Objectives
•
Introduction to tools for developing new products/services
•
Introduction to business case development and business planning
processes
•
Identification of resource generation
Pre
Pre–Business PlanningBusiness Planning
•
•First Principles:First Principles:
•
•Does the idea Does the idea fitfitwith the vision, mission and values of the company?with the vision, mission and values of the company?
•
•Does the idea Does the idea fitfitwith the strategy of the company?with the strategy of the company?
•
•Does the idea Does the idea fitfitwith the internal capabilities of the company and the with the internal capabilities of the company and the external position of the company?external position of the company?
Building a Business Plan
Building a Business Plan
1.
1.Customer SegmentsCustomer Segments: which segments does it cover?: which segments does it cover?
2.
2.Value propositionValue proposition: what customer problems does it solve, what needs does it : what customer problems does it solve, what needs does it satisfy?satisfy?
3.
3.ChannelsChannels: what communication channels, distribution and sales channels : what communication channels, distribution and sales channels does it use to deliver value proposition?does it use to deliver value proposition?
4.
4.Customer RelationshipsCustomer Relationships: What type of CR has it developed with each : What type of CR has it developed with each customer segmentcustomer segment
Building a Business Pla
Building a Business Plan (cont’d)n (cont’d)
5.
5.Revenue StreamsRevenue Streams: asset sale; usage fee; subscription fees; : asset sale; usage fee; subscription fees; lending/renting/leasing; licensing; brokerage; advertising lending/renting/leasing; licensing; brokerage; advertising ––using fixed menu using fixed menu pricing or dynamic pricing?pricing or dynamic pricing?
6.
6.Key ResourcesKey Resources: what assets does it have to deliver all of above?: what assets does it have to deliver all of above?
7.
7.Key ActivitiesKey Activities: what key activities dose it perform? KA are categorized as : what key activities dose it perform? KA are categorized as Production; Problem Solving; Platform/NetworkProduction; Problem Solving; Platform/Network
8.
8.Key PartnershipsKey Partnerships: does it have strategic alliances between non: does it have strategic alliances between non–competitors; competitors; coco–opetition; joint ventures; supply channels that are reliableopetition; joint ventures; supply channels that are reliable
9.
9.Cost StructureCost Structure: is it cost: is it cost–driven or valuedriven or value–driven; what are its fixed costs, driven; what are its fixed costs, variable costs, economies of scale, economies of scopevariable costs, economies of scale, economies of scope
TED. Aug 10, 2012. Creativity is a remix | Kirby Creativity is a remix | Kirby Ferguson. Ferguson. Retrieved from Retrieved from http://www.youtube.com/watch?feature=player_embedded&vhttp://www.youtube.com/watch?feature=player_embedded&v=zd=zd–dqUuvLk4#dqUuvLk4#
Project Management and Innovation
Project Management and Innovation
•
•NASANASA
•
•StageStage–gate approachgate approach
•
•Go/noGo/no–go and sunk costsgo and sunk costs
•
•StageStage–gate primarily consists of these phases:gate primarily consists of these phases:
1.
1.Preliminary investigationPreliminary investigation
2.
2.Build the business caseBuild the business case
3.
3.DevelopmentDevelopment
4.
4.Testing and validationTesting and validation
5.
5.Full production and market launchFull production and market launch
Stage 1
Stage 1
Preliminary
Testing
Testing and and ValidationValidation
Post
Post–development development ReviewReview
Post
Post implementation implementation reviewreview
Decision on
Decision on Business Business CaseCase
Build
Build Business Business CaseCase
3.
DevelopmentDevelopment
Testing
Testing and and validationvalidation
Full
Full Production Production & Market & Market launchlaunch
Stage
Stage–gate new product processgate new product process
Project Management and Innovation
Project Management and Innovation
Stage
Stage–gate tool gate tool ––a guideline not a biblea guideline not a bible
•
•FluidFluid––adaptable and may have overlapping stages for greater speedadaptable and may have overlapping stages for greater speed
•
•FuzzyFuzzy––conditional ‘GO’ decisionsconditional ‘GO’ decisions
•
•Focused Focused ––looks at portfolio of projects and focuses resources on ‘best bets’looks at portfolio of projects and focuses resources on ‘best bets’
•
•FlexibleFlexible––not rigid stagenot rigid stage–andand–gate system gate system ––may require own routes through the may require own routes through the system, depending on the contextsystem, depending on the context
Capabilities
Capabilities Assessment Assessment and and ForecastingForecasting
Market
Market Assessment Assessment and and ForecastingForecasting
Business
Business StrategyStrategy
Development
DevelopmentGoals aGoals and nd ObjectivesObjectives
Project
Project Portfolio Portfolio PlanningPlanning
Project
Project management management and and ExecutionExecution
Post project
Post project learning and learning and improvementimprovement
Capabilities Strategy
Capabilities Strategy: :
Core competencies, technology,
Core competencies, technology, technology integrationtechnology integration
Product/market Strategy
Product/market Strategy
Position on new and existing
Position on new and existing marketsmarkets
Derivative product/new concept
Derivative product/new concept
Financial contribution
Financial contribution
Development Funnel
Development Funnel
Preliminaries of Business Planning: Making
Preliminaries of Business Planning: Making the business casethe business case
A Business Plan Is
A Business Plan Is
The explicit statement of your
The explicit statement of your goalsgoals, the , the mechanismsmechanismsyou will use to reach them you will use to reach them and the and the quantum of successquantum of success..
Strategic vs Business Plans
Strategic vs Business Plans
3–5 Years (often 5 Years (often rolling)rolling)
Next Financial Year
Next Financial Year
NAVIGATION
NAVIGATION
Direction Setting
Direction Setting
Definition of
Definition of MilestonesMilestones
Strategic vs Business Plans
Strategic vs Business Plans (cont’d)(cont’d)
•‘Selling’ ‘Selling’ insideinsidethe organisation and/or ‘selling’ to the organisation and/or ‘selling’ to outsideoutsidefinancial backersfinancial backers
•
•Develop a convincing storyDevelop a convincing story
•
•Develop a business planDevelop a business plan
Business case development
Business case development
•
•Scan the industryScan the industry
•
•Market sizeMarket size
•
•Age/gender/income/education/ethnicity/family Age/gender/income/education/ethnicity/family trendstrends
•
•Economic issuesEconomic issues
•
•Industry trends and technological changeIndustry trends and technological change
•
•Regulatory frameworkRegulatory framework
•
•Ecological and environmental trendsEcological and environmental trends
•
•Barriers and attractionsBarriers and attractions
•
•Scan the competitionScan the competition
•
•Porter’s five force modelPorter’s five force model
•
•Direct and indirect competitionDirect and indirect competition
Scan the industry
Scan the industry
•
•Mission/Vision Mission/Vision for new companyfor new company
•
•Location of the businessLocation of the business
•
•Customers / segmentsCustomers / segments
•
•Pricing policyPricing policy
•
•PromotionPromotion
•
•SWOT your SWOT your offer (refer to slide 18/19)offer (refer to slide 18/19)
•
•Strategic fit with existing company (mission/visionStrategic fit with existing company (mission/vision))
Scan the Industry
Scan the Industry
•
•PEST analysis and how these factors may effect the success of your venturePEST analysis and how these factors may effect the success of your venture
Scan the competition / Industry analysis
Scan the competition / Industry analysis
•
•Porter’s Five ForcesPorter’s Five Forces
Resource Generation
Resource Generation
•
•Four ways of raising capital:Four ways of raising capital:
•
•SubsidySubsidy
•
•BorrowingBorrowing
•
•ReservesReserves
•
•Shareholder’s equity Shareholder’s equity
Resource Generation
Resource Generation
•
•InvestorInvestor
•
•Bank, joint venture, venture capitalistBank, joint venture, venture capitalist
•
•GovernmentGovernment
•
•Angels and informal investors (including PPF, crowd funding)Angels and informal investors (including PPF, crowd funding)
•
•SponsorSponsor
•
•Cause related marketing, advertising, promotionCause related marketing, advertising, promotion
•
•Philanthropist or DonorPhilanthropist or Donor–Investor or Venture PhilanthropyInvestor or Venture Philanthropy
•
•‘People no longer give to charity, they buy into results’ ‘People no longer give to charity, they buy into results’
(Peter Drucker in Dees et al, 2003
(Peter Drucker in Dees et al, 2003 Strategic Tools for Social Strategic Tools for Social EntrepreneursEntrepreneurs, p. 118), p. 118)
Questions
Questions your managers may ask before funding is givenyour managers may ask before funding is given
•
•Is there a Is there a need for the product?need for the product?
•
•Is the proposed solution/service/product compelling enough to overcome Is the proposed solution/service/product compelling enough to overcome people’s inertia?people’s inertia?
•
•Is the potential market large enough?Is the potential market large enough?
•
•Has the company the capacity to be a major player?Has the company the capacity to be a major player?
•
•Has the competition been assessed properly, including future competition?Has the competition been assessed properly, including future competition?
•
•It is easier to expand from a niche than to enter a major market headIt is easier to expand from a niche than to enter a major market head–on on ––if if it is a niche, is it big enough to be of interest?it is a niche, is it big enough to be of interest?
•
•What are the routes to What are the routes to market for the product?market for the product?
•
•Is there a strong team behind it Is there a strong team behind it ––does it have the right skill mix, balance, does it have the right skill mix, balance, energy, drive?energy, drive?
•
•Does the revenue model stack up Does the revenue model stack up ––what influences break even point and what influences break even point and are assumptions valid?are assumptions valid?
•
•What does the cash flow look like What does the cash flow look like ––can the company survive?can the company survive?
Testing the plan
Testing the plan
23
Risk
Risk
•
•How How much much risk is risk is entailedentailed??
Feasibility
Feasibility
•
•Do you Do you have the have the resources resources and and capabilitiescapabilities??
Viability
Viability
•
•Can you Can you afford it?afford it?
Mission
Mission
•
•Does the Does the plan take plan take you towards you towards your your Mission?Mission?
Summary
Summary
In this topic you will cover the following aspects to inform the
In this topic you will cover the following aspects to inform the development of your venture plan:development of your venture plan:
•
•Strategic planning elements that you will need for business Strategic planning elements that you will need for business planningplanning
•
•Business planning process your organisation may use to assess Business planning process your organisation may use to assess your ventureyour venture
•
•Understand the various aspects of a venture plan, including Understand the various aspects of a venture plan, including SWOT and PEST?SWOT and PEST?
References
References
Kochikar
Kochikar, P. & , P. & RavindraRavindra, M.P. (2007) Developing the capability to be agile. , M.P. (2007) Developing the capability to be agile. Organization Organization Development JournalDevelopment Journal, , ( 25)( 25)4, 1274, 127–134134
The post Funding and Running a New Venture appeared first on My Assignment Online.