Use SCAMPER to Change Something

REAL Brain Modes of Thinking

 

Crucial Questions (CQs)

Ask and you shall receive!

First Round ... ask the the basic CQs

Second Round ... ask supporting CQs for each of the basics

Third Round ... dig deeper!

Potential Sources of Differentiation

Every successful business is differentiated from its competition ... it could be very unique and significant, or it may be seemingly small and minor. But customers choose one enterprise over another for a reason. Following are some potential sources of value and differentiation to use as a guide when creating a competitive advantage strategy ...

ambiance ... branding ... business model ... community service ... contrived deterrence ... convenience ... copyrights ... cost advantages ... cost advantages independent of scale ... customer relations ... customer responsiveness ... customer service ... delivery ... distinct unique competencies ... economies of scale ... effective sales methods ... efficiency ... experience of doing business ... features ... functionality ... government regulation ... high quality ... image ... innovation ... intellectual property ... limited resources ... location ... low-cost ... manufacturing innovation ... market positioning ... market segmentation ... operational methods ... patents ... performance ... price ... product design ... product differentiation ... product innovation ... product selection ... product-line breadth ... quality ... rarity ... relationships ... reliability ... reputation ... selection ... service ... shopping experience ... supply chain relations ... switching costs ... trademarks ... trade names ... unique capabilities ... value

[1.07]

Tips for Picking the Right Opportunity

1. You and your team are passionate and persistent ...
2. Your team has or can learn the skills needed ...
3. Your team can collaborate and cooperate ...
4. The problem is clear ...
5. The customers are readily identified ...
6. The market is significant ...
7. You have a feasible solution ...
8. The competition is identifiable ...
9. Your solution has better and sustainable benefits ...
10. Your solution can generate a sustainable profit ...
11. Your venture is timely, important, legal ...
12. Your venture can build barriers to entry ...
13. Your concept is scalable ...
14. You'll invest less time, money, and effort in the venture than it will be worth in a couple of years ...
15. If the opportunity turns out to be less than favorable, you can exit with minor losses ...
16. Risks can be mitigated ...
17. The upside potential is significant and timely ...
18. Your team has a clear plan for success ...
19. Your team can find the resources needed ...
20. You and your team are committed to success ...
21. The opportunity has a potential for long-term success ...

Innovation Impact Mindmap

For 20+ years, I taught in a University of Arizona entrepreneurship program.  This Innovation Impact Mindmap started on the whiteboard in my office, a graphic schematic of the course syllabus.  

A syllabus is sequential, but innovation and entrepreneurship usually is not.  They bounce around a bit, from here to there and round again. 

The whiteboard version was fairly simple, but useful.  Students and colleagues took pictures of it for reference.  So, I thought, why not elaborate it just a little bit?  

[OK, OK, so maybe a little bit more than just a little bit!]  

I've added elements that I thought would be most useful, but certainly not all apply to every new venture! The "main highway" is the mission statement, highlighted in yellow.

Think of this Mindmap as a checklist of the elements you might want to visit as you travel around on your new venture adventure! 

High resolution .pdf .jpg and .png versions are available HERE.

--Jim

The Innovation Ferris Wheel

Stages of Venture Evolution

Successful business ventures typically move from a] problem/solution ideation to b] planning to c] startup to d] stable to e] sustainable to f] scalable.

Another perspective ...

1. Opportunity ... gap in market, new technology ... maybe, just maybe, we can do something here
2. Idea ... clear problems, viable solutions ... hmmm, looks like there is something here
3. Concept ... viable strategies for earning a profit solving customer problems better than the competition
4. Venture ... viable innovation concept (product, service, process, position, method); viable team (innovator, entrepreneur, money manager); viable resources (people, places, things, time, money)
5. Organization ... team, roles, clear strategies,
6. Company ... legal entity (corporation, LLC, et alia), pre-sales, unstable financials (raising funds)
7. Business ... low-hanging fruit, sales, customers, stable, positive EBITDA, viable business model
8. Enterprise ... scale, scope, markets, growth, significant EBITDA, defined task and assignments, employees
9. Institution ... significant market share, significant industry position, re-invention, continual innovation
10. Tombstone ... the cows have run out of milk

Technology Readiness Levels (TRL)

Most every new innovative idea has a fuzzy front-end. The idea may have potential, at least in someone's mind, but it also likely has "holes" in it.  Will it really work? What about this, what about that?
If we were to score this new idea, from 0 to 9, where would it be? Turns out, NASA and the European Commission created a well-vetted method for scoring new ideas based on the stage of technological progress ... 0 being conceptual, 9 meaning the idea is out there and doing well in the world.

Rules of Some for Innovators and Entrepreneurs

Here's a collection of more tips, tools, and rules of some for innovators and entrepreneurs: RulesOfSome.com

How to Solve a Problem

1. Define the problem
2. Define a set of criteria for a good solution
3. Explore potential causes of the problem
4. Explore existing solutions
5. Identify alternative approaches for resolving the problem
6. Select the best approach for resolving the problem based on the criteria for a good solution (number 2 above)
7. Plan the implementation of this approach
8. Implement the plan
9. Monitor the results
10. Verify the problem has been resolved

[1.05]

Marketing Brochure Prototype

A prototype marketing brochure is a good tool for "testing the waters" with prospective customers.

1. Easy way to test a new product, service, solution idea
2. Easy to iterate a concept
3. Easy to put in front of prospective customers for feedback: test, measure, learn
4. Customer can become part of the design process ... pencil and paper and eraser
5. Inexpensive ... time, money, resources
6. Works for most any idea concept
7. Flexible "size" (number of pages) although the fewer the better 
8. Can incorporate in the venture business plan, summary
9. Can use to design and develop a product and/or service based on prospective customer reactions to the product and/or service describe in the prototype brochure

Here's a "pencil sketch" of a marketing brochure template:

An 18-slide Venture Plan Presentation

Slide 1: "Billboard"

Slide 2: Core Team ... who, what

Slide 3: Problem / Customer / Opportunity ... scale and scope of problem, SOM/SAM/TAM

Slide 4: Solution ... brochure

Slide 5: Value Proposition ... Customer NWD Profile, Benefits, FFFF

Slide 6: "Underlying Magic"... differentiation, competitive advantages, core competencies

Slide 7: Industry and Environment ... Who, What, SWOT

Slide 8: Competitive Analysis ... Who, What, SWOT

Slide 9: Business Model ... BM canvas

Slide 10: Go-to-Market Plan ... Strategies

Slide 11: Sales Plan ... Objectives

Slide 12: Operations ... Production, distribution, delivery, margin objectives

Slide 13: Growth Strategies ... Scale and Scope

Slide 14: Timeline ... What, when, where

Slide 15: Financial Objectives and Key Metrics ...

Slide 16: Use of Funds ...

Slide 17: Funding Proposal ... Equity, debt, grants, gifts

Slide 18: "Billboard"

---

Slides 19 to 100+ will have all the gory details!! Lists of 100: customers, prospective customers, target markets, competitors, prospective collaborators, suppliers, prospective investors, ...

These 18 slides also form the foundation for a formal written business plan and an executive summary.

How to Start a New Venture

Go on a DXpedition ...

The Desire Phase ...
Determine why you (and your teammates) want to start a new venture

The Discover Phase ...

Form initial core entrepreneurial team
Identify problems or opportunities

The Define Phase ...
Screen problems or opportunities

Define the value proposition

The Design Phase ...
Generate potential solutions
Create a business venture hypothesis
Design a business venture plan

The Deploy Phase ...
Acquire needed resources
Launch the venture

The Develop Phase ...
Test, validate, and refine the venture hypothesis
Develop and iterate the venture based on real customer experiences

Waterfall Veture Planning

1. Vision ... "We will change the way someone does something!" [Be specific, 100 words or less: Who is someone? What is the something? Why are you going to change the way it is being done now? How?]
2. Mission ... "We will earn a profit solving customer problems better than the competition!" [Be specific, 100 words or less: Who are the target customers? What are their problems? How will you solve them? What is the competition? How are you better? What will you do to earn the business? How will you make a profit? How much?]
3. Goals ... "In five years, we will ..." [What are your three most important goals?]
4. Objectives ... "To reach our goals, we must accomplish these objectives ..." [What are the three most important objectives for each goal that must be accomplished in the next six months?]
5. Strategies ... "To accomplish our objectives, we will do this better than our competition ..." [What methods will you use to reach your objectives?]
6. Tactics ... "To implement our strategies, we will do these things ..." [What three procedures will you use to carry out your strategies?]
7. Tasks ... "To execute our tactics, we will ... " [What three things must be done to realize your tactics?]
8. Assignments ... "Here's who is going to do what and when ... " [Who are the best people for each task?]

[6.17]

Catergories of Innovation

Innovation has a revolutionary reputation, but an evolutionary reality!  

An innovation is (simply) Something New and Better ...

• Something: a product, service, process, methodology, or market positioning. 
• New: didn't exist before in this market space.
• Better: desirable benefits, a lower price, or both ... compared to the available alternatives.

That's not to imply that the innovation process is simple, by no means!  It can be quite complex, even if the final result doesn't necessarily reflect such.

Some types of innovation are pretty simple, pretty straight-forward. A new hot dog stand on a corner can be an example of "positioning" innovation ... simple, yet it does provide something new and better.

Other innovations are indeed quite complex and required high levels of intellect, resources, skills, education, and expertise.

Here are some general categories of innovation:

1. Incremental … basic design concepts are reinforced, linkages between modules are unchanged
2. Component or modular … basic design concepts are overturned, linkages between modules are unchanged
3. Architectural … linkages between modules are changed, basic design concepts are reinforced
4. Radical … basic design concepts are overturned, linkages between modules are changed
5. Disruptive ... technological discontinuity
6. Application ... technology application creates new market ... killer application
7. Product ... improved performance, dominant design
8. Process ... more efficient and/or effective processes
9. Positioning ... establishing a venture in a new space
10. Experiential ... improved customer experience
11. Marketing ... improved marketing relationships
12. Business model ... reframe the value proposition or value chain
13. Structural ... responds to structural changes in the industry
14. Service … give the same products but with much better service
15. Paradigm ... good luck! If we want a paradigm shift, we'll need a solid combination of several simpler innovations!

Glossary

A good way to learn a lot about a topic through language ... what are the key terms that define a particular topic? Here are some of the key innovation and entrepreneurship terms ...

• Accounting: the action or process of keeping financial records relating to a particular period or purpose
• Advertising: describe or draw attention to a product service or event in a public medium in order to promote sales or attendance
• Benefit: an advantage or profit gained from something
• Better: a more excellent or effective type or quality
• Budget: an estimate of income and expenditure for a set period of time
• Business: an organization focused on the work that has to be done to profitably solve customer problems
• Business Model: a design for the successful operation of a business identifying revenue sources customer base products and services operational processes and details of financing
• Business Plan: a formal statement of a set of business goals the reasons they are believed attainable the plan for reaching those goals and information about the organization or team attempting to reach those goals
• Cash Flow: the total amount of money being transferred into and out of a business especially as affecting liquidity
• Change: become or make different
• Core Competency: a defining capability or advantage that distinguishes a venture from its competitors
• Cost: an amount that has to be paid or spent to buy or obtain something
• Critical Success Factor (CSF): an element that is necessary for a venture to achieve its mission
• Desire: strong feeling of wanting to have something that is not absolutely needed
• Earn: obtain money or other value in return for products or services
• Elevator Pitch: a short summary used to quickly and simply define a venture product service organization or event and its value proposition
• Enterprise: a project or venture typically one that is difficult or requires effort initiative and resourcefulness.
• Entrepreneur: a person who organizes and operates a venture
• Entrepreneurial Mindset: the ability to recognize opportunities for innovation and enterprise
• Entrepreneurship: the process of starting a business venture or other organization
• Environment: the setting or conditions in which a particular activity is carried on
• EPSCPBC: an acronym for "Earn a Profit Solving Customer Problems Better than the Competition" ... something every business venture must do to survive and thrive
• Executive Summary: a short document or section of a document that summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all
• Exit Plan: a means of leaving a current situation after a predetermined objective has been achieved
• Forecast: a prediction or estimate of future events
• Goal: a long-term aim or desired result
• Ideation: the formation of ideas or concepts
• Income Statement: a financial document that gives operating results for a specific period; it typically includes sales revenue cost of sales gross income operating expenses and earnings
• Innovation: make something new and better or improvements in something by introducing new methods ideas products services processes market positions or paradigms
• Input: a contribution of work information money or material
• I-P-O: abbreviation for Inputs-Process-Outputs
• IPO: abbreviation for Initial Public Offering
• Judgment: the ability to make considered decisions or come to sensible conclusions
• Management: the process of dealing with or controlling things or people
• Margin: an amount of something included so as to be sure of success or safety
• Market: a demand for a particular commodity or service and the customers that create that demand
• Marketing: the action or business of identifying promoting and selling products or services to selected markets
• Mission Statement: a statement of the purpose of a venture or organization and its reason for existing; the mission statement should guide the actions of the organization spell out its overall goal provide a path and guide decision-making
• Need:  something that is a necessity
• Operations: the harvesting of value from assets owned by a business; manufacturing production and delivery of goods and services
• Organization: the structure of related or connected people places and things to achieve specified objectives
• Output: the amount of something produced by a venture
• Plan: a detailed proposal for doing or achieving something
• Price: the amount of money expected in payment for something
• Problem: a matter or situation regarded as unwelcome or harmful and needing to be dealt with and overcome
• Process: a series of actions or steps taken in order to achieve a particular end
• Profit: a financial gain especially the difference between the amount earned and the amount spent in buying operating or producing something
• Research & Development: work directed toward the creation innovation improvement and introduction of products and processes
• Resources: a stock or supply of money materials staff and other assets that can be drawn on by an organization in order to function effectively
• Reward: something received as a result of achievement
• Risk: the possibility that something unpleasant or unwelcome will happen
• Sales: the exchange of a product or service for money; the action of selling something; the organization within a venture responsible for the selling activities
• Social Responsibility: an obligation to act in ways that benefit society at large
• Something: a product service process position or paradigm
• Solution: products services or processes designed to meet particular need wants and desires
• Strategic Position: the orientation of a venture in relation to the environment in particular the competition
• Team: two or more people working together
• Technology: the application of scientific knowledge for practical purposes
• Time: the indefinite continued progress of existence and events in the past present and future regarded as a whole
• Timing: the choice judgment or control of when something should be done
• Transformation: a qualitative change from one set of elements into another by a predetermined process utilizing a set of resources
• Value:  the importance worth or usefulness of something
• Value Equation: Value equals Benefits divided by Price (V = B/P)
• Value Proposition: a promise of value to be delivered and a belief from the customer that value will be experienced
• Venture: a business enterprise involving risk but with a significant reward for success
• Vision: the ability to think about or plan the future with imagination or wisdom
• Want: a strong wish for something
• Work: activity involving mental or physical effort done in order to achieve a purpose or result

Elevator Pitch

An Elevator Pitch is succinct and persuasive sales spiel that takes about as long as riding an elevator from the ground to floor 42 (30 seconds, give or take). Some humor intended!  It's Bill and Melinda Gates in the elevator with you, by chance, and 30 seconds is all you're going to get!  Are you ready?

1. Begin with an end in mind: What is it that you are looking to gain? Most often the pitch is used as a tool to capture enough interest to warrant a formal
2. Sell, Sell, Sell: What are you really selling? You are selling yourself! You're selling your dream. Be confident and show your passion.
3. Keep it simple: You should deliver a clear, compelling and simple image of your opportunity that is easy to remember and repeat. You want the audience to say, "I get it!"
4. Image is everything: The pitch must implant a clear image of your opportunity in the mind of the audience.
5. Adapt your presentation to the audience: The same pitch you use for an investor might not be the same as to a supplier. (For the sake of simplicity, the term audience is used in a generic sense to include an investor, supplier, employee, customer or even a judge in a competition.)
6. Lay out the benefits: Demonstrate how your business will impact consumers and showcase the return to the investors.
7. Differentiate yourself from the competition: Focus on outlining the special features of your product/service that gives you the edge over the competition. Time permitting, summarize the competitors and insert facts or statistics where necessary.
8. Don't forget the numbers: Depending on the audience, you need to insert a snapshot of your financials and other critical data. For example, "In year three we expect to capture 3 percent of the market, giving us $30 million in sales revenue." Investors also want to know the amount of investment you need and the return on investment (ROI).
9. Be memorable: Use your creativity and imagination. Put a tag on it! For example: Chevy - Like a rock. Nike - Just do it! BMW - The ultimate driving machine.
10. Conclude with a call to action: For example, "Thank you for the opportunity to pitch my idea. I'd be glad to provide greater detail over a lunch." The best pitch is useless without any follow-up action.
11. Practice! Practice! Practice! While there are always a few naturally-gifted speakers out there, the more you rehearse your pitch the more natural it will flow and the more confident you will appear. Remember that showing confidence and passion helps sell your idea.  Practice, yes, but don't memorize and start sounding rehearsed ... go with the flow of the listener!
12. Don't give up: Some people may not understand your opportunity at first, so don't get discouraged or quit. Walt Disney pitched his idea for Mickey Mouse to more than 300 banks before he received funding.  (Now that's a Mickey Mouse pitch I would love to have heard!)

Formatting the Pitch ... No matter what your business opportunity might be, you need to have a format for the pitch. While there are certainly countless ways to format the pitch, I strongly urge you to consider the following example. It's brilliant! I only wish I could take credit, however it was presented by renowned business strategist Geoffrey Moore in his best selling book "Crossing the Chasm." You may have noticed that many TV commercials currently use a rendition of his format.

Pitch Structure ... For who are dissatisfied with , is a that provides . Unlike a , we have assembled . We will initially target the since they . solves this problem by . Also, these frequently influence by .

Example - Palm Pilot ... For traveling executives who are dissatisfied with Franklin Planners, the Palm Pilot is a personal digital assistant that provides rapid access to phone numbers and appointments. Unlike the Sharp Wizard, the Pilot can easily synchronize your data with your PC and fits in your shirt pocket. We will initially target the 83,000 pharmaceutical sales reps in the U.S., since they are mobile and must frequently reschedule appointments, where each missed appointment equates to $2k of lost revenue. The Palm gives them access to their business contact list and appointments at their fingertips. Also, these sales reps will introduce the Palm to doctors, our next target customer set.

Example - Broadway Pizza ... From artichokes to zucchini, Broadway Pizza offers the largest selection of pie toppings in the world along with boutique beverages in a music-filled, fun-packed bistro environment. In the next five years, we will launch 24 Broadway Pizza Parlors in Arizona, New Mexico, Southern California, Colorado, and Nevada reaching annual revenues of $30 million.

Sad Story: When I was teaching entrepreneurship classes at the University of Arizona, I had several students that were going to have an opportunity to meet Warren Buffet. As it turned out, one of them actually rode in the car with Mr Buffet from the office building to a restaurant for lunch. I asked her, "Did you give him your elevator pitch for your venture when you were in the car?"  "No," she said, quite understandably, "I was way too nervous!  But I did pitch him later that afternoon!"  I'd like to finish this little ditty by saying, "The rest is history ... Warren funded her venture and now it's worth several billion bucks!"  Unfortunately ... not.

[Thank you, Troy Byrd, edits by Jim]

Elements of a Vision Statement

A Vision Statement is essentially a high-level summary of what the venture team wants to accomplish, typically within the next five years.

Everyone in the organization should be able to connect their activities to making this vision a reality.

A vision statement should be ...
... clear, focused, easily understood, and easy to remember.
... consistent, constant over a period of time, but adjustable as conditions warrant.
... unique and special to the venture.
... purposeful, providing a reason for being and for others to care.

Vision Statement seed: "We will [change the way] [our customers ... who?] [do something ... what?] because [we have something new and better ... what?]."

Sometimes the terms "Vision" and "Mission" are reversed ... personally, I am set on a Vision Statement being a long-term goal, and the Mission Statement being day-to-day guideline for achieving the Vision.

Neither the Vision or the Mission statements should be fluff. They should be well-thought-out and act as solid anchors for the venture. No BS!  No "wink and smile" when we read them, especially when we read them aloud!

--Jim

Crucial Questions (CQs)

They have been called the six most powerful questions in the world.
They are core to journalism, to market research, to building personal wisdom, to ???

• Who?
• What?
• Where?
• When?
• Why?
• How?

Ask them at your own peril!