Technopreneurship - IT-315-PRELIM-COMPLETE-NOTES PDF

TECHNOPRENEURSHIP Module 1: Introduction to Technopreneurship Introduction Technology has created a huge impact and influence in the society Through technology people are interested in developing simple products for innovation The collaborative outcome of technology and entrepreneur...

TECHNOPRENEURSHIP Module 1: Introduction to Technopreneurship Introduction Technology has created a huge impact and influence in the society Through technology people are interested in developing simple products for innovation The collaborative outcome of technology and entrepreneurship became more exciting and interesting and established a competitive advantage in the business industry wherein it helps the country become economically stable. TECHNOLOGY - body of knowledge devoted to creating tools, processing actions and extracting materials - application of science used to solve problems - utilized in work, communication, transportation, learning, manufacturing and business ENTREPRENEURSHIP - practice of embarking on a new business venture or existing business by combining different resources in order to develop new opportunities - utilizes technology to improve products, innovate products, and develop new products ENTREPRENEUR - person possessing various skills in terms of marketing and communication - strategically has potential demand for goods and services whether as sole proprietor, with partners or within a corporation Types of Entrepreneur 1. Innovative Entrepreneur - person having great passion in discovering and developing new products, new ideas and new processes - willing to take risks in every new innovation as they enjoy challenges 2. Imitating Entrepreneur - person who immediately copy existing products made by innovative entrepreneurs because there is no such new inventions or new innovations - just imitate technology, process and methods pioneered by others - person can add a new feature to existing product or can still be same exact product in a different location 3. Fabian Entrepreneur - person skeptical about changes that will be made in organization - not decided to develop new innovations unless satisfied with result or outcome of released products - not risk-takers as they anticipate success in the market first - not willing to have financial loss due to failure 4. Drone Entrepreneur - reluctant to change as they are happy with result of business even if there are financial losses - not eager to make any changes in organization  Entrepreneurial Process - several steps that entrepreneurs need to follow to be successful in business plan 1. Opportunity Analysis - establishing demand and competitive analysis of market - entrepreneur has clear vision by making thorough study of market potentials to create strategies and desirable objectives for growth of organization 2. Business Planning - having a written business plan composed of organization’s future goals, how to achieve said goals, and timeframe for these goals to be achieved - includes marketing strategy, financial viewpoint and operational viewpoint 3. Gathering Requirements or Gathering Resources - financing sources such as lines of credit and investment capital, technology, networks of contacts and publicity are resources needed in the entrepreneurial process - four types of resources needed include: physical resources, intellectual resources, human resources and financial resources 4. Implementation - process of execution about what is planned and utilizing numerous resources for success of business 5. Scaling and Harvesting - Scaling is the process where organization will encounter challenges, painful points in the business for the rapid growth for stability and continuity of business - Harvesting is the process where organization will reap what they sow in dealing with challenges they had encountered throughout process of business TECHNOPRENEURSHIP - merging of technology and entrepreneurship - new breed of entrepreneurship involving collaboration of people who are intelligent, determined, creative, technology savvy, passionate about dealing with risks, functions as a team - plays vital role in making business gain competitive advantage, improve economic growth and accelerate innovation TECHNOPRENEUR - person who perceives an opportunity by introducing new products and services, creating new forms of organization and utilizing new raw materials - undertakes risks that has possibility of earning profit - starts out with nothing but an IDEA defying existing products, practices, and systems wherein one can think of a new solution through the use of technology and innovation. Five Traits of a Technopreneur 1. Strong Communication Skills that Close Deals - communication skills are important to technopreneurs as they diverse people to their business ideas and products - communication skills determine success of technopreneurs by convincing sponsors, different organizations and prospective clients 2. Product Management Knowledge  - importance of having a deep understanding of one’s idea or product in order to present it to target customers in detailed and precise manner - technopreneur must know the overall product in order to easily explain and encourage clients or sponsors 3. Deep Technical Understanding - technopreneur must be tech-oriented as one will deal with technical aspects of idea or product - should know how to be technology savvy to be able to compete with others and understand dynamics of one’s market 4. Take Big Risks - technopreneurs have to take risks as not all ideas or products are meant to be successful - should know how to gamble in competitive environment 5. Persistence - “not all entrepreneurs can be a technopreneur but all technopreneur are entrepreneurs” - acquiring persistence to achieve goals - staying positive in all aspects of life - is not afraid to fail Technopreneurial Process 1. Idea Generation - process of creating, developing and communicating abstract, concrete or visual ideas - includes goals, strategies, concepts, designs, style, plans and actions to come up with possible solutions for actual problems and opportunities 2. Idea Screening - process that evaluates and contrasts new prospective ideas for business - assessment will instigated to make sure that ideas are related to business - used to determine compatibility and whether idea will earn profit or could return on investment 3. Concept Testing - process of testing new or hypothetical products or services before being launched - possibility of generating best product 4. Business Analysis - process of identifying what business needs and determining solutions to business problems that will improve process, management and financial status quo to deliver value to stakeholders 5. Monitoring & Evaluation - important in order to diagnose problems and improve what is needed to stay in competition - organization will be able to identify performance rating of business 6. Commercialization - process of introducing new products and services to market - organization is able to entail production, distribution, marketing sales and customer support to achieve commercial success of new product or service - use of advertisement, social media campaigns and video production are part of commercialization process so that vision and value of product or services will be reached out to society 7. Test Marketing - process of experimenting and assessing product to check viability to customers, compromising actual stores and real-life buying solutions - tests consumer reaction towards new product or services in market 8. Prototyping  - overall design of product where it shows functionalities, specifications and interface that is based on business analysis Difference of Entrepreneur and Technopreneur Entrepreneur Technopreneur likes to compete likes to compete self-starter or pioneer part of a team able to do many things at once able to do many things at once but chooses to delegate creative or has goals and dreams innovative or has greater vision likes to work for oneself (himself) likes to be one to control innovation motivated to achieve and attain financial success motivated by a strong vision and the passion to innovate focuses on the chances of success rather than the take failure in stride and know that if corrected it will possibility of failure lead to success likes to innovate Successful Global and Local Technopreneurs Local Entrepreneurs 1. Diosdado “Dado” Banatao - born in Cagayan Valley Province - popular for having invented the two foundation technologies in every personal computer which is the chipset and the graphics acceleration architecture 2. Joey Gurango - went through bankruptcy and loss of programmers - currently the CEO of Gurango Software - global provider of Human Capital Management solutions - most successful Microsoft Dynamics partner in the Philippines - appointed president at the Philippine Software Industry Association 3. Winston Damarillo - born in a small town in Bohol - among the highest performing venture capital professionals at Intel - CEO and co-founder of Morphlabs - has track record of building successful technology startups - founder and CEO of BayaniPay 4. Joey Concepcion - came from a middle class family in Pasay City - founder of Go Negosyo - business providing seminars, livelihood training, pamphlets, tv programs, and books to give Filipinos knowledge to establish own business 5. Leandro Leviste - belongs to prominent family, wherein his mother is Loren Legarda and his father is Tony Leviste - 23-year-old founder of Solar Philippines  - spent $100 million bank loan to build solar farms and rooftop panel systems Global Entrepreneurs 1. Mark Elliot Zuckerberg - american technology entrepreneur and philanthropist - co-founder, chairman and CEO of Facebook - co-founded and is a board member of Breakthrough Starshot - solar sail spacecraft development project 2. Jeff Preston Bezos - born on January 12, 1964 in Albuquerque, New Mexico, US - american entrepreneur who played a key role in growth of e-commerce as founder and CEO of Amazon.com, Inc - online merchant of books and later of wide variety of products 3. Drew Houston - co-founder and CEO of Dropbox in 2007 with Arash Fewdowsi - led company’s growth from simple ide to service used by 500 million people around the world - received his bachelor’s degree in Electrical Engineering and Computer Science from MIT in 2006 4. Lawrence Edward Page - born on March 26, 1973 - american computer scientist and internet entrepreneur who co-founded Google with Sergery Brin - CEO of Alphabet Inc - Google’s parent company - stepped down as Google CEO in August 2001 for Eric Schmidt and re-assumed role in April 2011 5. William Henry Gates - born on October 28, 1955 in Seattle, Washington - principal founder of Microsoft - one of the most influential and richest people on the planet with estimated net worth of $153 million - unseated by Elon Musk as richest person in the world in November 2020 Module 2: Jumpstarting a Start-up Business LEAN STARTUP - introduced by Eric Ries - shows an iterative procedure of identifying customers, their needs and wants, delivering said needs and wants and earning money Tools used in Lean Startup 1. Business Model Canvas 2. Javelin Validation Board IDEATION PHASE - conceptualization Where to get product ideas  1. Experience - issues, problems, everyday life 2. Environment 3. Culture - social behavior and norms Ideate Product Idea 1. Empathize = Who is the target customer? 2. Define = What are their problem(s)? 3. Ideate = Brainstorm for solution (product) to solve customer’s problem(s) 4. How will you prototype your product? 5. How will you test your product? BUSINESS MODELING Business Model - describes how idea will create value Business Model Canvas - tool allowing visualization of business model - proposed by Alex Osterwalder - tool that can be used to describe and design business model - right side focuses on customer and left side focuses on the business 1. Customer Segments (right side) - classify and group customers based on common attributes like needs and behaviors - who are the specific customers 2. Value Proposition (left side) - identify specific products or services that will cater to needs of specific customer segments - can be original or improved versions of existing market offers - what is being built and what it gives to customers 3. Channels (right side) - interface allowing customers and company to communicate - allow customer to avail product, service and value propositions, allow customer to evaluate and rate transactions and value propositions, and allow customer to learn about company - how to reach customers, how to promote product 4. Customer Relationship (right side) - personal or automated relationship with each customer segment that allows bringing in new customers, retaining existing customers and improving income generation 5. Revenue Stream (right side) - transaction and recurring revenues that company gets from different customer segments - how to make profit 6. Key Resources (left side) - physical, financial, intellectual and human requirements to produce value propositions, communicate with customers, maintain relationships and earn revenues  - raw materials in the production 7. Key Activities (left side) - actions needed to produce value propositions, communicate with customers, maintain relationships and earn revenues 8. Key Partners (left side) - non-competitor or competitor, old or new companies that one can work with to reduce negative risks, increase positive risks or acquire resources and services from - the stakeholders and suppliers needed in the business 9. Cost Structure (left side) - identifies costs needed to create value propositions, manage customer relationships, channels, revenue streams, key resources, key activities and be able to work with key partners - most important, most expensive costs in business Lean Canvas 1. Problem - top 1-3 specific problems wanted to be solved 2. Customer Segments - describes target customers and how many there are 3. Unique Value Proposition - single, clear, compelling message that states why idea is different and worth paying attention to 4. Solution - describes proposed solution to solve problems 5. Unfair Advantage - something that cannot be easily bought or copied from the idea 6. Revenue Streams - how will business make money 7. Cost Structure - fixed costs and variable costs 8. Key Metrics - key numbers that tell how business is doing such as the minimum success criteria 9. Channels - how will business reach customers IDEA VALIDATION 1. Define Goals - What do you want to learn? - Should you validate your market, problem, or product? 2. Develop Hypothesis - What are the most critical assumptions related to your idea? - What is the minimum success criteria? 3. Experiment - Which methods are most useful for testing your assumption? - How do you plan to execute the tests? 4. Validate - Is the assumption valid?  - Proceed or Pivot? Javelin Validation Board - designed by Trevor Owens - used to validate business ideas from concepts to validated data - helps in assuming riskiest functions or factors Steps in using Javelin Validation Board note: repeat steps 1 to 9 for all important customer segments or important problems of customer segments 1. Identify Customer Segment - give each member of team 5 minutes to identify a customer segment - as a group, choose the most important customer - identify 3 customers and arrange them by priority 2. Identify Customer Problem - give each member of team 5 minutes to identify problem of selected customer - as a group, choose the most important and relevant problem of the said customer 3. Skip Solution Row - row will only be filled out from second to last iteration 4. Identify Assumptions - give each member 5 minutes to identify an assumption to make selected problem true - as a group, choose the riskiest assumption 5. Select Experiment Phase - select specific experiment phase Experiment Phases A. Research - interview or observe behavior of prospective customers B. Pitch - collect any proof of commitment from prospective customers to avail product or service - can be in the form of letter, calling card, money, etc C. Concierge - manual simulation of product or service to prospect customers D. Prototype - Prospect customers are able to use a Minimum Viable Product (MVP) to experience prototype of actual product 6. As a group, Determine the Success Criteria (and write in a sticky note, then paste in column one beside the label “Success Criteria”) 7. “Get out of the building” and Conduct the Experiment 8. Analyze Result of Experiment - write result (fraction) and decision (Pivot or Persevere) - write lesson learned 9. Pivot or Persevere - do at least one persevere or pivot on succeeding columns - Pivot is the repeating of column process to improve hypothesis in hope that result will be acceptable  - Persevere is wherein the minimum result needed is achieved or exceeded and improvement of result or testing next riskiest assumption is done Extra Notes (09/07/24) ELEVATOR PITCH - 30 to 120 seconds - business-oriented, purposeful verbal message that is understandable and is as fast as a ride in an elevator - concise, carefully planned and well-practiced answer about self, business, firm, project, etc - situation with opportunity to sell company’s identity and set self apart - should have at most 10 slides containing the problem, solution, and value propositions - having one chance to make the first impression Things to be discussed in an elevator pitch 1. Title 2. Problem 3. Solution 4. Business Model 5. Underlying Magic 6. Marketing and Sales 7. Competition 8. Team 9. Projection 10. Status and Timeline Situation 1. links investors and entrepreneurs 2. searches for financial backing or cooperation with partners 3. meeting people Approach 1. give people hook 2. it must be succinct 3. focus on one simple message 4. make it simple and easy to contact you Rule of Three : AIDA methodology 1. The Hook 2. The Subject 3. Should induce desire 4. Close - call an action Pitch Template 1. WHAT you do 2. WHOM you serve 3. HOW you deliver 4. BENEFITS for clients Killer Pitch - also known as Unique Selling Proposition Template (USP Template) Sentence 1 ○ For ○ Who ○ The ○ That Sentence 2 ○ Unlike ○ Our Product Three things to consider 1. Audience - their interest 2. Story 3. Display/Visuals To Highlight 1. Investors 2. Customers 3. Partners Elevator Pitch - one minute Short Pitch - five minutes Long Pitch - ten minutes “It’s not about ideas. It’s about making ideas happen.” – Scott Belsky, Behance Co-founder “Ang nakakakita ng hindi nakikita ang siyang kikita” – Carlo Calimon