Transcript Examples of Enhancement

IDEA GENERATION:
Sources of Business Opportunities
Change as a Source of Opportunity
•
Status-quo is good for incumbent players (established companies) –
they have products or services, smooth operations, established
business models, loyal set of customers, functional teams ……
•
Change brings in disruption – that in consumer tastes, cost structures,
business models, expectations, level of expertise needed, distribution
channels, payment mechanisms, availability of finance
•
Change produces a level-playing field which is actually loaded in favour
of a new player because of his flexibility, adaptiveness
Examples of Entrepreneurs
Exploiting Change
•
Japanese car manufacturers (1973)
•
Microsoft (1976-78)
•
Amazon and Dell (1990s)
•
Infosys (1989)
Broad Categories of Change
•
Demographic – whole population (age distribution)
•
Economic – Emerging markets
•
Socio-Cultural -- Value systems, role models
•
Technological -- Variety, performance, cost
•
Political – democratic, authoritarian/totalitarian regimes. Free market vs
socialistic policies (Britain in early 1980’s)
•
Legal and Regulatory -- liberalization (internal and external), enforcement
of IP protection laws
Demographic Changes
•
Median age
•
Working population as the % of total population
•
Life expectancy
•
Healthcare and Social Security Needs
•
Urban-Rural Ratio
•
Literacy
•
Male-Female ratio
Socio-Cultural Changes
•
Value systems -- globalization and local assertions
•
Accepted norms of behaviour
•
Role of religion and spirituality
•
Pursuit of expertise, knowledge, wealth, possessions
•
Aspirations, fears, desires, anxieties
•
Measure of “time” – attention span, priorities, conveniences
Technological Changes
•
Availability and wide-spread assimilation of technology
–
Information Technology and it pervasiveness
•
Costs and disposable incomes
•
Performance, variety, ease of acquisition
•
Cross applications – interdisciplinary developments
•
Comfort level of technology usage
•
Examples: CD ROM drives and mobile phones
Economic Changes
•
Gross Domestic Product and Per Capita Income
•
Level of exports and imports
•
Inflation and interest rates
•
Availability of credit at all levels
•
Size of the middle class
•
Various growth rates – industrial growth, productivity growth, exports
growth
•
Level of unemployment
Political and Regulatory Changes
•
Transition from centrally planned to market economy (India, 1991)
•
Transition from communism to “market socialism” (China, 19781980)
•
Regulated, protected, closed economy
•
No IPRs (copyrights, patent laws)
•
Contract Enforcement and right to property
•
Labour and land reforms
India in the New Millennium
•
“Young” country with rising literacy and prosperity
•
GDP growth rate of 7-8 % per annum
•
Growing middle class
•
Liberal, business like values, pursuit of wealth
•
High unemployment, imbalance in the development
India in the New Millennium
•
Passages of IP laws (new patent regime)
•
Respect in the global community (functional democracy)
•
Atmosphere conducive to business -- no xenophobia, no insularity,
no misplaced importance to “self-reliance”
•
Well developed “Institutions” – judiciary, capital markets, stock
exchanges, media (free and independent), educational institutions,
regulatory bodies (SEBI, FDA, ISI)
Analysis of Existing Entrepreneurs
• Truly new, novel and innovative ideas: 3-4%
• Rest 96%
–
Enhancement -- improvement / refinement of features –
cheaper, better, faster, more user-friendly
–
Extension to features
–
Specialization -- niche’ creation
Enhancement, Extensions and
Specializations
Enhancements
Extensions
Specialization
Examples of Enhancement
•
DOS to Windows
•
Mechanical watch to quartz watch
•
Modem to ADSL modem
•
Ordinary TV to a flat screen TV
•
Desktop PC to a laptop PC to a tablet PC
•
Propeller engine to a jet engine
Most industrial innovations are examples of enhancement
Examples of Extensions
•
Toothbrush with a built in toothpaste
•
Pen with a torchlight
•
Mobile handset with camera, FM radio,MP3 player ….
•
Memory sticks with MP3 players
•
Wristwatch with a calculator
•
Cinema Multiplexes
•
Day care centers (crèche) with tuitions
•
Swiss army knife
Examples of Specialization
•
Low cost airlines (Ryanair, Easyjet, Air Deccan)
•
Boutique financial advisory services
•
Super-specialty hospitals
•
Finishing schools
•
Executive search firms (CxOs only, finance professionals only)
Possible Service Opportunities
• Schools
• Restaurants
• Travel agency and tour operators
• Pet shops
• Bookshops
• Gyms / weight loss clinics
• Oxygen bars
Questions?
Comments.
Suggestions!