What are the characteristics of a good opportunity

1
What are the characteristics of a good
opportunity?

• Big enough
• Need is strong enough
• Need is recognized by customers
• Competitive advantage attainable
• Business sustainable
• Business model understandable
• We have competencies needed (or we can get them
  readily)

2
How do you look for opportunities?

• Sources of ideas
• Prior experience
• Customers prospective customers
• RD
• Patents
• Prior employment
• Contact network
• Trade pubs
• Trade shows
• Others?

3
Good Ideas, according to Doug Hall(Jumpstart
Your Business Brain)

• Overt benefit (not defined as product features,
  but a real benefit to customer)
• Real Reason to Believe credibility
• Dramatic Difference
• Defined target segment

4
Creativity

• Explore stimuli
• Gather stimuli
• Multiply stimuli
• Create customer concepts
• Optimize practicality
• Leverage Diversity
• Face Fears

5
Market Research

• Purposes
• Determine whether a market opportunity exists
  exploratory
• Determine whether a market opportunity exists
  confirmatory
• Market size segment size
• How should the offering be structured

6
Concept discovery and testing

• Talk to prospective customer
• Ask what their problems are and relative strength
  of each problem
• Ask how they address these problems currently
  (first cut, competitive info)
• Ask how they wish these problems would be solved
• Show concept get feedback
• If you can do it, get info on day in the life
  of customer

7
Market Research Micro Level

• Ryans 4 step dance
• Call gt Modify gt Build it gt Sell it
• Getting to the right people
• Start with people you know get some referrals
• Web site searches
• Cold calls
• Sunflower model

8
NVI/Road Test -- Mullins
Market Attractiveness
Industry Attractiveness
Mission, etc.
Ability to Execute
Connected in Value Chain
Customer Benefits Attractiveness
Sustainable Advantage
9
Where are you in the Concurrent Processes?
Initial ValueProposition Initial Product
Concept Initial choice of target segments Build
the Team Initial businesspitch prepared
Validate
I D E A
10
This is Exploratory Research What are you
trying to do?

• Learn context get a sense of the business
  environment
• Learn what are the right questions to ask
• Learn how to ask the right questions
• Get a deep sense of understanding prospective
  customers
• Who, what, when, where, why, how
• I.e. who and what situation they are facing

11
Objectives in designing the exploratory
instrument

• Get the respondent to give thoughtful answers
• Get the respondent to distinguish between ideas
  or issues that are tightly connected and those
  that are only loosely connected
• Get the respondent to talk about the most
  important things first

12
Tips for Exploratory Interviews

• Choose people who will explain well and who have
  insight
• Choose people who will tolerate naïve questions
• Ask open ended questions (come prepared) ask
  them to explain their answers
• Dont wear out your welcome
• When finished, ask permission to ask future
  questions