Opettajat / Teachers: Pekka Kess & Suzy McAnsh 555222A Tuotantotalouden harjoitustyö 555222A Demonstration in Industrial Engineering and Management 902011P Business Plan Opettajat / Teachers: Pekka Kess & Suzy McAnsh Syksy 2014 / Autumn 2014 PEKKA KESS, 2014

Kurssikuvaus – 2 op Osaamistavoitteet: Kurssin suoritettuaan opiskelija osaa soveltaa peruskursseilla hankittuja taitoja kokonaisvaltaisesti liiketoimintasuunnitelman laatimiseen. Opiskelija osaa laatia liiketoimintasuunnitelman. Opiskelija osaa tarkastella liiketoimintasuunnitelmaa strategisen näkökulman, markkinoinnillisen näkökulman ja talousprosessin (sis. reaaliprosessin) näkökulman kautta. Opiskelija osaa laatia ja tulkita tulos- ja taseraportteja. Opiskelija osaa toimia ryhmän jäsenenä annetun tehtävän toteuttamiseksi. Sisältö: Liiketoimintasuunnitelma ja siihen liittyvät osa-alueet mm. investointilaskelmat, markkinointisuunnitelma ja tuotantosuunnitelma. Toteutus: Tuotantotalouden opiskelijat suorittavat kurssin integroituna 2 op:n laajuiseen englannin kielen kirjallisen viestinnän kurssiin, joka on osasuoritus kurssiin 902011P Tekniikan englanti. Suoritustapa: Harjoitustyö ryhmätyönä 555222A kurssin osalta palautus 31.12.2014 mennessä 902011P + 555222A osalta palautus erillisen ohjelman mukaisesti Course acceptance: Assignment Kysymykset: pekka.kess@oulu.fi PEKKA KESS, 2014

The Plan for 902011P Business Plan PEKKA KESS, 2008

Introduction to Business Planning A bit of general history High tech world VC culture Foundations in the US Knowledge transfer to Finland in th 80’s A bit of own Business planning history Rautaruukki Oy Idesco Oy Some others Some thoughts about the future Lean start-up PEKKA KESS, 2014

Lean startups Lean start-ups begin by searching for a business model. They test, revise, and discard hypotheses, continually gathering customer feedback and rapidly iterating on and reengineering their products. This strategy greatly reduces the chances that start-ups will spend a lot of time and money launching products that no one actually will pay for. PEKKA KESS, 2014

(Churchill & Lewis 1983) PEKKA KESS, 2014

Business Plan To whom I should write? Other students You can use as resources to improve your plan! Case company Interested in benefits for the business May use your text for the purposes of getting funding Business Plan Your group members You need to ask what is their interest!! Instead of presenting your own idea, ask what should be our idea Pekka Kess Will give you grade for the “Harjoitustyö” Is interested in the plans, especially the feasibility of the plan Yourself Interested in improved skills for future workplaces 

What do I need to do in order to complete the course … ? … agree with your group how to organize the work … conduct following course outputs: Peer-review report Pre-task (individual work) Draft 1 Draft 2 Final plan Executive summary Business Plan Business Plan Business Plan Comments on group X business plan Upload into Urkund (to Suzy)

Conducting the course outputs For each document, please identify the persons involved and their roles. Name of documents: R1_omanimi_executive summary A group will consist of 3-5 students As a group, book time for meetings with Pekka Kess (week 49) using e-mail: pekka.kess@oulu.fi

Performing group work My idea  Our idea Team work It is important that every member of the group can commit to the shared goal It is more important to listen than to talk My idea  Our idea

Business plan Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

Business plan Aim of a business plan: To increase the potential for business success Different stakeholders have additional needs. Consider these needs when writing the plan. Notice that fictional business plans are written for investors, so the plan could consider a coming investment Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

Contents for a Business Plan Executive summary Business description Business idea Technical details of the product Competitive analysis Market analysis, including the aspects of e.g. operating environment, market size & growth & segments, competition, customers Strategy Targets in relation to market share, sales & profits Strategy including the aspects of product/market, price, logistics Operational management Business model and related plans Organization: management, resources Financial components An income statement (tuloslaskelma) A cash flow statement (kassavirtalaskelma) A balance sheet (tase) Additional components Risk analysis Development plan Investments calculations Financing plan Rahoituslaskelma Kannattavuuslaskelma Myynti Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

Business model Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

The Business Model Canvas

Alternative case businesses Fictional business If the group members do not have/want to write about real business, the business can be fictional Then each member of a group writes Executive summary based on their own fictional business idea Work includes peer review Real business 1 A group can decide to choose course work to be done based on a group member’s business case Each group member writes own Executive summary Work includes review by the company Tuotantotalouden osasto Mirja Väänänen & Pekka Kess Tuotantotalouden osasto Mirja Väänänen

Grade and evaluation Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

Grade Pekka Kess will give you grade for the Tuotantotalouden harjoitustyö Grade 5 can be given to plans that describe business that could really be performed Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

Evaluation matrix Notice that a grade 5 can be given to plans that describe business that could really been performed 1: weak, does not follow the instructions 2: some weaknesses 3: only slight weaknesses 4: completed according to the instructions 5: better than the instructions require Outlook Weaknesses in outlook make understanding difficult Many weaknesses in outlook only slight weaknesses in outlook Clear and correct layout The document is like a piece of art Text Writer does not consider the reader viewpoint (company / investors) Writer attempts to give attractive impression only in some parts of the document Writer attempts to give attractive impression in most parts of the document Writer attempts to give attractive impression throughout the document Appealing, written in very good English Theory: 1. Executive summary 2. Business description 3. Competitive analysis 4. Strategy 5. Operational management & Business model 6. Financial components 1. Different aspects of business plan only loosely connected to each others 2. Technical description or business idea missing 3. Not much consideration of the markets or competitors 4. Only loosely describes strategy related to markets, pricing or logistics 5. Business model not clear 6. Calculations missing 1. Some weaknesses in describing the different aspect of business plan or their interconnection 2.Some weaknesses related to technical description or business idea, or their interconnection. 3. Weak analysis or analysis is only weakly used in other parts of the document. 4. Has some weaknesses describing strategy related to markets, pricing or logistics 5. Some parts of business model are unclear 6. Does not cover all calculations 1. Different aspects of business plan are presented and their interconnection is presented 2.Only slight weaknesses related to technical description or business idea, or their interconnection. 3. Either markets or competitors are analyzed. This information is only slightly used in other parts of the document. 4. Loosely describes strategy related to markets, pricing or logistics 5. Attempts to describe the business model 6. Some mistakes in calculations 1. Gives clear picture of the business and makes the reader want to read the rest of the document 2. Business idea well described (what, to whom & how) and connected to the technical description of the product 3. General description and analysis of the markets and most potential competitive products / business ideas. This information is used in other parts of the document. 4. Describes strategy related to markets, pricing and logistics 5. Business model described in detail 6. Calculations presented carefully 1. Gives appealing image of the business 2. Clear and simple description of the business idea and the product 3. Very detailed analysis of markets and competitors. Analysis provide basis for marketing/price strategy 4. Innovative strategy 5. Innovative business model 6. Calculations show that the business is attractive to investors Tuotantotalouden osasto Mirja Väänänen

Haasteita ja hyviä käytäntöjä Parempi arvosana, jos aidosti halu selvittää asia Oma kokemus ja alan tuntemus eduksi Paras arvosana ≠ kannattavin business Kaikki mahdollinen tulee dokumentoida: osoita dokumentilla niin, että mummokin ymmärtää, että case on kannattava Jokainen kivi kannattaa kääntää  kuten yrittäjä tekisi oikeassa elämässä Erityisesti kaikki euromääräiset arvioinnit tarpeen Tuotantotalouden osasto Mirja Väänänen & Pekka Kess

Further information… Materials from earlier courses Timmons & Spinelli (2003) New Venture Creation. Entrepreneurship for the 21st century. McGraw-Hill. Google & YouTube http://www.talousapu.fi/tuloslaskelma-tase-kassavirtalaskelma www.liiketoimintasuunnitelma.com Tuotantotalouden osasto Mirja Väänänen & Pekka Kess