Idea Generation:

Sources of Business Opportunities

Prof . Rajendra K Lagu
Former Adjunct Professor and Project Director,
SINE, IIT Bombay

Status-quo is good for incumbent players (established
companies) they have products or services, smooth
operations, established business models, loyal set of
customers, functional teams
Change brings in disruption that in consumer tastes, cost
structures, business models, expectations, level of expertise
needed, distribution channels, payment mechanisms,
availability of finance
Change produces a level-playing field which is actually loaded
in favour of a new player because of his flexibility,
adaptiveness
Change as a Source of Opportunity
Japanese car manufacturers (1973)
Microsoft (1976-78)
Amazon and Dell (1990s)
Infosys (1989)
Examples of Entrepreneurs
Exploiting Change
Demographic whole population (age distribution)
Economic Emerging markets
Socio-Cultural -- Value systems, role models
Technological -- Variety, performance, cost
Political democratic, authoritarian/totalitarian regimes.
Free market vs socialistic policies (Britain in early 1980s)
Legal and Regulatory -- liberalization (internal and external),
enforcement of IP protection laws
Broad Categories of Change
Median age
Working population as the % of total population
Life expectancy
Healthcare and Social Security Needs
Urban-Rural Ratio
Literacy
Male-Female ratio
Demographic Changes
Value systems -- globalization and local assertions
Accepted norms of behaviour
Role of religion and spirituality
Pursuit of expertise, knowledge, wealth, possessions
Aspirations, fears, desires, anxieties
Measure of time attention span, priorities, conveniences
Socio-Cultural Changes
Availability and wide-spread assimilation of technology
Information Technology and it pervasiveness
Costs and disposable incomes
Performance, variety, ease of acquisition
Cross applications interdisciplinary developments
Comfort level of technology usage
Examples: CD ROM drives and mobile phones
Technological Changes
Gross Domestic Product and Per Capita Income
Level of exports and imports
Inflation and interest rates
Availability of credit at all levels
Size of the middle class
Various growth rates
industrial growth, productivity growth, exports growth
Level of unemployment
Economic Changes
Transition from centrally planned to market economy (India,
1991)
Transition from communism to market socialism (China,
1978-1980)
Regulated, protected, closed economy
No IPRs (copyrights, patent laws)
Contract Enforcement and right to property
Labour and land reforms
Political and Regulatory Changes
Young country with rising literacy and prosperity
GDP growth rate of 7-8 % per annum
Growing middle class
Liberal, business like values, pursuit of wealth
High unemployment, imbalance in the development
India in the New Millenium
Passages of IP laws (new patent regime)
Respect in the global community (functional democracy)
Atmosphere conducive to business -- no xenophobia, no
insularity, no misplaced importance to self-reliance
Well developed Institutions judiciary, capital markets, stock
exchanges, media (free and independent), educational
institutions, regulatory bodies (SEBI, FDA, ISI)
India in the New Millenium
Truly new, novel and innovative ideas: 3-4%
Rest 96%
Enhancement -- improvement / refinement of features
cheaper, better, faster, more user-friendly
Extension to features
Specialization -- niche creation
Analysis of Existing Entrepreneurs
Enhancements Extensions
Specialization
Enhancements, Extensions
and Specialisation
DOS to Windows
Mechanical watch to quartz watch
Modem to ADSL modem
Ordinary TV to a flat screen TV
Desktop PC to a laptop PC to a tablet PC
Propeller engine to a jet engine
Most industrial innovations are examples of enhancement
Examples of Enhancement
Toothbrush with a built in toothpaste
Pen with a torchlight
Mobile handset with camera, FM radio,MP3 player .
Memory sticks with MP3 players
Wristwatch with a calculator
Cinema Multiplexes
Day care centers (crche) with tuitions
Swiss army knife
Examples of Extensions
Low cost airlines (Ryanair, Easyjet, Air Deccan)
Boutique financial advisory services
Super-specialty hospitals
Finishing schools
Executive search firms (CxOs only, finance professionals only)
Examples of Specialisation
Schools
Restaurants
Travel agency and tour operators
Pet shops
Bookshops
Gyms / weight loss clinics
Oxygen bars
Possible Service Opportunities