Examples Flashcards
IDEO - Brainstorming
Silicon-Valley based innovation consultancy. Came up with the design for the first apple mouse
They go for ‘fluency and flexibility’
Fluency - rapid flow of ideas
Flexibility - approaching same idea from different viewpoints
7 rules
- Defer judgement
- Encourage wild ideas
- Build on ideas of others
- Stay focussed
- One conversation at a time
- Be visual
- Go for quantity
Henry Ford - why problem/need identification is not always the best way to find a business opportunity
‘if I’d have asked people what they wanted, they would have said faster cars’
Example of a firm licensing its IP
Amazon has a patent for the ‘one-click’ online ordering system, allowing consumers to purchase a good with one click.
In 2000, it licensed the process for use by Apple on is iTunes store.
Amazon filed a patent infringement against Barnes and Noble after they claimed the company’s ‘express lane’ ordering system breached their patent. Amazon won
What is an IPO and give an example
Initial Public Offering
When a company is privately owned, the founders and private investors who helped fund the company all hold shares in the company. Those shares will have little value since they aren’t publicly traded. After the company’s IPO, those shares can increase in value by a huge margin. In short, anyone who has a lot of those shares could become very rich by selling them.
Such as Facebook that was recently valued at $85bn In its IPO earlier this year
However, IPOs are expensive and the founder have to be sure that the cost will be worth what is recieved. You have to convince market analysts that your business is worth a sum
Geoffrey Moore - determinants for crossing the chasm successfully
- Relative Advantage
- Compatibility
- Complexity (ease of use)
- Trial-ability
- Observability
- how many other people are doing it, word of mouth, recommendations are key
Failing to cross the chasm: Sony DAP
Why did Sony lose market share to apple, when they were the first mover in the DAP industry?
Launched Sony DAP in 1999
- Did not target a specific target market so did not attract enough visionaries to trigger large-scale adoption
- Not enough observability as a result - spread across too many segments
- Not compatible with MP3 format that was becoming increasingly popular and available
(Incumbent inertia - Sony had already developed their own file format - ATRAC, didn’t want to change)
Successfully crossing the chasm - Apple iPod
Apple released first DAP iPod in 2001
- No radical innovation
- Simple design: click wheel and few buttons which was opposite to competitors
- Began targeting mac-users
- White headphones (OBSERVABILITY)
-> stimulated demand for other segments
E.g. Windows users
Subsequent iPods compatible with windows
MP3 format compatible
What is a niche market?
Very specific subset of a larger market
Problems with services and possible solutions (marketing)
Intangible
-> relationship maintained, milestones, trust
Inseparable - production and consumption occurs simultaneously
-> encourage client participation in process
Variable - high human contact leads to high variety
- > Communication, personal packages
- > rely on marketing through recommendations
Perishable - cannot be stored/ perishes immediately
Problem:
periods of excess supply and demand
Cannot be stored for future use
-> Demand-based pricing
-> Retainer fees mean predictable cash flow
Business planning - HF
‘Before everything else, getting ready is the secret of success’
