week 2 entrepreneurship creativity & innovation

8/7/2019 Week 2 Entrepreneurship Creativity & Innovation

1/44

Entrepreneurship

&New Venture

CREATIVITY


2/44

Remember Entrepreneurs Are:Remember Entrepreneurs Are:

InnovativeInnovative

CreativeCreative

ExcellenceExcellence

EgosEgos


3/44

The Entrepreneurial VisionThe Entrepreneurial Vision

InnovationInnovation not imitationnot imitation

Propensity to ActionPropensity to ActionMarketing honestyMarketing honesty

Drive for dominanceDrive for dominance

Vision beyond the mundaneVision beyond the mundane


4/44

Finding ideas for newFinding ideas for newventuresventures


5/44

Viable Products/ServicesViable Products/Services Need more than just good science orNeed more than just good science or

technologytechnology

Need an understanding of marketNeed an understanding of marketneeds, fears, and wants even at theneeds, fears, and wants even at theearly stages of developmentearly stages of development

Require an understanding of theRequire an understanding of thecompetitivecompetitive londscapelondscape and the externaland the external

environments in each market.environments in each market.


6/44

FOUR FACTORSFOUR FACTORS

Buyer UtilityBuyer Utility

Strategic PricingStrategic Pricing Business ModelBusiness Model

Adoption HurdlesAdoption Hurdles


7/44

BUYER UTILITYBUYER UTILITYIs there a compelling reason forIs there a compelling reason for

customers to buy a new product orcustomers to buy a new product orservice? Utility and technical advanceservice? Utility and technical advance

are not the same.are not the same.


8/44

BUSINESS MODELBUSINESS MODEL

How can a company profitably deliver theHow can a company profitably deliver thenew product, or service idea?new product, or service idea?

Are costs, capabilities and pricingAre costs, capabilities and pricingappropriate to the task?appropriate to the task?


9/44

STRATEGIC PRICINGSTRATEGIC PRICING

How can a company price its newHow can a company price its new

product or service to attract theproduct or service to attract themass buyers?mass buyers?


10/44

ADOPTION HURDLESADOPTION HURDLES

Are there reasons why an idea mayAre there reasons why an idea maynot be accepted by customers,not be accepted by customers,employees, strategic partners,employees, strategic partners,

regulatory agencies, insurance firms,regulatory agencies, insurance firms,or society?or society?


11/44

EXAMPLES:EXAMPLES:

Engineering marvelEngineering marvel

Diverse functionsDiverse functions Theoretically could do almostTheoretically could do almost

anythinganything

Reality it could do very littleReality it could do very little Customers did not know how to useCustomers did not know how to use

Lacked attractive software titlesLacked attractive software titles


12/44

BUYER UTILITY LEVERSBUYER UTILITY LEVERS

Customer productivityCustomer productivity

SimplicitySimplicity ConvenienceConvenience

Risk mitigationRisk mitigation

Fun and ImageFun and Image Environmental friendlinessEnvironmental friendliness


13/44

Customer productivityCustomer productivity

What is the biggest block toWhat is the biggest block to

customers productivity?customers productivity? How does your product or serviceHow does your product or service

eliminate it?eliminate it?


14/44

Customer productivityCustomer productivityHoovers leap in suction powerHoovers leap in suction powermade vacuum cleaning quickermade vacuum cleaning quicker

and easier.and easier.


15/44

SimplicitySimplicity

What is the greatest source ofWhat is the greatest source of

complexity for customers?complexity for customers? How does this innovative product orHow does this innovative product or

service dramatically simplify this?service dramatically simplify this?


16/44

SimplicitySimplicity

Intuits Quicken software eliminatedIntuits Quicken software eliminatedaccounting jargon from personalaccounting jargon from personal

financial accounting.financial accounting.


17/44

ConvenienceConvenience

What is the greatest inconvenienceWhat is the greatest inconvenience

for customers or customer groups?for customers or customer groups? How does the innovative product orHow does the innovative product or

service remove the hassle?service remove the hassle?


18/44

ConvenienceConvenience

Virgin Atlantic Airlines businessVirgin Atlantic Airlines businessclass doorclass door--toto--door limousine servicedoor limousine servicehelped ease the hassle of air travelhelped ease the hassle of air travel

for the most frequent and highestfor the most frequent and highestpaying travelers.paying travelers.


19/44

Risk MitigationRisk Mitigation

What are the greatest uncertaintiesWhat are the greatest uncertainties

buyers face?buyers face? How does this innovative product orHow does this innovative product or

service eliminate these risks?service eliminate these risks?

What new risks does this product orWhat new risks does this product orservice create?service create?


20/44

Risk MitigationRisk MitigationEnrons commodity swaps andEnrons commodity swaps andfutures contracts stripped thefutures contracts stripped the

volatility out of gas and electricvolatility out of gas and electricprices before they got caught up inprices before they got caught up in

their financial troubles.their financial troubles.


21/44

Fun and ImageFun and Image

What are the biggest blocks toWhat are the biggest blocks to

enjoyment and image?enjoyment and image? How does this innovative product orHow does this innovative product or

service add positive emotion orservice add positive emotion orstatus to the life of the user?status to the life of the user?


22/44

Fun and ImageFun and Image

Starbucks chic coffee bars are muchStarbucks chic coffee bars are muchmore than a place to buy a hot drink.more than a place to buy a hot drink.


23/44

Environmental friendlinessEnvironmental friendliness

What causes the greatest harm toWhat causes the greatest harm to

the environment?the environment? How does the innovative product orHow does the innovative product or

service reduce or eliminate this?service reduce or eliminate this?


24/44

EnvironmentalEnvironmental

friendlinessfriendlinessPhillips Alto light bulb uses lessPhillips Alto light bulb uses less

mercury than earlier designs whichmercury than earlier designs whichmeans eliminating the costs tomeans eliminating the costs to

businesses of special dumping sites inbusinesses of special dumping sites inEurope.Europe.


25/44


26/44

TWELVE STAGES INTWELVE STAGES INTHE CREATIVETHE CREATIVE

PROBLEMPROBLEM--SOVLINGSOVLING

PROCESS.PROCESS.


27/44

KEYS TO PROBLEMKEYS TO PROBLEMSOLVINGSOLVING

Different tasks call for variations in theDifferent tasks call for variations in the

phases,phases,The 12 steps comprise the complete cycle,The 12 steps comprise the complete cycle,You may bypass some phases or recycle.You may bypass some phases or recycle.


28/44


29/44

DEFINING THE ISSUEDEFINING THE ISSUE

Go beyond mere symptoms to theGo beyond mere symptoms to the

corecore NeedNeed

Want, orWant, or

Fear.Fear. Isolate what youre looking for orIsolate what youre looking for or

focus.focus.

FOCUS, FOCUS, AND FOCUSFOCUS, FOCUS, AND FOCUS


30/44


31/44

DATADATA--GATHERINGGATHERINGEXPERTISEEXPERTISE

Chance favors the expert.Chance favors the expert.PasteurPasteur

Find pertinent facts.Find pertinent facts.

Look at the source of the data. DontLook at the source of the data. Dontexpect certainty.expect certainty.


32/44

ANALYZED

ATAANALYZED

ATA

Use wellUse well--established logical models,established logical models, Blend with intuitive techniques.Blend with intuitive techniques.

Dont forget your professionalDont forget your professional

training, nor be imprisoned by it.training, nor be imprisoned by it.


33/44

GENERATE NEW IDEASGENERATE NEW IDEAS

Unbundle your assumptions aboutUnbundle your assumptions about

how things ought to be.how things ought to be. Through brainstorming or otherThrough brainstorming or other

methods, produce a large quantitymethods, produce a large quantity

ofof possible solutions.possible solutions.


34/44

INCUBATIONINCUBATION

Dont just do something;Dont just do something;

stand there for a while.stand there for a while.

Allow ideas time to hatch or ferment.Allow ideas time to hatch or ferment.

But, dont stand forever waitingBut, dont stand forever waitingeither.either.


35/44

SYNTHESIS =AH HA!=SYNTHESIS =AH HA!=ENLIGHTENMENTENLIGHTENMENT

In other words: The EurekaIn other words: The Eurekaevent.event.


36/44

SELECTING orSELECTING or

DECIDINGDECIDING

Which idea will youWhich idea will you

implement?implement?


37/44

SIMU

LATIO

N &SIMU

LATIO

N &VERIFICATIONVERIFICATIONWhat are the risks?What are the risks?

In a low risk situation, you might skipIn a low risk situation, you might skipthis step.this step.

When building a passenger aircraft,When building a passenger aircraft,

new drug, or life impacting idea younew drug, or life impacting idea youdare not skip.dare not skip.


38/44

ORGANIZATIONALORGANIZATIONALACCEPTANCEACCEPTANCE

People support what they help create.People support what they help create.Involve people early on.Involve people early on.

Great ideas will die without the support ofGreat ideas will die without the support ofkey decisionkey decision--makers.makers.


39/44

IMPLEMENTATION &IMPLEMENTATION &

EVALUATIONEVALUATIONTake action on the chosen idea, henceTake action on the chosen idea, hence

the meaning of the term Entrepreneur,the meaning of the term Entrepreneur,to enter and to do.to enter and to do.

Determine the effects. What are theDetermine the effects. What are thepotential outcomes: profits,potential outcomes: profits,

sustainability acceptance, etc.sustainability acceptance, etc.


40/44

APPLY CREATIVE DECISIONAPPLY CREATIVE DECISIONMAKING TO THEMAKING TO THE

DEVELOPMENT OF YOURDEVELOPMENT OF YOUR

BUSINESS CONCEPT.BUSINESS CONCEPT.


41/44

Think of these issues whenThink of these issues when

you read the courseyou read the course

material, when we discussmaterial, when we discuss

issues in class, etc..issues in class, etc..


42/44

ELEVATOR PITCHESELEVATOR PITCHES

Can you explain your idea in 3Can you explain your idea in 3minutes?minutes?

Is your idea a solution looking for aIs your idea a solution looking for aproblem?problem?

Are you creating bigger problemsAre you creating bigger problems

than you are solving?than you are solving?Why should others be interested inWhy should others be interested in

your idea?your idea?


43/44

How to keep the ideas coming..How to keep the ideas coming..

Put a technology to other usesPut a technology to other uses

Modify, adaptModify, adapt Magnify (bigger, stronger, higher)Magnify (bigger, stronger, higher)

Substitute (what else instead, whoSubstitute (what else instead, who

else instead)else instead) Rearrange, reverse or combineRearrange, reverse or combine

Source: The Complete Idiots Guide to New Product Development


44/44

QUESTIONS?QUESTIONS?

week 2 entrepreneurship creativity & innovation

Documents