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Chapter 2 Bisplan: Generating business opportunities
 

Chapter 2 Bisplan: Generating business opportunities

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Generating business opportunities

Generating business opportunities

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    Chapter 2 Bisplan: Generating business opportunities Chapter 2 Bisplan: Generating business opportunities Presentation Transcript

    • Technopreneurship (WBB10102)
    • WHAT IS CREATIVITY? Technopreneurship (WBB10102)
    • Technopreneurship (WBB10102)
    • WHAT IS INNOVATION? Technopreneurship (WBB10102)
    • iPhone iPad Technopreneurship (WBB10102)
    • Learning Objectives 1)Identify, evaluate and select business opportunity. 2) Describe the process of creativity. 3) Explain the types of innovations.
    • The chain of entrepreneurship Creativity & innovation are the first stages of successful entrepreneurial initiatives Creativity Innovation Thinking New Things Doing New Things Entrepreneurship Creating value in the marketplace
    • 3.1 Business Opportunity: Identification, Evaluation And Selection
    • Business is all about selling a product or service • Every time something happens, positive or negative, I ask myself, WHERE is the OPPORTUNITY here? • How do you spot an opportunity? Keep your eyes open all of the time
    • Business Idea and Opportunity • A business idea starts with an opportunity. • A business opportunity exists when there is demand for goods and services to meet the needs and wants of community. • Changes in the environment create opportunities; cultural, social, legal, economy, political,& technology (C-SLEPT).
    • Illustrations – Environment changes • Good economic condition – ↑ demand luxury cars, homes • Increase number of working couples – ↑ demand maids, babysitter • Introduction of ICT – ↑ demand computers, repairs, knowledge, spare parts
    • Process of Identifying, Evaluating and Selecting Business Opportunity Step 1 Step 1 Step 2 Step 2 Scanning the Scanning the environment Identifying environment Identifying the needs & evaluating of the needs & evaluating of self the & wants of self the & wants of community customers community customers Step 3 Step 3 Screening of Screening of business business opportunities opportunities Step 4 Step 4 Selecting a Selecting a business business opportunity opportunity & preparing a & preparing a business plan business plan
    • Step 1: Identification of NEEDS & WANTS of consumers • Need – is something basic in life such as food, drink, clothing and shelter. • Want – is extension of need; craving for better than the basic need. – Need for food: Rice – Want for food: Chicken Rice (Chicken Rice Shop) – Need for shelter: Renting a flat with 10 housemates – Want for shelter: Renting a condo • The better the economy of people, the more business opportunities available for the entrepreneurs.
    • • Human NEEDS and WANTS are unlimited. • Next, translate the NEEDS and WANTS into PRODUCTS or SERVICES. • PRODUCTS – are physical forms e.g. car, handphone, books. • SERVICES – non-physical form, intangible product e.g. cab service, telco network, training.
    • Step 2: Environmental Scanning, Self Analysis & Community Values 3 factors to be considered: 1) Environmental Scanning - help identify business opportunities. - 2 approaches: i) Macro scanning e.g. population, ethnics, average income, ii) Micro scanning e.g. family size, Malay delicacies, individual income.
    • Step 2: Environmental Scanning, Self Analysis & Community Values 2) Self Evaluation - to see what is available in oneself: i) Experience - match business with experience e.g. engineer work with Public Work Dept (JKR) will become a Civil Engineer. ii) Knowledge & Skill - do business on what he really knows what to do e.g. Contractor must not only knows how to manage his business but also how to construct the buildings.
    • Step 2: Environmental Scanning, Self Analysis & Community Values 2) Self Evaluation (cont.) - to see what is available in oneself: iii)Financial situation - business that is planned to be implemented must match with financial ability. E.g. Land owner can do housing business. iv) Interest - select business based on his interest e.g. a person with gardening hobby can open nursery. v) Networking - good networking generate business opportunity e.g. trading
    • Step 2: Environmental Scanning, Self Analysis & Community Values 3) Values/Norms of the Community - business opportunities need to be coordinated with the religious’ and society’s values or norms. - Values and Norms = what is perceived as useful and beneficial to the community. - E.g. Incinerator in Kuala Langat, Nuclearpowered electricity generator, poultry farm nearby residential areas.
    • Step 3: Screening of Business Opportunities • Legality: - ensuring the business opportunity is a legal one. - E.g. selling pirate DVD, imitate product e.g. Crocs. • Degree of competition; - choose business that is not monopolized. - E.g. supplying Sugar • Capital requirements: - to identify sufficient funds to finance the business. - E.g. own money, debt financing, FDI. • Risks involved: - expecting the potential uncertainties & considering the percentage of success & failure. - E.g. sell 2nd hand cars
    • 2 types of risks: 1) Business Risks: Types of Business Risks Description Examples Risk that can be transferred to another party. Insurance scheme that cover fire, stolen stocks and accident at work. Controllable Risks Risk that can be somewhat controlled by an entrepreneur. Cannot fully control the situation involving market expectations, labor turnover, product quality & machine breakdown. Uncontrollable Risks Risk that cannot be controlled by an entrepreneur. Economic downturn, natural disaster e.g tsunami. Transferable Risks
    • 2 types of risks: 2) Financial Risks: Types of Business Risks Description Examples Liquidity level Low liquidity – problem of setting Lack of stocks, too much cash short term debt; Too high in hand liquidity – overspending. Loan Risk due to non-servicing of financial loan. Finance business through bank’s loan – still have to pay bank monthly despite no profit. Credit Risk when company give credit facility to customers. Buy on installment - potential to be bad debt if not able to recover from customer for a long period of time. Foreign exchange Risk due to increase or decrease of foreign currency rate. Import/Export business – RM foreign product expensive; RM our product becomes cheap => Profit Margin
    • Seeing Opportunities • Simply understand that there is little difference between obstacle & opportunity – able to turn both to their advantage •The opportunities for potential entrepreneurs are unlimited. Technology is perhaps the most dramatic force shaping the marketing environment. Here, a herder makes a call on his cell phone
    • Step 4: Selecting a business opportunity and preparing a business plan • After fulfill step 1 to 3, it is time for the entrepreneur to select a business opportunity. • Then to prepare the business plan.
    • Summarize Process of Identifying, Evaluating & Selecting Business Opportunity Step 1 Step 1 Identifying Identifying the needs the needs & wants of & wants of customers customers Step 2 Step 2 Scanning the Scanning the environment environment & evaluating of & evaluating of self the self the community community Step 3 Step 3 Screening of Screening of business business opportunities opportunities Step 4 Step 4 Selecting a Selecting a business business opportunity opportunity & preparing a & preparing a business plan business plan
    • 3.2 Business Creativity
    • What is CREATIVITY?? “the ability to produce work that is novel (i.e. original and unexpected), high in quality and appropriate (i.e useful, meet expectations)
    • Process of Creativity • Compile all info/data. • Via reading, investigation • Try get rid of problems. • Generate creative ideas. Ideas • Slowly formulating solution. Evaluation & Implementation • Transform idea into reality, then into business activities. Knowledge Accumulation Incubation
    • Methods to Generate Creative Ideas Brainstorming Do It Forced Analogy Mind Mapping
    • 3.3 Business Innovation
    • What is INNOVATION?? “the process by which entrepreneurs convert opportunities into marketable ideas.”
    • •A new product or service Business Idea •Enhancement of an existing product •A new market for an existing product •A new application for an existing product •A source of grants or awards •Better arrangements with suppliers •Better promotion & advertising •Greater efficiency of ordering •New contact sources
    • Forms on Innovation • Product Innovation: the changes in the things (product or services) that an organization offers. E.g. new design of car, new generation of aircraft A380. • Process Innovation: the changes in the ways in which product/services are created and delivered. E.g. JIT Manufacturing. • Position Innovation: the changes in context in which products/services are introduced. E.g. Johnson & Johnson product not only for babies, but also for adult. • Paradigm Innovation: the changes in underlying mental models which frame what the organization does. E.g. shift to lowcost- airlines, online insurance.
    • Are they the same??? 3.1 Business Opportunity 3.2 Business idea 3.3 What is Innovation? 3.4 Strategies to Encourage Creativity & Innovation Definition Creativity Ideas that improve Efficiency/effectiveness of a system The generation of ideas that result in the improved efficiency or effectiveness of a system. Innovation Turning ideas into Marketable Goods / Services Process by which entrepreneurs convert opportunities into marketable ideas. It is the means by which they become catalysts for change.
    • Types on Innovation • Invention: the creation of a new product, service, or process, often one that is novel or untried. • Extension: the expansion of a product, service, or process already in existence. • Duplication: the replication of an already existing product, service, or process. • Synthesis: the combination of existing concepts and factors into a new formulation.
    • I have always been bored with just making money I have wanted to do things; I wanted to build things Walt Disney GEN 2 Example : Creativity & Innovation in WAJA PROTON PERDANA Source: Kretiviti & InnovasiKAKS 2007 – Datin Prof.. Madya Norlela Nuruddin (MEDEC)Uitm,S.Alam SATRIA INNOVATION Experiences WIRA ISWARA SAGA Discuss in a group & present to the class
    • TARGET INDUSTRIES WHERE KNOWLEDGE IS APPLIED No of Techno Aviation & Aerospace 120 Biotech/ Bioprocess No of Techno 75 Automotive 110 Medical & Health Services 30 Marine Engineering 75 Transport & Logistics 40 ICT Electrical & Electronics Oil & Gas Building Technology 295 170 50 35
    • Conclusion 3.1 Business Opportunity 3.1 Business Opportunity 3.2 Business Idea 3.2 Business Idea 3.3 What is Innovation? 3.3 What is Innovation? 3.4 Strategies to Encourage Creativity 3.4 Strategies to Encourage Creativity and Innovation and Innovation
    • FOR YOUR PRECIOUS ATTENTION