Chapter-4 Developing business ideas and your creativity

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

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

Idea generation methods Individual methods: relaxation, image working, mind maps, NLP, emotional intelligence, associations and analogues Group methods: brainstorming, 6-3-5 technique, Six thinking hats, Idea walk, “Tuplatiimi”, “Tuumatalkoot”

Opportunity recognition An idea is not an opportunity 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

Sales Market Window of opportunity Time

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

A MISSION STATEMENT – EXAMPLES Nokia Connecting people 3M Innovative solutions to unsolved problems Walt Disney Making people happy HP Make technological solutions to promote the well-being of mankind

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

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

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

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

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

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

Types of entrepreneurship High Inventor-Entrepreneur Entrepreneurial Manager Creativity and Innovation Promoter Manager Administrator Low Management Skills and Business High Know-how

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

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)

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

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

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.