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Technology Entrepreneurship by Mind Map: Technology Entrepreneurship

1. 7) Growth and Exit

1.1. 7.1) Growing your Business

1.1.1. 'How can the entrepreneur build growth potential?'


1.2. 7.2) Entrepreneurial Exit

1.2.1. 'What is entrepreneurial exit?'

1.2.2. types Untitled

1.2.3. Boundary conditions Focus upon the individual Focus on privately held firms outcomes are related to entrepreneurs' perception of exit

1.2.4. Importance of exit Most significant event in the life of the entrepreneur Positive and negative change for the firm May change competitive balance of the industry Enhances regional economic development

1.2.5. Untitled

1.3. 7.3) Exit + phases

1.3.1. 'What factors determine the exit options of the entrepreneur?'

1.3.2. Drivers likelyhood of exit Ownership Equity Psychological Aspiration Lifestyle versus growth ventures Phase of the entrepreneurial journey 2) Infancy 3) adolescence 1) Conception & gestation 4) maturity

1.3.3. Untitled

1.4. 7.4) Exit: Trade Sales

1.4.1. 'how to prepare your firm for a trade sale?"

1.4.2. Motives for trade sale Creating an exit for investors or founders Growing the business

1.4.3. The process (seen from acquirer): 1) Acquisition strategy Motive Objectives 2) Preacquisition phase Search Screening Selection Untitled 3) Transaction phase Due diligence Deal closing 4) Implementation Integration Coordination Untitled

1.4.4. Untitled

2. 6) Financial Planning

2.1. 6.1) Financial Planning

2.1.1. 'why should an entrepreneur make a financial plan?' subrequirements sustainable business Profitability Efficiency Liquidity Risk Untitled net working capital need -> suppliers on credit? how fast does your consumer has to pay?

2.2. 6.2) Income Statement

2.2.1. How to develop an income statement? Balance sheet Cost structure 8 Bases for Sales Advertising Subscription fee Brokerage fee Usage Fee Licensing Service package Renting / Leasing Product Sale Pricing

2.3. 6.3) Cash Flow Statement

2.3.1. 'How to develop a cashflow statement'

2.3.2. 'the cash flow statement is a projection of future cash-ins and cash-outs.' not all cash-ins are revenues Loan = not revenue taking back dereciation = not cash-in Not all cash-out are cost Capital repayments = not a cost Depreciation = not a cash-out

2.3.3. Timing difference: Matching principle = fact that cost you do for investment should be allocated to the period it relates Untitled

2.3.4. Timing difference: Operational cycle time from cash-out to cash-in Network capital needed Untitled can work positive (supermarket) Untitled

2.3.5. CFS

2.4. 6.4) Balance Sheet

2.4.1. Left side Equity & Liabilities Ordered to the possiblity to claim repayment

2.4.2. Right side Assets sorted by speed of cash conversion (liquidity)

2.4.3. Sources of finance Equity 3F's Angel & Venture finance Long and medium term loans Personal (family friends) Bank Crowdfunding Equity Loans

2.4.4. Untitled

2.5. 6.5) Estimating Sales

2.5.1. Bottom-up approach 1) Means at hand 2) Sales pipe estimation time + effort generating sales Identify leads (who can be ineterested?) Avoids: 3) Sales reliable estimation sales generating Have to do Field Research

2.5.2. 'How to make a reliable estimation of your sales?'

2.5.3. Top-down approach 1) Potential market Anyone could be interested 2) Total available market anyone interested in buying YOUR product 3) Served available market which segment to target within total available market 4) Made sales estimation Have to do desk research

2.5.4. Need to convince diverse parties 1) Economic buyer Gives final approval to 'buy' Decision criteria: Challenges: 2) User buyer Makes judgement about impact on job performance Decision criteria: Challenges: 3) Technical buyer Skeptical gatekeeper (in charge of managing and maintaining technology) Decision criteria Challenges: 4) (coach)

3. 5) Risk and Uncertainty

3.1. 5.1) Risk & Uncertainty

3.1.1. 'How to define risk and uncertainty?' Predictive environment Dont know outcome can predict ->future under perfect information known distribution prediciton is possible future under imperfect information experience helps prediction is difficult unknown distribution Uncertainty types State uncertainty Effect uncertainty Response uncertainty True uncertainty Future is unkown Unknown distribution History and experience do not help Characteristics of environmental uncertainty Munificene Complexity Dynamism Sources of Uncertainty

3.1.2. Untitled

3.2. 5.2) Dealing with Risk: Causal Approach

3.2.1. 'How to deal with risk using causal heuristics?' 1) Identify the key risks that you face Threats and Opportunites Scenaria planning as tool External vs. internal incidents 2) Assessing risk Untitled Risk index factor 3) Monitoring risk Focus on high risk index numbers Identify key risk indicators Track risk indicators 4) Mitigating risk 4 ways 1) Eliminate 2) Reduce 3) Transfer 4) Accept Generic strategies for managing Risk: Strategic options (contingency planning) Networking Partnering Compartmentalizing risk

3.2.2. Untitled

4. 4) Commercialization strategies

4.1. 4.1) Complemtary Assets

4.1.1. How to reach your end consumer? We have base technology & innovative know-how. what we need to reach end consumer? complementary technology production technology marketing (Value Chain) what position do I want in value chain? Artica Structure? Other players? How do I reach end consumer? What can I do myself?

4.1.2. Untitled

4.2. 4.2) Protecting Technology

4.2.1. intellectual property rights 1) Patent certain time (20years) file patent -> full disclosure of invention 2) registered Design relate to products Whole look and feel 3) Copyright Prohibit anyone to use Writings, computer programs, web pages etc. 4) Trademark relates to organizational level symbols, colours, textfoulds etc. anything that allows to distinguish the products and services created by one organisation

4.2.2. Secrecy formula of Coca-Cola INTERNET VIEL UIT -> NAKIJKEN OP SCHOOl 3:15

4.2.3. Speed to Market

4.3. 4.3) Commercialization Strategies

4.3.1. 'What is the best strategy to earn money with your innovation?'

4.3.2. Untitled depends on: 1) Protectability of idea Collaboration or competition strategy 2) complementary assets Untitled

4.4. 4.4) Marketing and Selling New Technology

4.4.1. 'How to market and sell your innovative product?' Product lifecycle 1) Completely new market 4) Mature 3) Growing 2) Emerging 5) Declining people in phases Untitled

4.4.2. Untitled

5. 3) The Entrepreneur and the Winning team

5.1. 3.1) The Entrepreneur

5.1.1. Why are some entrepreneurs more successful than others in discover/creating and exploiting opportunities? Differentiate highly amibtous entrepreneurs ambition = determination to succeed Firm Growth Societal contribution Innovativeness of the firm Achievement types: 1) Role-residing achievement motivations Biggest success rate -> how entrepreneurs deal with faillure -> how to do things with a small footprint Attitues and behaviour Commitment and determination (personal sacrifice) Opportunity Obsession Creativity, self reliance (internal LOC) and not afraid of failing Tolerance of risk, ambiguity, and uncertainty Motivation to excel (need for achievement) Human Capital Knowledge and skills Young -> creativity Human capital -> important factor to survival of startups middelaged -> netwerk

5.2. 3.2) The roles of the entrepreneur: Managing & Leading

5.2.1. Can an entrepreneur be a manager and a leader? James Caan People who make business successful People buy people first Management & leadership Management = head, leadership = heart Greiner's growth model

5.3. 3.3) New Venture Team

5.3.1. team start-ups perform better than individual start-ups

5.3.2. the team A few people with COMPLENTARY capabilities Committed to a common objective, goals, and approach hold eachother mutually accountable

5.3.3. Recruiting Develop skills profile, identify gaps specific marketor industry skills Core fujctional disciplines where to Family, friends and fools Social capital (network) Right mix of human capital Right mix of personal characteristics

5.3.4. Necessary to team work effectively -> Belbin Have successfuly worked togehter in the past 9 clusters of personal traits Thinking People Action has expertise in basic functional areas of the business (tech, finance, marketing, operations 1 member in industry dedicated to financial constraints Industry contacts

5.3.5. Untitled

5.4. 3.4) Social Captial and strategic Alliances

5.4.1. Ties Internal ties = relationship within the social structures of a collective (e.g. organization) External ties = relationships that span boundaries to other collectives (e.g. other organizations)

5.4.2. what are the benefits of social capital? (ALLIANCES) definition: ''The accumulation of active connections among people in a network'' Focus: Set of relationships (whom you know) definition: '' the sum of actual and potential resources embedded within, available through and derived from the network of relationships posessed by individuals or social units Focus: set of resources rooted in relationships argue A lead to B or others say social capital comprises both the network and the resources that may be mobilized through that network

5.4.3. (In)formal Legal contract/ equity (formal) alliances informal

5.4.4. Untitled

5.5. 3.5) Networks: the relational and cognitive dimensions of social capital

5.5.1. What are the benefits of social capital? (NETWORKS)

5.5.2. Alliances lead to networks (A connected via B with C)

5.5.3. Networking = key capability of entrepreneurs obtain ideas access resources mobilize resources

5.5.4. Size of network -> network overload too much time & resources in managing network Quality and reputation of the network own rep also better contingencies

5.5.5. dimensions of social capital within a network Structural dimension Whole configuration elements: Relational dimension relationships developed over time elements: Strong versus weak ties Cognitive dimension = people understand each other better when shared knowledge and shared language using elements: shared representations, interpretations and systems of meaning

5.5.6. Advice for entrepreneur: Find partners at sufficient cognitive distance to learn something new But not so distant as to preclude mutual understanding (there is a sort of optimum)

5.6. 3.6) Networks: the structural dimension of social captial

5.6.1. What are the benefits of social capital? -> structural dimension of networks Structure of the network as a whole Coleman's network closure Position of the firm within the network structure High closeness centrality low closeness centrality Burt's Structural Holes = absence of direct relations (i.e. hole) among a focal actor's network contacts = the term 'structural holes' is used for the separation between non-redundant contacts Example

5.6.2. 2 Views on entrepreneurship BRIDGING AND BONDING Generate NOVEL opportunities = Bridging view Large networks Structural holes & Bridge positions Sparse & heterogenous networks Weak ties Cognitive distance Assemble resources to EXPLOIT opportunities = Bonding view Closure & central positions Dense & Homogeneous networks Small networks Cognitive proximity Strong ties The value of a particular network depends on what an entrepreneur wants to achieve through it!

6. 2) Business Model Development

6.1. 2.1) Business Model Defined

6.1.1. 'the Heuristic logic that connects technical potential with the realization of economic value' Heuristic logic = method that can help find a solution to a defined problem (->find the good 'enough' solution') -> how to add value to customer, adaptive process the connection between the technical potential and the realization of economic value -> maps across domains technical domain Economic domain 'in between'

6.1.2. Elements Value proposition = value to customer Clearly defines what the service/product is How/what way the customer it can use it Market Segment = group customers interested in the value proposition and willing to pay Revenue mechanisms rent/buy/freemium revenue to cost structure -> profit Value Network Untitled Competitive Strategy Business model only makes sense when comparing to competitors Always relative Think as a consumer !ALWAYS INCLUDES beschrijving van competitie!

6.1.3. In Short: 1) Is a heuristic logic 2) Connects the technical domain to the ecnomic domain 3) consists of a number of different elements that can be configured in different ways

6.2. 2.2) Designing a Viable Business Model

6.2.1. Technology (Dyneema wielrenbroek/visnet) Has no single objective value until technology is technologized via Different business models How to unlock most valueable outcome

6.2.2. Co-design business model of technology

6.2.3. Chesbrough: ''a mediocre techonlogy pursued within a great business model may be more valueable than a great technology exploited via a mediocre business model''

6.3. 2.3) The Business Model's Functions

6.3.1. 1) creates value Untitled Does value creation always lead to value capturing? Laboratries transistor -> not put it on market -> SONY did So NO! business model canvas Key Resources Cost structures Key Partners Key Activities

6.3.2. 2) captures a portion of that value Customer Segments Channels Revenue streams Customer Relationships

6.3.3. Business model: is a set of assumptions about how a firm will create and capture (appropriate value for all its stakeholders -> by connecting technology to economic profits Inter-organizational setting Use value -> perceived by customer Opportunity costs of suppliers -> resources have to give up Difference = value created

6.4. 2.4) Business Model Innovation

6.4.1. How to innovate with your business model? BMI = Business model Innovation New ways to create and capture value Matters to the PERFORMANCE of entrepreneurial firms (Zott and Amit) Particularly important to new firms (George and Bock) 2x effort on BMI -> grow operations margins faster How to innovate? via business model canvas resource driven (key partnerss) Revenue/ costs Customer insights & benefits (customer segments) Offer driven (Value Propositions) Multiple epicentrum business model innovation -> different blocks at same time

6.5. 2.5) Degree of Business model Innovation

6.5.1. Which degree of business model innovation should entrepreneurs undertake in order to maximize firm's performance and survival? Value Chain = all activities needed to: Develop Distribute to customer Support Radical new business models (change the rules) Business model innovation and Performance 1) Positive effect of novelty-centered business model design on performance 2) Imitate instead if Innovate Efficiency centered Business model design on performance -> NOT CONFIRMED 3) do both -> not show a significant effect on performance, did show diseconomy of scope (negative) Incremental changes to existing busines smodels Relationship between survival and degree of BMI = U-shaped Moderate degree of BMI -> short survival

7. 1) Introduction

7.1. Principles

7.1.1. 1) Bird in the Hand principle (means) Roeien met de riemen die je hebt Wie ben je, waar hou je van, interesses Wie ken je, netwerk Wat weet je How does this help? Get you going right away You are unique Inexpensive start

7.1.2. 2) Affordable Loss Principle (realistic) W Base on risk: not more than you can afford Virgin airways (sale back option first airplane) Stimulates creativity to increase return

7.1.3. 3) Crazy Quilt Principle (realize new means and new goals) Don't focus on competition sdjfa;lkasjdf;lkjads;fj Focus on CO-CREATION (share commitmets Applying -> Access to new means (of partner) Access to new goals (of partner)

7.1.4. 4) Lemonade Principle Look at surprises as new resources -> add to existing means Adapt to your advantage (post-it story, weak adhesive became success) Surprises add to means, change goals

7.2. Opportunity generation & Effectuation/Causation relate entrepreneurial decision making to opportunity generation

7.3. Opportunity Generation

7.3.1. Theories 1) Opportunities by discovery 2) Opportunity creation

7.3.2. Modes Passive mode Active mode

7.3.3. Prior knowledge Opportunity discovery Oppertunity creation

7.3.4. Serendipity