Ideas and Strategy
PRESENTATION TO *** BUSINESS PLAN COMPETITION PARTICIPANTS
AT-CZG002-120199Coyne-MSTR
Today
• Developing an idea • Assessing your idea • Describing your strategy • A couple of wrinkles
3. How would I do things differently if I had perfect information?
4. Where are the search, order entry, and tracking costs a large percentage of total costs?
cost?
Could I offer my product at 5 times the cost if it had greater feature/function?
• Premium ice
cream
• A bank with home
cash delivery
Could I double my product depth or cut breadth in half?
2
Product idea tree
. . .radically modify existing products
Search for killer product ideas by exploring opportunities to . . .
. . . generate radical increases in existing product sales
AT-CZG002-120199Coyne-MSTR
. . . develop new products
Creative bundling to eliminate complements Radical distortions of key value equation components
New uses for existing products
Client
Costs
Raw material suppliers
2 Concentrate surplus from suppliers
Costs
AT-CZG002-120199Coyne-MSTR
Volume
4 Create new demand
5 Cooperate to capture surplus
• For what subgroup of users . . .
• For what subgroup of usages . . .
• Etc.
2. What do the Batman movie, roller blades, and Ben and Jerry’s have in common?
Hale Waihona Puke • PetSmart• Home decorator
• Baby Superstore
superstore
What input, if reduced by half the cost, would allow me to cut my price 20%?
• Zinc in batteries • Low-rate credit
New users for existing products
New ways to meet existing needs
Unexpected users
Heavy users
Potential users blocked by one obstacle
Potential users who differ in one way from current users
Stimulating new needs
3
Product idea tree
Radical distortion of key value equation components
Question
What would it take to make my product at half the cost?
cards for high
credit rating
• Industrial pawn shop
for small business lending
AT-CZG002-120199Coyne-MSTR
4
4 killer questions
1. What is the biggest hassle about this product?
6
Today
• Developing an idea • Assessing your idea
– How powerful? – How large?
Existing example
• Southwest
Airlines
• PC clones
Potential idea
• 6 packs of single-
use, lightweight, disposable umbrellas
Can I reduce by half or • Personal shopper • Discount realtors double my distribution • Mail order
AT-CZG002-120199Coyne-MSTR
1
Developing an idea
• Why brainstorming usually fails • 3 frameworks
– Product trees – 4 killer questions – The 5Cs model
AT-CZG002-120199Coyne-MSTR
AT-CZG002-120199Coyne-MSTR
5
The 5Cs model
Price Retailer
3 Capture surplus from customers
2 Concentrate surplus from channels
Costs
OEM
1 Compete for surplus