Idea and Opportunity Mapping
By- Rahul Jain
Searching New Ideas
Guided by Our Broad Objectives
 Brainstorm to generate solutions
(Environmental Analysis)
 Shortlist Ideas for detailed scrutiny
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1.
2.
3.
Develop ways of evaluating ideas (yours and
others’) (5Qs)
SWOT Analysis
Other constraints
Objectives
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To Increase Profits
To Minimize Losses
To Capture new Market
To increase the Wealth
To work for Philanthropy
To Introduce new Design/Technology
Goodknight
Sony
DisneyLand
Hotmail
Levis
Wal-Mart
Ceasefire
Barbie
Tommy Hillfiger
Some have focused on certain links
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For product features: Sony Walkman, Apple
Computer, Barbie Doll, Hotmail, Disneyland,
Harry Potter
For information collection process: Internet
based Ebay, Amazon, Google
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For buying process: Amazon, Dell, widely
distributed and well displayed products
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For payment process: Visa and Master Cards
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For delivery process: DHL’s jumbo boxes,
couriers
Sources of New Opportunities
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Customer-route: When customer
dissatisfaction is high; appropriate also
when investment in technology
development/application not yet made
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Product-route: Appropriate when product
or process developed and attractive
application required
Sources of New Opportunities
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New Applications of existing products
/technology (Chat)
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Technology integration (call taxi,
mobile)
Sources of New Opportunities
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Industry and market changes
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Growing healthcare awareness (and concern to lengthen
life) created bottled water, HQ packaging, fitness,
yoga..…
When industry grows quickly, established firms
concentrate on defending what they have
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B&W TV manufacturers in India, HMV
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Neglected but fast-growing segments offer excellent
opportunities (Budget hotels/ Retailing)
Sources of New Opportunities
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Demographic changes
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Managing old age creating many
opportunities
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Growing higher education needs and State’s
helplessness
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Growing security concerns in offices, homes
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Interest in comfort, travel and leisure
Do you agree that
basically we are….
• Lazy
• Pleasure seeking
• Comfort seeking
And
Any product/service that helps us
achieve these needs have potential
Scanning the Environment

International Environment
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Domestic Environment
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Macro Environment
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Sectoral Analysis
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SWOT Analysis
Scanning the Environment
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International Environment
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International developments affect all businesses
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World is a Global Economic village
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Integrated economies
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Increased susceptibility to external happenings
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Internationalization, Digitization, Outsourcing
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One has to understand the impact of these factors
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See more opportunities than threats.
Scanning the Environment
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Political Environment
 Stable & conducive political climate
 Government policies
 Extensive institutional framework
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Technological Environment
 Level of technology
 Rate of change in technology
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Socio-Cultural Environment
 Customs, Norms and Traditions of the society
 Its crucial for the operations of MNCs
Scanning the Environment
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Legal Environment
Laws of the country
 Labor laws and Legal redressal system
 Copyright acts & Trademark infringement
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Economic Environment
Factors for Industry attractiveness
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Market growth rate
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Market size
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Demand variability
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Industry profitability
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Industry rivalry
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Global opportunities
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Macro-environmental factors
Scanning the Environment
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Sectoral Analysis
 Study the sector or Industry conditions
 Study the industry attractiveness
 Constraints or thrust on technology, manpower & raw material
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SWOT Analysis
 Helps understand own skills & abilities
 Knowledge & experience
 Helps in understanding the competition
SWOT Analysis- Strengths
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Experience & Expertise
Financial Position
Good Contacts
Capital raising capacity
Collaborations
Weaknesses
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New Unfamiliar technologies
Inability to raise huge investments
Lack of Experience
Lack of trained personnel
Lack of Economies of Scale
Opportunities
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Emergence of New technologies
New Products with new market
Special financing Schemes
Government Incentives
Rapid growth in market
Threats
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Competition
Poor state of Economy
Change in technology
Change in Habits
New Products and services
Screening Ideas: Are they
Opportunities?
5 Questions
1.
2.
3.
4.
5.
What important customer problem can you
solve?
How are you going to do it?
How many customers are there that are
willing to buy from you?
Why can only you provide the solution?
How can you defend against others?
Ask these questions BEFORE somebody else
does!
Screening an Opportunity:
5 Questions
1.
What important customer problem can you
solve?
How valuable?
How painful?
Remember, you need to change somebody’s
behavior to buy your product.
Screening an Opportunity:
5 Questions
2.
How are you going to do it?
Business model:
Product
Distribution
Location
Technology/Innovation
Service
Brand
Screening an Opportunity:
5 Questions
3.
How many customers are there that are
willing to buy from you?
How many customers are there? (Market size)
How many will buy from you? (Market share)
Who will be your first customer (besides your
Mom)?
Who will be your 100th?
Screening an Opportunity:
5 Questions
4.
Why can only you provide the solution?
How are you unique? What do you provide
that nobody else can?
Screening an Opportunity:
5 Questions
5.
How can you defend against others?
Location, brand, patent (or other IP), great
service, great taste, great fashion sense….
Self-Opportunity Match
Previous
Experience
(knowledge,
skills)
Self
Access to
new
knowledge,
skills
Problems
(existing,
emerging)
Customer
Level of
dissatisfaction
(criticality,
discontentment)
Financial Attractiveness Strategy (source,
cost, availability, adequacy)
Technical
Attractiveness
Strategy
(Existing/new
technology and
products/services)
Solution to Customer
 Dissatisfaction
Marketing
Attractiveness
Strategy (size,
Entry,
Sustenance)
Entrepreneurial Capability Strategy (Attitude,
Skills, Knowledge pool/network – individual/group)
Market Attractiveness
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Identify areas of high customer
dissatisfaction
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Assess market size
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Assess challenges in accessing
customers
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Assess competitive attractiveness
Overall Attractiveness
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Determine technical feasibility
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Estimate financial viability
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Team quality is critical
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Assess entrepreneurial resources (ASK)
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Assess fit with personal preferences and
aspirations
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What & how big are the gaps in
capabilities
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Can the gaps be filled? How? Implications
for success
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Remember, EXECUTION is key to success
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Iteratively balance the venture tripod (mkt,
tech, fin) and entrepreneur (your team’s) at
every stage
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Detached passion
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Prepare a dynamic Business Plan
Pitfalls In Selecting New Venture
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Lack of Objective Evaluation
No Real Insight into the Market
Inadequate Understanding of
Technical Requirements
Poor Financial Understanding
Lack of Venture Uniqueness
Ignorance of Legal Issues
Finalizing a Product/Service
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Combine opportunities provided by the environment with
your strengths
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In terms of knowledge, skills, experience, etc
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Analyze the industry forces
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Now, finalize the product/service
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The proposed product/service must be compatible with:
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The capability
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Resources Available
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Need of society
Criteria in Selecting Ideas
Investment
 Rate of return
 Implementation
 Market Size
 Risk
 Uniqueness
 Expected Life
 Flexibility
 Environment considerations
 Effectiveness
Total Score on Each parameter ( 1 to 5 – Poor to Good)
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Log I:Presentation IVth WeekClose to Heart Idea & SWOT
Analysis
Prepare for a 3 minute- 5 minute presentation
on the idea that has been finally chosen.
 Use the 5Q format as a guide.
 Be prepared to defend your ideas in front of a
group
 Provide all the references and intext citations
Email submission and upload on the internet: 2
days before the class
Email id: rahulkjain16@yahoo.co.in
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