BUS 2403 Innovation and Entrepreneurship Project 2

Opportunity Analysis Project

Project 2: Team Based
Worth 30%
Due Week 12
Part A: Written Report
Part B: Elevator Pitch

Learning Outcomes Addressed

1. Students will examine the importance of entrepreneurial ecosystems and innovation

clusters to healthy society and economies. (LO2)
2. Students will learn how to differentiate between an idea and a viable opportunity.
(LO4)

Introduction
For this project, student teams should pick an idea and use the time in class to determine
whether or not their idea is a true opportunity that can be turned into a scalable enterprise. You
will make a presentation to your peers and develop a corresponding written report on your
analysis and learning from contacting users, customers, and partners.

We recommend five basic steps in the process of analyzing an opportunity:

1. Identify potential opportunities. Combine your own personal experiences and creativity
with external forecasts and trend analysis. How is the world changing with respect to
new technologies? What is the impact of globalization on current solutions? What new
requirements will those changes produce? Recent media articles on trends are often a
good place to start.

2. Define your purpose and objectives. Identify your most promising opportunity, being
careful to discriminate between an interesting technological idea and a viable market
opportunity. Prepare an outline which will help you to determine what types of data and
information you need to demonstrate the attractiveness of your chosen opportunity.

3. Gather data from primary sources. It is crucial for you to obtain data from primary
sources. Potential investors will place more trust in well conducted primary research
than in stacks of data from secondary sources. There is simply no substitute for talking
to potential customers from the target market in order to validate the opportunity you
have identified. Consequently, we prefer that you spend time gathering data from
primary, not just secondary, sources. Past teams have found Survey Monkey to be
helpful in gathering primary data. The basic service is free and provides most of the
features you’ll need. Visit Survey Monkey at www.surveymonkey.com

4. Gather data from secondary sources. Countless secondary sources exist on the web and
in various library resources. Try not to get too bogged down in financial and accounting
data.

5. Analyze and interpret the results. Persuasively summarize your results. A key success
factor for a successful project is the depth of your analysis and what you learned from
it. If, after careful research, you have determined that your business idea is not as
promising as you originally thought, it is acceptable to present an OAP that describes

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 BUS 2403 Innovation and Entrepreneurship Project 2

why your idea will not make sense now rather than why it is the next big thing. An
honest, rigorous analysis of an idea that did not survive further scrutiny is preferable to
either (a) a half-baked presentation of an idea your team is unsure of, or (b) an
enthusiastic job of over selling your current idea, even though you know it is
problematic.

Part A: Written Report – Worth 100 marks

Students should use the skills, knowledge, tools and techniques gained in the course (in weeks
1 – 11) to prepare a report on their innovative concept. The report must include the following
sections:
1. Concept and Visions (10%)
Identify your theme and briefly describe a specific issue (problem or area for
improvement) linked to this theme. Describe a product, service, or process linked to
this issue that you would like to innovate, outlines a brief description of limitations to
current specification, functions, uses, and benefits if improving an existing
product/service.
2. Generating Knowledge and Awareness (10%)
Relate how you became aware of this issue and how you increased your knowledge of
this issue. Test your (OAP) idea by talking to at least ten potential users, customers,
and partners, document these discussions, and share what you learned.
3. Generating Ideas (10%)
In formulating your creative and innovative concept, apply at least two of the Tools &
Techniques to actively generate ideas (Brainstorming, Analogy, Attribute Analysis,
Gap Analysis, and Why-Why-Why Analysis). Present your findings and outputs from
this activity (in an appendix if necessary) and analyse these findings and outputs in the
body of the report.
4. Approach to Innovation (10%)
Based on the idea generation outputs and findings, develop a proposal for how you
would like to innovate the product, service, or process. Detail which aspects of the
product, service, or process you propose to change and why. (Specify the ‘Type of
Innovation’; add images, sketches, diagrams, or graphs to illustrate your point).
Describe how your proposed innovation would change the application (function /
benefit / uses / users, etc.) of the product, service, or process.
5. Limitations (5%)
Classify and rate at least three potential risks or limitations to the implementation of
your innovative concept.
6. Market Analysis (10%)
What industry or sector of the economy are you addressing? Why is this market
attractive? What segment of the overall market are you pursuing? What market research
can be done to describe this market need? What are the total industry or category sales
over the past three years? What is the anticipated growth for this industry? If this is a
new market, what is the best analogous market data that illustrates the opportunity?
Project the potential market size and growth for your opportunity.

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BUS 2403 Innovation and Entrepreneurship Project 2

7. Customers and Customer Development (10%)

This is extremely important. You need to have a clear idea of who your target customer
is. The only way for you to be able to do this is to "get out of the building" and speak
with your potential customers. You will need to answer questions such as: What does
the customer need? Why does the customer need it? What is the customer using
today? What is the customer willing to pay for your solution? Why? How will you reach
this customer? You should include both primary (or first-hand) research and secondary
research, emphasizing primary over secondary.

8. Competition and Positioning (10%)

Who else serves this customer need? Who might attempt to serve this market in the
future? What advantages and weaknesses do these competitors and would-be
competitors have? What share of the market do specific competitors serve? Are the
major competitors' sales growing, declining, or steady? What are the barriers to entry
for you? What are the barriers to entry for additional competitors? How could partners
and allies best help you overcome competition from established enterprises or other
startups?

9. Business Model and Lean Startup Philosophy (20%)

Now that you have discovered an opportunity and talked to potential customers, how
will you turn it into a business? How will you make money and when do you expect
your venture to be profitable? What is the major risk to address right away (e.g., market
or technical)? In other words, which hypothesis regarding product or market strategies
needs to be tested right away? Refer to the Financial Plan excel sheet (part of OA
Project). What is the price chosen for your product/service? What will be your expected
revenue stream over a projection of 3 years? What are you total inflows and outflows?
What are your sources of capital? If everything goes according to your plan, what is the
value of your business in 36 months today?
10. Learning and Adaptation (5%)
What did you learn between the time you chose the idea and wrote the first draft of the
report and producing the final written report? Is this idea a true opportunity or not?

Grade Scale
Minimum Above
Unacceptable Satisfactory Outstanding
requirements requirements
0 – 59 65-74 85-100
60– 64 75-84
Largely free of
Most Clear, well-explained,
Significant errors,
Errors so information error-free work
errors, demonstrates
significant is correct and demonstrating critical
information critical thought
that the work well- thinking, with clear
mostly with well-
is not passing presented, evidence of
unclear or explained
quality with few independent work and
incorrect coverage of all
errors authentic research.
topics.

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 BUS 2403 Innovation and Entrepreneurship Project 2

Written Report Grading Rubric

Project 2 – Opportunity Analysis Project/Written Report –
10%
Marks
Report Contents Comments
Awarded
1. Concept and Vision (10%)
• Students clearly identify a theme and describe the specific
issue (problem or area for improvement) linked to the theme.
• Students describe a product, service, or process linked to the /10
issue they want to resolve.
• Students outline a brief description of limitations to current
specification, functions, uses, and benefits if improving an
existing product/service.
2. Generating Knowledge and Awareness (10%)
• Students demonstrate awareness of the theme.
• Students highlight how they increased knowledge of the issue. /10
Students test their (OA) idea by talking to at least ten potential
users, customers, and partners, document these discussions,
and share what they learned.
3. Generating Ideas (10%)
• Students apply at least two of the Tools & Techniques to
actively generate ideas (Brainstorming, Analogy, Attribute
/10
Analysis, Gap Analysis, and Why-Why-Why Analysis).
• Students present findings and outputs from the activity (in
appendices if necessary) and analyses the findings and outputs
in the body of the report.
4. Approach to Innovation (10%)
• Based on the idea generation outputs and findings, students
propose how to innovate a product, service, or process.
• Students detail which aspects of the product, service, or
process to change and why. (Specify Schumpeter’s ‘Type of
/10
Innovation’ (e.g. new or improved, new process, new market,
new materials, etc.)’; add images, sketches, diagrams, or
graphs to illustrate point).
• Describe how your proposed innovation would change the
application (function / benefit / uses / users, etc.) of the
product, service, or process.
5. Limitations (5%)
• Students classify and rates at least three potential risks or /5
limitations to the implementation of the proposed innovative
concept, and suggest mitigation.
6. Market Analysis (10%)
• Students discuss the industry and sector of the economy they
/10
are addressing.
• Students address market size, segmentation, growth for their
opportunity.

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BUS 2403 Innovation and Entrepreneurship Project 2

7. Customers and Customer Development (10%)

• Students discuss customer’s needs.
• Students address what the customer is using today. /10
• Students discuss what the customer is willing to pay.
• Students discuss how to reach the customer.
• Students include primary and secondary research.
8. Competition and Positioning (10%)
• Students discuss the competition.
/10
• Students discuss who else might serve this market in the
future.
• Students highlight barriers to entry.
9. Business Model and Lean Start-up Philosophy (20%)
• Students discuss how they will make money and when do you
expect their venture to be profitable. /20
• Students discuss what the major risk to address right away is
(e.g., market or technical).
• Students discuss their financial plan with a 3Y projection.

10. Learning and Adaption (5%)

• Students discuss if the idea is a true opportunity.
• Students discuss what they learned between the time they /5
choose their idea and the final draft of the report.
• Students address market size, segmentation, growth for their
opportunity.

Total Grade /100

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 BUS 2403 Innovation and Entrepreneurship Project 2

Part B: Pitch / Presentation – Worth 100 marks.

You will in this part do a “dragons den” style pitch that will last no more than 5 minutes. The
pitch will be presented to the class / your team, who will then be given the opportunity to ask
questions and give feedback, as well as questions from your assessor.

Marks will be awarded as follows: The content requirements and marks awarded will be as
follows:

Project 2 – Opportunity Analysis Project/Pitch – 10%

1. Organization and Visuals

Pitch is organized with a clear
Pitch is organized,
introduction, body, and conclusion,
but needs more Pitch lacks organization or
with appropriate visual aids. Visual
structure. Visual structure. Visual aids used
aid used is clear, lacks spelling
aids used could use were not of any use or
mistakes, looks professional, applies
some editing and relevance.
to product type, and addresses target
improvement.
market.
10 9 8 7 6 5 4 3 2 1

2. Understanding

Demonstrates a thorough
Product description Product description has
understanding of the product, and its
and benefits were insufficient information.
benefits. Product description is clear
covered but needed Product benefits were not
and concise. Product benefits
elaboration. covered.
summary is clearly presented.

10 9 8 7 6 5 4 3 2 1

3. Research and ability to identify target market

Target market properly described and Target market

Target market not
clearly identified with supporting described and
identified, or not properly
evidence (primary and secondary identified but
described and researched.
research). insufficiently.

10 9 8 7 6 5 4 3 2 1

4. Idea Generation
Idea Generation usage
(Schumpeter/Discontinuous One Idea
Idea Generation theories
Innovation, Brainstorm, Analogy, Generation theory
were not applied.
Gap Analysis – at least two should be was applied.
presented for minimum marks).
10 9 8 7 6 5 4 3 2 1

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BUS 2403 Innovation and Entrepreneurship Project 2

5. Marketing Mix
Student demonstrated that
they have conducted Student Identified two Did not mention marketing
marketing research and research techniques and its research or the 4Ps and its
showed the ability to tie results, then discussed how impact on the business
these results to the business the research was conducted decision-making.
opportunity and its and linked to the marketing Inappropriate or inadequate
competitive advantage mix (4Ps) - (i.e. primary / responses.
through the marketing mix secondary research methods).
(4P’s).
10 9 8 7 6 5 4 3 2 1

6. Competition and Positioning

Student is able to list
competitors/substitutes as
brand or generic Student is able to identify Did not mention
products/services and is competitors in general competitions or
able to explain how their substitution.
offering is differentiated.
10 9 8 7 6 5 4 3 2 1

7. Pricing Strategy
Did not mention pricing
Student explained pricing
Student explained pricing strategy or pricing
strategy and initial pricing
strategy but did not cover estimates. Student did not
estimates with justification.
pricing estimates. Student mention any pricing
Student based their in-depth
referred partially to the estimates based on the
explanation on the Financial
Financial Plan excel sheet Financial Plan excel sheet
Plan excel sheet exercise
exercise (part of OA project) exercise (part of OA
(part of OA project)
project)
10 9 8 7 6 5 4 3 2 1

8. Presentation Skills
Student is not reading, has Student made eye contact
Student was not prepared
clear eye contact, and is every now and then, but
and lacked self-confidence.
clearly prepared. needs more preparation.
10 9 8 7 6 5 4 3 2 1

9. Business Model
Student discusses how they
Student touches on some Business model and
will turn idea into business,
aspects of the business model profitability were not
how they will make money,
and isn’t realistic about the addressed at all. Student
when they will be
making money or did not mention any pricing
profitable. Student based
profitability of the business. estimates based on the
their in-depth explanation
Student referred partially to Financial Plan excel sheet
on the Financial Plan excel
the Financial Plan excel sheet exercise (part of OA
sheet exercise (part of OA
exercise (part of OA project) project)
project)
10 9 8 7 6 5 4 3 2 1

10. Pitch Duration

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 BUS 2403 Innovation and Entrepreneurship Project 2

More than 5 minutes – had Less than 5

4 to 5 minutes
to be stopped minutes – very short
10 9 8 7 6 5 4 3 2 1

Total Marks: _____/100

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