This document outlines SBI's opportunity discovery process (ODP). The process involves creative brainstorming to generate new business and research opportunities, followed by clustering and screening of ideas. Ideas are evaluated against criteria like market potential, strategic fit, and technical feasibility. Top opportunities are selected and refined for further development. The goal is to incubate new opportunities through a structured, multidisciplinary process of identifying customer needs, trends, and technologies.
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SBI's Opportunity Discovery Process
1. 1
Overview of
SBI’s Opportunity Discovery Process (ODP)
Prepared by:
Dr. Chulho Park
Vice President
Strategic Business Insights
cpark@sbi-i.com
October 2015
3. 3
Opportunity Discovery—Incubation Engine
Opportunity
Profile
Trends, SWOT
Idea
Resurrection
New
Challenge
Refinement
Concept
Refinement
New
Challenge
Opportunity
Discovery
EngineInternal and
External
Sources
R&BD
R&BD
“Failure” Mode
Customer
Value
Creation
Customer
Value
Creation
Validation
Validation
Concept
Opportunity
Discovery
Workshop
Opportunity
Value
Proposition
Opportunity
Roadmap
Opportunity
Workbook
Opportunity
Workbook
Opportunity
Discovery
Workshop
Opportunity
Value
Proposition
Opportunity
Profile
Opportunity
Roadmap
4. 4
Key Success Factors for an Opportunity
Address important
customer’s (unmet
or new) needs
Create significant
financial value or
benefit
Develop unique,
compelling
technical approach
Create
competitive
advantage
Fit to the company strategy
“Important”
Opportunity
Product/Service
Needs
Customer
Needs
Technology
Needs
Research & Development
Needs
5. 5
Opportunity Discovery—The Front End of Innovation
in the New R&BD Paradigm
Infrastructure: Organization, Resource, Processes
Analysis of External Drivers and Dynamics
Commercialization
Management
IP Asset
Management
Technology (R&D)
Management
Company
Business
Vision
and
Strategy
Opportunity (Value) Discovery
Value Development (R&D, BD)
Creation of
Customer
Value and
Company
Profit
Infrastructure: Organization, Resource, Processes
Analysis of External Drivers and Dynamics
Commercialization
Management
IP Asset
Management
Technology (R&D)
Management
Company
Business
Vision
and
Strategy
Company
Business
Vision
and
Strategy
Opportunity (Value) Discovery
Value Development (R&D, BD)
Creation of
Customer
Value and
Company
Profit
6. 6
Problem Definition and Scope
Development of Opportunity Profiles
Initiation:
Preparing Workbook
Idea Generation:
Brainstorming Ideas
Opportunity Clustering:
Clustering Opportunities
Opportunity Evaluation:
Evaluating Clusters
Focus Areas
Opportunity Ideas
Attractive Opportunities
Market
Needs
Technical
Needs
Opportunity Clusters
Industry/Markets
Selection Criteria
SBI’s Process Involves Creative Brainstorming
Followed by Careful Clustering and Screening
7. 7
Bring together multidisciplinary skills: marketing, R&D,
manufacturing, planning
Develop critical mass of necessary knowledge quickly:
consumers, markets, technologies, competition
Encourage knowledge sharing and consensus building
Create broad view and perspectives of market and technology
landscapes with a specific decision focus
Leverage the expertise, experience and genius of others
Increase efficiency and productivity for innovative idea generation
Break down organizational barriers (silos)
Create learning environment through repetitive use of structured
brainstorming.
Why Structured Brainstorming
8. 8
Three Types of Brainstorming Workshops
Positive Negative
Multidisciplinary Team
Expert Group
Scenario-Based
Broad view
Many diversified ideas
Rapid knowledge base
development
In-depth expertise
A few high-quality ideas
Effective and efficient for
specific cases
Through search
Comprehensive view
Innovative ideas through
systematic approach
Less productive, and often
inefficient
Difficult to maintain the
quality of ideas
Narrow view
Prone to be biased
Hard to access experts
Time consuming and
expensive
Often less productive
Difficult to execute
9. 9
Step 1: Prepare a workbook for Opportunity Discovery workshop
Step 7: Refine the selected opportunities and specify next steps
Step 2: Discuss industry trends and issues, and the company’s
business/R&D strategy and capabilities
Step 3: Identify new business and/or research opportunities
Step 4: Segregate the opportunities into clusters
Step 5: Develop evaluation criteria and assess their relative
importance
Step 6: Evaluate and select the best refined opportunities using
the selection criteria
SBI Conducts the Process via Well-defined Steps
10. 10
Step 1: Prepare a Workbook for Opportunity Discovery
Workshop
Describe opportunity discovery objectives:
– Who needs opportunity ideas, and why (or for what purpose)
– What kinds of outcome needed or desired
– How to use the outcomes (next steps)
Set specific goals for an opportunity discovery workshop:
– Opportunity types: new business, product/service, research, or
application ideas
– Time horizon: short-, mid-, and/or long-term
– Search domain scope: e.g., display, flat panel display, or LCD
– Number of ideas to be created
– Consideration of its own core businesses or technologies
– Consideration of resources (financial or human resources)
– Consideration of risk
11. 11
Check List for Characterizing Opportunity Discovery
Opportunity
Type
Basic Science
and Research
Application
Development
Product or
Service
Business or
Market
Search
Scope
Existing/Core
Areas Only
Growing and
Emerging Areas
Totally New
Areas Only
No
Constraint
Time Frame
(Examples)
Short-term
(1 to 2 Years)
Medium-term
(3 to 4 Years)
Long-term
(Over 5 Years)
No
Constraint
Technical
Capability Req.
Low Medium High No
Constraint
Investment
Requirement
Low Medium High No
Constraint
Risk Low Medium High No
Constraint
Number of
Opportunities
Small
(< 5 Ideas)
Average
(10 to 20 Ideas)
Large
(> 40 Ideas)
No
Constraint
Opportunity
Search Domain
Example: Portable Multimedia Devices
(Note) Please make circles where are appropriate.
Illustrative Only
12. 12
Step 1: Prepare a Workbook for Opportunity Discovery
Workshop
Form a workshop preparation team (typically, a team leader plus 1 to 3
staff members)
Set/refine specific objectives and goals for a opportunity discovery
workshop
Set a tentative schedule of the whole opportunity discovery process
Determine a workshop process and desirable contents of a workbook
Scout experts for workbook production, and assign tasks
Scout experts for a opportunity discovery workshop (typically, a
workshop leader, a workshop moderator, a workshop recorder, numerous
domain experts in the areas of market, technology, consumer, upstream
and downstream industries)
Set a workshop date and place, and a tentative agenda for the workshop
Prepare workshop materials such as idea cards, blackboard, beam
projector, notebooks, etc.
13. 13
Typical Contents of a Workbook
Objectives of Opportunity Search
– New business development
– R&D idea search
Technology Analysis:
– Technology trends
– Emerging technologies
– Emerging materials
– Technical issues and needs
Market Analysis:
– Market trends
– Emerging markets
– New product development
– Change in consumer behavior
– Market issues and needs
Competitive Analysis:
– Major competitors: strategies and
technical approach
– Potential new competitors or entrant
Other External Environmental Analysis:
– Government science and technology
strategy and investment policy
– Environmental issues
– Regulatory and social issues
– Issues in IP and standardization
Company’s Business Strategy:
– Strategic vision and directions
– Business strategy, expansion plan, and
new business development plan
– Resource availability
Company’s Technology Strategy:
– Technology strategy and R&D portfolio
– Core technologies and core
competencies
– Resource availability
WORKBOOK TABLE OF CONTENTS TEMPLATE (Illustrative Only)
14. 14
Step 2: Discuss External Environments and
Company’s Capabilities and Issues
Kickoff the brainstorming workshop: introduction of the workshop
participants and agenda
Refine and confirm the objective and decision for opportunity
search workshop
Review the methodologies and processes of the workshop
Present a workbook: industry overview and more
Discuss about the guideline for the opportunity search
Analyze major external and internal driving forces and trends to
identify new market and technical needs
15. 15
Analysis of Driving Forces and Trends Will Help
Identify Needs for Innovation
Competitive Business
Environments
Social/Environmental
Changes
Disruptive Science
& Technologies
External Driving Forces
Business
Opportunities
Product/Service
Opportunities
R&D
Opportunities
Outcome of Opportunity Discovery Workshop
Business & Technology
• Strategy
• Capability
• Resource
Internal
Opportunity Discovery
• Decision-Focus
• Goals
• Scope
Internal
Brainstorming Workshop
Technology-Driven
Opportunities
Customer-Driven
Opportunities
Optional
Input
Product/Service
Needs
Customer
Needs
Technology
Needs
Research & Development
Needs
16. 16
Step 3: Identify New Business/Research Opportunities
Think about a new business or research opportunities and write the
idea in a given standard format. The format includes:
– Name of an idea provider
– Title of the idea
– Description of the idea
– Need: market, consumer, and/or technical needs
– Skills/technologies required for the idea
– Additional notes such as investment, related technologies, competition,
experience, synergy, etc.
Present the idea to the workshop participants in order to:
– Refine the idea and make a bigger idea
– Reduce duplication of the same idea
– Inspire other ideas to the participants
17. 17
Put your idea on a card:
– No idea is a bad idea; be creative; take risks
Get in line to present your ideas
Make your point briefly and precisely (without interruptions by
others), so that others may also contribute
Post your idea. Give a two sentence description of the idea while
posting it
Allow others to express their ideas; no “idea killing” behaviors
Think of another idea.
Build on other participants’ ideas
Leverage the knowledge/genius of others and the workbook
Only one person speaking at a time; no “sidebar” conversations
Rules of Brainstorming Workshop
18. 18
Identify positive trends and find a way to exploit them.
Identify negative trends and come up with a way to counteract them.
Look at your current activities, portfolio, and interests for ideas that
might appeal to others.
Watch what your competitor is doing and find a way to do it better.
Discovering Opportunity Ideas in Changes
Core
Knowledge
Trend 1
Trend 2
Intersection
Knowledge
Vectors
Focus AreasFocus Areas
Core
Knowledge
Trend 1
Trend 2
IntersectionIntersection
Knowledge
Vectors
Focus AreasFocus Areas
Sources of Changes
• Technological advances
• Social and environmental changes
• Competitive dynamics
• Consumer trends
• Business model paradigm shift
20. 20
Product or Service: Simple OLED Film Structure
Description:
Reduce number of films necessary to produce OLED
Need
Lower manufacturing cost and make flexible TFT-OLED easier
Skills/Technologies Required
Monomer/polymer synthesis, functionalizing polymers, film deposition
Additional Notes (required investment, related technologies, etc.)
SDI and SAIT
Contributor: Chulho Park
Example of an Idea Card
Idea Number: 7
21. 21
Product: Simple OLED Film Structure
Example of the Title Card of an Idea
7
Related Idea Numbers: 3
22. 22
Step 4: Segregate the Opportunities into Clusters
Review the ideas created
Eliminate duplicated or similar ideas
Combine ideas that are subsets of other ideas or same kinds of ideas into
a new or existing idea
Classify ideas in a few groups that can be:
– Similar technologies required
– Similar applications or products
– Same markets or industries
Name the clusters
Note:
– Some ideas can belong to multiple clusters
– Clusters can be used for portfolio selection and balancing
23. 23
Step 5: Develop Evaluation Criteria and Assess Their
Relative Importance
Determine an evaluation method and criteria
Determine a scale for each of the criteria
– Complexity of a scaling/measure depends on information/expert
availability and experience
– 3 or 5 levels are appropriate in most cases
Describe each level of the scale for the criteria
– Describe a level of a scale quantitatively as much as you can
– Describe the rest qualitatively
Assess the relative importance/weights of the selection criteria
Assess the relative importance of the scales
24. 24
Success = SDemand x STechnology x SStrategic-Fit x SCompetition
Basic Principle of Opportunity Evaluation
Demand
Commercial
Success
Technology Competition
Strategic Fit
Is there a market?
Who are the customers
Why do they buy (needs)?
Market size, growth rate?
Price, cost, profitability?
Can we make it?
When the technology ready?
Technology competitive?
Capability, resource?
Technical risk?
Does it fit with our strategy?
Strategic fit?
Management commitment?
Cultural fit?
Urgency, priority?
Will it be competitive?
Competitive advantages?
Sustainability?
Potential new competitors?
Advent of disruptive
technologies?
25. 25
Small Medium Large
Market Potential < $500 million $0.5 – 1 billion > $1 billion/yr at 2007
Low Medium High
Time/Urgency Customers will buy the product
(> 4 years)
Customers will buy the product
(2 to 4 years)
Customers will buy the product
(< 2 year)
Low Medium High
Strategic Fit Not fit with strategies and no
synergies with current business/
technology
Supports the existing
Core businesses and
technology
Global leadership,
Leveraging core competency
Low Medium High
Competitive Position Many pre-existing competitors Significant challenges
to sustain advantages
Few pre-existing competitors,
Sustainable advantages
Low Medium HighBiz Development
Capability Little expertise in the area Some expertise in the area Leading expertise in the area
Low Medium HighTechnology Feasibility
Difficult to make or
buy, high technology
project risk
Technology is
feasible, med
project risk
Components
Devices < $1 billion $1-3 billion > $3 billion/yr at 2007
Easy to build, Low
technology project risk
Alternative Approach: Multi-Attribute Weighting
Example of Evaluation Criteria and Their Scales
Attribute
26. 26
Criteria Relative Weight
Market Potential 25%
Time/Urgency 25%
Strategic Fit to Company 5%
Competitive Position 15%
Biz Dev. Capability 15%
Technology Feasibility 15% Scale Weight
High 3.0
Above Avg. 2.5
Average 2.0
Below Avg. 1.5
Low 1.0
Example of Evaluation Criteria Weighting and Scale
27. 27
Step 6: Evaluate and Select the Best Refined
Opportunities
Select an evaluation methodology or tool such as Excel
spreadsheet or Analytic Hierarchy Process (AHP), etc.
Evaluate the opportunities with respect to the selection criteria
Prioritize the opportunities and select a few opportunities for the
further review
Check the priority with intuition or group consensus
Conduct a sensitivity (what-if) analysis by changing relative
importance of the criteria and/or ratings of the opportunities
Select top-priority opportunities
Refine the selected opportunities for the next step
28. 28
An Example of Multi-Attribute Weighting Method
Evaluation of Opportunity Ideas
Weight: 0.30 0.25 0.15 0.15 0.10 0.05 1.00
Strategic Market Competitive Technology Time/ Total
Criteria: Fit Potential Position Capability Availablility Urgency Score
Opportunity Ideas
Opportunity Idea - 1 2.5 2.0 2.0 1.5 2.0 1.0 0.6750
Opportunity Idea - 2 1.0 3.0 3.0 2.0 3.0 2.0 0.7333
Opportunity Idea - 3 1.5 1.0 1.0 3.0 2.0 1.0 0.5167
Opportunity Idea - 4 3.0 1.0 1.5 1.0 1.5 3.0 0.6083
Opportunity Idea - 5 2.0 3.0 2.0 1.5 1.5 2.0 0.7083
Opportunity Idea - 6 3.0 2.0 2.0 2.0 2.5 3.0 0.8000
Opportunity Idea - 7 1.5 2.5 1.5 1.0 1.0 1.5 0.5417
Scale Weight
High 3.0
Above Avg. 2.5
Average 2.0
Below Avg. 1.5
Low 1.0
Illustrative Only
29. 29
Step 7: Refine the Selected Opportunities and Specify
Next Steps
Refine the selected opportunities using SRI’s NABC format:
– Consumer/Market/Product/Technical Need
– Compelling Business/Technical Approach
– Consumer/Company Benefits
– Competition
Specify the next step for realizing/implementing the selected
opportunities:
– Conduct in-depth market research and technology intelligence
– Develop executive-summary opportunity profiles (using NABC format)
– Develop detailed opportunity profiles for validation, enhancement,
and implementation
31. 31
Opportunity Value Proposition
A simple “NABC” approach can be used for profiling, communication,
validation, and promotion of an opportunity
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Customer needs, market
and product needs, or
technical needs
Compelling and unique
technical and/or business
approach
Competitive advantages
and disadvantages to
technology/market leaders
Current status and issues,
and next step or action plan
Customer benefits and
company/R&D benefits
32. 32
Introduction
Brief description of an opportunity
Strategic objectives and goals
Time and resource constraints
Key Items Addressed in an Opportunity Profile
Needs
Customer (new or unmet) needs
Product or service needs
Technology needs or push/drivers
Competition
Competitors with strengths/weaknesses
Compelling competitive advantages
Technology gaps, sustainability
Next Steps
The current status (IP, R&BD stage)
Next step to do
Resource requirement, or commitment
Approach
The current leaders’ approaches
Compelling technical/business approach
Modus operandi
Benefits
Customer benefits
Company benefits
Synergy, side effects/benefits
1
65
3 4
2
34. 34
Steps in Creating an Opportunity Pitch
Know your audience
– What are they trying to accomplish that your idea can
affect?
– How do they measure their accomplishment?
– Which of those measures would your idea help most to
improve?
Package your pitch
– The Hook – what grabs attention
– The Core – your content
– The Close – request for action or input
The core content is your NABC
– …matched against the knowledge of your audience
Practice and improve
– Both your message and your delivery
– Be natural and sincere
– Test yourself: Can your spouse or another significant
person in your life understand what you are saying?
“Elevator Pitch”
A concise summary of your Value Proposition in about 150 to 225 words (omit details!)
35. 35
Making the First Draft Opportunity Pitch
Opportunity Profile
Description
_______________
Core
N: ______________
A: ______________
B: ______________
C: ______________
Next Steps
_______________
The first draft of opportunity pitch can be easily made by rearranging
and connecting the components of an opportunity profile.
Try to make a compelling story!
Opportunity Pitch
Hook
_______________
Core
______________
______________
______________
______________
Close
_______________
36. 36
Example: Pitch for Disposable Hearing Aids
Fred Fritz: President
Songbird Medical Systems
Audience: Opportunity Pitch to a prospective customer
HOOK: Are you having trouble hearing?
CORE: For the first time, disposable hearing aids are available. Today, high-
quality hearing aids cost several thousand dollars and have to be fitted by a
doctor. Because they cost so much, they have to be made out of hard, durable
materials that do not fit comfortably or tightly in the ear.
We offer a disposable hearing aid that costs one dollar a day. It has the
best-quality digital sound and, because you throw the units away every month, it is
made of a soft material that fits comfortably, securely and invisibly in your ear.
You can buy them over the counter in your drug store.
CLOSE: Would you like to see one?
Source: SRI International
38. 38
Opportunity Incubation
Investigate the selected
opportunities
Develop opportunity profiles with
compelling opportunity pitch
Identify and secure sponsors
and/or collaborators for value
creation
Validate the opportunities
Evolve the opportunities into
important ones with higher value
creation potential and commercial
success
Iterate the phases till ready to
commit with confidence
Trends, SWOT
Idea
Concept
Resurrection
New
Challenge
Refinement
Concept
Refinement
New
Challenge
Well-aligned with
•Strategic Vision
•Customer Needs
•Organization
•Incentive, Reward
Internal and
External
Sources
R&BD
R&BD
“Failure” Mode
CustomerCustomer
ValueValue
CreationCreation
CustomerCustomer
ValueValue
CreationCreation
Validation
Validation
Trends, SWOT
Idea
Concept
Resurrection
New
Challenge
Refinement
Concept
Refinement
New
Challenge
Well-aligned with
•Strategic Vision
•Customer Needs
•Organization
•Incentive, Reward
Internal and
External
Sources
R&BD
R&BD
“Failure” Mode
CustomerCustomer
ValueValue
CreationCreation
CustomerCustomer
ValueValue
CreationCreation
Validation
Validation
39. 39
Opportunity Validation and Prioritization
Demand
Technology Competition
Who are the customers?
Why do they buy (needs)?
Market size and growth rate?
How much are they willing to pay?
When will the technology be ready?
Is the technology competitive?
What is the technical risk?
What is the cost?
What are differentiation factors?
What are competitive advantages?
Are they sustainable in long-term?
Commercial
Success
Success = SDemand x STechnology x SCompetition x SStrategic-Fit
Must pass the four tests:
Will there be markets?
Can we make it?
Will we be competitive?
Does it fit to our strategy?
Strategic Fit
Sustainable
Leadership
Does this fit with the company strategy?
Is the company capable of executing this?
What is the long-term profitability?
40. 40
Opportunity Incubation
Customer Value
Creation55
Commercial
Development44
Research and
Development22
Research
Opportunity
Discovery11
Commercialization
Opportunity
Discovery33
Customer Value
Creation55
Commercial
Development44
Research and
Development22
Research
Opportunity
Discovery11
Commercialization
Opportunity
Discovery33
Customer Value
Creation55
Commercial
Development44
Research and
Development22
Research
Opportunity
Discovery11
Commercialization
Opportunity
Discovery33
Customer Value
Creation55
Commercial
Development44
Research and
Development22
Research
Opportunity
Discovery11
Commercialization
Opportunity
Discovery33
Time
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Time
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Flexible
Stage-Gate
Approach
Validating and Incubating Opportunity with Repeated Use of
NABC Approach throughout the Whole R&BD Process
41. 41
Next Step: Action Plan
Develop strategic direction for how to create value of the
selected opportunity
Develop strategic roadmap for value creation
Identify potential applications, new products or services for both
existing businesses and new business areas
Identify key success factors including both technical and non-
technical factors
Develop milestones for key internal R&BD activities and
signpost for uncertain key external driving forces
42. 42
Technology Strategy Profile Based on Opportunity
Profile
To develop an opportunity-driven strategic technology roadmap, a
technology (strategy) profile will be developed based on the
opportunity profile as the first of the TRM process
Description
Need
Approach
Benefit
Competition
Next steps
Technology Options
Best Technology
Acquisition Strategy
Milestones
Product/Service
Roadmaps
Key Success Factors
Opportunity Profile Technology Profile
43. 43
TechnologyStrategyProfile
Opportunity Roadmap Concept
Technology Requirements
Products/ Services &
Key Success Factors
Products/ Services 1
A B C
Products/ Services 2Products/Services 1
A B C
Key Success Factors
1. .…….
2. ……..
3. ….
Necessary Techs
1. .…..
2. .…..
3. .….
Opportunity Roadmap
Products/
Services
Key Success
Factors
Technology
Now By 2010 By 2013
A B C
A B C
1 2 3 4 ?