ENT 211 Cont'd PDF

ENT 211 CONT’D Difference between Feasibility Study & Business Plan Content: the feasibility study includes an analysis of the projects overall concepts market research technical requirements financial projects and the potential risks and recommendations while a business plan is a detailed doc...

ENT 211 CONT’D Difference between Feasibility Study & Business Plan Content: the feasibility study includes an analysis of the projects overall concepts market research technical requirements financial projects and the potential risks and recommendations while a business plan is a detailed document that outlines the company's mission-mission goals, the organizational structure, marketing strategy & the marketing and sales plans. It delves into the specifics of how the business will operate and being implemented. Timing: feasibility study is written at the outset of a project or business idea to access its potential feasibility to help stakeholders to decide whether to move forward with the project or not while a business plan is typically created after the feasibility study once it has been determined that the project is what undertaking. The provide a guide for the operations of The venture. Target Audience: the feasibility study’s primary audience includes project stakeholders investors and decision makers only to determine whether the project should proceed or not while a business plan is used to communicate the business vision and strategy to a wider audience including potential investors, lenders, partners and employees. innovation is the process of creating an implementing new ideas. It's also includes the creation and implementation of process products services that enhances organizational performance growth and improves competitive advantage. It is all about creativity and not necessarily inventing but adding value to goods. Types of innovation: (I) Product Innovation: creating new products when improving existing ones. (II) Process innovation: it includes the introduction of new ways in which product is made or delivered. E.g. the introduction of artificial intelligence in the workflow and supply chain of an organization to increase efficiency, reduce costs, improve quality and enhance speedy delivery of service. (III) Business model innovation: changes that occur in the way a company generates value delivers its products or monetize its service- market segmentation. (IV) Service innovation: involves the announcement of customers’ experience by improving service delivery and adding value to the existence services. (V) Organizational innovation: changes in business structure management techniques to foster growth. (VI) Marketing innovation: improving marketing services by using new distribution channels. NB: The 4 ps of marketing includes product, price, place & promotion. the dimensions of innovation includes: (I) Incremental innovation: it is the small continuous improvement to an existing product. (II) Radical innovation: fundamental change to the product of an organization- destructive innovation. It can totally change an organization. (III) Sustaining innovation: improvement of existing products in ways that align with existing customers expectation and market needs. (IV) Destructive innovation: is Wonder initially target to a niche market (a segment in the market) shut down the served but eventually displace market leaders. (V) Close innovation: Don within the confines of a company's research and development (R&D) departments and the strategy team of an organization. (VI) Open innovation: it is done in collaboration with external partners. (VII) Technological innovation: leverages on technology to improve process and products. (VIII) Non-technological innovation: it is normally reliant on new technology. This includes improvement on business model, customer relationships, organizational culture and principles, etc. (IX) Social innovation: it addresses to social challenges and improves social well- being. Eg. establishment of micro-finance & cooperative financial system. (X) Design thinking and user centric innovation: emphasizes empathy, ideation and prototyping and iterative testing that creates solution to problems of end users. Innovation Ecosystem: organizations ability to innovate usually depends on its innovative ecosystem which includes internal and external environment that fosters creativity and invention. Internal ecosystem of innovation includes: (I) Innovation culture: basically involves experimentation of business ideas. (II) Risk-taking culture: calculated risk (III) Reward creativity: reward to Foster ideation and invention eg. promotion. (IV) Leadership and vision: it involves promoting closed innovation as a leader (V) Funding of research and development investment External ecosystem includes: (I) Industry collaboration (co-innovation) (II) Customer involvement (III) Regulatory involvement  (IV) Funding of venture capital These are the key enablers of innovation in business: (I) Leadership support (II) Talent and skills (III) Investment in technology and tools (IV) Ability and adaptability (V) Cultural experimentation Challenges to innovation includes: (I) Resistance to change (fear of the unknown) (II) Resource constraints (III) Short time focus (IV) Market uncertainty Change & innovation are closely related in the business world but are not exactly the same. Change: refers to the process of transitioning from one state or condition to another e.g. changing strategy, process, structure (tall, flat, matrix, hybrid, etc). Innovation: is the process of creating an adding new ideas, process and products that add value to an existing product or service. Change is often incremental while innovation is usually transformative. Change can happen without innovation When customers pay for a change, it becomes innovation, but when they do not, the change is static. A change that is commercialized is innovation, but a change that is not commercialized is invention. Innovation often drives change while change can serve as a catalyst of precursor for innovation. Example of change driven by innovation is technological change, process change, cultural change & structural change. Why do people refuse change? Here are some factors: (I) Fear of the unknown (II) Inertia and comfort zone  (III) Lack of resources (IV) Cultural barriers Here are some ways to overcome resistance to change: (I) Clear communication of vision (II) Involvement of employees in innovation process (III) Provision of necessary provision of necessary training and provision of resources, and (IV) Fostering experimentation and failure culture Key steps to managing change: (I) Establishment of sense of urgency (II) Building a vision and strategy (III) Measuring of progress (IV) Engagement of stakeholders (V) Training of employees Too much change can lead to instability & chaos. Here are some ways to balance innovation with stability: (I) Implementation of change and innovation in phases. (II) Sustaining core operations, and (III) Managing risk Organizational agility is the ability to rapidly withstand and adapt to opportunities as a result of environmental changes. An angel organization are those that have organizational agility. To become an agile organization, firms must: (I) Embrace continuous learning culture. (II) Have the centralized decision making. (III) Foster collaboration. (IV) Stay consumer focused. Knowledge and innovation in business are also related because knowledge serve as a foundation for innovation an innovation involves applying knowledge to business to create value. Knowledge in business is could be implicit and tacit Explicit knowledge means qualified information like data, document and procedures.  Tacit knowledge means personal experiences and intuitions held by individuals through experience. Innovation generate knowledge Types of knowledge includes technical, market, organizational and relational. Knowledge management can be defined as a systematic process of creating, sharing an applying knowledge within an organization in order to enhance performance. Key concepts of knowledge management include knowledge creation, knowledge sharing, knowledge storage, knowledge access & knowledge application. Types of knowledge based innovation models include: (I) Open innovation (II) Crowd sourcing (III) Knowledge intensive business service (KIBS) The challenges in leveraging knowledge for innovation include: (I) Sinos and knowledge fragmentation (II) Tacit knowledge transfer (III) Knowledge obsolescence: when knowledge is no longer useful. (IV) Cultural barriers. Building knowledge innovative culture involves: (I) The encouragement of collaboration (II) Investment in research and development (III) Leverage of artificial intelligence (IV) Leveraging on external knowledge, and (V) Promoting lifelong learning. Types of entrepreneurial risks include financial, psychological, emotional & physical. Skill is the know-how, competence and ability to drive the entrepreneurial spirit. Modern entrepreneurship skills span across technical skills, interpersonal skills & cognitive skills that enables entrepreneurs to sustain their business. Competitive advantage is the extra edge one has against his or her closest rivals in business Contemporary entrepreneurship skills:  (I) Innovative and creativity skills (II) Digital literacy skills: rich wider audience (III) Adaptability and agility skills (IV) Emotional management skills (EQ.): involves empathy (V) Networking and relationship building skills. (VI) Resilience and grit skills: resilience is the ability to recover from setbacks why great refers to perseverance and passion for long-term goals. NB: a serial entrepreneur is one that keeps trying until he or she is successful. (VII) Financial literacy and financial management skills: financial literacy involves understanding key financial concepts such as budget, financial forecasting, cash book, invoice, equity ratio, profit where she wants so on while financial Management involves how to effectively manage and organization’s finance. (VIII) Strategic thinking and vision skills: strategic thinking is the ability to analyze the competitive environment and also forecast future trends and developed long- term vision for the business. NB: ESG means Environmental Social & Governance (IX) Sales & marketing skills (X) Leadership & team management skills: Type of leadership…autocratic, Laissez- Faire, transformative, transactions, situational (contingency) (XI) Problems solving and decision making skills (XII) Technological proficiency skills: to be able to apply developing an emerging technology to businesses for the development. (XIII) Cultural winners and global thinking (XIV) Risk management skills (XV) Time management and productivity skills. The opportunity approach to entrepreneurship insists that the environment is a critical factor. There are external and internal environment in entrepreneurship Entrepreneurs must adapt with changing environments. These are some of the challenges to entrepreneurship in Nigeria: (I) Inflation (II) Poverty (III) Cost of doing business (IV) Variation Of data (V) Price resistance  (VI) Price resistance (VII) Poor energy supply (VIII) Low standard of living (IX) Infrastructural deficiency Entrepreneurial skills can either be by nature or nurture. Here are ways to solve entrepreneurial problems: (I) Global awareness (II) Record keeping (III) Advertising skills (IV) Learning government programs The entrepreneurial environment in Nigeria is harsh. Entrepreneurship involves identifying, appraising, acquiring resources, and exploiting opportunities.