Background: #fff
Foreground: #000
PrimaryPale: #8cf
PrimaryLight: #18f
PrimaryMid: #04b
PrimaryDark: #014
SecondaryPale: #ffc
SecondaryLight: #fe8
SecondaryMid: #db4
SecondaryDark: #841
TertiaryPale: #eee
TertiaryLight: #ccc
TertiaryMid: #999
TertiaryDark: #666
Error: #f88
<div class='toolbar' macro='toolbar [[ToolbarCommands::EditToolbar]]'></div>
<div class='title' macro='view title'></div>
<div class='editor' macro='edit title'></div>
<div macro='annotations'></div>
<div class='editor' macro='edit text'></div>
<div class='editor' macro='edit tags'></div><div class='editorFooter'><span macro='message views.editor.tagPrompt'></span><span macro='tagChooser excludeLists'></span></div>
To get started with this blank [[TiddlyWiki]], you'll need to modify the following tiddlers:
* [[SiteTitle]] & [[SiteSubtitle]]: The title and subtitle of the site, as shown above (after saving, they will also appear in the browser title bar)
* [[MainMenu]]: The menu (usually on the left)
* [[DefaultTiddlers]]: Contains the names of the tiddlers that you want to appear when the TiddlyWiki is opened
You'll also need to enter your username for signing your edits: <<option txtUserName>>
<link rel='alternate' type='application/rss+xml' title='RSS' href='index.xml' />
These [[InterfaceOptions]] for customising [[TiddlyWiki]] are saved in your browser

Your username for signing your edits. Write it as a [[WikiWord]] (eg [[JoeBloggs]])

<<option txtUserName>>
<<option chkSaveBackups>> [[SaveBackups]]
<<option chkAutoSave>> [[AutoSave]]
<<option chkRegExpSearch>> [[RegExpSearch]]
<<option chkCaseSensitiveSearch>> [[CaseSensitiveSearch]]
<<option chkAnimate>> [[EnableAnimations]]

Also see [[AdvancedOptions]]
<div class='header' role='banner' macro='gradient vert [[ColorPalette::PrimaryLight]] [[ColorPalette::PrimaryMid]]'>
<div class='headerShadow'>
<span class='siteTitle' refresh='content' tiddler='SiteTitle'></span>&nbsp;
<span class='siteSubtitle' refresh='content' tiddler='SiteSubtitle'></span>
<div class='headerForeground'>
<span class='siteTitle' refresh='content' tiddler='SiteTitle'></span>&nbsp;
<span class='siteSubtitle' refresh='content' tiddler='SiteSubtitle'></span>
<div id='mainMenu' role='navigation' refresh='content' tiddler='MainMenu'></div>
<div id='sidebar'>
<div id='sidebarOptions' role='navigation' refresh='content' tiddler='SideBarOptions'></div>
<div id='sidebarTabs' role='complementary' refresh='content' force='true' tiddler='SideBarTabs'></div>
<div id='displayArea' role='main'>
<div id='messageArea'></div>
<div id='tiddlerDisplay'></div>
body {background:[[ColorPalette::Background]]; color:[[ColorPalette::Foreground]];}

a {color:[[ColorPalette::PrimaryMid]];}
a:hover {background-color:[[ColorPalette::PrimaryMid]]; color:[[ColorPalette::Background]];}
a img {border:0;}

h1,h2,h3,h4,h5,h6 {color:[[ColorPalette::SecondaryDark]]; background:transparent;}
h1 {border-bottom:2px solid [[ColorPalette::TertiaryLight]];}
h2,h3 {border-bottom:1px solid [[ColorPalette::TertiaryLight]];}

.button {color:[[ColorPalette::PrimaryDark]]; border:1px solid [[ColorPalette::Background]];}
.button:hover {color:[[ColorPalette::PrimaryDark]]; background:[[ColorPalette::SecondaryLight]]; border-color:[[ColorPalette::SecondaryMid]];}
.button:active {color:[[ColorPalette::Background]]; background:[[ColorPalette::SecondaryMid]]; border:1px solid [[ColorPalette::SecondaryDark]];}

.header {background:[[ColorPalette::PrimaryMid]];}
.headerShadow {color:[[ColorPalette::Foreground]];}
.headerShadow a {font-weight:normal; color:[[ColorPalette::Foreground]];}
.headerForeground {color:[[ColorPalette::Background]];}
.headerForeground a {font-weight:normal; color:[[ColorPalette::PrimaryPale]];}

.tabSelected {color:[[ColorPalette::PrimaryDark]];
	border-left:1px solid [[ColorPalette::TertiaryLight]];
	border-top:1px solid [[ColorPalette::TertiaryLight]];
	border-right:1px solid [[ColorPalette::TertiaryLight]];
.tabUnselected {color:[[ColorPalette::Background]]; background:[[ColorPalette::TertiaryMid]];}
.tabContents {color:[[ColorPalette::PrimaryDark]]; background:[[ColorPalette::TertiaryPale]]; border:1px solid [[ColorPalette::TertiaryLight]];}
.tabContents .button {border:0;}

#sidebar {}
#sidebarOptions input {border:1px solid [[ColorPalette::PrimaryMid]];}
#sidebarOptions .sliderPanel {background:[[ColorPalette::PrimaryPale]];}
#sidebarOptions .sliderPanel a {border:none;color:[[ColorPalette::PrimaryMid]];}
#sidebarOptions .sliderPanel a:hover {color:[[ColorPalette::Background]]; background:[[ColorPalette::PrimaryMid]];}
#sidebarOptions .sliderPanel a:active {color:[[ColorPalette::PrimaryMid]]; background:[[ColorPalette::Background]];}

.wizard {background:[[ColorPalette::PrimaryPale]]; border:1px solid [[ColorPalette::PrimaryMid]];}
.wizard h1 {color:[[ColorPalette::PrimaryDark]]; border:none;}
.wizard h2 {color:[[ColorPalette::Foreground]]; border:none;}
.wizardStep {background:[[ColorPalette::Background]]; color:[[ColorPalette::Foreground]];
	border:1px solid [[ColorPalette::PrimaryMid]];}
.wizardStep.wizardStepDone {background:[[ColorPalette::TertiaryLight]];}
.wizardFooter {background:[[ColorPalette::PrimaryPale]];}
.wizardFooter .status {background:[[ColorPalette::PrimaryDark]]; color:[[ColorPalette::Background]];}
.wizard .button {color:[[ColorPalette::Foreground]]; background:[[ColorPalette::SecondaryLight]]; border: 1px solid;
	border-color:[[ColorPalette::SecondaryPale]] [[ColorPalette::SecondaryDark]] [[ColorPalette::SecondaryDark]] [[ColorPalette::SecondaryPale]];}
.wizard .button:hover {color:[[ColorPalette::Foreground]]; background:[[ColorPalette::Background]];}
.wizard .button:active {color:[[ColorPalette::Background]]; background:[[ColorPalette::Foreground]]; border: 1px solid;
	border-color:[[ColorPalette::PrimaryDark]] [[ColorPalette::PrimaryPale]] [[ColorPalette::PrimaryPale]] [[ColorPalette::PrimaryDark]];}

.wizard .notChanged {background:transparent;}
.wizard .changedLocally {background:#80ff80;}
.wizard .changedServer {background:#8080ff;}
.wizard .changedBoth {background:#ff8080;}
.wizard .notFound {background:#ffff80;}
.wizard .putToServer {background:#ff80ff;}
.wizard .gotFromServer {background:#80ffff;}

#messageArea {border:1px solid [[ColorPalette::SecondaryMid]]; background:[[ColorPalette::SecondaryLight]]; color:[[ColorPalette::Foreground]];}
#messageArea .button {color:[[ColorPalette::PrimaryMid]]; background:[[ColorPalette::SecondaryPale]]; border:none;}

.popupTiddler {background:[[ColorPalette::TertiaryPale]]; border:2px solid [[ColorPalette::TertiaryMid]];}

.popup {background:[[ColorPalette::TertiaryPale]]; color:[[ColorPalette::TertiaryDark]]; border-left:1px solid [[ColorPalette::TertiaryMid]]; border-top:1px solid [[ColorPalette::TertiaryMid]]; border-right:2px solid [[ColorPalette::TertiaryDark]]; border-bottom:2px solid [[ColorPalette::TertiaryDark]];}
.popup hr {color:[[ColorPalette::PrimaryDark]]; background:[[ColorPalette::PrimaryDark]]; border-bottom:1px;}
.popup li.disabled {color:[[ColorPalette::TertiaryMid]];}
.popup li a, .popup li a:visited {color:[[ColorPalette::Foreground]]; border: none;}
.popup li a:hover {background:[[ColorPalette::SecondaryLight]]; color:[[ColorPalette::Foreground]]; border: none;}
.popup li a:active {background:[[ColorPalette::SecondaryPale]]; color:[[ColorPalette::Foreground]]; border: none;}
.popupHighlight {background:[[ColorPalette::Background]]; color:[[ColorPalette::Foreground]];}
.listBreak div {border-bottom:1px solid [[ColorPalette::TertiaryDark]];}

.tiddler .defaultCommand {font-weight:bold;}

.shadow .title {color:[[ColorPalette::TertiaryDark]];}

.title {color:[[ColorPalette::SecondaryDark]];}
.subtitle {color:[[ColorPalette::TertiaryDark]];}

.toolbar {color:[[ColorPalette::PrimaryMid]];}
.toolbar a {color:[[ColorPalette::TertiaryLight]];}
.selected .toolbar a {color:[[ColorPalette::TertiaryMid]];}
.selected .toolbar a:hover {color:[[ColorPalette::Foreground]];}

.tagging, .tagged {border:1px solid [[ColorPalette::TertiaryPale]]; background-color:[[ColorPalette::TertiaryPale]];}
.selected .tagging, .selected .tagged {background-color:[[ColorPalette::TertiaryLight]]; border:1px solid [[ColorPalette::TertiaryMid]];}
.tagging .listTitle, .tagged .listTitle {color:[[ColorPalette::PrimaryDark]];}
.tagging .button, .tagged .button {border:none;}

.footer {color:[[ColorPalette::TertiaryLight]];}
.selected .footer {color:[[ColorPalette::TertiaryMid]];}

.error, .errorButton {color:[[ColorPalette::Foreground]]; background:[[ColorPalette::Error]];}
.warning {color:[[ColorPalette::Foreground]]; background:[[ColorPalette::SecondaryPale]];}
.lowlight {background:[[ColorPalette::TertiaryLight]];}

.zoomer {background:none; color:[[ColorPalette::TertiaryMid]]; border:3px solid [[ColorPalette::TertiaryMid]];}

.imageLink, #displayArea .imageLink {background:transparent;}

.annotation {background:[[ColorPalette::SecondaryLight]]; color:[[ColorPalette::Foreground]]; border:2px solid [[ColorPalette::SecondaryMid]];}

.viewer .listTitle {list-style-type:none; margin-left:-2em;}
.viewer .button {border:1px solid [[ColorPalette::SecondaryMid]];}
.viewer blockquote {border-left:3px solid [[ColorPalette::TertiaryDark]];}

.viewer table, table.twtable {border:2px solid [[ColorPalette::TertiaryDark]];}
.viewer th, .viewer thead td, .twtable th, .twtable thead td {background:[[ColorPalette::SecondaryMid]]; border:1px solid [[ColorPalette::TertiaryDark]]; color:[[ColorPalette::Background]];}
.viewer td, .viewer tr, .twtable td, .twtable tr {border:1px solid [[ColorPalette::TertiaryDark]];}

.viewer pre {border:1px solid [[ColorPalette::SecondaryLight]]; background:[[ColorPalette::SecondaryPale]];}
.viewer code {color:[[ColorPalette::SecondaryDark]];}
.viewer hr {border:0; border-top:dashed 1px [[ColorPalette::TertiaryDark]]; color:[[ColorPalette::TertiaryDark]];}

.highlight, .marked {background:[[ColorPalette::SecondaryLight]];}

.editor input {border:1px solid [[ColorPalette::PrimaryMid]];}
.editor textarea {border:1px solid [[ColorPalette::PrimaryMid]]; width:100%;}
.editorFooter {color:[[ColorPalette::TertiaryMid]];}
.readOnly {background:[[ColorPalette::TertiaryPale]];}

#backstageArea {background:[[ColorPalette::Foreground]]; color:[[ColorPalette::TertiaryMid]];}
#backstageArea a {background:[[ColorPalette::Foreground]]; color:[[ColorPalette::Background]]; border:none;}
#backstageArea a:hover {background:[[ColorPalette::SecondaryLight]]; color:[[ColorPalette::Foreground]]; }
#backstageArea a.backstageSelTab {background:[[ColorPalette::Background]]; color:[[ColorPalette::Foreground]];}
#backstageButton a {background:none; color:[[ColorPalette::Background]]; border:none;}
#backstageButton a:hover {background:[[ColorPalette::Foreground]]; color:[[ColorPalette::Background]]; border:none;}
#backstagePanel {background:[[ColorPalette::Background]]; border-color: [[ColorPalette::Background]] [[ColorPalette::TertiaryDark]] [[ColorPalette::TertiaryDark]] [[ColorPalette::TertiaryDark]];}
.backstagePanelFooter .button {border:none; color:[[ColorPalette::Background]];}
.backstagePanelFooter .button:hover {color:[[ColorPalette::Foreground]];}
#backstageCloak {background:[[ColorPalette::Foreground]]; opacity:0.6; filter:alpha(opacity=60);}
* html .tiddler {height:1%;}

body {font-size:.75em; font-family:arial,helvetica; margin:0; padding:0;}

h1,h2,h3,h4,h5,h6 {font-weight:bold; text-decoration:none;}
h1,h2,h3 {padding-bottom:1px; margin-top:1.2em;margin-bottom:0.3em;}
h4,h5,h6 {margin-top:1em;}
h1 {font-size:1.35em;}
h2 {font-size:1.25em;}
h3 {font-size:1.1em;}
h4 {font-size:1em;}
h5 {font-size:.9em;}

hr {height:1px;}

a {text-decoration:none;}

dt {font-weight:bold;}

ol {list-style-type:decimal;}
ol ol {list-style-type:lower-alpha;}
ol ol ol {list-style-type:lower-roman;}
ol ol ol ol {list-style-type:decimal;}
ol ol ol ol ol {list-style-type:lower-alpha;}
ol ol ol ol ol ol {list-style-type:lower-roman;}
ol ol ol ol ol ol ol {list-style-type:decimal;}

.txtOptionInput {width:11em;}

#contentWrapper .chkOptionInput {border:0;}

.externalLink {text-decoration:underline;}

.indent {margin-left:3em;}
.outdent {margin-left:3em; text-indent:-3em;}
code.escaped {white-space:nowrap;}

.tiddlyLinkExisting {font-weight:bold;}
.tiddlyLinkNonExisting {font-style:italic;}

/* the 'a' is required for IE, otherwise it renders the whole tiddler in bold */
a.tiddlyLinkNonExisting.shadow {font-weight:bold;}

#mainMenu .tiddlyLinkExisting,
	#mainMenu .tiddlyLinkNonExisting,
	#sidebarTabs .tiddlyLinkNonExisting {font-weight:normal; font-style:normal;}
#sidebarTabs .tiddlyLinkExisting {font-weight:bold; font-style:normal;}

.header {position:relative;}
.header a:hover {background:transparent;}
.headerShadow {position:relative; padding:4.5em 0 1em 1em; left:-1px; top:-1px;}
.headerForeground {position:absolute; padding:4.5em 0 1em 1em; left:0; top:0;}

.siteTitle {font-size:3em;}
.siteSubtitle {font-size:1.2em;}

#mainMenu {position:absolute; left:0; width:10em; text-align:right; line-height:1.6em; padding:1.5em 0.5em 0.5em 0.5em; font-size:1.1em;}

#sidebar {position:absolute; right:3px; width:16em; font-size:.9em;}
#sidebarOptions {padding-top:0.3em;}
#sidebarOptions a {margin:0 0.2em; padding:0.2em 0.3em; display:block;}
#sidebarOptions input {margin:0.4em 0.5em;}
#sidebarOptions .sliderPanel {margin-left:1em; padding:0.5em; font-size:.85em;}
#sidebarOptions .sliderPanel a {font-weight:bold; display:inline; padding:0;}
#sidebarOptions .sliderPanel input {margin:0 0 0.3em 0;}
#sidebarTabs .tabContents {width:15em; overflow:hidden;}

.wizard {padding:0.1em 1em 0 2em;}
.wizard h1 {font-size:2em; font-weight:bold; background:none; padding:0; margin:0.4em 0 0.2em;}
.wizard h2 {font-size:1.2em; font-weight:bold; background:none; padding:0; margin:0.4em 0 0.2em;}
.wizardStep {padding:1em 1em 1em 1em;}
.wizard .button {margin:0.5em 0 0; font-size:1.2em;}
.wizardFooter {padding:0.8em 0.4em 0.8em 0;}
.wizardFooter .status {padding:0 0.4em; margin-left:1em;}
.wizard .button {padding:0.1em 0.2em;}

#messageArea {position:fixed; top:2em; right:0; margin:0.5em; padding:0.5em; z-index:2000; _position:absolute;}
.messageToolbar {display:block; text-align:right; padding:0.2em;}
#messageArea a {text-decoration:underline;}

.tiddlerPopupButton {padding:0.2em;}
.popupTiddler {position: absolute; z-index:300; padding:1em; margin:0;}

.popup {position:absolute; z-index:300; font-size:.9em; padding:0; list-style:none; margin:0;}
.popup .popupMessage {padding:0.4em;}
.popup hr {display:block; height:1px; width:auto; padding:0; margin:0.2em 0;}
.popup li.disabled {padding:0.4em;}
.popup li a {display:block; padding:0.4em; font-weight:normal; cursor:pointer;}
.listBreak {font-size:1px; line-height:1px;}
.listBreak div {margin:2px 0;}

.tabset {padding:1em 0 0 0.5em;}
.tab {margin:0 0 0 0.25em; padding:2px;}
.tabContents {padding:0.5em;}
.tabContents ul, .tabContents ol {margin:0; padding:0;}
.txtMainTab .tabContents li {list-style:none;}
.tabContents li.listLink { margin-left:.75em;}

#contentWrapper {display:block;}
#splashScreen {display:none;}

#displayArea {margin:1em 17em 0 14em;}

.toolbar {text-align:right; font-size:.9em;}

.tiddler {padding:1em 1em 0;}

.missing .viewer,.missing .title {font-style:italic;}

.title {font-size:1.6em; font-weight:bold;}

.missing .subtitle {display:none;}
.subtitle {font-size:1.1em;}

.tiddler .button {padding:0.2em 0.4em;}

.tagging {margin:0.5em 0.5em 0.5em 0; float:left; display:none;}
.isTag .tagging {display:block;}
.tagged {margin:0.5em; float:right;}
.tagging, .tagged {font-size:0.9em; padding:0.25em;}
.tagging ul, .tagged ul {list-style:none; margin:0.25em; padding:0;}
.tagClear {clear:both;}

.footer {font-size:.9em;}
.footer li {display:inline;}

.annotation {padding:0.5em; margin:0.5em;}

* html .viewer pre {width:99%; padding:0 0 1em 0;}
.viewer {line-height:1.4em; padding-top:0.5em;}
.viewer .button {margin:0 0.25em; padding:0 0.25em;}
.viewer blockquote {line-height:1.5em; padding-left:0.8em;margin-left:2.5em;}
.viewer ul, .viewer ol {margin-left:0.5em; padding-left:1.5em;}

.viewer table, table.twtable {border-collapse:collapse; margin:0.8em 1.0em;}
.viewer th, .viewer td, .viewer tr,.viewer caption,.twtable th, .twtable td, .twtable tr,.twtable caption {padding:3px;}
table.listView {font-size:0.85em; margin:0.8em 1.0em;}
table.listView th, table.listView td, table.listView tr {padding:0 3px 0 3px;}

.viewer pre {padding:0.5em; margin-left:0.5em; font-size:1.2em; line-height:1.4em; overflow:auto;}
.viewer code {font-size:1.2em; line-height:1.4em;}

.editor {font-size:1.1em;}
.editor input, .editor textarea {display:block; width:100%; font:inherit;}
.editorFooter {padding:0.25em 0; font-size:.9em;}
.editorFooter .button {padding-top:0; padding-bottom:0;}

.fieldsetFix {border:0; padding:0; margin:1px 0px;}

.zoomer {font-size:1.1em; position:absolute; overflow:hidden;}
.zoomer div {padding:1em;}

* html #backstage {width:99%;}
* html #backstageArea {width:99%;}
#backstageArea {display:none; position:relative; overflow: hidden; z-index:150; padding:0.3em 0.5em;}
#backstageToolbar {position:relative;}
#backstageArea a {font-weight:bold; margin-left:0.5em; padding:0.3em 0.5em;}
#backstageButton {display:none; position:absolute; z-index:175; top:0; right:0;}
#backstageButton a {padding:0.1em 0.4em; margin:0.1em;}
#backstage {position:relative; width:100%; z-index:50;}
#backstagePanel {display:none; z-index:100; position:absolute; width:90%; margin-left:3em; padding:1em;}
.backstagePanelFooter {padding-top:0.2em; float:right;}
.backstagePanelFooter a {padding:0.2em 0.4em;}
#backstageCloak {display:none; z-index:20; position:absolute; width:100%; height:100px;}

.whenBackstage {display:none;}
.backstageVisible .whenBackstage {display:block;}
StyleSheet for use when a translation requires any css style changes.
This StyleSheet can be used directly by languages such as Chinese, Japanese and Korean which need larger font sizes.
body {font-size:0.8em;}
#sidebarOptions {font-size:1.05em;}
#sidebarOptions a {font-style:normal;}
#sidebarOptions .sliderPanel {font-size:0.95em;}
.subtitle {font-size:0.8em;}
.viewer table.listView {font-size:0.95em;}
@media print {
#mainMenu, #sidebar, #messageArea, .toolbar, #backstageButton, #backstageArea {display: none !important;}
#displayArea {margin: 1em 1em 0em;}
noscript {display:none;} /* Fixes a feature in Firefox where print preview displays the noscript content */
<div class='toolbar' role='navigation' macro='toolbar [[ToolbarCommands::ViewToolbar]]'></div>
<div class='title' macro='view title'></div>
<div class='subtitle'><span macro='view modifier link'></span>, <span macro='view modified date'></span> (<span macro='message views.wikified.createdPrompt'></span> <span macro='view created date'></span>)</div>
<div class='tagging' macro='tagging'></div>
<div class='tagged' macro='tags'></div>
<div class='viewer' macro='view text wikified'></div>
<div class='tagClear'></div>
The strategic triangle addresses the main drivers of a [[Competitive advantage]]. The goal of this framework is to address the following four question regarding the underlying drivers of the competitive advantage:

1) Is the price/benefit ratio (also called 'value for money') that we offer better than the price/benefit ratio of our best competitor?
2) Is the value that we offer to our customers perceivable and important to them?
3) Are our costs for making the product (or service) lower than the cost that we incur?
4) Is this advantageous position sustainable into the future?

<img src="/static/files/MBI/Module%208/strategictriangle.PNG" width=400>
In [[How you make the sale]] a trial close is defined as an agreement trhat something has been solved. The agreement is the close. You are closing on the proposition that "I have solved this part of your problem"

* What do you think?
* So, how does that sound?
* Does our proposal solve your need?
For [[Independent events]] it is simple multiplication of each choice:
P(plain chocolate) * P(brown eyes) = 0.2 X 0.3 = 0.06
<img src="/static/files/MBI/Module%207/probabilitytreeindependent.PNG" width=600>

For [[Dependent events]] it is using conditional probability. 
P(Woman) = P(Woman|Red) + P(Woman|Blue) + P(Woman|Yellow)
<img src="/static/files/MBI/Module%207/probabilitytreedependent.PNG" width=500>

Part of [[M7-Quantitative Decision Methods-S2 - Probability and decision trees]]
In [[Marketing Strategy and Organization: Building Sustainable Business]] some tools are mentioned to conduct a weakness audit. The most important question to answer is what you will do better or different:
1) Audit of the core processes with a self assessment:
<<image /static/files/MBI/Module%2011/auditcoreprocesses.png width:800>>
2) A mapping of critical success factors:
<<image /static/files/MBI/Module%2011/CriticalSuccessFactors.png width:800>>
In the gfk roper consumer styles the //demanding// are characterized by:
!Underlying values
* Strong sense of obligation and responsibility
* Punctual and with a traditional background
* High demands to themselves and others
!Consumption pattern
* High demands to quality of product and service

<<image /static/files/MBI/Module%2011/demanding.png width:300>>
|Model|Stage 1|Stage 2|Stage 3|Stage 4|h
|Tyebjee/Bruno/McIntyre(1983)|Entrepreneurial marketing|Opportunistic marketing|Responsive marketing|Diversified marketing|
|Carson(1985)|Initial marketing|Reactive selling|DIY marketing approach|Integrated pro-active marketing|
|Boag(1987)|Seeking some sales|Making good sales|Seeking profitable sales|Making profitable sales|

Entrepreneurial marketing must address tasks associated with
* The formation of a new organizational entity (e.g., establishing a marketing function, developing a market-oriented firm culture)
* Tasks associated with the process of new product development and -launch.

Part of [[M6-S1 - Reading - Gruber, M. 2004. Marketing in new ventures: theory & empirical evidence]]
Full article: [[Dissel, M.C., Phaal, R., Farrukh, C., and Probert, D.R. (2009) Value Roadmapping: Here s a systematic approach to supporting early-stage technology investment decisions, Research Technology Management, Nov-Dec. 2009|/static/files/MBI/Module%204/Value%20Roadmapping.pdf]]

<any decision makers are still not satisfied when it comes to appraising and valuing early-stage technologies. Most of the available techniques are quantitative and derived from financial valuation techniques and decision theory, such as [[Discounted Cash Flow]], [[Decision Trees]] and [[Real Options]]

[[Discounted Cash Flow]] does not work for new technology because:
* Inflexibility
* Does not work very well with uncertainty and volatility
[[Real Options]] do not really work because:
* very few underlying assets
* limitted accessibility (not everyone understands them)
[[Decision Trees]] do not work because:
* Does not help understanding the source of uncertainty
* Does not help in understanding underlying value streams

A combination of [[Decision Trees]] and [[Discounted Cash Flow]] in the form of [[DCF in a decision tree|M4-S4 - DCF in a decision tree]] approach will work.

General gap is visual communication techniques.

''Gaps in prevailing qualitative valuation techniques''
Very few companies use non-financial tools and techniques to support technology decision making. Probably because they are not that well known.
* [[Portfolio management]] methods
* Experts gut feel. Studies show that the majority of the managers prefer gut feel over financial methods

''The value roadmapping approach''
The Value Roadmap (VRM) approach is based on technology roadmapping (TRM) concepts. Originally developed by Motorola in the late 1970s to support integrated product-technology strategic planning. The Value Roadmapping concept focuses on exploring the potential value streams that eariy-stage technologies may generate:

The value roadmap includes the following layers:
# Market and business trends and drivers
## Context
## Social, technological, economic, environmental & political trends & drivers
## Customer & competitor Intelligence
## Business strategy, objectives & milestones
# Value streams, These are the sources of ftiture revenue and savings:
## Products,
## Services, business/facilities, technology/IP,
## Cost/risk reduction,
## Strategic position. All of these value streams relate directly to the generation of cash revenue, except for "strategic position," which includes all non-financial factors that provide a foundation for future revenue generation.
# Enablers and barriers, The technical and non-technical challenges and risks, together with complementary assets and actions needed to exploit the potential value of the technology or capability.
# Research and technology programs. These include
## the current state of the art for the technology in question,
## existing and planned projects,
## future possibilities,
## competing and complementary technologies.

A key feature of the VRM framework is the time axis, which links the short-, medium- and long-term perspectives for all of the layers. This is an important element as it links current technology investment to future intended revenues. The time horizon for the VRM typically extends considerably further into the future then the technology development project plan, providing a forward-looking "radar."

[[VRM Process|Value Road Mapping Process]]

Type I and Type II Errors explained:
It only takes one good piece of evidence to send a hypothesis down in flames but an endless amount to prove it correct. If the null is rejected then logically the alternative hypothesis is accepted. This is why both the justice system and statistics concentrate on disproving or rejecting the null hypothesis rather than proving the alternative. It's much easier to do. If a jury rejects the presumption of innocence, the defendant is pronounced guilty. 

Type I errors: Unfortunately, neither the legal system or statistical testing are perfect. A jury sometimes makes an error and an innocent person goes to jail. Statisticians, being highly imaginative, call this a type I error. Civilians call it a travesty. 

In the justice system, failure to reject the presumption of innocence gives the defendant a not guilty verdict. This means only that the standard for rejecting innocence was not met. It does not mean the person really is innocent. It would take an endless amount of evidence to actually prove the null hypothesis of innocence. 

Type II errors: Sometimes, guilty people are set free. Statisticians have given this error the highly imaginative name, type II error.
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";

The acronyme ICE stands for ''I''dentify, ''C''larify and ''E''xtend:
# ''Identify Explicit Needs''
## The goal is to identify if an explicit need really exists, examples:
## //Would it help you to have a reliable source of supply?//
## //Do you need a faster machine?//
# ''Clarify Explicit Needs''
## //Why is that important to you?//
## //Could you tell me more about your need for flexibility?//
## //Do you want faster turnaround to save costs or to better utilize your other equipment//
# ''Extend Explicit Needs''
## These questions invite the buyer to specify additional pay offs, examples:
## //Is there any other way this would help you?//
## //Besides adding useful space, would the design enhance your image?//
Using ICE thing of one of your [[Hot button]]s or [[Feature]]s and start probing:
<<image /static/files/MBI/Module%2016/ice.jpg width:600>>
!Outcome control
* Salespeople are held accountable for their results but not their behaviors
* Low control of behaviors by firm
* extreme is manufacturers’ reps: Jamestown
* Need objective measures of results
!Outcome Measures
* Orders
** Number of orders
** Average size of orders
** Number of cancelled calls
* Accounts
** Number of active accounts
** Number of new accounts
** Number of lost accounts
** Number of overdue accounts
** Number of prospective accounts
EPBAR (Entrepreneurial Business Plan Assessment Regime):
Notes taken during Master of Business Innovation program at TiasNimbas 2010-2012
An industry can be defined as the group of companies producing offerings that are [[substitutes|Substitute products]] of each other.
|''Description:''|//create//, //edit//, //view// and //delete// commands in toolbar <<toolbar fields>>.|
|''Date:''|Dec 21,2007|
|''Author:''|Pascal Collin|
|''License:''|[[BSD open source license|License]]|
|''Browser:''|Firefox 2.0; InternetExplorer 6.0, others|
On [[homepage|]], see [[FieldEditor example]]
*import this tiddler from [[homepage|]] (tagged as systemConfig)
*save and reload
*optionnaly : add the following css text in your StyleSheet : {{{#popup tr.fieldTableRow td {padding:1px 3px 1px 3px;}}}}


config.commands.fields.handlePopup = function(popup,title) {
	var tiddler = store.fetchTiddler(title);
	var fields = {};
	store.forEachField(tiddler,function(tiddler,fieldName,value) {fields[fieldName] = value;},true);
	var items = [];
	for(var t in fields) {
		var editCommand = "<<untiddledCall editFieldDialog "+escape(title)+" "+escape(t)+">>";
		var deleteCommand = "<<untiddledCall deleteField "+escape(title)+" "+escape(t)+">>";
		var renameCommand = "<<untiddledCall renameField "+escape(title)+" "+escape(t)+">>";
		items.push({field: t,value: fields[t], actions: editCommand+renameCommand+deleteCommand});
	items.sort(function(a,b) {return a.field < b.field ? -1 : (a.field == b.field ? 0 : +1);});
	var createNewCommand = "<<untiddledCall createField "+escape(title)+">>";
	items.push({field : "", value : "", actions:createNewCommand });
	if(items.length > 0)

config.commands.fields.listViewTemplate = {
	columns: [
		{name: 'Field', field: 'field', title: "Field", type: 'String'},
		{name: 'Actions', field: 'actions', title: "Actions", type: 'WikiText'},
		{name: 'Value', field: 'value', title: "Value", type: 'WikiText'}
	rowClasses: [
			{className: 'fieldTableRow', field: 'actions'}
	buttons: [	//can't use button for selected then delete, because click on checkbox will hide the popup

config.macros.untiddledCall = {  // when called from listview, tiddler is unset, so we need to pass tiddler as parameter
	handler : function(place,macroName,params,wikifier,paramString) {
		var macroName = params.shift();
		if (macroName) var macro = config.macros[macroName];
		var title = params.shift();
		if (title) var tiddler = store.getTiddler(unescape(title));
		if (macro) macro.handler(place,macroName,params,wikifier,paramString,tiddler);		

config.macros.deleteField = {
	handler : function(place,macroName,params,wikifier,paramString,tiddler) {
		if(!readOnly && params[0]) {
			fieldName = unescape(params[0]);
			var btn = createTiddlyButton(place,"delete", "delete "+fieldName,this.onClickDeleteField);
			btn.setAttribute("fieldName", fieldName);
	onClickDeleteField : function() {
		var title=this.getAttribute("title");
		var fieldName=this.getAttribute("fieldName");
		var tiddler = store.getTiddler(title);
		if (tiddler && fieldName && confirm("delete field " + fieldName+" from " + title +" tiddler ?")) {
			delete tiddler.fields[fieldName];
		return false;

config.macros.createField = {
	handler : function(place,macroName,params,wikifier,paramString,tiddler) {
		if(!readOnly) {
			var btn = createTiddlyButton(place,"create new", "create a new field",this.onClickCreateField);
	onClickCreateField : function() {
		var title=this.getAttribute("title");
		var tiddler = store.getTiddler(title);
		if (tiddler) {
			var fieldName = prompt("Field name","");
			if (store.getValue(tiddler,fieldName)) {
				window.alert("This field already exists.");
			else if (fieldName) {
				var v = prompt("Field value","");
		return false;

config.macros.editFieldDialog = {
	handler : function(place,macroName,params,wikifier,paramString,tiddler) {
		if(!readOnly && params[0]) {
			fieldName = unescape(params[0]);
			var btn = createTiddlyButton(place,"edit", "edit this field",this.onClickEditFieldDialog);
			btn.setAttribute("fieldName", fieldName);
	onClickEditFieldDialog : function() {
		var title=this.getAttribute("title");
		var tiddler = store.getTiddler(title);
		var fieldName=this.getAttribute("fieldName");
		if (tiddler && fieldName) {
			var value = tiddler.fields[fieldName];
			value = value ? value : "";
			var lines = value.match(/\n/mg);
			lines = lines ? true : false;
			if (!lines || confirm("This field contains more than one line. Only the first line will be kept if you edit it here. Proceed ?")) {
				var v = prompt("Field value",value);
		return false;

config.macros.renameField = {
	handler : function(place,macroName,params,wikifier,paramString,tiddler) {
		if(!readOnly && params[0]) {
			fieldName = unescape(params[0]);
			var btn = createTiddlyButton(place,"rename", "rename "+fieldName,this.onClickRenameField);
			btn.setAttribute("fieldName", fieldName);
	onClickRenameField : function() {
		var title=this.getAttribute("title");
		var fieldName=this.getAttribute("fieldName");
		var tiddler = store.getTiddler(title);
		if (tiddler && fieldName) {
			var newName = prompt("Rename " + fieldName + " as ?", fieldName);
			if (newName) {
				delete tiddler.fields[fieldName];
		return false;

config.shadowTiddlers.StyleSheetFieldsEditor = "/*{{{*/\n";
config.shadowTiddlers.StyleSheetFieldsEditor += ".fieldTableRow td {padding : 1px 3px}\n";
config.shadowTiddlers.StyleSheetFieldsEditor += ".fieldTableRow .button {border:0; padding : 0 0.2em}\n";
config.shadowTiddlers.StyleSheetFieldsEditor +="/*}}}*/";
store.addNotification("StyleSheetFieldsEditor", refreshStyles);


There is a second way to employ the reciprocity rule to get someone to comply with a request. The author of the book gives an example of a boy scout thatintroduced himself and said that he was selling tickets to the annual Boy Scouts circus. He asked to buy any at five dollars a piece. The autgor declined. “Well," the boy said, “if you don’t want io buy any tickets, how about buying
some of our big chocolate bars? They’re only a dollar each.” The author bougth these and realized that something noteworthy had happened.

The general rule says that a person who acts in a certain way toward us is entitled to a similar return action. Another consequence of the rule, however, is ''an obligation to make a concession to someone who has made a concession to us''. By seeing the second offer as a concession the Boy Scout made, the author felt obliged to honor the purchase of the chocolat to "get even".

The author called this the 'rejection-then-retreat' variant of the [[Reciprocity]] rule. In combination, the influences of reciprocity and [[perceptual contrast|The contrast principle]] can present a fearsomely powerful force. Enibodied in the rejection-then-retreat sequence, their conjoined energies are capable of genuinely astonishing effects
The total economic value is defined to be the price of the customers best alternative (reference value) plus whatever differentiates the offering from the competition.
Mobile e-commerce has different players which interact and collaborate, relevant players are:
* Mobile network operators
* Mobile device manufacturers
* IT Enablers (Microsoft, Symbian, Apple)
* Infrastructure equipment vendors
* Portal providers
* Application and content providers
Relevant segments in model e-commerce are:
* Voice
* Internet
* Messaging
Consumer services are:
Business applications include:
* Mobile [[Supply Chain Management]]
* Mobile [[Customer relationship management]]
* Mobile workforce (m-office, m-fleet tracking)
Mobile e-commerce has some unique advantages over wired e-commerce:
* Ubiquity
** It means that mobile users are able to use their device any time any place.
* Convenience
* Localisation
** Offer location based services
* Personalisation
Disadvantages are around:
* Privacy
* Device and network limitations
Part of: [[Strategies for E-Business]]
Unless you're delighted with the default theme you can make some quick changes by generating a new random color palette, hit this button to cycle through some alternatives.

<<RandomColorPaletteButton saturation_pale:0.67 saturation_light:0.53
saturation_mid:0.43 saturation_dark:0.06 pale:0.99 light:0.85 mid:0.5 dark:0.31>>

You can also change the look and feel completely by installing a new theme. To do this, find one you like in the @themes space, note down the name, and include it in this space by going to the space menu. You can reach the space menu by clicking on the blue and pink circle at the top-right of the page and chooshing "THIS SPACE". Here are a few to check out:
* @pip
* @caspian-ii
* @basalt
* @simplicity
* @cheesecake
* @jelly-doughnut

(//Note that if you are using a custom TiddlySpace install, these themes may not be present.//)
||Low margin|High margin|h
|High costs|||
|Low costs|||
[[Module overview|/static/files/MBI/Module%207/quants%20mbi%202010.pdf]]

[[M7-Quantitative Decision Methods-S1 - Managing Data and Survey Methods]]
[[M7-Quantitative Decision Methods-S2 - Probability and decision trees]]
[[M7-Quantitative Decision Methods-S3 - Normal Distribution and confidence intervals]]
[[M7-Quantitative Decision Methods-S4 - Significance Testing]]
[[M7-Quantitative Decision Methods-S5 - Game Theory]]
[[M7-Quantitative Decision Methods-S6 - Regression]]
[[M7-Quantitative Decision Methods-S7 - Correlation and Time series]]
[[M7-Quantitative Decision Methods-S8 - Simulation Models]]

Explanation of the assignment:
<<AudioFragment /static/files/MBI/Module%207/M7-S8%20-%20Assignment.mp3>>

Terms introduced in this block:
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M7")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>
<<formTiddler [[NewBookTemplate]]>><data>{"Author":"Daniel Kahneman","Rating":"*****","ReadingCompleted":true}</data>

Central theme in the book is the difference between two systems:
* [[System 1]] operates automatically and quickly, with little or no effort and no sense of voluntary control.
* [[System 2]] allocates attention to the effortful mental activities that demand it, including complex computations. The operations of System 2 are often associated with the subjective experience of agency, choice, and concentration.

The effects of [[Priming]] is discussed. Priming can influence decisions in major ways.

Decisions are also influence in a major way by how easy examples come to mind, e.g. [[Cognitive ease]], and its range is between “Easy” and “Strained.” Examples that come 'easy' to mind, have a stronger influence on our decisions.

Our minds have an habit to jump to  conclusions based on [[System 1]]. Here are the most important ones:
* [[Confirmation Bias]], we like to agree with people & statements presented to us
* [[Halo effect]], we have a tendency to create a consistent overall impression of a person, company, brand, or product.
* [[WYSIATI]], What You See Is All There is...: when presented a decision based on a limitted information set, [[System 1]] is tempted to decide rather than to elaborate.
** "She knows nothing about this person’s management skills. All she is going by is the halo effect from a good presentation."
** “Let’s decorrelate errors by obtaining separate judgments on the issue before any discussion. We will get more information from ** independent assessments.”
** “They made that big decision on the basis of a good report from one consultant. WYSIATI—what you see is all there is. They did not seem to realize how little information they had.”
** “They didn’t want more information that might spoil their story. WYSIATI"

When faced with a too difficult question, we used [[Substituting Questions]], e.g. we replace a complex question with a simpler one we can answer. We use the [[Affect Heuristic]] and overweight advantages and positive traits of people or projects we like.
* “Do we still remember the question we are trying to answer? Or have we substituted an easier one?”
* The question we face is whether this candidate can succeed. The question we seem to answer is whether she interviews well. Let’s not  substitute.”
* “He likes the project, so he thinks its costs are low and its benefits are high. Nice example of the affect heuristic.”
Since time immemorial a post mortem of a failed company usually includes, “I don’t understand what happened. We did everything that worked in our last startup.” The failure isn’t due to lack of energy, effort or passion. It may simply be due to not understanding that there are four types of startups, and each of them have a very different set of requirements to succeed:

* Startups that are [[Entering an existing market]]
* Startups that are [[Creating an entirely new market]]
* Startups that want to [[Resegment an existing market as a low cost entrant]]
* Startups that want to [[Resegment an existing market as a niche player]]

||Existing market|Resegmented markets|New market|h
|''Customers''|Existing|Existing|New/New usage|
|''Customer Needs''|Performance|1. Cost|Simplicity & convenience|
|||2. Perceived need||
|''Performance''|Better/faster|1. Good enough at the low end|Low in “traditional attributes”,|
|||2. Good enough for new niche|improved by new customer metrics|
|''Competition''|Existing|Existing incumbents|Non-consumption /other startups|
|''Risks''|Existing incumbents|1. Existing incumbents|Market adoption|
||Incumbents|2. Niche strategy fails|

Part of book: [[The Four Steps to the Epiphany]]
Wallycard's main problems:
* What is their real core competence?
* What strategic alliances do they really have?

Not likely a successful venture!
A put option gives the buyer of the option the right to sell the underlying asset at a fixed price at any time prior to the expiration date
of the option. The buyer pays a price for this right.

At expiration,
* If the value of the underlying asset (S) < Strike Price(K)
** -> Buyer makes the difference: K-S
* If the value of the underlying asset (S) > Strike Price (K)
** -> Buyer does not exercise

More generally,
* The value of a put decreases as the value of the underlying asset increases
* The value of a put increases as the value of the underlying asset decreases

A [[Pay-off Diagram]] for a ''buyer'' of put option looks like this: you start out with a loss and gain profit if the actual share price becomes lower than the strikeprice. Buying a put option buys you protection against lower stock prices.

	<div id="jxgbox3" class="jxgbox" style="height:300px; width:400px;"></div>

  var board = JXG.JSXGraph.initBoard('jxgbox3', {boundingbox: [-40,  150, 300, -150], keepaspectratio:true, axis:true});

  var strikepriceslider = board.create('slider', [[0,0],[300,0], [0.0,100, 300]], {name:'strikeprice'}, {withLabel: false});
  var putpriceslider = board.create('slider', [[0,0],[0,-300], [0.0,-100, -300]], {name:'callprice write'}, {withLabel: false});

  var strikepriceline= board.create('line', [[function(){return strikepriceslider.X()}, function(){return -150}],[function(){return strikepriceslider.X()},function (){return 200}]],{'strokeColor':'red', 'dash':'true'});

  var writingputoptionarrow1 = board.create('arrow', [[function(){return strikepriceslider.X()+200}, function(){return putpriceslider.Y()}],[function(){return strikepriceslider.X()},function (){return putpriceslider.Y()}]],{'strokeColor':'yellow'});
  var writingoptionarrow2 = board.create('arrow', [[function(){return strikepriceslider.X()}, function(){return putpriceslider.Y()}],[function(){return strikepriceslider.X()-200},function (){return putpriceslider.Y()+200}]],{'strokeColor':'yellow'});


A [[Pay-off Diagram]] for a ''seller'' of put option ('writing' a put') looks like this. In the interactive diagram below, the purple line represents the put for the seller:

	<div id="jxgbox4" class="jxgbox" style="height:300px; width:400px;"></div>

  var board = JXG.JSXGraph.initBoard('jxgbox4', {boundingbox: [-40,  150, 300, -150], keepaspectratio:true, axis:true});

  var strikepriceslider = board.create('slider', [[0,0],[300,0], [0.0,100, 300]], {name:'strikeprice'}, {withLabel: false});
  var writeputpriceslider = board.create('slider', [[0,0],[0,300], [0.0,100, 300]], {name:'callprice write'}, {withLabel: false});

  var strikepriceline= board.create('line', [[function(){return strikepriceslider.X()}, function(){return -150}],[function(){return strikepriceslider.X()},function (){return 200}]],{'strokeColor':'red', 'dash':'true'});

  var putoptionarrow1 = board.create('arrow', [[function(){return strikepriceslider.X()+200}, function(){return writeputpriceslider.Y()}],[function(){return strikepriceslider.X()},function (){return writeputpriceslider.Y()}]],{'strokeColor':'purple'});
  var putoptionarrow2 = board.create('arrow', [[function(){return strikepriceslider.X()}, function(){return writeputpriceslider.Y()}],[function(){return strikepriceslider.X()-200},function (){return writeputpriceslider.Y()-200}]],{'strokeColor':'purple'});


See also: [[Call options]]
body {
	font-size: 1em;
	font-family: helvetica, arial, sans-serif;
	background-color: #fff;
	color: [[ColorPalette::Foreground]];

body ul { margin: 0; }

#popup {
	background-color: [[ColorPalette::TertiaryPale]];

#popup.confirmationPopup, .followList {
	font-size: 0.8em;
	padding: 1em;
	border: solid 1px [[ColorPalette::SecondaryMid]];
	background-color: [[ColorPalette::SecondaryPale]];

.followList .listTitle {
	text-decoration: underline;

#popup .followTiddlersList a {
	display: inline;
	padding: 0;

.viewer td { vertical-align: top; }

.borderless table,
.borderless th,
.borderless tr,
.borderless td
   { border:0 }

#popup li a {
	color: #fff;
	font-weight: bold;

#popup li a:hover {
	color: #fff;
	background: [[ColorPalette::PrimaryMid]];

#popup li.listTitle {
	border-bottom: 1px solid #000;
	font-weight: bold;
	margin-bottom: 10px;

#displayArea {
	margin: 0;
	top: 0px;
	left: 0px;
	width: 100%;
	position: relative;

.public {
	border-color: #C7EAFF;

.private {
	border-color: #FFCAE9;

/* *** Header *** */

	background: [[ColorPalette::PrimaryMid]];
	_width: 100%; /* for ie 6 */
	color: #fff;
	background: [[ColorPalette::PrimaryMid]];
	overflow: hidden;
	_width: 100%; /* for ie 6 */

.clearFloat {
	clear: both;
#jsMath_Warning {display: none}

#contentWrapper {
	position: relative;
	padding-top: 1px;
	top: -1px;

#tiddlerDisplay {
	_position: relative; /* ie 6*/

.siteTitle {
	display: block;
	font-size: 28px;
	height: 32px;
	font-weight: bold;
	line-height: 32px;

#sidebarSearch {
        float: right;
	right: 80px;
	top: 8px;
	width: 176px;

#sidebarSearch .txtOptionInput {
	width: 100%;
	margin-top: 5px;
	_color: #bbb; /* ie6 danger */

#sidebarSearch .txtOptionInput:focus {
	color: #000;

#sidebarSearch .searchButton {
	display: none;

/* *** Menu Bar *** */

#mainMenu {
	position: static;
	text-align: left;
	margin-left: 30px;
	float: left;
	width: auto;
	padding: 0;
	font-size: 1em;
	line-height: normal;

#sidebarOptions {
	margin-right: 30px;
	float: right;
	font-size: 1.1em;
	line-height: 1.6em;
	min-height: 1em;
	padding-top: 0;

#sidebarOptions a {
	margin-right: 8px;

#mainMenu a:hover {
	background-color: [[ColorPalette::PrimaryMid]];
	color: [[ColorPalette::Background]]

.confirmationPopup .button,
#sidebarOptions .button {
	cursor: pointer;
	line-height: 1.4em;
	text-align: center;
	margin-right: 8px;

.confirmationPopup .button {
	font-size: 0.9em;
	padding: 2px;

#sidebarOptions .button {
	font-size: 0.7em;
	float: left;
	width: 80px;
	padding: 0px;

.confirmationPopup a.button,
#sidebarOptions a {
	border: none;
	margin: 0 0.2em;
	padding: 0.6em 0.25em;
	display: inline;
	color: #666;

.confirmationPopup a.button:hover,
#sidebarOptions a:hover {
	color: #000;

.confirmationPopup a.button:active,
#sidebarOptions a:active {
	border: solid 1px [[ColorPalette::PrimaryMid]];
	background-color: #fff;
	background: -webkit-gradient( linear, left bottom, left top, color-stop(0.1,rgb(200,200,200)), color-stop(1, rgb(100,100,100)));
	background: -moz-linear-gradient(center bottom , rgb(200,200,200) 10%,rgb(100,100,100) 100%) repeat scroll 0 0 transparent;
/* *** Sidebar *** */

#sidebar .wizard table {
	margin: 0px;

.tabContents .listTitle:first-child {
	margin-top: 0px;

/* --- New CSS --- */

#menuBar {
	background: [[ColorPalette::PrimaryLight]];
	left: 0;
	right: 0;
	position: relative;
	margin: 0;
	padding: 0.5em 0 0.5em 0;
	min-height: 1em;
	overflow: hidden;
	_width: 100%; /* for ie 6 */

#menuBarOptions {
	background: [[ColorPalette::PrimaryPale]];
	left: 0;
	right: 0;
	position: relative;
	margin: 0;
	overflow: hidden;
	_width: 100%; /* for ie 6 */

#mainMenu a {
	color: #fff;
	padding: 8px;T
	font-size: 0.9em;
	margin-right: 16px;

#sidebarOptions a.button {
	color: #fff;

#sidebarOptions a.button:hover {
	color: [[ColorPalette::PrimaryPale]];
    background: [[ColorPalette::PrimaryMid]];

#tiddlerDisplay, #searchResults {
	margin: 16px 260px 0 40px;

#sidebarTabs {
	font-size: 0.7em;
	position: absolute;
	right: 22px;
	width: 208px;
	top: 0;
	font-size: 0.7em;

#sidebarTabs .tabsetWrapper .tabset {
	font-size: 0.7em;
	border-top: 1px solid [[ColorPalette::PrimaryPale]];
	border-left: 1px solid [[ColorPalette::PrimaryPale]];
	border-bottom: 1px solid [[ColorPalette::PrimaryPale]];
	height: auto;
	float: left;
	word-wrap: break-word;
	top: 0;
	padding: 0;

#sidebarTabs .tabsetWrapper .tabContents {
	font-size: 0.7em;
	background-color: [[ColorPalette::PrimaryPale]];
	border: 3px solid [[ColorPalette::PrimaryMid]];
	width: 160px;
	_width: 156px;
	left: -3px;
	_left: -5px;
	position: relative;
	min-height: 34em;
	padding: 8px;

/* ---- Side style --- */

#sidebarTabs .tabsetWrapper .tabset .tab {
	font-size: 0.7em;
	padding: 0.7em 8px 0.5em;
	color: #fff;
	background: [[ColorPalette::PrimaryLight]];
	border: none;
	line-height: 16px;
	position: relative;
	display: block;
	margin: 0;

#sidebarTabs .tabsetWrapper .tabset .tabSelected {
	font-size: 0.7em;
	color: [[ColorPalette::PrimaryMid]];
	background: [[ColorPalette::PrimaryPale]];
	border-top: 3px solid [[ColorPalette::PrimaryMid]];
	border-bottom: 3px solid [[ColorPalette::PrimaryMid]];
	border-left: 3px solid [[ColorPalette::PrimaryMid]];
	z-index: 10;
	margin-top: -1px;
	font-weight: bold;
	font-size: 0.4em;

#sidebarTabs .tabContents li {
	font-size: 1 em;
	border: none;
	margin-left: 0;
	word-wrap: break-word;

.tabContents .timeline {
	font-size: 1em;
	background: [[ColorPalette::PrimaryPale]];
	margin-bottom: 8px;

#sidebarTabs .timeline li.listTitle {
	font-size: 1em;
	color: #132E43;
	margin-left: 8px 0;
	padding: 0.3em 0.11em;
	border-bottom: none;

#sidebarTabs .tabContents li a {
	font-size: 0.7em;
	display: block;
	text-align: left;
	margin: 0 0 1px 0;
	padding: 0.3em 1em;
	background: [[ColorPalette::PrimaryPale]];

#sidebarTabs .tabsetWrapper .tabset a:hover,
#sidebarTabs .tabContents li a:hover {
	color: [[ColorPalette::PrimaryPale]];
	background: [[ColorPalette::PrimaryMid]];

/* Activity Stream */
#sidebarTabs .tabContents .activityStream .feedItem a {
	display: inline-block;
	padding: 0;
	background: none;

/* ---- Tagging box --- */
.tagInfo {
	border: 1px solid #cccccc;
	padding: 10px 15px;
	-moz-box-shadow: 0 2px 2px rgba(0, 0, 0, 0.2);
	box-shadow: 0 2px 2px rgba(0,0,0,0.2);
	color: [[ColorPalette::TertiaryMid]];
	background: -moz-linear-gradient(100% 100% 90deg, #f4f4f4, #e5e5e5);
	background: -webkit-gradient(linear, left top, right top, from(#e5e5e5), to(#f4f4f4));
	margin-top: 1em;
	font-size: 13px;
	margin: 0 0 0 56px;

.tagInfo ul {
	list-style: none;
	padding-left: 2.2em;

.tagInfo ul li {
	display: inline;

.tagInfo ul li.listTitle,
.tagInfo .tagging ul li.listTitle {
	color: [[ColorPalette::PrimaryMid]];
	font-size: 13px;

.tagInfo ul li a {
	border: none;

.tagInfo .tagging ul li {
	float: none;
	display: inline-block;

.tagInfo .tagging {
	padding: 0;

.viewRevision .toolbar {
	right: 48px;
	top: 8px;

.viewRevision .modifierIcon img,
.viewRevision .modifierIcon svg {
	margin-right: 8px;

.viewRevision .toolbar svg {
	width: 32px;
	height: 32px;

/* --- IE hacks from lattice --- */

/* ie hacks */
* html #menuBar {
	margin-bottom: 8px;
.toolbar .svgIconText {
	*display: inline;

div.tiddler .toolbar a {
	float: left\9;
	display: inline\9;

* html .toolbar {
	right: 8px;
* html .followButton a {
	margin-top: 0px;
	margin-right: 8px;
* html #tiddlerDisplay {
	margin-top: 0px;
/* for printing purposes */
@media print {
	#sidebarSearch .txtOptionInput,
	#sidebarOptions {
		display: none !important;
	#displayArea {
		margin: 1em 1em 0em;
	noscript {
		display:none; /* Fixes a feature in Firefox where print preview displays the noscript content */
	#tiddlerDisplay {
		margin: 16px 16px;

@media all and (max-width: 960px){
	#searchResults {
		margin: 16px 300px 0 16px;

	#mainMenu {
		margin-left: 16px;

	.headerForeground {
		margin-left: 16px;

	#sidebarSearch {
		right: 16px;

	#sidebarOptions {
		margin-right: 16px;

	#sidebarTabs .tabsetWrapper .tabset {
		font-size: 0.5em;
		width: 57px;

	#sidebarTabs .tabsetWrapper .tabContents {
		width: 160px;
		_width: 156px;
		font-size: 0.5em;

	#sidebarTabs .tabContents li a {
		font-size: 0.5em;

The economic concept of profit:
* Cash Based
* Future Oriented
* Decision Support
* Time Value ([[WACC]])
* Multi period

Definition of leading and lagging indicators
!Object of play
This format for brainstorming compresses the essentials of an ideation session into one short format. Te numbers 3-12-3 refer to the amount of time in minutes given to each of three activities: 3 minutes for generating a pool of observations, 12 for combining 
those observations into rough concepts, and 3 again for presenting the concepts back to a group.
Essential to this format is strict time keeping. Te “ticking clock” forces spontaneous, quick-fre decisions and doesn’t allow for overthinking. With this in mind, a group that is typically heavily measured in its thought process will beneft the most from this exercise but will also be the hardest to engage.

Given its short duration (30 minutes total for 10 participants), 3-12-3 Brainstorming can be used as an energizer before diving into a longer exercise or as a standalone, zero-prep activity. It works equally well in generating new ideas as improvements to existing ones.
!Number of players
Tis is a fast exercise that gets slower as more participants are added. With up to 10 participants working as partners, the speed of the exercise makes it an energy builder. Working beyond 10 may require creating groups of three instead of pairs to keep from 
getting slowed down.
!Duration of play
21–30 minutes, depending on number of participants
!How to play
You will need a topic on which to brainstorm ideas, boiled down to two words. Tis 
could be an existing problem, such as “energy efciency,” or it could be focused on creating something new, such as “tomorrow’s television.”

Although the two words could be presented as a full challenge question, such as “How will tomorrow’s television work?” it is best to avoid doing this right away. By focusing on two words that signify the topic, you will aim to evoke thinking about its defning 
aspects frst, before moving into new concepts or proposing solutions.

To set up the game, distribute a stack of index cards and markers to all the participants. Everyone should have a fair number of cards available. Te game should begin immediately afer the rules have been explained.

* ''3 Minutes: Generate a Pool of Aspects.''
** For the frst three minutes of the exercise, participants are asked to think about the characteristics of the topic at hand and to 
write down as many of them as they can on separate index cards.
** It may accelerate the group’s process to think in terms of “nouns and verbs” that come to mind when thinking about the subject, or to free-associate. As in all brainstorming, no filtering should be put on this phase, in which the goal is a large pool of aspects in a small window of three minutes.
* ''12 Minutes: Develop Concepts.''
** At this point the group is divided into pairs. Each team draws three cards randomly from the pool. With these as thought starters, the teams now have 12 minutes to develop a concept to present back to the larger group.
** If the two topic words are sufcient to explain the challenge, the clock starts and the teams begin.
** If there is any doubt, reveal a more feshed-out version of the topic’s focus, such as “How will we become more energy-efcient next quarter?”
** In developing concepts to present, teams may create rough sketches, prototypes, or other media—the key is in preparing for a short (three-minute maximum) presentation of their concept back to the group.
* ''3 Minutes: Make Presentations''.
** When presenting to the larger group, teams may reveal the cards that they drew and how the cards infuenced their thinking. Again, tight time keeping is critical here—every team should have a maximum of three minutes to present their concept.
** After every team has presented, the entire group may refect on what was uncovered.
Speed is key. Many traditional brainstorming techniques can be slowed down or fouled entirely when time is not of the essence, despite the best intentions of participants.  Additionally, speed helps prove the value of what can be accomplished in short bursts—ofen the important aspects of good ideas can be captured very quickly and do not require laborious discussion before frst coming to light.

Afer presenting concepts back to the group, teams may do a number of things. They may dig deeper on an individual concept or try to integrate the ideas into each other. They may vote or rank the concepts to decide on which to spend more time developing. 
Ofen, concepts coming out of this exercise are more memorable to the participants, who are bonded in the time-driven stress of creating together.

//The 3-12-3 Brainstorm game is credited to James Macanufo//

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]
The business model canvas is described in the highly recommended book [[Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers]]. A rough overview of the canvas is depicted below and can the original can be downloaded [[here|/static/files/MBI/business_model_canvas_poster-1.pdf]]. Read more about the canvas at 

The three main groups on the canvas are:
* [[Internal activities of a business model]]
** [[Partner network]]
** [[Key activities]]
** [[Key resources]]
* [[External activities of a business model]]
** [[Customer segments]]
** [[Customer relationship]]
** [[Distribution channels]]
* [[Value assessments]]
** [[Value Proposition]]
** [[Revenue Streams]]
** [[Cost Structure]]
<img src="/static/files/MBI/Module%208/businessmodelcanvas.PNG" width=600>

<<image /static/files/MBI/businessmodel%20visualisations.jpg width:500>>

<<tiddler [[Alexander Osterwalder on Business Model Generation]]>>
# Does this EBP fully describe the venture opportunity by describing the following:
## the new combination of the venture 
## the magnitude of the opportunity (market size)
## market growth trends
## venture's value from the market (% of market share proposed market share value in dollars).

Low: Only 1 or 2 of the expectation items are present in the EBP
Medium: 3 ofthe expectation items are present in the EBP
High: All 4 of the expectation items are present in the EBP
|''Newness of the firm''|* unknown entity to potential customers and other parties <br>* lack of trust in the abilities and offerings of the new firm <br>* reliance on social interactions among strangers <br>* lack of exchange relationships <br>* lack of internal structures, processes/ routines in marketing <br>* lack of experience in marketing <br>* lack of historical data|Stinchcombe (1965) <br> Hannan/Freeman (1984) <br> Robertson/ Gatignon (1986) <br> Schoonhoven/ Eisenhardt/ Lyman (1990)<br>  Becherer (1993)|
|''Small size of the firm''|* very limited financial resources available for marketing <br>* few human resources <br>* lack of critical skills in marketing <br>* limited market presence <br>* limited market power, disadvantage in negotiations|Carson (1985) <br> Aldrich/Auster (1986) <br> Pleitner (1995) <br> McGrath (1996) <br>Mugler (1998)  <br>Lee/Lim/Tan (1999a/b)|
|''Uncertainty and turbulence''|* very low predictability of market and other data <br>* only limited information available for marketing planning and for marketing decisions <br>* best practices in marketing have yet to be determined for the specific industry <br>* dominant design of an offering is unknown <br>* competitive structure of the industry is changing, relationships with suppliers, distributors etc. are unstable <br>* high risk of wrong decisions, which may have fatal consequences for small firm with limited resources|Knight (1921) <br> Kirzner (1973) <br> Macdonald (1985) <br> Anderson/ Zeithaml (1984) <br> Tushman/ Anderson (1986)|

Part of [[M6-S1 - Reading - Gruber, M. 2004. Marketing in new ventures: theory & empirical evidence]]
<img src="/static/files/MBI/Books/The%20Four%20Steps%20to%20the%20Epiphany/CustomerDevelopment_CompanyBuilding.PNG" width=500>

|[[Company Building]]|||||||h
|''Mainstream Customers''|[[Earlyvangelists to Mainstream Customers]]|[[Manage Sales Growth by Market Type]]|
|''Management / Culture Issues''|[[Review Management]]|[[Develop "Mission-Centric" Culture]]|
|''Functional Departments''|[[Set Department Mission Statement]]|[[Set Department Roles By Market Type]]|
|''Fast Reponse Departments''|[[Implement Mission-Centric Management]]|Create an "Information Culture"|[[Build a "Leadership Culture"]]|

Part of: [[Customer Development Checklist]]
The equity or investor IRRs are calculated on the relevant cash flow to investors, with payments from investors (pure equity paid in, drawings on sub debt etc) as initial negatives, and payments to investors (dividends, payments to sub debt etc. as appropriate) as positives.

See also: [[IRR]]
* Parcels collected within a 3 hour window. No need to
* Same day delivery
* Parcels are offered twice before dropping of at the nearest drop off point
* 30 warehouses which act as parcel collection points
* Store parcels up to 7 days
* Print labels in advance
* Track and trace
* View invoices on line
* Self employed drivers
* Flexible service at reduced cost

Situational Question:
* How many events do you serve?
* How many packets do you send per event / per month?
* Where do these events happen?
* Biggest company?

Problem questions:
* What collection times is your current solution provider guarantee?
* What are the current costs?
* Is there always someone available to wait to pickup the parcel?
* What happens if someone is not available?
* How far do you need to travel in this case?
* Within how many days would you have the time to collect a parcel?
* When do these events take place? Are parcels delivered at the right moments for your customers
* Can you explain your label printing process? Do you have an improvement program?

Implication questions:
* What would be the impact of missing a parcel delivery? Do you have an idea of the cost?
* Are you aware of the labor costs involved in the label printing operation?
Bridging is an important skill in which you help the customer understand how a [[Feature]] is to their [[Advantage]]. By inspecting [[The Universal Benefits]] you can translate how features possibly are advantageous to invidividuals. Bridging is done in five steps:

# State their problem in your own words
# Explain the product feature that will solve their problem
# Support the feature with facts and data
# Bridge to a universal benefit
# Support the benefit with facts and data
<<YouTubeFragment uztA6JCKB4s>>
<<formTiddler [[NewBookTemplate]]>>

<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>
</html><data>{"Author":"Jon Curwin and Roger Slater","Title":"Quantitative Methods For Business Decisions","ReadingCompleted":true,"Rating":"***"}</data>
The value process framework captures the three main levers that influence a company's [[Value creation]] and [[Value capturing]]. These three levers are:
# [[Perceived use value]]
# [[Costs]] for creating this value
# [[Competitive discount]], which reduces the customers willingness to pay and reduces profit.
<img src="/static/files/MBI/Module%208/vpf.PNG" width=500>

The value process framework integrates the [[Value chain]] and [[Porter's five forces]]:
<img src="/static/files/MBI/Module%208/vpfintegration.PNG" width=500>

Value is created by the individual business activities of the value chain:
<img src="/static/files/MBI/Module%208/valuecreationthroughallactivities.PNG" width=600>

Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 8 - Creating and capturing value through e-Business strategies]]
<<tiddler [[Activity based costing]]>>

The ABC paradox is that even though the obvious advantages of activity based costing, it is not widely adopted yet. The major reason is that it is tedious to do. With [[Time-Driven Activity Based Costing]] the amount of labor overhead to introduce ABC can be reduced but as it depends on asking people how much time they spend on activities, it is not that reliable.
We discussed [[Cash Flow]] and the [[Cash conversion cycle]]

!1. Classification Structure
The first step is to decide on a classification structure, better known as segmentation. You might have a product in mind, or a general concept, but sometimes, you might just be fishing — looking for a problem to solve in a market that seems attractive. That’s OK. Market segmenters are detectives.

What makes a market attractive? Maybe you see alignment with your idea or product. Or, maybe something about a segment strikes a chord and gets your creative juices flowing, knowing what you know about your company’s capabilities. Also, segment size is important: Why waste time if long-term financial gains aren’t possible?

The segment selection process can be intuitive, based on personal experience, or it can be driven by highly sophisticated segmentation tools that carve up the total market into standardized groups. (Lots of companies start with Standard Industrial Classification codes (SIC codes), a system for tracking the entire economy, managed by the U.S. Census Bureau.) Either way, at this point, you are simply making educated guesses about which ones might be a fit. You have no idea if the fit will materialize.

In emerging industries, segmentation can evolve quickly. When the iPad was first introduced, tablets were tablets. Then ereaders became a distinct category vs. general purpose. Then pricing tiers emerged. Now, industry analysts are breaking the market up into broad stroke vertical applications — education, health care, etc. — which will get subdivided further very soon.
!2. Hypothesis Testing
With your evaluation structure in place, you now need to determine, one segment at a time, if there is really an opportunity you can address. You dig deeper from a research standpoint, paying particular attention to competitive offerings. Again, there’s a range of tools you can use. A consumer products company might do a formal, quantitative study, and a company selling to enterprises might set up personal meetings with senior executives. Major consulting firms, like McKinsey & Co. or the Boston Consulting Group, rely heavily on in-depth, one-on-one interviews in all of their projects. I’m working on a project in the tablet business right now, and you’d be amazed at how much you can learn from resellers.

What are you looking for? You’re identifying customer problems. They should be big ones — “pain points.” If a problem isn’t urgent and important, it’ll be difficult to create a meaningful competitive advantage. At the same time, you’re looking to see how your solution solves the problem. Is it dramatically better? Is it “demonstrable” (a very helpful ingredient when it comes to being socialized)?

If you’ve found a pain point in a large market you can address and there are no competitors (yes, it happens), you’ve stumbled upon an “unmet need,” one of the holy grails of new product development.

Segment by segment, you are testing a hypothesis related to fit or alignment: that you have something of value to offer a customer group. You are not just collecting information.

You’ll discover all kinds of things at this point, from a particular segment being a complete miss, to essential product features that must be added. Hypothesis testing never stops, even after you introduce your product. In fact, the best is yet to come. Once a product is in the market, learning based on actual usage will flow in. That’s why many in the new products field go to market with a “minimally viable product.”
!3. Nuance Testing
Here’s the step that’s easy to overlook. All problems have context. In other words, when customers solve problems, they are affected by circumstances associated with timing and physical surroundings, and by the nature of the task itself. As a marketer, you won’t understand context by doing a survey, conducting a focus group, or talking to senior executives.

You understand context by experiencing customer problem solving yourself. To do that, you turn to customer immersion techniques. Did you know dairy farmers use tablets? To elegantly solve their problems, you better be willing to get up at 3 a.m. on a freezing morning. Some consumer goods companies even live with customers in their homes for a short period of time. Procter & Gamble, considered one of the best marketers in the world, uses such an immersion program called “Living It.”
!4. Customer Stories
Hypothesis and nuance testing findings get captured as stories. They’re much more descriptive than use cases in that they focus heavily on problem/solution decision making.
!5. Solution Iteration
Tight product alignment with a customer is a matter of iteration. You put something out there (an idea, a prototype, an actual product), and you get feedback, and you go away and improve and refine. Your customer stories get more refined as well.

It’s highly unlikely that you’ll identify a pain point and address it perfectly in one fell swoop. In fact, to even try is highly risky, especially if you’re building hardware.

Most of the time and money wasted in new product development is related to late-stage rework, but you can avoid it by developing in small steps, ever tightening the alignment. This is what agile development is all about, and why it’s gaining so much in popularity in and outside Silicon Valley.
A brand contact point is each instance of a mention of your company in any communication. The sum of all brands. Contact Points are where your company and your customers meet, communicate and do business. The day-to-day life of every business presents a long list of instances where these contact points can be improved to deliver a more engaging experience for your audience and a brand elevating opportunity for your business.

Session purpose
* To discuss the contents of a business plan
* To define the strategy of the proposed plan
* To appreciate marketing aspects of the business plan
Discussion topics
* How to present the people behind the plan?
* How to elaborate the strategy of a technology?
* How can I identify the potential markets for a technology?
Session preparation
* [[M4-S2 - Reading - Lamb S. How to write business plans and reports]]
* [[Sahlman, W. (1997) How to write a great business plan, Harvard Business Review, July-August|M3-S3 - Reading - Sahlman, W.A. 1997 How to write a great business plan]]

[[M4-S2 - Session notes]]
Browse the [[slide handouts|/static/files/MBI/Module%205/mbi02.5_002.pdf]]: 
Learning objective
* Understanding strategic positioning
* Method for developing products and services that customers value
Session preparation
Read the [[Halalati case|/static/files/MBI/Module%205/Halalati%20Case.pdf]]
Questions to consider:
* What is the strategic positioning of Easy Jet?
* Why has Easy Jet been so successful?
* What should the strategic positioning of Halalati be?
[[M5-S2 - Case - Halalati]]
In order to ''//create//'' value, a company must provide customers with a products perceived user value that is greater than the costs:
<img src="/static/files/MBI/Module%208/valuecreated.PNG" width=300>
Value creation consist of two important factors:
* [[Perceived use value]]
* [[Costs]]
See also [[Value capturing]]
Part of [[Strategies for E-Business]]
In the context of the [[Value process framework]] //''perceived use value''// is defined as: "The price that a customer is prepared to pay for the product if there is a single source
A [[Patent]] has the following uses:
* A possibility to obstruct a competitor
* A way to make money (licensing)
* Formalization of an asset of your company
* Standardization
* PR Value

A patent is:
* ''Innovative''
** A technical solution for a technical problem
* ''New''
** Not part of the prior art
** Patent system is intended to reward an inventor to disclose his invention to the public
** Inventor should not be rewarded for telling us something we already new
* ''Inventive''
** Not obvious to a skilled person in the light of prior art
** Skilled person? Difficult to define
* ''Industrially applicable''
** If it can be made or use in any kind of industry, including agriculture
Mobile Electronic Commerce is a subset of [[Electronic Commerce]] in which online communications is limitted to mobile telecommunication networks.

Part of [[M8-S1 - Reading - Strategies for E-Business - Chapter 1]]
Success drivers:
* Brand recognition
* Exciting products and services
* Mutual beneficiary relations with suppliers

Business strategy:
* Increase demand
* Enhance production
* With the goal of growing earnings faster than revenue
* Increase brand exposure through events
* Due to limitted production capabilities dealers could ask for up to 20% premiums over suggested retail price

* Conducted online through traditional or internet based EDI
* Suppliers expected to be Harley-Davidson trading partners
* Reduced the number of suppliers from 4000 to 800
* Reduced defect rate
* Reliable forecasts for suppliers through e-commerce

e-business/e-commerce strategy:
* Online catelog
* Online 'branding' and life style reading
* Online purchase of complementary assets (motor races)
* Online insurance
* Communicate with dealers on service tips
* Later added online purchase of assecories and merchandise
* Stimulation purchase with dealers: "selling the harley davidson" experience
In [[Do Some Business Models Perform Better than Others?]] 16 business models are defined along two axes 1)Type of sale 2) Type of asset. ''Financial assets'' include cash and other assets like stocks, bonds, and insurance policies that give their owners rights to potential future cash flows.
A unique selling point has the following properties:
* Unique
** Clearly sets you apart from your competition
* Selling
** It persuades another to exchange money for a product or service
* Proposition
** Proposal or offer suggested for acceptance
The ''Value Proposition'' compound of the [[Business Model Canvas]] tries to answer the following questions:
* Could we target our different [[customer segments|Market Segmentation]] with a more tailored offering?
* Do our customers have other needs that we could satisfy relatively easily by ourselves or with the help of our [[Partner network]]?
* Could we [[complement|Complementary Assets]] our value proposition through agreements with partners (e.g., joint value propositions)?
* Where can we improve the [[Value chain]] in our customer offering and reduce efficiencies in our [[Value network]]?
<img src="/static/files/MBI/Module%208/businessmodelcanvasvalueproposition.PNG" width=600>
See also: [[Customer Value Proposition]]
Part of: [[Business Model Canvas]]
In this step you may see the benefit from your work in step 1 to 6:
* You prepared well and established report with the customer.
* You listened carefully and learned observed which features and benefits are appealing to your customer
* You made the case that you can solve the problem
* And you circled back to query for more information.
The last step is not magic, just ask what your customer thinks and if you can prepare a final quote. If you do get objections, you know what to do: just circle back to [[Step 3, Discovery]] again. Alternatively, keep the contact open and conclude that this is not the right moment for doing business together. Your goals in this step will be:
* How can i ask for the order in a way that is congruent with our collegial sales model?
* How do we finalize our commitments to each other in a professional way?
!Key points
* If you have done the first six step OK, closing is the easiest step
* Closing is a series of commitments
* When you solved the problem, you earned the right to close
* Closing creates anxiety for the seller, Buying creates anxiety for the buyer.
* If you get into trouble in the middle of a close, circle back to discovery again.
* Remember the three R's:
** Recap all your agreements
** Review the benefits to the customer of the decision made
** Reduce into writing
FAS stands for Finance and Accounting Standards. FAS 86 is ballot that describes how to handle software costs and revenue from an accounting perspective. You can download the document [[here|]]
See the [[case|/static/files/MBI/Module%2014/Case%20-%20Security%20Camera%20with%20flash%20light.pdf]]

Patent the design?
Can be done if:
* you claimed the technical feature
* you showed this feature under nda

* include in contract that ip including copyright for the design is owned by the company
Copyright with the oil company?
Composition of a camera with a rotating flash light

* Trademark
* registered design
* fly as word
* fly as a symbol
* 3d shape

* figth for patent infringement
* fight on the design
* assuming nda with mnuicipality was in place

Register the design
The B2B e-commerce matrix classifies different types of B2B marketplaces:
<img src="/static/files/MBI/Module%208/b2becommercematrix.PNG" width=600>
There are two types of goods:
* [[Operating inputs]], these (indirect) goods are often called [[MRO]] (Maintenance, Repair and Operations).
* [[Manufacturing inputs]], these are the industry specific (direct) goods that are used for the final product that is delivered to customers.
The second dimension in the matrix is //how// the goods are purchased from suppliers:
* [[Systematic sourcing]], this form of sourcing involved negotiated contracts with qualified suppliers. Contracts are usually longer term and on mutual trust, leading to a long term relationship between buyer and seller.
* [[Spot sourcing]], Firms usually go for spot sourcing to fulfill an immediate need at the lowest possible price. Commodities (such as oil, gas and iron) are typically purchased via spot sourcing.
Based on the above four dimensions the following types of B2B e-market places can be identified:
* [[MRO hubs]] are horizontal e-market places with long-term supply relations for [[Operating inputs]]
* [[Catalog hubs]] sell [[Manufacturing inputs]] through a systematic sourcing system. Goods sold are usually tailored to meet the purchasing company's needs.
* [[Yield managers]] are horizontal e-market places for [[Spot sourcing]] of [[Operating inputs]]. Ther are most valuable for operating inputs that display high fluctuating in price or demand. For example see
* [[Exchanges]] are closely related to more traditional commodity exchanges. They are used primarily for the selling of commodities that are used in the production process. For example see

Part of: [[M8-S4 - Reading - Strategies for E-Business - Chapter 10 - Choosing the appropriate strategy for interaction with suppliers]]
<!--copy and paste--><object width="526" height="374"><param name="movie" value=""></param><param name="allowFullScreen" value="true" /><param name="allowScriptAccess" value="always"/><param name="wmode" value="transparent"></param><param name="bgColor" value="#ffffff"></param><param name="flashvars" value="vu=;year=2009;theme=speaking_at_tedglobal2009;theme=not_business_as_usual;theme=the_creative_spark;event=TEDGlobal+2009;tag=Business;tag=Science;tag=brain;tag=creativity;tag=social+change;tag=work;&preAdTag=tconf.ted/embed;tile=1;sz=512x288;" /><embed src="" pluginspace="" type="application/x-shockwave-flash" wmode="transparent" bgColor="#ffffff" width="526" height="374" allowFullScreen="true" allowScriptAccess="always" flashvars="vu=;year=2009;theme=speaking_at_tedglobal2009;theme=not_business_as_usual;theme=the_creative_spark;event=TEDGlobal+2009;tag=Business;tag=Science;tag=brain;tag=creativity;tag=social+change;tag=work;&preAdTag=tconf.ted/embed;tile=1;sz=512x288;"></embed></object>
In [[The Lean Startup]] Eric Ries creates a concept called 'innovation accounting' (which i believe needs more work...). He explains that it requires three steps

# ''Establish baseline metrics''. For example by using a [[Minimal Viable Product]] to acquire real data on where your company is. My addition, define your [[Hypothesis]]
# ''Tune your [[Growth Engine]]'' from the baseline towards the ideal
# ''[[Pivot]] or persevere''

10 technologies that will change the world in the next 10 years
3D printers, sensor networks, virtual humans and other technologies under development now will drastically change our world in the decade to come, according to Cisco chief futurist Dave Evans
Listen to the session audio:
<<tiddler [[M11-S1 - Audio - Introduction to marketing strategy]]>>

First a brief definition of [[Marketing]] (Marketing is building sustainable business).was given and Prof Moenaert talked about the concept of [[Derived Demand]]. Three paths are important:
# ''Market making'' or creation, develop new customer value proposition
# ''Market hunting'', acquiring new customers for existing customer value propositions
# ''Market farming'', nurturing or streamlining the relationship with existing customers.
<<image /static/files/MBI/Module%2011/pilarsofbusinessdevelopment.PNG width:400>>
We watched a video on [[Randy Pauch - Last Lecture]] encouraging determination in what you believe in.

The [[Resource based view]] states that competitive advantage and resources are two sides of the same coin.
A good or asset's interchangeability with other individual goods/assets of the same type. Assets possessing this property simplify the exchange/trade process, as interchangeability assumes that everyone values all goods of that class as the same.
<<formTiddler [[NewBookTemplate]]>>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

Recommended by Mike Schavemaker in the [[M5-Strategy]] block.

A “black swan,” Taleb explained, is an event which is
# Hard to predict
# Highly consequential
# Wrongly retro-predicted.

We pretend we know why the big event happened, and so entrench our inability to deal with the next world-changing improbable event. Key take aways for me in the book:
* A for me new but trivial discrimination between 'scalable' and 'non-scalable' professions.
** 'Non-scalable' referring to jobs that scale linearly with the effort you put into it and which require your physical presence (doctor, opera singer, hair dresser, computer programmer)
** 'Scalable' referring to jobs that depend non-linearly on unique competences or sheer luck (stock broker, entrepreneur)
* Be aware of [[narrating]] a story of interpretation to a random phenomena. (See also: [[Consciousness Explained|[[Consciousness%20Explained%5D%5D]] and [[Phantoms in the mind|[[Phantoms%20in%20the%20Brain%3A%20Probing%20the%20Mysteries%20of%20the%20Human%20Mind%5D%5D]] if you are interested to probe further on how our minds are good at making up a consistent story of any event)
* Be aware of different types of random. Taleb sees 'mild randomness' and 'wild randomness' phenomena. With the growth in complexity in our economy today a huge number of phenomena are 'wildly random' and gerenate 'black swans'.  It is much easier to 'predict' the ranges of human length or weigth than it is to predict the sales of a book (or any product).
* This is not simply knowing the standard deviation of your distribution. Taleb's key point is that certain distributions are so random that 'average' and 'standard deviation' have become meaningless.

Interesting recent news on Taleb:<data>{"Author":"Nassim Nicholas Taleb","ReadingCompleted":true,"Title":"The Black Swan: The Impact of the Highly Improbable","Rating":"***"}</data>
''1) Direct cross subsidizing: Examples''
## Gilette
## Free mobile phones
## Ryanair
## Lessen bij Apple Store
## Proeflessen in fitnesscentrum
## Muzieklessen voor baby’s
## Gratis Ben and Jerry’s ijsje
## Online fotoafdrukken (een paar gratis)
## Korte cursussen bedrijfskunde (betaald door deoverheid)
## Taalcursussen (podcasts)
<img src="/static/files/MBI/Module%205/summaryfree_freemodel1.JPG" width="400" /> 
''2) 3 party markets''
## All mediamodels
## Papers are subsidized by selling commercials
## Radio and TV similar
## Voorkeurnummers (gratis)
## Gratis 0800-nummers
## Gratis e-mails ter herinnering
<img src="/static/files/MBI/Module%205/summaryfree_freemodel2.JPG" width="400" /> 
''3) Freemium''
## Paying users buying the 'premium' product pay for the free version for other users
## Usally in a percentage 5% of the paying users support 95% users getting this for free.
## Skype (gratis telefoongesprekken)
## Kinderen gratis toegang dierentuin
<img src="/static/files/MBI/Module%205/summaryfree_freemodel3.JPG" width="400" /> 
''4) Non-monetary markets''
## Wikipedia
## Freecycle
## Open lesmateriaal (gratis cursussen online)
## Gratis huisdieren op Craigslist
## Fietsen ruilhandel
## Museum (betaald door subsidies/donoren)
<img src="/static/files/MBI/Module%205/summaryfree_freemodel4.JPG" width="400" /> 
Full article: [[Coyne, K.P. Sustainable Competitive Advantage|/static/files/MBI/Module%203/3%20Coyne%201986.pdf]]

Conditions for a  sustainable competitive advantage
* When does a producer have a sustainable competitive advantage
* How can a strategist test whether an advantage is sustainable?
Implications for strategy:
* Does a  sustainable competitive advantage guarantee success?
* Can a producer succeed without a  sustainable competitive advantage?
* Should a producer always pursue an  sustainable competitive advantage?

A  competitive advantage is meaningful only when:
* Customers perceive a consistent difference in important attributes between the producers product or service and its competitors
* That difference is the direct consequence of a capability gap between the producer and its competitors

Difference in important attributes:
* ''A product / delivery attribute needs to be a key buying criterion''
** Price
** Quality
** Aesthetics
** Functionality
** Availability
** Consumer awareness
** Visibility
** After sales service
** Having lower cost may result in better margins but is only a competitive advantage when the money gained is used for:
*** Better price
*** Better quality
*** More advertizing
*** Additional capacity that increases availability
** Usually in any market segment only a very few criteria are likely important enough to serve as the basis of a meaningfull competative advantage:
*** In tubular steels for example this is 1) a measure of quality (third party testing reject rate) 2) local availability on the day required by the customers driling schedule
*** Texas Instrument brought down price of digital watches to a point where competition could no longer respond but the market cared more for aesthetics.

* ''Needs to have a significant footprint in the market (enough buyers)''
** Breath
*** How many customers?
*** What volume?
** Depth
*** How strong a preference has been generated by the difference in product attributes?
*** Would minor changes cause customers to switch?
*** Needs [[Branding]]

Durable differentiation:
Any difference can only be durable when it is not easy to bridge by the competition. Durable difference have the following categories:
** Business system gaps
*** Differences in labor union rules
*** Superior engineering skills
** Position gaps
*** Resulting from prior decisions
*** Reputation
*** Consumer awareness
*** Trust
*** Order backlogs
*** May be the result of a past facility location choice (i.e. smelter adjacent to iron ore source)
** Regulatory / Legal gaps
*** Patents
*** Import quotas
*** Consumer safety laws
** Organisation / Management gaps
*** Ability to innovate and adapt more quickly than the competitors
** Lasting advantage (sustainability)
*** Function of demand of the product over time
*** Durability of the capability gap that created an attractive product attribute
*** Will competitors be able to bridge the gap??
**** No, cannot
***** Patent infringements
***** Unique access to raw materials
**** Yes, but will not
***** Inadequate potential
***** Corresponding disadvantage
***** Fear of reprisal
***** Management inertia

''Sustainable competitive advantage and strategy''
* Possessing an SCA does not guarantee success
* Producers can succeed without one
* Pursuing an SCA can conflict with business strategy

''Losing with a sustainable competitive advantage ''
* Market sector not viable
* With severe operational problems
* If competitors inflict tactical damage

''Competing against an SCA''
Only do this when:
* The advantage is shallow
* If the competitor is limited by capacity
* If the size of the competitor is small relative to the size of the business
We looked at the [[DISC]] system and filled out self-assesments:

<<tiddler [[M15 - Audio - DISC]]>>
The ability to serve a particular market. It is not sufficient for a technology to have many applications. To leverage its technology by applying it to additional markets, ''a firm must build complementary market-related assets to serve those markets''. This is called a customer competence. Market-related resources include:
* knowledge of customer needs, preferences
* purchasing procedures,
* distribution and sales
* access to customers,
* customer goodwill or franchise reflected in the reputation of the firm and its brands
* communication channels for exchange of information between the firm and customers during development and commercialization of the product.

Together these market-related resources constitute the customer competence.
Mark-up pricing rules just take the product or service's costs and mark them up by a margin percentage. This margin percentage may be standard for the industry, or related to what
you are used to, or what you need to make your forecasted profit at the forecasted revenue for your venture. 

Part of [[M6-S8 - Reading - Lodish - Entrepreneurial pricing- an often misused way to garner extraordinary profits]]
!Core Problem
* What problem are you trying to solve with this purchase?
* Why did you decide to make this purchase now?
* If this purchase solves your problem, how will things be different?
* How is thye current situation affecting your ability to get your work done?
* How do you hope that this purchase will make things better?

!Product specifications
* What is the single most important way you want this purchase to improve or be different from the products / services you currently use?
* What is the single most frustating thing about the product or service you will be replacing?
* How much output are you looking for from the new equipment?
* How much output are you getting frome the current equipment?
* What is the downtime of the current equipment?
* What do you spend on maintenance?
* What is your current efficiency level? What would you like to have?

* Who else are you talking with about this purchase?
* Have you had any previous experience with this company?
* What other products do you consider?
* Have you had previous experience with this brand/product line?
* Do you have references for the suppliers you are considering?
* Can i give you some references to compare?

* How much is your budget for this purchase?
* Have you already committed the money or are you exploring?
* How much did you pay for the item you will be replacing?
* Where does price fit in the list of attributes that will help you make this decision?
* Have you considered total costs (downtime., maintenance, product life time) as a possible way to make the decision?

!Buying process
* Who else will be involved in making the buying decision?
* Will any end users be involved?
* Could i talk to some end users?
* When do you anticipate you will make the decision?
* What criteria will drive your decision?
* If a committee is involved in the buying decision could i meet all persons?
When confronted with new technology (say "electric car"), people vary in when they 'jump on the wagon'. Consumers can be qualified along to how fast they are eager to try something new:
<img src="/static/files/MBI/Module%206/Technology-Adoption-Lifecycle.png" width="600" /> 
|[[Innovator]]|"I would like to try it first"|
|[[Early Adopter]]|"I would like to try soon"|
|[[Early Majority]]|"When i have seen electric cars prove themselves"|
|[[Late Majority]]|"Not until most people made the switch and it becomes inconvenient to drive a gasoline car"|
|[[Laggard]]|"Not until hell freezes over"|

Moore discriminates between [[Discontinous innovations]] (require people to change behavior, examples are new HD TV incompatible with todays standards) and [[Continuous innovations]] (do not require people to change behavior, more economic car, better teeth withener). Between these two ends of the spectrum, there is a continuem of more and less demanding innovations requiring change.

High tech companies are more frequently introducing change demanding innnovations and need a marketing model coping with this model of product introduction (original model create during research on the adoption of new strains of seed potatoes :-))

The model simply states that to develop a high market you need to move from the left to the right and adjust your market strategy around it. Each group becomes a reference for endorsements for the next group. The model promisses a 'virtual monopoly': who gets their first and catches the wave can ride it to the end.

In the revised high marketing model each phase transition has a gap in between them, emphasizing that companies might miss the boat and loose market share to a compatitor. Two 'cracks' are considered most important:

* The gap between the early adopters and the early minority, the so called 'chasm'.
** The key to this leap is to show that the technology enables a leap forward, something that was not possible before and has appeal to a non-technologist.
* The gap between the early majority and the late majority
** The key to this leap is to demonstrate in addition that the technology is very easy to use.
** The early majority wants to buy a //productivity improvement//! They are looking for a way to minimize the discontinuity with the old ways.

Part of: [[M6-S2 - Reading - Crossing the chasm: marketing and selling high-tech products to mainstream customers]]
Learning objective
* Taking the methods developed in the first two sessions and applying them to your specific project
Session preparation
Read [[Afuah & Tucci, Chapter 10, Internet Business Models and Strategies|/static/files/MBI/Module%205/afuah_tucci_ch10_final.pdf]]. You may consider (if you have not already) which potential markets would be
well suited for your venture Other factors to be discussed in class.
* Some of you may have identified specific product markets for your technology; if so, analyze the attractiveness of the industry you have chosen
* What is the strategic positioning of your venture?
* What is the customer experience chain for products or services in the industry and how will your technology change that?

[[M5-S3 - Reading - Summary Afuah & Tucci, Internet Business Models and Strategies Chapter 10]]
config.macros.PDF = {
  handler: function (place, macroName, params, wikifier, paramString, tiddler)
     var url;

     if (params[0] != null)
           url = params[0];

     resultString = "<html>";
     resultString += '<iframe src ="'
     resultString += url;
     resultString += ' &embedded=true" style="width:600px;height:340px;" frameborder="0"';
     resultString += '</iframe>'
     resultString += '</html>';

Full article: [[Callow, D. and Larsen, M. Understanding Valuation: A Venture Investor’s Perspective, white paper Boston Millennia Partners.|/static/files/MBI/Module%204/Understanding%20Valuation_white%20paper.pdf]]

Pre-money valuation: This is the estimated or notional value of the company as it stands prior to any purchase of equity.

//''Pre-Money Valuation + Invested Capital = Post-Money Valuation''//
//''Price per Share = Pre-Money Valuation / Pre-Money Shares''//

Valuations at the “seed stage” are generally driven by factors that by their nature are subjective. These include:
* appraisals of the CEO and management team,
* novelty of the value proposition,
* evaluation of intellectual property,
* expected time-to-market,
* expected path to profitability,
* estimated capital needs and burn rate,
* syndicate risk,
* sector volatility
* deal structure.

In post-seed investing, intermediate data points such as events demonstrating proof of principle and product validation will factor strongly in valuation determinations. As a company matures to a revenue stage, more quantifiable data is produced in the form of operating statistics and performance indicators. Actual results allow investors to more accurately model quarterly and annual revenue, EBITDA, cash burn, pipeline close rates, backlog, bookings and enterprise valuation.

|Financing|Company Stage|Data|Risk/Uncertainty|Value* (MM)|h
|Seed|Incorporation early development|Soft data value proposition etc|Extremely high|1|
|Series A|Development|Validation, time to market|Very high|3|
|Series B|Shipping Product|Prelim revenue|High|7.5|
|Series C+|Shipping Product|Predictive revenue|Moderate|10|
|Later-stage/ Mezzanine|Shipping Product, Profitable|Hard data; EBITDA, net income|Lower|20-50|

A venture investor will “scrub the numbers”, rationalize assumptions and run sensitivities based on varying degrees of execution, competitive pricing pressure, seasonality, etc. The resulting rationalized forecast may represent only a fraction of the original plan.

These capital requirements will provide the underpinning of your company’s long-term financing strategy:
* How much must be raised now?
* When will the next financing be needed?
* What significant milestones will be accomplished during that time? 

''Staged financing strategy''
<img src="/static/files/MBI/Module%204/Long%20term%20financing%20strategy.JPG" width="600" /> 

# Seed Financing
## The seed financing will provide the capital needed to support salaries for founders/management, R&D, technology proof-of-concept, prototype development and testing, etc. Sources of capital may include personal funds, friends, family and angel investors.
# Series A Financing
## Typically the Series A is the company’s first institutional financing—led by one or more venture investors.
# Series B Financing
## At this point, we can assume development is complete and technology risk removed. Early revenue streams may be taking shape. Valuation is gauged on a blend of subjective and objective data—human capital, technical assets, IP, milestones achieved thus far, comparable company valuations, rationalized revenue forecasts.
# Series C Financing:
## May be a later-stage financing designed to strengthen the balance sheet, provide operating capital to achieve profitability, finance an acquisition, develop further products, or prepare the company for exit via IPO or acquisition. The company often has predictable revenue, backlog and EBITDA at this point, providing outside investors with a breadth of hard data points to justify valuation. Valuation metrics, such as multiples of revenue and EBITDA, from comparable public companies can be compiled and discounted to approximate value.

''//The valuation of a company at a discreet point in time is subject to a certain range of interpretation. Most seasoned venture investors will value a company within 10-15% range of each other if they have exhausted all quantitative and qualitative data available. Given the consistency that is generally seen in the market, the key factor in choosing one VC over another should rarely be based in valuation//''
''The formal report''
* Preliminary (Front) Material
** Title Page, lists the topic or subject, scope, and purpose; the writer with title and/or role and affiliate organization; date of issuance (and period, such as  quarterly, annual); and the name of the commissioning organization.This page isn't numbered, but is page i; the blank back of the page, also unnumbered,  is page ii.
** Letter of Authorization, lists the sponsoring organization (or person) commissioning the work and the report.
** Letter of Transmittal, is a cover letter identifying who the report is sent by and to whom it is being sent. It may point out special sections or points of interest.
** Abstract, gives the major points of the report.
** Table of Contents
** List of Figures
** List of Tables
** List of Symbols and/or Abbreviations
** Statement of Problem, Abstract, Synopsis, or Summary
** Foreword, when included, contains an introductory statement by someone other than the author(s), giving background and perhaps comparisons to  the reports in the field. The writer/author's name appears at the end, along with the date.
** Preface, is the author's statement about the what, why, when, and so on of the report
* Body
** Executive Summary, is an overview, more detailed than the abstract.
** Introduction, indicates the report's purpose, scope, and other information.
** Text (with Appropriate Headings, Subheadings), how the study, investigation, and research were pursued or explored, and the initial findings.
** Conclusions or Summary
** Recommendations, may be combined with conclusions. This usually states a course of action or results that indicate the need for the next step.
* Supplemental (Back) Material
** References
** Appendices, contain supporting information that is either too detailed or would disrupt the flow of the report if inserted in the text.
** Bibiiography
** Glossary
** Index
* ''Think About Content''
** The //formal// report
*** Mostly use an //indirect// approach.(This is a pattern where the information order is:
**** a "buffer" statement of neutral information or an explanation,
**** followed by a statement of the bad news or the problem,
**** followed by a conclusion statement offering good news or a solution.
**** this approach introduces the problem, then gives the facts with analyses (when needed), and summarizes the information given
** The //informal// report
*** often uses the //direct// approach, offering the conclusion or recommendation, followed by the facts often given much more briefly.
** Begin with why the report is needed, for example: "Our sales representatives need to know why competitive products X, Y, and Z are outselling our product A."
*** //Question//: "What do our sales representatives need to know about competitive products X, Y, and Z in order to effectively sell product A?"
*** //Declarative Statement//: "Our sales representatives need to know the features of competitive products X, Y, and Z in order to effectively sell product A."
*** //Infinitive Phrase//: "To sell product A effectively, our sales representatives need to know the features of competitive products X, Y, and Z."
** For scientific reporting: Make sure your report is objective, base it on facts
** For market analysis:
*** You may want to complete initial observations or surveys of competitive products
*** You will want to research some facts that can be used as sales points
*** Your observations and surveys may lead you to develop some theories and hypothesis about your products
**** Evaluate these by assesing point values to each or by using another test method.
**** Break down subtopics in sub-sub topics
**** Gather all the information
**** Test your gathered data
***** Is it objective?
***** Do other agree?
***** Is it reasonable?
***** Does it hold up?
* ''Data analysis''
** Organize into report format keeping precise records of sources
** Write a rough draft
** Be consistent in tense
** Be consistent in personal or impersonal view point
** Use effective transition words
** Make effective use of graphs
** Enliven your writing using effective vigorous action words but don't overdo it.
** Revise, Cut out nonessential parts, check for stilted words, jargon, inconsistencies, redundancies, and errors in logic. Eliminate any general, abstract, or vague statements. During this process, ask these questions:
*** Does the introduction establish the scope and methods to be used?
*** Are all the points in the introduction fully developed in the body?
*** Is the development of points logical and complete?
*** Are there ideas or sections that should be combined or relocated?
*** Is there a clear solution to, or a complete discussion of, the stated problem?
*** Is there a clear relationship between ideas and facts?
*** Does the report flow logically?
*** Is information complete for reader understanding?
*** Is opinion correctly identified from fact?
*** Have all the facts been doublechecked?
*** Do headings and subheadings properly reflect content?
*** Are all grammar and spelling errors eliminated?
** Review and proof read
** Edit, leave the report and give it a fresh look later
* ''Eliminate the wrong messages''
** Don't use material without giving proper credit.
** Do not make faulty or illogical cause-and-effect conclusions.
** Use sound reasoning to be sure of a relationship. And remember, conclusions are not always necessary. Some things are inconclusive. Say so.
** Don't make the mistake of assuming a lack of evidence proves the opposite is true. Maybe it isn't.
** Do not compare apples to oranges.
** Data must be similar in nature for comparisons to be authentic.
** Eliminate digressions or unfocused material. These can easily derail the report.
* ''Select a format''
** Establish a consistent format for all your organization's reports.
** Follow an approved and consistent reference system such as shown in the Chicago Manual of Style to record footnotes and bibliography listings.
** Create all the necessary graphics in visually appealing form to promote understanding.
** Print and bind the report in a professional manner.
* ''Edit,edit,edit''
** Employ key content experts to review the report and check all facts included.
** Use a professional proofreader to check for proper grammar, consistent tense, redundancies, and other problems or errors.
** Use a proofreader and the spellchecker to eliminate any typos
* Mass-Customization through the Internet
* Internet-based Social Networks
Prepare case: - [[|M8-S3 - Case -]] – case study # 14 in the textbook
* Chapters 7, 8, 9 and 10 of the textbook
* [[Henry W. Chesbrough, “Why companies should have open business models”|/static/files/MBI/Module%208/why%20companies%20should%20have.pdf]], MIT Sloan Management Review, Winter 2007, pages 22-28.
Questions for the case study:
1. How would you compare the product portfolio and business model of to those of a ‘traditional’ merchandising company?
2. How unique and sustainable are the value proposition and business model of Could they be easily copied by existing competitors or new entrants?
3. Would you consider as an Internet-based social network? Defend your arguments.
4. What actions would you recommend to the management of in order to maintain the company’s first-mover’s advantage in Germany and further grow its business internationally?

[[M8-S3 - Reading - Strategies for E-Business - Chapter 7 - Exploiting opportunities of new market spaces in e-Business]]
[[M8-S3 - Reading - Strategies for E-Business - Chapter 8 - Creating and capturing value through e-Business strategies]]
[[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]
[[M8-S3 - Reading - Strategies for E-Business - Chapter 10 - Choosing the appropriate strategy for interaction with suppliers]]

[[M8-S3 - Reading - Chesbrough, Why companies should have open business models]]
[[M8-S3 - Session Notes]]
The session discussed the summary of [[this|]] article:

There are 5 strategies to become a multinational:
# Taking a brand global
# Taking a technology global
# Global leadership in a narrow technology
# New or better business model
# Taking natural resources global with top marketing and distribution

Listen to the audio:
<<tiddler [[M21-S5 - Audio - The Challengers]]>>
We discussed the Russki case:

<<tiddler [[M21-S1 - Case - Russki]]>>

Listen to the session audio:
<<tiddler [[M21-S1 - Audio - Russki]]>>
<<AudioFragment /static/files/MBI/Module%2011/M11-S3%20-%20Customer%20Value.mp3>>
A [[Competitive advantage]] needs [[The CODA framework]].

A nice video illustrating how some features are not *really* important to the end customer
<<tiddler [[Sony Useless Piece of of Crap]]>>
When an outcome of an experiment has no effect on another experiment, then these events are said to be ''independent''.

Part of [[Basic relationships in probability]]
See also: [[Dependent events]]
<<AudioFragment /static/files/MBI/Module%2014/M14-S2%20-%20Patents.mp3>>

<<AudioFragment /static/files/MBI/Module%2014/M14-S2%20-%20Patents%20v2.mp3>>

A [[Design]] in the EU
* The appearance of a product resulting from"
** Lines
** Contours
** Colours
** Shape
** Texture
** Materials
* Visible features when in normal 8se
* Features of appearance which are solely dictated by their technical function

[[Design Law]]
[[Database Law]]
[[Copyright Law]]
[[Do's and don'ts]]
Cold calling is the term for contacting customers you neve met before. Make sure that you use and prepare high quality [[Selling Scripts]] for your purpose.
The normal distribution is the most widely used statistical distribution and is defined by its mean $ \large \mu $ and standard variance $\large  \sigma $

$\Large P(x)$ = $\LARGE \frac{1}{{\sigma \sqrt {2\pi } }}e^{{{ - \left( {x - \mu } \right)^2 } \mathord{\left/  {\vphantom {{ - \left( {x - \mu } \right)^2 } {2\sigma ^2 }}} \right. } {2\sigma ^2 }}}$

The ''standard normal distribution'' is scaled back to a mean of 0 and a standard deviation of 1:

$\Large Z= \frac {X-\mu}{\sigma}$

<img src="/static/files/MBI/Module%207/stdnormaldist.jpg" width=500

Useful properties of the normal distribution are:
* The total area under the standard normal distribution curve is 1.
* At Z=0 the total area under the curve is 0.5
* To measure the area between two Z-values you can subtract the z values (Look up in the [[Standard Normal Distribution Table]]) To find the probability of a value between 1 and 1.1 standard deviations above the mean you calculate:
Area above Z = 1 is 0.1587
Area above Z = 1.1 is 0.1357
Therefore the area between Z=1 and Z=1.1 is 0.3413 - 0.3413 = 0.0230
* It is symmetric. The probability to be -Z away from the mean is equal to being away +Z.

The normal distribution can be used to approximate the binomial distribution, $\large np$ is the mean and $\large \sqrt{np(1-p)}$ is the standard deviation of a binomial distribution. Therefore Z can be written as:
Z = $\Huge \frac{X=np}{\sqrt {np(1-p)}}$

And the poison distribution:
Z = $\Huge \frac{X-\lambda}{\sqrt \lambda}$

Example of the latter. If the average # of broken eggs is 50. What is the probability there will be more than 70 broken eggs?

Mean = $\lambda$ = 50
Standard deviation= $\sqrt \lambda$ = 7.07107

The area requires is the area above X=70.5 so Z will be:
Z = $(70.5 - 50)/7.07107 = 2.8988
This makes the probability 1 - 0.5 - 0.4980 = 0.002

Part of: [[M7-Quantitative Decision Methods-S3 - Normal Distribution and confidence intervals]]


Quick visual thinking on Eric Ries concept of pivot
See this [[pdf|/static/files/MBI/PerfectingYourPitch.pdf]]
Finance is about two things:
# Raising capital
# Investing capital
with the objective of increasing the wealth of the shareholders. The role division can be described as:
* Cash planning
* Bank relation
* Risk
* Insurance
* Dividend policy
Cares about:
 Cash in 
 Cash out
-> $\Large \Delta$ in cash balance.

* Budgeting
* Record keeping
* Auditing
* Taxation
* Salary administration
Cares about:
Revenue - 
-> Profit

How to discriminate different types of business?
|Electrical Utility|Capital intensive|High Property and Equipment costs|
|Trading Company|Volume driven business|Low fixed assets, low margins, high inventory turnover|
|'Japanese' Company||Long term debt / Owner's equity is the largest of all|
|Supermarket|Very short collection period|Very low account receivable ,Low margins|
|Aero space|Low turnover, High Inventories||
The idea of learning effects is that as output increases, a firm gains experience. This allows a firm to conduct its business more efficiently, thereby decreasing costs and increasing quality.

Part of [[Early mover effects]]
Cash is no longer king:
* Cash flows are transformed
* Cash inflows become revenues
* Cash outflows become expenses
* Realization principle (prudence)
* Matching principle
* Accounting profit
* Accrual accounting versus cash accounting
As a result, you can have revenues in a certain period without having cash inflows, you can have cash outflows without having costs (expenses)
Part of [[M5-S6 - Reading - Summary Teece - Profiting from technological innovation]]

Three classes of players are of interest
# Innovators
# Imitators
# Owners of cospecialized assets (e.g. distributors).

The vertical axis in fig. 11 measures how those who possess the technology (the innovator or possibly its imitators) are positioned vis a vis firms that possess required specialized assets.The horizontal axis measures the “tightness” of the appropriability regime. Weak regimes are further subdivided according to how the innovator and imitators are positioned vis vis each other.

<img src="/static/files/MBI/Module%205/integrationversuscontractingspecializedassets.PNG" width="600" />

Incorrect strategies can compound problems:
* If innovators integrate when they should contract,a heavy commitment of resources will be incurred for little if any strategic benefit, thereby exposing the innovator to even greater losses than would otherwise be the case.
* If an innovator tries to contract when it should build the capability itself, it may well find it has nutured an imitator better able to serve the market than the innovator itself.
''Every time you ask someone to buy something you ask them to make a change...''

People react very different to change. It can be viewed by them as a threat or as an opportunity. The buyers perception is determined by:
* Immediate business situation
* How proposal will change that situation
* Whether or not that change will make the needed impact

See also: [[Kotter's 8-Step Change Model - Change Management Training from]]@management
In [[The Lean Startup]] a //''Value Hypothesis''// is an hypothesis that tests if a product or service delivers value once they are using it. A good metric for testing the value hypothesis is the //time the product or service is actually used//
<<AudioFragment /static/files/MBI/Module%2021/M21-S1%20-%20Audio%20-%20Russki.mp3>>
GAAP stands for ''G''eneral ''A''ccepted ''A''ccounting ''P''rinciples. Every country has its own GAAP.
Copied from and modified:

!When do you start sales?
If you’re a founder you’re probably already doing sales even if you don’t really understand exactly what you’re doing. Your passion and domain understanding can translate remarkably well into enthusiastic product pitches and demos. You probably built your software to solve a problem, perhaps one you suffered from yourself, so you know all about it. This has pushed you well into the sales sphere.

You might be doing a lot of “low-touch” sales, in which case it may be that you don’t even need a sales force—for years Fog Creek didn’t have one, and most of our sales still happen without any human intervention.

These low-touch sales are driven by marketing. You make a great website, you test how it’s doing, you change what’s failing.  You send out automatic emails, you try different copy—you dump the one that started, “I am the prince regent of a great and wealthy country…”

The line between sales and marketing is not clearly drawn, and the functions have huge overlap.  I almost think we need a new word for this.  Smarketing? Smales?

OK, smales.  This is the world of Patrick MacKenzie of Bingo Card Creator fame (and Avinash Kaushik, and Rob Walling, and Darmesh Shah, and so on). Smales is hugely important. It’s a low-cost way to increase sales, and especially if you’re technical, you should do this first. Do it frequently and do it always. You’ll want to start a sales team after you think you’ve squeezed everything you can out of smales. Remember, though, at some level, sales is always going on.

For now I only want to talk about the sales that human beings conduct with other human beings.

Even though the internet has radically changed sales channels, the basics of selling person-to-person haven’t changed at all.

!What is Sales?

Many technical people tend to have a rather, shall we say, uncharitable view of sales people.  They think something like the following: Sales is full of charlatans and hucksters who lie and inveigle and pressure; no one wants to talk to them and the thought of actually being one makes a root canal sound like a vacation.

That’s not so good.

But this is just a stereotype—not without some cause, for sure, but it doesn’t really deserve the weight it once did. Mature and responsible salespeople don’t act like that because they don’t need to, and because they understand that such behavior is classic win-lose.  The sales people of the stereotype are trying to force you into something you are unsure about and they make the whole thing feel like a battle where you have a lot to lose.  You don’t have to be that kind of salesperson, or have that kind of sales culture, and in fact, if you do, then you’re taking a very short-term view of your business.

So let’s try that again.

* ''Sales is a conversation.''

Ah! That’s it. That’s the most basic thing you need to know in order to demystify sales.  You’ve all had conversations, so you’re off to a good start. Sales conversations just tend to be a specific kind of conversation, one that you can become better at, and one that tends to take a particular form.

There is one other part to this sales demystification process that deserves top billing before we move on.

* ''Sales is problem solving.''

There are people in the world with a problem of some kind.  Some subset of those people need this problem fixed and is seeking a solution. You’re one of the people who can fix that problem, and you need to show them that your fix is the best one for them.  Again, that’s it.

Sales is a mindset as much as it is a set of skills.  If you believe that sales is hard, scary, underhanded, and manipulative, then that’s what it will be, and you’ll hate it, and fear it.

Let’s put these ideas together into one sales demystifying sentence: Sales is a conversation about how to solve a problem.

At its core it really is that simple. If you can learn the truth of that, sales will become radically less frightening.

There is more to it of course, but when you strip away all the advice contained in all the vast number of books on sales, this is what it’s all about.

Let’s talk specifics.

!Breaking Sales Down to Two Things

The success of salespeople hinges on two factors:
1) The quality of the things that come out of their mouths, and
2) The discipline they develop for their sales day.

The first one, quality, tends to be a bit softer—a sort of “I know it when I see it” thing—but it’s still exceptionally important.  You certainly know a good movie when you see one.  You might not be able to explain what makes the movie good, but you still know it. The same will hold for good sales people, and when you educate yourself about what to look for, you’ll become very good at figuring out what actually separates good sales people from bad ones.

The second part, discipline, focuses on process and more readily yields to data analysis. We’ll get to that in a later section.

When talking about the quality of things emerging from your mouth, there are again two main parts to consider, a) your sales and presentation skills, and b) your product and market knowledge.

!!Product knowledge

I am assuming that you make a great effort to understand everything you can about your product and your market. Study. Memorize. Practice. I don’t have much to add here, except to say, that the better your domain knowledge, the better your conversations will go. Neglect this and you’re crippling yourself as a sales person.

You’ll often find that sales people frequently have a fear of sounding dumb, especially if there is a large difference between the technical skills of the salesperson and the people they normally talk to.  This tends to lead to timid and boring presentations.  It also involves a lot of mumbling and low-talking while the sales person desperately prays for a change of topic from the one they only dimly grasp. Sometimes they will just blurt out, “Java!” and hope the whole thing goes away.

There are two fixes for this, the first I already mentioned, which is to crush your areas of ignorance.  If you plan to be a top performer in your field, then this is part of the cost. Just accept it.

The other way to mitigate this worry is to never pretend to know things you don’t know. Learn to say, “I don’t know” with total ease.  If you start to get into tricky terrain, don’t guess, and don’t speculate, just say, “I don’t know, but I’ll find out for you.”

Always be fearless with “I don’t know,” but also do a bit of self-analysis. Recognize that if you find yourself saying this so often that it would just be easier to have someone else handle the call, then you’ve got ignorance crushing to do and you better get to it!

!Sales Skills

!!The buying process

Understanding the buying process is important because it gives you a framework for understanding and analyzing what you’re doing.  Good sales books all have some view about how the sales process unfolds. I think the clearest and most useful articulation of this is in Frank McNair’s book, [[How you make the sale]]. It’s a short and readable book which will give you a nice foundation in the sales process. In an abbreviated form the sales process looks like this: You find out what problems the prospect is having, you present your solution, you deal with objections, you close, and usually you follow up.

Each of these can be exhaustively discussed and dissected (plus I left a couple out), but remember, we’re doing the basics.

<<tiddler [[Questions]]>>
<<tiddler [[Stories]]>>
!!Features and Benefits
<<tiddler [[Features and Benefits]]>>
<<tiddler [[Closing]]>>
<<tiddler [[Objections]]>>
<<tiddler [[Quality]]>>
A couple of last semi-random thoughts about quality
* Don’t interrupt your prospect when she is talking. Rude. Annoying. You miss good information.
 Don’t ask about the weather. It’s a cliché, and it’s so painfully artificial. Feel free to get down to business quickly. That’s why you’re all on the phone.
* Do everything for your prospects. For god’s sake don’t ever tell them the documentation is on the website and they can search for it. Are you serious? Find what they need and send it to them. Take care of everything. Everything you don’t take care of is a thing they probably won’t do even if they say they will.

Next we’re going to shift over to the second large area I said sales people need to be concerned with: how you spend your day.


If you’re a small shop, or a technical founder, or have technical resources available to you, then look around for things to automate. This is all about saving time and creating efficiencies so that you have more time for the squishy, but very valuable, person-to-person stuff.

New trials of FogBugz and Kiln at Fog Creek get turned into cases in our internal FogBugz install. Cases are assigned to a salesperson based on criteria we’ve set, and then the prospect is marked as belonging to the salesperson in our CRM system.

For over a year I did this manually, and it took me about 2.5 hours per week. What a total waste of time. We got a bit of (incredibly useful) spare tech time and now this all happens automatically, and I only know about it when it breaks, which it never does.

These sorts of internal process automations often get neglected because they’re not a new feature or a new product and don’t bring in new money in obvious ways. But never forget that operations efficiencies made Michael Dell a rich man. It’s one of the primary competitive advantages that a company can go for, and even if it isn’t one of yours, make absolutely sure operations inefficiencies are not an active drag.

You always have to do the cost-benefit-analysis, but it’s a pretty safe assumption that operations automations will save you time and money. Just make sure you don’t get overzealous—it’s this kind of thinking that has given the world the Acherontic automated phone tree.

!!What to do with your day
I don’t like to be rigid about this because autonomy is an important element of job satisfaction.

But I have found that sometimes people just need some guidance here. I’ve made the mistake of assuming that everyone would figure out a way that works for them, but they often don’t, so what follows is some advice on being better at the process side of sales.

First, have a sales tool of some kind that you use. I don’t care what it is; Fogbugz, Highrise, Salesforce, SugarCRM—it doesn’t really matter as long as you use it consistently and you don’t lose things in it. This system is the center of your day and gives you confidence that you’re not missing anything. It’s where you schedule your activities. It’s the tool you rely on to set your daily agenda.

In a perfect world someone will be able to pull lots of different kinds of data from it to do interesting analysis, like how long it takes to convert someone, which are the highest value prospects, and many other nuggets of useful business analysis.

How you spend your day will vary a lot depending on your business.  Do you do a lot of outbound, cold calls? Do you make $100,000 sales or do you tend to hover in the $2,000 range?  There will be many factors determining how your sales team operates. It might be that you’re the only sales person and also the technical lead (and bookkeeper, and hiring manager, and wastebasket cleaner).

There is at least one thing that is common to all of these situations: The need to set aside some time for uninterrupted planning each day. Sales people are interrupted a lot, and this can be mentally taxing. Take some time every day to calmly think about what you need to get done for the next day. Turn your phone off and let calls go to voicemail—there is no sales call that can’t wait an hour if necessary.

Whether you plan the night before or in the morning is a matter of taste, but this I know from lots of observation and experience: if you get to work and dive in without some semblance of a plan your day will be much more chaotic and reactive than it needs to be. All day will feel like you’re playing catch-up and you’ll likely go home with the nagging sense that you didn’t get to something important.

Do this: Just commit to one week of planning your sales day before you jump into the actual work and see if it makes a difference.

!!Your day in some more detail
I’m going to assume that you spend most or all of your day doing sales—adjust as necessary if that’s not the case.

Salespeople all have a pipeline—this is the set of prospects or leads that might convert to users or sales. Keeping that pipeline healthy is important. Doing that is often a function of smales (see part 1) which feeds you new leads, it’s also a function of the quality of things that come out of your mouth, but crucially, it’s a function of your personal organization and follow-up.

People that are good at the process aspect of sales have a very high tolerance for making lots of calls and sending out lots of email replies, and all other things being equal, they create an advantage for themselves.

!!The phone

Many places set really draconian call targets that salespeople must meet each day. Seventy calls, eighty calls, sometimes more. We don’t do that at Fog Creek because these sorts of targets are so easily gamed and don’t often serve your larger business goals.

But the purpose behind them is sound, even if the execution is not. What these goals attempt to capture is the importance of getting on the phone. If you convert the prospects you talk to at a 3% rate, and you talk to one hundred prospects, wallah, you have three new customers. Obviously, if you talk to two hundred prospects, you have six new customers. That’s what these call number requirements are after (by the way, the whole quality section of this series is about improving that conversion percentage).

I much prefer to have that impulse come naturally from the sales people. I certainly monitor the number of calls that are happening, and I’ll have a conversation if they get too low, but an internally motivated person is a million times preferable to the people you have to berate. I hate it, they hate it, and then they are working from fear, and not the personal desire for accomplishment, praise, self-satisfaction, or what have you.

So here is the point: block out a significant section of each day for sustained and uninterrupted calls. Paul Kenny told me the story of the most successful salesperson he ever saw—a guy whose business had failed, and who was doing sales to build up his stock of capital so he could start a new business—in other words, a highly motivated and focused person. This guy, pay attention, there is an important lesson coming here, this guy would block out around four hours each day and make calls non-stop. He made it a personal rule that the phone would not touch the cradle for that whole time, so he kept it draped over his shoulder as he dialed the next call, or made his notes from the previous call.

Similarly, one of the best salespeople we ever had at FogCreek would open up twenty-five or thirty tabs in her browser, each of them a prospect she wanted to call.  She worked from right to left through the list and closed each tab when she was done with it.

When you plan your calling day, do your most valuable calls first. Then if you need to slip calls to the next day, you’re shifting the less important ones. Just be cautious that you’re not forever slipping calls that then never get made.

This discipline matters and it makes an enormous difference. It’s not easy, but if you do it, you will be light years ahead of your peers. In fact, you might have to stop calling them peers.

!!How many calls?

There is no set number since there are so many variables that can affect what makes sense.  But keep in mind that many sales people estimate the number of calls they can make based on getting through to people, and so they think they can make eight or twelve calls. This is a mistake.  The vast majority of your calls will result in no talking at all.

What you want is a fairly heavy rotation for people you’re trying to get a hold of. Try to reach them often. At one point I discovered that some of the salespeople at Fog Creek would make an initial call to  someone with a new trial and if the salesperson didn’t get through, the prospect was put in for another call in two weeks.


Call them the next day. Hell, maybe later the same day. Initially you just won’t leave any voicemail messages. It’s just a call with no result. Note it and move on. Remember this is about keeping your pipeline healthy and having productive conversations. It’s just like the 3% close example above. If 10% of your calls result in a conversation and you have ten calls per day, you get one conversation ….ok, you get it. Make your calls.

A call without a conversation costs you maybe two minutes at the outside. If you’re well organized it’s not unreasonable to think you could do thirty calls in an hour, possibly more. If you have a conversation, fantastic!  That’s what we’re after, not some arbitrary number.

Now, I strongly suggest that you reserve an hour or two a day for this level of sustained calling. I don’t think most people can keep that high pace going all day long, but if you do an hour in the morning and an hour in the afternoon, you can certainly keep that up. Do more if you can. And just abandon and forget the notion that you’ll “get to the calls in between other things.” This is a fallacy a fraud and a fantasy.

You must reserve time exclusively for calls. Anything else is sub-optimal and is often just avoidance. Anything else is like hunting for gnats when you can order a porterhouse.

At some point after they’ve been in the rotation for a bit you may shift over to email, leave a voicemail, send a snail mail, put them on a much less frequent rotation, or abandon them. You’ll have to figure out where those lines are, but they are probably not as tight as your first impulse suggests.

Save voicemails for when you’ve tried to reach the prospect five or ten times. Most people just never return voicemails from a salesperson, so this tends to be a waste of time. Opinions differ on this topic, but that’s mine. It really depends on what you have to offer, though. If your voicemail said, “If you call me today I can get you 75% off your purchase,” well, OK, then they’ll call you back.


The purpose of the calls is to help people decide to use your product if it’s a good fit for them. In addition to calling new prospects, you should make follow-up calls so you can keep tabs on how the evaluation is going. It lets you intervene if there are bumps in the road. If a problem has developed and you have not been in contact with them, you will not know it until you’ve lost the sale.

Let me tell you another story.

I recently moved to a new apartment and needed to get blinds for the windows.  I had a guy come out and take measurements, show me samples, and give me the whole spiel.  Really nice guy. Did a great job. Explained everything clearly and set expectations really well.  And then? Nothing. Total silence.

Actually I was on the fence about buying.  It was a little more than I wanted to spend, so I sat on the decision for a while. Even so, there is a high chance that if he had called to follow up with me once or twice he could have convinced me to take the plunge.

He just lost a sale because he doesn’t have a good (or perhaps any) system for following up.  All I had was a price objection, and he probably has several ways to overcome that.  For the investment of maybe two phone calls, he had perhaps a 75% chance to make the sale.  In the end I bought from and did it myself.  Oh well.

The price objection won because that was the only debater at the debate. No one else showed up. When you follow-up you’re getting yourself a seat at the conversation. You might still lose, but you can’t win if you don’t show.

And please remember the cardinal rule—do what you say you will. Part of sales is establishing credibility and trust, and these things can rise and fall on small moments like sending the article you promised to send, so always do that. Get it into your to do list, make a slot for it like it was a call, whatever it takes, but don’t forget.

Don’t chase inside straights

Develop, preferably through data or a formal process, a sense of what constitutes a good lead. Too many times I’ve heard this from a salesperson, “Had a great conversation with Company X and I think they’ll purchase next week.”

Awesome, sounds good.

Me: How many users?
Salesperson: I don’t know.
Me: Did you talk to the person who is going to make the decision?
Salesperson: I think so.
Me: When are they going to make a final decision?
Salesperson: Mmmm, not sure.
Me: What other tools are they looking at?
Salesperson: I didn’t ask.

OK, if you’re that salesperson you don’t get a cookie. You don’t know anything. That’s not a qualified lead, that’s a pipedream.

In order to know which leads are your most important, you need to get some of these very basic facts. If you don’t have those facts you’ll spend your time chasing chimeras while the real prospects go unattended.

We use a checklist to determine where in the buying process any given prospect we’ve spoken to happens to be right now. At a minimum you should be able to answer these questions about any lead you’re spending time on: 1) Who is making the final decision? 2) When are they going to make the decision? 3) How much will they need to buy? 4) What are they using now? 5) What other solutions are they considering?

You’re a lot further ahead if you know these things. If asking about any of this stuff makes you uncomfortable, go back to the questions section. You are trying to gather information so you can save everyone’s time and give them more precise answers to their needs.

!Last Thoughts
Anyone can learn to do sales, you just need to have the right mindset. Yes, it can seem very scary, but you’re just talking to other people, who have jobs, and desires, and concerns just like you. Try to be yourself, and remember you are simply having conversations about how to solve a problem.

Like any skill you can get better at it with practice, but find time to practice when you’re not talking to a prospect. No one got any good at the violin by practicing only during concerts.

If you have an obnoxious and pushy sales culture you’re doing it wrong. You can become exceptionally good at sales without making people hate you. In fact, people will really appreciate the help you give them.

Lastly, I’ve got a secret for you. Even though this was directed mainly at people who spend a chunk of time directly in sales conversations, the fact is everyone in your company is in sales. Everyone. Self-identification has nothing to do with it. You have a product or a service, and you want people to buy it or use it (or join or donate). That’s the fundamental purpose of your organization no matter what other noble and laudable goals you adorn it with. Every programmer, receptionist, support tech, accountant, and CEO is a salesperson in your organization, and they would all do well to think about how the above advice might apply to them.
version.extensions.ta = {
	major: 0, 
	minor: 1, 
	revision: 0, 
	date: new Date(2006,5,24),
config.macros.ta = {
		var div = document.getElementById("div" + idDiv);
		var td = div.parentNode;
		while(td.tagName!="TD" && td.tagName!="TH"){
		var tr = td.parentNode;
		for (var i=0;i<tr.childNodes.length;i++){
			var aux = tr.childNodes[i];
			if (aux.tagName=="TD" || aux.tagName=="TH") {	
					var x=0;
						x = parseFloat(aux.innerText);			
						x = parseFloat(aux.textContent);			
					if (!isNaN(x))
		var div = document.getElementById("div" + idDiv);
		var td = div.parentNode;
		while(td.tagName!="TD" && td.tagName!="TH")
		var coluna = td.cellIndex;
		var tbody = td.parentNode.parentNode;
		for (var i=0;i<tbody.childNodes.length;i++){	
			var tr = tbody.childNodes[i];
			var aux = tr.childNodes[coluna];
			if (aux.tagName=="TD" || aux.tagName=="TH") {	
					var x=0;
						x = parseFloat(aux.innerText);			
						x = parseFloat(aux.textContent);			
					if (!isNaN(x))
		avg:function() {
			this.process=function (valor){
		sum:function (){
			this.process=function (valor){
		mul:function (){
			this.process=function (valor){
				if (this.resultado > 0 )
					this.resultado=this.resultado * valor;
				if (this.resultado==0)
		min: function(){
			this.process=function (valor){
				if (this.resultado=="")
				if (valor<=this.resultado)
			this.process=function (valor){
				if (this.resultado=="")
				if (valor>=this.resultado)
		count: function(){
			this.process=function (valor){
	handler:function(place,macroName,params) {
		var rowCol = params[0].toUpperCase();
		var func = params[1].toLowerCase();
		var counter=++config.macros.ta.counter;
		place.innerHTML="<div id=div" + counter + "></div><iframe "
					  + "onload='{var o=new config.macros.ta.funcs." + func + "();"
					  + "config.macros.ta.process" + rowCol + "(o," + counter + ");}' "
					  + "style='display:none'>"
|Author|Eric Shulman|
|Original Author|Clint Checketts|
|Description|present a 'cloud' of tags (or links) using proportional font display|
<<cloud type action:... limit:... tag tag tag ...>>
<<cloud type action:... limit:... +TiddlerName>>
<<cloud type action:... limit:... -TiddlerName>>
<<cloud type action:... limit:... =tagvalue>>
* //type// is a keyword, one of:
** ''tags'' (default) - displays a cloud of tags, based on frequency of use
** ''links'' - displays a cloud of tiddlers, based on number of links //from// each tiddler
** ''references'' - displays a cloud of tiddlers, based on number of links //to// each tiddler
* ''action:popup'' (default) - clicking a cloud item shows a popup with links to related tiddlers<br>//or//<br> ''action:goto'' - clicking a cloud item immediately opens the tiddler corresponding to that item
* ''limit:N'' (optional) - restricts the cloud display to only show the N most popular tags/links
* ''tag tag tag...'' (or ''title title title'' if ''links''/''references'' is used)<br>shows all tags/links in the document //except// for those listed as macro parameters
* ''+TiddlerName''<br>show only tags/links read from a space-separated, bracketed list stored in a separate tiddler.
* ''-TiddlerName''<br>show all tags/links //except// those read from a space-separated, bracketed list stored in a separate tiddler.
* ''=tagvalue'' (//only if type=''tags''//)<br>shows only tags that are themselves tagged with the indicated tag value (i.e., ~TagglyTagging usage)
//note: for backward-compatibility, you can also use the macro {{{<<tagCloud ...>>}}} in place of {{{<<cloud ...>>}}}//
//all tags excluding<<tag systemConfig>>, <<tag excludeMissing>> and <<tag script>>//
{{{<<cloud systemConfig excludeMissing script>>}}}
{{groupbox{<<cloud systemConfig excludeMissing script>>}}}
//top 10 tags excluding<<tag systemConfig>>, <<tag excludeMissing>> and <<tag script>>//
{{{<<cloud limit:10 systemConfig excludeMissing script>>}}}
{{groupbox{<<cloud limit:10 systemConfig excludeMissing script>>}}}
//tags listed in// [[FavoriteTags]]
{{{<<cloud +FavoriteTags>>}}}
{{groupbox{<<cloud +FavoriteTags>>}}}
//tags NOT listed in// [[FavoriteTags]]
{{{<<cloud -FavoriteTags>>}}}
{{groupbox{<<cloud -FavoriteTags>>}}}
//links to tiddlers tagged with 'package'//
{{{<<cloud action:goto =package>>}}}
{{groupbox{<<cloud action:goto =package>>}}}
//top 20 most referenced tiddlers//
{{{<<cloud references limit:20>>}}}
{{groupbox{<<cloud references limit:20>>}}}
//top 20 tiddlers that contain the most links//
{{{<<cloud links limit:20>>}}}
{{groupbox{<<cloud links limit:20>>}}}
2009.07.17 [1.7.0] added {{{-TiddlerName}}} parameter to exclude tags that are listed in the indicated tiddler
2009.02.26 [1.6.0] added {{{action:...}}} parameter to apply popup vs. goto action when clicking cloud items
2009.02.05 [1.5.0] added ability to show links or back-links (references) instead of tags and renamed macro to {{{<<cloud>>}}} to reflect more generalized usage.
2008.12.16 [1.4.2] corrected group calculation to prevent 'group=0' error
2008.12.16 [1.4.1] revised tag filtering so excluded tags don't affect calculations
2008.12.15 [1.4.0] added {{{limit:...}}} parameter to restrict the number of tags displayed to the top N most popular
2008.11.15 [1.3.0] added {{{+TiddlerName}}} parameter to include only tags that are listed in the indicated tiddler
2008.09.05 [1.2.0] added '=tagname' parameter to include only tags that are themselves tagged with the specified value (i.e., ~TagglyTagging usage)
2008.07.03 [1.1.0] added 'segments' property to macro object.  Extensive code cleanup
version.extensions.TagCloudPlugin= {major: 1, minor: 7 , revision: 0, date: new Date(2009,7,17)};
//Originally created by Clint Checketts, contributions by Jonny Leroy and Eric Shulman
//Currently maintained and enhanced by Eric Shulman
//{{{ = {
	tagstip: "%1 tiddlers tagged with '%0'",
	refslabel: " (%0 references)",
	refstip: "%1 tiddlers have links to '%0'",
	linkslabel: " (%0 links)",
	linkstip: "'%0' has links to %1 other tiddlers",
	groups: 9,
	init: function() {; // for backward-compatibility
			+'.tagCloud span {line-height: 3.5em; margin:3px;}\n'
			+'.tagCloud1{font-size: 80%;}\n'
			+'.tagCloud2{font-size: 100%;}\n'
			+'.tagCloud3{font-size: 120%;}\n'
			+'.tagCloud4{font-size: 140%;}\n'
			+'.tagCloud5{font-size: 160%;}\n'
			+'.tagCloud6{font-size: 180%;}\n'
			+'.tagCloud7{font-size: 200%;}\n'
			+'.tagCloud8{font-size: 220%;}\n'
			+'.tagCloud9{font-size: 240%;}\n'
	getLinks: function(tiddler) { // get list of links to existing tiddlers and shadows
		if (!tiddler.linksUpdated) tiddler.changed();
		var list=[]; for (var i=0; i<tiddler.links.length; i++) {
			var title=tiddler.links[i];
			if (store.isShadowTiddler(title)||store.tiddlerExists(title))
		return list;
	handler: function(place,macroName,params) {
		// unpack params
		var inc=[]; var ex=[]; var limit=0; var action='popup';
		var links=(params[0]&&params[0].toLowerCase()=='links'); if (links) params.shift();
		var refs=(params[0]&&params[0].toLowerCase()=='references'); if (refs) params.shift();
		if (params[0]&&params[0].substr(0,7).toLowerCase()=='action:')
		if (params[0]&&params[0].substr(0,6).toLowerCase()=='limit:')
		while (params.length) {
			if (params[0].substr(0,1)=='+') { // read taglist from tiddler
			} else if (params[0].substr(0,1)=='-') { // exclude taglist from tiddler
			} else if (params[0].substr(0,1)=='=') { // get tag list using tagged tags
				var tagged=store.getTaggedTiddlers(params[0].substr(1));
				for (var t=0; t<tagged.length; t++) inc.push(tagged[t].title);
			} else ex.push(params[0]); // exclude params
		// get all items, include/exclude specific items
		var items=[];
		var list=(links||refs)?store.getTiddlers('title','excludeLists'):store.getTags();
		for (var t=0; t<list.length; t++) {
			var title=(links||refs)?list[t].title:list[t][0];
			if (links)	var count=this.getLinks(list[t]).length;
			else if (refs)	var count=store.getReferringTiddlers(title).length;
			else 		var count=list[t][1];
			if ((!inc.length||inc.contains(title))&&(!ex.length||!ex.contains(title)))
				items.push({ title:title, count:count });
		if(!items.length) return;
		// sort by decending count, limit results (optional)
		while (limit && items.length>limit) items.pop();
		// find min/max and group size
		var most=items[0].count;
		var least=items[items.length-1].count;
		var groupSize=(most-least+1)/this.groups;
		// sort by title and draw the cloud of items
		var cloudWrapper = createTiddlyElement(place,'div',null,'tagCloud',null);
		for (var t=0; t<items.length; t++) {
			cloudWrapper.appendChild(document.createTextNode(' '));
			var group=Math.ceil((items[t].count-least)/groupSize)||1;
			var className='tagCloudtag tagCloud'+group;
			var tip=refs?this.refstip:links?this.linkstip:this.tagstip;
			if (action=='goto') { // TAG/LINK/REFERENCES GOTO
				var btn=createTiddlyLink(cloudWrapper,items[t].title,true,className);
			} else if (!links&&!refs) { // TAG POPUP
				var btn=createTiddlyButton(cloudWrapper,items[t].title,tip,onClickTag,className);
				var btn=createTiddlyButton(cloudWrapper,items[t].title,tip,
					function(ev) { var e=ev||window.event; var;
						var popup = Popup.create(this);
						var title = this.getAttribute('tiddler');
						var count = this.getAttribute('count');
						var refs  = this.getAttribute('refs')=='T';
						var links = this.getAttribute('links')=='T';
						var label = (refs?cmt.refslabel:cmt.linkslabel).format([count]);
						if (refs) {
						if (links) {
							var tiddler = store.fetchTiddler(title);
							for(var i=0;i<links.length;i++)
						e.cancelBubble=true; if(e.stopPropagation) e.stopPropagation();
						return false;
					}, className);
This model rests on a double license system:
# An open source license for the standard product
# A license that is more protected
Companies do not exist in sole isolation. Their value chains often depend on and are closely intertwined with the value chains of their partners and suppliers. The group of partners that a company works with to deliver a product or a service to its customers is called a 'value network'.

<<image /static/files/MBI/Module%208/valuenetworkpartners.PNG width:600>>

* Upstream value chain partners include direct suppliers and business to business exchanges
* Downstream value chain partners include wholesalers, distributors, retailers and customers
* Strategic core value chain partners fulfill core value chain activities.
* Non-Strategic core value chain partners fulfill functions such as finance, accounting or travel
* Value chain integrators such as strategic outsourcing partners, application service providers and system integrators provide the electronic infrastructure for a company.
Part of: [[Strategies for E-Business]]
!Object of play
Reflect on team performance and dynamics by building a tower from marshmallows and spaghetti
!Number of players
Divide up into teams of ~6 person
!Duration of play
20 minutes
!How to play
Read [[this|]]
<<tiddler [[Marshmallow game talk]]>>
* Let the teams decide on strategy.
* Make photo's of the teams during the game
* Have each team evaluate + and - of the game

Played in the MBI block 15 
Non-current assets are assets that are not turned into cash easily, are expected to be turned into cash within a year and/or have a life-span of more than a year. They can refer to
* [[Tangible assets]] such as machinery, computers, buildings and land. 
* [[Intangible assets]], such as goodwill, patents or copyright.
Read the full case [[here|/static/files/MBI/Module%2017/zara.pdf]]

#  Map out Zara’s product design, production, supply chain management, and retailing processes. What do you find interesting, different or surprising about them?
## Large 'control of own destiny;
## Little outsourcing
# What are the reasons behind Zara’s success? What does it do well and how does it do them?
## Sales forecasting
## Branding through stores at high end locations
## Limited supply and affordable exclusivity
## "The retailer is therefore highly competitive. If a design doesn't sell well within a week, it is apparently withdrawn from shops, further orders are cancelled, and a new design is pursued. No design stays on the shop floor for more than four weeks, which encourages Zara shoppers to make repeat visits"
# Who should pay for inventory at the retail shops: store managers or the headquarters? What about joint-venture and franchised stores? Why?
## It should be headquarters, also for the joint-ventures and the franchised stores, crucial for the brand is the high turn over, if the risk for inventory of non-current fashion assets will rely at the franchise, it will hurt the Zara brand
# Compare Zara’s approach to two other successful competitors: H&M and Benetton (look for information on these two others using their internet websites)
## H&M:
### Owns the stores
### Outsources manufacuring
### Direct distribution from production suppliers to the stores (no central warehouse)
## Beneton
### Owns manufacturing and design
### Sells through 3rd party stores
* Sending out small 'test batches' of clothing to stores in top locations
* Mariage between retail and manufacturing
* Zara is one brand in a bigger mother company, Inditex
* Each brand operated with its own stores, warehouses.
* Corporate service were:
** Legal, Finance, Acquisitions
** Focus on affordable fashion
** Share business model for control of supply, distribution and production
* Negative working capital model: cash came in faster than it would go out
* Zara owned most of the stores (small portion in franchises and joint ventures
* Extensive market research on the viability of retail locations
* Prestigious locations: expensive but still 'pleasant' use of available floor space
* Stores were designed in La Coruna and one team was responsible to rebuild new stores.
* "Store managers should focus on sales and customers: not on furniture"
* Little spend on marketing and advertizing: "our stores are our image and we rely on word of mouth"
* Deliberate decision not to focus on internet sales
* Focus on training the sales people
* Simple metric to track sales improvements (compare with same day a year earlier)
* "Fashion not clothing": low inventory to ensure local exclusivity. Affordable fashion.
* Market specialists allocated to regions of stores to create personal relationships with the store managers
* Owned manufacturing facilities in Spain
* Inditex also owned a fabric supplier (90% of the revenue was with Zara)
* Central warehouse with impressive volumes
* Less pre season commitments - High focus on sales forecasts
* Fast turnover - Max 3 weeks - Customers had incentive to buy and decide on the spot or risk that the piece would be gone
* For future expansion the # franchises was expected to grow

Maintenance, Repair and Operations. MRO goods are typically not industry specific and include items such as office supplies, airline tickets and travel services.

Part of: [[B2B e-commerce matrix]]
The author of the book [[The Personal MBA]] recommends the following books (source:

!Productivity & Effectiveness
* 10 Days to Faster Reading by Abby Marks-Beale
* StrengthsFinder 2.0 by Tom Rath
* Getting Things Done by David Allen
* The Power of Less by Leo Babauta
* The 80/20 Principle by Richard Koch
* Bit Literacy by Mark Hurst
* The Power of Full Engagement by Jim Loehr & Tony Schwartz

!The Human Mind
* Brain Rules by John Medina
* Making Sense of Behavior by William T. Powers
* Driven by Paul Lawrence and Nitin Nohria
* Deep Survival by Laurence Gonzales

* On Writing Well by William Zinsser
* Presentation Zen by Garr Reynolds
* Made to Stick by Chip and Dan Heath
* The Copywriter’s Handbook by Robert Bly
* Show Me The Numbers by Stephen Few

* How to Win Friends and Influence People by Dale Carnegie
* Influence: The Psychology of Persuasion by Robert B. Cialdini
* Crucial Conversations by Kerry Patterson et al
* The 48 Laws of Power by Robert Greene

* Sources of Power: How People Make Decisions by Gary Klein
* Smart Choices by John S. Hammond et al
* The Path of Least Resistance by Robert Fritz
* Ethics for the Real World by Ronald Howard & Clinton Korver

!Creativity & Innovation
* The Creative Habit by Twyla Tharp
* Myths of Innovation by Scott Berkun
* Innovation and Entrepreneurship by Peter F. Drucker

!Project Management
* Making Things Happen by Scott Berkun
* Results Without Authority by Tom Kendrick

!Opportunity Identification
* The New Business Road Test by John Mullins
* How to Make Millions with Your Ideas by Dan Kennedy

* Ready, Fire, Aim by Michael Masterson
* The Art of the Start by Guy Kawasaki
* The Knack by Norm Brodsky & Bo Burlingham
* The 4-Hour Workweek by Timothy Ferriss
* Escape from Cubicle Nation by Pamela Slim
* Bankable Business Plans by Edward Rogoff

!Value-Creation & Design
* Rework by Jason Fried and David Heinemeier Hansson
* [[Four Steps to the Epiphany]] by Steve Blank
* The Design of Everyday Things by Donald Norman
* Universal Principles of Design by William Lidwell, Kritina Holden, and Jill Butler

* All Marketers Are Liars by Seth Godin
* Permission Marketing by Seth Godin
* The 22 Immutable Laws of Marketing by Al Ries & Jack Trout
* Getting Everything You Can Out of All You’ve Got by Jay Abraham

* The Ultimate Sales Machine by Chet Holmes
* Value-Based Fees by Alan Weiss
* SPIN Selling by Neil Rackham
* The Sales Bible by Jeffrey Gitomer

* Indispensable by Joe Calloway
* The Goal by Eliyahu Goldratt
* Lean Thinking by James Womack and Daniel Jones

* Bargaining For Advantage by G. Richard Shell
* 3-D Negotiation by David A. Lax and James K. Sebenius
* The Partnership Charter by David Gage

* First, Break All The Rules by Marcus Buckingham & Curt Coffman
* 12: The Elements of Great Managing by Rodd Wagner & James Harter
* Growing Great Employees by Erika Andersen
* Hiring Smart by Pierre Mornell
* The Essential Drucker by Peter F. Drucker

* Tribes by Seth Godin
* Total Leadership by Stewart Friedman
* What Got You Here Won’t Get You There by Marshall Goldsmith
* The New Leader’s 100-Day Action Plan by George Bradt et al
* The Halo Effect by Phil Rosenzweig

!Finance & Accounting
* Accounting Made Simple by Mike Piper
* Essentials of Accounting (9th Edition) by Robert N. Anthony and Leslie K. Breitner
* The McGraw-Hill 36-Hour Course in Finance by Robert A. Cooke
* How to Read a Financial Report by John A. Tracy

* Thinking in Systems by Donella Meadows
* Work the System by Sam Carpenter
* Learning from the Future by Liam Fahey & Robert Randall

* Turning Numbers Into Knowledge by Jonathan Koomey
* Marketing Metrics by Paul W. Farris et al
* Web Analytics: An Hour a Day by Avinash Kaushik
* The Economist Numbers Guide by Richard Stuteley

* How to Lie with Statistics by Darrell Huff
* Principles of Statistics by M.G. Bulmer

!Corporate Skills
* The Unwritten Laws of Business by W.J. King
* The Effective Executive by Peter Drucker
* The Simplicity Survival Handbook by Bill Jensen

!Corporate Strategy
* Purpose: The Starting Point of Great Companies by Nikos Mourkogiannis
* Competitive Strategy by Michael Porter
* [[Blue Ocean Strategy]] by W. Chan Kim and Renée Mauborgne
* Green to Gold by Daniel Esty & Andrew Winston
* Seeing What’s Next by Clayton M. Christensen, Erik A. Roth, Scott D. Anthony

* Getting Started in Consulting by Alan Weiss
* Secrets of Consulting by Gerald M. Weinberg

!Personal Finance
* Your Money or Your Life by Joel Dominguez & Vicki Robin
* I Will Teach You To Be Rich by Ramit Sethi
* The Millionaire Next Door by Thomas Stanley & William Danko
* Fail-Safe Investing by Harry Browne
* It’s Not About The Money by Brent Kessel
* Work Less, Live More by Bob Clyatt

!Personal Development
* Self-Directed Behavior by David L. Watson & Roland G. Tharp
* Personal Development for Smart People by Steve Pavlina
* Re-Create Your Life by Morty Lefkoe
* Lead the Field by Earl Nightingale
* The Art of Exceptional Living by Jim Rohn
|''Description''|Provides a TiddlySpace version of the backstage and a homeLink macro|
|''Contributors''|Jon Lister, Jon Robson, Colm Britton|
|''Requires''|TiddlySpaceConfig ImageMacroPlugin TiddlySpaceViewTypes|
.tiddler .error.annotation .button{
	display: inline-block;

#backstageArea {
	z-index: 49;
	color: white;
	background-color: black;
	background: -webkit-gradient(linear,left bottom,left top,color-stop(0, #222),color-stop(0.5, #333),color-stop(1, #555));
	background: -moz-linear-gradient(center bottom,#222 0%, #333 50%, #555 100%);
	filter: progid:DXImageTransform.Microsoft.gradient(startColorstr=#ff555555, endColorstr=#ff222222);
	-ms-filter: "progid:DXImageTransform.Microsoft.gradient(startColorstr=#ff555555, endColorstr=#ff222222)";
	height: 25px;
	padding: 0;

#backstageButton {
	overflow: hidden;

#backstageButton #backstageShow,
#backstageButton #backstageHide {
	margin: 0px;
	padding: 0px;

#backstageButton #backstageShow:hover,
#backstageButton #backstageHide:hover {
	background: none;
	color: none;

#backstageButton img,
#backstageButton svg {
	width: 24px;
	height: 24px;

#messageArea {
	top: 50px;

#backstageToolbar {
	position: relative;

#backstageArea a {
	padding: 0px;
	margin-left: 0px;
	color: white;
	background: none;

#backstageArea a:hover {
	background-color: white;

#backstage ol,
#backstage ul {
	padding: auto;

#backstageButton a {
	margin: 0;

.backstagePanelBody ul {
	padding: 5px;
	margin: 5px;

#backstage #backstagePanel {
	margin-left: 5%;
	padding: 0em;
	margin-right: 5%;

#backstageToolbar a {
	position: relative;

#backstageArea a.backstageSelTab,
#backstageToolbar .backstageTask {
	line-height: 25px;
	color: #767676;

.backstageTask .externalImage,
.backstageTask .image {
	display: inline;

#backstageToolbar a span {
	z-index: 2;

a.backstageTask {
	display: inline;
        margin-left: 1em !important;

.backstagePanelBody .button {
	display: inline-block;
	margin-right: 10px;

.backstagePanelBody {
	margin: 0 0 0 0.6em;
	padding: 0.4em 0.5em 1px 0.5em;

#backstage table {
	margin: auto;

#backstage .wizard table {
	border: 0px;
	margin: 0;

#backstage div  li.listLink {
	border: 0px;
	width: 78%;
	font-size: 0.7em;

#backstage div li.listTitle {
	font-weight: bold;
	text-decoration: underline;
	font-size: 1em;
	background: #ccc;
	width: 100%;

#backstage fieldset {
	border: solid 1px [[ColorPalette::Background]];

#backstage .viewer table,#backstage table.twtable {
	border: 0px;

#backstageToolbar img {
	padding: 0;

#backstage .wizard,
#backstage .wizardFooter {
	background: none;

.viewer td, .viewer tr, .twtable td, .twtable tr {
	border: 1px solid #eee;

#backstage .inlineList ul li {
	background-color: [[ColorPalette::Background]];
	border: solid 1px [[ColorPalette::TertiaryMid]];
	display: block;
	float: left;
	list-style: none;
	margin-right: 1em;
	padding: 0.5em;

.backstageClear, .inlineList form {
	clear: both;
	display: block;
	margin-top: 3em;

.tiddlyspaceMenu {
	text-align: center;

span.chunkyButton {
	display: inline-block;
	padding: 0;
	margin: 0;
	border: solid 2px #000;
	background-color: #04b;

span.chunkyButton a.button, span.chunkyButton a:active.button {
	white-space: nowrap;
	font-weight: bold;
	font-size: 1.8em;
	color: #fff;
	text-align: center;
	padding: 0.5em 0.5em;
	margin: 0;
	border-style: none;
	display: block;

span.chunkyButton:hover {
	background-color: #014;

span.chunkyButton a.button:hover {
	border-style: none;
	background: none;
	color: #fff;

#backstage .unpluggedSpaceTab .wizard,
.unpluggedSpaceTab .wizard {
	background: white;
	border: 2px solid #CCC;
	padding: 5px;

.syncKey .keyItem {
	border: 1px solid black;
	display: inline-block;
	margin: 0.2em;
	padding: 0.1em 0.1em 0.1em 0.1em;

.keyHeading {
	font-size: 2em;
	font-weight: bold;
	margin: 0.4em 0em -0.2em;

.unpluggedSpaceTab .putToServer,
.unpluggedSpaceTab .notChanged {
	display: none;

.tiddlyspaceMenu ul {
	margin: 0;
	padding: 0;

.tiddlyspaceMenu ul li {
	list-style: none;

.unsyncedChanges .unsyncedList {
	display: block;

.unsyncedList {
	display: none;
(function ($) {
    var name = "StyleSheet" + tiddler.title;
    config.shadowTiddlers[name] = "/*{{{*/\n%0\n/*}}}*/".
        format(store.getTiddlerText(tiddler.title + "##StyleSheet")); // this accesses the StyleSheet section of the current tiddler (the plugin that contains it)
    store.addNotification(name, refreshStyles);

    if (!config.extensions.tiddlyweb.status.tiddlyspace_version) { // unplugged
        config.extensions.tiddlyweb.status.tiddlyspace_version = "<unknown>";
        config.extensions.tiddlyweb.status.server_host = {
   }; // TiddlySpaceLinkPlugin expects this
    var disabled_tasks_for_nonmembers = ["tiddlers", "plugins", "batch", "sync"];

    var tweb = config.extensions.tiddlyweb;
    var tiddlyspace = config.extensions.tiddlyspace;
    var currentSpace =;
    var imageMacro = config.macros.image;

    if (config.options.chkBackstage === undefined) {
        config.options.chkBackstage = false;

// Set up Backstage
    config.tasks = {};
    config.tasks.status = {
        tooltip:"TiddlySpace Info",
        content:"<<tiddler Backstage##Menu>>"
    config.tasks.tiddlers = {
        tooltip:"tiddlers control panel",
        content:"<<tiddler Backstage##BackstageTiddlers>>"
    config.tasks.plugins = {
        tooltip:"Manage installed plugins",
        content:"<<tiddler Backstage##Plugins>>"
    config.tasks.batch = {
        tooltip:"Batch manage public/private tiddlers",
        content:"<<tiddler Backstage##BatchOps>>"
    config.tasks.tweaks = {
        tooltip:"Tweak TiddlyWiki behaviors",
        content:"<<tiddler Backstage##Tweaks>>"
    config.tasks.exportTiddlers = {
        tooltip:"Import/export tiddlers from/to a TiddlyWiki",
        content:"<<tiddler Backstage##ImportExport>>"
    config.tasks.sync = {
        tooltip:"Check Sync status",
        content:"<<tiddler Backstage##SpaceUnplugged>>"

    if (window.location.protocol === "file:") {
        config.unplugged = true;

    config.backstageTasks = ["status", "tiddlers", "plugins",
        "batch", "tweaks", "exportTiddlers", "sync"];

    config.messages.backstage.prompt = "";
// initialize state
    var _show =; = function () {
        // selectively hide backstage tasks and tabs based on user status
        var tasks = $("#backstageToolbar .backstageTask").show();
        var bs = backstage.tiddlyspace;
        if (!config.unplugged) {
            tweb.getUserInfo(function (user) {
                if (user.anon) {
                    jQuery.each(disabled_tasks_for_nonmembers, function (i, task) {
                        var taskIndex = config.backstageTasks.indexOf(task);
                        if (taskIndex !== -1) {
                            config.backstageTasks.splice(taskIndex, 1);
                    config.messages.memberStatus = bs.locale.loggedout;
                } else {
                    config.messages.memberStatus = readOnly ?
                        bs.locale.nonmember : bs.locale.member;
        } else {
            config.messages.memberStatus = bs.locale.unplugged;

        // display backstage
        return _show.apply(this, arguments);
    if (readOnly) {
        jQuery.each(disabled_tasks_for_nonmembers, function (i, task) {
            var taskIndex = config.backstageTasks.indexOf(task);
            if (taskIndex !== -1) {
                config.backstageTasks.splice(taskIndex, 1);

    var tasks = config.tasks;
    var commonUrl = "/bags/common/tiddlers/%0";

    backstage.tiddlyspace = {
            member:"You are a member of this space.",
            nonmember:"You are not a member of this space.",
            loggedout:"You are currently logged out of TiddlySpace.",
            unplugged:"You are unplugged."
        showButton:function () {
            var showBtn = $("#backstageShow")[0];
            var altText = $(showBtn).text();
            imageMacro.renderImage(showBtn, "backstage.svg",
                { altImage:commonUrl.format("backstage.png"), alt:altText});
        hideButton:function () {
            var hideBtn = $("#backstageHide")[0];
            var altText = $(hideBtn).text();
            imageMacro.renderImage(hideBtn, "close.svg",
                { altImage:commonUrl.format("close.png"), alt:altText, width:24, height:24 });

    var _init = backstage.init;
    backstage.init = function () {
        _init.apply(this, arguments);
        var init = function (user) {
            var bs = backstage.tiddlyspace;

    var home = config.macros.homeLink = {
            linkText:"your home space"
        handler:function (place) {
            var container = $("<span />").appendTo(place)[0];
            tweb.getUserInfo(function (user) {
                if (!user.anon && !== currentSpace) {
                    createSpaceLink(container,, null, home.locale.linkText);

    config.macros.exportSpace = {
        handler:function (place, macroName, params) {
            var filename = params[0] ||
            $('<a class="button">download</a>').// XXX: i18n
                attr("href", filename).appendTo(place);

Probing Questions are used to gather additional information about a topic that is already on the table. The purpose of the probe is to encourage the speaker to keep talking. Examples are:
* Are there other concerns you have about this?
* Is there anything you would like to add?
* What else comes to mind?
* Is that all?
* Please go on
* Tell me more
This is <...> with <...>. You and i haven't spoken before but we have been working with <...>  and he suggested that i give you a call. We were able to help (her/him) address his/her frustation / difficulty with <...>. Would you be interested to know how?
# [[Opening]]
# [[Investigating]]
# [[Demonstrating capability]]
# [[Obtaining commitment]]
In the context of the [[Clicks-and-mortar spectrum]] and independent business is the most extreme form of separating a business from the parent company. The perceived advantages of this form are:
* Greater focus
* More flexibility and faster decisions
* Entrepreneurial culture
* Access to venture capital
The draw back of complete separation if that tighter integration of the activities (and the associated advantages) is not possible.

Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]
Direct link to the free book: [[Free|/static/files/MBI/Module 5/Free.pdf]]

Cross subsidizing can be done the following ways:
# Payed products funding free products
# Pay later, subsidize now
# Paying customers subsidize similar customers getting a product or service for free

[[Four different types of free|Summary book 'Free': Different types of free]]
# Direct cross subsidizing
# 3 party markets
# Freemium
# Non-monetary markets

Also interesting reverse business models:
# Dan Ariely’s book Predictably Irrational gives an example of students offered the choice to 'pay' for a poem or be 'payed'. The he asked what they were prepared to pay/ wanted to be payed as a function of the length of the poem.
# Derek Sivers, CD Baby, called these 'reverse business models'
## In China doctors get payed if you get ill and you pay them as long as your healthy
## Clubs in LA have certain bands pay to be allowed to perform
## Fitness centra that are free as long as you show up once per week.
## gets payed by telephone companies
## adds waranty to what they sell

[[The psychology of free|Summary book 'free' - The psychology of free]]
[[So cheap it does not matter anymore|Summary book 'free' - So cheap it does not matter anymore]]
[[Information wants to be free|Summary book 'free' - Information wants to be free]]

Examples of the new 'free', Free flight and dvr:
<img src="/static/files/MBI/Module%205/summaryfreeryanair.JPG" width="340" /> 
<img src="/static/files/MBI/Module%205/summaryfreedvr.JPG" width="360" /> 
<img src="/static/files/MBI/Module%205/summaryfreewarehouse.JPG" width="340" /> 
<img src="/static/files/MBI/Module%205/summaryfree_freecars.png" width="360" /> 
See [[Sustainable Competitive Advantage]]
//~~(Part of the [[ForEachTiddlerPlugin]])~~//

Create customizable lists, tables etc. for your selections of tiddlers. Specify the tiddlers to include and their order through a powerful language.

|>|{{{<<}}}''forEachTiddler'' [''in'' //tiddlyWikiPath//] [''where'' //whereCondition//] [''sortBy'' //sortExpression// [''ascending'' //or// ''descending'']] [''script'' //scriptText//] [//action// [//actionParameters//]]{{{>>}}}|
|//tiddlyWikiPath//|The filepath to the TiddlyWiki the macro should work on. When missing the current TiddlyWiki is used.|
|//whereCondition//|(quoted) JavaScript boolean expression. May refer to the build-in variables {{{tiddler}}} and {{{context}}}.|
|//sortExpression//|(quoted) JavaScript expression returning "comparable" objects (using '{{{<}}}','{{{>}}}','{{{==}}}'. May refer to the build-in variables {{{tiddler}}} and {{{context}}}.|
|//scriptText//|(quoted) JavaScript text. Typically defines JavaScript functions that are called by the various JavaScript expressions (whereClause, sortClause, action arguments,...)|
|//action//|The action that should be performed on every selected tiddler, in the given order. By default the actions [[addToList|AddToListAction]] and [[write|WriteAction]] are supported. When no action is specified [[addToList|AddToListAction]] is used.|
|//actionParameters//|(action specific) parameters the action may refer while processing the tiddlers (see action descriptions for details). <<tiddler [[JavaScript in actionParameters]]>>|
|>|~~Syntax formatting: Keywords in ''bold'', optional parts in [...]. 'or' means that exactly one of the two alternatives must exist.~~|

''Using JavaScript''

To give you a lot of flexibility the [[ForEachTiddlerMacro]] uses JavaScript in its arguments. Even if you are not that familiar with JavaScript you may find forEachTiddler useful. Just have a look at the various ready-to-use [[ForEachTiddlerExamples]] and adapt them to your needs.

''The Elements of the Macro''

The arguments of the ForEachTiddlerMacro consist of multiple parts, each of them being optional.

<<slider chkFETInClause [[inClause]] "inClause" "inClause">>
<<slider chkFETWhereClause [[whereClause]] "whereClause" "whereClause">>
<<slider chkFETSortClause [[sortClause]] "sortClause" "sortClause">>
<<slider chkFETScriptClause [[scriptClause]] "scriptClause" "scriptClause">>
<<slider chkFETActions [[Action Specification]] "Action Specification" "Action Specification">>

''Using Macros and ">" inside the forEachTiddler Macro''

You may use other macro calls into the expression, especially in the actionParameters. To avoid that the {{{>>}}} of such a macro call is misinterpreted as the end of the {{{<<forEachTiddler...>>}}} macro you must escape the {{{>>}}} of the inner macro with {{{$))}}} E.g. if you want to use {{{<<tiddler ...>>}}} inside the {{{forEachTiddler}}} macro you have to write {{{<<tiddler ...$))}}}.

In addition it is necessary to escape single {{{>}}} with the text {{{$)}}}.

''Using {{{<<tiddler ... with: ...>>}}} to re-use ForEachTiddler definitions''

Sometimes you may want to use a certain ForEachTiddler definition in slight variations. E.g. you may want to list either the tiddlers tagged with "ToDo" and in the other case with "Done". To do so you may use "Tiddler parameters". Here an example:

Replace the variable part of the ForEachTiddler definition with $1 ($2,... $9 are supported). E.g. you may create the tiddler "ListTaggedTiddlers" like this

Now you can use the ListTaggedTiddlers for various specific tags, using the {{{<<tiddler ...>>}}} macro:
<<tiddler ListTaggedTiddlers with: "systemConfig">>
<<tiddler ListTaggedTiddlers with: "Plugin">>

See also [[ForEachTiddlerExamples]].
Full article: [[Dougherty, D. 1992. Interpretative barriers to successful product innovation in large firms|/static/files/MBI/Module%206/READINGS_%20Dougherty_OrgSc_1992.pdf]]. Organization Science 179-202.

Three findings:
# Commercial success of a new product depends on how well the product design meets customer needs (Duh..!)
# Collaboration among technical, marketing, manufacturing and sales contributes to a new product success
# Product innovators do not often link technological and market issues and oftern do not collaborate across departments.

There is a significant [[difference in thought worlds|Differences in though worlds in product innovation in large firms]] in different departments for larger firms:
# Departments are like different "thought worlds" each focussing on different aspects of technology-market knowledge and making different sense of the total.
# Organizational routines seperate rather than coordiante the thougth worlds, further constraining joint learning.

Technology-market thinking  has a ''process and a content component''. ''On the process site'', linking involves the construction of new knowledge about the product and the market. Product innovation is a complex coupling between market needs and technologies over time. Linking technology and market possibilities is challenging because choices must be made among multiple design options. ''On the content site'' the requisite knowledge for new products is multi-faceted, multi-leveled and detailed.

Departments may develop perspectives through which they might seperate rather than combine information:
# Programs and routines create a situation where each person knows their job and there is no need to know others 'job'
# Routines bind the organization in a network of practices that are difficult to alter
# Routines are standards which keep managers from changing.

A more complete model allows for more intra departemental collaboration; innovation aree unsolvable by anyone prson. Unfortunately the 'thought worlds' with different funds of knowledge cannot easily share ideas and ''may view one anothers central issues as esotheric, if not meaningless''. Thought worlds selectively filter information and insights. This reduces the possibility for join learning as department members may think that they already know everything.

The research questions investigated in the article are:
1) What are the diffent funds of knowledge and systems of meaning for new products in the departemental thought worlds and how do they affect product innovation?
2) What are the routines that inhibit product innovation and how do they affect the collective action among the thought worlds?

The conclusions of the article are:
# The effects of existing organisational routines and practices need to be taken into account:
## Innovation is an interpretive process.
## Innovation requires collective action, or efforts to create shared understanding form different perspectives.
## The advocation of rational tools and processes, market research and the redesign of structures are not enough.
# The departemental differences need to be dealt with:
## Use and build on the unique insights of each thought world
## Develop collaboration mechanisms that deal directly with the interpretive as well as structural barriers to collective action
## Develop an organizational context for collective action that enables both.
# Interdisciplinairy responsability for focus groupsm, market research plans, technology audits and visits with users will enhance and improve collaborations.
# Barriers for innovation can be overcome by creating a new innovative social order in which:
## Interactions between thought worlds are based on appreciation and joint development
## Product definitions are based on collective, first order customer knowledge
## Product norms are based on the specific market
# No matter what the organizational design, managers must focus on knowledge development, joint learning and customer interactions.
|Option|Buy (cost you money)|Write or sell (gets you immediate money)|h
|Call|A ''right'' to ''//buy//'' stock yourself at a later moment|''Obligation'' to //''sell''// your stock for the agreed price|
|Put|A ''right'' to ''//sell//'' stock for an agreed price at a alter moment|''Obligation'' to ''//buy//'' stock for the agreed price|
We worked this session on the [[Zara Case|M17-S1 - Case - Zara]].
In [[Principles of Corporate Finance]] //Discounted Cash Flow// is defined as future [[Cash Flow]]s multiplied by [[Discount Factor]]s to obtain [[Present Value]] ]. Cash flows are discounted for two reasons:

1) A dollar today is worth more than a dollar tomorrow
2) A safe dollar is worth more than a risky one.

A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.  

One underlying assumption in Porter’s five forces is that
# Customers are the ones who pay firms for the customer value offered by these firms.
## When an automaker sells a car, the buyer pays for it. The more power the customer has, the less a firm can expect for the customer value it offers.

The mediating and network externalities properties of the Internet, however, suggest that frequently ''the customer who gets value from a firm is not the one who pays for it.''

This has significant implications for the competitive forces that impact an industry. Take the newspaper industry, which we said has two interdependent types of customers:
# its audience and 
# advertisers.

A newspaper actually has two types of rivals:
# Those in the news business and
# those who sell and buy the kinds of things advertised in newspapers.

Thus, with the Internet, a newspaper’s rivals are not only other newspapers (or online news services), but also the auctioneers like eBay who advertise and sell many of the same items that are advertised in newspapers!

The threat of new entry also takes a different dimension since anyone with a website and the capability to offer any of the content that newspapers do (e.g., news, weather, advertising,
sports scores, and stock prices) is a potential competitor for newspapers.

his class extends the diversification material in deriving the Capital Asset Pricing Model (CAPM). This model is widely used in capital budgeting exercises in practice and is one of the cornerstones of modern finance. The primary use of the CAPM is in determining the appropriate discount rate to use in computing Net Present Values (NPVs). This module, highlights the difference between systematic risk (which is priced or rewarded by investors) and diversifiable risk (which is not awarded). An intuitive proof is presented along with a formal mathematical proof.
In [[The Lean Startup]] one of the key concepts is that of //build-measure-learn//. 
<<image /static/files/MBI/Other/buildmeasurelearn.jpg width:300>>
# ''//Ideas//''
## All startups start out with an idea and a strategy based on certain assumptions. The most important strategy assumptions are so called //leap-of-fate// assumption because they make or break the value proposition of the venture.
## Sharpen your ideas by working with a [[Customer Archetype]]@design and validate them (see also [[Empathy Map]]@games)
## Beware of analysis paralysis and start validating your ideas quickly!
# ''Build''
## As your first product targets [[Early Adopter]]@marketing, it does not need to be perfect.
## Most people overestimate the # features that need to be present in a product //''when in doubt simplify''//
# ''//Product//''
## Try to //build// a [[Minimal Viable Product]] as soon as possible to test your //leap of fate// hypothesis
# ''Measure''
## The concept of [[Innovation accounting]] enables a startup (or new in company innovation) to validate objectively that they are learning how to grow a sustainable business.
## Each startup has a different hypothesis on their financial operational model. Depending on these assumptions, learning milestones will be different.
## As an example, in a manufacturing company, growth depends on three things:
### The profitability of each customer
### The cost of acquiring new customers
### The repeat purchase rate of existing customers
### These are the basic drivers for this companies growth model
## By contrast, eBay's success depends on:
### Network effects, sellers want the highest number of potential customers, buyers want the marketplace with the biggest competition among sellers.
# ''//Data//''
## A useful concept in measuring your business is [[Cohort Analysis]]
## Be aware of [[Vanity Metrics]]. Using [[Cohort Analysis]] you can measure if customers in new cohorts actually use the product more, are willing to pay more or otherwise are more engaged with the product.
# ''Learn''
## [[Validated Learning]] in a [[Kanban]]@kanban board is a great way to have developers engage in how useful their features and ideas work in a customer environment.
An //objection// in any sale is a reason your customer will bring up NOT to buy. Objections should be seen as request for more information.

In [[The SPIN Selling Fieldbook: Practical Tools, Methods, Exercises, and Resources]] two types of objections are defined:

* [[Value Objections]]
* [[Capability Objections]]

* Objections are NOT buying signals, sellers who experience more objections will not get more sales
* A majority of the objections are created by the //seller// by asking the wrong [[SPIN]] question at the wrong moment.
* Many objections arise because the seller sells his solution too soon.

!Practical tips
* Try to prevent objections rather than handling them
* Read [[Dealing with Objections]] for tips on handling resistance and view objections as a request for more information.

See also: [[Fogbugz on Objections]]
(function() {
var getCSRFToken = function(window) {
	// XXX: should not use RegEx - cf.
	var regex = /^(?:.*; )?csrf_token=([^(;|$)]*)(?:;|$)/;
	var match = regex.exec(document.cookie);
	var csrf_token = null;
	if (match && (match.length === 2)) {
		csrf_token = match[1];

	return csrf_token;

if (typeof config !== 'undefined' && config.extensions &&
		config.extensions.tiddlyspace &&
		config.extensions.tiddlyspace.getCSRFToken === null) {
	config.extensions.tiddlyspace.getCSRFToken = getCSRFToken;
} else {
	window.getCSRFToken = getCSRFToken;
Welcome to your brand new [[TiddlySpace]]@glossary.

To get started with this blank [[TiddlySpace]]@glossary, you'll need to modify the following [[tiddlers|Tiddler]]@glossary:
* If you don't like the color scheme click <<RandomColorPaletteButton>> to generate a new random color scheme.
* Upload a [[SiteIcon|SiteIcon tiddler]]@glossary. [[Your SiteIcon|SiteIcon]] gives your space an identity to make it recognisable to others. A good site icon will be square and at least 48*48 pixels size.
<<binaryUploadPublic title:SiteIcon>>
* [[SiteTitle]] & [[SiteSubtitle]]: The title and subtitle of the site, as shown above (after saving, they will also appear in the browser title bar)
* [[MainMenu]]: The menu (usually on the left)
* [[DefaultTiddlers]]: Contains the names of the tiddlers that you want to appear when the ~TiddlySpace is opened
* Many features of ~TiddlySpace are accessed via the backstage bar located at the top of the page. You can toggle it on or off using the button in the top right corner of the screen.
<<tiddler [[Consultative sales]]>>
!Object of play
Words become more challenging to visualize as they become less literal. For example, the words computer and necktie ofer immediate imagery. But the words strategy and justice are more abstract and lend themselves to broader visual interpretations. Graphic Jam is an all-purpose visualization game that you can conduct before many other games as a warm-up, but it’s also a useful game in itself. Visualizing abstract concepts supports logo development, presentation design, website design, metaphor development for e-learning, and so on. It exercises the visual part of our cortex—which accounts for 75% of our sensory neurons—and turns on parts of our minds that don’t get much action in a typical business setting. Why does that matter? Because business is getting more complex. Being able to use your mind’s eye to see and show problems—and solutions—will be a sought-afer skill.
!Number of players
!Duration of play
40 minutes to 1 hour
!How to play
# Establish a large, fat, white display area for this game. Give all players access to sticky notes and index cards.
# Ask them to take 1–2 minutes to write words on the index cards that they have diffculty conceptualizing and drawing, like “quality” or “teamwork.” Ask for one word or phrase per index card.
# Gather all of the contributions, shufe them, and then draw one card and read it aloud to the group. Tape it up in the white space.
# Ask the players to refect on the word and draw a visual representation of it on a sticky note so that it can be posted on the wall. Give them 2–3 minutes to do so.
# Have the players approach the white space and post their sticky note under the index card with the related word.
# Repeat steps 3–5 until all or most of the words have been read aloud. If you draw repeat words or synonyms of previously drawn words, draw again until you get a fresh concept.
# By the end of the game, you’ll have a gallery space of visualized concepts. Ask the group to spend time looking at how others interpreted the words.
#  Referring to the sticky notes, lead a group discussion by asking what certain images mean and how the artist related that image to the word that was read aloud. Ask players to discuss which words were easier to visualize than others and why.  Close by asking them how they might see visualization skills applied in their daily life and work.
<<image /static/files/Softskills/Gamestorming/GraphicJam.png width:400>>
It is highly likely that the words the players contribute to this game will be on the abstract end of the spectrum. Note that the amount of time you’ll need for this game depends on the number of players, the number of words each player generates, and the 
complexity of the word concepts. Use your best judgment on how long to spend conducting a Graphic Jam session. And when you decide it’s time to call it quits, ask the group if there are any burning concepts they’d like to see visualized. If so, take a few 
more minutes with the group to tackle them. When the game is over, give the players a chance to converse with each other about the creative processes and techniques they use to conjure ideas and imagery. 
And one important note: Te pace of the Graphic Jam can be ramped up by putting a shorter time limit on how long players have to draw their representations of the words. Give players 30 seconds with a hard stop for each word and you’ll see how high the 
energy level in the room rises. It’s not really a competition, but people respond to it that way, and the 30-second round can deliver peak (or at least hilarious!) results.

//The Graphic Jam game inspired by the same-named activity created by Leslie Salmon-Zhu, co-founder of the International Forum of Visual Practitioners. //

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]
In this session we talked about the difference beween [[Manipulative sales]] or hard sales and [[Consultative sales]]. The last one won :-)

Furthermore and more importantly we talked about the [[SPIN]] sales method described in [[The SPIN Selling Fieldbook: Practical Tools, Methods, Exercises, and Resources]]

!SPIN selling
<<tiddler [[SPIN]]>>

!How you make the sale
Outside of the scope of the MBI i read "How to make the sale" from Frank McNair as a preperation:
<<tiddler [[How you make the sale]]>>

A Financial Landlord lets others use cash (or other financial assets) under certain (often time limited) conditions. There are two major subtypes of this business model:
* //Lenders// provide cash that their customers can use for a limited time in return for a fee (usually called “interest”). Examples: Bank of America, Fannie Mae.
* //Insurers//  provide their customers financial reserves that the customers can use only if they experience losses. The fee for this service is usually called a “premium.” Examples: Aetna, Chubb
Complementary assets can take the following forms:
# ''Generic''
## Generic assets are general purpose assets which do not need to be tailored to the innovation in question.
# ''Specialized''
## Specialized assets are those where there is unilateral dependence between the innovation and the complementary asset
# ''Cospecialized''
## Cospecialized assets are those for which there is a bilateral dependence

# The successful commercialization of an innovation requires that the know-how in question be utilized in conjunction with other capabilities or assets.
## Services such as marketing,competitive manufacturing, and after-sales support are almost always needed
# Even when an innovation is autonomous certain complementary capabilities or assets will be needed for successful commercialization. This figure illustrates this:
<img src="/static/files/MBI/Module%205/complementaryassets.PNG" width="300" />
<img src="/static/files/MBI/Module%205/dependenceoncomplementaryassets.PNG" width="300" />

[[M5-Strategy-S6 - Summary Teece - Integration and collaboration with other parties]]

Part of [[M5-S6 - Reading - Summary Teece - Profiting from technological innovation]]
<<deliciousImport djswagerman>>
<<list filter [tag[bookmark]][sort[-modified]]>>

Driving force, Impulse, Incentive, Stimulus, Stimulation or encouragement resulting in increased activity. ''Current customers and the revenue stream they generate have a strong impetus toward the allocation of resources to technological development''.

Part of: [[M6-S5 - Reading - Danneels - The process of technological competence leveraging]]
The essential characteristic of probability sampling is a procedure where each person or item is given a known chance of inclusion and the procedure is used for the selection of individual items in the [[Population]]. Possible methods are:

* Random sampling
** Each individual has an equal chance of being selected.
** Make sure more people are selected 
* Stratification
** If certain groups (or strata) can be identified before sample selection takes place it will be better to include this upfront. This is called stratification.
** When you do not know the groups upfront you can identify those by asking a question:
*** "At the last general election which party did you vote for"
*** "Do you ride a motor cycle"
** The retrospective use of information is known as post stratification.
* Cluster Sampling
** If your population has a group or clusters which adequately represent the whole population it is more convenient and cost effective to select a random cluster and carry out a census for a complete cluster. This is called cluster sampling.
** An interesting variant of cluster sampling is a //random walk//. For instance, conduct interviews with every 5th house.

With ''multistage design'' a series of related samplings are conducted.

Part of: [[M7-Quantitative Decision Methods-S1 - Managing Data and Survey Methods]]

In an article entitled “A Multidimensional Conceptualization of Environmental Velocity”, that I authored with colleagues Thomas Lawrence, Brian Wixted, and Brian Gordon, we present a framework that dispels this notion that speed always leads to business success.
In sales the acronym AIDA stands for:
* ''A''wareness 
* ''I''nterest
* ''D''esire
* ''A''ction

It is a shorter version of the [[The path to purchase]].
<<formTiddler [[NewBookTemplate]]>><data>{"Author":"Nancy Duarte","Title":"Resonate"}</data>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

Tip during the [[M16-Sales and Negotiation]] block.
See [[this|/static/files/MBI/Pricing%20strategy.pdf]] background presentation
See also:
* [[Don't just roll the dice: a usefully short guide to software product pricing]]
* [[M6-S8 - Reading - Lodish - Entrepreneurial pricing- an often misused way to garner extraordinary profits]]
* [[Price Decisions in the Marketing Mix]]
* [[Conjoint analysis]]
Opportunity Recognition, by Jeff Timmons. Ch 2 in Portable MBA in Entrepreneurship, 1997.
Preparation Questions:
1. Why is this deal attracting top-notch venture capitalists such as Atlas Venture, Burr, Egan, Deleage& Co. and North Bridge Venture Capital Partners?
2. Can the founders optimize their personal financial returns and simultaneously ensure that SolidWorks has sufficient capital to optimize its chances of succeeding? What other factors should the founders consider?
3. How can the financing syndicate optimize its potential return? What factors should it consider?
4. How would you structure a deal that would serve the best interests of the founders, the company and the VC firms?

[[M10-S1 - Reading - Opportunity Recognition- Jeff Timmons]]
[[M10-S1 - Case - Jon Hirschtick]]
|''Version:''|1.0.7 (2012-04-19)|
|''Summary:''|Enhance your tiddlers with structured data (such as strings, booleans, numbers, or even arrays and compound objects) that can be easily accessed and modified through named fields (in JavaScript code).|
|''Author:''|UdoBorkowski (ub [at] abego-software [dot] de)|
|''License:''|[[BSD open source license|]]|
Enhance your tiddlers with structured data (such as strings, booleans, numbers, or even arrays and compound objects) that can be easily accessed and modified through named fields (in JavaScript code).

Such tiddler data can be used in various applications. E.g. you may create tables that collect data from various tiddlers. 

''//Example: "Table with all December Expenses"//''
        'tiddler.tags.contains("expense") &&"month") == "Dec"'
        '"|[["+tiddler.title+"]]|""descr")+"| ""amount")+"|\n"'
//(This assumes that expenses are stored in tiddlers tagged with "expense".)//
        'tiddler.tags.contains("expense") &&"month") == "Dec"'
        '"|[["+tiddler.title+"]]|""descr")+"| ""amount")+"|\n"'
For other examples see DataTiddlerExamples.

''Access and Modify Tiddler Data''

You can "attach" data to every tiddler by assigning a JavaScript value (such as a string, boolean, number, or even arrays and compound objects) to named fields. 

These values can be accessed and modified through the following Tiddler methods:
|{{{data(field)}}}|{{{"age")}}}|Returns the value of the given data field of the tiddler. When no such field is defined or its value is undefined {{{undefined}}} is returned.|
|{{{data(field,defaultValue)}}}|{{{"isVIP",false)}}}|Returns the value of the given data field of the tiddler. When no such field is defined or its value is undefined the defaultValue is returned.|
|{{{data()}}}|{{{}}}|Returns the data object of the tiddler, with a property for every field. The properties of the returned data object may only be read and not be modified. To modify the data use DataTiddler.setData(...) or the corresponding Tiddler method.|
|{{{setData(field,value)}}}|{{{t.setData("age",42)}}}|Sets the value of the given data field of the tiddler to the value. When the value is {{{undefined}}} the field is removed.|
|{{{setData(field,value,defaultValue)}}}|{{{t.setData("isVIP",flag,false)}}}|Sets the value of the given data field of the tiddler to the value. When the value is equal to the defaultValue no value is set (and the field is removed).|

Alternatively you may use the following functions to access and modify the data. In this case the tiddler argument is either a tiddler or the name of a tiddler.
|{{{DataTiddler.getData(tiddler,field)}}}|Returns the value of the given data field of the tiddler. When no such field is defined or its value is undefined {{{undefined}}} is returned.|
|{{{DataTiddler.getData(tiddler,field,defaultValue)}}}|Returns the value of the given data field of the tiddler. When no such field is defined or its value is undefined the defaultValue is returned.|
|{{{DataTiddler.getDataObject(tiddler)}}}|Returns the data object of the tiddler, with a property for every field. The properties of the returned data object may only be read and not be modified. To modify the data use DataTiddler.setData(...) or the corresponding Tiddler method.|
|{{{DataTiddler.setData(tiddler,field,value)}}}|Sets the value of the given data field of the tiddler to the value. When the value is {{{undefined}}} the field is removed.|
|{{{DataTiddler.setData(tiddler,field,value,defaultValue)}}}|Sets the value of the given data field of the tiddler to the value. When the value is equal to the defaultValue no value is set (and the field is removed).|
//(For details on the various functions see the detailed comments in the source code.)//

''Data Representation in a Tiddler''

The data of a tiddler is stored as plain text in the tiddler's content/text, inside a "data" section that is framed by a {{{<data>...</data>}}} block. Inside the data section the information is stored in the [[JSON format|]]. 

//''Data Section Example:''//
<data>{"isVIP":true,"user":"John Brown","age":34}</data>

The data section is not displayed when viewing the tiddler (see also "The showData Macro").

Beside the data section a tiddler may have all kind of other content.

Typically you will not access the data section text directly but use the methods given above. Nevertheless you may retrieve the text of the data section's content through the {{{DataTiddler.getDataText(tiddler)}}} function.

''Saving Changes''

The "setData" methods respect the "ForceMinorUpdate" and "AutoSave" configuration values. I.e. when "ForceMinorUpdate" is true changing a value using setData will not affect the "modifier" and "modified" attributes. With "AutoSave" set to true every setData will directly save the changes after a setData.


No notifications are sent when a tiddler's data value is changed through the "setData" methods. 

''Escape Data Section''
In case that you want to use the text {{{<data>}}} or {{{</data>}}} in a tiddler text you must prefix the text with a tilde ('~'). Otherwise it may be wrongly considered as the data section. The tiddler text {{{~<data>}}} is displayed as {{{<data>}}}.

''The showData Macro''

By default the data of a tiddler (that is stored in the {{{<data>...</data>}}} section of the tiddler) is not displayed. If you want to display this data you may used the {{{<<showData ...>>}}} macro:

|>|{{{<<}}}''showData '' [''JSON''] [//tiddlerName//] {{{>>}}}|
|''JSON''|By default the data is rendered as a table with a "Name" and "Value" column. When defining ''JSON'' the data is rendered in JSON format|
|//tiddlerName//|Defines the tiddler holding the data to be displayed. When no tiddler is given the tiddler containing the showData macro is used. When the tiddler name contains spaces you must quote the name (or use the {{{[[...]]}}} syntax.)|
|>|~~Syntax formatting: Keywords in ''bold'', optional parts in [...]. 'or' means that exactly one of the two alternatives must exist.~~|
!Source Code
This plugin's source code is compressed (and hidden). 
Use this [[link|]] to get the readable source code.
if(!version.extensions.DataTiddlerPlugin){version.extensions.DataTiddlerPlugin={major:1,minor:0,revision:7,date:new Date(2012,3,19),type:"plugin",source:""};if(!window.story){window.story=window}if(!TiddlyWiki.prototype.getTiddler){TiddlyWiki.prototype.getTiddler=function(b){var a=this.tiddlers[b];return(a!==undefined&&a instanceof Tiddler)?a:null}}function DataTiddler(){}DataTiddler={stringify:null,parse:null};window.DataTiddler=DataTiddler;DataTiddler.getData=function(c,d,a){var b=(typeof c=="string")?store.getTiddler(c):c;if(!(b instanceof Tiddler)){throw"Tiddler expected. Got "+c}return DataTiddler.getTiddlerDataValue(b,d,a)};DataTiddler.setData=function(c,e,d,a){var b=(typeof c=="string")?store.getTiddler(c):c;if(!(b instanceof Tiddler)){throw"Tiddler expected. Got "+c+"("+b+")"}DataTiddler.setTiddlerDataValue(b,e,d,a)};DataTiddler.getDataObject=function(b){var a=(typeof b=="string")?store.getTiddler(b):b;if(!(a instanceof Tiddler)){throw"Tiddler expected. Got "+b}return DataTiddler.getTiddlerDataObject(a)};DataTiddler.getDataText=function(b){var a=(typeof b=="string")?store.getTiddler(b):b;if(!(a instanceof Tiddler)){throw"Tiddler expected. Got "+b}return DataTiddler.readDataSectionText(a)};DataTiddler.extendJSONError=function(a){if("JSONError"){a.toString=function(){return": "+a.message+" ("+a.text+")"}}return a};DataTiddler.getTiddlerDataObject=function(a){if(a.dataObject===undefined){var b=DataTiddler.readData(a);a.dataObject=(b)?b:{}}return a.dataObject};DataTiddler.getTiddlerDataValue=function(b,d,a){var c=DataTiddler.getTiddlerDataObject(b)[d];return(c===undefined)?a:c};DataTiddler.setTiddlerDataValue=function(c,f,e,a){var d=DataTiddler.getTiddlerDataObject(c);var b=d[f];if(e==a){if(b!==undefined){delete d[f];}return}d[f]=e;};DataTiddler.readDataSectionText=function(a){var b=DataTiddler.getDataTiddlerMatches(a);if(b===null||!b[2]){return null}return b[2]};DataTiddler.readData=function(b){var c=DataTiddler.readDataSectionText(b);try{return c?DataTiddler.parse(c):null}catch(a){throw DataTiddler.extendJSONError(a)}};DataTiddler.getDataTextOfTiddler=function(a){var b=DataTiddler.getTiddlerDataObject(a);return DataTiddler.stringify(b)};DataTiddler.indexOfNonEscapedText=function(c,a,d){var b=c.indexOf(a,d);while((b>0)&&(c[b-1]=="~")){b=c.indexOf(a,b+1)}return b};DataTiddler.getDataSectionInfo=function(e){var a="<data>{";var f="}</data>";var d=DataTiddler.indexOfNonEscapedText(e,a,0);if(d<0){return null}var c=e.indexOf(f,d);if(c<0){return null}var b;while((b=e.indexOf(f,c+1))>=0){c=b}return{prefixEnd:d,dataStart:d+(a.length)-1,dataEnd:c,suffixStart:c+(f.length)}};DataTiddler.getDataTiddlerMatches=function(a){var f=a.text;var e=DataTiddler.getDataSectionInfo(f);if(!e){return null}var c=f.substr(0,e.prefixEnd);var b=f.substr(e.dataStart,e.dataEnd-e.dataStart+1);var d=f.substr(e.suffixStart);return[f,c,b,d]};{var e=DataTiddler.getDataTiddlerMatches(a);var d;var f;if(e===null){d=a.text;f=""}else{d=e[1];f=e[3]}var b=DataTiddler.getDataTextOfTiddler(a);var c=(b!==null)?d+"<data>"+b+"</data>"+f:d+f;if(c!=a.text){a.isDataTiddlerChange=true;a.set(a.title,c,config.options.txtUserName,config.options.chkForceMinorUpdate?undefined:new Date(),a.tags);delete a.isDataTiddlerChange;store.dirty=true;if(config.options.chkAutoSave){saveChanges()}}};DataTiddler.MyTiddlerChangedFunction=function(){if(this.dataObject&&!this.isDataTiddlerChange){delete this.dataObject}DataTiddler.originalTiddlerChangedFunction.apply(this,arguments)};config.formatters.push({name:"data-escape",match:"~<\\/?data>",handler:function(a){a.outputText(a.output,a.matchStart+1,a.nextMatch)}});config.formatters.push({name:"data",match:"<data>",handler:function(a){var b=DataTiddler.getDataSectionInfo(a.source);if(b&&b.prefixEnd==a.matchStart){a.nextMatch=b.suffixStart}else{a.outputText(a.output,a.matchStart,a.nextMatch)}}});DataTiddler.originalTiddlerChangedFunction=Tiddler.prototype.changed;Tiddler.prototype.changed=DataTiddler.MyTiddlerChangedFunction;,a){return(b)?DataTiddler.getTiddlerDataValue(this,b,a):DataTiddler.getTiddlerDataObject(this)};Tiddler.prototype.setData=function(c,b,a){DataTiddler.setTiddlerDataValue(this,c,b,a)};config.macros.showData={label:"showData",prompt:"Display the values stored in the data section of the tiddler"};config.macros.showData.handler=function(a,g,h){var c=0;var d=false;if((c<h.length)&&h[c]=="JSON"){c++;d=true}var b=story.findContainingTiddler(a).getAttribute("tiddler");if(c<h.length){b=h[c];c++}try{if(d){this.renderDataInJSONFormat(a,b)}else{this.renderDataAsTable(a,b)}}catch(f){this.createErrorElement(a,f)}};config.macros.showData.renderDataInJSONFormat=function(a,b){var c=DataTiddler.getDataText(b);if(c){createTiddlyElement(a,"pre",null,null,c)}};config.macros.showData.renderDataAsTable=function(a,b){var f="|!Name|!Value|\n";var e=DataTiddler.getDataObject(b);if(e){for(var c in e){var d=e[c];f+="|"+c+"|"+DataTiddler.stringify(d)+"|\n"}}wikify(f,a)};config.macros.showData.createErrorElement=function(a,b){var c=(b.description)?b.description:b.toString();return createTiddlyElement(a,"span",null,"showDataError","<<showData ...>>: "+c)};setStylesheet(".showDataError{color: #ffffff;background-color: #880000;}","showData")}var JSON={copyright:"(c)2005",license:"",stringify:function(c){var b=[];function f(a){b[b.length]=a}function d(a){var j,h=undefined,e,g;switch(typeof a){case"object":if(a){if(a instanceof Array){f("[");e=b.length;for(h=0;h<a.length;h+=1){g=a[h];if(typeof g!="undefined"&&typeof g!="function"){if(e<b.length){f(",")}d(g)}}f("]");return}else{if(typeof a.toString!="undefined"){f("{");e=b.length;for(h in a){g=a[h];if(a.hasOwnProperty(h)&&typeof g!="undefined"&&typeof g!="function"){if(e<b.length){f(",")}d(h);f(":");d(g)}}return f("}")}}}f("null");return;case"number":f(isFinite(a)?+a:"null");return;case"string":e=a.length;f('"');for(h=0;h<e;h+=1){j=a.charAt(h);if(j>=" "){if(j=="\\"||j=='"'){f("\\")}f(j)}else{switch(j){case"\b":f("\\b");break;case"\f":f("\\f");break;case"\n":f("\\n");break;case"\r":f("\\r");break;case"\t":f("\\t");break;default:j=j.charCodeAt();f("\\u00"+Math.floor(j/16).toString(16)+(j%16).toString(16))}}}f('"');return;case"boolean":f(String(a));return;default:f("null");return}}d(c);return b.join("")},parse:function(text){var p=/^\s*(([,:{}\[\]])|"(\\.|[^\x00-\x1f"\\])*"|-?\d+(\.\d*)?([eE][+-]?\d+)?|true|false|null)\s*/,token=undefined,operator=undefined;function error(m,t){throw {name:"JSONError",message:m,text:t||operator||token}}function next(b){if(b&&b!=operator){error("Expected '"+b+"'")}if(text){var t=p.exec(text);if(t){if(t[2]){token=null;operator=t[2]}else{operator=null;try{token=eval(t[1])}catch(e){error("Bad token",t[1])}}text=text.substring(t[0].length)}else{error("Unrecognized token",text)}}else{token=operator=undefined}}function val(){var k,o;switch(operator){case"{":next("{");o={};if(operator!="}"){for(;;){if(operator||typeof token!="string"){error("Missing key")}k=token;next();next(":");o[k]=val();if(operator!=","){break}next(",")}}next("}");return o;case"[":next("[");o=[];if(operator!="]"){for(;;){o.push(val());if(operator!=","){break}next(",")}}next("]");return o;default:if(operator!==null){error("Missing value")}k=token;next();return k}}next();return val()}};DataTiddler.format="JSON";DataTiddler.stringify=JSON.stringify;DataTiddler.parse=JSON.parse;
With the strategy of //Aggregation// a company tries to achieve economies of scale by standardizing regional or global operations.

Part of [[The AAA Triangle]]
<<AudioFragment /static/files/MBI/Module%2021/M21-S5%20-%20Audio%20-%20The%20Challengers.mp3>>
In traditional manufacturing, each component in the production line there was a ''//reorder point//'' that defined the minimum inventory for that part:

<<image /static/files/MBI/Module%2017/reorderpoint.PNG width:400>>
''Session Purpose''
* Understanding the role of resource [[fungibility|Fungibility]] in market opportunity identification
* Multiple market opportunities, firm diversification, and firm performance
''Discussion Topics''
* Mapping a venture’s market entry strategy and diversification strategy over time
* Sources of insights on market opportunities for technologies
* Questions pertaining to the Novogel case
''Session Preparation''
* [[Case: Novogel|/static/files/MBI/Module%206/Novogel%20English%20version.pdf]]
* [[Gruber, M., MacMillan, I.C., Thompson, J.D. 2008. Look before you leap: Market Opportunity Identification in Emerging Technology Firms|/static/files/MBI/Module%206/READINGS_Gruber_MacMillan_Thompson_MSc_2008.pdf]]. Management Science 1652-1665.

[[M6-S4 - Reading - Gruber M. Look before you leap: Market Opportunity Identification in Emerging Technology Firms]]
[[M6-S4 - Session notes]]
We started discussing [[Jon Hirschtick's venture |M10-S1 - Case - Jon Hirschtick]]
Read full article [[Teece (1986)|/static/files/MBI/Module%205/Teece-1986.pdf]]

This paper attempts to explain why innovating firms often fail to obtain significant economic returns from an innovation,while customers, imitators and other industry participants benefit. Business strategy particularly as it relates to the firm’s decision to integrate and collaborate is shown to be an important factor. The paper demonstrates that ''when imitation is easy, markets don’t work well'', and the profits from innovation may accrue to the owners of certain complementary assets, rather than to the developers of the intellectual property.

''The message is particularly pertinent to those science and engineering driven companies that harbor the mistaken illusion that developing new products which meet customer needs will ensure fabulous success. It may possibly do so for the product, but not for the innovator.''

This speaks to the need, in certain cases, for the innovating firm to ''establish a prior position in these complementary assets''. The paper also indicates that innovators with new products and processes which provide value to consumers may sometimes be so ill positioned in the market that they necessarily will fail. The analysis provides a theoretical foundation for the proposition that manufacturing often matters. particularly to innovating nations. Innovating firms without the requisite ing and related capacities may die, even though they are the best at innovation. Implications for trade policy and domestic economic policy are examined.

Explaining the possible outcomes. Three building blocks are required:
1. ''[[Appropriability regime|M5-Strategy-S6 - Summary Teece - Appropriability regime]]'' i.e. how well can the technology be protected against ''//imitation//''?
2. ''[[Dominant Design Paradigm]]'' i.e. how ''//mature//'' is the technology?
3. ''[[Complementary assets|M5-Strategy-S6 - Summary Teece - Complementary assets]]'' i.e. what ''//peripherals//'' are required to make the technology a success?

<img src="/static/files/MBI/Module%205/whoprofitsfrominnovation.PNG" width="300" />
<img src="/static/files/MBI/Module%205/examplesinnovationprofit.PNG" width="400" />
Figure: What determines the share of profits captured by the innovator?

[[M5-Strategy-S6 - Summary Teece - Implications for R&D resource allocation]]

''Investment strategy''
<img src="/static/files/MBI/Module%205/investmentstrategy.png" width="330" />
<img src="/static/files/MBI/Module%205/investmentstrategy2.png" width="330" />


* The ownership of complementary assets, particularly when they are specialized and/or cospecialized, help establish who wins and who loses from innovation.
* Imitators can often outperform innovators if they are better positioned with respect to critical complementary assets
* Innovation must focus not only on R&D, but also on complementary assets, as well as the underlying infrastructure
* If government decides to stimulate innovation, it would seem important to clear away barriers which impede the development of complementary assets which tend to be specialized or cospecialized to innovation.
** To fail to do so will cause an unnecessary large portion of the profits from innovation to flow to imitators and other competitors.
** If these firms lie beyond one’s national borders, there are obvious implications for the internal distribution of income.
* Tariffs and other restrictions on trade can in some cases injure innovating firms while simultaneously benefiting protected firms when they are imitators.
* The product life  cycle model of international trade will play itself out very differently in different industries and markets
** In part according to appropriability regimes
** the nature of the assets which need to be employed to convert a technological success into a commercial one.
* The approach establishes that it is not so much the structure of markets but the structure of firms, particularly the scope of their boundaries, coupled with national policies with respect to the development of complementary assets, which determines the distribution of the profits amongst innovators and imitator/followers.

Interesting business model: Kaggle offers a consulting service, which can help the competition host prepare the data, frame the competition, anonymize their data, and integrate the winning model into their operations.
People strategy relating to company strategy,

* McKinsey
* Proctor & Gamble
* Google
* Facebook

''In all industries there are consistently 'top performers' in either category'':

|Culture|Stability, Process, Joint decision process, Politics, Risk averse|Entrepreneurial, Adventure, Individualistic, Opportunistic, Risk seeking|
!Exit deliverables

Part of: [[Customer Development Checklist]] - [[Customer Discovery]]
Part of book: [[The Four Steps to the Epiphany]]
In the gfk roper consumer styles the //adventurers// are characterized by:
!Underlying values
* Live with passion, thril seekers
* Young, Dynamic people
* Long for success
!Consumption pattern
* Maximize amount of free time
* [[Early Adopter]]s for innovative products and services

<<image /static/files/MBI/Module%2011/adventurers.png width:300>>
Benefits are ways how the product can be used to meet an [[Explicit Need]] of the user: That user would ask //"What is in it for me?"// Benefits are related to solving a problem for a person.

* ''Benefits are more memorable than Features or Advantages''
** Buyers don't remember features. The remember their own explicit needs.
* ''Benefits have high impact throughout the sale''
** Features have a low impact, benefits work at all phases in the stage call.
* ''Benefits help your internal sponsors sell''

* //Our gateway gives you the full network access and search capabilities you've asked for.//
* //The Quanton system provides the ionizatio amplification you've said you'll need//
* //The Z4000 model meets all your B4 level safety criteria//
* Benefits are the most powerful statements you can make in large or complex sales at all points in the sales cycle
* Benefits are ven more powerful //when stated by the buyer// (see also [[Commitment and consistency]])

<<image /static/files/MBI/Module%2016/Benefit.jpg width:600>>
!Object of play
Te object of this game is to quickly develop a customer or user profle.
!Number of players
!Duration of play
10–15 minutes
!How to play
Personas help focus a group’s attention on the people involved in a project—ofen the customer or end user. Although creating an empathy map is not the rigorous, researchbased process that is required for developing personas, it can quickly get a group to focus on the most important element: people.

In this exercise, you will be creating a study of a person with the group. Start by drawing  a large circle that will accommodate writing inside. Add eyes and ears to make it into a large “head.” 
<<image /static/files/Softskills/Gamestorming/EmpathyMap.png width:400>>

# Ask the group to give this person a name.  
# Label large areas around the head: “Thinking”, “Seeing”, “Hearing”, and “Feeling”.
# Ask the group to describe—from this person’s point of view—what this person’s experience is, moving through the categories from seeing through feeling. 
# The goal of the exercise is to create a degree of empathy for the person with the group. Te exercise shouldn’t take more than 15 minutes. Ask the group to synthesize: What does this person want? What forces are motivating this person? What can we do for this person? 
Te group should feel comfortable “checking” each other by referring back to the empathy map. When this happens, it will sound like “What would so-and-so think?” It’s good to keep the empathy map up and visible during the course of the work to be used as this kind of focusing device.

//The Empathy Map game was developed by Scott Matthews of XPLANE.//

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]

Rarely you will make your sell without any objection: "You price is too high", " Let me think about it": do not panic. An objection seldomly says no. It says: "give me more information" or "how far can you go". In this step you'll circle back to [[Step 3, Discovery]] and determine what additional information the buyer needs.

Dealing with resistance is a step which will always be there. Just make sure you discover the real barriers to move on to the next step, closing the deal. In this step the goals are:
* How do i respond when the customer raises objections to my presentation
* How do i remember that //''an objection is symply a request for more information''//
* How do i circle back to [[Step 3, Discovery]] to uncover the additional facts i need to solve this customers problem and make the sale.
!Key points
* Objections can occur at any points in the sales process
* Making the case often raises objections to surface
* Prospective customers object for one simple reason: they do not believe we have fully solved their problem
* An objection is simply a question: and the core question is "but can you solve this part of my problem?"
* Don't panic when you hear an objection! Just circle back to discovery and gather more data.
* If you get into trouble ask [[Probing Questions]]. If you stay in trouble, call a colleague
* Watch for [[Buying signs]] then ask for the order.

!Dealing with Objections
<<tiddler [[Dealing with Objections]]>>
<<GoogleVideoFragment /static/files/MBI/Module%2013/BBC.avi>>
Sources of strategic risks are:
* Competitive risk
* Asset impair risk
* Operational risk
* Franchise risk (reputation)

4 types of measures to reduce risk:
* Avoid
* Share
* Reduce
* Accept
<<tiddler [[VRIN Framework]]>>
In a single segment market segmentation a company has one product offered into one market:


See also:
Single segment
[[Market specialisation]]
[[Selective specialisation]]
[[Product specialisation]]
[[Full market coverage]]
In the gfk roper consumer styles the //organics// are characterized by:
!Underlying values
* Seek sustainability
* Strongly connected with society but not neglecting hedonism
!Consumption pattern
* Rational with attention to quality and sustainability

<<image /static/files/MBI/Module%2011/organics.png width:300>>

Nice way of visualizing business models.

Inbound Marketing is marketing focused on getting found by customers.

In traditional marketing (outbound marketing) companies focus on finding customers. They use techniques that are poorly targeted and that interrupt people. They use cold-calling, print advertising, T.V. advertising, junk mail, spam and trade shows.

Technology is making these techniques less effective and more expensive. Caller ID blocks cold calls, TiVo makes T.V. advertising less effective, spam filters block mass emails and tools like RSS are making print and display advertising less effective. It's still possible to get a message out via these channels, but it costs more.

Inbound Marketers flip outbound marketing on its head.

Instead of interrupting people with television ads, they create videos that potential customers want to see. Instead of buying display ads in print publications, they create their own blog that people subscribe to and look forward to reading. Instead of cold calling, they create useful content and tools so that people call them looking for more information.

Instead of driving their message into a crowd over and over again like a sledgehammer, they attract highly qualified customers to their business like a magnet.

Read more:

<img src="">
Book used during the training: [[Quantitative Methods For Business Decisions]]
Summary Chapters 8 and 9

[[M7-Quantitative Decision Methods-S2 - Probability]]
[[M7-Quantitative Decision Methods-S2 - Probability distributions]]
The desired outcome of competency #4 is a focused solution strategy which is the product of innovative thinking from all departments, squarely focused on delivering desired outcomes, solving problems and providing a set of positive experiences when dealing with your company.
Once the group of intended customers is profiled and the high priority, unmet needs discovered, a plan must be developed with which to capitalize on these opportunities profitably. To accomplish this, the information must be shared across the entire company so each department can begin to contribute to the overall solution.

By having a rich and consistent understanding of the problem to be solved, diverse groups can bring their unique perspective and skills while still being focused on a common purpose and a shared strategy. In order to reinforce the desired behaviors, goals, priorities and resources must support the market-centered planning activities. To maintain momentum and ensure consistency, responsibility has to be assigned to one or several people to represent the intended customers’ perspective internally and monitor external changes. A senior member of the organization must take responsibility to continuously reinforce this market-driven initiative and ensure consistency across all its elements.
This is not limited to one or a few departments. Nor is it a single tactic that is executed and everyone goes back to business as usual. Every function, including manufacturing and accounting thinks about how they can contribute to offering a set of products and services that will create a repeat and loyal customer.
!!Fundamental Questions
* Who in your company consistently represents the intended customer’s perspective?
* Are they consistently monitoring and reporting on successes, failures and changes that the company should respond to in the chosen market?
* Does your company have a systematic — and verifiable — way to share information about intended customers and their needs so everyone is working toward a common purpose?
* Who in the organization makes sure information is being shared effectively and all the company’s products, services and programs are consistent in focus and support each other?
!!Starting Points
* Assign responsibility to someone (e.g. industry manager, product manager) to regularly research, and update the rest of the company on trends and changes in the selected market.
* Appoint or assign the responsibility for the “whole product” to a senior marketing person.
* Have a senior manager review the highest priority, unmet needs and evaluate if the product development plans, the marketing communication messages and the sales training all address those needs as the highest priority? Or has a disconnect occurred somewhere in the process?
This chapter starts to talk about [[Dealing with rejection]]

!Key points
* Rejection is the most painful phase of the selling process
* There are four ways of [[Dealing with rejection]]
* Rejection is a root cause, but discouragement can be a result
* Four ways to deal with discouragement are:
** Find a way to de-stress
** Build a life outside of your work
** Give away yourself
** Connect to something beyond yourself
* Personalize your sales for greater sales success
* Life is mostly packaging but you can't buff a turd
* Sell every product & service your customer needs but not a penny more!
Uncoupling of a technology from the product in which it is embodied. See also: [[Technology re-linking]]

De-linking involves abstracting away from the particular product in which the competence is currently embedded and identifying the competence in its own right. Decoupling the linkage between the
technology and the product involves stepping back from the current product, and identifying what technological competence(s) is (are) embedded init. De-linking also involves technology characterization, in order to determine the [[fungibility|Fungibility]] of the technology.

<img src = "/static/files/MBI/Module%206/TechnologicalCompetenceLeveraging.PNG" width=400>

<img src = "/static/files/MBI/Module%206/TechnologyDelinking.PNG" width=500>
Close linking between the technology and the market, delinking involves:
* Understand the //shape// of the technology. Where is it general and where is it specific?
* What is unique? How can it be adapted, expanded? Which are potentially valuable components?
* Imagine where technology properties may also be applied
* Scan industry categories systematically:
** Medical
** Consumer
** Automotive
** Etc
* Scouting for uses
** Discuss application  with innovators
*** They may have considered different uses?
*** However, they may not be interested in market issues!
** Engage the immediate social network, family, friends, colleagues
*** Need heterogeneous backgrounds!
*** Age
*** Industry backgrounds
*** Technology backgrounds
*** What else?

Part of: [[M6-S5 - Reading - Danneels - The process of technological competence leveraging]]
[[M3-S5 - Exercise - Sahlman, R.A., Financing Growth]]
[[M3-S5 - Session notes]]
Read the original case [[here|/static/files/MBI/Module%2017/The%20Great%20Nuclear%20Fizzle%20at%20Old%20B&W.pdf]]

# Draw up a timetable of the major events described in the case study before the Mount Vernon plant was opened.
# What went wrong and why? Be specific.

* Transition to Nuclear Energy was slowed down by a number of factors:
** Technological difficulties and public resistance. 
** An unexpected cause for delay has been one company's crucial failure to deliver a single vital component of nuclear power plants.
* Company was Babcock & Wilcox Co
* Delivered one crucial component: Nuclear Pressure Vessle
* The company //sold its entire projected output of pressure vessels for years ahead//
* The plant produced just //three pressure vessels in its first three years of operation.// (Late 1968, after the production snarl reached horrendous proportions, a vice president responsible for the Mount Vernon operation committed suicide)
* General Electric and Westinghouse Electric took the almost unprecedented step of forcing B & W to turn most of their partially completed vessels over to other manufacturers.
* Perhaps \$40 million worth-were taken out of B & W's shops
* Chairman Morris Neilson, 65, who chose Zipf for his present job a year (before 1968??) and handed him his present problems. 
* 1924: Young Doc became a steeplejack and ironworker and in 1924 joined the corporation he was later to head.
* 1940: By the time World War II came along, Neilson was superintendent of marine erection. 
* 1956, set up an extensive research facility at Lynchburg, Virginia. One of B & W's first important nuclear jobs was to build Consolidated Edison's Indian Point Plant
* 1957: became president and chief executive officer. 
** Nuclear losses continued under Neilson, but he improved B & W's overall profitability dramatically
* Sales stayed near or below the 1958 figure of \$366 million
* 1963-this was a low period in the utility buying cycle earnings climbed year by year.
* Profits went from \$13 million in 1958 to \$22 million in 1963.
* At that point, sales also began to go up, rising 71 percent in the next five years.
* Early 1960s: the plant was planned, Neilson believed he had found a niche in the nuclear industry that offered a quick return. A nuclear pressure vessel,
* 1965 plant starts operating on a makeshift basis for almost two years
* 1965: U.S. utilities went on a nuclear-plant buying. The Mount Vernon plant was designed to produce one completed pressure vessel a month, once it was in full operation
* Profits peaked in 1967 at \$33 million, at \$2.69 a share
* The most biting criticism of Neilson's regime comes from men charged with nuclear assignments. In their eyes, Neilson's lack of formal education proved a serious handicap. It can be seen, in retrospect, that he may have been too successful in keeping B & W lean. His determination to keep down the fat sometimes "had the effect of cutting into good red meat" says a former B & W executive
* Aug 1966: A linear accelerator, used to detect welding flaws, was delivered 11 months late. The first delays at Mount Vernon were caused by suppliers falling far behind schedule in providing vital equipment.
* September 1967: a highly automated, tape-controlled machine center-the heart of the plant arrived a full year behind schedule
* Mount vermont lacks skilled labour force (error in selecting the location for the plant)
* The plant was closed by labor disputes on several occasions. The most serious occurred when the three-year contract expired in 1967, while equipment was still being installed. The Boilermakers went on strike over wages and work rules, and the plant was down for 40 days-unnecessarily long, in the view of President Thomas Ayers of Chicago's Commonwealth Edison, who had pressure vessels tied up at Mount Vernon. 
* B & W took an optimistic view of its prospects-choosing, according to that 1968 memorandum, to regard Mount Vernon as "an unspoiled labor market."
* September 30, 1968, only 514 of the 1,060 hourly employees hired in the preceding three years were still working for B & W; in other words, the company had hired three men for each one it trained. "Turnover of the Mount Vernon workforce has been a particularly frustrating problem, and a major reason B & W has been unable to bring its full manufacturing capabilities to bear on the situation," the 1968 memorandum concluded.
* The B & W memo cites the "noncompetitiveness of our wage scale" as a reason for the high turnover rate in the Mount Vernon work force
* The man directly responsible for the Mount Vernon plant was John Paul Craven, vice president in charge of the power generation division at Barberton. As head of B & W's largest division
*  September 1968, before the seriousness of the pressure-vessel crisis at Mount 'Vernon be-came generally known, Neilson stepped aside as chief executive in favor of George Zip
* Oct 1968 Zipf scheduled a meeting at the Mount Vernon plant with Craven and Austin Fragomen, vice president for manufacturing.
* Oct 1968 Craven suicide: (took off his clothes and climbed into a dry bathtub in his $250-a-month apartment at Akron's luxurious Carlton House. Then he slashed his ankles, cut his throat, and stabbed himself in the heart with the serrated eight-inch blade of a butcher's knife)
* AfterCraven's death, George Zipf took personal charge of the power generation division, and of the Mount Vernon works
*  Fall of 1968, B & W pacified GE to some extent by setting up a temporary welding shop on barges anchored at Madison,B & W brushed aside its customers' worries with assurances that things at Mount Vernon were not really as bad as they seemed. Even after Craven's death, the B & W management continued to maintain that its optimistic scheduling, with some minor changes, would prove to be realistic.
* April 1968, while B & W's biggest customers were searching for other suppliers. Doc Neilson-who was retiring on May 1 as an officer of the company, he quitly sold 15,000 of his 20,000 shares of B & W stock. The price at the time was about 533 a share.
* A couple of weeks later B & W stockholders got their first official hint of serious trouble ahead. George Zipf revealed at the annual meeting that he expected earnings to drop by 20 to 30 percent in 1969 because of the company's losses on nuclear business. (The actual decline, of course, has since proved to be much greater than Zipf predicted.) Before lone, the price of B & W's stock sank into the 20s. 
* On May 14 1969,  B & W sent out telegrams brusquely letting customers know that the situation at Mount Vernon was even worse than they had sus-pectedL B & W was adding 2 to 12 months to earlier delivery schedules
Market segmentation is a process in which a firms market is partitioned in sub-markets. The objective is to have the response of the marketing activities, products&services vary greatly across segments but have little variation in each segment. It should answer the questions: "Which is (are) my target markets?". The most important question in segmentation is //''"Do the customers in the target segment want the perceived value that my positioning is trying to deliver MORE than other segments''//

Other important questions are:
* How can the segment be reached?
* How quickly can the segment be reached?
* How big is the segment?
* What are likely impacts of changes in the environment (economic, lifestyle, legal)?
* What is the current and future competition look like?

When auditing the segmentation of a company one of the most important issues is: //''"How well is the segmentation reflected in all the other marketing decisions that the venture makes"''//

<<tiddler [[Customer Segmentation Criteria]]>>
<<tiddler [[Profiling Variables]]>>

The [[e-Business Market Segmentation Matrix]] helps to identify participants in an e-Business environment.

See also:
[[Resegment an existing market as a low cost entrant]]
[[Resegment an existing market as a niche player]]

Part of [[M6-S7 - Reading - Lodish - Positioning, Targeting and Segmentation]]
Part of [[M8-S1 - Reading - Strategies for E-Business - Chapter 3 - External Analysis]]
<<formTiddler [[NewBookTemplate]]>><data>{"Author":"Frank mcNair","Title":"How you make the sale","ReadingCompleted":true,"Rating":"****"}</data>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

How you make the sale is an instructive practical book with guidelines and a process for sales. It describes the following steps in the sales process:

[[Chapter 1, Selling as a service]]
[[Chapter 2, how buyers decide to buy]]
[[Chapter 3, How does as sale unfold?]]
[[Chapter 4, Research prior to the sale]]
[[Chapter 5, Meet and greet]]
[[Chapter 6. Discovery]]
[[Chapter 7, Features and Benefits]]
[[Chapter 8, Making the Case]]
[[Chapter 9, Dealing with Resistance]]
[[Chapter 10, It is OK to ask for the order]]
[[Chapter 11, Following up for ongoing profitability]]
[[Chapter 12, Launching your sales ship for a successful voyage]]

!The Sales Process 
<<tiddler [[The Sales Process]]>>
The three Pillars Supporting Sustainable Advantage are:
* Project Life Cycle Analysis
* Competitor Analysis
* Supply System Analysis
<img src="/static/files/MBI/Module%208/supportingsustainableadvantage.PNG" width=400>
Suggestion three questions:
# How long before a competitor can respond to the first mover's idea?
# Which competitor can respond?
# Will a response be effective?
[[Generic Lead Time]]
[[Competitive Asymmetry|Sources of Competitive Asymmetry]]
[[Pre-emption potential]]
Click the "new tiddler" button towards the top right of the screen to write something in your space. You'll need to give it a title, some content and, optionally, some tags that will help you identify it later.

!Stuck for ideas?
Not sure what to write about? Not sure what to keep in your space? Other people use ~TiddlySpace for almost anything. How about some of the following:

* [[Save interesting sites|]], images or articles from around the web so that you can refer back to them.
* [[Record your family tree|]], store notes on long lost relatives or ancestors and map their relationship to you.
* [[Make up a pocketbook|]] to store some useful information in, then print it out, [[fold it up|]], and take it with you.
* [[Plan your holiday|]], record where you're planning to go, note down places of interest and refer back to it later.
* [[Create a mindmap|]] to visualise your inner thoughts and see how they relate to each other.
* [[Set up a questionnaire|]] and get all your friends to answer it.

If you don't like any of those ideas, you can still use this space directly to keep notes and link them together, make a todo list and keep track of everything you're doing, or any one of a hundred million other things.

Still stuck? Check out the @featured space for more suggestions.

You can also [[socialise with others|How to socialise]].

Reid Hoffman is one of the most successful tech innovators and investors of the last decade. He has co-founded numerous Silicon Valley success-stories such as LinkedIn and PayPal. He will be speaking at the Silicon Valley Comes to Oxford forum in the U.K., and he has written this exclusive guest blog post for Tech Europe. The theme of his post is: A decade of entrepreneurship and investing — five lessons learned and advice for entrepreneurs and innovators in the coming decade.

Over the past decade, tech entrepreneurs and innovators have scaled some of the industry’s highest peaks and struggled through its lowest valleys. In that time period, I had my share of successes and failures: I was part of the founding team at PayPal, I co-founded and ran LinkedIn, where I am now executive chairman, and I have advised and invested in more than 80 high tech start-ups, including high-fliers such as Facebook, Zynga and Flickr, as well as a number of others with more limited elevation. Looking back
The path to purchase contains the following steps any consumers take before a purchase:

* Step 1: Identify needs or problem
* Step 2: Gather data
* Step 3: Clarify need
* Step 4: Identify options that fulfill need
* Step 5: Develop purchase criteria
* Step 6: Identify potential sources
* Step 7: Visit potential sources
* Step 8: Identify potential salespeople
* Step 9: Select preferred outlet and salesperson

See also [[AIDA]] which is a shorter version of this process.
A distinctive competence is how some people refer to the advantage that is the source of the [[Sustainable Competitive Advantage]]. If the advantage is sustainable then your venture has something that is difficult for your competition to emulate. Source of distinctive competences are:

* Technology
** Patents and trade secrets
** Source code for SW companies
* Excellent design
* High Quality
* Continuous innovation
* Excellent customer service
* Reputations and other differences in customer perception of products and services

Part of [[M6-S7 - Reading - Lodish - Positioning, Targeting and Segmentation]]
<svg xmlns="" xmlns:xl="" version="1.1" viewBox="78 222 60 60" 
width="30" height="30">
<g stroke="none" stroke-opacity="1" stroke-dasharray="none" fill="none" fill-opacity="1">
		<path d="M 107.92718 244.14815 L 86.651474 222.89253 L 78.85206 230.69925 L 100.120415 251.9476 L 78.774 273.27396 
		L 86.57342 281.08075 L 107.927216 259.74707 L 129.39981 281.19946 L 137.19922 273.39267 L 115.73397 251.94763 
		L 137.121155 230.58054 L 129.32175 222.77374 Z" fill="black" class="glyph"/>
Pearson's correlation coefficient is calculated as follows:

$\huge r = \frac{\sum xy - \sum x \sum y}{\sqrt{(n \sum x^2 - (\sum x)^2) (n \sum y^2 - (\sum y)^2)}}$

Part of [[M7-Quantitative Decision Methods-S7 - Correlation and Time series]]
See also:

Customer archetype is created from a body of anecdotal material either through direct or indirect data and it is based on cultural constructs. Customer archetypes are constructs of shared meanings that encapsulate and articulate social understandings. They are used to organize narrative that comes out from hard and soft data so we can find meaningful analogies to a situation or bringing a customer story to life.
[[Module overview|/static/files/MBI/Module%2012/Module%2012%20overview.doc]]
Read the book [[Principles of Corporate Finance]], summary:
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 1]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 2]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 3]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 6]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 7]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 8]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 9]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 30]]
[[M12-S1 - Reading - Principles of Corporate Finance - Chapter 31]]

!Session Notes

Terms introduced in this block:
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M12")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>
In the general framework for mapping resources proposed by Benoit F Leleux the following points are made with respect to //Reputation / Signaling//:
* In a world of scarce information, investors will look for any second hand information on the expected quality of your project.
* Being able to 'borrow' other reputations, whether these are venture capitalized or respected references at well know companies, will help your credibility.

Part of: [[General framework for mapping resources]]

This is the second in a series on  the Three Horizon Approach. Previously I gave a short introduction, arguing that we should take a more evolutionary perspective across the entire innovation business portfolio by using this model.

One line summary: do not spend more on marketing than you should
A sales script is predefined writing that helps sales personnel following a pattern in a sales conversation.
<<YouTubeFragment zexit7Tk1GA>>
Read the full article [[here|/static/files/MBI/Module%2021/Managing_Differences.pdf]]

The article describes the concept of [[The AAA Triangle]].
twrelease: alpha
<<YouTubeFragment YOD7PC2_Gd4>>

There’s a stark contrast between the slow pontification of a multi-national company and the focused energy of a small startup poised to change its corner of the world. Business practices obviously change when there’s more to lose, but there is definitely something to gain from adopting the startup mentality of “everything to gain” rather than focusing on keeping the status quo or minimizing potential loss.

Here are five valuable lessons that corporations can learn from their entrepreneurial counterparts in the startup world.
!1. Ditch Democracy

Your average, super-charged entrepreneur usually starts his or her journey because of a passion or epiphany. Personal experience, downright frustration, or a simple observation can light the fuse. And, once lit, entrepreneurs are unrelenting in thinking about how to change the world and bring a new product solution to market.

Product development teams in larger companies can benefit from modeling or mimicking the individual obsession and observations of the single entrepreneur. Instead of running projects in a democratic fashion, consider remaking some of your teams into smaller, highly motivated units in order to tap into the passion and drive of your would-be entrepreneur employees.

3M is a global company that has allowed product innovations to come from any corner of the business. The Post-It Note was invented by an employee, not as a product, but as an adhesive spray that would allow you to tack papers to bulletin boards. Though this concept never proved marketable, his subsequent “reusable bookmarks” that colleagues began passing around the office became one of the most successful workplace products of all time.
!2. Get Scrappy

When you’re operating on a shoestring budget, there’s motivation to be highly resourceful. Starting a company from nothing, investing life savings and using credit cards to fund product development and payroll makes the clock tick faster and the mind sharper.

Well-resourced corporations with larger teams and bigger operating budgets are typically less courageous, less resourceful and generally take longer to get products to market. Consider setting up an experiment where you find a project that can be run independently from all of the other things going on in your company. Give the project a limited budget, a limited set of resources and an audacious goal. Set the team running and see how masterfully (or un-masterfully) it tackles the challenge and what comes back out as a result.

The team at, an early-stage business in San Francisco’s Bay Area, started its business using the rapid prototyping model of learning what their consumers wanted, learning what moved every aspect of its business and, as a result, evolved its business purpose mid-plan to a more focused and relevant concept.
!3. Get Back to Your Roots

Howard Shultz from Starbucks, Gary Erickson from Clif Bar and Richard Branson from Virgin were all scrappy, “work out of a garage” entrepreneurs once upon a time. As their companies grew and their stories were told externally, they became inspiring and relevant to consumers and garnered serious fans on the outside.

One thing large companies often lack is the connection to their original story. If there was a passionate founder at one point, his or her purpose has often been overtaken by years of changing teams and Wall Street expectations. Take time to look into the passion that started the company and explore how to bring it back into the organization in a meaningful and current way. Being directed by a purpose creates real connections and opportunities for new thinking. It also gives your employees a reason to come to work and customers a reason to believe in what you’re selling.

Erickson from Clif Bar has his father’s name (Clifford) on the bar, on the building, and on every product the company makes. The story behind the brand is inspiring and one that everyone working for the company and buying the product can relate to. Erickson was a cycling nut and a weekend warrior who wanted a bar made from real food that would give him energy on his rides. His family were bakers, and he had an idea that he tested out with his mom in the kitchen. The rest is history. It’s a story of simplicity and determination that has driven the success of the company from day one.

The Honest Kitchen, a passionate pet food company in San Diego run by a husband-and-wife team, developed their original recipe in their home kitchen to feed their sick dog. Today they allow everyone in the company to bring their dogs to work. Every meeting, whether it’s with the board, a product development team, or investors, is full of pooches — reminding everyone who they’re in business to serve.
!4. Go Fast

77 kids image

Startups often move at a breakneck pace because they don’t have the luxury of time. Decisions need to be made rapidly. Using a unique blend of intuition and trust, entrepreneurs make fast decisions that don’t rely on thousands of dollars worth of research, extensive approval processes or vetting from all the higher-ups (most times because there aren’t any).

Larger companies are often weighed down by complex layers and processes, especially when it comes to new thinking or innovation. This often results in months of back and forth where very little of tangible value is accomplished. Good ideas lay dormant and often lose steam.

Set tight deadlines that create pressure for teams involved in product development or innovation scenarios. Teach them how to rapidly ideate, building on both good and bad ideas, relying less on judging ideas right then and there, but developing the largest range possible. Set them free from the typical process and let them create ideas based on their own intuition. Even if the outcomes have to run through your corporate process eventually, hold that step to the side as long as you can and see what happens as a result.

In working with American Eagle Outfitters to create 77Kids, my company dedicated a standalone team that immersed itself in the project and the business space. Working with a dedicated team unencumbered by the larger business, but still able to tap into their expertise and resources enabled us to build a business from the blank page to launch in 18 months.
!5. Mix It Up

It’s counterintuitive to look at potential competitors and reach out to collaborate, but brands with shared values and complimentary missions may very well be excellent strategic partners. We’re seeing a growing trend in competitive cooperation. It’s most often entrepreneurs who are willing to do this, either out of necessity, desire or shared interest.

Large companies often shy away from working with competitors in an effort to keep their information confidential, ensure market share isn’t lost, and assets are protected. Give the people on your team some freedom to explore potential partnerships with your competition and chart the places you think rich collaboration might happen. You don’t have to act on the synergies if they don’t align with your goals, but even the exploration could yield interesting and new ideas to feed back into your organization.

As a founding member of the CleanWell team, we worked with our friends at IDEO to develop products for a more natural way to clean. CleanWell has been highly collaborative and has been able to take its ingredient technology platform and partner with other disruptive and progressive cleaning companies like Seventh Generation and Method by licensing the ingredient technology and the “Powered by CleanWell” brand to increase their product efficacy. This collaboration benefits all parties involved, most importantly the consumer.

''Session Purpose''
* Understanding the role of prior knowledge in market opportunity identification
* Analyzing & managing team processes in market opportunity identification
''Discussion Topics''
* The team process in market opportunity identification, role of team composition
* Effects of technological resource properties
* Active market opportunity search strategies
''Session Preparation''
* [[Dougherty, D. 1992. Interpretative barriers to successful product innovation in large firms|/static/files/MBI/Module%206/READINGS_%20Dougherty_OrgSc_1992.pdf]]. Organization Science 179-202.
* [[Shane, S. 2000. Prior knowledge and the discovery of entrepreneurial opportunities|/static/files/MBI/Module%206/READINGS_Shane_OrgSc2000.pdf]]. Organization Science 448-469.

[[M6-S6 - Reading - Dougherty - Interpretative barriers to successful product innovation in large firms]]
[[M6-S6 - Reading - Shane -  Prior knowledge and the discovery of entrepreneurial opportunities]]

[[M6-S6 - Pitches]]
The CAGE Distance Framework is a framework to define distance between groups in terms culture, administration rules, geographic distance and economic distance:

||[[Cultural Distance]]|[[Administrative Distance]]|[[Geographic Distance]]|[[Economic Distance]]|h
|''Attributes creating distance''|different languages<br>different ethnicities<br>lack of social networks<br>different religions<br>different social norms|absence of colonial ties<br>absence of shared<br>monetary or political association<br>political hostility<br>government policies<br>institutional weakness|physical remoteness<br>lack of a common border<br>lack of sea or river access<br>size of country<br>weak transportation or communication links<br>differences in climates|differences in consumer incomes<br>differences in costs and quality of:<br>• natural resources<br>• financial resources<br>• human resources<br>• infrastructure<br>• intermediate inputs<br>• information or knowledge|
|''Industries&Products affected''|products have high linguistic content (TV)<br>products affect cultural or national identity of consumers (foods)<br>product features vary in terms of:<br>• size (cars)<br>• standards (electrical appliances)<br>• packaging products carry country specific quality associations (wines)|government involvement is high in industries that are:<br>• producers of staple good (electricity)<br>• producers of other “entitlements” (drugs)<br>• large employers (farming)<br>• large suppliers to government (mass transportation)<br>• national champions (aerospace)<br>• vital to national security (telecommunications)<br>• exploiters of natural resources (oil, mining)<br>• subject to high sunk costs (infrastructure)|products have a low value-to-weight or bulk ratio (cement)<br>products are fragile or perishable (glass, fruit)<br> communications and connectivity are important (financial services)<br>local supervision and  operational requirements are high (many services)|nature of demand varies with income level (cars)<br>economies of standardization or scale are important (mobile phones)<br>labor and other factor cost differences are salient (garments)<br>distribution or business systems are different (insurance)<br>companies need to be responsive and agile (home appliances)|
A Domain name:
* Is not regulated by IP but very important
* Condition: apply for it in time
* First come, first serve basis
* Terms of protection: depends on agreement with independent  registrar
* Domain name dispute resolution systems: [[ICANN|]]  and [[WIPO|]]

Requirements for dispute resolution:
* Domain name identical and confusingly similar to a trademark
* No legitimate interest
* Registered and used in bad faith

* Infringing the functions of a trademark
# An indication of origin of the products or services
# A quality guarantee indicator
# A means of communication
# Possibilities to recoup an investment
# Advertising means

Hubris, Passion and Customer Development « Steve Blank
The coefficient of correlation is a value between -1 and 1 that indicates how strong the relationship between two variables is.

A value of -1 indicates that there is a positive correlation between the independent and dependent variable. It means whenever there is an increase in the independent variable there is decrease in the dependent one.

A value of 1 indicates that there is a positive correlation between the independent and dependent variable. It means whenever there is an increase in the independent variable there is also an increase in the dependent one.

A value of 0 means that there is no identifiable linear relationship between the independent and dependent variable.

[[Pearson's correlation coefficient]] is the most widely used formula to calculate the correlation coefficient for cardinal data.

Part of [[M7-Quantitative Decision Methods-S7 - Correlation and Time series]]
See also: [[Dependent variable]]
See also: [[Independent variable]]
|''Description''|Mimics allTags macro to provide ways of creating lists grouping tiddlers by any field|
|''Author''|Jon Robson|
{{{<<groupBy tags>>}}}
mimics allTags macro

{{{<<groupBy server.bag>>}}}
groups by the server.bag field (this version contains TiddlySpace specific code for turning a bag into a space name)

{{{groupBy modified dateFormat:"YYYY"}}}
group tiddlers by year.

{{{<<groupBy tags exclude:excludeLists exclude:systemConfig>>}}}
group tiddlers by tag but exclude the tags with values excludeLists and systemConfig

Within that group you can also exclude things by filter
{{{groupBy modifier filter:[tag[film]]}}}
will group tiddlers tagged with film by modifier.
(function($) {
var taglocale = config.views.wikified.tag;
var macro = config.macros.groupBy = {
	locale: {
		tooltip: "all tiddlers in group %0",
		noTiddlers: "no tiddlers",
		openAllText: taglocale.openAllText,
		openAllTooltip: taglocale.openAllTooltip,
		openTiddler: "open tiddler with title %0"
	morpher: {
		// TODO: note currently the following 2 morphers are TiddlySpace specific and probably should be in separate plugin
		"server.workspace": function(value, options) {
			return macro.morpher["server.bag"](value.replace("bags/", "").replace("recipes/", ""));
		"server.bag": function(value, options) {
			if(typeof(value) !== "string") {
				return false;
			} else if(value.indexOf("_public") === -1 && value.indexOf("_private") === -1) {
				value = "*%0".format(value); // add star for non-space bags.
			return value.replace("_public", "").replace("_private", "");
		created: function(value, options) {
			return value.formatString(options.dateFormat || "DD MMM YYYY");
		modified: function(value, options) {
			return macro.morpher.created(value, options);

	handler: function(place, macroName, params, wikifier, paramString) {
		var field = params[0] || "server.workspace";
		var dateFormat = params[1] || "DD MMM YYYY";
		var container = $("<div />").attr("macroName", macroName).addClass("groupBy").
			attr("refresh", "macro").attr("fieldName", field).
			attr("paramString", paramString).
			attr("dateFormat", dateFormat).appendTo(place)[0];
	isTypeArray: function(value) {
		var valueType = typeof value;
		if(valueType === "object" && typeof value.length === "number" &&
			!(value.propertyIsEnumerable("length")) &&
			typeof value.splice === "function") { //is Array
			return true;
		} else {
			return false;
	_onClickGroup: function(ev, options) {
		var i, target =, locale = macro.locale;
		var tiddlers = $(target).closest(".templateContainer").data("tiddlers");
		var popup = $(Popup.create(target)).addClass("taggedTiddlerList")[0];
		var value = $(target).attr("value");
		var openAll = createTiddlyButton($("<li />").appendTo(popup)[0],
			locale.openAllText.format(value), locale.openAllTooltip);
		$(openAll).click(function(ev) {
			story.displayTiddlers(, tiddlers);
			return false;
		var listBreak = $("<li />").addClass("listBreak").html("<div />").appendTo(popup);
		for(i = 0; i < tiddlers.length; i++) {
			var item = $("<li />").appendTo(popup)[0];
			var template = store.getTiddlerText(options.template) || macro.template;
			wikify(template, item, null, tiddlers[i]);
		$(createTiddlyLink($("<li />").appendTo(popup)[0], value, false)).
		return false;
	_refresh: function(container, tiddlers, options) {
		var totalGroups = 0, locale = macro.locale, i, j;
		var excludeValues = options.exclude;
		var values = {}, value_ids = [];
		var field = options.field;
		var morpher = macro.morpher[field] || function(value) {
			return value;
		for(i = 0; i < tiddlers.length; i++) {
			var tiddler = tiddlers[i];
			var value = tiddler[field] || tiddler.fields[field];
			value = macro.isTypeArray(value) ? value : [ value ];
			for(j = 0; j < value.length; j++) {
				var v = morpher(value[j], options);
				if(v && $.inArray(v, excludeValues) === -1) {
					totalGroups += 1;
					if(!values[v]) {
						values[v] = [];
		var ul = $("<ul />").appendTo(container)[0];
		if(totalGroups === 0) {
			$("<li />").addClass("listTitle").text(locale.noTiddlers);
		value_ids = value_ids.sort();
		var groupTemplate = store.getTiddlerText(options.groupTemplate);
		var onClick = function(ev) {
			macro._onClickGroup(ev, options);
		for(i = 0; i < value_ids.length; i++) {
			var title = value_ids[i];
			var info = getTiddlyLinkInfo(title);
			tiddlers = values[title];
			var btn = createTiddlyButton($("<li />").appendTo(ul)[0],
				"%0 (%1)".format(title, tiddlers.length), locale.tooltip.format(title), null, info.classes);
			if(groupTemplate) {
				wikify(groupTemplate, btn, null, tiddlers[0]);
			$(btn).click(onClick).attr("value", title).attr("refresh", "link").attr("tiddlyLink", title);
			$(btn).addClass("templateContainer").data("tiddlers", tiddlers);
	refresh: function(container) {
		container = $(container).empty();
		var paramString = container.attr("paramString");
		var args = paramString.parseParams("name", null, true, false, true)[0];
		var options = { field: container.attr("fieldName"), dateFormat: container.attr("dateFormat"), exclude: args.exclude || [],
			template: args.template ? args.template[0] : false, groupTemplate: args.groupTemplate ? args.groupTemplate[0] : "" };
		var tiddlers = args.filter ? store.filterTiddlers(args.filter[0]) : store.getTiddlers("title");
		macro._refresh(container, tiddlers, options);
	template: "<<view title link>>"

config.macros.BBClonePlugin = {
  handler: function (place, macroName, params, wikifier, paramString, tiddler)
     var uri = "/bbclone/count.php?tiddler=Tiddler:[%0]".
The initial decision process by a venture capital firm where many entrepreneurial business plans are screened down to a few that are deemed to have high probability of success and warrant further due diligence.
The consumption chain looks at the different milestones in consuming a product. Along the life cycle there will be many differentiation opportunities:

<img src="/static/files/MBI/Module%206/diffentiationopportunities.PNG" width=600>

* Awareness of need
* Search
* Selection
* Order and purchase
* Delivery
* Payment
* Finance
* Receipt
* Installation, assembly
* Storage, transport
* Use
* Service
* Repair, Returns
* Final disposal
Employee ownership occurs when a business is owned in whole or in part by its employees. Employees are often given a share of the business after a certain length of employment or they can buy shares at any time. They also often have boards of directors elected directly by the employees. Some corporations make formal arrangements for employee participation, called ''employee stock ownership plans (ESOPs)''

Professor: [[John Glen|]]
[[Module overview|/static/files/MBI/Module%2022/Module%2022%20Business%20Economics%20-%20Overview.doc]]

!Session Notes

 'tiddler.tags.contains("Article") &&  tiddler.tags.contains ("M22")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 
 'tiddler.tags.contains("Case") &&  tiddler.tags.contains ("M22")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 
!Terms introduced in this block
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M22")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>
In [[The Personal MBA]] an //agency// focuses on marketing and selling an asset you don’t own. An agency can earn a commission by establishing a new relationship between a source and a buyer. It is one of the [[Twelve standard Forms of Value]] (Form of Value #7 of 12). Sellers can generate value through an agency which otherwise would not happen. Buyers can benefit from an agency; good agents can find cheap and good assets.
The key challenges to make an agency successful are:
* Commission should be high enough to justify the effort
* Focus should be on closing the transaction as fast as possible
(my own additions not from the book) The dangers of an agency are:
* Who owns the end customer and can [[appropriate|Appropriability]] the value?
!Key Points:
* The agency focuses on marketing and selling an asset you don’t own. By establishing a new relationship between a source and a buyer, you earn a commission.
* The keys to success in this form of value are:
** Find a seller with a valuable asset.
**  Establish contact and trust with potential buyers of that asset.
** Negotiate the terms of sale until an agreement is reached.
** Collect the agreed-upon commission from the seller.
* The benefit for sellers is generating sales that without an agency might not happen.
* Buyers benefit by finding assets to buy that the agent, whom they trust, filters for them.
* It’s critical to keep a high enough commission to make the effort worth it.
!Questions for Consideration:
* Does delivering value via acting as an agent or affiliate make sense for your business idea?
* If so, what do you need to plan for to make it successful?


By employing two paradigms that differed widely in musical complexity, we found that improvisation (compared to production of over-learned musical sequences) was consistently characterized by a dissociated pattern of activity in the prefrontal cortex: extensive deactivation of dorsolateral prefrontal and lateral orbital regions with focal activation of the medial prefrontal (frontal polar) cortex
The dependent variable is the variable we wish to predict. Input will used for the prediction is the [[Independent variable]]

Part of [[M7-Quantitative Decision Methods-S7 - Correlation and Time series]]
See also: [[Independent variable]]
In the picture below you see that at any moment in time entrepreneurs and investors look differently at the present value of an investment. 
<<image /static/files/MBI/Module%2013/investorsviewversusentrepreneurialview.PNG width:500>>
1) Winning value proposition
<<tiddler [[Discounted Cash Flow]]>>
A brand is the personification of a product, service, or even an entire company. Like any person, a brand has physical 'body' (the products and services it provides). Also, like a person a brand has a name, a personality, character and a reputation. Like a person, you can respect, like and even love a brand. You can think of it as a deep personal friend or merely an acquaintance.

* ''//Differentiation//''
** Helps you stand out, makes you more memorable
* ''//Consistency//''
** Helps show your reliability in situations - build trust with others - People know what to expect in either good or bad times
* ''//Clarity//''
** Allows you to stand for something - to convey what you want to as a leader
* ''//Authenticity//''
** A personal brand helps you communicate who you really are when you speak with sincerity you are much more persuasive

You can view a brand as dependable or undependable; principled or opportunistic; caring or capricious. Just as you like to be around certain people and not others, so also do you like to be with certain brands and not others. Also, like a person, a brand must mature and change its product over time. But its character, and core beliefs shouldn’t change. Neither should its fundamental personality and outlook on life.

People have character…so do brands. A person’s character flows from his/her integrity: the ability to deliver under pressure, the willingness to do what is right rather than what is expedient. You judge a person’s character by his/her past performance and the way he/she thinks and acts in both good times, and especially bad.

The same are true of brands.
Full article: [[Lodish, L.M., Morgan, H., Kallianpur, A. 2001. Positioning, Targeting and Segmentation|/static/files/MBI/Module%206/READINGS_Lodish_2001.pdf]]

Positioning and segmentation are the real core of what makes the entrepreneurial venture work or not. [[Positioning]] is how the product or service is to be perceived by a target market with respect to the competition. [[Market Segmentation]] answers the questions: "Which is (are) my target markets?"

The positioning question include the ventures:
* [[Distinctive competence]]
* [[Sustainable Competitive Advantage]]

If the market doesn't value what they perceive to be the distinctive competence of your firm versus the competition then the positioning will not be successful. Furthermore as perceptions are not easy to change, ''perceived distinctive competence should be sustainable over time''

The top ten lessons learned for entrepreneurial marketing are:
# Positioning and segmentation are key decisions
# In-market testing provides the truest indication of perception and reaction to offerings
# Price to maximize total profits stream over the product life cycle
# Public relation creates buzz with higher credibility than the same dollars spent on advertising
# Anticipate and manage [[channel conflicts|Channel conflict matrix]] - avoiding them means you are probably missing some channels
# Marketing may impact raising capital more than sales in a company's early life
# Hiring the best talent pays off - market to potential employees with different messages than products
# Events and promotions should be used carefully to avoid jeopardizing the primary offering in the target markets
# Advertising options should be tested and evaluated - don't be overly swayed by creative material
# Positioning and target segmentation are the key decisions (yes, we said it twice)

Innovative usages/visualizations of the #bmgen Canvas by Prof Cabirio Cautela's class

<<image /static/files/MBI/businessmodel%20visualisations.jpg width:800>>

# Does this EBP meet my expectations for efficient provision of sufficient information upon which to make the screening decision?
# As a Venture Capitalist I am expecting that:
## key success factors and risks can be clearly identified and are understood?
## the venture has a large projected market with good potential market penetration 
## a strategy for commercialization profitability and market dominance is present?
## a strong proprietary and competitive position can be established and protected.

Low: Only 1 or 2 of the expectation items are present in the EBP
Medium: 3 ofthe expectation items are present in the EBP
High: All 4 of the expectation items are present in the EBP
In the article [[Do Some Business Models Perform Better than Others?|]] (copied locally [[here|]]) 16 business models are defined by using two axes:

* Type of rights sold
** The first, and most obvious, kind of right a business can sell is the ''right of ownership of an asset''. Customers who buy the right of ownership of an asset have the continuing right to use the asset in (almost) any way they want including selling, destroying, or disposing of it.
** The second kind of right a business can sell is the ''right to use an asset'', such as a car or a hotel room. Customers buy the right to use the asset in certain ways for a certain period of time, but the owner of the asset retains ownership and can restrict the ways customers use the asset. And, at the end of the time period, rights revert to the owner.
** In addition to these kinds of rights, there is one other less obvious—but important—kind of right a business can sell. This is the ''right to be matched with potential buyers or sellers'' of something. A real estate broker, for instance, often first secures the right to buy, sell, or lease a property on behalf of the principal.
* Type of asset

||[[Physical assets]]|[[Financial assets]]|[[Intangible assets]]|[[Human assets]]|h
|[[Creator]]|[[Manufacturer]]|[[Entrepreneur]]|[[Inventor]]|[[Human Creator]]|
|[[Distributor]]|[[Financial Trader]]|[[Wholesaler/Retailer]]|[[Intellectual Property (IP) Trader]]|[[Human Distributor]]|
|[[Landlord]]|[[Physical Landlord]]|[[Financial Landlord]]|[[Intellectual Landlord]]|[[Contractor]]|
|[[Broker]]|[[Physical broker]]|[[Financial broker]]|[[Intellectual property (IP) broker]]|[[Human Resources (HR) broker]]|
In [[Management Control]] ''//Cultural controls//'' or mutual-monitoring tap into social pressure  and group norms and values. Cultural controls are effective because members of a group have  emotional ties  to one another. Cultures are built on shared traditions;
* norms;
* beliefs;
* ideologies;
* attitudes;
* ways of behaving, etc.

Five ways to shape culture:
* ''Codes of conduct''
** Codes of ethics; corporate credos, mission statements, etc.;
** Formal written documents with broad statements of corporatevalues, commitments to stakeholders, and the ways in whichtop management would like the firm to function.
** Fundamental guiding principles of the company.
* ''Group-based rewards''
** e.g., bonus, profit-sharing, employee ownership of company stock;
** Cultural controls rather than results controls because the link between individual performance and rewards is weak.
* ''Intra-organizational transfers''
** Improve the socialization of individuals in an organization andinhibit the formation of incompatible goals and perspectives;
** Improve identification with the organization as a whole asopposed to subunit identification.
* ''Physical and social arrangements''
** e.g., office plans, interior decor, dress codes and vocabulary, etc.
* ''Tone at the top''
** Top management statements must be consistent with the culturethey are trying to create, and importantly, their behaviors shouldbe consistent with their statements.

# What is the nature of the opportunity of spotfire?
## Having a unique technology, spotfire needed to do a bit of market making (no budget available for data visualization)
## Made an error in top down market size estimation
## Concern with development team (talent pool with respect to product marketing)
# What strategy could the company pursue over the next 3-5 years?
# Spotfire expects to raise additional capital. How much is needed?
# Under what terms should Spotfire seek to raise capital?

Here are our five rules for executing a successful pivot:

!1. Have an idea compost pile.

To get to a great product or service, you need to work from great insights about your customers. If your current start-up is going down the tubes because your idea isn't resonating with customers, you don't have to throw everything away. Keep the insights about your customers that you gained along the way, angel investor Michael Dearing — who co-teaches Launchpad — tells students. Some of the best insights may come from understanding why your current idea isn't delighting them. Accepting the metaphor of composting ideas makes it easier to accept the perceived cost of failure, Dearing says.

!2. Know your customers, not just their statistics.

The user-centered design process we teach at the focuses on developing empathy for your customers. This is much more than just understanding statistics, data, and click-through rates. You need to know them well enough to understand what's important to them, what they care about, and how your product fits into their world. One of the teams in our class developed a product for police that makes duty gear more comfortable. Through their social networks, they found a few officers they could spend time with, getting a better understanding of their lives and jobs that went far beyond technical or ergonomic specs for a product. When you know your customers so well you can see your product through their eyes, you'll have an intuitive sense for when it's time to pivot.

!3. Fail earlier, more cheaply, and more often.

Failing early and often is a Silicon Valley cliché. But the key is to fail as cheaply as possible. Perry's first company, Atlas Snowshoes, failed every weekend. He'd build prototypes for new designs out of the materials he had on hand, and then try them out on weekend adventures with friends. Broken straps and cracked frames would leave him hiking out of the woods with unhappy companions in knee-deep snow. But those early, cheap failures meant that by the time he went to manufacture his product, he knew how to keep the same thing from happening to customers.

Getting time with your customers before you go to market is cheap. Show them a prototype and find out if they'll use it. Test your product or service by making it quickly with post-its, paper or a quick technology hack before you ever write a line of code. PowerPoint can substitute for an interface; a $20 Google Adwords buy will tell you a lot about driving traffic. An early pivot is exponentially cheaper than a late one.

!4. Build a customer-focused culture, not a product-focused one.

A pivot can seem obvious from the top, but to those who've been executing a product that's changing direction it can be frustrating. To execute a successful shift, you need your team on board. One way to do that is to build a culture focused on making customers happy. If your team believes that pleasing your customers — by any means and over the long term — is more important than executing your current idea, it will be easier for them to accept change.

!5. Don't survive mediocrity.

WorkerExpress started out as a text message-based way for homeowners to schedule hourly construction workers. But the market founders Joe Mellin and Pablo Fuentes had hoped for just wasn't there. The company wasn't in imminent danger of failing and could have limped along, but Mellin and Fuentes made the decision to pivot. In the research they'd done for their original idea they found a new direction: they realized that large contractors who need temporary help on job sites don't have any great options. In the midst of one of the largest construction droughts in American history, they managed to build a booming web-based platform.

Lots of companies find themselves in a similar spot. The key is confronting the fact that it's time to re-evaluate. If you don't have a single die-hard fan of your product — let alone the thousands you'd need to take off — it's time to pivot into something your customers are passionate about.
<<formTiddler [[NewBookTemplate]]>>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>
Tip from Dick Verkley<data>{"Author":"Michael Chase"}</data>
In [[The Lean Startup]] a //growth hypothesis// is an hypothesis that tests how (fast) new customers discover a product or a service. Once a product or service is developed: how fast does it spread among paying customers?

See also: [[Engines of Growth]]

Paper on platform business models
<<formTiddler [[NewBookTemplate]]>><data>{"Author":"Robert Cialdini","Title":"Influence, the psychology of persuation","Rating":"****","ReadingCompleted":true}</data>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

Tip during the [[M16-Sales and Negotiation]] block. Describes the [[Six principles of influence]]

[[Chapter 1, Influence]]
[[Chapter 2, Reciprocity]]
[[Chapter 3, Commitment and consistency]]
[[Chapter 4, Social proof]]
[[Chapter 5, Likeability]]
[[Chapter 6, Authority]]
![[Six principles of influence]]
<<tiddler [[Six principles of influence]]>>
In [[The Personal MBA]] a //resale// is based on purchasing an asset from another business to sell it later at a higher price. It is one of the [[Twelve standard Forms of Value]] (Form of Value #5 of 12). Resellers are valuable because they help wholesalers sell products without having to find individual buyers. The core competences for a reseller need to be:
* Sourcing good products at low prices
* Managing inventory levels
!Key Points:
* Resale is, basically, purchasing an asset from another business to sell it later at a higher price.
* The keys to do this effectively are:
** Purchase a product as inexpensively as possible, usually in bulk.
** Keep the product in good condition until sale.
** Find purchasers of the product quickly to lower inventory costs.
** Sell the product for as high a markup as possible.
* Resale value lies in helping wholesalers sell without having to find individual customers.
!Questions for Consideration:
* Does delivering value as a resale make sense for your business idea?
* If so, what do you need to plan for to make it successful?


<<YouTubeFragment nSYUueIFMZE>>

<div style="width:425px" id="__ss_1178381"><strong style="display:block;margin:12px 0 4px"><a href="" title="Startup Viagra: How to Pitch a VC">Startup Viagra: How to Pitch a VC</a></strong><object id="__sse1178381" width="600" height="355"><param name="movie" value="" /><param name="allowFullScreen" value="true"/><param name="allowScriptAccess" value="always"/><embed name="__sse1178381" src="" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="355"></embed></object><div style="padding:5px 0 12px">View more presentations from <a href="">Dave McClure</a>.</div></div>
In this step you begin talking about your product(s) or service(s). You will do this in terms of its basic features but will need to translate these features to (perceived) benefits for your customer. Key point is to talk about the features and benefits of your product/service in //''a way that matters''// to the prospective customer.
Key take aways from this case:
* Learn from ALL inputs you get and use it to your advantage
* The first business plan seems to be wrong, sharpen it continuously
* Don't give up to fast
* Don't do business in France :-)

<<AudioFragment /static/files/MBI/Module%2010/M10-S3%20-%20Vistaprint%20-%20Conclusion.mp3>>

Related to: [[M10-S4 - Case - Papyrus Laser]]
|''Description:''|Adaptor for moving and converting data from MediaWikis|
|''Author:''|Martin Budden (mjbudden (at) gmail (dot) com)|
|''Source:''| |
|''CodeRepository:''| |
|''Date:''|Jul 27, 2007|
|''Comments:''|Please make comments at |
|''License:''|[[Creative Commons Attribution-ShareAlike 2.5 License|]] |

|''Max number of tiddlers to download''|<<option txtMediaAdaptorLimit>>|

MediaWiki REST documentation is at:


if(!version.extensions.MediaWikiAdaptorPlugin) {
version.extensions.MediaWikiAdaptorPlugin = {installed:true};

if(config.options.txtMediaAdaptorLimit == undefined)
	{config.options.txtMediaAdaptorLimit = '500';}
function MediaWikiAdaptor()
{ = null;
	this.workspace = null;
	return this;

MediaWikiAdaptor.serverType = 'mediawiki';
MediaWikiAdaptor.serverParsingErrorMessage = "Error parsing result from server";
MediaWikiAdaptor.errorInFunctionMessage = "Error in function MediaWikiAdaptor.%0";

MediaWikiAdaptor.doHttpGET = function(uri,callback,params,headers,data,contentType,username,password)
	return doHttp('GET',uri,data,contentType,username,password,callback,params,headers);

MediaWikiAdaptor.prototype.setContext = function(context,userParams,callback)
	if(!context) context = {};
	context.userParams = userParams;
	if(callback) context.callback = callback;
	context.adaptor = this;
	if(! =;
	if(!context.workspace && this.workspace)
		context.workspace = this.workspace;
	return context;

MediaWikiAdaptor.fullHostName = function(host)
		return '';
		host = 'http://' + host;
	if(host.substr(host.length-1) != '/')
		host = host + '/';
	return host;

MediaWikiAdaptor.minHostName = function(host)
	return host ? host.replace(/^http:\/\//,'').replace(/\/$/,'') : '';

MediaWikiAdaptor.normalizedTitle = function(title)
	var n = title.charAt(0).toUpperCase() + title.substr(1);
	return n.replace(/\s/g,'_');

// Convert a MediaWiki timestamp in YYYY-MM-DDThh:mm:ssZ  format into a JavaScript Date object
MediaWikiAdaptor.dateFromTimestamp = function(timestamp)
	var dt = timestamp;
	return new Date(Date.UTC(dt.substr(0,4),dt.substr(5,2)-1,dt.substr(8,2),dt.substr(11,2),dt.substr(14,2)));

MediaWikiAdaptor.anyChild = function(obj)
	for(var key in obj) {
		return obj[key];
	return null;

MediaWikiAdaptor.prototype.openHost = function(host,context,userParams,callback)
{ = MediaWikiAdaptor.fullHostName(host);
	context = this.setContext(context,userParams,callback);
	if(context.callback) {
		context.status = true;
		window.setTimeout(function() {callback(context,userParams);},0);
	return true;

MediaWikiAdaptor.getWorkspaceId = function(workspace)
	var workspaces = {
		"media": -2, "special":-1,
		"":0, "talk":1,"user":2,"user talk":3,"meta":4,"meta talk":5,"image":6,"image talk":7,
		"mediawiki":8,"mediawiki talk":9,"template":10,"template talk":11,"help":12,"help talk":13,
		"category":14,"category talk":15};
	workspace = workspace.toLowerCase();
	var id = workspaces[workspace];
	if(!id) {
		if(workspace=="" || workspace=="main")
			id = 0;
		else if(workspace.lastIndexOf("talk") != -1)
			id = 5;
			id = 4;
	return id;

MediaWikiAdaptor.prototype.openWorkspace = function(workspace,context,userParams,callback)
		workspace = "";
	this.workspace = workspace;
	context = this.setContext(context,userParams,callback);
	if(workspace) {
		if(context.workspaces) {
			for(var i=0;i<context.workspaces.length;i++) {
				if(context.workspaces[i].name == workspace) {
					this.workspaceId = context.workspaces[i].id;
		} else {
			workspace = workspace.toLowerCase();
			this.workspaceId = MediaWikiAdaptor.getWorkspaceId(workspace);
	if(!this.workspaceId) {
		if(workspace=="" || workspace.toLowerCase()=="main")
			this.workspaceId = 0;
		else if(workspace.lastIndexOf("talk") != -1)
			this.workspaceId = 5;
			this.workspaceId = 4;
	if(context.callback) {
		context.status = true;
		window.setTimeout(function() {callback(context,userParams);},0);
	return true;

MediaWikiAdaptor.prototype.getWorkspaceList = function(context,userParams,callback)
	context = this.setContext(context,userParams,callback);
	if(context.workspace) {
		context.status = true;
		context.workspaces = [{name:context.workspace,title:context.workspace}];
			window.setTimeout(function() {callback(context,userParams);},0);
		return true;
	var uriTemplate = '%0api.php?format=json&action=query&meta=siteinfo&siprop=namespaces';
	var uri = uriTemplate.format([]);
	var req = MediaWikiAdaptor.doHttpGET(uri,MediaWikiAdaptor.getWorkspaceListCallback,context);
	return typeof req == 'string' ? req : true;

MediaWikiAdaptor.getWorkspaceListCallback = function(status,context,responseText,uri,xhr)
	context.status = false;
	if(status) {
		try {
			eval('var info=' + responseText);
		} catch (ex) {
			context.statusText = exceptionText(ex,MediaWikiAdaptor.serverParsingErrorMessage);
		var namespaces = info.query.namespaces;
		var list = [];
		for(var i in namespaces) {
			item = {}; = namespaces[i]['id'];
			item.title = namespaces[i]['*']; = item.title;
		context.workspaces = list;
		context.status = true;
	} else {
		context.statusText = xhr.statusText;

// get a list of the tiddlers in the current workspace
MediaWikiAdaptor.prototype.getTiddlerList = function(context,userParams,callback,filter)
	context = this.setContext(context,userParams,callback);
		context.tiddlerLimit = config.options.txtMediaAdaptorLimit==0 ? null : config.options.txtMediaAdaptorLimit;

	var limit = context.tiddlerLimit;
	if(filter) {
		var re = /\[(\w+)\[([ \w]+)\]\]/;
		var match = re.exec(filter);
		if(match) {
			var filterParams = MediaWikiAdaptor.normalizedTitle(match[2]);
			switch(match[1]) {
			case 'tag':
				context.responseType = 'pages';
				var uriTemplate = '%0query.php?format=json&what=category&cpnamespace=%1&cplimit=%2&cptitle=%3';
			case 'template':
				context.responseType = 'query.embeddedin';
				uriTemplate = '%0api.php?format=json&action=query&list=embeddedin&einamespace=0&eititle=Template:%3';
					uriTemplate += '&eilimit=%2';
		} else {
			var list = [];
			var params = filter.parseParams('anon',null,false);
			for(var i=1; i<params.length; i++) {
				var tiddler = new Tiddler(params[i].value);
				tiddler.fields.workspaceId = this.workspaceId;
			context.tiddlers = list;
			context.status = true;
				window.setTimeout(function() {callback(context,userParams);},0);
			return true;
	} else {
		context.responseType = 'query.allpages';
		uriTemplate = '%0api.php?format=json&action=query&list=allpages';
		if(this.workspaceId != 0)
			uriTemplate += '&apnamespace=%1';
			uriTemplate += '&aplimit=%2';
	var host = MediaWikiAdaptor.fullHostName(;
	var uri = uriTemplate.format([host,this.workspaceId,limit,filterParams]);
	var req = MediaWikiAdaptor.doHttpGET(uri,MediaWikiAdaptor.getTiddlerListCallback,context);
	return typeof req == 'string' ? req : true;

MediaWikiAdaptor.getTiddlerListCallback = function(status,context,responseText,uri,xhr)
	context.status = false;
	context.statusText = MediaWikiAdaptor.errorInFunctionMessage.format(['getTiddlerListCallback']);
	if(status) {
		try {
			eval('var info=' + responseText);
			var pages;
			if(context.responseType == 'query.embeddedin')
				pages = info.query.embeddedin;
			else if(context.responseType == 'query.allpages')
				pages = info.query.allpages;
				pages = info.pages;
			var list = [];
			for(i in pages) {
				var title = pages[i].title;
				if(title && !store.isShadowTiddler(title)) {
					tiddler = new Tiddler(title);
					tiddler.fields.workspaceId = pages[i].ns;
			context.tiddlers = list;
		} catch (ex) {
			context.statusText = exceptionText(ex,MediaWikiAdaptor.serverParsingErrorMessage);
		context.status = true;
	} else {
		context.statusText = xhr.statusText;

MediaWikiAdaptor.prototype.generateTiddlerInfo = function(tiddler)
	var info = {};
	var host = this && ? : MediaWikiAdaptor.fullHostName(tiddler.fields['']);
	if(host.match(/w\/$/)) {
		host = host.replace(/w\/$/,'');
		var uriTemplate = '%0wiki/%2';
	} else {
		uriTemplate = '%0index.php?title=%2';
	info.uri = uriTemplate.format([host,this.workspace,tiddler.title]);
	return info;

MediaWikiAdaptor.prototype.getTiddlerRevision = function(title,revision,context,userParams,callback)
	context = this.setContext(context,userParams,callback);
	context.revision = revision;
	return this.getTiddlerInternal(title,context,userParams,callback);

MediaWikiAdaptor.prototype.getTiddler = function(title,context,userParams,callback)
	context = this.setContext(context,userParams,callback);
	context.title = title;
	var host = MediaWikiAdaptor.fullHostName(;
	var uriTemplate = '%0api.php?format=json&action=query&prop=revisions&titles=%1&rvprop=content|timestamp|user';
		uriTemplate += '&rvstartid=%2&rvlimit=1';
	uri = uriTemplate.format([host,MediaWikiAdaptor.normalizedTitle(context.title),context.revision]);
	context.tiddler = new Tiddler(context.title);
	context.tiddler.fields.wikiformat = 'mediawiki';
	context.tiddler.fields[''] = MediaWikiAdaptor.minHostName(host);
	var req = MediaWikiAdaptor.doHttpGET(uri,MediaWikiAdaptor.getTiddlerCallback,context);
	return typeof req == 'string' ? req : true;

MediaWikiAdaptor.prototype.getTiddlerPostProcess = function(context)
	return context.tiddler;

MediaWikiAdaptor.getTiddlerCallback = function(status,context,responseText,uri,xhr)
	context.status = false;
	if(status) {
		var content = null;
		try {
			eval('var info=' + responseText);
			var page = MediaWikiAdaptor.anyChild(info.query.pages);
			var revision = MediaWikiAdaptor.anyChild(page.revisions);
			var text = revision['*'];
			context.tiddler.fields[''] = String(revision['revid']);
			var host = context.tiddler.fields[''];
			if(host.indexOf('wikipedia')==-1) {
				context.tiddler.modified = MediaWikiAdaptor.dateFromTimestamp(revision['timestamp']);
				context.tiddler.modifier = revision['user'];
			} else {
				// content is from wikipedia
				context.tiddler.created =;
				// remove links to other language articles
				text = text.replace(/\[\[[a-z\-]{2,12}:(?:.*?)\]\](?:\r?)(?:\n?)/g,'');
			context.tiddler.text = text;
			var catRegExp = /\[\[(Category:[^|\]]*?)\]\]/mg;
			var tags = '';
			var delim = '';
			catRegExp.lastIndex = 0;
			var match = catRegExp.exec(text);
			while(match) {
				tags += delim;
				if(match[1].indexOf(' ')==-1)
					tags += match[1];
					tags += '[[' + match[1] + ']]';
				delim = ' ';
				match = catRegExp.exec(text);
			context.tiddler.tags = tags;
			context.tiddler =,context);
		} catch (ex) {
			context.statusText = exceptionText(ex,MediaWikiAdaptor.serverParsingErrorMessage);
		context.status = true;
	} else {
		context.statusText = xhr.statusText;

MediaWikiAdaptor.prototype.getTiddlerRevisionList = function(title,limit,context,userParams,callback)
// get a list of the revisions for a tiddler
	context = this.setContext(context,userParams,callback);

	var uriTemplate = '%0api.php?format=json&action=query&prop=revisions&titles=%1&rvlimit=%2&rvprop=timestamp|user|comment';
		limit = 5;
	var host = MediaWikiAdaptor.fullHostName(;
	var uri = uriTemplate.format([host,MediaWikiAdaptor.normalizedTitle(title),limit]);

	var req = MediaWikiAdaptor.doHttpGET(uri,MediaWikiAdaptor.getTiddlerRevisionListCallback,context);
	return typeof req == 'string' ? req : true;

MediaWikiAdaptor.getTiddlerRevisionListCallback = function(status,context,responseText,uri,xhr)
	context.status = false;
	if(status) {
		var content = null;
		try {
			eval('var info=' + responseText);
			var page = MediaWikiAdaptor.anyChild(info.query.pages);
			var title = page.title;
			var revisions = page.revisions;
			var list = [];
			for(var i in revisions) {
				var tiddler = new Tiddler(title);
				tiddler.modified = MediaWikiAdaptor.dateFromTimestamp(revisions[i].timestamp);
				tiddler.modifier = revisions[i].user;
				tiddler.fields.comment = revisions[i].comment;
				tiddler.fields[''] = MediaWikiAdaptor.normalizedTitle(title);
				tiddler.fields[''] = title;
				//tiddler.fields[''] = String(revisions[i].revid);
			context.revisions = list;
		} catch (ex) {
			context.statusText = exceptionText(ex,MediaWikiAdaptor.serverParsingErrorMessage);
		context.status = true;
	} else {
		context.statusText = xhr.statusText;

// MediaWikiAdaptor.prototype.putTiddler not supported
MediaWikiAdaptor.prototype.close = function()
	return true;

config.adaptors[MediaWikiAdaptor.serverType] = MediaWikiAdaptor;
} // end of 'install only once'

Session audio: Saterday morning 10:00-10:45
<<AudioFragment /static/files/MBI/Module%209/M9-S4%20-%20Costing%20-%20Part%201.mp3>>

[[M9-S4 - Cash is no longer king]]
[[M9-S4 - Different types of costs]]
[[M9-S4 - Activity based costing]]
[[M9-S4 - Exercise Destin Brass Products]]

Saterday afternoon 13:15-13:45:
<<AudioFragment /static/files/MBI/Module%209/M9-S4%20-%20Costing%20-%20Part%202.mp3>>

mondaydots, visualisation movies to clarify business (model) concepts
[[Henry Mintzberg]]'s 5 Ps for Strategy

The word "strategy" has been used implicitly in different ways even if it has traditionally been defined in only one. Explicit recognition of multiple definitions can help people to manoeuvre through this difficult field. Mintzberg provides five definitions of strategy:
* Plan
* Ploy
* Pattern
* Position
* Perspective.

Strategy is a plan - some sort of consciously intended course of action, a guideline (or set of guidelines) to deal with a situation. By this definition strategies have two essential characteristics: they are made in advance of the actions to which they apply, and they are developed consciously and purposefully.
As plan, a strategy can be a ploy too, really just a specific maneuverer intended to outwit an opponent or competitor.
If strategies can be intended (whether as general plans or specific ploys), they can also be realized. In other words, defining strategy as plan is not sufficient; we also need a definition that encompasses the resulting behaviour: Strategy is a pattern - specifically, a pattern in a stream of actions. Strategy is consistency in behaviour, whether or not intended. The definitions of strategy as plan and pattern can be quite independent of one another: plans may go unrealised, while patterns may appear without preconception.

Plans are intended strategy, whereas patterns are realised strategy; from this we can distinguish deliberate strategies, where intentions that existed previously were realised, and emergent strategies where patterns developed in the absence of intentions, or despite them.
Strategy is a position - specifically a means of locating an organisation in an "environment". By this definition strategy becomes the mediating force, or "match", between organisation and environment, that is, between the internal and the external context.
Strategy is a perspective - its content consisting not just of a chosen position, but of an ingrained way of perceiving the world. Strategy in this respect is to the organisation what personality is to the individual. What is of key importance is that strategy is a perspective shared by members of an organisation, through their intentions and / or by their actions. In effect, when we talk of strategy in this context, we are entering the realm of the collective mind - individuals united by common thinking and / or behaviour.
he 'penny gap' refers to the phenomenon that buyers do not even want to spend the lowest price (1 cent). Reasons are that we are starting to think about choice with any price. [[Nick Szabo|]] called this "mental transaction costs": we do not want to think about anything unless we really have to. He claimed that the system of micropayments was doomed to failure because they limit economical cost but not the cognitive costs.Josh Kopelman (First Round Capital) discovered that traditional price theory became irrelevant. There is only 'free' and 'all the other models'. Free turns around the demand curve. The biggest gap in any venture is between a product or service 'for free' and any price.
In GE the leadership pipeline is identified in three categories:

|Individual Contributor|Manager|Leader|h
|Skills|Set goals|Sets Vision|
|Knowledge|Monitors|Long term|
|Potential|"To get things done through others"|Broad perspective|
|"To Do"||"To reflect"|
''Q: How much money would John require to launce Rigg Instruments?''
A:\$597024 (largest negative cash flow)

This is assuming that the model is very accurate. Of course in reality you will need margin to compensate for risk.

''Q: What is the impact on P&L for outsourcing to Hendrik''
A:John will be profitable sooner. The reason is that he does not have to invest in a production facility: Hendrik already did this for him.

''Q: How does outsource manufacture impact the money required to launch Rigg Instruments?''
A: \$428104

''Q: Are there other potential advantages to outsource production?''
A: Yes:
* No stock when there's no sale
* No costs when there's no sale
* The outsourced partner has production as its [[Core competence]] and can become good at it.

''Q: Are there other potential disadvantages to outsource production? Can you address these?''
* Outsourcing may longer term be more expensive (depends on scale)
* This could be negotiated in volume contracts with Hendrik

''Q: What payment terms for customers did John had in mind?''
60 and 90 days
Different terms will cause John to only need \$256386,-

''Q: What else could John consider to improve cash flow?''
* Increase revenue
* Depending on the product John may even be able to get upfront payment

''Q: How much did John spend on product development for Relix? How does this compare with the total cost of launching Rigg? Why is this?''
A: \$56000,-
There is significant cost in starting up a brand new business from scratch:
* Wages
* Building a sales channel
* Advertisements

A core competence of a firm is a [[Competence]] which is valuable across different products and markets, unique and hard to imitate:
* Valuable
** Customers have to be willing to pay for the value a core competence represents (lower costs or customer benefit)
* Unique
** If a competence is not unique competition will drive down profits.
* Hard to imitate
** A competence uniqueness is sustainable only if other firms have difficulties to replicate the competence:
*** Require tightly interlinked function within a firm
*** Causal ambiguity increases barriers to imitation. This is if the roots of the competence are hard to understand
* Valuable across different products or markets

<img src="/static/files/MBI/Module%206/competencesandproducts.PNG" width = 500>

Part of [[M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis]]

See also:
[[M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation]]
[[M6-S4 - Session notes]]
One can think of a corporation as three different businesses:
*Customer relation management
* Infrastructure management
* Product innovation
<img src="/static/files/MBI/Module%208/unbundlingthecorporation.PNG" width=500>

These three business conflict with each other becuase they have different requirements for economics, culture and competition:

<img src="/static/files/MBI/Module%208/differentimperativesfordifferentincompanybusinesses.PNG" width=600>

Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]
DMU stands for Decision Making Unit: it includes all people involved in making a decision and can include: initiators, influencers, gatekeepers, deciders, buyers, users, etc.

See [[Decision Making Unit (DMU)]]@sales
In [[Marketing Strategy and Organization: Building Sustainable Business]] the value grid summarizes market reality along two axes:
* [[Value@Customer]]
* [[Value@Company]]
<<image /static/files/MBI/Module%2011/valuegrid.PNG width:500>>
* The ''success'' box defines the best situation, value is delivered to the company and the customer. Current and future customers can rest assured of a sustained offering.
* The ''Idiot'' quadrant is very common. The organization operates in such a way that its company will turn into an economic hell.
* The ''Rip-off'' quadrant denotes a situation where a short term 'rip-off' undermines the longer term viability of the company
* The ''Lobotomy'' quadrant refers to a situation where both company and customer are unhappy with each other. This happens more often than you would think. It would not happen in a fully free market situation but sometimes is a result of government rules.
Dogs or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.

Part of: [[BCG Matrix]]
In accounting, //''retained earnings''// refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.

Retained earnings are reported in the shareholders' equity section of the [[Balance Sheet]]. Companies with net accumulated losses may refer to negative shareholders' equity as a shareholders' deficit. A complete report of the retained earnings or retained losses is presented in the Statement of Retained Earnings or Statement of Retained Losses.
//''Current assets''// have a life span of one year or less, meaning they can be converted easily into cash.

Such assets classes include:
* [[Cash]]
* [[Cash Equivalents]]
* [[Accounts Receivable]]
* [[Inventory]]
* Prepaid expenses for future services that will be used within a year
In many companies budgeting is one of the lowest rated internal processes. Budget estimates often contain slack but nobody knows how much. The 'beyond budgeting' movement advocates to stop with budgeting for this reason.

Startup CEOs wear many hats. None, perhaps, is more important than that of “company pitchman.”

In today’s competitive funding climate, CEOs often present at events like Under the Radar, South by Southwest, and DEMO –- where they have five minutes on stage to ‘sell’ their company to potential investors, partners, and customers. Getting these presentations right leads to financing, buzz and growth; getting them wrong doesn’t.

In my role as CEO of SlideRocket, I view hundreds of presentations a week and thousands over the course of the year. I’m frequently surprised by how many presentations don’t convey a clear story. A great “company pitch” presentation leaves venture capitalists, prospects, and judges inspired. The audience should walk away with the ability to restate your company’s vision, a clear picture of how you will achieve that vision, and the economic ramifications of attaining it. If the audience is inspired and can accurately re-tell your story, then your presentation was effective.

So how do you make a great startup presentation? Having recently viewed all of the company pitch presentations at SXSW 2010’s Start-Up Accelerator competition – the good and the bad – I’ve pulled together some key observations on what works and what doesn’t. These tips should apply to most any presentation, but they apply especially to startup CEOs, who need to make their point fast, elegantly, and succinctly.

''1. Know thyself''. Before you create your presentation, take stock of the company vision, goals and roadmap. If you are still working on the exact vision and goals, then choose a story and stick to it. Be honest with yourself. Is your company unique? Does it have big barriers to entry, a unique technology, or patentable intellectual property? You can make a great and compelling presentation to influencers and VCs even if your company isn’t a “one and only.” Be clear and candid about how your company will achieve success in the face of competition. Too often, presenters try to glaze over issues of concern. Your audience is bright and it’s best to proactively address foreseeable roadblocks your company may face. By doing so, you gain trust and build credibility.

Critical questions to answer during your presentation include:

* What is the company vision? It’s great if you can convey your five-year plan. However, at the very least, focus on communicating a concise, concrete vision for the immediate future and why it’s crucial for the current market.
* What is the problem being addressed? Without your product, how are people operating today and what’s wrong with the status quo? Use real world examples and sound bites that make your product memorable – such as “our technology takes the headache out of version control”.
* Where does your company fit in the market? Regardless of whether you offer a physical product, a software feature, application, or platform, you should candidly define that market reality, and present sales and marketing plans to back up your model. Why will you win versus the competition? If you win, who loses or what changes?

''2. Present the facts'' The following facts are crucial to include in your presentation: The overall market size for your product today; a list of competitors and differentiators; your basic business model (licensing fee, subscription, one-time fees, revenue share etc.); how much funding you’ve raised (if any); names of key team members and their micro-bios.

''3. Be passionate.'' The most important thing you can convey to your audience is passion. Don’t lecture to them or read off of slides –- tell your story with emotion and energy. Passion is palpable and will engage a room from the start.

!The Basic Pitch Outline
Following is a sample outline that I have seen many successful startup presentations follow. Believe it or not, you can fit all of this into five minutes or less – especially if you use short video clips, images, graphics, and minimal text. You should mostly speak to each of the points below, using graphics to reinforce your spoken words.

    * Headline (your vision)
    * Company Purpose (short and sweet)
    * Problem (customer pain)
    * Solution (value prop to customer – great to add real customer stories)
    * Why Now (history and evolution)
    * Market Size (who are your target customers)
    * Competition (honest list)
    * Product (description and road map)
    * Business Model (revenue, pricing etc.)
    * Customer Acquisition plan (marketing and sales)
    * Team (founders & management)

At pitch events, you have just five minutes to stand out from the other presenting companies. Take advantage of your short window of fame by telling a memorable story with passion. The best company pitchmen aren’t salespeople. They’re great storytellers.
In the concept of the [[Innovation Value Chain]] a diffusion poor organization is weakest at 'spreading the word'

Some suggestions to fix the diffusion poor organization are:
* Use an 'idea evangelist'
** Phone calls
** Emails
** Sales calls
Who is allowed to do what regarding the IP?
* IP on improvements
* Establishments on maintenance
* Defense
* Infringement
* Costs
* Income
* Transfer and encumbrance
* Term
* Termination
** No-rescission
** No nullification on the ground of error
* Dispute resolution
* Choice of law
<<image /static/files/MBI/Module%2015/leadership%20style%20&%20effectiveness.PNG width:500>>

Session Audio:
<<tiddler [[M15-S1 - Audio - Personal Brands]]>>

Compliance versus commitment:
* Are people working for you through getting people //committed// or getting them //compliant//?

|Task Focused|People Focused|h
|Too tough|Too soft|
|Aggressive|Laid back|
|Upset people|Pulled by others|
|Avoid compromise|Deals with others agendas|
|Concerned with 'my agenda'|Compromise too much|

|Task Focused|People Focused|h
|Strong Projectors|Direction|
|Upset people|Pulled by others|
|"Is there a question or is this a speech?|I hate criticizing people who work with me and i try to avoid doing so|
Cospecialized assets are those for which there is a bilateral dependence

See [[M5-Strategy-S6 - Summary Teece - Complementary assets]]

<img src="/static/files/MBI/Module%205/dependenceoncomplementaryassets.PNG" width="300" />

Co-specialized assets lead to hostile situations due to mutual dependencies.

Examples of specialized assets depending on the innovation:
* Embedded DVD-players in PC's
* The cottage industry of accessories made for the iPod media device. 
Examples of an innovation depending on the specialized assets:
* EMI Laboratories' innovation of the computerized axial tomography scanner and its failure due to rival General Electric's distribution and marketing expertise.

Examples of co-specialized assets (innovation and asset depend on each other)
* Strong biotechnology patents and the marketing and distribution resources of the large pharmaceuticals.

''You never want to integrate verticals unless you really have to.'' See  [[Article of Oliver Williamson|/static/files/MBI/Module%205/economicsofgovernance.pdf]]
Catalog hubs sell [[Manufacturing inputs]] through a systematic sourcing system. Goods sold are usually tailored to meet the purchasing company's needs.

Part of: [[B2B e-commerce matrix]]
Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 10 - Choosing the appropriate strategy for interaction with suppliers]]
A competitive advantage is a strength that, given market influences the customer's decision in favor of the business unit.

A simple test to see if you are doing the right work for you:

* Do you feel proud about the company you work for and the people you work with?
* Do people you work with express their respect for what you do and how you do it?
* What do your friends and family think about the products and services you make and sell?
* Would you encourage your children to work for your company?
* Would you encourage them to do your job?

Pride builds with the following practices:
* Clarify what matters and why
* Celebrate the steps as much as the results
* Walk the talk
* Draw on values and attitudes that matter to your people
* Have a simple and compelling mission or goal
* Hire, promote and reward those that live the values and the goal

Pride breaks with:
* Break up a winning team
* Ignore local initiatives
* Cut costs in all the wrong places
* Insist on inflexible rules
* Try to 'buy' pride

''People will not criticize you for a decision you take but for the way you took that decision''
In the [[Decision Making Unit (DMU)]] the different roles can perceive your offering in different ways. Perceivers of ''growth'' believe your value proposition will bring them better results than today:

<<image /static/files/MBI/Module%2020/Perceiverofgrowth.png width:400>>

|Probability of action|High|
|Trigger words|More, Better, Faster, Improved|
|Your product|Much be able to achieve desired result|
<<formTiddler [[NewBookTemplate]]>><data>{"Author":"Adam M. Brandenburger","Title":"Co-opetition","ReadingCompleted":true,"Rating":"****"}</data>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

The authors identify five basic elements of game theory:
* ''P''layers
* ''A''dded values
* ''R''ules
* ''T''actics
* ''S''cope
The main claim of the book is that the traditional metaphore of 'war' for businesses may be wrong. Companies are
* Complementors in creating markets
* Competitors in dividing up markets
Furthermore there are both win-win and win-lose elements in relationships with:
* Customers
* Suppliers
* Complementors
* Competitors
Depending on the situation (or 'game') the tradional black and white boundaries turn out to be 'grey'. Your customer can be friend or foe, depending on how well he is able to negotiate a good price. Your competitor may create markets for which you would not have the bandwith yourselve. A friendly supplier may turn out to become a competitor. One of the best examples in the book which has multiple applications for illustrating how easily purchasing power can shift is [[Adam's Card Game]]. The game illustrates what each player's contribution or [[Added Value]] is.
This space includes all notes i took and bookmarks i collected during my study 'Master of Business Innovation' in the period 2010-2012. Interesting subspaces are:

* [[Marketing|]]
* [[Finance|]]
* [[Sales|]]
* [[Economics|]]
A ''licensing agreement'' is an arrangement whereby a licensor grants the rights to intangible property to another entity (the licensee) for a specified period, and in return, the licensor receives a royalty fee from the licensee.9 Intangible property includes patents, inventions, formulas, processes, designs, copyrights, and trademarks. For example, as described in the accompanying Management Focus, to enter the Japanese market, Xerox, inventor of the photocopier, established a joint venture with Fuji Photo that is known as Fuji-Xerox. Xerox then licensed its xerographic know-how to Fuji-Xerox. In return, Fuji-Xerox paid Xerox a royalty fee equal to 5 percent of the net sales revenue that Fuji-Xerox earned from the sales of photocopiers based on Xerox's patented know-how. In the Fuji-Xerox case, the license was originally granted for 10 years, and it has been renegotiated and extended several times since. The licensing agreement between Xerox and Fuji-Xerox also limited Fuji-Xerox's direct sales to the Asian Pacific region (although Fuji-Xerox does supply Xerox with photocopiers that are sold in North America under the Xerox label).10

In the typical international licensing deal, the licensee puts up most of the capital necessary to get the overseas operation going. Thus,a primary advantage of licensing is that
* The firm does not have to bear the development costs and risks associated with opening a foreign market.
** Licensing is very attractive for firms lacking the capital to develop operations overseas.
* In addition, licensing can be attractive when a firm is unwilling to commit substantial financial resources to an unfamiliar or politically volatile foreign market.
* Licensing is also often used when a firm wishes to participate in a foreign market but is prohibited from doing so by barriers to investment.
** This was one of the original reasons for the formation of the Fuji-Xerox joint venture (see the Management Focus for details). Xerox wanted to participate in the Japanese market but was prohibited from setting up a wholly owned subsidiary by the Japanese government. So Xerox set up the joint venture with Fuji and then licensed its know-how to the joint venture.
* Finally, licensing is frequently used when a firm possesses some intangible property that might have business applications, but it does not want to develop those applications itself
** For example, Bell Laboratories at AT&T originally invented the transistor circuit in the 1950s, but AT&T decided it did not want to produce transistors, so it licensed the technology to a number of other companies, such as Texas Instruments. Similarly, Coca-Cola has licensed its famous trademark to clothing manufacturers, who have incorporated the design into their clothing (e.g., Coca-Cola T-shirts).

Licensing has three serious drawbacks:
* First, it does not give a firm the tight control over manufacturing, marketing, and strategy that is required for realizing experience curve and location economies.
** Licensing typically involves each licensee setting up its own production operations. This severely limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. When these economies are important, licensing may not be the best way to expand overseas.
*  Second, competing in a global market may require a firm to coordinate strategic moves across countries by using profits earned in one country to support competitive attacks in another
** By its very nature, licensing limits a firm's ability to do this. A licensee is unlikely to allow a multinational firm to use its profits (beyond those due in the form of royalty payments) to support a different licensee operating in another country.
* The  third problem with licensing is the risk associated with licensing technological know-how to foreign companies.
** Technological know-how constitutes the basis of many multinational firms' competitive advantage. Most firms wish to maintain control over how their know-how is used, and a firm can quickly lose control over its technology by licensing it. Many firms have made the mistake of thinking they could maintain control over their know-how within the framework of a licensing agreement. RCA Corporation, for example, once licensed its color TV technology to Japanese firms including Matsushita and Sony. The Japanese firms quickly assimilated the technology, improved on it, and used it to enter the US market. Now the Japanese firms have a bigger share of the US market than the RCA brand. Similar concerns surfaced over the 1989 decision by Congress to allow Japanese firms to produce the advanced FSX fighter plane under license from McDonnell Douglas. Critics of the decision fear the Japanese will use the FSX technology to support the development of a commercial airline industry that will compete with Boeing in the global marketplace.

There are ways of reducing the risks of this occurring:
* One way is by entering into a cross-licensing agreement with a foreign firm.
** Under a cross-licensing agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. Such agreements are believed to reduce the risks associated with licensing technological know-how, since the licensee realizes that if it violates the licensing contract (by using the knowledge obtained to compete directly with the licensor), the licensor can do the same to it. Cross-licensing agreements enable firms to hold each other hostage, which reduces the probability that they will behave opportunistically toward each other.11 Such cross-licensing agreements are increasingly common in high-technology industries. For example, the US biotechnology firm Amgen has licensed one of its key drugs, Nuprogene, to Kirin, the Japanese pharmaceutical company. The license gives Kirin the right to sell Nuprogene in Japan. In return, Amgen receives a royalty payment, and in addition, through a licensing agreement, it gained the right to sell some of Kirin's products in the United States.
*  Another way of reducing the risk associated with licensing is to follow the Fuji-Xerox model and link an agreement to license know-how with the formation of a joint venture in which the licensor and licensee take an important equity stake.
** Such an approach aligns the interests of licensor and licensee, since both have a stake in ensuring that the venture is successful. Thus, the risk that Fuji Photo might appropriate Xerox's technological know-how, and then compete directly against Xerox in the global photocopier market, was reduced by the establishment of a joint venture in which both Xerox and Fuji Photo had an important stake.
The idea in brief:
* Most entrepreneurs want to make money AND run the show. Research reveals that it is difficult to do both.
* To attract investors, you need to relinquish control
* To stay in charge, you will have less financial means

If you want to get rich:
* You need broader skills such as creating formal processes and specialized roles
* Investors dole out money in stages, they will add their own people in each stage and you will get less control
* If you are more motivate by wealth than power:
** Recognize when the top job has stretched beyond your abilities and hire a new CEO yourself
** Be open to pursuing ideas that require external financing.

If you want to run the company:
* Restrict on a business where you already have skills and contacts
* Focus on a business in which you do not need large amounts of capital
* Wait until later in your career until you have developed more skills and accumulated some savings for bootstrapping.
The basic assumption of Value Based Management is look only at [[Operational Cash Flow]] for evaluating the value generation capabilities of a firm.

|Value Based Management|Traditional P&L|h
|[[NOPAT]] stands for Net Operating Profits After Tax|Sales Revenue - Full Costs of Sales (excl interest)|

This was the picture on the board during the [[M9-Accounting]] block:
<img src=/static/files/MBI/Module%209/DSC08469a.JPG width=500>
Making the Business Case for Growth Financing (or everything you always wanted to know about business plans but never cared to ask…)
How do you make a powerful case for funding a new project or business? What are your objectives in preparing a business plan? What makes it impactful? How do you structure repeated rounds of financing?
Read the case (it is short) and get inspired (or not) by it! If you have a special interest in the topic, you may also want to read the article [[M3-S3 - Reading - Sahlman, W.A. 1997 How to write a great business plan]]
Preparation Questions:
1. Evaluate the Papyrus Laser opportunity: would you invest in it?
2. Evaluate his business plan as a whole: what are its strengths and weaknesses?
3. What are the key success factors for a catalogue marketer of specialized stationery and related products in Europe? What are the critical risks faced?
4. Analyze the financing of the plan: Does it appear appropriate to you? i.e. would you invest in this deal under these conditions? If no, what would you want to see in the business/financing plan to consider investing in it?

[[M10-S4 - Case - Papyrus Laser]]
* What is the purpose of the firm?
** How does the firm define its purpose?
** What are the areas of business that fit this definition?
* What are the overall goals  and strategy of the firm?
* Where does innovation fit in the business plan and strategic plan?
** Is it in terms of new products, services or business models?
** Is it in terms of new markets or end-user activities?
** Is it in terms of new technologies that the firm needs to fulfill its purpose?
** Any areas the firm wishes to exclude or or avoid?
* What are the goals and objectives for innovation?
** One compelling overall qualitative goal for innovation?
** Supportig general and specific qualitative goals?
** Financial objectives, including:
*** the gap innovation must fill to meet firm growth objectives?
*** the desired risk / return profile on projects
** Non-financial, quantitative objectives (competitive position, market penetration)
* What does the firm seek to leverage or develop?
** Distinctive competencies or competitive advantages
** Fit with the firm's competitive strategy
** Fit with the firm's values
Assets in place are cash producing assets that can be evaluated with [[DCF]] methodologies.
# ''Delay'' on the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised. The customer’s time may seem free to the provider, but when she takes custom elsewhere the pain begins.
# ''Duplication'' Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organisation.
# ''Unnecessary Movement'' Queuing several times, lack of one-stop, poor ergonomics in the service encounter.
# ''Unclear communication'', and the wastes of seeking clarification, confusion over product or service use, wasting time finding a location that may result in misuse or duplication.
# ''Incorrect inventory''. Being out-of-stock, unable to get exactly what was required, substitute products or services.
# An ''opportunity lost'' to retain or win customers, a failure to establish rapport, ignoring customers, unfriendliness, and rudeness.
# ''Errors in the service transaction'', product defects in the product-service bundle, lost or damaged goods.
What Does Equity Financing Mean?
The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation.

Also known as "share capital".
The concept of value chain deconstruction is that traditionally integrated value chains get unbundled and are reconfigured due to:
* Separation of the economics or things (physical goods) and the economics of information (digital goods)
** The difference between physical goods and digital goods is that with physical goods ownership can be really transferred. With digital goods the information can be replicated many times at (almost zero) costs.
** In the past these different economics where combined in one business model which lead to compromises.
* The blow-up of the trade-off between richness and reach.
Overal the deconstruction of value leads to a development called the [[De-averaging of competitive advantage]]
Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]

The benefits of customer and agile development and minimum features set are continuous customer feedback, rapid iteration and little wasted code. But over time if developers aren’t careful, code written to find early customers can become unwieldy, difficult to maintain and incapable of scaling. Ironically it becomes the antithesis of agile. And the magnitude of the problem increases exponentially with the success of the company. The logical solution? “Re-architect and re-write” the product.

For a company in a rapidly changing market, that’s usually the beginning of the end
*Step 1
***Monsantos brandname for the chemical aspartame
***70% margin
***Patent from 1987 - 1992
*Step 2
**Challenger: Holland Sweetener Company
**Building an aspartame plant in 1985
**Anticipated patent expiration
*Step 3
**Monsanto's reponse
***Deep price cuts
***Contractual relations with customers
*Step 4
**HSC goes to court and force access to the customers
**Word war: "We are going to extend this fight  to the US"
*Step 6
**Monsanto's position before and after competition
****No alterantive to Nutrasweet
****Nutrasweet advantage greatly reduced
****What left was brand value and cost advantage
*Step 5
**Coke and Pepsi signed new long term contracts with Monsanto
**There seemed to be an opportunity for  competition: why blow it?
***Don't want to create perception that it is fooling around with the recipe
***Monsanto already had gone through the learning curve for making aspertame and had a cost advantage
***The just where after a 'price advantage'
*Step 6
**Consequence for HSC:
***There was value for Coke and Pepsi
***HSC could have demanded compensation for creating the competition
***Once compensate it was more difficult for them to make money
***Too quick to become a player
***Should have captured what Coke and Pepsi could do for them upfront
*Step 7
**Monsanto position
***Cost advantage and brand awareness was a great asset
*Step 8
**Coke and Pepsi position
***Reduced dependency on single player
***Savings of $200 M
Session audio:

<<AudioFragment /static/files/MBI/Module%205/M5-S1%20-%20Experience%20chain.mp3>>

Customer experience chain:
# ''Be'' the customer
## Understand the experience
# ''Map'' the customer experience
# ''Identify'' "hassles"
# ''Focus'' on main hassles
# ''Imagine'' a new value proposition

Example of a process that could work:
<<tiddler [[Ideo]]>>

# Identify goals to [[Trade-on strategy|M5-Strategy-S1 - Trade-on strategies]]
# Inititial reaction as customers
# Go to the field (antropologists)
# Share - Visual Impact
# Deep dive - Wild ideas & Brainstorm
## ''Need to prevent the downwards spiral''
# Voting system - Everyone's vote counts
# Build prototypes for each need area
## Make one for navigation
## Make one for safety
# Learn from the prototypes and synergies
# Built prototype
# Present the prototype and present it
# Gain feedback from the field
## Critical to ''keep an open mind to the feedback!''
In the investigation stage for different sales stages you will focus on understanding the customer ''needs''

!Practical tips

Question types:
Asking questions about background facts on the customers situation|Base on this information
Liabilities are the financial obligations a company owes to outside parties. Like [[Assets]], they can be both current and long-term.

[[Current Liabilities]] are the company’s liabilities which will come due, or must be paid, within one year. This is includes both shorter term borrowings, such as accounts payables, along with the current portion of longer term borrowing, such as the latest interest payment on a 10-year loan:
# [[Accounts Payable]]
# Provisions for warranties or court decisions
# Financial liabilities (excluding provisions and accounts payable), such as promissory notes and corporate bonds
# Liabilities and assets for current tax
# Deferred tax liabilities and deferred tax assets
# Unearned revenue for services paid for by customers but not yet provided

[[Long-term Liabilities]] are debts and other non-debt financial obligations, which are due after a period of at least one year from the date of the balance sheet.
# Loans or [[Notes Payable]]
# Issued Debt Securities, e.g. Notes/Bonds Payable
# Deferred Tax Liabilities
# Provisions, e.g. Pension Obligations
#Other Non-Current Liabilities, e.g. Lease Obligations 
Re-coupling of a technology for new market applications. See also: [[Technology de-linking]]

<img src = "/static/files/MBI/Module%206/TechnologicalCompetenceLeveraging.PNG" width=400>

<img src = "/static/files/MBI/Module%206/TechnologyRelinking.PNG" width=300>

The search for market opportunities and applications requires additional capabilities. Market applications are hard to identify. These are typically 'exploratory search' problem. ''The role of prior knowledge is significant in identifying these opportunities!''

Part of: [[M6-S5 - Reading - Danneels - The process of technological competence leveraging]]
Part of [[M5-S5 - Reading - Summary Afuah & Tucci - Chapter 5 - Dynamics of Internet Business Models]]

A technological change usually results in products or services that:
# render existing products and services noncompetitive
# enhances them
# allows the old and new to coexist

If the change results in products that render existing products noncompetitive, it is said to be ''radical in the economic sense''
If a technological change results in enhancing existing products or allows them to remain competitive, it is said to be an ''incremental innovation in the economic sense''

I decided to write this because I see two basic camps forming when it comes to the idea of creating a Minimum Viable Product (AKA MVP) for your product or service. Bear with me as I proceed to make some broad generalizations that nearly everyone will take some sort of issue with.
Read [[this|/static/files/MBI/Module%209/mbi02.9_003.pdf]] article about customer profitability analysis.
|''Requires''|excanvas jit-yc|
See to use
* fieldType
.ttmm {
	overflow: hidden;
	position: relative;
	height: 200px;
.ttmm .node {
	cursor: pointer;
	font-size: 0.7em;

.nodeMissing {
	color: #ccc;

.nodeVisited {
	color: Purple;

.depth0 {
	border: solid 1px black;
* html labels have id of the node. This is really bad and should be fixed in the jit core.

var tiddler = {title: "TiddlyTagMindMap2Plugin"};
var name = "StyleSheetTiddlyTagMindMap";
config.shadowTiddlers[name] = store.getTiddlerText(tiddler.title +
store.addNotification(name, refreshStyles);
config.shadowTiddlers.TiddlyTagMindMapNodeTemplate = "<<view title text>>";
var macro = config.macros.TiddlyTagMindMap = {
	rootNode: "TiddlyTagMindMapRootNode",
	defaultOptions: {
		id: null,
		rootNode: null,
		field: [ "tags" ], // dictates the parent node
		fieldsAreList: true,
		width: null,
		height: null,
		nodeType: "square",
		nodeColor: '#ddeeff',
		nodeSize: 4,
		centerOn: false,
		edgeColor: '#C17878',
		directed: false,
		edgeType: null,
		edgeWidth: 1.5,
		template: "TiddlyTagMindMapNodeTemplate",
		filter: false,
		maxNodeNameLength: false,
		labelDepth: false,
		exclude: "excludeLists",
		vizType: "radial",
		animate: true, //*
		ignoreLoneNodes: true, //*
		caseSensitive: false, //*
		hideRoot: true,
		valuePrefix: false
	init: function() {
		macro._active = {};
		var _displayTiddler = Story.prototype.displayTiddler;
		Story.prototype.displayTiddler = function(srcElement,tiddler,template,animate,unused,customFields,toggle,animationSrc) {
			var el = _displayTiddler.apply(this, arguments);
			var id = typeof(tiddler) == 'string' ? tiddler : tiddler.title;
			return el;
		var _saveTiddler = TiddlyWiki.prototype.saveTiddler;
		TiddlyWiki.prototype.saveTiddler = function(title, newTitle, newBody, modifier,
				modified, tags, fields, clearChangeCount, created, creator) {
			var tid = _saveTiddler.apply(this, arguments);
			return tid;
		var _removeTiddler = TiddlyWiki.prototype.removeTiddler;
		TiddlyWiki.prototype.removeTiddler = function(title) {
			var tid = store.getTiddler(title);
			var flag = _removeTiddler.apply(this, arguments);
			return flag;
	handler: function(place, macroName, params, wikifier, paramString, tiddler) {
		var options = macro.getOptions(place, paramString);
		var data = macro.getData(options);
		var id = || "ttmm2_%0".format([Math.random()]);
		if(macro._active[id]) {
		var container = $("<div />").addClass("ttmm").attr("id", id).
			css({width: options.width, height: options.height}).appendTo(place)[0];
		$(container).dblclick(function(ev) {
		macro.renderGraph(container, data, options);
	getNodeLabelId: function(containerId,id) {
		return "node-%0-%1".format([containerId, id])
	updateAllGraphs: function(changed) {
			for(var i in macro._active) {
				var el = document.getElementById(i);
				if(el) {
					var cache = macro._active[i];
					var deleted = document.getElementById(macro.getNodeLabelId(i, changed));
					if(cache) {
						var options = cache.options;
						var viz = cache.viz;
						var data = macro.getData(options);
						macro._refresh(viz, data, options);
				} else {
					macro._active[i] = false;
	centerAll: function(id) {
		for(var i in macro._active) {
			var el = document.getElementById(i);
			if(el) {
				var cache = macro._active[i];
				if(cache) {
					var viz = cache.viz;
					if(viz.graph.hasNode(id)) {
			} else {
				macro._active[i] = false;
	renderGraph: function(container, data, options) {
		if(options.vizType == "hypertree") {
			macro._renderHypertree(container, data, options);
		} else {
			macro._renderRGraph(container, data, options);
	_getViz: function(type, container, options) {
		var containerId = $(container).attr("id");
		var viz = new $jit[type]({ 
			injectInto: containerId,
			Navigation: {
				enable: true,
				panning: true,
				zooming: 10
			Node: {
				color: options.nodeColor,
				type: options.nodeType,
				overridable: true,
				width: options.nodeSize,
				dim: options.nodeSize,
				height: options.nodeSize
			Edge: {
				color: options.edgeColor,
				lineWidth: options.edgeWidth,
				type: options.edgeType,
				overridable: true,
				dim: 15
			onBeforeCompute: function(node){},
			onAfterCompute: function(){},
			onCreateLabel: function(domElement, node){
				var el = $(domElement).empty();
				if(!options.maxNodeNameLength) {
					var ctx = store.tiddlerExists( ? store.getTiddler( : new Tiddler(;
					var template = store.getTiddlerText(options.template);
					template = template ? template : store.getTiddlerText("TiddlyTagMindMapNodeTemplate");
					wikify(template, domElement, null, ctx);
				} else {
					var text = el.text();
					var maxLength = options.maxNodeNameLength;
					if(maxLength) {
						if(text.length > maxLength) {
							var diff = (text.length - maxLength);
							text = "%0...".format([text.slice(0, text.length - diff)]);
				el.attr("id", macro.getNodeLabelId(containerId,;
				var rgraph = this;
				var wasClick = false;
					wasClick = true;
					window.setTimeout(function() {
						if(wasClick) {
							var cache = macro._active[containerId];
							if(cache && cache.visitedNodes) {
								cache.visitedNodes[] = true;
							options.centerOn =;
					}, 300);
				$(domElement).dblclick(function(ev) {
					wasClick = false;
					return false;
			onPlaceLabel: function(domElement, node){
				var el = $(domElement);
				var depth = node._depth;
				if(options.labelDepth && depth > options.labelDepth) {
				var existingDepth = el.attr("node-depth");
				if(existingDepth) {
				el.attr("node-depth", depth);
				if(options.hideRoot && {
				if( {
					if(options.missingColor) {
						el.css({ color: "#ccc" });
				var cache = macro._active[containerId];
				if(cache && cache.visitedNodes && cache.visitedNodes[]) {
		return viz;
	_refresh: function(viz, data, options) {
		viz.labels = false; // hack
    //compute positions and plot.
    try {
		} catch(e) {
		if(options.centerOn) {
	_patch: function(viz) {
		// customisations
		var _plotLine = viz.constructor.Plot.prototype.plotLine;
		var _plotNode = viz.constructor.Plot.prototype.plotNode;
		viz.constructor.Plot.prototype.plotLine = function(adj, canvas, animating) {
			if( != macro.rootNode && != macro.rootNode) {
				_plotLine.apply(this, arguments);
		viz.constructor.Plot.prototype.plotNode = function(node, canvas, animating) {
			if( != macro.rootNode) {
				_plotNode.apply(this, arguments);
	_renderHypertree: function(container, data, options) {
		var ht = macro._getViz("Hypertree", container, options);
		var id = $(container).attr("id");
		macro._active[id] = {
			data: data,
			viz: ht,
			options: options,
			visitedNodes: {}
		macro._refresh(ht, data, options);
	_renderRGraph: function(container, data, options) {
		var rgraph = macro._getViz("RGraph", container, options);
		//load JSON data
		var id = $(container).attr("id");
		macro._active[id] = {
			data: data,
			viz: rgraph,
			options: options,
			visitedNodes: {}
		macro._refresh(rgraph, data, options);
	refresh: function(container) {
		var id = $(container).attr("id");
		var cache = macro._active[id];
		if(cache) {
			var data =;
			var options = cache.options;
			var rgraph = cache.viz;
	getData: function(options) {
		var root = options.rootNode || macro.rootNode;
		options = options ? options : macro.defaultOptions;
		options._tiddlers = options.filter ? store.filterTiddlers(options.filter) : store.getTiddlers(null, options.exclude);
		return macro._createNode(root, options);
	getOptions: function(container, paramString) {
		var listOptions = ["field"]; // will be saved as lists
		var numberOptions = ["labelDepth"];
		var args = paramString.parseParams("name", null, true, false, true)[0];
		var options = {};
		merge(options, macro.defaultOptions);
		for(var id in args) {
			if(true) {
				var p = args[id];
				if(listOptions.contains(id)) {
					options[id] = p;
				} else if(numberOptions.contains(id)){
					options[id] = parseFloat(p[0]);
				} else {
					options[id] = p[0];
		options.fieldsAreList = options.fieldType && options.fieldType == "string" ? false : true; 
		options.width = options.width ? parseInt(options.width) : $(container).width();
		options.height = options.height ? parseInt(options.height) : $(container).height();
		options.edgeType = options.directed ? "arrow" : options.edgeType;
		options.hideRoot = options.hideRoot && options.hideRoot == "no" ? false : true;
		// note hyperline doesn't work for RGraph
		var defaultEdgeType = options.vizType == "hypertree" ? "hyperline" : "line";
		if(!options.edgeType) {
			options.edgeType = defaultEdgeType;
		} else {
			options.edgeType = options.edgeType == "hyperline" && options.vizType != "hypertree" ? "line" : options.edgeType;
		return options;
	lookupFieldValue: function(tiddler, options) {
		var allValues = [];
		for(var i = 0; i < options.field.length; i++) {
			var fieldName = options.field[i];
			var values = tiddler[fieldName] ? tiddler[fieldName] : tiddler.fields[fieldName];
			if(options.fieldsAreLists) {
				values = typeof(values) == "string" ? values.readBracketedList() : values;
			} else {
				values = typeof(values) == "string" ? [ values ] : values;
			if(values) {
				for(var j = 0; j < values.length; j++) {
		return allValues;
	lookupTiddlers: function(tiddlers, value, options) {
		var matches = [];
		for(var i = 0; i < tiddlers.length; i++) {
			var tiddler = tiddlers[i];
			var values = macro.lookupFieldValue(tiddler, options);
			if(values && values.indexOf(value) > -1) {
		return matches;
	_getChildNodes: function(title, options) {
		var children = [];
		var tiddlers = options._tiddlers;
		if(title == macro.rootNode) { // get all tiddlers with no tags
			var tags = {};
			for(var i = 0; i < tiddlers.length; i++) {
				var tiddler = tiddlers[i];
				var values = macro.lookupFieldValue(tiddler, options);
				if(values.length === 0) {
					var node = macro._createNode(tiddler.title, options); = true;
					if(node) {
				} else {
					for(var j = 0; j < values.length; j++) {
						var value = values[j];
						var tiddler = store.getTiddler(value);
						if(!tiddler) {
							var node = macro._createNode(value, options);
							if(node) { = true;
		} else {
			var lookup = options.valuePrefix ? "%0%1".format([options.valuePrefix, title]) : title;
			var matches = macro.lookupTiddlers(tiddlers, lookup, options);
			if(matches) {
				// TODO: support strings to array
				for(var i = 0; i < matches.length; i++) {
					var node = macro._createNode(matches[i].title, options);
					if(node) {
		return children;
	_createNode: function(title, options) {
		var children = macro._getChildNodes(title, options);
		var node = {
			id: title,
			name: title,
			data: {
				missing: store.tiddlerExists(title) ? false : true,
				visited: false,
				root: title == macro.rootNode,
				weight: children.length
			children: children
		return node;
In [[The Personal MBA]] the following standard forms of Value are mentioned:
# [[Product]]
# [[Service]]
# [[Shared Resource]]
# [[Subscription]]
# [[Resale]]
# [[Lease]]
# [[Agency]]
# [[Audience Aggregation]]
# [[Loan]]
# [[Option]]
# [[Insurance]]
# [[Capital]]
<<formTiddler [[NewBookTemplate]]>>

<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>
<data>{"Author":"Jefrey Liker"}</data>
config.macros.YouTubeFragment = {
  handler: function (place, macroName, params, wikifier, paramString, tiddler)
     var movie;

     if (params[0] != null)
           movie = params[0];

     resultString = '<html>';
     resultString += '<object width="425" height="344">';
     resultString += '<param name="movie" value="';
     resultString += movie;
     resultString += '&hl=en&fs=1">';

     resultString += '</param><param name="allowFullScreen" value="true">';
     resultString += '</param><param name="allowscriptaccess" value="always">';
     resultString += '</param><embed src=';
     resultString += '';

     resultString += movie;
     resultString += '&hl=en&fs=1" ';
     resultString += 'type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344">';
     resultString += ' </embed></object> ';
     resultString += '</html>';

Accounting myopia (literally: myopia ("bijziendheid") describes a problem due to the fact that some types of investments that benefit the company from an economic perspective, certainly for longer periods of future value generation, are not activated properly. Think of investing in the brand name and other, often intangible, values​​. These investments are fully and immediately charged to the accounting income for the period charged. The manager is thus tempted to postpone this type of investment.

* [[Economic Profit|The economic concept of profit]] is the ultimate measure of value creation but...
* [[Accounting Profit|The accounting concept of profit]] is a [[lagging|Lagging and leading indicators]]@mbi indicator
* What about stock performance as a proxy for economic profit?

!Pro's of accounting measures:
* Relative precise and objective
* Goal congruent
* Controllable
* Understandable
* Inexpensive
!Con's of accounting measures:
* The correlation between [[ECOP]] and [[ACOP]] exists but is rather weak
* Valuation problems
* Cost of working capital ([[WACC]])
* Hindsight oriented
* Use [[ECOP]]
* Split between short term performance an longer term investment control
* Combine financial results with [[Pre-action review|Action Controls]]@mbi
* Improve [[ACOP]]
** Better matching
** More realistic realization principle
** Cost of equity capital
** Problem [[GAAP]]]
* Longer term incentive plans
** Research shows ambiguous results
*** Very expensive, managers are only willing to accept the contract when the reward at the end is very high
*** Apparently higher risk for the manager
* Set of value drivers:
** Pros and cons off the balanced scorecard
* Reduce pressure for short term profit
* Relative performance measurement
* Subjective performance measurement
!Object of play
Te goal of this game is to generate ideas with silent sticky note writing.
!Number of players
!Duration of play
10 minutes to 1 hour
!How to play
There are many ways to work with ideas using sticky notes. Generating ideas is the most basic play, and it starts with a question that your group will be brainstorming answers to. For example: “What are possible uses for Product X?” Write the question or topic on a whiteboard. Ask the group to brainstorm answers  individually, silently writing their ideas on separate sticky notes. Te silence lets people think without interruption, and putting items on separate notes ensures that they can later be shufed and sorted as distinct thoughts. Afer a set amount of time, ask the members of the group to stick their notes to the whiteboard and quickly present them. 

If anyone’s items inspire others to write more, they can stick those up on the wall too, after everyone has presented. 
Generating ideas is an opening activity, and a frst step. From here you can create an affnity map or a bottom-up tree, or further organize and prioritize the thoughts.

//The Post-Up game is based on the exercises in Rapid Problem-Solving with Post-it® Notes by David Straker.//

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]
Full article: [[Afuah & Tucci, Chapter 10, Internet Business Models and Strategies|/static/files/MBI/Module%205/afuah_tucci_ch10_final.pdf]].

A firm’s profitability rests as much on its business model as on its environment. Two types of environments can impact firm performance.
# First is the ''industry'' or ''competitive environment''
## the suppliers, customers, complementors, rivals, substitutes, and potential new entrants with which a firm must interact or take into consideration in making its strategic decisions.
# Then there is the ''macro environment''
## The overarching environment of regional and national governments and institutions in which firms in an industry must operate.

[[The competitive environment|M5-Strategy-S3 - The competitive environment]]
[[Industry characteristics and Critical Success Drivers|M5-Strategy-S3 - Industry characteristics and Critical Success Drivers]]
[[Impact of the internet on the industry environment|M5-Strategy-S3 - Impact of the internet on the industry environment]]
[[The internet's multiple forces|M5-Strategy-S3 -The internet's multiple forces]]

''An Important Point about Industry Analysis''
An Industry Analysus provides us with critical information. It tells us the attractiveness of an industry: Thus, a five forces analysis allows a firm to ask itself the following questions:
# What can we do to moderate rivalry in this industry?
# What can we do to reduce the viability of substitutes?
# How can we create and maintain barriers to entry?
# What can we do to increase our power over buyers and suppliers?

The sole focus on the competitive relationship between a firm and its [[co-opetitors|M5-Strategy-S3 - Co-opetitors]] —the rivals, suppliers, customers, complementors, and potential new entrants with which a firm must compete and cooperate—does not do justice to the critical role that these co-opetitors can play in helping firms exploit the Internet:
# First, ''the value that customers perceive is very difficult to break down into the contributions from firms, suppliers, customers, and complementors.''
## Look at a tantalizing game played over the Internet. Is it fascinating because of the ISP’s portal site, the speed with which signals are delivered over the Last Mile to the house, the backbone provider, or the way the game is designed?
## The point is that it takes all of these players to deliver the right value to customers.
## Thus, an industry analysis should also include an analysis of the industries of major suppliers, customers, and complementors.
### It should consider that customers are there not only to exercise any bargaining power they may have, but also that they may be interested in cooperating with firms.

[[The macro environment|M5-Strategy-S3 - The macro environment]]
The following list includes very common and general benefits people are looking for:
* Make more money
* Spend less money
* Save more money
* Have more money
* Work less / Fewer hours
* Save time
* Have more time off
* Look good to others
* Be attractive
* Be part of a winning team
* Work with folks i like
* Make a contribution
* Make a difference
* Be heard or valued
* Get recognition / be a hero
Personal development:
* Learn something new
* Use new technology
* Unlock full potential
* Do competent / quality work
* Reduce risk
* Avoid pain
* Minimize fear
* Be safe
* Be secure
* Have fewer hassles
* Be left alone
* Be more productive
* Be vindicated
* Feel hard
* Play more
* Have fun
* Serve god / Higher purpose
* Look good to myself
* Be autonomous
Customer benefits can be divided in threshold features and critical success factors. Both create consumer benefits the only the latter help a firm differentiate itself from its competitors.

* ''Threshold features''
** These are the minimum requirements a firm must fulfill in any product or service. If a firm cannot meet these requirements, then it will be excluded from the market.
* ''Critical success factors''
** The are the benefits that are crucial for a customer's decision to buy any given product.
Both create consumer benefits the only the latter help a firm differentiate itself from its competitors:
<img src="/static/files/MBI/Module%208/impactcustomerbenefit.PNG" width=400"
In [[The Personal MBA]] //capital// is the purchase of an ownership stake in a business. If you have resources to allocate, you can provide capital to business owners to help them expand their business. It is one of the [[Twelve standard Forms of Value]] (Form of Value #11 of 12). 
!Key Points:
* Capital is the purchase of an ownership stake in a business. If you have resources to allocate, you can provide capital to business owners to help them expand their business.
* To provide capital you must:
** Have available resources to invest.
** Find a promising business in which you’d like to invest.
** Estimate the business’ worth, its future growth, and the possibility of negative scenarios that would cause the loss of your capital.
** Negotiate the amount of ownership to receive in exchange for the capital.
* By taking on investors, business owners can gather enough funds to expand quickly.
* By acquiring a certain percentage of the business, investors benefit from its activities without active involvement. Investors hope to receive a higher rate of return than other methods, like leaving the money in the bank.
!Questions for Consideration:
* Does delivering value via offering insurance make sense for your business idea?
* If so, what do you need to plan for to make it successful?

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:
* Brand name
* Functionality
* Styling
* Quality
* Safety
* Packaging
* Repairs and Support
* Warranty
* Accessories and services

Part of [[Marketing mix (Four P's of marketing)]]
<<YouTubeFragment VmbSpTJXozk>>
The affect heuristic is a heuristic, a mental shortcut that allows people to make decisions and solve problems quickly and efficiently, in which current emotion—fear, pleasure, surprise, etc.—influences decisions.

If their feelings towards an activity are positive, then people are more likely to judge the risks as low and the benefits high. On the other hand, if their feelings towards an activity are negative, they are more likely to perceive the risks as high and benefits low.
!Object of play
On any given day, we prioritize the problems that get our attention. Problems that are vague or misunderstood have a harder time passing our internal tests of what matters and, as a result, go unaddressed and unsolved. Often, meetings that address problem 
solving skip this critical step: defning the problem in a way that is not only clear but also compelling enough to make people care about solving it. Running this short drawing exercise at the beginning of a meeting will help get the laptops closed and the participants engaged with their purpose.
!Number of players
Works best with small groups of 6–10 participants
!Duration of play
30-45 minutes
!How to play
Each participant should have a large index card or letter-sized piece of paper. Afer introducing the topic of the meeting, ask the participants to think about the problem they are here to solve. As they do so, ask them to write a list of items helping to explain the 
problem. For example, they may think about a “day in the life” of the problem or an item that represents the problem as a whole.
<<image /static/files/Softskills/Gamestorming/DrawTheProblem.png width:500>>
Afer a few minutes of this thinking and refection, ask the participants to fip over their paper and draw a picture of the problem, as they would explain it to a peer. They may draw a simple diagram or something more metaphorical; there are no prizes or punishments for good or bad artistry. Te drawing should simply assist in explaining the problem.
<<image /static/files/Softskills/Gamestorming/DrawTheProblem2.png width:500>>
When everyone is fnished, have the participants post their drawings on the wall and explain them to each other. While the group shares, note any common elements. Afer the exercise, the group should refect on the similarities and diferences, and work toward a shared understanding of what the problem looks like to each other.
Tis warm-up does not result in a problem defnition that will satisfy an engineer; rather, it engages participants in defning the challenge in a simplifed form. It is a frst step in bringing a group together under a common purpose, elevating the problem above the noise to become something they care to solve.

//The Draw the Problem game is credited to James Macanufo.//

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]
An Inventor creates and then sells [[Intangible assets]] such as patents and copyrights. Firms using this business model exclusively are relatively rare, but some technology firms generate part of their revenues this way. Example:
* Lucent’s Bell Labs (see

Firms that license the use of their [[Intangible assets]] while still retaining ownership are not classified as Inventors; they are [[Intellectual Landlord]]s (see below).
<<formTiddler [[NewBookTemplate]]>>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

See the space [[games|]]<data>{"Author":"Dave Gray, Sunni B.","Title":"Gamestorming - A Plajavascript:;ybook for innovators, Rulebreakers and Changemakers","ReadingCompleted":true,"Rating":"***"}</data>

If you’ve heard the phrase “product/market fit”, you probably also know that it is often lauded as the promised land for startups.  Unfortunately, Marc Andreessen himself makes it very plain that his blog post detailing the realities of product/market fit raises more questions than it provides answers.  

Since that post by Marc, we’ve seen hundreds if not thousands of descriptions of product/market fit and even a test to figure out if you’re there (although I think this is the wrong focus insofar as you may have happy customers that would be sad if you died, but maybe they either can’t or won’t pay you to avoid using alternatives).

So I realized something this week, as Stormpulse has been undergoing major transitions: beware of summarizing the goal of your startup as searching for and finding product/market fit.  

Because I think we’ve allowed a very important word to become lost in translation.  The word was implied (though never mentioned) in Marc’s post (and I mentioned it a few paragraphs up and yes, in the title of this post), but it’s rarely, if ever, discussed by founders and VC’s.  

That word is “profitable”.  

(Interlude: I can’t say enough how much one book, recommended by Steve Blank, has changed/molded/inspired my thinking, so I’ll say it again: buy a copy of Delivering Profitable Value by Michael J Lanning and write true, formal value propositions in keeping with his Southwest Airlines example.  If you can’t, your startup is dying.) 

Rather than simply shove the word “profitable” into Marc’s phrase, allow me to share what I currently see as the goal:

The goal of any startup is to help the greatest number of people find the deepest resolution to a high-stakes problem.

This sentence is the whole of my wisdom on surviving as a startup after bootstrapping Stormpulse for the last 5 years.  In it, we find a definition of product/market fit that gives the founder options to break his commitment to a particular value proposition (“I’ll give you, Sally and Bob, this product for this price and it will make you happy!”) and deliberately and carefully choose a new one.  

What do I mean?

Let’s do a little role playing.  You can use your own idea or startup.  I’ll use mine.  Imagine you’ve created a hurricane-tracking website.  Great!  Hurricane-tracking appeals to a lot of people and we are confident we can create a solution that gives people deep satisfaction (resolution) to the problem of not knowing where these great masses of swirling death happen to be located right now. 

Question: will this site have customers?  We have a product, and we have a market, right?  

Answer: yes, it will.  But how do we know if the market is any good?  Marc stated that a “great market” is one with “lots of real, potential customers.”  Oh.  Lots of real potential customers.  Oh okay.  You mean, a situation where lots of real, breathing people will pay you money?

Yes, but it’s more than that.  You don’t just want to build a product whereby great masses of people are going to pay you *some* money.  You want a product whereby great masses of people are going to pay you substantial amounts of money—enough money that your startup can grow, preferably quickly.

Oh.  So maybe a market where lots of people are only willing to pay a tiny amount of money isn’t a great market for a startup?  


Can you think of a market like that?  I can.

So if you want people to pay you more money, you need to …

!Raise Prices
The problem most startups encounter immediately is well known as “the penny gap.”  People are massively less willing to use your product if it costs 1 penny than if it’s free.  And that is going to really kill your market size!  Which means you’re never going to get those vanity metrics that are going to get you funded and allow you to … keep giving away product for free?

But this is an insane dilemma, because how often do real businesses with “lots of real, potential customers” actually have trouble charging even 1 penny for their products?  Would you walk away from a restaurant that wanted you to pay a penny for a hamburger?  Would you cancel an order for pizza if the cashier on the other end said the total is going to be a penny?  Of course not!  That’s insane!  And yet most startups seem unable to bring themselves to charge more than the price of a pizza for their product that is *going* to make your life so much better.  

What is going on here?

What’s going on here is that startups are not attacking high-stakes problems.  Even a hamburger joint is higher-stakes for the hungry customer than your new web app.  Why?  Because he knows the hamburger place down the road is also going to charge him >$0.00 for their quarter-pounder, so he doesn’t really have the option of walking away, does he?

So there should be more encouragement for founders to MOVE INTO problem spaces that are high-stakes.  

This will result in two things:

1) Whether you decide to charge money or not, it will get people talking about your product.  People want to share solutions to high-stakes problems with their friends.  

2) You will have the option of charging money if you make people measurably more successful at solving that problem than any existing alternative.  This is the way over the penny gap and into profitability.  

!How can a founder do this?
Consider the alternatives.  If a person doesn’t use my product, what will happen to them?  Will they go hungry?  Will planes crash?  Will supplies fail to arrive?  Will their car fly off a cliff?  Or will they simply live without it (hint: much more likely).

Consider the switching costs.  If a person adopts my product, how much suffering will they have to endure to unlearn their existing solution and come into my world?

Since I want you to understand that high-stakes doesn’t mean “don’t do something social” (at least, it didn’t mean that in 2004), take Facebook as an example. solved a high-stakes problem for college kids because an amazing alternative just wasn’t there.  Could Facebook now charge for their service?  Possibly, but probably not much more than they already charge (you know, taxing you with advertisements and privacy concerns?).  The only way they could charge a true subscription price is if the alternatives were non-existent.  And I think we know the minute that Facebook started charging the free alternatives would sprout up like crazy.

Shift your startup from consumer-focused to business-focused.  Because businesses aggregate problem-seekers (customers) and exist for the purpose of scale, all numbers, from the amount spent on chairs to the amount spent on pencils to the amount spent managing finances, get bigger.  Which means if you serve them, you can raise prices away from that $0.00 price you’re offering now.  Nothing is free in business.  Even free web apps cost the money of training and learning and setup.

Work with macro-trends.  Another way to move into a higher-stakes problem space is to find a trend in the world that is making some problem continually higher-stakes.  Google did this by organizing the world’s information.  Since the amount of information is always growing, the stakes of not being able to search it is always increasing.  I see a similar pattern with Stormpulse, not just in terms of the information challenge, but in terms of civilization taking more and more risks with regards to the speed of their movements and the degree to which environmental hazards like weather can harm their productivity/survival/success.

Caveat needed here: I see a lot of startups presenting solutions to problems that are not at all high-stakes now, but “will be super important by 2023.”  That’s this suggestion taken to a fault.  You are too early and very few people will pay you yet (though some government agency may fund you).  If you can survive with just the super-early-adopting-very-concerned market paying you handsomely, great.  If not, you’ve been warned.

“It’s not you, it’s us.”

If you summarize ‘achieving product/market fit’ as the goal, you may end up achieving a state wherein you have lots of customers but very little profit.  As a result, you have lots of demand, and even lots of potential, linear growth, but you’ve settled for linear and you’ve settled for thin margins and you are stuck.

If that’s the case, start looking at your customers problems from the standpoint of risk, and see if you can find segments of your customers that use your product in a much higher-stakes context than others.  At that point, you can segment those customers into a higher-priced arrangement.  Notice that this does NOT have anything to do with giving them different features or giving them more horsepower.  It simply has to do with recognizing that your product is solving a higher-stakes problem for them than it is for everyone else.  As such, you should be able to charge more.

Once you start charging one segment of your customer base significantly more than the rest, you may also start to see that the amount of support and effort to please those people is also lower.  Maybe you’ll even discover (through focus) that there are lots and lots of these people.  At that point, you may wonder if you should even be serving these two diverse sets of customers.  I can’t answer it for you, but if the answer is ‘no’, you’ve got a lot of fancy footwork (judo) to do to transition between serving both and serving the one.  It may require a breakup speech, refunds, apologies, and hurt feelings.  But the warning of Isaac Hall, co-founder of Syncplicity (and now founder of Recurly), rings very true:

    Our company had too many features and this created confusion amongst our customer base. This in turn led to enough customer support issues that we couldn’t innovate on the product, we were too busy fixing things.

Too many features comes from too many masters.  Don’t let this happen to you.  Find or create users that are willing to pay more, and focus.
Once you have some content then you may choose to determine a tiddler, or set of tiddlers to display each time you load ~TiddlySpace. This is determined by the [[DefaultTiddlers]].
The variance of returns on a portfolio with proportions $\Large x_i$ invested in stock $\Large i$ is:

$\Large \displaystyle \sum_{i=1}^{N} \sum_{j=1}^{N} {x_i}{x_j} \sigma_{ij}$
[[M3-S4 - Reading - Everhart, H.R. The art of bootstrapping]]
[[M3-S4 - Exercise - Cash flow Rigg Instruments]]
[[M3-S4 - Session notes]]
What Does Debt Financing Mean?
When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.
We discussed the book [[Accounting in a Business Context]].

[[M9-S1 - Basic terms and introduction]]
[[M9-S2 - Decision support]]
[[M9-S3 - Session Notes]]
[[M9-S4 - Costing]]
[[M9-S5 - Customer Profitability Analysis]]
[[M9-S6 - Conclusion and wrap up]]

Terms introduced in this block:
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M9")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>
There are different possible strategies to approach an opportunity:

* [[Frontal attack strategy]]
* [[Flank attack strategy]]
* [[Fragmented attack strategy]]
* [[Defend attack strategy]]
* [[Develop attack strategy]]

You can easily choose your strategy with the following flow chart:

<<image /static/files/MBI/Module%2020/flowchartopportunities.jpg width:800>>
(function($) {

var cmd = config.commands.refreshTiddler = {
	text: "refresh",
	locale: {
		refreshing: "Refreshing tiddler..."
	tooltip: "refresh this tiddler to be the one on the server",
	handler: function(ev, src, title) {
		var tiddler = store.getTiddler(title);
		if(!tiddler) {
			tiddler = new Tiddler(title);
			merge(tiddler.fields, config.defaultCustomFields);
		var dirtyStatus = store.isDirty();
		story.loadMissingTiddler(title, {
			"server.workspace": tiddler.fields["server.recipe"]  ? "recipes/" + tiddler.fields["server.recipe"] :
				tiddler.fields["server.workspace"] || "bags/"+tiddler.fields["server.bag"],
			"": tiddler.fields[""],
			"server.type": tiddler.fields["server.type"]
		}, function() {

<<tiddler [[Social proof]]>>
There are 5 primary phases of 5S:
* sorting
* straightening
* systematic cleaning
* standardizing, and 
* sustaining.

Additionally, there are three other phases sometimes included; safety, security, and satisfaction.

!Sorting (Seiri)
Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so forth in the plant and work area. Keep only essential items and eliminate what is not required, prioritizing things per requirements and keeping them in easily-accessible places. Everything else is stored or discarded.
[edit] Straightening or setting in order / stabilize (Seiton)

There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible. Workers should not have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment should be kept close to where it will be used – in other words, straightening the flow path. Seiton is one of the features that distinguishes 5S from "standardized cleanup". This phase can also be referred to as Simplifying[1].

!Sweeping or shining or cleanliness  (Seiso)
Clean the workspace and all equipment, and keep it clean, tidy and organized. At the end of each shift, clean the work area and be sure everything is restored to its place. This makes it easy to know what goes where and ensures that everything is where it belongs. Spills, leaks, and other messes also then become a visual signal for equipment or process steps that need attention. A key point is that maintaining cleanliness should be part of the daily work – not an occasional activity initiated when things get too messy.

!Standardizing (Seiketsu)
Work practices should be consistent and standardized. All work stations for a particular job should be identical. All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station. Everyone should know exactly what his or her responsibilities are for adhering to the first 3 S's.
!Sustaining the discipline or self-discipline (Shitsuke)
Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways. When an issue arises such as a suggested improvement, a new way of working, a new tool or a new output requirement, review the first 4 S's and make changes as appropriate.
[edit] Safety

A sixth phase, "Safety", is sometimes added. There is debate over whether including this sixth "S" promotes safety by stating this value explicitly, or if a comprehensive safety program is undermined when it is relegated to a single item in an efficiency-focused business methodology.

A seventh phase, "Security", can also be added. In order to leverage security as an investment rather than an expense, the seventh "S" identifies and addresses risks to key business categories including fixed assets (PP&E), material, human capital, brand equity, intellectual property, information technology, assets-in-transit and the extended supply chain.

An eighth phase, “Satisfaction”, can be included[citation needed]. Employee Satisfaction and engagement in continuous improvement activities ensures the improvements will be sustained and improved upon. The Eighth waste – Non Utilized Intellect, Talent, and Resources can be the most damaging waste of all.

It is important to have continuous education about maintaining standards. When there are changes that affect the 5S program such as new equipment, new products or new work rules, it is essential to make changes in the standards and provide training. Companies embracing 5S often use posters and signs as a way of educating employees and maintaining standards.
The ''key resources'' compound of the [[Business Model Canvas]] tries to answer the following questions:
* Are there some key resources we could get rid of?
* Are there some key resources we could substitute?
* Are there some key resources that could be better (and/or cheaper) supplied by partners?

<img src="/static/files/MBI/Module%208/businessmodelcanvaskeyresources.PNG" width=600>

Part of: [[Business Model Canvas]]
The competitive discount determines the reduction in consumers willingness to pay as a result of competitors offering a product or service at a price under the [[Perceived use value]]. It can be helpful to discriminate between:
* Competitive environments
* Monopolistic environments
In a monopolistic environment the [[VPF]] is rather simplistic. Here the [[Perceived use value]] represents the maximum amount he/she is willing to pay for the product. In a perfectly monopolistic environment, producers are able to capture (almost) completely the value created provided that there (1) no other source of supply and (2) they are able to discriminate on price.
<img src="/static/files/MBI/Module%208/valuecapturedmonopolistic.PNG" width=600>
In a competitive environment the consumer surplus by rival companies determine the customer's choice. The willingness to pay is reduced by the amount of consumer surplus offered by the strongest competitor or the best substitute product.
<img src="/static/files/MBI/Module%208/valuecapturedcompetitive.PNG" width=540>
Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 8 - Creating and capturing value through e-Business strategies]]
The ''//stewardship theory//'' (opposing the [[Agency Theory]])) differs in the underlying view on mankind. The view is that 'Agents' act in the interest of the 'Principle' because they care about their reputation.
<<YouTubeFragment H0_yKBitO8M>>
The T-statistic is telling us that a coefficient is statistically different from 0 and that therefore a relation exists. The T-Statistic is said to be statistically different from 0 depending on the confidence interval. For a 95% confidence interval T should be < 1.96 or > 1.96.

The T-Statistic is equal to the coefficient divided by the [[Standard error]]
Personal branding is the process whereby people and their careers are marked as brands. It has been noted that while previous self-help management techniques were about self-improvement, the personal branding concept suggests instead that success comes from self-packaging. Further defined as the creation of an asset that pertains to a particular person or individual; this includes but is not limited to the body, clothing, appearance and knowledge contained within, leading to an indelible impression that is uniquely distinguishable.The term is thought to have been first used and discussed in a 1997 article by Tom Peters.
|Author|Eric Shulman|
|Description|save or print HTML+CSS image of rendered document content|
This plugin provides a macro as well as tiddler toolbar commands to create a file or browser window containing the //rendered// CSS-and-HTML that is currently being displayed for selected elements of the current document.
>see [[SnapshotPluginInfo]]
<<option chkSnapshotHTMLOnly>> output HTML only (omit CSS)
2009.10.12 1.3.0 added multi-file story snapshot
|please see [[SnapshotPluginInfo]] for additional revision details|
2008.04.21 1.0.0 initial release - derived from [[NewDocumentPlugin]] with many improvements...
version.extensions.SnapshotPlugin= {major: 1, minor: 3, revision: 0, date: new Date(2009,10,12)};

if (config.options.chkSnapshotHTMLOnly===undefined)

config.macros.snapshot = {
	snapLabel: "save a snapshot",
	printLabel: "print a snapshot",
	snapPrompt: "save an HTML image",
	printPrompt: "print an HTML image",
	hereID: "here",
	viewerID: "viewer",
	storyID: "story",
	allID: "all",
	askID: "ask",
	askTiddlerID: "askTiddler",
	askDOMID: "askDOM",
	askMsg: "select an element...",
	hereItem: "tiddler: '%0'",
	viewerItem: "tiddler: '%0' (content only)",
	storyItem: "story column (one file)",
	storyFilesItem: "story column (multiple files)",
	allItem: "entire document",
	tiddlerItem: "select a tiddler...",
	IDItem: "select a DOM element by ID...",
	HTMLItem: "[%0] output HTML only (omit CSS)",
	fileMsg: "select or enter a target path/filename",
	defaultFilename: "snapshot.html",
	okmsg: "snapshot written to %0",
	failmsg: "An error occurred while creating %0",
	handler: function(place,macroName,params,wikifier,paramString,tiddler) {
		var printing=params[0]&&params[0]=="print"; if (printing) params.shift();
		params = paramString.parseParams("anon",null,true,false,false);
		var id=getParam(params,"id","here");
		var label=getParam(params,"label",printing?this.printLabel:this.snapLabel);
		var prompt=getParam(params,"prompt",printing?this.printPrompt:this.snapPrompt);
		var btn=createTiddlyButton(place,label,prompt, function(ev){
	go: function(here,ev) {
		var cms=config.macros.snapshot; // abbreviation
		var id=here.getAttribute("snapID");
		var printing=here.getAttribute("printing")=="true";
		var HTMLOnly=here.getAttribute("HTMLOnly")=="true";

		if (id==cms.askID||id==cms.askTiddlerID||id==cms.askDOMID) {
		} else if (id==cms.storyID) {
			story.forEachTiddler(function(t,e) {
				var out=cms.getsnap(e,,printing,HTMLOnly);
				if (printing) cms.printsnap(out);
				else cms.savesnap(out,e.getAttribute('tiddler')+'.html');
		} else {
			if (id==cms.allID) id="contentWrapper";
			var snapElem=document.getElementById(id);
			if (id==cms.hereID || id==cms.viewerID)
				var snapElem=story.findContainingTiddler(here);
			if (snapElem && hasClass(snapElem,"tiddler") && (id==cms.viewerID || HTMLOnly)) {
				// find viewer class element within tiddler element
				var nodes=snapElem.getElementsByTagName("*");
				for (var i=0; i<nodes.length; i++)
					if (hasClass(nodes[i],"viewer")) { snapElem=nodes[i]; break; }
			if (!snapElem) // not in a tiddler or no viewer element or unknown ID
				{ e.cancelBubble=true; if(e.stopPropagation)e.stopPropagation(); return(false); }
			// write or print snapshot
			var out=cms.getsnap(snapElem,id,printing,HTMLOnly);
			if (printing) cms.printsnap(out); else cms.savesnap(out);
		return false;
	askForID: function(here,ev) {
		var ev = ev ? ev : window.event; 
		var cms=config.macros.snapshot; // abbreviation
		var id=here.getAttribute("snapID");
		var indent='\xa0\xa0\xa0\xa0';
		var p=Popup.create(here); if (!p) return false; p.className+=' sticky smallform';
		var s=createTiddlyElement(p,'select'); s.button=here;
		if (id==cms.askID) {
			s.options[s.length]=new Option(cms.askMsg,cms.askID);
			var tid=story.findContainingTiddler(here);
			if(tid) { 
				var title=tid.getAttribute("tiddler");
				if (here.getAttribute("HTMLOnly")!="true")
					s.options[s.length]=new Option(indent+cms.hereItem.format([title]),cms.hereID);
				s.options[s.length]=new Option(indent+cms.viewerItem.format([title]),cms.viewerID);
			s.options[s.length]=new Option(indent+cms.tiddlerItem,cms.askTiddlerID);
			s.options[s.length]=new Option(indent+cms.IDItem,cms.askDOMID);
			s.options[s.length]=new Option(indent+cms.storyItem,"tiddlerDisplay");
			s.options[s.length]=new Option(indent+cms.storyFilesItem,cms.storyID);
			s.options[s.length]=new Option(indent+cms.allItem,"contentWrapper");
		if (id==cms.askDOMID) {
			s.options[s.length]=new Option(cms.IDItem,cms.askDOMID);
			var elems=document.getElementsByTagName("*");
			var ids=[];
			for (var i=0;i<elems.length;i++)
				if (elems[i].id.length && elems[i].className!="animationContainer")
			for (var i=0;i<ids.length;i++) s.options[s.length]=new Option(indent+ids[i],ids[i]);
		if (id==cms.askTiddlerID) {
			s.options[s.length]=new Option(cms.tiddlerItem,cms.askTiddlerID);
			var elems=document.getElementsByTagName("div");
			var ids=[];
			for (var i=0;i<elems.length;i++) { var id=elems[i].id;
				if (id.length && id.substr(0,story.idPrefix.length)==story.idPrefix && id!="tiddlerDisplay")
			for (var i=0;i<ids.length;i++) s.options[s.length]=new Option(indent+ids[i].substr(story.idPrefix.length),ids[i]);
		s.options[s.length]=new Option(cms.HTMLItem.format([here.getAttribute("HTMLOnly")=="true"?"\u221a":"_"]),cms.HTMLItem);
			var ev = ev ? ev : window.event; 
			var cms=config.macros.snapshot; // abbreviation
			var here=this.button;
			if (this.value==cms.HTMLItem) {
			} else
			return false;
		return false;
	getpath: function() {
		// get current path
		var path=getLocalPath(window.location.href);
		var slashpos=path.lastIndexOf("/");
		if (slashpos==-1) slashpos=path.lastIndexOf("\\"); 
		if (slashpos!=-1) path=path.substr(0,slashpos+1); // trim filename
		return path;
	getsnap: function(snapElem,id,printing,HTMLOnly) {
		var cms=config.macros.snapshot; // abbreviation
		var out='<head><meta http-equiv="Content-Type" content="text/html;charset=utf-8" />';
		if (printing)
			out+='<base href="file:///'+cms.getpath().replace(/\\/g,'/')+'"></base>\n';
		if (!HTMLOnly) {
			var styles=document.getElementsByTagName('style');
			var fmt='<style>\n/* stylesheet=%0 */\n%1\n\n</style>\n';
			for(var i=0; i < styles.length; i++)

		var elems=snapElem.getElementsByTagName('input');
		for (var i=0; i<elems.length; i++) { var e=elems[i];
			if (e.type=='text')		e.defaultValue=e.value;
			if (e.type=='checkbox')	 	e.defaultChecked=e.checked;
			if (e.type=='radiobutton')	e.defaultChecked=e.checked;
		var elems=snapElem.getElementsByTagName('textarea');
		for (var i=0; i<elems.length; i++)	elems[i].defaultValue=elems[i].value;

		var fmt='<body>\n\n<div class="%0">%1</div>\n\n</body>\n';
		out+=fmt.format([(id==cms.viewerID?'tiddler viewer':''),snapElem.innerHTML]);

		return '<html>\n'+out+'</html>';
	printsnap: function(out) {
		win.focus(); // bring to front
		win.print(); // trigger print dialog
	savesnap: function(out,target) {
		var cms=config.macros.snapshot; // abbreviation
		// make sure we are local
		if (window.location.protocol!="file:")
			{ alert(config.messages.notFileUrlError); return; }
		var target=target||cms.askForFilename(cms.fileMsg,cms.getpath(),cms.defaultFilename);
		if (!target) return; // cancelled by user
		// if specified file does not include a path, assemble fully qualified path and filename
		var slashpos=target.lastIndexOf("/"); if (slashpos==-1) slashpos=target.lastIndexOf("\\");
		if (slashpos==-1) {
			var h=document.location.href;
			var cwd=getLocalPath(decodeURIComponent(h.substr(0,h.lastIndexOf('/')+1)));
		var link="file:///"+target.replace(/\\/g,'/'); // link for message text
		var ok=saveFile(target,convertUnicodeToUTF8(out));
		var msg=ok?cms.okmsg.format([target]):cms.failmsg.format([target]);
	askForFilename: function(msg,path,file) {
		if(window.Components) { // moz
			try {'UniversalXPConnect');
				var nsIFilePicker = window.Components.interfaces.nsIFilePicker;
				var picker = Components.classes[';1'].createInstance(nsIFilePicker);
				picker.init(window, msg, nsIFilePicker.modeSave);
				var thispath = Components.classes[';1'].createInstance(Components.interfaces.nsILocalFile);
				if (!=nsIFilePicker.returnCancel) var result=picker.file.persistentDescriptor;
			catch(e) { alert('error during local file access: '+e.toString()) }
		else { // IE
			try { // XP/Vista only
				var s = new ActiveXObject('UserAccounts.CommonDialog');
				s.Filter='All files|*.*|Text files|*.txt|HTML files|*.htm;*.html|';
				s.FilterIndex=3; // default to HTML files;
				if (s.showOpen()) var result=s.FileName;
			catch(e) { var result=prompt(msg,path+file); } // fallback for non-XP IE
		return result;

config.commands.snapshotSave = {
	text: "snap",
	tooltip: config.macros.snapshot.snapPrompt,
	handler: function(ev,src,title) {
		return false;
config.commands.snapshotPrint = {
	text: "print",
	tooltip: config.macros.snapshot.printPrompt,
	handler: function(ev,src,title) {
		return false;

if (config.options.chkStickyPopups==undefined) config.options.chkStickyPopups=false;
Popup.stickyPopup_onDocumentClick = function(ev)
	// if click is in a sticky popup, ignore it so popup will remain visible
	var e = ev ? ev : window.event; var target = resolveTarget(e);
	var p=target; while (p) {
		if (hasClass(p,"popup") && (hasClass(p,"sticky")||config.options.chkStickyPopups)) break;
		else p=p.parentNode;
	if (!p) // not in sticky popup (or sticky popups disabled)... use normal click handling
	return true;
A process to create a value roadmap in a cross functional team.

''VRM Process''
<img src="/static/files/MBI/Module%204/valueroadmapping.gif" width="600" /> 

Eigth process stages:
# Define strategic framework, vision, scenario
## It is important to define the strategic framework/ vision/scenario that governs the technology exploitation,including any overall assumptions, boundaries and constraints that apply.
## Step 1 is typically done in the preparation phase, before the value roadmap workshop takes place. Steps 2-5 are usually carried out in the value roadmapping workshop itself.
# Map technology developments and investment milestones
## Mapping in terms of the technical capabilities that will be achieved at key milestones, including TRLs, together with any knowledge of competing and complementary technologies. The results are captured in the technology research and technology programs layer of the VRM architecture.
# Define value streams
##  The goal is to identify specific sources of potential future revenue and value, articulated as clearly as possible. 
## Participants are encouraged to forecast or estimate revenue/value for each opportunity.
### Traditional methods for estimating value can be used (such as NPV), although their limitations should be acknowledged, especially for long-term technology developments.
### In such situations a rough estimate of the scale of revenue may be more appropriate, with justification (for example conservative logarithmic scale: >£1M, >£IOM, >£IOOM. >£1.000M).
### If opportunities are prioritized and value estimated, the decision tree/options methods can be used to aggregate the various value contributions, including dependencies and estimates of likelihoods, to give a single financial measure of value.
### The value "fingerprint" associated with a technology development project may be useful in understanding the scale of potential value 
# Map market and business trends and drivers
## Participants are requested to map the market and business trends and drivers that infiuence the prioritized value opportunities.
### These are typically social, economic, environmental, techtiological and political drivers,
### knowledge about potential customer needs and competitors
### the milestones and goals of the technology.
# Map barriers and enablers
## The technical and nontechnical barriers and enablers associated with developing and exploiting the technology are mapped, together with the associated and complementary assets and actions.
# Review project plan and VRM
## Typically focuses on the key strategic business drivers (e.g., using ROl, DCF estimates or SWOT analysis) of the respective firm. It is important to have these drivers defined by the decision makers.
# Present visualization
## A "first-cut" value roadmap will be dense, complex and fragmented, with gaps and data of varying quality. Further effort will be required to tidy up the roadmap
## This detailed "rich picture" VRM can be considered as a database, containing relevant information at a fairly high level of granularity but it is not the main medium of communication.
## Communication roadmaps need to be developed (suitable for presentations). For example, elevator pitch roadmaps or templates
# Maintain VRM as a process
## The VRM and associated documentation should be maintained on an ongoing basis, preferably as part of a core business process (e.g.,
project management, new product development, research management, and strategic planning/budgeting).

Value roadmaps are a way to explore and improve the value of technology projects at an early stage, linking current investments and decisions to longer-term business outcomes (75). An important element that distinguishes VRM from other approaches:

* The participatory workshop approach,
* Bringing together a multidisciplinary team of both technology developers as well as decision makers/investors.
* Engaging theright participants is a key success factor,
* Including a healthy mix of technical and commercial functionsand external ''challenging" perspectives (e.g., other markets and technologies).

Endless articles, books, and blogs have been written on the topic of business plan presentations and pitching to investors. In spite of this wealth of advice, almost every entrepreneur gets it wrong. Why? Because most guides to pitching your company miss the central point: The purpose of your pitch is to sell, not to teach. Your job is to excite, not to educate.

Pitching is about understanding what your customer (the investor) is most interested in, and developing a dialog that enables you to connect with the head, the heart, and the gut of the investor. If you want advice about pitching, you can ask a venture capitalist, but you probably won’t get a very good answer. Most VCs are analytic types, and so they will give you a laundry list of topics you should cover. They won’t tell you what really floats their boat, mainly because they themselves can’t articulate it in useful terms. “I know it when I see it,” is about the best answer you’ll get.

What is the investor most interested in? Contrary to popular belief, the venture capitalist sitting at the other end of the table glaring inscrutably at the presenting entrepreneur is not thinking, “Is this company going to make a lot of money?” That is the simple question that most entrepreneurs think they are answering, but they are missing the crux of the venture capital process. What the investor is really thinking is, “Is this company the best next investment for me and my fund?” That is a much more complex question, but that is what the entrepreneur has to answer.

To win over the hearts and minds of investors, your pitch has to accomplish three things:

* Tell a good, clear, easy-to-repeat story—the story of an exciting new startup.
* Position your company as a perfect fit with other investments the investors have made and their firm is chartered to make.
* Beat out the other new investments the firm is currently considering.

These latter two issues are beyond the scope of this modest guide. So for now, let’s just concentrate on telling a good story.\

!Tell a good story
Most of the articles on pitching are generally right about the topics, even if they miss the nuance (sell, don’t explain). But don’t take any template as graven in stone. Your story may require a moderate or even a dramatic variation on the list of slides below. You may need to explain the solution before you can explain the market; or if you are in a crowded space you may need to explain why you are different than everyone else early on in the conversation; or you may want to drop some very impressive brand-name customers before you explain your product or your market. The one thing you may not do is expand the number of slides to 20 (or 30 or 50)! Other than that, let the specifics of your situation dictate the flow of your slides.

Nevertheless, it is useful to have a guide. With the caveats above in mind, here is a basic outline for your pitch:

!Cover Slide: Company name, location, tagline, presenter’s name and title.
If there are multiple team members participating in the pitch, put names on the next slide instead. Key objective: Everyone in the room should know the basic idea and value proposition of the company, including the target market, before the next slide is shown. All the words should not be on this slide, but with one or two sentences orally, reinforcing and extending the tagline, everyone should have a foundation for what is to come. Cardinal sin: Launching into your presentation with an investor at the table thinking, “I wonder what these guys do?”

!Intro Slide: Team.

The three or four key players in the company. For some reason, everyone puts the team slide at the end, but investors almost always want to know this at the beginning, and it is just common courtesy to make sure everyone is introduced. But make this short, crisp and relevant. This is not the time to share everyone’s life story, or detail the resumes of all six members of the advisory board. Focus on a significant, relevant accomplishment for each person that identifies that person as a winner. In 10 to 15 seconds, you should be able to say three or four sentences about your CTO that says everything the investors want to know about him or her at that moment. Key objective: Investors should be confident that there is a good credible core group of talent that believe in the company and can execute the next set of milestones. One of those milestones may be filling out the team, and so it is important to convey that the initial team knows how to attract great talent, as well as having great domain skills. If there is a gap in the team, address it explicitly, before investors have to ask about it.

!Slide 1: Company Overview.

The best way to give an overview of your company is to state concisely your core value proposition: What unique benefit will you provide to what set of customers to address what particular need? Then you can add three or four additional dot points to clarify your target markets, your unique technology/solution, and your status (launch date, current customers, revenue rate, pipeline, funding needed). Key objective: Flesh out the foundation you established at the beginning. At this point, no one should have any question about what it is that your company does, or plans to do. The only questions that should remain are the details of how you are going to do it. Another key objective you should have achieved by this point in your presentation is to make sure that if there are some compelling brand names associated with your company (customers, partners, investors, advisors), your audience knows about them. Feel free to drop names early and often—starting with your first email introduction to the investor. Brand name relationships build your credibility, but do not overstate them if they are tenuous.

!Slide 2: Problem/Opportunity.

You need to make it clear that there is a big, important problem (current or emerging) that you are going to solve, or opportunity you are going to exploit, and that you understand the market dynamics surrounding the opportunity—why does this situation exist and persist, and why is it only now that it can be addressed? Show that you really understand the very particular market segment you are targeting, and frame your market analysis according to the specific problem and solution you are laying out. In some cases, however, the problem you are attacking is so obvious and clear that you can drop this slide altogether. You do not have to tell investors that there are a lot of cell phones out there, or that teenagers like to socialize. Save yourself, and the investors, the pain of restating the obvious.

!Slide 2.1: Problem/Opportunity Size.

Even if your market opportunity is not obvious, in most cases you can assert the size of your opportunity on slide 2. But sometimes you may need a dedicated slide to clarify the factors that define the size and scope of the opportunity, particularly if you are going after multiple market segments. Or there may be a unique emerging trend that requires explanation. Do not use this slide to quote the Gartner Group or Frost & Sullivan; show that you really understand where your prospective customers are from the ground up.

!Slide 3: Solution.

What specifically are you offering to whom? Software, hardware, services, a combination? Use common terms to state concretely what you have, or what you do, that solves the problem you’ve identified. Avoid acronyms and don’t try to use these precious few words to create and trademark a bunch of terms that won’t mean anything to most people, and don’t use this as an opportunity to showcase your insider status and facility with the idiomatic lingo of the industry. If you can demonstrate your solution (briefly) in a meeting, this is the place to do it.

!Slide 3.1: Delivering the Solution.

You might need an extra slide to show how your solution fits in the value chain or ecosystem of your target market. Do you complement commonly used technologies, or do you displace them? Do you change the way certain business processes get executed, or do you just do them the same way, but faster, better and cheaper? Do you disrupt the current value chain, or do you fit into established channels? Who exactly is the buyer, and is that person different than the user?

!Slide 4: Benefits/Value.

State clearly and quantify to the extent possible the three or four key benefits you provide, and who specifically realizes these benefits. Do some constituents benefit more than others, or earlier than others? These dynamics should inform your go-to-market strategy, and your product/service roadmap, which you will discuss later.

!Slide 5: Secret Sauce/Intellectual Property.

Depending on your solution, you might need a separate slide to convince investors that no one else can easily duplicate or surpass your solution (assuming that’s actually true). If you are in a business sector in which intellectual property is important, this is where you drill down into your secret sauce. This is usually some combination of proprietary technology, unique team domain expertise, and unique partnership. Boil this down to simple elements and terms, devoid of jargon. Do not walk the audience through a detailed tour of your product architecture. Instead, highlight the elements of your technology that give you unique potential for leverage and scale as you grow. If you do slides 4 and 5 well, it will be easy to make the case for your …

!Slide 6: Competitive Advantage.

You may be good, but are you really better than everyone else? Most entrepreneurs misunderstand the objective of this slide, which is not to enumerate all the deficiencies of the competition (as much fun as that may be). Just because you have really cool technology does not mean you will win. You need to convince the investor that lots of folks will buy your product or service, even though they have several alternatives. And don’t forget that the toughest competitor is often the status quo—most prospective customers can muddle on without buying your solution or your competitor’s solution. The best way to convince an investor that you really do have a better mousetrap is to have referenceable customers or prospects articulate in their own words why they bought or will buy your offering over the alternatives. Use this slide to summarize the three or four key reasons why customers prefer your solution to other solutions. Many entrepreneurs have been coached to use a four-square matrix that shows that they are in the upper right-hand quadrant, but this has become a joke in the venture community. Check-boxes are better, if they are not abused. Make sure your check-box criteria reflect the market’s requirements, not just your product’s features.

!Slide 6.1: Competitive Advantage Matrix.

Depending on how important the analysis of competitive players is in your market segment, you may need a detailed list of competitors by category with their strengths and weaknesses in comparison with your company. Preferably, you develop this as a “pocket slide” to be used for Q&A, if necessary. Whether or not you present this slide, it is important that you do your homework on the competition, and that you don’t misrepresent their strengths or their weaknesses.

!Slide 7: Go to Market Strategy.

The single most compelling slide in any pitch is a pipeline of customers and strategic partners that have already expressed some interest in your solution—if they haven’t already joined your beta program. Too often this slide is, instead, a bland laundry list of standard sales and marketing tactics. You should focus on articulating the non-obvious, potentially disruptive elements of your strategy. Even better, frame your comments in terms of the critical hurdles you need to get over, and how you are going to jump them. If you don’t have a pipeline, and there is nothing unique or innovative about your strategy, then drop this slide and make the elements of your sales model clear in the discussion of your business model (next slide).

!Slide 8: Business Model.

How do you make money? Usually by selling something for a certain price to certain customers. But there are lots of variations on the standard theme. Explain your pricing, your costs, and why you are going to be especially profitable. Make sure you understand the key assumptions underlying your planned success and be prepared to defend them. What if you can’t sustain the price? What if it takes twice as long to make each sale? What if your costs don’t decline over time? Many investors will want to test the depth of your understanding of your business model. Be ready to articulate the sensitivity of your business to variations in your assumptions.

!Slide 9: Financial Projections.

The two previous slides above should come together neatly in your five-year financial projections. You should show the two or three key metrics that drive revenues, expenses and growth (such as customers, unit sales, new products, expansion sales, new markets), as well as the revenue, expense, profit, cash balance, and headcount lines. The most important thing to convey on this slide is that you really understand the economics and evolution of a growing, dynamic company, and that your vision is grounded in an understanding of practical reality. Your financials should tell your story in numbers as clearly as you are telling your story in words. Investors are not focused on the precision of your numbers; they’re focused on the coherence and integrity of your thought process.

!Slide 10: Financing Requirements/Milestones.

It should be clear from your financials what your capital requirements will be. On this slide you should outline how you plan to take in funding—how big each round will be, and the timing of each—and map the funding against your key near-term and medium-term milestones. You should also include your key achievements to date. These milestones should tie to the key metrics in your financial projections, and they should provide a clear, crisp picture of your product introduction and market expansion roadmap. In essence, this is your operating plan for the funds you are raising. Do not spend time presenting a “use of funds” table. Investors want to see measures of accomplishment, not measures of activity. And they want to know that you are asking for the right amount of money to get the company to a meaningful milestone.

!Summary Slide.

This slide is almost always wasted. Most entrepreneurs just put up three or four dot points about how wonderful their investment opportunity is. Generally the words are the same words that investors hear from scores of other entrepreneurs, such as, “We have a huge opportunity, and we will be the winners!” Your key objective on this slide is to solidify the core value proposition of your company in words that are memorable and unique to your company. If the venture investor in the room has to give a short description of your company to his partners, these are the words you want used. This is a good place to reinforce your tagline, or mantra—the short phrase that captures the essence of your message to investors. The best solution to creating your summary slide is to imagine that this is the only slide you will ever be able to present. If you had to do your whole pitch in one slide (with 30 point font), this is that slide.

So here we have a good general outline for pitching your company. But remember, it’s about selling your investment proposition, not about covering points. Don’t get fixated on using this or any other template. You should know the issues about your company that investors are most concerned about. Those are the issues you need to concentrate on. Make sure you address all the predictable “burning questions” as early as you can in your presentation, even if it means violating the sequence above.

!Tips on effective pitching

How do you turn a pitch from a monolog to a sale? Make sure every point you make connects with your audience. Keep your text very, very short. Really. Please. Use charts and pictures if you can. And engage your prospect. Ask questions. “Do you think this market opportunity is interesting?” “Have you seen anyone else addressing this problem?” “Do you think CIOs would be interested in a solution like this?” You may get some tough responses, but you will know a lot more about what is going on in the investor’s mind, and you will be engaging them in your story—instead of letting them play with their Blackberries under the table.

Some additional tips to improve the effectiveness of your pitch:

 * ''Make sure that everyone in the room is introduced''. Rarely do entrepreneurs ask the investors in the room to introduce themselves. While it is appropriate to be familiar with each investor’s bio (assuming it is on the web), it’s fair to ask something like, “What investments have you been looking at recently?” And if there are some other faces in the room, you should absolutely have them introduce themselves and provide a little background.
* Don’t use a feel-good, visionary “Mission Statement” on your overview slide. Mission statements have also become a joke in the venture industry. It’s like saying, “Our projections are conservative.” Focus on making sure your statement of your company’s value proposition is crisp, clear, and unique.
* Prepare good use cases. Sometimes, no matter how simple and clear the description of a product, what the investor really needs is a concrete example of how people will actually use it. In some cases there will be multiple different use cases. You may need to explain these to get your point across.
*  Drop names, early and often. If you really have some brand names involved in your company — as customers, as partners, as members of the team — don’t keep them a secret for the first nine slides; make sure the investor knows about them early in the presentation. But be prepared for the investor to contact every single name you drop — whether it’s a person or a company. If you are going to drop names, they had better be real.
* Make sure you can tell the entire story in 10 to 15 minutes. Even if you have time, your total presentation should be no longer than 20 minutes. You want to have time to engage the investors and discuss their questions or concerns. If you think you have additional critical points that have to be made, prepare “pocket slides” that you can put up if the topic arises.
* Average entrepreneur pitch: 38 slides. Average VC attention span/cranial capacity: 10 slides. Do the math.
* Learn how to control the flow of the meeting, without seeming inflexible or anxious. Watch and listen. Body language and questions will tell you if you are okay deferring a point or if you need to address it immediately. If you let your audience take over the flow, you will probably wind up creating a confusing, incomplete impression of your company. But if you don’t address the “burning questions” early and effectively, the investors won’t hear anything else you say.
* Don’t lie. You would think this goes without saying, but in their enthusiasm for their creations, entrepreneurs tend to slip across the line all too often. Please do not interpret our exhortation to “sell” as an endorsement of hype, exaggeration, misrepresentation, spin, or lying. The best salespeople are credible and trustworthy. It is more important that investors trust you than that they understand every nuance of your business.
* Pitching investors is different than pitching customers. If you have a sales presentation for customers, do not think you can simply modify it slightly for pitching to VCs. Start from scratch, keeping in mind with every slide that an investor has a very different perspective than a customer.
* You don’t have to be “conservative,” but you do have to be realistic. Almost every entrepreneur fails to be realistic about how long things take in the real world (vs. the spreadsheet world). Whether it’s the time to complete product development, or the time to close the next ten sales, entrepreneurs are pathologically optimistic. As with your financials, find examples of comparable challenges addressed by other companies, and use that data in your model.
*   Never ever put so much text on a page that the investor has to read it. Everything should be short, content-rich bullets in a font large enough to read without squinting. The words are simply reinforcement of the points you are making orally. Pictures, graphs, and charts should be uncluttered and make clear, compelling points. If they have to be deconstructed and explained piece by piece, you will lose focus and momentum.
* And never use your presentation stack as a standalone document. It is perfectly okay if it is not readable when you are not around. That’s the job of your executive summary or your business plan.

A good pitch is very rare. It is so hard executing on everything else that has to be done to build a successful company, pitching often suffers. But the ability to pitch is a key indicator for investors—if the entrepreneur doesn’t know how to sell, how can he or she build a great company?

At Garage Technology Ventures, we appreciate how hard you have worked to get to where you are, and how hard you have worked to craft your investor presentation. We wish we could work with all the great entrepreneurs we meet, but unfortunately we can’t. Please help us get to know you better by telling your story clearly and concisely.

See also: [[Writing a Compelling Executive Summary]]
We talked about company culture and cultural elements. One of the tools offered was a [[Change management template]]@management

"Most of the business we do is though our email list. It’s important to think about your marketing strategy as part of the actual model of your business and email as part of it from the very beginning.

Driving people to this email list so it’s not something that they just show up one day, say that’s not for me, and then never come back. It’s better to get them to look at it five times; the chances will be much higher that they’re going to find something they like. Email makes it possible to do that when you’re actually pushing something out."
In the concept of the [[Innovation Value Chain]] an idea poor organization is weakest at generating ideas. 

Some suggestions to fix this are:
* Build external networks
** For instance a discovery network including scientists, universities, venture capitalists, entrepenuers
* Build internal cross functional networks
** Only brainstorming won't do the trick, need to establish regular cooperation
<<formTiddler [[NewBookTemplate]]>><data>{"Author":"Chris Voss","Rating":"****","ReadingCompleted":true}</data>

Chris Voss is a former international FBI hostage negotiator. In his book, Never Split the Difference, Chris reveals his battle-tested strategies for high-stakes negotiations.

!The Five Big Ideas
Negotiation begins with listening, making it about the other people, validating their emotions, and creating enough trust and safety for a real conversation to begin.
Use mirrors to encourage the other side to empathize and bond with you, keep people talking, buy your side time to regroup, and encourage your counterparts to reveal their strategy.
Tactical empathy brings our attention to both the emotional obstacles and the potential pathways to getting an agreement done.
Giving someone’s emotion a name, otherwise known as labeling, gets you close to someone without asking about external factors you know nothing about.
“No” provides a great opportunity for you and the other party to clarify what you really want by eliminating what you don’t want.
Never Split the Difference Summary

!Chapter 1: The New Rules
Negotiation begins with the universally applicable premise that people want to be understood and accepted. Listening is the cheapest, yet most effective concession we can make to get there. By listening intensely, you demonstrate empathy and show a sincere desire to better understand what the other side is experiencing.

!Chapter 2: Be a Mirror
Good negotiators know that they need to be ready for surprises; great negotiators use their skills to reveal the surprises they are certain to exist.

Great negotiators question the assumptions that others accept on faith or in arrogance. Thus, they remain more emotionally open to all possibilities and more intellectually agile to a fluid situation.

People who view negotiation as a battle of arguments become overwhelmed by the voices in their head. Negotiation is not an act of battle; it’s a process of discovery. Your goal is to uncover as much information as possible.

To quiet the voices in your head, make your sole and all-encompassing focus the other person and what they have to say.

Your goal is to identify what your counterpart actually needs and get them feeling safe enough to talk about what they want.

Negotiation begins with listening, making it about the other people, validating their emotions, and creating enough trust and safety for a real conversation to begin.

Going too fast is one of the mistakes all negotiators make. If you’re too much in a hurry, people can feel as if they’re not being heard and you risk undermining the rapport and trust we’ve built.

There are three voice tones available to negotiators:

The late-night FM DJ voice: Use selectively to make a point. Inflect your voice downward, keeping it calm and slow. When done properly, you create an aura of authority and trustworthiness without triggering defensiveness.
The positive/playful voice: Should be your default voice. It’s the voice of an easygoing, good-natured person. Your attitude is light and encouraging. The key here is to relax and smile while you’re talking.
The direct or assertive voice: Used rarely. Will cause problems and create pushback.
Put a smile on your face. When people are in a positive frame of mind, they think more quickly and are more likely to collaborate and problem-solve. Positivity creates mental agility in both you and your counterpart.

You can be very direct and to the point as long as you create safety by a tone of voice that says “I’m okay, you’re okay, let’s figure things out.”

View assumptions as hypotheses and use the negotiation to test them rigorously.

Mirrors work magic. Repeat the last three words (or the critical one to three words) of what someone has just said. We fear what’s different and are drawn to what’s similar. Mirroring is the art of insinuating similarity, which facilitates bonding. Use mirrors to encourage the other side to empathize and bond with you, keep people talking, buy your side time to regroup, and encourage your counterparts to reveal their strategy.

By repeating back what people say, your counterpart will inevitably elaborate on what was just said and sustain the process of connecting.

In one study by Richard Wiseman, the average tip of the waiters who mirrored was 70 percent more than of those who used positive reinforcement.

Having the right mindset is the key to a successful negotiation.

To get your own way without confrontation, follow five simple steps:

Use the late-night FM DJ voice;
Start with “I’m sorry …”;
Silence. At least four seconds, to let the mirror work its magic on your counterpart; and
!Chapter 3: Don’t Feel Their Pain, Label It
Tactical empathy is understanding the feelings and mindset of another in the moment and also hearing what is behind those feelings so you increase your influence in all the moments that follow. It’s bringing our attention to both the emotional obstacles and the potential pathways to getting an agreement done.

When we closely observe a person’s face, gestures, and tone of voice, our brain begins to align with theirs in a process called neural resonance, and that lets us know more fully what they think and feel.

If you want to increase your neural resonance skills, take a moment right now and practice. Turn your attention to someone who’s talking near you, or watch a person being interviewed on TV. As they talk, imagine that you are that person. Visualize yourself in the position they describe and put in as much detail as you can as if you were actually there.

Labeling is a way of validating someone’s emotion by acknowledging it. Give someone’s emotion a name and you show you identify with how that person feels. It gets you close to someone without asking about external factors you know nothing about.

The first step to labeling is detecting the other person’s emotional state.

The trick to spotting feelings is to pay close attention to changes people undergo when they respond to external events. Most often, those events are your words.

Once you’ve spotted an emotion you want to highlight, the next step is to label it aloud. Labels can be phrased as statements or questions. The only difference is whether you end the sentence with a downward or upward inflection. But no matter how they end, labels almost always begin with roughly the same words:

“It seems like …”
“It sounds like …”
“It looks like …”
When responding, your counterpart will usually give a longer answer than just “yes” or “no.” And if they disagree with the label, that’s okay. You can always step back and say, “I didn’t say that was what it was. I just said it seems like that.”

The last rule of labeling is silence. Once you’ve thrown out a label, be quiet and listen.

In basic terms, people’s emotions have two levels: the “presenting” behavior is the part above the surface you can see and hear; beneath, the “underlying” feeling is what motivates the behavior.

What good negotiators do when labeling is address those underlying emotions. Labeling negatives diffuses them (or defuses them, in extreme cases); labeling positives reinforces them.

Labeling helps de-escalate angry confrontations because it makes the person acknowledge their feelings rather than continuing to act out.

The fastest and most efficient means of establishing a quick working relationship is to acknowledge the negative and diffuse it.

Research shows that the best way to deal with negativity is to observe it, without reaction and without judgment. Then consciously label each negative feeling and replace it with positive, compassionate, and solution-based thoughts.

Imagine yourself in your counterpart’s situation. When you acknowledge the other person’s situation, you immediately convey that you are listening. And once they know that you are listening, they may tell you something that you can use.

The reasons why a counterpart will not make an agreement with you are often more powerful than why they will make a deal, so focus first on clearing the barriers to agreement. Denying barriers or negative influences gives them credence; get them into the open.

Pause. After you label a barrier or mirror a statement, let it sink in. Don’t worry, the other party will fill the silence.

Label your counterpart’s fears to diffuse their power.

List the worst things that the other party could say about you and say them before the other person can. Because these accusations often sound exaggerated when said aloud, speaking them will encourage the other person to claim that quite the opposite is true.

Remember you’re dealing with a person who wants to be appreciated and understood. So use labels to reinforce and encourage positive perceptions and dynamics.

!Chapter 4: Beware “Yes”—Master “No”
Pushing hard for “Yes” doesn’t get a negotiator any closer to a win; it just angers the other side.

For good negotiators, “No” provides a great opportunity for you and the other party to clarify what you really want by eliminating what you don’t want.

“No” is the start of the negotiation, not the end of it.

Great negotiators seek “No” because they know that’s often when the real negotiation begins.

“No” can often mean:

I am not yet ready to agree;
You are making me feel uncomfortable;
I do not understand;
I don’t think I can afford it;
I want something else;
I need more information; or
I want to talk it over with someone else.
Ask solution-based questions: “What about this doesn’t work for you?” “What would you need to make it work?” “It seems like there’s something here that bothers you.”

People have a need to say, “No.” So don’t just hope to hear it at some point; get them to say it early.

There are three kinds of “Yes”:

Confirmation; and
A counterfeit “yes” is one in which your counterpart plans on saying “no” but either feels “yes” is an easier escape route or just wants to keep the conversation going to get more information or some other kind of edge.

A confirmation “yes” is generally innocent, a reflexive response to a black-or-white question; it’s sometimes used to lay a trap but mostly it’s just simple affirmation with no promise of action.

A commitment “yes” is the real deal; it’s a true agreement that leads to action, a “yes” at the table that ends with a signature on the contract. The commitment “yes” is what you want, but the three types sound almost the same so you have to learn how to recognize which one is being used.

Whether you call it “buy-in” or “engagement” or something else, good negotiators know that their job is to gently guide their counterpart to discover their goal as his own.

Using all your skills to create rapport, agreement, and connection with a counterpart is useful, but ultimately that connection is useless unless the other person feels that they are equally as responsible, if not solely responsible, for creating the connection and the new ideas they have.

Though the intensity may differ from person to person, you can be sure that everyone you meet is driven by two primal urges: the need to feel safe and secure, and the need to feel in control. If you satisfy those drives, you’re in the door.

If you’re trying to sell something, don’t start with “Do you have a few minutes to talk?” Instead ask, “Is now a bad time to talk?” Either you get “Yes, it is a bad time” followed by a good time or a request to go away, or you get “No, it’s not” and total focus.

As you can see, “No” has a lot of skills:

“No” allows the real issues to be brought forth;
“No” protects people from making—and lets them correct—ineffective decisions;
“No” slows things down so that people can freely embrace their decisions and the agreements they enter into;
“No” helps people feel safe, secure, emotionally comfortable, and in control of their decisions; and
“No” moves everyone’s efforts forward.
Another way to force “No” in a negotiation is to ask the other party what they don’t want.

If despite all your efforts, the other party won’t say “No,” you’re dealing with people who are indecisive or confused or who have a hidden agenda.

Saying “No” makes the speaker feel safe, secure, and in control, so trigger it. That’s why “Is now a bad time to talk?” is always better than “Do you have a few minutes to talk?”

Sometimes the only way to get your counterpart to listen and engage with you is by forcing them into a “No.” That means intentionally mislabeling one of their emotions or desires or asking a ridiculous question—like, “It seems like you want this project to fail”—that can only be answered negatively.

If a potential business partner is ignoring you, contact them with a clear and concise “No”-oriented question that suggests that you are ready to walk away. “Have you given up on this project?” works wonders.

!Chapter 5: Trigger The Two Words That Immediately Transform Any Negotiation
Before you convince your counterpart to see what you’re trying to accomplish, you have to say the things to them that will get them to say, “That’s right.”

“That’s right” is better than “yes.” Strive for it. Reaching “that’s right” in a negotiation creates breakthroughs.

Use a summary to trigger a “that’s right.” The building blocks of a good summary are a label combined with paraphrasing. Identify, rearticulate, and emotionally affirm “the world according to …”

!Chapter 6: Bend Their Reality
The most powerful word in negotiations is “Fair.”

As a negotiator, you should strive for a reputation of being fair. Your reputation precedes you. Let it precede you in a way that paves success.

Know the emotional drivers and you can frame the benefits of any deal in language that will resonate.

To get real leverage in a tough negotiation, you have to persuade the other party that they have something to lose if the deal falls through.

Here’s how:

1. Anchor Their Emotions

To bend your counterpart’s reality, you have to start with the basics of empathy. Start out with an accusation audit acknowledging all of their fears. By anchoring their emotions in preparation for a loss, you inflame the other side’s loss aversion so that they’ll jump at the chance to avoid it.

2. Let The Other Guy Go First … Most of The Time

Going first is not necessarily the best thing when it comes to negotiating price.

Let the other side anchor monetary negotiations.

By letting them anchor you also might get lucky: Chris has experienced many negotiations when the other party’s first offer was higher than the closing figure he had in mind. If he’d gone first they would have agreed and he would have left with either the winner’s curse or buyer’s remorse, those gut-wrenching feelings that he’d overpaid or undersold.

You’ve got to be careful when you let the other party anchor. You have to prepare yourself psychically to withstand the first offer. If the other guy’s a pro, a shark, he’s going to go for an extreme anchor in order to bend your reality.

3. Establish a Range

When confronted with naming your terms or price, counter by recalling a similar deal which establishes your “ballpark,” albeit the best possible ballpark you wish to be in. Instead of saying, “I’m worth $110,000,” say, “At top places like X Corp., people in this job get between $130,000 and $170,000.” That gets your point across without moving the other party into a defensive position. And it gets him thinking at higher levels.

4. Pivot to Non-Monetary Terms

One of the easiest ways to bend your counterpart’s reality to your point of view is to pivot to non-monetary terms.

After you’ve anchored them high, you can make your offer seem reasonable by offering things that aren’t important to you but could be important to them. Or if their offer is low you could ask for things that matter more to you than them.

5. When You Do Talk Numbers, Use Odd Ones

Numbers that end in 0 inevitably feel like temporary placeholders, guesstimates that you can easily be negotiated off of. But anything you throw out that sounds less rounded—say, $37,263—feels like a figure that you came to as a result of a thoughtful calculation.

6. Surprise with a Gift

You can get your counterpart into a mood of generosity by staking an extreme anchor and then, after their inevitable first rejection, offering them a wholly unrelated surprise gift.

How to Negotiate a Better Salary

i. Be Pleasantly Persistent on Non-Salary Terms

Pleasant persistence is a kind of emotional anchoring that creates empathy with the boss and builds the right psychological environment for constructive discussion.

The more you talk about non-salary terms, the more likely you are to hear the full range of their options. For example, asking for extra vacation.

ii. Salary Terms without Success Terms is Russian Roulette

Once you’ve negotiated a salary, make sure to define success for your position—as well as metrics for your next raise.

iii. Spark Their Interest in Your Success and Gain an Unofficial Mentor

When you are selling yourself to a manager, sell yourself as more than a body for a job; sell yourself, and your success, as a way they can validate their own intelligence and broadcast it to the rest of the company.

Make sure they know you’ll act as a flesh-and-blood argument for their importance. Once you’ve bent their reality to include you as their ambassador, they’ll have a stake in your success.

Ask: “What does it take to be successful here?”

Don’t compromise. Meeting halfway often leads to bad deals for both sides.

Approaching deadlines entice people to rush the negotiating process and do impulsive things that are against their best interests.

The F-word—“Fair”—is an emotional term people usually exploit to put the other side on the defensive and gain concessions. When your counterpart drops the F-bomb, don’t get suckered into a concession. Instead, ask them to explain how you’re mistreating them.

You can bend your counterpart’s reality by anchoring his starting point. Before you make an offer, emotionally anchor them by saying how bad it will be. When you get to numbers, set an extreme anchor to make your “real” offer seem reasonable, or use a range to seem less aggressive.

People will take more risks to avoid a loss than to realize a gain. Make sure your counterpart sees that there is something to lose by inaction.

!Chapter 7: Create the Illusion of Control
When you go into a store, instead of telling the salesclerk what you “need,” you can describe what you’re looking for and ask for suggestions. Then, once you’ve picked out what you want, instead of hitting them with a hard offer, you can just say the price is a bit more than you budgeted and ask for help with one of the greatest-of-all-time calibrated questions: “How am I supposed to do that?”

Calibrated questions have the power to educate your counterpart on what the problem is rather than causing conflict by telling them what the problem is.

You should use calibrated questions early and often, and there are a few that you will find that you will use at the beginning of nearly every negotiation. “What is the biggest challenge you face?” is one of those questions.

Here are some other great standbys that Chris uses in almost every negotiation, depending on the situation:

What about this is important to you?
How can I help to make this better for us?
How would you like me to proceed?
What is it that brought us into this situation?
How can we solve this problem?
What’s the objective? / What are we trying to accomplish here?
How am I supposed to do that?
Calibrated questions make your counterpart feel like they’re in charge, but it’s really you who are framing the conversation.

Even with all the best techniques and strategy, you need to regulate your emotions if you want to have any hope of coming out on top.

The first and most basic rule of keeping your emotional cool is to bite your tongue.

Another simple rule is, when you are verbally assaulted, is to disarm your counterpart by asking a calibrated question.

When people feel that they are not in control, they adopt what psychologists call a hostage mentality. That is, in moments of conflict they react to their lack of power by either becoming extremely defensive or lashing out.

Avoid questions that can be answered with “Yes” or tiny pieces of information. These require little thought and inspire the human need for reciprocity; you will be expected to give something back.

Ask calibrated questions that start with the words “How” or “What.” By implicitly asking the other party for help, these questions will give your counterpart an illusion of control and will inspire them to speak at length, revealing important information.

Don’t ask questions that start with “Why” unless you want your counterpart to defend a goal that serves you. “Why” is always an accusation, in any language.

Calibrate your questions to point your counterpart toward solving your problem. This will encourage them to expend their energy on devising a solution.

There is always a team on the other side. If you are not influencing those behind the table, you are vulnerable.

!Chapter 8: Guarantee Execution
Negotiators have to be “decision architects.” They have to dynamically and adaptively design the verbal and nonverbal elements of the negotiation to gain both consent and execution.

“Yes” is nothing without “How.”

With enough of the right “How” questions, you can read and shape the negotiating environment in such a way that you’ll eventually get to the answer you want to hear.

The trick to “How” questions is that they are gentle and graceful ways to say “No” and guide your counterpart to develop a better solution—your solution. A gentle How/No invites collaboration and leaves your counterpart with a feeling of having been treated with respect.

Besides saying “No,” the other key benefit of asking “How?” is that it forces your counterpart to consider and explain how a deal will be implemented.

By making your counterparts articulate implementation in their own words, your carefully calibrated “How” questions will convince them that the final solution is their idea. And that’s crucial. People always make more effort to implement a solution when they think it’s theirs.

There are two key questions you can ask to push your counterparts to think they are defining success their way: “How will we know we’re on track?” and “How will we address things if we find we’re off track?” When they answer, you summarize their answers until you get a “That’s right.” Then you’ll know they’ve bought in.

Be wary of two telling signs that your counterpart doesn’t believe the idea is theirs. When they say, “You’re right,” it’s often a good indicator they are not vested in what is being discussed.

When you push for implementation and they say, “I’ll try,” be aware: it really means, “I plan to fail.”

When you hear either of the above, dive back in with calibrated “How” questions until they define the terms of successful implementation in their own voice.

Follow up by summarizing what they have said to get a “That’s right.”

You have to beware of “behind the table” or “Level II” players—that is, parties that are not directly involved but who can help implement agreements they like and block ones they don’t.

Below are tactics, tools, and methods for using subtle verbal and nonverbal forms of communication to understand and modify the mental states of your counterpart.

i. The 7-38-55 Percent Rule

Albert Mehrabian created the 7-38-55 rule. That is, only 7 percent of a message is based on the words while 38 percent comes from the tone of voice and 55 percent from the speaker’s body language and face.

Pay very close attention to tone and body language to make sure they match up with the literal meaning of the words. If they don’t align, it’s quite possible that the speaker is lying or at least unconvinced.

When someone’s tone of voice or body language does not align with the meaning of the words they say, use labels to discover the source of the incongruence.

Recognizing the incongruence and gently dealing with it through a label will make the other party feel respected. Consequently, your relationship of trust will be improved.

ii. The Rule of Three

The Rule of Three is simply getting the other guy to agree to the same thing three times in the same conversation.

The first time they agree to something or give you a commitment, that’s No. 1. For No. 2 you might label or summarize what they said so they answer, “That’s right.” And No. 3 could be a calibrated “How” or “What” question about implementation that asks them to explain what will constitute success, something like “What do we do if we get off track?”

The three times might also just be the same calibrated question phrased three different ways, like “What’s the biggest challenge you faced? What are we up against here? What do you see as being the most difficult thing to get around?”

iii. The Pinocchio Effect

In a study of the components of lying, Harvard Business School professor Deepak Malhotra and his coauthors found that, on average, liars use more words than truth tellers and use far more third-person pronouns. They start talking about him, her, it, one, they, and their rather than I, in order to put some distance between themselves and the lie. Moreover, they discovered that liars tend to speak in more complex sentences in an attempt to win over their suspicious counterparts.

The researchers dubbed this the Pinocchio Effect because, just like Pinocchio’s nose, the number of words grew along with the lie.

The more in love your counterpart is with “I,” “me,” and “my” the less important they are. Conversely, the harder it is to get a first-person pronoun out of a negotiator’s mouth, the more important they are.

iv. The Chris Discount

People are often tired of being hammered with their own name. So, take a different tack and use your own name.

Doing so creates the dynamic of “forced empathy.” It makes the other side see you as a person.

How to Get Your Counterparts to Bid Against Themselves

The best way to get your counterparts to lower their demands is to say “No” using “How” questions. These indirect ways of saying “No” won’t shut down your counterpart the way a blunt, pride-piercing “No” would.

Chris has found that you can usually express “No” four times before actually saying the word.

The first step in the “No” series is the old standby: “How am I supposed to do that?” You have to deliver it in a deferential way, so it becomes a request for help. Properly delivered, it invites the other side to participate in your dilemma and solve it with a better offer.

After that, some version of “Your offer is very generous, I’m sorry, that just doesn’t work for me” is an elegant second way to say “No.”

This well-tested response avoids making a counteroffer, and the use of “generous” nurtures your counterpart to live up to the word. The “I’m sorry” also softens the “No” and builds empathy.

Then you can use something like “I’m sorry but I’m afraid I just can’t do that.” It’s a little more direct, and the “can’t do that” does great double duty. By expressing an inability to perform, it can trigger the other side’s empathy toward you. “I’m sorry, no” is a slightly more succinct version for the fourth “No.” If delivered gently, it barely sounds negative at all.

If you have to go further, of course, “No” is the last and most direct way. Verbally, it should be delivered with a downward inflection and a tone of regard; it’s not meant to be “NO!”

Is the “Yes” real or counterfeit? Test it with the Rule of Three: use calibrated questions, summaries, and labels to get your counterpart to reaffirm their agreement at least three times. It’s really hard to repeatedly lie or fake conviction.

A person’s use of pronouns offers deep insights into his or her relative authority. If you’re hearing a lot of “I,” “me,” and “my,” the real power to decide probably lies elsewhere. Picking up a lot of “we,” “they,” and “them,” it’s more likely you’re dealing directly with a savvy decision maker keeping his options open.

!Chapter 9: Bargain Hard
When you feel you’re being dragged into a haggle, you can detour the conversation to the non-monetary issues that make any final price work. You can do this directly by saying, in an encouraging tone of voice, “Let’s put price off to the side for a moment and talk about what would make this a good deal.” Or you could go at it more obliquely by asking, “What else would you be able to offer to make that a good price for me?” And if the other side pushes you to go first, wriggle from his grip. Instead of naming a price, allude to an incredibly high number that someone else might charge.

When a negotiation is far from resolution and going nowhere fast, you need to shake things up and get your counterpart out of their rigid mindset.

When you want to flip a dubious counterpart to your side, ask them, “Why would you do that?” but in a way that the “that” favors you.

If you are working to lure a client away from a competitor, you might say, “Why would you ever do business with me? Why would you ever change from your existing supplier? They’re great!” In these questions, the “Why?” coaxes your counterpart into working for you.

Using the first-person singular pronoun is another great way to set a boundary without escalating into confrontation. When you say, “I’m sorry, that doesn’t work for me,” the word “I” strategically focuses your counterpart’s attention onto you long enough for you to make a point.

When you want to counteract unproductive statements from your counterpart, you can say, “I feel ___ when you ___ because ___,” and that demands a time-out from the other person.

Once you’re clear on what your bottom line is, you have to be willing to walk away. Never be needy for a deal.

The person across the table is never the problem. The unsolved issue is.

The Ackerman Model

The Ackerman model is an offer-counteroffer method. But it is an effective system for beating the usual lackluster bargaining dynamic, which has the predictable result of meeting in the middle.

The systematized and easy-to-remember process has only six steps:

Set your target price (your goal);
Set your first offer at 65 percent of your target price;
Calculate three raises of decreasing increments (to 85, 95, and 100 percent);
Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer;
When calculating the final amount, use precise, non-round numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight; and
On your final number, throw in a non-monetary item (that they probably don’t want) to show you’re at your limit.
Identify your counterpart’s negotiating style. Once you know whether they are Accommodator, Assertive, or Analyst, you’ll know the correct way to approach them.

Prepare an Ackerman plan. Before you head into the weeds of bargaining, you’ll need a plan including extreme anchors, calibrated questions, and well-defined offers. Remember: 65, 85, 95, 100 percent. Decreasing raises and ending on non-round numbers will get your counterpart to believe that he’s squeezing you for all you’re worth when you’re really getting to the number you want.

!Chapter 10: Find The Black Swan
Every case is new. We must let what we know—our known knowns—guide us but not blind us to what we do not know.

As a negotiator, you should always be aware of which side, at any given moment, feels they have the most to lose if negotiations collapse.

To get leverage, persuade your counterpart that they have something real to lose if the deal falls through.

At a taxonomic level, there are three kinds of leverage: Positive, Negative, and Normative.

Positive leverage is quite simply your ability as a negotiator to provide—or withhold—things that your counterpart wants. When they say that, you have power.

Negative leverage is what most civilians picture when they hear the word “leverage.” It’s a negotiator’s ability to make his counterpart suffer.

Normative leverage is using the other party’s norms and standards to advance your position. If you can show inconsistencies between their beliefs and their actions, you have normative leverage.

Discovering the Black Swans that give you normative valuation can be as easy as asking what your counterpart believes and listening openly. You want to see what language they speak and speak it back to them.

In their book Negotiation Genius, Harvard Business School professors Deepak Malhotra and Max H. Bazerman provide a look at the common reasons negotiators mistakenly call their counterparts crazy.

Mistake #1: They Are Ill-Informed

People operating with incomplete information appear crazy to those who have different information.

Your job, when faced with someone like this in a negotiation, is to discover what they do not know and supply that information.

Mistake #2: They Are Constrained

In any negotiation where your counterpart is acting wobbly, there exists a distinct possibility that they have things they can’t do but aren’t eager to reveal.

Mistake #3: They Have Other Interests

These people are simply complying with needs and desires that you don’t yet understand, what the world looks like to them based on their own set of rules.

The Best Techniques for Flushing Out Black Swans—and Exploiting Them.

Let what you know—your known knowns—guide you but not blind you. Every case is new, so remain flexible and adaptable.

Black Swans are leverage multipliers. Remember the three types of leverage: positive (the ability to give someone what they want); negative (the ability to hurt someone); and normative (using your counterpart’s norms to bring them around).

Work to understand the other side’s “religion.” Digging into worldviews inherently implies moving beyond the negotiating table and into the life, emotional and otherwise, of your counterpart. That’s where Black Swans live.

Exploit the similarity principle. People are more apt to concede to someone they share a cultural similarity with, so dig for what makes them tick and show that you share common ground.
M4-S3 - Session audio 1:
<<AudioFragment /static/files/MBI/Module%204/M4-S3-1.mp3>>
M4-S3 - Session audio 2:
<<AudioFragment /static/files/MBI/Module%204/M4-S3-2.mp3>>
M4-S3 - Session audio 3:
<<AudioFragment /static/files/MBI/Module%204/M4-S3-3.mp3>>

/Exploring value opportinities, aims:
* To provide a framework for mapping and exploring value streams based on selected technologies
* To identify new focussed opportunities to follow up
* To support the process of managing technology for value in the firm, providing input to technology strategy, planning, exploitation
* To support communication between technological and commercial function in the business
Three questions in the process:
# Where do we want to go?
# Where are we now?
# How can we get there?
* Roadmaps combine:
** Market
** Product
** Technology
** R&D Programmes
** Resources
* Use an iterative and funneling approach
* Benefits of roadmapping
** Facility integration of new ideas
** Support for company strategy and planning processes
** Identify new business opportuinities for exploiting technology
** Provide top level information on the technological direction
** Support communication and co-operation with the business
** Identify gaps in market & technical knowledge
** Support sourcing decisions, resource allocations, risk management and exploiting decisions
** High level integrated planning & control
* Planning - customisation checklist
** Context
** Roadmap architecture
** Process
** Participants
** Workshop scheduling
** Integration: system, process & information
** Preparatory work
* Roadmap exercise:
** First cut roadmap
*** Participatory
*** Quick
*** Exploratory
*** Creative
*** Active
*** Capture, structure and share knowledge
**** know-why
**** know-what
**** know-how
**** know-when
**** know-who
**** know-where
* Use post-its
** Compare agile
* Use voting to converge ideas and reach consensus on priorities
* Towards a business case, one strategic landscape enables sharing & capture diverse perspectives
* Multi functional group:
** Establish links between R&D, Technologies, Products and Markets.
* Roadmaps integrate different views:
** [[SWOT Analysis]]
** [[Linking grids]]
** [[STEEP]]
** [[Porters Five Forces|M4-S3 - Session notes - Porter Five Forces]]
** [[Scenario Analysis]]
** [[Portfolio Management]]
|Author|Eric Shulman|
|Description|Documentation for SnapshotPlugin|
This plugin provides a macro as well as tiddler toolbar commands that creates a file or opens a new browser window containing the //rendered// HTML and CSS style definitions that are being displayed for selected elements of the current document.
As a macro embedded in tiddler content:
<<snapshot print label:text prompt:text id:elementID|here|viewer|story|all|ask>
*''print'' //(optional)//<br>when present, causes the snapshot output to be directed to a new browser tab/window instead of saving it to a file.  In addition, the print dialog for that tab/window is automatically invoked.
*''label'' //(optional)//<br>is the text to be displayed for the command link generated by the macro
*''prompt'' //(optional)//<br>is the 'tool tip' message displayed when you mouseover the command link
*''id:...'' //(optional)//<br>specifies the document element to be captured, and can be one of:
**''elementID''<br>is a specific DOM element ID, such as "displayArea", "mainMenu", "contentWrapper", etc.
**''here''<br>the containing tiddler in which the macro (or toolbar command) occurs, including the tiddler title and subtitle (date/time/author) information.
**''viewer''<br>same as ''here'', but omits the tiddler title, subtitle and toolbar elements (i.e., it includes //only// the content of the tiddler)
**''story''<br>selects all currently displayed tiddlers (i.e., the 'story column')
**''all''<br>selects the entire document contents, including page header, main menu and sidebar displays
**''ask''<br>when the snapshot command link is clicked, a droplist is displayed so you can choose from several pre-defined elements: "current tiddler", "story column", or "entire document", or "DOM element ID..."  When DOM element ID is chosen, the droplist is refreshed to show the individual ID's for all currently rendered DOM elements (at least, the ones that have ID's).  For any given DOM element ID, only the portions of the document that are contained //within// the specified DOM element will be transcribed to the resulting snapshot or print output.  
//''NOTE: when no parameters are specified, the macro creates a snapshot file using the containing tiddler as the default element.'' (e.g., equivalent to {{{<<snapshot id:here>>}}}//

The snapshot/print functions can also be embedded as tiddler toolbar commands in [[ViewTemplate]]:
<span class='toolbar' macro='toolbar snapshotSave'></span>
<span class='toolbar' macro='toolbar snapshotPrint'></span>
* when invoked via toolbar commands, the "id:ask" option is automatically applied, and a droplist of elements to choose from is displayed.

Please note that, although the snapshot/print that is created using the HTML+CSS of the displayed content, ''there is NO javascript code'' written into the snapshot.  As a result, the snapshot only ''reproduces the //appearance// of the displayed content, allowing you to //view// or //print// the result'', but does not permit you to interact with it in other ways.

For example, even simple processing (such as mouseover highlighting) will not function from the snapshot.  You can't click a TiddlyLink to open other tiddlers, because A) there is no code that handles the click and B) there is no underlying 'storeArea' (and core code) to retrieve and render anything!  You also can't use ANY command links, since these also require javascript code (and the core) to operate. 
{{{<<snapshot>>}}}: <<snapshot>>
{{{<<snapshot id:mainMenu>>}}}: <<snapshot id:mainMenu>>
{{{<<snapshot print id:story>>}}}: <<snapshot print id:story>>
{{{<<snapshot print id:ask>>}}}: <<snapshot print id:ask>>
{{{<<snapshot print noCSS id:viewer>>}}}: <<snapshot print noCSS id:viewer>>
<<option chkSnapshotHTMLOnly>> output HTML only (omit CSS)
2009.10.12 1.3.0 added multi-file story snapshot
2009.09.25 1.2.1 in getSnap(), added META tag to set UTF-8 encoding for I18N support
2009.06.04 1.2.0 added handling in getSnap() so current form input values are shown in snapshots
2008.05.16 1.1.1 added try..catch around addEvent/removeEvent calls to avoid error in Opera
2008.04.28 1.1.0 removed 'viewerHTML' from 'ask' droplist and replaced with toggle for "output HTML only".  Removed 'noCSS' parameter and replaced with config.options.chkSnapshotHTMLOnly global option.  Added "select a tiddler..." to 'ask' droplist
2008.04.24 1.0.1 in saveSnap(), convert output from Unicode to UTF before passing to saveFile().  Fixes "unknown name" error in IE's file.Write() function.
2008.04.21 1.0.0 initial release - derived from [[NewDocumentPlugin]] with many improvements, including: "ask for ID" using droplist of available DOM elements, use "<base href=...>" for correctly resolving image references, wrap 'viewer only' output in class="tiddler viewer" for proper application of inherited CSS styles, snapshotSave and snapshotPrint tiddler toolbar command definitions, and more...

__Excerpted revisions from [[NewDocumentPlugin]] (obsolete)__
2008.04.20 1.8.0 added support for 'noCSS' and 'viewer' params for alternative snapshot output
2007.03.30 1.7.0 added support for "print" param as alternative for "snap".  When "print" is used, the filename is ignored and ouput is directed to another browser tab/window, where the print dialog is then automatically triggered.
2007.03.30 1.6.1 added support for "here" keyword for current tiddler elementID and "prompt:text" param for specifying tooltip text
2006.10.18 1.5.0 new optional param for 'snap'... specify alternative DOM element ID (default is still "contentWrapper").  Based on a suggestion from Xavier Verges.
2006.03.09 1.2.0 added special "snap" filter parameter to generate and write "snapshot" files containing static HTML+CSS for currently rendered document.
2006.02.03 1.0.0 Created.
|''Description''|toolbar commands for drafting and publishing|
|''Author''|Jon Robson|
|''Requires''|TiddlySpaceConfig TiddlySpaceFilters|
Provides changeToPrivate, changeToPublic and saveDraft commands
Provides TiddlySpacePublisher macro.
{{{<<TiddlySpacePublisher type:private>>}}} make lots of private tiddlers public.
{{{<<TiddlySpacePublisher type:public>>}}} make lots of public tiddlers public.
* add public argument?
(function($) {

var tiddlyspace = config.extensions.tiddlyspace;
var originMacro = config.macros.tiddlerOrigin;

tiddlyspace.getTiddlerStatusType = function(tiddler) {
	var isShadow = store.isShadowTiddler(tiddler.title);
	var exists = store.tiddlerExists(tiddler.title);
	if(isShadow && !exists) {
		return "shadow";
	} else if(!exists) {
		return "missing";
	} else {
		var types = ["private", "public"];
		var type = "external";
		for(var i = 0; i < types.length; i++) {
			var t = types[i];
			type =[t](tiddler) ? t : type;
		if( {
			type = type == "private" ? "unsyncedPrivate" : "unsyncedPublic";
		return type;

var cmd = config.commands.publishTiddler = {
	text: "make public",
	tooltip: "Change this private tiddler into a public tiddler",
	errorMsg: "Error publishing %0: %1",

	isEnabled: function(tiddler) {
		return !readOnly &&["private"](tiddler);
	handler: function(ev, src, title) {
		var tiddler = store.getTiddler(title);
		if(tiddler) {
			var newBag = cmd.toggleBag(tiddler.fields["server.bag"]);
			this.moveTiddler(tiddler, {
				title: tiddler.fields[""] || tiddler.title,
				fields: { "server.bag": newBag }
	toggleBag: function(bag, to) {
		var newBag;
		if(typeof bag != typeof "") {
			var tiddler = bag;
			bag = tiddler.fields["server.bag"];
		if(bag.indexOf("_private") > -1) { // should make use of endsWith
			to = to ? to : "public";
			newBag = bag.replace("_private", "_" + to);
		} else {
			to = to ? to : "private";
			newBag = bag.replace("_public", "_" + to);
		return newBag;
	copyTiddler: function(title, newTitle, newBag, callback) {
		var original = store.getTiddler(title);
		newTitle = newTitle ? newTitle : title;
		var adaptor = original.getAdaptor();
		var publish = function(original, callback) {
			var tiddler = $.extend(new Tiddler(newTitle), original);
			tiddler.fields = $.extend({}, original.fields, {
				"server.bag": newBag,
				"server.workspace": "bags/%0".format(newBag),
				"": "false"
			delete tiddler.fields["server.title"];
			tiddler.title = newTitle;
			adaptor.putTiddler(tiddler, null, null, callback);
		publish(original, callback);
	moveTiddler: function(tiddler, newTiddler, callback) {
			var info = {
			copyContext: {},
			deleteContext: {}
		var _dirty = store.isDirty();
		var adaptor = tiddler.getAdaptor();
		var newTitle = newTiddler.title;
		var oldTitle = tiddler.title;
		delete tiddler.fields["server.workspace"];
		var oldBag = tiddler.fields["server.bag"];
		var newBag = newTiddler.fields["server.bag"];
		var newWorkspace = "bags/%0".format(newBag);
		cmd.copyTiddler(oldTitle, newTitle, newBag, function(ctx) {
				info.copyContext = ctx;
				var context = {
					tiddler: tiddler,
					workspace: newWorkspace
				tiddler.title = oldTitle; // for cases where a rename occurs
				if(ctx.status) { // only do if a success
					if(oldBag != newBag) {
						adaptor.deleteTiddler(tiddler, context, {}, function(ctx) {
							info.deleteContext = ctx;
							var el;
							if(tiddler) {
								tiddler.fields["server.workspace"] = newWorkspace;
								tiddler.fields["server.bag"] = newBag;
							el = el ? el : story.refreshTiddler(oldTitle, null, true);
							if(oldTitle != newTitle) {
								store.notify(oldTitle, true);
							if(el) {
								story.displayTiddler(el, newTitle);
							if(oldTitle != newTitle) {
							if(callback) {
					} else {
						if(callback) {

var changeToPrivate = config.commands.changeToPrivate = {
	text: "make private",
	tooltip: "turn this public tiddler into a private tiddler",
	isEnabled: function(tiddler) {
		return !readOnly &&["public"](tiddler);
	handler: function(event, src, title) {
		var tiddler = store.getTiddler(title);
		var newBag = cmd.toggleBag(tiddler, "private");
		var newTiddler = { title: title, fields: { "server.bag": newBag }};
		cmd.moveTiddler(tiddler, newTiddler);
config.commands.changeToPublic = cmd;

/* Save as draft command */
var saveDraftCmd = config.commands.saveDraft = {
	text: "save draft",
	tooltip: "Save as a private draft",
	isEnabled: function(tiddler) {
		return changeToPrivate.isEnabled(tiddler);
	getDraftTitle: function(title) {
		var draftTitle;
		var draftNum = "";
		while(!draftTitle) {
			var suggestedTitle = "%0 [draft%1]".format(title, draftNum);
			if(store.getTiddler(suggestedTitle)) {
				draftNum = !draftNum ? 2 : draftNum + 1;
			} else {
				draftTitle = suggestedTitle;
		return draftTitle;
	createDraftTiddler: function(title, gatheredFields) {
		var tiddler = store.getTiddler(title);
		var draftTitle = saveDraftCmd.getDraftTitle(title);
		var draftTiddler = new Tiddler(draftTitle);
		if(tiddler) {
			$.extend(true, draftTiddler, tiddler);
		} else {
			$.extend(draftTiddler.fields, config.defaultCustomFields);
		for(var fieldName in gatheredFields) {
			if(TiddlyWiki.isStandardField(fieldName)) {
				draftTiddler[fieldName] = gatheredFields[fieldName];
			} else {
				draftTiddler.fields[fieldName] = gatheredFields[fieldName];
		var privateBag = tiddlyspace.getCurrentBag("private");
		var privateWorkspace = tiddlyspace.getCurrentWorkspace("private");
		draftTiddler.title = draftTitle;
		draftTiddler.fields[""] = title;
		draftTiddler.fields["server.workspace"] = privateWorkspace;
		draftTiddler.fields["server.bag"] = privateBag;
		draftTiddler.fields["server.title"] = draftTitle;
		draftTiddler.fields[""] = "false";
		delete draftTiddler.fields["server.etag"];
		return draftTiddler;
	handler: function(ev, src, title) {
		var tiddler = store.getTiddler(title); // original tiddler
		var tidEl = story.getTiddler(title);
		var uiFields = {};
		story.gatherSaveFields(tidEl, uiFields);
		var tid = saveDraftCmd.createDraftTiddler(title, uiFields);
		tid = store.saveTiddler(tid.title, tid.title, tid.text, tid.modifier,
			new Date(), tid.tags, tid.fields);
		autoSaveChanges(null, [tid]);
		story.displayTiddler(src, title);
		story.displayTiddler(src, tid.title);

var macro = config.macros.TiddlySpacePublisher = {
	locale: {
		title: "Batch Publisher",
		changeStatusLabel: "Make %0",
		noTiddlersText: "No tiddlers to publish",
		changeStatusPrompt: "Make all the selected tiddlers %0.",
		description: "Change tiddlers from %0 to %1 in this space"

	listViewTemplate: {
		columns: [
			{ name: "Selected", field: "Selected", rowName: "title", type: "Selector" },
			{ name: "Tiddler", field: "tiddler", title: "Tiddler", type: "Tiddler" },
			{ name: "Status", field: "status", title: "Status", type: "WikiText" }
		rowClasses: []

	changeStatus: function(tiddlers, status, callback) { // this is what is called when you click the publish button
		var publicBag;
		for(var i = 0; i < tiddlers.length; i++) {
			var tiddler = tiddlers[i];
			var newTiddler = {
				title: tiddler.title,
				fields: { "server.bag": cmd.toggleBag(tiddler, status) }
			cmd.moveTiddler(tiddler, newTiddler, callback);
	getMode: function(paramString) {
		var params = paramString.parseParams("anon")[0];
		var status = params.type ?
			(["public", "private"].contains(params.type[0]) ? params.type[0] : "private") :
		var newStatus = status == "public" ? "private" : "public";
		return [status, newStatus];
	handler: function(place, macroName, params, wikifier, paramString, tiddler) {
		var wizard = new Wizard();
		var locale = macro.locale;
		var status = macro.getMode(paramString);
		wizard.createWizard(place, locale.title);
		wizard.addStep(macro.locale.description.format(status[0], status[1]),
			'<input type="hidden" name="markList" />');
		var markList = wizard.getElement("markList");
		var listWrapper = $("<div />").addClass("batchPublisher").
			attr("refresh", "macro").attr("macroName", macroName).
			attr("params", paramString)[0];
		markList.parentNode.insertBefore(listWrapper, markList);
		$.data(listWrapper, "wizard", wizard);
	getCheckedTiddlers: function(listWrapper, titlesOnly) {
		var tiddlers = [];
		$(".chkOptionInput[rowName]:checked", listWrapper).each(function(i, el) {
			var title = $(el).attr("rowName");
			if(titlesOnly) {
			} else {
		return tiddlers;
	refresh: function(listWrapper) {
		var checked = macro.getCheckedTiddlers(listWrapper, true);
		var paramString = $(listWrapper).empty().attr("params");
		var wizard = $.data(listWrapper, "wizard");
		var locale = macro.locale;
		var params = paramString.parseParams("anon")[0];
		var publishCandidates = [];
		var status = macro.getMode(paramString);
		var pubType = status[0];
		var newPubType = status[1];
		var tiddlers = params.filter ? store.filterTiddlers(params.filter[0]) :
		var enabled = [];
		for(var i = 0; i < tiddlers.length; i++) {
			var tiddler = tiddlers[i];
			var title = tiddler.title;
			if(!tiddler.tags.contains("excludePublisher") && title !== "SystemSettings") {
				publishCandidates.push({ title: title, tiddler: tiddler, status: pubType});
			if(checked.contains(title)) {

		if(publishCandidates.length === 0) {
			createTiddlyElement(listWrapper, "em", null, null, locale.noTiddlersText);
		} else {
			var listView = ListView.create(listWrapper, publishCandidates, macro.listViewTemplate);
			wizard.setValue("listView", listView);
			var btnHandler = function(ev) {
				var tiddlers = macro.getCheckedTiddlers(listWrapper);
				var callback = function(status) {
					$(".batchPublisher").each(function(i, el) {
				macro.changeStatus(tiddlers, newPubType, callback);
				caption: locale.changeStatusLabel.format(newPubType),
				tooltip: locale.changeStatusPrompt.format(newPubType),
				onClick: btnHandler
			$(enabled.join(",")).attr("checked", true); // retain what was checked before


The Value Proposition Designer is like a plug-in tool to the Business Model Canvas. It helps you design, test, and build your company’s Value Proposition to Customers in a more structured and thoughtful way, just like the Canvas assists you in the business model design process
The [[Value process framework]] captures the three main levers that influence a company's [[Value creation]] and [[Value capturing]]. These three levers are:
# [[Perceived use value]]
# [[Costs]] for creating this value
# [[Competitive discount]], which reduces the customers willingness to pay and reduces profit.

In order to create a [[Sustainable Competitive Advantage]] a company needs to fulfill the following requirements with respect to value creation and value capturing:
* Value creation:
** A company must create value by providing customers with a perceived use value that exceeds the production costs.
** Only if this value is greater than the value created by the strongest competitor does the company have the opportunity to provide a higher consumer surplus while still capturing value in the form of economic profit.
* Value capturing:
** Furthermore: in order to limit the amount of [[Competitive discount]], the consumer surplus needs to unique. This uniqueness can be achieved, for instance, through exceptional quality, a strong brand image or fast time to market. Only uniquess leads to a reduction in the number of competitors.
In order to sustain the competitive advantage over time it is also important that this consumer surplus is imperfectly imitable or substitutable.

The [[Integration of porters five forces and the value process framework]] gives a complete picture of companies inherent potential to capture profit.

Part of [[Strategies for E-Business]]
Capability objections are objections where the buyer sees the value of solving the problem but raises doubt about the capability, capacity or genuiness of the sellers solution. There are two kinds of capability objections:
# Capabilty ''can't'' objections
## These kinds of objections occur when you do not have the capability to meet a need that is of high value to the prospect
# Capability ''Can'' objections
** These objections occur when you do have the capability but the buyer does not recognize it yet.
!Strategy for 'Can't' objections
# Acknowlegde that you can't meet the need
# Increase the value of the capabilities that you ''do'' have
!Strategy for 'Can' objections
# Acknowledge the legitmacy of the buyers concern
# Demonstrate your capability
# Show proof, where nessary. Provide sources of proof. (See also: [[Social proof]]

The only metrics that entrepreneurs should invest energy in collecting are those that help them make decisions. Unfortunately, the majority of data available in off-the-shelf analytics packages are what I call Vanity Metrics. They might make you feel good, but they don’t offer clear guidance for what to do.
The table belows gives a Summary of the Determinants of Option Value:
|Factor|Call Value|Put Value|h
|Increase in Stock Price|Increases|Decreases|
|Increase in Strike Price|Decreases|Increases|
|Increase in variance of underlying asset|Increases|Increases|
|Increase in time to expiration|Increases|Increases|
|Increase in interest rates|Increases|Decreases|
|Increase in dividends paid|Decreases|Increases|
  Value innovation is making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. It is about:
  1) Creating
  2) Raising
  3) Reducing
  4) Eliminating
- factors that the industry accepts as a given. Be careful not to over-design an offering (authors call this //Christmas Tree Management//
+ factors that the industry accepts as a given. Be careful not to over-design an offering (authors call this //Christmas Tree Management//. An example was given for a Dutch bank trying to be good at everything:
?                                                                                                                                         ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

+ <<image /static/files/MBI/Module%2011/strategycanvas.png width:600>>
At GE appraisal in the [[Jack Welsch]] days was done according to a table similar to below with a forced ranking:

|Execution & Delivery|Always|Most Often|Inconsistent|
|Stretch Goals|Always|Some|Rarely|
|Potential For Growth|High/Moderate|High/Moderate|Low|
|Accountability|Always|Most Often|Some|
|Quality of Work|High|High|Inconsistent|
|Passion|Always|Most Often|Inconsistent|
|Constructive Style|Always|Most Often|Some|
|Openness To Feedback|Always|Most Often|Some|

Sales executives are always looking for ingenious ways to motivate their teams. They stage grand kickoff meetings to announce new bonus programs. They promise exotic trips to rainmakers. When business is slow, they hold sales contests. If sales targets are missed, they blame the sales compensation plan and start from square one.

!! A Performance Curve for the Sales Force
Accounting for individual differences raises the odds that a compensation plan will stimulate the performance of all types of salespeople. In this article we will discuss how companies can do this to deliver greater returns on investment and shift their sales-performance curve upward.

<<image /static/files/Sales/R1207D_A_LG.gif width:500>>

* ''Core performers'' usually represent the largest part of the sales force, and companies cannot make their numbers if they’re not in the game. Here are some proven strategies for keeping them there.
* ''Laggards'' the low-performing group in a sales force is usually heterogeneous: It may include new hires in need of training and senior salespeople who have become complacent, as well as people who are simply less talented and motivated than their colleagues. Most laggard groups we’ve observed have members whose performance can improve if the right incentives are in place.
* ''Stars'' Since stars represent the most efficient portion of a company’s performance curve, incentive plans should favor them. Yet in many companies sales commission rates are capped and winner-take-all prize structures dominate the incentives.

|''Core Performers''|Multi-tier targets|Core performers striving to achieve triple-tier targets significantly outsold core performers given only two tiers. By contrast, multi-tier targets did not motivate stars and laggards as much: No significant differences in performance were found for those segments|
||Prizes|The key is to offer gifts (not cash) for the lower-level prizes that can be seen as equal, or even superior, to the top-level prizes on some dimension. This approach won’t work if the gifts offered at lower performance tiers are simply lower-grade versions of those at the top tier. The lower-level prize must have some quality that the higher-level one does not|
|''Laggards''|Pace-setting bonuses|Frequent (quarterly) bonuses. There is no downside to including quarterly bonuses. They help laggards contribute to the bottom line without detracting from the performance of other groups|
||Natural social pressure|Having a high-quality pipeline of new sales talent naturally puts social pressure on lowperforming salespeople. Salespeople in districts with a bench player perform approximately 5% better than those without one. The greatest increase in performance takes place in the laggard group. In the long run the overall increase in revenue easily outweighs the additional costs associated with hiring bench players.|
|''Stars''|No ceiling on commissions|By eliminating it and making other changes to the compensation plan, a company kept its salespeople motivated and increased revenue|
||Overachievement commissions|Have higher rates that kick in after quotas are met|
||Multiple winners|Multiple winners boost sales effort and performance better than contests with winner-take-all prize structures.Prizes should be awarded as the proportion of stars increases. ''//Executives should offer at least as many prizes as there are stars in a sales force//''. Increasing the number of prizes in a contest increases the chances that a laggard or a core performer will win a prize in place of a star, which motivates stars to work harder.|
! Shift Your Performance Curve Upward
Sales compensation plans that take into account the different needs of different salespeople—and that are based on real evidence rather than assumptions—will ensure that your sales department gets a significantly higher return on its investments.
<<image /static/files/Sales/R1207D_B.gif width:400>>
!Session Notes
[[M16-S1 - What is your value proposition]]
[[M16-S2 - Sales Methodologies]]
[[M16-S3 - The psychology of selling]]
[[M16-S4 - Consultative selling]]

 'tiddler.tags.contains("Article") &&  tiddler.tags.contains ("M16")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 
!Terms introduced in this block
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M16")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>

I’ve been on both sides of the table, but here are the hard questions I’d ask my deal lead at a firm from which I’m considering taking venture investment:

1. Is this a core investment or something in which you have interest but would walk away from if things get difficult?

2. Does this investment fit with your firm’s thesis or primarily you own worldview? If you are expending significant relationship capital to get this done, how will this impact us if things get challenging?

3. On how many boards do you sit? Do you really have enough time to impact the outcome of this investment through your involvement and engagement?

4. Is there a culture of providing bridge capital to a series of objective milestones to get to a better point to raise our next round of financing?

5. Do you have the necessary external relationships to help us build the syndicate for our next round of financing? Will you be supportive even if we choose another firm and not your own to be the next round lead?

In [[Marketing Strategy and Organization: Building Sustainable Business]] a [[Strategy]] is defined to be a collection of strategic projects that together bring the company to the place where it wants to be.
Type the text for 'New Tiddler'
In [[The Personal MBA]] //Perceived Value// determines how much your customers will be willing to pay for what you are offering. The higher the perceived value of your  offering, the more you will be able to charge for it.

Key Points:
* Perceived value determines how much your customers will be willing to pay for your offer.
* The less attractive the End Result, and the bigger the involvement it takes to the user to get the benefit, the lower the perceived value will be.
* Create forms of value with the least end-user effort and best End Result possible to have the highest perceived value.

Questions for Consideration:
* Which forms have the highest perceived value?
* How can you remove effort or frustration for your customers?
* How much would they be willing to pay for those additional benefits?

In the gfk roper consumer styles the //homebodies// are characterized by:
!Underlying values
* Desire for security
* Friends and family are most important
* Like comfort
!Consumption pattern
* Products and services which offer comfort
* Accepted [[Brand]]s

<<image /static/files/MBI/Module%2011/homebodies.png width:300>>
ACOP stands for <<tiddler [[The accounting concept of profit]]>>
<<YouTubeFragment u6XAPnuFjJc>>
Unique risks coupled to the investment opportunity:
* The Investor can //in principle// diversify:
** R&D portfolio's
* Experts can estimate / assess unique risk
** Better risk management generates a [[Competitive Advantage]]

Market risks
* Cannot be diversified
* Provides alternative investment opportunities
* Is the lowest risk you can possibly bear
* Simultaneity: The discount rate depends on the standard deviation (risk) of the project. But value of the project depends on the discount rate again.
* Solution: Certainty equivalent version ([[Certainty Equivalent Cash Flow]]) of CAPM
* CAPM may not be the right model to value expected returns (ongoing academic debate)
* CAPM is not inconsistent with real options valuations as the CAPM can be used to value the underlying 
* Required rate of return for a new venture:

$\LARGE r_{proj}$ = $\LARGE R_F + \beta_{proj}(r_M - r_F) + \text{Effort} + \text{Illiquidity}$

Startup Metrics for Pirates (FOWA/Miami, Feb 2009)
''Franchising is the practice of using another firm's successful business model''.

The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a (transitive) verb.[1] For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

In many respects, franchising is similar to [[Licensing]], although franchising tends to involve longer-term commitments than licensing. Franchising is basically a specialized form of licensing in which the franchiser not only sells intangible property to the franchisee (normally a trademark), but also insists that the franchisee agree to abide by strict rules as to how it does business. The franchiser will also often assist the franchisee to run the business on an ongoing basis. As with licensing, the franchiser typically receives a royalty payment, which amounts to some percentage of the franchisee's revenues. Whereas licensing is pursued primarily by manufacturing firms, franchising is employed primarily by service firms.12 McDonald's is a good example of a firm that has grown by using a franchising strategy. McDonald's has strict rules as to how franchisees should operate a restaurant. These rules extend to control over the menu, cooking methods, staffing policies, and design and location of a restaurant. McDonald's also organizes the supply chain for its franchisees and provides management training and financial assistance.13

The advantages of franchising as an entry mode are very similar to those of licensing.
* The firm is ''relieved of many of the costs and risks of opening a foreign market on its own''
** Instead, the franchisee typically assumes those costs and risks. This creates a good incentive for the franchisee to build profitable operation as quickly as possible. Thus, using a franchising strategy, a service firm can build up a global presence quickly and at a relatively low cost and risk, as McDonald's has.

The disadvantages are less pronounced than in the case of licensing:
* Franchising ''may inhibit the firm's ability to take profits out of one country'' to support competitive attacks in another.
* A more significant disadvantage of franchising is ''quality control''.
** The foundation of franchising arrangements is that the firm's brand name conveys a message to consumers about the quality of the firm's product. Thus, a business traveler checking in at a Hilton International hotel in Hong Kong can reasonably expect the same quality of room, food, and service that she would receive in New York. The Hilton name is supposed to guarantee consistent product quality. This presents a problem in that foreign franchisees may not be as concerned about quality as they are supposed to be, and the result of poor quality can extend beyond lost sales in a particular foreign market to a decline in the firm's worldwide reputation. For example, if the business traveler has a bad experience at the Hilton in Hong Kong, she may never go to another Hilton hotel and may urge her colleagues to do likewise. The geographical distance of the firm from its foreign franchisees, however, can make poor quality difficult to detect. In addition, the sheer numbers of franchisees--in the case of McDonald's, tens of thousands--can make quality control difficult. Due to these factors, quality problems may persist.

One way around this disadvantage is:
* To set up a subsidiary in each country in which the firm expands.
** The subsidiary might be wholly owned by the company or a joint venture with a foreign company. The subsidiary assumes the rights and obligations to establish franchises throughout the particular country or region. McDonald's, for example, establishes a master franchisee in many countries. Typically, this master franchisee is a joint venture between McDonald's and a local firm. The proximity and the smaller number of franchises to oversee reduce the quality control challenge. In addition, because the subsidiary (or master franchisee) is at least partly owned by the firm, the firm can place its own managers in the subsidiary to help ensure that it is doing a good job of monitoring the franchises. This organizational arrangement has proven very satisfactory for McDonald's, Kentucky Fried Chicken, Hilton International, and others. 

The Becker–DeGroot–Marschak method (BDM), named after Gordon M. Becker, Morris H. DeGroot and Jacob Marschak for the 1964 Behavioral Science paper, "Measuring Utility by a Single-Response Sequential Method" is an incentive-compatible procedure used in experimental economics to measure willingness to pay (WTP).[1]

Today there are several variations of the BDM methodology. In one common way, the subject formulates a bid. The bid is compared to a price determined by a random number generator. If the subject's bid is greater than the price, he or she pays the price and receives the item being auctioned. If the subject's bid is lower than the price, he or she pays nothing and receives nothing.

In an effort to “broaden” what defines an Android accessory, the toolkit allows you to create a network of devices from one master controller including appliances, sensors, and home entertainment system. You will be able to, for example, control your lights and thermostat via WiFi, USB, Bluetooth, and, in the future, another protocol that will work with anything electrical like appliances, lights, and thermostats.
<img src="/static/files/MBI/Module%207/standard-normal-distribution.gif" width=350>

Area is calculated from the mean 0. To calculate the full probability add 0.5 for the area of the left curve of the distribution:
Rows are tenths
Columns are hunderds
Look up of 1.28 is colored differently to illustrate this point:

			<table border="0" align="center" cellspacing="2" cellpadding="3" width="450">
   				<th bgcolor="#003366"><font color="#FFFFFF" class="Larger">Z</font></th>
								<th bgcolor="#FF99FF">0.00</th>

								<th bgcolor="#FF99FF">0.01</th>
								<th bgcolor="#FF99FF">0.02</th>
								<th bgcolor="#FF99FF">0.03</th>
								<th bgcolor="#FF99FF">0.04</th>
								<th bgcolor="#FF99FF">0.05</th>
								<th bgcolor="#FF99FF">0.06</th>

								<th bgcolor="#FF99FF">0.07</th>
								<th bgcolor="#FF99FF">0.08</th>
								<th bgcolor="#FF99FF">0.09</th>
   			    <th bgcolor="#FF99FF">0.0</th>
								<td bgcolor="#FFCCFF">0.0000</td>

								<td bgcolor="#FFCCFF">0.0040</td>
								<td bgcolor="#FFCCFF">0.0080</td>
								<td bgcolor="#FFCCFF">0.0120</td>
								<td bgcolor="#FFCCFF">0.0160</td>
								<td bgcolor="#FFCCFF">0.0199</td>
								<td bgcolor="#FFCCFF">0.0239</td>

								<td bgcolor="#FFCCFF">0.0279</td>
								<td bgcolor="#FFCCFF">0.0319</td>
								<td bgcolor="#FFCCFF">0.0359</td>
   				<th bgcolor="#FF99FF">0.1</th>
								<td bgcolor="#FFCCFF">0.0398</td>

								<td bgcolor="#FFCCFF">0.0438</td>
								<td bgcolor="#FFCCFF">0.0478</td>
								<td bgcolor="#FFCCFF">0.0517</td>
								<td bgcolor="#FFCCFF">0.0557</td>
								<td bgcolor="#FFCCFF">0.0596</td>
								<td bgcolor="#FFCCFF">0.0636</td>

								<td bgcolor="#FFCCFF">0.0675</td>
								<td bgcolor="#FFCCFF">0.0714</td>
								<td bgcolor="#FFCCFF">0.0753</td>
   				<th bgcolor="#FF99FF">0.2</th>
								<td bgcolor="#FFCCFF">0.0793</td>

								<td bgcolor="#FFCCFF">0.0832</td>
								<td bgcolor="#FFCCFF">0.0871</td>
								<td bgcolor="#FFCCFF">0.0910</td>
								<td bgcolor="#FFCCFF">0.0948</td>
								<td bgcolor="#FFCCFF">0.0987</td>
								<td bgcolor="#FFCCFF">0.1026</td>

								<td bgcolor="#FFCCFF">0.1064</td>
								<td bgcolor="#FFCCFF">0.1103</td>
								<td bgcolor="#FFCCFF">0.1141</td>
   				<th bgcolor="#FF99FF">0.3</th>
								<td bgcolor="#FFCCFF">0.1179</td>

								<td bgcolor="#FFCCFF">0.1217</td>
								<td bgcolor="#FFCCFF">0.1255</td>
								<td bgcolor="#FFCCFF">0.1293</td>
								<td bgcolor="#FFCCFF">0.1331</td>
								<td bgcolor="#FFCCFF">0.1368</td>
								<td bgcolor="#FFCCFF">0.1406</td>

								<td bgcolor="#FFCCFF">0.1443</td>
								<td bgcolor="#FFCCFF">0.1480</td>
								<td bgcolor="#FFCCFF">0.1517</td>
   				<th bgcolor="#FF99FF">0.4</th>
								<td bgcolor="#FFCCFF">0.1554</td>

								<td bgcolor="#FFCCFF">0.1591</td>
								<td bgcolor="#FFCCFF">0.1628</td>
								<td bgcolor="#FFCCFF">0.1664</td>
								<td bgcolor="#FFCCFF">0.1700</td>
								<td bgcolor="#FFCCFF">0.1736</td>
								<td bgcolor="#FFCCFF">0.1772</td>

								<td bgcolor="#FFCCFF">0.1808</td>
								<td bgcolor="#FFCCFF">0.1844</td>
								<td bgcolor="#FFCCFF">0.1879</td>
   				<th bgcolor="#FF99FF">0.5</th>
								<td bgcolor="#FFCCFF">0.1915</td>

								<td bgcolor="#FFCCFF">0.1950</td>
								<td bgcolor="#FFCCFF">0.1985</td>
								<td bgcolor="#FFCCFF">0.2019</td>
								<td bgcolor="#FFCCFF">0.2054</td>
								<td bgcolor="#FFCCFF">0.2088</td>
								<td bgcolor="#FFCCFF">0.2123</td>

								<td bgcolor="#FFCCFF">0.2157</td>
								<td bgcolor="#FFCCFF">0.2190</td>
								<td bgcolor="#FFCCFF">0.2224</td>
   				<th bgcolor="#FF99FF">0.6</th>
								<td bgcolor="#FFCCFF">0.2257</td>

								<td bgcolor="#FFCCFF">0.2291</td>
								<td bgcolor="#FFCCFF">0.2324</td>
								<td bgcolor="#FFCCFF">0.2357</td>
								<td bgcolor="#FFCCFF">0.2389</td>
								<td bgcolor="#FFCCFF">0.2422</td>
								<td bgcolor="#FFCCFF">0.2454</td>

								<td bgcolor="#FFCCFF">0.2486</td>
								<td bgcolor="#FFCCFF">0.2517</td>
								<td bgcolor="#FFCCFF">0.2549</td>
   				<th bgcolor="#FF99FF">0.7</th>
								<td bgcolor="#FFCCFF">0.2580</td>

								<td bgcolor="#FFCCFF">0.2611</td>
								<td bgcolor="#FFCCFF">0.2642</td>
								<td bgcolor="#FFCCFF">0.2673</td>
								<td bgcolor="#FFCCFF">0.2704</td>
								<td bgcolor="#FFCCFF">0.2734</td>
								<td bgcolor="#FFCCFF">0.2764</td>

								<td bgcolor="#FFCCFF">0.2794</td>
								<td bgcolor="#FFCCFF">0.2823</td>
								<td bgcolor="#FFCCFF">0.2852</td>
   				<th bgcolor="#FF99FF">0.8</th>
								<td bgcolor="#FFCCFF">0.2881</td>

								<td bgcolor="#FFCCFF">0.2910</td>
								<td bgcolor="#FFCCFF">0.2939</td>
								<td bgcolor="#FFCCFF">0.2967</td>
								<td bgcolor="#FFCCFF">0.2995</td>
								<td bgcolor="#FFCCFF">0.3023</td>
								<td bgcolor="#FFCCFF">0.3051</td>

								<td bgcolor="#FFCCFF">0.3078</td>
								<td bgcolor="#FFCCFF">0.3106</td>
								<td bgcolor="#FFCCFF">0.3133</td>
   				<th bgcolor="#FF99FF">0.9</th>
								<td bgcolor="#FFCCFF">0.3159</td>

								<td bgcolor="#FFCCFF">0.3186</td>
								<td bgcolor="#FFCCFF">0.3212</td>
								<td bgcolor="#FFCCFF">0.3238</td>
								<td bgcolor="#FFCCFF">0.3264</td>
								<td bgcolor="#FFCCFF">0.3289</td>
								<td bgcolor="#FFCCFF">0.3315</td>

								<td bgcolor="#FFCCFF">0.3340</td>
								<td bgcolor="#FFCCFF">0.3365</td>
								<td bgcolor="#FFCCFF">0.3389</td>
   				<th bgcolor="#FF99FF">1.0</th>
								<td bgcolor="#FFCCFF">0.3413</td>

								<td bgcolor="#FFCCFF">0.3438</td>
								<td bgcolor="#FFCCFF">0.3461</td>
								<td bgcolor="#FFCCFF">0.3485</td>
								<td bgcolor="#FFCCFF">0.3508</td>
								<td bgcolor="#FFCCFF">0.3531</td>
								<td bgcolor="#FFCCFF">0.3554</td>

								<td bgcolor="#FFCCFF">0.3577</td>
								<td bgcolor="#FFCCFF">0.3599</td>
								<td bgcolor="#FFCCFF">0.3621</td>
   				<th bgcolor="#FF99FF">1.1</th>
								<td bgcolor="#FFCCFF">0.3643</td>

								<td bgcolor="#FFCCFF">0.3665</td>
								<td bgcolor="#FFCCFF">0.3686</td>
								<td bgcolor="#FFCCFF">0.3708</td>
								<td bgcolor="#FFCCFF">0.3729</td>
								<td bgcolor="#FFCCFF">0.3749</td>
								<td bgcolor="#FFCCFF">0.3770</td>

								<td bgcolor="#FFCCFF">0.3790</td>
								<td bgcolor="#FFCCFF">0.3810</td>
								<td bgcolor="#FFCCFF">0.3830</td>
   				<th bgcolor="#FF99FF">1.2</th>
								<td bgcolor="#FFCCFF">0.3849</td>

								<td bgcolor="#FFCCFF">0.3869</td>
								<td bgcolor="#FFCCFF">0.3888</td>
								<td bgcolor="#FFCCFF">0.3907</td>
								<td bgcolor="#FFCCFF">0.3925</td>
								<td bgcolor="#FFCCFF">0.3944</td>
								<td bgcolor="#FFCCFF">0.3962</td>

								<td bgcolor="#FFCCFF">0.3980</td>
								<td bgcolor="#FF00FF">0.3997</td>
								<td bgcolor="#FFCCFF">0.4015</td>
   				<th bgcolor="#FF99FF">1.3</th>
								<td bgcolor="#FFCCFF">0.4032</td>

								<td bgcolor="#FFCCFF">0.4049</td>
								<td bgcolor="#FFCCFF">0.4066</td>
								<td bgcolor="#FFCCFF">0.4082</td>
								<td bgcolor="#FFCCFF">0.4099</td>
								<td bgcolor="#FFCCFF">0.4115</td>
								<td bgcolor="#FFCCFF">0.4131</td>

								<td bgcolor="#FFCCFF">0.4147</td>
								<td bgcolor="#FFCCFF">0.4162</td>
								<td bgcolor="#FFCCFF">0.4177</td>
   				<th bgcolor="#FF99FF">1.4</th>
								<td bgcolor="#FFCCFF">0.4192</td>

								<td bgcolor="#FFCCFF">0.4207</td>
								<td bgcolor="#FFCCFF">0.4222</td>
								<td bgcolor="#FFCCFF">0.4236</td>
								<td bgcolor="#FFCCFF">0.4251</td>
								<td bgcolor="#FFCCFF">0.4265</td>
								<td bgcolor="#FFCCFF">0.4279</td>

								<td bgcolor="#FFCCFF">0.4292</td>
								<td bgcolor="#FFCCFF">0.4306</td>
								<td bgcolor="#FFCCFF">0.4319</td>
   				<th bgcolor="#FF99FF">1.5</th>
								<td bgcolor="#FFCCFF">0.4332</td>

								<td bgcolor="#FFCCFF">0.4345</td>
								<td bgcolor="#FFCCFF">0.4357</td>
								<td bgcolor="#FFCCFF">0.4370</td>
								<td bgcolor="#FFCCFF">0.4382</td>
								<td bgcolor="#FFCCFF">0.4394</td>
								<td bgcolor="#FFCCFF">0.4406</td>

								<td bgcolor="#FFCCFF">0.4418</td>
								<td bgcolor="#FFCCFF">0.4429</td>
								<td bgcolor="#FFCCFF">0.4441</td>
   				<th bgcolor="#FF99FF">1.6</th>
								<td bgcolor="#FFCCFF">0.4452</td>

								<td bgcolor="#FFCCFF">0.4463</td>
								<td bgcolor="#FFCCFF">0.4474</td>
								<td bgcolor="#FFCCFF">0.4484</td>
								<td bgcolor="#FFCCFF">0.4495</td>
								<td bgcolor="#FFCCFF">0.4505</td>
								<td bgcolor="#FFCCFF">0.4515</td>

								<td bgcolor="#FFCCFF">0.4525</td>
								<td bgcolor="#FFCCFF">0.4535</td>
								<td bgcolor="#FFCCFF">0.4545</td>
   				<th bgcolor="#FF99FF">1.7</th>
								<td bgcolor="#FFCCFF">0.4554</td>

								<td bgcolor="#FFCCFF">0.4564</td>
								<td bgcolor="#FFCCFF">0.4573</td>
								<td bgcolor="#FFCCFF">0.4582</td>
								<td bgcolor="#FFCCFF">0.4591</td>
								<td bgcolor="#FFCCFF">0.4599</td>
								<td bgcolor="#FFCCFF">0.4608</td>

								<td bgcolor="#FFCCFF">0.4616</td>
								<td bgcolor="#FFCCFF">0.4625</td>
								<td bgcolor="#FFCCFF">0.4633</td>
   				<th bgcolor="#FF99FF">1.8</th>
								<td bgcolor="#FFCCFF">0.4641</td>

								<td bgcolor="#FFCCFF">0.4649</td>
								<td bgcolor="#FFCCFF">0.4656</td>
								<td bgcolor="#FFCCFF">0.4664</td>
								<td bgcolor="#FFCCFF">0.4671</td>
								<td bgcolor="#FFCCFF">0.4678</td>
								<td bgcolor="#FFCCFF">0.4686</td>

								<td bgcolor="#FFCCFF">0.4693</td>
								<td bgcolor="#FFCCFF">0.4699</td>
								<td bgcolor="#FFCCFF">0.4706</td>
   				<th bgcolor="#FF99FF">1.9</th>
								<td bgcolor="#FFCCFF">0.4713</td>

								<td bgcolor="#FFCCFF">0.4719</td>
								<td bgcolor="#FFCCFF">0.4726</td>
								<td bgcolor="#FFCCFF">0.4732</td>
								<td bgcolor="#FFCCFF">0.4738</td>
								<td bgcolor="#FFCCFF">0.4744</td>
								<td bgcolor="#FFCCFF">0.4750</td>

								<td bgcolor="#FFCCFF">0.4756</td>
								<td bgcolor="#FFCCFF">0.4761</td>
								<td bgcolor="#FFCCFF">0.4767</td>
   				<th bgcolor="#FF99FF">2.0</th>
								<td bgcolor="#FFCCFF">0.4772</td>

								<td bgcolor="#FFCCFF">0.4778</td>
								<td bgcolor="#FFCCFF">0.4783</td>
								<td bgcolor="#FFCCFF">0.4788</td>
								<td bgcolor="#FFCCFF">0.4793</td>
								<td bgcolor="#FFCCFF">0.4798</td>
								<td bgcolor="#FFCCFF">0.4803</td>

								<td bgcolor="#FFCCFF">0.4808</td>
								<td bgcolor="#FFCCFF">0.4812</td>
								<td bgcolor="#FFCCFF">0.4817</td>
   				<th bgcolor="#FF99FF">2.1</th>
								<td bgcolor="#FFCCFF">0.4821</td>

								<td bgcolor="#FFCCFF">0.4826</td>
								<td bgcolor="#FFCCFF">0.4830</td>
								<td bgcolor="#FFCCFF">0.4834</td>
								<td bgcolor="#FFCCFF">0.4838</td>
								<td bgcolor="#FFCCFF">0.4842</td>
								<td bgcolor="#FFCCFF">0.4846</td>

								<td bgcolor="#FFCCFF">0.4850</td>
								<td bgcolor="#FFCCFF">0.4854</td>
								<td bgcolor="#FFCCFF">0.4857</td>
   				<th bgcolor="#FF99FF">2.2</th>
								<td bgcolor="#FFCCFF">0.4861</td>

								<td bgcolor="#FFCCFF">0.4864</td>
								<td bgcolor="#FFCCFF">0.4868</td>
								<td bgcolor="#FFCCFF">0.4871</td>
								<td bgcolor="#FFCCFF">0.4875</td>
								<td bgcolor="#FFCCFF">0.4878</td>
								<td bgcolor="#FFCCFF">0.4881</td>

								<td bgcolor="#FFCCFF">0.4884</td>
								<td bgcolor="#FFCCFF">0.4887</td>
								<td bgcolor="#FFCCFF">0.4890</td>
   				<th bgcolor="#FF99FF">2.3</th>
								<td bgcolor="#FFCCFF">0.4893</td>

								<td bgcolor="#FFCCFF">0.4896</td>
								<td bgcolor="#FFCCFF">0.4898</td>
								<td bgcolor="#FFCCFF">0.4901</td>
								<td bgcolor="#FFCCFF">0.4904</td>
								<td bgcolor="#FFCCFF">0.4906</td>
								<td bgcolor="#FFCCFF">0.4909</td>

								<td bgcolor="#FFCCFF">0.4911</td>
								<td bgcolor="#FFCCFF">0.4913</td>
								<td bgcolor="#FFCCFF">0.4916</td>
   				<th bgcolor="#FF99FF">2.4</th>
								<td bgcolor="#FFCCFF">0.4918</td>

								<td bgcolor="#FFCCFF">0.4920</td>
								<td bgcolor="#FFCCFF">0.4922</td>
								<td bgcolor="#FFCCFF">0.4925</td>
								<td bgcolor="#FFCCFF">0.4927</td>
								<td bgcolor="#FFCCFF">0.4929</td>
								<td bgcolor="#FFCCFF">0.4931</td>

								<td bgcolor="#FFCCFF">0.4932</td>
								<td bgcolor="#FFCCFF">0.4934</td>
								<td bgcolor="#FFCCFF">0.4936</td>
   				<th bgcolor="#FF99FF">2.5</th>
								<td bgcolor="#FFCCFF">0.4938</td>

								<td bgcolor="#FFCCFF">0.4940</td>
								<td bgcolor="#FFCCFF">0.4941</td>
								<td bgcolor="#FFCCFF">0.4943</td>
								<td bgcolor="#FFCCFF">0.4945</td>
								<td bgcolor="#FFCCFF">0.4946</td>
								<td bgcolor="#FFCCFF">0.4948</td>

								<td bgcolor="#FFCCFF">0.4949</td>
								<td bgcolor="#FFCCFF">0.4951</td>
								<td bgcolor="#FFCCFF">0.4952</td>
   				<th bgcolor="#FF99FF">2.6</th>
								<td bgcolor="#FFCCFF">0.4953</td>

								<td bgcolor="#FFCCFF">0.4955</td>
								<td bgcolor="#FFCCFF">0.4956</td>
								<td bgcolor="#FFCCFF">0.4957</td>
								<td bgcolor="#FFCCFF">0.4959</td>
								<td bgcolor="#FFCCFF">0.4960</td>
								<td bgcolor="#FFCCFF">0.4961</td>

								<td bgcolor="#FFCCFF">0.4962</td>
								<td bgcolor="#FFCCFF">0.4963</td>
								<td bgcolor="#FFCCFF">0.4964</td>
   				<th bgcolor="#FF99FF">2.7</th>
								<td bgcolor="#FFCCFF">0.4965</td>

								<td bgcolor="#FFCCFF">0.4966</td>
								<td bgcolor="#FFCCFF">0.4967</td>
								<td bgcolor="#FFCCFF">0.4968</td>
								<td bgcolor="#FFCCFF">0.4969</td>
								<td bgcolor="#FFCCFF">0.4970</td>
								<td bgcolor="#FFCCFF">0.4971</td>

								<td bgcolor="#FFCCFF">0.4972</td>
								<td bgcolor="#FFCCFF">0.4973</td>
								<td bgcolor="#FFCCFF">0.4974</td>
   				<th bgcolor="#FF99FF">2.8</th>
								<td bgcolor="#FFCCFF">0.4974</td>

								<td bgcolor="#FFCCFF">0.4975</td>
								<td bgcolor="#FFCCFF">0.4976</td>
								<td bgcolor="#FFCCFF">0.4977</td>
								<td bgcolor="#FFCCFF">0.4977</td>
								<td bgcolor="#FFCCFF">0.4978</td>
								<td bgcolor="#FFCCFF">0.4979</td>

								<td bgcolor="#FFCCFF">0.4979</td>
								<td bgcolor="#FFCCFF">0.4980</td>
								<td bgcolor="#FFCCFF">0.4981</td>
   				<th bgcolor="#FF99FF">2.9</th>
								<td bgcolor="#FFCCFF">0.4981</td>

								<td bgcolor="#FFCCFF">0.4982</td>
								<td bgcolor="#FFCCFF">0.4982</td>
								<td bgcolor="#FFCCFF">0.4983</td>
								<td bgcolor="#FFCCFF">0.4984</td>
								<td bgcolor="#FFCCFF">0.4984</td>
								<td bgcolor="#FFCCFF">0.4985</td>

								<td bgcolor="#FFCCFF">0.4985</td>
								<td bgcolor="#FFCCFF">0.4986</td>
								<td bgcolor="#FFCCFF">0.4986</td>
   				<th bgcolor="#FF99FF">3.0</th>
								<td bgcolor="#FFCCFF">0.4987</td>

								<td bgcolor="#FFCCFF">0.4987</td>
								<td bgcolor="#FFCCFF">0.4987</td>
								<td bgcolor="#FFCCFF">0.4988</td>
								<td bgcolor="#FFCCFF">0.4988</td>
								<td bgcolor="#FFCCFF">0.4989</td>
								<td bgcolor="#FFCCFF">0.4989</td>

								<td bgcolor="#FFCCFF">0.4989</td>
								<td bgcolor="#FFCCFF">0.4990</td>
								<td bgcolor="#FFCCFF">0.4990</td>
In [[this|]] presentation (copied locally in pdf: [[here|/static/files/MBI/Other/businessmodels-opensource-en1750.pdf]]) four types of business model for open source strategy are described:
* [[Open source business models: The service model]]
* [[Open source business models: The distribution with added value model]]
* [[Open source business models: The dual licensing model]]
* [[Open source business models: The mutualization model]]

||Offering|Value proposition|h
|[[Service|Open source business models: The service model]]|Support, Helpdesk|Tests, Certifications,Patches|
|[[Added value packaging|Open source business models: The distribution with added value model]]|Integration of different packages, Test and easy deployement|Tests and guarantees|
|[[Dual licensing|Open source business models: The dual licensing model]]|Development of new features. Free version of the software|Commercial version with guarantees, support and patches]]|
|[[Mutualization|Open source business models: The mutualization model]]|Raw source code or product for free|Customisation of specific needs, Support|
* Introduction to the course
* Dimensions of business innovation
Prepare case: - From A(pples) to Z(oom lenses): [[Extending the boundaries of multichannel retailing at|M8-S1 - Case -]] (UK) – case study # 1 in the textbook –
* Chapters 1, 2 and 3 of the textbook:
* [[Mohanbir Sawhney, Robert C. Wolcott, and Inigo Arroniz, “The twelve different ways for companies to innovate”|/static/files/MBI/Module%208/61695-12WaysToInnovate.pdf]], MIT Sloan Management Review, Spring 2006, Vol. 47, No. 3, pages 75-81

Questions for the case study:
1. In what ways does expect to benefit from its online initiative?
2. How could Tesco leverage the data it gets from its loyalty “Clubcard” program?
3. Which strategic decisions did Tesco make and how did these decisions contribute to the success of Tesco’s multi-channel retailing business? How about the business model they used for their multi-channel retailing?
4. What recommendations would you make to management in order to sustain the company’s competitive advantage?

[[M8-S1 - Reading - Strategies for E-Business - Chapter 1]]
[[M8-S1 - Reading - Strategies for E-Business - Chapter 2]]
[[M8-S1 - Reading - Strategies for E-Business - Chapter 3 - External Analysis]]

[[M8-S1 - Reading - Sawhney - The 12 Different Ways for Companies to Innovate]]
[[M8-S1 - Session Notes]]
|''Description''|import your Delicious links into TiddlyWiki|
<<deliciousImport username>>
Will import up to 100 (limit set by delicious) of your latest delicious feeds into your TiddlyWiki.
!To Do
*Convert into an adaptor
(function($) {
if (!version.extensions.DeliciousImportPlugin) {
version.extensions.DeliciousImportPlugin = { installed: true };

var importer
importer = config.macros.deliciousImport = {
	loadingMsg: "loading bookmarks...",
	noUserErr: "Error: No username specified.",
	uri: "",
	bookmarkletTemplate: '!URL\n%0\n\n!Description\n%1',
	handler:  function(place, macroName, params, wikifier, paramString, tiddler) {
		var username = params[0] || "";

		var btn = $("<button />").text("Import Bookmarks")
			.click(function() {
				if (username) {
					$('<script type="text/javascript" />')
						.attr("src", importer.uri.format([username,
				} else {
		$('<div class="deliciousResult" />').appendTo(place);
	jsonpCallback: function(bookmarks) {
		var list = $("<ul />");

                var workspace = config.defaultCustomFields['server.workspace'];
                workspace = workspace.replace ("bags/","");
                workspace = workspace.replace ("_public","");

		for(var i = 0; i < bookmarks.length; i++) {
			var bookmark = bookmarks[i];
			var title = bookmark.d;
			var modifier = bookmark.a;
			var tags = bookmark.t;
			var text = importer.bookmarkletTemplate.format([
				bookmark.u, bookmark.n]);
			var fields = {};
			if (config.defaultCustomFields) {
				merge(fields, config.defaultCustomFields);

//                        if (tags.indexOf (workspace) != -1) {

			        if (!store.getTiddler(title)) {
				        store.saveTiddler(title, title, text, modifier, null, tags,
					         fields, false);
//                        }

			var linkPlace = $("<li />").appendTo(list);
			createTiddlyLink(linkPlace[0], title, true);

[[M3-S1 - Reading - Donald N. Suit - Disciplined Entrepreneurship]]
[[M3-S1 - Reading - Kawasaki, G. 2004, The art of the start]]
[[M3-S1 - Session notes]]
[[M3-S1 - Session Notes DJ]]
'Make' refers to a companies decision to manufacture or develop (parts of) a product internally. Reasons favoring 'Make' decisions are:
* ''Strong linkage between activities''
** If it is crucial for a company to tightly integrate different activities of its [[Value chain]] then the activities should be performed internally if it is the only way to achieve such integration.
** Creating these linkages help firms to provide superior customer benefit
* ''Confidentiality of information''
** Sharing information may undermine the firm's competitive advantage.
* ''High [[Transaction costs]]''
**  Transaction costs arise because buyers and sellers have diverging interests: the seller wants the highest price, a buyer wants to keep the costs down.To avoid [[Opportunistic behavior]] a company needs to select the right partner. Factors that determine [[Opportunistic behavior]] are:
*** [[Asset specificity]], refer to investments that need to be made in order to setup a transaction between two or more parties. An example is the creation of an electronic data interchange (EDI) system before electron transactions can be made. After choosing a system there is a vendor lock-in.
*** [[Information asymmetry]], Often a buyer lacks vital information about a seller because it does not know the track record of the seller and vice versa.
In [[Principles of Corporate Finance]] a //Discount Factor// is defined to be the [[Present Value]]  of 1\$ at a defined future date.

Having a vast data set is one thing;   analysing data is quite another. Vogels highlighted a Australian company, Kaggle, which finds data analysis specialists who want to work on your kind of data -- it"s like a dating site for analysts, finding their perfect match. This is big business. For companies such as Soundcloud, Playfish, Etsy, Yelp and Foursquare, 'a hardcore piece of their business is data analytics,' says Vogels.
Cramming in the context of [[Disruptive innovation]] means that an incumbent uses a new technology only to improve the 'old' [[Business Model]]. The full scale of new possiblities of the new technology leaves untapped.
[[M3-S8 - Case - Kummerle, W. - Spotfire: Managing a Multinational Start-up]]
[[M3-S8 - Exercise]]
[[M3-S8 - Session notes]]
There are the following advantages and disadvantages in having an outsource sales force:

|Low cost: Low management overhead|Authority: No authority over the sales people|
|Sales Management: Requires no sales managemet knowledge|No ownership: No ownership of the customer relationship|
|Flexibility: Channels can easily be setup and changed to meet new market conditions|High Long term costs: Expensive is demand is high|
|Low risks: Requires no upfront investment|Recrutement: No choice over the type of sales people|
||Risk: Highly dependend on the distributors|
||Product: Works best with simple products|

Explore possibilities for partnering?
[[Value chain deconstruction]] leads to a development called the de-averaging of competitive advantage. A firm picks out any individual parts of te [[Value chain]] and decides to compete only on one dimension through larger-scale, higher degrees of specialisation while outsourcing other activities.

See also: [[Sustainable Competitive Advantage]]
Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]

Contact Points is a strategic branding process developed by LazenbyBrown. It positions your brand at the forefront of your customers’ minds, inspiring loyalty and affection for your business and what it offers.

Contact Points are where your company and your customers meet, communicate and do business. The day-to-day life of every business presents a long list of instances where these contact points can be improved to deliver a more engaging experience for your audience and a brand elevating opportunity for your business.

Creative thinking is the cornerstone and we explore every conceivable opportunity to present your brand more positively. Our approach is simple, but incredibly effective; look for every instance where your brand interacts with your customers’ world and set about improving it with applied creativity.

The Contact Points process is more than designing a new brochure, website, logo, or other marketing material. It’s about thinking creatively and developing innovative new ways for your business to engage with your customers.

The clever bit.
Each one of us has a preference for how we like to receive information. Some of us are receptive to visual stimulus, or written, or experiential engagement. The Contact Point process considers all of these different human ‘intelligences’ to ensure your brand communication has them covered. The benefit is your entire marketing effort works harder and appeals to a much broader customer base.

Results led.
The process is results driven and the sole intention is to increase the bottom line. Otherwise what’s the point? A bespoke strategy and written vision is developed that will be your route map to achieve goals and hit targets that are set at the beginning of the Contact Points process.
Companies may chooseone of the following four scope strategies:
# //[[Non-segmentation strategy]]//; in this strategy the company defines one [[Customer Value Proposition]] which is marketed to all the selected target segments
# //[[Segmentation strategy]]//; having identified the target segments, the compay devises a different customer value proposition for each of the selected segments
# //[[Niche strategy]]//; the copmany identifies one segment and develops a customer value proposition for that segment.
# //[[Customisation strategy]]//; the offering is adapter for each and every customer, either via pure customisatiom or standardized customisation.
The ''Cost Structure'' compound of the [[Business Model Canvas]] tries to answer the following questions:
* Are there ways we could reduce our cost structure:
** Partnering
** Outsourcing
** New suppliers
** Cost down projects
<img src="/static/files/MBI/Module%208/businessmodelcanvascoststructure.PNG" width=500>

Part of: [[Business Model Canvas]]

Strategy indicating that the firm keeps innovating
We talked about the old manufacturing paradigms where productions was completely based on inventory levels. For each part there was a defined [[Reorder Point (ROP)]] that defined the level at which parts would need to be reordered:

<<image /static/files/MBI/Module%2017/reorderpoint.PNG width:400>>

The bosses in the warehouses ran the show. The worked for a long time because of the following premises:

* There was less variation in choice for products
* Therefore demand was constant and predictable
* Inventory was considered an 'asset' as it was believed all produced materials would be sold eventually

After the market changed from a sellers to a buyers market, inventory based manufacturing did not work out anymore, a next step was [[Material Requirements Planning (MRP)]]. After that the successor was [[Manufacturing Resource Planning (MRP2)]]

<<tiddler [[M17-S6 - Audio - Materials & Inventories]]>>

Interesting site with articles on forecasting financials
Complementary assets are any additional products, services or competences that are need to make an invention profitable. See also [[M5-Strategy-S6 - Summary Teece - Complementary assets]]
Definition of entrepeneurship:

''A process by which individuals either on their own or inside organisations, pursue opportunities without regards to the resources they currently control''

Suggested reading:
"An integrated set of actions" Coyne 1986 Business Horizons

Risk management:
p = chance of success
Q = expected value

Value risk is p * Q.

As p cannot be determined accurately therefor focus on Q. Therefore we should keep the 'Experiments' as small as possible. Investors will make sure that the entrepreneur is at personal risk to loose everything.

Elements of uncertainty:
* What is truly knowable
* What is knowable, but you don't know you know
* What is knowable, but you know you don't know
* What you do know, but with an imprecise estimate
* What you do know, and with a precise estimate of probability

Biggest influence you can have as an entrepreneur is to:
* Stage experiments
* Make sure you ''frequently'' involve others for review.

Disciplined, iterative experimentation
* Hypothesize
** Working hypothesize
** Screen thru "deep" and "wide" knowledge
** Identify the sources of uncertainty
** Key drivers of success
* Assemble required resources
** Design minimalist experiments
** Just-enough resources
** Stay minimalist until the business model has stability
** Outsource
* Experiment
** Partical, Holistics, Stage
** Avoid creep
** Kill failures and learn

"Celebrate failures" in experiments!
Example of asperin versus paracetemol:
* It never broke thru until they removed the 'no side effects (stomach damage)' in the slogan and focused purely on "strongest pain killer available"

Beyond a financial perspective:
* The visionary company understands profit in the way that a biologist undestands oxygen- not the goalof life, but the thing without which there is no life
* However the company describes its motivating principles, profit does not appear as the goal but as the side effect of pursuing those principles
One of the most critical aspects driving customer choice and willingness to pay is the alternative offerings. The next best competitive alternative (NBCA). The NBCA, which is the price the competitor charges for the product or service, defines the reference value for an offering.
In the general framework for mapping resources proposed by Benoit F Leleux the following points are made with respect to depth of pockets:
* Financing resource differ in their ability to fund large projects and/or repeated rounds of financing
** Some will explicitly limit their contribution to a one-shot deal
** Some will want to aim for multiple rounds
* Repeated rounds of financing have the following advantages:
** Lowers the [[Cost of money]] by only raising what is required at a certain stage
* A venture capitalist can be critical to a growth company by providing:
** Access to technology
** Management
** Distribution channels
* Alternative sources of finance  may be more appropriate at later stages, because
** Resources and the costs of financing would be less valuable to the firm

Part of: [[General framework for mapping resources]]
We talked about the [[Puttick grid]], [[The five principles of Agility]] and [[The five principles of lean]]. Listen to the audio below:

<<tiddler [[M17-S1 - Audio - Introduction]]>>
In [[The Personal MBA]] it is mentioned that there are only four methods to increase revenue:

!Key Points:
* There are only four ways to increase revenue:
** Increasing the ''//number of customers//''.
** Increasing ''//average transaction size//''. Try to get each customer to purchase more.
** Increasing the //''frequency of transactions per customer''//. Try to get each customer to purchase more often.
** ''//Raising your prices//''
* Remember the lesson of [[Qualification]]: not every customer is a good customer.
* Always focus the majority of your efforts on serving your ideal customers. The more ideal customers you attract, the better the business.

!Questions for Consideration:
* How can you use the 4 methods to increase your business’ revenue?
* How can you encourage your customers to become more like your ideal customer?

list of product pricing pages so you can easily compare and learn from them
!Object of play
In this simple game, participants use a matrix to generate new ideas or approaches to a solution. Te game gets its name from three heuristics—or rules of thumb—of idea generation:
• A new idea can be generated from remixing the attributes of an existing idea.
• A new idea is best understood by describing its two essential attributes.
• Te more diferent or surprising the combination of the two attributes, the more 
compelling the idea.
!Numbers of players
!Duration of play
15 minutes to 2 hours
!How to play
To set up the game, participants decide on two categories of attributes that will define their matrix. For example, a toy manufacturer might look at its product line by type (vehicles, fgures and dolls, puzzles, and instruments) and by type of play (racing, simulation, construction). Participants use these lists to populate a matrix, creating a grid of new possible combinations.

<<image /static/files/Softskills/Gamestorming/Heuristic.png width:500>>

In playing the game, participants look across the cells for unusual or surprising combinations. Tese become the seeds of new ideas. 
Some combinations that at frst seem absurd are worth examining more closely: a toy that combines puzzle pieces with a racing element might seem counterintuitive, but there are classic games built around that principle. Afer looking across the matrix for 
such combinations, a group may then develop fast prototypes or sketches that explore the possibilities. Consider that GI-Joe came to life conceptually as a “doll for boys.”

//The technique used in this game was documented by Edward Tauber in his 1972 paper, “HIT: Heuristic Ideation Technique, A Systematic Procedure for New Product Search//

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]
In [[How you make the sale]] a buying sign is defined to be a sign from your prospective customer that he or she feels like you have made the case for your product and that your product will solve the problem that brought them in in the first place: Example buying signs are:

* When can you make delivery
* What APR are you charging fro these days?
* Can you deliver it today?
* How much discount do you give for cash?
* How much wiggle room do you have on price?
* I really like this one but i have a better price from another vendor.
* How much will you give me as a trade allowance?
By applying [[The McKinsey 7S Framework]] to the [[Core HR Capabilities]] in a matrix you can asses an organizations maturity with respect to talent management:

||Attract and retain|Develop and grow|Mobilize and deploy|Innovate and change|h
|Shared Values|
|Source of uncertainty|Continent factor|h
|Total cumulative net revenues|Level of demand|
||Adoption speed|
||Likelihood of blocking|
||Likelihood of expropriation|
|Sustainability of revenues|Likelihood of matching|
||Likelihood of imitation|
|Commercialization costs|Likelihood of Infrastructure requirements|
||Parallel technology development|
||[[Co-specialized asset|Co-specialized complementary assets]] requirements|
|Technology development costs|Spillover potential|
||Life cycle effects|

We are an India based young ad agency. Specializing in Guerrilla Marketing and other cost effective campaigns about goofing up things, Ad Heads looks forward to establish a world where Truth and Creativity rule the Advertising Market.
In [[The Personal MBA]] an //insurance// focuses on transferring a risk from purchaser to seller in exchange for a series of payments. It is one of the [[Twelve standard Forms of Value]] (Form of Value #11 of 12). If something bad happens the insurer is responsible for the bill, and if it doesn’t, the insurer keeps the money. Insurance provides value to he purchasers by protecting them from downside risk. Insurance works because its spreads risk over a large number of individuals. Insurers have in avoiding 'bad risks'
!Key Points:
* Insurance focuses on transferring a risk from purchaser to seller in exchange for a series of payments. If something bad happens the insurer is responsible for the bill, and if it doesn’t, the insurer keeps the money.
* The keys are:
** Create a binding legal contract that transfers the risk of a specific bad thing happening from the policy holder to you.
** Estimate the risk of that thing happening using available data.
** Collect the agreed-upon payments over time.
** Pay out legitimate claims upon the policy.
* Insurance protects the purchaser from a downside risk.
* It works because it spreads the risk over a large number of purchasers.
* Insurers focus on maximizing payments while minimizing claims, and must be on the lookout for “bad risks” and fraudulent activity.
!Questions for Consideration:
* Does delivering value via offering insurance make sense for your business idea?
* If so, what do you need to plan for to make it successful?

Pinpointing generic resources to be transformed into specific resources

Part of: [[M6-S5 - Reading - Danneels - The process of technological competence leveraging]]
<<YouTubeFragment Weq_sHxghcg>>
are horizontal e-market places for [[Spot sourcing]] of [[Operating inputs]]. They are most valuable for operating inputs that display high fluctuating in price or demand. For example see

Part of: [[B2B e-commerce matrix]]
Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 10 - Choosing the appropriate strategy for interaction with suppliers]]
The e-business strategy framework consists of the following elements:
* Strategic analysis
** External analysis ([[M8-S1 - Reading - Strategies for E-Business - Chapter 3 - External Analysis]])
** SWOT ([[SWOT Analysis]])
** Internal analysis ([[M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis]])
* Strategic formulation
** Strategy options ([[M8-S2 - Reading - Strategies for E-Business - Chapter 5 - Strategy options]])
** Sustaining Competitive Advantage [[M8-S2 - Reading - Strategies for E-Business - Chapter 6 - Sustaining Competitive Advantage]]
** Exploring new market spaces [[M8-S3 - Reading - Strategies for E-Business - Chapter 7 - Exploiting opportunities of new market spaces in e-Business]]
** Internal organization [[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]
** Interaction with suppliers [[M8-S3 - Reading - Strategies for E-Business - Chapter 10 - Choosing the appropriate strategy for interaction with suppliers]]
** Interaction with users/customers [[M8-S4 - Reading - Strategies for E-Business - Chapter 11 - Choosing the appropriate strategy for interacting with users]]
* Strategy implementation
** Implementation

Part of [[Strategies for E-Business]]
The chapter starts with defining a few terms:

* [[e-Business]]
* [[Electronic Commerce]]
* [[Mobile Electronic Commerce]]

[[Strategy]] is often used interchangeably with [[Tactics]]. Next the chapter discusses [[Surge of a technological revolution]]

Part of [[Strategies for E-Business]]
Questions for Spotfire:
# Should they keep product development in Sweden while the major market was going to be in the US?

Spotfire developed visualization technology:
* It enabled statisticians and data analysts to visualize their data in an intuitive format
* Data mine to extract chemical compounds

Clients among:
* Consumers
* Packaged goods
* Manufacturing
* Banking
* Telecom

The broad approach enable quick learning but made it difficult to add value in a vertical segment (see [[vertical product-marketing strategy]])
Spotfire selected chemistry and biology
Sales trip to the us resulted in \$100K sales in two months
Then they brought in professional management

Product strategy:
* Spotfire Pro
* Spotfire plugins for specific datasets:

* Not readily available: meaning that there where no budgets for visualisation
* Later: Oxford molecular (but let Spotfire develop plugin)
* Netgenics (integrated incompatible databases in a single format)

Market size:
* Chemistry
** 25000 seats, TAM would be about 75000
* Pharmaceutical and biotechnology
* Based on department budgets, first rounds for \$30K.

Challenge for SW companies:
* Setting up effective communication between marketing and R&D
[[How you make the sale]] includes a six step process for making your case:

# ''Restate the problem''
## Be sure to get your prospect customer to agree on the problems and get a feeling for their relative weight.
# ''Revisit each of the problems''
## Deal with each of the problems you identified and in turn make the case that your product or service delivers the best solution for these problems.
# ''Bridge features to benefits''
## Always bridge your product features to benefits that matter to the customer.
# ''Repeat your customer''
## As you make the case that you have solved a portion of the customers problem, repeat anything your customers has said about your solution.
# ''Use [[Tie-down Questions]] to increase commitment''
## Use tie-down questions to ensure that the prospect agrees with each part of the solution as you make your case. Thhe goal is to tie-up all loose ends on one component of the sale before moving to the next component.
# ''Use a [[Trial Close]]''
## Use a trial close to gauge the customers receptivity to the overall case you have made and to flush out any [[Objection]]s
The most important skill you can develop in sales is the ability to ask good questions. Work on this first, and work on it relentlessly. Other important skills will follow more naturally when you’ve gained some skill here.

Questions give you information and help you understand what the problem or the need is. It’s by far the most powerful tool you have and is the prerequisite to everything else in the sales process outside of saying “hello.”

People generally like to talk about what they’re involved in. A few well placed questions can get the conversation rolling, and as it unfolds you get amazingly valuable information that will help you focus on the things that matter to the prospect.

Also, questions are like magic. You ask one question and suddenly the prospect is telling you other things that you never even asked about.  They’ll tell you things about their business, their processes, the other tools they use, how their teams work, when they can spend money…

I promise when you get good at asking questions you’ll be amazed at their power.  In the early stages of a call with good questions, you’ll find the prospect talking a lot more than you. This is good. This focuses your conversation.

[[Six rules about questions]]
In the context of the [[Value process framework]] //''costs''// is defined as the costs
# Purchase of resources (labour, materials, information and capital)
# Costs of combining resources in production, marketing and delivery
# Costs of selling the product
See also: [[Value creation]]
Part of [[Strategies for E-Business]]
In selective specialisation a company has multiple products, each targetted at a specific market segment.

See also:
[[Single segment]]
[[Market specialisation]]
Selective specialisation
[[Product specialisation]]
[[Full market coverage]]
Session purpose
* To understand technology management principles in relation to the exploitation
of new technologies.
* To consider the recipient of the business plan
* To consider the purpose of the business plan
Discussion topics
* What are the typical issues and problems in the exploitation phase of
* Who do we write the business plan for?
* What types of business plans are available?
Session preparation
* [[M4-S1 - Reading - Keven Hindle and Brent Mainprize - A systematic approach to writing and rating Entepreneurial Business Plans]]
* Kubr, T., Marchesi, H. and Ilar, D. (1998) Planning for Growth: Business Planning for a Successful Venture, McKinsey Handbook

[[M4-S1 - Session notes]]
A linear regression line in a scatter dataset can be calculated as follows:

$\large y = ax + b$
$\huge b = \frac {n \sum xy - \sum x \sum y }{n \sum x^2 - (\sum x)^2}$

This is based on regression of the vertical distances of the points in the dataset. If you would draw the line based on the horizontal distances it would be:

$\huge b = \frac {n \sum xy - \sum x \sum y }{n \sum y^2 - (\sum y)^2}$
|Author|Ben Gillies|
|Description|Generate a bookmarklet that will pop up your TiddlyWiki inside a different web page|
To generate the bookmarklet, use:

<<bookmarklet tiddler>>

where tiddler is the (optional) name of the tiddler you want to view.

It will generate a bookmarklet for you that will pop up whichever tiddler you specify from within whichever bag/recipe you call it from from any website.

It will load everything up using the BookmarkletTheme tiddler which has been designed to work in a small space (the side of your screen).

This plugin comprises 4 tiddlers. All of which should be accessible from the recipe/bag you load the bookmarklet in:
*bookmarklet.css (the CSS for the side bar that loads up when you click the bookmarklet)
*BookmarkletPlugin (this tiddler)

Requires TiddlyWeb
{ //# ensure that the plugin is only installed once
    version.extensions.BookmarkletPlugin = { installed: true }

config.macros.bookmarklet = {
    root: {},
	bookmarkletTemplate: '!URL\n{URL}\n\n!Description\n{Description}',
    handler: function(place, macroName, params, wikifier, paramString, tiddler){
        if (!config.defaultCustomFields)
            throw 'defaultCustomFields Not Found. This plugin requires TiddlyWeb to work.';
        var urlBase = config.defaultCustomFields[''];
        urlBase += urlBase[urlBase.length - 1] !== '/' ? '/' : '';
        var path = escape(config.defaultCustomFields['server.workspace']);
        var siteTitle = document.title;
        var escapedSiteTitle = ',%22' + escape(siteTitle) + '%22';

        var tiddler = params.length > 0 ? ',%22' + escape(params[0]) + '%22' : ',null';

        var bookmarklet = 'javascript:(function(){'
            + 'var%20u=%22' + urlBase + '%22;var%20p=%22' + path + '%22;'
            + 'var%20s=document.createElement(%22script%22);'
            + 's.type=%22text/javascript%22;'
            + 's.src=u+p+%22/tiddlers/bookmarklet.js%22;'
            + 'document.body.appendChild(s);'
            + 'var%20lT=setInterval(function(){'
            + 'if(window.openTiddlyWiki){'
            + 'window.openTiddlyWiki(u,p' + tiddler + escapedSiteTitle + ');'
            + 'clearTimeout(lT);'
            + '}},100);})();';

        var link = jQuery('<a/>')
            .attr('href', bookmarklet)
    receiveMessageHandler: function(message) {
        var rootData = config.macros.bookmarklet.root;

        if (/^title:/.test( {
            rootData.title =;
        } else if (/^desc:/.test( {
            rootData.desc =;
        } else if (/^url:/.test( {
            rootData.url =;

        if ((rootData['desc']) && (rootData['title']) && (rootData['url'])) {
            //try and find the tiddler
            //If we got here via query string (aka - a lack of window.postMessage), the page won't have finished loading properly yet.
            //so we have to wait for a bit until we can call story.displayTiddler properly.
            if (!window.postMessage) {
                oldRestart = window.restart;
                window.restart = function() {
                    window.restart = oldRestart;
            } else {
    findTiddler: function(data) {
        var tiddler = store.getTiddler(data['title']);
        if (tiddler) {
            story.displayTiddler(document.body, tiddler.title, 2);

        var tiddlers =['url'], null, 'excludeSearch');
        if (tiddlers.length > 0) {
        //we haven't found it. So create a new one.
        tiddler = new Tiddler(data['title']);
        tiddler.tags = ['bookmark'];
        tiddler.text = config.macros.bookmarklet.bookmarkletTemplate
            .replace('{URL}', data['url'])
            .replace('{Description}', data['desc']);
        tiddler.fields = merge({}, config.defaultCustomFields);
        story.displayTiddler(document.body, tiddler.title, 2);


/****Bookmarklet Theme and switching code****/
(function() {
    if (window.self !== {
        config.options.txtTheme = 'BookmarkletTheme';
        var receiveMessage = config.macros.bookmarklet.receiveMessageHandler;
        if (!window.postMessage) {
            //the message will be coming through the query string #ie6 probably
            var queryObj = {};
            var data = (, 1) === '?') ? :;
            data = data.split('&');
            for (var i=0; i<data.length; i++) {
                var keyValPair = data[i].split('=');
                queryObj[keyValPair[0]] = decodeURIComponent(keyValPair[1]);
            if (queryObj['bookmarkletParentURL']) {
                var message = {};
       = 'url:' + queryObj['bookmarkletParentURL'];
                if (queryObj['bookmarkletParentTitle']) {
           = 'title:' + queryObj['bookmarkletParentTitle'];
                if (queryObj['bookmarkletParentDesc']) {
           = 'desc:' + queryObj['bookmarkletParentDesc'];
        } else {
            if (typeof window.addEventListener != 'undefined') {
                window.addEventListener('message', receiveMessage, false);
            } else if (type.attachEvent != 'undefined') {
                window.attachEvent('onmessage', receiveMessage);
    } else if (config.options.txtTheme == 'BookmarkletTheme') {
        config.options.txtTheme = '';
<<formTiddler [[NewBookTemplate]]>><data>{"ReadingCompleted":true,"Author":"Josh Kaufman","Title":"The Personal MBA","Rating":"***"}</data>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

Terms introduces in this book:

 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("The Personal MBA")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 
In political science and economics, the principal–agent problem or agency dilemma treats the difficulties that arise under conditions of incomplete and asymmetric information when a principal hires an agent, such as the problem of potential moral hazard and conflict of interest, inasmuch as the principal is—presumably—hiring the agent to pursue its, the principal's, interests.

The underlying view of mankind is that managers are:
* Lazy
* Acting in self interest
* Risk avoiding

Shareholders are:
* Risk neutral
* Want to maximize share holder value

<img src="/static/files/MBI/Module%209/Principal_agent.png" width=400>

Part of [[M9-S3 - Costs of organizations]]
See also:
# ''Preparadigmatic stage''
## Early stages of industry development, product designs are fluid, manufacturing processes are loosely and adaptively organized, and generalized capital is used in production. Competition amongst firms manifests itself in competition amongst designs, which are markedly different from each other.
# ''Paradigmatic stage''
## Competition shifts away from design and towards price.
<img src="/static/files/MBI/Module%205/innovationlifecycle.PNG" width="400" />
Also see the  [[Abernathy-Utterback framework]]. ''The existence of a dominant design is of great significance to the distribution of profits its between innovator and follower''. The innovator may have been responsible for the fundamental scientific breakthroughs as well as the basic design of the new product. However, if imitation is relatively easy, imitators may enter the fray, modifying the product in important ways, yet relying on the fundamental designs pioneered by the innovator.
In [[How you make the sale]] Open questions are defined as the "essay" questions of life, they require a paragraph answer. They often begin with words or phrases like:
* "Tell me about?"
* "Explain?"
* "What happened when?"
* "Why?"
* "How?"
* "How do you feel about?"
Open questions are useful because:
* They open up a topic.
* They get lots of information
* They provide a more conversational interaction than a series of closed questions

A disadvantage is that they take a lot of time.

There is a widespread myth that the most important part of building a great company is coming up with a great idea.  This myth is reflected in popular movies and books: someone invents the Post-it note or cocktail umbrellas and becomes an overnight millionaire.  It is also perpetuated by experienced business people who, for the most part, don’t believe it. Venture capitalists often talk about “the best way to pitch your idea” and “honing your elevator pitch.”  Most business schools have business plan contests which are essentially beauty pageants for startup ideas.  All of this reinforces the myth that the idea is primary.

The reality is ideas don’t matter that much.  First of all, in almost all startups, the idea changes – often dramatically – over time. Secondly, ideas are relatively abundant. For every decent idea there are very likely other people who’ve also thought of it, and, surprisingly often, are also actively pitching investors. At an early stage, ideas matter less for their own sake and more insofar as they reflect the creativity and thoughtfulness of the team.

What you should really be focused on when pitching your early stage startup is pitching yourself and your team.  When you do this, remember that a startup is primarily about building something.  Hence the most important aspect of your backgrounds is not the names of the schools you attended or companies you worked at – it’s what you’ve built.  This could mean coding a video game, creating a non-profit organization, designing a website, writing a book, bootstrapping a company – whatever.  The story you should tell is the story of someone who has been building stuff her whole life and now just needs some capital to take it to the next level.

Of course a great way to show you can build stuff is to build a prototype of the product you are raising money for.  This is why so many VCs tell entrepreneurs to “come back when you have a demo.”  They aren’t wondering whether your product can be built – they are wondering whether you can build it.

I’m a computer scientist, and I think of stuff in graphs all the time. If only someone had explained it like that in the first place! It would have saved me so much confusion. So I want to try to fix that. If you like graphs, then by the time you reach the end of this article, you should know everything you need in order to understand the financial statements for a small company/startup (and even calculate them yourself, in a spreadsheet or programming language of your choice).

It is important to understand First Round Financing terms and conditions that your investor will likely use in structuring their investment in your company. There are different nuances to consider depending on whether you are talking with a PIPE Fund , private equity firm, angel investors, or hedge fund investors. These investors tend to use different structures and even have different exit strategies.

You have to think of financing like a chess game. You have to think 2 or 3 steps ahead. Most companies don’t raise venture capital financing in one round without the need to raise financing in two or three subsequent rounds. First round financing therefore becomes important for several reasons.

1. If you give away too much equity (your company’s common or preferred stock) in the first round, you have greatly diluted the ownership position of your Management Team. For instance, if you give up 45%, and you are likely going to need subsequent financing, then the result will probably mean giving up voting control of your company to raise more capital. Of course, if you can convince subsequent round investors to give you Super Preferred voting rights then you may be able to maintain voting control, even if you loose majority ownership in the company.

2. Venture Capital firms typically like to control the whole deal. This means if you give up to much in the first round financing, you will be at their mercy in subsequent rounds. They will take advantage of the fact that you are desperate for more cash for the company. They will also have the deal structured so that if you refuse to give up control in a subsequent financing round, they will be able to take over the company and replace management. They can do this by structuring the financing terms with a number of different “default clauses”. For instance, if you default on a payment or don’t meet certain goals that have been established.

3. Another problem with not understanding all the implications of first round financing is that it can restrict your ability to raise subsequent financing. For instance, let's say you and the investor(s) that provided the initial funding have a disagreement and you decide to go elsewhere for more funding. This second round investor is going to look at all documentation on the initial funding you received and may even want to talk to the first group that funded your company. There may be restrictions on subsequent rounds that scare other investors away. I am talking about restrictions like, rights of first refusal, Security Agreements that run in favor of the initial investors and clauses that prevent you from giving other investors more voting control or a better stock purchase price than the first investor group.

Private Equity firms have highly skilled management teams, advisory boards and armies of lawyers at their disposal. They need to be sure that they have control over subsequent financing rounds so they are not diluted themselves.

You need to have competent legal counsel to advise you during the first round of financing. It is extremely important to know the impact subsequent financing rounds will have on management’s stock ownership and voting control. That is why you need to carefully analyze and understand your first round of financing. If not properly negotiated and understood, it can have devastating effects on your subsequent rounds of financing or your ability to even obtain subsequent financing.
!Raison d'etre
* What is the reason for the existence of the company? Is our company mission realistic and well communicated?
* Who are the primairy stakeholders that our marketing executives and personnel must interact with? Who are the internal customers of the marketing plan? What is need to sell a plan convincingly in our company?
* //Superior resources//: Our product line is the result of distinctive competences that enable us to outperform competing firms
* //Durable demand//: Our skills and know-how will offer us a competitive advantage for at least another five years.
* //Imitatability//: Our competitive advantage is based on assets and processes that are extremely difficult to imitate by rival firms
* //Non-substitutability//: At present, there are no substitue products or resources that pose a serious threat for our product line strategy
* //Operational efficiency//: Comparing ourselves with industry average for this product line, our cost efficiency is (for worse, worse, equal, better, a lot better)
* //Appropriability//: Our competitive advantage is based on resources that are strongly linked to the company.
!Company vision
* What should be the big, hairy, audacious goal of the company (BHAG)? What is it that we truly want to accomplish in the mid-range and long-range future? What do we want to achieve three & five years from now? What are our commercial goals for next year?
* Is our BHAG bold but also realistic? Is everybody in the organization passionate about it?
* Does the ambition of the company overstep ethical boundaries?
* Does our company have marketing leadership need to inspire the organization to create and accomplish the BHAG? Are changes introduced successfully and is the business being prepared for the future?
* Industry success drivers or factors that are critical to success may lie in:
** customers
** customer value
** distribution channels
** activities performed to deliver the value
** technology that underpins the value and activities
* Examples:
** In consulting, for example, capacity utilization is critical.
*** So is the ability to create and share knowledge since, when all is said and done, consulting is a knowledge management business.
** In pharmaceuticals, two industry success drivers are
*** R&D
*** Ability to perform clinical trials quickly and efficiently.
** In the automobile industry, distribution accounts for 30 percent of the price of a car while an inability to forecast what customers want accounts for most of the cost.
<<tiddler [[M11-S5 - Audio - Life cycle value]]>>
We talked about [[The Commodity Magnet]]. In this model different strategies are important at different moments in the cycle of the magnet.
* An innovation should start with a [[Product leadership strategy]]
* A [[Customer intimacy strategy]] is important when competition kicks in
* An [[Operational efficiency strategy]] is going to be important when customers become more knowledgeable.
And some fun on cooperation:
<<tiddler [[The Loo - Cooperation]]>>
# Idea generation
## Conceiving
## Exploring
## Shaping
# Conversion
## Screening
## Funding
## Development
# Diffusion / Exploitation
## Entry
## Chasm cross
## Exploitation
## Leverage

Value creation only happens in diffusion / exploitation. Eric Wood suggested to turn the whole phasing around: first enter to the market and ''get some customers with someone else product''. Example was a scientist with unique bio product, started with competitors product to get customers. Moving on from there.

''Some propositions for consideration:''
''P1'': Value creation potential is only as good as the weakest link in your innovation / entrepreneurship value
''P2'': The most commonly neglected component is the last which is also the most important for value creation
''P3'': Limiting the number of projects at the conversion stage is even more important for an entrepreneurial venture
''P4'': The failure to recognize flawed assumptions is the single greatest constraint on value creation.
''P5'': A primary task of managers and entrepreneurs is to create an environment in which flawed assumptions are likely to be recognized quickly and acted on appropriately

''Exploit before you explore''
"As a strategy the gold medalist consistently chose to pursue exploitation over exploration initiatives"
"... Henry Wellcome... wanted to make name for himself as a medical pioneer"
"... the first of many occasions that the firm exploited someone else's invention"
"... a me-too product like Zantac could never win more than 50% of the market... Galxo decided to put a price premium to stress its superiority over Tagemet"
"... once again buying, rather than buildling its pipeline.

"Risk to value creation in the portfolio"
Three mechanisms:
* Duplication
** Do not pursue projects that are too similiar, possibly competing for resources
* Omision
** Gap's in execution (marketing, development): you need every function
* Alignment
** Product does not solve a 'customer pain'

''Realistic goals for a disciplined portfolio approach''
* Greater formalization of strategic purpose, priorities, and project selection criteria, desirable project characteristics
* Improved communication of these
* More effectively manage expectations of project stakeholders
* Highlight dangers of project overload & non-availability of critical resources
* Highlight imbalances, gaps
* Presever resources for 'special case' projects
* Highlight need to reexamine strategic purpose
* Improve team cooperation, commitment
* But selection process:
** Wil not be scientific or objective
** Must leave scope for management judgement

''Portfolio techniques''
* Value maximization
** [[NPV]]
** [[IRR]]
** [[ECV]]
** Scoring
** Monte Carlo
** Real Options
* Balance alignments
** Strategic methods
** Yime & Resources
** Risk & Reward (bubble)
** Scoring
* ''The danger is that these techniques are killing the conversion''

''Method perspective''
* Strategic methods
* Financial methods
* Scoring model
* Bubble diagrams

''40% of businesses only use financial methods'' (Cooper et al 2001)

''Consideration in the selection the method''
* Simplicity
* Ease of use
* Suspectability to manipulation
* Usefulness for drawing in different perspective

''Weighted Scoring Method''
Capable of incorporating
* Market attractiveness
* Timing
* Risks
* Company Competence

* Preserve resource for exploitation
* Displined portfolio metohds need to focus on improving conversations
* Do not only use financial methods
Market hunting is about increasing the market share in the targeted markets. The sales function is crucial to this. Quote from [[Sales force design for strategic advantage]] on this:
>//The sales force typically is the most empowered organization in a company. Usually working alone and unsupervised, salespeople are trusted with the company's most important asset - it's customers. The most important connection the customer has with a company could be the salesperson; for many customers, the sales person *is* the company. A sales force is a powerful force. There is not a single sales force anywhere that could not seriously hurt its company's performance. Likewise, there is not a sales force anywhere that could not significantly improve its company's position.//
Five elements determine the success of a sales force:
# What is the quality of the information the sales force has at its disposal?
# What is the competitive strategy deployed by the company within the market?
# How well is the company equipped to recruit good sales representatives and how does the company train its sales force?
# What are the motivation and compensation systems used by the company?
# How does the company monitor the performance of its sales representatives?
In making business plans it is important to calculate how much sales capacity is required. For this it is important to keep metrics such as: the expected # sales calls to acquire a new customer and the success rates of sales effort.
In determining the plan on ho to approach the customers , a so called //go-to-market// strategy it is important to meet the customers where they do want to do do business. A [[Go-To-Market map]] helps revealing major issues for a company. Companies could consider [[Channel partnering]] to go to market and remain conservative with respect to [[Overestimating impact of online channels]].

Kaggle is a platform for data prediction competitions that allows organizations to post their data and have it scrutinized by the world"s best data scientists
<<AudioFragment /static/files/MBI/Module%203/M3-S10.mp3>>
In the general framework for mapping resources proposed by Benoit F Leleux the following points are made with respect to //industry/product knowledge//:
* Some capital providers can bring in significant knowledge of the industry your product offering is targeted at.
* You could always search this yourself buy this may be cost prohibitive.

Part of: [[General framework for mapping resources]]
In the [[Decision Making Unit (DMU)]] the different roles can perceive your offering in different ways. Perceivers of ''even keen'' / neutral believe your value proposition will bring them out the problematic situations they experience today

<<image /static/files/MBI/Module%2020/Perceiverofevenkeen.png width:400>>

|Probability of action|Low|
|Trigger words|Problems, Dissatisfaction, Does not work|
|Your product|Quickest to remove the perceived problem|
The virtual value chain illustrates how information in the physical value chain can be used to develop new markets:

<img src="/static/files/MBI/Module%208/virtualvaluechain.PNG" width=500>

* Firm infrastructure
** ERP Systems
** Online investor relations
* Human resource management
** Self service personnel portals
** Web based training
* Technology development
** Collaborative product design
** Knowledge directories
** Real time access R&D to online sales and service information
* Procurement
** Internet based demand planning
** Linked purchase, factory and forecasting systems
* Inbound logistics
** Real time integrated scheduling
** Dissemination of real time inbound and in progress inventory data
* Operations
** Integrated information of exchange
* Outbound logistics
** Real time transactions of orders
** Automated customer specific agreements
** Customer access to product development and delivery status
** Collaborative integration with customer forecasting systems
* Marketing and sales
** Online sales channels
** Real time inside and outside access to customer information
** Online product configurators
** Customer tailed marketing via profiling
* After-sales service
** Online support
** Customer self service
** Real time field service access

Part of [[M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis]]
The pursuit of opportunities without regards  to the resources currently controlled. It involves creating value by devoting the necessary resources and receiving the resulting rewards and personal satisfaction and independence.

The term was coined by [[Richard Cantillon|]] in 1725. He observed buying and selling by traders & craftsmen. The entrepreneur was known as risk bearer,knowing his buying price but not his selling price.

[[Schumpeters|]] contribution was that he saw the entrepreneur as an ''innovator'': ":The key aspect of economic development is the competitive elimination of old forms of production. This process of 'creative destruction' is a fundamental characteristic of capitalism.

An entrepreneur is someone who perceives an opportunity and creates an organization to pursue it.
Around the 1980s as a 'better' operations model than [[Material Requirements Planning (MRP)]], Manufacturing Resource Planning (MRP2) was defined. The difference is that capacity planning was added.
!Session Notes
Professor: [[Regis Lemmens]]

!Terms introduced in this block
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M20")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>
In the general framework for mapping resources proposed by Benoit F Leleux the following points are made with respect to collateral requirements:
* In order to raise money, you often have to have money
** Many lenders want to see some form of a guarantee
** Can differ greatly, from personal guarantees or bank loans or company assets
* The actual costs are difficult to quantify but very real
Part of: [[General framework for mapping resources]]
In [[Marketing Strategy and Organization: Building Sustainable Business]] Critical Success Factors are variables that management is able to influence and determine the competitive position of a company. There are two types:
1) //'tickets to ride'//  that allow a company to participate in the race
2) //'tickets to heaven'// that clearly distinguish a company from the competition
A company must not seek to exce at every critical success factor. As a practical guidance (research from Aaker) 4 or 5 is a good number.
For both types companies only have two options:
# They need to be different
# They need to be better
Entrepreneurial marketing is defined to be marketing of new products or services, possibly in new markets, possibly using innovative [[Business Model]]s. The core idea of entrepreneurial marketing is that marketing in early stages of a firm is different than in later phases. The key aspects which make 'entrepreneurial marketing' different than 'marketing' are:

# Newness
## Unknown
## Product quality not proven
## Interaction among strangers
## No established exchange relationships
## No structure / processes in marketing
# Smallness
## Limited resources
### Financial
### Personnel
### Skills
### Time
## Weak negotation position
## Limitted marketing power
# New markets

See also [[M6-S1 - Marketing in new ventures: theory empirical evidence - Stage models]]
In [[Marketing Strategy and Organization: Building Sustainable Business]] the following methods for trend spotting are mentioned:
* [[Porter's five forces]]
* Mapping a companies [[Value network]]
* [[STEP Analysis]]
The hourglass questioning pattern is mariage of the [[Funnel|The Funnel Questioning Pattern]] and the [[Tipi|The Tipi Questioning Pattern]]. The conversation begins with an open question, then moves to a closed question as the focus narrows. The closed questions identify new issues of concerns and start the room for a new topic.

<<image /static/files/MBI/Module%2016/Hour%20glass.jpg width:200>>

By Julian Birkinshaw, Cyril Bouquet and J.-L. Barsoux
Nowadays, goes the theory, innovation is supposed to be done constantly, by everyone in the company, improving everything the company is about — and new Web-based tools are here to help it happen. Is the theory right? Or do the experiences of companies reveal something different?

Historically, most managers equated innovation primarily with the development of new products and new technologies. But increasingly, innovation is seen as applying to the development of new service offerings, business models, pricing plans and routes to market, as well as new management practices. There is now a greater recognition that novel ideas can transform any part of the value chain — and that products and services represent just the tip of the innovation iceberg.1

This shift of focus has implications for who “owns” innovation. It used to be the preserve of a select band of employees — be they designers, engineers or scientists — whose responsibility it was to generate and pursue new ideas, often in a separate location. But increasingly, innovation has come to be seen as the responsibility of the entire organization. For many large companies, in fact, the new imperative is to view innovation as an “all the time, everywhere” capability that harnesses the skills and imagination of employees at all levels.2
The Leading Question //''What conventional wisdom about innovation no longer applies?''//
* Online forums are not a panacea for innovation.
* Innovation shouldn’t always be “open.” Internal and external experts should be used for very different problems.
* Innovation must be bottom-up and top-down — in an approach that’s balanced.

Making innovation everyone’s job is intuitively appealing but very hard to achieve. Many companies have put in place suggestions, schemes, ideation programs, venturing units and online forums. (See “A Glossary of Established Drivers of Innovation.”) However, the success rate of such approaches is mixed. Employees face capacity, time and motivation issues around their participation. There is often a lack of follow-through in well-intentioned schemes. And there is typically some level of disconnect between the priorities of those at the top and the efforts of those lower down in the organization.

Moreover, Web-based tools for capturing and developing ideas have not yet delivered on their promise: A recent McKinsey survey revealed that the number of respondents who are satisfied overall with the Web 2.0 tools (21%) is slightly outweighed by the number who voice clear dissatisfaction (22%).

To understand these challenges, and to identify the innovation practices that work, we spent three years studying the process of innovation in 13 global companies. (See “About the Research.”) All of these companies embarked on often-lengthy journeys aimed at making themselves more consistently and sustainably innovative. All sought to engage their employees in the process, and all made use of online tools to facilitate and improve the quality and quantity of ideas. Our research allowed us to confirm many of the standard arguments for how to encourage innovation in large organizations, but we also uncovered some surprising findings. (See “Questions That Work — and Don’t — in Online Innovation Forums” for a summary.) In this article we focus on the key insights that emerged from our research, organized around five persistent “myths” that continue to haunt the innovation efforts of many companies.

!Myth # 1. The Eureka Moment
For many people, it is still the sudden flash of insight — think Archimedes in his bath or Newton below the apple tree — that defines the process of innovation. According to this view, companies need to hire a bunch of insightful and contrarian thinkers, and provide them with a fertile environment, and lots of time and space, to come up with bright ideas.

There is a growing body of work on the leading-edge practices in innovation management. Consultants and scholars concur on a number of proven conditions that contribute to sustained innovation.i These include:
* Shared understanding: Sustained innovation is a collective endeavor built on a shared sense of what the company is becoming — and what it is not becoming. It is also about creating a culture to support innovation — for example, by destigmatizing failure and celebrating successes.
* Alignment: Besides promoting values that support innovation, organizations also have to address structural impediments (such as silos) and realign contradictory systems and processes. As the group head of innovation in one company told us, “We needed to create an environment where it was ‘safe to experiment’; where it was possible to ‘pilot’ and ‘test’ ideas before they were subjected to our stringent performance metrics.”
* Tools: Employees need the training, concepts and techniques to innovate. In the memorable words of a decision support manager at 3M, “It doesn’t work to urge people to think outside the box without giving them the tools to climb out.”ii
* Diversity: Innovation requires a degree of friction. Bringing in outsiders — new hires, experts, suppliers or customers — and mixing people across business units, functions and geographies helps spark new ideas.
* Interaction: Organizations need to establish forums, platforms and events to help employees build networks and to provide opportunities for exchange and serendipity to happen.
* Slack: Employees need some access to slack resources, not least in terms of timeout from their regular activities to experiment and develop new ideas. This also requires focus — both personal and organizational — on eliminating non-value-adding activities.

Alas, the truth is far more prosaic. It is often said that innovation is 5% inspiration and 95% perspiration, and our research bears this out. If you think of innovation as a chain of linked activities — from generating new ideas through to commercializing them successfully — it is the latter stages of the process where ideas are being worked up and developed in detail that are the most time consuming.4 Moreover, it is also the latter stages where problems occur. We recently conducted a survey in 123 companies, asking managers to evaluate how effective they were at each stage in the innovation value chain. On average, they indicated that they were relatively good at generating new ideas (either from inside or outside the boundaries of the company), but their performance dropped for every successive stage of the chain. (See “Which Parts of the Innovation Value Chain Are Companies Good At?”) We are not suggesting that generating ideas is unimportant. But that is not where most companies struggle. Most companies are sufficiently good at generating ideas; the “bottleneck” in the innovation process actually occurs a lot further down the pipeline.

The eureka myth helps explains why so many companies are drawn to big brainstorming events, with names such as ideation workshops and innovation jams.5 In the course of our research we saw many different types of brainstorming events, and indeed we helped several of the sample companies to put them on. Such events are always valuable: They help to focus the efforts of a large number of people, they generate excitement and interest and they generate some useful ideas.

!About the Research
Our research was conducted over a three-year period in cooperation with a group of leading companies. The participants came from various sectors: consumer products (Mars, Sara Lee, Best Buy, Whirlpool), pharmaceuticals (Roche Diagnostics, GSK), broadcasting (BBC), energy (BP), information and communication technology (BT, IBM), business information (ThomsonReuters) — as well as two banks that were at the center of the recent financial crisis (UBS and RBS). We could have excluded them from the study, but they faced distinctive challenges that significantly enriched the study. We interviewed a total of 54 people, some of them several times, in these companies, and we wrote up detailed case studies about six of the companies (Mars, Roche, GSK, IBM, BT and UBS).

Apart from tracking and reporting on their innovation efforts, some of the participant companies also came together for a roundtable conference at London Business School in December 2008. This provided a fascinating window on the challenges of implementing an innovation strategy in large organizations, and it allowed us to test out some of our provisional ideas.

But even with all these benefits, it’s not clear that ideation workshops are the right way to build companywide innovation capability. As an analogy, think of the role that big musical festivals like Live Aid play in the alleviation of poverty. These big events are terrific for raising awareness and money on a one-time basis, but the process of poverty alleviation takes years of hard effort on the part of aid organizations, and the outcomes are achieved long after the memory of the big event has faded. The involvement of the general public in aid work usually ends with the check we write to Live Aid; but for the aid organization receiving the money, that is where the real work starts.

Our research showed that most companies fail to think through the consequences of putting on ideation workshops. The first problem is that they underestimate the amount of work that is needed after the workshop is completed. IBM’s 2006 online Innovation Jam, described in more detail below, required a team of 60 researchers to sort through the 30,000 posts received over a 72-hour period. UBS Investment Bank’s Idea Exchange, while conducted on a smaller scale, also involved a great deal of post-event work. As one UBS manager observed: “Preliminary sorting, then scoring and giving feedback on such a large number of ideas took a huge amount of time and effort by category owners and subject matter experts. The ideas coming through were good, but if we are to do it again we need a repeatable, dashboard-style reporting system for quantifying results and keeping the momentum going.”

Questions That Work — and Don’t — in Online Innovation Forums
What works
* Option-based questions where you want to know the distribution of current views, for example:
** Which of the following sources of information do you use most frequently in the workplace? (print media, digital media, experts, colleagues)
** How would you rate our speed of customer responsiveness on a one-10 scale?
* Narrow, often technical, questions for which there is one (or more) factually correct answer, for example:
** Can anyone tell me what to do when I am faced with this error code? Syntax Loop unspecified Ref 56663.
What doesn’t
* Questions that ask for a big conceptual leap forward without providing any raw material for people to latch onto, for example:
** We are looking for radical new approaches to customer service in our retail bank — any ideas? ''Advice: Provide some unusual stimuli to encourage people to think differently, for example: How could we make the retail bank more like your favorite restaurant?''
* Questions that ask people to build one another’s ideas in a constructive manner, for example:
** Let’s start a discussion thread about new approaches to working more closely with our customers. ''Advice: Use a mix of online and in-person brainstorming sessions; or actively manage the thread to create some coherence.''

The second, and more insidious, problem with ideation workshops is that they can actually be disempowering if the organization lacks the capacity to act on the ideas generated. We heard quite a few grumbles during the research from individuals who had put forward their bright ideas through a workshop or online forum, but received no response — not even an acknowledgment. If the “funnel” is constricted further down, at the point where ideas get assessed and developed, stuffing new ideas at the top is simply going to exacerbate the problem.

So what should you do? First, be very clear what problem you are trying to solve, and put on an ideation workshop only if you believe that it is a lack of ideas that is holding you back. Second, if you believe that an ideation workshop is the right approach, be prepared to invest a lot of time and effort into the follow-up work. It is sobering to note that successful innovation programs typically take many years to bear fruit: Procter & Gamble’s Connect + Develop initiative was piloted and developed over a 10-year period, while Royal Dutch Shell’s Gamechanger initiative took more than five years to yield benefits. Alas, many companies lack the continuity in leadership needed to make this type of long-term commitment.

Takeaway: Most innovation efforts fail not because of a lack of bright ideas, but because of a lack of careful and thoughtful follow-up. Smart companies know where the weakest links in their entire innovation value chain are, and they invest time in correcting those weaknesses rather than further reinforcing their strengths.
!Myth # 2. Build It and They Will Come
The emergence of second-generation Internet technologies (“Web 2.0”) has had a dramatic impact on how we share, aggregate and interpret information. The proliferation and growth of online communities such as Facebook and LinkedIn seduce us into assuming that these new means of social interaction will also transform the way we get things done at work.

But for every online community that succeeds, many others fail. Some make a good start but then enthusiasm wanes. For example, MyFootballClub is a U.K.-based website whose 30,000 members bought a soccer club, Ebbsfleet United, in 2007. However, by 2010 its paying membership had dwindled to just 800 people, leading to severe financial difficulties for Ebbsfleet United. Other online community initiatives fail to live up to their founders’ hopes. For example, during the transition period before he came into office, President Obama endorsed the idea of an online “Citizen’s Briefing Book” for people to submit ideas to him. Some 44,000 proposals and 1.4 million votes were received, but as the International Herald Tribune reported, “the results were quietly published, but they were embarrassing.”6 The most popular ideas — in the middle of an economic meltdown — included legalizing marijuana and online poker, and revoking the Church of Scientology’s tax-exempt status.

How does this affect the process of innovation? Unsurprisingly, all the companies we studied had figured out that the tools of Web 2.0 could potentially be very valuable in helping large numbers of people get involved in an innovation process. Most had built some sort of online forum in which employees could post their ideas, comment and build on the ideas of others and evaluate proposals. For example, IBM used space on its corporate Intranet to launch a 72-hour Innovation Jam in 2006, the purpose being to get IBM employees, clients and partners involved in an online debate about new business opportunities. The Innovation Jam attracted 57,000 visitors and 30,000 posts. A rather different example is Royal Bank of Scotland’s development of a virtual innovation center in Second Life, which allowed the bank to prototype potential new banking environments and get direct and rapid feedback from employees around the world.

In these and other cases, the implicit logic was: Build it, and they will come. Both IBM and RBS had considerable success in attracting interest, but the overall story was much more mixed. Some online forums really helped to galvanize their company’s innovation efforts. Others ended up underused and unloved.

What are the biggest problems with developing online innovation forums? The first is that the forum doesn’t take off. It’s usually quite straightforward to get people to check out a new site once or twice, but they need a reason to keep coming back. As MyFootballClub found, the risk is that the novelty of an innovation forum will wear out pretty quickly and participation will dwindle. A manager at Roche Diagnostics observed: “Our hope that our internal technology-oriented people would gravitate to using this type of tool was completely unfounded. We really had to push people (via an electronic marketing campaign) to involve them in suggesting solutions to the six problems we identified.” Equally, managers at Mars and UBS found their innovation efforts stalling after promising starts. One said: “We probably underestimated the communications needed. We were good up-front, but learned that continuous communications is vital. We had to counter some skepticism, to create the belief that something would happen.”

The second risk is that, like Obama’s Citizen’s Briefing Book, the ideas that get posted are off-topic, half-baked or irrelevant. All the managers we spoke to acknowledged that they had to work hard to “separate the wheat from the chaff.” Many of the ideas put forward were parochial or ill-informed, and few people took the trouble to build on the ideas of others. The notion that the good ideas would be picked up by others and rise to the top rarely worked out.

So what should you do to avoid these problems? The most important point is to understand the types of interaction that occur in online forums, so that you use them in the right way. If you are looking for creative, never-heard-before ideas, and if you want people to take responsibility for building on one another’s ideas, then a face-to-face workshop is your best bet. But if you are looking for a specific answer to a question, or if you want to generate a wide variety of views about some existing ideas, then an online forum can be highly efficient. (See “Questions That Work — and Don’t — in Online Innovation Forums” for examples.)

Takeaway: Online forums are not a panacea for distributed innovation. Online forums are good for capturing and filtering large numbers of existing ideas; in-person forums are good for generating and building on new ideas. Smart companies are selective in their use of online forums for innovation.
!Myth # 3. Open Innovation Is the Future
Any discussion of innovation in large companies sooner or later turns to the issue of “open” innovation — the idea that companies should look for ways of tapping into and harnessing the ideas that lie beyond their formal boundaries. Many companies are now embracing open innovation in its many guises. For example, the Danish toymaker LEGO has been leveraging customer ideas as a source of innovation for years, and some new products are even labeled “created by LEGO fans.”7 And one of P&G’s first experiments with online advertising invited people to make spoof movies of P&G’s “Talking Stain” TV ad and post them on YouTube — resulting in over 200 submissions, some of which proved good enough to air on TV.8

Our research confirmed that most large companies believe a more open approach to innovation is necessary, but it also underlined that there is no free lunch on offer. The benefits of open innovation, in terms of providing a company with access to a vastly greater pool of ideas, are obvious. But the costs are also considerable, including practical challenges in resolving intellectual property ownership issues, lack of trust on both sides of the fence and the operational costs involved in building an open innovation capability. Open innovation is not the future, but it is certainly part of the future, and the smart approach is to use the tools of open innovation selectively.

Roche Diagnostics was a company that got a lot of value out of open innovation. In 2009 it put in place an experimental initiative to overcome specific technological problems that were preventing certain R&D programs from moving forward. The company identified six technology challenges that needed solving, and it opened the challenges up to the internal R&D community and to the external technology community through Innocentive and UTEK (now Innovaro), two well-known technology marketplaces. The manager in charge of the initiative described the outcome thus:

    Internally, the number of responses to these six challenges was very low. But one very thoughtful response to one of the challenges was brilliant, and paid for the entire experiment. Externally, we used Innocentive and UTEK, and both had a far higher response rate than our internal experiment — more than 10 times the volume of responses, in fact. We offered a $1,500 reward, so this could have been an influencing factor. We received one novel solution, which really made the entire experiment worthwhile, but more than that was our very positive experience of involving external collaborators. 

Roche’s experience was the closest thing we saw to a proper experiment that compared the merits of tapping into internal and external communities — and it really highlighted the value of tapping into the external group. But note that the potential respondents were being asked a very narrow, technology-specific question. Clearly, the external community would have been far less useful for tackling company-specific or situation-specific problems.

What are the downsides or limitations of open innovation? One set of concerns relates to how you handle intellectual property issues. At the time of writing, Roche Diagnostics was still working through the details of the licensing agreement with the person who solved its technological problem, and the transaction and licensing costs were far from trivial. A related issue is that without the strong IP protection that a market-maker like Innocentive provides, external parties are careful with what they will share. IBM discovered this in its Innovation Jam. As one manager recalled, “This Jam was established as an open forum, so anyone can take these ideas and use them. So we felt we were taking a few risks doing this, and perhaps it meant that our clients were quieter in the discussions than we would have liked. But it was important to make this open in every sense of the word.”

A second set of concerns was around how the companies we studied actually used the insights provided by external sources. One European telecom company had a “scouting” unit in Silicon Valley to keep an eye on exciting new startups and emerging technologies, but the scouting team discovered that the only technologies the folks back in Europe were interested in were those that would help them accelerate their current development road map. The really radical ideas, the ones that the scouting unit was putatively looking for, were simply too dissonant for the European development teams to get their heads around.
Which Parts of the Innovation Value Chain Are Companies Good At?

Originating ideas usually isn’t the hardest part of innovating. Most companies are sufficiently good at generating ideas, the “bottleneck” in the innovation process actually occurs a lot further down the pipeline.
View Exhibit

A final concern is simply the time it takes to do open innovation properly. Companies such as Procter & Gamble, Intel and LEGO have put an enormous amount of investment into building their own external networks, and they are beginning to see a return, but you shouldn’t underestimate the time and effort involved.

Takeaway: External innovation forums have access to a broad range of expertise that makes them effective for solving narrow technological problems; internal innovation forums have less breadth but more understanding of context. Smart companies use their external and internal experts for very different types of problems.
!Myth # 4. Pay Is Paramount
A dominant concern when organizations set out to grow their innovation capabilities is how to structure rewards for ideas. A common refrain is that innovation involves discretionary effort on top of existing responsibilities, so we have to offer incentives so people to put in that extra effort. The example of the venture capital industry was mentioned as a setting in which people coming up with ideas, and those backing them, all have the opportunity to become rich.

But both academic theory and our discussions with chief innovation officers indicate that this is a red herring.

Let’s briefly look at the theory. People are motivated by many factors, but extrinsic rewards such as money are usually secondary, hygiene-type factors. The more powerful motivators are typically “social” factors, such as the recognition and status that is conferred on those who do well, and “personal” factors, such as the intrinsic pleasure that some work affords. More specifically, there is evidence from psychology research that individuals view the offer of reward for an enjoyable task as an attempt to control their behavior, which hence undermines their intrinsic task interest and creative performance.9 Parallel research in behavioral economics suggests that intrinsic motivation is especially likely to suffer when the incentives are large.10

All of which suggests that you don’t need monetary rewards for innovation. Innovation is intrinsically enjoyable, and it’s easy to recognize and confer status on those who put their discretionary effort into it. Our research interviews provided plentiful evidence that this is the case.

Take the experience of UBS. With considerable upheaval at senior levels of the bank, the innovation movement was very much a grassroots effort — built around “UBS Idea Exchange,” an online tool. The executive in charge of that effort commented: “We found that employees having an opportunity to put forward their ideas brought huge personal rewards. We learned very clearly (through our experiments) that financial rewards would not have made any difference. People reported that recognition of their ideas was a reward in itself. They wanted to be engaged and to participate. We therefore involved people in presenting their ideas to senior management.”

The sentiment was echoed by the head of innovation at Mars Central Europe: “We try to recognize people rather than offer material rewards. We hold a corporate event, biannually, called Make The Difference, where ideas and success stories are celebrated. The Central Europe team is very proud of the fact that we won more awards at this event last year than any other region.”

Takeaway: Rewarding people for their innovation efforts misses the point. The process of innovating — of taking the initiative to come up with new solutions — is its own reward. Smart companies emphasize the social and personal drivers of discretionary effort, rather than the material drivers.11
!Myth # 5. Bottom-Up Innovation Is Best

There is a lot of enthusiasm among those writing about innovation, and among those working in R&D settings, for bottom-up activism or “intrapreneurship.” The reasoning here is straightforward: Top executives are not close enough to the action to be able to come up with or implement new ideas, so they need to push responsibility for innovation down into the organization. “Let 1,000 flowers bloom” has long been the mantra of big successful innovators like 3M, Google and W.L. Gore.

We wanted to believe this, and we sought out companies that had allowed, or even encouraged, bottom-up processes. We wanted to find cases where dramatic changes had emerged through bottom-up initiatives. But we came back emptyhanded.

Don’t misunderstand. There are plenty of examples of successful innovations that started out as below-the-radar initiatives, or as proposals that got rejected by top executives several times. Examples that spring to mind include Ericsson’s mobile handset business, Sony’s PlayStation and HP’s printer business. But, the point is, at some point all these innovation were picked up and then prioritized by top management. Successful innovations, in other words, need both bottom-up and top-down effort, and very often the link is not made.

During the research, we followed several cases of bottom-up innovation in considerable detail: UBS’s Idea Exchange, Best Buy’s resilience initiative and GlaxoSmithKline’s Spark program. These initiatives were neither great successes nor outright failures. They were able to demonstrate all sorts of modest successes, but they didn’t have the impact that their proponents would have liked either.

We discussed this issue in a workshop in late 2008, and the story that emerged was interesting. An executive working for RBS described the tension he had experienced between a top-down and a bottom-up approach. The company had put in place a range of tools: “Some of these are top-down tools that are owned by senior executives; others are bottom-up tools that we put in place to get involvement from large numbers of people. Top-down we have a group innovation board with senior decision makers and then 12 innovation boards. On a bottom-up basis, each division has its own pipeline, and makes the initial seed investment. Then as costs increase, the idea goes to the innovation board, and if it is approved the board will fund a pilot project, which in turn helps the development of the business plan.”

The underlying point, he observed, is that successful innovation requires close attention to both facets: “We’ve learned that you only get the top-down working if you get the bottom-up right too.”

This interplay between direction and empowerment is evident even in a declared bottom-up innovator like Best Buy. The success of the U.S. retailer is strongly tied to the cumulative effect of continuous experimentation and small bets at the level of individual stores.12 Yet top management plays a significant role in channeling the collective creative energy toward desired areas by framing the innovation challenge in terms of finding new and better ways to service customers (dubbed the “customer centric-cycle”) — hence removing the risks of random or ill-focused innovation.

One final aspect of the bottom-up process is how to deal with those whose ideas are turned down. Broad-based innovation actually implies saying no to a lot of people, sometimes repeatedly. How their contributions are acknowledged, the transparency of the decision-making process and how the news is communicated are crucial factors in keeping the ideas coming. Even when their own ideas are rejected, employees also note what happens to the successful ideas of colleagues — and companies should not underestimate the stimulus of seeing front-line innovators sometimes given the opportunity to implement the ideas they generated. Indeed, Whirlpool, an exemplar in democratic innovation, goes one step further: It has established an Innovation E-Space that allows all employees to keep abreast of innovation activities and even to volunteer to work one another’s projects.13 Once again, the interaction between bottom-up and top-down initiatives proves decisive.

Takeaway: Bottom-up innovation efforts benefit from high levels of employee engagement; top-down innovation efforts benefit from direct alignment with the company’s goals. Smart companies use both approaches, and are adept at helping bottom-up innovation projects get the sponsorship they need to survive.

Innovation is the lifeblood of any large organization, and many invest enormous amounts of time and effort in fostering distributed innovation programs. Web 2.0 technologies have made it possible to democratize the process even further, and offer ways of consolidating and evaluating radically new ideas.

But there are no quick fixes, panaceas or one-size-fits-all solutions — not surprisingly, since by definition not everyone can be a successful leader in innovation.

In this article we have taken an experience-led approach. Forget what the theory says: What are the experiences of companies putting these new tools for distributed innovation into practice? And the truth proves sobering. Online tools, open innovation communities and big collaborative forums all have their limitations. None is always right or always wrong. The best approach involves careful judgment and a deep understanding of the particular challenges a company is facing. By thinking through the pros and cons of each element, companies can manage their processes better. 

Running innovation projects is hard. By definition you’re doing new things so you can’t rely on old habits and routines. If you and your innovation team don’t feel uncomfortable, you’re simply not innovating. 

Professor Clayton Christensen talks models of disruptive innovation, what the job of your product is and explains why there will always be room for disruptive innovation an entrepreneurs in the world. From the rise of Sony and the transistor radio, through Apple, milkshakes (yes!), from Julius Caesar to FedEx, Clayton makes you think about innovation in a way that you probably haven’t before.

Take the time to watch the whole 90 minutes if you get a chance. If you want to read a transcript of the video, you can here.
Life orientation according to B. Derr

|Getting ahead|Progress|Sense of achievement|Jealousy, Greed|
|Getting secure|Safety|Sense of stability|Fear|
|Getting high|Independence|Sense of control|Irresponsibility|
|Getting free|Excitement|Sense of excitement|Restlessness, Boredom|
|Getting balanced|Enjoyment|Sense of equilibrium|Complacency|
|Getting connected|Relationships|Sense of belonging|Guilt, Loneliness|
|Getting unique|Distinction|Sense of pride|Egocentric-ism. Selfishness|
|''Description''|provides access to tiddler revisions|
|''Contributors''|Martin Budden|
Extend [[ToolbarCommands]] with {{{revisions}}}.
!Revision History
!!v0.1 (2009-07-23)
* initial release (renamed from experimental ServerCommandsPlugin)
!!v0.2 (2010-03-04)
* suppressed wikification in diff view
!!v0.3 (2010-04-07)
* restored wikification in diff view
* added link to side-by-side diff view
!To Do
* strip server.* fields from revision tiddlers
* resolve naming conflicts
* i18n, l10n
* code sanitizing
* documentation
(function($) {

jQuery.twStylesheet(".diff { white-space: pre, font-family: monospace }",
	{ id: "diff" });

var cmd = config.commands.revisions = {
	type: "popup",
	hideShadow: true,
	text: "revisions",
	tooltip: "display tiddler revisions",
	revTooltip: "", // TODO: populate dynamically?
	loadLabel: "loading...",
	loadTooltip: "loading revision list",
	selectLabel: "select",
	selectTooltip: "select revision for comparison",
	selectedLabel: "selected",
	compareLabel: "compare",
	linkLabel: "side-by-side view",
	revSuffix: " [rev. #%0]",
	diffSuffix: " [diff: #%0 #%1]",
	dateFormat: "YYYY-0MM-0DD 0hh:0mm",
	listError: "revisions could not be retrieved",

	handlePopup: function(popup, title) {
		stripSuffix = function(type, title) {
			var str = cmd[type + "Suffix"];
			var i = str.indexOf("%0");
			i = title.indexOf(str.substr(0, i));
			if(i != -1) {
				title = title.substr(0, i);
			return title;
		title = stripSuffix("rev", title);
		title = stripSuffix("diff", title);
		var tiddler = store.getTiddler(title);
		var type = this._getField("server.type", tiddler);
		var adaptor = new config.adaptors[type]();
		var limit = null; // TODO: customizable
		var context = {
			host: this._getField("", tiddler),
			workspace: this._getField("server.workspace", tiddler)
		var loading = createTiddlyButton(popup, cmd.loadLabel, cmd.loadTooltip);
		var params = { popup: popup, loading: loading, origin: title };
		adaptor.getTiddlerRevisionList(title, limit, context, params, this.displayRevisions);

	displayRevisions: function(context, userParams) {
		if(context.status) {
			var callback = function(ev) {
				var e = ev || window.event;
				var revision = resolveTarget(e).getAttribute("revision");
				context.adaptor.getTiddlerRevision(tiddler.title, revision, context,
					userParams, cmd.displayTiddlerRevision);
			var table = createTiddlyElement(userParams.popup, "table");
			for(var i = 0; i < context.revisions.length; i++) {
				var tiddler = context.revisions[i];
				var row = createTiddlyElement(table, "tr");
				var timestamp = tiddler.modified.formatString(cmd.dateFormat);
				var revision = tiddler.fields[""];
				var cell = createTiddlyElement(row, "td");
				createTiddlyButton(cell, timestamp, cmd.revTooltip, callback, null,
					null, null, { revision: revision });
				cell = createTiddlyElement(row, "td", null, null, tiddler.modifier);
				cell = createTiddlyElement(row, "td");
				createTiddlyButton(cell, cmd.selectLabel, cmd.selectTooltip,
					cmd.revisionSelected, null, null, null,
					{ index:i, revision: revision, col: 2 });
				cmd.context = context; // XXX: unsafe (singleton)!?
		} else {
			$("<li />").text(cmd.listError).appendTo(userParams.popup);

	revisionSelected: function(ev) {
		var e = ev || window.event;
		e.cancelBubble = true;
		if(e.stopPropagation) {
		var n = resolveTarget(e);
		var index = n.getAttribute("index");
		var col = n.getAttribute("col");
		while(!index || !col) {
			n = n.parentNode;
			index = n.getAttribute("index");
			col = n.getAttribute("col");
		cmd.revision = n.getAttribute("revision");
		var table = n.parentNode.parentNode.parentNode;
		var rows = table.childNodes;
		for(var i = 0; i < rows.length; i++) {
			var c = rows[i].childNodes[col].firstChild;
			if(i == index) {
				if(c.textContent) {
					c.textContent = cmd.selectedLabel;
				} else {
					c.text = cmd.selectedLabel;
			} else {
				if(c.textContent) {
					c.textContent = cmd.compareLabel;
				} else {
					c.text = cmd.compareLabel;
				c.onclick = cmd.compareSelected;

	compareSelected: function(ev) {
		var e = ev || window.event;
		var n = resolveTarget(e);
		var context = cmd.context;
		context.rev1 = n.getAttribute("revision");
		context.rev2 = cmd.revision;
		context.tiddler = context.revisions[n.getAttribute("index")];
		context.format = "unified";
		context.adaptor.getTiddlerDiff(context.tiddler.title, context,
			context.userParams, cmd.displayTiddlerDiffs);

	displayTiddlerDiffs: function(context, userParams) {
		var tiddler = context.tiddler;
		tiddler.title += cmd.diffSuffix.format([context.rev1, context.rev2]);
		tiddler.text = "{{diff{\n" + context.diff + "\n}}}";
		tiddler.tags = ["diff"];
		tiddler.fields.doNotSave = "true"; // XXX: correct?
		if(!store.getTiddler(tiddler.title)) {
		var src = story.getTiddler(userParams.origin);
		var tiddlerEl = story.displayTiddler(src, tiddler);
		var uri = context.uri.replace("format=unified", "format=horizontal");
		var link = $('<a target="_blank" />').attr("href", uri).text(cmd.linkLabel);
		$(".viewer", tiddlerEl).prepend(link);

	displayTiddlerRevision: function(context, userParams) {
		var tiddler = context.tiddler;
		tiddler.title += cmd.revSuffix.format([tiddler.fields[""]]);
		tiddler.fields.doNotSave = "true"; // XXX: correct?
		if(!store.getTiddler(tiddler.title)) {
		var src = story.getTiddler(userParams.origin);
		story.displayTiddler(src, tiddler);

	_getField: function(name, tiddler) {
		return tiddler.fields[name] || config.defaultCustomFields[name];

Part of [[M5-S5 - Reading - Summary Afuah & Tucci - Chapter 5 - Dynamics of Internet Business Models]]

A good way for a profitseeking firm to determine its complementary assets involves the following two steps
# The firm should understand what ''product-market position'' it wants to occupy
## By product-market position we mean the customer value, scope, and positioning that a firm attains or wants to attain
## This is not always clear early in the life of a technology
# The firm should understand its ''value configuration'' (value chain, value network, or value shop)
## Determine what capabilities, other than the technology, are critical not only to offering the right customer value to the right market segments
## Also to increasing the firm’s relative positioning vis-a-vis suppliers, customers, and complementors
Which capabilities are critical? Ask two questions:
# Do the complementary assets make an unusually high contribution to the value that customers perceive?
## This customer value is in the form of ''low cost'' or ''differentiated attributes'' as perceived by customers.
## Complementary assets that make an ''unusually high contribution to the value'' that customers perceive are more likely to help a firm profit from a technological change.
# How quickly and to what extent can other firms duplicate or substitute the complementary assets?

Presentation on the differtent possibilities of making money with open source software

//Management professor Vijay Govindarajan explains why companies have trouble implementing new ideas — and what they should do about it.//

Innovation processes are almost always heavily front-loaded. They focus the lion’s share of attention on idea generation, but they usually finish with something less than a roar. Ask most executives what you should do after you’ve come up with a market-shaking idea, and they’re likely to say, “Just implement it.”

Vijay Govindarajan, the Earl C. Daum 1924 Professor of International Business and founding director of the Center for Global Leadership at the Tuck School of Business at Dartmouth, knows that implementing innovation is not quite so simple. For the past decade, he and Tuck School colleague Chris Trimble have been studying what happens after companies decide to bring that big idea to market.

They have reported the findings in their new book, The Other Side of Innovation: Solving the Execution Challenge (Harvard Business Review Press, 2010). In a recent discussion with strategy+business, Govindarajan discussed some of what the duo learned.

S+B: Why did you decide to focus your research on the execution side of innovation?
GOVINDARAJAN: Every time I meet with a group of executives, I take a poll. On a 10-point scale, one being poor, 10 being world-class, I ask them to rate themselves on how good their companies are at idea generation. They consistently rank their companies at five or six on the scale. Then I ask them to rate how good they are at executing ideas. On average, they rank their companies just one on execution. So, although I would not say that companies have mastered idea generation, relatively speaking, there are enough ideas out there. But if companies could just execute better, they could create a lot more growth.

S+B: Why do companies find it difficult to execute new ideas?
GOVINDARAJAN: In a sense, the problem is about people doing the right thing. Every organization has a core business, which we call its performance engine. Its main job is efficiency: By making every task repeatable and predictable, the core business obtains scale and makes a lot of money. Innovation is just the opposite. It is nonroutine and unpredictable. Therefore, there is an inherent and fundamental inconsistency between what companies do to pursue scale and what they need to do to execute on innovation. It is not that people are doing the wrong things and killing innovation. In fact, people are doing exactly what they should be doing to keep the performance engine running — and that is killing innovation.

S+B: If the performance engine can’t execute innovation, how then do you go about it?
GOVINDARAJAN: Well, to start, you can’t just focus on one or the other. You have to be good at innovation and efficiency. There are three basic principles. First, innovation cannot happen inside the performance engine, so it requires a dedicated innovation team. Second, although the innovation team should be separate, it should not be isolated, because it has to leverage some of the assets and capabilities of the performance engine. There has to be a link. Third, because innovation by definition is an experiment with unknown outcomes, you can’t use the same yardstick — short-term financial results — that you use for the performance engine.

S+B: You need a dedicated team for every type of innovation?
GOVINDARAJAN: Absolutely not. There are certain kinds of innovation, such as continuous process improvement and line extensions, that the performance engine can do. The performance engine can also do big innovations as long as they fit within the framework of the existing product portfolio. For example, John Deere can do an improved version of a tractor within its performance engine. But there are limits to what a performance engine can do, because, by and large, it must focus on efficiency.

S+B: What dimensions should be considered as executives think about how to approach innovation execution?
GOVINDARAJAN: Let’s take a concrete example. In 2000, Infosys [Technologies Ltd.], which had been writing software, went into the consulting business. Infosys Consulting could not be launched inside its core business. The performance engine was designed for software development, whereas consulting is about business transformation; programming and consulting require fundamentally different capabilities. And the customer for custom software is the head of IT, whereas the customer for consulting is the CEO. So a dedicated team was created, and the team designed a different culture and compensation package for the new business.

At the same time, the dedicated team drew on certain assets of the performance engine. One very important one was customer relationships, because, after all, the consultants wanted to work with the same Fortune 500 companies as the programmers. A second asset was the existing global delivery model, which enabled Infosys to dramatically lower costs and still offer high-quality service.

S+B: How do you ensure the performance engine’s participation in executing the innovation?
GOVINDARAJAN: You have to recognize that there are fundamental tensions between performance engines and innovation teams, and that any time you force them to work together, conflicts will arise. So you have to make the link, and then expect the conflict and manage it. The Infosys case study revealed three ways to do this.

The first is to have the right leader for the dedicated team. At Infosys, it was an outsider named Steve Pratt. That is important — he wasn’t part of the performance engine. He also happened to be an extremely humble person, who was willing to talk through the potential conflicts with the performance engine and reconcile them ahead of time. And he didn’t overreach. Instead of asking the performance engine to give him a lot of customer contacts, he asked for one customer contact and proved he could sell consulting to that customer without damaging the programming business.

Second, the dedicated team, like the performance engine, should report at a very high level. When Infosys Consulting was started, it was a tiny business. Yet it reported directly to the then CEO, Nandan Nilekani, who played a critical role in anticipating and managing the conflicts between the performance engine and the innovation team. Nilekani also created another board of directors for Infosys Consulting and made sure a few members served on both boards.

Third, it is important to create incentives, because ultimately people respond to rewards. One of the things Infosys did was to double count the revenues from the new consulting business. So if the software business provided a lead that generated sales for Infosys Consulting, it also got credit for the new revenue. This gave the performance engine an incentive to work with the innovation team.

S+B: Can you evaluate an innovation team in the same way you evaluate the performance engine?
GOVINDARAJAN: No, remember that innovation execution and day-to-day execution are fundamentally different. The performance engine is rightly held accountable for tight, financial-oriented metrics. But you cannot do that with the innovation team because it is conducting an experiment. That does not mean there is no accountability. We can hold people accountable for disciplined experiments.

Innovation projects start with nothing but a bunch of assumptions about the future. I call them weak signals. When you are faced with weak signals, you have two options. You can wait for the signals to become crystal clear before you commit resources, but by the time the signals are crystal clear, the game is usually over. The second approach is to amplify the weak signals yourself by testing the assumptions and converting them into knowledge. When you are converting assumptions into knowledge, the golden rule is spend a little, learn a lot. You evaluate the innovation team by how well and how quickly it amplifies weak signals.

S+B: Many companies are seeking to become innovation driven. Given what you’ve discovered in your research, is that an oxymoron?
GOVINDARAJAN: The idea that everybody comes to work every day to break the rules and create revolutions is nonsense. Somebody has got to worry about making money, and in fact, the bulk of the activity within a company should be focused on that.

But you still need to do experiments, because the future is now. The job of leaders is both to make money with the performance engine and to plant some seeds so that the company will make money 10 years from now. Therefore, you have to do enough experiments to yield one or two innovations that are worth scaling up. How many innovation initiatives do you really scale up? Only a few. As long as leaders who say that their companies are innovation driven have this nuanced understanding, I have no problem with it.

S+B: Why only a few initiatives?
GOVINDARAJAN: Because every time you start a new innovation initiative — which the performance engine cannot do because of its limits of reach — you are essentially creating a startup company. This is a major organizational undertaking. Nobody has the bandwidth to start hundreds of innovation initiatives. Each company will have to assess the dynamics of its industry and decide how many innovation initiatives it really needs. But this is so difficult that you should only do a few, and do them right. And doing them right takes real courage and conviction on the part of the CEO, who must be willing to live with organizational discomfort. If you are the head of Ford Motor Company and you want to create a small, inexpensive car targeted at the Indian market, you have to change the company’s fundamental mind-set. You have got to put a dedicated team in India and give them a lot of resources and power. This is a very discomforting thing when you are sitting in Detroit

If you invest in R&D and make the product better everybody wins.  Marketing has an easier job (because you get more referral customeres).  Sales has an easier time closing deals, because the product demo sings.  Customer service has an easier job because customers are happier with the product (and cancel less).  So, economically, investing in the product has the most leverage.  That’s why we’re taking so much of our available dollars and pouring them into the product.
Characteristics of the Entrepreneur:
* ''Freedom'' in actions
* ''Believe'' in your own competences
* ''Passion'' for the concepts
* ''Responsibilities'' for your actions
* ''Trust'' in others
* above it all: ''Just do it!''
<<image /static/files/MBI/Module%2011/entrepreneurqualities.PNG width:600>>
|''Description''|Display dot graphs|
|''License''|[[BSD open source license]] from [[IDEIA|]]|
|''Keywords''|visualization, graph, diagram, forcedirected, animated|
Draw a graph
<<graph dimX dimY nolinks backlinks strict tags:tags anim:timing filter:tags start:tiddlers plot:tiddler>>
* ''nolinks''  : do not follow forward links and tags
* ''nogroups'' : do not treat "tag" links as group links
* ''backlinks'' : follow reverse links
* ''strict'' : exclude all node not tagged with "tags" (otherwise direct links are included)
* ''notags'' : ignore tag links
* ''fields'' : read from fields instead of slices
* ''anim'':animate graph for some time
* ''tags'' : choose tiddlers with specified tags
* ''filter'' : exclude those tiddler with specified tags
* ''start'' : check also from these tiddler (+ thier direct links)
* ''plot'' : use the text of this tiddler to draw a graph from the text and not the tiddlers node, annot, link, type in an array. '->' for direct link, '<-' for backlinks and ':>' or ':<' for tag/group link.
Change node properties with slices
* ''color'' : graph.fillStyle, graph.strokeStyle, 
* ''position'' : graph.X, graph.Y, graph.repulse
* ''display'': graph.title, graph.subTitle, graph.ignore
* ''life'' : graph.endLife, graph.startLife
In GraphConfig, you can configure style for links by combining
* ''link type'': direct, titled, bracket, back, tag
* ''display'' : fillStyle, strokeStyle, lineWidth, margin, rounded
|15.01.09| 0.1.0|Initial release, draw graph with anotated nodes from tiddler|
|16.01.09| 0.2.0|Add animation (the 3 parameter is the number of steps calculated)|
|19.01.09| 0.3.0|Added ability to move nodes, graph dynamically updated|
|22.01.09| 0.4.0|Support of multiple tags and filter also|
|22.01.09| 0.5.0|Can set color for node and links, depending of it's type|
|23.01.09| 0.6.0|Annotated links can be overiden by a tiddler|
|23.01.09| 0.6.1|Fix a bug : now start can have multiple tiddlers|
|23.01.09| 0.7.0|Now a new slice graph.subtitle|
|28.01.09| 0.8.0|Add preliminary time support in graph : graph.endLife|
|02.02.09| 0.8.1|Add "strict" filter for some graph displaying unwanted nodes|
|03.02.09| 0.8.2|Add graph.ignore to filter some individual links in graph|
|04.02.09| 0.8.3|Initial position of node is not 0 any more, so that no more random graphs|
|04.02.09| 0.9.0|Option to read from slices or from fields|
|05.02.09| 0.9.1|Add : graph.startLife|
|05.02.09| 0.9.2|Add : graph.repulse : so that nodes can be more isolated (useful for anotated links|
|13.02.09| 0.9.3|Links can be individually colored in their tiddler if it exist, rather than in GraphConfig|
|20.02.09| 0.10.0|Add : rounded rectangle + collapsible text for links|
|13.04.09| 0.11.0|Add direct graph plotting from table syntax|
|13.04.09| 0.12.0|Add group node support (eq tag link = group link)|
|13.04.09| 0.12.0|Add 'dot' syntax to direct graph (it means that it can read plain text to draw graphs|
!Known BUGS
* In some cases when every node in the graph have exactly the same tags, it can create a NaN anomaly. To bypass it, just change some tags.
* the new functionnalité collapsible links is not yet compatible with "full links" ... full links are links described in a tiddler
if(!version.extensions.GraphPlugin) {
version.extensions.GraphPlugin = {installed:true};

config.macros.graph = {};

config.macros.graph.handler = function(place,macroName,params,wikifier,paramString,tiddler)
	var box = createTiddlyElement(place,"div",null,"graphBox",'');
	box.title = "Graph"; = "graphBox"; = "relative";
	var canvas = document.createElement("canvas");
	canvas.width = params[0];
	canvas.height = params[1];
	var ctx = canvas.getContext("2d");
	var timer = document.createElement("div");

	var parameters = paramString.parseParams("noname",null,true);
	var includeTags = parameters[0]["tags"]?parameters[0]["tags"][0].split(","):[];
	var startTiddlers = parameters[0]["start"]?parameters[0]["start"][0].split(","):[];
	var plotTiddlers = parameters[0]["plot"]?parameters[0]["plot"][0].split(","):[];
	var excludeTags = parameters[0]["filter"]?parameters[0]["filter"][0].split(","):[];
	var anim = parameters[0]["anim"]?parseInt(parameters[0]["anim"][0]):0;
	var results = [];
	if (parameters[0]["start"]) {
		for (var k=0; k<startTiddlers.length; k++)
			results.push( store.getTiddler(startTiddlers[k]) );
	} else store.forEachTiddler(function(title,tiddler) {
		if (tiddler.tags.containsAny(includeTags) 
		 && !tiddler.tags.containsAny(excludeTags))

var g = new Graph(box);
g.useSlice = parameters[0]["noname"].indexOf("fields") == -1;
g.useGroup = parameters[0]["noname"].indexOf("nogroups") == -1;
var strict = parameters[0]["noname"].indexOf("strict") != -1;
var waitingList = [];
var time=0;

	if (parameters[0]["plot"]) {
		for (var k=0; k<plotTiddlers.length; k++)
			plotTiddler( store.getTiddler(plotTiddlers[k]) );

for (var i=0; i<results.length; i++)
	if (!g.getValue(results[i].title, "graph.startLife"))

function plotGetTableLine(line) {
     params = line.split('|');
     node = params[1];
     if (!node) return;
     annot = params[2];
     link = params[3];
     linktype = params[4]?params[4]:"plot";
     if (link)
       g.addEdge(node, link,{type:linktype, text:annot?annot:""})
       g.addNode(node, annot); 

function plotGetWikiLinks(node, line, mode) {
        // mode = 0 : direct link, mode = 1 : backlink, mode = 2, group link
	node = node.replace(/ /g,'').replace(/^\*/g, '').replace(/\'/g, '').replace(/\[/g,'').replace(/\]/g,'');
	var tiddlerLinkRegExp = config.textPrimitives.tiddlerForcedLinkRegExp;
function addInternalLink(link, annot) {
               switch (mode) {
                       case '->' : g.addEdge(node, link,{type:"plot", text:annot}); break;
                       case '<-' : g.addEdge(link, node,{type:"plot", text:annot}); break;
                       case ':>' : g.addEdge(node, link,{type:"tag", text:annot}); break;
                       case ':<' : g.addEdge(link, node,{type:"tag", text:annot}); break;

	//tiddlerLinkRegExp.lastIndex = 0;
	var formatMatch = tiddlerLinkRegExp.exec(line);
	while(formatMatch) {
		//var lastIndex = tiddlerLinkRegExp.lastIndex;
		if(formatMatch[2-t] && !config.formatterHelpers.isExternalLink(formatMatch[3-t])) // titledBrackettedLink
                        addInternalLink(formatMatch[3-t], formatMatch[2-t], node, mode)
		else if(formatMatch[4-t] && formatMatch[4-t] != this.title) // brackettedLink
			addInternalLink(formatMatch[4-t], "", node, mode);
		//tiddlerLinkRegExp.lastIndex = lastIndex;
		formatMatch = tiddlerLinkRegExp.exec(line);


function plotTiddler(tiddler) {
  var lines = new Array();   
  lines = tiddler.text.split("\n");
  for (var i=0; i < lines.length; i++) {
    var line = lines[i]; 
    if (line == "") continue;
    if (line[0] == "|") plotGetTableLine(line);
    var n = line.indexOf("->");
    if (n != -1) plotGetWikiLinks(line.slice(0, n), line.slice(n+2), '->');
    n = line.indexOf("<-");
    if (n != -1) plotGetWikiLinks(line.slice(0, n), line.slice(n+2), '<-');
    n = line.indexOf(":>");
    if (n != -1) plotGetWikiLinks(line.slice(0, n), line.slice(n+2), ':>');
    n = line.indexOf(":<");
    if (n != -1) plotGetWikiLinks(line.slice(0, n), line.slice(n+2), ':<');

function relink() {
	for (var i=0; i<results.length; i++)
		if (!g.getValue(results[i].title, "graph.startLife"))

function tiddlerIndexOf(a, t) {
	for (var i=0; i<a.length; i++)
		if (a[i].title == t) return i;
	return -1;

function addLivingEdge(ta, tb, info) {
	if (!g.getValue(tb, "graph.startLife") )
		g.addEdge(ta, tb, info);
	else if (time >= g.getValue(tb, "graph.startLife" ))
		g.addEdge(ta, tb, info);

function addLinks(ta) {
	var ignoreList = g.getValue(ta.title, "graph.ignore");
	ignoreList = ignoreList ? ignoreList.readBracketedList():[];

	if (parameters[0]["noname"].indexOf("notags") == -1) {
		for (var j=0; j<results.length; j++)  {
			var tb = results[j];
			if (ignoreList.contains(tb.title)) continue;
			if ( ta.tags.contains(tb.title) ) 
			addLivingEdge(ta.title, tb.title, {type:"tag", text:""});
	if (parameters[0]["noname"].indexOf("backlinks") != -1) {
		var references = store.getReferringTiddlers(ta.title);
		for(var r=0; r<references.length; r++) {
			if(references[r].title != ta.title
			 && !references[r].tags.contains("excludeLists")
			 && (tiddlerIndexOf(results, references[r].title) != -1 || !strict) 
			 && (!ignoreList.contains(references[r].title)) )
				addLivingEdge(ta.title, references[r].title, {type:"back", text:""});
	if (parameters[0]["noname"].indexOf("nolinks") == -1) {
		var links = ta.annotatedLinks();
		for (var r=0; r<links.length; r++) {
			if ( (tiddlerIndexOf(results, links[r].link) != -1 || !strict)
			 && !ignoreList.contains(links[r].link))
				addLivingEdge(ta.title, links[r].link, links[r].info);


var layouter = new Graph.Layout.Spring(g);
var renderer = new Graph.Renderer.Basic(canvas, g);
var interval = 0; 
if (anim != 0)
	interval = setInterval(animate, 250);

function animate()
	timer.innerHTML = "time :"+time;
	if (isdrag) { = newElementX + 'px';  = newElementY + 'px';
		layouter.reverse(renderer.factorX, renderer.factorY);
	for (var i=waitingList.length-1; i>=0; i--) {
		var current = waitingList[i];
		if (time >= g.getValue(current.title, "graph.startLife")) {
	if (time==anim || time > 500) clearInterval(interval);

var ie=document.all;
var nn6=document.getElementById&&!document.all;
var isdrag=false;					// this flag indicates that the mouse movement is actually a drag.
var mouseStartX, mouseStartY;		// mouse position when drag starts
var elementStartX, elementStartY;	// element position when drag starts
var newElementX, newElementY;
var elementToMove;
var bounds = new Array(4);

function movemouse(e)
	if (isdrag)
		var currentMouseX = nn6 ? e.clientX : event.clientX;
		var currentMouseY = nn6 ? e.clientY : event.clientY;
		newElementX = elementStartX + currentMouseX - mouseStartX;
		newElementY = elementStartY + currentMouseY - mouseStartY;

		/*/ check bounds
		// note: the "-1" and "+1" is to avoid borders overlap
		if(newElementX < bounds[0])
			newElementX = bounds[0] + 1;
		if(newElementX + elementToMove.offsetWidth > bounds[2])
			newElementX = bounds[2] - elementToMove.offsetWidth - 1;
		if(newElementY < bounds[1])
			newElementY = bounds[1] + 1;
		if(newElementY + elementToMove.offsetHeight > bounds[3])
			newElementY = bounds[3] - elementToMove.offsetHeight - 1;*/
		// move element = newElementX + 'px';  = newElementY + 'px'; = null; = null;

		layouter.reverse(renderer.factorX, renderer.factorY);
		return false;

function startDrag(e) 
	var eventSource = nn6 ? : event.srcElement;
	if(eventSource.tagName == 'HTML')

	while (eventSource != document.body && !hasClass(eventSource, "draggable"))
		eventSource = nn6 ? eventSource.parentNode : eventSource.parentElement;

	// if a draggable element was found, calculate its actual position
	if (hasClass(eventSource, "draggable"))
                time = 0;
		isdrag = true;
		elementToMove = eventSource;

		// set absolute positioning on the element		
		// = "absolute";
		// calculate start point
		elementStartX = elementToMove.offsetLeft;
		elementStartY = elementToMove.offsetTop;
		// calculate mouse start point
		mouseStartX = nn6 ? e.clientX : event.clientX;
		mouseStartY = nn6 ? e.clientY : event.clientY;
		/*/ calculate bounds as left, top, width, height of the parent element
		if(getStyle(elementToMove.parentNode, "position") == 'absolute')
			bounds[0] = 0;
			bounds[1] = 0;
			bounds[0] = calculateOffsetLeft(elementToMove.parentNode);
			bounds[1] = calculateOffsetTop(elementToMove.parentNode);
		bounds[2] = bounds[0] + elementToMove.parentNode.offsetWidth;
		bounds[3] = bounds[1] + elementToMove.parentNode.offsetHeight;*/
		document.onmousemove = movemouse;
		interval = setInterval(animate, 50);
		return false;

function stopDrag(e)
	elementToMove = null;
	document.onmousemove = null;
	animate(); // one last time to refresh correctly last mouse pos

document.onmousedown = startDrag;
document.onmouseup = stopDrag;

function hasClass(element, className)
	if(!element || !element.className)
		return false;
	var classes = element.className.split(' ');
	var i;
	for(i = 0; i < classes.length; i++)
		if(classes[i] == className)
			return true;
	return false;

function getStyle(node, styleProp)
	// if not an element
	if( node.nodeType != 1)
	var value;
	if (node.currentStyle)
		// ie case
		styleProp = replaceDashWithCamelNotation(styleProp);
		value = node.currentStyle[styleProp];
	else if (window.getComputedStyle)
		// mozilla case
		value = document.defaultView.getComputedStyle(node, null).getPropertyValue(styleProp);
	return value;

function replaceDashWithCamelNotation(value)
	var pos = value.indexOf('-');
	while(pos > 0 && value.length > pos + 1)
		value = value.substring(0, pos) + value.substring(pos + 1, pos + 2).toUpperCase() + value.substring(pos + 2);
		pos = value.indexOf('-');
	return value;

 * This function calculates the absolute 'top' value for a html node
function calculateOffsetTop(obj)
	var curtop = 0;
	if (obj.offsetParent)
		curtop = obj.offsetTop
		while (obj = obj.offsetParent) 
			curtop += obj.offsetTop
	else if (obj.y)
		curtop += obj.y;
	return curtop;

 * This function calculates the absolute 'left' value for a html node
function calculateOffsetLeft(obj)
	var curleft = 0;
	if (obj.offsetParent)
		curleft = obj.offsetLeft
		while (obj = obj.offsetParent) 
			curleft += obj.offsetLeft;
	else if (obj.x)
		curleft += obj.x;
	return curleft;


!Session Notes
[[M14-S1 - Session - Introduction]]
[[M14-S2 - Session - Patents]]
[[M14-S3 - Session - Designs and Copyright Law]]
[[M14-S4 - Session - Dutch Law]]

Terms introduced in this block:
 'tiddler.tags.contains("Term") &&  tiddler.tags.contains ("M14")'
 function getFirstLine(s) {
 var m = s.match(/\s*(.*)/);
 return m != null && m.length >= 1 ? m[1] : "";
 '"* [["+tiddler.title+"]]"+", "+ getFirstLine(tiddler.text)+"\n"' 

<<snapshot print label:print  id:all>>
<<tiddler [[Step 6, The objective is objections: dealing with resistance]]>>
<<formTiddler [[NewBookTemplate]]>>
<iframe src="" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

<data>{"Author":"Robin Jarvis (Author), Aidan Berry","ReadingCompleted":true,"Title":"Accounting in a Business Context","Rating":"**"}</data>
The time value of money is the value of money figuring in a given amount of interest earned over a given amount of time.

For example, 100 dollars of today's money invested for one year and earning 5 percent interest will be worth 105 dollars after one year. Therefore, 100 dollars paid now or 105 dollars paid exactly one year from now both have the same value to the recipient who assumes 5 percent interest; using time value of money terminology, 100 dollars invested for one year at 5 percent interest has a future value of 105 dollars
In [[Entrepreneurial Finance]]  the Certainty Equivalent Cash Flow or CEQ is defined as a common method of estimating [[Present Value]]. The second common method mentioned is the [[Risk Adjusted Discount Rate]]. In the CEQ method instead of adjusting the discount rate (which is done in the [[RADR]]) the risk adjustment is made directly to the cash flow. After that the risk-adjusted or, better in this case the ''certainty equivalent'' cash flow is converted to [[Present Value]] by discounting at the risk free rate. Thus, if:

$\Large C_{jt}$ is the expected future cash flow of asset $\Large j$ at time $\Large t$ the certainty equivalent cash flow $\Large CE(C_{jt})$ can be described as follows:

$\Large CE(C_{jt})$ $\Large =$ $\Large C_{jt} - RD_{jt}$

$\Large RD_{jt}$ is the dollar valued discount to $\Large C_{jt}$ that is required to convert the risky expected cash flow to its certainty equivalent.

Certainty Equivalent Cash Flow (CEQ) is:

$\Large PV$ - $\LARGE \sum{\frac{C_t-RD_r}{(1+r_{pt})^t}}$

* What cash flows should be valued?
* How risky cash flows adjusted to their certainty equivalents?
* What is the discount rate for valuing certain future cash flows?
Many manufacturing firms begin their global expansion as exporters and only later switch to another mode for serving a foreign market. We take a close look at the mechanics of exporting in the next chapter. Here we focus on the advantages and disadvantages of exporting as an entry mode.

Exporting has two distinct advantages.

* It avoids the often-substantial costs of establishing manufacturing operations in the host country.
* Exporting may help a firm achieve experience curve and location economies (see Chapter 12)

By manufacturing the product in a centralized location and exporting it to other national markets, the firm may realize substantial scale economies from its global sales volume. This is how Sony came to dominate the global TV market, how Matsushita came to dominate the VCR market, and how many Japanese auto firms made inroads into the US auto market.

Exporting has a number of drawbacks:
* Exporting from the firm's home base may not be appropriate if there are lower-cost locations for manufacturing the product abroad (i.e., if the firm can realize location economies by moving production else where).
** Thus, particularly for firms pursuing global or transnational strategies, it may be preferable to manufacture where the mix of factor conditions is most favorable from a value creation perspective and to export to the rest of the world from that location. This is not so much an argument against exporting as an argument against exporting from the firm's home country. Many US electronics firms have moved some of their manufacturing to the Far East because of the availability of low-cost, highly skilled labor there. They then export from that location to the rest of the world, including the United States.
* High transport costs can make exporting uneconomical, particularly for bulk products.
** One way of getting around this is to manufacture bulk products regionally. This strategy enables the firm to realize some economies from large-scale production and at the same time to limit its transport costs. For example, many multinational chemical firms manufacture their products regionally, serving several countries from one facility.
* Tariff barriers can make exporting uneconomical
** Similarly, the threat of tariff barriers by the host-country government can make it very risky. An implicit threat by the US Congress to impose tariffs on imported Japanese autos led many Japanese auto firms to set up manufacturing plants in the United States. By 1990, almost 50 percent of all Japanese cars sold in the United States were manufactured locally-up from 0 percent in 1985.
* When a firm delegates its marketing in each country where it does business to a local agent. the foreign agent may not do as good a job as the firm would if it managed its marketing itself.
** There are ways around this problem, however. One way is to set up a wholly owned subsidiary in the country to handle local marketing. By doing this, the firm can exercise tight control over marketing in the country while reaping the cost advantages of manufacturing the product in a single location. 

<img src="/static/files/MBI/Books/The%20Four%20Steps%20to%20the%20Epiphany/CustomerDevelopment_Creation.PNG" width=500>

|[[Customer Creation]]|||||||h
|''Get Ready''|[[Market Type Questionnaire]]|[[Choose Market Type|[[Choose 1st year objectives]]|
|''Position''|[[Select PR Agency]]|[[Positioning Audits]]|[[Match positioning to Market Type]]|
|''Launch''|[[Select Launch Type]]|[[Select Customer Audiences]]|[[Select the messengers]]|[[Craft the messages]]|[[Understand the Message Context]]|[[Understand the Media]]|
|''Create Demand''|[[Select Demand Creation Strategy]]|[[Agree on Demand Creation Measurements]]|[[Iterate or Exit Customer Creation]]|

Part of: [[Customer Development Checklist]]
Introduction to the ways and means of entrepreneurial finance: where corporate finance ends and guerrilla financing begins!
Preparation Questions:
1. How would you qualify the fund raising process at LHSP prior to the contemplated Nasdaq Initial Public Offering (IPO)? What are its strengths and weaknesses?
2. What are the main alternatives to fund such an early stage venture? What are their pros and cons?
3. What are the main drivers in deciding an "optimal financing policy" for a firm like Lernout and Haupie?
Read the [[M10-S2 - Case - Lernout and Hauspie Speech Products]] as an interesting description of the fund raising process of a dynamic, high technology Belgian company. Read the assigned document to kick start your thought process on entrepreneurial financing.
[[M10-S2 - Reading - Resource maps and financing ecotypes: A visual approach to resourcing the entrepreneurial business]], Babson Entrepreneurial Review, Spring 1998.
[[M10-S2 - Case - Lernout and Hauspie Speech Products]]
Strategic partners are partners which along with their capital bring a strategic asset to the table.The spider plot below indicates the strengths and weaknesses of strategic partners as a source of capital:
<img src="/static/files/MBI/Module%2010/strategicpartners.PNG width=500>

|Financial characteristics|Non-financial characteristics|h
|[[Cost of money]]|[[Speed of decision]]|
|[[Fund-Raising Expenses]]|[[Industry/Product Knowledge]]|
|[[Depth of pockets]]|[[Management Skills]]|
|[[Collateral requirements]]|[[Flexibility]]|
|[[Risk-Bearing Abilities]]|[[Other resources]]|
|[[Reputation / Signaling]]|[[Control tendencies]]|

Part of: [[Different sources of capital]]
There are a lot of interesting people using ~TiddlySpace that you might like to keep track of and interact with. There are a number of ways of doing this.

If you see a number in the speech bubble in one of your tiddlers, it means that someone is writing about the same thing as you. You can find out what they're saying by clicking on it. Likewise, if you see something interesting in someone else's space, you can respond to it and write up your own thoughts on the subject by clicking "Reply to this tiddler".

Additionally, if you find anyone interesting, or you find an interesting looking space and you'd like to know when it's changed, you can "follow" that space. To do this, simply create a tiddler with the title: {{{@space-name}}} and tag it {{{follow}}}. If you want, you can store some notes about that space in the body of the tiddler.

If you then want to know what happening, simply [[include|How do I include/exclude spaces?]]@docs the @tivity space and then visit your activity stream at [[/activity|/activity]], or just visit the @tapas space directly.

!Not sure who to follow?
Here's a few suggestions:
* @fnd
* @cdent
* @pmario
* @bengillies
* @dickon
In this step we aim to present our products or service in such a way that it is the best option for the customer. More than talking it is important to listen. What are the customers concerns? Throughout the interaction we check frequently how and to what extend we meet the perceived needs and how we can possibly improve our proposal. The goals in this step are:
* How do i present the solution to the customers problem?
* How do i use 'trial closes' to flush out objections so i can deal with them?
!Key points
* Customers do not buy programs or products. They buy //solutions//
* No solution = No sale
* [[The Problem Awareness Grid]] can help identify where a customer is with respect to understanding his/her situation.
* Don't make the pitch //make the sale//. Use [[The Six Step Process for making your case]] to show you how.
* Tie-down questions unsure that you really have settled on a particular issue.
* Watch for any [[Buying Signs]], then move to the [[Trial Close]]
* Learn about [[The Five Pointers on Price]]
We talked about [[Selecting an entry mode]]. Xavier showed this decision tree:

<<image /static/files/MBI/Module%2021/Decision%20Tree%20Entry%20Modes.png width:800>>

Listen to the session audio below:
<<tiddler [[M21-S3b - Audio- Entry Modes]]>>
Private equity is money invested in companies that are not publicly traded on a stock exchange nor invested as part of buyouts of publicly traded companies in order to make them private companies.

Among the most common investment strategies in private equity include leveraged buyouts (LBO), venture capital, growth capital, distressed investments and mezzanine capital. Many times investments are short in nature.


* Make money by lending you money and get an ROI in a certain timeperiod
* Use your business plan to find investors for you
* Interested to see a return on investment
In this step you begin to map out the customers understanding of his own problem. What problem is he/she trying to solve? You will need to figure out different aspects of the problem:
* What is the urgency for the customer?
* Who are involved in the decision process?
The discovery phase is where you start to //name// the problem. Your goal is to get the answers to the following questions:
* How do i discover the problem that drove the customer to this market?
* How do uncover the key purchase criteria that will drive this sale?
* How do i help the customer discover his key problem?
* How do i identify the best solutiuons for this problem?
* How do i discover which of the benefits of my product are most relevant for this customer?

!Questioning for results
<<tiddler [[Questioning for results]]>>
The picture below clearly depicts why it is better to prevent objections than to [[Dealing with Objections]] after you went too fast through the [[SPIN]] Questions:

<<image /static/files/MBI/Module%2016/preventingobjectionhandling.jpg width:600>>
A Physical Landlord sells the right to use a physical asset. The asset may, for example, be a location (such as an amusement park) or equipment (such as construction equipment). Depending on the kind of asset, the payments by customers may be called “rent”, “lease”, “admission”, or other similar terms. This business model is common in industries like real estate rental and leasing, accommodation, airlines and recreation. Examples: * Marriott
* Hertz division of Ford
In the [[Lifestyle Segmentation]] framework defined by gfk roper four basic value drivers are identified:
* Need have: Materialism / People orient on //price//
* Need be: Post-materialism / People orient on //quality//
* Need for passion:  Hedonism / People orient on //pleasure//
* Need for security: Peace / People orient on //security//

<<image /static/files/MBI/Module%2011/consumervaluedrivers.png width:600>>

[[Levered Beta]] is the beta that reflects a capital structure that does include debt. 
The [[Unlevered Beta]] is the [[Beta]] of a company without any debt. Unlevering a beta removes the financial effects from leverage.

<<image /static/files/MBI/Module%2012/leveredbeta.PNG width:600>>

$\Large  \text{Unlevered beta}$ = $\huge \frac{B^L}{1+(1-T_c)*\frac{D}{E}}$

* $\Large {B^L}$ is the levered, published beta
* $\Large {D}$ is the companies debt
* $\Large {E}$ is the companies equity
* $\Large {T_c}$ is the corporate tax rate.

!!+ The point of the unlevered beta is to ''//remove//'' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.

An //Annuity// is financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. The [[Present Value]] of an annuity is:

$\large \text{PV (Annuity)}$ $=$ $\LARGE \frac{1}{r} - \frac{1}{r(1+r)^t}$

In  [[Principles of Corporate Finance]] an annuity is defined as a an investment that produces a level stream of cash flows for a defined number of periods.

The future value of an annuity of a level of cash streams of \$1 is:

$\large \text{PV (Future Annuity)}$ $=$ $\LARGE \frac{(1+r)^t-1}{r}$


config.macros.QuickTimeFragment = {
  handler: function (place, macroName, params, wikifier, paramString, tiddler)
     var movie;

     if (params[0] != null)
           movie = params[0];

     resultString = '<html>';
     resultString += '<table border="0" cellpadding="0" align="left">';
     resultString += '<tr><td>';

     resultString += '<object classid="clsid:02BF25D5-8C17-4B23-BC80-D3488ABDDC6B" width="425" height="344" codebase="">';
     resultString += '<param name="src" value="';
     resultString += movie;
     resultString += '">';

     resultString += '</param><param name="autoplay" value="false">';
     resultString += '</param><param name="controller" value="true">';
     resultString += '</param><param name="loop" value="false">';

     resultString += '</param><embed src="';
     resultString += movie;
     resultString += '"allowfullscreen="true" autoplay="false" width="425" height="344">';
     resultString += ' </embed></object> ';
     resultString += '</tr></td>';
     resultString += '</table>';
     resultString += '</html>';

<<AudioFragment /static/files/MBI/Module%2017/M17-S3%20-%20Processes.mp3>>
Common mistakes when recognizing a disruptive thread are:
# Companies believe that their most advanced/high end customers will be key to recognizing a disruptive technology. In contrast, disruptive innovations have their roots with over-served customers or customers who did not have access to the product before.
# Managers pay most attention to their largest competitors. But succesful disruptors are often not even on the radar of the incumbents.
# Conventinal thinking suggest that companies with the biggest R&D budget are likely to disrupt. In contrast, companies that succeed disrupting an industry serve customers that the existing competition does not want to serve
To avoid these mistakes ask the following questions dealing with:
# ''Non-served customers''
## Is there a group of people who previously did not have the money or skills to purchase the current offering?
## Did customers have to go to a central inconvenient location to buy the product?
# ''Over-served customers''
## Are there customers at the bottom of the market who would buy the same product for a lower price?
## Is it possible to build a profitable business model while keeping down prices?
## An indicator of over-served customers is that they do not use many of the features that are offered in the most recent version of the product.
# ''Disruptive to competitors''
## Is the innovation disruptive to all companies that are currently competing in a market?
## This reveals a crucial point that innovations are only disruptive in relation to an existing business model or technology.

Part of: [[M8-S2 - Reading - Strategies for E-Business - Chapter 6 - Sustaining Competitive Advantage]]
//Niche re-segmentation// looks at an existing market and asks, “Would some part of this market buy a new product designed to address their specific needs? Even if it cost more? Or worse performance in an aspect of the product irrelevant to this niche. Niche re-segmentation attempts to convince customers that some characteristic of the new product is radical enough to change the rules and shape of an existing market. Unlike [[low-cost re-segmentation|Resegment an existing market as a low cost entrant]], niche goes after the core of an existing market’s profitable business.

Both cases of re-segmenting a market re-frame how people think about the products within an existing market. While re-segmenting an existing market is the most common Market Type choice of new start-ups, it’s also the trickiest. As a low-end re-segmentation strategy, it needs a long-term product plan that uses low cost as market entry to eventual profitability and up-market growth. As a niche re-segmentation, this strategy faces entrenched competitors who will fiercely defend their profitable markets. And both require adroit and agile positioning of how the new product redefines the market.

Part of book: [[The Four Steps to the Epiphany]]
Audio recording of the cases via laptop. Did not capture everyone without error unfortunately:

[[M5-S9 Session Edwin]]
[[M5-S9 Session Marcel]]
[[M5-S9 Session Jan-Jaap]]
[[M5-S9 Session Coert]]
[[M5-S9 Session Dirk-Jan]]
[[M5-S9 Session Oscar]]
[[M5-S9 Session Frans]]
[[M5-S9 Session Mike]]
[[M5-S9 Session Stefan]]
[[M5-S9 Session Bruno]]
[[M5-S9 Session Mike]]
The daily price change of an average stock is approximately [[normally distributed|Normal distribution]]. Based on this given, [[Harry Markowitz|]] developed //''Portfolio Theory''// (heavily criticized by Taleb in [[The Black Swan: The Impact of the Highly Improbable]]). The basics of portfolio theory is that you can minimize the risk of an investment by spreading the investment over multiple securities. If you select multiple projects and plot risk and return in the same graph:

<<image /static/files/MBI/Module%2012/mckenna_fig1.jpg width:500>>

You want to move 'up' for better returns and 'left' for lower risk. The left/top most line denotes the portfolio mix which maximizes return for the lowest risk. Any portfolio along this line is called an //''efficient portfolio''//.
<<tiddler [[10 May 2010 - Communicate meaning]]>>
There are three ways to describe capabilities:
* ''[[Feature]]s''
* ''[[Advantage]]s''
* ''[[Benefit]]s''

Demonstrating capabilities involves transforming [[Advantage]]s into [[Benefit]]s:
* Prevent [[Objections]] than having to "handle" objections
* Help, internal sponsors sell for you most effectively
* Gain buyer support or approval for your solution

Demonstrating capability effectively involves:
* Completing the [[Investigating]] stage and have all [[SPIN]] questions asked
* Your buyer has to express an [[Explicit Need]] that your solution can meet
<<YouTubeFragment 3I-JByPDJm0>>
<div class='toolbar'
	macro='toolbar [[ToolbarCommands::ViewToolbar]] icons:yes height:16 width:16 more:popup'>
<div class='heading'>
	<span class='spaceSiteIcon'
		macro='tiddlerOrigin label:no spaceLink:yes height:48 width:48 preserveAspectRatio:yes'>
	<span class="titleBar">
		<div class='title' macro='view title text'></div>
		<span class="subtitle" macro='viewRevisions page:5'>
			last modified on
			<span macro="view modified date"></span>
	<div class='tagClear'></div>
<div class='content'>
	<div class='viewer' macro='view text wikified'></div>
<div class='tagInfo'>
	<div class='tidTags' macro='tags'></div>
	<div class='tagging' macro='tagging'></div>
        <div class='counted' macro='BBClonePlugin'></div>
In finance the risk free rate of return is defined to be rate of return that you can get without zero risk, usually a government treasure bonds.
Emotional Intelligence is the ability to manage ourselves and relationship with others effectively. There are four fundamental elements of it described below:

!Self Awareness
* ''//Emotional self-awareness//'': the ability to read and understand your emotions as well as recognize their impact on work performance. relationships, and the like.
* ''//Accurate self-assessment//'': a realistic evaluation of your strengths and limitations.
* ''//Self-confidence//'': a strong and positive sense of self-worth

!Self Management
* ''//Self control//'': the ability to keep disruptive emotions and impulses under control
* ''//Trustworthiness//'': a consistent display of honesty and integrity.
* ''//Conscientiousness//'': the ability to manage yourself and your responsibilities.
* ''//Adaptability//'': skill at adjusting to changing situations and overcoming obstacles.
* ''//Achievement orientation//'': the drive to meet an internal standard of excellence.
* ''//Initiative//'': a readiness to seize opportunities.

!Social Awareness
* ''//Empathy//'': skill at sensing other peopIe's emotions, understanding their perspective, and taking an active interest in their concerns.
* ''//Organizational awareness//'': the ability to read the currents of organizational life, build decision networks. and navigate politics.
* ''//Service orientation//'': the ability to recognize and meet customers' needs.

!Social Skill
* ''//Visionary leadership//'': the ability to take charge and inspire with a compelling vision.
* ''//Influence//'': the ability to wield a range of persuasive tactics.
* ''//Developing others//'': the propensity to bolster the abilities of others through feedback and guidance.
* ''//Communication//'': skill at listening and at sending clear, convincing, and well-tuned messages.
* ''//Change catalyst//'': proficiency in initiating new ideas and leading people in a new direction.
* ''//Conflict management//'': the ability to de-escalate disagreements and orchestrate resolutions.
* ''//Building bonds//'': proficiency at cultivating and maintaining a web of relationships.
* ''//Teamwork and collaboration//'': competence at promoting cooperation and building teams.
!Learning objectives
* Understand the conditions under which international expansion is desirable and likely to succeed
* Develop systematic knowledge of the means of international expansion, and when each mode of entry is appropriate
Read the texts: [[Selecting an entry mode]] Entry Modes; Selecting an Entry Mode.

!Session preparation
The first extract is largely descriptive. It might be that one or more of the entry modes described are not obviously applicable to your venture; for instance, franchising is unlikely to be, so you can skim that section. Still, having a systematic understanding of the options is critical in asking the right questions for each venture and project.
* In general, what does it take for a firm to decide to invest abroad? What are the potential gains and risks?

!Questions to consider
* What does this mean for my venture?
* What foreign entry modes might apply to my venture, and how would I choose among those?
!Object of play
Some of the best ideas are compilations from multiple contributors. Brainwriting is a simple way to generate ideas, share them, and subsequently build on them within a group. Access to multiple hands, eyes, and minds can yield the most interesting results. 
!Number of players
!Duration of play
30-45 minutes
!How to play
# In a space visible to the players, write the topic around which you need to generate ideas and draw a picture of it. An example of a topic might be “Employee Recognition Program.”
# Distribute index cards to each player and ask them to silently generate ideas related to the topic and write them on the cards.
# As they complete each idea, ask the players to pass that idea to the person on their right.
# Tell the players to read the card they received and think of it as an “idea stimulation” card. Ask them to add an idea inspired by what they just read or to enhance the idea and then pass again to their right.
# Continue this process of “brainwriting” and passing cards to the right until there are various ideas on each card.
## Optional activity: Ask the players to write an idea on a piece of paper and then fold it into an airplane and fy it to another participant.. Continue writing and fying the planes until each piece of paper has several ideas. Conclude with steps 6 and 7.
# Once fnished, collect the cards and ask for help taping them to the wall around the topic and its picture.
# Have the group come to the wall to review the ideas and draw stars next to the ones they fnd most compelling. Discuss.
## Optional activity: Create an idea gallery in the room using fip-chart pads and stands. Ask players to write as many ideas on the sheet as they can and then wander around the room and add ideas to the other sheets. Continue this process until each sheet has a good number of ideas.
In a typical group setting, extroverts tend to dominate the verbal contributions. And while their contributions are certainly important, it can be difcult to hear from quieter players who also have something valuable to ofer. Let the players know that this play is 
intentionally silent. It afords the quiet people the opportunity to generate ideas without having to verbalize to the whole group, and it gives you certainty that you’ll hear from every player in the room. Brainwriting also allows ideas to emerge before being critiqued 
and creates a space for them to be co-created, with multiple owners, and therefore a greater chance of follow-through.

// The Brainwriting game is based on the same-named activity in Michael Michalko’s Tinkertoys. Horst Geschke and associates at the Batelle Institute in Frankfurt, Germany, developed a variety of these creative-thinking techniques referred to as “brainwriting.” //

From the book: [[Gamestorming - A Playbook for innovators, Rulebreakers and Changemakers]]
The [[Normal distribution]] is the most widely used statistical distribution. It's formula is given by:

$\Large P(x) = \frac{1}{{\sigma \sqrt {2\pi } }}e^{{{ - \left( {x - \mu } \right)^2 } \mathord{\left/  {\vphantom {{ - \left( {x - \mu } \right)^2 } {2\sigma ^2 }}} \right. } {2\sigma ^2 }}}$

The [[Central Limit Theorem]] says that if you keep drawing larger and larger samples (like rolling 1, 2, 5, and, finally, 10 dice) and calculating their mean tthe sample means (averages) form their own normal distribution (the sampling distribution). The normal distribution has the same mean as the original distribution and a variance that equals the original variance divided by <n>, the sample size. <n> is the number of values that are averaged together not the number of times the experiment is done.

The [[Confidence interval]] for population mean
Full article: [[Mohanbir Sawhney, Robert C. Wolcott, and Inigo Arroniz, “The twelve different ways for companies to innovate”|/static/files/MBI/Module%208/61695-12WaysToInnovate.pdf]]

The article makes clear that innovation can happen in many ways and along different axes:
* Business innovation is about ''new value'', not new //things//
* Business innovation comes in many flavors
* Business innovation is ''systematic''

The [[Innovation Radar]] displays 12 dimensions of business innovation anchored by the offerings a company creates, the customers it services, the process it employs and the points of presence it uses to take its offerings to market. It can be used as a tool to help explore in which ways a company can innovate. The four most important dimensions are:
* Offerings
* Customers
* Processes
* Presence

<img src="/static/files/MBI/Module%208/innovationradar.PNG" width=400>
Between the four anchors are 8 other dimensions that can serve as avenues of pursuit:
* ''Offerings''
** Offerings are a firms products and services. Innovation along this dimensions requires the creation of new products and services that are valued by the customers
** ''Platform''
*** A platform is a set of common components, assembly methods or technologies that serve as building blocks for a portfolio of products or services.
*** Platform innovation involves exploiting the "power of commonality" - using modularity to create a diverse set of derivative offerings more quickly and cheaply than standalone
*** Innovations along this dimension are often overlooked even though their power to create value can be considerable.
** ''Solution''
*** A solution is a customized, integrated combination of products, services and information that solves a customer problem. Solution innovations creates value for the customers though the breadth of the assortment and the depth of integration of the different elements.
* ''Customers''
** Customers are the individuals or organizations that use or consume a company's offerings to satisfy a certain need. To innovate along this dimension, the company can discover new customers segments or uncover unmet needs.
** ''Customer experience''
*** This dimension considers everything a customers sees, hears, feels and otherwise experiences while interacting with a company in any moment.
*** To innovate here, the company needs to rethink the interface between the organization and its customers
** ''Value capture''
*** The value capture refers to a mechanism that a company uses to recapture the value it needs.
*** To innovate along this dimension the company can discover untapped revenue streams, develop novel pricing systsems and otherwise expand its ability to capture value from interaction with customers and partners.
* ''Processes''
** Processes are the configurations of business activities used to conduct internal operations. To innovate along this dimension a company can redesign its processes for greater efficiency, higher quality and faster cycle time.
** ''Organization''
*** This is the way a company structures itself, its partnerships and its employee roles and responsibilities. Organization innovation often involves rethinking of the scope of a firm's activities as well as redefining the roles, responsibilities and incentives of different business units and individuals.
** ''Supply chain''
*** A supply chain is the sequence of activities and agents that moves goods, services and information from source to delivery of products and services. To innovate in this dimension, a company can streamline the flow of information through the supply chain, change its structure or enhance the collaboration of its participants.
* ''Presence''
** Points of presence are the channels of distribution that a company employs to take offerings to market and the places where its offerings can be bought or used by customers. Innovation along this dimension involves creating new points of presences or using existing ones in creative ways.
** ''Networking''
*** A company and its products and services are connected through a network that can sometimes become part of the firm's competitive advantage. Innovations in this dimension consist of enhancements to the network that increases the value of the customers offerings.
** ''Brand''
*** Brands are symbols, words or marks through which a company communicates a promise to its customers. to innovate in this dimension, the company leverages or extends its brand in creative ways.

While [[Porter's five forces]] framework focusses on the negative effects that market participants can have on a firms profitability, the co-optition framework enriches this perspective by highlighting the positive aspects such as:
*Joint setting of technology and other standards
** This is often a prerequisite for ensuring the growth of an industry.
* Joint developments
** Can offer an opportunity for improving quality, increasing demand or streamlining procurement.
* Joint lobbying
** Can help favorable legislation and helps growth and erecting [[Entry barriers]]

See also: [[Co-opetition]]
<<YouTubeFragment nmKGXCEVIdo>>
Part of [[M5-S6 - Reading - Summary Teece - Profiting from technological innovation]]

<img src="/static/files/MBI/Module%205/integrationversuscontracting.PNG" width="400" />

# A profit seeking innovator:
## confronted by weak intellectual property protection AND
## the need to access specialized complementary assets and/or capabilities
## is forced to expand its activities through integration
# Innovators who develop new products that possess ''poor intellectual property protection but which requires specialized complementary capacities'' are more likely to turn their technology into a commercial advantage
# The difficult strategic decisions arise in situations where
## appropriability regime is weak AND
## where specialized assets are critical to profitable commercialization.

[[M5-Strategy-S6 - Summary Teece - Diagram Make or Buy for specialized complementary assets]]
<<AudioFragment /static/files/MBI/Module%2014/M14-S2%20-%20Patents.mp3>>

<<AudioFragment /static/files/MBI/Module%2014/M14-S2%20-%20Patents%20v2.mp3>>

A [[Design]] in the EU
* The appearance of a product resulting from"
** Lines
** Contours
** Colours
** Shape
** Texture
** Materials
* Visible features when in normal 8se
* Features of appearance which are solely dictated by their technical function

[[Design Law]]
[[Database Law]]
[[Copyright Law]]
[[Do's and don'ts]]
An [[Independent variable]] is the variable we can use as an input to predict values of the [[Dependent variable]]

Part of [[M7-Quantitative Decision Methods-S7 - Correlation and Time series]]
See also: [[Dependent variable]]
<div id="jxgbox" class="jxgbox" style="height:400px; width:600px;"></div>

   var board = CreateBassModelBoard();

   var p_slider = board.create('slider', [[0,-2],[10,-2], [0.0,0.03, 1.0]], {name:'p',size:2}, {withLabel:false});
   var q_slider = board.create('slider', [[0,-5],[10,-5], [0.0,0.32, 1.0]], {name:'q',size:1}, {withLabel:false});
   var M_slider = board.create('slider', [[0,0],[0,200], [0.0,100, 2000]], {name:'Market potential,size:1'}, {withLabel:false});

   CreateBass_cF_fsumGraph(board, M_slider);
   CreateBass_fGraph(board, M_slider);

   function CreateBassModelBoard()
      var board = JXG.JSXGraph.initBoard('jxgbox', {boundingbox: [-4,  12, 5, -7], keepaspectratio:true, axis:true, showNavigation:true});
      JXG.removeEvent(board.containerObj, 'mousewheel', board.mouseWheelListener, board);
      JXG.removeEvent(board.containerObj, 'DOMMouseScroll', board.mouseWheelListener, board); 

      return board;

   function Bass_cF_fsum(M, p, q, t)
      Value = M * (1 - exp_p_plus_q_times_t (p,q,t)) / (1+((q/p) * exp_p_plus_q_times_t (p,q,t)));
      return Value ;

   function exp_p_plus_q_times_t (p,q,t)
      return Math.exp (-t * (p + q));

   function Bass_f( M, p, q, t)
      Value = M *  ((Math.pow(p+q,2)/p) * exp_p_plus_q_times_t (p,q,t) / Math.pow(1+(q/p) * exp_p_plus_q_times_t (p,q,t),2))
      return Value ;

   function CreateBass_fGraph(board, M_slider)
      var bassfunction = board.create
                  return Bass_f( M_slider.Y(), p_slider.Value(), q_slider.Value(), x);

   function CreateBass_cF_fsumGraph(board, M_slider)
      var bassfunction = board.create
                  return Bass_cF_fsum( M_slider.Y(), p_slider.Value(), q_slider.Value(), x);
<<AudioFragment /static/files/MBI/Module%2015/M15%20-%20Disc.mp3>>
A ''//frontal attack//'' consists of deciding to go head to head with your competitor to win the deal:

<<image /static/files/MBI/Module%2020/frontalattack.png width:500>>

The approach consist of:
* Demonstrate your superior product
** Better performance
** Better price
** Proprietary strategy
* Demonstrate your superior reputation
** Better relationships
** Lower risks
** Prestige

Drawback is that it is //''expensive''//

Endless articles, books, and blogs have been written on the topic of business plan presentations and pitching to investors. In spite of this wealth of advice, almost every entrepreneur gets it wrong. Why? Because most guides to pitching your company miss the central point: The purpose of your pitch is to sell, not to teach. Your job is to excite, not to educate.

Pitching is about understanding what your customer (the investor) is most interested in, and developing a dialog that enables you to connect with the head, the heart, and the gut of the investor. If you want advice about pitching, you can ask a venture capitalist, but you probably won’t get a very good answer. Most VCs are analytic types, and so they will give you a laundry list of topics you should cover. They won’t tell you what really floats their boat, mainly because they themselves can’t articulate it in useful terms. “I know it when I see it,” is about the best answer you’ll get.

What is the investor most interested in?
The succesive incremental improvement of performance that market incumbents incorporate into their existing products.

See also: [[Disruptive innovation]]
Part of: [[M8-S4 - Reading - Foundations for growth: How to identify and build disruptive new businesses]]
Mutually exclusive events are events in a probability distribution which cannot overlap. You cannot be a man or a woman at the same time:

<img src="/static/files/MBI/Module%207/mutuallexclusive%20events.PNG" width=400>

Part of [[Basic relationships in probability]]
See also: [[Non-mutually exclusive events]]
The underlying assumption that there is a need to choose between [[Cost leadership strategies]] and [[Differentiation strategies]] is that there is a trade-off: a high level of quality usually entails higher cost. A firm that tries both has the risk of becoming 'Stuck in the middle'.

<img src="/static/files/MBI/Module%208/outpacingstrategy.PNG" width=350>

The following factors can undermine the traditional trade-off's:
* Development of new technologies
* Wastefulness
* Economies and scale and learning effects
Part of [[M8-S2 - Reading - Strategies for E-Business - Chapter 5 - Strategy options]]
<img src="/static/files/MBI/Module%205/rolelofenvironment.PNG" width="500" /> 

[[Porter's five forces|M4-S3 - Session notes - Porter Five Forces]] state simply that the profits that firms make are equal to the revenues that they receive from customers in exchange for the products or services that they offer, less the costs of offering them. 

Profits = Revenues - Costs = P(Q) x Q(P)  -C(Q)

# Suppliers have ''high enough bargaining power to extract higher prices'' from industry firms
## the costs to the firms are higher and their profits reduced.
# If these powerful suppliers instead ''get away with offering firms lower-quality inputs'', these firms will end up with inferior products for their customers.
## This in turn will reduce their ability to charge premium prices for the products or they may have to spend more to improve product quality.
Either way, ''industry profits are reduced''

Powerful customers have an analogous effect on firm profitability. They
# Can ''extract lower prices and higher-quality products from firms''
## Lower prices and higher quality mean less profitability.
# A high threat of new entrants forces firms to charge less for their products.
## They may also be forced to take costly measures to create barriers to entry or differentiate their products. 
Either way ''firm profitability is reduced''.

Increased rivalry among existing firms can lead to ''price wars'' or ''costly attempts to differentiate products'', both of which reduce profitability. Substitute products provide a powerful alternative to firms’ products, thereby putting pressure not only on the prices that firms can charge, but also on the quantities that they can sell.

''An industry in which suppliers and buyers have bargaining power, and in which rivalry, the threat of new entry, and the power of substitutes are high, is said to be unattractive because, on the average, the industry’s profits are low''
!Object of play
We understand things by grouping them with other things of similar type and function. An airplane is similar to a helicopter; they’re both fying things. Both are more similar to a bird, which is also a fying thi