TECHNOLOGY ENTREPRENEURSHIP

(ENT600)

ENT600/Unit 3 Opportunity Analysis

An opportunity is a favorable juncture of circumstances

with a good chance for success or progress. It is the job of
the entrepreneur to locate new ideas and to put them into
action.

Opportunity is a set of favorable circumstances associated with

a business idea that award it good chances of progress and
future success

Entrepreneurial opportunities are defined as situations in

which new products, services and processes can be
introduced and sold at greater than the cost of production

Entrepreneurship can therefore be understood as the activity of

identifying and exploiting new business opportunities
ENT600/Unit 3 Opportunity Analysis

When referring to opportunities, the

term window of opportunity is used.
Window
opportunity
is
a
brief
opportunities to do something that will
be beneficial or profitable.
It is the time period available for new
creation that is taking a decisive action
at the time or risk wondering what
would happen had he acted upon.
It is also defined as that too often short
period of time during which an
opportunity must be acted on or missed
ENT600/Unit 3 Opportunity Analysis

Describes the time period in which a firm can

realistically enter a new market. It captures the
relationship between timing and opportunities.
From timing, if you get to the window well before its
open then you have to wait. If you get after then you
have to compete with numerous competitors. You can
also run the risk of entering as the window is closing.
From opportunities, you do not want to pursue an
opportunities with limited potential or open in a short
period but long enough to create and maintain customer
to profit.
Thus, the entrepreneur must hit the window of
opportunity for which the opportunity exists

ENT600/Unit 3 Opportunity Analysis

The window of opportunity is deemed to be open or

close to denote the degree of attractiveness or
exploitation possibilities at a particular time.
The term open refers to the opportunity lending itself to
be exploited at that time because it has value and potential
for wealth creation.
The term close refers to the opportunity potential
diminishes due to it being
exploited by another
entrepreneur or at that period of time has become out-ofdate or obsolete.
Often, a window of opportunity closes quickly, meaning
that someone must take a decisive action at the time or risk
wondering what would have happened had he or she acted.

ENT600/Unit 3 Opportunity Analysis

When a window of opportunity emerges, some people

say that opportunity is knocking, suggesting that
someone would be a fool to ignore the chance.
As a consumer, you may also hear the term window
of opportunity a lot, especially by people who are
trying to sell you something. Some salespeople use a
hard sell approach in which they suggest that
consumers will only be able to get a deal on a certain
day or at a certain moment, for example. In these
cases, it is usually a good idea to carefully consider
the terms of the sale and the item in question before
reaching a decision, as the salesperson may be trying
to hurry you into a choice which you will later regret.
ENT600/Unit 3 Opportunity Analysis

Data storage in the computing age is

essential to the user. Data storage in the
early years of desktop computing, the
diskette was the key mode of data storage
then to floppy disk. As time passes, the
user looks to more storage capacities in a
more stable form and much more compact
design. Hence, the introduction of the pen
drive or thumb drive fulfills the new needs
of the growing user group and now we
have compact disc.

ENT600/Unit 3 Opportunity Analysis

In Sonys cassette tape recorder division, they were

trying to redesign the small portable tape recorder
which
could
reproduce
sound
in
stereo.
Unfortunately it was not possible to reduce the size
enough and at the end of the day. The engineers
were left with a gadget that could not record. It
could only play. They used it to listen while
working. One day, Mr Ibuka chairman of the board
happened to come by and saw the gadget and was
reminded of a development project in another part
of the organization where they were working to
create light, weight, portable head set. The rest is
history and Walkman was born

ENT600/Unit 3 Opportunity Analysis

Timely
- a current need, unmet demand or problem (e.g.
vaccine for bird flu, drugs to prevent obesity)

Solvable
- a problem that can be solved in the near future
with accessible resources (e.g. a cure for cancerous
diseases, a more efficient public transport to reduce
congestion and traffic jams)

ENT600/Unit 3 Opportunity Analysis

Important

Profitable

The customer deems their problem or need important

to them (e.g. energy-saving air conditioner or petrol
saving devices that work)

the customer will pay for the solution and allow the
enterprise to profit (e.g. security products, multi function
printers)

Context

a favorable regulatory and industry situation (e.g. online business transaction , genuine investment
schemes that promised high returns)

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Opportunity analysis is the verification of the

proposed business that is viable before
entrepreneur spends their time and money
into doing the business plan.
It is to ensure that we are on the right track.
Can be shown in a diagram.

ENT600/Unit 3 Opportunity Analysis

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Opportunity
discovery

Evaluate the
opportunity

Go
Decision

Technology-based
idea blueprint

Exploitation
of opportunity

Reject
Look
elsewhere

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An organized means whereby new areas of value can be

identified.
Consists of a structured process and the methods, tools
and techniques that allow an organization to fully
explore a new (or even existing) domain to find future
potential.
The Opportunity Discovery process is a precursor to
doing market research or creating a business case. It is a
process that identifies needs and desires that are the
source of new concepts and ideas for new business
development activities.
CONT .
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This steps are the earliest phase, front-end activity

that an organization can and should undertake.
Sources of business ideas include:
Patent office - The Intellectual Property
Corporation of Malaysia is an agency under the
Ministry of Domestic Trade, Cooperative and
Consumerism. This agency can be a good source
of business ideas that can be retrieved easily from
their online patent search and patent gazette
hosted on its website

CONT .
ENT600/Unit 3 Opportunity Analysis

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 University Research & Development- Provides an

endless stream of research findings that can be
commercialized. Local universities play
an
important role in providing knowledge that will
help businesses grow into new market segments
and develop new products
Research Institutes Considered as reliable
sources of business ideas on various fields.
Examples of research institutes in Malaysia include
the
Malaysian
Agricultural
Research
&
Development Institute (MARDI), Standards and
Industrial Research Institute of Malaysia (SIRIM)

CONT .
ENT600/Unit 3: Opportunity
Analysis

ENT600/Unit 3 Opportunity Analysis

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Oriented primarily towards satisfying the needs of a specific

market
Occurs when there is a need or problem that requires a solution
Tend to occur when customers are technologically sophisticated
Occurs more frequently with older technologies
Are mostly incremental innovations where an established
market bases its perceptions of opportunity on known
technologies.
This type of opportunity can be called opportunity pull, since
the size of the opportunity draws opportunity seekers to attempt
to exploit it. the size of the opportunity attracts opportunity
seekers to attempting to exploit it
Examples: need for a pharmaceutical that can mitigate or cure
the effects of AIDS & drug to mitigate the effect of Alzheimers
disease.
ENT600/Unit 3 Opportunity Analysis
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Oriented primarily towards increased technical performance

Occurs from the discovery of a capability or resource that can
be applied to a problem or need
Require that scientists and engineers have direct experience
with users in order to apply new technology successfully
This type of opportunity can be called a capability push,
since it flows from a capability or resource availability. a new
technology or capability causes a search for new
applications
Technical information lies mostly with the innovators, while
users tend to be relatively unsophisticated
Are often the major source of radical changes in market and
organizational structures
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The entrepreneur may possess what appears to

be an excellent idea, but whether it can be turned
into a profitable opportunity has to be explored.
To evaluate opportunities, the entrepreneur has
to assess a number of factors.
It involves by looking at internal and external
factors
The difference between an idea and an
opportunity is whether the entrepreneur can turn
it into a product/service and take it to market,
whether it will attract customers attention and
bring profits to the entrepreneur
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Before pursuing an idea into a commercial

opportunity, the entrepreneur must analyze it
critically by bringing up all possible
questions.
He should try to expand his idea, brainstorm
and develop it considerably. He should not
just follow established rules but question and
examine his assumptions and test them. He
should innovate and come up with
unconventional ideas.

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He should ascertain if his product/service is likely

to provide a solution to a problem, who the
customer is, whether the product/service can bring
financial rewards, if there are any barriers to its
entry into the market, competition and quality of
competition, the cost involved in launching the
product/service in the market, marketing strategy,
time needed to break even, expected market share
and investment opportunities, among other things.
The major factors that need to be considered
before evaluating an opportunity are the time the
entrepreneur is willing to spend on a project, the
preliminary investment, the working capital, the
daily activities, its cash flow and profitability.

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Internal factors that include:

Capabilities - The ability or quality (knowledge,
experience, and skill) necessary to develop the
business venture
Resources- It include financial, physical, and
human resources consistent with the magnitude of
the business venture
Interest - refer to the will, commitment, and
passion to pursue the business venture

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External factors include:

Market Refer to the 4Ps. Involves
determining the size of the market and the
potential customers
Financial - involves determining the costs to
be incurred in developing the business
venture
Technical - involves determining the
requirements to proceed with the idea that
include machineries, raw materials, the
processes taken and infrastructure use

ENT600/Unit 3 Opportunity Analysis

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Economic forces- have a direct impact on the level of

disposable income and consumer buying patterns. e.g,
when incomes are high, people are more willing to buy
products and services that enhance their lives. Similarly, a
drop in interest rates typically leads to an increase in new
home construction and furniture sales.
Social and cultural trends- an understanding of the impact
of social and cultural trends and how they affect new
product, service, and business ideas is a fundamental piece
of the opportunity recognition puzzle.
Technological advances - provide opportunities to help
people satisfy basic needs and desires in a better or more
convenient way. Still abundance of local resources and
need to develop with help of technology.
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For example, the persistent proliferation of fast.

Food restaurants is not due primarily to peoples
love of fast food but the fact that people are busy
and less time to cook at home.
Similarly, the Sony Walkman was developed not
because consumers wanted smaller radios, but
because people wanted to listen to music while on
the move and while exercising.
In addition, the cell phone provides the mobile
Population the ability to communicate with its co
Workers, customers, friends, and families from
anywhere and everywhere

ENT600/Unit 3 Opportunity Analysis

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 Political and regulatory changes

Political change also leads to new business
and product opportunities. eg, global
political instability and the threat of
terrorism have resulted in many firms
becoming more security conscious.
New regulations create opportunities for
entrepreneurs to start firms to help
companies comply with these laws.
Enforcement by government indirectly lead
to business opportunities. eg speed traps,
black box, safety helmets and OSHA
standard

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It
involves
gathering,
analyzing
and
evaluating information with the purpose of
answering the question: "Should I go into this
business?
Conducting a feasibility study before you
write your blueprint can help you determine
whether or not your idea has true potential to
develop into a profitable business. Taking
this simple step could save you a lot of time,
money and frustration.
Is
the outcome of the evaluation of
opportunity to identify whether the business
idea is feasible or not.

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Once the opportunity is evaluated, a

decision has to be made.
The decision is whether to proceed to
the preparation of a technology-based
idea blueprint or to explore other
possibilities by looking elsewhere.
Thus, the entrepreneur must make a
difficult decision whether to act or not
on a good potential opportunity.
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The factors to be considered in making the

decision include whether:
the product will give significant value to
the customer
the entrepreneur can attract the
necessary financial, physical,
and
human resources required by the venture
opportunity
the expected return of the venture is
consistent with the risk of the venture

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A blueprint is something intended as a guide for

making something else
This document summarizes the entrepreneurs
proposal of a business venture

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Opportunity exploitation refers to building efficient,

full-scale operations for products or services created by,
or derive from, a business opportunity blueprint ideas.
Opportunity exploitation refers to activities conducted
in order to gain economic returns from the discovery of
a potential entrepreneurial opportunity
For most entrepreneurs, opportunity exploitation is a
necessary step to generate revenues and thus create a
successful business
For technological-based product it can be done through
commercialization.

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