1 Developing business ideas and your creativity

2 Business Mission Project Process: 1. Idea generation 2. Business Concept Development 3. Business Mission Presentations 4. Business Plan (2nd semester) 5. Business Plan Fair Event

3 Sources of business ideas n Market niche, company acquisition, family company, franchising, innovation, hobby, subcontracting, systematic search, privatisation of public services, nature tourism, idea from abroad, professional knowledge, education

4 Idea generation methods Individual methods: relaxation, image working, mind maps, NLP, emotional intelligence, associations and analogues Group methods: brainstorming, technique, Six thinking hats, Idea walk, “Tuplatiimi”, “Tuumatalkoot”

5 Opportunity recognition n An idea is not an opportunity n opportunity = attractive, durable, timely –anchored in a product/service which creates or add value for its buyer and or end user –most successful entrepreneurs are opportunity-focused –they start with the customers and do not lose sight of this

6 Window of opportunity Market Time Sales

7 From opportunity to a business mission n Diverse use of concepts n Corporate mission –answers the question why a company exists n Mission statement, business mission –a broadly defined, enduring statement of purpose that distinguishes a business from others of its type

8 A MISSION STATEMENT – EXAMPLES NokiaConnecting people 3MInnovative solutions to unsolved problems Walt DisneyMaking people happy HPMake technological solutions to promote the well-being of mankind

9 NikeExperience strongly about contest, winning and beating the competitors K-GroupK-Group is providing goods and services to its customers efficiently and economicly. Its footholds lie on entrepreneurship and wholesales.

10 From opportunity to a business mission n Business Mission Models –Scandinavian Model n customer/benefit, target image, product/service, operation mode –Ashridge Mission Model n purpose, strategy, company values, standards and behaviours

11 Business mission in a small company More innovative More efficient More socially effective More entrepreneurial than large firms

12 But many fail to realize their potential because of Wrong strategies Lack of human, technical and financial resources Poor market coupling Lack of focus Lack of management skills

13 Concepts related to new business creation Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. Innovation is the ability to apply creative solutions to those problems and opportunities to enrich people’s lives. Invention is a new solution stated in the law e.g. patents, trademarks or utility models

14 Concepts Entrepreneurship is the result of a disciplined, systematic process of applying creativity and innovation to needs and opportunities in the market place Innovation leverage is transferring better practices and solutions in the business environment

15 Types of entrepreneurship Inventor- Entrepreneur Entrepreneurial Manager PromoterManager Administrator Creativity and Innovation LowManagement Skills and Business High Know-how High

16 E R O Venture Potential = E x O x R E= Quality and relevant experience O=Attractiveness and durability of opportunity R=Commitment of requisite resources The Entrepreneur’s Cube

17 The three components of creativity 1. Expertise (knowledge - technical, procedural, and intellectual) 2. Creative-thinking skills (How do you approach problems?) 3. Motivation (intrinsic motivation more effective)

18 Paradigms rule the world Traditional assumptions and perspectives kill creativity A paradigm is a preconceived idea of what the world is, what is should be like and how it should operate

19 Barriers to creativity - searching for the one “right” answer - focusing on being “logical” - blindly following the rules and routines - constantly being practical - viewing play as frivolous - becoming overly specialised - avoiding ambiguity

20 Barriers to creativity - fearing looking foolish - fearing mistakes and failure - believing that “I’m not creative” The key to spurring the imagination is to learn to think fluidly and flexibly.