Fundamentals of Product Development
Provides the entrepreneur a window to test
- This is the overall framework and essential
knowledge required to take an idea for a
product or service from conception to
successful launch in the market. It
encompasses the entire process, including
market research, ideation, prototyping, testing,
and market validation.
1. Developing a product or service
2. Creating a prototype
3. Testing the prototype
4. Validating the market
● Product or Service Development
- Refers to the specific activities and steps
involved in bringing a particular product or
service to life. It includes defining the value
proposition, designing features, creating
prototypes,conducting user testing, and
refining the offering based on feedback.
A. Idea Generation:
- Identifying customer needs and problems.
- Brainstorming solutions and product/service
concepts.
- Evaluating and selecting the most promising
ideas.
B. Market Research:
- Analyzing target market demographics and
psychographics.
- Assessing competitor landscape and existing
product/service offerings.
- Validating the market potential for your idea.
C. Product/Service Definition:
- Developing a clear value proposition and
unique selling proposition (USP).
- Defining product/service features and
functionalities.
- Specifying technical specifications and design
requirements.
● Creating a Prototype of the Product or
Service
- This involves building a tangible or intangible
representation of the product or service
concept. It can be a rough sketch, a mock-up,
a basic functional model, or a minimum
viable product. The purpose is to test the
concept, gather feedback, and iterate before
investing in full-scale development.
Advantages:
1. Enables the entrepreneur to engage in trial-
and-error, provides room for
improvements, and refines the functionality of
the product design or service process.
2.
the performance and specifications of
various materials and service processes.
3. Helps the entrepreneur effectively describe
the product or service to the product
team.
4. Elicits respect from key stakeholders and
customers.
● Testing the Product Prototype
- This stage involves presenting the prototype
to potential customers, stakeholders, or a wider
audience to gather their reactions, feedback,
and suggestions for improvement. Different
testing methods like user interviews, focus
groups, or pilot launches can be used
depending
on the nature of the product or service.
Testing Methods:
1. Focus Group Discussion - The participants
will provide relevant insights about the new
product or service.
2. Legality and Ethical Test - The
entrepreneur must ensure that the product or
service
complies with all relevant laws and regulations
and has a necessary license or permit to
operate.
3. Safety Test - the entrepreneur must ensure
that the product is safe to use, safe to be
consumed (food and beverages), and safe to
be applied (cosmetic products). The product
should not in any way harm the customers or
put the customer in peculiar situations.
4. Product Costing Test - the entrepreneur
must examine every stage of the
manufacturing process of the service blueprint
to evaluate and finalize the costs involved.
5. Component Test - Each component of the
product or service must be tested
independently to identify component failures for
services.
6. Competitors' Product/Service Test - the
entrepreneur must test a similar line of
products or the competitors' product or service
itself to compare and get the best practices to
be applied to the new product or service.
● Validating the Market
- This crucial step assesses whether there is
sufficient demand and market potential for the
product or service to be commercially
successful. Market research, surveys, pilot
programs,
and pre-orders can help validate if the target
market is willing to pay for the proposed
offering.
1. Gathering Feedback - Use market research
to gauge customer interest, willingness to pay,
and potential market size.
2. Refine and Iterate - Based on market
feedback, refine your product/service and
prototype
before full launch.
3. Developing a Go-to-Market Strategy -
Plan your product/service launch, including
marketing, distribution, and pricing strategies.
4Ms
METHOD:
● The methods aspect of a business involves
day-to-day operations, including
manufacturing, service delivery, distribution,
logistics, and inventory management.
Entrepreneurs must be detailed in
formulating these processes, ensuring a
pleasant and seamless customer experience,
and adhering to industry standards and
policies, such as ISO certification.
I. Manufacturing of Goods (Schaper and Volery,
2004)
The entrepreneur who will engage in producing his
or her own products will have to consider the basic
guidelines and principles in manufacturing
Manufacturing is the process of translating raw
materials into finished goods that are acceptable to
the customer's standards. It consists of three
elements:
3 elements:
1.) Input
2.) Process
3.) Output
1. OPERATIONS MANAGEMENT IN
MANUFACTURING
The entrepreneur must also consider the efficient
manufacturing site in which the manufacturing
process will take place. Depending on the
entrepreneur s objective and financial capacity, he
or she can opt to have any of the following
manufacturing sites:
Manufacturing sites:
1 Home-based - Most startups do not have financial
capacity to establish a manuracturing site Thus,
their only option is to manufacture goods at home.
This option is the cheapest and highly flexible.
2. Commercial space - For rent this is advisable if
the business really requires a commercial space for
processing of goods and if the home option is not
viable anymore. A commercial space gives the
entrepreneur a more specialized and suited
manufacturing site than manufacturing at home
3. Commercial space Purchase- this option
requires the biggest amount of capital expenditure,
but it also provides the entrepreneur substantial
freedom and flexibility to design and run the
commercial space
TYPE OF PAYMENT
1. Cash on deliver
2. Credit and debit card
3. Online banking
4.Paypal
5. Mybank installment
6. Credit card of delivery
7. Hello play
8.7-eleven
MACHINES :
Machines are essential for business operations,
enhancing efficiency and productivity They are
mechanical structures that control movement to
perform specific actions. Automation of work can
make machines more efficient, saving time and
resources while avoiding costly quuck fixes.
Machine equipment can improve processess and
innovation.
The following are the right equipment to
purchase in starting a business:
1. Assess your business reality. It is important
to understand your objectives why you need to
purchase machinery
2. Get an extemal point of view. Depending on
the scale of your investment, it may be worth
working with an external consultant who can
ensure you make the most of your purchase by
helping you assess your needs
3. Invest in digital technologies. This
technological advantage may monitor a
realtime production and quality control to
reduce waste and rework
4. Create a technology roadmap. A technology
roadmap is a planning tool that aligns your
business objectives to long and short-term
technology solutions
5. Shop around for suppliers. You may browne
the intermet to access different website that
offers specialized machinery equipment.
6 Keep training in mind. All too often,
entrepreneurs don't consider the time, money
and resources required to train employees on
new equipment.
7. Think Safety First. A healthy and safe work
environment means your employees and your
company can be more productive, and this rule
applies to your equipment and technology
purchases as well.
8. Keep it green. When purchasing equipment,
be sure that it's energy efficient. Not only to
save money, but also by contributing to the
health of the planet.
MATERIAL
In manufacturing industry, companies
are involved in turning raw materials into
physical products which are then sold to
consumers. One of the things that a
manufacturing company can do to achieve
efficiency is to source quality raw materials
from credible suppliers. For perishable and
edible products the business should investigate
how raw materials are stored, process, and
shipped to consumers.
Materials - sourcing raw materials is critical in
any business endeavor as the businessman
would want to have the cheapest possible at
the highest quality.
BUSINESS PLAN VS. BUSINESS MODEL
WHAT IS MARKET?
▪ A market can be defined as a place where buyers
and sellers meet to exchange goods,
services and other relevant information is called a
market. Both these parties can meet
in a city, state, province, country and region. The
market may be a physical or virtual.
Market Definition
‘’The set of all actual and potential buyers of
product and services.’’
There are different terms used to understand these
levels.
Potential Market. It is the total population in the
market that is interested to buy a product and
service
Available market. Within the potential market all
those people with enough money to buy products
and services.
Qualified Available Market. People in the
available market who are permitted to buy the
available products and services.
Target Market. It is the segment of the available
market that a company ready to serve it.
Penetrated Market. those customers in the target
marketing purchased the products and services.
Types of Markets
Physical Markets. Any physical market is a
place where buyers and sellers physically meet
that involve both parties in a transaction in
exchange for money
Virtual Markets / Internet Markets. Todays’
business environment such type of markets are
increasing on a fast track. It is a place where
the seller offers goods and services via online
platform i.e. internet.
Auction Market. An auction market is a place
where sellers and buyers indicate the lowest
and highest prices, they are willing to
exchange.
Consumer Markets. This market type means
the marketing of consumer goods and services
for personal and family consumption.
Industrial Markets. The industrial market
involves business to business sales of goods
and services. These marketers do not target
consumer markets.
Black Market. Just like black money, black
market deals in illegal drugs and weapons.
Market for Intermediate Goods. These markets
dealing in selling raw materials that need
further
processing to produce finish goods.
Financial Market. This is a broad market
known as a financial market. This is a place for
dealing with liquid assets for example shares,
bonds etc.
Market size refers to the total number of
people in a specific market who has the
potential to buy and sell products and services.
Whenever companies launch a new product,
they are very interested to know the market
size.
POTENTIAL MARKET These are the basic
foundation that the entrepreneur must have in
seeking opportunities:
Entrepreneurial mind frame. This allows the
entrepreneur to see things in a very positive
and optimistic way in the midst of difficult
situation. Being a risk-taker. an entrepreneur
can find solution when problems arise.
Entrepreneurial heart flame. Entrepreneur's
driven passion, they are attracted to discover
satisfaction in the act and process of discovery.
Passion is the great desire of an entrepreneur
to achieve his/her goals.
Entrepreneurial gut game. This refers to the
ability of the entrepreneur of being intuitive.
This also known as intuition. The gut game
also means confidence in one's self and the
firm believes that everything you aspire can be
reached.
Sources of Opportunities
1. Changes in the environment
2. Technological discovery and advancement
3. Government’s thrust, programs, and policies
4. People’s interest
5. Past experiences
Forces of Competition Model
It is also known as the “five forces of
competition,” An industry environment is a
competitive environment. Regardless of what
product or services you have, competition is always
present.
Competition – it is the act or process of trying
to get or win something.
1. Buyers -The buyers are the one that pays
cash in exchange to your goods and services.
2. Potential New Entrants - A new entrant is
defined as the one who enters something
3. Rivalry - is a state or situation in which
people or groups are competing with each
other.
4. Substitute - means anything that takes the
place or function of another.
5. Suppliers- are the one that provide
something that is needed or wanted.
BUSINESS PLAN VS. BUSINESS MODEL
A business model is a company’s core
framework for operating profitably and providing
value to customers. They usually include the
customer value proposition and pricing strategy. A
business plan outlines your business goals and your
strategies for achieving them.
Financial projections
• How they’re similar: Both business models
and business plans provide an in-depth
description
for how a company will generate profits.
• How they’re different: A business plan
includes financial performance details relevant
to both
internal and external stakeholders, such as
investors, lenders, or potential business
partners. Alternatively, a business model
describes your value proposition—what
product or service a business will offer and why
customers should buy it—as well as the target
market.
Operational details
• How they’re similar: Both business models
and business plans include overarching
information
about how a company plans to operate,
including components such as distribution
channels and management structure.
• How they’re different: Business models
explain the fundamental structure of a
company, such
as how it plans to create and deliver value to
customers, while business plans get into the
actionable details of how to achieve a
company’s operational goals.
Purpose
• How they’re similar: Business models and
business plans are used to outline the goals,
strategies, and operations of a business.
• How they’re different: A business plan
generally incorporates a business model,
explaining
how the model should be implemented and
executed to achieve the business's goals
ANALYZE THE MARKET
What is Market Analysis?
A market Analysis is the best way to get
a third-party perspective of all of the best
options for your marketing campaign, and to
ensure that your marketing dollars are spent in
the most effective way possible.
What is Market Analysis Tools?
A comprehensive market analysis tool consist
of several individual and analysis and answer
questions such as: What does my target group
looks like and where can I find them?
Customer Analysis
is a combination of qualitative and
quantitative research collected on your
customers with the purpose of better
understanding them in order to draw
meaningful conclusions that will aid you in your
marketing and outreach efforts. It allows you to
determine the needs of your customers, the
types of messaging they respond well to, and
why they are or aren’t purchasing your product.
Armed with this information, you can make the
changes necessary to increase growth.
• Market Size
Market size refers to the maximum total
number of sales or customers your business
can see, often measured over the course of a
year. It’s helpful to know the potential market
size before launching a new product line or line
of business, since that can help you
understand if it’s a worthwhile investment of
your time and money. A related concept is
market share, which refers to the total part of
the market a business has as its sales or
customers.
•Demographics
Marketing demographics are used in customer
segmentation to find specific groups in your
target audience. This knowledge is then used
to market to each segment more specifically for
more effective marketing strategies.
Markets may be segmented in several ways,
including demographics, geographics,
psychographics, and behaviors. Marketing
demographics include characteristics such as
age, geographic location, education level,
occupation, income, etc. that are used to
create groups and segment a market
•Location
A location analysis is a process of evaluating
and comparing different potential sites based
on various criteria, such as market demand,
accessibility, competition, labor availability,
infrastructure, taxes, and regulations.
•Psychographics
Psychographics is the qualitative methodology
of studying consumers based on psychological
characteristics and traits such as values,
desires, goals, interests, and lifestyle choices.
Psychographics in marketing focus on
understanding the consumer’s emotions and
values, so you can market more accurately.
•Behaviors
Behavioral marketing is a set of actions aimed
at promoting and selling products based on
users’ interactions with your brand’s ads,
website, emails, social media pages, chatbots,
etc. These digital marketing channels offer
different tools to use people’s behavior patterns
to your company’s advantage.
•Trends
Market trends are tendencies in markets,
analyzed by companies, to better inform their
business practices. Explore examples of
market trend analysis through customer needs,
technology advancements, and market
demographics.
Competitors Analysis
Competitive analysis or Competitor
analysis involves identifying your direct and
indirect competitors using research to reveal
their strengths and weaknesses in relation to
your own. In this guide, we’ll outline how to do
a competitive analysis and explain how you
can use this marketing strategy to improve
your business.
•Direct Competition
Direct competitors market the same product as
you
•Indirect Competition
Indirect competitors market the same product
to a different audience
•Uniqueness
Understanding your uniqueness is a process
that requires your effort. However, being
unique in a specific niche will provide your
business with a strong advantage in a
competitive world. It’s time to find your niche,
be unique and make your business stand out.
•Entry Barriers
Barriers to entry are the obstacles or
hindrances that make it difficult for new
companies to enter a given market. These may
include technology challenges, government
regulations, patents, start-up costs, or
education and licensing requirements.
BUSINESS FORECASTING
Anything you plan is generally based on
assumption of something that might
happen in your business in the future.
The more accurate these assumptions
will be, the better the plan it is. If an
entrepreneur knows what happened in the
past and why, or have insight into what
may occur next, he can then predict what
is likely to happen in the future. That is
what we call business forecasting
Understanding the key terms:
1. Strategic Planning is the
process of documenting and
establishing a direction of
your small business—by
assessing both where you
are and where you’re going.
The top three reasons
strategy implementation fails:
Poor Communication, Lack
of Leadership, Using wrong
measures
2. Decision-making is
choosing between two
possible course of action
and it involves choosing
between possible solutions
to a problem.
3. Finance is defined as the
management of money and
includes activities such as
investing, borrowing,
lending, budgeting, saving,
and forecasting.
4. Accounting is how your
business records,
organizes, and understands
its financial information.
5. Expected cost is the cost in
cost accounting estimated in
advance of production or
construction.
6. Revenue is the value of all
sales of goods and services
recognized by a company in a
period.
7. Profit is the positive gain
remaining for a business after all
costs and expenses have been
deducted from total sales.
8. Cost-effective is something that
is a good value, where the
benefits and usage are worth at
least what is paid for them.
9. Repayment plan is a way to
pay back a loan over an
extended period of time,
generally by making fixed
monthly payments.
10. Cash flow statement (CFS)
measures how well a company
manages its cash position,
meaning how well the company
generates cash to pay its debt
obligations and fund its
operating expenses.
What exactly is business forecasting?
Business Forecasting is the
process of using analytics, data,
insights, and experience to make
predictions and respond to various
business needs. The insight gained by
Business Forecasting enables
companies to automate and optimize
their business processes.
Business forecasting is an act of
predicting the future economic
conditions on the basis of past and
present information. It refers to the
technique of taking a prospective
view of things likely to shape the
turn of things in foreseeable future.
As future is always uncertain, there
is a need of organize system of
forecasting in a business.
Goal of business forecasting:
- go beyond knowing what has happened
and provide the best assessment of what will
happen in the future to drive better decision
making.
Many people think of a Business Forecast as
how many of something we will sell next week.
That is part of it but Business Forecasting can
encompass anything that identifies the
likelihood of a future outcome, provides
comparative information using analytics, or
drives data-driven business decision.
Importance of Business Forecasting
Business Forecasting can be used for:
1. Strategic planning and decision-making
(long-term planning)
2. Finance and accounting (budgets and
cost controls)
3. Marketing (consumer behavior, life cycle
management, pricing)
4. Operations and supply chain (resource
planning, production, logistics, inventory)
Five (5) Fundamentals of Business
Forecasting
1.Forecasting is essential to sustainable
success
To run a successful business, you need
to match demand and supply. In order to
understand and prepare for future demand,
businesses must create forecasts.
Demand forecasting – the process of
estimating the future demand of a product in
terms of a unit or monetary value – is a
fundamental part of supply chain management.
2.Your business forecast should mirror
your business plan
Business forecasting is concerned with
understanding what could realistically happen
based upon your historical performance.
3.Business forecasting methods and
processes
There are two main methods of
forecasting: qualitative and
quantitative.
1. Quantitative forecasting is
concerned with data.
Businesses that have been
established use primarily
historical data of their own
performance, combined with
market and other macroeconomic
factors.
.2. Qualitative business forecasting models
are generally used for short-term
predictions, or for when data is scarce – for
example, when a new product is first
introduced to market.
4. Keep it simple where possible
Constructed forecast should be simple
to understand and provide information relevant
to the strategy of the business. They should
also be easy to adjust. The simpler the
methodology used, the easier it is to
understand, analyze, and figure out why,
should anything go wrong. If a method is too
complex, it can obscure key assumptions and
reasons for failure.
Steps or elements of Forecasting:
1. Developing the Basis:
The first step involved in forecasting is
developing the basis of systematic
investigation of economic situation, position of
industry and products. The future estimates of
sales and general business operations had to
be based on the results of such investigation.
The general economic forecast marks as the
primary step in the forecasting process.
 2. Estimating Future Business
Operations:
The second step involves the estimation of
conditions and course of future events within
the industry. Base on the information/data
collected through investigation, future business
operations are estimated. The quantitative
estimates for future scale of operations are
made base on certain assumptions.
3. Regulating Forecasts:
The forecasts are compared with actual results
to determine any deviations. The reasons for
his variations are ascertained so that corrective
action is taken in future.
4. Reviewing the Forecasting Process:
Once the deviations in forecast and actual
performance are found the improvements can
be made in the process of forecasting. The
refining of the forecasting process will improve
the forecast in the future.
 Concepts about Product and Service
Product
•Can be defined as anything that we can offer
to a market for attention, Acquisition, use or
consumption that could satisfy a need or want.
However, the Definition of product does not
only involve tangible goods such as a car, a
fridge or a Phone. The definition is extended to
include intangible objects as well, because
they can Be offered to a market. Therefore, the
broad definition of product includes services,
Events, persons, places, organizations or even
ideas (Clacssens, M., 2015).
Services
•Are special form of product which consists of
activities, benefits or satisfactions offered for
sale that are intangible and do not result in the
ownership of anything. A service can thus
include banking, airline travel, communication
services, hotel services and so on (Claessens,
M., 2015).
PRODUCT VS. SERVICE
A product is a tangible item that is put on the
market for acquisition, attention, or consumption,
while a service is an intangible item, which arises
from the output of one Or more individuals
Examples:
PRODUCTS
• New prints of motion picture film
elements.
• Prints for exhibit purposes.
• Reference copies on DVD/CDs, books,
magazines for the reading rooms or other
Clients
• Cars, tables and chairs, etc.
SERVICES
• Consulting with clients on appropriate
products for specific purposes
• Providing advice on risk assessment
and priority setting
• Working on standards committees
• Conducting training and other
educational outreach
SEEKING, SCREENING, and SEIZING
3S of Opportunity Spotting and
Assessment
• is the framework that most of the
promising entrepreneurs use to finally come up
with the ultimate product or service suited for
specific opportunity.
Seeking the Opportunity
Opportunity Seeking
 • is the first step and is the most
difficult process of all due to the number of
options that the entrepreneur will have to
choose from.
• it involves the development of
new ideas from various sources as follows:
A. Changes in the environment
A1 - External/Macroenvironment
A2 - Internal/Microenvironment
B. Technological discovery and
advancement
C. Government's thrust, programs,
and policies
D. People's interests
E. Past experiences
 External/Macroenvironment - it
involves the larger societal forces that
influence the microenvironment.
a. PESTEL - Political, Economic, Socio-
cultural, Technological, Ecological, Legal
PESTEL
a1. Political Factors - are mostly
induced by government policies and
administrations, which can have a strong effect
in the entrepreneur's business.
a2. Economic Factors - are factors
which are primarily caused by changes or
movements in the Philippine economy that
have direct or indirect effects on the
entrepreneurial venture.
a3. Socio-cultural Factors - represent a
general view of a locality's traditions, customs,
beliefs, norms, and perceptions.
a4. Technological Factors - basically
refer to the trends and developments in
computer and information technology that have
impact on business.
a5. Environmental/Ecological Factors -
should be given much importance especially
when the world has already suffered severely
from human- induced calamities.
a6. Legal Factors - are the elements
and bodies that are directly involved in the
legislation and interpretation of laws and
ordinances directly affecting the business.
b. INDUSTRY ENVIRONMENT -
Government, Suppliers, Customers,
Competitors, Employees, Creditors
b1. Government - refers to the system
or institution that handles the affairs of a
particular country.
b2. Suppliers - refer to individual
persons or companies that provide the required
materials, parts, or services to the business.
b3. Customers - are the buyers of goods
or services produced or rendered by the
business. It must constantly evaluate and study
the behavior, tastes, preferences, inclinations,
and even future activities of the customers.
b4. Competitors - are the forces existing
in the industry environment that produce, sell,
or render products or services which are
similar to those of the business.
b5. Employees - are the workers of the
business who are highly responsible for the
production of goods or delivery or services to
the customers. They help ensure the quality
and quantity of products or services provided
to the customers. They are the backbone of the
business
b6. Creditors - refer to banks, financial
institutions, and financial intermediaries
engaged in the lending of money to the
borrower usually for a fee or charge in the form
of interest.
 Internal/Microenvironment
 refers to the environment within
the business.
a. Business Resources - are assets
or properties owned or controlled by the
business. Can either be tangible or intangible.
Tangible Resources - are assets of the
business that have physical appearance and
form.
Current Resources - are used, applied,
or consumed within a short period or one year.
Noncurrent or fixed Resources - are
properties whose usefulness or benefits extend
beyond one year.
Intangible Resources - are assets of the
business that do not have physical appearance
of form.
b. Business Culture - is a collection of
values, beliefs, principles, and expectations
learned and shared by employees, founders,
stakeholders, and members of the
management. Reflects the overall image of the
business to the community. Reflects the
identity of the employees but not dependent on
the culture of dominant employees in the
business.
c. Business Structure - refers to the
formal organizational arrangement of the
business in terms of hierarchy of positions, flow
of communication, relationship of functional
areas, and production and marketing
processes. The complexity of the business
structure depends on the type of business,
nature of operation, capital base requirement,
leadership style, and scope of operation.
METHODS OF GENERATING IDEAS
1. Focused Group Discussion (FGD)
• is conducted by an entrepreneur
with the assistance of a moderator to gather
the views of selected consumers on certain
issues related to their buying behavior.
2. Brainstorming
• is an activity similar to an FGD,
that allows the participants to share creative
ideas using the following rules: (a) no
destructive criticism or judgement is allowed;
(b) wider ideas are accepted; (c) more ideas
are preferred; and (d) improvement of others'
ideas is allowed. In short, brainstorming is a
fun discussion with lenient rules.
3. Brainwriting or Internet brainstorming
• is exactly the same as
brainstorming except that the channel used is
not face-to-face, but in writing or online.
4. Problem inventory analysis
• is similar to the FGD except that
the participants are already given an inventory
of product or service problems. Participants will
just identify from the list given the compelling
problem(s) of a potential product or service
instead of generating the ideas from them.
Screening The Opportunity
Opportunity Screening
• is the process of cautiously
selecting the best opportunity. The selection
will depend on the entrepreneur's internal
intent and the external intent which will address
the compelling needs of the target market.
Risk Appetite - refers to the
entrepreneur's tolerance of business risks. The
crafting of a business plan starts only when
entrepreneurs already said no to many
opportunities and said yes to one forceful
opportunity, to which they will devote their time
and resources.
The 12 Rs of Opportunity Screening:
1. Relevance to vision, mission, and
objectives of the entrepreneur.
2. Resonance to values.
3. Reinforcement of Entrepreneurial
Interests
4. Revenues - determine the sales
potential of the products or services you want
to offer.
5. Responsiveness to customer
needs and wants.
6. Reach attainment of rapid growth
 7. Range - potentially lead to a wide
range of possible product or service offerings
8. Revolutionary Impact - "next big
thing" or a game-changer that will revolutionize
the industry
9. Returns-high returns on
investment
10. Relative Ease of Implementation
- easy to implement
11. Resources Required - fewer
resources is better than those requiring more
resources
12. Risks
Seizing The Opportunity
Opportunity Seizing
• is the last step in opportunity
spotting and assessment. The "pushing
through" with the chosen opportunity.
Innovation
• is the process of positively
improving an existing product or service.
• it is a key driver for economic
growth.
Three (3) types of Innovations according
to the degree of distinctiveness:
1. Breakthrough innovation
- may also include inventions,
occur infrequently as these establish the
platform on which future innovations in an area
are developed.
- must be protected by patent, a
trade secret, or a copyright.
- Examples: Internet, computer, or
airplane
2. Technological innovation
- occur more frequently than
breakthrough innovations.
- are technological advancements
of an existing product or service. These
innovations need to be protected too.
- Examples: wireless fidelity or Wi-
Fi, laptop, and jet airplane.
3. Ordinary innovations
- occur ordinarily as the name
implies.
- are commonly originating from
market analysis and technology pull instead of
a technology push.
- This means that the market has a
strong influence in the implementation of an
innovation.
- Examples: unlimited Internet
plans of telecommunications companies, a
wireless mouse, and airbus for economical
travellers.
• The last process, called the
seizing process, involves refining and
developing this opportunity. The refining
process is called product or service planning
and development process.
Four (4) stages:
1. IDEA STAGE - in this stage, the
entrepreneur determines what are the feasible
products and/or services that will perfectly suit
the opportunity.
2. CONCEPT STAGE - the
developed idea will undergo a consumer
acceptance test. This test includes getting the
initial reactions of the primary target market
and the distribution channel.
3. PRODUCT DEVELOPMENT
STAGE - in this stage, the entrepreneur
leverages on the information generated from
the prospective customers via the concept
stage.
4. TEST MARKETING STAGE - this
stage validates the work done from the first
three stages to measure success in the
commercialization of the product or service.
• Once the 35 of opportunity
spotting and assessment have been diligently
done, the entrepreneur should now be ready to
prepare a comprehensive business plan that
covers marketing, operations, and financial
plans.