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Opportunity and the Concept Summary
In the field of observation, chance only favors minds which
are prepared.
Louis Pasteur
Summary
How can an entrepreneur identify and select a
valuable opportunity?
The choice of an opportunity and the decision to act is a
critical juncture in the life of an entrepreneur. With the
decision to act, the entrepreneur prepares a business
summary for the venture that is used to test the new
venture with potential investors, employees, and
customers.
Chapter 2: Summary Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Six steps to Identifying the Opportunity
acting as an
entrepreneur
Determining the Entrepreneur’s
capabilities and interests
Evaluating the opportunity
Deciding to act on the opportunity
or look elsewhere
Writing a summary of the concept
Testing the summary and the
concept with potential customers
and investors
Chapter 2: Figure 2.1 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Types of Opportunity:
Opportunity Pull:
the size of the opportunity attracts opportunity
seekers to attempt to exploit it.
Example:
A drug to mitigate the effect of Alzheimer’s disease.
Chapter 2: concept Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Types of Opportunity:
Capability Push:
a new technology or capability causes a search for
new applications.
Example:
Digital Television
Chapter 2: concept Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Nine Categories of Opportunity:
1. Increasing the value of a product or a service
2. New applications of existing means or technologies
3. Creating mass markets
4. Customization for individuals
5. Increasing reach
6. Managing the supply chain
7. Convergence of industries
8. Process innovation
9. Increasing the scale of the firm
Chapter 2: Table 2.1 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Evaluating an Opportunity: Sources of Discontinuities
I. Society
Aging society
Lifelong education
Food and population
Regulation
II. Technology
Innovation
Disruptive technologies
New knowledge
III. Markets
Deregulation
Supply chain disruption
Chapter 2: Table 2.2 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Characteristics of Characteristics of
Entrepreneurial Teams the Context
• Positive attitudes towards independence, • Timeliness
achievement, and innovation 100% • Favorable industry conditions
• Acceptance of risk and demanding work effort • Future conditions appear favorable
• Capabilities matching the needs of the venture
• Willing to make the commitment required
• Passionate about the opportunity
50%
50% 100%
100% 50%
0%
Characteristics of
the Opportunity
50% • Novelty of the product
• Potential for sustainable long-term success
Resources • Potential for good return on investment
• Capable of securing access to the • Potential for a growing market
human, financial, and physical • Good risk-versus-reward balance
resources required by the opportunity • Customers are known and responsive
100%
Chapter 2: Figure 2.4 – Evaluating An Opportunity Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Chapter 2: Figure 2.5 - The seven domains of attractive opportunities Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
The Elements of a Business Concept Summary
• Explain the problem or need and identify the customer.
• Explain the proposed solution and the uniqueness of the solution.
• Tell why the customer will pay for the solution.
Chapter 2: Table 2.8 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
The Elements of the Business Story
Background
Describe the current situation, the characters, and the
problem.
Challenge
Describe the challenges and conflicts that impede a coherent
plan to solve the problem.
Resolution
Portray a solution to the challenges and the problem and how
the venture will succeed by resolving the problem.
Chapter 2: Table 2.9 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
The Elements of an Executive Summary
1. Business Concept: The problem and the solution
2. Market, Customer, and Industry
3. Marketing and Sales Strategy
4. Organization and Key Leaders
5. Financial Plan: Four years of summary results
6. Financing and Key Allies Required
Chapter 2: Table 2.12 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
Principle 2
The capable entrepreneur knows how to identify, select, describe,
and communicate an opportunity that has good potential to become
a successful venture.
Chapter 2: Principle 2 Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
VENTURE CHALLENGE
Consider the opportunity you identified at the end
of chapter 1.
1) Evaluate it using Table 2.6’s principles and Table
2.7’s process. Write a concept summary using the
format provided in Table 2.8.
2) Create a brief business story for the opportunity
(venture) as summarized in Table 2.9 and present it
to your team. Be sure to clearly describe the
product or service, what problem it is solving, and
who the customer is.
Chapter 2: Venture Challenge Technology Ventures: From Idea to Enterprise
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Opportunity and the Concept Summary
DVD Videos
“Find a Wave and Ride It”
Erik Straser (MDV)
“Some Disruptive Technologies and Opportunities”
John Doerr (KPCB)
Chapter 2: DVD Videos Technology Ventures: From Idea to Enterprise
