Introduction to Entrepreneurship Course Overview

Introduction to Entrepreneurship

• Professor: Dr. Miriam Bird
• Professor of Entrepreneurship & Family Enterprises
• TUM School of Management
• TUM Campus Heilbronn
• Global Center for Family Enterprise

Agenda

• Introduction
• Design Thinking
• Prototyping
• Scientific Lean Start Up
• Outlook

Recap

• Open questions regarding the previous session's content

Mutual Role Adjustment of Incumbent & Successor Along Succession Process

• A diagram illustrating the transitioning roles of incumbent and successor during a succession process.
• Incumbent roles transition from Leader/Chief to Monarch, Overseer/Delegator, and Consultant.
• Successor roles transition from No role to Helper, Manager, to Leader/Chief.

Book Recommendation

• Title: HBR's 10 Must Reads on Creativity
• Authors: Gino, F., Grant, A. M., Catmull, E., & Amabile, T.M.
• Publisher: Harvard Business Review Press
• ISBN: 9781633699977

Course at a Glance

• Session 1: Introduction; What is Entrepreneurship?
• Session 2: Opportunity Recognition and Effectuation
• Session 3: Family Firms
• Session 4: Design Thinking & Prototyping
• Session 5: Decision Making & Business Model Canvas
• Session 6: Entrepreneurial Teams, Growth & Entrepreneurial Finance
• Session 7: Social and Sustainable Entrepreneurship

Lecture Dates & Content

• Dates and topics for the lectures, including guest speakers.

In this session you will learn

• Why people often do not buy the products entrepreneurs develop
• How entrepreneurs can better understand people's needs (e.g., through methods like paper and pencil prototyping)
• Why using paper and pencil prototyping is an effective method to start a project
• Why failing more often is better than failing less frequently
• Understanding the Lean Startup approach
• How to incorporate a scientific element to a Lean Startup approach

Agenda (page 9)

• Introduction
• Design Thinking
• Prototyping
• Scientific Lean Start-Up
• Outlook

Defining Design Thinking

• A human-centered approach to innovation that combines designer's tools with the integration of people's needs, technological possibilities, and business requirements.

A human-centered approach

• Demonstrated visually using overlapping circles for Desirability/Humanity, Feasibility/Technical, and Viability/Business, with an arrow pointing to the intersection representing innovation.

Design Thinking comprises 3 key elements

• Interdisciplinary Teams
• Iterative Process
• Variable Space

Design Thinking Mindset

• Curiosity
• Reframing
• Collaboration
• Mindfulness of Process
• Bias towards action

A Model of the Design Thinking Process

• A circular hexagon-based diagram showing the phases of Empathize, Define, Ideate, Prototype, Test.

Design Thinking is iterative

• A diagram depicting the iterative phases of Design Thinking (Empathize, Define, Ideate, Prototype, Test) with arrows connecting them to visualize the cyclical nature of the process.

Design Thinking - Empathize

• Understanding people's needs, behaviours, and motivations related to a design challenge.
• Methods include observation, engagement, and listening.

Design Thinking - Define

• Bringing clarity to a design challenge, analyzing gathered information, and developing problem statements.

Design Thinking - Ideate

• A critical mental process to generate diverse concepts and outcomes to transition from problem identification to solutions that are both novel and useful.
• Stimulates creativity and variety of thinking to design solutions.

Design Thinking - Prototyping

• Creating a tangible representation of an idea to understand, test, and improve it before full-scale development.
• Can be physical, analytical, or experiential.

Design Thinking - Test

• Evaluate the prototype through user feedback to gain insights applicable to refining the product.
• Testing methods should aim to allow users to provide honest feedback.

Summary: Design Thinking

• Human-centered vs. engineering-centered product design
• Design thinking is an iterative process
• Design thinking as a human-centered approach of solving problems
• Design thinking as a five-step iterative process

What is a Prototype?

• A tangible or virtual representation of an idea, not the final product
• Serves as a stepping stone toward the final product.

Prototyping is a key part of Design Thinking

• Illustrative diagram showing the connection between various Stages of Design Thinking to Prototyping.

Communicating ideas

• Methods to communicate ideas, incorporating diverse perspectives (customer, project leader, business consultant, engineers).

A software example for UX prototypes

• Visuals of software app prototypes, showing the iterative process of design refinement.

What are prototypes for?(1/2)

• Trying out an idea
• Learning about important issues
• Failing quickly and cheaply
• Communicating ideas clearly
• Bringing the team together

What are prototypes for?(2/2)

• Accuracy (identifying and resolving ambiguities)
• Ergonomics (fit and usability)
• Aesthetics (colors, textures)
• Surveys (collecting user feedback)
• Pitching (introducing ideas to investors)
• Testing

Stages of Prototyping

• A bar chart showing the relative number of prototypes related to inspiration, evolution, and validation stages.
• The stages are accompanied by various descriptions and methods.

How does prototyping work?

• Sketching the idea
• Focusing on single functionalities or overall function
• Employing everyday materials for prototypes (old stuff, cardboard)
• Thinking with hands (physical prototyping process)

Forms of prototypes

• Physical (tangible)
• Analytic (virtual)
• Experiential (behavioral)

Prototyping – Google glasses

• References a TED talk on rapid prototyping

Inspire using trash, paper, items from DIY store

• Images of various prototyping methods using readily available items.

From idea to reality

• Illustrative examples of the evolution of an idea (chair design) from sketches to a physical prototype.

A hardware example - NapCabs

• Illustrative examples of the evolution of a product (nap pods) from sketches to a physical prototype.

Not just for products

• Visuals representing diverse prototypes, not just physical products, including interactions and spaces.

Software App

• Illustrative examples of software app prototypes.

Prototype appearance makes a difference - BUT Prototyping should be "quick and dirty"

• Images illustrating contrasting prototype appearances, emphasizing the importance of speed and practicality in prototyping.

Fail early and often

• A diagram comparing project time against cost associated with the failure of prototypes.
• Importance of iteration in prototyping.

Summary: Prototyping

• Prototypes are not finished products.
• Prototyping is a key part of design thinking.
• You can prototype almost everything.
• Fail early and frequently (and cheaply).
• Prototypes are key for communicating ideas clearly.

Agenda (page 46)

• Introduction
• Design Thinking
• Prototyping
• Scientific Lean Start-Up
• Outlook

The story behind Lean Startup

• Eric Ries' background (entrepreneur, Yale graduate, Software engineer), including his experiences with previous ventures and leadership roles in Silicon Valley.
• He founded Catalyst Recruiting.
• Moving to Silicon Valley, he worked as a software engineer.
• He subsequently founded IMVU and left Kleiner Perkins.
• Published the Lean Startup in 2011.

Deep Dive: Build Measure Learn Loop

• Social Network for Purchasers and Supply Chain Professionals
• Learn (User Statistics, Backend issues, UX considerations)
• Build (Minimum Viable Product features)
• Measure (Social Network Evaluation Criteria)

Get ahead! – The scientific approach

• Scientific approach to entrepreneurial decision making
• Randomised control trials.
• How startups make decisions.

Training program and experimental design

• A randomised control trial (RCT) with 116 Italian startups.
• 10 sessions of training on how to get feedback and gauge market feasibility.
• The Treatment Group learned the "scientific" approach.

Deep dive: The scientific approach

• Training for identifying problems, theories, defining hypotheses, and conduct rigorous tests.
• Making decisions based on these tools, including evaluating the likelihood of false positives or false negatives when testing ideas.

Overview of training outcomes between groups

• Treatment and control groups, showing key differences.
• The methods used by each group.

Example: Ink dome's validation (treatment group)

• Validation methods used by Ink dome (treatment group).
• Key considerations for validation in a real-world setting.

Conclusion

• Benefits of using a scientific approach to entrepreneurial decision making; increasing performance and evaluating alternatives.
• The role of validated theories in improving businesses.

Agenda (page 55)

• Introduction
• Design Thinking
• Prototyping
• Scientific Lean Start-Up
• Outlook

This quiz covers the key concepts of the Introduction to Entrepreneurship course, including design thinking, prototyping, and scientific lean startup methodologies. It also discusses the mutual roles of incumbents and successors in the succession process. Participants are encouraged to refresh their understanding and engage with the course material.