ENTech1 - Introduction to Technopreneurship PDF

ENTECH1 – INTRODUCTION TO TECHNOPRENEURSHIP ENTREPRENEURSHIP VALUE CHAIN = process of exploiting opportunities that exist in the environment or that = business model that describes the fu...

ENTECH1 – INTRODUCTION TO TECHNOPRENEURSHIP ENTREPRENEURSHIP VALUE CHAIN = process of exploiting opportunities that exist in the environment or that = business model that describes the full range of activities needed to are created through innovation in an attempt to create value create a product or services = often includes the creation and management of new business ventures = for companies that produce goods, a value chain comprises the steps or reviving an existing business by pooling together a bunch of resources that involve bringing a product from conception to distribution, and = creative process that is centered in the notion of identifying market everything in between – such as procuring raw materials, manufacturing opportunities and unmet needs functions, and market activities = building solutions that meet these needs and bring value to customers = seeks to understand how opportunities to create something new arise VALUE CHAIN IN TECHNOPRENEURSHIP and are discovered or creative by specific persons who then use various = uses various high-technology business, especially computer software, means to exploit or develop them, thus producing wide range of effects telecommunications and virtual services, as well as educational and = the potential to create something new (new products or services, research institutions markets, production processes, raw materials, ways of organizing existing = focuses on its contribution to a country’s economic benefits technologies, etc.) that has emerged from a complex pattern of changing = customer-focused, the focus is not in developing complex products or conditions (changes in knowledge, technology, economic, political, social, technology but on developing a product or service that offer higher value and demographic conditions) to the customer = the key to entrepreneurship is doing that “thing” differently which moves = automation of manual processes (ex: payroll, enrollment) you up the value chain = improving a value is eliminating the middle-man that incurred the cost of product higher to the end customer ENTREPRENEUR = going up the value chain does not mean that the product or services has = someone who enters the nerve center of a business that no one entered to be complicated but that the customer sees real benefit before and then makes changes to it that results in a paradigm shift in the whole process TECHNOPRENEUR VS. ENTREPRENEUR = innovator or developer who recognizes and seizes opportunities ENTREPRENEUR = someone who converts these opportunities into workable and = person who identifies an opportunity, converts it into a product or marketable ideas service, estimates earnings and profit and builds a successful business = adds value to these ideas through time, effort, money, or skills with it = assumes the risks of the competitive marketplace to implement these ideas TECHNOPRENEUR = starts out with nothing but an “idea” TECHNOPRENEURSHIP = defies existing practices and systems and thinks of doing things = simple entrepreneurship in a technology intensive context differently = process of merging technology prowess and entrepreneurial talent and = creates a product or solution that uses the heft and capability of skills technology to change the way something was traditionally done and = new breed of entrepreneurship succeeds admirably = involves a coming together of people who are intelligent, driven, creative, tech-savvy and passionate, and have an appetite for calculated ENTREPRENEURIAL TECHNOPRENEURIAL TECHNOPRENEURSHIP risk PROCESS PROCESS CONTINUM = not just about technology alone; but is about how to manage that - opportunity - idea generation - discovery technology in order to achieve superior value for the customer (how to use analysis - idea screening - invention technology or ICT to improve value) - business - concept testing - innovation = also known as Cyberpreneurship, Netpreneurship, or Technology planning - business analysis - entrepreneurship Entrepreneurship - gathering - prototyping resources - test marketing TECHNOPRENEUR - implementation - commercialization = person who destroys the existing economic order by introducing new - scaling and - monitoring and products and services, creating new forms of organizations, and harvesting evaluation exploiting new materials = someone who perceives an opportunity and creates an organization to TECHNOPRENEUR AND THE ECONOMY pursue it = new structures and strategies are being explored and formulated to help = person who undertakes risks that has the chance of profit technology-based small and medium-sized enterprises (SMEs) to grow and = can be defined as “an entrepreneur with the skills and mindsets to deal offer a promising future within the global marketplace with a knowledge economy” = technopreneurs will be able to manifest characteristics such as product = people who shift economic resources up the value chain and process innovativeness, high growth rate, technology adoption, and high market growth rate = this could contribute significantly to the business as well as economic growth through value addition, wealth creation, and job opportunities = technopreneurs play an important role in economics by carrying heavier burden as they employ technology in creating and improving the products, services, and production process  ENTECH1 – DESIGN THINKING DESIGN THINKING 3. IDEATE = a human-centered approach to innovation – anchored in = it is not about coming up with the “right” idea, it’s about understanding customer’s needs, RAPID prototyping, and generating the broadest range of possibilities generating creative ideas = IDEATE MODE – mode in which you concentrate on idea = from building something that works to building something generation, represents a process of “going wide” in terms of that people need concepts and outcomes = IDEATION – provides both the fuel and also the source DESIGN THINKING: A NON-LINEAR PROCESS material for building prototypes and getting innovative (Empathize, Define, Ideate, Prototype, Test) solutions into the hands of your users 4. PROTOTYPE DIVERGENT AND CONVERGENT THINKING = build to think and test to learn = PROTOTYPE MODE – iterative generation of artifacts intended to answer questions that get you closer to your final solution = PROTOTYPE – can be anything that a user can interact with 5. TEST = TEST MODE – when you solicit feedback about the prototypes you have created from your users and have another opportunity to gain empathy for the people you are designing DIVERGE for = free flowing, generate many creative ideas and offer choices = TESTING – another opportunity to understand your user, but CONVERGE unlike your initial empathy mode, you have now likely done = focused, coming up with a single well-established action or more framing of the problem and have created prototypes to answer test ITERATION AND MAKING THE PROCESS YOUR OWN 1. EMPATHIZE ITERATION = to create meaningful innovations you need to know your = fundamental of good design users and care about their lives = iterate both by cycling through the process multiple times, = EMPATHY – centerpiece of human-centered design process and also within a step = EMPATHIZE MODE – the work you do to understand people, within the context of your design challenge as it is your effort REMEMBER: to understand the way they do things and why, their physical - everything you believe in the beginning are just assumptions and emotional needs, how they think about the world, and what and opinions unless validated is meaningful to them - validate! even before you exert effort in building anything complicated 2. DEFINE - always take note of insights = framing the right problem is the only way to create the right solution = DEFINE MODE – all about bringing clarity and focus to the design space = goal is to craft a meaningful and actionable problem statement – this is what we call a point-of-view = PROBLEM STATEMENT – guiding statement that focuses on insights and needs of a particular user or composite character = TWO GOALS: prioritize and choose what problematic experiences you want to tackle and craft a guiding problem statement = “How might we ___ (Action) ___ (What) For ___ (Who) In order to ___ (Intended Benefit)”  ENTECH1 – ENTREPRENUERIAL MINDSET ENTREPRENUERIAL MINDSET FIVE ESSENTIAL CHARACTERISTSICS OF THE ENTREPRENEURIAL MIND = way of thinking that enables you to overcome challenges, be decisive, and accept responsibility of your outcomes 1. CREATIVITY = a constant need to improve your skills, learn from your mistakes, and = the seed of entrepreneurship is the ability to see things differently take continuous action on your ideas whether it’s with new products or new processes, entrepreneurs are = a mindset that equips people to recognize opportunity, take initiative, driven by the uncanny knack to see holes in the marketplace and devise and innovate in the face of challenges innovations to fill them ENTREPRENEURIAL MIND FRAME 2. SUSPICION OF PREDICTORS = allows the entrepreneur to see things in a very positive and optimistic = entrepreneurs tend not to labor under the assumption that data is the light in the midst of crises or difficult situations sole predictor of an outcome = in Chinese writing, the word crisis is composed of danger (first = especially in new markets and with new products where data is largely character) and opportunity (second character) interpretive or extrapolated, entrepreneurs are undaunted by the typical predictors that may put off fainter hearts PASSION = the great desire to attain a vision or fulfill a mission 3. COMFORT WITH UNCERTAINTY = about wanting something so much that a person would be willing = a distrust of prediction and analysis creates an atmosphere where to totally devote oneself to the quest uncertainty rules = uncertainty is the very essence of entrepreneurship ENTREPRENEURIAL HEART FLAME = the entrepreneur also looks after the interests of their people by 4. OPENNESS TO EXPERIMENTATION motivating and encouraging them to be the best that they can be = a comfort with experimentation goes beyond educated trial and error = this creates a caring culture within the organization that brings about = the ability to experiment with products, processes, and outcomes, no synergy among the people working toward a common vision matter where the results may lead, is the key element of this quality ENTREPRENEURIAL GUT FLAME 5. FUNCTIONAL HUMILITY = the ability of the entrepreneur to sense without using the five senses = egos can destroy the very best ideas = this is also known as INTUITION = entrepreneurs who are committed to solving a business problem or = connotes courage to “lakas ng loob” (strong intestinal fortitude) reinventing a product or service display functional humility HAVING AN ENTREPRENUERIAL MIND COMES A: CHARACTERISTICS OF AN ENTREPRENEURIAL MINDSET = looking at the challenges not as NEW PRODUCT DEVELOPMENT 1. POSITIVITY obstacles but as opportunities to learn = successful new products spring from the convergence of: and improve - creative mind = come up with innovations to problems 2. CREATIVITY - technical mind and turning them into real products - business mind = to be able to persuade your target 3. PERSUASION audience, to believe in your solution THE ENTREPRENEURIAL MIND = determined enough to finish what was 4. SELF-MOTIVATION A. CREATIVE MIND started = conceptualizes and designs a product that consumers find some use for = rest if you must but you do not quit 5. TENACITY = likewise produces a product that is pleasing to see, touch, smell, hear, (change tactics) and taste = keep your mind active and strive to see 6. CURIOSITY things from fresh perspectives B. TECHNICAL MIND = to be able to roll with the punches and 7. FLEXIBILITY = technology originator be able to adapt to change = the entrepreneur may not necessarily possess the technical mind but = taking responsibility for your tasks, 8. OWNERSHIP this is what drives them to convert new knowledge into something highly actions, and reactions to various events functional and operational = open to audience input and to 9. RECEPTIVITY information, ready to get feedback C. BUSINESS MIND = genuinely enthusiastic to develop = harnesses the potentials of new products by creating the market space 10. PASSION solutions for them = must stay focused on the long-term = organizes sufficient forces and resources to develop, launch, and 11. VISION goals of the business while not getting commercialize the new product in order to maximize its market value overwhelmed by short-term hurdles 12. SELF-REGARD = having a healthy body and mind  ENTECH1 – LEAN STARTUP STARTUP or START-UP 5. FLEXIBILITY = company or project begun by an entrepreneur to seek, develop, and = a startup is very dynamic and ready to adapt to the adversities that may validate a scalable economic model arise = business structured powered by disruptive innovation, created to solve = due to the need for validation of your business idea, this business needs a problem by delivering a new product or service under conditions of to be ready to tailor their product to meet customer requirements extreme uncertainty 6. SOLVING A PROBLEM LEAN START-UP = associated with shed innovative, this type of company focuses on = method of systematically addressing uncertainty through rapid iteration solving any existing problem in the market, hence, making a difference and market learning not only in the marketplace but also in people’s lives through your product or service EQUATION OF A STARTUP - new business 7. SCALABILITY - innovation = a startup is a company in constant search of a business model that is - technology scalable and repeatable, it can grow without the need to increase human - passion or financial resources HOW DO STARTUPS WORK? 8. WORK TEAM = startups have to understand what the customer needs and be smart = these businesses are usually made up of very few people enough to convert this into a product that delivers the most suitable = a startup is a company that is in the early stages of development to solve response real-life problems through a product or innovative service = they offer practical, scalable, and creative solutions to everyday problems TYPES OF STARTUPS FACTORS TO CONSIDER: A. LIFESTYLE STARTUPS - reliance on technology to innovate and deliver the best products and = founded by entrepreneurs who are working for themselves and what services they like in life - the use of the internet and social networks to achieve visibility B. SMALL BUSINESS STARTUPS - a set of very clear short-, medium-, and long-term objectives = small business where the owner follows less ambitious goals to provide - startups define a budget to develop their business idea and if they need only a comfortable life for their family funding, they often turn to solutions such as crowdfunding = ex: hairdressing salons, grocery stores, bakeries, etc. - it is being run by young, multicultural, and multidisciplinary teams to enrich their perspectives C. SCALABLE STARTUPS = founded by entrepreneurs who believe from the beginning that they can FEATURES OF STARTUPS change the world with their business idea and therefore worry about 1. INNOVATION finding a model scalable and repeatable to draw attention of investors to = plays an essential role in the success of a startup boost their business = the successful exploitation of new ideas is crucial to a business being = ex: Google, Uber, and Facebook able to improve its processes, bring new and improved products and D. BUYABLE STARTUPS services to market, increase its efficiency, and improve its profitability = these businesses are born with the goal of being sold to large companies 2. AGE after achieving positive results that catch their attention = a startup is a new company which is still in its early stages of brand = very common in web solutions development companies and mobile management, sales, and hiring employees = ex: purchase of Instagram by Facebook = the startup age is the new age E. LARGE COMPANY STARTUPS 3. GROWTH = these businesses have the main objective of innovation and have a = startup is a company whose goal is to grow and expand rapidly, taking limited duration of life up to sometimes drastic proportions = a business falls into this category when it develops products or services = one of the points that distinguishes a startup from a small business that revolutionaries become quickly recognized by the market = however, due to market changes, the user preferences, and competitive 4. RISK pressures, these businesses tend to create new innovative products for = once a startup has strongly presented a shed innovative, there are new users of different markets always several associated uncertainties about ensuring the success of the business F. SOCIAL STARTUPS = for this reason, businesses are considered risk investments with a high = the main objective of this startup is not to gain profit but rather to failure rate contribute positively to the community = ex: charity or charitable institutions  ENTECH1 – CUSTOMERS CUSTOMER KEY ATTRIBUTES OF AN MVP: = someone who makes use of the paid products of an - MVP is not MVP until it sells; it must carry enough value to the individual or organization typically through purchasing or users renting goods or services - MVP is more about the process not the product = individual or business that purchases another company’s - MVP is not a product with the minimum number of elements goods or services but rather the core features sufficient to implement an idea and retain early adopters CUSTOMER DEVELOPMENT - MVP is based on the lean startup philosophy and implies the = developed by Steve Blank iterative process of building, measuring, and learning loop until = comprises of four steps and aims to: the product meets the market need completely - validated if the customer needs have been properly - MVP aims to avoid building unuseful, unnecessary products identified by gaining insights about the market first - tested the correct methods for acquiring and converting customers CUSTOMER VALIDATION: FEEDBACK - deployed the right resources in the organization to meet = process where you will need to be most objective the demand for the product = can be gathered through interviews, focus groups, and recording customer’s used of the MVP CUSTOMER DEVELOPMENT PROCESS 3. CUSTOMER CREATION = focus shifts from validating the product to scaling the business and acquiring more customers = with the validated value proposition and feedback from early customers, the startup can now focus on marketing and sales strategies to reach a broader audience = main goal is to attract a larger customer base and drive customer adoption 1. CUSTOMER DISCOVERY 4. COMPANY BUILDING = first phase of the process and involves identifying and = final phase of the Customer Development Process understanding the target market and potential customers = startup shifts its focus from product development and = engage in direct interactions with potential customers to validation to building a sustainable and scalable business gather insights, understand their needs, and validate their = involves optimizing operations ,refining the business model, assumptions about the problem they are trying to solve and establishing processes to support growth = main goal is to discover the right target audience and = the company works on improving customer satisfaction and identify a significant problem or pain point that the startup’s retention, expanding its market reach, and securing additional product or service can address funding if necessary 2. CUSTOMER VALIDATION = aims to validate their value proposition and ensure that there is sufficient demand for their product or service = they test their hypotheses by building an MVP or prototype to gather further feedback from early adopters = main goal is to confirm that the solution meets the needs of the target market and that customers are willing to pay for it MINIMUM VIABLE PRODUCT (MVP) = basic version of a product or service that contains only the core features necessary to meet the early needs of requirements of its target customers = primary purpose of an MVP is to quickly test and validate the viability of a business idea or product concept with real users while minimizing development time and costs ANSOFF MATRIX MARKET PENETRATION = known as the Product-Market Expansion Grid = focuses on increasing market share for existing products in = a strategic planning tool used by businesses to analyze existing markets growth strategies = aim is to attract more customers or increase the frequency = introduced by Russian-American Mathematician and of purchases from current customers Business Manager (Igor Ansoff) in 1957 = achieved by offering discounts, improving marketing efforts, enhancing customer loyalty programs, or improving the ANSOFF FOUR STRATEGIES product’s features 1. MARKET PENETRATION MARKTET DEVELOPMENT = how to sell more of your existing products or services to your = involves introducing existing products to new markets existing customer base? = requires understanding the needs of different customer 2. MARKET DEVELOPMENT segments and tailoring marketing and distribution channels to = how to enter new markets? reach those new markets = expansion could be geographical, targeting new regions or 3. PRODUCT AND DEVELOPMENT countries, or demographic, targeting new customer groups = how to develop existing products or services? PRODUCT DEVELOPMENT 4. DIVERSIFICATION = focus is on creating and launching new products or product = how to move into new markets with new products or services, variations for existing markets increase sales with your existing customer base as well as = businesses invest in research and development to introduce acquisition? innovative products that cater to the needs of existing customers = aims to expand the product portfolio and increase customer engagement DIVERSIFICATION = most complex and risky strategy as it involves entering new markets with new products = can be achieved through unrelated diversification where a company enters completely different industries, or related diversification where the new products and markets have some connection or synergy with the existing business