M3-S6 - Session notes - Revision history

Dirkjan at 19:58, 27 August 2020

2020-08-27T19:58:19Z

Dirkjan: Replaced content with "M3-S6 - Session notes Category:mbi"

2020-08-27T19:19:36Z

Replaced content with "M3-S6 - Session notes Category:mbi"

Dirkjan: Created page with "# Idea generation ## Conceiving ## Exploring ## Shaping # Conversion ## Screening ## Funding ## Development # Diffusion / Exploitation ## Entry ## Chasm cross ## Exploitation..."

2020-08-25T08:02:13Z

Created page with "# Idea generation ## Conceiving ## Exploring ## Shaping # Conversion ## Screening ## Funding ## Development # Diffusion / Exploitation ## Entry ## Chasm cross ## Exploitation..."

New page

# Idea generation
## Conceiving
## Exploring
## Shaping
# Conversion
## Screening
## Funding
## Development
# Diffusion / Exploitation
## Entry
## Chasm cross
## Exploitation
## Leverage

Value creation only happens in diffusion / exploitation. Eric Wood suggested to turn the whole phasing around: first enter to the market and ''get some customers with someone else product''. Example was a scientist with unique bio product, started with competitors product to get customers. Moving on from there.

'''Some propositions for consideration:'''
'''P1''': Value creation potential is only as good as the weakest link in your innovation / entrepreneurship value
'''P2''': The most commonly neglected component is the last which is also the most important for value creation
'''P3''': Limiting the number of projects at the conversion stage is even more important for an entrepreneurial venture
'''P4''': The failure to recognize flawed assumptions is the single greatest constraint on value creation.
'''P5''': A primary task of managers and entrepreneurs is to create an environment in which flawed assumptions are likely to be recognized quickly and acted on appropriately

'''Exploit before you explore'''
"As a strategy the gold medalist consistently chose to pursue exploitation over exploration initiatives"
"... Henry Wellcome... wanted to make name for himself as a medical pioneer"
"... the first of many occasions that the firm exploited someone else's invention"
"... a me-too product like Zantac could never win more than 50% of the market... Galxo decided to put a price premium to stress its superiority over Tagemet"
"... once again buying, rather than buildling its pipeline.

"Risk to value creation in the portfolio"
Three mechanisms:
* Duplication
** Do not pursue projects that are too similiar, possibly competing for resources
* Omision
** Gap's in execution (marketing, development): you need every function
* Alignment
** Product does not solve a 'customer pain'

'''Realistic goals for a disciplined portfolio approach'''
* Greater formalization of strategic purpose, priorities, and project selection criteria, desirable project characteristics
* Improved communication of these
* More effectively manage expectations of project stakeholders
* Highlight dangers of project overload & non-availability of critical resources
* Highlight imbalances, gaps
* Presever resources for 'special case' projects
* Highlight need to reexamine strategic purpose
* Improve team cooperation, commitment
* But selection process:
** Wil not be scientific or objective
** Must leave scope for management judgement

'''Portfolio techniques'''
* Value maximization
** [[NPV|NPV]]
** [[IRR|IRR]]
** [[ECV|ECV]]
** Scoring
** Monte Carlo
** Real Options
* Balance alignments
** Strategic methods
** Yime & Resources
** Risk & Reward (bubble)
** Scoring
* '''The danger is that these techniques are killing the conversion'''

'''Method perspective'''
* Strategic methods
* Financial methods
* Scoring model
* Bubble diagrams

'''40% of businesses only use financial methods''' (Cooper et al 2001)

'''Consideration in the selection the method'''
* Simplicity
* Ease of use
* Suspectability to manipulation
* Usefulness for drawing in different perspective

'''Weighted Scoring Method'''
Capable of incorporating
* Market attractiveness
* Timing
* Risks
* Company Competence

Summary:
* Preserve resource for exploitation
* Displined portfolio metohds need to focus on improving conversations
* Do not only use financial methods
[[Category:mbi]]

← Older revision		Revision as of 19:19, 27 August 2020
Line 1:		Line 1:
−	~~# Idea generation~~	+	M3-S6 - Session notes
−	~~## Conceiving~~
−	~~## Exploring~~
−	~~## Shaping~~
−	~~# Conversion~~
−	~~## Screening~~
−	~~## Funding~~
−	~~## Development~~
−	~~# Diffusion / Exploitation~~
−	~~## Entry~~
−	~~## Chasm cross~~
−	~~## Exploitation~~
−	~~## Leverage~~
−
−	Value creation only happens in diffusion / exploitation. Eric Wood suggested to turn the whole phasing around: first enter to the market and ''get some customers with someone else product''. Example was a scientist with unique bio product, started with competitors product to get customers. Moving on from there.
−
−	~~'''Some propositions for consideration:'''~~
−	~~'''P1''': Value creation potential is only as good as the weakest link in your innovation / entrepreneurship value~~
−	~~'''P2''': The most commonly neglected component is the last which is also the most important for value creation~~
−	~~'''P3''': Limiting the number of projects at the conversion stage is even more important for an entrepreneurial venture~~
−	~~'''P4''': The failure to recognize flawed assumptions is the single greatest constraint on value creation.~~
−	~~'''P5''': A primary task of managers and entrepreneurs is to create an environment in which flawed assumptions are likely to be recognized quickly and acted on appropriately~~
−
−	~~'''Exploit before you explore'''~~
−	~~"As a strategy the gold medalist consistently chose to pursue exploitation over exploration initiatives"~~
−	~~"... Henry Wellcome... wanted to make name for himself as a medical pioneer"~~
−	~~"... the first of many occasions that the firm exploited someone else's invention"~~
−	~~"... a me~~-~~too product like Zantac could never win more than 50% of the market... Galxo decided to put a price premium to stress its superiority over Tagemet"~~
−	~~"... once again buying, rather than buildling its pipeline.~~
−
−	~~"Risk to value creation in the portfolio"~~
−	~~Three mechanisms:~~
−	* Duplication
−	** Do not pursue projects that are too similiar, possibly competing for resources
−	* Omision
−	** Gap's in execution (marketing, development): you need every function
−	* Alignment
−	** Product does not solve a 'customer pain'
−
−	~~'''Realistic goals for a disciplined portfolio approach'''~~
−	* Greater formalization of strategic purpose, priorities, and project selection criteria, desirable project characteristics
−	* Improved communication of these
−	* More effectively manage expectations of project stakeholders
−	* Highlight dangers of project overload & non-~~availability of critical resources~~
−	* Highlight imbalances, gaps
−	* Presever resources for 'special case' projects
−	* Highlight need to reexamine strategic purpose
−	* Improve team cooperation, commitment
−	* But selection process:
−	** Wil not be scientific or objective
−	** Must leave scope for management judgement
−
−	~~'''Portfolio techniques'''~~
−	* Value maximization
−	** [[NPV\|NPV]]
−	** [[IRR\|IRR]]
−	** [[ECV\|ECV]]
−	** Scoring
−	** Monte Carlo
−	** Real Options
−	* Balance alignments
−	** Strategic methods
−	** Yime & Resources
−	** Risk & Reward (bubble)
−	** Scoring
−	* '''The danger is that these techniques are killing the conversion'''
−
−	~~'''Method perspective'''~~
−	* Strategic methods
−	* Financial methods
−	* Scoring model
−	* Bubble diagrams
−
−	~~'''40% of businesses only use financial methods''' (Cooper et al 2001)~~
−
−	~~'''Consideration in the selection the method'''~~
−	* Simplicity
−	* Ease of use
−	* Suspectability to manipulation
−	* Usefulness for drawing in different perspective
−
−	~~'''Weighted Scoring Method'''~~
−	~~Capable of incorporating~~
−	* Market attractiveness
−	* Timing
−	* Risks
−	* Company Competence
−
−	~~Summary:~~
−	* Preserve resource for exploitation
−	* Displined portfolio metohds need to focus on improving conversations
−	* Do not only use financial methods
	[[Category:mbi]]		[[Category:mbi]]

← Older revision		Revision as of 19:58, 27 August 2020
Line 1:		Line 1:
−	M3-S6 - ~~Session notes~~	+	# Idea generation
		+	## Conceiving
		+	## Exploring
		+	## Shaping
		+	# Conversion
		+	## Screening
		+	## Funding
		+	## Development
		+	# Diffusion / Exploitation
		+	## Entry
		+	## Chasm cross
		+	## Exploitation
		+	## Leverage
		+
		+	Value creation only happens in diffusion / exploitation. Eric Wood suggested to turn the whole phasing around: first enter to the market and ''get some customers with someone else product''. Example was a scientist with unique bio product, started with competitors product to get customers. Moving on from there.
		+
		+	'''Some propositions for consideration:'''
		+	'''P1''': Value creation potential is only as good as the weakest link in your innovation / entrepreneurship value
		+	'''P2''': The most commonly neglected component is the last which is also the most important for value creation
		+	'''P3''': Limiting the number of projects at the conversion stage is even more important for an entrepreneurial venture
		+	'''P4''': The failure to recognize flawed assumptions is the single greatest constraint on value creation.
		+	'''P5''': A primary task of managers and entrepreneurs is to create an environment in which flawed assumptions are likely to be recognized quickly and acted on appropriately
		+
		+	'''Exploit before you explore'''
		+	"As a strategy the gold medalist consistently chose to pursue exploitation over exploration initiatives"
		+	"... Henry Wellcome... wanted to make name for himself as a medical pioneer"
		+	"... the first of many occasions that the firm exploited someone else's invention"
		+	"... a me-too product like Zantac could never win more than 50% of the market... Galxo decided to put a price premium to stress its superiority over Tagemet"
		+	"... once again buying, rather than buildling its pipeline.
		+
		+	"Risk to value creation in the portfolio"
		+	Three mechanisms:
		+	* Duplication
		+	** Do not pursue projects that are too similiar, possibly competing for resources
		+	* Omision
		+	** Gap's in execution (marketing, development): you need every function
		+	* Alignment
		+	** Product does not solve a 'customer pain'
		+
		+	'''Realistic goals for a disciplined portfolio approach'''
		+	* Greater formalization of strategic purpose, priorities, and project selection criteria, desirable project characteristics
		+	* Improved communication of these
		+	* More effectively manage expectations of project stakeholders
		+	* Highlight dangers of project overload & non-availability of critical resources
		+	* Highlight imbalances, gaps
		+	* Presever resources for 'special case' projects
		+	* Highlight need to reexamine strategic purpose
		+	* Improve team cooperation, commitment
		+	* But selection process:
		+	** Wil not be scientific or objective
		+	** Must leave scope for management judgement
		+
		+	'''Portfolio techniques'''
		+	* Value maximization
		+	** [[NPV\|NPV]]
		+	** [[IRR\|IRR]]
		+	** [[ECV\|ECV]]
		+	** Scoring
		+	** Monte Carlo
		+	** Real Options
		+	* Balance alignments
		+	** Strategic methods
		+	** Yime & Resources
		+	** Risk & Reward (bubble)
		+	** Scoring
		+	* '''The danger is that these techniques are killing the conversion'''
		+
		+	'''Method perspective'''
		+	* Strategic methods
		+	* Financial methods
		+	* Scoring model
		+	* Bubble diagrams
		+
		+	'''40% of businesses only use financial methods''' (Cooper et al 2001)
		+
		+	'''Consideration in the selection the method'''
		+	* Simplicity
		+	* Ease of use
		+	* Suspectability to manipulation
		+	* Usefulness for drawing in different perspective
		+
		+	'''Weighted Scoring Method'''
		+	Capable of incorporating
		+	* Market attractiveness
		+	* Timing
		+	* Risks
		+	* Company Competence
		+
		+	Summary:
		+	* Preserve resource for exploitation
		+	* Displined portfolio metohds need to focus on improving conversations
		+	* Do not only use financial methods
	[[Category:mbi]]		[[Category:mbi]]