ENSC 20103 Technopreneurship Past Paper PDF

Technopreneurship Engr. Luisito Lolong Lacatan, PhD, PCpE 1 Course Code: ENSC 20103 Course Description: This course provides basic concepts on technopreneurship focusing on the nature, environment and risks of n...

Technopreneurship Engr. Luisito Lolong Lacatan, PhD, PCpE 1 Course Code: ENSC 20103 Course Description: This course provides basic concepts on technopreneurship focusing on the nature, environment and risks of new venture formation and building startup businesses. This course will help students understand the process, challenges, risks and rewards of starting up a new business by equipping them with the tools required to start their own business to improve their chances of successfully starting their own business. Course Intended Learning Outcomes (CILO): At the end of the course, students should be able to: 1. Understand the world of Technopreneur & Entrepreneur and experience  the entrepreneurial process from the generation of creative ideas. 2. Develop creative solution to a key problem 3. Create a business plan including the ability to analyze market opportunities develop a business model and strategy form and work successfully in a team 4. Present the business plan to a panel of investors/judges 2 Table of Contents Module 1: Innovation and Ideas Introduction 1 Learning Outcomes 1 Lesson 1. What is Innovation 2 A. Why innovation is important 3 B. The Right Mindset for Innovation 4 C. The different types of innovation 5 D. Methods for Managing Innovation 20 Lesson 2. Types of Innovation: Product, Process, and Business Model 21 A. Product Innovation 21 B. Process Innovation 22 C. Business Model Innovation 24 Lesson 3. Innovation-driven vs. Small-Medium Enterprise 27 Lesson 4. Organization-Driven vs. Market Ideas 30 Summary 32 References 35 Module 2: Customers Introduction 36 Learning Outcomes 37 Lesson 1. Customer needs, pain points and demographics 37 Lesson 2. Market Research and Validation 40  Summary 43 References 44 Module 3: Competitive Advantage, Markets Introduction 45 Learning Outcomes 47 Lesson 1. Classes of Competitors 48 Lesson 2. Market Structures 49 A. Perfect Competition 50 B. Monopolistic Competition 50 C. Oligopoly 51 D. Monopoly 51 Assessment Task (Submission of Business Plan) 53 Summary 57 References 58 3 MODULE 1 INNOVATION and IDEAS Introduction Innovation is one of the most important topics concerning companies’ long-term competitiveness. But what is innovation exactly? Why is innovation management so important for organizations? And what different types of innovation are there? In thiThis article will give yousy-to-understand introduction to a complex topic. Learning Outcomes At the end of this module, students should be able to: 1. Understand and experience the entrepreneurial process from the generation of creative ideas,  2. Understand the market needs or provide a solution to a critical problem, 3. explore the feasibility and creation of a business enterprise, 4. implementation of creative ideas into real products, and 5. experience the dynamics of participating on a business team, and create and present a business plan for a technology idea. The course’s objectives and activities should provide the background, tools, and life skills to participate in the 1 entrepreneurial process within a large company as an engineer, in a new venture, or as an investor. Lesson 1. What is Innovation? Innovation is one of the most important topics concerning companies’ long-term competitiveness. But what is innovation exactly? Why is innovation management so important for organizations? And what different types of innovation are there? In this article, you will get an easy-to-understand introduction to a complex topic (Barrood, 2010) The word “innovation” is derived from the Latin verb innovare, which means to renew. In essence, the term has retained its meaning up until today. Innovation means to improve or replace something, for example, a process, a product, or a service. In the context of companies, however, the term needs a definition. In the complex context of business, a definition is required. (Shalley et al., 2015) “Innovation is a process by which a domain, a product, or a service is renewed and brought up to date by applying new processes, introducing new techniques, or establishing successful ideas to create new value.” The creation of value is a defining characteristic of INNOVATION. 2 A. Why is INNOVATION so important? Organizations have several options to increase their competitiveness: they can strive for price leadership or develop a differentiation strategy. In both cases, innovation is essential. Companies that choose price leadership must secure long-term competitiveness by developing innovative, highly efficient processes. Process optimization and continuous improvement in terms of costs are essential for them to. Companies that strive for a differentiation strategy need innovation to develop unique distinguishing features from their competitors. Many start-ups launch their activities by developing innovative proproducts service. Continuous innovation is, therefore, crucial for all companies. The main difference is in the focus of the innovation strategy, which varies considerably from company to company. “Although innovation has always been one of the driving forces in competition and a primary competitive dimension, the numerous studies and publications of recent years show that the speed of change is increasing.” This makes innovation one of the most important drivers for the long-term success of companies. Accordingly, methods of collaboration and teamwork are increasingly being used in numerous companies; for example,  to promote digital innovations and overcome the challenges of digital change. Innovation requires a higher degree of creativity than the operative business and a clear innovation strategy, especially in the so-called “fuzzy front end of innovation. “ 3 Concepts like lean innovation and establishing community-based innovation networks become increasingly relevant. Companies use modern idea and innovation management software to manage innovation efficiently. (Carayannis et.al, 2015) B. The Right Mindset for Innovation Innovation requires more creativity and willingness to take risks than implementing typical projects. To successfully realize innovation projects, a different mindset is needed. Break the Rules With traditional approaches and conventional methods, you will often get nowhere in the field of innovation. Challenge the status quo consistently! And explore new paths off the beaten track. Collect Ideas everywhere! Innovation projects constantly need new ideas: To overcome obstacles, change concepts, and optimize strategies. Believe in the impossible! Imagine how your innovation will look in reality. And believe that you will be able to overcome all obstacles on the way to realization. 4 Put together an innovation team of individuals with different perspectives and thinking styles. Innovation needs the diversity of various competencies and diverse ways of thinking. C. The Different Types of Innovation In the context of businesses, there are different types of innovation. Process improvement and organizational innovation: The improvement of processes through continuous improvement and developing new solutions. Product development: The development of innovative products or product features. Service innovation: Creating and introducing new services for customers and partners. Business Model Innovation: Developing innovative business models and new revenue streams. Digitalization and digital transformation also require companies to rethink and develop new approaches.  5 Figure 1: Different types of Innovation What is a Process Improvement?  “Process improvement is the systematic optimization of workflows and business processes within companies and organizations.” 6 In many companies, process improvement is also referred to as organizational innovation and is managed via a continuous improvement process (CIP) or idea management. Many companies have the role of a CIP manager established for this purpose. Process improvement follows the logic of the so-called PDCA cycle, one of the quality management principles according to ISO 9001. The steps “Plan-Do-Check-Act” describe the four phases of process improvement. The PDCA cycle is not mandatory, bt has proven to be a sound methodology. In this article, you will learn what role process improvement plays within companies and organizations and howto involve employeess. (Drucker, 2015) Objectives of Process Improvement. Process improvement follows the guiding principle of the ISO 9001 standard, according to which companies should permanently improve their processes and procedures. The aim is to avoid inefficiencies, uce administrative costs, increacustomer orientation, guarantee a high quality of products and services, and promote business innovation as a distinguishing feature in the competition. The basis of process optimization is the identification and specification of the most critical internal workflows and processes. Until 2015, the quality handbook was the vehicle for this, but it has often proved too complex and impracticable for small and medium-sized enterprises. The ISO 9001:2015 standard, therefore, makes no explicit specifications abouhowch processes in companies are documented and optimized. Critical Success Factors of Process Improvement. 7 There are numerous methods of process improvement, for example, the Ishikawa diagram – also calledthe cause-and-effect diagram, the continuous improvement process (CIP), Six Si, gma or Kaizen. All these methods are essentially based on similar key success factors. Process improvement takes place in different stages: process analysis and identification of weak points to idea generation, implementation and ,success control. Although the ISO 9001:2015 standard does not specify a standardized procedure for process optimization, these fivecriticaly success factors have proven themselves in practice. Key Success Factor 1: Performing process analyses In a process analysis, the process's various building blocks and stages are systematically evaluated to identify weak points and opportunities for improvement. For process improvement, it is essential to understand the relationships between the different building blocks of a process. This is the prerequisite for identifying possible correlations. A process analysis prevents the improvement of one process component from hurting the efficiency of another. The process analysis aims to identify weak points that become potential opportunities and fields of action for process improvement. Continuous software supports companies in achieving this goal. The result is a list of efficiency challenges that prevent the highly efficient functioning of a process. These fields of action for process improvement lead to an increase in efficiency (better quality, fast throughput times, lower costs, etc.) once this process has been successfully completed. 8 Key Success Factor 2: Prioritize fields of action for process improvement Once processes have been analyzed and fields of action derived, they need to be evaluated. For this purpose, the fields of action are first described in a standardized way. Each field of action is given a title and a brief description. In addition, the underlying problems and their effects are described. A measurable parameter is defined which has to be improved. The measured parameters can be either qualitative or quantitative: In the area of production, for example, it can be the number of defective products or the duration of changeover times for production systems. In the Human Resources area, it can be the processing time for applications, the number of participants in advanced training courses or the duration of the preparation of personnel reviews. In idea management and innovation management, this can be the number of newly submitted ideas, the average evaluation of the newly submitted employee ideas, the processing time from submission to successful implementation, etc. However, a measured parameter can also be the employees’ subjective satisfaction with a process: comprehensibility of the process, transparency and usefulness. After the fields of action have been described and metrics defined, they are evaluated by internal teams of experts. On the basis of the evaluation, it is later decided which processes will be improved with higher and which with a lower priority. The evaluation criteria include:  Need for improvement: How important is it to improve a certain process in the specific field of action? 9 Usefulness: How great would be the economic benefit of a successful process improvement? Urgency: How urgent is process improvement? Is fast action necessary? Key Success Factor 3: Think of Process improvement as a creative challenge An important success principle of process improvement is to develop concrete ideas to address the weaknesses and areas for action that have been given the highest priority. The basic question is: Which ideas and proposed solutions can optimize a process in the best possible way? Idea generation can take place using creativity techniques in an innovation workshop or by using idea management software and innovation management software. The aim is to stimulate the creativity of employees in order to generate the best possible solution for process improvement. Examples of key questions are: How do you digitize one step completely to make the entire process more effective? How do you integrate process steps to make the overall process more effective? How do you prioritize individual steps and change the order to make the overall process more effective? How do you automate individual steps to make the overall process more effective? How do you make steps transparent for all employees so that the overall process becomes more effective? How do you swap steps or partial steps against each other and thus make the overall  process more effective? 10 Following ideation an idea evaluation takes place. Ideas will be evaluated according to their potential for real improvement. An evaluation of the efforts in comparison to the benefits is also carried out. Key Success Factor 4: Structured Implementation of Proposal for process improvement. Once a decision has been made on the best solutions for process improvement, a roadmap is drawn up. Responsibilities for implementation are assigned. In addition, distinct milestones are defined at which certain intermediate objectives are reached. Typical milestones are: Technical implementation of the solution: Depending on the type of process improvement – within a production process, the optimization of a digital process, an existing internal process, the improvement of a process involving external parties (e.g. customers) – the solution is initially implemented by using simple technical capabilities. Sometimes it is advisable to first create a prototype so that the solution is visible. Testing the solution in a prototypical environment: If it is possible, a solution can first be tested in a selected area (e.g. in parts of a production line) for a limited time. The aim is to test the acceptance of the process improvement by employees and affected parties (e.g. customers). Solution adaptation: The findings from the prototype test phase are incorporated into the solution. Final implementation and roll-out: The solution developed for process improvement is  generally introduced. It replaces the existing one. 11 The prototypical approach is particularly recommended for process improvements that have a greater impact. For example, when it comes to optimizing processes through the use of digital technologies, a change can affect several departments of a company. Conflicts can also arise with the way customers work. These can be identified and resolved in the prototype phase. Small process improvements that can be implemented with limited effort and impact can be implemented without the prototype phase. Key Process Factor 5: Performance Monitoring. The key to process improvement is to measure success. After the process optimization has been introduced, the key figures defined at the beginning are compared with the previously existing values. The success of a process improvement can be seen, for example, in short processing times, faster throughput times, higher productivity of individual employees, increased customer satisfaction, etc. (Satalkina, 2020) What is a product development? “Product development describes the process of creating a product. It begins with the analysis of future trends and customers needs, through technological idea generation and idea development, to technological implementation and market launch.” Product development with a high degree of novelty is referred to as innovation. Depending on the degree of novelty, it is an incremental innovation (improvement and optimization of existing products) or a radical innovation or disruptive innovation (development of a revolutionary new product). In companies, this is implemented through innovation 12 management. A product development process is often referred to as an innovation process. (Takenaka, 2007) Product Development Tasks The task of the product development is to maintain and increase the long-term competitiveness of a company through innovative products and features. The responsibilities of the product development therefore include not only the technological implementation, but also the support of the entire product development process. Depending on the organizational structure, the analysis of customer needs and trends in some companies is the responsibility of marketing, while in others it is part of product development. In some companies the market launch lies with sales, in others also with product development. These structures may vary from company to company (Barrood et. al, 2010) The concrete tasks of product development include: Idea generation and idea development for new product ideas Development of a product concept based on the analysis of trends and customer needs Production and presentation of prototypes Assessment of the technological feasibility Development of a concept for the creation of production and the establishment of the supply chain Modification of product prototypes based on customer feedback  Accompaniment of the manufacturing process of a product 13 Accompaniment of the market launch Product Development Stages Product development can be divided into different stages. These stages build on each other, but are not necessarily linear and rigid. With new findings and changing market conditions, product development can jump back one stage, for example from the concept stage back to idea generation. Stage 1: Trend and Market Analysis Through client surveys, the evaluation of customer requests, the analysis of complaints and the evaluation of future trends, requirements are defined for a future product generation and thus for product development. This phase serves to define framework conditions for the development of new product functions or the development of completely new products with a high degree of innovativeness. Stage 2: Idea Generation In this stage, different ideas are developed in order to implement the individual requirements of product development. Idea generation can be supported using classical creativity techniques, an innovation workshop, collaboration, co-creation, open innovation or crowdsourcing Stage 3: Evaluation of Product Ideas  14 New product ideas or ideas for new functions and features usually go through several stages of evaluation. A more general stage, in which the degree of novelty and the potential of a product idea are evaluated, and a detailed evaluation, in which questions such as a cost benefit ratio and feasibility are evaluated. When evaluating ideas, it is important to distinguish between the customer perspective and the internal perspective. While customers primarily evaluate the benefit of a product for their applications, other criteria often count in the internal evaluation. The difference between these two assessment methods is an important building block in the phases of product development. Stage 4: Concept Development The best ideas are filtered out and supplemented by in-depth questions: What exactly can an implementation look like? Which technological implementation options exist? How is the patent situation? In the conceptual design stage of product development, these questions become increasingly important. Stage 5: Implementation In the implementation stage, an innovation roadmap is defined in which the milestones up to market launch are defined. Depending on the complexity of product development (e.g. the involvement of suppliers), project plans are drawn up or agile project management methods are used. Stage 6: Market Introduction  15 The product is launched in a test market where it is tested for acceptance. In this critical phase of product development, companies try to limit the risk. For example, the final production line is often not yet built. The test market is served in the form of a prototype. Results and findings from these pilot stages flow into the modification of a product concept or change the roadmap and milestones. (Satalkina, 2020) What is Service Innovation? “Service innovation (also called service design is the development and successful introduction of new service for customers” Service innovation can be introduced in different ways: Within companies whose business model is to provide services, as an additional service to a product or an offer, as a free-of-charge marketing service. The development of service innovation is part of the innovation management of companies and is structured by an innovation process from idea generation up to successful implementation. Through digitalization and the option of developing digital business models, service innovation can also become an interesting business area for companies that primarily manufacture products and capital goods. This article describes the different stages in developing service innovation. (Drucker, 2015) Customer Insights as key to service innovation  16 Successful services are based on a deep understanding of customer problems and requirements. Therefore, when developing service innovation, a deep exploration of a customer’s situation and goals is the first step. Customer insights are obtained using various methods, such as customer interviews, customer observation and monitoring, or the evaluation of incoming customer inquiries and complaints. Methods such as Design Thinking provide for a so-called understanding stage at the beginning of the development of service innovation. Developing ideas for service innovation In the second step you go through the stage of idea generation and systematic idea development. This stage is often carried out together with prospective customers, and is referred to as co-creation, customer co-creation and open innovation. Different ideas are created. Each of these ideas contains the following information: Title of a service idea Description of the idea in three to five sentences Description of the underlying problem Target group for the service innovation Implementation from initial idea to service innovation Market potential From the initial idea to successful service innovation 17 In the development of service innovations, ideas go through various stages of evaluation. In the first step, Customer Insights are evaluated based on how relevant a customer problem is? how many customers have specific problems and challenges, and? whether the company has the competencies to solve these problems. Later, factors such as the marketability of a service, the ability to implement it, the degree of problem solving (is an idea suitable to effectively solve a customer problem?) and the market potential are evaluated. A further evaluation will take place after completion of a prototype stage (see next section). Among other things the acceptance of a service by customers, the willingness to pay and the possibility of successfully delivering a service is evaluated. The different evaluation stages pursue the goal of assessing the quality-of-service innovation from the customer’s point of view step by step: the more concrete the service innovation becomes, the more operational the evaluation criteria become. (Carayannis et. al, 2015) Prototyping in Service Innovation In contrast to technological innovations or product innovations, which often require months or years of R&D efforts, service innovations are relatively easy to develop. Accordingly, they often lack the unique selling proposition in the long term. Other companies can quickly copy successful services. When developing service innovations, it is therefore important to test the 18 services offered in the form of prototypes. This serves to filter out the right ones from a high number of potential service innovations. This can be done in several stages: Design prototypes: A service innovation is first presented in the form of a brochure or a website. Also, visualization methods like videos and animations can be used. Design prototypes serve to present a possible new service to customers and to evaluate its acceptance. Project prototypes: The service is provided and tested in the form of prototype projects for customers. The service innovation is usually not yet finished at this point in time. Prototyping in a test market: A selected area (e.g., regional) or a specific target group is selected to provide the service. Within this test market, the extent to which the service innovation is accepted is evaluated. The market for service innovation is more dynamic than the market for product innovation or innovation in complex solutions. Accordingly, it is important to set up a well-filled innovation pipeline for service innovations, regularly test new offers and convert them into prototypes. At the end there is the decision of a market launch. (Takenaka, 2007) What is Business Model Innovation? “The term Business Model Innovation refers to successfully implemented innovation in the business model companies” In comparison to product development, Business Model Innovation is primarily concerned with the monetarization of products and services, i.e., activities that generate new customer benefits, create innovative distribution channels and introduce new models of monetarization. 19 Especially in the era of digitalization and digital strategy, business model innovation plays an increasingly important role. Business model innovations that are based on data are also called digital business models (Drucker, 2015) Business Model Innovation as a separate type of innovation In many companies, business innovation is equated with technical development. With the help of innovation management and a clear innovation process, the different stages in the development of new products are structured and monitored through innovation measurement. Through a technology management, potential new technologies that might be interesting for development are evaluated. Business Model Innovation is much more complex. It includes marketing (the formulation of an innovative value proposition), sales and the sales model as well as monetarization. Also, the change of a monetarization (e.g., a rental model instead of the purchase of a product) can represent a business model innovation in certain markets. D. Methods for Managing Innovation The methods of innovation management are as diverse as the types of innovation: Innovation processes, with which developments are steered by a clearly defined procedure through different stages and levels. Open innovation and Customer co-creation: methods that integrate customers directly into the development process. Innovation labs: Business units in which employees work on the development of innovations outside the daily business 20 Innovation challenges: Competitions in which employees are asked to contribute solutions to overcome a company’s challenges. Lesson 2. Types of Innovation: Product, Process and Business Model  Innovation has become such a buzzword it can be hard to remember what it actually means. Depending on who you talk to, the bar for “Innovation” might seem incredibly high (“Let be the next Netflix “) or far too low)” Lets hang up some hammocks on our office!”) There are several different ways a company can innovate; In this article, they are broken down into three general categories; product, process and business model. By narrowing your focus on a specific type of innovation, you can be a more effective and strategic innovator. Product Innovation When people think of innovation, often they’re thinking of product innovation. Product innovation can come in three different forms. 1. The development of a new product, such as the Fitbit or Amazon’s Kindle, 2. An improvement of the performance of the existing product, such as an increase in the digital camera resolution of the iPhone 11; and 3. A new feature to an existing product, such as power windows to a car. Drivers of product innovation might be technological advancements, changes in customer requirements or outdated product design. Product innovation is generally visible to the customer and should result in a greater demand for product. 21 This is the most well-understood and common form of innovation and is related to a) either a completely new product e.g., Bitcoin currency or b) a new feature in an existing product e.g., the introduction of camera features in a mobile phone or c) the enhancement of an existing product feature e.g. a higher resolution version of the camera. Product innovation is most often a result of new technology or new insights about customer need (sometimes even before the customer knows what these needs are). Companies who expand and have competitive advantages amongst other businesses in their industry utilize product innovation by differentiating their product to make it more unique. (Barrood et. al, 2010) Process Innovation According to Eustat definition, process innovation consists of the implementation of a new or considerably improved production technology, or new or considerably improved service supply or product delivery methods in an establishment. The result must be significant with respect to the level of production volume, the quality of the products (goods or services) or the costs of production and distribution. Process innovation comes in the form of new technology, skills, tools, and equipment. The combination of these processes helps provide quality service for a product. It is an important stage of innovation which helps in the increment of production levels and reduction in costs. Hence, the innovation process in an organization should focus on (1) The delivery process where tools and techniques can help improve delivery systems. (2) In production where technology and equipment are essential in the enhancement of the manufacturing process. 22 An example of a company that has strived in process innovation is ZARA which has top notch manufacturing, production, and distribution processes. Process innovation is probably the least sexy form of innovation. Process is the combination of facilities, skills and technologies used to produce, deliver, and support a product or provide a service. With these broad categories, there are countless ways process can improve. Process innovation can include changes in the equipment and technology used in manufacturing (including software used in product design and development), improvement in the tools, techniques, and software solutions used to help in supply chain and delivery system, changes in the tools used to sell and maintain your good, as well as methods used for accounting and customer service. While product innovation is often visible to your customer, a change in process is typically only seen and valued internally. Speaking generally, changes in process reduce costs of production more often than they drive an increase in revenue. Of the three types of innovation, process is typically the low risk. Example: 1. One of the most famous and groundbreaking examples of process innovation is Henry Ford’s innovation of the world’s first moving assembly line. This process changes not only simplified vehicle assembly but shortened the time necessary to produce a single vehicle from 12 hours to 90 minutes. 2. Recently, Differential built a mobile sales dashboard for Group Bimbo. The baking company has 65 manufacturing plants and 2.5 million sales centers 23 located in 22 countries, across 3 continents. As a result, the executive team members travel a lot, meeting with their direct reports around the world. Having a mobile sales dashboard gives the team quick access to the sales information and others KPI’s for each country, channel, and brand, cutting out guesswork in sales decisions, and reducing meeting time. Also, as an example of process innovation to produce the product/service is an automated assembly line for car manufacturing. This was process innovation to find ways to reduce human error while enhancing output at the same time. An example of process innovation in how to deliver a product is the way Dell allowed clients to customize their PCs during the order stage. Banks and other organizations now deploy automated AI-based chatbots to provide intelligent 24/7 support to their clients. (Satalkina, 2020) Business Model Innovation Business Models Innovation does not necessarily imply changes in the product or even in the production process, but in the way as it is brought to the market. “Business model innovation is probably the most challenging of the innovation types as it will likely present an organization with major requirements for change. Often, the very capabilities or processes that have been optimized to make company successful and profitable will become the targets for transformation. In some cases, these changes can threaten elements of the company identify and come into conflict with brand expectations or promises. 24 Whereas both product and processes innovation can be incremental and moderate, busines model innovation is almost always radical, risky and transformative. When talking about business model innovation, without a doubt, name like AirBnB, Uber, or Spotify will come up. These are perfect examples of fasting-moving companies that were able to disrupt age-old markets (hotel taxi, music) by tweaking or inverting their industry’s traditional business model. Because of these powerhouses, many might assume only startups are capable of massive business model innovation. Startups have a big advantage due to their ability to iterate and adapt their model as they are in the process of creating an initial business model design; however, there are several large, well-established organization that have learned into their advantage of a large customer base and greater resources to challenge their existing business model and “disrupt” themselves. Examples: 1. IBM has managed changes in customer offers from mainframes to personal computers to technology services. 2. Amazon found a new channel to the customer through technology by eliminating the traditional retail distribution channel and developing direct relationships. Business model innovation is usually not about incremental change but more holistic and organization-wide transformation. Business model innovation can impact everything from product to marketing channels to pricing. It is most often seen in startups that do not have an established business structure and who have the ability to experiment with the way they operate their business. But there are also several well-established organizations that have leveraged their large customer base and resources to change their existing business model. 25 Probably the finest example of a large company that has transformed its business model and in fact created a new industry is Amazon. Amazon found a new way to reach and market to its customers online without going through the conventional retail distribution route. The type of innovation that is most relevant for an organization at a particular point in time is a function of the most important questions that the organization is asking itself or is addressing. Questions such as: How can we reach our customers more effectively? How do we make our service more affordable for a larger customer segment? Is our product easy to use? What issues are clients facing with delivery? Lesson 3. Innovation-driven vs small-medium enterprise Innovation Driven Enterprise (IDE) the creation of “innovation-driven enterprise” that pursue global opportunities based in bringing to customers new innovations that have a clear competitive advantage and high growth potential Small-Medium Enterprise (SME) are usually started by single person that serves a local market and sometimes grows into a medium-sized business over time. Rewards usually entail personal independence and a concurrent cash flow from the business. The amount of revenue 26 and jobs are usually directly related to the money and resources that are injected into the business. Jobs created are usually non-tradable, meaning its geographically fixed in one area. Table 1. Small Medium Enterprise (SME) and Innovation Driven Enterprise (IDE) Small/Medium Business Enterprise Innovation Driven Enterprise Local & Regional markets only Focus on Global / Regional markets Innovation is not necessary and not a Based on innovations (technology,  competitive advantage Business Models / Process) Non-Scalable jobs (restaurant, dry cleaner, Scalable Jobs. Do not have to be performed etc.) locally. Family Business or businesses with little More diverse ownership base, including external money external capital owners Growth is linear Growth starts with losing money, if successful exponential growth follows More relevant analysis from the Kauffman Foundation today, as they released a new report examining the differences between types of entrepreneurs. This piggybacks on a couple of our recent posts about the need to look at these different types of businesses in order to understand their specific needs and challenges, and to be able to support them accordingly. The new report makes the distinction between Innovation Driven Enterprises (IDEs) and Small and Medium Enterprises (SMEs): “Policymakers and pundits who use entrepreneurship as a “catch-all” phase to capture a single economic activity make an important mistake. There are two distinct types of entrepreneurship with different 27 economic roles, requiring individually tailored policies to support each”. The primary difference between IDEs and SMEs is their purpose: IDEs seek to bring innovations to global markets, while SMEs seek to build traditional and well-understood businesses that serve local demand. Both start off small and require an entrepreneur with the drive and persistence to make their business a success. Both have the potential to create jobs. But the paths that they will take and their ultimate goals vary greatly– and this has implications for the policies, products, and services that are made available to each. IDEs require an investment to develop the innovation that they hope will be able to be scaled and marketed to a wide range of consumers. The upfront investment for these businesses is typically riskier. Given that these businesses are bringing new and untested ideas into the market, the probability that they will fail is higher. On the flip side, if they succeed, the potential for high growth is significant. To reach this wide audience, a successful IDE has the potential to create many jobs and have an impact on the market itself, and the economy overall. SMEs, on the other hand, serve a very different consumer base with a very different product. As mentioned above, they seek to bring traditional ideas to local markets. The Kauffman study explains that their success is based on their business acumen, execution of their idea, and local demand. The growth of SMEs is more linear, as they are unlikely to take off the way that successful IDEs can, but they too can create jobs and impact their communities. As we’ve 28 asserted repeatedly, SMEs are the backbone for many local economies– they help provide jobs at the local level that move people out of unemployment, especially during downturns in the economy. Lumping these different types of entrepreneurs in the same category means that their divergent needs and challenges will not be met in the most effective way. SMEs, however, need more traditional business loans to purchase equipment, secure a storefront, meet payroll, etc. From lending services to public policy, taking into account these important differences– and understanding that each will require different metrics of success– can help enable them both to make greater contributions in their markets and in the economy. (Shalley et. al, 2015) Lesson 4. Organization-driven vs market-driven ideas In this lesson we start by exploring why its important for organization to be customer-and market-driven, and examine the three essentials activities management teams focus on to make it happen. “The purpose of business is to create a customer” – Peter F. Ducker It is hard to find an organization that does not talk about being customer-driven. When a company stresses this idea, it is signaling to the organization to listen more deeply to customers, share this information broadly within the company, and to deliver solutions that 29 almost sell themselves. Companies like Amazon, Zappos, and Nordstrom immediately come to mind as companies known to be customer-driven. The question is not whether organizations should be customer-driven; of course, they should. The question becomes what are the best practices, and what are the benefits? That is, how does one take wanting to be customer-driven, and turn that into action? (Takenaka, 2007) Why is Being Customer-Driven Important?  “The customer is the foundation of business and keeps it in existence” – Peter F. Ducker In other words, the customer decides what’s valuable and worth paying for, not the business. By focusing on delivering solutions that help customers be successful, business results follow (see Figure 1). This simple principle is critical to business success. Let’s take a quick look at how this plays out in everyday life. An easy place to look is the fast food industry. Take KFC’s long gone “Nacho Box”—it looked enticing in the marketing images, but what the customers received was quite different. Unhappy customers shared their disappointment with others online, “It looks more like week-old garbage mixed with surgery leftovers!” As complaints mounted, it disappeared from the menu. Oops! 30 A more serious example is the United Airlines merger with Continental Airlines. Aggressively integrating the two companies without thinking through the customer impacts resulted in widespread service disruptions and stranded passengers. Upset customers bailed. When United felt it in their bottom-line profitability, their CEO issued an open letter to customers, stating: “Simply put, we haven’t lived up to your expectations or to the promise and potential of that day. That’s going to change. We are committed to re-earning your trust.” In the end, customers can keep even large companies humble! The power of the customer has risen dramatically in recent years—largely due to social media tools that make it easy and fun to share experiences and influence others—and do so on a scale never seen before. The rise of customer-generated content has had a profound impact on many industries. (Barrood et. Al, 2010) Summary The successful exploitation of new ideas is crucial to a business being able to improve its processes, bring new and improved products and services to market, increase its efficiency and, most importantly, improve its profitability. Marketplaces - whether local, regional, national or global - are becoming highly competitive. Competition has increased as a result of wider access to new technologies and the increased trading and knowledge-sharing opportunities offered by the Internet. 31 This guide explains how you can make innovation a key business process and outlines the different approaches you can take. It gives you advice on planning for innovation and creating the right business environment to develop your ideas. It also outlines the help and support available to innovative businesses. The business case for innovation Approaches to innovation Planning innovation Encourage innovation in your business Funding innovation It is important to be clear about the difference between invention and innovation. Invention is a new idea. Innovation is the commercial application and successful exploitation of the idea. Fundamentally, innovation means introducing something new into your business. This could be: improving or replacing business processes to increase efficiency and productivity, or to enable the business to extend the range or quality of existing products and/or services developing entirely new and improved products and services - often to meet rapidly changing customer or consumer demands or needs adding value to existing products, services or markets to differentiate the business from its competitors and increase the perceived value to the customers and markets 32 Innovation can mean a single major breakthrough – e.g., a totally new product or service. However, it can also be a series of small, incremental changes. Whatever form it takes, innovation is a creative process. The ideas may come from: inside the business, e.g., from employees, managers or in-house research and development work outside the business, e.g., suppliers, customers, media reports, market research published by another organization, or universities and other sources of new technologies Success comes from filtering those ideas, identifying those that the business will focus on and applying resources to exploit them. Introducing innovation can help you to: improve productivity reduce costs be more competitive  build the value of your brand establish new partnerships and relationships increase turnover and improve profitability Businesses that fail to innovate run the risk of: losing market share to competitors falling productivity and efficiency 33 losing key staff experiencing steadily reducing margins and profit going out of business  34 References Barrood, J.C., Moran, B., (2010). Entrepreneurship and Innovation. Fairleigh Dickinson University Carayannis, EE.G, Samara, E.T., Bakouros, Y.L., (2015), Innovation and Entrepreneurship: Theory, Policy and Practice. Springer International Publishing Switzerland Drucker, Peter F (2015), Innovation and Entrepreneurship: Practice and Principles. Harper and Row Publisher Satalkina, L., Steiner, G., (2020), Digital Entrepreneurship and Its Role in Innovation Systems: A systematic Literature Review as Basis for Future Research Avenues for Sustainable Transitions., MDPI. 10.3390/su12072764 Shalley, C.E., Hitt, M.A., Zhou, J. (2015). The Oxford Handbook of Creativity, Innovation and Entrepreneurship. Oxford University Press Takenaka, Shiego (2007). Entreprenuership Development for Competetive Small and Medium Enterprise. Asian Productivity Organization, Tokyo ISBN: 92-833- 7061-9 35 MODULE 2 CUSTOMERS Introduction  A customer is an individual or business that purchases another company's goods or services. Customers are important because they drive revenues; without them, businesses cannot continue to exist. Customers are the individuals and businesses that purchase goods and services from another business. To understand how to better meet the needs of its customers, some businesses closely monitor their customer relationships to identify ways to improve service and products. The way businesses treat their customers can give them a competitive edge. Although consumers can be customers, consumers are defined as those who consume or use market goods and services. A customer is a person or company that receives, consumes or buys a product or service and can choose between different goods and suppliers. The main goal of all commercial enterprises is to attract customers or clients, and make them purchase what they have on sale. They also try to encourage them to keep coming back. At the core of marketing is having a good understanding of what the customer needs and values. We often refer to customers who have a relationship with the supplier as clients. Also, people who hire the services of a professional are clients, not customers. For example, a lawyer has clients. 36 When a customer buys something, the seller immediately focuses on the next one. However, with a client, the aim is to cultivate the relationship. (Drucker, 2015)  Learning Outcomes At the end of this module, students should be able to: 1. Understand and experience the entrepreneurial process from the generation of creative ideas, 2. Understand the market needs or provide a solution to a key problem, 3. explore the feasibility and creation of a business enterprise, 4. implementation of creative ideas into real products, and 5. experience the dynamics of participating on a business team, create and present a business plan for a technology idea. All of the objectives and the activities of the course should provide the background, tools, and life skills to participate in the entrepreneurial process within a large company as an engineer, in a new venture, or as an investor. Lesson 1. Customer Needs, Pain Points and Demographics Identifying Customer Needs Identifying customer needs is mission-critical for businesses looking to create a product that truly speaks to their customers’ problems. Not to mention, the easiest way to position your brand smartly in the market is to unite your internal teams behind the specific needs of your customers. 37 What are customer need? Customer needs are the named and unnamed needs your customer has when they come in contact with your business, your competitors, or when they search for the solutions you provide. To identify the needs of your customers, solicit feedback from your customers at every step of your process. You can identify customer needs in a number of ways, for example, by conducting focus groups, listening to your customers or social media, or doing keyword research. However, identifying the needs of your customers is easier said than done. In our experience, there are a couple easy ways to gain insight into what your customers need from you. Methods to Identify Customer Needs: 1. Focus Groups 2. Social Listening 3. Keyword Research What are Customer Pain Points? A pain point is a specific problem that prospective customers of your business are experiencing. In other words, you can think of pain points as problems, plain and simple. Like any problem, customer pain points are as diverse and varied as your prospective customers themselves. However, not all prospects will be aware of the pain point they’re experiencing, which can make marketing to these individuals difficult as you effectively have to help your prospects realize they have a problem and convince them that your product or service will help solve it. 38 Although you can think of pain points as simple problems, they’re often grouped into several broader categories. Here are the four main types of pain points:  Financial Pain Points: Your prospects are spending too much money on their current provider/solution/products and want to reduce their spend Productivity Pain Points: Your prospects are wasting too much time using their current provider/solution/products or want to use their time more efficiently Process Pain Points: Your prospects want to improve internal processes, such as assigning leads to sales reps or nurturing lower-priority leads Support Pain Points: Your prospects aren’t receiving the support they need at critical stages of the customer journey or sales process Viewing customer pain points in these categories allows you to start thinking about how to position your company or product as a solution to your prospects’ problems, and what is needed to keep them happy. For example, if your prospects’ pain points are primarily financial, you could highlight the features of your product within the context of a lower monthly subscription plan, or emphasize the increased ROI your satisfied customers experience after becoming a client. However, while this method of categorization is a good start, it’s not as simple as identifying price as a pain point before pointing out that your product or service is cheaper than the competition. Many prospective customers’ problems are layered and complex, and may combine issues from several of our categories above. That’s why you need to view your customers’ pain points holistically, and present your company as a solution to not just one 39 particularly problematic pain point, but as a trusted partner that can help solve a variety of problems. (Takenaka,2007) Lesson 2. Market Research and Validation Market research is essential when you try to validate an idea. It gives you feedback and insight on the market you are trying to enter. Keep in mind that this is not a typical market research which you do as part of developing your business strategy. Your goal here is to check competitors and look for trends in the messages, keywords, channels, and marketing tactics that they use. When I do market research for a new idea, I usually focus on three areas: Competitor analysis Communication channel mix Keyword research I often hear idea owners say that they don’t have competitors, because no one else is doing the same thing as them. However, that’s rarely true. In a broad sense, every company that serves the needs of your potential target group is your competitor. To be a bit more precise, you should consider your competition to be whatever solution your target audience currently uses to solve the problem you are trying to solve. Another way to define is to separate direct and indirect competitors. Direct competitors serve the same target group as you with a product or service similar to yours. 40 Indirect competitors serve the same target group as you with a different service or product. Or they serve another target group with a product or service similar to yours. (Carayannis et. al, 2015) Why is competitor analysis important? Simply knowing who your competitors are and what they offer is not enough. Knowing as much as you can will help you to choose your future goals, channels, and marketing tactics. Running a competitor analysis will: Indicate the intensity of your competition Help identify areas where you can stand out How do you identify your competitors? Use the customer validation data The best place to identify competitors is by asking your target audience. Since the first step of the idea validation process is customer validation, you should already have this data. Go through your interview material and survey results and look for the solutions, brands, and tools your target audience mentioned. Whatever they currently use to solve their problems or reach their goals will be your competition. 41 Conduct a Google search This method will help us identify competitors who are strong in SEO. This is mainly manual, but usually worth the time. Let’s walk through the steps: 1. Define keywords that are related to your idea and industry.  2. Research keywords in Google and collect the competitors it shows. 3. Check if these are really competitors. Use online tools If you identified one or two competitors with the previous methods, you can use online tools to find other similar sites. However, these tools only work with high-traffic websites, so if your competitors’ website traffic is low, they won’t give you further options. (Barrood et.al, 2010) 42 Summary  A customer is a person or company that receives, consumes or buys a product or service and can choose between different goods and suppliers. The main goal of all commercial enterprises is to attract customers or clients, and make them purchase what they have on sale. They also try to encourage them to keep coming back. At the core of marketing is having a good understanding of what the customer needs and values. We often refer to customers who have a relationship with the supplier as clients. Also, people who hire the services of a professional are clients, not customers. For example, a lawyer has clients. 43 References Barrood, J.C., Moran, B., (2010). Entrepreneurship and Innovation. Fairleigh Dickinson University Carayannis, EE.G, Samara, E.T., Bakouros, Y.L., (2015), Innovation and Entrepreneurship: Theory, Policy and Practice. Springer International Publishing Switzerland Drucker, Peter F (2015), Innovation and Entrepreneurship: Practice and Principles. Harper and Row Publisher Satalkina, L., Steiner, G., (2020), Digital Entrepreneurship and Its Role in Innovation Systems: A systematic Literature Review as Basis for Future Research Avenues for Sustainable Transitions., MDPI. 10.3390/su12072764 Shalley, C.E., Hitt, M.A., Zhou, J. (2015). The Oxford Handbook of Creativity, Innovation and Entrepreneurship. Oxford University Press Takenaka, Shiego (2007). Entreprenuership Development for Competetive Small and Medium Enterprise. Asian Productivity Organization, Tokyo ISBN: 92-833- 7061-9 44 MODULE 3 COMPETITIVE ADANTAGE, MARKET  Introduction Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service. Competitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival. Competitive advantages can be broken down into comparative advantages and differential advantages. Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins. A differential advantage is when a company's products are seen as both unique and higher quality, relative to those of a competitor. Competitive advantages generate greater value for a firm and its shareholders because of certain strengths or conditions. The more sustainable the competitive advantage, the more 45 difficult it is for competitors to neutralize the advantage. The two main types of competitive advantages are comparative advantage and differential advantage. Comparative Advantage A firm's ability to produce a good or service more efficiently than its competitors, which leads to greater profit margins, creates a comparative advantage. Rational consumers will choose the cheaper of any two perfect substitutes offered. For example, a car owner will buy gasoline from a gas station that is 5 cents cheaper than other stations in the area. For imperfect substitutes, like Pepsi versus Coke, higher margins for the lowest-cost producers can eventually bring superior returns. Economies of scale, efficient internal systems, and geographic location can also create a comparative advantage. Comparative advantage does not imply a better product or service, though. It only shows the firm can offer a product or service of the same value at a lower price. For example, a firm that manufactures a product in China may have lower labor costs than a company that manufactures in the U.S., so it can offer an equal product at a lower price. In the context of international trade economics, opportunity cost determines comparative advantages. Amazon is an example of a company focused on building and maintaining a comparative advantage. The ecommerce platform has a level of scale and efficiency that is difficult for retail competitors to replicate, allowing it to rise to prominence largely through price competition. Differential Advantage 46 A differential advantage is when a firm's products or services differ from its competitors' offerings and are seen as superior. Advanced technology, patent-protected products or processes, superior personnel, and strong brand identity are all drivers of differential advantage. These factors support wide margins and large market shares.  Apple is famous for creating innovative products, such as the iPhone, and supporting its market leadership with savvy marketing campaigns to build an elite brand. Major drug companies can also market branded drugs at high price points because they are protected by patents (Takenaka, 2007) Learning Outcomes At the end of this module, students should be able to: 1. Understand and experience the entrepreneurial process from the generation of creative ideas, 2. Understand the market needs or provide a solution to a key problem, 3. explore the feasibility and creation of a business enterprise, 4. implementation of creative ideas into real products, and 5. experience the dynamics of participating on a business team, create and present a business plan for a technology idea. All of the objectives and the activities of the course should provide the background, tools, and life skills to participate in the entrepreneurial process within a large company as an engineer, in a new venture, or as an investor. 47 Lesson 1. Classes of Competitors A competitor is a firm that has potential to take your customers. The products, positioning, distribution, promotion, reputation, brand identity, business model, costs and pricing of competitors is a key concern of strategic planning and operations for many firms. The following are the basic types of competitor. Direct A firm that sells the same products and services as you in the same. Indirect A firm that sells different categories of products and services but are in the same industry and same market. For example, a café and restaurant in the same city are indirect competitors Replacement A firm that sells products and services that are in a different industry that could be used as a substitute for your products. For Example, a restaurant and a supermarket in the same city. Potential A direct, indirect or replacement competitor that currently has no distribution in your markets. For example, an organic cosmetics company that is popular in Europe but that has no sales capabilities in the United States represents a potential competitor for American cosmetics firms Future A firm that has business capabilities that would allow them to quickly take market share if they entered your market. For example, a large technology company may be perceived as a 48 computer of smaller technology firms even if they haven’t entered their market yet. (Barrood et. Al, 2010) Lesson 2. Market Structures Types of Market Structures A variety of market structures will characterize an economy. Such market structures essentially refer to the degree of competition in a market.  There are other determinants of market structures such as the nature of the goods and products, the number of sellers, number of consumers, the nature of the product or service, economies of scale etc. We will discuss the four basic types of market structures in any economy. One thing to remember is that not all these types of market structures actually exist. Some of them are just theoretical concepts. But they help us understand the principles behind the classification of market structures. (See Figure and Table) Figure 2 :Type of Market Structures (Takenaka, 2007) 49 A. Perfect Competition In a perfect competition market structure, there are a large number of buyers and sellers. All the sellers of the market are small sellers in competition with each other. There is no one big seller with any significant influence on the market. So, all the firms in such a market are price takers. There are certain assumptions when discussing the perfect competition. This is the reason a perfect competition market is pretty much a theoretical concept. These assumptions are as follows, The products on the market are homogeneous, i.e., they are completely identical All  firms only have the motive of profit maximization There is free entry and exit from the market, i.e., there are no barriers And there is no concept of consumer preference B. Monopolistic Competition This is a more realistic scenario that actually occurs in the real world. In monopolistic competition, there are still a large number of buyers as well as sellers. But they all do not sell homogeneous products. The products are similar but all sellers sell slightly differentiated products. Now the consumers have the preference of choosing one product over another. The sellers can also charge a marginally higher price since they may enjoy some market power. So, the sellers become the price setters to a certain extent. 50 For example, the market for cereals is a monopolistic competition. The products are all similar but slightly differentiated in terms of taste and flavors. Another such example is toothpaste. C. Oligopoly In an oligopoly, there are only a few firms in the market. While there is no clarity about the number of firms, 3-5 dominant firms are considered the norm. So, in the case of an oligopoly, the buyers are far greater than the sellers. The firms in this case either compete with another to collaborate together, they use their market influence to set the prices and in turn maximize their profits. So, the consumers become the price takers. In an oligopoly, there are various barriers to entry in the market, and new firms find it difficult to establish themselves. D. Monopoly In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power. Consumers do not have any alternative and must pay the price set by the seller. Monopolies are extremely undesirable. Here the consumer loses all their power and market forces become irrelevant. However, a pure monopoly is very rare in reality. (Drucker, 2015) 51 Table 2: Comparing Market Types 52 Assessment Task This activity is by group. You may choose your own groupmates from your class. Minimum of 3 and maximum of 5 per group. TECHNOPRENEURSHIP BUSINESS PLAN PROPOSAL Section I: Executive Summary 1.1 Business Ideas and Goals 1.2 Marketing 1.3 Operations 1.4 Finance Section II: Background a. Company Profile b. Business Goals of the Project c. Management Profile Discussions: Particular Description Section I: Executive Summary 1.1 Business Ideas and Goals Highlight the key points of your proposal and business. (Do not explain the 1.2 Marketing terms) 1.3 Operations 1.4 Finance 53 Section II: Background 2.1 Company Profile Company Name of the company Type of company Capital structures Registration and operating license Business address Briefly discuss what the company does Other key information Shareholders Name and Individual particulars; Equity stake; Other particulars Assets and Liabilities Outline major assets / liabilities, worth and other particulars Philosophy Vision and Mission (what it intends to become and how it will be achieved); Internal value system; The value creation for customers and stakeholders 2.2 Business Goals of the Project Product and Services Describe the new business and the business model used; Identify and explain market demands; Why customers will buy (use) it; feasibility of the business (now and in the future) Innovation Is it process? Product? (Explain) Feasibility Estimate anticipated profits Technology Describe the technology application to the business; In-house capacity and capability or outsource activities; Cost and implementation issues that need explanation;  54 Copyrights, IP, technology transfer issues if applicable 2.3 Management Profile Directors and Senior Staff Name; Profile; Experience and Responsibilities Organization Organization structures Initial Staffing structure and duties; Functional grouping Employee work-force set up and distribution Staff capabilities Current cost structure Future manpower projections Professional advisers (if any) which are contracted to assist Insurance and compensation schemes which company takes Shareholder Exit Strategy Liquidation of equity interest due to exit of shareholders; Methods of validation and disposal Note: o Should submit 1 week before the schedule of Prelim Exam via email:[email protected] Subject: Group No. 1_Technopreneurship Business Proposal_Prelim o Format will be posted to the group. For any clarification / concerns please post to our FB Messenger  55 Summary Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service. Competitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival. Competitive advantages can be broken down into comparative advantages and differential advantages. Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins. A differential advantage is when a company's products are seen as both unique and higher quality, relative to those of a competitor. Competitive advantages generate greater value for a firm and its shareholders because of certain strengths or conditions. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. 56 References Barrood, J.C., Moran, B., (2010). Entrepreneurship and Innovation. Fairleigh Dickinson University Carayannis, EE.G, Samara, E.T., Bakouros, Y.L., (2015), Innovation and Entrepreneurship: Theory, Policy and Practice. Springer International Publishing Switzerland Drucker, Peter F (2015), Innovation and Entrepreneurship: Practice and Principles. Harper and Row Publisher Satalkina, L., Steiner, G., (2020), Digital Entrepreneurship and Its Role in Innovation Systems: A systematic Literature Review as Basis for Future Research Avenues for Sustainable Transitions., MDPI. 10.3390/su12072764 Shalley, C.E., Hitt, M.A., Zhou, J. (2015). The Oxford Handbook of Creativity, Innovation and Entrepreneurship. Oxford University Press Takenaka, Shiego (2007). Entreprenuership Development for Competetive Small and Medium Enterprise. Asian Productivity Organization, Tokyo ISBN: 92-833- 7061-9 57