Session 1: Defining the Opportunity Space

i. Where do ideas come from?

a) Demand-Pull:
o Ideas come from unsolved problem through experience and observation
o See opportunity to improve and solve
o Demand Pull requires Planning and less iterative process
o It is algorithmic
o Having marketing team can be helpful
o Example: e-Courier.co.uk
b) Knowledge-Push:
o Knowledge-Push ideas might come from technological breakthrough
o Knowledge based innovation is more fungible (can use technology for different application).
o Knowledge-Push is a heuristic process
o Requires experimentation to further develop the idea/product
o The market segment is not obvious
o It is useful to analyze problem within heterogeneous team but without marketing expert (to avoid any
bias of specific market segment)
o Example: Caro SMAHT, FLEXO ICP
c) Consequences: Demand Pull vs. Knowledge Push require different skillset
o Planning vs. Experimentation
o Conscientiousness vs. Openness to Experience
o Product Development vs. Pivoting
ii. How to shape ideas?
o

Use 6-stage creative problem solving (Keep on Moving) process

What are the steps of 6-stage creative process (ODGSEI)?

1) Problem Observation
- Use Explorer mindset
- Try to improve system or eliminate any malfunction of loss
2) Problem Definition
- Use Detective mindset
- Ask questions Who? What? Where? When? Why?
- Do surveys to find and verify problems
- Produce a problem definition statement
3) Idea Generation
- Use Artist mindset

- This when you try to be a creative possible during brainstorming session

- Generate as many solution possible
- Think freely and try to breakaway from logical and rational
4) Idea Synthesis
- Use Engineer mindset
- Synthesis complementary ideas with basic grouping/categorization
- Focus on purpose, quality and better ideas
- Practical
5) Idea Evaluation
- Use Judge mindset
- Evaluate merits and demerits of each idea
- Generate set of criteria for apple-to-apple comparison
6) Solution Implementation
- Use Producer mindset
- Do planning and do problem analysis
- Undertake stakeholder analysis to identify sources of resistance
o

Each process needs different mindset (Can be determined by Thinking Style Test)
1) Explorer
2) Detective
3) Artist
4) Engineer
5) Judge
6) Producer

Key deliverables from 6-stage problem solving process

- Structured way to enable unstructured thinking.
- Use to evaluate ideas and pinpoint the best business ideas
- Use to problem solving

Session 4: Understanding Industry Dynamics

i. How does an innovation involves in the industry? Innovation along the Industry Cycle
- Disruption Growth Consolidation - Maturity

Disruption Cycle
o Remarkable innovation through a technological innovation create a new industry / emergency
industry. (i.e. Apps industry, Online bookstore, Mobile health).
o This emerging industry creates opportunity space for entrepreneur to come = Pioneers.

o
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Pioneers focus on best technology and features

However, during disruption period, the technical applications are uncertain. Customer needs
are not clear. A lot of speculation. Business model is not clear. No dominant business model
yet. Hence high-failure rate.
Emerging Market will take 15 years to make money
First mover disadvantage might impact the players in the emerging industry since there is no
recognition from the market
Raising money isnt that difficult
Players in the emergency sole objective is to create values
Best option is for trade sale or acquisition
Example: (Online book industry, Sixdegree, Books.com)

Growth Period
o Company that are successful to generate growth and recognition in the emerging industry are
called Fast Follower Innovation
o There are usually emerged later after pioneers
o Some of them get a good trade sale. The later you enter the industry cycle the higher the
trader sale.
o Fast followers innovator doesnt look for tech-savvy. They look for customers oriented
product, focused on designs
o Fast followers try to make best product = involve design thinking
o Fast followers is taking existing product to market

Consolidation
o When market is consolidate and number of prominent players/leader exists
o Firms require to be incremental innovate to spur growth
o Competition is fierce

Maturity: Business Model Innovation

o Change the value curve (Blue Ocean Strategy)
o Increase value which fits current customer trends
o Make use of novel platforms: Crowd sourcing and crowd funding (Golazzo)
o Customer intimacy beyond competition (Xerox digital paper flow)

R&D and Engineering Department: 28.1 years

o most revenue or profit comes from the sale of patent.
o amount might be small due to cost to maintain pattern.
o University spin-off usually comes at the end of this period and try to commercialize its
product

Commercialization to Firm Take-Off

o A lot new firms emerges and most of them are small
o Profit and Revenue are not a priority
o Business case has to match existing scenario
o The exit strategy is trade sale

Firm Take-Off
o Change in firm is huge
o Change in Sales

Firm Take-Off to Sales Take-off

o IPO and Private Equity
o Grow in scalable market

Sales Take-off
o Sales increase
o Change in Sales

Emerging Industry: 14 years (6.2 years + 8 years)

ii. How to connect the technology innovation and market?

a. Strategic focus of high tech entrepreneurs is usually technology push
b. Hence, these entrepreneurs face long time to reach mainstream markets.
c. So what to do?
o Focus on Niche Market!
o Be in early adopter market which is Niche
d. More value driven than revenue driven
e. Conclusion: Best strategies for High tech entrepreneurs:
o Product driven = niche strategy

Technology driven = platform strategy

Session 4(b): Type of Innovation

i.

What are the types of innovation?

a. Radical Innovation
o New innovation to meet the needs of emerging customers and markets
o It departs from established systems and open new linkages to markets and users
o Example: Cirque du Soleil create a new market through a weird mix of carnial and circus.
Theater experience
b. Incremental Innovation
o Is to further segmented/exploit the market
o Expanding or improving existing designs and expanding existing products to meet existing
customer base to increase sale
o Incremental innovation is cost intensive
o Firms make more effort and less payment
o Important in the fierce competition
o Example: (Gmail) Start with basic feature. Grow by adding features and made service better,
faster and easier to use
c. Leveraging Innovation
o is type of innovation to increase customer base / increase usage of existing
competencies/capabilities
o Example : Apple Ipod to Apple Iphone
o Need to go to through the De-link and Re-link loops

ii.

How to delink and relink for a leveraging Innovation?

- First is to Delink:
o Separate the product from the existing technology
o Try to explore other new markets and lead experiment with various other applications
- Second is to Relink:
o Create a relink connection to a new business (Partnering with field expert or market leader)
o In this phase, the existing specification has to be bent.
o Might face customized needs and hence increase firms cost and time
o Market at this point might be narrow
o It is part of the learning process in the new segment
- Third is to Delink:
o Open to learn from the previous experience to delink

o Utilized the lesson learned to develop a new business plan and further scale-up
o Market at this point need to be wider
o To focus on Volume sales instead of a customized product
Fourth is to Relink
o Establish the link again to stimulate growth

Session 5: Protection
i.

Type of Protection
-

ii.

Copyright
Trademarks
Design Rights
Patent
Secret
Breeding rights: Exclusive rights granted to a breeder of a new plant
Chips

Copyrights
- What copyrights protect?
o Protects original literary, dramatic and artistic etc.
o Copyrights protects copying and adaption
o Does not protect concepts or ideas. Need to be expressed
-

Application?
o Software, photographs, manuals, sound recordings, artwork, labeling, promotion etc.

How to apply copyrights protection?

o It arises automatically and therefore it is free
o Just need good records of create date and authors name for proof
o Duration is 70 years after author died / 70 years from publication from unknown origin / 50
years for computer generated works and sound recordings

Material Right
o Material Right is transferable
o The original creator of the work holds the material right
o The creators holds right to reproduce, disclose, change, translate, sell or rent

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iii.

v.

Moral Right
o Moral right: Provided creators under copyright law to protection creators reputation and
integrity of their work
o Protect creators work for being used in a derogatory way or harmful ways that can damage
creators reputation and integrity
o Not transferable: Creator retains moral rights

Trademarks
- What Registered Trademarks protects?
o Protect Brand or Sign that capable to distinguish goods/services from one undertakings to
another
o Trademarks protect House mark, Product mark, Quality mark, Shape of products, Soundbased trademarks
o Brand or sign has to be distinctive. Must not conflict or create confusion with existing
brand/sign
o Geographically bound. Need to be registered in different countries/region
-

iv.

Contractual transfer rights: Assignment of copyrights can include the limitation and other
conditions

How does it work?

o Trademarks duration is indefinite but need to renew every 10 years
o The owner of trademark is the registered proprietor

Design Rights
- What is Design Right?
o Protect appearance of product (shape, colour, texture)
o Design must be novel, new and of individual character
o Give right to monopoly certain design
-

What does it not protect?

o Methods/principles of construction (This should be patented)
o Design feature that is dictated solely by products function
o Design feature that is depending on appearance of another design

Type of Design Right?

o Design Right doesnt have to be registered (but you can register)
o If it is unregistered, it will arise automatically and hence it is free
o If it registered, it will provide more protection (last longer and stronger)
Last for 25 years
Governing legislation is Registered Designs Act 1949

Design right vs. Copyright

Patent
- What is Patent?
o Patents protects a person/company that invents something new
o Patents protects effect of product or process, but not image, appearance and expression
o Patents give a limited-time monopoly right (20 years after granted Patent)
-

What to qualify for a Patent?

o Novel: Need to be kept secret until registration and must be new
o Inventive step: Not obvious to a person skilled in the art
o Capable for application: Can be used in any kind of industry

What does it not protect?

o Discoveries, scientific theories, math methods, aesthetic creations
o Rules or methods for performing mental acts/playing games/doing business

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Presentation of information/computer programs (This can be copyrighted but not patented)

Plant and animal varieties
Inventions that encourages offensive/immoral/anti-social behavior

Discovery vs. Invention

o Discovery is finding something that is hidden in nature
o Discovery it is not patentable
o Invention is a creation to solve technical problem or a solution that is not trivial or known
o Invention is patentable

Cost of Patent
o First 12 months = $5,000 + Next 18 months $5,000 + At 30 months $10,000
o Total Lifetime = $100,000

How to register for Patent?

o Register at Patent Office (International Patent PCT or Euro Patent Office)
o Invention will go thru examination
o Average for patent to be granted: 3-5 years
o Pitfall Newness

EU Patent vs US Patent
o EU Patent protects First to File
o US Patent protects First to Intent

Good and Bad things about Patent?

o Good: Enforceable, Powerful Protection
o Bad: Cost, Cost to enforce, Disclosure to public

Secrets
- What is Secret?
o Protect idea by not revealing the idea/process/information
-

How to keep Secret?

o Confidential Agreement
o Non-disclosure Agreement
o Security: Passwords, cabinets, escorts

Problem with Secret?

o Difficult to control and enforce

Famous successful example?

o Coca Cola Recipe

vii.

Other Protection
a. Intellectual Property
b. Secrecy
c. Complexity and Tacit Knowledge
d. Speed

viii.

Example of Protections for a single product

a. Nescafe Gold
o Copyright Label artwork, wording, advertising
o Trademark Nestle logo
o Registered Design Nestle Bottle / Case
o Patent Process of aroma components from fresh ground coffees

Session 5 (B): Value Chain Analysis

i.

What can you learn from Value Chain Analysis?

- Learn your competitors
- Learn the opportunities and challenges you may encounter with other players (attract and negotiate
with other players and complementary assets)
- Learn the probable consequence for your business model
- Learn your added value
- Know alternatives available
- Learn how to reach customers
- Analyse your weight and bargaining power in the chain

ii.

Typical Value Chain

(Research Product Development - Manufacturing Marketing Distribution)

Session 5 (b): Entrepreneurial Strategy

i.

How to determine the Entrepreneurial Strategy?

a. First determine your position/quadrant in Teecee Model
b. Then, based on the identified quadrant, use the proposed strategies

ii.

What is Teecees Model ?

a. High appropriability means difficult to replicate,
b. Low appropriability means easy to replicate
c. High complementary assets means rare and important product
d. Low complementary assets; means freely available and unimportant product
e. Top quadrants = Passion + After Success
f. Bottom quadrants = Ambition

iii.

Quadrant Explained
a. Top Left (Le Pain Quotidien) : Look for niche market, Passion is main driver
b. Top Right (Woowoos): Need a reliable partner. Growth is realized after partnership
c. Bottom Left (Garmin): Greenfield competition with possibilities to choose markets
d. Bottom Right (Cropdesign): Hightech companies that is capital intensive

Session 8: Market
- Market Segmentation: Users have different profile, characteristics, behavior
- Goal is to find niche market!
- Top-down (Desktop Research) market size estimation:
o Try to collect as much as possible information
o Relies on secondary information: Market research, Google, Questionnaires, Surveys
- Bottom Up (Market Research)
o Look for preferred witnesses. Talk to these people
o Witness can be Economic Buyer, Technical Buyer, User Buyer
Session 9: Pitch

3Ps : Prepare, Personalize and Perform

Know your audience : Who, Why there are here? Value? Expectation?
People + Product + Benefits + Track Record

Session 10: Sources of Capital

i.

What are the external sources of finance?

a. Bank Loans
Need Collateral
Banks valuation based upon past P&L; hence difficult for start-up!
Need to satisfy certain valuation criteria and ratios
-

b. Business Angels
Wealthy Private Inventors
Some of them are experienced entrepreneurs
Invest in industry/sector that they understand
Want to involve in the business (hands-on approach)
Once they invest, they consider themselves as part of the entrepreneur team
Use connection and networks to spot opportunities
There are 18K angels in UK, and 200K in US
Only invest if there is a match between angels and entrepreneur
Range of investment can be between $10-$250k (In the US, the sum is bigger)
Financial Target: 30 35% return
Invest in early stage/pre-seed stage (earlier than VC)
Super angels:
o A higher sum of money compares to typical business angles
o Only invest if they can become CEO/Executive team member
o They are very familiar with the industry sector
o Organized in forums

c. Accelerators
Goal is to help startup to roughly 2-years of business building in just few months
Provide support with intensive monitoring (mentoring) and programmed events (with timeframe)
Provide pre-seed finance in exchange of small equity
Some of accelerators are from Corporate/Firms. Some are independent
Focus the team success instead of individual
Stiff competition to get into accelerator program

d. Incubators
Provide a work-area for start-ups; and provide other facilities and resources
Provide networking and connections; Co-working with other startups in incubators
No specified schedule (month to month lease term for incubator place)
Each incubator usually focuses on its own sector/industry
In exchange of equity

e. Venture Capital Funds

Professional equity firm that co-invest with startups
Joint investment funds by several investors
Finance the early stage or the expansion stage of entrepreneur
Provide investment and build management team
Need to perform due diligence to screen investment projects
Constants follow-up on investments
o Depending of funds: some hands-on (usually the specialized funds), some hands-off (usually
the public funds)
o Control vs. Value-adding (connection, networking)

Include exit investment strategy in the contract

VC goal is always to EXIT
Typical Elements: Due Diligence Valuation Term sheet Exit Potential

f.
-

Strategic Partner:
Cooperation at R&D
Can take part providing capital
Examples: BP AI, Bosch VC, Cisco Investment
g. Subsidies
Rely on subsidies from government programs
7 types of measures substitution
o Government Co-investment
o Loan and Loan guarantees
o Refinancing facilities
o Provide risk sharing facilities
o Facilities on fiscal

ii.

What are the major concerns from investors?

a. Is the price correct?
b. How the money will be used?
c. How to make the investment liquid?
d. How to ensure the management will not leave?

iii.

What are the solutions for these concerns? Termsheet (on cornerstones for SHA)
a. Is the price correct?
- Phase Investment / Installment: Money is given by installment (not lump sum)
- Milestone / Ratchet Clause: Money is given by milestone achievement
- Exit Preference: Investors to receive payment in preference to the other shareholders
- Anti-dilution protection: Protect against new shares issued at a lower price
- Preferential Subscription Rights: Investor get the access to subscribe new shares
- Right of First Refusal: Investor get the FOR to decide whether to buy/not buy shares

Warrant Coverage: A right to obtain share at a certain price at certain time (call and put option)

b.
-

How the money will be used?

Board Seat: Investor to have numbers of seats in the board
Veto Rights: Whether or not chairman can have a veto right
Shareholder Consent: Need to have shareholder consent for certain reserved matters
Information Rights: Right to access certain information (operating information etc)
Corporate Governance: Compliance to sets of rules in corporation

c. How to make the investment liquid?

- Tag Along / Co-Sale: Investor to have opportunity to tag along with another shareholder to sell (on
pro-rata basis)
- Drag Along: Forces investors to sell their shares if a 3rd party want to acquire the company on the
same terms
- Buy or Sell: Minority shareholder to follow Majority Shareholder if 85% shareholders want to sell
100% to a 3rd party. Goal to keep exit possibilities open
- Registration Rights (IPO) : Right to participate in IPO
- Redemption Rights : Right to repurchase the securities from investor
d.
iv.

How to ensure the management will not leave?

Option Plan
Founder Shares
Lockup
Reversed Vesting
Management Agreement

VC targets return and multiples?

Multiple formula = Gross Return/Investment
VC Yearly Expected Return: 35%-55% or return increment of 0.35-0.55 every year
VC only needs few companies that can give a multiple of x10 or x20

Session 2: Intro to Design (Likely to be in Exam)

i.

Design Definition: What is Design?

- Human capacity to shape environment
- To serve our needs
- To give meaning to our lives
- A basic characteristic of human being
- Essential determinant of quality of human life

ii.

Other definition of design

-

Other definition: Process of seeking to optimize satisfaction and company profitability through
creative use of design elements (performance, quality, durability, appearance) in connection with
products, environments, information and corporate identities

iii.

Design vs. Innovation vs. Creativity: Difference between Creativity/Innovation/Design?

- Design: Vital link between Innovation and Creativity. Hence translates idea into solution/invention.
Try to distinguish from the competitors
- Innovation: Exploit the idea to commercialize; from idea (creativity) to product/service

iv.

Design vs. Marketing?

- Marketers focus on quick winning sales; might overlook the long-term customer engagement with the
product which good design can bring

v.

Involve designers at earliest as possible in product development stage

Rule of thumb
- Nice object is not great product
- Single good product is not good design
- Good design = Good Business

vi.

Why design matter?

- Establish relationship between firm and customers
- Emotional relationship
- Develop a brand through the experience (Total Design Experience)

vii.

What can design actually do for companies?

- Superior design makes the firm stand out from the crowd (Bang & Olufsen)
- Build customer connection
- Competitive advantage
- Give considerable customer satisfaction
- Good design communicates values to the consumer: make selection easier, informs and entertains
- Design as Marketing tool: Brand attachment and advocacy (Free marketing!)
- Makes you standout
- Creates desire
- Add value and provide compelling proposition
- Shift perspective

viii.

Total Design Experience. What is TDE?

- Total Design Experience is design without boundaries.
- Total Design Experience taking into consideration to all design values (Symbolism, Aesthetics,
Functionality)
- A consideration of an overall potential customer experience, regardless of medium, or other
boundaries
- Interact with customers in various touch points (Customer Service, Functionality)
- Interface between consumer and firms, create perception of experience
- Impression is important for decision making: to stay or to switch to product
- Successful brand = make emotion attachment with consumers
- With the aim of drawing out the elements of experience that have to coordinate or orchestrate to
create a memorable, delightful, valuable experience that people want to talk about.

ix.

Design and Value Creation. How can design create value?

-

Symbolism: Identity, style, status, fashion

Aesthetics: Pleasure, beauty, Joy, Fun
Functionality: Efficiency, Reliability, Safety, Ease of Use

Session 3: Design Thinking (Unlikely to be in the Exam)

i. What is Design Thinking?
a. Is a discipline that uses designers sensibility and methods to match peoples needs with what is
technological feasible and what a viable business strategy.
- Human-centered
- Requires empathy
- Possibility driven
- More iterative than linear
- Bias toward action
- Example (Thomas Edison creating lightbulb) : Envisioned how people want to use it and gave a great
consideration to users needs and preferences.
ii. Definition of Design Thinking
- Process and mindset of combining creative and analytical thinking and applying them toward solving
a specific problem
iii. What is the process of Design Thinking? 5-steps of Design Thinking (EDIPT)
1) Empathy: Find the deep and meaningful needs
2) Define: Reframe needs and insight
3) Ideate: Generate volume
4) Prototype: Visualize solutions and create models
5) Test: Communicate with users and gain feedback and refining solutions
iv. Others? (Anything else?)
Session 6: Design Tools for Innovation (RCA)
- Design is tools for innovation
o Develop technological innovation that offers new functionality
o Identify needs and entrepreneurial opportunities
o Connect Technology to Business to People .
- Design Tools process
o Brainstorming (Permission Giving, Work Visually, Structured, Timing, Evaluate)
- Market Research vs Design Research
o Design Research : People Centered + Process of observation at way people do things
o Inclusive Design : Margins to mainstream

Session 7: Designing Services

- What are services? : Activities done for and with others for their benefit
- Characteristic of Service : Immaterial, Variable, Co-produced, Temporal
- Service Design Process
o One Person Emotional Journey
o Stakeholders Map
o Customer Journey Exsercise
- Service Topology: