2. Sohan Babu Khatri - Introduction
Professional Engagements:
• CEO – Three H Management Pvt. Ltd
• Director of Board – Grand Bank Nepal Ltd , Just-One-Nepal, SCDRR-Nepal
Adjunct Faculty:
• Ace Insititute of Management
• Kathmandu College of Management
• London Chamber of Commerce and Industries – International Qualification
Background:
• Bachelor’s of Civil Engineering (BE Civil) - Pulchowk Campus, Institute of
Engineering, Nepal
• Masters of Business Administration (MBA - Finance and
Marketing), Bangalore University, India
• Certified Financial Manager (CFM), Centre of Financial Management, Bangalore
• Licensed International Financial Analyst (LIFA) - Charter Holder – International
Research Association, Cambridge, Massachusetts
6. On Ideas
If a man makes a better mousetrap
than his neighbor, though he builds
his house in the woods, the world
will make a beaten path to his door.
Ralph Waldo Emerson
6
7. Business Concept
The manufacturer who waits for the
world to beat a path to his door is a
great optimist. But the
manufacturer who shows this
“mousetrap” (and its value) to the
world, keeps the smoke coming out
his chimney.
O.B. Winters
7
12. An Opportunity is External
• It is in the environment
• It is a need to be fulfilled
• It is a want to be addressed
• It is a fear to be relieved
• It is time limited (window of opportunity)
• It is not a technology, service, or product
but an application to situation
12
13. Ideas vs. Concepts
• Ideas are often seeing a need, want or fear and
saying, “Lets meet that”
• Ideas are sometimes a technology hunting for an
application or “opportunity”
• Concepts are when you put a technology together
with the customer/market perspective and
understand the business and revenue models that
lead to sales.
13
14. Opportunity, Ideas & Concepts
• Good ideas are not always good opportunities nor
viable concepts.
• Concepts are built using ideas & entrepreneurial
creativity in real time & address real problems.
• Opportunities are attractive, durable, timely, and
anchored in a product or service which creates real
value for its buyer and end user.
• Concepts provide Need or Want Satisfaction, Pain
and/or Suffering Relief.
• Opportunities yield measurable net benefits to the
entrepreneur and to society.
14
15. Opportunity Recognition
• Opportunities are also situational
– The Window of Opportunity
• Opportunities take form in real world
conditions
– Changing conditions
– Leads and lags
– Knowledge gaps
– Chaos and/or confusion
– Inconsistencies
– Uncertainties
15
16. The Window of Opportunity
I was seldom able
to see an opportunity
until it ceased to be
one.
17. The Window of Opportunity
Market Size
(Revenue
Potential)
Time (Years)
17
19. Watch Trends
• Social
• Political
• Economic
• Technological
• Demographic
• Global
• Local
19
20. The External Environment
Macro-Environment
Industry
Demographics
Economic Environment
Competition
Customers FIRM Suppliers
Social Substitutes Global
Political/Legal
Technological
20
22. Questions to Answer
• Can we convert this opportunity into some
profitable business concept ?
• Is this really an adequate business
opportunity and concept?
• Is this one I/we want to pursue?
• What resources are required to exploit it?
• How do I/we acquire them?
• How do I/we manage the operation?
• How and when do I/we harvest?
22
23. Differentiating Between
Opportunities
Revenue Potential
Small Big
C
o Obvious Most small Highly
n businesses competitive
c
e High
p Black holes potential
Not Obvious ventures
t
s
23
24. The Ideal Growth Market (Example)
1. Over 50 million in total size, 100 million derivable
2. Growing at a rate significantly greater than real GNP, 25-50%
reasonable
3. Sufficiently fragmented or non-competitive to allow a new entry
to grow to 25-50 million or more in sales within 5 years
4. Amiable to profit making by a new entry at the rate of at least 10%
after tax on sales within 2 to 3 years after start up
– High technology requires very high contribution margin
5. Politically and socially acceptable to traditional sources of
finance once established
– Bank loans
– IPO or sale to larger corporation
24
25. An adequate top line is
fundamental to a modest
bottom line.
Learn | Consult | Research
27. Harvest Issues (Bottom Line)
• Profitability
• Positive Cash flow
• ROI on Required I
• Investor Demands/Expectations
• Value at exit
• Life style issues
–Personal wants
–Family issues
• Sustainability
• Social Value Added
• Environmental Value Added
27
29. Principles of Opportunity Seeking
• Systematically analyze all sources
• Go out:
– look,
– ask, &
– listen
• Keep it simple, stay focused
• Start small (specific)
• Aim for leadership
• Be market focused, be market driven
• Don‟t do too much at once
• Innovate for future
• Focus on Opportunity rather than Risk
29
35. Customers
“I cannot give you the formula for
success, but I can give you the
formula for failure...which is: try to
please everyone.”
–Herbert Bayard Swope
35
36. Venture Concepts
"Vision is the art of seeing
things invisible.”
–Jonathan Swift
36
41. Success
"Success, as I see it, is a
result, not a goal."
–Gustavae Flaubert
41
42. SUCCESS CRITERIA
IT IS NOT ONLY MONEY!!!
• Growth
• Profitability
• Technological Innovation
• Market Impact
• Institutionalization of Success
42
43. Conclusion
Be Realistic, but
Demand the Possible
43
44. Some more about opportunity and
business concept
Learn | Consult | Research
45. Identifying Opportunities
Analyzing the Product- (Service-) Market Scope
existing Market
(developed) new
improve market market diversification;
existing penetration; gain extend market scope
market share (e.g. go international)
Product
(Service) develop new products; simultaneous product-
product diversification and market
new diversification
45
46. Key Business Concepts
Business What is the basic principle behind
model the business?
Revenue How do you plan to make money?
model What are your sources of income?
How do you plan create value?
Value
What is the commercial proposition?
proposition
What is the customer going to pay for?
46
47. Developing The Concept Statement
• What customer needs and wants are
presently going unsatisfied?
• How will the requirements of present
customers change?
• What new end-use applications are likely to
emerge?
• What new technologies will be used to meet
which needs of customer groups?
47
48. Developing The Concept
• What will competitors do and what difference
will this make?
• What customer needs, wants, and fears are
being addressed
• What customer groups should the
organization be getting in position to serve?
• Is it going to be satisfy the bottom line ? For
how long ?
• How do we grow ? How do we change ?
48
49. Checklist For The Concept Presentation
1. Important and Distinct Features
2. Who are the target users/customers ?
3. Why will they consume it ?
4. Innovation Involved
5. Role the concept plays in the industry
6. What is the business model ?
7. What is the revenue model ?
8. How will the customer know you exist ?
9. What are the bottom line achievements ?
10. Why will your business run sustainably ?
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50. Whom to Target ?
Know your customers better than yourself
Learn | Consult | Research
51. Market Segmentation: Consumer
Markets
Grouping customers is a more practical way of meeting
needs than thinking of customers either as individuals or
as one large mass. Groups should comprise those
customers that respond to your products and services in
similar ways. By planning a business around these
customer groups, needs can be served effectively.
Geographic Demographic Psychographic Behavioral
51
52. Consumer Markets: Product Adoption
34% 34%
Rate of adoption
13.5%
16%
2.5%
Innovators Early Early Late Laggards
adopters majority majority
52
53. Market Segmentation: Business
Markets
Business markets can be segmented with many of
the same variables employed in consumer market
segmentation, such as geography, benefits sought,
and usage rate. Yet business marketers also use
several other variables.
Demographic Purchasing Personal
variables approaches characteristics
Operating Situational
variables factors
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54. Development of New Product /
Customers/Markets
Nature of Customers or Markets
Technology Old New
Old “No Promising
Brainer”
New Great
Risky
Potential
54
60. Example: Portable PCs
►Functional Capabilities ►Benefits
– Weight – Portablity
– Size/Volume – Effective compute
– Processor speed Mhz power
– Battery life – Maximum time without
power connection
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61. Example: Fiberoptic Cable
►Functional Capabilities ►Benefits
– Low weight/size/cable – Easier to install; lower cost
– Less signal attenuation – Fewer re-transmission
– High message volume amplifiers
capacity – More clear signals
– Fast transmission – Easier to trouble shoot &
– Immune to cross talk, RFI maintain
and EMI
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62. Example: DSL Line
►Functional Capabilities ►Benefits
– Uses existing twisted – No new line installation
pair telephone line required
– 15-20 times faster than – Enables service
56kbps dial up modem operators to sell more
broadband services
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63. Example: Email
► Functional Capabilities ► Benefits
– Multiple addressees – Easy mass mailing
– Instantaneous, electronic – No delay
transmission – Quick & easy response
– One click reply & forward – Minimal
– Stored addresses – No paper, no postage, no
– Electronic message storage envelopes, no storage
cabinets
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64. The Value Triad – Be Clear
Customer
Value
Proposition
Product Application
64
65. Value is what customers buy
Learn | Consult | Research
68. Example
►Customer: Owner of Bed & Breakfast Inn
►Product: A $350 Hobart table top mixer
►Application: Making pancakes for 10 guests
every day
►Value Proposition:
– “The Hobart mixer is a faster, more efficient mixer that
is sturdier, reliable, and suitable for significant daily
use”.
69. Another Version
►Customer/Buyer: U.S. Army
►User : Military cook/baker
►Application: Baking 500 cakes/day
►Product: $3,500 Large
capacity, heavy duty, floor mounted industrial
mixer
►Value proposition:
– “This industrial mixer provides high capacity, high
performance and very long term reliability”.
74. • Don‟t fall for one more than the other one.
• Don‟t fall into Analysis Paralysis.
• Don‟t be a better maker and poor seller
• Don‟t be a better seller and poor maker
• Have a right balance between both
• Understand their complimentary relationship
• Business and Technology needs to interact
with each other better.
75. Value – ITC - Example
A. Strategic Benefits
• A1. Competitive Advantage
A2. Alignment
A3. Customer Relations
B. Informational Benefits
• B1. Information access
B2. Information quality
B3. Information flexibility
C. Transactional Benefits
• C1. Communications Efficiency
C2. Systems Development Efficiency
C3. Business Efficiency
80. Mobile Apps and Business
• Consumer app developers have used to
efficiently acquire large user bases and why
business app developers cannot leverage
the same techniques.
• Cross-promotional advertising on consumer
apps can be a very effective and efficient
user-acquisition technique.
81. Example
• Dropbox is the quintessential paradigm of
designing virality into a product. Users are
incentivized to refer Dropbox because they
receive free additional storage for doing so.
• Additionally, the act of sharing a file with a
friend inherently exposes Dropbox to new
potential users and serves as a trigger for
customers to talk about the service.
82. THERE ARE THREE TECHNIQUES THAT
EMERGING MOBILE-FIRST BUSINESS
APP DEVELOPERS ARE USING TO
BUILD VIRALITY INTO THEIR
PRODUCTS.
83. TRIGGERS
• Triggers are events that spur an action.
• In this particular context, triggers are actions
that an app user takes that provide for an
opportunity to discuss the application.
• Expensify, a mobile app for business users to
submit expense reports, has built in two word-
of-mouth referral triggers:
– 1) every time a user takes a picture of a receipt for
expense reporting, they are triggered to talk about
the app with the coworkers or clients present;
– 2) the act of submitting an expense report triggers an
explanation of the product to the person approving
the report.
84. INCENTIVES
• Incentives play on the concept that users are
much more likely to actively refer a product if
they receive some practical value for doing so.
• Plangrid, an iPad app for managing
construction-site blueprints, uses incentives to
spread among the different companies that
collaborate on construction sites.
• Plangrid‟s value to each site user increases with
each additional company and user that joins and
adds to the project.
• Thus, users have a practical incentive to refer
the product to new target users.
85. VIRALITY INTO WORKFLOW
• Lastly, building virality directly into the workflow of
how a customer uses an app is a very effective way
to expose the app to new potential users.
• Doximity, a mobile professional network for
physicians, has built virality into its product workflow
through its secure messaging capability.
• Doctors use Doximity to send HIPAA-compliant
messages to other doctors.
• Every message sent from a user to a doctor not yet
on the platform exposes a new potential user to the
product, because the message recipient must install
Doximity to read the message.
87. KEY FOR ENTERPRISE APPS
• Mobile-first business apps have to follow
different rules for customer acquisition in order
to achieve the scale and marketing efficiency of
their consumer-focused brethren.
• The key for enterprise apps is to focus on
building virality into the product so users
directly or indirectly spread the app within their
target audience.
• The mobile-first business apps that emerge
victorious will be the ones that leverage
triggers, incentives and workflow to kick their
user acquisition flywheel into overdrive.
88. MOBILE APPS FOR BUSINESS AND ITS VALUE
TO THEM
• Recession proof business: You can make real
money now: 1 in 5 sales is currently made using
a mobile application. Despite the current difficult
economic trading conditions, 50% of mobile
searches result in a sale, and it‟s set to grow
exponentially
• Rising market: The mobile apps market is set to
grow to $119 Billion by 2015. Imagine how much
money you will be making when the market
improves. When the time comes, you‟ll be able
to command a substantial share of the market as
an established player
89. ……………
• Low cost/low risk investment – it‟s the
easiest way to start a business and get
selling, requires little or no technical
knowledge with our intuitive, user-friendly
mobile app template interface
• Quick wins – get up and running within 24
hours and start making money instantly with
little effort – build a demo mobile app in
minutes to show your clients
90. …………….
• Make money while you sleep – Mobile App
Reseller accounts get paid by their customers
monthly so you can earn money automatically
while you are not even working. Once you
have a customer they stay a customer.
• Secure income now! – get paid by selling
repeat monthly mobile applications so you
can build your monthly income on a regular
basis
91. • Extends your sales opportunity: Spreads the
business risk as it‟s possible to attack virtually
any vertical sector so if one market is slow you‟ll
find another easily that will pick up the slack
• Future-proof your business – you‟ll be able to
build a loyal client base. Mobile apps for
business will help your clients sell more of their
products and services, they can quickly see the
return on investment, and will come back for
more and more
92. …………..
• Provides opportunity to up-sell and cross-sell –
giving you the confidence that you will be able to
generate a future income stream for yourself. The full
complement of marketing tools provides ample
opportunity to sell clients additional services on a
continuous basis such as exhibitions, print and
display, customer promotions with our “write
once, send to all” technology
• Peace of mind – fully backed up service by world-
leading mobile apps development company Instant
App Wizard, means you can roll out products with
complete confidence as all IT functions, tutorials, and
back-up marketing and support services are provided
for you and your clients, now and in the future.
93. VALUE – EXAMPLES
Understand others business if its your business
to sell them your product
Learn | Consult | Research
94. 1. Geo-Targeted Push Notifications
• A band on tour could notify fans in a particular city
that tickets there are nearly sold out or remind
concert-goers to show up early so they don‟t miss the
opening act
• A national chain could easily send city- or region-
specific notifications about special offers based on
what users in that area are interested in
• A restaurant could boost loyalty by sending a special
offer to customers who had been in the past year but
not in the last two months
• A store could announce a sale on umbrellas coupled
with a weather alert to nearby users when it‟s
predicted to rain soon
95. 2. Additional Sales Opportunities
• One of the single biggest opportunities for businesses to
leverage mobile apps is that smartphones have opened a
whole new world of shopping and engagement opportunities.
Interactions between customers and businesses have grown
to become geo-agnostic. The morning commute, waiting in
line for movie tickets and sitting in a doctor's office are all
places people could be using their smartphones to shop your
store or engage with your brand.
• These pockets of free time that were previously biased
toward reading, can now be used by consumers for so much
more. A mobile app maximizes opportunities for reaching
users in these new pockets of time. A push notification might
remind users of a nearly abandoned shopping cart, bringing
them back into the shopping experience.
96. 3. Geo-Targeted Advertising
• The classic targeted ad story goes something like this:
A potential homeowner is stuck in traffic on his daily
commute home and looks out his window to read a
sign on a new housing development that says, “If you
lived here, you’d be home by now.”
• Now multiply that times a billion and you‟ve got the
power of modern, smartphone-powered targeted
advertising. These smart ads can target users by their
specific location, displaying ads that are geographic
and contextually optimized.
• Businesses can make on-the-fly tweaks to campaigns
based on what works in a particular geographic
location. They can also display coupons to potential
users nearby or help users find the business by
advertising directly on a map.
97. 4. Dynamic Offers
• When you tie in technologies like push notifications
and geotargeting, magical things start to happen.
Businesses can use data collected through
geotracking and ad campaigns to deliver just-in-time
offers. .
• For example, movie theaters and very time-sensitive
inventory that goes to waste at a particular time and
can‟t be recovered. The theater could track and send a
coupon to users who are nearby and looked up
information about showtimes but didn‟t make a
purchase.
• A bar with a slow night could offer an impromptu
extended happy hour to past patrons who are nearby.
98. 5. Pushing Through the Funnel
• Ever walked into a store, shopped around a bit, and then
walked out without making a purchase? That‟s called a
"bounce." Online, users bounce for a variety of reasons
and on mobile the reasons are even greater. Users might
not have a credit card handy, typing in account information
is considered too tedious or they simply get distracted and
put their phone back in their pocket.
• Fortunately, one way to combat transaction abandonment
is through automatic address fill-in. Using a phone‟s
GPS, transactional apps can detect a user‟s location and
automatically fill in address data.
• Seamless, the leading online food delivery service, has
been aggressively marketing its mobile apps that
automatically detects a user‟s location to fill in a delivery
address and display restaurants able to deliver there.
99. 6. Data Gathering
• One of the really powerful tools available to online
businesses is that they can easily track every move
customers make from the moment a user lands on the
site. What engaged users and what turned them off?
• Where, exactly, in the online store did a user go and
what did they do when they got there?
• These are really easy questions for webmasters to
answer, but good luck figuring that out in brick-and-
mortar store.
• That is, unless you‟re using the Wi-Fi signals emitted
from smartphones in your customers pockets and
purses. Tracking signals from mobile devices is
opening a whole new world of analytics and data-
gathering opportunities for retailers stuck in the
physical world.
100. 7. Compete Anywhere
• Many brick-and-mortar retailers complain about
showrooming, the practice whereby shoppers visit a
physical store to inspect the goods in person all the
while intending to ultimately make their purchase
online, where prices are usually cheaper.
• While the traditional retailer might be on the losing
end of that transaction, the customer and online
retailer are winning.
• Price comparison tools are helping etailers drive
additional traffic and sales. Amazon, for
example, even went so far as to offer a $5 discount to
shoppers who scanned items using their price
comparison tool.
101. ……………
• Mobile apps are helping businesses increase revenue
largely by increasing efficiency.
• Instead of advertising to broad spectrum, users can be
narrowly targeted.
• Businesses can lure back customers who haven‟t
been in a while but are nearby.
• Customers can shop during small pockets of time that
would have previously gone to waste.
• Businesses can precision-discount inventory in the last
moments before it would have gone to waste.
• And all these little efficiencies are resulting in more
revenue for businesses while, by and large, enhancing
the overall experience for users.
102. For Social Apps
Social Entrepreneurship
And Sustainability of Business
Learn | Consult | Research
108. The Social Enterprise Spectrum
Purely philanthropic Purely commercial
Motives, M Appeal to goodwill Mixed motives Appeal to self-
ethods & interest
Mission driven Mission driven &
Goals market driven Market driven
Social value
Social & economic Economic value
value
Subsidised rates or Market-rate prices
beneficiaries Pay nothing mix of full of payers &
those who pay nothing
Below-market capital, or
Key stakeholders
capital Donations & mix of donations & Market-rate capital
grants market-rate capital
Below-market wages, or Market-rate
workforces Volunteers mix of volunteers and compensation
fully paid staff
Special discounts, or mix
suppliers Make in-kind of in-kind & full price Market-rate prices
donations donations
109. Why Create Social Value?
• Businesses are motivated by profit-creation whereas social
projects have to be driven towards social value creation.
• As a result most successful social entrepreneurs that face
various challenges share the same philosophy or a strategic
service vision, that is, a set of ideas and actions that
maximizes the leverage of results over efforts directed
toward well-defined targets and supported with highly-
focused operating strategies.
• It is necessary for Social entrepreneurs not only to create
social value for its „customers‟ i.e. its target group but also
its „investors‟ i.e. its donors.
• Social entrepreneurs generate social capital when they
create channels in which individuals can contribute to their
communities and to the welfare of others
111. A Short Story
• Two boys walking in a forest
• Come across a ferocious grizzly bear
charging towards them
• The first boy calculated that the bear will
overtake them in 17.3 seconds and have
no chance of escape
112. The story continues
• The second boy puts on his running
shoes
• The first says, you are crazy, you cannot
outrun the bear
• The second says, true, but all I have to
do is outrun you.
113. What it takes to be entrepreneurial in a
not-for-profit setting?
HAVE THAT
OR
FACE THE BEAR
114. Non-Profit View
• Pursuit of Opportunity
• Rapid Commitment
• Ability to Change & Adapt
• Multistage Decision Making
• Using Other People‟s Resources
• Managing Networks & Relationships
• Value Creation
115. For social service and arts organizations
remember innovation and being
entrepreneurial is as important to you as
a technology based business.
The alternative is the BEAR.
117. The Entrepreneurial Success (ES)
Formula
ES = [ Idea + (Men x Management x Markets)] x
Passion
leadership
effective teambuilding/teamwork
motivation and incentives
efficient decision making structure
appropriate management systems
conductive organizational culture
(climate)
117