Resources
Factors Contributing to Opportunity Identification
Summary
An opportunity is a product or service that adds value for its user. Key factors for identifying opportunities are: Knowledge, Networks, Creativity, and Changes in the Environment.
Knowledge & Creativity
- Prior knowledge and experience are crucial for recognizing an opportunity. Individuals with different backgrounds may see different opportunities in the same technology.
- Industry experience and technological knowledge are significant sources for new ideas.
- However, existing knowledge can also create cognitive biases and hinder opportunity recognition.
- Overcoming these biases requires creativity.
- Positive Example: Invention of 3D printing led to various opportunities based on individual expertise, such as creating superior drug microstructures (pharmaceutics) or developing office devices for designers (industrial design). (p. 13)
- Negative Example: Sony initially struggled with the CD concept because their thinking was anchored to the format of LP records. (p. 21)
Training Creativity
“The generation of ideas, insights, or problem solutions that are both novel and potentially useful.” (p. 23)
- Creativity can be reactive (solving a problem) or proactive (seeking opportunities).
- Convergent Thinking: Logical, rational, and focused on finding the single best solution.
- Divergent Thinking: Intuitive, irrational, and focused on generating multiple ideas and possibilities.
Conceptual Combination
- Combining different, previously unrelated concepts to create novel ideas.
- This can open up new customer segments.
- Examples: affordable luxury cars, healthy fast food, glamping. (p. 24)
Analogical Reasoning
- Applying knowledge from one domain to another.
- Examples: Velcro (inspired by burrs), airplane wing design (based on birds). (p. 26)
Checklist Method
- Using a list of questions to stimulate new ideas for existing products or services.
- A popular method is SCAMPER: Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, Reverse. (p. 27)
- Other methods include brainstorming, mind mapping, and role-storming.
Network
- Social networks are a key source of information for identifying opportunities.
- Network ties are categorized into strong ties (close friends, family) and weak ties (acquaintances, industry contacts).
- Weak ties are more likely to provide novel information, leading to opportunity recognition.
- Strong ties are crucial for providing emotional support and trust. (p. 19)
Informational Support
- Provides advice, suggestions, and information to recognize trends.
- Sources: Mentors, business networks, other entrepreneurs, industry contacts, tradeshows.
Appraisal Support
- Provides feedback and enables self-evaluation.
- Sources: Coaches, accelerator managers, fellow entrepreneurs.
Instrumental Support
- Provides tangible aid like labor, time, and money.
- Sources: Family, spouses, volunteers, investors.
Emotional Support
- Provides encouragement, empathy, care, love, and trust.
- Sources: Family members, friends.
PEST Changes
Changes in the Political, Economical, Social, and Technological environment create opportunities. (p. 29)
- These changes can create new needs or problems, leading to opportunities for entrepreneurs.
- Monitoring PEST changes helps identify emerging trends and market gaps.
- Tools for monitoring include PEST analysis, trend analysis, and market research.
Change Examples (p. 30)
Political: New regulations, subsidies, trade policies, liberalization (e.g., liberalization of long-distance travel in Germany).
Economical: Economic growth, inflation, unemployment, interest rates (e.g., shifts in labor economics).
Social: Demographic changes, lifestyle shifts, cultural trends (e.g., aging populations).
Technological: New inventions, innovations, advancements (e.g., the rise of AI).
The PEST(EL) framework is also used in SIM
Personal Introspective
Reflect on your own potential opportunities by filling out the table below. (p. 16)
| My Knowledge | My Social Networks | Changes in PEST | Idea? |
|---|---|---|---|
| Software Eng ;) | CODE network (mostly weak, including profs + entrs) | Recession, especially in tech | |
| Urban Mobility | TBO colleagues (weak) | 15min cities | |
| IoT + Electrical Eng | 6tuple friends (strong) | Energy prices | |
| Super basic building architectur | B/F friends (strong) | Housing crisis | |
| Corporate tooling | Parents (strong) | Deglobalization | |
| Basic data science | EU friends (weak) | Huge compute resources |