CHAPTER 1 -THE PRACTICE OF ENTREPRENEURHSIP THE TRUTHS ABOUT ENTREPRENEURSHIP

1. It is Not Solely for Startups

THE START OF ENTREPRENEURSHIP IN THE PHILIPPINES - A business does not remain to be a startup, because
 Entrepreneurship has become the solution to poverty it can always develop and progress into something
through job formation, wealth creation and social bigger.
empowerment. 2. Entrepreneurs Do Not Have Exceptional Personality
 For now, the Philippine government sees Qualities
entrepreneurship as the sole means to address the - Although without scientific proof, traditionally there are
poverty problem. four recognized qualities: achiever, influencer, risk-
taker, and open-minded.
THE SKILLS IMPORTANT IN ENTREPRENEURSHIP 3. It can be Taught Yet Entails Practice
1. The Skill of Play - Entrepreneurship requires a person to possess a set
 Allows imagination to explore, expose the mind to a of skills that should be improved continuously through
treasure of opportunities and potentials and is very practice that can be used for entrepreneurial action.
innovative. 4. Entrepreneurs are Not So Much Risk-Takers
2. The Skill of Experimentation - They normally would make calculations first prior to
 Calls to act so as to learn, meaning attempting to do taking the next step and usually measure every lose.
something, learning from such attempts and structuring 5. Entrepreneurs Work in Partnership More than They
said learning when the next thing similar happens. Compete
3. The Skill of Empathy - Partnership usually brings about more efficiency,
 Being sympathetic with the feeling, situation, purposes, additional fresh ideas and produces ingenuity and
opinions, and wants of other people. It is putting one’s innovation.
shoes in the shoes of others. 6. Entrepreneurs are More on Doing than Planning
4. The Skill of Creativity - Investors are more fascinated with the ability of an
 Being open-minded and letting loose one's ability to
entrepreneur to deal with a series of difficult
create, discover opportunities and resolve problems. situations, able to solve problems and take positive
5. The Skill of Reflection feedback as he is mentioned.
 Organizes all the four skills. The discomfort handled, the 7. It is Truly a Life Skill
feelings felt, and the knowledge possessed gives new - Can offer the methodological way of thinking,
perspectives and allow for more assessment of the
opportunity identification, specific way of problem-
results and forming of conclusion.
solving, adapting to new situations and governing
ones’ goals and ambitions.
 7-11, Ace Hardware, Pizza Hut, Jollibee, McDonalds
- Life skills: and a lot more.
1. Resilience 4. Buying a Small Business
2. Agility - The entrepreneur buys out the existing owner and takes
3. Negotiating the management and operations of the small business.
4. Problem solving - The new owner may be able to acquire valuable patents
5. Relationship building or copyrights, or have the opportunity to drive an
6. Mindfulness unprotective business in an exciting direction with his
expertise.
TYPES OF ENTREPRENEURSHIP 5. Social Entrepreneurship
1. Intrapreneurship - Pursuing innovative applications that have the likelihood
- Refers to encouraging people to discover high-risk, of solving community-based problems.
high-reward concepts with the support of a big Bayani Brew products are ice tea using indigenous
corporate organization ingredients such as lemongrass, pandan and sweet
The search function of Gmail was the first of its kind potato tops. The local and indigenous ingredients are
among Email service providers. The template has supplied by subsistence farmers to help them in their
also improved storage capacity. These days Gmail is livelihood.
the most popular used platforms on the Internet. 6. Family Business
2. Entrepreneurs Inside - Owned and managed by members of the family that is
- Similar with intrapreneurship, but the only difference usually handed down from generation to generation.
between them is that entrepreneurs function inside any ShoeMart, Metrobank, the Aboitiz Group, D.M.
type of organizations such as government agencies, non- Consunji, Inc. (DMCI) are among the many owned
profit organizations, religious entities, self-employed and and managed brands by some of the most influential
even cooperatives, whether they are big or small. families in the Philippines.
Puregold is a popular trader of consumer products 7. Serial Entrepreneurs
such as canned goods, housewares, toiletries, dry - Constantly crops up with fresh ideas and starts new
goods, food products, among others on a wholesale businesses. A habitual one who takes the challenges of
and retail basis. repeatedly initiating on putting up a business.
3. Buying a Franchise Oprah Winfrey started her career as a local TV
- It is a type of license bought by an entrepreneur as the anchor. In 1986, she created the Harpo Productions,
franchise from an existing branded business (franchisor) Inc. This production company owned rights to the
so that they may do business under the name of said “The Oprah Winfrey Show” from 1988 onwards.
brand.
 - Bad surprises and unexpected turns are not always
negative, entrepreneurs see them as new opportunities.
Dr. Cecilio Pedro was the owner of Aluminum
Containers, Inc., the main supplier of aluminum
ENTREPRENEURSHIP AS A METHOD collapsible toothpaste tubes to Colgate-Palmolive Co.
1. Bird in Hand and the Philippine Refining Company (PRC) now
- Creating solutions using the resources available at the Unilever Group. However, in 1985 these companies
disposal of entrepreneurs instead of having goals in started to use plastic laminated tubes in replacement
mind. of aluminum collapsible tubes. Mr. Pedro was left a
Socorro C. Ramos started the National Bookstore stockpile of aluminum tubes with no use for them.
in 1942 with only Php211 as starting capital. It just However, he was hesitant to just threw of the factory’s
rented a small-corner space of a Haberdashery equipment. Dr. Pedro decides to revive his factory.
located at the foot of Escolta Bridge in Santa Cruz, That time as Lamoiyan Corporation, the first Filipino
Manila. company to enter the toothpaste industry.
2. Affordable Loss 5. Pilot in the Plane
- Investing much that an entrepreneur is willing and can - Future is really something that needs to be controlled and
afford to lose. If it is an affordable loss and the possible not try to predict. Hence, the focus should be on those
gains are big, then the decision can be implemented. entrepreneurial activities that are within the bounds of
Mariano Que, owner of Mercury Drug first worked one’s control.
in a drugstore before the war. When he was given Corazon D. Ong, the founder of CDO foods, used
an opportunity, he invested his Php100 in the her profession as a dietician who understood the
sulfathiazole tablets. His experience, his Php 100 fondness of Filipinos in processed foods. She
and a pushcart were the resources which Mr. Que entered into the food process business.
was then willing and can afford to lose that time.
3. Crazy Quilt COMPONENTS OF THE ENTREPRENEURSHIP MODEL
- Entering into new partnerships that can bring in new 1. Identify Desired Impact
opportunities and reduces uncertainty. - An entrepreneur must combine his curiosity, drive,
Jollibee Foods Corporation (JFC), the largest fast- and motivation to achieve something beyond the
food chain in the Philippines, partnered with Globe bounds of himself.
Business, the enterprise and information and - Profit motive is not sustainable because
communications technology (ICT) arm of Globe entrepreneurship calls for hard work and the
Telecom, to centralize its express delivery service satisfaction and desire come from deep inside.
to one convenient number: #8-7000.
4. Lemonade
2. Begins with Means at Hand the entrepreneur’s resources, expand the possibilities
- Current resources at hand are important component available as well as confirm his idea.
that need to be ready for use to accomplish 8. Build and Learn from What Has Been Learned
immediate action. - Evaluating performance is improving one’s idea.
- “who am I” , “what do I know”, and “whom do I know” - At this step, nothing is right/wrong, just making things
3. Describe the Idea Today better.
- Desired impact and means at hand should be - It’s always best to celebrate when success comes.
combined to fully describe the idea. However, when failures happen, embrace them
- Only then the entrepreneur could start action today because of the learnings that come from them.
with the resources he has today. 9. Managerial and Entrepreneurial Thinking
4. Estimate Affordable Loss - Managerial thinking is usually best to apply during
- Risk is difficult to calculate and be used as an times of certainty. It uses information and data as
effective criterion for decision-making. basis for decision-making.
- Instead of estimating risk, entrepreneurs think about - Entrepreneurial thinking refers to the ability to identify
the things they are willing to lose. opportunities in the marketplace and discover the
5. Reflect and Be Honest most fitting ways and time to take advantage of them.
- Once an entrepreneur no longer has the desired 9. Managerial and Entrepreneurial Thinking
impact or has exceeded his affordable loss, that he MT ET
may quit. Manage and mitigate Evaluate and embrace
- Otherwise, he must think of the next step to do to risk risk
Safeguard inventions Exchange ideas and
sustain his venture.
and insights share learnings
6. Take Small Action
Avoid failing Fail fast and try again
- First action is just a small step to get going.
Work within the Think in terms of
- Each step must not be extreme but still these can be confines of the current possibilities
done. environment
- Once every step is properly calculated and the Increase the bottom Create value and make
affordable loss is estimated, the entrepreneur can line a difference
control his risk.
7. Network and Enjoin Others in Journey ENTREPRENEURSHIP REQUIRES DELIBERATE PRACTICE
- Practice of entrepreneurship is about collaboration • Entrepreneurship method is both a mindset and a
and co-creation. practice.
- Sharing one’s ideas and joining others to be part of • There is a certain type of practice that makes a novice
the entrepreneurship bandwagon shall also increase entrepreneur, be an expert serial entrepreneur.
• Having a milestone today should not keep anyone from
becoming comfortable. WHAT ARE THE CHARACTERISTICS OF AN
ENTREPRENEURIAL MINDSET?

CHAPTER 2-
ENTREPRENEURIAL MINDSET AND OPPORTUNITY CHARACTERISTICS OF AN ENTREPRENEURIAL MINDSET
RECOGNITION 1. Curiosity
- Leads to questions, and questions lead to answers.
MINDSET AND ITS CHARACTERISTICS AND - Strengthens the ability to understand things with a
ESSENTIALS new standpoint.
− Mindset is a belief that qualities like intelligence and 2. Commitment
talent are fixed or changeable traits. - Continuing to keep going and persist amidst
− A mindset of abundance will consider that there is problems.
plenty of resources for everyone and that resources will - Rejection and disappointments are essential elements
not run out because they are replaceable. However, a of an entrepreneur’s life which needs to be endured.
mindset of scarcity shall think that there is inadequate - The focus should be on achievements.
amount of things around, so some people can either 3. Optimism
benefit or lose them. - Tough attitude towards challenges makes up
− People with a fixed mindset perceive that their talents successful entrepreneurs.
and abilities are set. - Entrepreneur should be hopeful in exploring its many
− People with a growth mindset trusts that traits can be learning opportunities.
changed, developed, and strengthened by working on - For a successful entrepreneur, there is always a
them. solution to every problem.
4. Flexibility
- Helps to be supple to deal with a series of difficult
situations, solve problems easily and make progress
from obstacles.
- Make a journal and timeline to overcome difficulties.
5. Ownership
- Success comes from their own ability.
- The attitude to be responsible for the things you do.
- Be confident that you can always fulfill your dreams.
6. Leadership • The power to choose their responses to any
- Guides, motivates, and empowers the team. circumstance because they have this 100%
- Through convincing communication and involving his Accountable mindset.
team, an effective entrepreneur is able to attain his • They need to build a new start and form a different
visions. conclusion.
- Able to create visions by constantly being the model 4. We are connected
of the team. • Entrepreneurs believe they can achieve their dreams
not by being alone though they love to be
7. Connection independent.
- Entrepreneurs must choose those people that would • They take honor in competition because they
form his collective links so that he could breed his believe that working with, for, and through others
idea. pushes their potentials.
- There should be both emotional and financial bonds. 5. Live life to give
8. Self-respect • As people in business profit more, they tend to give
- It’s vital to take care both of the body, mind, and spirit. more, or what is known as corporate social
responsibility
- Taking care of oneself daily through rest, exercise,
• They believe that life is a cycle, hence those people
and diet is essential.
with so much need to give to people with less.
6. Attitude of gratefulness
ESSENTIALS OF THE ENTREPRENEURIAL MINDSET
• Seldom do people give their attention to their
1. Passion first
accomplishments and their present experiences
• The best ways to be involved and continue doing
except for entrepreneurs.
business during difficult times is to have a sense of
• Even during problematic situations which
meaning and purpose.
entrepreneurs recognized as opportunities to
• This is the intention for starting businesses according to
learn and grow, they are still grateful about these
the entrepreneur’s passion.
situations.
2. Everything is possible
7. The time is now
• Believing that entrepreneurs are capable of
• Recognizing that all their powers exist in the
accomplishing unexpected results.
moment.
• They trust that an idea could be possible to turn into
• They believe that they cannot change history and the
reality.
future is uncertain.
• They examine first their goals and set things bigger.
• It is best to take action than simply waiting on a
3. 100% accountable
perfect plan which does not exist.
 WHAT IS A HABIT? 2. CREATIVITY HABIT
ENTREPRENEURSHIP AS A HABIT • Creativity is the capacity of turning fresh
• Habit is an unconscious behavior done often and ideas, insights, inventions, products or artistic
regularly. objects that are considered to be unique,
• Good habits can be acquired using “habit loop”, a useful, and of value to others into reality.
process wherein the brain makes decision whether to • Creative people are open to experiments and do
store or repeat such behavior. not fear to commit mistakes.
• Rewarded behavior is most likely repeated. • Example: The Aristocrat, the famous restaurant
THREE HABITS THAT REQUIRED MOST TO BE NURTURED for its world-renowned Chicken BBQ & Java Rice
AND BE PRACTICED FOR ENTREPRENEURIAL MINDSET combination.
1. Self-Leadership Habit 3. IMPROVISATION HABIT
• Practice of purposely influencing and controlling • Improvisation is the unstructured way of
one’s behavior, actions, thinking, and feeling. creating something in the absence of planning.
• Related to optimism, happiness, consciousness, and • Entrepreneurs though start with good ideas
emotional intelligence among others. oftentimes possess limited resources, unpredicted
ENTREPRENEURSHIP AS A HABIT market situations or conflicts inside the company
Three important strategies: that hinder them to realize their initial plans.
1. BEHAVIOR-FOCUSED
a) Concerns enhancing self-awareness to manage OPPORTUNITY RECOGNITION USING MINDSET
behaviors especially when dealing with essential but • Opportunity is a means to generate profits by creating
not-so-good tasks. unique, innovative, and desirable products or services
b) Ways to accomplish this include: Self-observation, which are not being found in the market yet.
Self-goal setting, Self -reward, Self-punishment. • Opportunity recognition is a process by which individuals
2. Natural Reward and businesses make use their entrepreneurial mindset
a) About making every task enjoyable by emphasizing to establish new businesses or ideas.
the positive aspects of each task and its importance. • Entrepreneurs are able to see problems as opportunities.
3. Constructive Thought They consider each problem, frustration , or unmet
a) Creating positive and productive means of need they face as a possible opportunity.
thinking that are advantageous to the performance of • However, if the right mindset is not utilized, then a
entrepreneurs. missed opportunity is expected.
HOW TO START WITH IDEAS
THREE HABITS THAT REQUIRED MOST TO BE 1. Analytical
NURTURED AND BE PRACTICED FOR ENTREPRENEURIAL
MINDSET
 • Breaking a problem into details or looking at a • Brainstorming is also commonly used to highlight
problem in a common way to produce ideas on creativity towards new opportunities.
improving or innovating products or services.
2. Search FOUR PATHWAYS TO OPPORTUNITY IDENTIFICATION
• Linking personal experiences that are significant to - An opportunity could be in the form of a new product
the existing problem. and/or service, new found markets, newly opened
• Illustrates the ability to be resourceful in looking for distribution channels, new ways of production or supply
connections between objects that appears to have or new methods of organizing.
no obvious relationship at first.
3. Imagination-Based
• Interrupting doubts and dropping restrictions to 1. Find Pathway
produce fantasies or make believe situations. • Assumes that opportunities exist independent of
• Sometimes, entrepreneurs need to be playful in entrepreneurs and are waiting to be found.
their minds so they can think of ways that are • Generally, an opportunity is found when the
impossible. entrepreneur sees a clear problem and develops a
4. Habit-Breaking solution.
• To explore a new perspective, entrepreneurs • The problem is known to most, but the entrepreneur is
should think of the opposite of something. “the one who acts on the potential solution”.
• The ideas of a person not part of a situation could  This is the experience of Socorro Ramos, the owner of
also be taken particularly those admirable National Bookstore. She opened National Bookstore in
personalities. Escolta with her husband with a capital of P200, selling
5. Relationship-seeking books and school supplies to students. At that time, Manila
• Establishing a link between concepts that are was under the control of the Japanese, who imposed
not usually connected. censorship on books and periodicals. To augment their
• Intention is to fuel the mind into making earning, she and her husband resorted to selling other items
connectivity that seems to be unnoticed. like candles and soaps.
6. Development
• Employs the modification of existing concepts
to make improved choices and new potentials.
• One way to do this is to brainstorm.
7. Interpersonal
• Needs interaction with a group to generate
ideas.
 pursue their passion into business. With the help of
their sister-in-law Doris, the Leelin’s opened their first
branch.
In 1991, Goldilocks launched its franchising
program. As of 2015, the bakeshop chain had
2. Search Pathway almost 400 stores across the country, with
• Used when entrepreneurs are not quite definite what other branches in the USA, Canada, and
type of business they want to jump in. Hence, they Southeast Asia. From the modest capital of
engage in an active search to discover new P66,000, Goldilocks is now a multi-million
opportunities. food enterprise with more than 4,000 employees.
The story of Ragnarok by the company LevelUp! is a 4. Design Pathway
good example. During a business trip in Korea,  Most difficult yet the most-value creating pathway.
Nonoy Colayco smelled the opportunity of online  By focusing on the unsatisfied need of the market
gaming in the Philippines. He knew very well that particularly the latent ones, the entrepreneur is able to
Filipinos are fond of gaming. Through the help of his discover valuable opportunities
son Ben Colayco, a person passionate with games,  Here the entrepreneur is really creating a new
the father and son team brought gaming to a whole market
new level called Massively Multiplier On-line Games Latent needs- needs that customers do have but do not know
(MMOG). The Internet and gaming was really they have
progressing that time with Counterstrike as the The craze for potato fries is everywhere now. Perhaps,
popular online game. They got the publishing rights this craze evolved from the Westernization of the
with Oz World and 3D Chat, but it was with Philippines through the entry of foreign companies in the
Ragnarok from Korea that served as the country introducing American-style meals such as
accomplishment of LevelUp! burgers and fries. Seeing an opportunity for success, a
3. Effectuate Pathway local entrepreneur developed an idea instead of
 Uses the entrepreneur’s skills, knowledge, and abilities to competing against these much larger companies with the
unearth an opportunity that suits him. same product.
 Such opportunity comes from the experiences, abilities, An entrepreneur of humble beginnings, Jose Magsaysay
networks, and entrepreneur’s confidence to make action Jr., is the current president of Potato Corner. He worked
especially during times of uncertainty. at Wendy's as a dishwasher, eventually climbing his way
With only 2 cake displays and 10 employees, up to become a district manager of Wendy's before
Milagros, Clarita, and Doris Leelin started Goldilocks opening his first Potato Corner stall in 1992.
at a 70-sq-m building space in Makati. Sisters A unique selling proposition is what makes a given
Milagros and Clarita loved baking and decided to product one of a kind like Potato Corners. The factors
 inherent in Potato Corner's USP are low costs and high highlighted his jump-off concept and his dynamic
efficiency. personality, hence Island Souvenirs was born.
What Potato Corner did in order to increase sales Today he has more than 110 branches in the
and further expand the company was by introducing country.
franchising to the company. By means of franchising, 2. Prior Knowledge
interested partners could help expand the business by • Information gathered from the combined life and
paying royalties, and this in turn made Potato Corner an work experiences.
even more publicly-recognized company. As a result, • Studies show that entrepreneurs that have knowledge
Potato Corner became a 75% publicly-owned company about the industry and market in combination with
with franchisees from all over the globe. broad network are able to recognize better the
opportunities around them.
Victoria Belo, more commonly known in the Philippines as
ALERTNESS, PRIOR KNOWLEDGE AND PATTERN Dra. Vicki Belo, was a victim of bullying in her childhood
RECOGNITION years. She was usually pestered for being ugly and fat.
1. Alertness This experience made her all the more fascinated in the
field of beauty. She imagined herself of becoming
• Ability to easily pinpoint opportunities in the
somebody who could make people feel gorgeous and
environment.
adored.
• Information is everywhere and are just waiting to be This led her to be in the medical profession, particularly in
discovered. However, only entrepreneurs that the field of dermatology. Hence, she obtained a Diploma in
possess alertness could possibly do this thing. Dermatology in Bangkok, Thailand in 1990. It was in 1990-
• With their usual activities everyday, entrepreneurs when Dra. Belo established her first clinic at the Medical
turn to be alert to existing opportunities. Towers in Makati. The clinic was the first to make known
Like many travelers Mr. Jonathan Jay Aldeguer liposuction and lasers in the Philippines.
has a natural impulse to purchase souvenirs. With The Dra. Belo's Belo Medical Group was also the first
his entrepreneurial eye, he spotted the universality recognized "ambulatory cosmetic surgi-center in the
and huge potential for a new business with Philippines" and certified by the Department of Health
(DOH). She is now the noted dermatologist and "Doctor to
souvenirs. The souvenir industry from his
the Stars". In addition, Dr. Belo was hailed "Ambassadress
entrepreneurial lenses could become a multi-
of Beauty" for the Philippines and tasked to endorse the
billion-dollar industry given the twist.
country as a world-class cosmetic surgery destination.
In the Philippines, the industry lacked creativity in
3. Pattern Recognition
design, visual merchandising, quality and
• Happens when people make connections of dots to
branding. Filipinos are used to the ethnic-looking
pinpoint and create opportunities.
designs which were the norm. He showcased his
products as a unique experience of a locality that
• Often, when “connecting dots” there are constraints that • The concept should be something of value to
block the way. Real entrepreneurs ignore these things consumers, because it is a need, a desire, useful and
and try to find ways to look beyond constraints. has the capacity to earn profit. Not all idea could be an
Filipina scientist Aisa Mijeno is an example of an opportunity.
entrepreneur that knows pattern recognition. After • The best ideas are those that could be transform into
resigning from her job in the IT industry and doable opportunity.
volunteering with Greenpeace, Mijeno was exposed • The IDEATE Method is an ideation process empirically
to "off-grid" living conditions. Once she had seen the proven to help budding entrepreneurs recognize
restrictions no electricity had on day-to-day living. problems, cultivate innovative solutions, and choose the
Hence, she decided to find a way to figure out how to best creative entrepreneurial idea.
produce a light source that did not depend on • This model follows the process of Identify, Discover,
electricity, batteries or fuel to work. Enhance, Anticipate, Target, and Evaluate.
In partnership with Philippine incubator, Ideaspace
Foundation, Mijeno was able to design and create 1. Identify
Sustainable Alternative Lighting or simply SALt. The - Identifying problems that customers are trying to solve,
SALt Lamp is an environment-friendly and viable are spending money to solve, but still unsolved to the
alternative light source that makes use of saltwater, satisfaction of customers.. This is also about identifying
making it appropriate to those residing in coastline solutions to this problem.
areas. It can also function well in far-flung barrios. After quitting his job, Brian Chesky drove to San
Using only two table spoons of salt and one glass of Francisco to crash with a college friend, Joe Gebbia,
tap water, this ecologically designed lamp lights for who also recently quit his job. They were both having
eight hours. trouble making the upcoming rent payment. Then
The concept of the SALt lamp is the chemical they realized that the 2007 Industrial Design Society
conversion of energy. It uses the scientific process of America conference was coming up and that hotel
behind the Galvanic cell. However, in place of rooms would be hard to get.
electrolytes, the SALt lamp utilizes saline solution, 2. Discover
thus it is harmless and non-toxic. - Actively searching for ideas in problem-rich environment
where there is social and demographics change,
FROM IDEA GENERATION TO OPPORTUNITY technological change, political and regulatory change
RECOGNITION and/ or change in the industry structure.
• In order for an idea to be feasible, it must be fresh or Gebbia, who had three air mattresses suggested they
inimitable or at least a twist from an existing concept turn their apartment into an "air bed and breakfast."
that will be acceptable and adoptable in the market. 3. Enhance
 - Taking the ideas and expanding to new applications or
adding innovative twists. Or simply enhancing existing
ideas. - The main tenet of design thinking is empathy for the people
After setting up a simple website you're trying to design for. Leadership is exactly the same
(airbedandbreakfast.com), they managed to book out thing - building empathy for the people that you're entrusted
their whole apartment in three days, solving their rent to help. (David Kelley, Founder of IDEO)
problem. - Design thinking is also known also as "outside the box
4. Anticipate thinking”.
- Studying change and analyzing future scenarios as they - The said process is not just merely a process, but
relate to social, technological, and other global changes completely opens a new way of thinking.
and trends. - For the Chief Executive Officer, Tim Brown of IDEO, design
The duo, who had met at college at the Rhode Island thinking is "a discipline that uses the designer's
School of Design, thought acting as tour guides to sensibility and methods to match people's needs with
designers would be a fun way to make money. what is technologically feasible and what a viable
5. Target business strategy can convert into customer value and
- Defining and understanding a particular target market, market opportunity".
validating new ideas with early adopters. - IDEO is a consulting company founded in California in
A customer for Airbnb is the one who adds up to the 1991 that uses the design thinking approach to design
company's revenue. He can be a host who offers his products, services, environments, and digital experiences.
space for rent and lists it on the platform or he can be - Therefore, design thinking is a combination of desirability,
a traveler who books a space. feasibility and viability based from the definition of Brown.

Airbnb – Stay in a home away from home wherever you

travel

CHAPTER 3- DESIGN THINKING

a) Desirability refers to how much people want the

product and whether it meets their needs and desires.
b) Feasibility refers to whether it is technically possible to "The Sciences of the Artificial", Herbert A. Simon first
create the product. mentioned about design thinking as a way of thinking.
c) Viability refers to whether the product is financially • The design thinking process has become popular
sustainable. because it was strategic to the success of many
prominent, international companies such as Google,
• This thinking also involves experimentation and trying out Apple and Airbnb.
concepts and ideas. • This "outside the box thinking" is now taught at
• Airbnb made use of design thinking from the human insights distinguished universities worldwide and is promoted
that people wanted to share and leverage their assets, not only in business but to all types of organizations.
hence the birth of "shared economy”
• Apple did design thinking and made the phone a remote THE DESIGN THINKING PROCESS
control of everyone's lives. • The Hasso Platter Institute of Design at Stanford
provides a five-step process in design thinking.
PRINCIPLES ABOUT DESIGN THINKING
1) Human-centricity and Empathy - This is about providing 1. Empathize: Research About Users' Needs
solutions to problems that focuses on human needs and - Research allows to obtain understanding of the
user response. people who experience a problem before
2) Collaboration - Design thinking works well with diverse designing a solution to serve them.
composition of teams who would cooperate with each - Empathy describes the ability to put oneself in
other. another person's shoes to really see the world
3) Ideation - The focus of design thinking is to come up with through people's in a given context or situation.
as many ideas and potential solutions as possible.
4) Experimentation and Iteration - Ideas are turned into • Here are some key empathy-building methods to gain a
prototypes. Said prototypes are tested and feedback from deeper understanding of the users' pulse:
users are taken.
5) A bias towards Action - Design thinking is an applied and 1) Empathy interviews - to find out as much insight as
practical solution-based method that is more focus on possible using an open conversation.
action rather than on discussion. 2) Immersion and Observation - users should be observed in
their natural environment or immersed in a certain situation
THE ORIGINS OF DESIGN THINKING while they are in action.
• In the 50s and 60s onwards, design-thinking emerged 3) Extreme Users - the needs of extreme users are usually
because of the issues of collective problem solving of intensified that could help solve the problem.
significant societal changes by engineers, architects and 4) Ask what, how, and why in curiosity – The what, how, and
industrial designers at that time. In his 1969 book entitled why of users’ behaviour must always be considered.
 2. Define: State Users' Needs and Problems
• One method that can be used to record efficiently the The first step towards defining a problem is to find who the user
information from the interview is the empathy map. is, what is his needs and then develop insights from the answers.
• The empathy map helps gather and organize the data
from the interview that could lead to surprising insights. The purpose of this problem statement is to establish the core
problems and generate tangible and actionable ideas to solve the
FOUR MAIN COMPONENTS OF THE EMPATHY MAP problems.
1. Say - This quadrant covers what the user says loudly in an
interview or some other usability study. 3. Ideate: Challenge Assumptions and Construct Ideas
e.g. "I am loyal to Jollibee because I never have a bad • Here entrepreneurs may now look for alternate ways to
experience.“ view the problem and pinpoint innovative solutions
to the problem statement created.
2. Think - This quadrant captures what the user is thinking
throughout the experience. IDEATION TECHNIQUES
e.g. A user's thought could be expressed as "This is 1. Brainstorm - This is a more relaxed and informal way of
really frustrating." solving a problem using imaginative thinking.
2. Brainwrite - This is a serial process of asking participants to
3. Do - This quadrant encompasses the actions the user write down their ideas about a specific question or problem
undergoes. on sheets of paper. Each participant passes his ideas on to
e.g. Possibly the user "Shops around to compare prices“ someone else, who reads the ideas and adds new ideas.
• The process repeats that would last from 10 to 15
4. Feel - This quadrant contains user's emotional state such as minutes. Once the sheets are collected, they are posted
his worries, excitement about a certain experience. This is often for discussion.
represented by an adjective such as "confused of too many 3. Worst Possible Idea - This is a technique where members
contradictory prices" of the team look for the worst solutions in ideation periods.
4. SCAMPER- The SCAMPER method is a concept that aims
to look for solutions to problems.
The SCAMPER technique is more engrossed on the process
of discovering unfamiliar and innovative solutions to
problems. The goal of also a improving a product or service:
a) Substitute - A designer may look for something to replace
that will result in improvements of concept, product,
service or process.
Product: A traditional light bulb
 Substitute: A light bulb that uses LEDs instead of 1. Timely feedback
filament. 2. Prompt changes save time and cost
Benefit: LEDs are more energy-efficient and last 3. Validation prior to development
longer than filament bulbs. 4. User research and user testing- User testing shall reveal
b.) Combine- An idea might not work alone, but a how the product would become functional and valued by the
combination of some ideas, processes or products could final user.
work best. • Essentially, a prototype is the foundation for what will
Product: A toothbrush and toothpaste become the minimum viable product (MVP). An MVP is a
Combine: A toothbrush with built-in toothpaste minimum viable product that was born out of the lean
dispenser. mentality pioneered by Eric Ries from his book "The Lean
Benefit: This would be more convenient and portable. Startup".
c.) Adapt - Often, there is already the right solution to a 5. Test: Try Solutions Out
problem, but still unknown yet. Sometimes, an idea could solve • The complete product is tested in real life environment
one or more problems. using the best solutions in the previous step.
d.) Modify - At times, exaggerating a situation or problem
could offer a new insight or added value. THE POWER OF STORYTELLING
e.) Put to another use - This is making the idea or concept • Stories are about specific events of real people and their
works into a different use compared to what is originally respective lives that can inspire opportunities, ideas and
planned. solutions.
f.) Eliminate - In the same process like the Lean Six Sigma, • These stories offer actual details to be used in picturing
this concerns eliminating waste due to inefficient processes. solutions to certain problems.
Removing ineffective procedures could reform them. • Storytelling is the core of the structure and functions of
g.) Rearrange/Reverse -This is doing things that are every human being to connect events as a complete
completely against the original purpose in order to see experience through time.
something from a different angle.
Usually, every story has the following elements:
Clothing: Reverse the opening of a shirt, placing buttons on the 1. Domain/What
back. • This is the definition of the topic that is the concern of the
story.
4. Prototype: Start to Form Solutions • In the design process, it can be the problem of a
A prototype is a low-cost, scaled-down quick working sample of consumer that should be resolved.
entrepreneurial ideas for new products or particular features
found in these products. 2. Players/Who
Benefits about prototyping: • These are the people involved in a story.
 • In the design process, the main player is the persona
who represents the demographic information of the
consumer who faces the experiences.
There could be other players involve in the story such as
those who are part of the support groups or those employees
that directly communicate with the customers.

3. Story flow/How - There are three main chapters for each

story namely the beginning, middle, and end.
• In every story there is problem that could be part of
the middle stage which is the target in the design
process. 1. Understand -The first diamond helps people define what the
problem is and involves talking to and spending time with people
STORYTELLING IN THE DESIGN PROCESS who are part of the issues.
The Double Diamond 2. Define -The understanding from the discovery phase can help
• The Double Diamond- a process that use both the describe the challenge in a different manner.
divergent and convergent thinking. 3. Develop -The second diamond inspires people to offer multiple
• The two diamonds represent a process of exploring an answers to the well-defined problem, trying to find motivation from
issue more widely or deeply (divergent thinking) and then elsewhere and co-designing with a variety of diverse people.
taking focused action (convergent thinking). 4. Deliver - Delivery includes experimenting different solutions in a
• Divergent thinking- solves problem by proposing limited way, discarding those that are not feasible and refining the
multiple possible solutions to identify the one that is best. ones that will work.
• Convergent thinking- concentrates on finding the single
best solution to a problem. • Discover (divergent thinking) - Exploring the problem
• In the Double Diamond many ideas are generated, then space broadly and deeply.
refine and confine to the best idea. • Define (convergent thinking) - Refining the problem and
identifying the core challenge.
• Develop (divergent thinking) - Generating a wide range
of potential solutions.
• Deliver (convergent thinking) - Evaluating and refining
the solution to its final form.

STEPS IN STORY TELLING

1. Problem Framing
 • Deals with exploring the problem to know exactly the • Knowing what customers think or feel is the initial step
concern that needs a solution. Here storytelling is used to towards making innovative products and services that
identify the problem using qualitative data from the they want and need.
consumers.
2. Solution Framing Interview
• The designer needs to test and evaluate a number of • Interviewing is an important tool to identify and empathize
possible solutions to obtain the best solution based on with customers’ needs, form fresh ideas and find out new
the standpoint of the user. opportunities.
• Storytelling is used in this stage to confirm the efficiency • An expert interviewer should be open-minded, a skilled
of the solution by creating a two-way communication with listener, a keen observant, flexible and exhibits patience.
the consumer. Here the designer must know if the • Most business owners interview their customers right
solution really works best for the consumer. after purchase for feedback. However, entrepreneurs
3. Solution Implementation also interview people for ideas and insights in addition to
• The consumer feedback about the product or the service the identification of needs during the design thinking
can be collected as basis for improvement. process.
• Storytelling can be used as an instrument to discover Experiments
how the end product is used by consumers in their • Experiment is an approach of approving or disproving the
everyday lives. From the feedback sessions, the soundness of an idea or hypothesis.
information gathered could become useful in enhancing a • For majority of entrepreneurs, it is through
better version of the product in the future. experimentation that new innovations, initiatives, ideas
Example: A good example of the use of storytelling happened and opportunities are revealed.
with the Coca-Cola's Happiness Machine campaign. It featured a • Entrepreneurs in the food venture may experiment with
Coca-Cola vending machine converted to deliver astonishing recipes and flavors to come up with new menus.
"doses" of happiness to unsuspicious college students. The • Those in the fashion industry may possibly experiment
machine was placed in the center of the student cafeteria at the
with designs, fabrics and distributions to create a stylish
Queens, NY, campus of St. John's University. The apparently
brand.
typical Coke machine, something very familiar to most people was
in complete sight of five intentionally positioned unseen cameras. • A concept prototype may perhaps be a good experiment
The candid camera angles capture the joy and happiness of those for a technology company.
in the video. The video revealed unpretentious surprise and
delight on the students' faces when they interacted with the Coca- Art and Science Applied to Entrepreneurship
Cola 'Happiness Machine. • As an art, an entrepreneur must have a creative thinking
skill to make some ingenious ideas and make the
Observation and Insights entrepreneurial process a great success.
• Science, on the other hand, calls for combining new
information into prevailing models, or adding new
models to a superior body of knowledge.
• The scientific method was used by tech giants such as
Uber or Facebook.
• Facebook, for example, originally released their site only
with Harvard students. Later it was opened for students
from all universities. After two years, Facebook was
available to everyone else.
• Likewise, Uber did the same thing. The service was
tested initially with the founders' friends. After a few
months, the app was launched in San Francisco then
later to other large cities in the United States. After three
years, the startup raised enough money to grow globally.
Today it is present in more than 600 cities in 80
countries.