Difference between revisions of "M3-S6 - Session notes"

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M3-S6 - Session notes
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# 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]]

Latest revision as of 19:58, 27 August 2020

  1. Idea generation
    1. Conceiving
    2. Exploring
    3. Shaping
  2. Conversion
    1. Screening
    2. Funding
    3. Development
  3. Diffusion / Exploitation
    1. Entry
    2. Chasm cross
    3. Exploitation
    4. 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
  • 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
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