An opportunity domain describes an area of human activity (by an individual or organization) that contains actual or potential solutions that satisfy unmet needs and desires that may not be explicit or obvious. The primary objective in defining an opportunity domain is to provide a framework for exploration activities that will enhance the possibility of discovering new growth opportunities. The ideal opportunity domain will align with an organization's strategic goals and will include areas of interest and relevance to the organization. The primary objective in selecting and defining an opportunity domain is to provide the structure and boundaries for exploration activities that improve the possibility of discovering opportunities for new growth. The discovery process should extend the pertinent knowledge owned by the organization. The opportunities identified through the discovery process are options that the organization may choose to exploit to create value. The point of these future options is to enable, but not obligate, the organization to exercise them.

Defining a Domain

A related term is white space, which is an opportunity domain that is not a current focus of organizational activities. For companies, the white spaces are outside the scope of current business division's activities. To be of interest and value, opportunities in these white spaces must create future options for the company that satisfy the strategic imperative of managing uncertainty.

Domain Boundaries

The domain boundaries are difficult to determine a priori. Also, domains contain sub-domains (areas or regions) which themselves contain other sub-domains. This nested, or some may say fractal, view of domains, with a high level domain consisting of sub, sub-sub, etc. opportunity domains, lends itself to the exploration process and helps direct and organize searching within the domain itself.

The size of a domain relates to the number of good opportunities that can be found within it. In a very real sense, however, a good opportunity domain will never be exhausted. It is in this aspect that a good opportunity domain has a fractal nature - you can always go deeper and see just as many opportunities. At a high level, many good opportunities are visible, but even at more constrained levels, just as many opportunities emerge. Evidence shows that for any new, rich domain being considered, or any sub-area within that domain, an existing or future company will find its core, long-term value and, if it is innovative and successful, will keep finding new opportunities, and developing and commercializing new products, continuously.

As an example, consider the domain of 'Internet TV (IPTV)'. Whatever area within this domain one can think of, say providing personalized ads, one can imagine both a) a company that exists in this area and is constantly creating successful new products and services in the area and b) sub areas (such as localized adds for mobile devices) where other more specialized products (or even companies) can exist. The reason for this fractal nature of opportunities is because of the infinite variety and precision of individual's needs and desires that comes from the infinite possibilities of the human experience. As long as we humans keep behaving as humans, others will keep parsing and partitioning our needs and desires in order to satisfy them, even when we don't know they exist.

An Organized Approach to Identifying a Domain

Domain Sources

Choosing a Domain

• Gut Feel/Epiphanies
• Canvasing/Consensus/Voting
• Analytical
• Existing Corporate Initiatives/Previous Efforts
• Expert Panels/Futuring & Scenario Activities
• Direct Strategic Imperatives

In any of these cases, the following questions are useful to ask.

Inside-Out Questions

• Where are we now? What is our core business?
• What do we know now? What are our competencies?
• Where are adjacencies, ideas close to our current business?
• Where are extensions, areas that expand our current business scope?
• Where are focus ideas, niches within our current business?

Outside-In Questions

• Where is the current action, interest, attention, energy, or excitement?
• Where is the money being spent?

Selecting an opportunity domain is best done by tapping the resources of the organization for ideas, opinions and inputs on what to explore. An organized domain selection process unfolds as illustrated in the following diagram.




[graphic taken from Opportunity Domain Selection]

Domain Solicitation

Solicitation should be an on-going process allowing people to submit ideas at any time. There should be a pool of individuals who are solicited for domain candidates. There should be an active push for solicitations six weeks before the planned exploration cycle starts. While any source for domain candidates is valid, the organization may want to develop a formal domain candidate generation approach. If a formal approach is used:

• Develop a standard form.
• Write a definition and rationale for a good domain (see sample form).
• Develop and publish a submission schedule such as announcing the exploration project six weeks before, and the submission deadline four weeks before the planned exploration cycle will begin.
• Develop guidelines for domain identification.
  • The next step is Domain Expansion and Alignment.
    • Allow for a three-week activity.
    • Conduct one group ideation session during the second week.
    • From the set of submitted candidates:
      • Ensure completeness and clarity.
      • Align or combine the opportunites that are similar or compatible.
      • Create new candidates based on ideation and brainstorming.
      • Develop idea generation prompts that connect to the business strategy.
  • The next step is Domain Selection.
• • Allow for a one week activity.
  • Use a selection tool like the concept auction or the pairwise comparison.

Domain Definition Form

The Overview contains the essence and focus of the domain. It should include a central hypothesis with key transformation(s) and key community(s).

The Boundaries describe what is inside and outside of the domain. Include information on Effects – Constraints, i.e., what are the effects of technology; Needs – Desires, i.e., what is it that people want; Solution – Means, i.e., what are the means of action or implementation. Provide concrete examples by listing types of opportunities that are inside and outside the domain.

Complete the sections under Rationale, starting with the reasons for choosing this domain for exploration?

• What strategic options could opportunities in this domain create? Describe how this domain could create opportunities that are strategically aligned, yet outside current business activities.
• Is the domain large enough? Are there sub-domains with many potential opportunities? Describe the extent of this domain in terms of its coverage either geographically, demographically, socially, culturally, etc.
• What are the essential transformations that can have a significant effect on this domain? Describe what technology effects it will take to have a significant impact in the domain and if the organizaion has the needed knowledge and skills.
• What are the trends, forces, and dynamics that drive this domain and how will they affect it? Why and how will this domain create rich future opportunities. What forces are causing changes that affect this domain?
• Is there a lot of activity or signs of activity in the space? What is the maturity level of this domain? Assess the energy of the domain. How much effort and resources are being expended? What is the level of development? Is this a new domain or a mature one?
• What are the potential tipping points and black swans that can affect this domain’s future? What are the things that could potentially make opportunities in this domain take off or die. (World events, sudden changes in public perception, etc.)

In the Scenarios section, include insights, opinions, comments, ideas on things to explore, to pay attention to, to kick-start the exploration. Describe what could be starting points and idea generators. Describe in non-specific terms how needs and desires are satisfied in the future. Include known information on motivators, market forces, and trends.