entrepreneurship and innovation

INNOVATION

" Innovation is the specific function of entrepreneurship, whether in an existing business, a public service institution, or a new venture started by a lone individual in the family kitchen. It is the means by which the entrepreneur either creates new wealth- producing resources or endows existing resources with enhanced potential for creating wealth." types: -invention -extension -duplication -synthesis

creativity

"Creativity Involves Thinking Out of the Box, Looking at Things in a Different Way and Doing The Unexpected!" -Is there a new way to do it? • Can you give it a different twist? • What if we do the opposite? • Can the parts be rearranged? • Can we put it to other uses? • Can ideas be combined? • What else could we make from this? • Can you borrow or adapt it?

social entrepreneurs

"They play the role of change agents in the non-profit sector by: adopting a mission to create and sustain social value, recognizing and relentlessly pursuing new opportunities to serve that mission, engaging in a process of continuous innovation, adaptation and learning, and acting boldly without being limited by resources currently in hand."

what is an opportunity

-Must have the capacity to generate value • Economic value • Social value • Environmental value • Must be new or unique

the stanford design school five phases of design thinking

-empathy- getting out and talking to your customers directly -define- is defining a problem statement from that empathy work -ideate- brainstorming lots of ideas that could help you solve the problem you identified -protoype- building a crude version of the solution that you want to test with users -test- getting out and testing with users

four pillars of an entrepreneurial opportunity

-large and growing market -strong team -excellent financial returns -competitive adavantage (IP)

scientific method

1. ask questions 2. background research 3. hypothesize 4. experimentation 5. analyze data 6. asses results

rules of experimentation

1. focus on all stakeholders- customers, partners, suppliers, distributers, even real estate agents 2. ask lots of questions 3. think like a scientist but don't act like one 4. build your learning into the next iteration 5. keep track of your data 6. keep your experiments low cost and quick 7. don't just talk with stakeholders, interact with them 8. dont ignore data just because you don't like what they are telling you

nine dimensions of observation

1. space- the physical place or places 2. actor- the people involved 3. activity- a set of related acts people do 4. object- the physical things that are present 5. act- single actions that people do 6. event- a set of related activities that people carry out 7. time- the sequencing that takes place over time 8. goal- the things people are trying to accomplish 9. feeling- the emotions felt and repressed

three types of experiments

1. try out new experiences (live in a new country, work in multiple industires): useful for generating new business ideas 2. take apart products, processes, and ideas (disassemble a product, visually map out a process): useful for generating new business ideas 3. test ideas through pilots and prototypes (build a prototype, pilot a new process): useful for generating and testing new business ideas to see what works

wicked problem

A large, complex social problem without a clear solution, where there is limited, confusing, or contradictory information available, and where a range of people with conflicting values engage in debate.

TRADITIONAL STEPS OF AN ENTREPRENEURIAL PROCESS

step one- think of an idea step 2- do market research step 3- get some financial projections step 4- find a partner/team step5- write a business plan step 6- get financing step 7- find space, build a prototype, hire people step 8- bring your product/ service to market step 9- manage the busines step 10- plan an exit

six types of customers

user- teen playing video game influencer- celeb endorsing recommender- blogger reviews economic buyer- buyer for game stop who decided to stick the video game in the companies stores decision makers- CEO of the gaming company who decided to buy the game from the game designer saboteur- parents who decided to not allow their child to buy the game

achieving success

• Concentrate on what you do best • Don't be satisfied with the status quo—innovate and practice continuous improvement • Choose the right people to work with: vendors, bankers, and employees • Networking is important; it's important when people like you and you like them • Don't be afraid to take risks • Take one day at a time • Follow your passion and have fun!

interviewing for identifying needs

• Critical part of the inspiration phase. • Be open-minded and be a good listener. • Interviewing is a skill that improves with practice. • Determine who you want to interview. • Determine the goal of the interview. • Draft an introduction and prepare open-ended questions. • Plan to ask follow-up questions ("peel the onion").

practice of entrepreneurship

• Emphasize early action over planning • Do what you can; try what you can't • Try early • Fail sooner • Experiment with many new ideas simultaneously diagram- your impact statement-means at hand- affordable loss- network and enroll other

criteria for a successful idea

• Feasibility—what can be possibly achieved in the near future; • Viability—how sustainable the idea is in the long term; and • Desirability—who will want to use or buy the product or service.

WHAT MAKES A COUNTRY ENTREPRENEURIAL?

• Financial resources • Support from government • Entrepreneurship education • Research and Development (R&D) transfer • Commercial and legal infrastructure • Entry regulation • Physical infrastructure • Cultural and social norms

fatal flaws of a concepts

• It won't work • No real need • Hidden traps • Bad economics • No protection • Limited life • Customer education • Inconvenience • Extensive service requirements

why is marketing important

• No venture can be established and grow without a customer market. • It is difficult and expensive to bring new products and services to market. • Organizations need to differentiate their products and services to succeed. • Companies must be able to pivot quickly to retract to changes in the market.

barriers to creativity

• One "Correct" Answer • Being Logical • Following the "Rules" • Being Practical • Becoming Specialized • Avoiding Ambiguity • Fearing Mistakes/Failure • Believing You Are NOT Creative

WHY IS ENTREPRENEURSHIP IMPORTANT?

• Primary source of new jobs in the economy • Driving force in the economy • Outstanding source of innovation • Is the essence of the "American Dream" • Creates wealth—advances society Beyond these reasons, it also empowers individuals to pursue their professional career dreams.

strong attributes of an opportunity

• Significant savings • Solves serious problem • Offers convenience • Integrates well • Clear market I.D. • Market barriers • Large and growing market • Big upside; low downside

types of social entrepreneurs

• Social Purpose Ventures • PACT (http://www.pactworld.org/) • Social Consequence Entrepreneurship • Sword and Plough (https://www.swordandplough.com/) • Enterprising Nonprofits • Goodwill Industries (http://www.goodwill.org/)

sources of innovation

• Unexpected occurrences • Novocaine: invented for surgery;used in dentistry • Incongruities • Shipping: cost of idle time -roll-on and roll-off containers • Process needs • Portable Generators: emergency power when normal power is lost • Industry/Market changes • Health Care: Out-patient, clinics, etc. • Demographic changes • Club Med: increase in wealth and interests in exotic travel • Knowledge-based concepts • Computer: need I say more...

ENTREPRENEURIAL MINDSET

Core Competencies Required by Entrepreneurial Leaders • Innovationandcreativity • Opportunityrecognitionandassessment • Strategicbusinessplanning • Managementandleadership • Negotiationandconflictresolution • Financial analysis and budgeting • Salesandmarketanalysis • Verbalandwrittencommunications • Team-building • Riskmanagement • Willingnesstotry—andpossiblyfail

competitive analysis

Knowing Your Competition Who are they? Where are they? What are their strengths and weaknesses? Who are their customers? How do they advertise and promote? What is the basis of competition?

CLASSIC DEFINITION OF ENTREPRENEURSHIP

Schumpeter • An entrepreneur is the person who destroys the existing economic order by introducing new products and services, by introducing new methods of production, by creating new forms of organization, or by exploiting new raw materials.

storyboarding

Storyboarding is an early form of prototyping that provides a high- level view of thoughts and ideas arranged in sequence in the form of drawings, sketches, or illustrations.

market segmentation

The identification of distinct heterogeneous buying groups, and the development and implementation of a marketing strategy to fit each group segment according to: Type of buyer Geography Demographics Time of use Benefits sought Buyer attitudes

design thinking

a thinking process most commonly used to solve complex problems, navigate uncertain environments, and create something that is new to the world

five AEIOU dimensions

activities enviornments interactions objects users

TABLE 4.7: CORPORATE SOCIAL RESPONSIBILITY VS. SOCIAL ENTREPRENEURSHIP

c- peripheral to mission s- core to mission c-side show s- main event c- a department s-the entire org. c-seeks to reduce harm s- measures the social impact c-feel and look good s-do good c-stakeholder is the observer s- stakeholder is the customer c- consequence driven s-purpose driven c- image motivated s- opportunity motivated

example of creation approach

creation in the center-- off to sides= cooking show, indian cookbook, teaching classes, food-themed tour, lunch delivery service, restaurant

divergent thinking vs convergent thinking

d- generate as many ideas as possible without being trapped by traditional problem solving methods or pre determined constraints c- narrow down the number of ideas generated through divergent thinking in an effort to identify which ones have the most potential

kauffman index of entrepreneurship

entrepreneurship is a global phenomenon- opportunity based vs need based.

five skills important to the practice of entrepreneurship

experimentation, play, creativity, empathy, and reflection

social entrepreneurs vs for profit

for profit- motivation: profit, passion, impact :priorities: maximizing wealth, solving problems

CSR makes good business sense

good csr helps to: -engage more customers, especially if your firm is helping to support good causes -lead to real innovations, such as enviornmentally safe products -decrease costs by cutting packaging, travel, and energy expenses -increase public image through the companys efforts to do good deeds -bring people together by holding charity events such as sponsored walks and bake sales

growth mindset

i can learn anything i want to. when frusterated, i perservere. i want to challange myself. when i fail, i learn. tell me i try hard. if you succeed, im inspired. my effort and attitude determine everything

fixed mindset

im either good at it, or im not. when im frusterated i give up. i dont like to be challenged. when i fail, im no good. tell me im smart. if you succeed i feel threatened. my abilities determine everything

design thinking phases

inspiration- what is the problem? how might we? ideation- brainstorming, work with a diverse group implementation- testing assumptions, transforming ideas into actions, fast cheap, experimentation

APPROACHES TO ENTREPRENEURSHIP

prediction: linear process, predictible outcomes, best in times of certainty creation- method requires practice, trial and error. future is unpredictable yet controllable

ENTREPRENEUR'S MUST

1) Assess their own financial reality. It can be very difficult to sustain a salary in the early years of starting a new business, and as a result it is essential for would be entrepreneurs to work through their own personal income needs. 2) Identify key contacts in their networks. The people in an entrepreneur's network are his or her greatest potential source of capital, clients, employees, and feedback. Before jumping into an entrepreneurial endeavor it's essential to take an inventory of the resources in one's network. 3) Reach out to sources of free advice and feedback. Most people root for the underdog, and as a result would be entrepreneurs have at their disposal the advice and good will of countless people in their communities and the business world at large.

TRUTHS ABOUT ENTREPRENEURSHIP

TRUTH #1: ENTREPRENEURSHIP IS NOT RESERVED FOR STARTUPS • Creating a business based on research • A successful business can: • develop into an organization in its own right • be merged with or acquired by another organization

truth 2

TRUTH #2: ENTREPRENEURS DO NOT HAVE A SPECIAL SET OF PERSONALITY TRAITS • Traits include but are not limited to: • Desire for achievement • Ability to influence events • Tendency to take risks • Tolerance for uncertainty • Patterns exist in entrepreneurial thinking.

truth 3

TRUTH #3: ENTREPRENEURSHIP CAN BE TAUGHT • It is a method that requires practice, not a process. • "Process" implies a known outcome, but entrepreneurship is unpredictable.

truth 4

TRUTH #4: ENTREPRENEURS ARE NOT EXTREME RISK-TAKERS • Calculated risk takers • Assess what they are willing to lose • Practice the cycle of act-learn-build

truth 5

TRUTH #5: ENTREPRENEURS COLLABORATE MORE THAN THEY COMPETE • Community plays an important role • Draw on shared experience • Test new ideas with target customers

truth 6

TRUTH #6: ENTREPRENEURS ACT MORE THAN THEY PLAN • Connect with investors and potential customers • Generate buzz around the product/service • Build a strong network

truth 7

TRUTH #7: ENTREPRENEURSHIP IS A LIFE SKILL. • Think • Act • Identify opportunities • Approach problems in a specific way • Adapttonewconditions • Takecontrolofpersonal goals

understanding the customer

The Customer Profile Demographics Age, gender, income Psychographics Innovative, risk-averse, etc. User-term Characteristics Heavy/passive users, level of usage

entrepreneurial mindset

The ability to quickly sense, take action, and get organized under uncertain conditions. Includes the ability to persevere, accept and learn from failure, and get comfortable with a certain level of discomfort.

visualizing opportunity

see yourself, see the market, see the competition

see yourself

seed sources in the middle: off of it is : passion, energy, experience and knowledge, time, personality, and capital

problem-solution-benefit

state the problem: what is the problem your customer is experiencing show the solution: what are you offering as a solution to the problem show the benefit: how will your customer benefit from the solution