Study guide

Environmentally driven
innovation
MÖ023G & MX038G

15 credits

Department of Ecotechnology and Sustainable Building Engineering,

Mid Sweden University, Östersund

Autumn semester 2024

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 Welcome to the course
Environmentally driven Innovation!
This course offers knowledge and practice focused product- and business development of
Environmental Innovations.

The course is centred round a business project where you will practice the theory connected to
business development, the process of innovation, economics etc. Most of the course tasks will be
presented with your group and discussed in seminars, which implies that communicative
performance will play a central part in this course. This course may be used as a platform for
continued business development, for more studies and thesis work and as a way to widen general
knowledge within the field of environmental science and technology studies.

This course offers of a variety of ways to develop your knowledge: lectures, seminars, your
own work with an innovative environmental business development tasks, literature studies,
presentations and a web exam. You will work in groups with supervision. We would like you to
note that tasks are mandatory.

As a student of this course, you are supposed to follow the tempo suggested in the curriculum,
since the course is following a progressive path of development, where every new task will be
based on the previous. Students NOT FOLLOWING the tempo suggested, will not be offered
complementary occasions for mandatory seminars to present the tasks during this year's course.
Students not being able to attend mandatory seminars, are recommended to skip this year’s
course and instead follow it another year, when he or she are able to take part in the mandatory
seminars. Your work will be given feedback and supervision at seminars only.

This course is run both at campus and as web-based off-campus – please consult the schedule and
the information regarding the tasks below.

This course is (mainly) run in English. Individual consultation and team-tutoring is offered in
Swedish to sole Swedish speaking teams. In the web exam, answers can be in English and
Swedish. The questions will be written in English. Some optional lectures and seminars that are
conducted by other actors outside this course management, can also be in Swedish.

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Course information
Course information such as syllabus, grades criteria, literature etc. can be found at Moodle and
at www.miun.se/. Questions on registration are welcomed to the faculty administrator Britt
Edlund britt.edlund@miun.se

Questions about course structure and content are welcomed to the course co-ordinator, supervisor
and examinator Anna Longueville via Moodle (discussion forums), e-mail;
anna.longueville@miun.se, or even better in class.

Lecturer and supervisor:

Andreas Englund, IVL, via Moodle or e-mail: andreas.englund@miun.se

Aim, goals, and content

See the course syllabus (kursplan).

General information on content, exams and grading.

You will find tasks further on in this manual. The start-up workshop (task 2) and the final
workshop (in January), the tasks and the web examination are mandatory. It is not mandatory to
attend every seminar, but we strongly urge you to attend and it is part of your grades. Even other
activities, such as taking part in discussions and commenting on the work of other groups during
the seminars will affect your grade.

The course offers tutoring to support the students understanding of the tasks and the lectures. This
course includes an extensive product and business development work based on a number of tasks.
This work is to be carried out in teams. There are oral and written presentations included in the
course. The written work is asked for in the form of PMs, business plans, reports etc. In order for
us to be able to grade the content, the task will have to be completed, presented in an
understandable and suitable structure and with references correctly presented. Oral presentations
will be carried out as a part of seminars.

The theoretical, analysing and synthesising goals are examined by a web exam. Practical
application is examined by written reports on project tasks and on presenting seminars. These are
the grades: A, B, C, D, E, Fx and F. The written exam gives the student individual grading. The
team is graded as a whole, when it comes to the task-reports.

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Further information

The tasks are created to offer students a methodical way of working, while developing
environmental innovations. These tasks can also be useful when students want to develop other
innovations outside the scope of this specific course.

Communication via the study platform Moodle and Zoom

Course tasks are to be published in the discussion forum for study platform Moodle.

Written, non-urgent questions to your course co-ordinator and supervisors are preferably asked
via Moodle, to make it easier to forward general answers to the whole group of students.

Any one attending class via Zoom is supposed to make use of a sufficient web-connection, a web
camera and a microphone. Students without this required equipment/connection will be regarded
as not attending.

Surplus

There are many other contexts of Environmental Innovations than those offered to you within the
schedule of the course. Surplus information about seminars, websites etc. can and will be
published on Moodle. Students are invited to contribute with information.

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Specific information about project (task work)
The learning is based on the students’ practical and systematic work, applying the theoretical
parts of the course and making use of literature in the development of an environmental
motivated, innovative product. The mandatory tasks to be carried out are presented below.

Note#1: Please study all tasks before your start working with the first one. The tasks are built as a
system and make sure to make use of that to save time and be more efficient.
The tasks are to be presented in different ways, at different occasions – be sure to know what is
expected from you. Prepare yourself by using the information in this manual.

Note#2: In written and oral presentation, students are asked to act as innovative businessmen,
driven by an environmental urge – not as students.

For instance – note this difference:

Student: These are my answers on the questions in task 0 in the course...

The environmental innovator: “In my newly started work will developing environmental
innovations and make my business-ideas come true... I have made use of this systematic model X
supplied by the university and by this and that literature...

If you feel unsure if you are on the right track, do not worry! we will give you plenty of advice
and you are welcome do do as many mistakes as you possibly can (that is normally the best way
to learn!). Our advice is: DO! we promise to help you with your struggles and it will not at all
affect your grades if you make mistakes (on the contrary, brave students normally get better
grades). If you want an answer to why this is sometimes difficult: please watch this TED talk:
https://www.ted.com/talks/sir_ken_robinson_do_schools_kill_creativity
(You will most likely feel differently after this semester!)

Of course, you are welcome to contact us supervisors if you have problems or are stuck in your
work! (asking for help is also brave!) but our experience is that if you continue working and then
bring your questions to the seminars, you will find that many other had that exact question and
many more will be helped by your reasoning.

Tasks:

1: Introduction
2: Environmental innovation ideas
3: Product development
4: Assessment of environmental impact
5: Product development plan
6: Business idea
7: Business strategies – analysis
8: Business strategies – strategy and operative plan

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Task 1: Introduction
Exercise A:

Read Compendium part 1 (Andreas Englund), see Moodle (section Study guide, literature, lectures,
etc), and practice by pondering on the questions below.

Note! You do not need to answer the questions in writing. This task help you get started with the
course.

• We discuss the model of business strategy in figure 1.

• We discuss the different types of innovations that are presented under 1.3.1 and connect this
to the four areas of environmental innovation that is presented under 1.1.
• We discuss the four elements of innovation diffusion that is presented under 1.3.2 and
connect this to how knowledge of environmental issues is diffused.
• We discuss how to create creativity in the environmental area, based on 1.3.3.
• We discuss the connection between the function of the ecosystem, 1.4.1, the threats to the
ecosystems, 1.4.2, and the four system criteria for a sustainable society, 1.4.3 (p 13)
• We discuss how the environmental staircase (figure 5) can be used to identify environmental
markets.

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Exercise B:

This task will be carried out as a workshop at the first seminar.

As part of your work with innovations you should identify potential environmental markets, based
on the files Industrial Ecology Metals 220829, Lamb et al 2021 and Wiedenhofer et al 2021
(available on Moodle). This exercise supports the student’s idea process and gives practice in
observing where environmental markets may occur and what the demand for environmental
innovations may be. It is important to use creativity in making the analysis and to dare to make
assumptions, even when all the facts are not available. The conclusions of the analysis can then be
used in two different ways in working with your idea:

• if you already have an idea for an environmental innovation, you can analyse its relevance from
an ecological perspective
• use your analysis as a source of inspiration for ideas for environmental innovations.

Ponder on the following questions. We will discuss this on the seminar of task 1:

1. Study Lamb et al 2021:

• In what regions/markets is it most important to make change to decrease
greenhouse gas emissions?
• In what sectors is it most important to make change to decrease greenhouse gas
emissions?
• Ponder on the emerging opportunities for new innovations, thanks to requirements
of lowering the greenhouse gas emissions on these markets and in these sectors.

2. Study Wiedenhofer et al 2021:

• In what regions/markets is it most important to make change to decrease material
flows?
• What material flows need to be prioritised when decreasing flows?
• Ponder on the emerging opportunities for new innovations, thanks to requirements
of decreasing the material flows.

3. Study Industrial Ecology Metals 220829:

• Which substances are the most important to decrease to reach a reduced
environmental impact?
• Ponder on why the use of these substances ought to be reduced.
• Ponder on the emerging opportunities for new innovations, thanks to requirements of
lowering the use of these chosen substances.

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Task 2: Environmental innovation ideas
The first step in the innovation process is working with an idea. In this exercise your group should
present three ideas to a panel. You will choose one of the ideas that the panel judges to have
potential to work with in your group during the rest of the course. If the panel judges that none of
your ideas has the necessary potential, we will help you to find an innovation to work on. In the
process of choosing three ideas, you may choose a totally new idea or work on an idea or innovation
that you have thought up before the start of the course.

When you are working with new ideas let your imagination flow freely. Think in new directions.
Turn the issue upside down and inside out. Work in your groups, discuss the topic with one another,
talk to other acquaintances, surf the internet, go for a long walk so that you can think in peace. Try
everything that will help you to come up with new ideas. Once you have an idea in mind, turn it
around and start at the other end. Maybe it will work out even better that way!

Once you have a number of ideas taking shape, sit down and choose the three best that you would
like to develop further. Examine your ideas critically and in-depth. Are they viable? Are they really
new ideas? This critical examination process may result in new ideas that you want to look further
into. The innovation process is chaotic. Don’t be afraid of chucking out your first idea and trying a
new one! Remember that an innovation may consist of combining existing technology in a new
way or applying existing technology to a new area.

We will have one workshop to help you get started with your ideas (see schedule).

On the seminar each group will present their three environmental innovation ideas and then
work further with them in groups and make pitches.

A panel of experts, comprised of teachers and external experts, will then judge whether some/any
of your ideas are worth developing during the rest of the course. It is important to make short,
concise, well-informed, professional oral presentations.

Before the seminar you should make a written presentation of each innovation of max. 1 A4
page/idea. These written presentations should on Moodle latest one day prior to the seminar.

They will then be accessible to the panel as supporting documents during the oral presentations.
(This exercise should take 25-30 hours)

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Task 3: Product development
As part of your innovation work you must complete a number of exercises that will help you with
product development. For English speaking students: first read the supplementary instructions to
task 3 in the Compendiums (and, if you have the book, Chapter 9 and 10 in the book Industrial
Ecology and Sustainable Engineering). You can also read the reference literature. We advise
Swedish speaking students to read Compendium 2 and 3. (Estimated time for reading: 5 hours)

Exercise A:

Consider whether you have a definite major customer for your innovation, or a number of major
customers. If you think you have a definite customer(s) describe how you can involve this/these
customer(s) in the technical development work.

When you have identified the customer/s use the Value Proposition Canvas to further specify the needs of
the customer/s and how your innovation can fulfil this (use one canvas for each type of customer). The
Value Proposition Canvas is a tool which can help ensure that a product or service is positioned around
what the customer values and needs.

The Value Proposition Canvas is formed around two building blocks – customer profile and a company’s
value proposition.

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Customer Profile
• Customer jobs – the functional, social and emotional tasks customers are trying to perform,
problems they are trying to solve and needs they wish to satisfy.
• Gains – the benefits which the customer expects and needs, what would delight customers
and the things which may increase likelihood of adopting a value proposition.
• Pains – the negative experiences, emotions and risks that the customer experiences in the
process of getting the job done.

A customer profile should be created for each customer segment, as each segment has distinct gains, pains
and jobs.

Value Map
• Gain creators – how the product or service creates customer gains and how it offers added
value to the customer.
• Pain relievers – a description of exactly how the product or service alleviates customer pains.
• Products and services – the products and services which create gain and relieve pain, and
which underpin the creation of value for the customer.

(estimated time for this task: 2-4 hours).

Exercise B:

Make a preliminary market analysis of your ideas based on the questions in the WISC model,
(see the Compendium supplementary instructions to task 3 and Kompendium 2 for Swedish
speaking students). Fill in the points in the matrix below. You should base it mainly on the facts
you already have about your idea. You do not need to spend more than a few hours on
investigating the situation. (estimated time for this task: approx. 5 hours).

Societal Commercial Market Market Competition

factors risk needs approva
factors l
1 5 13 19 27
2 6 14 20 28
3 7 15 21 29
4 8 16 22 30
9 17 23 31
10 18 24 32
11 26 33
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Matrix to provide an overview of the 33 factors in the WISC-model.

low =1
quite low =2
medium =3
quite high =4
high =5

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Exercise C:

Now that you have a matrix, task B, that gives an overview of the market conditions, make a
SWOT analysis. Try to identify patterns. Identify 5 important strengths, weaknesses,
opportunities and threats. Remember that opportunities and threats are dependent on the external
factors. Strengths and weaknesses depend on internal factors. (estimated time for this task:
approx. 2 hours).

Strengths Weaknesses

Opportunities Threats

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Exercise D:

(estimated time for this task: approx. 5 hours)

Make a specification of the demands on the invention (PDS) in accordance with the suggestions
in the supplementary instructions to task 3, 3.2.4. Make a list of the demands and rank the criteria
according to their importance. Grade the criteria on a scale from 1-5 in which:

5= essential
4= major importance
3= great importance
2= small importance
1= minimal importance

Choose the criteria that were allotted 3-5 points.

Evaluate the criteria in a weighted criteria matrix.

Weighted Criteria Matrix

A B C D E F K P V
High durability A 1
Long lifespan B 3
Lightweight C 5
material
Recyclable D 7
Natural material E 9
Slim design F 11
• Allot a letter to each criterion.
• Compare pairs of criteria: if A is more important than B put 2 points in the A-B square, if A
and B are equally important put 1 in the A-B square, if B is more important than A put 0 in
the A-B square.
• Each of the criteria is compared with the others in this manner
• A column with a correction factor (K) is added after the criteria columns. This factor is
comprised of a number series of uneven numbers (1, 3, 5, 7 etc.). The factor is necessary so
that the criteria in the columns farthest to the left will not have a greater weight in the final
calculation.
• Add up the figures in the rows vertically and put a minus sign in front of each sum total
• Add up the rows horizontally, taking note of whether they are plus or minus and including
the correction factor
• Calculate the weight factor for each criterion (V): V= P/the sum of P. Check that the sum
total of V is 1.00

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Exercise E:

Now that the demands on the product/service/system are identified it is time to create the functional
and physical structure. This can be illustrated by a tree structure, see figure 3.3 and 3.4 in the
Compendium supplementary instructions to task 3. Make a tree structure for the function structure
and the physical structure (clue: In the Office-package there is often a program that facilitates
making a tree structure e.g., “MS Organisation Chart”, you can also use a web application such as
lucidchart.com). Sometimes the creation of a tree structure enables you to discover new aspects.
You may need to go back to task D and make adjustments once you have completed this task.
Perhaps you have made a misjudgement about some of the criteria. The innovation process is not
linear, but is a process in which you need to go backwards and forwards. You will need to examine
the problems from all angles. (estimated time for this task: approx. 5-10 hours)

Exercise F:

Make a concept description of one page in which you describe the innovation. Depending on the
nature of the innovation, you can make:
• a simple diagram
• a simple model (that you can photograph for your report)
• a simple test.

You are free to complete this task in the manner best suited to the innovation. This task can also be
further developed in task 4 if necessary (estimated time for this task: approx. 15-20 hours)

This task (all exercises) should be presented in writing on Moodle (latest in morning the day before
the seminar) and orally at the seminar (15 min presentation).

In this course you focus on professional writing (and presentations). Move from academic writing
to business writing, eg your brand/company or product name, do not write exercise A, write target
customer group.
A good way to structure this task is title: product development and then headings: concept
description, customer/value proposition, market analysis, product demand specification, weighted
criteria matrix, and finally functional and physical structure.

You can use many different tools for constructing the illustrations/structure, some students have
found the tools at lucidchart.com helpful.
Task 4: Assessment of environmental impact
Making an assessment of the environmental impact of your innovation and a product development
plan are important parts of the work with an environmental innovation.

Exercise A:

First read the book The hitchhikers guide to LCA: an orientation in life cycle assessment methodology
and application and, if you have this book chapters 16-20 and 24 in Industrial Ecology and
Sustainable Engineering (or any other book on Life cycle analysis, Swe: Livscykelanalys). Read
briefly. The aim is that you should understand the approach associated with life-cycle analysis; you
do not need to understand all the details. (Estimated time for this task: approx. 5–10 hours). Now you
will make a general assessment of the environmental impact of your innovation (estimated time for
this task: approx.10 hours). You do not need to make a life-cycle analysis, which would take too long,
but you should adopt a life-cycle approach. As your starting point you should use the tree structure
that describes the physical structure of your innovation – see task 3, exercise E. This structure
provides an overview of all the components involved in the innovation. You should make an
assessment based on life-cycle thinking. You may also need to contact some of the suppliers you have
in mind about certain facts and check things out on various websites. You do not, however, need in-
depth knowledge of environmental effects to be able to complete this task. Remember that you are
making a provisional assessment as a tool in your innovation work, not an in-depth analysis. You may
choose between two different goals for your assessment:

• Identify which part of the life-cycle or which components represent the greatest environmental
impact.
• Compare the environmental impact of your innovation with that of the thing you aim to
substitute with the innovation.

You can choose which goal is best suited to your aims. Base your analysis on the issues below, which
are based on the four system conditions (see more information on the systems criteria in the folder
Environmental Assessment at Moodle), and present an assessment of the environmental impact that
is one page long, structured around the following points:

In a sustainable society, nature is not subject to systematically increasing …

… concentrations of substances extracted from the Earth's crust.

This means limited extraction and safeguarding so that concentrations of lithospheric substances
do not increase systematically in the atmosphere, the oceans, the soil or other parts of nature;
• non-renewable material (e.g., minerals and metal). For further information in connection with
this point, if you have this book, see chapters 10 and 24 Industrial Ecology and Sustainable
Engineering
• non-renewable energy (e.g., coal, oil, natural gas, or nuclear power).

… concentrations of substances produced by society.

This means conscious molecular design, limited production and safeguarding so that concentrations
of societally produced molecules and nuclides do not increase systematically in the atmosphere, the
oceans, the soil or other parts of nature; e.g. NOx and CFCs;
• For further information in connection with this point see the Swedish Chemicals Agency’s
PRIO and Restricted Substances list/database that can be accessed via the Swedish Chemicals
Agency’s website, www.kemi.se
… degradation by physical means.
This means that the area, thickness and quality of soils, the availability of fresh water, the biodiversity,
and other aspects of biological productivity and resilience, are not systematically deteriorated by
mismanagement, displacement or other forms of physical manipulation; e.g. over-harvesting of
forests and over-fishing;
• For further information on physical impact on biological diversity see the National
Geographic Society’s Eco-region website.
www.nationalgeographic.com/wildworld/terrestrial.html
• For further information on physical impact on water and/or land resources see chapter 19 and
20 in Industrial Ecology and Sustainable Engineering.

In a sustainable society the use of resources is so efficient and fair that human needs are met wherever
they occur:

• energy consumption
• how the innovation will save/reuse resources/raw materials; For further information in
connection with this point see Part IV of Industrial Ecology and Sustainable Engineering
• how the innovation will affect the durability/quality of the goods/service. For further
information in connection with this point see Part IV of Industrial Ecology and Sustainable
Engineering.

Exercise B:

Based on the environmental impact assessment that you made in exercise A identify the following:

• the 3 strongest environmental arguments for the innovation

• the 3 aspects that will give the greatest environmental impact from the innovation and give
your reasons.

Briefly describe how you will use the 3 environmental arguments in your business development and
how you can reduce the 3 aspects leading to the greatest environmental impact. (estimated time for
this task: 1-2 hours)

This task should be presented in writing on Moodle one day prior to the seminar (latest in the
morning the day before the seminar) and orally at the seminar (15 min presentation).
Task 5: Product development plan
Exercise A:

Make a product development plan (estimated time for this task: 10-20 hours). In the Compendium
supplements to task 3 (Kompendium 2 and 3 for Swedish speaking students) each of the steps you
need to take to produce a saleable product/service is described. Read the compendium carefully and
consider the steps that must be taken before your innovation can be launched on the market. The most
usual tool used for making a time schedule is what is known as a Gantt chart. The various activities
are plotted on a time axle. Both work tasks and milestones can be marked on the chart, and it also
monitors planned progress in relation to real outcomes.

Make a Gantt chart for the rest of the development work for your innovation, starting from the point
in the process you are at today. Describe all the steps that need to be taken, when you will carry them
out, what equipment and competence you will need etc. You do not know everything involved right
now. There may be gaps in the chart. Include the factors you are uncertain about. Remember that
things often take a long time. Executing a test may only take one day, but it may take months to get
a time from test-institutes to perform the test. Some attempts fail, prototypes may need to be rebuilt
several times, you may need to wait for parts, and soon a whole year has passed. Note that you should
only describe the technical/conceptual development up to the point at which you have a saleable
product/service. The business development side – marketing plan, investment plan etc. – will be
considered in tasks 7 and 8. It may, however, be worth remembering when you make your time
schedule that it often takes 1-2 years to raise the necessary capital. This could be an important
consideration if it seems that large investments will be needed at different points in the technical
development process.

Exercise B:
Create a product development plan based on task 3, 4 and 5 exercise A. Summarize the information
of a product development plan to a report containing:
• Concept description – preferably with pictures on prototypes and/or sketches
• Value proposition
• Structure trees – functional and physical
• Product Design Specification
• Criteria weighting matrix
• SWOT
• Environmental analysis
• Gantt chart

This task should be presented in writing on Moodle (latest in morning the day before the seminar)
and orally at the seminar (15 min presentation). You only need to present the new parts (i.e. the
Gantt chart and changes due to feedback from task 3 and 4).
Task 6: Business idea
Another step in the innovation process is to formulate a rough draft of your business idea, focusing
on how you will commercialise your innovation.

Exercise A:

Read chapters 1-2 in the course book Starting up – Achieving success with professional business
planning (or Affärsplanering for Swedish speaking students, both are available as pdf in the
literature folder, estimated reading time: 2-3 hours). Based on the advice given in the book, you
should now formulate a business idea that shows how you plan to commercialise your innovation.
This will be a rough draft, which will probably need revision as your business strategy develops.
However, although it is only a rough draft, it is important to think carefully about how you
formulate your ideas. Your business idea should express the essence of the product you plan to
commercialise (estimated time for task A: approx. 5 hours).

Exercise B:

Read Part 4 of the Compendiums. Based on the compendium we will discuss a model for thinking
in terms of a business strategy (estimated reading time: 2-3 hours)

Exercise A should be presented in writing on Moodle one day prior to the seminar and orally at the
seminar (5 min presentation).
Task 7: Business strategies - analysis
The next step in the innovation process after formulating the business idea is to make an internal,
external and SWOT analysis of your innovation and present it in writing and orally.

Exercise A:

Read Part 3 of the course book Starting up (estimated reading time: 3-4 hours), part 4 of the
Compendiums (estimated reading time: 2-3 hours) and Business model generation (available as pdf
in the literature folder, estimated reading time: 2-3 hours). Make an internal, external and SWOT
analysis of your innovation, according to the guidelines in Part 4 of the Compendiums, and present
your analysis in written form, approx. 5 pages. You may formulate the report as you wish.

To assist you in the SWOT (especially when you analyse strength and weaknesses) you get an
overview of your business model by using the Business Canvas model described in Business model
generation. The Business Canvas model allows you to quickly get an overview and test different
scenarios. Before you go into the process suggested in figure 1 in Part 4 of the Compendiums. Bear
in mind that you will be expected to include this material in a business plan, as described in Part 4 of
the compendium, at the end of the semester.

The two tools the Business Canvas and the process suggested in figure 1 in Part 4 of the Compendiums
have different purposes. The Business Canvas gives you an overview and process suggested in figure
1 in Part 4 of the Compendiums is used to guide you deeper into the process from business idea to
executing your business.

(estimated time for this task: approx. 50 hours)

Exercise B:

Read Part 5 of the Compendiums. Based on the material in the compendium, we will discuss strategic
decision making, operative plans, risks, investment appraisal, production costing and assessment of
capital requirements (estimated reading time: 2-3 hours).

Task A should be presented in writing on Moodle two days prior to the seminar and orally at a
seminar (15 min presentation).

You will also read and give feedback to another group and lead the discussion on their written
hand-in and presentation (15 min discussion).

Task B will be discussed at the seminar.

Task 8: Business strategies – strategy and operative plan
A further step in the innovation process is to make a business plan, based on the internal, external and
SWOT analysis of your innovation that you carried out in Task 7. The business plan should formulate
goals and comprise strategic, tactical and operative decisions.

Exercise A:

Read Parts 3 and 4 of the course books Starting up (estimated time for reading: 6-8 hours) and part 5
of the Compendiums (estimated time for reading: approx. 1 hour). Based on the internal, external and
SWOT analysis of your innovation that you carried out you should:

• update your business idea

• formulate goals for your business
• choose strategies for fulfilling your goals
• make tactical and operative decisions in line with your strategic decisions

Use the description of the business strategy process in Part 5 of the Compendium, 5.1, as a general
guide. In the course book Starting-up and sections 5.2 and 5.3 of the Compendium you will find a
more detailed account of the aspects that should be included.

You should present your results under the following headings (see the course book Starting-up):
• Summary
• Business idea
• Management team
• Marketing plan
• Business system and organisation (can be expressed as a Business Canvas model)
• Operative plan
• Evaluation of profitability and financing
• Risk analysis

How comprehensively you deal with the various points and how detailed you make them is up to you
and depends on the formulation of your business idea. Remember that the final version of your
business plan should not be more than 10 pages (without appendices). The operative plan (point 6)
should be based on the product development plan that you formulated in Task 5. Add this to the Gantt
chart on which you specify the business activities that you identified as necessary. You will then have
an operative plan that includes both technical and business development.

With regard to financial calculations, you should make a quarterly liquidity budget (or cash-flow
analysis, as it is called in the course book Starting-up) and a budget for the business up to the first
two years that the product is produced and sold (normally 3-5 years). You should make an estimate
of the worst possible, the normal/expected and the best possible scenario for the liquidity budget and
the company budget. The financial calculations should also include an investment appraisal and an
estimation of the start capital required and how this capital is to be raised. Base the estimation of the
start capital required and the costs analysis on the activities you have included in your Gannt chart.
Estimate the cost of each activity. This will give you an estimation of your need for financing
(investment capital + operating capital = start capital = financing needs).

(estimated time for task: approx. 30 hours)

Exercise B:

Update the product development plan (task 5) and enclose as an appendix to your business plan. Go
through the product development plan according to the changes you have made in your concept when
working with the business plan. Construct a new comprehensive product development plan based on
the updated results. The plan should include:

• technical description of the product concept – preferably with pictures on prototypes and/or
sketches
• Value proposition (can be part of the business plan)
• structure trees – functional and physical
• Product Design Specification
• Criteria weighting matrix
• SWOT
• Environmental analysis
• Gantt-scheme

Your business plan, with attached product development plan as an appendix (tasks A and B), should
be accessible in written form via Moodle and should be presented orally at the seminar in December
(15 min presentation). You do not need to present full-scale calculations. You will be able to adjust
your calculations after the seminar.

In the light of the feedback you receive you should make improvements or adjustments in your
business plan and attached product development plan and submit a final version prior to the final
presentation in January.

On the seminar in January you will present your product/business idea. You should give a
convincing 10-minute (maximum!) presentation to a panel of teachers, other students and external
experts. Make the presentation as though you were introducing your concept to investors and other
interested parties at a professional trade fair (you tell the audience who they are before you start).

On the seminar in January, you will also have a trade fair in a stand (a small table) that you must
construct yourself in the morning before the presentation (e.g., computer with your presentation,
a folder, web page, etc so that you can present your idea to interested parties at the trade fair).