Transcript Chapter 4 Creativity and the Business Idea

Chapter 4
Creativity and the Business
Idea
Vishnu Parmar, IBA
University of Sindh, Jamshoro
TRENDS
A Trend provides great opportunities for
starting a new venture
 Seven trends that provide opportunities
are:
1. Green Trend 2. Clean Energy
3. Organic Orientation 4. Economic
5. Social 6. Health
7. Web Trend

TRENDS
1. Green Trend is brimming (full) with
opportunities for entrepreneurs around the
world. People have great awareness about
the scarcity of water. Therefore consumer
support those products which helps to
develop green trend, even they pay more
for the same
SOURCES OF NEW IDEAS
Consumers
 Existing Products and Services
 Distribution Channels
 Federal Government
 Research & Development

METHODS OF GENERATING IDEAS
Focus Groups: Groups of individuals
providing information in a structured
format.
 Brainstorming: A group method for
obtaining new ideas and solutions without
criticize anyone.
 Brain-writing: Writing Brainstorming


Problem Inventory Analysis: A method for
obtaining new ideas and solution by
focusing on problems (Table 4.2)
CREATIVE PROBLEM SOLVING
TECHNIQUES
These are methods for obtaining new ideas
focusing on the parameters
1. Brainstorming: In creative problem solving
brainstorming can generate ideas about a
problem within a limited timeframe through the
spontaneous contribution of participants. A good
brainstorming starts with a problem statement
that is neither too broad nor too narrow. Than
6-12 selective individuals participate. No
member is a recognized member. All ideas must
be recorded. Avoid criticism
CREATIVE PROBLEM SOLVING
TECHNIQUES
Reverse Brainstorming: Here group obtain
new ideas focusing on the negative
Gordon Method: Method for developing new
ideas when the individuals are unaware of
the problem.
Checklist Method: Developing a new idea
through a list of related issues:
CREATIVE PROBLEM SOLVING
TECHNIQUES
Free Association: Developing a new idea
through a chain of word association
Forced Relationship: Developing a new idea
by looking at product combinations. It is
five steps process:
(i) Isolate the elements of the problem
(ii) Find the relationships between these
elements
CREATIVE PROBLEM SOLVING
TECHNIQUES
(iii) Record the Relationships between
these elements
(iv) Analyze the resulting relationships to
find ideas or patterns
(v) Develop new ideas from these patterns
(Table 4.4)
CREATIVE PROBLEM SOLVING
TECHNIQUES
Collective Notebook Method: Developing new idea
by group members regularly recording ideas
Attribute Listing: Developing a new idea by looking
at the positives and negatives
Big-dream Approach: Developing a new idea by
thinking without constraints
Parameter Analysis: Developing a new idea by
focusing on parameter identification and creative
synthesis
INNOVATION
Types of Innovation
1. Breakthrough Innovation
2. Technological Innovation
3. Ordinary Innovation
Classification of New Product
Form a Consumer’s Viewpoint
 Form a Firm’s Viewpoint
 Figure 4.3

– Continuous Innovation Least disrupting
influence on established consumption patterns
(automobiles style changes, fashion style
changes, product size or color changes)
Classification of New Product
– Dynamically Continuous Some disrupting
influence on established consumption patterns
(CDs, iPod, Sony Walkman)
– Discontinuous Innovations : Involves the
establishment of new consumption patterns
and the creation of previously unknown
products. These are rare and require a great
deal of new learning by the consumer
because these products perform either a
previously unfulfilled function or an existing
function in a new way. Example Internet
Figure 4.4 (New Product
Classification System)

The major distinction between new
product and new markets is:
– New Products are defined in terms of the
amount of improved technology, whereas
market development is based on the degree
of new segmentation
Product Planning and Development
Process

The product planning and Development
is divided into five major stages (Figure
4.6)
1.
2.
3.
4.
5.
Idea Stage
Concept Stage
Product Development Stage
Test Marketing Stage
Commercialization Stage (PLC)
Establishing Evaluation Criteria
At each stage of the product Planning and
Development process, criteria for evaluation
need to be established. These criteria should be
all-inclusive and quantitative enough to screen
the product carefully in the particular stage of
development.
 Criteria should be established to evaluate the
new idea in terms of market opportunity,
competition, the marketing system, financial
factors, and production factors.
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