Escolar Documentos
Profissional Documentos
Cultura Documentos
TECHNOLOGY ENTREPRENEURSHIP
Lecture 2:
Business Opportunities: Identification,
Evaluation and Selection
Prof Dr. Izaidin Abdul Majid
izaidin@utem.edu.my
FPTT - UTeM 1
WHAT IS IDEA?
Idea is a thought
e cti o n o f th ou g h ts that
orcoll ea
in th e m in d . A n id
generate
with
is usually generated
be
intent, but can also
a ted u n in te n ti o n a lly.
cre
BUSINESS IDEA
It is the first milestone in the
entrepreneurship process. Characteristics
of a promising business idea are:
Fulfils customer need or solve a
problem
Innovative
Unique
Clear focus
Profitable in long run
SOURCES OF IDEAS
Personal Experience
Hobby
Serendipity (Accidental
Discovery)
Social Networking
Interviewing successful
entrepreneurs
Exhibition
Customers
INNOVATIVE
TECHNIQUES TO
GENERATE BUSINESS
IDEA
Combining two businesses
Recognising hot trend and determine
customer needs
Improving products, their functions
and offer new benefits
Recognising need in the market that is
not currently being serve
RECOGNISING
OPPORTUNITY
Peter Drucker
Opportunities
FPTT - UTeM 7
IDEA VS OPPORTUNITY
Idea Opportunity
Solve a Create/add
problem value
Robust
market/profit
margin
Attractive Timely
QUALITIES OF
OPPORTUNITY
Anchor to create
Durable
value
HOW TO IDENTIFY
OPPORTUNITY???
People
People
People
QUANTIFYING PAIN
WHY PAIN IS CRITICAL
(ESPECIALLY FOR TECH START-UPS)
Arrow
T50
Staple
Exit
PRODUCT DESIGN
OPPORTUNITY
Push Here
Push Here
Arrow T50
TAKE AWAYS:
1) To properly execute a successful technology
business, the Ideal Customer should be explicitly
identified and named.
2) Quantifying monetarily customer pain is critical.
3) The more painful, the better.
4) Time is not money for Start-ups trying to justify
its business model.
Process of Identifying, Evaluating and
Selecting.
FPTT - UTeM 23
1. Identifying the Need and Wants of Customers.
Competition
Capital Requirement
Risk
Liquidity level
Loan
Credit
Foreign Exchange
4.Selecting a Business opportunity
and preparing a business plan
Entrepreneur will end up with only one
business opportunity.
Whether the opportunity can be implement
Library and
Internet Research
Library Research
Libraries are an often underutilized source of information
for generating new business ideas.
The best approach is to talk to a reference librarian, who can
point out useful resources, such as industry-specific
magazines, trade journals, and industry reports e.g. Business
Times, Wall Street Journal etc.
Simply browsing through several issues of a trade journal or
an industry report on a topic can spark new ideas.
Examples of Useful
Large public and Search Engines and
university libraries Industry Reports
Market Research
typically have access Malaysia
to search engines LexisNexis Malaysia
and industry reports BizMiner
that would cost ProQuest
Mintel
thousands of dollars
to access on your
own.
Copyright 2012 Pearson
Education, Inc. publishing as 2-
Prentice Hall 34
Library and Internet Research
Internet Research
If you are starting from scratch, simply typing new
business ideas into a search engine will produce links to
newspapers and magazine articles about the hottest new
business ideas.
If you have a specific topic in mind, setting up Google or
Yahoo! e-mail alerts will provide you with links to a
constant stream of newspaper articles, blog posts, and news
releases about the topic.
Targeted searches are also useful.
Feasibility analysis is
the process of
determining whether a
business idea is viable.
Feasibility It is the preliminary
Analysis evaluation of a
business idea,
conducted for the
purpose of determining
whether the idea is
worth pursuing.
Industry/Target Market
Product/Service Feasibility
Feasibility