5 Chapter Creating and Starting The Venture

What’s New About The New Venture? New Knowledge?- Human Genetic Structure New Technology?- How To Modify It New Products?- New Cancer-Suppressing Drugs New Services?– New Tests For Cancer All Of The Above?- New System For Doing Business

Unexpected Occurrences Industry/Market Change Knowledge-Based Concepts Sources of Innovation Source Examples Unexpected Occurrences Success: Apple Computer Failure: Ford Edsel Incongruities Overnight Package Delivery Process Needs Sugar-Free Products, Caffeine-Free Coffee, Microwave Ovens Industry/Market Change Health Care Industry Changing to Home Health Care Demographic Changes Rest Homes/Retirement Centers for Older People Perception Change Exercise (Aerobics) & Growing Concern for Fitness Knowledge-Based Concepts Video Industry: Robotics

Impediments to Creativity Fear & Anxiety Defensiveness Cultural Inhibition

Organizational Hindrances To Creativity Process Stress On Consequence Of Failure Organizational Instability Excessive Rules, Policies, Relationships, & Procedures Highly Centralized Organizational Structure Little Time Allocated To Thinking & Experimenting

Barriers To Creative Decision-Making Searching for one “right” answer Focusing on “being logical” Blindly following rules Constantly being practical Viewing play as frivolous Searching for one “right” answer Focusing on “being logical” Blindly following rules Constantly being practical Viewing play as frivolous Becoming overly specialized Avoiding ambiguity Fear of looking foolish Fearing mistakes & failure Believing that “I’m not creative”

Sources Of New Ideas Consumers Existing Products/Services Distribution Channels Federal Government Research & Development

Methods of Generating Ideas Focus Groups Brainstorming No Criticism Freewheeling Large Quantity Of Ideas Combinations/Improvements Encouraged Problem Inventory Analysis

Creative Process Preparation Investigation Transformation Incubation Illumination Verification Implementation

Creative Problem Solving Brainstorming Reverse Brainstorming Brainwriting Gordon Method Checklist Method Free Association Forced Relationships Collective Notebook Method Attribute Listing Big-Dream Approach Parameter Analysis

Invention Process Technology Observation Parameter Analysis Creative Synthesis Parameter Identification Realization of Invention Market Need Analysis

Additional Sources of New Ideas Opportunity Recognition Product Planning/Development Establish Evaluation Criteria Idea Stage Concept Stage Product Development Stage Test Marketing Stage

Determining Need Type of Need Price vs. Performance Features Timing of Need Competing Ways to Satisfy Need Perceived Benefits/Risks Price vs. Performance Features Market Size & Potential Availability to Customer Funds

Determining New Product Value Cash Outflow Inflow Net Profit Relative Return Compared To Other Investments

Sources of Extraordinary Profit Monopoly Power Consumer Ignorance Cost Leadership Product Differentiation Innovation Speed To Market

Breakthrough Innovation Technological Innovation Stages of Innovation Breakthrough Innovation Technological Innovation UN I Q U E N E S S Ordinary Innovation NUMBER OF EVENTS

E-Commerce & Startup E-Commerce Creativity Website Tracking Customer Information Entrepreneurial Company

Checklist for Website Design Professional Outlook Credibility Functionality Characteristics Speed Ease of Use Customization International Orientation Browser Compatibility