RECOGNIZING

OPPORTUNITY
WK 6
RECOGNIZING
OPPORTUNITY
▪ Creating meaningful solutions begin with gaining a deep understanding of
people’s needs.

▪ It is necessary to listen, observe, and being open to the unexpected

▪ An opportunity is a favorable set of circumstances that creates a need for a new product,
service or business
▪ An opportunity has four qualities:
▪ Attractive
▪ Timely
▪ Durable
▪ Anchored in a product or service or business that creates or adds value for its buyers

(Barringer & Ireland, 2009)

▪ Barringer & Ireland, 2009
 Environmental Dynamics

Economic Forces
Local economy
Change in spending pattern - Specific customer
Consumption level market - niche
market Opportunities
Social Forces New Products
Social and Cultural trends ---
Gap between what’s New Services
Demographic changes
Customer Problems available and what’s New Business
possible/wanted
Technology Advances
New technology
New uses of technology New Trends
Emerging technology

Political and Regulatory

Forces
New changes in law & rules
Politics

Barringer & Ireland, 2009

ECONOMIC FORCES -
EXAMPLES
▪ Economic forces affect conumers’ level of income Increasing income disparity
▪ Access to less expensive labor for products
▪ Increasing or decreasing energy prices
▪ Examples:
▪ Increase number of women in the work increased incomes More boutiques
▪ Furn are trying to cut costs entrepreneurs to help firms control costs: training sig zigma, quality
control, TQM

▪ …..
SOCIAL FORCES - EXAMPLE
▪ Changes in social trends provide opening for new business
▪ Formation of online communities and popularity of social media
▪ From wired phones to mobile phone
▪ Increasing awareness of environmental issues (green, clean) and health (e.g. organic, back to
nature), fair trade
▪ …..
▪ ……
TECHNOLOGY ADVANCES
▪ Rapid pace of technological change, it is vital that entreprenerus keep on top of how
technologies affect current and future business opportuniteis:
▪ Personal computing
▪ The internet
▪ Mobile phones
▪ Nano technology
▪ Biomaterials
▪ …..
POLITICAL AND
REGULATORY CHANGES
▪ Tax policy – gasoline, cigarettes, ..
▪ Health and safety regulation
▪ Energy policy
▪ Cyber security
▪ .....
▪ …..
PERSONAL
CHARACTERISTICS OF
ENTREPRENEURS/INNOVATO
RS Cognitive Factors
Prior Experience
opportunity recognition may be an innate skill or cognitive
in industry/community/university/etc process

“sixth sense” is called entrepreneurial alertness, which is

formally defined as the ability to notice things without
Social Network
engaging in deliberate search
People who build a substantial network of
social and professional contacts will be Cognitive Factors
exposed to more opportunities and ideas
than people with sparse networks Opportunity recognition may be, at least in part, a creative
process
JAVARA
JAVARA works across agricultural value chains from production to distribution in order to
preserve such biodiversity and bring community-based, organic products to broader markets. We
are proudly investing our time to scout, discover and relive the forgotten food biodiversity and
traditional techniques as well as the old recipes. Working with over 50,000 farmers and 2000
food artisans, selling over 600 premium artisan food products, JAVARA is currently known as
the leading social enterprise in Indonesia that works with a vast range of biodiverse
community-based organic food products using ethical principles.
https://www.javara.co.id/about-us/
GASOL
▪ https://www.gasolorganik.com/about-us/our-story

▪ Sepasang suami istri sepakat untuk menghabiskan masa tua dengan kembali ke kota kelahirannya,
Cianjur, kota tempat mereka dipertemukan dan menjalani masa kecil yang penuh kenangan manis,
sejak di bangku sekolah Taman Kanak-kanak hingga lulus Sekolah Dasar. Mereka memilih lahan di
pedesaan agar bisa tetap beraktivitas dengan bercocok tanam. Kegiatan ini sekaligus, mengembalikan
sang Istri –Ika Suryanawati- kepada dasar pendidikannya sebagai Sarjana Pertanian.
▪ Mereka membeli sebidang tanah di kaki gunung Gede, lahan yang subur dialiri mata air pegunungan.
Gasol nama desa itu merupakan lokasi penghasil padi Lokal Cianjur yang dikenal sebagai Beras
berkualitas. Mereka memulai bekerja sama dengan penduduk sekitar dan mengajak kembali kepada
pertanian alami, Pertanian zaman baheula, dengan menggunakan limbah organik dan kotoran hewan
sebagai penyubur tanah dan pohon-pohon berkhasiat sebagai pestisida nabati untuk pengendalian hama
penyakit tanaman. Model pertanian yang dikenal dengan istilah ORGANIK
REFLECTION: ASSESSING
OPPORTUNITIES
▪ Is it an idea or an opportunity?
▪ Is it a current or future opportunity?
▪ Has anyone else seized it?
▪ Is it distinctive and different from existing approaches?
▪ What resources would be required to make it happen?
▪ Is it compatible with my goals, interests, and experience?

http://akselerasi.id/ 16
TEKNIK-TEKNIK
ANALISIS PASAR
 TWO MAJOR RESEARCH METHODS:
QUALITATIVE AND QUANTITATIVE

▪ Qualitative: used to study highly complex and contingent phenomena where linkages and variables
are mostly unknown (e.g., what is the next new product)
▪ Quantitative: used to study “natural” phenomena where linkages and variables are mostly known
(e.g., what is the impact of advertising on sales)
▪ Often portrayed as an “either or” decision, but is actually more of a continuum and methods are
very complementary (ideally use mixed methods)

© Palmatier 18
SUMMARY OF 4 STAGES OF MARKETING
RESEARCH
Stage I Stage II Stage III Stage IV
Planning and Design Qualitative Assessment Quantitative Measurement Analysis and Implementation
Internal
Qualitative Quantitative
Assessment
& Planning
Research Survey
• Objective(s) of
• Interview • Sample Design
segmentation
Materials ∙
• Resources Development ∙ Analysis
• Constraints ∙ ∙
∙ • Cluster Analysis

• Qualitative Data • Portfolio Analysis

Collection • Questionnaire •Conjoint Analysis Implementation
Database ∙ Development
Review ∙ ∙
• Primary data ∙ • Call Center
• “Deep needs”
already available ∙
Identification • Web
• Secondary data ∙
• Sales call
∙ Classification
patterns
• … • Data Collection Tool
• Decision-Making
∙ Development • Promotion
Process
∙ • Discriminant
• ….
Assessment
∙ function
Prototype ∙
Implementation ∙ • Binary tree
Exercises • …
• What ifs?
• Relevant groups
involved?
19
• ….. © Palmatier
 QUANTITATIVE RESEARCH
METHODS
▪ Deductive approach where theories/ideas are tested
▪ Data and analysis focused, larger sample sizes
(psychology, science, engineering, economics)
▪ Best later in the process to select among proposals and
fine tune or test ideas found during qualitative stage
▪ Process (depends on question)
1. Pick model/analysis (e.g., experiment, multivariate, choice model)
2. Pick sampling approach and data source (e.g., random, stratified, survey,
CRM)
3. Analysis
▪ Check and cleanup data (make sense, outliers, problems, etc.)
▪ Run models and interpret
▪ Sensitivity, robustness, holdout

© Palmatier 20
 QUANTITATIVE ANALYSES/MODELS
▪ Data reduction (simplify)
▪ Factor analysis (find common factors in data, group variables)
▪ Cluster analysis, latent class (find common segments in data, group
people)
▪ Link variables to outcomes (identify cause)
▪ Experiment (link treatment to outcome, strong causality)
▪ Multiple regression (link many predictors to continuous outcome)
▪ Choice models (link predictors to an individual’s discrete choice)
▪ Find tradeoffs among variables (optimize)
▪ Conjoint analysis (determine an individual’s unit-less tradeoff among
unlike features; size, price, status)
▪ Response models (find level of inputs for optimum output)
▪ Customer lifetime value analysis (accounts for customer, time, and
dynamic differences to make tradeoffs)

© Palmatier 21
 DATA: A GOOD SAMPLE IS KEY TO
VALID RESULTS
▪ Random sample
▪ Removes alternative explanations, averages out noise
▪ Random-stratified sample (when everyone is not equal)

▪ Law of large numbers

▪ Power and statistically significance
▪ Probability > 95% not due to chance

▪ Qualifying respondents
▪ Knowledgeable
▪ Population, potential customers, customers, lost customers

▪ Robustness and sensitivity (hold outs, retests)

▪ Sources (survey, lists, customers, intercept, CRM database, secondary
sources, etc.)
▪ Survey
▪ Multi-items, 7 point scale, avoid yes/no, center of scale (use adjectives to move mean)
▪ Simple, single idea questions (no and/or/if/buts)

© Palmatier
22
 QUALITATIVE RESEARCH
METHODS
▪ Inductive approach where theories/ideas emerge
▪ Softer less structured methods (sociology, anthropology), small
sample sizes, more open to researcher induced biases
▪ Best early in the process to help refine ideas; when you don’t
even know what to study (brainstorming, defining pool of
attributes)
▪ Process
1. Pick method (case study, interview, focus group, etc.)
2. Pick sampling approach (deviant, snowballing, etc.)
3. Code and analyze data for themes, frameworks, and theories (visual,
summarize, NVivo, Atlas.ti)

© Palmatier 23
 QUALITATIVE METHODS AND DATA

▪ Methods
▪ Case study: single business situation, great for story telling, poor
generalizability, very popular
▪ Interviews: structured/unstructured, flexible, time effective
▪ Observation: slow, finds the unexpected, undirected
▪ Historical/literature review: easy and cheap start, dated

▪ Data or sampling approach

▪ Deviant case sampling: In Search of Excellence
▪ Intensity sampling: Good examples but not outliers
▪ Heterogeneous sampling: Diverse to cover domain
▪ Snowball sampling: ask person for referral when hard to find exemplars
▪ Opportunistic sampling: easy and quick

© Palmatier 24
QUALITATIVE EXERCISE

▪ Research question: Why do people get an EMBA?

▪ Process
▪ Pick method: Semi-structured interview
▪ Start broad and open ended
▪ Why, when, what, where
▪ Ask follow-up questions (follow the thread)
▪ Pick sampling approach: intensity sampling
▪ Code and analyze data: find themes and summarize

▪ In small groups: take 5 minutes to conduct interview to “answer” research

question

© Palmatier 25
FIELD RESEARCH
▪ Is a qualitative method of data collection aimed at
understanding, observing and interacting with people
in their natural settings (Blackstone, 2012.)
▪ is commonly referred to as ethnography (Atkinson et
al, 2001), literally means producing a picture of the
way of life of some group
▪ Field research or ethnography involves a combination
of methods of which participant observation may be
the main one (Blaikie, 2010)
 It is the work of collecting data, information and piles of research about
whatever it is that needs to be done from primary or secondary sources:

• Participant observation :
e.g. Researchers/innovators/designers go out to the field, observing the actual experiences of
users,
• Interviews:
e.g. Researchers talking to them and building connections to the real problems.
• Document/artifact analysis: books, journals, statistics data, etc

Atkinson, 2012.
Taken from
http://2012books.lardbucket.org/books/sociological-inquiry-principles-qualitative-and-quantitative-methods/s13-01-field-researc 27
h-what-is-it-and-.html
▪ In the early stage of research, discovery/inspiration phase, field
research will help to:
▪ Understand the problem and immersing oneself in the context of the problem and of people needs

▪ Learn and explore related ideas of problem solutions

▪ Ask questions: who else in the world has similar problem? who has solved a problem similar to
mine? what else in the world has similar solutions?
ETHNOGRAPHY

▪ Ethnography

The video showed short description of ethnography as one type of field

research that might help us in designing solutions that meet the needs of users
or understand the users’ pains and gains
ETHNOGRAPHY

How to do Ethnography

The video showed ethnography as a technique that require a researcher to go out

of the building to understand users
LEARN FROM USERS
▪ Aims: gaining in depth insight into user’s needs and motivations
▪ Techniques: Observations, interviews
▪ Things to do:
▪ Brainstorm interesting people to meet
▪ Think of extremes: try to include also users that are extremely familiar or completely unfamiliar with
the problems or products
▪ Plan the interactions and logistics
▪ Invite participants
▪ Create a trusting atmosphere
▪ Pay attention to the environment
▪ Capture notes
▪ Take photographs

Taken from Acumen HCD Workshop

LEARN FROM EXPERTS
▪ Aims: gaining access to in-depth knowledge in a certain area of expertise
▪ Techniques: Interview
▪ Things to do
▪ Choose your angle: are you looking for someone with a radical opinion? Do you want to gain a more
historical overview of what’s worked and what hasn’t?
▪ Set up for a productive conversation: asking experts to actively help you on an early concept

Taken from Acumen HCD Workshop

PRACTICE EMPATHY IN
CONTEXT
▪ Aims: learning from what’s around
▪ Techniques: Observation and experiencing (Note: approach your observation with an open mind
and imagine this as the first time you have gone through this experience. Look for details you may have
overlooked before)
▪ Things to do
▪ Plan your observation: choose an experience that can inform your design challenge)
▪ Capture what you see: maps the experience from beginning to an end, how did you feel at different
parts of your experience? What was unexpected? challenging? seamless?
▪ Reflect on what you’ve observed

Taken from Acumen HCD Workshop

SEEK INSPIRATION IN
ANALOGUES
▪ Aims: gaining inspiration or fresh perspective from a different context of experience
▪ Techniques: observing and experiencing
▪ Things to do:
▪ Brainstorm adjacent experiences
▪ Make arrangements
▪ Just take it in::

Taken from Acumen HCD Workshop

DIG DEEPER
RESEARCH
EXISTING
INITIATIVES/PROG
RAMS
▪ Aims: gaining inspiration or fresh
perspective or lesson learnt from
existing programs
▪ Sources:
▪ Patent databases
▪ Crowdsource platform
▪ Research results

Taken from UNICEF Design Challenge

36
TALK TO EXPERTS
▪ Aims: gaining inspiration or
fresh perspective from an
expert

Taken from UNICEF Design Challenge