In our survey of case studies in the course we encountered several types of entrepreneurial approaches that range from Living PlanIT’s system-level IT solution and Masdar’s top-down support of cutting edge technology to Sarvajal’s business model innovation for clean water delivery to individual rural Indians. These and other examples demonstrate approaches that vary across many dimensions, two of which, I would like to argue, are most important: the degree of technology innovation and the scope of the solution (i.e. room, apartment, building, neighborhood, city; not scope as in size of addressable market). [Maybe “ambition” or “scale” would work on this axis too? – John M]
There are numerous reasons for why these dimensions are particularly important. The degree of technology innovation has vast implications on upfront R&D expenditures, time-to-market, level of customer education and required guarantees on one end and competitive barriers-to-entry, asset intensity and costs of operation on the other. The scope of the solution influences scalability, level of coordination and concentration/fragmentation of the customer base, among other things. Overall, these are chief in determining the go-to-market strategy, profit formula, availability of funding and other elements of the opportunity that impact the probability of success for a new venture.
With this in mind, I believe that the middle-ground of these two dimensions are the “sweet spot” for entrepreneurship in the fields we have been discussing, especially for applications in existing cities. The following diagram illustrates my rough evaluation of some of the examples we discussed in class and others :