“Overcoming Uphill Challenges for the New Generation Entrepreneurs” midterm cheat sheet

Introduction

Myers-Briggs Type Indicator(MTI)

• Focus: Extraversion(E), Introversion(I)
• Information: Sensing(S), Intuition(N)
• Decision: Thinking(T), Feeling(F)
• Deal: Judging(J), Perceiving(P)

First Mover Advantage

• Not exactly
• 47% failure rate for market pioneers
• Not being first to market, but understanding the type of market enter

Overcoming uphill challenges

• Define the problem
• Generate alternatives
• Evaluating and selecting alternatives
• Implementing solutions

Innovation and Entrepreneurship

Creativity, Innovation, Entrepreneurship

• Creativity: come up with new and brilliant ideas
• Innovation: the process(CDE) of bringing creative ideas to life
• Entrepreneurship: different dimension

Strategic Entrepreneurship

• Value Creation
• Value Delivery
• Value Capture
• The whole process takes 8 years in average

Entrepreneurship

• The highest ratio of entrepreneurship in the world: Angola(40.1%), Ecuador(35%), Chile(37%)
• Factor Driven, Efficiency Driven, Innovation Driven(21.1%)

Create Value

• Idea
• Evaluation
• Opportunity, Entrpreneurship, Resources
• Good Business Plan

Creative Ability

• IQ is a gift, but innovation is not totally
• Innovators skills
  • Associational thinking
  • Questioning
  • Observing
  • Networking
  • Experimenting

Mastering Innovation

• Pro: commit to what is important to you
• Amateur: only say something that is important to you
• Innovation Process
• Persist
• Innovation environment
• Innovation motivation

Strategic Opportunities

• External changes: PEST factors
• Internal changes: VRIO resources
• Stakeholders: Strategic intelligence

Reasons Startups Fail

• No Market Fit
• Resources
• Team

Product Development Model

• Concept/Seed
• Product Development
• Alpha/Beta Test
• Launch 1st ship

Customer Development Triangle(CDE)

• Problem
• Target Customer
• Product (solution)
• Pivoting: when a CDE failed, fixed the product and find new problem and target customer

HiPPO

• Highest Paid Person’s Opinion
• The tendency for lower-paid employees to defer to higher-paid employees when a decision has to be maid

Market Type

• Niche strategy: differentiating your brand in a crowded market with some advertising strategies

Founding Team

• Visionary: CEO
• Hacker: CTO
• Hustler: COO

VC cares:

• Target Audience
• Product and Technology maturity
• Minimum Viable Product/prototype
• Entrance barrier
• Addressable market and growth
• Marketing and pricing strategies of competitors
• Working experiences of team members
• Time of breakeven
• Sources and uses schedule

Tangible Value Proposition

• Need
• Approach
• Benefits
• Competition
• Has specific and quantitive description

Business Plan

• Who you are
• What your ideas are
• How that all come together

Business Model

• Describe how you are going to generate revenue with your business

3 key players in entrpreneurship

• Entrepreneurs
• Investors
• Supporters

Challenges

10 Industries to watch

1. Consumer electronics
2. Healthcare
3. Next-gen computing
4. Transportation
5. Energy
6. Smart cities
7. Travel
8. Gaming
9. Media
10. Banking

Taiwan Environment

• Technology REadiness Level
• No big data
  • Our chance: AIoT: real time monitor

Decision Making

Solving a problem

• Define the problem
• Generate alternatives
• Evaluating and selecting alternatives
• Implementing solutions

Decision making types

• Water channel: programmed decision
• Pachinko: non-programmed decision

How to make decision?

• Rationality
• Bounded rationality
• Power
• Politics
• Incremental Decision Model
• Garbage Can
• Unstructured Model

Rational Approach

1. Identify the problem
2. Establish decision criteria
3. Gather information
4. Generate alternatives
5. Weigh the evidence
6. Choose the best alternatives
7. Implement the decision
8. Evaluate the decision

Analytic Hierarchy Process(AHP)

• Combining qualitative and quantitative
• Steps:
  1. Build the Hierarchy
  2. Establish the priorities
  3. Caluculate the ratings

Limitations of rational decision making

• A great deal of time, information
• Assume rational, measurable criteria are available and agreed upon
• Assume accurate, stable and complete knowledge of all alternatives
• Assume a rational, reasonable, non-political world

Carnegie Model

• Bounded Rationality + Conflict
• Politics
• Search
• Satisficing(satisfy + suffice)

Incremental Decision Model

• Many small policy changes
• Stability is the main concern
• It’s not adequate for strategic or long-term goals

Garbage Can

• Random and unsystematic decision making
• Organized anarchy
  • Problematic preferences
  • Fluid participation
  • Unclear understood technologies
• No decision making process
• Problems randomly attach to solutions in the ‘Garbage Can’

Contingency Framework

Unstructured Model

• Intuition
• Reasoned judgement

B.R.A.I.N.

• Benefits
• Risks
• Alternatives
• Intuition
• Nothing: what if you do nothing right now

Common mistakes

• Procrastinating
• Make or Break
• Not involving stakeholders
• Groupthink
• Psychological bias
• Overconfident
• Carrying on regardless

Cross Domain-Managing Unknowns

Unknowns?

• Known Known
• Unknown Known
• Known Unknown
• Unknown Unknown

High Reliability Orginizations(HRO)

• Preoccupation with failures
• Reluctant to simplify interprtation
• Sensitivity to operations
• Commitment to resilience
• Deference to expertise

10% Theory

• Taking the advantages of the 10% you know better than your competitors
• Stay flexible

4 types of market

• Existing
• Resegmented: in the chasm
• New: in/left side of the chasm
• Clone: in/left side of the chasm

Open Innovation

• Open to new people, new information, new ideas
• ‘Complemntary’ for closed innovation
• Reasons:
  • Innovation requires a multidisciplinary approach
  • Time, cost saving
  • Risk minimization
• Strategic Entrpreneurship
  • Education
  • Technology Scouting
  • Accelerator
  • Investment
  • Acquisition

Customer Development

• Customer Discovery
• Customer Validation
• Customer Creation
• Company Building

Managing Gaps

Intrapreneurship

• Corporate Entrepreneurship
• The new entrepreneurship
• Organic innovation is more profitable than growth driven by acquisition

Obstacles to transform

• Day-to-day decisions undermine our stated strategy to change
• Lack of a coherent vision
• Not having the systems to support innovation
• Not having the right talent
• Lack of compelling ideas or growth opportunities

Stakeholder Model

1. Environmental Analysis
2. Key Stakeholders
3. Strategic Intelligence
4. Balanced Strategies
5. Excellent Stakeholder Relationships
6. Superior Returns

Stakeholder

• Those who have rights or interests in a system

Environmental Analysis

• Adizes’Corporate lifecycle

  • Courtship/Infancy/Go-go/Adolescence
  • Prime
  • Aristocracy
  • Recrimination
  • Bureaucracy
  • Death

• Highly Political Organization

  • Minimally political: camaraderie is strong
  • Moderately political: rules-driven
  • Highly political: inner circle
  • Pathologically political: distrust

• 4 Generic Intrapreneurship models

  	Organizational Ownership(Diffused)	Organizational Ownership(Focused)
  Resource Authority(Dedicated)	Enabler	Producer
  Resource Authority(Ad Hoc)	Opportunist	Advocate

Key Stakeholders

• Stakeholder Analysis

  • Identify your stakeholders
  • Prioritize your stakeholders
  • Understand your stakeholders

  	Interest(Low)	Interest(High)
  Power(High)	Keep Satisfied	Manage Closely
  Power(Low)	Monitor	Keep Informed

Strategic Intelligence

• Collect detailed information about stakeholders
• Stakeholder Management
  • Power/Interest analysis
  • What you want
  • Messages
  • Actions and Communications
  • Implement your plan
• Porter’s Value Chain
  • Identify subactivities for each primary activity
  • Identify subactivities for each support activity
  • Identify links
  • Look for opportunities to increase value

Balanced Strategy

• Use information collected to create value-creating strategies
• Manage your boss
  • Clear objective and take your job seriously
  • Your boss as a resource
  • Treat your boss with respect
  • Advise but then obey
• Create new products
  • Core benefits
  • Basic product
  • Expected product
  • Augmented product
  • Potential product

Excellent Stakeholder Relationships

• Trust and cooperation
• Knowledge sharing
• Fewer negative responses
• Manage your boss:
  • Never make excuses
  • Positive force
  • Healthy boundaries
• Relationship with powerful people
  • Reverse recognition
  • Sharing information
  • Learning
  • Mutual interests
• Political workplace
  • Focus on your goal
  • Identify stakeholders
  • Develop alliances
  • Avoid gossip
  • Combat bullying

Superior Returns

• Average required IRR: 30%
• Average required MOIC(Multiple of Invested Capital): 5.5

Must-have skills

1. Leadership
2. Effective communication
3. Public speaking mastery and presentations
4. Problem solving and conflict resolution
5. Art of negotiation

Strategic Entrepreneurship

Strategy

• Components:
  • Long-term goal
  • Scope of the firm
  • Competitive advantage
• What Not to do:
  • Customer
  • Product
  • Activity

Reasons for not using strategic planning

• Scarcity of time
• Lack of knowlede
• Lack of expertise
• Lack of resources

Strategic Planning

• Analysis or assessment
• Strategy formulation
• Strategy execution
• Evaluation or sustainment/management phrase

VRIO

• Value
• Rare
• Imitate (costly to do)
• Organize

PEST analysis

• Political
• Economical
• Social
• Technological
• Steps:
  • Gather data
  • Identify Opportunities
  • Identify Threats
  • Take action

SWOT

• Strengths
• Weaknesses
• Opportunities
• Threats

Porter’s Five Force

• Supplier power
• Buyer power
• Threat of new entry
• Threat of substitution
• Competitive rivalry

Market Segmentation

• Accessible, measurable, substantial, viable

Marketing Mix

• Product
• Place
• Promotion
• Price

USP analysis

• Unique Selling Proposition
• List the decision criteria
• Rank yourself and competitors
• Look at what you rank well
• Look at how you will defend

Mission Statement

• Problem
• Purpose
• Business
• Whom
• Where

Business Opportunities

• Identify the needs
• Screening of opportunities
• Selecting a business opportunities
• Models
  • I/O model
  • RBV model
  • Stakeholder model

Hedgehog Concept

• Passion
• Talent
• Economic engine

QSPM

• Quantitative Strategic Planning Matrix
• List the critical success factor
• Assign weights
• List the strategies
• Assign attractiveness scores
• Calculate the weighted attractiveness scores
• Sum the total attractiveness scores

SMART

• Specific
• Measurable
• Agreed
• Realistic
• Time related