Creativity and The Business Idea

Ideas from Trend AnalysisTrend Analysis

Seven trends that provides opportunities in the current scenarios are:• Green• Clean Energy• Organic orientation• Economic• Social• Health• WebSources of New Ideas• Consumers• Existing Products and Services

• Distribution channel• Governments• R&D

Methods of Generating Ideas• Focus Groups – Groups of indivoiduals providoing information in

a structured manner• Brainstorming – A group method for obtaining new ideas and

solutions• Brainwriting (Method 635) – It is a silent, written generation of

ideas by a group of people (usually 6 in nos,) on special forms or cards that circulate within a group. Each group generates 3 ideas during a 5 minute period. The forms are passed to all members

Problem Inventory AnalysisProblem Inventory Analysis - A method for obtaining new ideas

and solutions by focusing on problems.Creative Problem Solving – This is a method for obtaining new

ideas on the parameters., especially because creativity tends to decline with age, education, lack of use and bureaucracy,

Brain storming – Focus on problem.Reverse Brainstorming – A group method for obtaining new ideas

focusing on the negative.Brainwriting – This aims at increasing the speed of generating ideas

in a brainstorming session. It has very strict rules about thye number of people, ideas and the time taken for generating ideas – normally 6 members per group, each of whom would be generating 3 ideas each in 5 mts- 108 ideas in 30 mts. Alao known as 6-3-5 method.

Problem Inventory AnalysisGordon Method – Method for developing new ideas in a group,

when the individuals are unaware of the problem. Not clouded by pre conceived ideas and behavioral patterns.

Checklist Method – Developing a new idea through a list of related issues – put to other uses, adapt, modify, magnify, minify, substitute, rearrange, reverse, combine.

Free Association – Developing a new idea through a chain of word association about the problem.

Forced Relationships – Developing a new idea by looking at product combinations.

Collective Notebook Methods – Developing a new idea by group members regularly recording ideas.

Problem Inventory Analysis

Attribute Listing- Developing a new idea by looking at the positives and negatives – a problem

Big Dream Approach – Developing a new idea by thinking / dreaming without constraints.

Parameter Analysis – Developing a new idea by focusing on parameter / boundary identification and creative synthesis.

DELPHI Technique – RAND Corporation – convergence of intuitive ideas from several experts who are contacted independently with a brief description of the problem. If there is no convergence, the ideas are fed back to the experts without revealing who said what and fresh ideas are solicited

Scenario Analysis – Different future scenarios relevant to ones’s business - What if analysis.

Problem Inventory AnalysisCause Effect Analysis Value Analysis/ Value Engineering (GEC) – used primarily for

improving an existing product, program or service.

Morphological Analysis (analysis of the form) – Multi dimensional, non quantified and complex problem and is used for new product development. Thios involves identification of essential features/dimensions of a product and working out the variations and converting these variations into a workable model.

Types of Innovation• Breakthrough• Technological• Incremental

Classification of New Products

From the Consumer’s Viewpoint – One attempt to classify new products, classifies the degree of newness according to how much behavioral change or new learning is required by the consumer to use the product. Another view is the extent to which value which is added to the consumer’s life.

Continuum to classify New Products

Continuous InnovationDynamically Continuous Innovation

Dis continuous Innovation

Least disrupting existing consumption pattern

Some disturbing influence on established consumption pattern

Involves the establishment of new consumption patterns and the creation of previously unknown products

Classification of New ProductsFrom the firm’s viewpoint

Technology NewnessProduct Newness

Product

Market Changes

No Tech. change Improved Tech New Tech

No market change Reformation of Replacement product to optimize

cost

Strengthened mkt. Re-merchandising Improved product Product life extension

New market New users Market extension Diversification

New Product Classification System

Entrepreneurial InnovationOPPORTUNITY RECOGNITION• Entrepreneurs need the ability to recognize a business

opportunity. This is fundamental to the entrepreneurial process as well as growing business.

• A business opportunity represents a possibility for the entrepreneur to successfully fill a large enough unsatisfied need that results in enough sales and profits.

Education

Experience

Work experience

Personal experienceNetworks/Personal/

System

Entrepreneurial alertness

Prior knowledge of markets and

Customer Problems Outcome: Successful Opportunity recognition

Product Planning and Development ProcessProduct Life Cycle- The stages each product goes through from

introduction to decline

E

Idea Concept Product Develop

Test Mkt

Intro. Growth Maturity Decline

Idea

Eval.

Labd

Eval

Pilot

Eval

SemiCom

Eval

Lab Development

Semi Comml.

Pilot Prodn run

Establishing Evaluation CriteriaProduct Planning and Development Process - The stages in

developing a new product.• Idea Stage• Concept stage• Product Development stage• Test market stageE-Commerce and Business Start Up• Factors that facilitated the high growth of commerce on a B to C

or B to B basis include widespread use of personal computers, the adoption of intranets in computers, the acceptance of the Internet as a business communication platform, and faster and more secure systems. Numerous benefits – such as access to a broader customer base, lower information dissemination costs, lower transaction costs and the interactive nature of the Internet.