Chapter 13- Entrepreneurship lecture International University- HCMcity

1. Technology Ventures: From Idea to OpportunityChapter 13: Summary
How can entrepreneurs efficiently acquire and
organize the resources needed to launch their
venture?
Successful entrepreneurs are good at locating and acquiring
the resources they need to start and build their firm. They
need capital, people, and intellectual and physical assets to
launch and grow their business.
Summary
To get profit without risk, experience without danger, and reward
without work, is as impossible as it is to live without being born.
A.P. Gouthev

2. Technology Ventures: From Idea to OpportunityChapter 13: Entrepreneurship
Another useful definition of entrepreneurship is
the pursuit of opportunity without regard to
resources currently controlled.

3. Technology Ventures: From Idea to OpportunityChapter 13: Figure 13.1
Physical
Assets
Physical
Assets
Sources of
Capabilities
Sources of
Capabilities
SuppliersSuppliers
Sources of
Financial
Capital
Sources of
Financial
Capital
Talent-
People
Talent-
People
CustomersCustomers
The Credibility
Cycle
The Credibility Cycle

4. Technology Ventures: From Idea to OpportunityChapter 13: Table 13.1
Sources of Legitimacy
•Regulatory — Legal actions, accreditation,
credentials
•Normative — Fair treatment, endorsements,
networks, image
•Industry — Attractive, respected industry, known
and understood business model
•Talent — Known, respected people
•Favorable Location — Within an industry cluster, good
location, visible
•Intellectual Property — Trade secrets, patents or copyrights

5. Technology Ventures: From Idea to OpportunityChapter 13: Table 13.2
Liking
•People like those who like them.
•Uncover shared bonds and offer
sincere praise and compliments
Reciprocity
•People respond in kind to others
•Give to others what you want to
receive
Social Proof
•People respond to a display of
endorsements by people they trust
•Use testimonials and endorsements
from trusted leaders
Sources of Legitimacy Cialdini, 2001.
Consistency
•People adhere to their verified
commitments
•Ask for voluntary, public
commitments
Authority
•People highly regard experts
•Show and state your expertise.
Scarcity
•People want scarce products.
•Describe unique benefits

6. Technology Ventures: From Idea to OpportunityChapter 13: Table 13.3
Criteria for Location Selection
• Availability of potential employees and consultants
• Availability of complementor firms
• Road and airplane transportation
• Quality of life — education, culture, recreation
• Costs of doing business
• Availability of suitable facilities
• Proximity to markets
• Availability of support services
• Affordable housing

7. Technology Ventures: From Idea to OpportunityChapter 13: E-commerce
E-commerce: digitally enabled commercial
transactions between and among organizations
and individuals.

8. Technology Ventures: From Idea to OpportunityChapter 13: Value Chain, Figure 13.2
Value chain: a sequence of business activities for
transforming inputs into outputs that customers
value, as depicted below.

9. Technology Ventures: From Idea to OpportunityChapter 13: Table 13.6
Questions for Selecting Value Chain Activities that will be
carried out by the New Venture Firm
1. Value: Is the activity a primary source of product value for the
firm?
2. Rarity: Does the activity include a resource or capability controlled
by the firm and rarely available to competing firms?
3. Imitability:Do competing firms have a cost disadvantage when
imitating the scarce resource or capability held by the new venture
firm?
4. Organizational Mission: Is the activity critical to the mission of the
firm and is the firm organized to exploit this valuable, rare, and costly
to imitate resource or capability?

10. Technology Ventures: From Idea to OpportunityChapter 13: Virtual Organization
Virtual organization: manages a set of partners
and suppliers linked by the Internet, fax, and
telephone to provide a service or product.

11. Technology Ventures: From Idea to OpportunityChapter 13: Table 13.8
The Seven Key Characteristics of a New Basic Technology
• Functional Performance — an evaluation of the performance of the
basic function
• Acquisition Cost — initial total cost
• Ease of Use — use factors
• Operating Cost — cost per unit of utility provided
• Reliability — needs for service and useful lifetime
• Serviceability — time and cost to restore a failed device to service
• Compatibility — fit with other devices within the system

12. Technology Ventures: From Idea to OpportunityChapter 13: Principle
Effective new ventures use their persuasion skills
and credibility to secure the required resources
for their firm in order to build a well coordinated
mix of outsourced and internal functions.

13. Technology Ventures: From Idea to OpportunityChapter 13: Venture Challenge
VENTURE CHALLENGE
1)How do you plan to attract talent and resources?
2)What location have you selected? Describe your use
of online commerce.
3)Describe what functions your venture will
outsource.

14. Technology Ventures: From Idea to OpportunityChapter 13: DVD Video
DVD Video
“Global Outsourcing”
Jeff Hawkins (Palm Computer)