Chapter 4 Creativity and the Business Idea Vishnu Parmar, IBA University of Sindh, Jamshoro

TRENDS A Trend provides great opportunities for starting a new venture Seven trends that provide opportunities are: 1. Green Trend 2. Clean Energy 3. Organic Orientation 4. Economic 5. Social 6. Health 7. Web Trend

TRENDS 1. Green Trend is brimming (full) with opportunities for entrepreneurs around the world. People have great awareness about the scarcity of water. Therefore consumer support those products which helps to develop green trend, even they pay more for the same

SOURCES OF NEW IDEAS Consumers Existing Products and Services Distribution Channels Federal Government Research & Development

METHODS OF GENERATING IDEAS Focus Groups: Groups of individuals providing information in a structured format. Brainstorming: A group method for obtaining new ideas and solutions without criticize anyone. Brain-writing: Writing Brainstorming

Problem Inventory Analysis: A method for obtaining new ideas and solution by focusing on problems (Table 4.2)

CREATIVE PROBLEM SOLVING TECHNIQUES These are methods for obtaining new ideas focusing on the parameters 1. Brainstorming: In creative problem solving brainstorming can generate ideas about a problem within a limited timeframe through the spontaneous contribution of participants. A good brainstorming starts with a problem statement that is neither too broad nor too narrow. Than 6-12 selective individuals participate. No member is a recognized member. All ideas must be recorded. Avoid criticism

CREATIVE PROBLEM SOLVING TECHNIQUES Reverse Brainstorming: Here group obtain new ideas focusing on the negative Gordon Method: Method for developing new ideas when the individuals are unaware of the problem. Checklist Method: Developing a new idea through a list of related issues:

CREATIVE PROBLEM SOLVING TECHNIQUES Free Association: Developing a new idea through a chain of word association Forced Relationship: Developing a new idea by looking at product combinations. It is five steps process: (i) Isolate the elements of the problem (ii) Find the relationships between these elements

CREATIVE PROBLEM SOLVING TECHNIQUES (iii) Record the Relationships between these elements (iv) Analyze the resulting relationships to find ideas or patterns (v) Develop new ideas from these patterns (Table 4.4)

CREATIVE PROBLEM SOLVING TECHNIQUES Collective Notebook Method: Developing new idea by group members regularly recording ideas Attribute Listing: Developing a new idea by looking at the positives and negatives Big-dream Approach: Developing a new idea by thinking without constraints Parameter Analysis: Developing a new idea by focusing on parameter identification and creative synthesis

INNOVATION Types of Innovation Breakthrough Innovation Technological Innovation Ordinary Innovation

Classification of New Product Form a Consumer’s Viewpoint Form a Firm’s Viewpoint Figure 4.3 Continuous Innovation Least disrupting influence on established consumption patterns (automobiles style changes, fashion style changes, product size or color changes)

Classification of New Product Dynamically Continuous Some disrupting influence on established consumption patterns (CDs, iPod, Sony Walkman) Discontinuous Innovations : Involves the establishment of new consumption patterns and the creation of previously unknown products. These are rare and require a great deal of new learning by the consumer because these products perform either a previously unfulfilled function or an existing function in a new way. Example Internet

Figure 4.4 (New Product Classification System) The major distinction between new product and new markets is: New Products are defined in terms of the amount of improved technology, whereas market development is based on the degree of new segmentation

Product Planning and Development Process The product planning and Development is divided into five major stages (Figure 4.6) Idea Stage Concept Stage Product Development Stage Test Marketing Stage Commercialization Stage (PLC)

Establishing Evaluation Criteria At each stage of the product Planning and Development process, criteria for evaluation need to be established. These criteria should be all-inclusive and quantitative enough to screen the product carefully in the particular stage of development. Criteria should be established to evaluate the new idea in terms of market opportunity, competition, the marketing system, financial factors, and production factors.