CREATIVITY AND THE BUSINESS IDEA Chapter : 05 CREATIVITY AND THE BUSINESS IDEA

Methods of Generating Ideas

Focus Group  Group of individuals providing information in a structured format  This consists of individuals form different socioeconomic areas  The number of individuals vary from 8 to 14  It is an excellent method for initially screening ideas and concepts

Brainstorming A group for obtaining new ideas and solutions A group for obtaining new ideas and solutions Four rules to be followed are: 1. No criticism is allowed by anyone in the group 2. Freewheeling is encouraged 3. Quantity of ideas is desired 4. Combinations and improvements of ideas are encouraged

Problem Inventory Analysis Method for obtaining new ideas and solutions by focusing on problems Method for obtaining new ideas and solutions by focusing on problems It is used to test a new product idea It is used to test a new product idea Results from product inventory analysis must be carefully evaluated as they may not actually reflect a new business opportunity Results from product inventory analysis must be carefully evaluated as they may not actually reflect a new business opportunity

CREATIVE PROBLEM SOLVING A method fro obtaining new ideas focusing on the parameters A method fro obtaining new ideas focusing on the parameters Creativity is the most important attribute of a successful entrepreneur Creativity is the most important attribute of a successful entrepreneur Creativity tends to decline with the lack of use. Creativity tends to decline with the lack of use.

CREATIVE PROBLEM SOLVING It includes: Brainstorming Brainstorming Reverse brainstorming (A group method for obtaining new ideas by focusing on the negative, criticism is encouraged). Reverse brainstorming (A group method for obtaining new ideas by focusing on the negative, criticism is encouraged). Synectics ( A method for individuals to solve problems through one of four analogy mechanisms: personal, direct, symbolic and fantasy). Synectics ( A method for individuals to solve problems through one of four analogy mechanisms: personal, direct, symbolic and fantasy).

CREATIVE PROBLEM SOLVING It includes: Gordon method (A method for developing new ideas when the individuals are unaware of the problem). Gordon method (A method for developing new ideas when the individuals are unaware of the problem). Checklist method (A method for developing a new idea through a list of related issues). Checklist method (A method for developing a new idea through a list of related issues). Free association method (Developing a new idea through a chain of word associations). Free association method (Developing a new idea through a chain of word associations). Forced relationship (Forced relationships: Developing anew idea by looking at product combinations). Forced relationship (Forced relationships: Developing anew idea by looking at product combinations).

CREATIVE PROBLEM SOLVING Collective notebook method : Developing a new idea by group members regularly recording ideas. Collective notebook method : Developing a new idea by group members regularly recording ideas. Heuristics :Discovery is made through a progression of thoughts, insights, learning. Heuristics :Discovery is made through a progression of thoughts, insights, learning. Scientific method :Involves inquiry and testing. Scientific method :Involves inquiry and testing. Value analysis: Evaluates the worth of aspects of ideas. Value analysis: Evaluates the worth of aspects of ideas. Attribute listing: Looks at positives and negatives. Attribute listing: Looks at positives and negatives. Big dream approach: Dream about the problem and its solution. Big dream approach: Dream about the problem and its solution.

PRODUCT PLANNING AND DEVELOPMENT PROCESS

Product Planning and Development Idea stage: Idea is generated. Concept stage: May include laboratory development. Product development stage: Begin with a pilot production run. Test marketing stage: Get actual sales results with a semi-commercial planned trial.

Establishing evaluation criteria  Criteria should be developed to evaluate new product in term of: 1. Market opportunity 2. Competition in marketing system 3. Financial factors 4. Production factors

Determining the need of a new product idea Type of need: Continuing need Continuing need Declining need Declining need Emerging need Emerging need Future need Future need

Determining the need of a new product idea Timing of need: Duration of need Duration of need Frequency of need Frequency of need Demand cycle Demand cycle Position in life cycle Position in life cycle

Determining the need of a new product idea Competing ways to satisfy need Doing without Doing without Using present way Using present way Modifying present way Modifying present way

Determining the need of a new product idea Perceived benefits/risks Utility to customer Utility to customer Appeal characteristics Appeal characteristics Customer tastes and preferences Customer tastes and preferences Buying motives Buying motives Consumption habits Consumption habits

Determining the need of a new product idea Price versus performance features Price quantity relationship Price quantity relationship Demand elasticity Demand elasticity Stability of price Stability of price Stability of market Stability of market

Determining the need of a new product idea Market size and potential Market growth Market growth Market trends Market trends Market development requirements Market development requirements Threats to market Threats to market

Determining the need of a new product idea Availability to customer funds General economic condition General economic condition Economic trends Economic trends Customer income Customer income Financing opportunities Financing opportunities