Chap14

Technology Ventures: From Idea to Opportunity

Summary

Real intelligence is a creative use of knowledge, not merely an accumulation of facts.

D. Kenneth Winebrenner

How do new firms build a set of operational processes that serve to create, make, and provide the product to the customer?

A new venture needs to design a set of operational processes that will enable it to build, store, and ship the products provided to the customer. New businesses build a supply chain of partners that add value at each stage of the assembly or manufacture of the product.

Chapter 14: Summary

Technology Ventures: From Idea to OpportunityChapter 14: Value Chain

A value chain is a series of activities for transforming inputs into outputs that customers value.

Technology Ventures: From Idea to OpportunityChapter 14: Figure 14.1

ManufacturingLogisticsMarketing and Sales Customer

Sales & ServiceDistribution

Applied Research

Product Design

Process Design

Value Chain

Information Flow

Technology Ventures: From Idea to OpportunityChapter 14: Concepts

Operations: a series of actions.

Operations Management is the supervising, monitoring, and coordinating of the activities of a firm carried out along the value chain.

Technology Ventures: From Idea to OpportunityChapter 14: Process

Process: any activity or set of activities that takes one or more inputs, transforms and adds value to them, and provides one or more outputs.


Common Business Process

Technology Ventures: From Idea to OpportunityChapter 14: Quality and Reliability

Quality: a measure of a product that usually includes performance and reliability.

Reliability: a measure of how long a product performs before it fails.

Technology Ventures: From Idea to OpportunityChapter 14: Speed and Flexibility

Speed is a measure of lead time, on-time delivery, and product development speed.

Flexibility is a measure of a firm’s ability to react to a customer’s needs quickly.

Technology Ventures: From Idea to Opportunity

The Value Web for A Firm

Chapter 14: Figure 14.6


The Value Web of Cisco Systems

Technology Ventures: From Idea to OpportunityChapter 14: Balanced Scorecard

Balanced Scorecard is a set of measurements unique to a company that includes both financial and operational metrics.


The Balanced Scorecard


A Gantt Chart for 5 tasks. The actual progress is indicated by the shaded bars.


1. Start New Firm 2. Legal, Team, Plan

6. Initial Sales 5. Launch Product

3. Initial Product Prototype

4. Final Product & Marketing PlanAcquire Sales ForceBuild Sales & Service

Formation Product R & D

Test & Market Research

3 Months 3 Months

2 Months 2 Months

3 Months

Example of a Roadmap for a New Technology Firm

Technology Ventures: From Idea to OpportunityChapter 14: Principle

The design and management of an efficient, real-time set of production, logistical, and business processes can become a sustainable competitive advantage for a new enterprise.

Technology Ventures: From Idea to OpportunityChapter 14: Exercise

A new, growing electronic game company wants to outsource its manufacturing, sales and distribution functions. Develop a value web for this company.

Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 14: Venture Challenge

VENTURE CHALLENGE

1)Describe the key business processes used by your venture.

2)Draw a draft value web for your venture as in figures 14.5 – 14.7.

Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 14: DVD Video

DVD Video

“Small Innovations for Reducing Company Costs: PayPal and SpaceX”

Elton Musk (SpaceX)