9 Building Blocks/Business Models

1.  Customer Segments as an organization serves one or several customer segments.
2. Value Propositions it seeks to solve customer problems and satisfy customer needs with value propositions.
3. Channels value propositions are delivered to customers through communication, distribution and sales channels.
4. Customer Relationships are established and maintained with each customer segment.
5.  Revenue Streams is the result from value propositions successfully offered to customers.
6. Key Resources are the assets required to offer and deliver the previously described elements.
7. Key Activities by performing a key number of key activities.
8. Key Partnership some activities are out secured and same resources are acquired outside the enterprise.
9. Cost Structure the business model elements result in the cost structure.

Customer Segments

The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve.

Value Propositions

The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment.

Channels

The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.

Customer Relationships

The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments.

Revenue Streams

The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).

Key Resources

The Key Resources Building Block describes the most important assets required to make a business model work.

Key Activities

The Key Activities Building Block describes the most important things a company must do to make its business model work.

Key Partnerships

The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work.

Cost Structure

The Cost Structure describes all costs incurred to operate a business model.

• Pattern

“Pattern in architecture is the idea of capturing architectural design ideas as archetypal and reusable descriptions.”

• Design

“Business people don’t just need to understand designers better; they need to become designers.” – Roger Martin, Dean, Rotman School of Management

• Strategy

“There’s not a single business model. There are really a lot of opportunities and a lot of options and we just have to discover all of them.” – Tim O’Reilly, CEO, O’Reilly

• Process – Outlook

ECOSYSTEM OF TECHNOPRENEURSHIP

ECOSYSTEM

Objectives:

• At the end of session:

1. Enumerate the different actors/players/personalities for a technology venture to prosper and define the roles of these different individuals.

2. Identify the different prerequisites of a technology venture.

Successful Technopreneurship:

The Human Resources Components:

1. Research = thinker, idea generator, and innovator.

2. Developer = implementator and technical people.

3. Marketing People

Environment Components:

1. Science parts, inculvation centers.

2. Academic institutions, research, and development centers.

3. Internet access, communication, and other support services.

4. Geographic accessibility

Laws & Policies Components:

1. Intellectual Property Rights

2. Technology Licensing Office

3. Legal Services

Financial Resources Components:

1. Investor

2. Business Sector

3. Funding Agencies

4. Financial Services

TECHNOPRENEURS AS AGENT OF ECONOMIC GROWTH

Natural Capital -> Economy -> Beneficial Outputs (Maximized)

Financial Capital -> Entrepreneurs as agents of progress -> Undesired waste outputs (minimize)

Intellectual Capital -> Increase safety

THREE ELEMENTS OF THE INTELLECTUAL CAPITAL
Human Capital - still, capabilities and knowledge of the firm’s people

Organizational Capital - The patents, technologies, processes, databases, and networks

Social Capital - The quality of relationships with customers suppliers and partners.

CREATING “NEW” AND DESTROYING THE “OLD”

- New Knowledge
- New Products
- New Processes
- New Services
- New Markets
- New business models
- New raw materials

TYPES of ENTREPRENEURS

• Incremental = routine business, modess novelty.

Ex. new coffee shop

      new BDO

• Imitatitve = imitation of a venture, saying business model and template.

Ex. new regional branch

       franchise operations

• Rent-seeking = business that utilizes standards, regulations, and laws to ship-in value of an enterprise.

Ex. licensing of a patented ideas, products, or prods of trade

• Innovative = business-based on innovation.

Ex. new cure for infectious diseases

      new DVD format

      new memory chip

      Information and Communications Technology (ICT) enhanced home appliance

Technopreneurship for IT Viewpoint:

• high-tech ventures in ICT, electronics, Internet, and life sciences and bio-tech.

Ex. Microsoft

       Nano-Tech

• service firms where technology is critical to their mission.

• delivery or design for high-tech products like computer hardware or devices.
• use of technology in the delivery or conduct of normal business activities.
• a combination of both.

What is Technopreneurship?

What is technological entrepreneurship?

• It is simply entrepreneurship in a technology-intensive context.
• It is a process of merging technology prowess and entrepreneurial talent and skills.

Technology + Entrepreneurship = Technopreneurship

The technological entrepreneurship continuum:

Who is the technopreneur?

• A person who destroys the existing economic order (creative destruction) by introducing new products and services by creating new forms of organizations and by exploiting new raw materials. (Schumpeter, 1934)
• Someone who perceives an opportunity and creates an organization to pursue it.
• A person who undertakes risks (by creating an enterprise or business) that has the chance of profit (or success). Technopreneurs distinguish themselves through their ability to accumulate and manage knowledge, as well as their ability to mobilize resources to achieve a specified business or social goal.(Kuemmerle, 2002)
• The technopreneur is a bold, imaginative deviator from established business methods and practices who constantly seeks the opportunity to commercialize new products, technologies, processes, and arrangements. (Baumol, 2002)
• The technopreneur distinguishes logic from tradition, tradition from prejudice, prejudice from common sense and common sense from nonsense while integrating a variety of ideas from diverse groups and disciplines. (Manuel Cereijo, 2002)
• Technopreneurs are skilled in applied creativity, thrive in response to challenge, and look for unconventional solutions. They experience challenges, create visions for solutions, build stories that explain their visions, and then act to be part of the solution. They forge new paths and risk failure, but persistently seek success. (Dorf and Byers, 2005)

What is entrepreneurship?

• A way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced for the purpose of wealth creation. (Bobson’s definition)
• Entrepreneurship is creative destruction. Dynamic disequilibrium brought on by the innovating entrepreneur, rather than equilibrium and optimization, is the norm of a healthy economy and the central reality of economic theory and practice. (Schumpeter, 1934)
• The entrepreneur searches for change, responds to it, and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. (Drucker, 1985)
• Entrepreneurship is the pursuit of opportunity without regard to the resources currently under one’s control. (Stevenson)

What is technopreneurship?

• Creating the “New” and destroying the “Old”.

- New knowledge

- New products

- New processes

- New services

- New markets

- New business models

- New raw materials

Entrepreneurial process vs. Technopreneurial process:

• Entrepreneurial process

Opportunity Analysis

↳ Business Planning

       ↳ Gathering Resources

              ↳ Implementation

                     ↳ Scaling and Harvesting

• Technopreneurial process

Idea Generation

↳ Idea Screening

       ↳ Concept Testing

              ↳ Business Analysis

                     ↳ Prototyping

                            ↳ Test Marketing

                                   ↳ Commercialization

                                          ↳ Monitoring & Evaluation

Technopreneur and the Economy:

• Technopreneurs as agents of economic growth.

Technopreneur and the Economy:

• Three elements of the intellectual capital.

1. Human capital = the skills, capabilities, and knowledge of the firm’s people.

2. Organizational capital = the patents, technologies, processes, databases, and networks.

3. Social capital = the quality of the relationships with customers, suppliers, and partners.

What is Technopreneurship?

Technopreneurs are entrepreneurs who are into the core businesses involving technology-based industries. They make use of technology to come out with new or innovative products through a process of commercialization. The businesses are generally marked with high growth potential and high leverage of knowledge and intellectual property. Potential Technopreneurs must be equipped with both technical and business skills. Centre for Professional & Continuing Education (CPCE) is the centre responsible for coordinating, promoting, managing and supervising all activities pertaining to technopreneur development and innovation