the Business Idea McGrawHillIrwin Copyright 2013 by The McGrawHill Companies Inc All rights reserved Learning Objectives To identify various sources of ideas for new ventures To discuss methods available for generating new venture ideas ID: 782058
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Slide1
Chapter 4
Creativity andthe Business Idea
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved
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Slide2Learning Objectives
To identify various sources of ideas for new venturesTo discuss methods available for generating new venture ideasTo discuss creativity and the techniques for creative problem solvingTo discuss the importance of innovation
Slide3Learning Objectives
To understand an opportunity assessment planTo discuss the aspects of the product planning and development processTo discuss aspects of e-commerce and starting an e-commerce business
Slide4Table 4.1 - Trends of the Next Decade
Slide5Sources of New Ideas
ConsumersEntrepreneurs should: Formally or informally monitor potential ideasEnsure that the idea represents a large enough market to support a new venture
Existing products and servicesFormally monitor and evaluate competitive products and services on the market
Slide6Sources of New Ideas
Distribution channelsHelp suggest and market new productsFederal governmentTaking cue from pending patents Ideas evolve in response to government regulations
Research and developmentFormal endeavor connected with one’s current employment
Slide7Methods of Generating New Ideas
Focus groupsOpen in-depth discussion led by a moderatorBrainstormingGroup method for obtaining new ideas and solutionsRules of brainstorming
No criticismFreewheeling is encouraged
Slide8Methods of Generating New Ideas
Quantity of ideas is desiredCombinations and improvements of ideas are encouragedBrain writingForm of written brainstormingProblem inventory analysis
Obtaining new ideas and solutions by focusing on problemsUsed to test a new product idea
Slide9Creative Problem Solving
Method for obtaining new ideas focusing on the given parametersCan be stifled by perceptual, cultural, emotional, and organizational factors
Slide10Table 4.3- Creative Problem-Solving Techniques
Slide11Creative Problem Solving
BrainstormingReverse brainstormingGroup method for obtaining new ideas by focusing on the negative aspects
Care must be taken to maintain group moraleGordon methodDeveloping new ideas when the individuals are unaware of the problem
Slide12Creative Problem Solving
Ensures that solutions are not clouded by preconceived ideas and behavioral patternsChecklist methodDeveloping a new idea through a list of related issuesFree association
Developing a new idea through a chain of word associations
Slide13Creative Problem Solving
Forced relationshipsDeveloping a new idea by looking at product combinationsFocused on generating ideas from relationship patterns between elements of a problemCollective notebook method
Developing a new idea by group members regularly recording ideas
Slide14Creative Problem Solving
Attribute listingDeveloping a new idea by looking at the positives and negativesBig-dream approachDeveloping a new idea by thinking without constraints
Parameter analysisDeveloping a new idea by focusing on parameter identification and creative synthesis
Slide15Figure 4.1 - Illustration of Parameter Analysis
Slide16Innovation
Types of innovationBreakthroughExtremely unique innovations that establish the platform on which future innovations can be developedShould be protected by patents, trademarks, and copyrights
TechnologicalAdvancements in the product/market areaNeeds to be protected
Slide17Innovation
OrdinaryExtend technological innovation into a better product or service or one that has a different market appealResult of market analysis and pull and not technological push
Slide18Innovation
Defining a new innovation (product or service)Newness of a product can be attributed to:Consumer concept Change in the package or containerModifications in the appearance of the product (industrial market)
Slide19Innovation
Classification of new productsConsumer’s viewpointDetermines newness in terms of its effectDegree of newness depends on:Level of behavioral change or new learning required by the consumer
Slide20Figure 4.3 - Continuum for Classifying New Products
Slide21Innovation
Firm’s viewpointAn innovative entrepreneurial firm should:Make a distinction between new products and new marketsNew products - Defined in terms of amount of improved technologyMarket development - Based on the degree of segmentation
Slide22Figure 4.4 - New Product Classification System
Slide23Figure 4.5 - A Model of the
Opportunity Recognition Process
Slide24Product Planning and Development Process
Product life-cycle: Stages each product goes through from introduction to declineProduct planning and development process: Stages in developing a new product
Slide25Product Planning and Development Process
Evaluation criteriaMarket opportunityCompetitionMarketing systemFinancial factors
Production factors
Slide26Figure 4.6 - The Product Planning and Development Process
Slide27E-commerce and Business Start-up
Offers entrepreneurs an opportunity to be creative and innovativeFactors that facilitate growthWidespread use of personal computersAdoption of intranets in companies Acceptance of the Internet as a business communications platform
Faster and more secure systems
Slide28E-commerce and Business Start-up
Using E-commerce creativelyAn entrepreneur has to decide whether he or she will run the Internet operations:Within the company or outsource these operations to Internet specialistsIntegrate front-end and back-end operations
Integrate customer orders, with distribution channels and manufacturing capabilitiesAllow flexibility for specific customer orders
Slide29E-commerce and Business Start-up
Web sitesImportant features include:Ease of useSearch capabilityE-mail response system
SpeedCompatibility with different browsers and platforms
Slide30E-commerce and Business Start-up
Tracking customer informationProvides personalized one-to-one marketingLaws protecting the privacy of individuals should be followed
Slide31E-commerce and Business Start-up
Doing E-Commerce as an entrepreneurial company Essential criteriaEconomic and convenient delivery of productsProducts 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