TECHNOLOGY ENTREPRENEURSHIP

(ENT600)

UNIT 3:

OPPORTUNITY ANALYSIS

Entrepreneurship Dept/FBM (2009) ENT600/Unit 3 Opportunity Analysis 1

 Definition of
Entrepreneurial Opportunity

Opportunities are an integral component

of the entrepreneurial process.

Entrepreneurial opportunities are defined

as situations in which new products,
services and processes can be introduced
and sold at greater than the cost of
production.

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 Concept of
Window of Opportunity

Often when referring to opportunities, the term

window of opportunity is used.
The entrepreneur must hit the window of
opportunity for which the opportunity exists.
Window of opportunity is defined as that too
often short period of time during which an
opportunity must be acted on or missed.
It also describes the time period in which a firm
can realistically enter a new market.

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 Cont
Concept of Window of Opportunity

The window of opportunity is deemed to be open

or close to denote the degree of attractiveness or
exploitation possibilities at a particular time.
The term open refers to the opportunity lending
itself to be exploited at that time because it has value
and potential for wealth creation.
The term close refers to the opportunity potential
diminishes due to it being exploited by another
entrepreneur or at that period of time has become
out-of-date or obsolete.

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 Changing Opportunity An Example

Data storage in the computing age is essential to

the user. Data storage in the early years of
desktop computing, the diskette was the key
mode of data storage.
As time passes, the user looks to more storage
capacities in a more stable form and much more
compact design. Hence, the introduction of the
pen drive or thumb drive fulfills the new needs
of the growing user group.
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OPPORTUNITIES IN CYBER ENTREPRENEURSHIP
Unlimited on-line opportunities
Examples:
Web designing
Web hosting
On-line business
Cyber business- eg. maintenance services and
accessories
Using social media for business - e.g Twitter or
Facebook, Instagram
On-line market places
Training and consultancy
 CHARACTERISTICS OF AN
ATTRACTIVE OPPORTUNITY

1. Timely
- a current need, unmet demand or problem (e.g.
vaccine for bird flu, drugs to prevent obesity).

2. Solvable
- a problem that can be solved in the near future with
accessible resources (e.g. a cure for cancerous
diseases, a more efficient public transport to reduce
congestion and traffic jams)

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 Cont
Characteristics of an Attractive Opportunity

3. Important
The customer deems their problem or need important
to them (e.g. energy-saving air conditioner or petrol
saving devices that work).

4. Profitable
the customer will pay for the solution and allow the
enterprise to profit (e.g. security products, multi-
function printers).

5. Context
a favorable regulatory and industry situation (e.g. on-
line business transaction, genuine investment schemes
that promised high returns).
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OPPORTUNITY ANALYSIS A PROCESS APPROACH

Opportunity Evaluate the

Discovery Opportunity

Go Technology-
Decision based Idea
Blueprint

Reject
Exploitation
Look of
Elsewhere Opportunity

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 OPPORTUNITY DISCOVERY
Sources of business ideas include:

Patent Office
The Intellectual Property Corporation of Malaysia (MyiPo) is an
agency under the Ministry of Domestic Trade, Cooperative and
Consumerism. This agency can be a good source of business ideas
that can be retrieved easily from their online patent search and
patent gazette hosted on its website.

University Research & Development

Provides an endless stream of research findings that can be
commercialized. Local universities play an important role in providing
knowledge that will help businesses grow into new market segments
and develop new products.
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 Cont
Opportunity Discovery

Research Institutes
Considered as reliable sources of business ideas on
various fields. Examples of research institutes in
Malaysia include the Malaysian Agricultural Research &
Development Institute (MARDI), Standards and
Industrial Research Institute of Malaysia (SIRIM).

Entrepreneurship Dept/FBM ENT600/Unit 3 Opportunity Analysis

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 Opportunity Pull (Market Driven)
vs
Capability Push (Technology Driven)
Opportunity can either be:
Opportunity Pull (Market Driven)
Occurs when there is a need or problem that requires a solution.
An example is the need for a pharmaceutical that can mitigate or
cure the effects of AIDS. This type of opportunity can be called
opportunity pull, since the size of the opportunity draws
opportunity seekers to attempt to exploit it.
Capability Push (Technology Driven)
Occurs from the discovery of a capability or resource that can be
applied to a problem or need. An example of this type of
opportunity is the discovery of a new technology, such as digital
television. This type of opportunity can be called a capability
push, since it flows from a capability or resource availability.
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 EVALUATE THE OPPORTUNITY

Evaluating opportunities involves internal and

external factors.
Internal factors relate more to the
entrepreneurial individual capabilities and
intentions.
External factors relate to the company and
business environment.

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 Cont
Evaluate the Opportunity (Internal Factors)

Internal factors that include:

Capabilities
the ability or quality (knowledge, experience, and
skill) necessary to develop the business venture.
Resources
include financial, physical, and human resources
consistent with the magnitude of the business
venture.
Interest
the will, commitment, and passion to pursue the
business venture.

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 Evaluate the Opportunity (External Factors)

External factors include:

Market
involves determining the size of the market and
the potential customers.
Financial
involves determining the costs to be incurred in
developing the business venture.
Technical
involves determining the requirements to proceed
with the idea that include machineries, raw materials,
the processes and infrastructure.

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 Cont (external factors)
Evaluate the opportunity

Economic forces
Have a direct impact on the level of disposable
income and consumer buying patterns. For e.g.
when incomes are high, people are more willing to
buy products and services that enhance their lives.
Similarly, a drop in interest rates typically leads to
an increase in new home construction and furniture
sales.

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 Cont (external factors)
Evaluate the opportunity

Social and Cultural Trends

an understanding of the impact of social and cultural
trends and how they affect new product, service, and
business ideas is a fundamental piece of the
opportunity recognition puzzle.
For example, the persistent proliferation of fast-food
restaurants is not due primarily to peoples love of
fast food but rather to the fact that people are busy
the increasing predominance of two-income
households leaves less time to cook at home.
Similarly, the Sony Walkman was developed not
because consumers wanted smaller radios, but
because people wanted to listen to music while on
the move and while exercising.
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 Cont (external factors)
Evaluate the opportunity

Technological Advances
provide opportunities to help people satisfy basic needs
and desires in a better or more convenient way.
For e.g. the cell phone provides the mobile population the
ability to communicate with its co-workers, customers,
friends, and families from anywhere and everywhere.
Similarly, people who shave have always wanted to
minimize the number of nicks and shaving time and get as
close a shave as possible. These and other shaving-related
desires will probably never change. What does change is
the degree to which new technologies can better satisfy
these needs and desires.
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 Cont (external factors)
Evaluate the opportunity

Political and Regulatory Changes

New regulations create opportunities for entrepreneurs
to start firms to help companies comply with these
laws.
E.g. OSHA standard, has opened up business
opportunities for consulting companies to help other
companies ensure compliance.
Political change also leads to new business and
product opportunities.
E.g. global political instability and the threat of terrorism
have resulted in many firms becoming more security
conscious.

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 Feasibility Study

The outcome of the evaluation of opportunity

is a feasibility study a tool to identify whether
the business idea is feasible or not.

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 Making Decision

Once the opportunity is evaluated, a decision has to be

made whether to proceed to the preparation of a
technology-based idea blueprint or to explore other
possibilities by looking elsewhere.
The entrepreneur must make a difficult decision whether to
act or not on a good potential opportunity.
The factors to be considered in making the decision
include whether:
- the product will give significant value to the customer
- the entrepreneur can attract the necessary financial,
physical, and human resources required by the venture
opportunity
- the expected return of the venture is consistent with the
riskDept/FBM
Entrepreneurship of the(2009)venture
ENT600/Unit 3 Opportunity Analysis 21
 TECHNOLOGY-BASED IDEA BLUEPRINT

This document summarizes the entrepreneurs

proposal of a business venture.

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 EXPLOITATION OF OPPORTUNITY

Exploitation of opportunity for technological-

based product can be done through
commercialization.

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