Entrepreneurship

MNO2009 - Session 1
Micro Opportunity
Identification
Prof. Dr. Sarah Cheah
About
ME
Prof. Dr. Sarah Cheah
L1-L6
 About
teaching assistant
L1-L6
 Manisha Rai
manisha.rai@u.nus.edu
About
YOU
 About
THIS CLASS
√ X
 Micro Macro
Perspective Perspective
(Dr Sarah Cheah) (Mr Douglas Abrams)
(L1- L6) (L7-L13)

Refer to IVLE/Module Overview for details

 L1 to L6 – Overview of Topics

L1: entrepreneur L2: entrepreneur makes plans L3: entrepreneur

identifies & evaluates and sets goals while finds co-founder(s)
opportunity developing target customers & builds team
1 2 3

L4: entrepreneur finds L5: entrepreneur persuades, L6: entrepreneur can

investors & mentors negotiates and networks to choose to build social
from ecosystem (e.g. engage prospective enterprise to help
incubator/ accelerator/ investors, employees, community or join a
clients & partners 5 6
coworking space) 4 corporation
 L1 to L6 – Overview of Topics

L1: entrepreneur L2: entrepreneur makes plans L3: entrepreneur

identifies & evaluates and sets goals while finds co-founder(s)
opportunity developing target customers & builds team
1 2 3

L4: entrepreneur finds L5: entrepreneur persuades, L6: entrepreneur can

investors & mentors negotiates and networks to choose to build social
from ecosystem (e.g. engage prospective enterprise to help
incubator/ accelerator/ investors, employees, community or join a
clients & partners 5 6
coworking space) 4 corporation
 L1 to L6 – Overview of Frameworks
1. Ardichvili’s model of 3. Babson’s framework of 5. Building a founding
opportunity startup ecosystem (6 team –Wasserman’s 3R
identification (4 domains) model (relationships,
factors) 4. Action planning process: roles & rewards)
2. Spinelli & Adam’s Lean startup approach
model of opportunity (customer development)
evaluation (5 criteria)
1 2 3

6. Self-motivation and 8. Watkin’s 4 principles of 11. ACSEP’s models of

personal factors: persuasion social entrepreneurship
Wasserman’s 9. Kolb’s negotiation 12. Wolcott and Lippitz’s
founders’ dilemma- approach models of corporate
rich vs king 10. Cross and Thomas’ model entrepreneurship
7. Saravasthy’s of building networks
causation vs
effectuation model 4 5 6
 T1 to T5 – Overview of Topics
1. Ardichvili’s model of 3. Babson’s framework of 5. Building a founding
opportunity startup ecosystem (6 team –Wasserman’s 3R
identification (4 domains) model (relationships,
factors) 4. Action planning process: roles & rewards)
2. Spinelli & Adam’s Lean startup approach
model of opportunity (customer development)
evaluation (5 criteria)
Case: QLC.io 1 Case: Tware 2 Case: Digify 3
Industry: ICT/Edtech Industry: Healthcare/Medtech Industry: ICT/Securitytech
6. Self-motivation and 8. Watkin’s 4 principles of 11. ACSEP’s models of
personal factors: persuasion social entrepreneurship
Wasserman’s 9. Kolb’s negotiation 12. Wolcott and Lippitz’s
founders’ dilemma approach models of corporate
7. Saravasthy’s 10. Cross and Thomas’ model entrepreneurship
causation vs of building networks
effectuation model
Case: Vault Dragon 4 Case: InvitroCue 5 Case: NA 6
Industry: ICT/EHRtech Industry: Healthcare/Biotech Industry: NA
 Tutorial

Refer to IVLE/Tutorial folder for details

 Individual
Assessment

15%
Class Participation
42.5%
Individual Assignment

Refer to IVLE/Module Overview for details

 Group
Assessment

42.5%
Business Report
& Presentation

Refer to IVLE/Module Overview for details

Session 1
Overview of Entrepreneurship &
Opportunity Identification
bother with
Entrepreneurship
Market
Demand & Opportunities

Ref: P&G (2013), GE (2014, 2015)

Dream
when you were kid
ENTREPRENEURSHIP
Is living a few years of your life like
most people won’t so that you can
spend the rest of the rest of your life
like most people can’t
 Are these people entrepreneurs?

Housewife Scientist Economist

Entrepreneurship Definition

“… Activity involving the discovery,

evaluation, and exploitation of
opportunities to create something new
by mobilizing resources … ”

Adapted from Shane, 2003

Opportunity Definitions
“An opportunity […] is anchored in a
product or service, which creates or
adds value for its buyer or end user”
(Hisrich, Peters, & Shepherd, 2005)
“The chance to meet a market need”
(Ardichvili et al. 2003)
“Perceiving a possibility for new profit”
(Christensen et al., 1989)
 How do
Opportunities
come about
Pirate3D, 2012
Carousell, 2012
 Problems
are opportunities
in disguise
Look around!
What business
opportunities can
you identify?
 What factors
contribute to opportunity identification?
 What factors
contribute to opportunity identification?

Knowledge

Ardichvili et al. (2003)

 Knowledge
Mobile market place
How to develop m-app?
How to categorize and display
items for sale?
How to attract sellers to list
and buyers to browse?
How to provide escrow
payment service, fulfill orders
& logistics support?
Knowledge
3D printing
How it works?
What is the difference Filament
vs SLA vs powder printing?
What is the future in molten
metal?
How to make modeling
software available?
How to make it safe and easy
to use?
Knowledge
People’s prior knowledge
determines whether or not
they will identify an
opportunity!
 Getting started on Archipelago
online collaborative learning tool
• Step 1: Open email sent to you from arch-
noreply@archipelago.1.comp.nus.edu.sg this morning
• Step 2: Click on link “To Archipelago” in email
– Note this link is unique to you. Do NOT share your link.
• Step 3: In Archipelago environment, on left panel, click
on Activity 1 – you will see questions in main window
• Step 4: Key in your responses in Activity 1 main
window
• Step 5: when done, click “Submit Answer” on bottom
right of main window
Getting started on Archipelago
online participation in lectures
Step 1: open email

Step 2: click on
this link
 Getting started on Archipelago
online participation in lectures
Step 4: key in
responses in Activity 1
main window here

Step 5: click “Submit

Step 3: click on Answer” here
Activity 1
 Individual Activity 1
My Knowledge
In which domains do I have knowledge? What do I know?

Domains My Knowledge Useful for?

Studies
Jobs
Trainings
Part-time jobs
Interest
Hobbies
Courses in School
Others
 What factors
contribute to opportunity identification?

Knowledge

Ardichvili et al. (2003)

 What factors
contribute to opportunity identification?

Knowledge Network

Ardichvili et al. (2003)

 Network
Mobile market place 3D printing
How did the founders meet How did they change their
one another? biz model from service to
How did they get market product?
validation? How did they get suppliers
How did they raise their seed for printer & print materials?
investment? How did they get funding?
 How Networks influence
opportunity identification

Information Encouragement
about business, Support
market,
technology, etc.
 How Networks influence
opportunity identification

Source: Davidson & Honig (2003) Source: Hills et al. (2004)

 Archipelago
online collaborative learning tool
• Step 1: Open email sent to you from arch-
noreply@archipelago.1.comp.nus.edu.sg this morning
• Step 2: Click on link “To Archipelago” in email
– Note this link is unique to you. Do NOT share your link.
• Step 3: In Archipelago environment, on left panel, click
on Activity 2 – you will see questions in main window
• Step 4: Key in your responses in Activity 2 main
window
• Step 5: when done, click “Submit Answer” on bottom
right of main window
 Individual Activity 2
My Social Networks
Whom do I know?

My Social Networks Useful for?

Parents
Siblings
Relative
Friends
Colleagues
Neighbours
Students
Professors
etc.
 What factors
contribute to opportunity identification?

Knowledge Network

Ardichvili et al. (2003)

 What factors
contribute to opportunity identification?

Knowledge Network Creativity

Ardichvili et al. (2003)

 Creativity
Mobile market place
Wouldn’t it be nice if people
can get rid of clutter at home
by selling them away?
How might we make it easy
for people to buy and sell?
In what ways might we
capture the value of their
transactions?
3D printing
Wouldn’t it be nice if the 3D
printer is accessible to home
users who are not techies?
How might we make it low-
cost and safe?
In what ways might we allow
users to model and print with
mobile phones
 How Creativity influences
opportunity identification
Creativity Technique 1: WIBNI, HMW, IWWM

WIBNI Wouldn’t It Be Nice If

HMW How Might We…

IWWM In What Ways Might We…

 How Creativity influences
opportunity identification
Creativity Technique 2: Conceptual Combination
Can These Concepts be Combined?
Can These Concepts be Combined?
 How Creativity influences
opportunity identification
Creativity Technique 3: Analogical Reasoning
Initial Engineering Problem

Punched holes in Punch hole in plastic Create Holes in Thin

plastic sheet using sheet using new Material (reword to
existing technology technology (TBI) gen function)

Feygenson, 2013
Applying knowledge from one domain in
another

Space Ship
Micrometeorite Testing
Gun

Feygenson, 2013
 How Creativity influences
opportunity identification

Creativity Technique 1: Creativity Technique 2: Creativity Technique 3:

WIBNI, HMW, IWWM Conceptual Combination Analogical Reasoning
 Creativity
Think outside the box
 Sources of Opportunities

“Opportunities emerge from a complex pattern of

changing conditions - changes in technology,
economic, political, social, and demographic
conditions. They come into existence at a given
point in time because of a juxtaposition or
confluence of conditions which did not exist
previously but is now present.”

(Baron, 2006)
 What factors
contribute to opportunity identification?

Knowledge Network Creativity

Ardichvili et al. (2003)

 What factors
contribute to opportunity identification?

Knowledge Network Creativity

Change in Environment Ardichvili et al. (2003)

 Archipelago
online collaborative learning tool
• Step 1: Open email sent to you from arch-
noreply@archipelago.1.comp.nus.edu.sg this morning
• Step 2: Click on link “To Archipelago” in email
– Note this link is unique to you. Do NOT share your link.
• Step 3: In Archipelago environment, on left panel, click
on Activity 3 – you will see questions in main window
• Step 4: Key in your responses in Activity 3 main
window
• Step 5: when done, click “Submit Answer” on bottom
right of main window.
 Individual Activity 3
Sources of Opportunities
Look for Changes in the Environment
Changes Opportunities for?

Technological

Demographic

Social values

Legislation and policy

Economic
Changes in Environment
Technological
Mobile devices Social networking

3D printing E-commerce
Changes in Environment
Economic
Monetize excess capacity Servitization of products

Investors’ interest Financial independence

Changes in Environment
Social
Intensive urbanization Environmental awareness

Growing population Maker’s movement

 Challenges in Environment
Emergence of Collaborative Economy
Access over ownership
Traditional
New economy
collaborative
traditional business
economy
peer sharing startups Provide
products &
services
Provide
products &
consumers
services

consume Existing online services (e-

products & consume commerce, social media)
services products &
services

68
 Challenges in Environment
Emergence of Collaborative Economy

The Economist, 2013

 Individual Reflection
Opportunities for you
Connect three success factors and use your
creativity to generate biz ideas

My Knowledge My Social Changes in Idea?

Networks Environment
 Opportunity Evaluation
Criteria

Industry &
Market

Personal
Criteria/
Economics
Strategic
Differentiation

Competitive
Advantage/ Harvest Issues
Management
Spinelli and Adams, 2015
Cheah et al., 2017
 Readings
Opportunity Identification
• Cheah et al. (2017) Chapter 1, Identifying Opportunities, pp. 7-12, Facing Down Failure,
2 edition (Pearson online coursepack)
• Ardichvili et al. (2003) A theory of entrepreneurial opportunity identification and
development. Journal of Business venturing, 18(1), 105-123.
• Spinelli and Adams (2015) Chapter 5, Opportunity Recognition, pp. 113-129 in New
Venture Creation, 10 edition, McGraw-Hill (IVLE e-Reserves)
• P&G (2013) joins forces in search for start-ups (Personal care products)
http://www.ft.com/cms/s/0/c126cd1c-6a0d-11e2-a80c-
00144feab49a.html#axzz3OgmNgqPk
• GE Ventures (2014) backs drone start-up Airware (Industrial clients)
https://www.pehub.com/2014/11/ge-ventures-backs-drone-start-up-airware/
• GE Ventures (2015) backs Apervita for Health-Care Analytics (Healthcare analytics)
http://blogs.wsj.com/venturecapital/2015/01/07/the-daily-startup-ge-ventures-backs-
apervita-for-health-care-analytics
• The Economist (2013) The rise of the sharing economy
http://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-
sharing-economy
 References
Opportunity Identification
Optional reading
• Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent
entrepreneurs. Journal of business venturing, 18(3), 301-331.
• Hills, G. E., & Singh, R. P. (2004). Opportunity recognition. Handbook of entrepreneurial
dynamics: The process of business creation, 259-272.
• Feygenson, O. (2013). TRIZ Workshop, ISPIM 2013 Conference, Helsinki, Finland
• Baron, R. A. (2006). Opportunity recognition as pattern recognition: How entrepreneurs
“connect the dots” to identify new business opportunities. The Academy of Management
Perspectives, 20(1), 104-119.
• Shane, S. A. (2003). A general theory of entrepreneurship: The individual-opportunity
nexus. Edward Elgar Publishing.