MODULE 2

Problem Identification
Problem identification is a fundamental way of identifying the problem at hand so
that we can comprehend the objective that we are trying to achieve or the issue
we are trying to address. Problem identification allows us to go to the source of
the issue, learn how it affects us or others, and develop a viable solution.

Sometimes, deep research and development can identify problems, whereas

problems can be identified by chance at other times.

The process of problem identification should help in clearly stating the problem. It
should also help identify the target group of people facing this problem.

Importance of problem identification

Problems arise from time to time, and the client expects an immediate solution.
The entrepreneur solves the problem by introducing new items or services. The
entrepreneur is usually the one who recognises the issues.

Learning the concept of problem identification is crucial for all entrepreneurs

since without identifying a practical problem, no effective product can be
produced.

Some reasons which define the importance of problem identification are as

follows:

The entrepreneur can use problem identification to identify the market’s needs
and challenges and introduce new products.
Problem identification helps in developing creative abilities.
Once the problem is identified, it boosts the number of jobs created in the
economy.
An increase in the number of jobs leads to a boost in the country’s national
revenue.

Discovering Ideas
Every company’s idea should be established on a thorough understanding of the
market and the market’s requirements. Customers, or those who might desire to
buy the goods or services, can be referred to as the market. The market is
different in each location. When we understand the local market, we may notice
several business opportunities that we may have previously overlooked.

The first step is to generate as many ideas as possible and create a list of all
potential business prospects. Next, we can go through the list and select the idea
that seem the most practical and profitable.
Idea Generation can be defined as the deliberate process of generating,
developing, and transmitting abstract, tangible, or visual ideas for a problem. Idea
generation is based on idea fields. Idea fields are the well-structured frames of
reference that guide the idea generation process.

There are various methods for generating ideas, including polling local area
businesses or questioning current business owners. We will look at a few different
techniques that help in Idea generation.

Whenever a person needs an idea for their business, they should always look for
someone who has already gone through establishing a successful business. There
are always many questions in the entrepreneur’s mind, and they should make sure
they get their answers from successful business owners.
These questions can be regarding the kind of idea that these businesses initially
invested in, from where they got those ideas, how they found the profitability of
the ideas, and how they developed those ideas into businesses.

Visualizing the business

Data visualization is the process of creating a visual representation of the
information within a dataset.

While there are hundreds of ways to visualize data, some of the most common
data visualization techniques include:

Pie charts
Bar charts
Histograms
Gantt charts
Heat maps
Box-and-whisker plots
Waterfall charts
Area charts
Scatter plots
Infographics
Maps
Visually depicting data often makes it easier to understand and draw insights
from. As such, data visualization is an effective means of making data more
accessible across an organization. This, in turn, can empower employees to back
their actions using concrete information instead of relying on assumptions—
resulting in more data-driven organizational processes.

Data visualization can also play an important role in communication with parties
outside of a business, such as the media, investors, regulatory agents, and other
stakeholders.

Data visualization has become so important to modern business that many

organizations are now specifically hiring individuals proficient in it, among other
data science skills.

A data visualization tool is a form of software that’s designed to visualize data.

Each tool's capabilities vary but, at their most basic, they allow you to input a
dataset and visually manipulate it. Most, but not all, come with built-in templates
you can use to generate basic visualizations.

1. Microsoft Excel (and Power BI)

In the strictest sense, Microsoft Excel is a spreadsheet software, not a data
visualization tool. Even so, it has useful data visualization capabilities. Given that
Microsoft products are widely used at the enterprise level, you may already have
access to it.

According to Microsoft’s documentation, you can use Excel to design at least 20

types of charts using data in spreadsheets. These include common options, such
as bar charts, pie charts, and scatter plots, to more advanced ones like radar
charts, histograms, and tree maps.
There are limitations to what you can create in Excel. If your organization is
looking for a more powerful data visualization tool but wants to stay within the
Microsoft ecosystem, Power BI is an excellent alternative. Built specifically as a
data analytics and visualization tool, Power BI can import data from various
sources and output visualizations in a range of formats.

2. Google Charts
For professionals interested in creating interactive data visualizations destined to
live on the internet, Google Charts is a popular free option.

The tool can pull data from various sources—including Salesforce, SQL databases,
and Google Sheets—and uses HTML5/SVG technology to generate charts, which
makes them incredibly accessible. It offers 18 types of charts, including bar charts,
pie charts, histograms, geo charts, and area charts.

Members of the Google community occasionally generate new charts and share
them with other users, which are arranged in a gallery on Google's website. These
charts tend to be more advanced but may not be HTML5-compliant.

3. Tableau
Tableau is one of the most popular data visualization tools on the market for two
main reasons: It’s relatively easy to use and incredibly powerful. The software can
integrate with hundreds of sources to import data and output dozens of
visualization types—from charts to maps and more. Owned by Salesforce, Tableau
boasts millions of users and community members, and it’s widely used at the
enterprise level.

Tableau offers several products, including desktop, server, and web-hosted

versions of its analytics platform, along with customer relationship management
(CRM) software.
A free option, called Tableau Public, is also available. It’s important to note,
however, that any visualizations created on the free version are available for
anyone to see. This makes it a good option to learn the software's basics, but it’s
not ideal for any proprietary or sensitive data.

4. Zoho Analytics
Zoho Analytics is a data visualization tool specifically designed for professionals
looking to visualize business intelligence. As such, it’s most commonly used to
visualize information related to sales, marketing, profit, revenues, costs, and
pipelines with user-friendly dashboards. More than 500,000 businesses and two
million users currently leverage the software.

Zoho Analytics has several paid options, depending on your needs. There’s also a
free version that allows you to build a limited number of reports, which can be
helpful if you’re testing the waters to determine which tool is best for your
business.

There are many other tools that work similarly to Zoho Analytics and are tailored
to sales and marketing professionals. HubSpot and Databox are two examples,
both of which include powerful data visualization capabilities.

5. Data wrapper
Data wrapper is a tool that, like Google Charts, is used to generate charts, maps,
and other graphics for use online. The tool’s original intended audience was
reporters working on news stories, but any professional responsible for managing
a website can find value in it.
While Data wrapper is easy to use, it’s somewhat limited, especially compared to
others on this list. One of the primary limitations is that it doesn’t integrate with
data sources. Instead, you must manually copy and paste data into the tool, which
can be time-consuming and liable to error if you aren’t careful.

Some common outputs include scatterplots, line charts, stacked bar charts, pie
charts, range plots, and a variety of maps and tables. Free and paid options are
available, depending on how you intend to use the tool.

6. Infogram
Infogram is another popular option that can be used to generate charts, reports,
and maps.

What sets Infogram apart from the other tools on this list is that you can use it to
create infographics (where its name comes from), making it especially popular
among creative professionals. Additionally, the tool includes a drag-and-drop
editor, which can be helpful for beginners.

Visualizations can be saved as image files and GIFs to be embedded in reports and
documents, or in HTML to be used online. Like most of the other tools on this list,
Infogram has tiered pricing, ranging from a free to enterprise-level version.

Implementing the Business

When working in a leadership role, professionals need to be able to set clear
objectives and define equally clear strategies to achieve those objectives. Business
implementations drive all activities aimed to achieve one or more goals in a
business plan. By researching more about business implementations and how to
oversee them properly, you can ensure that you and your team work to achieve
company objectives. In this article, we define business implementation, highlight
which business professionals oversee business implementation, review the
benefits of a strong business implementation plan and provide tips and an
example for creating a successful business implementation.
In a company, everyone has a responsibility to undertake business
implementation activities. This includes company executives, managers and
employees. Each has important roles to take on to ensure that their company
successfully implements and carries out strategic plans. However, the CEO is
ultimately responsible for the outcome of an implementation plan. Here are some
examples of business implementation responsibilities at each employment level:
Company CEO and executives
The CEO, or chief executive officer and other senior executives have a
responsibility to establish the need for an implementation plan. They're also
typically responsible for creating the implementation plan and dispersing
information to lower-level management professionals.

Upper management personnel

The next level includes upper management personnel like department directors,
VPs and other company leadership. Upper management personnel may help chief
executives design and develop implementation plans, but they also have a
responsibility to assume certain roles and educate department managers on how
to inform their employees and enact changes.

Department managers
Department managers communicate directly with upper management personnel
to understand implementation plans and the role their department plays. Using
their leadership, they communicate implementation plans, review its purposes
and assign roles among department staff. Throughout the process, they answer
employee questions, help refocus employees on the end goal and notify
employees of any changes to their current tasks.
Department employees
Department employees carryout tasks as directed by their department managers
to support the successful implementation of strategic plans.

Industry 4.0
Industry 4.0 is revolutionizing the way companies manufacture, improve and
distribute their products. Manufacturers are integrating new technologies,
including Internet of Things (IoT), cloud computing and analytics, and AI and
machine learning into their production facilities and throughout their operations.

These smart factories are equipped with advanced sensors, embedded software
and robotics that collect and analyze data and allow for better decision making.
Even higher value is created when data from production operations is combined
with operational data from ERP, supply chain, customer service and other
enterprise systems to create whole new levels of visibility and insight from
previously siloed information.

This digital technologies lead to increased automation, predictive maintenance,

self-optimization of process improvements and, above all, a new level of
efficiencies and responsiveness to customers not previously possible.

Developing smart factories provides an incredible opportunity for the

manufacturing industry to enter the fourth industrial revolution. Analyzing the
large amounts of big data collected from sensors on the factory floor ensures real-
time visibility of manufacturing assets and can provide tools for performing
predictive maintenance in order to minimize equipment downtime.

Using high-tech IoT devices in smart factories leads to higher productivity and
improved quality. Replacing manual inspection business models with AI-powered
visual insights reduces manufacturing errors and saves money and time. With
minimal investment, quality control personnel can set up a smartphone
connected to the cloud to monitor manufacturing processes from virtually
anywhere. By applying machine learning algorithms, manufacturers can detect
errors immediately, rather than at later stages when repair work is more
expensive.

Industry 4.0 concepts and technologies can be applied across all types of
industrial companies, including discrete and process manufacturing, as well as oil
and gas, mining and other industrial segments.
historical context for Industry 4.0
First industrial revolution
Starting in the late 18th century in Britain, the first industrial revolution helped
enable mass production by using water and steam power instead of purely human
and animal power. Finished goods were built with machines rather than
painstakingly produced by hand.

Second industrial revolution

A century later, the second industrial revolution introduced assembly lines and the
use of oil, gas and electric power. These new power sources, along with more
advanced communications via telephone and telegraph, brought mass production
and some degree of automation to manufacturing processes.

Third industrial revolution

The third industrial revolution, which began in the middle of the 20th century,
added computers, advanced telecommunications and data analysis to
manufacturing processes. The digitization of factories began by embedding
programmable logic controllers (PLCs) into machinery to help automate some
processes and collect and share data.
Fourth industrial revolution
We are now in the fourth industrial revolution, also referred to as Industry 4.0.
Characterized by increasing automation and the employment of smart machines
and smart factories, informed data helps to produce goods more efficiently and
productively across the value chain. Flexibility is improved so that manufacturers
can better meet customer demands using mass customization—ultimately seeking
to achieve efficiency with, in many cases, a lot size of one. By collecting more data
from the factory floor and combining that with other enterprise operational data,
a smart factory can achieve information transparency and better decisions.

9 pillars of industry 4.0

The Nine Pillars of Industry 4.0

The following nine advancements are familiar concepts used in industries especially
in manufacturing. Integrating them where they are used individually at present and
implementing the lacking concepts empower the factories to be intelligent and that
is what Industry 4.0 is all about. To understand the implementation practically, let
us visualize a simple PCB manufacturing facility to understand these nine pillars.
As we learn about the nine pillars, we will assume that we have a PCB
manufacturing facility and shall try to apply the technology to the facility and
witness the regular factory turn into a smart one.
1) Big Data and Data analytics

Data analytics, once an IT application is now penetrating into manufacturing and

supply chain industry. Power of data analytics and pattern recognition can be
harnessed in the manufacturing industry to reduce downtime and wastages.

In our facility, data can be collected at different levels of manufacturing process. If

a PCB or a batch of PCBs is found to be faulty, their manufacturing data can then
be retrieved and comprehensively evaluated to arrive at a pattern. Process
involving those patterns can be redesigned and re-evaluated to reduce wastage and
increase productivity.

Predictive maintenance can be carried out based on the data collected. This is cost-
efficient and safer than the conventional routine maintenance method.
2) Simulation
A simulation, in present day is used to design components that are manufactured.
In Industry 4.0, it can be used to simulate a virtual environment of the factory itself
with the real time data and analyze the productivity before a change in the factory
can be made. This helps engineers to visualize the design in a much better manner
consequently helping them identify problems and obstacles in the early stage.

Consider that in our manufacturing facility, we have three robots to solder the
PCBs. With this in mind, our sales team promises the clients that their order will be
delivered in 3 weeks. Unfortunately, one of the older robots faces some technical
glitch with deadline in 10 days. Simulations with different speed of work can be
operated to arrive at an optimum speed at which the robots can operate without
frying themselves up and meet the deadline. Else, we either end up missing the
deadline by operating two robots at normal speed or run the risk of damaging the
working robots with trial and error method.

3) Horizontal and Vertical Integration

Horizontal integration takes networking among the cyber-physical systems and
enterprise systems to an unprecedented level. Every device and system at the same
level of manufacturing in the same facility or the other is connected with each
other. As this enables communication between systems in different facilities, jobs
can be planned and adjusted by the machines themselves. Downtime at a facility
can be compensated by overtime at another facility with no human intervention
whatsoever

Vertical integration makes it even better. Every system and humans at all hierarchy
has all the data with required abstraction. Notable challenge faced in vertical
integration is the communication protocol. It is insane to expect all the systems to
talk the same language which they obviously don’t. This can be overcome by using
interfaces; Quite a painful job but worth the work.

4) Industrial Internet of Things

You would have heard about the concept of IOT, I bet. An ecosystem in which all
the sensors and actuators with the ability to function separately and communicate
with every other element is called IOT. Industrial IOT is the same but with increased
ruggedness to survive the harsh environments of the industry.

Why should the components communicate with each other? What actually is the need
to do so?
Consider that our factory has run out of solder. There is no point in pushing out
batches of printing circuit boards when there is no solder lead available to integrate
the components. Instead of a human stopping the process, solder lead holder
enabled with sensors could prompt the inventory team to buy more solder in prior.
If the inventory team had failed to refill, the printer (etcher) can be turned off or
can go in idle mode after receiving a signal from the solder holder.

5) Autonomous Robots

Autonomous robots transfer raw materials, half-finished and completed goods in

an easier, faster and smarter way. They operate based on a complex logic algorithm,
meaning they don’t require any preset path to carry out their duties.

These robots catalyze the manufacturing process. The amount of time that can be
gained and latency that can be cut down is equal to the amount of time taken to
program controlled robots. Unlike the conveyor belt, it is portable and its duty can
be varied.

Tesla Motors’ Gigafactory is an example. They house Autonomous Indoor vehicles

(AIVs) to transfer materials between workstations. The vehicles can carry payloads
up to 130 lbs., and can even charge their own battery without intervention. They
have line follower robots too which move in a defined path. So the line-follower
robot you made for your project has applications after all.

In our case of PCB manufacturing factory, these autonomous robots can be used
to move the PCBs, once fully completed to the packaging area. If the manufacturing
facility is revamp and the packaging location is changed, just a change of destination
in the robot’s system would suffice to operate normally.

6) The Cloud

Cloud is a remote system that can be accessed provided from anywhere using the
internet. There are a lot of cloud services available today of which notable are IaaS,
PaaS, SaaS. Communication among machines themselves and between machines
and humans are hugely backed by cloud services.

Amazon.com Inc. is the best example. A consumer gets updated about the
whereabouts of his order in real time. This is not a one-to-one message. Once your
package has arrived at the warehouse, information is updated in cloud which is then
notified to you. Every time you check for your package’s present location, get query
is executed in real time to let you know about your package.

This can be integrated in PCB factory and supply chain. Under the topic of Data
analytics we already have discussed about placing sensors in different locations of
manufacturing. These can be stored in the cloud which is available for anyone with
credentials. They can be accessed by employees to take required actions there and
then as necessary. Customers would be extra happy and satisfied to view the real
time data of their product being manufactured unless we have delays due to
technical glitches.

7) Cyber Security in Industry 4.0

Cyber security becomes the talk of the town since the dawn of Information
technology. The greatest nightmare of any information technology firm is having
their server and data hacked. Preventing such a catastrophe and safeguarding the
data and performance of the server is the sole purpose of cybersecurity.

Very fancy and futuristic. But how is it going to affect a small firm that produces
Printed Circuit Boards?

As more and more components get connected and one device’s action is based on
the output of another device, more operational decisions are decentralized, more
security concerns are raised.

Think of the consequences if someone hacks into our system and changes the PCB
design and erases his digital footprints. Earlier, sole way to steal the PCB design
would be to physically log into the machine that has the same. Connectivity makes
the system vulnerable to anyone in the same network to access the designs.

This is where cyber security comes into play. Theft and intentional obliteration can
be checked through the same. Integration of the system with cloud by itself
advocates the need for cyber security.
8) Augmented Reality

Augmented Reality based systems are storming the technology industry. Few years
ago they found their applications only in flight simulators. Today remote repair
instructions can be sent to literally any part of the earth with internet accessibility.
It helps technicians to enhance their skills by practicing high end repairs and
maintenance over and over again using augmented reality.

Consider for example, we have an equipment worth of some million dollars needing
some form of maintenance. Before carrying out the job on the actual equipment, a
training session can be conducted. Once the technician is confident enough to be
impeccable, he can do the same with the actual equipment. It is a win-win situation.
We don’t lose our equipment; Technician does not get embarrassed messing up the
job.

9) Additive Manufacturing and 3D Printing

Companies are already using additive manufacturing techniques like 3D-printing to
make prototypes and Proof of concepts. The flexibility of Industry 4.0 allows us to
design complex designs which are nearly impossible with conventional
manufacturing processes.
Most of the conventional manufacturing processes are subtractive manufacturing
which includes wastage of raw materials. Additive manufacturing drastically
reduces if not totally eliminate the wastage of raw materials.

A company named "made in space" has plans to construct satellites in space. This
has a lot of added advantages. Densely packed raw materials can be sent to space
where they can be used to construct objects of bigger volume. Satellite designs,
that were cost efficient but too fragile to survive the rocket launch forces, can be
manufactured in outer space.

Concept of dark factory

1. What is a Dark Factory? A dark factory is a concept from the field of

Industry 4.0 where the manufacturing process is entirely automated,
with no need for human labor. In such a factory, machinery can run in
the dark, without any environmental conditions needed to support a
workforce, hence the term ‘dark factory’.
2. Co-botics as an Alternative: A variation on the dark factory model
involves the use of co-botics – collaborative robots that assist human
workers in their tasks. These co-bots can operate autonomously but
still require some level of human intervention for maintenance and
oversight.
3. Dark Factories as Smart Factories: In the context of a dark factory,
all manufacturing procedures, such as processing, handling, testing,
packing, and shipping, are automated by industrial machinery. This
reduces the need for manual labor, potentially lowers production
costs, and improves efficiency.
4. Use of Advanced Technology in Dark Factories: Some
businesses are currently leveraging advanced technology, such as
autonomous guided vehicles (AGVs), in their factories. AGVs operate
on pre-programmed routes and tasks, furthering the degree of
automation in the factory.
5. Features of Dark Factories: The main features of a dark factory
include autonomy, visual technology practice, self-structuring
 capabilities, and self-learning and maintenance capabilities. Each unit
in the system can construct the optimal system structure based on
work tasks independently, and faults can be diagnosed and
eliminated automatically, or the correct system can be notified.

Gandhi’s concept of appropriate technology

This is an examination of the significance of Gandhi's social

philosophy for development. It is argued that, when seen in light of
Gandhi's social philosophy, the concepts of appropriate technology
(A.T.) and basic needs take on new meaning. The Gandhian approach
can be identified with theoriginal "basic needs" strategy for
international development (Emmerij, 1981). Gandhi's approach helps
to provide greater equity, or "distributive justice," by promoting
technology that is appropriate to "basic needs" (food, clothing,
shelter, health and basic education). Gandhi's social philosophy
(Erikson, 1968; Roy, 1985) has been neglected by most development
specialists, with only a few exceptions (e.g., Chambers, 1983; Charles,
1983). This analysis attempts to draw out some aspects of M.K.
Gandhi's background and his thinking aboutswadeshi (i.e. local self-
reliance and use of local knowledge and abilities) andswaraj (i.e.
independent development that leads to equity and justice). Gandhi's
ideas, which emerged out of an "Indic" meta-cultural background,
are based on an emphasis on equity. Gandhi's syncretic Indic
background includes a belief in what Bateson (1972), writing about
Bali, Indonesia, has called the "steady state." Development activities
should be carried out in a phased manner that does not disturb the
beneficial aspects of dynamic equilibrium, but that does promote
"positive development." A.T. is particularly useful within the context
of a basic needs approach to international development because use of
A.T. is probably more likely to lead to equitable growth. The
"economic growth" strategy, utilizing "advanced technology" (or
even "high tech") exclusively, has caused unemployment and has not
led to effective "trickle down," much less "high mass consumption."
In many developing countries the poorest 20% of the population are
worse off in 1990 than they were in 1980. By making use of the
"advantage of backwardness" (Veblen, 1966) and viewing
development in terms of long-term impacts, a basic needs approach
using A.T. is more likely to lead to a positive impact on third world
food systems than a pure "economic growth" strategy.

Mahatma Gandhi’s list of 7 social sins

Gandhi’s seven social sins refer to behaviors that go against this

ethical code and thereby weaken society. When values are not strongly
held, people respond weakly to crisis and difficulty. The following are the
biggest social sins that Gandhi warned against.

1) Wealth without Work : Making wealth by UNFAIR means, by taking short

cuts. For Example, Tax evasion, scams, insider trading, Black Money etc.
2) Pleasure without Conscience : Happiness that is earned at the expense
of others is no less than a sin. Attaining pleasure without a sense of social
responsibility. Sexual harassment, mindless consumerism
3) Knowledge without character : Bruce Lee said, “Knowledge will give
you power. Character gives you respect.” Character imbibes qualities of
INTEGRITY and HONESTY in a knowledgeable person.
4) Business without morality : Business should be fair to all stakeholders
involved. Unethical governance structure, lack of infrastructure, lack of
integrity, Poor working conditions, adulteration, lack of security are examples
of this sin.
5) Science without humanity : Use of digital technologies like social
networking sites for propagation of radical terrorism & social & religious
hatred. Pakistan has nukes but the socio-economic conditions of the nation
are worsening with time.
6) Religion without sacrifice : Religion today has been reduced to mere
practices and rituals. Not bringing the religious teachings of COMPASSION,
AFFECTION and BROTHERHOOD in our lives is a sin.
7) Politics without principle : Politics driven by greed ,power. opportunism
etc. will undermine the national interest . Crony capitalism is one such
manifestation. The advent of money and muscle power, lack of conviction
and principles in politics is a sin.

Social / Industrial problems requiring technology based products and

solutions

The past year has seen unprecedented challenges to public-health systems and
the global economy. Many facets of daily life and work have moved into the
digital realm, and the shift has highlighted some underlying business
technology issues that are getting in the way of productivity, communication
and security.

As successful business leaders, the members of the Young Entrepreneur

Council understand how important it is to have functional, up-to-date
technology. That’s why we asked a panel of them to share what they view as
the biggest business tech problem of the past year. Here are the issues they’re
concerned about and the innovations they believe will help solve them.

CURRENT MAJOR TECHNOLOGY ISSUES

• Need For Strong Digital Conference Platforms
• Remote Internet Speed and Connections
• Phishing and Data Privacy Issues
• Deepfake Content
• Too Much Focus on Automation
 • Data Mix ups Due to AI Implementation
• Poor User Experience

1. EMPLOYEE PRODUCTIVITY MEASUREMENT

As most companies switched to 100 percent remote almost overnight, many

realized that they lacked an efficient way to measure employee productivity.
Technology with “user productivity reports” has become invaluable. Without
being able to “see” an employee in the workplace, companies must find
technology that helps them to track and report how productive employees are
at home.

2. DIGITAL INDUSTRY CONFERENCE PLATFORMS

Nothing beats in-person communication when it comes to business

development. In the past, industry conferences were king. Today, though, the
move to remote conferences really leaves a lot to be desired and transforms
the largely intangible value derived from attending into something that is
purely informational. A new form or platform for industry conferences is
sorely needed.

3. REMOTE INTERNET SPEED AND EQUIPMENT

With a sudden shift to most employees working remotely, corporations need

to boost at-home internet speed and capacity for employees that didn’t
previously have the requirements to produce work adequately. Companies
need to invest in new technologies like 5G and ensure they are supported at
home.
4. TOO MUCH FOCUS ON AUTOMATION

Yes, automation and multi-platform management might be ideal for big-name

brands and companies, but for small site owners and businesses, it’s just
overkill. Way too many people are overcomplicating things. Stick to your
business model and what works without trying to overload the process.

5. PHISHING SITES

There are many examples of phishing site victims. Last year, realized the
importance of good pop-up blockers for your laptop and mobile devices. It is
so scary to be directed to a website that you don’t know or to even pay to get to
sites that actually don’t exist. Come up with better pop-up blockers if possible.

6. DATA PRIVACY

I think data privacy is still one of the biggest business tech issues around.
Blockchain technology can solve this problem. We need more and more
businesses to understand that blockchains don’t just serve digital currencies,
they also protect people’s privacy. We also need Amazon, Facebook, Google,
etc. to understand that personal data belongs in the hands of the individual.

7. MOBILE SECURITY

Mobile security is a big issue because we rely so much on mobile internet

access today. We need to be more aware of how these networks can be
compromised and how to protect them. Whether it’s the IoT devices helping
deliver data wirelessly to companies or people using apps on their
smartphones, we need to become more aware of our mobile cybersecurity and
how to protect our data.
8. DEEPFAKE CONTENT

More and more people are embracing deepfake content, which is content
created to look real but isn’t. Using AI, people can edit videos to look like
someone did something they didn’t do and vice versa, which hurts authenticity
and makes people question what’s real. Lawmakers need to take this issue
seriously and create ways to stop people from doing this.

9. POOR USER EXPERIENCE

I’ve noticed some brands struggling with building a seamless user experience.
There are so many themes, plugins and changes people can make to their site
that it can be overwhelming. As a result, the business owner eventually builds
something they like, but sacrifices UX in the process. I suspect that we will see
more businesses using customer feedback to make design changes.

10. CYBERSECURITY THREATS

Cybersecurity threats are more prevalent than ever before with increased
digital activities. This has drawn many hackers, who are becoming more
sophisticated and are targeting many more businesses. Vital Information, such
as trade secrets, price-sensitive information, HR records, and many others are
more vulnerable. Strengthening cybersecurity laws can maintain equilibrium.

11. DATA BACKUP AND RECOVERY

As a company, you’ll store and keep lots of data crucial to keeping business
moving forward. A huge tech issue that businesses face is their backup
recovery process when their system goes down. If anything happens, you need
access to your information. Backing up your data is crucial to ensure your
brand isn’t at a standstill. Your IT department should have a backup plan in
case anything happens.

12. MULTIPLE AD AND MARKETING PLATFORMS

A major issue that marketers are dealing with is having to use multiple
advertising and marketing platforms, with each one handling a different
activity. It can overload a website and is quite expensive. We’re already seeing
AdTech and MarTech coming together as MAdTech. Businesses need to keep
an eye on this convergence of technologies and adopt new platforms that
support it.

13. LOCATION-BASED INNOVATION

The concentration of tech companies in places like Seattle and San Francisco
has led to a quick rise in living costs in these cities. Income isn’t catching up,
and there’s stress on public infrastructure. Poor internet services in rural areas
also exacerbate this issue. Innovation should be decentralized.

14. ARTIFICIAL INTELLIGENCE IMPLEMENTATION

Businesses, especially those in the tech industry, are having trouble

implementing AI. If you’ve used and improved upon your AI over the years,
you’re likely having an easier time adjusting. But new online businesses test
multiple AI programs at once and it’s causing communication and data mix-
ups. As businesses settle with specific programs and learn what works for
them, we will see improvements.
Company to campus and campus to company culture among
students

Establishing a strong employer brand not only helps students recognize

your company on campus, but builds excitement for the open roles at your
organization. Here’s how to make your company stand out with an effective
employer branding strategy and campus recruitment approach.

What matters most in campus recruiting? A study by the National

Association of Colleges and Employers says it’s employer branding.
These employers know that if students don’t recognize the company at a
career fair or aren’t excited by the brand, they are less likely to apply for a
job or seek an internship with the organization. Here are the top ways to
build your brand on college campuses and stand out to soon-to-be grads.

Host information sessions

Hosting on-campus information sessions raises awareness for your
company among a targeted group of college students. Information
sessions, often coordinated with the university career center, are an
opportunity to share details on open positions, organizational culture and
unique information about your company and industry.

But with so many companies competing for talent, it can be challenging to

attract students and increase attendance. Think about how to reinvent
your information session to be more creative, interactive, and targeted
to Gen Z’s job search expectations as part of your employer branding
strategy. Spread the word on social media, through career center
communications and by inviting potential candidates in your talent
pipeline.

Build on-campus relationships

While career fair recruiting is essential, attending a once-per-year hiring
event may not be enough to stay top-of-mind with college students—and
it’s not always easy to get them to attend in the first place. Instead,
maintain ongoing relationships with students and faculty throughout the
year as part of your campus recruitment and employer branding strategy.
Offer time and resources to student groups or sponsor club events to meet
potential employees. If the school has a process to connect employers with
faculty for classroom presentations, offer to share your company’s
expertise. Students and professors will welcome the real-world case study
and your organization will demonstrate industry leadership among a
classroom of interested students.

Update career sites and job descriptions

Your career site is the first place students visit to research your
organization, and it’s one of the best places to showcase your employer
brand. Create a stand-out careers page focused on entry-level roles that
offers a view inside your organization. Keep it up to date with information
on company culture, growth opportunities and recent photos. If your job
descriptions are recycled year after year, revisit them to make sure they’re
optimized for Gen Z job seekers as part of your campus recruitment and
employer branding strategy.

Respond to third-party reviews

According to the 2022 State of Campus Recruiting, 81% of Gen Z

candidates are finding jobs online—which means they’re also likely reading
your company’s third-party reviews. That’s why monitoring sites like
Glassdoor and Comparably is now an essential part of an employer
branding strategy. Respond to reviews, both positive and negative, in a
timely manner. Thank the reviewer for their feedback, offer steps to
address concerns and focus on positive company-led initiatives.
Responding to reviews allows you to control the narrative—even on sites
you don’t own.

Make personal connections

Offering a personal touch can differentiate your company and help you
stand out among other employers. When the dean’s list is released,
use recruitment CRM software to send congratulatory emails to students
you met at a previous career fair. Before finals, mail care packages to wish
candidates good luck. Students may share these personal touches with
friends and on social media, continuing to build your employer brand
among a college student audience.

Nurture referrals

College students interact each day with peers in similar majors and
organizations. Capitalize on student networks to connect to a wider
talent pool. At the end of each internship, ask interns to share the names of
friends who may be interested in a role within your organization. Add these
students to your talent community, even if they are only freshmen, and
nurture them until they are ready to explore opportunities with your
company. A student who is inexperienced now may qualify for a position in
the future.

Create a year-round digital strategy

An on-campus employer branding strategy has no start or end dates. While

spring and fall are peak recruiting times, stay top-of-mind with college
students year round by communicating unique company information
through email campaigns and text, engaging with students on social media.
Launching a digital campus recruitment strategy makes it possible to stay
connected to students and fill talent pipelines with the next generation of
talent. Recruiting technology enables you to source, attract and engage
candidates, even without an on-campus presence.

Leverage Alumni Networks:

Your company’s alumni network can be an invaluable asset in your

campus recruitment strategy. Engaging with successful former employees
who have graduated from the same institution can significantly enhance
your employer brand. Alumni often have a strong emotional connection to
their alma mater and can serve as powerful brand advocates, sharing their
positive experiences and success stories within your organization.
Encourage alumni to participate in networking events, mentorship
programs, or even offer internships to current students. By showcasing
these success stories and fostering connections between alumni and
current students, you can build a sense of community and trust that
enhances your employer brand and attracts top talent.

Don’t rely on word-of-mouth or a single career fair to grow your employer

brand on campus. Incorporate these initiatives in your employer branding
strategy and campus recruitment approach to cultivate a pool of talent that
is already engaged with your brand and excited about a potential career
with your organization.

Need of innovation in entrepreneurship

1. Solves complex business problems

Knowing the answer to what product management life cycle is cannot help
managers or executives solve complex business problems. Moreover, the
uncertainties and complex business situations fueled by the COVID-19
pandemic can make things worse for them.

Therefore, to judiciously and effectively solve complex business problems,

it is imperative to use innovative ideas. Leaders must use external (online
data, literary works, etc.) and internal sources to develop innovative ideas
to solve complex business problems. At first, it might seem like a difficult
task, but it is considered to steer your business in the right direction.

2. Increases productivity
One of the benefits of innovation in business is the increase in productivity
of individuals, processes, and business models, among others. Simply put,
innovation presents new ideas to business leaders to increase efficiency
with minimum resources. Furthermore, reducing business and other risks.

3. Brings uniqueness and novelty to business process

Business processes have been the same for more than a few decades.
However, with the introduction of innovation in business, there has been a
disruption that is believed to be caused due to novelty, creativity, and
uniqueness. That is also helping in making the business stand out from the
rest and vicariously contributing to increased revenue and market share.

4. Gives a competitive advantage

Thinking innovatively or creatively can help managers and executives
develop unique marketing campaigns to help them stand out. Also,
formulate promotional and advertising strategies that will help in
increasing market share and revenue, giving the company a competitive
advantage.

5. Reduces cost and increases revenue

As mentioned above, one of the biggest advantages of innovation is that it
helps increase revenue and market shares. Subsequently, leading to a
reduction in cost.
Meanwhile, innovation has many advantages in business, but the points
mentioned above will help business leaders, managers, and executives
understand the importance of using innovative ideas actively. If not, then in
the next part, we will discuss how innovation helps achieve business
success.

Ideate in business

Ideation refers to the process of developing and conveying prescriptive ideas

to others, typically in a business setting. It describes the sequence of
thoughts, from the original concept to implementation. Ideations can spring
forth from past or present knowledge, external influences, opinions,
convictions, or principles. Ideation can be expressed in graphical, written, or
verbal terms.

Ideation is defined as the dynamic and collaborative process of

generating, developing, and refining innovative ideas with a clear goal in
mind. This creative approach, rooted in brainstorming and strategic
thinking, serves as a powerful catalyst for exploring and solving
problems, crafting groundbreaking products or services, and uncovering
fresh opportunities for business growth.

Let us now look at the key steps of the ideation process:

• Problem Identification: Clearly defining the problem or opportunity

that needs to be addressed is the starting point of ideation. By
understanding the challenges or unmet needs, ideators can focus
their efforts on generating ideas that provide solutions.

• Creativity and Inspiration: Ideation relies on creativity and

inspiration to spark new ideas. This can be achieved by seeking
 inspiration from various sources such as customer insights, market
trends, or technology innovation. Creative thinking techniques are
often used to inspire fresh ideas.

• Divergent Thinking: Ideation encourages divergent thinking, which is

the ability to generate a wide range of ideas. It involves exploring
multiple perspectives, possibilities, and potential solutions without
judgment or evaluation. This element allows for the exploration of
creative and innovative ideas.

• Collaboration and Diversity: Collaborative ideation processes

involve bringing together individuals or teams with diverse
backgrounds, expertise, and perspectives. Collaboration encourages
the exchange of ideas, stimulates creative thinking, and allows for the
combination and refinement of different viewpoints.

• Idea Generation Techniques: Various ideation techniques and tools

like Idea Scale Whiteboard can be employed to facilitate idea
generation. These techniques may include brainstorming, mind
mapping, SCAMPER (Substitute, Combine, Adapt, Modify, Put to
another use, Eliminate, Reverse), or other structured approaches to
stimulate idea generation.

• Evaluation and Selection: Once a significant number of ideas have

been generated, the next step is to evaluate and select the most
promising ones. This involves assessing ideas based on predefined
criteria such as feasibility, market potential, alignment with strategic
goals, and resources required for implementation.

• Iteration and Refinement: Ideation is an iterative process. Ideas

often undergo refinement and iteration to enhance their quality,
feasibility, and practicality. Customer feedback and evaluation help in
shaping and improving ideas before they move forward into the
implementation phase.

• Documentation and Organization: It is important to document and

organize the generated ideas to ensure they are not lost and can be
reviewed or revisited later. An idea management platform can be
used to capture, categorize, and track ideas throughout the ideation
process.
 Incubate in business

Business Incubation is the name given to the process wherein an

individual or an organization supports the establishment and growth
of a start-up. Those supporting the start-up or new companies are
called business incubators. These business incubators see the
growth potential and weigh the opportunity before supporting or
funneling funds into any start-up. The selection of a start-up involves
a high level of research before any decision is taken to support or
fund a start-up. In a nutshell, we can say the goal of incubation is to
increase the success chances of a business.

Over the years, experts have defined Business Incubation in their

own way. The underlying concept, however, remains the same.
According to Sherman and Chappel, a business incubator is an
“economic development tool primarily designed to help create and
new businesses in a community.” Further, Sherman and Chappel
note that the business incubator support emerging businesses with
several services, such as assistance in building management teams,
developing business and marketing plans, funds, professional
services, shared equipment, and more.

There are various business incubators that target businesses that want to
establish themselves formally in the market. Such businesses with great
growth potential might require various types of support such as planning,
training, development, research support, etc.

Stages of Business Incubation

The whole process of business incubation is broadly divided into three
categories:

Physical Facility Support

This refers to the incubation service provided within the physical facility.

Networking Facilities
After the physical facility, business incubators help the start-up with
networking facilities so as to grow the business.
Support Services
Once the business is up and running, the incubators offer various support
services to the businesses in order to run the business smoothly.

Incubators are usually a partnership or collaboration between one more

pro-business organization. These organizations can be:

• Economic development organizations

• Government entities
• Local colleges and universities
• For-profit ventures
• Trade associations

Start-ups usually have a rich idea but lack the resources to execute it.
Thus, they require business incubators to perform significant roles or fill
gaps. Following are the most common services offered by the business
incubators:

• Help a start-up to start basic operations and financial

management.
• They offer marketing and PR assistance to new companies to
set up a brand name.
• Business incubators have a strong network of influential people,
and therefore, they can connect the business with the same to
grow.
• Incubators also provide assistance and resources for
conducting market research.
• They also help the start-ups in sorting their accounting books.
• Incubators bring credibility to the company. This helps the
company to get loans and credit facilities from financial
institutions.
• Often the start-ups do not know how to create an effective
presentation to impress angel investors, venture capital, and
other investors. Business incubators, with plenty of experience
behind them, also help these companies with the presentations.
 • Business incubators also act as mentors and advisors and
assist start-ups in all sorts of business-related issues.

Identification of project in business

Without the ability to identify projects, it would be difficult for anyone

to do anything at all. To get started with identifying your projects, you
need two things: a business case and a scope of work. The business
case should include an outline of what problem or opportunity this
project will address, who will benefit from the project's completion
and why this problem needs solving now. A good scope of work
should define how long the project will take and what resources are
required for its completion.

Stages of project identification

• Initiation: The purpose of initiation is to gather and analyse

the projects' requirements and describe the stages involved
in the project. The objective is to prioritise the tasks and
allocate the resources based on availability and conditions.
Identify the project sponsors and create a scope
document to avoid any miscommunication.

• Feasibility: The purpose of feasibility is to develop

parameters and provide a wide range of solutions to meet
those requirements. The report will contain answers to any
problem arising and elaborate on the project details.

• Project schedule: Define a road map and estimate

the budget, resources, level of effort required depending
upon the project's complexity. Create a goal and a series of
tasks to be completed to accomplish them. Estimate the time
needed to complete each task and assign them to the
personnel responsible for execution.

• Risk analysis: Identify any potential risks involved and

describe what you will do to mitigate or manage them.
 Create a plan to implement specific steps to reduce the
impact of hazards. Monitor and categorise the risks based
on their threat level, gather resources in advance to deal
with the effects, and ensure the required backup is
functioning at its optimum level.

• Identification close out: The cost estimates are checked

for accuracy, and the date of completion is confirmed. The
identification closes out should include an analysis of the
resource usage during the project, including materials, labor,
subcontractors, and equipment costs. It provides a final
opportunity to review all supporting documentation and
ensure that everything is accounted for, including any
discrepancies such as missing or damaged items.

• Approval: This phase consists of the assessment and

support of the proposals. Identify any threats and present
the solutions to deal with them. The recommendations are
approved by stakeholders or project managers, and any
changes that need to be made will be sent back to the team
for further analysis.

Selection of projects in business

Project selection is the process of evaluating projects to ensure that they

align with your strategic objectives and deliver maximum performance. This
helps you choose projects based on a prioritized hierarchy. Project
selection takes place during the beginning stages of a project, when you’re
dealing with ideas or suggestions.

All selection methods are based on two

criteria: benefits and feasibility. The benefits of the project take the form
of a list of positive outcomes. Reasons to take on a project include anything
from economic gain to social and cultural significance, or even fulfilling
commitments from previous agreements. Feasibility, in this context, means
the likelihood of a project is a success. All projects are risky, and some are
very complex. Determining the feasibility of any project can take time and a
lot of research. This process is done in what is called a feasibility study,
which is part of the project initiation stage.

Project Selection Methods

These eight project selection methods will help you make the right decision
when choosing a project. While there are many measurement methods, such
as Six Sigma and constrained optimization, these project selection methods
are the most widely used:

1. Cost-Benefit Analysis

Cost-benefit analysis is used to estimate the costs and benefits associated

with a particular project. In other words, it’s a method to discover the most
cost-effective way to execute a project. This is done by defining all the costs,
both direct, indirect, intangible and more against the benefits, be they direct,
indirect and so forth. ProjectManager has an article that provides a step-by-
step guide to a cost-benefit analysis that goes into this in-depth.

2. Scoring Models

Scoring models are used when the project manager or project selection
committee makes a list of project criteria and scores each according to their
relevance, importance and priority. This gives a more objective view of the
project. When done, you can put the projects in a list from best to worst, and
the top project will likely be the one more beneficial and feasible to take on.

3. Payback Period

One criterion for a successful project is making back the money you’ve
invested. The project payback period is a method to see the ratio between the
total cash to the average cash period (payback period = cost of project /
average annual cash inflows). In other words, you can determine how long it
will take for you to recover the investment. However, it doesn’t consider the
time value of money nor benefits accrued after the payback period or risk
inherent in the project.

4. Net Present Value

Net present value is the difference between the current value of cash inflow
and the current value of cash outflow in the project. It’s always a positive and
the one with the highest net present value is the best project to select. Unlike
the payback period, net present value takes into account the future value of
money. However, it doesn’t give a picture of profit or loss and isn’t a method
for figuring out the discount value used for the present value calculation.

5. Constrained Optimization Methods

This mathematical model of project selection is best when evaluating larger

projects that are more complicated. There are three main techniques in the
constraint optimization method; integer programming, linear programming and
dynamic programming. While some will also use non-linear programming and
multiple-objective programming, we’ll focus on the top three:

Integer Programming
This method involves looking at a decision that involves integer values, not
fractional ones. This is a project, such as the manufacture of cars, razor
blades or other items that cannot be divided into smaller pieces but delivered
as a whole.

Linear Programming

This method is about reducing the project cost by shortening the time
necessary to complete the project. Therefore, it involves the examination of
how long it takes to run any particular activity in the project. If you have to add
effort to an activity, that means it will cost more and likely be less attractive.

Dynamic Programming

This method is used to break complex problems into a series of simpler ones.
However, you have to decide if the problem is suited for dynamic
programming. If it is, then dynamic programming will help you make a
sequence of correlated decisions. It allows you to see the best combination of
decisions.

6. Internal Rate Of Return

This method deals with the interest rate when the net present value is at zero
(that is, when the present value of the outflow is equal to the present value of
the flow.) Another way to refer to this is as the annualized effective
compounded return rate or discount rate that leaves the net present value of
all your cash flows from an investment at zero. This method helps determine
which project will offer your organization the greatest profitability.
7. Discounted Cash Flow

This method takes into account inflation or the likely fact that today’s money
isn’t going to have the same value as the same amount of money in the
future. Therefore, you need to take into account the discounted cash flow
when calculating the cost investment and return on investment of any
potential project or project proposal over the project life cycle you plan to
undertake.

8. Opportunity Cost

This method is used when evaluating two projects. You make the choice by
selecting the project that has the lower opportunity cost. The opportunity cost
is the possible loss of a future return from the second-best option on your list
of potential projects. In other words, it’s the potential return you won’t realize
by taking the other project and must be part of your project management or
project portfolio management.

Project report

A project report is a document that consists of crucial information about a

project. It includes information that can be used to evaluate the progress of
a project, understand its objective, trace its journey, provide direction to
team members, mitigate risks, and communicate a project’s success or
failure to stakeholders and other business entities.

Here are some of the main components of a project report:

• General information
• Executive summary
• Organisational summary
• Project description
 • Marketing plan
• Capital structure and operating cost
• Management plan
• Financial aspects
• Technical aspects like technologies used, manufacturing process,
and machinery capabilities
• Project implementation

Here’s why a project report is important:

• It helps track a project’s progress, resource requirements, workforce

delegation, etc.
• It defines a project’s objectives, performance metrics, and
expectations.

Here is a step-by-step guide on how to create a project report.

Step 1:

Identify your objective

Identifying your objective at the beginning helps keep your project on track
and provides metrics to measure success and progress.
Sit down and list out reasons for preparing a project report. In simpler
words, find an answer to “Why should I prepare a project report?” It will
help in understanding the objective behind developing a report.

Step 2:

Understand the audience

Understanding your target audience’s likes, dislikes, and preferences helps
prepare a project report that your audience can easily understand.

Step 3:

Choose the suitable template

Whether choosing from the existing template or creating a new project
report temple, select a template that conveys your message effectively and
convincingly.

Remember that your template must answer these questions:

 • Who is my audience?
• What is the purpose behind making the report?
• What are the budgets, time, and deliverables of the project?

Step 4 :

Data Collection
The chances of you having a solid project report increase when you have
data to back your claims. Therefore, including data from case studies,
surveys, and interviews helps support your claims and develop a
successful project report.

Step 5 :

Project structure

Every report has a structure that arranges and organises all data and
information in a user-friendly manner. Here’s a close look at the project
report’s structure:

• Summary: It is written once the report is completed. It helps in

presenting the main objective of the information. This critical section
of the document compels the reader to proceed with the report.
• Introduction: It introduces the report’s contents to the readers. The
scope, essential parameters, objectives, targets, and deadlines are
mentioned in this part of the project report.
• Body: It presents the background details, data, analysis, discussion,
recommendation, etc.
• Conclusion: In this part of the project report, project managers
present a clear and concise end to the document.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the

important information that investors are looking for. Here are the main
sections of a business plan:
1. Title Page

The title page captures the legal information of the business, which
includes the registered business name, physical address, phone number,
email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the

first section that investors and bankers see when they open the business
plan. It provides a summary of the entire business plan. It should be
written last to ensure that you don’t leave any details out. It must be short
and to the point, and it should capture the reader’s attention. The
executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific

industry that the business operates in. Some of the information provided
in this section includes major competitors, industry trends, and estimated
revenues. It also shows the company’s position in the industry and how it
will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s
product offerings. This section confirms that the company understands
the market and that it has already analyzed the existing market to
determine that there is adequate demand to support its proposed
business model.

Market analysis includes information about the target

market’s demographics, geographical location, consumer behavior, and
market needs. The company can present numbers and sources to give an
overview of the target market size.
A business can choose to consolidate the market analysis and competition
analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its
products to the target market. It attempts to present the business’s
unique selling proposition and the channels it will use to sell its goods and
services. It details the company’s advertising and promotion activities,
pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal

structure, its management team, and internal and external human
resource requirements. It should list the number of employees that will be
needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and

consultants, that the company will need should also be included. If the
company intends to use the business plan to source funding from
investors, it should list the members of the executive team, as well as the
members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical

requirements, such as office space, machinery, labor, supplies,
and inventory. For a business that requires custom warehouses and
specialized equipment, the operating plan will be more detailed, as
compared to, say, a home-based consulting business. If the business plan
is for a manufacturing company, it will include information on raw
material requirements and the supply chain.
8. Financial Plan

The financial plan is an important section that will often determine

whether the business will obtain required financing from financial
institutions, investors, or venture capitalists. It should demonstrate that
the proposed business is viable and will return enough revenues to be
able to meet its financial obligations. Some of the information contained
in the financial plan includes a projected income statement, balance
sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It
includes any additional information that banks and investors may be
interested in or that adds credibility to the business. Some of the
information that may be included in the appendices section includes
office/building plans, detailed market research, products/services offering
information, marketing brochures, and credit histories of the promoters.

Formulation in Business

Strategy formulation is the process of using available knowledge to

document the intended direction of a business and the actionable steps to
reach its goals.

This process is used for resource allocation, prioritization, organization-

wide alignment, and validation of business goals.

Formulating an effective strategy can allow your organization to share one

clear vision, catch biases by examining the reasoning behind goals, and
track performance with measurable key performance indicators (KPIs).
Steps of Strategy Formulation
The steps of strategy formulation include the following:

1. Establishing Organizational Objectives: This involves establishing

long-term goals of an organization. Strategic decisions can be taken
once the organizational objectives are determined.
2. Analysis of Organizational Environment: This involves SWOT
analysis, meaning identifying the company’s strengths and
weaknesses and keeping vigilance over competitors’ actions to
understand opportunities and threats.
Strengths and weaknesses are internal factors which the company
has control over. Opportunities and threats, on the other hand, are
external factors over which the company has no control. A successful
organization builds on its strengths, overcomes its weakness,
identifies new opportunities and protects against external threats.
 3. Forming quantitative goals: Defining targets so as to meet the
company’s short-term and long-term objectives. Example, 30%
increase in revenue this year of a company.
4. Objectives in context with divisional plans: This involves setting up
targets for every department so that they work in coherence with the
organization as a whole.
5. Performance Analysis: This is done to estimate the degree of
variation between the actual and the standard performance of an
organization.
6. Selection of Strategy: This is the final step of strategy formulation. It
involves evaluation of the alternatives and selection of the
best strategy amongst them to be the strategy of the organization.

Project Evaluation

Project evaluation is the process of measuring the success of a project,

program or portfolio. This is done by gathering data about the project and
using an evaluation method that allows evaluators to find performance
improvement opportunities. Project evaluation is also critical to keep
stakeholders updated on the project status and any changes that might be
required to the budget or schedule.

Every aspect of the project such as costs, scope, risks or return on

investment (ROI) is measured to determine if it’s proceeding as planned. If
there are road bumps, this data can inform how projects can improve.
Basically, you’re asking the project a series of questions designed to
discover what is working, what can be improved and whether the project is
useful. Tools such as project dashboards and trackers help in the
evaluation process by making key data readily available.
There are three points in a project where evaluation is most needed. While
you can evaluate your project at any time, these are points where you should
have the process officially scheduled.

1. Pre-Project Evaluation

In a sense, you’re pre-evaluating your project when you write your project
charter to pitch to the stakeholders. You cannot effectively plan, staff and
control a new project if you’ve first not evaluated it. Pre-project evaluation is
the only sure way you can determine the effectiveness of the project before
executing it.

2. Ongoing Project Evaluation

To make sure your project is proceeding as planned and hitting all of the
scheduling and budget milestones you’ve set, it’s crucial that you
constantly monitor and report on your work in real-time. Only by using
project metrics can you measure the success of your project and whether
or not you’re meeting the project’s goals and objectives. It’s strongly
recommended that you use project management dashboards and tracking
tools for ongoing evaluation.
3. Post-Project Evaluation

Think of this as a postmortem. Post-project evaluation is when you go

through the project’s paperwork, interview the project team and principles
and analyze all relevant data so you can understand what worked and what
went wrong. Only by developing this clear picture can you resolve issues in
upcoming projects.

Design thinking approaches for product development

Design Thinking is a process of solving problems by prioritizing the needs

of a consumer above all else. It uses design tools and processes to identify
and analyze issues and develop innovative and user-centered solutions.
Design Thinking achieves creative solutions to different difficulties
experienced by users. In fact, it aims to make them the main actors of the
design process. It is a holistic way of applying critical thinking to solve
complex design problems. Let's cite a concise definition of Design Thinking:

Thus, this method implies a deep understanding of the end users, and
their needs. Additionally, it has five stages that allow you to solve
ambiguous situations or problems:

• empathize
• define
• ideate
• prototype
• test

Design thinking consists of five stages that feed back and enhance each
other:
Empathize

During this stage, we seek to understand users' or consumers' needs,

expectations, and desires. When designing for others, the first step is to put
yourself in those people's shoes. That is, to understand what is truly
relevant to them. It is crucial to research the target market and grasp a
user's situation. The more you are able to put yourself in their shoes, the
easier it is to understand them. You can also identify what can genuinely
add value for them. At this stage, you can use different techniques, such as
interviews, surveys, observation, and data collection, among others.

Define

In this stage, you define the problem based on the information obtained in
the previous stage. Gather the user's observations and information, and
identify the key points. Finally, establish the objectives to solve the
problem. Additionally, you need to define who the users and stakeholders
are. It is advisable to establish a budget, a schedule, and an overview of
the project. The fundamental questions at this stage are:

• What problem are we trying to solve?

• What are the different ways to solve the problem?

To answer these questions, rely on the data collected in the empathy

phase. In short, this stage is crucial for establishing a solid foundation and
guiding the product design process in the right direction.

Ideate

During the Ideation stage, aim to generate as many ideas and solutions as
possible, regardless of their quality. In the previous phases, you focused on
understanding and solidifying the information obtained. Now, you need to
generate ideas and solutions for identified difficulties. It is crucial to
approach this stage with creativity and without judgment. It enables teams
to focus on creating the best product ideas. It is strictly related to the
previous phase:

With this solid background, you and your team members can start to look
at the problem from different perspectives and ideate innovative solutions
to your problem statement.
Rikke Friis Dam. “The 5 Stages in the Design Thinking Process”.
Interaction Design Foundation

These ideas will be utilized to solve a problem defined in the previous

stage.

Prototype

At this stage, you shape and start realizing ideas. The key is to create
versions that are quick and cost-effective to test the ideas generated in the
previous stage. In other words, it's about building tangible and affordable
prototypes to test their validity and make improvements. The ultimate goal
is to develop a prototype and test it with real users to obtain information
and feedback on the solution being developed. With this data, you can
make informed decisions on how to improve the solution before moving on
to the implementation phase.

Ultimately, the prototype needs to be built and tested with real users to
obtain feedback and information.

Test

During this stage, test the prototypes created in the previous stage and
make necessary improvements. Users play a crucial role in testing the
solution within their real-life environment. They experience the prototype
without explicit guidance and engage in providing feedback. Analyze their
behavior while using the prototyped solution. Use the feedback to refine the
solution and ensure its alignment with the user's needs. The Design
Thinking process is iterative rather than linear. Therefore, having
completed the fifth stage, design thinkers may need to revisit one or more
previous stages.

Launch

A product launch refers to a business’s planned and coordinated effort to debut a

new product to the market and make that product generally available for purchase.
A product launch serves many purposes for an organization— giving customers the
chance to buy the new product is only one of them. It also helps an organization
build anticipation for the product, gather valuable feedback from early users, and
create momentum and industry recognition for the company.

Market study methodologies

Market research involves collecting and analyzing data about a specific

industry, market, or audience to inform strategic decision-making. It offers
marketers valuable insights into the industry, market trends, consumer
preferences, competition, and opportunities, enabling businesses to refine
their strategies effectively.

By conducting market research, organizations can identify unmet needs,

assess product demands, enhance value propositions, and create
marketing campaigns that resonate with their target audience.

Use of primary vs secondary market research

Market research can be split into two distinct sections: primary and
secondary. These are the two main types of market research.

They can also be known as field and desk, respectively (although this
terminology feels out of date, as plenty of primary research can be carried
out from your desk).

Primary (field) research

Primary market research is research you carry out yourself. Examples of
primary market research methods include running your own focus groups
or conducting surveys. These are some of the key methods of consumer
research. The ‘field’ part refers to going out into the field to get data.

Secondary (desk) research

Secondary market research is research carried out by other people that
you want to use. Examples of secondary market research methods include
studies carried out by researchers or financial data released by companies.
10 effective methods to do market research
The methods in this list cover both areas. Which ones you want to use will
depend on your goals. Have a browse through and see what fits
.
1. Focus groups
It’s a simple concept but one that can be hard to put into practice.

You bring together a group of individuals into a room, record their

discussions, and ask them questions about various topics you are
researching. For some, it’ll be new product ideas. For others, it might be
views on a political candidate.

From these discussions, the organizer will try to pull out some insights or
use them to judge the wider society’s view on something. The participants
will generally be chosen based on certain criteria, such as demographics,
interests, or occupations.

A focus group’s strength is in the natural conversation and discussion that

can take place between participants (if they’re done right).

Compared to a questionnaire or survey with a rigid set of questions, a focus

group can go off on tangents the organizer could not have predicted (and
therefore not planned questions for). This can be good in that unexpected
topics can arise; or bad if the aims of the research are to answer a very
particular set of questions.

The nature of the discussion is important to recognize as a potential factor

that skews the resulting data. Focus groups can encourage participants to
talk about things they might not have otherwise, and others might impact
the group. This can also affect unstructured one-on-one interviews.
2. Surveys
In survey research, survey questions are given to respondents (in person,
over the phone, by email, or via an online form). Questions can be close-
ended or open-ended. As far as close-ended questions go, there are many
different types:

• Dichotomous (two choices, such as ‘yes’ or ‘no’)

• Multiple choice
• Checkbox
• Rating scale
• Likert scale (common version is five options between ‘strongly agree’
and ‘strongly disagree’)
 • Matrix (options presented on a grid)
• Demographic (asking for information such as gender, age, or
occupation)

Surveys are massively versatile because of the range of question formats.

Knowing how to mix and match them to get what you need takes
consideration and thought. Different questions need the right setup.

It’s also about how you ask. Good questions lead to good analysis. Writing
clear, concise questions that abstain from vague expressions and don’t
lead respondents down a certain path can help your results reflect the true
colors of respondents.

There are a ton of different ways to conduct surveys as well, from creating
your own from scratch or using tools that do lots of the heavy lifting for you.
3. Consumer research with social media listening
Social media has reached a point where it is seamlessly integrated into our
lives. And because it is a digital extension of ourselves, people freely
express their opinions, thoughts, and hot takes on social media.

Because people share so much content on social media and the sharing is
so instant, social media is a treasure trove for market research. There is
plenty of data to monitor, tap into, and dissect.

By using a social listening tool, like Consumer Research, researchers can

identify topics of interest and then analyze relevant social posts. For
example, they can track brand mentions and what consumers are saying
about the products owned by that brand. These are real-world consumer
research examples.
Social media listening democratizes insights, and is especially useful for
market research because of the vast amount of unfiltered information
available. Because it’s unprompted, you can be fairly sure that what’s
shared is an accurate account of what the person really cares about and
thinks (as opposed to them being given a subject to dwell on in the
presence of a researcher).
4. Interviews
In interviews, the interviewer speaks directly with the respondent. This type
of market research method is more personal, allowing for communication
and clarification, making it good for open-ended questions. Furthermore,
interviews enable the interviewer to go beyond surface-level responses and
investigate deeper.

However, the drawback is that interviews can be time-intensive and costly.

Those who opt for this method will need to figure out how to allocate their
resources effectively. You also need to be careful with leading or poor
questions that lead to useless results.
5. Experiments and field trials
Field experiments are conducted in the participants’ environment. They rely
on the independent variable and the dependent variable – the researcher
controls the independent variable in order to test its impact on the
dependent variable. The key here is to establish whether there’s causality.

For example, take Hofling’s experiment that tested obedience, conducted in

a hospital setting. The point was to test if nurses followed authority figures
(doctors) and if the authority figures’ rules violated standards (The
dependent variable being the nurses, the independent variable being a fake
doctor calling up and ordering the nurses to administer treatment.)

According to Simply Psychology, there are key strengths and limitations

to this method.

The assessment reads:

• Strength: Behavior in a field experiment is more likely to reflect real

life because of its natural setting, i.e., higher ecological validity than a
lab experiment.
• Strength: There is less likelihood of demand characteristics affecting
the results, as participants may not know they are being studied. This
occurs when the study is covert.
• Limitation: There is less control over extraneous variables that might
bias the results. This makes it difficult for another researcher to
replicate the study in exactly the same way.
There are also massive ethical implications for these kinds of experiments
and experiments in general (especially if people are unaware of their
involvement). Don’t take this lightly, and be sure to read up on all the
guidelines that apply to the region where you’re based.

6. Observation
Observational market research is a qualitative research method where the
researcher observes their subjects in a natural or controlled environment.
This method is much like being a fly on the wall, but the fly takes notes and
analyzes them later. In observational market research, subjects are likely to
behave naturally, which reveals their true selves.

They are not under much pressure. However, if they’re aware of the
observation, they can act differently.

This type of research applies well to retail, where the researcher can
observe shoppers’ behavior by day of the week, by season, when
discounts are offered, and more. However, observational research can be
time-consuming, and researchers have no control over the environments
they research.
7. Competitive analysis
Competitive analysis is a highly strategic and specific form of market
research in which the researchers analyze their company’s competitors. It
is critical to see how your brand stacks up to rivals.

Competitive analysis starts by defining the product, service, brand, and

market segment. There are different topics to compare your firm with your
competitors. It could be from a marketing perspective: content produced,
SEO structure, PR coverage, and social media presence and engagement.
It can also be from a product perspective: types of offerings, pricing
structure. SWOT analysis is key in assessing strengths, weaknesses,
opportunities, and threats.

We’ve written a whole blog post on this tactic, which you can read here.
8. Public domain data
The internet is a wondrous place. Public data exists for those strapped for
resources or simply seeking to support their research with more data. With
more and more data produced every year, the question about access and
curation becomes increasingly prominent – that’s why researchers and
librarians are keen on open data.

Plenty of different types of open data are useful for market research:
government databases, polling data, “fact tanks” like Pew Research
Center, and more.

Furthermore, APIs grant developers programmatic access to applications.

A lot of this data is free, which is a real bonus.
9. Buy research
Money can’t buy everything, but it can buy research. Subscriptions exist for
those who want to buy relevant industry and research reports. Sites like
Euromonitor, Statista, Mintel, and BCC Research host a litany of reports for
purchase, oftentimes with the option of a single-user license or a
subscription.

This can be a massive time saver, and you’ll have a better idea of what
you’re getting from the very beginning. You’ll also get all your data in a
format that makes sense, saving you effort in cleaning and organizing.
10. Analyze sales data
Sales data is like a puzzle piece that can help reveal the full picture of
market research insights. Essentially, it indicates the results. Paired with
other market research data, sales data helps researchers better
understand actions and consequences. Understanding your customers,
their buying habits, and how they change over time is important.

This research will be limited to customers, and it’s important to keep that in
mind. Nevertheless, the value of this data should not be underestimated. If
you’re not already tracking customer data, there’s no time like the present.

Analyzing target market

Target market analysis decides how your product fits into the real life
marketplace. It’s a key component for recognizing the necessities your
customers desire.
Industry markets are constantly changing based on consumer needs. With
target market analysis, you have the ability to stay ahead of these changes
and the competition.

In order to accurately perform target market analysis, an unbiased

audience and watchful analysis is key. By conducting a survey and looking
at the results with a close eye, you will be able to see how customers
behave and what is important to them. Eventually, this leads to a marketing
plan that will show how your products or services fit into the marketplace.

When you complete target market analysis, you’ll be able to gain the
following benefits:

• Identify important markets

• Refine your ideal customers and buyer personas

• Discover untapped opportunities

• Evaluate the viability of a new product

• Build a tighter, more specific business strategy

Let’s revisit our shoe example:

Our shoe business would benefit from target market analysis by being able
to decide the best location for future stores, an ideal price for the sneakers,
and design advertisements that would catch our consumer’s eye.

Based on our research, we know that placing or targeting stores in

Portland, San Francisco, and San Diego would help draw our consumers
considering they are based in these areas and would prefer to purchase in
the store. We can assume, based on competitive analysis and our
consumers’ income, that a price point between $75-110 is what our
customers would expect to pay.

However, a more thorough analysis can be completed with a target market

survey that would help narrow down the price point and how and what to
place in our advertisements.

Target market survey

Creating and launching a target market survey is a quick and easy way to
get to know your target market. You can gather more details about your
prospective target market which will further define your strategic efforts.

A survey that includes the right questions in the right order can make all the
difference in conducting accurate target market analysis. Begin your target
market survey by including the following:

• Ask consumer behavior questions: Start your survey with consumer

behavior questions that ask about their habits, personality, brand
awareness, and their loyalties. The questions can be specific to your
product or they can be general. For our shoe business, we could ask
questions such as “How often do you run?” Another question could be
“Are you familiar with the following brands...”

• Use disqualifying questions: Use your first consumer behavior question

to weed out respondents who may not fit your target. For example, if
we ask “How often do you run?” and the respondent says “Never,” then
it might be a good idea to end the survey at that moment.

• Keep it simple: Ask basic questions such as age, location, etc. These
background answers will help you further build your ideal personas.
Now that we understand how to complete a target market survey, we can
begin to use the target market information to build our marketing strategy.

Identifying target market

Businesses that can identify their target market have a better

understanding of how to create effective sales and marketing campaigns.
Identifying a target market using strategies such as defining your audience
and tracking data can help you make sure your ideal consumers see your
advertisements and products. Learning the different strategies for
identifying your target market can make this process easier.

Here are six key steps for identifying your target market:

1. Define your offer

The first step to identifying your target market is defining your offer, or what
it is that makes your products or services desirable. This information helps
you more easily determine which types of people might desire your
products. To define your offer, here are some questions to consider:

• What is your primary offer? Defining your primary offer, or your

company’s overall mission with its products and services, helps you
understand the value it can provide to your ideal market. Knowing
everything about your offer allows you to begin to think about who
would want it.
• What problem does it solve? You begin to see the value in your
product when you ask yourself what problem it solves. Creating an
offer that provides a solution to a problem makes it more attractive to
consumers.
• Why is it better than the competition? You can understand your
offer and identify what problem it solves, but being able to genuinely
 answer why it is better than the competition gives you a value
proposition that makes it easier to market.

2. Track data

The easiest way to identify your target market is by tracking data-driven

analytics. Consider these four data collection strategies that collect data to
help you identify your target market:

Website analytics

Using analytics data about your website’s visitors, you can learn who is
visiting your site, how long they spend there and what their buying habits
are. To run a successful web analytics campaign, start by publishing
content to your website that targets specific keywords related to your
product or service. Your target market searches for these terms and finds
your website as a result. Your analytics track these people and collect
information about them. Once you collect enough data, you gain insight into
who searched for your targeted keywords and found your content, which
can clarify your target market.

Point-of-sale analytics

Point-of-sale analytics can vary depending on your business model. For

businesses that sell products online, using point-of-sale analytics tells you
who purchased your products or services. Using a combination of website
and point-of-sale analytics can show the differences between the person
interested in your products and the person who actually spent their money
on your products.

Social media
Tracking data both manually and automatically from social media
platforms can give you a view of the public’s opinion on your business and
offerings. You can search for your company or product name on popular
social platforms to find out what people are writing about you. Besides
being a great way to handle complaints or negative reviews, tracking this
social data can serve as an additional form of understanding and identifying
your target market. When you find your customers on social platforms, you
can look at their public profiles to gain insight into who they are.

Additionally, many social media platforms offer their own built-in analytics
tools. You can use these tools to track views and responses to posts, which
can be particularly useful when launching a new marketing campaign. You
can assess this data to see which types of consumers are interested in
your marketing messages.

Mass marketing campaign

If you don’t yet have much data to analyze from your website’s visitors or
customer base, consider running a mass marketing campaign. A mass
marketing campaign is a form of marketing in which you don’t specifically
target a market and instead leave your campaign open to the entire public.
When you don’t add targeting to your marketing, it allows you to find out
what types of people may have a natural interest in your products or
services. You might find new markets that you hadn’t previously
considered, which you can then now use for your future targeted marketing
efforts.

3. Define your ideal audience

Defining your ideal audience allows you to further clarify your target market,
especially once you have data to inform some of your initial impressions.
Use these five questions to help define your ideal audience:

1. Who: Who do you believe will enjoy your products? Who do you want
to buy your products?
 2. What: What products do you imagine these consumers like to buy
right now? What are your audience’s hobbies, interests and needs?
3. When: When will your audience use your product? When and how
often do they purchase products like yours?
4. Where: Where do your ideal consumers live? Where will they use
your product?
5. Why: Why will your audience buy your product? Why is your offer
better than your competition’s products?

4. Profile your ideal client

Targeting a market occurs when you narrow your audience until you have a
smaller group of people. You might choose to refine your target market into
one group or separate it into multiple categories for different products. To
get more specific about your audience, consider defining your market by
profiling your ideal client using these four types of market segmentation:

Demographic

Use demographic segmentation to profile your ideal client based on factors

such as age, gender, income, marital status and education. Marketing to
50-year-old married men with bachelor’s degrees who make more than
$100,000 a year is different than marketing to 29-year-old single women
with doctoral degrees who make $50,000 per year. Each of these profiles is
its own demographic market.

Psychographic

Use psychographic segmentation to profile your ideal client based on

factors such as personality, interests, attitudes, lifestyle, beliefs and values.
Ask yourself what lifestyle your ideal client has, what they like to do in their
free time, what personality they have and what their attitude on life is. Your
brand’s values can also assist with psychographic segmentation. For
example, if you’ve created a brand identity for your company that
consumers associate with fun and creativity, it's likely your ideal client
embodies these characteristics.

Behavioral

Use behavioral segmentation to profile your ideal client based on factors

such as spending habits and brand interactions. Using the previous
demographic example, a 29-year-old single woman with a doctoral degree
who makes $50,000 per year might still spend more than the 50-year-old
married man with a bachelor’s degree who makes $100,000 at your
company if your products matter more to her. Consider your competitors’
brands and what types of people are interacting with them to get a better
sense of your ideal client’s behavior.

Geographic

Use geographic segmentation to profile your ideal client based on factors

such as country, region, city and neighborhood. Some businesses are
global, while others are local to one city. Being able to target your
marketing efforts using geographic segmentation helps the clients and
customers who matter most see your offer.

5. Conduct interviews

You can further identify your market by conducting interviews with people.
Consider these types of customers when deciding to conduct your
interviews:
 • Former customers: Interviewing former customers is a great way to
research the reasons why they were your customers. Additionally,
you may get a great deal of knowledge by understanding why they
haven’t returned.
• Current customers: Using interviews or polls to understand your
existing customer base can tell you how they feel about your offerings
as well as why they choose to do business with you.
• Ideal customers: If you don’t yet have any customers to interview or
your current customers don’t match with your ideal audience, you
might consider interviewing your ideal customers to get an idea of
who they are and why they have yet to do business with you.

6. Research your competition’s targets

If your company has identified its competitors, it’s a good idea to examine
the market segments that they are targeting. You can gain information
about your competition’s target markets by analyzing their marketing
materials and social media campaigns. The language, channels and
mediums they use can all give you insights into your target’s ideal customer
base.

For example, if you notice your main competitor is placing short, witty and
colorful video advertisements on social media platforms that are popular
among young people, it's possible your competition has identified media-
savvy teenagers as a market segment. You can use this information to
reflect on what value your products offer to this segment and devise your
own marketing strategy to reach them.

Social media marketing

The introduction of social media marketing has introduced a new suite of
benefits. Social media platforms provide a powerful channel for reaching
and engaging with a large audience, which can help increase brand
awareness and recognition.
Engaging with customers through social media channels can help build
stronger relationships and foster customer loyalty. It's often a less
expensive option than traditional advertising methods, making it more
appealing for smaller or start-up businesses.

The nature of social media marketing also has plenty of benefits. Sharing
links to your website or blog on social media can help drive more traffic to
your website and increase the likelihood of conversions. In addition, social
media provides a way to gather feedback from customers in real-time,
allowing for instant interaction and simplicity in communication.

Social media marketing also has the benefit of being broad but also
targeted. Social media can help businesses reach a wider audience and
increase engagement through shares, likes, comments, and other forms of
interaction. This is especially true considering when customers forward
content along to non-customers. On the other hand, social media platforms
offer a range of targeting options, meaning companies can pinpoint
specific demographics, interests, and behaviors, and deliver personalized
content to those audiences.

Competition evaluation

A competitive analysis will help you see your own unique advantages as
well as any potential barriers to growth so you can strengthen your
marketing and business strategies. It also keeps your business proactive
instead of reactive. Many entrepreneurs operate based on preconceived
ideas about their competitors and market landscape, but those ideas may
not be accurate or may be out of date.

“Challenge your assumptions because the data changes all the time,”
Kazim says. “Don’t wait until a competitor launches a new product before
changing your strategy, otherwise you might end up in a reactive position to
market changes. You want to be proactive—and it’s easier to be proactive
if you do this exercise regularly.”

A competitive analysis involves four key steps:

1. Identify your competitors

This sounds straightforward, but in fact there are different kinds of

competitors to consider. They include:

• Direct competitors: These are the businesses that offer similar

products and services and target the same customers in the
geographic area that your business serves.
• Secondary/indirect competitors: These are the businesses that
offer different products and services and target a different clientele,
but are in your same general category (e.g., a winery and a brewery
are secondary competitors because they both sell alcohol).
• Substitute competitors: These are businesses that offer different
products and services but target the same customers in your
geographic area.

“For an in-person business like a nail salon, home nail kits are an example
of substitute competition,” Kazim explains. “During the pandemic, people
got used to doing their nails at home. That likely encroached on a lot of
salons’ business.”

Sometimes it’s not obvious who your competitors are. In those cases,
Kazim recommends using the North American Industry Classification
System (NAICS).

With NAICS, every kind of business in Canada is given a six-digit code—

from toy stores (NAICS 451120) to tax preparation services (NAICS
541213). You can search the NAICS website by keyword to find the code
for your business type. Then you can search for Statistics Canada data
tables related to your NAICS code to find information such as average
company size, operating expenses and employee wages for your industry.
That helps paint a picture of how your business stacks up relative to the
rest of your field.

“Those benchmarks can give you some interesting insights,” says Kazim.
“You might realize you’re not investing as much in marketing as others in
your industry, for example, or your wage costs are way above average.”
2. Gather information about your competitors

Once you’ve identified your competitors, evaluate them in terms of the “four
Ps” of the marketing mix:

• Product: Compare their products to your own, ideally by purchasing

and trying them out yourself. How is the quality? What features do
you like or dislike?
• Pricing: How are their products and services priced? Do their prices
vary for channel partners and customers? What is their discount
policy? Can you estimate their cost structure?
• Place: What is their geographic reach or service area compared to
your business?
• Promotion: What marketing tactics are they using to interact and
engage with their customers? What is their presence on social
media?

The concept of the “four Ps” has evolved since its invention, so be sure to
look at other factors as well, including:

• Positioning: Review their websites, social media, product

documents, brochures and catalogues. Who are their target markets?
What is their unique selling proposition?
• Reputation: What are people saying about your competitors’
products and services online and on social media? How do the
reviews compare to those for your business?
• People: How big is their organization? What is the general profile of
the people they employ?
• Partnerships: Who are their suppliers? How long have they been
working together?

If you’ve never done this exercise before, Kazim recommends spending a

couple of weeks with your sales, marketing and customer service teams to
collect the data and do the research. Then, sit down with your team for a
focused two-hour session to walk through what you’ve found and map out
the results.

In addition to the thorough annual analysis, Kazim says it’s useful to set
aside some time every couple of months to do a quick refresh of the data—
to ensure you’re always staying proactive instead of reactive.
3. Analyze your competitors’ strengths and weaknesses

During the two-hour session with your team, it’s important that you can
easily compare the performance of your competitors with your own. Start
by ranking your competitors in the criteria listed above on a scale from 1 to
10, suggests Kazim, using a simple grid/table like the one below:

Example of a competitive analysis table

Next, prepare a written evaluation of each competitor’s respective strengths

and weaknesses. For example, are they popular because of their location?
Visibility? Quality of their staff? Are their prices too high? Does their
product lack a key feature demanded by customers?

Summarize everything that would make a consumer choose (or not

choose) each competitor.

4. Determine your competitive advantage

With all the information at your fingertips, it’s time to figure out what the
results mean for your business strategy.

“Ask yourself: what are we good at relative to the competition and where do
we want to focus?” says Kazim. “It’s a little bit of a ‘who do you want to be
when you grow up?’ kind of question.”
Analyzing the competitive landscape will help pinpoint your competitive
advantage. It could be a distinctive strength that appeals to your target
market and something you can build your brand image and messaging
around. Or if you see a weakness in the competition, you could lower your
prices and launch new promotions to take advantage of the opportunity.

That said, while it’s important to keep tabs on the competition and improve
your business in response, Kazim says you shouldn’t allow concerns about
what others are doing to fully dictate or dominate your strategy.

Strategy development

Strategic development is a process that organizations use to analyze their

internal and external environments to determine the resources and actions
they require to stay competitive and successful. Setting strategies may help
companies reach their objectives by adjusting their direction in response to
changing conditions. An organization may develop a strategy for some of
the following reasons:

• To review operations by looking at what the organization may focus

on next
• To implement the current strategic direction
• To refine the current strategy
• To build a strategy for the first time

The strategy development process provides a framework to create and

implement a strategy for an organization. Going through a planning process
is important so everyone within the organization can agree on and
understand the strategy. Therefore, it might be a good idea to facilitate a
session or multiple brainstorming meetings to gather information among
multiple stakeholders. The following steps may assist you in developing a
specific strategy relating to a department or unit in a larger organization:
1. Review the current position

The first step sets the foundation for strategic planning by reflecting on how
a company got to its current state. For example, a revenue or profit focus
may relate to introducing new products, finding new distribution channels,
or partnering with other companies. Talk with leaders in the organization,
review customer data for insights, and collect market data to better
understand the company's position in the market.

Gather information about the company's strengths, weaknesses,

opportunities, and threats as a framework for discussion about its current
position. For example, consider areas where the organization is a leader
and others where it may need improvement. Opportunities refer to possible
growth and success areas, while threats often involve discussions about
competitive issues.

2. Set measurable objectives

Once you've identified the company's current position in the market, you
can determine objectives that may help you achieve your goals. Your
objectives typically align with the organization's mission and vision.
Prioritize your objectives by asking questions such as the following:

• Which initiative may have the most impact on achieving our mission
or vision?
• Do we have urgent initiatives that we may prioritize?
• What actions might we take to achieve our goals?
• How might we measure our progress and determine our success?

Make sure your objectives are specific, measurable, achievable, relevant,

and time-bound. Defining these elements helps ensure that you can
achieve what you've planned within a chosen time frame. For example, you
may want the business development team to increase product sales by
10% in 18 months by entering the western provinces as a new market.

3. Develop an action plan

The action planning process in strategy development involves deciding on

the tactics a team may use to achieve its measurable objectives. This step
includes listing the tactics, creating a timeline, assigning responsibility, and
identifying the resources that you require. The action plan is central to
strategy development and may involve the commitment and ideas of many
team members.

Some organizations may develop an action plan as a simple spreadsheet

while others can create a map to visualize their actions. Strategy maps
often include four circles or boxes containing financial, customer, internal
process, and learning and growth perspectives. You can visualize the
connections between these perspectives through the actions you plan to
take to achieve your strategy.

4. Monitor progress and revise

Monitoring the strategy involves communicating the plan and then

maintaining awareness about its strategic direction among employees,
leaders, and other stakeholders. Set up regular reviews with employees
and managers to track progress on the strategy. Each quarter, you can
produce a scorecard to formally evaluate progress against measurable
objectives and then make changes to ensure you achieve the plan.

Business model canvas

A business model is simply a plan describing how a business intends to

make money. It explains who your customer base is and how you deliver
value to them and the related details of financing. And the business model
canvas lets you define these different components on a single page.

The Business Model Canvas is a strategic management tool that lets you
visualize and assess your business idea or concept. It’s a one-page
document containing nine boxes that represent different fundamental
elements of a business.

The business model canvas beats the traditional business plan that spans
across several pages, by offering a much easier way to understand the
different core elements of a business.
The right side of the canvas focuses on the customer or the market
(external factors that are not under your control) while the left side of the
canvas focuses on the business (internal factors that are mostly under your
control). In the middle, you get the value propositions that represent the
exchange of value between your business and your customers.

The business model canvas was originally developed by Alex Osterwalder

and Yves Pigneur and introduced in their book ‘Business Model
Generation’ as a visual framework for planning, developing and testing the
business models of an organization.

Here’s a step-by-step guide on how to create a business canvas model.

Step 1: Gather your team and the required material Bring a team or a
group of people from your company together to collaborate. It is better to
bring in a diverse group to cover all aspects.

While you can create a business model canvas with whiteboards, sticky
notes, and markers, using an online platform like Creately will ensure that
your work can be accessed from anywhere, anytime. Create a workspace
in Creately and provide editing/reviewing permission to start.

Step 2: Set the context Clearly define the purpose and the scope of what
you want to map out and visualize in the business model canvas. Narrow
down the business or idea you want to analyze with the team and its
context.

Step 3: Draw the canvas Divide the workspace into nine equal sections to
represent the nine building blocks of the business model canvas.
Step 4: Identify the key building blocks Label each section as customer
segment, value proposition, channels, customer relationships, revenue
streams, key resources, key activities, and cost structure.

Step 5: Fill in the canvas Work with your team to fill in each section of the
canvas with relevant information. You can use data, keywords, diagrams,
and more to represent ideas and concepts.

Step 6: Analyze and iterate Once your team has filled in the business
model canvas, analyze the relationships to identify strengths, weaknesses,
opportunities, and challenges. Discuss improvements and make
adjustments as necessary.

Step 7: Finalize Finalize and use the model as a visual reference to

communicate and align your business model with stakeholders. You can
also use the model to make informed and strategic decisions and guide
your business.

Lean canvas
The Lean Canvas is defined as an adaptation of the traditional business
model canvas that is optimized to consolidate a plan focused on
maximizing user value. By deconstructing traditional business plans into
their most important assumptions & values, the Lean Canvas takes a
direct approach to diagram a business idea.

The Lean Canvas is an adaptation of the business model canvas that is

optimized for the “lean startup methodology”, a technique that is crucial
in understanding the possibilities of the Lean Canvas.

The Lean Canvas typically consists of nine key elements:

1. Problem: This section outlines the specific problem or pain point that
your product or service aims to solve.
2. Solution: Describe how your product or service addresses the
identified problem. This is usually a brief description of the value
proposition.

3. Key Metrics: Identify the key performance indicators (KPIs) you will
use to track your business’s success.

4. Unique Value Proposition (UVP): Clearly states what makes your

product or service unique and why it’s better than existing alternatives.

5. Channels: Outline the marketing and distribution channels you plan to

use to reach your target customers.

6. Customer Segments: Defines the specific groups or types of

customers your business is targeting.

7. Cost Structure: Lists the main costs associated with running your
business.

8. Revenue Streams: Describes how your business will make money,

including pricing strategies and revenue sources.

9. Unfair Advantage: Identifies any advantages or unique factors that

give your business a competitive edge.

Activity Map

Adobe Analytics Activity Map is a feature within Adobe Analytics that

provides a visual representation of user engagement on web pages and
mobile apps. It enables marketers and analysts to track and analyze user
interactions such as clicks, hovers, and scrolling behavior. Activity Map
generates heat maps and overlay reports that illustrate the popularity and
effectiveness of various elements on a webpage, helping organizations
optimize their digital experiences and drive higher conversions.

• Website Optimization: Activity Map helps businesses optimize their

websites by identifying underperforming elements, improving
navigation, and enhancing the overall user experience. By analyzing
user interactions, organizations can make data-driven decisions to
 streamline user flows, simplify forms, or adjust content placement for
maximum impact.
• Conversion Rate Optimization (CRO): By visualizing user
engagement and analyzing click-through rates, Activity Map plays a
crucial role in CRO efforts. Businesses can identify barriers to
conversion and experiment with different design variations to optimize
conversion funnels, landing pages, and checkout processes.
• A/B Testing: Activity Map can be combined with A/B testing to
measure the impact of design or content changes. By comparing
engagement metrics between different versions of a webpage,
organizations can determine which variations lead to higher user
engagement, conversion rates, or revenue.
• Mobile App Optimization: Adobe Analytics Activity Map is not limited
to websites; it also extends its functionality to mobile applications.
Businesses can gain insights into user interactions within apps,
allowing them to improve usability, enhance navigation, and refine
features for a seamless mobile experience.

• Visualization of User Engagement: Activity Map offers a dynamic

visual representation of user behavior, enabling businesses to see
exactly where users are clicking, hovering, and scrolling on their
websites. This visual data makes it easier to identify patterns, trends,
and areas of interest, empowering organizations to make informed
decisions about design, content placement, and user flow.

• Heat maps: Activity Map generates heat maps that display the most
clicked or interacted areas of a webpage. Heat maps use color-
coding to represent the level of engagement, allowing businesses to
identify hotspots and prioritize attention to high-impact areas. This
information can be invaluable for optimizing call-to-action buttons,
links, forms, or any other interactive elements.

• Overlay Reports: Overlay reports in Activity Map provide detailed

click metrics for specific elements on a webpage. By understanding
the click-through rates and engagement levels of individual elements,
organizations can fine-tune their design and content strategies to
enhance user experiences and achieve desired outcomes.
 • Segment Analysis: Adobe Analytics Activity Map allows businesses to
analyze user behavior based on different segments, such as traffic
sources, demographics, or user personas. By segmenting the data,
organizations can uncover valuable insights into specific user groups,
enabling personalized experiences and targeted marketing strategies.

Business plan

Any new business should have a business plan in place prior to beginning
operations. In fact, banks and venture capital firms often want to see a
business plan before they'll consider making a loan or providing capital to
new businesses.

Even if a business isn't looking to raise additional money, a business plan

can help it focus on its goals. A 2017 Harvard Business Review article
reported that, "Entrepreneurs who write formal plans are 16% more likely
to achieve viability than the otherwise identical non planning
entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to

reflect any goals that have been achieved or that may have changed. An
established business that has decided to move in a new direction might
create an entirely new business plan for itself.

he length of a business plan can vary greatly from business to business.

Regardless, it's best to fit the basic information into a 15- to 25-page
document. Other crucial elements that take up a lot of space—such as
applications for patents—can be referenced in the main document and
attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and

includes its mission statement along with relevant information about
the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the
products and services it offers or plans to introduce. That might
include details on pricing, product lifespan, and unique benefits to
the consumer. Other factors that could go into this section include
production and manufacturing processes, any relevant patents the
 company may have, as well as proprietary technology. Information
about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the
current state of its industry and the existing competition. This section
should explain where the company fits in, what types of customers it
plans to target, and how easy or difficult it may be to take market
share from incumbents.
• Marketing strategy: This section can describe how the company
plans to attract and keep customers, including any anticipated
advertising and marketing campaigns. It should also describe
the distribution channel or channels it will use to get its products or
services to consumers.
• Financial plans and projections: Established businesses can
include financial statements, balance sheets, and other relevant
financial information. New businesses can provide financial targets
and estimates for the first few years. Your plan might also include
any funding requests you're making.

Business plans can take many forms, but they are sometimes divided into
two basic categories: traditional and lean startup. According to the
U.S. Small Business Administration (SBA), the traditional business plan is
the more common of the two.

• Traditional business plans: These plans tend to be much longer

than lean startup plans and contain considerably more detail. As a
result they require more work on the part of the business, but they
can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans: These use an abbreviated structure
that highlights key elements. These business plans are short—as
short as one page—and provide only the most basic detail. If a
company wants to use this kind of plan, it should be prepared to
provide more detail if an investor or a lender requests it.

Risk Analysis

The term risk analysis refers to the assessment process that identifies the
potential for any adverse events that may negatively affect organizations
and the environment. Risk analysis is commonly performed by
corporations (banks, construction groups, health care, etc.), governments,
and nonprofits. Conducting a risk analysis can help organizations
determine whether they should undertake a project or approve a financial
application, and what actions they may need to take to protect their
interests. This type of analysis facilitates a balance between risks and risk
reduction. Risk analysts often work in with forecasting professionals to
minimize future negative unforeseen effects.

How to Perform a Risk Analysis

Though there are different types of risk analysis, many have overlapping
steps and objectives. Each company may also choose to add or change
the steps below, but these six steps outline the most common process of
performing a risk analysis.

Step #1: Identify Risks

The first step in many types of risk analysis to is to make a list of potential
risks you may encounter. These may be internal threats that arise from
within a company, though most risks will be external that occur from
outside forces. It is important to incorporate many different members of a
company for this brainstorming session as different departments may have
different perspectives and inputs.

A company may have already addressed the major risks of the company
through a SWOT analysis. Although a SWOT analysis may prove to be a
launching point for further discussion, risk analysis often addresses a
specific question while SWOT analysis are often broader. Some risks may
be listed on both, but a risk analysis should be more specific when trying to
address a specific problem.

Step #2: Identify Uncertainty

The primary concern of risk analysis is to identify troublesome areas for a

company. Most often, the riskiest aspects may be the areas that are
undefined. Therefore, a critical aspect of risk analysis is to understand how
each potential risk has uncertainty and to quantify the range of risk that
uncertainty may hold.

Consider the example of a product recall of defective products after they

have been shipped. A company may not know how many units were
defective, so it may project different scenarios where either a partial or full
product recall is performed. The company may also run various scenarios
on how to resolve the issue with customers (i.e. a low, medium, or high
engagement solution.

Step #3: Estimate Impact

Most often, the goal of a risk analysis is to better understand how risk will
financially impact a company. This is usually calculated as the risk value,
which is the probability of an event happening multiplied by the cost of the
event.

For example, in the example above, the company may assess that there is
a 1% chance a product defection occurs. If the event were to occur, it
would cost the company $100 million. In this example, the risk value of the
defective product would be assigned $1 million.

The important piece to remember here is management's ability to prioritize

avoiding potentially devastating results. For example, if the company
above only yielded $40 million of sales each year, a single defect product
that could ruin brand image and customer trust may put the company out
of business. Even though this example led to a risk value of only $1
million, the company may choose to prioritize addressing this due to the
higher stakes nature of the risk.

Step #4: Build Analysis Models

The inputs from above are often fed into an analysis model. The analysis
model will take all available pieces of data and information, and the model
will attempt to yield different outcomes, probabilities, and financial
projections of what may occur. In more advanced situations, scenario
analysis or simulations can determine an average outcome value that can
be used to quantify the average instance of an event occurring.

Step #5: Analyze Results

With the model run and the data available to be reviewed, it's time to
analyze the results. Management often takes the information and
determines the best course of action by comparing the likelihood of risk,
projected financial impact, and model simulations. Management may also
request to see different scenarios run for different risks based on different
variables or inputs.

Step #6: Implement Solutions

After management has digested the information, it is time to put a plan in

action. Sometimes, the plan is to do nothing; in risk acceptance strategies,
a company has decided it will not change course as it makes most
financial sense to simply live with the risk of something happening and
dealing with it after it occurs. In other cases, management may want to
reduce or eliminate the risk.

Development of MSME innovation cluster for local economic

development – ODOI program

India’s rebound from the Covid-induced economic setback will be led by its
micro, small, and medium enterprises (MSMEs). Policymakers—particularly at
the state level—must redouble efforts to create a supportive regulatory
regime to unlock the promise of MSMEs. A well-crafted Cluster Development
Policy can provide such an impetus. It will equip these enterprises to rise to
the changing demands of the global and domestic markets and ensure
sustainable recovery in the face of future economic shocks.
Clustering is a grouping of enterprises providing similar or related products
and services. In India, MSME clusters have evolved naturally over time.
However, in 2006, the Government of India (GoI) formulated the cluster
development policy by subsuming all other existing policies to bring all
clusters under its ambit. Since then, the number of such clusters has
gradually increased. The renewed government focus on clusters is reflected
in the MSME ministry’s recently revised cluster development programme,
which has expanded the focus on common facility centers (CFCs) and
infrastructure development (IDs) projects. Also critical is the increased focus
on technology centers as apex institutions to support cluster integration and
skill development.
This suggests that if MSMEs are growth engines, clusters are the oiling
mechanism that propels this engine forward. It allows small businesses to
become more competitive by achieving economies of scale through the
collectivization of resources which assists in increased productivity for
cluster members. Such pooled resources and logistics support also enhance
product innovation and skilled resources’ availability. While the government
recognizes the need to develop these clusters further and harness their full
potential, there lie certain challenges in the current framework. To name a
few:-
* The inability of the current policy to distinguish and target the
manufacturing and service sectors separately basis their requirement.
* Absence of a suitable monitoring mechanism to ensure that the established
clusters are operating at full capacity. Currently, the monitoring mechanism
is limited to the complete construction of CFCs & IDs.
* More focus on hard interventions over soft interventions for cluster
development and non-integration of clusters with key drivers like
transportation services, network providers, and financial institutions as part
of common facilities.
* Marginal groups are left outside the ambit of the cluster policy.
Whereas challenges like trust deficit between cluster players require local
mediation, the remaining can be addressed through suitable policy
interventions. Globally, clustering has proved to be an effective strategy in
developing this sector and leveraging regional specializations for cluster
formation. For example, in Brazil, there is a focus on cluster formation basis
natural resource availability, whereas Italy focuses on regional specialization.
India has also adopted the strategy of capitalizing on local resources and
regional specialization, as seen in the “One Station, One Product” scheme
announced recently in Budget’2022. The scheme’s aim to promote one local
product from each stop of the Indian Railways will provide an enabling
ecosystem by creating a single platform for these products in terms of
marketing and supply chain logistics. This scheme is in line with the “One
District, One Product” scheme announced initially by the Uttar Pradesh
government. It is essentially a mini-clustering initiative to deploy local
resources and local employment for the development of the district. Through
this scheme, the district can attract capital investments, subsidies, credit-
linked grants, initial seed funding and get support for branding, marketing,
and training. These government initiatives signal the rising acceptance that
the clustering of these small firms helps realize gains not just for the sector
but also for the entire geography.
These gains can become substantial through a slew of targeted policy
interventions, primary of which is complete mapping of existing clusters.
This will help identify the sick clusters for revival and also help decide regions
for the promotion of induced and newer clusters. For small business clusters
to thrive, two aspects are key:
* Increased production levels, and
* Quality of end products in line with international standards.
This will help the enterprises to successfully place their products and
services in the global value chains, which can be made possible only through
suitable monitoring, quality and benchmarking mechanisms. The central
policy also needs to be complemented by an effective state policy as the
states are more conversed with the nuances of the diversity in these small
industries.
Strengthening our domestic industries will make India self-reliant and make
the vision of an “Atma Nirbhar Bharat” come true. In this context, the spotlight
on developing clusters for pioneering our small businesses gains further
significance and relevance. With the required and renewed nudge of policy
support, small business clusters will essentially leverage the collective might
of these MSMEs.
Source: Silicon India

Knowledge management model of community business : Thai OTOP

model

Thailand’s One Tambon One Product (OTOP) branded handicraft and food
export program is expected in 2016 to reach nearly US$3 billion, with
products coming from approximately 6,000, five-star-ranked community-
based and small–medium enterprises countrywide. This study therefore
examined influences of perceived quality, perceived price, trust, and
satisfaction on enterprise export performance using the OTOP product
brand. Structural equation modeling used LISREL Version 9.1 to conduct a
confirmatory factor analysis and test the hypothesized interrelationships on
the variables’ effect on export performance. The vast majority of the
entrepreneurs selected by simple random sampling either owned or worked
in groups that had 50 or fewer employees, which represented 472 of the
survey’s 500 respondents, or 94.4%. Additional results indicated a high and
positive correlation between perceived quality, perceived price, trust and
satisfaction, and export performance, with the most significant factor
affecting export performance being customer satisfaction. In addition,
perceived quality also has a positive and direct effect on trust as well as on
the exporter’s customer satisfaction. Perceived price plays a role as well
and has a direct and positive impact on both customer satisfaction and a
customer’s trust of the exporter. Perceived quality also affects export
performance in a direct and positive way with trust having a direct and
positive impact on satisfaction.

Community led local resource oriented business model – OITA model

of Japan

Oita Prefecture boasts well-balanced industrial development in various

fields, including iron and steel, oil, chemistry, semiconductors, electricity,
automobiles, and precision instruments. In particular, the automobile
manufacturer's entry into Oita in 2004 has created clusters of more than
100 related companies. In recent years, Oita has focused on fostering next-
generation industries by integrating its strengths, such as medical care,
application technologies of electromagnetism, and hot-spring heat.
Also, it serves as the gateway to the east of Kyushu, serving as the base
point for the high-speed transport network covering the entire Kyushu area
and air and ocean routes connecting with the Kansai and Kanto regions.

OVOP model- Chinese and Vietnamese models of SME’s Globalization

Scholars have long studied small- and medium-sized enterprises (SMEs)

and recognize the need for SMEs to postulate strategies to compete and
succeed in the global market. In the current ultra-competitive business
environment, SMEs face several internal and external challenges. In this
introduction to the special issue (SI), we review the theoretical models and
frameworks in this stream of research and outline some research questions
that could be potentially used in future research in this era of globalization.
The six papers selected for inclusion in this SI analyze this field from
different angles, offering interesting overviews on the present situation of
research in the field, as well as relevant new findings and perspectives for
future research.