2.2 The VIDE Model: Beyond the Idea

A good idea alone doesn’t guarantee success. According to Wharton’s VIDE model, a venture’s Value (V) depends on three factors: the Idea (I), what the team does with the idea (D), and Exogenous factors (E) beyond your control. In other words, a great idea is only part of the story – you also need the right skills, resources and execution plan, and you can’t ignore the outside world (economy, competition, trends, even disasters). For example, an innovative product may fail if you lack the engineering talent (low D) or if a new regulation bans it (bad E). Entrepreneurs should therefore assess ideas on all fronts: Is this idea really valuable? Can we implement it? Is there demand? What external forces might help or hurt? This balanced view prevents jumping on “fantasy” ideas. In practice, use VIDE as a checklist when evaluating any opportunity.