Table of Contents
Sectors, industries, markets, segments and niches ............................................................ 4
Markets, -segments, -niches ..................................................................................................... 6
Vertical markets....................................................................................................................... 6
Business-to-business markets ........................................................................................... 6
Performace criteria ........................................................................................................... 8
Value proposition ............................................................................................................. 9
Creative destruction ....................................................................................................... 10
Supply chains and workflows .......................................................................................... 11
The whole product ................................................................................................................. 12
Standards ....................................................................................................................... 13
Network effects and lock-in ............................................................................................ 16
Network effects ..................................................................................................................... 16
Indirect network effects ......................................................................................................... 17
Two-sided network effects ..................................................................................................... 17
Negative network effects ....................................................................................................... 17
Economies of scale ................................................................................................................. 18
Diseconomies of scale ............................................................................................................ 18
Lock-in, switching costs .......................................................................................................... 18
Regional clusters ............................................................................................................ 19
Clusters ................................................................................................................................. 19
San Francisco Bay Area – Silicon Valley ................................................................................... 20
(Actors in the) ecosystems .............................................................................................. 20
Ecosystemplayers .................................................................................................................. 21
Your role in the value chain .................................................................................................... 21
Keystone companies .............................................................................................................. 22
Module players ...................................................................................................................... 23
The distribution channel ................................................................................................. 24
Staff functions of the ecosystem ..................................................................................... 24
Staff functions ....................................................................................................................... 24
Government .......................................................................................................................... 24
Vlaanderen 2019 .................................................................................................................... 25
Het Fonds Wetenschappelijk Onderzoek (FWO) ...................................................................... 25
, Usage of business ecosystem ................................................................................................. 26
Ecosystem maps .................................................................................................................... 26
Conclusions .................................................................................................................... 26
(Elementen van) entrepreneurial strategy ....................................................................... 27
Strategy ................................................................................................................................. 27
What do you bring to the table? ............................................................................................. 27
Patents .................................................................................................................................. 29
Assets .................................................................................................................................... 29
Strategies to gradually build hard-to-copy unique assets ........................................................ 30
How market-ready are your core assets? ................................................................................ 30
Freedom to opperate ............................................................................................................. 31
Conclusions on core assets ..................................................................................................... 31
Complementary assets ........................................................................................................... 32
How to compete depends on uniqueness of assets and dependance on complementary assets 32
Ideas factories ............................................................................................................................................. 33
Greenfield competition ............................................................................................................................... 34
The attacker’s advantage ............................................................................................................................ 34
Reputation-based ideas trading .................................................................................................................. 35
The role of industrial partners ................................................................................................ 35
Outsourcing ........................................................................................................................... 35
Who is your most important customer?.................................................................................. 36
Upstream flow of needs and wants ........................................................................................ 36
Assessing your project .................................................................................................... 36
Strategy ................................................................................................................................. 36
Assessing (and comparing) projects ........................................................................................ 37
Is it an attractive industry? ..................................................................................................... 37
Project complexity ................................................................................................................. 38
Project validation ................................................................................................................... 38
Assessing and ranking projects ....................................................................................... 39
Strategies for uncertain markets ............................................................................................ 40
Some ways to implement adaptive stratergies: ....................................................................... 40
Iteration ................................................................................................................................ 40
Funding start-ups ........................................................................................................... 41
Funding growth...................................................................................................................... 41
Biotech and finance ............................................................................................................... 42
Conclusions ........................................................................................................................... 42
Sources of funds: an overview ................................................................................................ 42
, Cashflow possitive....................................................................................................................................... 42
Supplier and customer credit ...................................................................................................................... 43
Banks ........................................................................................................................................................... 43
Partners, alliances ....................................................................................................................................... 43
Risk capital ............................................................................................................................ 44
Informal risk capital..................................................................................................................................... 44
Venture capital ............................................................................................................................................ 44
Central issue: dilution ................................................................................................................................. 44
The venture capitalist.................................................................................................................................. 45
Different VC leagues ................................................................................................................................... 45
Business angles ...................................................................................................................... 46
The venture capitalist… .......................................................................................................... 46
Funding stages ....................................................................................................................... 46
Investment rounds and validation .......................................................................................... 47
Due diligence ......................................................................................................................... 48
Term sheets ........................................................................................................................... 48
Exits ............................................................................................................................... 49
IPO: initial public offering ....................................................................................................... 49
Trade sale .............................................................................................................................. 49
Crowdfunding................................................................................................................. 50
What stuck you? .................................................................................................................... 50
Limits to crowdfunding .......................................................................................................... 50
The saga of enfocus ........................................................................................................ 50
, Understanding industry
• Why bother?
o assessing the feasibility of ideas and innovations is a major part of the job of
an Idea and Innovation manager
o Understanding the business environment and applicable business dynamics is
an important requirement for this assessment
• Objectives
o understanding the architecture of industries
o understanding how these concepts translate into important elements for
company strategy
o = ‘meso-economics’
Meso-economics: between micro- and macro-economics
The economic dynamics at the level of an economic sector
Sectors, industries, markets, segments and niches
• in which industry(ies)/market(s)/segment(s) is your company active?
• what are the implications of this for your innovation strategy, marketing, product
development,...
• three kinds of subdivisions: sectors, industries, markets
top level subdivision of economic activity
Primary Sector
• extracts or harvests products from the earth: production of raw material and basic
foods.
• Activities: agriculture, mining, forestry, farming, grazing, hunting and gathering,
fishing, and quarrying.
• + the packaging and processing of the raw material associated with this sector
Secondary Sector
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