Technopreneurship Midterm Topics PDF

BUSINESS PLAN MODELS AND PROPOSALS Value Proposition Examples: 1. “Saves you 30 minutes every day” 2. “Helps you stop smoking so you can live longer” 3. “Make sure you never miss your favorite TV show” 4. “Make sure you never miss your favorite TV show”...

BUSINESS PLAN MODELS AND PROPOSALS Value Proposition Examples: 1. “Saves you 30 minutes every day” 2. “Helps you stop smoking so you can live longer” 3. “Make sure you never miss your favorite TV show” 4. “Make sure you never miss your favorite TV show” 5. “Let’s people know you’re stylish and trendy” 6. “Let’s you enjoy retirement early” 7. “You’ll never be stuck without your digital documents” 8. “You’ll always be able to get a ride home” What is Value Proposition? Need Key Driver: Need → personal → business → entertainment → social status Pain Key Driver: Pain → Inefficiency → Unreliability/ Inconsistency/Uncertainty → Fear of losing out → What is keeping them awake at night? Improvement Key Driver: Improvement → Saving Time → Saving Money → Quality → Convenience Value Proposition - turn “IT” (product) statements into “YOU” (customer value) statements Why Value Matters - Your business model is determined by how you deliver value to your customers or beneficiaries Business Model vs Revenue Model Business Model Revenue Model Business Model is how a business generates Revenue Model is how a business generates value for customers. revenue. Value Proposition 1. What is in it for me? (the customer, beneficiary, partner) 2. Reduction of ‘pain’ points that cause frustration or discomfort 3. Creation of ‘gains’ or positive improvements that the customer is seeking 4. Accomplishment of important ‘jobs’ or roles in the customer’s life Social Purpose May Not Be of Value to Most People make buying decisions generally on “pain” or “gain” basis They may have no understanding of the problem (social purpose) you are trying to solve You must take into account your market and competition (commercially) Turning “It” Statements into “You” Statements Translating all the things your product or solution can do into statements about what they mean for the customer or beneficiary It’s a local coffee shop It’s a nice place to hang out It sells other locally made products It employs disadvantaged youth It donates profits to local producers Business Model Examples 1. Product - Ruby Cup in Africa addresses the lack of menstrual hygiene among low-income women through an affordable scheme to provide hygiene products 2. Solution - Equal Exchange in the US -a fair trade coffee company legally structured as an employee-owned cooperative. 3. Market Linking - Social Traders Australia –certifies social enterprises then facilitates deals between social enterprises and corporate and government customers. 4. Service Linking - Auticon in Germany -trains people with autism and matches them with qualified job opportunities in the IT sector.  5. Ecosystem - Cristalino Lodge in the Amazonas region coordinates an ecolodge, an environmentally-friendly tour operator employing mostly local people, and biodiversity research to improve conservation measures. 6. Donation Model - Belu Water in the UK –sells environmentally friendly bottled water and gives all profit to WaterAid. 7. Beneficiary as Employee - Brigade in London –top class restaurants giving disadvantaged young people the chance to gain professional training TECHNOPRENEURSHIP ECOSYSTEM - Entrepreneurial ecosystem defined as the interaction of entrepreneurs and various institutions and organizations to support the development of startups being built up. Carlos Barraza (2018) Successful Technopreneurship = H E L F H - human resources E - environment L - laws and policies F - financial resources Human resources Components: Research - Thinker, Idea generator, Innovator Developer - Implementor, technical people Scanner and marketing people Financers Environment Components: Science parks, Incubation centers Academic Institutions, R & D Centers Internet access, Communication Communication and Other Support Services Geographic accessibility Venture Mentoring Services/Support Laws and policies Components: Intellectual Property Rights Office Technology Licensing Office – facilitates commercialization of inventions Legal Services Intellectual Property Rights - the rights given to persons over the creations of their minds. It usually grants the creator an exclusive right over the use of his/her creation for a certain period of time.  - Intellectual Property Code of the Philippines is the Republic Act No. 8293 of June 6, 1997 is an act prescribing the intellectual property code and establishing the intellectual property office, providing for its powers and functions, and for other purposes. Categories: Industrial property includes inventions (patents), Trademarks include industrial designs, and geographic indications of source. Copyright includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Patents - grants an inventor exclusive rights to make, use, sell, and import an invention for a limited period of time, in exchange for the public disclosure of the invention. - a term of protection of twenty (20) years providing an inventor significant commercial gain. In return, the patent owner must share the full description of the invention. - This information is made available to the public in the form of the Intellectual Property Official Gazette (is the public journal and main publication of the government of the Republic of the Philippines) and can be utilized as a basis for future research and will in turn promote innovation and development. Trademark - a tool used that differentiates goods and services from each other. - can be one word, a group of words, sign, symbol, logo, or a combination of any of these. - Generally, a trademark refers to both trademark and service mark, although a service mark is used to identify those marks used for services only. - Trademark is a very effective tool that makes the public remember the quality of goods and services ® - Registered trademark ™ - Intent to use application filed for product SM - Intent to use application filed for services - Rights are reserved exclusively for owners for 17 years; it can be renewed and lasts indefinitely. TM = unregistered trademark, SM = unregistered service mark, ® = registered trademark Trademark Infringement, Counterfeiting, and Dilution. - Infringement is a mark that is likely to cause confusion with a trademark already existing in the marketplace. - Counterfeiting is the deliberate copying of a mark. - Dilution is defined as the value of the mark is substantially reduced through competition or through the likelihood of confusion from another mark. Copyright - a protection for authors of original works, whether published or unpublished. It covers original works of authors, composers, screenwriters, and computer programmers. (Section 172 of the IP Code) TWO TYPES OF RIGHTS UNDER COPYRIGHT (1) economic rights, so-called because they enable the creator to obtain remuneration from the exploitation of his works by third parties, (2) moral rights, which makes it possible for the creator to undertake measures to maintain and protect the personal connection between himself and the work. - The term of protection of Copyright for original and derivative works is the life of the author plus fifty (50) years after his death. Financial resources Components: Venture Capitalists (VC) and Investors Business Sector Funding Agencies Financial Services (i. e. Accounting) TECHNOLOGY VENTURE Human Resources Academe R & D Centers technical personnel Environment Science Parks Incubation Centers Infrastructure Communication other Support Services Laws and Policies Technology Licensing Office IPR Office Financial Resources VC Investors Business Sector Funding Agencies The Philippine Entrepreneurial Ecosystem Environment Department of Science and Technology (DOST) Commission on Higher Education (CHED) Department of Trade and Industry Framework of Engagement or Collaboration  Why Technopreneurship? Philippine Data Elyssa Lopez (2019) reported that the Philippines has 106 million population with a median age of 24.4 where most of which are Internet-savvy. The country is also English-proficient; thus BPO prevailed in the country (Lopez, 2019). How? Start the Ball Rolling - Innovation → Person gets an idea, active search, by chance, present employment or experience - Triggering Event → career prospects → deliberate choice - Implementation - Growth Common Components Three crucial components for business: 1. Excellent market opportunity 2. Superb entrepreneur (and management team) 3. Resources needed to start the company and make it grow 1. Excellent market opportunity Customer Need - “Can you give me the names of prospective customers?” → If you cannot give any names, you only have an idea, not a market. → Would-be entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have not yet identified a market need. Timing - Will the idea or window of opportunity look brief, it could just be a fad? → If the window is brief, the entrepreneur will rush to open the business, usually with inadequate planning. → Can lead to costly mistakes.  2. The Technopreneur and the Management Team - Even with the right opportunity, the business will be successful if led by a person with strong entrepreneurial and management skills. - Entrepreneurs should have experience in the same industry or a similar one. Cannot go on OJT at the same time. - Ideal entrepreneur is one who has been a successful entrepreneur in the same industry - Have management experience, preferably with responsibility for budgets, profit and loss, sales. 3. Resources needed to start the company and make it grow. - Entrepreneurial frugality is a strategic approach that emphasizes optimizing resources, maximizing efficiency, and minimizing unnecessary expenditures within a business. This concept entails several key principles that contribute to the success and sustainability of an enterprise. - Key Aspects: Low overhead Entrepreneurial frugality involves keeping overhead costs to a minimum. This includes expenses related to office space, utilities, administrative costs, and other operational expenses. By adopting a lean approach to overhead, businesses can allocate resources more efficiently toward revenue-generating activities and innovation High productivity Frugality encourages businesses to focus on achieving high levels of productivity without compromising quality. By streamlining processes and optimizing workflow, entrepreneurs can ensure that every effort and resource expended generates significant value. This approach often leads to enhanced output, customer satisfaction, and competitiveness Minimal ownership of capital assets Entrepreneurial frugality challenges the conventional notion of owning and maintaining extensive capital assets. Instead of heavy investments in physical assets, businesses may opt for leasing, sharing, or outsourcing solutions. This minimizes upfront costs and enables greater flexibility to adapt to changing market dynamics Benefits of Entrepreneurial Frugality Financial Sustainability - By minimizing unnecessary expenses, businesses can improve their financial health, maintain profitability, and weather economic fluctuations more effectively. Resource Optimization - Entrepreneurial frugality ensures that resources are allocated to activities that directly contribute to growth and innovation. Innovation - The practice of frugality often encourages creative problem-solving and innovative thinking to achieve goals with limited resources. Risk Mitigation - Lower overhead and efficient resource utilization reduce financial risks and enhance a business's ability to withstand unforeseen challenges. Sources of seed capital The 9 F’s to consider in starting a business 1. Founders – first class entrepreneur 2. Focused – focus on niche markets, specialize 3. Fast – decision making, implementation 4. Flexible – open mind, respond to change 5. Forever innovating 6. Flat - organizations 7. Frugal – low overhead, high productivity 8. Friendly – to their customers, suppliers, workers 9. Fun – to be associated with an entrepreneur company