8/5/2018

Entrepreneurship
To
Digital Entrepreneurship

Dr. S. K. Majumdar

• Entrepreneurship is the Process of

Designing, Launching and Running a
New Business, which is often initially
a small business.
• Entrepreneurship has been described
as the "capacity and willingness to
develop, organize and manage a
business venture along with any of its
risks in order to make a profit".
- Business Dictionary

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• An Entrepreneur has to have

the ability to find and act upon
opportunities to translate
inventions or technology into
Commercially viable New
Products/ Services.

Adapted from: Audretsch; et al. (2002). "The Economics of Science and Technology". The Journal
of Technology Transfer. 27 (2): 157. doi:10.1023/A:1014382532639

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Questions are:
1. How to Create New
Goods & Services?

2. What would be the USP

of the Business?

3. Who will Pay for the

Goods & Services and
Why and How Much?

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Zest 2 Zoom
• Ideas are • Question
Worthless Deeply;
Without a Analyze
Plan Critically

Idea Analysis

Success Act

• Earn $$$ and • Effective &

Learn Productive
Lessons for Action for
Next Cycle Execution

Source: Dr. S. K. Majumdar

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No Set Formula,
Except the “Blue Seed”

• Passion
• Perseverance
• Patience
• Zen Thinking
Source: Dr. S. K. Majumdar

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Zen Thinking
Critical & Creative Thinking Constructive & Design Thinking

As IS Will Be
Why ?
How?
What?
What For? Business Plan
The Blue Print of
When?
the Business
For Whom? Most Desired
Where? Business What?
How Much? Design How?
(Synthesis)
Why?
Source: Dr. S. K. Majumdar

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Creativity to Entrepreneurship
Critical & Creative Thinking Constructive & Design Thinking

Doing New Things

= Innovation

As IS Will Be
Why ?
How?
What?
What For? Business Plan
The Blue Print of
When?
the Business
For Whom? Most Desired
Where? New Design What?
(Synthesis)
How Much? How?
Why?
Thinking New Creating Value in Marketplace
Things = Creativity = Entrepreneurship
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Drivers of Market Economy

Market Compels Service

and Process Technologies
Competition Providers to Cut and Business
Costs and Improve Processes
Processes

Consumer and Technologies

Users Select Provide
Products and Avenues to Cut
Services that Offer Costs and
Convenience and Consumers Improve
Value and Users Processes

Source: Dr. S. K. Majumdar

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Drivers and Enables of Business

Ability to
Create &
Manage New
Products &
Services
Strategic Compelling
Opportunities Customer
for Business Value
Growth

Knowledge
Acquisition
Drivers &
Skill
Enablers Development

Source: Dr. S. K. Majumdar

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Creating Lasting Value

Value Creation Zone

1. True value lies at the

intersection of the three Appropriability
circles
2. Lasting value is difficult to
imitate
3. Lasting value is durable—it
does not depreciate
4. Lasting value is captured Scarcity Demand
by the resource owner
5. Lasting value requires your
resource to be better than
competitors

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Gap Analysis Find The Gap

Fill The Gap

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Impact of ICT on Business*

Transformation of Traditional Business to eBusiness
and Calls for Change / Shift Strategies

Customer “pull” focus

BRAND CAPITALISM
Sales”push” focus

Production focus
HUMAN CAPITALISM
Customer focus

High (wip, finished goods)

WORKING CAPITAL
Low (direct fulfillment)
High (own production)

PHYSICAL CAPITAL

Low (outsourcing)
Traditional Business eBusiness
OUTSOURCING
NETWORKS

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Identifying the Entrepreneur's

Opportunities

Entrepreneur’s Entrepreneur’s Opportunities in

Resources/Abilities Opportunities the Environment

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Market Forces Industry Structure

Macro Level Market Attractiveness Industry Attractiveness

Mission
Aspiration
Business Ability to Execute
Propensity Proposition the CSFs
for Risk
Micro Level

Connectedness
Across the Value Chain

Target Segment Sustainable Advantage

Business Plan Source: Dr. S. K. Majumdar

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Market Analysis
Contribution Sizing and
5 Cs 5 Ps Analysis Segmentation

• Customer • Product • Unit Contribution • Market Sizing

• Company • Price • Break-Even Volume • Market Share
• Competitors • People • Break-Even Market
• Costs • Place Share
• Collaborators • Promotions • Total Contribution
• Net Profit

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Customer Analysis

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Financial Analysis

• Capex
• Revex
• Revenue
• Risk
• Reward

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Build to Serve, Lean, Fit, Competitive &

Sustainable Management Practices
Identify, Reduce & Eliminate Waste Continually – Across the Value Chain

S C
U U
S
P ADD VALUE T
P Through
Focus on TOTAL Employee
Focus on O
L Quality, Cost Involvement (TEI) Quality, Cost
I & Delivery Continual Process & Delivery M
Improvements
E Zero Defects
E
Application of Lean Tools R
R
S S

TFM TPM TQM TSM THM

TOTAL FLOW TOTAL PRODUTIVE TOTAL QUALITY TOTAL SERVICE TOTAL HUMAN
MANAGEMENT MAINTENANCE MANAGEMENT MANAGEMENT MANAGEMENT

Building World Class Organizations = “TOTAL LEAN MANAGEMENT”

Building Lean Foundations through TOP Management Commitment & 5S

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Cornerstones of Entrepreneurship

UTCR = UTCR ETM ETM =

Understanding Efficient and
of Target Transparent
Customers’ Management*
Requirements Success
* People, Process,
Understanding > =
ROI > TOC
Technology, Money,
Knowing Materials & Markets

GOD = GOD WCE WCE =

Goodness of World Class
Design Execution
Goodness > Correctness TOC = Total Operation Cost

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Why Digital Entrepreneurship?

1. The Digital Revolution is Reshaping the Landscape of
Development: Creating Job and Wealth.
2. Companies that are adapting Digital Technologies are 26%
More Profitable than their Industry Peers. (HBR)
3. Digital Entrepreneurs are the Engines of New Economy.
4. Digital Platforms and Ecosystems are Enabling and
Propelling Innovation and Development of High Quality
Complementary Products and Services.
5. Digital Platforms Provide Global Reach.
6. Velocity, Accuracy and Ubiquity of Digital Platforms Have
Made the Digital Entrepreneurship as the Foreground of
Disruptive Innovation and Development.
7. Bangalore Has Best ICT Infrastructure and Ecosystems for
Innovation, Entrepreneurship and Digital Transformation.

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What is Digital Entrepreneurship?

• Digital entrepreneurship is
development of digitized (data driven)
software solutions (applications) for
the customers of connected world, and
use those applications (App) as
enabler of a service or combination of
many services that the customers are
willing to pay for.
Source: Dr. S. K. Majumdar

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How?
Phases and KR Each Phase of
Digital Entrepreneurship Lifecycle
Three Distinct Phases of Digital The key Responsibility (KR) of the
Entrepreneurship Lifecycle 3 Phases are:

1. Process Innovation, 1. Innovation,

2. Business Development and 2. Orchestration and

3. Enterprise Building 3. Value-optimization

Orchestration is to plan and organize something carefully and secretly in

order to achieve a desired result

Value optimization is Maximization of Stakeholders’ Value and Minimization of Waste

Source: Dr. S. K. Majumdar
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Lifecycle Model of Digital Entrepreneurship

Driving
Innovation

Design
Thinking
Prototype

Market
Entry

Growth
Service

Business M o d e l

Rivalry
Development

Development

Business Realigning Vibrant

Building
Digital Customer Customer Model
STAR TEAM with Digital
Discovery Winning
Platform Actuatio
Teams Growth Enterprise
Product/

n Strategy
Fight

Sustain

Pivoting
Fuzzy Front
End of Design Digital Process
S = Strategic T = Task, Talents and Executive Leadership
T = Transformational E = Engagement and Exploration
A = Agile, and A = Alignment and Accountability
R = Responsive M = Measurement and Management

Innovation to Orchestration to Value Optimization

Source: Dr. S. K. Majumdar

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Important MAP Features

GCC = Growth, Complexity & Connectivity General Market Condition (GCC):
TOTC = Traits of Target Customers •Limit to 2-3 most important
PCD = Process Characters &
Product Durability Industry (KSF):
•Limit to 2-3 most important

Market
Competition (5 Forces & its Scale) +
Opportunities (Unmet Demand/ Growth Potentials):
•Limit to 3-4 most important

External Customers TOTC (Wants & Needs + Desires + Concerns):

•Limit to 2-3 most important

Product
What is Really The PCD + CUS+ USP of the Product
Important? •Limit to 3-4 most important
(Actor’s Value
Proposition for
Customers)
TWOS + Competitive Advantage of the company:
Internal •Limit to 3-4 most important
Actor

CSU = Class, Utility, Sensitivity Capabilities + Resources + Constraints (CRC) of the company:
USP = Unique selling Proposition •Limit to 3-4 most important
CFM = Critical Function Metrics

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Define Problem Type

Marketing
Group the Problem(s)

ICT Performance
Single or Multiple

Measures
HR & OB
Market Share
Strategy
Profitability
Finance
Operational
Operations Efficiency

Project Management
Source: Dr. S. K. Majumdar

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MECE Issue Tree

(MECE = Mutually Exclusive, Collectively Exhaustive)
Example: The Parts that make up
PROFITABILITY of a Project

Price
Do any of
Mutually
Exclusive
the point Revenue
overlap?
Quality
MECE
Variable
Profit Cost
Per Unit
Have all
Collectively options Variable
Exhaustive been
covered? Cost Quantity

Fixed

Issues Across the Branches of the Issue Tree should be MECE

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Review, Revisit and

Find The Gap; Fill The Gap

Use… Plan…
Results… Develop
To improve
Processes and The Action Plan
And Goal
Practices Assessment Measuring
Matrix
Cycle
Provides
Assess… Feedback for Implement…
Provide
Achievement
against those
Continuous Opportunities for
goals or Improvement to achieve
those goals
outcomes

Source: Dr. S. K. Majumdar

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Be Aware of the 4
Barriers of Improvement

• Amnesia
• Fantasia
• Inertia
• Nostalgia
-- Shulman

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Thank You

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