vara+creativity and the business idea

8/2/2019 Vara+Creativity and the Business Idea

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IDENTIFICATION OF BUSINESSIDEAS


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Creativity and the

Business Idea

McGraw-Hill/IrwinEntrepreneurship, 7/e Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.


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Creativity & InnovationCreativity is the ability to develop new

ideas and to discover new ways of lookingat problems & opportunities

Innovation is the ability to apply creativesolutions to those problems & opportunities

to enhance or to enrich peoples lives


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CreativityCreativity involves generating something from

nothing

Creative ideas springs up from the mostunexpected places

Edwin Land, one of Americas mostprolific inventors, credits his three year

old daughter with the idea of the Polaroid

instant camera


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Entrepreneurship is the result of adisciplined, systematic process of applyingcreativity & innovation to needs &opportunities in the marketplace

Millions of people come up with creativeideas for new or different products &services; most of them, however, never doanything with them

Entrepreneurs are those who connect theircreative ideas with the purposeful action &structure of a business

Thus successful entrepreneurship is aconstant rocess that relies on creativit ,

3000 new product ideas, 4 make it to

development stage, 2 are actually launched &


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Market ResearchCustomers

Copying & changing

Inspiration, epiphany

Hobby

Personal experience

8

Sources of ideas


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Easy to start by yourselfInexpensive

Understood by people

Quickly generate cash

Scalable

Automated

9

Best ideas are...


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Sources of New Ideas (1 of 2) Consumers

Informal & formal monitoring of potential ideas andneeds- express their opinions.

Idea & need represents a large enough market tosupport new venture .

Existing Companies Potential (Entpr & Intraprnrs) should also

establish a formal method for monitoring &evluating competitive products & services on themarket

Distribution channels Channel members-Excellent source of new ideas

bcoz of their familiarity with the needs of themarket

Help in marketing the newly developed products Exam le: salesclerks su estin entr r chan in


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Sources of New Ideas (2 of 2) Federal government

Files of the Patent Office contain numerous newproduct possibilities. Suggest more marketable product ideas

Official Gazette, published summarize list of patents for

license or sale New product ideas can come in response to

government regulations. (OSHA- eliminating unsafeWCs in industry)

Research and development Largest source of new ideas is the entrepreneursown research and development efforts. May be: A formal endeavor connected with ones current

employment.

An informal lab in a basement or garage.


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Methods of Generating New Ideas

Focus groupsnumber of group members from 6-12Moderator focuses discussion of the group in a

directive or nondirective manner.Co. womens slipper-concept of warm &

comfortable slipper thats fits and old shoe 12women focus group

An excellent method for initially screening ideas andconcepts.

BrainstormingA Group method for obtaining new ideas &

solutions


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Brainstorming Conti.... 4 Rules should be followed

1.No criticism is allowed by anyone in the group

2.Freewheeling is encouraged- wilder the idea

the better3.Quantity of ideas is desired- greater the no. of

ideas the greater the likelihood of theemergence of useful ideas

4.Combinations and improvements of ideas areencouraged- ideas of others can be used toproduce still another new idea

Example: Bank to develop journal for industrial

client

(2 of


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(2 of2)

Problem inventory analysisInstead of generating new ideas themselves

consumers provided with list of problems in generalproduct category

Then asked to identify & discuss products in thiscategory that have particular problem

Can be used to test a new product idea.Effective method since its easier to relate known

products to suggested problems & arrive at a newproduct idea than to generate an entirely new

product idea by itselfResults must be carefully evaluated as they may not

actually reflect a new business opportunity.

Table 5.1 ?

Consumers associates particular problemswith specific products & then develop a new

product that do not contain the identified


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Creative Problem Solving

Creativity: an important attribute of a successfulentrepreneur.

Creativity tends to decline with:

Age, education, lack of use, and bureaucracy.


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rea ve ro em- o v ngTechniques


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Reverse brainstorming

A group method for obtaining new

ideas focusing on the negative. Finding fault by asking questions inhow many possible ways can the

idea flop Maintain group morale Stimulate innovative thinking

Often involves identification ofeverything wrong with an idea-followed by discussion how to

overcome these problems


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Brain writing Form of written brainstorming. It is a silent, written generation of

ideas by a group of people.This sheet can be passed aroundon e-mail as well

Pass the sheet around reach itsowner

The only thing wrong with it is

that there is no excitement of


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Creative Problem-Solving Techniques(2 of 3)

Gordon methodMethod for developing new ideas when the

individuals are unaware of the problem.you dont give away too much detail about

the problemheadline would be i wish there was

something we cuold do about the bad

colors in my TV screen Or Latest trends infashion world

Checklist method

Developing a new idea through a list of related

Prod ct Planning & De elopment


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Product Planning & DevelopmentProcess

Establishing Evaluation Criteria Criteria for evaluation need to be established at

each stage of the product planning and

development process. Criteria should be:

All inclusive and quantitative to screen the productcarefully.

Established to evaluate the new idea in terms of: Market opportunity

Competition

Marketing system

Financial factors

Production factors.


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Market opportunity

Competition

Marketing system

Financial factors

Production factors.

Characteristics & attitudes of consumersthat might buy the product, size & nature ofmarketShare of that market that product could

capture

competing producers, prices, & marketing policies

should be evaluatedProduct should be able to compete successfullywith products already on the market by havingfeatures that will meet or overcome current oranticipated competition

New product should be compatible withexisting management capabilities &

marketing strategiesFirm should be able to use its marketingexperience & other expertise in this newproduct effortExample: GE would have less difficult time

adding a new kitchen appliance to its line thanP&G

product should be able to be supported by &contribute to Co. financial structureBreak even point & Long term profit outlook forproduct need to be determined

if the new product idea cannot be integrated intoexisting manufacturing processes, not only is the new

idea is less positive- but new plan & production cost plant space need to be determined


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Product Planning and DevelopmentProcess

Divided into five major stages:

Idea stage.Concept stage.Product development stage.Test marketing stage.Commercialization.


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The Product Planning andDevelopment Process (1 of 3)


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Idea stage Promising new product/service ideas should

be identified. Impractical ones eliminated.

Evaluation method systematic marketevaluation checklist.

Concept stage Refined idea is tested to determine consumer

acceptance. Consumer acceptance can be measured

through the conversational interviewmethod.


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Product development stage Determines consumer reaction to the physical

product/service. A tool frequently used consumer panel. Consumer preference is determined through:

multiple brand comparisons, risk analysis, level ofrepeat purchases, or intensity of preference analysis.

Test marketing stage

Increases certainty of successfulcommercialization. Provides actual sales results, which indicate the

acceptance level of consumers. Positive test results indicate probability of

successful product launch


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E-commerce and BusinessStart-up E-commerce offers entrepreneurs an

opportunity to be creative and innovative.

Factors that facilitate a high-growth inelectronic commerce: Widespread use of personal computers. Adoption of intranets in companies. Acceptance of the Internet as a business

communications platform. Faster and more secure systems.


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Using E-Commerce Creatively

Entrepreneurs starting an Internetcommerce venture need to address thesame strategic and tactical questions asany other entrepreneur.

Entrepreneurs have to decide to: Run Internet operations within the company,

or Outsource these operations to Internet

specialists.

Another option is to use the packages for-

Internetoperations-

companyprimarybusinessAvailability ofresources web

professional


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Components of InternetCommerce

Two major components of Internetcommerce are: Front-end operations. Back-end operations.

Integration of front-end and back-endoperations represents the greatest challenge for doing

Internet business. provides the opportunity for developing a

sustained competitive advantage.

The biggest mistake of many companieson the internet is believing that anattractive & interactive website will

secure success- leads to underestimating


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Web Sites- connection btw Co & itsCustomers

Keys to a good Web site: Ease of use ( info product /services ) Structure and organization of information Visibility Search capability E-mail response system Speed. Technical aspects

Should work properly in different browsers andplatforms.

Should appear in all marketing materials.

professional

designWeb

designer

Indicator of

legitim

acyShopping cart-creditcard

payments Secure

servershttps

Advertise-search

engines,banner ads,email

Secureservershttps

ki C


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Tracking CustomerInformation

Database: Tracks activity of the:

Industry.

Segment.

Company. Supports personal marketing targeted at

individual clients.

Should be able capture customer attentionwith customized one-to-one marketing.


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Doing E-Commerce as an EntrepreneurialCompany

To do business through the Internet:Products should be delivered economically and

conveniently.

Products need to interest a wide marketCompany must be ready to ship the product outside its

own geographical location.

Online operations have to bring significant costreductions-as compare to brick & mortar

operationCompany must possess the ability to

economically draw customers to its Web site.

Freshfruits &

vegitable

s ?


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Summary

Starting point successful Co.-product/Service they offer

Sources of ideas ranges comments ofconsumers TO changes in Govt regulations

Monitoring comments of Consumers

Evaluating new products offered bycompetitors

Familiar with the ideas contained inpreviously granted patents


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Becoming actively involved in R&D

Specific techs entrepreneur use to generateideas

After idea generation the planning anddeveloping process begins

Large number ideas screened/ evaluated

Potential ideas moved- concept, productdevelopment, test marketing,

commercialization stage

Focus group-Brainstorming-Problem inventory analysis

vara+creativity and the business idea

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