Innovation & Entrepreneurship basics - how to think like an entrepreneur and models, analytical tools and frameworks to further develop a business idea, explore a market and develop a minimum viable product (mvp).

1. Innovation and
Entrepreneurship
Innovation & Entrepreneurship - From Basics to Open Innovation
EIT Digital

2. This Innovation and Entrepreneurship course focuses on the interconnection
between entrepreneurial thinking and innovation.
Specifically, we look at models used in SiliconValley to grow both start-up
companies as well as innovation inside large organizations. Bringing together
Haas School of Business, UC Berkeley faculty, this course addresses critical areas
for successful growth, including design thinking, open innovation, business
models, product-market fit, and financing.
This course will teach you how to think like an entrepreneur and provides the
models, tools and frameworks to further develop your business or idea.
About this course

3. Definitions
developing a new solution or new way of doing something that drives
differentiation versus the existing offerings versus your competitors and
creates measurable value.
Innovation
pursuing opportunities, often, but not always, based on innovation, without
regard to the resources directly and currently controlled by them.
Entrepreneurship

4. A practical framework for innovation
What
Who
new
new
now
now
Clients,Target audiences, Continents, Markets, etc.
Products,
Services,
Technologies,
etc

5. Not all Innovation needs to be
Revolutionary
Incremental Evolutionary Revolutionary
Efficiency gains Major product
developments
Massive disruption to
sector or industry

6. 000
Innovation Portfolio Matrix
Certainty
LowMediumHigh
Timing
Horizon 1
(short-term)
Horizon 2
(mid-term)
Horizon 3
(long-term)
HighModerateLow
Risk
10%
20%
70%

7. 000
Innovation Portfolio Matrix
Certainty
LowMediumHigh
Timing
Horizon 1
(short-term)
Horizon 2
(mid-term)
Horizon 3
(long-term)
HighModerateLow
Risk

8. What is a startup?
Aiming for:
Total global domination in
your chosen market niche.
 a temporary organization
 designed to search
 for a repeatable
 and scalable business model
Startup Mistakes
1. Full scale roll-out
2. China syndrome
3. Selling to all customers
everywhere
4. Selling exclusively
to one customers

9. 02 TAM SAM SOM
04 Customer Interviews
06 Experiment
01Market
Segmentation
03Beachhead Market
05Minimum Viable
Product

10. Market Segmentation
1. Customers within a market segment, all buy similar products.
2. Customers that have similar sales cycles and expect products to behave
in a similar way.
3. There is ‘word of mouth’ between the customers in the segment.
Three characteristics
Example

11. TAM SAM SOM
TAM -Total Addressable Market
SAM - Serviceable Addressable Market
SOM - Serviceable Obtainable Market
TAM
SAM
SOM

12. Multi Criteria Analysis
Segment 1 Segment 2
Segment 3 …
Buyer
Is there a single, identifiable, economic buyer?
4 1 2
Well funded
Is the target customer well funded?
5 3 2
Accessible
Is the target customer readily accessible to you?
3 2 2
Buying reason
Does the customer have a compelling reason to buy?
2 5 1
Whole product
Can you deliver a whole product?
5 5 2
Competition
Is there competition that could block you?
5 4 4
Next segment
If you win this segment, will you be able to enter the next one?
5 4 5
Founder’s dream
Is it aligned to the founder’s dream
5 2 1

13. Multi Criteria Analysis
 Size of the market ($)
 Number of customers
 Access to the Decision Making Unit (DMU)
 Innovation speed market
 Your love for the market
 MVP potential
 Customer pain?
Other criteria to consider

14. Customer interviews for market insights
 Do you think it is a good idea?
 Would you buy a product that would
solve this problem?
 How much would you pay for this
product?
Bad Questions
 How do you currently deal with this
problem?
 Talk me through about the last time you
had this problem?
 How much money does this problem
currently cost you?
 Is there budget for this?
 Who else should I talk to?
Good Questions

15. Customer interviews for market insights
1. Ask about past behaviour
2. What keeps them awake at night
3. Frequency of the problem occurring
4. Try to get as many details
5. Find out current solutions
Rules
Excitement
Frustration
Things they care about
Look for emotions:

16. MinimumViable Product
Dropbox: put up a video “wouldn’t it be great if…” before having the
product and a sign up form to gauge people’s interest.
MVP is that version of a new product which allows a team to
collect the maximum amount of validated learning about
customers with the least effort.
Commitment is the best signal
 Time (spend time to discuss)
 Reputation (putting the boss on the table)
 Money (paying for the service/product)
What is the smallest product
that you can sell the soonest
to which market