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Flashcards in 1: Context and role of entrepreneurship Deck (10)
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1
Q

The 4 phases of The Industry Cycle

w protagonists of the Opportunity Space

A

1 Technology Pioneers -
Era of Ferment/ Disruption

2 Fast Follower Innovators -
Growth

3 Traditional Startups -
Consolidation

4 Business Model Innovators
Maturity

2
Q

The 3 Technologies currently in the era of ferment

A

digitalization
VR
Big Data

3
Q

Commercializing Technology timeline in 3 phases,

w typical durations & events

A
  • invention

… 28.1 y area of ferment:
sci publications & patents

  • commercialization

… 6.2 y growth:
spin-offs

  • firm takeoff

… 8.0 y consolidation:
acquisitions

  • sales takeoff

… maturity

4
Q

the New Theory of Venture Evolution:

The 2 macro-determinants of New Venture Behavior

A
  1. Institutional:
    Stakeholders expectations determine new venture behavior
  2. Behavioral:
    What founders decide to do is constraint by the information they have access to (bounded rationality)
5
Q

the New Theory of Venture Evolution: main task of New Venture,
w def., nature
& 2 main methods

A
  • Technology Ventures “search” for optimal technology-market fit
  • Heuristic Task
    (you don’t know the means nor the end goal)
  • Targeted Market Search =
    contact lead users, map the market, determine the optimal pair
  • Technology Broadcasting =
    communicate what you have to a wide enough audience
6
Q
Factors in ability to Search for "Technology Push" application/opportunity identification :
5 features+
2 methods+:
 1/
2-
A

5 features+:
+ openness to new experiences

+ market partnerships

+ tech knowledge of founding team

+ serial entrepreneurship experience

+ heterogeneous team backgrounds in

1) age
2) industry background
3) social level
4) …others

2 methods+:
+ market screening

+ pivoting

1/ conscientiousness –> traditional entrepreneurs

  • in-depth market(ing) experience –> traditional entrepreneurs
  • Technology partnerships
7
Q

Indicators of performance for New Ventures:

1-
1+

A
  • Financials do not indicate the performance
    or potential of a new venture (they all lose money)

+ Need for developing non-financial metrics:

1) Users,
2) patents,
3) installed base

8
Q

3 institutional factors influencing behavior of new venture:

A

How to convince

  • venture capitalists?
  • acquirers?
  • potential shareholders?
9
Q

3 features of phase 2
(growth = fast follower innovation)

w sub-features & 3 examples

A
  • Vision on the Mass Market
    – Upscaling Existing Products/Services to mass market products
    through differentiation and/or low cost;
    – Examples:
    1. Ray Kroc & Mac Donald’s,
    2. Richard Branson and Virgin Galactic,
    3. Steve Jobs and iPod, iPhone and iPad
  • Customer Driven
    • Technology
  • Financial Commitment
    • Technology Acquisition ready to Upscale
    • Collaboration with Private Equity Partners and/or JV
10
Q

Phase 4 (not 3): Business Model Innovation

def
4 examples
4 features
1 key business plan aspect

A
= the introduction of fundamentally different business models in existing industries
- Examples:
1- Apple’s iTunes
2- Ryanair and Southwest 
3- Amazon.com
4- AirBnB
  • Unlike Dominant Designs, old Business Models continue to exist
  • Business Models might be difficult to protect, if successful
  • Business Models might cannibalize, usually start small
  • implications for social identity
  • roll-out plan!