This document provides notes and ideas on small business development and innovation from a lecture given by C. Uche Onuora. Some key points include: - To innovate, one must have knowledge of existing products and be perceptive to societal needs, and have the ability to obtain funding, overcome barriers, and bring ideas to market. Collaboration further expands possibilities. - "Breaking/changing the frame" refers to taking a step back and analyzing situations from experimental perspectives outside of typical frames of thinking in order to come up with innovative solutions. - Experimentation is a culture that should be relentlessly pursued through iteratively testing hypotheses and eliminating what does not work to discover successful solutions. Failure is

1. AUST-Abuja Innovation Lecture
Notes & Ideas on Small Business Development:
“Breaking/Changing the Frame” October 24, 2014
By C. Uche Onuora Co-Founder/CEO, Flexfinity Media

2. The Big Picture!
“…And&the&beau-ful&thing&about&innova-on&is&that&you&do&not&have&to&be&a&
technical&genius&to&deliver&an&idea&that&has&monumental&impact.&!
&!
Actually,&it&is&quite&the&opposite&because&the&successful&innovator&is&usually&
someone&who&is&not&in&the&ni>y?gri>y&details&of&product&development&that&
can&see&the&bigger&picture.&!
&!
To&innovate,&you&have&to&be&knowledgeable&about&what&products&are&already&
available,&percep-ve&to&the&needs&of&society&(whether&they&know&it&or&not),&
and&have&the&stamina&to&obtain&funding,&navigate&barriers,&maintain&quality,&
and&push&it&into&the&market.&Add&collabora-on&to&the&picture&and&the&
possibili-es&are&endless.&!
&!
These&are&abili-es&that&most&people&have&at&their&finger-ps&regardless&of&how&
educated&you&are&or&what&your&profession&is.”!
!!
Joseph!DeVoe!–!Responsible!Engineer!for!AREVA!Inc.!Plant!Modifica>ons!Group!(Comment'on'
Web'Ar,cle'“Innova,on'vs.'Inven,on.'What’s'the'Difference?”'by'Hiroshi'Mikitani'–'CEO'of'Rakuten,'
Inc.)!!

3. [A]!Introduc>on:!“Breaking/Changing!the!Frame”!
Phrase!is!not!mine.!Courtesy!of!a!phenomenal!professor!and!
thought!leader!named!Paddy!Miller;!please!google!him!later!
!!
Nugget:!Ironically,!Kodak!invented!the!Digital!Camera!(and!was!in!
pole@posiAon!to!dominate!in!a!digital!world),!but!Digital!Media!put!
them!out!of!business!!
They!did!not!“break/change'the'frame”.!They!did!not!anAcipate!the!
pervasive!velocity!of!mass@market!migraAon!from!an!analog!
orientaAon!to!a!digital!reality!!
!!
Flickr,!Instagram,!or!Pinterest!could!easily!have!been!birthed!in!and!
incubated!from!a!Kodak!R&D!Lab;!but!they!were!not!!
Instead,!Kodak!is!no!more!!!

4. Ques>ons?!
• !Are!you!siNng!on!a!gold!mine?!!
• !Are!you!ignoring!or!overlooking!a!relevant!and/or!criAcal!issue?!
• !Is!that!issue!perAnent!to!business!success?!!
• !How!do!we!find!a!soluAon,!when!we!do!not!know!the!problem?!
!!
Experience!is!a!significant!bias!that!is!important!in!how!we!define!problems;!so!
we!must!“correct”!for!this!bias.!We!must!“break/change'the'frame”,!so!that!we!
can!think,!see,!and!act!clearly,!with&the&greatest&chance&of&success!
!!
Kodak!CEO!came!from!prinAng!background!at!HP;!and'so'perhaps'could'not'
sense'shiKing'sands'that'brought'on'digital'revolu,on!!
!!
Kodak!Engineers!invented!Digital!Cameras,!but!Kodak!Business!Leaders!did!or!
could!not!recognize!potenAal!for!massive!user!adop>on!as!media!device/
plaQorm!in!rapidly!evolving!digital!era,!AND!disrupAon!it!ignited!when!combined!
with!other!emerging!technologies!–!e.g.!the!Mobile!Phone!!

5. Business!Concept!Dynamics:!Good,!BeTer,!Best…!
InvenAon!is!good!(costly/complex),!innovaAon!is!even!beTer!
(costly),!but!sustained!experimentaAon!pracAce!and!effort!
resulAng!in!either!of!the!two!(or!nothing!at!all!–!for!that!maer)!is!
best!(affordable)!!
!!
Nugget:!For!instance,!“Breaking/Changing&the&Frame”!can!be!
canceling!the!noAon!of!“small”!business!development,!especially!
when!it!comes!to!technology@driven!businesses!!
!!
A!company!might!be!“small”!by!certain!parameters!(e.g.!number!of!
employees,!size!of!revenues,!etc.),!but!its!business!could!engender!
seismic!disrupAons!or!societal!impact!!
!!
Apple!was!not!“small”!when!it!started!in!a!garage;!dio!Google!!

6. StartZUps!&!Innova>on!Combina>on!PaTerns!
Apple!&!Google:!Simply!Start@Up!Businesses!that!developed!
according!to!trajectory!confirming!*Schumpeter’s!classic!theory!of!
innova>on!combina>on!paTerns!proposed!to!drive!economic!
growth:!
!!
1)!ProducAon!of!a!new!good;!!
2)!IntroducAon!of!a!new!method!of!producAon;!!
3)!Development!of!a!new!market;!!
4)!AcquisiAon!of!a!new!source!of!supply!of!raw!materials;!and!!
5)!Emergence!of!a!new!organizaAon!of!any!industry.!
!!
*Joseph&Schumpeter&was&a&professor&at&Harvard&University,&and&was&one&of&the&20th&
century’s&major&economists.&

7. Taking!a!Step!Back!
“Breaking/Changing'the'Frame”!represents!an!imaginaAve!way!
and!creaAve!means!of!conceptual!thinking,!carried!through!to!
>mely!implementa>on,!and!driven!by!itera>ve!adjustment,!!
outside&a&frame&or&perspec-ve&or&bias…&&
e.g.&Groupthink,&Resistance&to&Change,&Consensus,&Bureaucracy,&
Risk&Aversion,&etc.!!
Involves!taking!a!step!back,!“breaking/changing'the'frame”,!and!
analyzing!situaAons!from!audacious!experimental!perspecAves!
!!
For!instance,!a!hypothesis!is!proposed!and!tested!iteraAvely,!unAl!
a!successful!failure!results!!

8. [B]!Discourse:!Inven>on,!Innova>on,!&!Experimenta>on!!
Necessity!–!Mother!of!InvenAon!(Inven>on!as!a!Goal,!to!be!achieved!or!
celebrated)!
!!
Opportunity!–!Father!of!InnovaAon!(Innova>on!as!a!Process,!to!be!adopted!or!
sustained)!
!!
Imagina>on!–!Catalyst!of!ExperimentaAon!(Experimenta>on!as!a!Culture,!to!be!
embodied!and!relentlessly!pursued)!!
!!
Experimenta>on:!Nurtured!culture!of!Business!Agility,!via!pracAcally!discovering!
+!eliminaAng!what!does!not!work,!to!arrive!at!what!works!!
!!
Is!not!a!process!of!finding!what!works,!is!an!ingenious!way!and!means!of!iteraAve!
eliminaAon!of!failed!soluAons,!un>l!what!is!lec!is!the!best!possible!failure!!
!!
Eccentricity!&!Fluidity!are!core!enablers!of!experimenta>on,!which!can!ohen!
result!in!innova>on!and/or!inven>on!as!outcomes!!

9. Failure!as!Primary!Op>on!
And!so!failure!is!the!primary!opAon,!success!is!equal!to!iterated!
failure!+!innova>on!OR!inven>on!leading!to!breakthrough,!market!
rewards,!and/or!disrup>on!that!shape!and!mold!human!behavior!
and!enhance!user!experiences!!
!!
Aim!of!experimenta>on:!to!"fail&successfully",!and!hopefully!–!
“sustainably”,!unAl!ONE!failure!discovers!a!corresponding!
opportunity!for:!
• !business!acumen/operaAons!to!exploit,!
• !enriched!user!experience!(service,!efficiency,!producAvity!–!
resulAng!in!traffic!or!“sAckiness”)!and/or!
• !financial!reward!(resulAng!in!profitable!operaAons)!!

10. Pause:!Google!2003!Fast!Company!Ar>cle!Excerpts!
Failure!is!good.!But!good!failures!are!even!beer.!!
Good!failures!have!two!defining!characterisAcs.!First,!"you!know!why!
you!failed,!and!you!have!something!you!can!apply!to!the!next!project."!
!!
But!good!failures!also!are!fast.!"Fail,!But!fail!early."!Fail!before!you!
invest!more!than!you!have!to!or!before!you!needlessly!compromise!
your!brand!with!a!shoddy!product!
!!
One!reason!Google!puts!its!innovaAons!on!public!display!is!to!idenAfy!
failures!quickly.!Another!reason!is!to!find!winners!
!!
One!big!factor!is!the!company's!willingness!to!fail.!Google!engineers!
are!free!to!experiment!with!new!features!and!new!services!and!free!to!
do!so!in!public!!

11. Issues!Facing!Business!Development!
1. Sustainability!(Commercial!Model)!
2. Stakeholders/Partners!Convincing!
3. GeNng!too!comfortable!with!what!works!(Overlooking!the!
Next!Big!Thing)!
4. Business!Agility!
!!
Business!Development!is!built!on!breaking/changing!the!“frame”!
for!what!we!think!problem!is…!!
!!
Business!Development!also!depends!on!implementa>on!capacity!
as!a!key!to!successful!outcomes!vis@à@vis!sustainability,!
stakeholder!convincing,!anAcipaAng!shihs,!&!business!agility!!

12. Case!In!Point:!Moneyball!Movie!
Have!you!seen!the!movie!“Moneyball”?!!
Movie!essenAally!depicts!empirical!cum!algorithmic!analysis!&!leveraging!of!
player!staAsAcs!to!build!and!sustain!a!winning!team!in!baseball!
!!
Is'a'biographical'sports'drama'based'an'a'real'life'account'of'Oakland'Athle,cs'
General'Manager'O'Billy'Beane’s'aPempt'to'assemble'a'compe,,ve'team'for'the'
2002'MLB'Season;'using&a!sophis>cated!sabermetric!approach!towards!scou>ng!
and!analyzing!players!!
!!
Sabermetrics!is!the!term!for!the!empirical!analysis!of!baseball,!especially!baseball!
staAsAcs!that!measure!in@game!acAvity!!
!!
Approach!is!vivid!illustraAon!of!“breaking/changing'the'frame”,!and!is!directly!
applicable!to!Business!Development!!

13. Case!Studies!&!Learning!Materials!
Review!the!Case!Studies!&!Learning!Materials!
Various!ArAcles!on!Amazon,!Starbucks,!Apple,!Google,!Beacons,!
IoT,!etc.!(circulated'before'hand)!
Google!–!“Permanent!Beta”,!Project!Loon,!Driverless!Cars,!etc.!
Double@Sided!Open!Plaoorms!@!Introductory!Concepts!(Tech!Titan!
model,!ATV!or!OrganizaAonal!model,!etc.)!!!

14. [C]!A!Note!on!PlaQorms!!
Digital!world!is!all!about!plaoorms.!
!!
Structure!
1)!DoubleZSided!–!ConnecAng!Users!and!Other!Stakeholders!(Content!Owners,!
Developers,!AdverAsers,!etc.)!
!!
2)!Open![CompeAAve!Rents]!vs.!Closed![MonopolisAc!Rents]!(Level!ground!
compeAAon!–!Compete!IN!the!market!vs.!Control!point!compeAAon!–!Compete!
FOR!the!market)!
!!
Factors!
• User!AdopAon!Costs!(Cost!of!Access)!
• SAckiness!(User!Experience!–!Uptake,!Mindshare,!RetenAon)!
• Switching!Costs!(High!vs.!Low!–!User!Churn)!
• Complementary!Assets/Offering!
• Superior!ExecuAon!(Speed!to!market!with!innovaAons,!services,!distribuAon)!!

15. PlaQorm!Deployment!Phases!
Phases:!Must!be!developed!and!deployed!in!phases!
Aggrega>on!(Lower!the!cost!of!your!product!OR!change!the!
rules!of!the!game!–!disrupAon).!Free;!Easy!Sign@Up;!IncenAves;!
Sweeteners;!etc.!
!!
Mone>za>on!(Sustainability:!usually!via!SubscripAon!or!
AdverAsing!or!Enabling/Brokering!Paid!TransacAons!on!the!
Plaoorm!–!depending!on!the!dynamics.!Open!Plaoorms!
generally!moneAze!by!adverAsing.)!!

16. [D]!Business!Development!Dynamics!!
Business!Development!Steps!!
1. Breaking/Changing!the!Frame!
2. Hypothesis:!Concept/Challenge!DefiniAon!
3. ArAculated!SoluAon!!
4. Proposed!Business!Model:!Sustainability!even!if!not!
Profitability!!
5. Business!Summary!or!Plan!Development:!ExecuAon!and!
ImplementaAon,!given!constraints!of!the!Nigerian!local!
operaAng!environment!!

17. Sample!Business!Development!Parameters!
1. Legal!–!Corporate!OrganizaAon!IncorporaAon,!Records,!etc.!
2. Intellectual!Property!(IP)!@!Patents,!Designs,!Copyright,!Marks!
[Service!or!Trade]!!
3. Human!Resources!(HR)!&!AdministraAon!!
4. Research!&!Development!(R&D)!
5. Accounts!–!the!Books,!etc.!
6. Regulatory!–!Licenses,!Permits,!Approvals,!etc.!!
7. Funding!–!IniAal!+!Subsequent!Stages!
8. MarkeAng!–!IniAal!Feedback,!Launch,!Publicity,!etc.!!
9. OperaAons!–!Post@Launch,!Product/Service!IteraAons,!etc.!!

18. [E]!Op>onal!Prac>cal!Session:!Reinforcement!Exercise!!
Do!pracAce!session!
!!
Break!Class!into!Groups!!
!!
Select!broad!themaAc!areas!of!focus!!
!!
Get!students!to!idenAfy!exisAng!or!prospecAve!challenges!in!Emerging!
Economy!environment,!based!on!focus!areas!or!other!exigencies;!then!
hack!out!possible!soluAons!!
!!
Students!will!create!an!audacious!hypothesis,!and!then!pursue!a!
soluAon,!by!experimentaAon!
!!
Each!student!pitches!their!soluAon!to!his/her!Group,!let!all!members!
vote!for!each!soluAon,!and!then!coalesce!into!Teams!to!further!develop!
the!soluAon!(that&most&breaks/changes&the&frame)!collabora>vely!!

19. Powered'By'Flexfinity&Media&Limited&
Questions?
www.iceboxnetwork.com!&!uonuora@iceboxnetwork.com!!
Tel:!+234Z803Z467Z4892/809Z403Z5131!AND!+1Z404Z734Z1345/678Z999Z8127!
Nigeria:!Plot!1468!Ayangba!Street,!Area!11,!Garki,!Abuja!FCT!|:!:!|!!
USA:!2135!Defoor!Hills!Road,!Suite!E,!Atlanta,!Georgia!30318!|:!:!|!