creativity, Innovation & the Business Opportunity

8/12/2019 creativity, Innovation & the Business Opportunity

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MODULE

4Creativity, Innovation

&

The Business

Opportunity

McGraw-Hill/Irwin Copyri ght 2013 by The McGraw-H il l Companies, In c. All ri ghts reserved.


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Learning Objectives

To identify various sources of ideas for new

ventures

To discuss methods available for generating

new venture ideas

To discuss creativity and the techniques for

creative problem solving

To discuss the importance of innovation


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4-3

Learning Objectives

To understand an opportunity assessment

plan

To discuss the aspects of the product planning

and development process

To discuss aspects of e-commerce and starting

an e-commerce business


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Table 4.1 - Trends of the Next Decade


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Sources of New Ideas

Consumers

Entrepreneurs should:

Formally or informally monitor potential ideas

Ensure that the idea represents a large enough market

to support a new venture

Existing products and services

Formally monitor and evaluate competitiveproducts and services on the market


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Sources of New Ideas

Distribution channels

Help suggest and market new products

Federal government

Taking cue from pending patents

Ideas evolve in response to government

regulations

Research and development

Formal endeavor connected with ones current

employment


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Methods of Generating New Ideas

Focus groups

Open in-depth discussion led by a moderator

Brainstorming

Group method for obtaining new ideas and

solutions

Rules of brainstorming

No criticism

Freewheeling is encouraged


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Methods of Generating New Ideas

Quantity of ideas is desired

Combinations and improvements of ideas are

encouraged

Brain writing Form of written brainstorming

Problem inventory analysis

Obtaining new ideas and solutions by focusing onproblems

Used to test a new product idea


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Creative Problem Solving

Method for obtaining new ideas focusing on

the given parameters

Can be stifled by perceptual, cultural,

emotional, and organizational factors


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Table 4.3- Creative Problem-Solving

Techniques


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Ensures that solutions are not clouded by

preconceived ideas and behavioral patterns

Checklist method

Developing a new idea through a list of related

issues

Free association

Developing a new idea through a chain of wordassociations


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Forced relationships

Developing a new idea by looking at product

combinations

Focused on generating ideas from relationship

patterns between elements of a problem

Collective notebook method

Developing a new idea by group membersregularly recording ideas


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Figure 4.1 - Illustration of Parameter

Analysis


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Innovation

Types of innovation

Breakthrough

Extremely unique innovations that establish the

platform on which future innovations can be developed

Should be protected by patents, trademarks, and

copyrights

Technological

Advancements in the product/market area

Needs to be protected


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Innovation

Ordinary

Extend technological innovation into a better product

or service or one that has a different market appeal

Result of market analysis and pull and not technologicalpush


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Innovation

Defining a new innovation (product or service)

Newness of a product can be attributed to:

Consumer concept

Change in the package or container

Modifications in the appearance of the product

(industrial market)


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Innovation

Classification of new products

Consumers viewpoint

Determines newness in terms of its effect

Degree of newness depends on:

Level of behavioral change or new learning required by the

consumer


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Figure 4.3 - Continuum for Classifying

New Products


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Innovation

Firms viewpoint

An innovative entrepreneurial firm should:

Make a distinction between new products and new markets

New products - Defined in terms of amount of improved

technology

Market development - Based on the degree of

segmentation


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Figure 4.4 - New Product Classification

System


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Figure 4.5 - A Model of the

Opportunity Recognition Process


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Product Planning and Development

Process

Evaluation criteria

Market opportunity

Competition

Marketing system

Financial factors

Production factors


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Figure 4.6 - The Product Planning and

Development Process


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E-commerce and Business Start-up

Offers entrepreneurs an opportunity to be

creative and innovative

Factors that facilitate growth

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

An entrepreneur has to decide whether he or she

will run the Internet operations:

Within the company or outsource these operations toInternet specialists

Integrate front-end and back-end operations

Integrate customer orders, with distributionchannels and manufacturing capabilities

Allow flexibility for specific customer orders


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Web sites

Important features include:

Ease of use

Search capability

E-mail response system

Speed

Compatibility with different browsers and platforms


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Tracking customer information

Provides personalized one-to-one marketing

Laws protecting the privacy of individuals should

be followed


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Doing E-Commerce as an entrepreneurial

company

Essential criteria

Economic and convenient delivery of products

Products should cater to a wide market

Feasibility of shipping outside own geographical

location

Significant cost reductions

Ability to economically draw customers to its Web site


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END OF MODULE 4

creativity, Innovation & the Business Opportunity

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