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 OPPORTUNITY SCREENING & SEIZING PRODUCT

 SERVICE PLANNING & DEVELOPMENT PROCESS

REPORTERS: Rapanot, Jonalyn


Olayvar, Emmanuel
Mandar, Adrian
SCREENING THE OPPORTUNITY
Opportunity screening is the process of cautiously selecting
the best opportunity. The selection will depend on the
entrepreneur’s internal intent, i.e., the main objective of the
business, and external intent, which will address the needs of
the target market. The entrepreneur should apply due
diligence to eliminate those within the scope of the
entrepreneur’s risk appetite.

Risk appetite refers to the entrepreneur’s


tolerance of business risks.
Time must be considered by the entrepreneur in screening
the opportunities at hand, as it is considered one of the
most critical resources of an entrepreneur. Time should
only be devoted to worthwhile opportunities.
The entrepreneur should say no to an opportunity
if it does not contain any of these business
opportunity elements.
1. Has superior value to customers
2. Solves a compelling problem
3. Is a potential cash cow
4. Matches with the entrepreneur’s
skills, resources, and risk appetite
OPPORTUNITY ATTRACTIVENESS TEST

The Opportunity Attractiveness Test (OAT) (Youngleson, 2009)


aims to help entrepreneurs in ensuring that the opportunity that
they will venture into is an attractive and feasible prospect. It is a
framework to measure how compelling an opportunity is.

 The entrepreneur must answer the test realistically


and avoid overestimation or underestimation.

The answers in the test will be the guiding principles of


the entrepreneur in writing the business plan. The
components of the OAT will be used to channel the
entrepreneur’s direction in data gathering.
1. The “concept” and the “strategy.”
The entrepreneur should think of the reason for the business’
existence. He or she can do this through crafting a brief vision
statement. A vision statement is simply defined as what the
business should do in the future. The entrepreneur should also
devise a value creation proposition. It is the value that the product
or service will offer to the target customers or satisfaction of the
needs.
2. Opportunity metrics.
These are considered as opportunity’s critical success
factors. These factors will approximately determine the
attractiveness of the new venture depending on the total score
that it will generate and the risk appetite of the entrepreneur.
The entrepreneur can extend the scoring system depending
on the complexity of the industry and venture itself. In this
example, the entrepreneur can put 5 as the highest and 1 as
the lowest score.
Total Attractiveness Score

At the end of the test, the entrepreneur should first compute for the total
scores per factor. Then a corresponding weight percentage should be given
as to the importance of the factor to the venture’s overall standing. This
weight must be multiplied to the total score accumulated per test. The
entrepreneur should also established a tiered scale and description on the
total attractiveness score.

Sample Tiered Scale:


4.00-5.00 – Very attractive
3.00-3.99 – Attractive
2.00-2.99 – Tolerable but must take caution and due diligence
1.00-1.99 – Not attractive but too risky
SEIZING THE OPPORTUNITY

Opportunity seizing is the last step in opportunity spotting and assessment.


This is the “pushing through” with the chosen opportunity. Entrepreneurs
should make the best out of this opportunity.

Innovation is the process of positively improving an existing product or


service. It is a key driver for economic growth. There are three types of
innovations according to the degree of distinctiveness.
1. Breakthrough innovation – These innovations, which may also include
inventions, occur infrequently as these establish the platform on which future
innovations in an area developed. Example: the Internet, computer, or the
airplane.

2. Technological innovation – These innovation occur more frequently that


breakthrough innovation. These innovations are technological advancements
of an existing product or service. Example: the wireless fidelity or Wi-Fi, laptop,
and jet airplane.

3. Ordinary innovation – These innovation occur ordinarily as name implies. They


are commonly originating from market analysis and technology pull instead of
a technology push. This means that the market has a strong influence in the
implementation of an innovation. Example: unlimited internet plans, a wireless
mouse and an airbus for economical travelers.
The “newness” is also independent in the eye of the market and company. The
entrepreneur must establish a new product or service offered that will provide
true value to the customers and influence their behavior. The new product or
services should increase the profitability potential of the enterprise.

PRODUCT/SERVICE PLANNING & DEVELOPMENT PROCESS

1. Ideal stage. In this stage, the entrepreneur determines what are feasible
products and services that will perfectly suit the opportunity.

2. Concept stage. Once the acceptable product or service has already been
identified, it will go through concept stage. In the concept stage, the
developed idea will undergo a consumer acceptance test. This includes
getting initial reactions or the primary target market.
3. Product development stage. In this stage, the entrepreneur leverages
on the information generated from the prospective customers via the
concept stage. Actual reactions from prospective customers are
determined.

4. Test marketing stage. The stage validates the work done from the first
three stages to measure success in the commercialization of the
product or service.