INSTITUTE- University School of Business

DEPARTMENT- Management
Course Name: Innovation and Entrepreneurship
Course Code: 23BAT-604
MSC Name – Bikram Paul Singh
Designation- Assistant Professor
Chandigarh University

Unit 1- Lecture 1.3.3 DISCOVER . LEARN . EMPOWER

Bikram Paul Singh - Assistant Professor- USB.
Innovation and Entrepreneurship
Course Outcome:
CO Title Level
Number
CO1 To have an understanding of Understand
innovation, entrepreneurship, and
analytical skills to intuitive thinking and
entrepreneurial opportunity
identification. Will be covered in this
lecture
CO2 To get the know-how of successive Understand
planning, its validation, and solutions
to business problems arising
thereof.
CO3 To analyze the feasibility of economic, Understand
marketing, financial, and technological
aspects to ascertain
business viability.
CO4 To evaluate business models for new Understand
ventures and able to frame strategies
Bikram Paul Singh - Assistant Professor- USB.
relating to the success of a
 Creating and
Recognizing New
Opportunities

Bikram Paul Singh - Assistant Professor- USB.

•“Entrepreneurs see trends where others just see data; they
connect dots when others just see dots. This ability to
consistently recognize and seize opportunity does not
develop overnight. It takes deliberate practice.”
• —Dan Cohen, entrepreneur and educator

Bikram Paul Singh - Assistant Professor- USB.

THE ENTREPRENEURIAL MINDSET AND
OPPORTUNITY RECOGNITION
• Entrepreneurship is all about openness to new ideas, new
opportunities, and new ways of acting on them.
• Indeed, this is demonstrated time and again by countless
entrepreneurs’ stories, regard- less of the diversity of their
industries, whether for-profit or nonprofit, whether a startup or
within an existing corporation.

Bikram Paul Singh - Assistant Professor- USB.

What Is an Opportunity?

• There are many definitions of opportunity, but most include references to three central
characteristics: potential economic value, novelty or newness, and perceived desirability.1 We define
opportunity as a way of generating value through unique, novel, or desir- able products, services,
and even processes that have not been previously exploited in a particular context. Jazmine Valencia
is a good example of an entrepreneur who found an opportunity to provide personalized services for
musicians. For an opportunity to be viable, the idea must have the capacity to generate value.
• Value can take many forms. The most common form of value is economic value: the capacity to
generate profit. Two other forms of value—social value and environmental value—are less
understood but equally important. An opportunity has social value if it helps to address a social need
or creates social good. Environmental value exists if the opportunity protects or preserves the
environment. We address this further in Chapter 16 on social entrepreneurship. Startup Bios Urn,
headquartered in Spain, created a bio- degradable urn in which to grow trees from human ashes, to
address the environmental problems of a growing population (many people don’t have the land to
bury their loved ones) and the polluting effects of traditional burials.2 All forms of value, however,
are predicated on the assumption that there is a market populated with enough people to buy your
product or service.
Bikram Paul Singh - Assistant Professor- USB.
Idea Classification Matrix

Bikram Paul Singh - Assistant Professor- USB.

Innovation, Invention, Improvement,
or Irrelevant
• Of course, all ideas are not created equal and not all ideas are
venture opportunities. Part of recognizing an opportunity is the
ability to evaluate ideas and identify those with the highest
likelihood of success. One framework for doing this is to rate an idea
on four different dimensions: The idea may be an innovation, an
invention, an improvement, or irrelevant. Of these, innovations and
inventions are high in novelty, while improvements and irrelevant
ideas are low in novelty

Bikram Paul Singh - Assistant Professor- USB.

• A successful idea scores highly as an innovation if the product or
service is novel, useful, and valuable. Today’s smartphone, and the
basic cellular phone of the 1980s, are both good examples of a
product that meets all the requirements of a successful innovation.
• Innovations and inventions are often paired together, but the
difference between them lies in demand. Inventions, by definition,
score highly for novelty, but if an invention does not reach the market
or appeal to consumers, then it will be rendered useless. Inventions
that succeed in finding a market move to the innovation stage.

Bikram Paul Singh - Assistant Professor- USB.

• There are many ideas that focus on improvement of existing products. Take folding
sunglasses, serrated ice cream scoops, or liquid paper, for instance. Each product has been
revisited and improved on. The products may not be high in novelty, but there is still a
strong market for these products, as many people will find them useful to a degree.
• Finally, there are ideas that fall into the irrelevant category, scoring low on both novelty and
usefulness. The food and beverage industry, in particular, has experimented with some
changes over the years that have failed to meet consumer expectations. Pepsi introduced a
morning pick-me-up drink called Pepsi A.M., beverage giant Coors started selling mountain
spring water, and soup company Campbell’s combined soup and a sandwich into one frozen
microwaveable meal—all of these are arguably examples of irrelevant ideas.
• However, it is difficult to fully pigeonhole ideas into neat categories. How can we really
predict whether an idea is inventive, innovative, or irrelevant? Something we perceive as
irrelevant and useless might appeal to someone else. For example, who would have thought
fidget spinners would have been in such high demand?
Bikram Paul Singh - Assistant Professor- USB.
OPPORTUNITIES START WITH
THOUSANDS OF IDEAS
• Employ strategies for generating new ideas from which opportunities are
born.

• The way to get good ideas is to get lots of ideas and throw the bad ones away.
Different strategies can be employed and not all will work for you. —Linus
Pauling, Nobel Laureate in Chemistry
• The first step in creating and identifying opportunities is idea generation; the
more ideas we generate, the greater the likelihood we will find a strong
opportunity. At this stage, it’s important to embrace the openness of an
entrepreneurial mindset to consider ideas that might seem impractical,
obvious, wild, or even silly. On the surface, you never know what may turn out
to be a good or bad idea.
Bikram Paul Singh - Assistant Professor- USB.
FROM IDEA GENERATION
TO OPPORTUNITY RECOGNITION

Bikram Paul Singh - Assistant Professor- USB.

• For an opportunity to be viable, the idea must be new or unique or
at least a variation on an existing theme that you are confident
people will accept and adopt.
• It must involve something that people need, desire, find useful, or
find valuable, and it must have the capacity to generate profit. We
cannot credit divine intervention as the source of new ideas, nor is
every idea an opportunity. The best ideas are based on knowledge
and the ability to transform the idea into a viable opportunity.

Bikram Paul Singh - Assistant Professor- USB.

• The journey from idea to opportunity is important to recognize because the
difference between someone who comes up with an idea and an entrepreneur is
that the entrepreneur turns this idea into an actionable opportunity that has the
potential to become a viable business and generate profit.
• The journey from idea to opportunity. Though the goal is recognizing a value
opportunity, the journey starts with lots of ideas—let’s say 100 ideas.
• These ideas can be generated in many ways, potentially through the strategies
we discussed earlier in the chapter. Of those 100 ideas, you need to determine
which ones are the most useful for potential customers.
• Let’s say, then, that the original 100 are narrowed to 25. Of the remaining 25
ideas, you then need to determine which ones can generate economic value,
which is profit. Finally, the entrepreneur is the one who acts on the opportunity.
Bikram Paul Singh - Assistant Professor- USB.
The IDEATE Model for Opportunity Recognition

Bikram Paul Singh - Assistant Professor- USB.

Bikram Paul Singh - Assistant Professor- USB.
• Find pathway: a pathway that assumes that opportunities exist
independent of entrepreneurs and are waiting to be found.
• Search pathway: a pathway used when entrepreneurs are not quite
sure what type of venture they want to start, so they engage in an
active search to discover new opportunities.
• Design pathway: a pathway that can uncover high-value
opportunities because the entrepreneur is focusing on unmet needs
of customers, specifically latent needs

Bikram Paul Singh - Assistant Professor- USB.

The four pathways can be classified as either
a discovery approach or a creation approach

Bikram Paul Singh - Assistant Professor- USB.

What is Entrepreneurial Style?

• Entrepreneurial style refers to transforming or providing shape to an

idea or innovation that can lead to a successful business or
organization. Also, different people can have different ways of
thinking, which means their approaches and attitude towards
transforming an idea or innovation are different.
• Based on this, we can segregate the advantages of entrepreneurship
into seven unique styles of entrepreneurship.

Bikram Paul Singh - Assistant Professor- USB.

Entrepreneurial Styles

• Managers: The managerial style of entrepreneurship refers to working in a startup first over
venturing on their own. Such entrepreneurs can often find themselves stuck in
administrative roles and possibly fail to start something great themselves.
• Wannabes: As the name would suggest, wannabe entrepreneurs are people who want to
get rid of their work-life and make something big in their life. They look to bank their energy
from the advantages of entrepreneurship lessons they have acquired through experience
and research work.
• Survivalists: Survivalists' entrepreneurial style refers to entrepreneurship where people
don't think much about long-term goals and benefits. Instead, they are more focused on
sustaining their daily lives through small entrepreneur ventures such as shop selling
accessories, DIYs, groceries, etc.
• Calculators: Calculator's style of entrepreneurship pays most importance to make money
and profits from their entrepreneurial ideas. While thinking about money is not wrong such
practices often lead to more failure than success.
Bikram Paul Singh - Assistant Professor- USB.
• Opportunists: Opportunistic entrepreneurship style is about making an
entry into an industry or business at a reasonable time where success is
comparatively guaranteed compared to other entrepreneurial styles.
• Innovators: Innovators are the most formidable entrepreneurs as they
can withstand the various tricky situations throughout their
entrepreneurial journey. Also, their attitude is what differentiates them
from most other entrepreneurs.
• Revolutionaries: Revolutionaries refer to a unique style of
entrepreneurship. Such entrepreneurs are more focused on making
worldwide changes, such as addressing the urgent issues at hand—for
example, climate change.
Bikram Paul Singh - Assistant Professor- USB.
• Main Types of Entrepreneurship
• Based on what is entrepreneurial style and several types of it, here is a list of many types
of entrepreneurship

• Small Business Entrepreneurs: Small business entrepreneurs are known for starting
independent enterprises. They have more control over their business and take more than
ordinary risks. Apart from this, small business entrepreneurs have their business limited
to a specific location or area. Restaurants, groceries, and retail shops are some examples
of small business entrepreneurs.

• Investor Entrepreneurs: Investor entrepreneurs are mainly about contributing to other's

businesses financially. They believe in capitalizing on business opportunities and
strategically looking to profit on both short-term and long-term performances.
Bikram Paul Singh - Assistant Professor- USB.
• Technology Entrepreneurs: Technology entrepreneurs use technical knowledge and awareness to apply
and combat entrepreneurial challenges to innovate and solve business-related problems. Since we live
in the digital era, we can tell that every entrepreneur is a technology entrepreneur in some aspects.

• Internal Entrepreneurs: Internal entrepreneurs, otherwise known as intrapreneurs, are self-motivated,

proactive, and innovative employees that thrive on their ability to keep their team motivated all the
time despite back-to-back failures. The intrapreneurs differ from the other entrepreneurs because they
are mainly free from any form of personal investment and rely on fundings from the company they are
working for individually.

• Online Entrepreneurs: Online entrepreneurs have grown in large numbers in recent years. They are
mainly entrepreneurs who run internet-based businesses. Also, online entrepreneurs benefit from the
low-cost investment to set up their business compared to the other types of entrepreneurship.
Besides, online entrepreneurs have the best advantages to quickly shift gears and make changes in
adherence to any change in the market.

Bikram Paul Singh - Assistant Professor- USB.

 Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks

Max. Marks 10 10 12 12 0 4 2 40

Bikram Paul Singh - Assistant Professor- USB. 24

 REFERENCES
Textbooks / Reference Books
• T1-Gupta, R.K. &Lipika, K.L. 2115. Fundamentals of entrepreneurship development & project
management, Himalaya Publishing House. ISBN: 978-9351426844.
• T2-Ivaturi, V.K., Ganesh, M., Mittal, A., Subramanya, S. 2117. The Manual for Indian Start-ups: Tools
to Start and Scale-up Your New Venture, Penguin Random House India. ISBN: 978-0143428527.
• R1-Gordan, E. and Natrajan, K. 2117. Entrepreneurship Development, 6th Edition, Himalaya
Publishing House, ISBN: 978-9352125404.

Bikram Paul Singh - Assistant Professor- USB.

THANK YOU

Bikram Paul Singh - Assistant Professor- USB.