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TECHNOPRENEURSHIP 101
Module 1
“Introduction”
Objectives
Topic Outline
I. Introduction
1.1 Entrepreneurial mindset
1.2 Team Formation
a. Hacker
b. Hacker
c. Hustler
d. Humanist
1.3 Innovation and Ideas
1.4 Products and Services
Discussion
Introduction
Starting a company is a staggering journey into the unknown. It is simultaneously thrilling and
terrifying. You are setting yourself up for a spectacular challenge and the likelihood of failure is
high. It is essential to prepare, and to have a sober respect for the experience. “It’s the shift from
defining ourselves as who we think we are to who we are becoming.” It’s a journey, not an
outcome, and you simply need to be doggedly committed to personally growing until you unlock
your potential and pursue and execute your greatest idea.
EVERY MOMENT IN BUSINESS happens only once. The next Bill Gates will not build an
operating system. The next Larry Page or Sergey Brin won’t make a search engine. And the
next Mark Zuckerberg won’t create a social network. If you are copying these guys, you aren’t
learning from them. Of course, it’s easier to copy a model than to make something new. But
every time we create something new, we go from 0 to 1. The act of creation is singular, as is the
moment of creation, and the result is something fresh and strange.
In a world of gigantic administrative bureaucracies both public and private, searching for a new
the path might seem like hoping for a miracle. This would be depressing but for one crucial fact:
humans are distinguished from other species by our ability to work miracles. We call these
miracles technology.
The paradox of teaching entrepreneurship is that such a formula necessarily cannot exist;
because every innovation is new and unique, no authority can prescribe in concrete terms how
to be innovative. Indeed, the single most powerful pattern I have noticed is that successful
people find value in unexpected places, and they do this by thinking about business from first
principles instead of formulas.
Not every new small business is entrepreneurial or represents entrepreneurship. A person who
opens his new shop or new restaurant surely takes risks. But is he an entrepreneur? All he does
is what has been done many times before. He gambled on the increasing popularity of eating
out in their area, but created neither a new satisfaction nor new consumer demand. Seen under
this perspective they are surely not entrepreneurs even though theirs is a new venture.
McDonald’s, however, was entrepreneurship. It did not invent anything, to be sure. Its final
product was what any decent American restaurant had produced years ago. But by applying
management concepts and management techniques (asking, What is “value” to the customer?),
standardizing the “product,” designing process and tools, and by basing training on the analysis
of the work to be done and then setting the standards it required, McDonald’s both drastically
upgraded the yield from resources, and created a new market and a new customer. This is
entrepreneurship.
College students can become extremely skilled at a few specialties, but many never learn what
to do with those skills in the wider world. The goal here is to help you (students) see beyond the
tracks laid down by academic specialties to the broader future that is yours to create.
Innovation and entrepreneurship are discussed under three main headings: Entrepreneurial
Mindset, Innovation and Ideas, and Entrepreneurial Strategies (where products/services and
team formation lies). Each of these is an “aspect” of innovation and entrepreneurship rather than
a stage.
Entrepreneurial Mindset focuses on the institution that is the carrier of innovation. What are the
policies and practices that enable an institution, whether business or public service, to be a
successful entrepreneur? How does one organize and staff for entrepreneurship? What are the
obstacles, the impediments, the traps, the common mistakes? The section concludes with a
discussion of individual entrepreneurs, their roles and their decisions.
Innovation and Ideas presents innovation alike as purposeful and as a discipline. It shows first
where and how the entrepreneur searches for innovative opportunities. It then discusses the
Do’s and Don'ts of developing an innovative idea into a viable business or service.
“Entrepreneurs need to exist throughout our society, not just in venture-backed startups. They
need to exist in government, they need to exist in big corporations, they need to exist in
non-profits, [and] they need to exist in academic institutions. We need entrepreneurs
everywhere.” - Bill Aulet
The entrepreneurial mindset is a set of attitudes, behaviors, and qualities that are essential for
individuals looking to start and sustain a startup successfully. Barrett and Bill Aulet,managing
director of the Martin Trust Center for MIT Entrepreneurship, shared three traits that define an
entrepreneurial mindset, no matter the environment.
Elon Musk co-founded Tesla, Inc. in 2003, with the mission of accelerating the world's
transition to sustainable energy. At the time, electric vehicles faced challenges related to
range, affordability, and charging infrastructure. Musk's solution-oriented mindset drove
the development of the Tesla Roadster, Model S, Model 3, Model X, and Model Y electric
vehicles, each designed to address specific market segments and overcome traditional
limitations. Tesla’s innovative approach to electric vehicle technology, including
advancements in battery technology, autonomous driving capabilities, and a global
Supercharger network, has reshaped the automotive industry and accelerated the
adoption of electric vehicles worldwide. Elon Musk's entrepreneurial journey
demonstrates a relentless commitment to solving complex problems and transforming
industries. His visionary approach to space exploration, electric vehicles, and sustainable
energy solutions exemplifies the essence of a solutions-oriented entrepreneur. Musk's
ability to tackle seemingly insurmountable challenges with innovative solutions has had
a profound impact on multiple sectors, shaping the future of technology and sustainability.
Jeff Bezos, the founder, and former CEO of Amazon, his entrepreneurial journey is
marked by his exceptional ability to adapt to changing circumstances and transform
Amazon from an online bookstore into one of the world's largest and most diverse
technology and e-commerce companies. Jeff Bezos founded Amazon in 1994 as an
online bookstore. However, he quickly recognized the potential for e-commerce to disrupt
traditional retail. Bezos adapted Amazon's business model to become a comprehensive
online marketplace, expanding its product offerings to include electronics, clothing, and
a wide range of consumer goods. In the mid-2000s, Bezos and his team identified an
opportunity in cloud computing services. They launched Amazon Web Services (AWS)
as a subsidiary of Amazon, providing cloud infrastructure and services to businesses.
This diversification transformed Amazon into a leading player in the technology sector.
Bezos introduced the Kindle e-reader in 2007, recognizing the shift towards digital
content consumption. The Kindle ecosystem
expanded to include e-books, audiobooks, and digital magazines, adapting to changing
reading habits. Under Bezos' leadership, Amazon pursued strategic acquisitions,
including Zappos, Whole Foods, and Twitch, to diversify its offerings and enter new
markets. These acquisitions demonstrated Bezos' adaptability in exploring new avenues
for growth. Jeff Bezos' adaptability is a testament to his entrepreneurial mindset. He
continuously evolved Amazon's business model, diversified its offerings, and explored
new technologies and industries. Bezos' ability to adapt to changing market dynamics
and seize emerging opportunities has made Amazon a global powerhouse and
exemplifies the qualities of an adaptable entrepreneur.
This is a mindset, skillset and way of operating that’s going to be needed universally for the
challenges we have, not just in the startups across the world. If we're going to address climate
change, if we're going to address health care, if we're going to address education, we cannot
just have startups doing that. We have to have large organizations that have infrastructure,
balance sheets, other assets and a global presence to be able to address these major
challenges.
In the most minimal sense, the future is simply the set of all moments yet to come. But what
makes the future distinctive and important isn’t that it hasn’t happened yet, but rather that it will
be a time when the world looks different from today. If things change radically in the next decade,
then the future is nearly at hand. No one can predict the future exactly, but we know two things:
it’s going to be different, and it must be rooted in today’s world.
Entrepreneurship is neither a science nor an art. It is practice. It has a knowledge base, but as
in all practices, medicine, for instance, or engineering, knowledge in entrepreneurship is a
means to an end. Indeed, what constitutes knowledge in a practice is largely defined by the
ends, that is, by the practice.
“My work on entrepreneurship and innovation started at DOHE Philippines when I became a
startup researcher. This pivotal role served as my gateway into the fascinating world of startups,
allowing me to immerse myself in the diverse and ever-evolving landscape of entrepreneurial
ventures. During my tenure, I had the privilege of exploring not only the local startup ecosystem
in Cebu but also gaining insights into global counterparts. One of the most profound realizations
that emerged from my experiences was the transformative power of
startups. I came to understand that any problem, no matter how complex or seemingly
insurmountable, possesses the potential for a groundbreaking solution when coupled with
technological advancements. This synergy has the capacity to birth innovations that can have
far-reaching impacts, akin to the success stories of renowned tech giants like Facebook and
Grab. In observing the trajectories of such companies, I witnessed how they leveraged
technology to address existing challenges and inefficiencies, ultimately reshaping entire
industries. Their journeys serve as a testament to the boundless possibilities that lie within the
entrepreneurial spirit. It became evident that these entrepreneurs, much like visionaries, dared
to dream big, embrace change, and turn adversity into opportunity. My time at DOHE Philippines
not only expanded my horizons but also ignited a passion for entrepreneurship and innovation
within me. It reinforced the belief that with the right mindset, dedication, and a commitment to
harnessing technological advancements, one can embark on a transformative journey capable
of leaving an indelible mark on the world. I carry these invaluable lessons with me as I continue
my exploration of the entrepreneurial landscape, eager to contribute to the creation of
meaningful solutions that have the potential to shape the future." M.J. Balicoco, 2023
Defining a Startup
What is a startup? Most define it as any company with a limited operating history, new, and
usually in a phase of product and market discovery. During this phase, founders are typically
roaming around in the darkness, looking for intellectual light switches to illuminate how their
ideas stand up to customer needs and competitive offerings. The actual term startup became
popular during the dot-com boom as a way of describing venture-backed technology companies.
These startups often attract seed-stage, or angel, investor interest, then graduate to venture
capital, though not all require or seek outside capital. The startup phase often ends when a
company crosses certain growth milestones, most often when it hits profitability, is publicly
traded, or is acquired.
We often hear from founders that hiring is the most challenging thing to do right. It’s also the
most
important. Hiring forms the foundation of your company. Good hires, which result from a strong
hiring process, will have an outsized effect on your startup’s success.
Before you start hiring, you should understand who you need. What will the person do?
What
are the ideal backgrounds and qualities for the job? You should prioritize smarts, work
ethic, and ambition over experience. First hires should be like “swiss army knives,” willing
to take on multiple tasks at any stage and able to figure out their own solutions.
No matter your stage or size, never wait for candidates to come to you; you need to
actively build a pipeline. Proactively reach out to people through your own LinkedIn
network and your investors’ LinkedIn networks. Leads on strong candidates typically
come from the inside.
Once you decide to hire a candidate, try to do everything to close the deal. Founders
need to be the ones closing candidates early on, but investors and board members can
also help.
The idea of 'Hipsters, Hackers and Hustlers' has been used in the startup space for quite a
while now and is often used for businesses looking to build their team. In essence, this theory
states that every team should comprise three key types of people and highlights the strength
of each. We first learnt about this theory at a startup event, we've started using it in our
workshops and we've seen it's a great way to get students to identify their strengths and
delegating tasks.
A. Hipsters
Hipsters bring creative energy to the team and every team needs one. They are great at
coming up with ideas, focusing on the design and bringing a bit of imagination to get the rest
of the group thinking differently. Our hipsters are crucial to getting the rest of the group
thinking outside of the box and they are also essential to ensure the product looks pretty and
works well.
B. Hackers
Hackers are rockstar problem solvers. These product orientated humans are incredibly
meticulous and truly believe in the detail. Once given an idea, the hackers will bring it to life
and often go above and beyond to ensure it has all the bells and whistles!
C. Hustlers
Hustlers are the leaders of the group. They ensure everyone stays on track and gives a bit
more clarity and direction with all the ideas and designs flying around. They set goals and
ensure that the group is hitting said goals. They are also great at promoting, sharing, and
finishing the final product.
D. Humanist
Humanists are community-minded members. They are all about the 'human' elements in the
project. They ensure the user (the focus of the task or the teacher) will be happy with the
solution of the team and check the usability. They align the ideas and solutions to meet the
criteria.
Objective: To understand the roles and importance of diverse skill sets within a startup team.
Instruction:
1. Group yourselves into teams of five members each. Each team should aim to have one person
in each role (Hipster, Hacker, Hustler, and Humanist). If the class size does not evenly divide
into teams, some teams may have an additional member.
2. Have a brief discussion within your teams. Each member should introduce themselves and
briefly describe their strengths and skills that align with their assigned role. They should also
discuss why each role is essential in a startup.
3. After the discussions, each team should present to the class. Introduce the team members,
explain your chosen roles, and discuss why you believe your team composition is
well-rounded and valuable for a startup.
Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an
opportunity for a different business or a different service. It is capable of being presented as a
discipline, capable of being learned, capable of being practiced. Entrepreneurs need to search
purposefully for the sources of innovation, the changes and their symptoms that indicate
opportunities for successful innovation. And they need to know and to apply the principles of
successful innovation.
1.3.2 Ideation
The startup’s founder(s) owns the idea. There’s nothing more wonderful for us than sitting with
a founder who spills out their idea for a new venture and expresses need for help. It is the
founder & CEO opportunity to define the purpose, vision and mission and make it part of the
way all decisions within the company are made. Without it, you run the risk of departments
undermining each other without intending to do so.
There’s a 3-step process we embark on: 1) defining the purpose, mission and vision for the
company 2) researching the market and other solutions in the space and identifying the key
differentiation your company brings to bear 3) validating with potential clients and partners.
Defining the Purpose, Mission, and Vision
An entrepreneur’s purpose is the light that fuels the adventure. Understanding this is a bit like a
founder’s own secret sauce. From the purpose, it is a natural extension to express the
company’s mission and vision. These are the guiding lights of the company. Those that measure
new product ideas and new company ideas against the company purpose, vision and mission
will maintain their focus.
● Purpose: The definitive statement about the difference you are trying to make in the
world. WalMart’s Purpose is to save people money so they can live better.
● Mission: The mission (core strategy) that must be undertaken to fulfill the purpose.
WalMart is on a mission to drive down the cost of products and services,
making them more accessible and affordable for everyone’s benefit.
● Vision: A vivid, imaginative conception of view of the world once your purpose has been
fulfilled. WalMart’s vision is of a world where all people can afford to live better.
Researching the Market and Other Solutions and Identify Your Edge
Understanding your market from your company’s purpose perspective highlights your
differentiation and allows you to pass over features and product ideas which don’t support it.
When you properly evaluate an idea, you are critically thinking about the pluses and minuses
and measuring the idea against the purpose DNA. This will provide clarity and the ability to better
prioritize next steps.
A key success driver in opportunity development is generating a wide variety of ideas for solutions
that solve a problem (based on deep customer insight) and testing out whether the assumptions
behind these ideas are actually viable. For generating solutions to meet real customer needs, it is
useful to gain an understanding of what customers want to achieve, how they currently get there,
and what the desired outcome is, instead of thinking of what kind of products or services customers
would like to buy. The biases and motivations of an aspiring entrepreneur might come in the way
of realistically evaluating demand and feasibility for an idea, so being mindful of this and tackling it
with ideation tools and methods is a good idea.
Understanding, framing and evaluating problems or customer needs and generating ideas for
solutions are typical to processes in the field of service design. Design projects start with a phase
where a problem or a design challenge is identified, and insights are generated on the topic through
research.
Adopting service design resulted in the startups shifting towards considering the value they are
offering instead of the technological solution, to seeing a larger set of stakeholders essential to
their success, and in identifying a larger set of innovation opportunities outside the original scope
of their ideas. The startups in the case study recognized the exploratory phase of service design
as the most useful one for their purposes due to the deep insights it generated on relevant
stakeholders.
● Lean Startup
○ The starting point of a lean startup is an existing idea.
○ Lean startup starts from drafting a business model and puts a strong emphasis on product
implementation.
○ Lean startup favors quantitative data.
○ Lean startup has an emphasis on the late stages of innovation
● Design Thinking
○ Design thinking includes generating ideas
○ Design thinking explores the problem and solution space more widely and generally
○ Design thinking values qualitative data more.
○ Design thinking focuses on the early stages
Below is a conclusion from O’Connor (2020) on what types of situations each approach is appropriate for
when working on a new business venture. This is a summary of when design thinking and lean startup
work well as development approaches.
While lean startup could be seen as a significant improvement when compared to traditional product
development approaches, its usefulness as a framework for the purpose of creating novel innovation and
exploring the “problem/solution” space in the very beginning of a startup venture can be questioned, when
looked at from a critical perspective. Since it is a very popular and highly adopted approach, a critical
examination seems all the more important to keep on improving the ways of how companies of the future are
being built, where startups play a major role. Service design as an innovation approach might be suitable for
filling the gap of what’s lacking in lean startups in the very early stages of innovation.
Service Design
The most useful skill for a designer is to be able to imagine preferred futures, which requires designers to
have a wide understanding of the human realities related to the context of development. A successful project
needs lots of data and ideas to work with, but also ways to narrow down to the best concepts, to make
decisions, and to stay within the boundaries set for a project. From understanding realities and conditions,
seeing the opportunities and gaps, and proposing new ways to tap into identified opportunities and overcome
existing gaps. To prevent wasting resources and making suboptimal service improvements, design
processes are intended to make sure that the right problems are found and understood first before solutions
are generated. This could be seen as a contrary approach to lean startup’s tendency to look for quick
validation and to build products fast.
Perhaps the most famous one of processes related to service design is the Double Diamond by the Design
Council of the UK that is divided into four different phases: Discover, Define, Develop, and Deliver.
The diamonds essentially illustrate the divergent and convergent phases of the design process, and the
switch of focus that happens between them. The influence of the double diamond is evident from inspecting
many other illustrations of service design frameworks, which seem to heavily borrow from its logic.
Researching
Design processes start with a phase where a problem or a design challenge is identified, and insights on
the topic are generated through research. This “creation of customer understanding” is one of the most crucial
parts of service design. Qualitative and quantitative research methods can be used in service design
research, but an understanding of the needs and hopes of customers that’s been generated using qualitative
methods is a lot more meaningful for service design projects.
Ideating
A structured ideation phase of a service design process is purposefully conducted only after research – that
is, when the problem space is sufficiently understood. Committing to an initial idea and only looking to validate
that single idea could be a pitfall, especially if the founders do not already know their problem space well.
Exploring and testing multiple solution ideas with potential customers could thus help startups in pivoting
already before committing resources in building a product. The purpose of generating lots of ideas is also to
quickly find some ideas that might seemingly fit the goals of the project well so that they can be prototyped
and tested. The point is not to discover a flawless idea or to make final decisions on what will be implemented
at this phase of a project – instead, ideas are tested quickly so that they can be iteratively evolved and
developed throughout the project, and it’s typical to return back to ideating after prototyping and testing.
Prototyping
The purpose of prototyping is to test ideas with actual target customers or stakeholders in a realistic context
while using ethnographic research methods in order to learn and improve the ideas that are being tested.
Prototypes visualize or communicate a service concept in a way that allows a customer or a user to test or
evaluate it, enabling a team to gain learnings for further development. In earlier stages of a project, it makes
sense to use simple, fast and cheap prototyping methods that focus more on communicating the value to the
test subject, while moving towards more complex and realistic prototypes that are rich in features and details
in later stages of a project.
Class Activity
Activity 2: Ideation
1. Begin by sharing your ideas with your team members, discussing the project or output you intend
to create for the upcoming semester.
2. Following the ideation phase, designate a Founder within your group. It's important to note that
the Founder owns the chosen idea.
3. Choose what category of innovation will be the direction of your project.
4. Define your purpose, mission and vision for your startup. This is done by the founder
(Hustler).
5. Research your market and other solutions and ideas for your chosen project. (Hipster)
6. Validate with potential clients and partners. (Humanist)
7. Analyze your design. State which approach you choose between Design Thinking and
Lean Startup, or both. (Hacker)
8. Do this in your Google Sheets. So I can track the progress of your work.
REFERENCES:
● Havinal, V. Management and Entrepreneurship. New Age International Publishers.2009. ISBN (13):
978-81-224-2659-5.
https://drive.google.com/drive/folders/1Q4npbQq2tzP9WgLYtsDR6v9U-9j6TdfL
● Drucker, P. Innovation and Entrepreneurship.
https://drive.google.com/file/d/1lIihdolMsNkpixq_fTCmSz3rcJvSoTwz/view?usp=drive_link
● Kidder, D. The Startup Playbook.
https://drive.google.com/file/d/1iCFS1Orkcjp5p5va1Mey7tPk5VpE3WkO/view?usp=drive_link
● Thiel, P. Zero to One.
https://drive.google.com/file/d/1UxB_XBb1tiBOZw7lNnmBwnAP7NkZIeiE/view?usp=drive_link
● MIT Sloan School of Management, Cambridge
https://mitsloan.mit.edu/ideas-made-to-matter/3-traits-entrepreneurial-mindset#:~:text=An%20entrepreneurial
%20mindset%20is%20resilient,are%20critical%20thinkers%2C%20Barrett%20said.
● The Startup Handbook
https://drive.google.com/file/d/1_iILhFC0_KP747F2U_q00VcXrhHZPu58/view?usp=drive_link
● Startup Secret Sauce
https://drive.google.com/file/d/1TOEebHyrfRvKstVfT-egMKtk1Xtapvc8/view?usp=drive_link