: [ Deal with the most important risk and solve it]
• Team risk
• Market risk
• Technology risk
• Capital risk
Risks are in the start of prototype stage.

Session 8A
Startup : a Temporary Organization Designed to Search for
a Repeatable and Scalable Business Model.
Why do startups fail? because it may not be the right time or right
place for the idea.
business model : shows how a company creates products, delivers
them to customers, and gets money.
The business model is simpler than business plan.
A business goes through two stages:
1. Start up : Try to find a suitable business model
2. Execution: if the business model is good, start operating.
Product development: a classic model of business development, where
the goal is to study the customer acceptance and market adoption of
the product .
Product development steps:

What happens in each step:

To prevent failure of startups Focus on Customers and Markets

from Day One.
Customer development:
4 steps:
1- Customer discovery: make a business model hypothesis.
2- Customer validation: tests the business model if its good or not, if
not come back to customer discovery.
3- Customer creation: start of execution, starts the demand of
customers.
4- Company building: Transition from startup to execution.
Customer development rules: [ memorize some of them]
There are no facts inside your building, so get outside.
Pair customer development with agile development.
Failure is an integral part of the search for the business model.
If you’re afraid to fail, you’re destined to do so.
Iterations and pivots are driven by insight.
Validate your hypotheses with experiments.
Success begins with buy-in from investors and cofounders.
No business plan survives first contact with customers.
Not all startups are alike.
Startup metrics are different from existing companies.
Agree on market type; it changes everything.
Fast, fearless decision-making, cycle time, speed and tempo
If it’s not about passion, you’re dead the day you open your doors.
Startup titles and functions are very different from a company’s.
Preserve cash while searching. After its found, spend.
Communicate and share learning.
Startups demand comfort with chaos and uncertainty.
 Session 8B
Lean Startup Method: It is a method that increase the development
speed of startups by finding quickly the viable business model.
The lean startup method is not about cost, it is about speed.
Lean startups are driven by a compelling vision, and are rigorous about
testing each element of the vision.
Five Why's : Technique is to “ask why five times” to get to the root
cause
Ex:
Problem: My car will not start.
Why won’t your car start?
Because the battery is dead.
Why is the battery dead?
Because I left my headlights on.
Why did you leave your headlights on?
Because I forgot to switch them off.
Why did you forget to switch them off?
Because I was in a hurry.
Why were you in a hurry?
Because I didn’t plan well and had too much to do.

Root Cause: I am not planning my time well.

 Session 9A
Types of products by need:
Pain killer Vitamin
Solves a problem Makes things better now
Very important compulsory
The served market is a series of potential markets:

Served Market
Unlikely
Potential Potential Potential Unlikely
Target
Target I Target II Target III Target A
B…

Very Important -----------------------------------------------→ less important

Your product should meet the market so the market could accept it
and you can reach to Product – Market - Team fit.
Marketing: a sales support functions that shows how the needs of the
customer will be met with the product, and it also includes all other
things associated with creating, delivering, selling and finally
consuming it.
Market analyst Marketer
Study the market Markets his products
Identify a Market Need Takes information from market
analyst
Tell you about the market Use it to market efficiently
Three types of markets:

B2B : Business to business . B2C : Business to customer .

B2B B2C
You know the other side personally (by You know the other side by archetype
name) (type of product)
Push the product in his way of Make the customers Pull the product
development and buy it
Mainly around sales Mainly around marketing
Divide the market through : Age – Divide the market through : Industry
Gender -- Income bracket --Brand type -- Number of employees --
loyalty Geography
Order size
The chasm: the barrier in which most new startups fail.
How to cross the chasm:
1. Gather all the efforts.
2. Define the problem and go directly to it.
Positioning : The act of designing the product offering and image to
occupy a distinctive place in the target customers mind.
Positioning statement :

Example: For Tesla model S:

Elevator pitch: a type of ad that prepares the customer for the
upcoming products, It grabs the attention of the customer and helps in
overcoming the chasm.
It should be: Focused + Strong + Attractive.
Elevator pitch steps:

Business plan
Business plan: the process that shows how you will get your products
to the market.
Its major elements:
Vision and mission Balance sheet Goals and strategy
Market analysis Competitive analysis Financial analysis
Positioning statement Executive summary Income statement

Financial analysis:
Two types of costs: Fixed cost and variable cost.
A. Fixed cost: We call it fixed because you have to pay it regardless of
production.
it contains:
Salaries Rent Building
Production machines license Etc.
B. Variable cost: Depends on the production.
It contains:
Raw materials Ads
Energy Unplanned maintenance

Total cost = fixed cost + variable cost

Balance sheet : consists of:
Current assets Fixed assets Intangible assets

Returns on investments: (ROI)

𝑹𝒆𝒕𝒖𝒓𝒏𝒔 − 𝑪𝒐𝒔𝒕𝒔 𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕
𝑹𝑶𝑰 = × 𝟏𝟎𝟎 = × 𝟏𝟎𝟎
𝑪𝒐𝒔𝒕𝒔 𝒄𝒐𝒔𝒕𝒔
Net profit:
𝑵𝒆𝒕 𝒑𝒓𝒐𝒇𝒊𝒕 = 𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕 − [𝑻𝒂𝒙𝒆𝒔 + 𝑨𝒅𝒎𝒊𝒏. 𝒄𝒐𝒔𝒕𝒔 + 𝑫𝒆𝒑𝒓𝒆𝒄𝒊𝒂𝒕𝒊𝒐𝒏
+ 𝑹𝒆𝒔𝒆𝒂𝒓𝒄𝒉 𝒂𝒏𝒅 𝒅𝒆𝒗𝒆𝒍𝒐𝒑𝒎𝒆𝒏𝒕 + 𝒍𝒆𝒈𝒂𝒍 𝒇𝒆𝒆𝒔]
 Business model

The unique Relation with

the network of
combination of customer
suppliers and Who wants what
the most important products/services that Personal assistance
partners that make a we’ve got?
tasks a company create value for a Self-service
business model work - Mass market (e.g.
must do to make its specific customer Automated service
business model work Customer communities Consumer products)
segment.
Co-Creation - Niche market (e.g.
1. Production Newness Luxury items)
2. Problem solving - Diversified market
Performance How a company
the most important (e.g. Amazon)
3. Platform/Network communicates with
assets needed. Customization - Multi-sided markets
customer
Physical -Intellectual (e.g. Credit cards)
“Getting the Job Sales force --Web sales
Financial - Human
Done” Own stores –Partner stores
resources
Wholesaler
• Price

all costs incurred to operate a business model
Fixed costs - Variable costs - Economies of scale - Economies of scope
Its types:
• Cost-driven (= minimizing costs)
• Value-driven (= focus on value creation)
the cash a company generates from each customer segment
Asset sale --- Usage fee/pay per use ---- Subscription fees
Lending/renting/leasing --- Licensing/Franchising
Brokerage fees/retainer --- Advertising
Example
 ‫تم بحمد هللا تعالى‬

‫أرجو أن يكون التلخيص قد حاز على رضاكم‬

‫وقد حقق اإلفادة المطلوبة‪ ،‬راجين المولى عز‬
‫وجل أن يجعل هذا العمل خالصا لوجهه الكريم‬

‫وهللا ولي التوفيق‬