Four (4) M’s of Operation in

Relation
to
Business Opportunity

1
LU_ Entrepreneurship_Module 8
 Target

“Business is not just doing deals; business is having great and right
products, doing great engineering, and providing tremendous service to
customers. Finally, business is a cobweb of human relationships”-Ross Perot.

Don’t search customer for your product but rather search a product for your
customers. Conceptualizing a product for the market begins with the never
ending needs of people. The right product at the right place comes with the
customer’s requirement specifically to address concerns and problems.
Ultimately, customer’s satisfaction is the greatest goal of an enterprise which
lead to creating value to the entrepreneur.

A successful new product (products and services) coils from the merging of the
creative mind, the technical mind, and the business mind. All of the three comes
together in the entrepreneurial mind.

In your previous lesson, you have learned about the Four (4) M’s of Operation.
Now let’s describe the Four (4) M’s of Operation in relation to business
opportunity by making a right products or services that will be suited for the
market.

This learning materials will give you the appropriate concepts and knowledge on
how you will be visible to your customers. After going through this lessons you
are expected to:

1. Develop a product description;

2. Create a prototype;
3. Test the prototype, and
4. Validate the service description of the product with potential customers to
determine its market. (CS_EP11/12ENTREP-oh-j-12)

2
LU_ Entrepreneurship_Module 8
 Jumpstart

Activity 1: Read and Understand Me!

Directions: Read the concepts about entrepreneurial mind and understand it in

relation to product development.

A successful new products come up from the convergence of the three

mind namely; the creative mind, the technical mind, and the business
mind. All three mind together comprises the entrepreneurial mind.

The creative mind conceptualizes and designs a product that consumers

find some use for. It also produces products that are pleasing to see, touch, hear,
and taste. This product also creates emotional attachment to the consumers and
sometimes becomes an important personal expression.

The technical mind is the technology originator. Although it comprises

the entrepreneurial mind this is not necessarily in an entrepreneur to have it but
this drive him /her to convert new learning into highly serviceable and
operational. The technical mind is also a technology adapter. He uses an old
learning merging it with a new one to come up with a successful human
endeavor. It also called a technology renderer. He/she resolves to make a new
product for the product creator by shaping or reshaping the technical designs of
the new product. In this the values of being creative, resourceful, and innovative
are being manifested by an entrepreneur.

The business mind connects the potential of the new products by

creating a market for them. It also manages the internal and external
environment of the products. The business mind turns the purpose and passion
into profit. It also creates customers and exchange of values.

Direction: Choose your answer from the given choices. Write your answer in a
separate sheet of paper. Write the letter only.

1. Which of the following essential characteristics of entrepreneurial mind see

things differently?
A. Creativity B. Passion
C. Innovative D. Resourceful

2. It brings the products (product or services) from the prototype stage to

production and eventually to the potential market.
A. Business mind B. Technical mind
C. Creative mind D. All of the choices
3
LU_ Entrepreneurship_Module 8
3. Which entrepreneurial mind conceptualizes and design products to capture
the sensory system of human being?
A. Business mind B. Technical mind
C. Creative mind D. All of the choices

4. Which of the following best described creative mind?

A. Employment of technology to arrive at a reconfigure design.
B. Conversion of prototype into production stage and finally distribution to
its market.
C. See and use products aside from its basic function.
D. All of the above

5. A common eyeglass is used as a reading glass only. However due to demand

of consumer the product description and design is being reconfigure through a
technology to come up with a progressive eyeglass not just for reading but for
three capable uses. What entrepreneurial mind is being manifested in the
situation?
A. Business mind B. Technical mind
C. Creative mind D. All of the choices

4
LU_ Entrepreneurship_Module 8
 Discover

The four (4) M’s of operation which comprises the materials, machinery, method,
and the manpower is also represent the element of production process.
However, there’s a deeper function of the four elements in relation to operation
management. Operation management which deals on activities, decisions and
responsibilities of managing resources which is dedicated to the production and
delivery of products and services.

The attainment of enterprise mission, vision, goals and objectives is dependent

on the entrepreneurial activities engage by an entrepreneur. The product is the
center of the business complemented by manpower, methodology or process,
and machinery (technology).

The four (4) M’s significantly contribute to the success of the enterprise by
using available resources to effectively and efficiently produce products and
services in such a way to satisfy the needs of the customers.

After thorough assessing the market needs, an entrepreneur make

decision on what product will be offered to the market taking into consideration
the requirements and needs of the customers. Product conceptualization and
innovation is a taxing task for an entrepreneur. However, when decisions are
based on customer’s preference then all things will be on the right place.

Now, we will be dealing with product descriptions, making prototype,

testing the prototype generated product and validating the service description of
the product with potential customers to determine its market.

DEVELOPING A PRODUCT DESCRIPTION

A Product Descriptions is a marketing strategy that explains what a

product is and why consumer is will to buy it. The very purpose and objective is
to provide information such as features and benefits to wide range of consumer
to attract them and compelled them to buy. Product Descriptions should be
created as part of the planning stage and before plan will be completed. This is
common mistake of entrepreneur wherein product description is not being done
all throughout the planning stage. It is not always possible that a Product
Descriptions can be done at conception stage in each product and therefore, can
be created or updated within the boundary stage processes.

5
LU_ Entrepreneurship_Module 8
A Product Descriptions is used to:

1. Understand the purpose of the product, its function, and benefits.

2. State who will use the product and how will be used.
3. Identify level of the Quality required of the product so the product will be
usable. (Should be fit to the purpose)
4. Express the skills required to produce the product, to review and approve
the same.

Writing an Effective Product Descriptions

A Product Descriptions is basically written in each products to facilitate

easy recognition and identification of usefulness of a product. Here are some
things to consider in making a Product Descriptions. Remember that a quality
information form part of an effective description.

1. Know your target market. This is the first step to consider in writing
your descriptions, know your market. From here you would be able to
reach which features that would be enticing to your potential buyers. The
personality of your buyers plays a huge role in making this description.
Thus, helping you understand which will be the appropriate description to
be valuable to your buyers.

2. Focus on the Product Benefits. Business owners are really excited to

share the features of their products, however, not all are excited to such.
The buyers are determined to know the benefits that the product offers
not the ordinary or the extravagant features of it. The buyer focuses on
product benefits which talks about how the products will improve their life
rather than the products features which talks about technical information
of the product only.

3. Tell the Full Story. A good product description is a tell all story. The
detail should be fully disclosed, convince the buyers of its benefits, and
make an emotional impact. Emotions affects the behavior of the buyers,
therefore, product description should be the best opportunity to get closer
with the buyers. How you will do it? By filling any gaps between the
product and the buyer perception with the product.

4. Use Natural Language and Tone. Make a description as if you’re

talking with your friends. Build a connection between buyer and your
brand by using description which is natural and convincing.

5. Use Power Words that Sell. There are words or phrases that entice
human emotions to buy a certain product. Fortunately, Shopee, Lazada,
and the likes, also increases sales. By being wary of these words, you can
easily convince your buyer to take the spring and make the purchase.

6
LU_ Entrepreneurship_Module 8
 6. Make it easy to Scan. If your offering your product in social platform,
make see to it that your description is scannable. Make your product
descriptions easy to scan by providing bullets points, a short sentence,
and different fonts.

CREATING A PRODUCT PROTOTYPE

In order to transform the product concept into a viable product, the
technical mind must intercede to provide the quality and performance
specification through technology.

One of the necessary early step in the inventing process is the creation of
the prototype. It is the conversion of concepts into a viable product. Creating a
prototype is also considered as fun and rewarding step to take. This stage brings
out the creativity, resourcefulness, and passion of an entrepreneur. It is exciting
to see the concepts will turn into something real and tangible whether is made
through hands or machines.

So what exactly a prototype should look like? First, it depends on your

idea. Second, it depends upon your goal or budget. If possible it is great to start
with homemade prototype. A homemade prototype can give you a good running
start.

A prototype provides other advantages, as well:

1. It enables you to test and refine the functionality of your designs.

a. The reason for making a prototype is to test the functionality of your
idea. Theory works well if validate by prototype. You just know the
flaws of your concepts unless it will transform into reality. Thus,
through this prototyping we can see the issues and challenges and
eventually adjust for necessary adjustment to come up with a viable
one.
2. It makes it possible to test the performance of various materials.
a. Prototyping aid the use of suitable materials needed to produce a
viable product. For example, if the concept material is metal and
afterward it is more convenient to use plastic as component
because of the result of testing. Thus, prototyping aid us to come up
with the best materials.
3. I will help you describe your product more effectively with your staff,
including your packaging or marketing specialist, and potential investors.

Why Prototype?

Prototyping is the Design Verification phase of Product and Development

because it attests and validate the designs actually in theory. Think of a
prototype in virtual or in an imaginary and just convert it as if you are holding it
in reality. It makes a difference if a prototype can be touch, see, try, and feel.

But there’s a specific reason why there’s a need on prototyping;

1. Display or Show the new product (for show or for potential investors)

7
LU_ Entrepreneurship_Module 8
 2. Test an idea it works.
3. Test the design and concepts if passes certain requirements.
4. Use to gauge where improvements are necessary.
5. Acquire customer response.

Prototyping Methods

Traditional and conventional prototyping methods include mock-ups (clay,

woods, or other) and the infamous bailing wire and duct tape. Mock-ups is a
highly –reliable static design diagram, should shows information frames and
statically present content and functions. Unlike the infamous bailing wire and
duct tape, a mock-up looks more like a finished product but it is not interactive
and not clickable. It is rather a graphical illustration. Wireframes is perfect to be
used at the brainstorming and collaborating or very early design stage.

When to Prototype

Depending on a product, a prototype may or may not be required or

maybe only a part of the design of a product need prototyping. However, this not
to conclude that prototyping is not important. It is to emphasize that prototyping
is a taxing task and at the same time costly, so the need is worth evaluating.

In many industries the product complexity and need several iteration of

designs required prototyping and testing. Just like in auto-industry, they use
different variations of prototype to test and evaluate their design and to find
areas of further improvements.

Constructing your Product’s First Prototype

One way to improve your product viability is to create a prototype. Here

are following step taking into consideration in constructing your product’s first
prototype.

1. Create a Concept Sketch. Ideas in mind should be written in papers to

arrive at a first step in making your idea into reality. Illustrating your idea
aid you in visualizing the bigger picture of your detailed prototype.
2. At the early stage of conceptualization there are so many ideas competing
with each other. So, the best way to do it is to put in paper rather to invest
time perfecting a digital drawing.
3. Develop a Virtual Prototype. After putting up your concepts in paper
and selection of suitable sketch prototype, the help of a standard digital
design tools will transform your 3-D drawing into a photorealistic
prototype. This will help you see the virtual physical version of how your
design look like.
4. Build a Physical Prototype. Once you have already your virtual
prototype, you’re ready to construct its physical version. If you are skilled
to do it, you can make it yourself. However, if not you can ask the help of
an expert to do it. Basically, the first prototype is made in a less expensive
8
LU_ Entrepreneurship_Module 8
 material then later on use to correct flaws and improvement. As you
improve your design, you can surely make a replica of your prototype as it
will be offered to your consumers.
5. Locate a Manufacturer. If the feedback of the consumer is positive and
your idea is going to be profitable you need to search for a company that
can manufacture your product. Locate a company that can make or
produce your product in a cost-efficient and will not compromise your
target revenue. Go to different suppliers and manufacturers to get an
estimate in order to determine the most cost–efficient materials and
putting your designs into production.

TESTING THE PRODUCT PROTOTYPE

Prototype testing is the process of testing your prototype with real users to
validate design decisions before development starts. The objective is to identify
the problems and areas of improvement early so you can immediately change or
adjust prior to development and build a product that meet customer’s need and
expectations.

Step-by-Step Procedure in Prototype Testing

1. Know exactly what you’re testing. The clarity of the goals help you to
identify the kind of prototype you need and the type of elements you need
to include in it.
2. Create the prototype. As mentioned above the prototype you created
will depend on your test goal. If you are in to lo-fi (low fidelity) prototype
testing better to use basic form ( a mock-up or wireframe), whereas if
you’re at the hifi (high fidelity) prototype, you’ll be using a toll like Sketch
or Figma to create an interactive prototype that’s as close to the real
product.
3. Choose the right audience. Test your prototype with the right target
audience. You have to prioritize getting the best insights you can. Also,
you should look to include both current customers and users who haven’t
interacted with your product to get the best results.
4. Choose your usability testing method. The right method will depend
on your product and goals of your test. When your product is a tangible
product, testing should be into face-to-face setting, however due to cost
and the current situation it is not possible. The use of alternating testing
platform such as in digital world can be employed to allow us to get
diversified insights from different users.
5. Give people a clearer objective. To encourage action, tell all story that
can help you to broaden the mind of your customers. For example,
imagine you’re working on a new product that will help people find the
best brunch bar in town for them. Instead of simply asking them to pick
somewhere to go eat, create a scenario that will place the user in a
realistic scenario. This gives user the opportunity to take their own path as
they test your prototype.
6. Pick the right questions to ask users. Throughout your prototype
testing, you have the time to ask the usability questions that will provide

9
LU_ Entrepreneurship_Module 8
 you even more insight. Ensure to pick the right question to effectively gain
feedback.
7. Launch your test. This is it- the time for prototype testing. Consider a
trial run with a friend when you are doing the testing in-house, or set up a
pilot test in your remote testing app so that you’re 100% prepared before
doing a real-world test.
8. Share the results. After gathering responses and analyse the test result
– it’s time to share them with all the key stakeholders. Whether it’s good
or not, you now know what areas should be improved and make necessary
adjustment.
The experience is so significant to get to the next stage of your product
launch process.
Reasons for Prototype Testing

The very important part of the design and manufacturing process is the
testing of the developed product/prototype. The need of testing of the prototype
is to evaluate whether the specification is functioning well or there’s a need of
adjustment or improvement. In general, testing is done to allow the designer and
client to gauge the viability of the design. There are many reasons why testing
and evaluation takes place. Some reasons are listed below.

1. Testing and evaluation allow the client to view the prototype and to give
her/his feedback.
2. A group of people can try out the product and give their views and opinion
regarding the product. At this stage improvement and adjustments are
carried out.
3. Safety issues are being identified.
4. Allowing the product cost to be measure and concluded.
5. Component parts failure are identified at this point.
6. Can be carried out aligned to the similar design, thus, it leads to product
improvement.
7. Evaluating the manufacture of the product, allow the designer to plan and
decide the most cost- efficient and cost- effective manufacturing line.
8. Guarantee consumer satisfaction.
9. Allow concepts designed to be fully evaluated.
10.Testing against the specification of the products help to ensure a full and
relevant evaluation.
11.The testing and evaluation phase allow fellow specialist and expert to give
their opinions and views and suggest critical improvements for the flaws
seen during that stage.

MARKET VALIDATION
“Market, according to Hubbard (2019),
refers to a set of individual sharing similar needs
or characteristics that a business hopes to serve.
These individuals are the end users most likely
to purchase your product. “

10
LU_ Entrepreneurship_Module 8
 Market validation is the process of presenting a concept for a product to its
target market and learns from those prospective buyers whether or not the idea is
worth pursuing.

This process typically takes place early-on in

the conception stage, before any significant
Image from iStock.com investment has been made in developing the
product.

The two most common approaches to market validation are:

1. Interview people in the target market, such as the buyers.

2. Send out surveys to these personas.

The key is that market validation research must include direct contact and
feedback from people in the product’s intended market.

How to Validate a Product’s or a Service’s Marketability

1. Ring the cash register. The first and arguably best way to validate your
product is to prioritize making a few initial sales. Nothing is more
important than customers seeing the value in your product and
exchanging money for it.
2. Conduct competitive analysis. Market research is useful all throughout
the process of making products suited in the market. It help you to ease or
lessen the risk and build confidence in your idea before venturing your
time and money. Competitive analysis will help and support the translation
of your conceptualized idea into reality gaining confidence that there’s
enough demand of your product in the market.

3. Research the existing demand. A third strategy you can use to validate
your product and its market is to analyse demand and search volume. The
easiest starting place is to go to internet. Using the Google Trends, a free
tool, allows you to see how often people are searching for the products
you are selling. Knowing the frequency of how often your product being
searched it can help you make more informed decisions. The frequency
tells you if you are dealing with the product that’s on the demand or trend,
or it’s in a stagnant product category. The last thing you want to do is
jump into a declining market.

4. Start a crowd-funding campaign. What is Crowd-funding? Crowd-

funding is the use of small amounts of capital from a large number of
individuals to finance a new business venture. A crowd-funding campaign
is a helpful, proven option to see if there’s demand for your product. One
of the benefits of a crowd-funding campaign is that you have a firm
timeline and it requires all of your focus and effort to reach your goal.

11
LU_ Entrepreneurship_Module 8
 5. Meet customers in person. Face-to-face validation is another method to
be done to ensure that your product is viable. Trade fairs is one way of
meeting customers and provide you with a quicker response and first-hand
feedback from potential customers. You were able to gather insight,
information, seeing their initial reactions to your product, and lastly you
will assess if they are willing to spend money for your products.

6. Beta Test .Other ways to validate your product include creating a test
version of something and running it past a small group or audience to get
their feedback. A test version of the product can either be paid, or free,
and is a great way to get testimonials and feedback while you create. You
can also use the feedback from your first round to improve and build on
your ideas to make them even better!

Importance of Market Validation

1. Reduce the risk of launching the wrong idea. Your idea is not always
flawless. The validation process helps you to change idea to improved one
so not to offered products and services that are not saleable in the
market. The earlier the time of idea changing reduces the risk of launching
it.

2. Idea validation lead to the creation of a valuable product in the

market faster. Validation of a business idea gives you a chance to decide
if there are any imperfections in your idea that could result in a huge
return, discount, fix and substitution costs.

3. Minimize costs. Idea validation can’t guarantee the success of your

business bit it gives you a unique opportunity to check and spend time
and money on a profitable start-up.

4. Check that your idea has real demand. It is easier to predict demand
of product through the use of a validation. You will know and be inspired to
improve your product.

5. Prove that you can sell the product. The benefit of the business idea
validation is to demonstrate the needs your potential clients. It define the
requirements of your future customers before you will launch a star up.

https://adloonix.com/Why-Validation-of-a-Business-Idea-is-Important-
forYour-Startup-Adloonix

12
LU_ Entrepreneurship_Module 8
13
LU_ Entrepreneurship_Module 8
14
LU_ Entrepreneurship_Module 8