Knowing a Winning Business Idea When You See One : White Paper

19Nov08

In this paper, I explain the concepts and frameworks those were mentioned in the world famous authors W. Chan Kim and Renée Mauborgne’s article “Knowing a Winning Business Idea When You See One” then I try to apply the concepts for our CSD project. Please click here to download the PDF. Here is the “Introduction” part of the paper.

Introductionbusiness-school1

In this paper, I will explain the concepts and frameworks those were mentioned in the world famous authors W. Chan Kim and Renée Mauborgne’s article which has the same title as this paper. Then I will try to apply the concepts for our CSD project.

The paper starts with the question of identifying the business ideas which have commercial potential. It gives the example of Motorola’s Iridium satellite phone which was a total failure in the company’s history with an absurd price and low-usability. So what was Motorola’s mistake with Iridium ? The authors state that it was the deadly mistake of rushing a new technology to the market at the wrong time with the wrong price. So a good manager must assess the “commercial readiness” and the potentional of new business ideas. But how?

To answer the question of how, authors have built up a database of more than 100 companies which have innovated successfully and looked for the similarities between them. Then they compared them these companies with underperforming companies. Using this data they have created three analytic tools in order to have a systematic approach to reducing the uncertainties of innovation. These tools are “Buyer Utility Map”, “The Price Corridor of The Mass” and lastly “The Business Model Guide”:

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