CREATIVITYCreativity is the ability to develop

new ideas and to discover new ways of looking at problems.

Innovation is the ability to apply creative solutions to problems and

opportunities to enrich people’s life.

CREATIVITY

Creativity is THINKING about new things.

Where as

Innovation is DOING new things.

Entrepreneurs succeed by thinking and doing new things or old things in new ways.

Ex: Polaroid instant camera – Edwin Land

Ruff Rider – Carl Goldberg

CREATIVITY

BARRIERS TO CREATIVITY1.Searching for one right answer.Ex: Farmer2.Focusing on being logical.Ex: Sea water3.Blindly following the rules.Ex: Sholes & co – Type Writer4. Fearing mistakes & failure

CREATIVITY

5.Constantly being practical.

Ex: Thomas Edison

6. Becoming overly specialized.

7.Fearing looking foolish.

Ex: Farmer- apple tree

8.I am not creative

9. Avoiding ambiguity

10. Viewing play as frivolous

How to generate Business Ideas?

• Problem solving / situation Analysis Approach. This approach highlight the need which give rise to many Business opportunities.

• Thinking of new product / services not in existence.

• Developing the existing products and services, in terms of design, specializations etc.,

• Selecting products / services which are being manufactured / offered.

Where to look for opportunities.

Where things are changing

- New knowledge

Micro Biology – Biotech Enterprises.

- Technology (change)

- Tele medicine.

- online education.

- online Tuition.

Where to look for opportunities

- Regulatory change.

- Tele communications.

- Retailing

- Airlines

- Insurance

- Finance

Where to look for opportunities

- social turmoil and civic failures

- Education

- Home security systems

- Car alarms.

Where to look for opportunities

- Changing tastes/preferences of customers.

- F M Radio

- Darshini Hotels

- PVR Cinema

• Is there a target market segment in which we offer the customer clear and compelling benefits, at a price he or she is willing to pay?

• Are these benefits, in the customer’s minds, different from and superior in some way –to what’s currently offered by other solutions?

• How large is this segment and how fast is it growing• Entry in to this segment will provide entry in to other

segments in the future?

Opportunity Evaluation

Opportunity Evaluation

• How large is the market?• How quickly can it grow in the next 6 months or 2/3/5

years?• What trends can be identified in the environment and

how will it affect the business?

• Is it difficult for companies to enter this industry?• Do suppliers to this industry have the power to set terms

and conditions?• Do buyers have the power to set terms and conditions?• Is it easy or difficult for substitute products to steal the

market?• Is competitive rivalry intense or moderate?

Opportunity Evaluation

• Do you require proprietary elements - patents, trade secrets so that other firms cannot likely duplicate or imitate?

• Can your business develop and employ superior organizational processes, capabilities or resources that others would have difficulty in duplicating or imitating?

• Is your business model economically viable i.e. can you show that your company won’t run out of cash quickly?

Opportunity Evaluation

• What level of aspirations do you have for your entrepreneurial dream?

• What sorts of risk are you and are you not willing to take?

• What are the Critical Success Factors required in this Industry?

• Does your team have it?• Who do you and your team know across the value-

chain among your customers, suppliers, competitors and substitutes?

Opportunity Evaluation

What is meant by Market & Industry?• A market consists of a group of current and/or potential

customers having the willingness and ability to buy products to satisfy wants or needs

• Thus, markets consist of buyers - people or organizations and their needs - not products

•“ Markets consist of buyers, not products ”

• An industry consists of sellers - typically organizations - that offer products that are similar and close substitutes for one another

“ An Industry consists of sellers ”

Mullins’ 7 Domain Framework

Ideas -Dos and Don’ts

• Having a flow of new ideas is critical to successful entrepreneurship but having a love affair with one idea does not help

• It is always better to detach from emotions while assessing an idea; sacrificing or letting go of an idea will not be a huge problem then

• It is ok to share ideas in a forum. An opportunity is ideally derived from an idea which is executed with a great plan by an excellent team. So most often no one can steal an idea

What defines a good opportunity?An opportunity is characterized by the following:

• There are customers willing and able to purchase your product that either solves their problem or satisfies a need

• A large enough number of customers exist • The industry allows you to start and build - no monopoly,

no supplier domination• An ability to differentiate your offering from your

competitors• A good match with your own and your team's interests,

abilities, and network