How To Think About Your Next Business – The Systematic Entrepreneur

How To Think About Your Next Business – The Systematic Entrepreneur

Continuing on the framework for innovative thinking…

Posted by
Deniz Erkan
at December 19, 2007 3:37 p.m.

I’m going to merge concepts from Peter Drucker with my own here targeting a more distilled and practical one to adopt.

We have 7 different ways to look for innovative opportunities and 5
strategies to go after. Let’s start with where to look for innovative
opportunities.

First four of the seven innovative opportunities are within an industry or business:
The Unexpected – An unexpected success, an unexpected failure or an unexpected outside event can be a symptom of a unique opportunity.

Why is eBay failing against Taobao and Google failing againt Baidu
in China? The failures are not by a small margin, we’re talking about a
60% market share versus 20% for search engines, it’s huge. What is the
root cause of this? Is it the Chinese nationalism, different value
proposition for search experience, usability, no listing fee approach
or what? The answer to this question will lead to many innovative and
entrepreneurial opportunities to do business in China, as well as
importing concepts of what works there into America.

Incongruity
– A discrepancy between reality and what everyone assumes it to be, or
between what is and what ought to be, can create an innovative
opportunity.

The lately merging mobile phone and internet
technologies are making the old concept of a phone obsolete. Looking at
what Apple, Microsoft’s Smart Phone model and some of the hand-held
devices do, and comparing them with internet service providers and
wireless/wired infrastructure moguls’ services will lead to a lot of
innovative ideas. What could that be in your industry?

Innovation Based on Need
– When a weak link is evident in a particular process, but people work
around it instead of doing something about it, an opportunity is
present to the person or company willing to supply the "missing link".

Why are the Japanese more advanced in robotics? It’s not because it’s
cool and they are more talented in designing robots, in fact, most of
their original designs were coming from The US. The main reason for
that is because Japan had the "baby bust" about 5 years earlier than
America and 10 years earlier than Germany. It took them about the same
time as Americans to realize the labor shortage problem.

Change in industry structure
– The opportunity for an innovative product, service or business
approach occurs when the underlying foundation of the industry or
market shifts.

What is happening as the online advertising
and internet technologies converge and collapse? YouTube, MySpace,
Microsoft’s offer to Facebook, Double Click deal and other countless
headlines in the last 2 years on the news? There are innovative
opportunities there.

and the next three are outside the industry:

Continue at Seattle Post -> BackTrack

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