Fivde - Merged

Fundamentals of Innovation and
Venture Development
Module 1
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Introduction to Entrepreneurship
There is tremendous interest in

entrepreneurship in the India and around the
world. Comment your views
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Indications of Increased Interest
in Entrepreneurship
• Books
– Amazon.com lists over 70,000 books dealing with
entrepreneurship and 80,000 focused on small business.
• College Courses
– In 1985, there were about 250 entrepreneurship courses
offered across all colleges in the United States.
– Today, more than 5,000 entrepreneurship courses are
offered in two-year and four-year colleges and universities
in the United States.
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What Entrepreneurs Do?
• Entrepreneurs assemble and then integrate all
the resources needed - the money, the
people, the business model, the strategy - to
transform an invention or an idea into a viable
business.
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https://napkinfinance.com/napkin/entrepreneur-definition/
Evolution of Entrepreneurship
• Video:
https://www.youtube.com/watch?v=hzoGnCd
Qadw
https://www.managementisland.org/course/entrepreneurship/lessons/evolution-of-the-concept-of-entrepreneur/
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The Evolution of Entrepreneurship The word

“entrepreneur‟ is derived from the French verb
“Enterprendre‟. It means “to undertake”. The Business encompasses
Frenchmen who organized and led military manufacturing, transport, trade
expeditions were referred to as
“entrepreneurs”. and all other self employed
vocation in the service sector.
Around 1700 A.D. the term was used for

architects and contractor of public works. Entrepreneurship has been
considered as the propensity of
mind to take calculated risk with
confidence to achieve
In many countries, the term entrepreneur is predetermined business
often associated with a person who starts his objectives.
own new business.
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What is Entrepreneurship?
Academic Definition (Stevenson & Jarillo)

• Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently control.
Venture Capitalist (Fred Wilson)
• Entrepreneurship is the art of turning an idea into a business.
What Entrepreneurs Do
• Entrepreneurs assemble and then integrate all the resources
needed –the money, the people, the business model, the
strategy—needed to transform an invention or an idea into a
viable business.
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Definitions of Entrepreneurship
Schumpeter's Definition ―
The entrepreneur in an advanced economy is an individual who introduce
something new in the economy- a method of production not yet tested by
experience in the branch of manufacturing, a product with which
consumers are not yet familiar, a new source of raw material or of new
markets and the like”.
Drucker’s Views on Entrepreneur

“An entrepreneur is the one who always searches for change, responds to it
and exploits it as an opportunity. Innovation is the specific tool of
entrepreneurs, the means by which they exploit changes as an opportunity
for a different business or different service”
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Why Become an Entrepreneur?
• The three primary reasons that people become

entrepreneurs and start their own firms
Desire to be their own boss
Desire to pursue their

own ideas
Financial rewards
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Characteristics Entrepreneurs
Curiosity
Structured Experimentation
Adaptability
Decisiveness
Team Building
Risk Tolerance
Comfortable with Failure
Persistence
Innovation
Long-Term Focus
https://online.hbs.edu/blog/post/characteristics-of-successful-entrepreneurs
Nature of Entrepreneurship
• Risk Bearing Spirit • It is Based on Principles, Not on
• Ability to Innovate Intuition
• A Lifestyle • Result of Different Changes
• Environment Oriented Activity • Business Oriented Attitude
• Universal Activity • Result Oriented Behaviour
• Motivational Activity • Professional Activity
• Creation of Resource • Process of Personality
• Practice-Based on Knowledge Development and Role
Transformation
• Creative Activity
• It is not a Personality Trait but a
• Management is the Tool of Behaviour
Entrepreneurship
• Equal Essential for all Businesses
and Economics
Types of Entrepreneurs
• Business entrepreneurs are driven by the profit motive. They seek growth and
profits within the business world. They are constant innovators and always trying
to capture larger market shares from a competitive marketplace. They are
pioneering individualists who create one venture after another and one innovation
after another.
• Social entrepreneurs have many of the same personality characteristics as
business entrepreneurs, but they are driven by a mission and seek to find
innovative ways to solve problems that are not being or cannot be addressed by
either the market or the public sector.
• Small-business owners may once have captured an opportunity like an
entrepreneur but then they rest on their laurels because either they or the
opportunity – or both – do not continue to have the attributes that make it
entrepreneurial. The
• Seniorpreneur: is someone who starts a business after the age of 55.
• Copreneur: is someone who works with the entrepreneur, such as the
spouse, an accountant or a supplier.
• Biopreneurs: work in biotechnology, biology and the environment.
• Academicpreneurs : we call them pracademics, such as authors.
• There are cross-cultural entrepreneurs, mediapreneurs, end-poverty
entrepreneurs, transparency-and-fairness entrepreneurs,
• social entrepreneurs, social-privatisation entrepreneurs, world-citizen
entrepreneurs, intrapreneurs,
• knowledge-collaboration entrepreneurs, cultural entrepreneurs and
biodiversity entrepreneurs.
List of Top Entrepreneurs
Team
No Company / Group URL for SBU details
RITESH AGARWAL- OYO
www,oyorooms.com
1 Rooms
BHAVISH AGARWAL- OLA
www,olacabs.com
2 CABS
VIJAY SHEKAR SHARMA-
www,paytm.com
3 PAYTM
DEEPINDER GOYAL-
www,Zomato.com
4 ZOMATO
SACHIN AND BINNY
www,flipcart.com
5 BANSAL- FLIPCART
DEEPAK CALARA- MAKE
www,makemytrip.com
6 MY TRIP
BYJU RAVIEENDRAN-
www,byjus.com
7 BYJU’s
8 HARI MENON- BIG BASKET www,bigbasket.com
ALBINDER DHINDSA-
www,grofers,com
9 GROFERS
SHRADHA SHARMA- YOUR 1-17
www,yourstory.com
10 STORY
Types of Start-Up Firms
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• Salary Substitute Firms – In this • Life Style Firms – These
kind of entrepreneurship, the kinds of firms are created
entrepreneur is seeking to create
a career for themselves. They
when a person wants to
generally want to create a indulge their passion, their
business at which they intend to hobby or their desire for a
work for many years. They may particular lifestyle. –
not intend to sell the business
unless they are planning to retire • Examples might include:
and do not have a family member artists and galleries,
to hand this down to. – custom jewelry makers, pet
services, sporting goods
• Examples include: Restaurants, and services, and others.
convenience stores, dry cleaners,
doctor’s offices, service stations,
etc.
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Entrepreneurial Firms – These kinds • Examples include Facebook,
of firms are generally created by Amazon, Google(Now Alphabet),
individuals that feel that they Instagram.
have a potential business from
which they can profit
handsomely. –
In many cases, the entrepreneur is
planning to start the firm, but
than find a way to sell the firm,
go public, or otherwise profit
from the value that their hard
work has created.
Many of the best known examples
of recent entrepreneurship fall in
this category.
•
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• https://m.dailyhunt.in/news/india/english/yourstory-epaper-
yourstory/how+these+brothers+started+from+scratch+to+build+an+ev+ma
nufacturing+business+in+bhopal+clock+rs+1+3+crore+turnover-newsid-
155834306?ss=fb&s=wi
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Intrapreneurship
Intrapreneurs
So what are they? What are your

ideas?
How do they differ from

entrepreneurs?
Companies who listen to employees are 21% more
profitable than the competition. (Source: Gallup)
Entrepreneur
A dynamic person who gets the right people together to make something
happen.
Someone who knows the right people, can motivate and wants action / results
today.
Characteristics: creative, innovative, enthusiastic, driven, energetic, high need

to achieve, prepared to look outside the box, take and manage risk, good
networkers, exploit their opportunities,
Intrapreneurs
So what are they?
How do they differ from entrepreneurs?
In-tra-pre-neur (InÕtre-pre-nur) n. A person within a large corporation who

takes direct responsibility for turning an idea into a profitable finished
product through assertive risk-taking and innovation
intra(corporate) + (ENTRE)PRENEUR.] -inftrapre-nouri-al adj. -intra-pre-
neuri-al-ism n. -in'trapre-neuri-al-ly adv. (The American Heritage Dictionary,
3rd Edn., 1992)
Intrapreneur is the name given to employees who come up
with their own ideas and then bring those ideas to life with
the assistance and resources offered by their employers.
Intrapreneurs can be found in service industries, creating

innovations that draw customers away from the competition.
Intrapreneurs are found in charities, voluntary activities and

social groups. They work within systems to develop activities,
products and ideas.
Southwest Airlines – Mile high humor
Put the oxygen mask on yourself first, and then place it on your child. If
you're traveling with more than one child, start with the one with the greatest
earning potential.--- Marty
Lego Land
The role of environment or culture
Post-It notes
Toshiba lap tops
Japanese culture- Kaizen

• Teamwork,
• Personal Discipline,
• Improved Morale,
• Quality Circles, And
• Suggestions For Improvement.
Facebook like
The good and bad of intrapreneurial culture
(from Reitz, 1998, Figure 1)
Antithetical traits Behavioural taboos
Untrustworthiness and unreliability Seeking political profits
Risk aversion Staying put, not seeking better opportunities
Arrogance Focusing on self
Hoarding information; being unresponsive to

Intolerance or abuse of others requests
Lying to oneself or others Resignation or complacency
Being lazy, just putting in time Protecting the status quo; resisting change
Rigidity Refusing to cooperate

Businesses need intrapreneurs
Intrapreneurs are the powerhouses within companies
They create new businesses, that keep a company or organisation moving forwards
They motivate colleagues and keep profits up.
Intrapreneurial employees are energetic, enthusiastic, imaginative and inventive.
They have ideas for creating new products or services often working on them in their own time.
They can see how savings can be made.
How processes can be improved.

Importance of Intrapreneurship
It Creates A Perennial Pool Of Ideas
It Facilitates Growth
It Leads To Innovations
Leadership
Change Agents
Helps Identify Highly Productive Problem-Solvers Within The Organisation
It Creates A Sense Of Achievement
Employee Engagement
Motivation and Reward
Financial? Not always the key.
For intrapreneurs and entrepreneurs it is normally a bonus not a driver.
Much motivation come from ‘doing the job more efficiently/safely’ or ‘my way’
or
But bosses need persuading to take on new ideas

Tactics to help a junior intrapreneur to succeed.
(Pinochet and Pelman 1999)
Test ideas casually with friends who can point out basic flaws and ask challenging
questions.
Keep ideas from natural enemies as long as possible to avoid opposition.
Promote ideas modestly and constructively.
Test casually on potential customers to check the project is realisable and profitable.
Accept suggestions gratefully.
Always look to network the idea so it can be thought about from many aspects.
Don’t give up at the first sign of disappointment.

CAUSES FOR RECENT INTEREST IN INTRAPRENEURSHIP
Interest in intrapreneurship has resulted from

events occurring on social, cultural, and business levels.
There is an increasing interest in "doing your own thing."
Intrapreneurship is one method for stimulating and capitalizing on those who think that something
can be done differently and better.
Competitions designed by the companies (shutterstock) has forced employees to focus on new
product development and increased productivity.
INTRAPRENEURIAL LEADERSHIP CHARACTERISTICS
There are certain individual characteristics needed for a

person to be successful Entrepreneurs, including:
1.Understanding the environment
2.Being visionary and flexible
3.Creating management options
4.Encourage teamwork while employing a multi-
disciplined approach
5.Encouraging open discussion
6.Building a coalition of supporters, and persisting
Economic Impact of Entrepreneurial Firms
• Innovation
– Is the process of creating something new, which is central
to the entrepreneurial process.
– Small firms are twice as innovative per employee as large
firms.
• Job Creation
– In the past two decades, economic activity has moved in
the direction of smaller entrepreneurial firms, which may
be due to their unique ability to innovate and focus on
specialized tasks.
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Entrepreneurial Firms’ Impact on Society
and Larger Firms
• Impact on Society
– The innovations of entrepreneurial firms have a dramatic
impact on society.
– Think of all the new products and services that make our
lives easier, enhance our productivity at work, improve our
health, and entertain us in new ways.
• Impact on Larger Firms
– Many entrepreneurial firms have built their entire business
models around producing products and services that help
larger firms become more efficient and effective.
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The Entrepreneurial Process
The Entrepreneurial Process Consists of Four Steps

Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful Business Ideas.
Step 3: Moving from an Idea to an Entrepreneurial firm.
Step 4: Managing and growing the Entrepreneurial firm.
https://sites.fuqua.duke.edu/dukeven/selected-topics/the-entrepreneurial-process/
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Sustainable Entrepreneurship
ENTREPRENEURSHIP AS IF THE PLANET MATTERED -There’s no
avoiding it. Our planet is suffering in many ways, including:
• climate change due to the increase • cutting down the world’s tropical
in greenhouse gases forests, leading to erosion and
• fluorocarbons depleting the ozone flooding
layer • mass extinction of species and the
• acid rain and air pollutants associated loss of genetic
• shortages of freshwater resources resources
• overfishing, habitat destruction • threats to human health from
and pollution in the marine exposures to chemicals in
environment production processes, products
and consumption activities
• crop loss and grazing depletion due
to desertification and erosion • rapid population growth and
migration, burgeoning mega-cities,
and ecological refugees
• What entrepreneurs understand, that others
do not, is the opportunity space.
https://www.su-re.co/post/vision-opportunity-space-and-climate-resilient-pathways-
explained?locale=en
MODULE
2:Opportunity
Recognition &
Feasibility Analysis
Prof. Sakshi
Chhabra
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What is An Opportunity?
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An opportunity is a favorable
Opportunity Defined set of circumstances that
creates a need for a new
product, service or business.
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What is an Opportunity?
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An opportunity has four essential qualities
Three Ways to Identify an Opportunity
First Approach: Observing Trends
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• Observing Trends
– Trends create opportunities for entrepreneurs to pursue.
– The most important trends are:
• Economic forces.
• Social forces.
• Technological advances.
• Political action and regulatory change.
– It’s important to be aware of changes in these areas.
First Approach: Observing Trends
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Trend 1: Economic Forces
Example of Economic Trend

Creating a Favorable Opportunity
Economic trends help
• A weak economy favors
determine areas that are
startups that help consumers
ripe for new startups and
save money.
areas that startups should
• An example is
avoid.
GasBuddy.com,
a company started to help
consumers save money on gas.
Trend 2: Social Forces
Examples of Social Trends

Social trends alter how
people and businesses • Retirement of baby boomers.
behave and set their • The increasing diversity of
priorities. These trends the workplace.
• Increasing interest in health,
provide opportunities for fitness, and wellness.
new businesses to • Emphasis on alternative
accommodate the forms
changes. of energy.
• New forms of music and
other
types of entertainment.
Trend 3: Technological Advances
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Examples of Entire Industries

Advances in technology that Have Been Created as the
frequently create Results of Technological
Advances
business opportunities.
• Computer industry
• Internet
• Biotechnology
• Digital photography
Trend 3: Technological Advances
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Example: H20Audio
Once a technology is
An example is H20Audio, a
created, products often company started by four
emerge to advance it. former San Diego State
University students, that
makes waterproof housings
for the Apple iPod.
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Trend 4: Political Action and Regulatory Changes
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General Example
Political action and Laws to protect the
regulatory changes also environment have created
provide the basis for opportunities for entrepreneurs
opportunities. to start firms that help other
firms comply with
environmental laws and
regulations.
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Trend 4: Political Action and Regulatory Changes
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Specific Example
Company created to help The No Child Left Behind Act

of 2002 requires states to
other companies comply
develop criterion-based
with a specific law. assessments in basic skills to be
periodically given to students in
certain grades. Kim and Jay
Kleeman, two high school
teachers, started Shakespeare
Squared, a company that helps
high schools comply with the
act.
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Second Approach: Solving a Problem
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• Solving a Problem
– Sometimes identifying opportunities simply involves noticing a problem and
finding a way to solve it.
– These problems can be pinpointed through observing trends and through more
simple means, such as intuition, serendipity, or change.
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Second Approach: Solving a Problem
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• A problem facing the U.S. and

other countries is finding
alternatives to fossil fuels.
• A large number of
entrepreneurial firms, like
this wind farm, are being
launched to solve this problem.
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Third Approach: Finding Gaps in the Marketplace
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• Gaps in the Marketplace

– A third approach to identifying opportunities is to find a gap
in the marketplace
– A gap in the marketplace is often created when a product or
service is needed by a specific group of people but doesn’t
represent a large enough market to be of interest to
mainstream retailers or manufacturers.
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Third Approach: Finding Gaps in the Marketplace
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Specific Example
Product gaps in the In 2000 Tish Cirovolv
marketplace represent realized there were no guitars
potentially viable on the market made
business opportunities. specifically for women. To
fill this gap, she started Daisy
Rock Guitars, a company that
makes guitars just for
women.
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Personal Characteristics of the Entrepreneur
Prior Experience Cognitive Factors
Social Networks Creativity
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Prior Experience
• Prior Industry Experience

– Several studies have shown that prior experience in an
industry helps an entrepreneur recognize business
opportunities.
• By working in an industry, an individual may spot a market niche
that is underserved.
• It is also possible that by working in an industry, an individual
builds a network of social contacts who provide insights that lead to
recognizing new opportunities.
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Cognitive Factors
• Cognitive Factors
– Studies have shown that opportunity recognition may be an innate skill or
cognitive process.
– Some people believe that entrepreneurs have a “sixth sense” that allows them
to see opportunities that others miss.
– This “sixth sense” is called entrepreneurial alertness, which is formally defined
as the ability to notice things without engaging in deliberate search.
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Social Networks
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• Social Networks
– The extent and depth of an individual’s social network affects opportunity
recognition.
– People who build a substantial network of social and professional contacts will
be exposed to more opportunities and ideas than people with sparse networks.
– In one survey of 65 start-ups, half the founders reported that they got their
business idea through social contacts.
• Strong Tie Vs. Weak Tie Relationships
– All of us have relationships with other people that are called “ties.” (See next
slide.)
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Social Networks
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• Nature of Strong-Tie Vs. Weak Tie Relationships

– Strong-tie relationship are characterized by frequent interaction and form
between coworkers, friends, and spouses.
– Weak-tie relationships are characterized by infrequent interaction and form
between casual acquaintances.
• Result
– It is more likely that an entrepreneur will get new business ideas through weak-
tie rather than strong-tie relationships. (See next slide.)
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Social Networks
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Why weak-tie relationships lead to more new business

ideas than strong-tie relationships
Strong-Tie Relationships Weak-Tie Relationships
These relationships, which

typically form between like These relationships, which
minded individuals, tend to form between casual
reinforce insights and ideas acquaintances, are not as
that people already have. apt to be between like-
minded individuals, so
one person may say
something to another that
sparks a completely new
idea. 2-22
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Creativity
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• Creativity
– Creativity is the process of generating a novel or useful idea.
– Opportunity recognition may be, at least in part, a creative process.
– For an individual, the creative process can be broken down into five stages, as
shown on the next slide.
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Creativity
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Five-Steps to Generating Creative Ideas
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Full View of the Opportunity Recognition Process
Depicts the connection between an awareness of emerging trends

and the personal characteristics of the entrepreneur
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Techniques For Generating Ideas
Brainstorming Focus Groups
Library and
Internet Research
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Brainstorming
• Brainstorming
– Is a technique used to generate a large number of ideas and solutions to
problems quickly.
– A brainstorming “session” typically involves a group of people, and should be
targeted to a specific topic.
– Rules for a brainstorming session:
• No criticism.
• Freewhelling is encouraged.
• The session should move quickly.
• Leap-frogging is encouraged.
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Focus Groups
• Focus Group
– A focus group is a gathering of five to ten people, who have been selected
based on their common characteristics relative to the issues being discussed.
– These groups are led by a trained moderator, who uses the internal dynamics of
the group environment to gain insight into why people feel they way they do
about a particular issue.
– Although focus groups are used for a variety of purposes, they can be used to
help generate new business ideas.
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Library and Internet Research
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• Library Research
– Libraries are an often underutilized source of information for generating new
business ideas.
– The best approach is to talk to a reference librarian, who can point out useful
resources, such as industry-specific magazines, trade journals, and industry
reports.
– Simply browsing through several issues of a trade journal or an industry report
on a topic can spark new ideas.
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Libraries and Internet Research
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Examples of Useful Search

Large public and Engines and Industry
university libraries Reports
• Lexis-Nexis Academic
typically have access to • ProQuest
search engines and • IBISWorld
industry reports that • Mintel
would cost thousands of • Standard & Poor’s Net
Advantage
dollars to access on your
own.
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Library and Internet Research
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• Internet Research
– If you are starting from scratch, simply typing “new business ideas” into a
search engine will produce links to newspapers and magazine articles about the
“hottest” new business ideas.
– If you have a specific topic in mind, setting up Google or Yahoo! e-mail alerts
will provide you to links to a constant stream of newspaper articles, blog posts,
and news releases about the topic.
– Targeted searches are also useful.
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Other Techniques
• Customer Advisory Boards

– Some companies set up customer advisory boards that meet regularly to discuss
needs, wants, and problems that may lead to new ideas.
• Day-In-The-Life Research
– A type of anthropological research, where the employees of a company spend a
day with a customer.
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Encouraging New Ideas
• Establishing a Focal Point for Ideas

– Some firms meet the challenge of encouraging, collecting, and evaluating ideas
by designating a specific person to screen and track them—for if its
everybody’s job, it may be no one’s responsibility.
– Another approach is to establish an idea bank (or vault), which is a physical or
digital repository for storing ideas.
• Encouraging Creativity at the Firm Level
– Creativity is the raw material that goes into innovation and should be
encouraged at the organizational and individual supervisory level.
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Protecting Ideas From Being Lost or Stolen
• Step 1
– The idea should be put in a tangible form such as entered into a physical idea
logbook or saved on a computer disk, and the date the idea was first thought of
should be entered.
• Step 2
– The idea should be secured. This may seem like an obvious step, but is often
overlooked.
• Step 3
– Avoid making an inadvertent or voluntary disclosure of an idea, in a manner
that forfeits the right to claim exclusive rights to it.
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What Is Feasibility Analysis?
• Feasibility analysis is the

process of determining
whether
a business idea is viable.
Feasibility Analysis • It is the preliminary evaluation
of a business idea, conducted
for the purpose of determining
whether the idea is worth
pursuing.
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When To Conduct a Feasibility Analysis
• Timing of Feasibility Analysis

– The proper time to conduct a feasibility analysis is early in thinking through the
prospects for a new business.
– The thought is to screen ideas before a lot of resources are spent on them.
• Components of a Properly Conducted Feasibility Analysis
– A properly conducted feasibility analysis includes four separate components, as
discussed in the following slides.
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Feasibility Analysis
Role of feasibility analysis in developing business ideas.
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Forms of Feasibility Analysis
Industry/Target Market
Product/Service Feasibility
Feasibility
Organizational Feasibility Financial Feasibility
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Product/Service Feasibility Analysis
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Purpose
• Is an assessment of the overall
Product/Service appeal of the product or service
Feasibility being proposed.
• Before a prospective firm rushes
Analysis
a new product or service into
development, it should be sure
that the product or service is what
prospective customers want.
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Product/Service Feasibility Analysis
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Components of product/service
feasibility analysis
Product/Service Product/Service
Desirability Demand
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Product/Service Desirability
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First, ask the following questions to determine the basic

appeal of the product or service.
• Does it make sense? Is it reasonable? Is it something consumers

will get excited about?
• Does it take advantage of an environmental trend, solve a
problem, or take advantage of a gap in the marketplace?
• Is this a good time to introduce the product or service to the
market?
• Are there any fatal flaws in the product or service’s basic design
or concept?
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• Second, Administer a Concept Test

– A concept statement should be developed.
– A concept statement is a one-page description of a business that is distributed
to people who are asked to provide feedback on the potential of the business
idea.
– The feedback will hopefully provide the entrepreneur:
• A sense of the viability of the product or service idea.
• Suggestions for how the idea can be strengthened or “tweaked” before proceeding further.
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New Venture
Fitness Drink’s
Concept Statement
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Product/Service Demand
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• Product/Service Demand
– There are two steps to assessing product/service demand.
– Step 1: Talking Face-to-Face with Potential Customers.
– Step 2: Using Online Tools, Such as Google AdWords and Landing Pages, To
Assess Demand.
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• Talking Face-to-Face with Potential Customers

– The only way to know if your product or service is what people want is by
talking to them.
– The idea is to gauge customer reaction to the general concept of what you want
to sell, and tweak, revise, and improve on the idea based on the feedback.
– In some cases, talking with potential customers will cause an entrepreneur to
abandon an idea.
• Entrepreneurs are often surprised to find that a product idea they think solves a problem
gets lukewarm reception when they talk to actual customers.
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3 of 4
• Utilizing Online Tools, Such as Google AdWords and Landing Pages,

to Assess Demand
– The second way to assess demand is to utilize online tools to gauge reaction
from potential customers.
– Some entrepreneurs purchase text ads on search engines that show up when a
user is searching for a product that is close to their idea. If the searcher clicks
on the text ad, they are directed to a landing page that describes the idea. There
may be a link on the landing page that says “For future updates please enter
your e-mail address.” Demand for the idea can be assessed by how many
people click on the text ad and enter their e-mail address.
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• Utilizing Online Tools, Such as Google AdWords and Landing Pages,

to Assess Demand (continued)
– A variety of additional online tools are available to help assess the demand for
a new product or service.
– Examples include:
• Sites that provide feedback on business ideas (Foundersuite, Quirky).
• Market Research (CrowdPicker, Google Trends).
• Online Surveys (Survey Monkey, Google Consumer Surveys).
• Q&A Sites (Quora, Stack Overflow).
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Industry/Target Market Feasibility Analysis
1 of 2
Purpose
• Is an assessment of the overall
appeal of the industry and the
Industry/Target Market target market for the proposed
Feasibility Analysis business.
• An industry is a group of firms
producing a similar product or
service.
• A firm’s target market is the
limited portion of the industry it
plans to go after.
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Industry/Target Market Feasibility Analysis
2 of 2
Components of industry/target market

Target Market
Industry Attractiveness
Attractiveness
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1 of 2
• Industry Attractiveness
– Industries vary in terms of their overall attractiveness.
– In general, the most attractive industries have the characteristics depicted on
the next slide.
– Particularly important—the degree to which environmental and business trends
are moving in favor rather than against the industry.
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Characteristics of Attractive Industries

• Are young rather than old.
• Are early rather than late in their life cycle.
• Are fragmented rather than concentrated.
• Are growing rather than shrinking.
• Are selling products and services that customers “must have” rather than
“want to have.”
• Are not crowded.
• Have high rather than low operating margins.
• Are not highly dependent on the historically low price of key raw materials.
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Target Market Attractiveness
• Target Market Attractiveness

– The challenge in identifying an attractive target market is to find a market
that’s large enough for the proposed business but is yet small enough to avoid
attracting larger competitors.
– Assessing the attractiveness of a target market is tougher than assessing the
attractiveness of an entire industry.
– Often, considerable ingenuity must be employed to find information to assess
the attractiveness of a specific target market.
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Organizational Feasibility Analysis
1 of 2
Purpose
• Is conducted to determine
Organizational Feasibility whether a proposed business has
Analysis sufficient management expertise,
organizational competence, and
resources to successfully launch
a business.
• Focuses on non-financial resources.
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Organizational Feasibility Analysis
2 of 2
Components of organizational
Management Prowess Resource Sufficiency
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Management Prowess
• Management Prowess
– A proposed business should candidly evaluate the prowess, or ability, of its
management team to satisfy itself that management has the requisite passion
and expertise to launch the venture.
– Two of the most important factors in this area are:
• The passion that the sole entrepreneur or the founding team has for the business idea.
• The extent to which the sole entrepreneur or the founding team understands the markets in
which the firm will participate.
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Resource Sufficiency
1 of 2
• Resource Sufficiency
– This topic pertains to an assessment of whether an entrepreneur has sufficient
resources to launch the proposed venture.
– To test resource sufficiency, a firm should list the 6 to 12 most critical
nonfinancial resources that will be needed to move the business idea forward
successfully.
• If critical resources are not available in certain areas, it may be impractical to proceed with
the business idea.
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Resource Sufficiency
2 of 2
Examples of nonfinancial resources that may be critical

to the successful launch of a new business
• Affordable office space.
• Lab space, manufacturing space, or space to launch a service business.

• Availability of contract manufacturers or service providers.
• Key management employees (now and in the future).
• Key support personnel (now and in the future).
• Ability to obtain intellectual property protection.
• Ability to form favorable business partnerships.
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Financial Feasibility Analysis
1 of 2
Purpose
• Is the final component of a
Financial Feasibility comprehensive feasibility analysis.
Analysis • A preliminary financial assessment
is sufficient.
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Financial Feasibility Analysis
2 of 2
Components of financial
Total Start-Up Cash Financial Performance of

Needed Similar Businesses
Overall Financial
Attractiveness of the
Proposed Venture
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Total Start-Up Cash Needed
• Total Start-Up Cash Needed

– The first issue refers to the total cash needed to prepare the business to make its
first sale.
– An actual budget should be prepared that lists all the anticipated capital
purchases and operating expenses needed to generate the first $1 in revenues.
– The point of this exercise is to determine if the proposed venture is realistic
given the total start-up cash needed.
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Financial Performance of Similar Businesses
• Financial Performance of Similar Businesses

– Estimate the proposed start-up’s financial performance by comparing it to
similar, already established businesses.
– There are several ways to doing this, all of which involve a little ethical
detective work.
• First, there are many reports available, some for free and some that require a fee, offering
detailed industry trend analysis and reports on thousands of individual firms.
• Second, simple observational research may be needed. For example, the owners of New
Venture Fitness Drinks could estimate their sales by tracking the number of people who
patronize similar restaurants and estimating the average amount each customer spends.
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Overall Financial Attractiveness of the Proposed
Venture
1 of 2
• Overall Financial Attractiveness of the Proposed Investment
– A number of other financial factors are associated with promising business
start-ups.
– In the feasibility analysis stage, the extent to which a business opportunity is
positive relative to each factor is based on an estimate rather than actual
performance.
– The table on the next slide lists the factors that pertain to the overall
attractiveness of the financial feasibility of the business idea.
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Overall Financial Attractiveness of the Proposed Venture
2 of 2
Financial Factors Associated With Promising Business

Opportunities
• Steady and rapid growth in sales during the first 5 to 7 years in a clearly
defined market niche.
• High percentage of recurring revenue—meaning that once a firm wins a
client, the client will provide recurring sources of revenue.
• Ability to forecast income and expenses with a reasonable degree of
certainty.
• Internally generated funds to finance and sustain growth.
• Availability of an exit opportunity for investors to convert equity to cash.
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First Screen
• First Screen
– Shown in Appendix 3.1 is a template for completing a feasibility analysis.
– It’s called “First Screen” because it’s a tool that can be used in the initial pass at
determining the feasibility of a business idea.
– If a business idea cuts muster at this stage, the next step is to complete a
business plan.
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Michael Porter’s Five Forces and Industry Analysis
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THANK YOU ☺
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1–1
Section : IV SEMESTER MBA

Course Facilitator:
Course: Fundamentals of Innovation and Venture Development in
Entrepreneurship
Module 3: Developing Business Plans

Business Models, Value Proposition, Types of Business Plans, Guidelines
for writing effective business plans, Business Model Canvas, Prepare to
Pitch, Launching and Growing your venture, Design Thinking Basics
Dr. Monoo John

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“Learn to Think Like an Entrepreneur”,
1. Think ahead
2. Working across disciplines
3. Develop transferrable skills
4. Meeting people
5. Mentors
6. Be in Charge of Your Own Destiny
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ENTREPRENEURIAL MINDEST = GROWTH MINDSET
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ENTREPRENEURIAL
ORIENTATION
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BUSINESS PLAN
DR.MONOO JOHN
DR. MONOO JOHN CMS BUSINESS SCHOOL
Before Writing A Business Plan
• Know your audience
• Who is your reader
• What is their risk profile (risk/reward analysis)
• Why would they invest in you (synergies)
• Know your forms of funding
• Private equity
• Bank lending/asset securitization
• Alternative funding (JV’s, alliance)
• Government subsidies
• Know your risks

Types of Business Plans

You Must Tell a Compelling Story
• How do you plan to change the world?
• How will you solve the customer’s pain? You Must Move in
• Who are you?
with Your Customer
• What have you done?
• Talk with the customer
• Shadow the customer
• Put the customer on your
development team

You Must Have a Pricing Strategy
• Who’s doing what in your market
and why?
• Don’t compete on price; compete on value
You Must Support What
• Margins are everything
You Claim
• Justify what you’re asking
• Primary and secondary research
• Cite your sources and interrelate
• Don’t rely on one source
• Talk to strangers

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business
model
canvas
27
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Business Model Canvas
• The business model canvas is a great tool to understand a business model in
a straightforward, structured way.
• Using this canvas will lead to insights about the customers, what value
propositions are offered through what channels, and how the business
makes money.
• The Business Model Canvas was created by Alexander Osterwalder, of
Strategyzer.
• The Business Model Canvas (BMC) is a strategic management tool to quickly
and easily define and communicate a business idea or concept.
• It is a one page document which works through the fundamental elements of
a business or product, structuring an idea in a coherent way.
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building
blocks
30
31
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Business Model Canvas UBER
Key partners Key activities Value proposition Customer relationships Customer segments
Traditional vs micro
- Drivers -Remove friction from For drivers: - To drivers & riders: segmentation
- Investors transactions - Income generation safe, secure, fair
- Lobbyists / supporters - Scale beyond critical mass - Flexible work hours -Public: social Drivers:
- Engage the participants - No boss footprint - Demographic
Other partners: - Refine value proposal - Ease of joining -Regulator: compliance, - Socio-economic
-Specialised technology - Analyse data & improve - Low idle times taxation, transparency - Micro-geographic
providers - Issue resolution - Behavioural
- Maps, GPS - Situational
- Payment Key resources For customers/riders: Channels
- Analytics - Fast pick-up Customers/riders:
- Financing driver cars - Network effects - Lower cost - Social media channels - Usage patterns
- Insurances - Data & analytics - Fare estimate - Word of mouth - Type of usage
- many other - Skilled staff - Convenience - Local campaigns - Demographic
- Apps, architecture - Easy transactions - Media - Socio-economic
- Venture capital - Rating system - Apps / app stores - Micro-geographic
- Brand - Comms channels
Cost structure - UberPool driver costs Revenues - Revenue model: transaction fees
- Customer acquisition cost - Legal and settlements - Cost saving to taxis:
- Weighted average cost of - Lobbying - Total booking fares FY 2020: $45b - Asset capital cost
capital - Technology development, R&D -Net revenue Q4 ‘2020: $13b(28% - No license fees
QoQ growth) - Employee entitlements
- Net loss Q4 ‘20: $873m
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Business Model Canvas of “BUTTER CHICKEN “
Key Partners Key Activities Value Propositions Customer Customer Segments
Relationships
Key Resources Channels
Cost Structure Revenue Streams
sanjay@startupcoach.co
For whom are we creating value?
Who are our most important customers?
Mass Market/ Niche Market/ Segmented
Market/ Multi Sided Market
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• What value do we deliver to the customer?
• Which one of our customer’s problems are
we helping to solve? Which customer needs
are we satisfying?
• What bundles of products and services are
we offering to each Customer Segment?
• A Value Proposition creates value for a Customer
Segment through a distinct mix of elements catering
to that segment’s needs. Values may be quantitative
(e.g. price, speed of service) or qualitative (e.g.
design, customer experience).
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• Through which Channels do our Customer Segments want to be reached? How are we reaching them
now?
• How are our Channels integrated? Which ones work best?
• Which ones are most cost-efficient? How are we integrating them with customer routines?
• Channels have five distinct phases. Each channel can cover some or all of these phases. We can distinguish
between direct Channels and indirect ones, as well as between owned Channels andbschool.cms.ac.in
partner Channels.
• What type of relationship does each of our Customer
Segments expect us to establish and maintain with
them?
• Which ones have we established? How costly are they?
• How are they integrated with the rest of our business
model?
• We can distinguish between several categories of
Customer Relationships, which may co-exist in a
company’s relationship with a particular Customer
Segment.
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• For what value are our customers really willing to
pay?
• For what do they currently pay? How are they
currently paying? How would they prefer to pay?
• How much does each Revenue Stream contribute to
overall revenues?
• Asset Sale/ Usage Fee/ Subscription Fee
• Renting/ Lending/Leasing/Licensing
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What Key Resources do our Value
Propositions require?
Our Distribution Channels? Customer
Relationships?
Revenue Streams?
Categories: Physical/ Intellectual/
Human/ Financial
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• What Key Activities do our
Value Propositions require?
• Our Distribution Channels?
Customer Relationships?
Revenue streams?
• Key Activities: Production/
Problem Solving/ Platform/
Network
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• Who are our Key Partners? Who are our
key suppliers?
• Which Key Resources are we acquiring
from partners?
• Which Key Activities do partners
perform?
• Motivation for creating partnerships:
Optimisation and Economies of
Scale/Reduction of Risk and Uncertainty/
Acquisition of particular resources and
activities
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• What are the most important costs
inherent in our business model?
• Which Key Resources are most
expensive?
• Which Key Activities are most expensive?
• Classes of Cost Structure : Cost Driven &
Value Driven
• Cost Structure categories: Fixed Cost/
Variable Cost/ Economies of Scale/
Economies of Scope
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HOW TO PITCH – A Short Guide
https://slidebean.com/blog/startups-what-is-a-pitch-deck-presentation
https://www.youtube.com/watch?time_continue=221&v=SB16xgtFmco&feature=emb
_logo
https://www.youtube.com/watch?v=P9t2I-rSpNg
https://guykawasaki.com/the-only-10-slides-you-need-in-your-pitch/
DESIGN THINKING BASICS
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DESIGN THINKING FOR INNOVATION
FOCUS THEMES
• DESIGN THINKING
• HUMAN CENTERED APPROACH
• DESIGN THINKING KEY ELEMENTS
• HOW DO YOU APPLY DESIGN THINKING?
• WICKED PROBLEMS
• INNOVATION
• DESIGN THINKING PROCESS
• STANFORD DESIGN THINKING TEMPLATE –
EMPATHISE/DEFINE/IDEATE/PROTOTYPE/TEST
• EMPATHY
• GROWTH MINDSET VS. FIXED MINDSET
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1
What actually is
design thinking?
And what it’s not.
We are talking about design
in its broadest meaning.
Design thinking is often
confused with visual design
“
Design thinking is a human-centered

approach to innovation that draws from the
designer's toolkit tointegrate the needs of
people, the possibilities oftechnology, and the
requirements for business success.
Tim Brown,IDEO
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“Design is not just
what it looks like and
feels like. Design is
how itworks.”
Steve Jo bs, co-founder Apple
“Everything is
designed.”
Design thinking is a
user-centered approach
to problem solving
Actually design thinking
is less about thinking
and more about doing
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Design Thinking is a framework to innovate
and think different
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The Design Thinking journey begins with really
understanding the customer…..
Design Thinking Traditional

Phase project management
Phase
Customers
Iterating
need
Explore
gap via
Bridge the
insight
Evolve
Externalise
Crystallize
Discover Analysis/ Prototype
Business ideation
need
Define Explore –go Implementation
your out into the
business world
problem
Your need
To bridge these needs requires a
new way of thinking
And it starts with the consumer
START HERE
Customers
what are they thinking, doing and feeling?
looks at
Desirability
of an idea
looks at Looks at
Viability Feasibility
of an idea of an idea
Does business Do we have the

model/case technology/
make sense? Process need?
Source: Adapted from IDEO (www.IDEO.com)

LET’S AGREE ON ONE THING
What is innovation, really?
Innovation
“ Act of generating more value for the customer
”
and the business by fulfilling a JOB TO BE DONE
better than anyone else
!
Key elements
1. People-centered
2. Highly creative
3. Hands-on
4. Iterative
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1
People-centered
You start from what people, users, customers, consumers, (…)
need or want to do. Their motivations a n d the problems they
are trying to solve.
Empathy is key. It’s not about you. You need the ability to
understand a n d share the feelings of others.
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2
Highly Creative
Design thinking stimulates you to look at situations
differently a n d come up with new solutions, that g o
beyond a n d improve existing alternatives.
Integrative thinking is key. You need the ability to look at all the
different a s p e c t s of a problem
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3
H ands- on
Stop discussing, start working. Make ideas tangible.
Prototyping is thinking with your hands.
Failure is a (necessary) part of the process in order to

succeed. Experiments with trial a n d error are key.
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4
Itera tive
The road to success does not follow a straight line. The more
you are able to loop through “understand >create > learn” cycle,
the higher chance you have for good results.
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How design feels
“The Process of Design Squiggle” by Damien Newman, Central Office of Design

2
How do you apply

design thinking?
Key pillars, model & process
When can design
thinking be helpful?
?
‘Wicked’ problems
Problems that are ill-defined: both problem and
solution are unknown at the beginning. A large part
of the problem solving is actually defining the
problem.
And/or tricky: it involves quite a bit of risk, a s you

are leaving the comfort zone of the organisation.
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“
Societal problems are inherently

different from the problems
that scientists andperhaps some classes of
engineers deal with.
They are inherently ‘wicked’.
H. Rittel, M. Webber
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!
Not every problem
Design thinking (creative, intuitive, emotional) is not
the answer to every single problem.
For some question you will need rational thinking,

spreadsheets, powerpoint and wo/men in suits to
come to a valid answer. >>e.g. acquiring a local
competitor
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Innovation that is also feasible and viable
Business
- viability -
IN N O V A T I O N
People
- desirability -
Technology
- feasibility -
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Zoom in to the design
thinking process
!
No ‘one size fits all’ approach
There is not one single proces or toolkit that serves every single
case. There is a wide variety of processes a n d tools that people
customise to serve their needs.
The five step process from Stanford Design School is a

model that is broadly used a n d h a s proven its value.
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HUMANS AT THE CENTRE
Design
Thinking
Human-Centred Design Design Thinking
Creative approach for problem It’s a methodology that utilizes a

solving that focuses in human-centred approach to
understanding the people’s needs systematically identify
at the centre of the issues to opportunities for innovation
resolve
COMES IN VARIOUS
FLAVOURS
Design Thinking
Stanford
School of
Design version
Diﬀerent faces, same process
Design thinking has evolved over the years
and diﬀerent ‘versions’ of the methodology
have emerged. However at the very core, all
these versions obey to one simple rule: keep
the users at the core of your solutions
(human-centred design).
An iterative cyclic proces
Em pa thise Idea te
Define Prototype
Test
The Design Thinking Proces by Stanford Design School bschool.cms.ac.in

Empathize Ideate
Define Prototype
Test
Empathize Observe Engage Listen
Define Patterns Insight Focus
Ideate Generate Explore Visualize
Prototype Build Hypothesis Quick
Test Show Behaviour Compare
“
I hear and I forget.
I see and I remember. I
do and I understand.
”
Confucio
Define EmpathyMap
Thinks &
Feels
Hear See
s s
Pains Goals
Thanks to
The Value Proposition Canvas
Value Proposition Customer Segment
Gain Gain
Creators s
Products Custome
& r
Services Job(s)
Pain Pain
Relievers s
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
strategyzer.com
Value Proposition Canvas
Value Proposition Canvas
LET’S BEGIN AT THE
END
Empathize Observe Engage Listen
1
Em pa thise
Understand the experience, situation a n d emotion of the
person who you are working for
• Observe users and their behaviour in the context of their lives.

•
E n ga ge with people in conversations and interviews. Ask why.
•
Watch and listen: ask someone to complete a task and tell you
what they are doing
Empathize Un/Knowns
Unknowns Knowns
Inspiring People
Empathize Speak To
Define EmpathyMap
Thinks &Feels
Hears Sees
Pains Goals
Thanksto
JamesMacanufo
Semester - IV
Fundamentals of Innovation and Venture
Development in Entrepreneurship
(2020-2022)
2022
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2
Module 4: Innovation and Creativity
• Creativity and Innovation

• Methods for generating Ideas
• Needs drive innovation
• Types of Innovation
• Creativity and Problem Solving
• Innovation and Idea development stage
• How emerging needs are addressed through innovation
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Creativity 3
Creativity is the process of

generating a novel or useful
idea.
For an individual, the

creative process can be
broken down into five stages.
Creativity 4
Five Steps to Generating Creative Ideas
Five Steps to Generating Creative Ideas 5
Is the background, experience and

knowledge that an entrepreneur
Preparation
brings to the opportunity recognition
process
Is the stage during which a person

considers an idea or thinks about
Incubation
a problem, it is the “mulling
things over” phase.
Insight is the flash of recognition,

when the solution to a problem is
Insight
seen or an idea is born.
Is the stage of the creative process

during which an idea is subjected to
Evaluation
scrutiny and analysed for its
viability.
Is the stage during which the

creative idea is put into a final
Elaboration
form. The idea is transformed into
something of value.
Innovation 10
Innovation is the key to the economic

development of any company, region of
a country, or country itself. As
technologies change, older
products/services decrease in sales and
old industries dwindle. Inventions and
innovations are the building blocks of
the future of any economic unit.
Thomas Edison reportedly said that
innovative genius is 1 percent
inspiration and 99 percent perspiration.
Methods for Generating Ideas 11
Focus Groups Brainstorming
Brainwriting
Problem Inventory Analysis
Focus Groups 12
A focus group is a gathering of five to ten

people, who have been selected based on their
common characteristics relative to the issues
being discussed.
These groups are led by a trained moderator,

who uses the internal dynamics of the group
environment to gain insight into why people feel
the way they do about a particular issue.
Although focus groups are used for a variety of

purposes, they can be used to help generate new
business ideas.
Brainstorming 13
Is a technique used to generate a large

number of ideas and solutions to
problems quickly.
A brainstorming “session” typically

involves a group of people and should
be targeted to a specific topic.
Rules for a brainstorming session:

No criticism
Freewheeling is encouraged
The session should move quickly
Leap-frogging is encouraged
Brainwriting 14
Brainwriting is a form of written

brainstorming. Brainwriting is a
silent, written generation of ideas by
a group of people. The participants
write their ideas on special forms or
cards that circulate within the group,
which usually consists of six
members.
A leader monitors the time intervals
and can reduce or lengthen the time
given to participants according to the
needs of the group.
Problem Inventory Analysis 15
• Problem inventory analysis uses individuals in a manner analogous to

focus groups to generate new product ideas. However, instead of
generating new ideas themselves, consumers in the group are provided
with a list of problems in a general product category. They are then
asked to identify and discuss products in this category that have the
particular problem.
• This method is often effective since it is easier to relate known
products to suggested problems and arrive at a new product idea than
to generate an entirely new product idea by itself. Problem inventory
analysis can also be used to test a new product idea.
Needs drive innovation 16
Types of Innovation 17
• Breakthrough innovation
• Technological innovation
• Ordinary innovation
Creative Problem-Solving 18
A method for
obtaining new ideas
focusing on the
parameters
Brainstorming 19
• A good brainstorming session starts with a problem statement that is

neither too broad nor too narrow.
• Once the problem statement is prepared, usually 8–12 individuals are
selected to participate. To avoid inhibiting responses, no group
member should be a recognized expert in the problem area.
• All ideas, no matter how illogical, need to be recorded, with
participants prohibited from criticizing or evaluating during the
brainstorming session.
Reverse Brainstorming 20
• A group method for obtaining new ideas focusing on the negative.

• Reverse brainstorming can be effectively used better than other
creative techniques to stimulate innovative thinking.
• The process usually involves the identification of everything wrong
with an idea, followed by a discussion of ways to overcome these
problems.
• Reverse brainstorming almost always produces some worthwhile
results as it is easier for an individual to be critical about an idea than
to come up with a new idea itself.
Gordon Method 21
• Method for developing new ideas when the individuals are unaware of
the problem.
• The group responds by expressing a number of ideas. Then a concept
is developed, followed by related concepts, through guidance by the
entrepreneur.
• The actual problem is then revealed, enabling the group to make
suggestions for implementation or refinement of the final solution.
Checklist Method 22
• Developing a new idea through a list of related issues or suggestions.

• The checklist may take any form and be of any length.
• Put to other uses? New ways to use as-is? Other uses if modified?
• Adapt? What else is like this? What other ideas does this suggest? Does
past offer parallel? What could I copy? Whom could I emulate?
• Modify? New twist? Change meaning, color, motion, odor, form, shape?
Other changes?
• Magnify? What to add? More time? Greater frequency? Stronger?
Larger? Thicker?
Free Association 23
• Developing a new idea through a chain of word associations.

• This technique is helpful in developing an entirely new slant to a
problem.
• First, a word or phrase related to the problem is written down, then
another and another, with each new word attempting to add something
new to the ongoing thought processes, thereby creating a chain of ideas
ending with a new product/service idea emerging.
Forced Relationships 24
• Developing a new idea looking at product combinations

• It is a technique that asks questions about objects or ideas in an effort to
develop a new idea. The new combination and eventual concept is
developed through a five-step process
• Isolate the elements of the problem.
• Find the relationships between these elements.
• Record the relationships in an orderly form.
• Analyze the resulting relationships to find ideas or patterns.
• Develop new ideas from these patterns.
Collective Notebook Method 25
• Developing a new idea by group members regularly recording ideas

• This technique can also be used with a group of individuals who record
their ideas, giving their notebooks to a central coordinator who
summarizes all the material and lists the ideas in order of frequency of
mention.
• The summary becomes the topic of a final creative focus group
discussion by the group participants.
Attribute Listing 26
• Developing a new idea by looking at the positives and negatives.
• Through this process, originally unrelated objects can be brought

together to form a new combination and possibly a new product/service
that better satisfies a need.
27
Big Dream Approach
Developing a new idea

by thinking without
constraints.
Ideas should be
conceptualized without
any constraints until an
idea is developed into a
workable form.
28
Parameter Analysis
Developing a new idea by focusing on parameter identification and creative synthesis.
Idea Development Stage 29
Emerging Needs through Innovation 30
The impact of COVID-19 on Airbnb: Case Study 33
Summary
Travel restrictions in place, cancellations increased and therefore occupancy down. Hosts are suffering from
minimal income from their properties and Airbnb is suffering from a lack of commission from these bookings.
This case study looks at how the COVID-19 pandemic is impacting Airbnb and assesses the company’s
response.
Key Highlights
1. Adopt a more flexible cancellation policy
2. Open your calendar for longer stays and offer weekly or monthly discounts
3. Enabling hosts to offer refunds directly
4. Helping guests find listings with flexible cancellation policies
https://www.youtube.com/watch?v=ECrRXZRIM54
The impact of COVID-19 on Airbnb: Case Study 34
• Summary They will be rolling new features, tools, and incentives out, and
update once they’re in effect.
• Introducing Airbnb’s COVID-19 safety practices
• Updated standards for guests
• Quality hosting
• Updated requirements related to COVID-19
• More cleaning resources
• More tips for hosting
https://www.airbnb.co.in/resources/hosting-homes/a/introducing-airbnbs-covid-19-safety-practices-274
Innovation and Creativity 35
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Fundamentals of Innovation and

There is tremendous interest in

The Evolution of Entrepreneurship The word

Around 1700 A.D. the term was used for

Academic Definition (Stevenson & Jarillo)

Drucker’s Views on Entrepreneur

• The three primary reasons that people become

Desire to be their own boss

Desire to pursue their

Comfortable with Failure

So what are they? What are your

How do they differ from

Characteristics: creative, innovative, enthusiastic, driven, energetic, high need

How do they differ from entrepreneurs?

In-tra-pre-neur (InÕtre-pre-nur) n. A person within a large corporation who

Intrapreneurs can be found in service industries, creating

Intrapreneurs are found in charities, voluntary activities and

Toshiba lap tops

Japanese culture- Kaizen

Antithetical traits Behavioural taboos

Untrustworthiness and unreliability Seeking political profits

Risk aversion Staying put, not seeking better opportunities

Arrogance Focusing on self

Hoarding information; being unresponsive to

Lying to oneself or others Resignation or complacency

Rigidity Refusing to cooperate

They motivate colleagues and keep profits up.

Intrapreneurial employees are energetic, enthusiastic, imaginative and inventive.

They can see how savings can be made.

How processes can be improved.

Helps Identify Highly Productive Problem-Solvers Within The Organisation

It Creates A Sense Of Achievement

For intrapreneurs and entrepreneurs it is normally a bonus not a driver.

But bosses need persuading to take on new ideas

Keep ideas from natural enemies as long as possible to avoid opposition.

Promote ideas modestly and constructively.

Accept suggestions gratefully.

Don’t give up at the first sign of disappointment.

Interest in intrapreneurship has resulted from

There is an increasing interest in "doing your own thing."

There are certain individual characteristics needed for a

The Entrepreneurial Process Consists of Four Steps

An opportunity has four essential qualities

Example of Economic Trend

Examples of Social Trends

Examples of Entire Industries

Company created to help The No Child Left Behind Act

• A problem facing the U.S. and

• Gaps in the Marketplace

Prior Experience Cognitive Factors

Social Networks Creativity

• Prior Industry Experience

• Nature of Strong-Tie Vs. Weak Tie Relationships

Why weak-tie relationships lead to more new business

Strong-Tie Relationships Weak-Tie Relationships

These relationships, which

Five-Steps to Generating Creative Ideas

Depicts the connection between an awareness of emerging trends

Brainstorming Focus Groups

Examples of Useful Search

• Customer Advisory Boards

• Establishing a Focal Point for Ideas

• Feasibility analysis is the