Essentials of Innovation & Entrepreneurship (EIE) - I PDF

Essentials of Innovation & Entrepreneurship (EIE) - I Module [M2]: Cultivating an Entrepreneurial Mindset + Seeking Opportunities  EIE - I EIE M1 Session – Poll/Mentimeter Results  EIE - I EIE M1 Session Quiz - Discussion  EIE - I...

Essentials of Innovation & Entrepreneurship (EIE) - I Module [M2]: Cultivating an Entrepreneurial Mindset + Seeking Opportunities  EIE - I EIE M1 Session – Poll/Mentimeter Results  EIE - I EIE M1 Session Quiz - Discussion  EIE - I Today’s Topics Entrepreneurial Mindset Overview Growth vs. Fixed Mindset Creativity, Teamwork, Adaptability, Dealing with Failure Why Problems are an Entrepreneur’s Best Friend! And what to do about it? ‘NABC’ Approach  EIE - I Mastering the Entrepreneurial Mindset Entrepreneurial Mindset (EM) is learnable You can condition your attitude How: Get Started x Practice x Time PES University | April 2024  EIE - I Your entrepreneurial journey begins here! PES University | April 2024  EIE - I The Heart of Entrepreneurship: The Entrepreneurial Mindset Common thread across all types of entrepreneurship - Startup, Non-profit, Corporate, Government, etc Applies to extra-entrepreneurial context as well! Cultivate a mindset that will guide you in your entrepreneurial and innovation journey PES University | April 2024  EIE - I Video: Why Entrepreneurial Mindset Matters (3 mins)  EIE - I Growth vs. Fixed Mindset Source: Internet Also watch Video: Developing a Growth Mindset with Carol Dweck (10m)  EIE - I Entrepreneurial Mindset Cards: A Catalog with Prompt Questions Self-Activity: Respond to the prompt questions: What Actions will *you* take? Test yourself again after some time to see the change EIE - I EIE - I EIE - I  EIE - I Deep Dive: Let’s Pick a Few… Creativity Adaptability Dealing with Failure Teamwork PES University | April 2024  EIE - I Creativity lies at the intersection of projects that bring new ideas and value addition together. Example: A new feature makes things easier A service that meets a need better Improving what users already have Video: The Art and Science of Creativity - Tom Kelley at TEDxTokyo (13m) PES University | May 2024  EIE - I Teamwork A collaborative effort of a group of individuals working together towards a common goal. PES University | May 2024  EIE - I Video: Teamwork related Simon Sinek: Steve Jobs: NBA: What Makes a Team Great? (2:30m) Managing people (2:30m) Teamwork San Antonio Spurs (2:30m)  EIE - I Adaptability It is the capacity to adjust and change in response to new circumstances, challenges, or opportunities (can be personal, startup, career, etc in nature) PES University | May 2024  EIE - I Video: Adaptability related 3 ways to measure your adaptability HBR Explainer: and how to improve it | Natalie Fratto Balancing Execution and Adaptation How to Adapt to Changing Times Andrew Grove, "Strategic Inflection Points" - Simon Sinek 1996 MIT Industry Leaders Program Lecture  EIE - I Dealing with Failure Failure, the unexpected teacher that guides entrepreneurs through the maze of innovation. It's the catalyst for growth, the spark that ignites resilience and adaptability. PES University | April 2024 “Failure is an option here. If things are not failing, you are not innovating enough.” - Elon Musk PES University | April 2024  EIE - I Video: Dealing with Failure Elon Musk on Failure How to Overcome your Mistakes "The Fringe Benefits of Failure" J.K. Rowling Tesla (0:25m) Ted-Ed (4:51m) Harvard Commencement speech (21m) PES University | April 2024  EIE - I What do all these people have in common? PES University | April 2024  EIE - I What do all these people have in common? They overcame crushing failures before becoming extremely successful! PES University | April 2024  EIE - I Elon Musk’s ‘Failure Resume’ Source: Internet PES University | April 2024  EIE - I Dealing with Failure PES University | April 2024  EIE - I Post-Session Activity – Failure Resume Can you come up with your own ‘Failure Resume’? Capture 3 (total) of your biggest failures across: School/Education Sports Competition(s) Personal Goals For each of your failures, capture your response to below questions: My Biggest Failure Taught Me... And Changed My Behavior By…. I Will Reflect On My Next Failure By …  EIE - I "Ask the Founders” (live interview)  EIE - I Best way to Generate Ideas? Don’t Look for Ideas, Look for Problems!!  EIE - I Most of the time, we overlook many problems…  EIE - I Memo at Western Union (1878)  EIE - I Business Week (1968)  EIE - I Leo DeForest Radio Pioneer & Inventor of the Vacuum Tube (1926)  EIE - I Charles Duell, Commissioner, U. S. Office of Patents (1899)  EIE - I So, What Can you Do?  EIE - I Post-Session Activity: Before Dismissing a Problem Next time you come across a problem and want to dismiss it, can you try: Is there some aspect of the problem/idea you like? Are there other problems you think worth solving that are similar to this problem? What are some assumptions that made you dismiss the problem? Can you test those assumptions? 3 powerful words “How Might We ….” “How might we design a reusable rocket to reduce cost of the space program? “How might we enable people without credit card to buy using e-commerce? How might we build a foundational Indic LLM model at a fraction of the cost? Can you guess the companies that may have asked the above questions?  EIE - I Capturing a Problem/Idea/Opportunity Statement: NABC* Approach An important client or market need addressed by a unique approach with compelling benefits when compared against the competition or alternatives. * Created by Stanford Research Institute (SRI) – Read the 2-pager here  EIE - I Post-Session Activity: NABC Framework For a problem capture the proposed problem & solution using the NABC framework (internet offers many more/other templates as well)  PES EIE PART 1 Session Quiz Please take the Session Quiz on PESU Academy now 45 Essentials of Innovation & Entrepreneurship (EIE) - I Module (M1): Introduction to Innovation & Entrepreneurship  EIE - I CIE Reel (video)  EIE - I Icebreaker!! Interactive Poll (Mentimeter) Join at www.menti.com use the code: 2182 5259  EIE - I CIE Startup Journey December 2017 January 2018 ( CIE starts in a small office ) ( Student team helped in the Design of CIE! )  EIE - I Now ( New space operational since May 2018 )  EIE - I Welcome to CIE! (video) EIE - I  EIE - I Prof. Sathya Prasad Prof. Lakshmeesha Mr. Madhukar Narasimha Lead Instructor, CIE@RR Lead Instructor, CIE@EC CIE Program Manager ([email protected]) ([email protected]) ([email protected]) E-Cell Department Coordinators Student body (Respective Departments) (EC & RR campus)  EIE - I EIE Teaching Assistants (TA) Chirag C Shekar Anirudh H A Dhruv Tandon Ajay Rao Adithya R  EIE - I CIE Teaching Assistants (TA) Chinmay D Pranav Nair Kaveri Lalith G  EIE - I CIE Social Media Community @cie.pesu Center for Innovation and Entrepreneurship @ PES University @CIECommunity  EIE - I Course Objectives Embrace I&E Mindset Kick Start Your I&E Journey Understanding Transformative Tech-led Changes Developing Business Acumen Prepare for Your Post-University Journey  EIE - I Learning Outcomes I&E Mindset Awareness Idea-to-Market Process Familiarity Technology Transformation Awareness Business Fundamentals Understanding Find like-minded fellow students & build a network  EIE - I Course Outline* M1 Introduction to Innovation and Entrepreneurship M2 Cultivating an Entrepreneurial Mindset M3 Human-Centred Innovation M4 Idea to Market, Opportunity Identification and Ethics M5 Building/Leading Teams in Startups M6 Value Proposition and Protecting your IP M7 Business Model Canvas M8 AI : Reimagining How We Innovate M9 Selling your Idea/Product and Pitching M10 Finance for Startups M11 Developing your Entrepreneurial Action Plan  EIE - I Course Mechanics Credits: 2 Credits (Weekly 2hr) Engagement: Online (recommend you use all other resources: PESU, Dept & CIE) Will include talks by Startup Founders, Industry Experts, PESU Faculty, etc Grading*: S: 90 –100 A: 80 –89 B: 70.-79 C: 60 –69D: 50 –59 E: 40 –49 F: 39 & below Assessment*: CBT - 2 ISAs (25% each) & 1 ESA (50%) References: Technology Ventures: From Idea to Enterprise, McGraw Hill PES University ‘CIE Level 1’ Course - Getting Started With Entrepreneurship VentureLab (Entrepreneurial Skillset and Mindset) European Union (EU) Entrepreneurship Competencies * Proposed, may be tweaked  EIE - I How to Get the Best Out of this Course? Discipline, Perseverance & Commitment (key ingredients of a successful entrepreneur!) Practice the framework/tools you learn (develop skills to use the ‘tools’ ; not formulaic, find out what works best for you) Lots of ‘doing’ in a Team setting (if Team succeeds, you succeed ) (develop skills to use the ‘tools’ ; not formulaic, find out what works best for you/team) Digital Collaboration : -> MS Team (chat/discussion, file sharing etc.) -> Info/articles/relevant news/etc: LinkedIn (CIE), Instagram (@cie.pesu)  EIE - I Student Engagement / Facilitation Online Q/A on MS Teams (Moderated by CIE TAs) Polls Session Quiz on PESU Academy: Important! Offline Department Coordinator (DC) in your respective Department  PES EIE PART 1 How to Get the Best From This Course? Discipline, Perseverance & Commitment Key ingredients of a successful entrepreneur! Find like-minded peers to work with You may find your co-founders for your startup! Practice the framework/tools you learn Develop the skills to use the ‘tools’ ; find out what works best for you Digital Collaboration : Master the different tools/platforms to interact, engage and learn 11 Essentials of Innovation & Entrepreneurship: M1 Introduction to Entrepreneurship  PES EIE PART 1 What is Entrepreneurship? The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. Entrepreneurs do much more than imaginable with much less than seems possible* “Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. Value created can be financial, cultural, or social”** * Source: Stanford University ** Source: EU Entrepreneur Competence Framework 13  PES EIE PART 1 Entrepreneurial vs Entrepreneurship Industry Employment Join Startup Higher Studies Education Self-Employed Family-Biz (Start) Startup 14  PES EIE PART 1 Entrepreneurial vs Entrepreneurship: Example Alex and Sarah work at a company as Project Managers. Alex uses creativity to look for new solutions, helps build new ideas, and takes risks to help build the company Sarah follows her passion for fitness, quits the job, starts a new company to build fitness products Alex is Entrepreneurial, whereas Sarah is an Entrepreneur 15  PES EIE PART 1 Types of Entrepreneurship* Entrepreneurship SME OR MSME IDE Small Medium Enterprises, Innovation Driven Enterprise Micro/Small/Medium Entrep Reach / Location Local Global Cash flow Less cash flow More cash flow Risk Less risk More risk Getting profitable Less time to get profitable More time to get profitable Less Clustered More Clustered Cluster 16 * This is one of many ways to classify Credit: Bill Aulet, MIT  PES EIE PART 1 Buildling Blocks of Entrepreneurship Imagination: envisioning things that do not exist Entrepreneurship: Creativity: applying innovation, applying imagination creating value, to address a challenge thereby inspiring others’ imagination Innovation: applying creativity to generate novel solution(s) 17 Source: Tina Seelig, Stanford Technology Ventures Program  PES EIE PART 1 Imagination Elon Musk Elon Musk's imagination has been at the forefront of Tesla's success. He envisioned a future where electric vehicles would be both practical and desirable 20  PES EIE PART 1 Imagination Meta Smart Glasses: 20  PES EIE PART 1 Imagination Examples from your life where you were most ‘Imaginative’ 19 PES EIE PART 1 Creativity 22  PES EIE PART 1 Innovation Innovation = Invention m u l t i p l i e d b y Commercialization 23 Credit: Bill Aulet, MIT  PES EIE PART 1 Innovation Elements Internal External Attributes Attributes Attitude Culture Imagination Environment Knowledge Resources Source: Tina Seelig, Stanford University 24 Essentials of Innovation & Entrepreneurship: M1 Entrepreneurial Myths and Traits  PES EIE PART 1 Myths of Entrepreneurship Smartest and High Achieving Individualists Born not made High risk takers Charismatic Not disciplined 26  PES EIE PART 1 Common Entrepreneurial Traits 27  PES EIE PART 1 Common Entrepreneurial Traits Ideas and Drive People Skills Workstyle Creativity Leadership Self-challenging Vision Influence Goal oriented Network Building Comfortable with uncertainty Identify opportunities Ability to excite Rarely satisfied Passion others by your vision Entrepreneurial background Exposure: Family biz, working in a startup, know friends doing startups Finance knowledge/exposure Financial savviness 28 Source: Harvard Business Review Entrepreneur’s Handbook Essentials of Innovation & Entrepreneurship: M1 Startup Definition and Overview  PES EIE PART 1 Startup – A Working definition “A startup is a temporary organization designed to search for a repeatable and scalable business model” VIDEO: ‘What we know about Startups’ by Kauffman Founders School Link (first 2 mins) 31  PES EIE PART 1 Startup definition - India Perspective “An entity working towards innovation, development, and commercialization of new products, processes, or services driven by technology or intellectual property” [For latest Startup India [DIPP definition], pls see https://startupindia.gov.in 32  PES EIE PART 1 Gamechanger: Innovation & Entrepreneurship & Technology How will you combine Tech AND Innovation AND Entrepreneurship ? http://epicenter.stanford.edu/page/abou 33 t Essentials of Innovation & Entrepreneurship: M1 India Startup Landscape  PES EIE PART 1 Overview of the Indian Startup Landscape Highlights from Weathering The Challenges – The Indian Tech Startup Landscape Report 2023 (2023 NASSCOM/Zinnov Report) Indian Startup Ecosystem Key Trends Sectors/Market Deep-Tech areas And a lot more! 36 CIE | PES University  PES EIE PART 1 India: 3rd Largest Startup Ecosystem 37  PES EIE PART 1 Indian Startups 40 Top 3 Sectors (2023): EdTech, Enterprise Tech, BFSI (Banking, Financial Systems, Insurance)  PES EIE PART 1 Deep-Tech in startups Top 5 Tech focus areas for Startups: AI, Big Data & Analytics, IoT hardware, AR/VR/MR, Blockchain 41  PES EIE PART 1 Success of Women-Led startups 42  PES EIE PART 1 Foundation for long term success 43  PES EIE PART 1 What 3 ingredients can be useful if you are starting the I&E journey? Join at www.menti.com use the code: 3380 5216 45 PES EIE PART 1 45  PES EIE PART 1 Post Session Activity Your Name Your Photo ’COP’ Canvas Date What are your interests? List 3 of your interests/passions 1. Passion What ‘moves’ you to make 2. the world a better place? 3. Your skills/talents? List 3 capabilities that you are proud of 1. Capabilities Stuff (studies and beyond) 2. that you are good at 3. List 3 problems/challenges that you are Opportunities: problems / motivated to solve Opportunities challenges in disguise 1. 2. 3. 45  PES EIE PART 1 Ikigai (denotes ‘passion that gives value and joy to life’ in Japanese; book) 45  PES EIE PART 1 Post-Session Activity Work up your appetite for the upcoming weeks 1. Take a shot at the ‘COP’ canvas 2. Bonus: Can you reflect on your Ikigai? btw this feeds into #1 (optional but recommend it) 3. Give your session feedback 🡪 Mentimeter 45  PES EIE PART 1 Session Quiz Please take the Session Quiz on PESU Academy now 45 Essentials of Innovation & Entrepreneurship (EIE) - I Module [M3]: Human-Centered Innovation  EIE - I Today’s Topics Human-Centered Innovation Design Thinking Effectuation Credit: Image Creator (Microsoft Bing)  EIE - I EIE M2 Session – Previous Session Recap Join at www.menti.com Use the code: 1223 1463  EIE - I EIE M2 Session Quiz - Discussion Essentials of Innovation & Entrepreneurship (EIE) - I Module [M3]: Design Thinking  EIE - I EIE M3 Session – Participant Opinion Join at www.menti.com Use the code: 1223 1463  EIE - I Guest Lecture by: Prof. Chitra Vishwanathan Director of the B.Design Program @ PES University 25+ years of professional experience: Design, Advertising, Entrepreneurship and Teaching EIE - I EIE - I Source: Harvard Business Review  EIE - I Design Thinking: Overview Design thinking: A process for creative problem solving IDEO Founder David Kelley, coined the term Design Thinking David Kelley founded d.school (@ Stanford Univ) Helped develop Apple’s 1ˢᵗ mouse, Palm V PDA, etc. Not just Tech, but for Space, Medical, etc (see here more details)  EIE - I Design Thinking Desirability → User Feasibility → Tech Viability → Business  EIE - I Why Design Thinking is Important for Innovation & Startups? Help you/team surface unmet needs of the people you are creating for Generates solutions that are revolutionary, not just incremental Reduces the risk associated with launching new ideas 3 Key Principles: (EIE ☺) Empathy Ideation Experimentation  EIE - I Design Thinking in 90 Seconds (The Strategy Group) Link (first 1 min)  EIE - I Design Thinking (HBR Explainer) Link (2:17 mins)  EIE - I TED Talk: Human Centric Innovation: Mileha Soneji Link (7mins)  EIE - I Design Thinking Framework  EIE - I IDEO Case Study (Video) IDEO did the ‘Shopping cart project’ for ABC News to illustrate their process for coming up with innovative new products: IDEO shopping cart project (15 mins) IDEO shopping cart project (8 mins) Carefully watch to see Process (and steps) IDEO employs for new/innovative products How they brainstorm effectively and jot down observations Rapid prototyping and iterating to come up with a new/improved solution Essentials of Innovation & Entrepreneurship (EIE) - I Module [M3]: Effectuation  EIE - I How Entrepreneurs Build Ventures: Causal logic (conventional wisdom) Come up with a brilliant idea Show there is a large market for it Write a winning business plan Raise money Build and grow the venture Go public or sell Go off to the Bahamas ☺ 4  EIE - I Effectuation: Another Approach to Getting Started Video: A Brief Guide to Effectuation (2:52) Essential Reading: What makes Entrepreneurs Entrepreneurial? Originator: Dr. Saras Sarasvathy (Darden School of Business, University of Virginia) 5  EIE - I Causal: Effectual: Expressing or indicating Producing or able to cause produce a desired effect relating to or showing the cause suggest the accomplishment of a desired of something result especially as viewed after the fact 3 From Merriam Webster Dictionary  EIE - I Effectuation Let’s use an Analogy….. Preparing dinner When you go to cook dinner how do you cook? 1. Have a specific menu, shop for the ingredients, follow the recipe. 2. Have a look in the fridge, see what’s in there and make dinner accordingly 6  EIE - I Effectual Logic Effectual dining Effectual reasoning often requires… Imagination Risk-taking Spontaneity Salesmanship 7  EIE - I A Managerial Approach Causal reasoning to achieve a given goal: following pre-existing pathways M1 M2 M3 GOAL M4 M5 8  EIE - I A Strategic Approach Creative causal reasoning to achieve a given goal: may involve the creation of new pathways M1 M2 M3 GOAL M4 M5 9  EIE - I An Entrepreneurial approach Effectual reasoning: Using a given set of means, start imagining new possibilities GOAL1 M1 GOAL2 M5 M2 GOAL3 M4 M3 GOAL4 GOAL 5 10  EIE - I An Effectual Approach Effectuation considers entrepreneurship as a series of decisions. Decision-making can be applied in ambiguous or uncertain settings. Entrepreneurs reimagine outcomes and use means to move into action without elaborate planning. 11  EIE - I Non-Predictive Control High PREDICTION HIGH PLAN (Causal) VISIONARY Low CO-CREATE High LOW ADAPT (Effectuation) LOW HIGH CONTROL 13  EIE - I The Key Finding To the extent we can predict the future, we can control it Causal Logic Effectual Logic To an extent we can control the future, we don’t need to predict it 13  EIE - I Examples of Effectuation Work with what’s already within your control to co-create the future 12  EIE - I Effectuation Example 15  EIE - I Effectuation Example 16  PRINCIPLES OF EFFECTUATION Centre for Innovation and Entrepreneurship (CIE)  EIE - I Bird-in-Hand Principle Start with your means Start with Who you are, What you know, & Whom you know When expert entrepreneurs set out to build a new venture, they start with their means: Who I am, what I know, and whom I know Then, the entrepreneurs imagine possibilities that originate from their means. 17  EIE - I Affordable Loss Principle Focus on the Downside Risk Invest what you can afford to lose – extreme case $0 Expert entrepreneurs limit risk by understanding what they can afford to lose at each step, instead of seeking large all-or-nothing opportunities. They choose goals and actions where there is an upside even if the downside ends up happening. 18  EIE - I Lemonade Principle Leverage Contingencies: Embrace and Leverage surprises Expert entrepreneurs invite the surprise factor Instead of making “what-if” scenarios to deal with the worst-case scenarios, experts interpret “bad” news & surprises as potential clues to create new markets. 19  EIE - I Crazy Quilt Principle Form partnerships: Build a network of self-selected stakeholders Expert entrepreneurs build partnerships with self-selecting stakeholders. By obtaining pre-commitments from these key partners early on in the venture, experts reduce uncertainty and co-create new market with its interested participants. 20  EIE - I Pilot-in-the-Plane Principle Pilot-in-the-plane principle: Co-create the future By focusing on activities within their control, expert entrepreneurs know their actions will result in the desired outcomes. An effectual worldview is rooted in the belief that the future is neither found nor predicted but rather CREATED 21  EIE - I Summary of Effectuation Process 22  EIE - I Recap: 5 Principles of Effectuation For details, see https://effectuation.org/the-five-principles-of-effectuation 22  EIE - I Summary Bird-in-hand principle: Start with Who you are, What you know, & Whom you know (Not pre-set goals/opps) Affordable loss principle: Invest what you can afford to lose –extreme case $0 (Not expected return) Crazy Quilt principle: Build a network of self-selected stakeholders (Not competitive analysis) Lemonade principle: Embrace and Leverage surprises (Not avoid them) Pilot-in-the-plane principle: Co-create the future (Not stick to a pre-determined path) 22 When to use Effectuation You need them to start your business but eventually you shift away from effectual logic 23  EIE - I Entrepreneurship Mindset → Effectuation Effectuation and Entrepreneurial Mindset Go Hand in Hand Effectuation Entrepreneurship Mindset Elements Bird-in-Hand Principle: Imaginative, Creative, Resourcefulness, Adaptability Affordable Loss Principle Calculated Risk-taking, Learning from Failures Crazy Quilt Principle Networking, Relationship-building, Collaborative Lemonade Principle Courage, Growth-mindset, Optimist Pilot-in-a-Plane Principle Flexibility, Agility, Adaptability Other Commonalities between Effectuation & Entrepreneurship Mindset: Action-oriented, Embracing Uncertainty, Leveraging existing Resources, Iterative Approach 22  EIE - I Post-Session Activity: Empathy Map For a given set of customers facing a given challenge/problem, create an empathy map  EIE - I Post-Session Activity: Effectuation Effectuation Activity: The Lemonade Stand Challenge Objective: To apply the effectuation principles to create a small-scale entrepreneurial venture. Instructions: 1. Brainstorm a product or service: Consider your skills, interests, and resources. Think about a product or service you could create or offer with minimal investment. 2. Identify your existing resources: Make a list of the resources you already have, such as time, skills, contacts, and equipment. 3. Set a small, achievable goal: Instead of aiming for a grand vision, start with a modest goal. For example, if you're selling lemonade, aim to sell a certain number of cups per day. 4. Create a prototype or sample: Even if it's a simple version, having a tangible product or service will help you gather feedback. 5. Test your idea: Share your product or service with friends, family, or classmates. Ask for their feedback and suggestions. 6. Iterate and improve: Based on the feedback you receive, make adjustments to your product or service. 7. Leverage your network: Reach out to people you know to see if they can help you connect with potential customers or partners. 8. Start small and grow gradually: Avoid making large investments upfront. Instead, focus on generating revenue and reinvesting your profits to grow your business. Additional Considerations: Time constraints: Consider the amount of time you have available to dedicate to the project. Budget: Set a budget for your venture and stick to it. Legal and regulatory requirements: Ensure that your venture complies with any relevant laws and regulations. Reflection: Write a reflection on your experience. Discuss the challenges you faced, the lessons you learned, and how you applied the principles of effectuation.  PES EIE PART 1 Session Feedback Please share your feedback on Mentimeter Join at www.menti.com Use code: xxxx xxxx 45 Essentials of Innovation & Entrepreneurship (EIE) - I Module [M4]: Opportunity Identification & Ethics  EIE - I EIE M3 Session – Previous Session Recap Join at www.menti.com Use the code: 8936 6241  EIE - I EIE M3 Session Quiz - Discussion  EIE - I Today’s Topics Opportunity Identification Ethics for Startups Credit: Image Creator (Microsoft Bing)  EIE – Part I BIG PICTURE: STARTUP (VENTURE) Opportunity Identification Pursuit of Opportunity  EIE – Part I BIG PICTURE: STARTUP (VENTURE) PRODUCT OR MARKET SERVICE PEOPLE & RESOURCES & ORGANIZATION CAPITAL Source: Thomas Byers, Stanford University  EIE – Part I Idea → Market Process Formation Validation Growth  EIE – Part I Idea → Market Process Source: www.startupcommons.org Opportunity Identification Centre for Innovation and Entrepreneurship (EIE)  EIE – Part I Is an Idea the same as an Opportunity? Join at www.menti.com Use the code: 6392 5884  EIE – Part I Idea vs. Opportunity IDEA The lightbulb moment, a flash of inspiration that ignites the imagination Opportunity The open door, a chance waiting to be seized or a pathway to creating value  EIE – Part I Opportunity Fundamentals Great opportunities are often disguised as difficult problems Potential to create significant value for the customer Customer’s pain → source for entrepreneur’s value creation New technology may or may not be a biz opportunity Shift/changes in regulatory policy can be an opportunity Serendipity (chance) can throw up opportunities 5  EIE – Part I 4 Simple Ways to Have a Great Idea (TED Talk, start 45s, total ~5min) Video 1  EIE – Part I “Every Problem is an Opportunity” - Vinod Khosla (Khosla Ventures & Founder Sun Microsystems)  EIE – Part I Sources of Startup Opportunity Customers’ needs (or changing needs) Personal (experience of) need or problem Changes: Market-driven Study/Analyze Trends Changes: Technology-driven Discontinuities (social, technological, market) Role of Chance/Luck (“right place, right time”) 5  EIE – Part I Quiz: IDE* Startup (which quadrant?) High High Growth (scalable) D B Business Model Low Growth Low High C A (non-scalable) Business Model Unvalidated Mkt Validated Business Model Business Model * Innovation-driven entrepreneurship 5  EIE – Part I Quiz #1: IDE Startup (which quadrant?) High High Growth (scalable) Business Model D B A –> Small Business B –> Scaleup D –> Startup Low Growth Low High C –> No Go! C A (non-scalable) Business Model Unvalidated Mkt Validated Business Model Business Model 5  EIE – Part I What makes an Opportunity attractive?  EIE – Part I Current Problem/Need is Customers’ Solvable Context Real Need Important willing to Pay in the near future Industry, Market, or Problem to the customer & is likely with resources Regulations, etc Profitable (present/acquired) are understood  EIE – Part I 'Value’ of an Opportunity B: C: D: Number of Frequency Willingness to A: Value of the Target Customers X that the Solution is used X Payfor Current Solution Potential = Opportunity E: Level of Satisfaction with existing Customers/solutions 3  EIE – Part I Identifying a Good Opportunity Summary (Flowchart) Tech Trends Market Trends Personal Unmet needs in Analyze Challenges the market Analyze Existing solution can be Are there new needs? People want to spend more/less made cheaper, faster, better? on certain things? New solution can be built? What solutions are valued? In demand? Potential Opportunities Filter using ‘TIPSC’ Target Opportunities  EIE – Part I Summary: Identifying a Good Opportunity Problem: Is this a ‘good’ & real problem (today, not in the distant future)? Need: Who needs this (customer) and what benefit is the customer seeking? Business: Is this viable from a ‘business’ Execution: Is there a path for you/team to get started on above? Your team would be an ideal founding team for this opportunity? Testable: Can this problem & solution be tested (from a customer dev perspective)? Use TIPSC to narrow down on opportunity: Timely, Important, Profitable, Solvable, Context 5  EIE – Part I Example: Opportunity identification Brian Chesky and Joe Gebbia, the founders of Airbnb, noticed a unique opportunity during a design conference in San Francisco. Hotel rooms (which were expensive) were in short supply, and they realized that people had spare rooms in their homes. This opportunity identification led to the creation of Airbnb, now a global marketplace for accommodations and experiences. Airbnb disrupted the traditional hotel industry by capitalizing on the sharing economy and offering unique and affordable lodging options. 6  EIE – Part I Example: Opportunity identification Patrick and John Collison, founders of Stripe, noticed that the hardest part of starting an internet business at the time wasn't coming up with an idea, turning the idea into code or getting people to hear about it and pay for it. The hardest part was finding a way to accept customer's money. Stripe, now a multinational financial services company with a valuation of about $65 billion and over $1 trillion in payment volume processed in 2023. Its customers include the likes of Amazon, IBM, Lyft, NASDAQ and Google. 6  EIE – Part I Example: Opportunity Identification Reed Hastings & Marc Randolph, the co-founders of Netflix, recognized the opportunity to disrupt the video rental industry. They observed the inconvenience of late fees and the limitations of brick-and-mortar rental stores, and identified the potential of a subscription-based model for DVD rentals. Netflix initially started as a DVD-by-mail rental service (2007), offering subscribers unlimited rentals without late fees. As technology advanced, they shifted their focus to streaming media, recognizing the opportunity to provide on-demand entertainment to customers through the internet. 7  Post-Session Activity: Problem / Needs Brainstorm/Discuss & list 3-5 biggest (real) Problems/ Needs (per category) for 2-3 categories Sample categories: Personal Experience, Environment, Entertainment, etc An inspiration for categories: UN Sustainable Development Goals (SDG)  Post-Session Activity: Napkin Pitch Select the top 2-3 problem/opportunity The Big Idea Needs/ Benefits statements (Oppty Stmt) (what your solution can deliver to Customers/Users) Capture this in ‘Napkin Pitch’ (on the right) for each problem/opportunity statement Execution Viable Business? (what does it take to (worth the effort? Use the Napkin pitch (per opportunity) as a implement this What are the top risks solution?) and key assumptions starting point to validate the opportunity behind this? ) 8 Post-Session Activity: Problem / Needs Inspiration: UN SDG Goals Ethics (for Startups) Centre for Innovation and Entrepreneurship (EIE)  EIE What is Ethics? What is Business Ethics? Video (~3mins) 1  Ethics and Business Ethics is concerned with doing the right (moral) thing It is a solid foundation on which integrity and reputation can be built Integrity and reputation is a must for long-term business success While the above is true any enterprise, it is especially important for startups as this can bring down the entire effort if one is not mindful of ethics (Why?) 3  Why Ethics is Important in Entrepreneurship? Success depends on winning against competitors Competitive pressure sometimes tempts changing the ‘moral compass’ Leading to unethical decisions with big (negative) consequences A key task of Founders is to establish an ethical culture While profitability is important, ethical values are even more important 4  Redefining Entrepreneurship “Entrepreneurship is when you act [ethically] upon opportunities and ideas and transform them into value for others” 1  Ethical Leadership Mindset Integrity Fairness & Justice Ethical leader consistently Ethical leaders treat all demonstrate honesty, individuals with fairness and trustworthiness,and a strong impartially. moral compass. 1  EIE Ethical Leadership Mindset Decision Making Responsibility & Accountability Ethical leaders prioritize ethical Ethical leaders take responsibility considerations in their decision for their actions and the making process. outcomes of their decisions. 1  Overlooking Ethics Results in …. Scandals Corporate Examples, Global/Indian Enron, Volkswagen, Lehman Brothers, Facebook list Satyam Computers, IL&FS list Startup Examples, Global/Indian Theranos - A Fallen Unicorn GoMechanic Ethics-related Issues can arise in Small/Large & Local/Global enterprises 5  Obstacles to Ethical Decision-Making Complacency: We believe that “it can’t happen here.” Self-Delusion: We judge ourselves by our intentions, while others judge us by our actions Rationalizations: We make up justifications and excuses for ethical missteps Survival Mentality: We convince ourselves that ethical missteps are necessary 5  EIE How to Build a Ethical Startup Video (Stanford University ~2mins) 1  PES EIE PART 1 Session Feedback Please share your feedback on Mentimeter Join at www.menti.com Use code: xxxx xxxx 45 Essentials of Innovation & Entrepreneurship (EIE) - I Module [M5]: Building/Leading Teams in Startups  EIE – Part I Announcements 1. Next week: Sep 18/Wed, shorter session: 1hr (on Value Proposition) 2. In-person/offline class: Targeting session on Oct 9/Wed, stay tuned for details 3. You have an opportunity to build a startup/team in this class! Showcase this in PESU E-Summit (Oct) and win cool prizes! 4. You/team can submit your idea to other startup hackathons as well; Practice makes it perfect! (see several emails/announcements from CIE)  EIE - I EIE M4 Session Quiz - Discussion / Recap  EIE - I Journey Till Now…  EIE - I Journey Till Now Join at www.menti.com Use the code: 6922 3642  EIE - I Today’s Topics Building Teams Leading Teams Credit: Image Creator (Microsoft Bing)  EIE – Part I 1 Credits: Peanuts by Charles Schulz EIE – Part I 1  EIE – Part I Top 20 Reasons Startups Fail #3: "Not the Right Team” 4 Source: CB Insights  EIE – Part I Your Idea of a ‘Dream’ (Perfect) Startup Team? Join at www.menti.com Use the code: 6922 3642  EIE – Part I Effective Team Characteristics Trust Purpose Good Communication: Most decisions by Create & Maintain and shared beliefs disagreements handled well Consensus 12 Clear Roles/Responsibilities Collaborative Diversity Teams Learn & Share Team effort And Inclusion their learning 4  EIE – Part I What Makes a Good Team (Simon Sinek, ~2min) Video 1  EIE – Part I Building Your Startup: Building Your Team (Kauffman Foundation, ~1min) Video 1  EIE – Part I Build a Tower, Build a Team (MarshMallow Challenge) (TED Talk, ~7min) Video 1  EIE – Part I Diversity and Inclusion “Diversity is being invited to the party Inclusion is being asked to dance” Verna Myers 4  EIE – Part I The Power of Diverse Teams (Microsoft, ~1min) Video 1  EIE – Part I Different Types of Diversity in Teams Join at www.menti.com Use the code: 6922 3642  EIE – Part I Diversity Entrepreneurial Diversity (Dimensions): Expertise, Opinion, Power Optimal Levels of Diversity: Expertise: High Opinion: Moderate Power: Low 4  EIE – Part I Secret of High-Performing Teams Energy, Engagement, Exploration “Just by looking at the sociometric data, we’ve been able to foretell which teams will win a business plan contest” ”The most valuable form of communication is face-to-face” How do you plan to overcome this? (especially if you are cross-campus/remote) 5  EIE – Part I Early Signs of Dysfunctional Team-Member Relationship Criticism Contempt Defensiveness Stonewalling (refusing to communicate) 4 Kevin Hale – How to Work Together, Y Combinator  EIE – Part I Is there a Perfect Team? A better question to ask is ‘How Do We Work Together’? Everyone fights, so make a plan Figure out roles, goals, and a process before emotions get involved Start having hard conversations now Communicate to share honest feedback without criticism Pay down emotional debt regularly 4 Kevin Hale – How to Work Together, Y Combinator  EIE – Part I Simplified View: ‘Balanced’ Founding Team Key driver to bring the idea to life; Inspires the Team Not defined by position/title but by Attitude; Build the product/solution & Helps sell the product/solution anything else needed along the way 6  EIE – Part I Team Roles Founder(s) Founding Team Founding CEO Has the Initial Idea. Complementary skills- Brings order and May or May not have Builds the early firm/org create ‘Comfort in a leadership role Chaos’; Leads the Company 6  EIE – Part I Know Thy Self 2  EIE – Part I Personalities (example: DISC) Sample DISC test (checkout others as well): https://www.tonyrobbins.com/disc, https://professionalleadershipinstitute.com/disc-assessment/  EIE - I Leading Teams Credit: Image Creator (Microsoft Bing)  EIE – Part I Your idea of a Good Leader (startup context)? Join at www.menti.com Use the code: 6922 3642  EIE – Part I What It Takes to Be a Great Leader (Harvard Business Review Explainer, ~2 min) Video 1  EIE – Part I What Makes a Great Leader (Innovation Context) (Linda Hill, Harvard Business School, 1st 4 mins) Video 1  EIE – Part I Leadership – What You Don’t Need: Micro-manage (Movie clip: “Office Space”, 1 min) Video 1  EIE – Part I Leadership – What You Don’t Need: Unempathetic (clip from: “Parks and Recreation”, 1 min) Video 1  EIE – Part I Leadership: Vision (Steve Jobs, 45 sec) Video 1  EIE – Part I Leadership: Listen, Kindness, Respect (ex-President Barack Obama, ~2 min) Video 1  EIE – Part I Leadership: Trust vs. Performance (Simon Sinek, 2 min) Video 1  EIE – Part I Leadership – Taking Care of your Team Member (Simon Sinek, 1 min) Video 1  EIE – Part I Leadership: Empathy, Perspective (Simon Sinek, first 2.5 min) Video 1  EIE – Part I What's more important than IQ & Tech Savviness for a Leader? Join at www.menti.com Use the code: 6922 3642  EIE – Part I What Makes a (Great) Leader (Daniel Goleman, Harvard Business Review, 4 min) Video 1  EIE – Part I Elements of Emotional Intelligence 6 Harvard Business School: See here for an insightful article  EIE – Part I Reading: ”The Real Leadership Lessons of Steve Jobs” 6 Source: Harvard Business Review: Apr 2012, link  EIE – Part I Summary Top Reason Startups Fail: One of the top reasons for failure is "Not the Right Team." Ensuring the team has the right mix of skills, leadership, and collaboration is critical to success. What Makes a Good Team?: Essential components include mutual trust, respect, shared beliefs, and a focus on the organization's success over personal interests. Diversity in skills and perspectives is crucial, and members should approach differences maturely. High-Performing Teams: Teams with high energy, engagement, and exploration often perform better. Communication, particularly face-to-face, plays a key role in team success, even when members are remote. Team Roles: In a founding team, complementary skills are vital. The CEO often brings order, providing "comfort in chaos," while other founders may or may not take on leadership roles. Leadership behavior demonstrated by all team members in a startup can make all the difference between success and failure!  EIE – Part I Announcements 1. Next week: Sep 18/Wed, shorter session: 1hr (on Value Proposition) 2. In-person/offline class: Targeting session on Oct 9/Wed, stay tuned for details 3. You have an opportunity to build a startup/team in this class! You can showcase this in the PESU E-Summit (Oct) and win cool prizes! 4. You/team can submit your idea to other startup hackathons as well; Practice makes it perfect! (see several emails/announcements from CIE)  EIE – Part I Post-Session Activity: DISC Personality Test There are several (free) Personality Tests available online. DISC is one of them. Even DISC is offered (for free) by multiple agencies. Below are 2 examples (feel free to checkout others): https://www.tonyrobbins.com/disc https://professionalleadershipinstitute.com/disc-assessment/ Note: The accuracy of any psychometric test varies; consider results as 1 perspective, do not view result as definitive! Reflect on the following: 1. Do you agree with the results? Analyze what you agree and don’t agree 2. Are there areas that you wish to strengthen? Change? Keep it the same?  EIE – Part I Post-Session Activity: Form a Team Based on self-reflection and inputs from a personality test 1. Which do you identify as the dominant type: Hacker, Hustler, Visionary? 2. What type of teammates do you seek? 3. What type of diversity are you looking for in your team? 4. What are the aspirations for yourself and as a team (for this course)? Form a Startup Team and Start your Entrepreneurial Journey 1. Form a Team comprising of 4-5 members & select an opportunity statement (use TIPSC, etc) 2. Apply the course principles (learned till now) and build out the idea/opportunity. 3. You/Team can submit your idea/opportunity and participate in PESU E-Summit!!  EIE – Part I Session Feedback Please share your feedback on Mentimeter Join at www.menti.com Use code: xxxx xxxx 45  EIE – Part I Go Be an Entrepreneur: Teams and more (Kauffman Foundation, ~4min) Video 1 Essentials of Innovation & Entrepreneurship (EIE) - I Module [M6]: Customer Value Proposition  EIE – Part I Announcements (by Madhukar Sir) 1. Portions for EIE ISA-1/Assessment: Module 1 to 5 2. Format: All MCQ; designed to test understanding, applying concepts & reasoning 3. Duration: 45mins and # of Questions: 45 4. You have an opportunity to build a startup/team in this class! Showcase this in PESU E-Summit (Oct) and win cool prizes! 5. You/team can submit your idea to other startup hackathons as well; Practice makes it perfect! (see several emails/announcements from CIE) 1  EIE - I Today’s Topics What is Capturing the Value Proposition? Value Proposition 2 Credit: Image Creator (Microsoft Bing)  EIE – Part I Course Map - You are here 3  EIE – Part I What is Value? Applicable in a very broad sense: Economic, Social , Political, Art, Entertainment, Human, Business, etc 4  EIE – Part I What is Value? Our interest is in the business context: Startup, Enterprise (large company), Small-Medium-Business (SMB), Intrapreneurship (entrepreneurship inside a company) Others 5  EIE – Part I What is Customer Value? Usefulness of a product/service to a customer The definition of value is not limited to money! Varies from customer to customer (same product/service can have different value) Market fluctuations may change cost/price but value can remain unaffected 7  EIE – Part I Value Proposition Bundle of products and/or services that create value for a specific customer segment. 8  EIE – Part I Value Proposition – Example 1 (Art/Craft) + ‘X’ (Raw Wood) Curio/toy Answer the below on Menti (www.menti.com, code: 6186 5963) Q1. What is value addition (‘X’) to the wooden piece to create the toy? Q2. Why do you think the value of the finished product is higher? 9  EIE – Part I Value Proposition – Example 2 (Music) Answer the below on Menti (www.menti.com, code: 6186 5963) Q3. Which of the below has the highest Price? Q4. Which of the below has the highest Value? E-Tanpura E-Tanpura + E-Tabla Tanpura App (Saraang Micro V6*) (Milan +*) Tanpura 10  EIE – Part I Value Proposition – Example 4 Answer the below on Menti (www.menti.com, code: 6186 5963) Clearly, the price of electric toothbrush is higher than a regular toothbrush What do you think is the (relative) Value of electric toothbrush? 12  EIE – Part I Source of Value Proposition Can you Think of Some Examples? Newness Price Performance Cost reduction Customization Risk reduction Design Accessibility Brand/Status Convenience/Usability “Getting the job done” 13  EIE – Part I Value Proposition Builder How to construct the Value Proposition? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? What value do we deliver to the customer? Why should the customer choose your solution? What products/services are we offering to each Customer Segment? 14  EIE – Part I Value Proposition Canvas (VPC) Value Map Customer Profile 15  EIE – Part I Building Customer Profile (Right Side of VPC) Gains describes the outcomes customers want to achieve or the benefits they are seeking Describe what customers are trying to get done (in their work and in their lives, if possible, expressed in their own words) Pains describe problems, bad Include: functional, social, outcomes, risks and obstacles personal, emotional jobs related to customer jobs Tip: make it as specific as possible 16  EIE – Part I Building Value Map (Left Side of VPC) Gain Creators: how your products/services create Products/Service customer gains (outcome, benefits, you offer based on your desires, functional utility, social gains, value proposition. positive emotions, cost savings) Helps customers do Pain relievers: either functional, social how exactly your products/services or emotional jobs eliminate/minimize customer pains Tip: Focus on the key pain points (need not be every pain point) 17  EIE – Part I Example: Value Proposition Canvas for Tesla Credit: Strategyzer  EIE – Part I Positioning Statement - Template For target customer Differentiation Unlike (Primary Who (statement of need or competitive opportunity) alternative) (Product name) is a Our Product (product category) (statement of primary That (Statement of benefits) differentiation ) 18  EIE – Part I Positioning Statement - Example: Tesla For wealthy individuals & Differentiation car lovers Unlike Ferraris Who want an environmentally and Porches, friendly & high-end sports car Our Product The Tesla Roadster is a an electric automobile product has fantastic That delivers unprecedented mileage, unparalleled performance without damaging performance and no the environment direct carbon emissions. 19  EIE – Part I Product Positioning - Example 20  EIE – Part I Product Positioning - Example 21  EIE – Part I What is your Product Positioning? Dimension1 (“High”) Dimension2 Dimension2 (“Low”) (“High”) Dimension1 (“Low”) 22  EIE – Part I Post-Session Activity: Create a Value Proposition Canvas To do : For each Customer Segment identified 1. Brainstorm Customer Jobs, Pains & Gains 2. Brainstorm Pain Relievers & Gain Creators & Product/Services that can address ‘pain relievers’ and ‘gain creators’ Result : A VPC (for each customer segment) showing 1. Gain/Gain Creators & Pain / Pain Relievers 2. Potential product/service that will create value for customer 23  EIE – Part I Post-Session Activity: Positioning Your Solution Identify the 2 (important) dimensions you want to position your product and why you chose it (compared to competition) 25  EIE – Part I Post-Session Activity: Create a Positioning Statement To do : Identify 2 dimensions/attributes for your product/service 1. Draw the positioning map (P.map) along the 2 dimensions 2. Place your new product/service along with competitors in the P.map 3. Write the Positioning Statement for your product/service offering Result : Your Customer Value Proposition expressed as 1. Value Proposition Canvas 2. Positioning Statement (see next slide for template) 24  EIE – Part I Template: Positioning Statement Create your Positioning Statement along below lines: ⚬ For (target customer) ⚬ Who (statement of need or opportunity) ⚬ (Product name) is a (product category) ⚬ That (statement of benefits) Differentiation ⚬ Unlike (primary competitive alternative) ⚬ Our product (statement of primary differentiation) 26 EIE – Part I Summary  EIE – Part I Session Feedback Please share your feedback on Mentimeter Join at www.menti.com Use code: xxxx xxxx 45