[ENTREPRENEURSHIP] Periodical Test

• Operations


  All the activities required to create and deliver an organization's goods or services to its customers or clients
• Operations Management


  Concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services (to improve operations)
• Process of Operations


  1. INPUT

  2. PROCESS

  3. OUTPUT

  4. CONSUMPTION
• Four Key Areas of Operations Management Function


  • Strategic Operations Management
  • Product Design
  • Supply Chain Management
  • Quality Management
• The 4 M's of Operations

  • MANPOWER
  • METHOD
  • MACHINES
  • MATERIALS
• Manpower


  The workforce involved in the manufacturing process of business
• Criteria to consider in dealing with Manpower

  • Educational qualifications and experience required for the job
  • Status of employment (permanent or contractual)
  • Number of employees/staffs needed in the job
  • Skills and expertise required
  • Availability of potential workers in the community
  • Salary requirements and other mandatory benefits
• Method


  The system and step by step process in the business, the process or technique of converting raw materials to finished products
• Factors dependent on Methods


  • Product to produce
  • Mode of production
  • Manufacturing equipment to use
  • Required skills to do the work
• Machines


  Manufacturing equipment used in the production of goods or delivery of services
• Factors to consider with Equipment


  • Cost of the equipment
  • Capacity of the equipment
  • Availability of spare parts in the local market
  • Efficiency and durability of the equipment
  • Skills required in operating the equipment
• Materials


  Raw materials needed in the production or manufacturing of a product
• Factors to consider with Materials


  • Cost
  • Quality
  • Availability
  • Credibility of suppliers
  • Waste that the raw materials may produce
• Any business no matter how advanced or automated still requires people
• Product/Service Development


  The process of developing, testing, and commercializing a product/service to solve the problem of the primary target market
• Product development


  1. Identifying market needs

  2. Conceptualizing and designing the product

  3. Building the product roadmap

  4. Developing a Minimum Viable Product

  5. Releasing the Minimum Viable Product

  6. Iterating based on user feedback
• Product Roadmap


  A high-level visual that maps out the vision, direction and evolution of your product over time
• Product/Service Description


  Describes how a product/service works and how it benefits the customers
• Three Considerations in developing a product/Service Description

  • TARGET AUDIENCE - A good product/service description starts with a solid buyer persona
  • PRODUCT BENEFITS - Potential customers want to know how they benefit from your product/service
  • Use of Power Words - There are certain words and phrases that naturally elicit an emotional response in humans
• Prototype


  A preliminary model or sample of a new product or service that is created to test a product concept or service process
• What exactly does a prototype look like?

  • Depends on the idea
  • Depends on your goals
  • Depends on your budget
• Advantages of Creating a Product/Service Prototype


  • Enables trial-and-error, room for improvements, refines the functionality of product
  • Test the performance and specifications of materials and service processes
  • Helps the entrepreneur effectively describe the product or service to the product team
  • Elicits respect from key stakeholders and customers. It gives credibility to the entrepreneur
• Four Steps in Creating Product/Service Prototype

  1. CONCEPT SKETCH

  2. VIRTUAL PROTOTYPE - Create a digital sketch of your idea

  3. PHYSICAL PROTOTYPE - Build a physical prototype. Once your first prototype is built, you may find flaws that need to correct before you seek a patent

  4. LOCATE A MANUFACTURER - Locate a manufacturer that can produce your product at a profitable price
• Testing the Product Prototype


  A vital process before an actual product or service is launched to the market. It will uncover the final loopholes that need to be fixed before commercialization. It gives the entrepreneur a leeway to examine and scrutinize the prototype and provide feedback as to what can be improved before the launch
• Methods applied in Testing the Product Prototype

  • Focus Group Discussion - The participants will provide relevant insights about the new product or service
  • Legality and ethical test - Ensure that the product or service complies with all relevant laws and regulations
  • Safety Test - Ensure that the product is safe to use, safe to be consumed, and safe to be applied
  • Product costing test - The entrepreneur must examine every stage of the manufacturing process or every process of the service blueprint to evaluate and finalize the cost involved
  • Component test - Each component of the product or service must be tested independently to identify component failures
  • Competitors' product/service test - Test a similar line of products or the competitors' product or service itself to compare
• Validation of Market Acceptability


  The process of finding out if the intended primary target will be buying the product or availing the service
• Ways to Validate your Product Acceptability


  • Sales
  • Research
  • Demand and Supply
  • Campaign
  • Feedback
• Supplier Selection


  Choosing the right supplier scanning a series of price lists, value for money, quality, reliability and service
• Value Chain


  The whole series of activities that create and build value at every step. A process in which a company adds value to its raw materials to produce products eventually sold to consumers
• Five steps in the value chain process

  • Inbound Logistics
  • Operations
  • Outbound Logistics
  • Marketing and Sales
  • Service
• Recruitment


  Your success in the business will depend on your ability to put together a team of highly qualified people who are committed to the goals and objectives of your firm
• Business Model


  A description of how your business makes money, an explanation of how you deliver value to your customers at an appropriate cost
• "A business model is supposed to answer: who your customer is, what value you can create/add for the customer and how you can do that at reasonable costs"
• Peter Drucker


  Father of Management Thinking
• Components of a business model


  • Everything it takes to make something (design, raw materials, manufacturing, labor, etc.)
  • Everything it takes to sell that thing (marketing, distribution, delivering a service, and processing the sale)
  • How and what the customer pays (marketing, distribution, delivering a service, and processing the sale)
• Different kinds of business models

  • Advertising
  • Affiliate
  • Brokerage
  • Customization
  • Crowdsourcing
  • Franchise
  • Leasing
  • Marketplace
  • Subscription
  • Pay-As-You-Go
• Advertising business model


  • A business model where a company generates revenue by selling advertising space on their platform, you have to satisfy your two customer groups: your readers or viewers and your advertisers
• Affiliate business model


  • A business model that uses links embedded in content instead of visual advertisements that are easily identifiable
• Brokerage business model


  • A business model that connects buyers and sellers and helps facilitate a transaction (Transactions include but not limited to real estate, stock shares, bonds, options, and financial instruments)
• Customization business model


  • A business model that takes existing products/services and add a custom element to the transaction that makes every sale unique for the given customer, also known as "concierge"