1. Chapter 4 Creativity and the Business Idea
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Entrepreneur’s Adage #12
“Don’t follow the trend. Create the trend.”
- Jordan

3. Trends
The start of a trend that lasts for a considerable period of time provides one of the greatest opportunities for starting a new venture.
Trends that will provide opportunities include:
Green Trend
Clean-energy Trend
Organic / Local / Sustainable Trend
Economic Trend (focus on frugality)
Social Media Trend
Health & Wellness Trend
Mobile / Web trend
Others?

4. Sources of New Ideas
Personal experiences, problems, challenges and yearnings
Failed Projects or Businesses
Consumers
Formal and informal information channels
Existing Products and Services
Analysis uncovers ways to improve offerings that may result in a new product or service.
Distribution Channels
Channel members can help suggest and market new products.

5. Sources of New Ideas (cont.)
Federal Government
Patent Office files
New product ideas generated in response to government regulations.
Research and Development
Formal R&D
Informal R&D

6. Methods of Generating New Ideas
Focus Groups
A moderator leads a group of 8 to 14 participants through an open, in-depth discussion in a directive or nondirective manner.
An excellent method for generating and screening ideas and concepts.
Can be useful for creating ad campaigns and copy

7. Methods of Generating New Ideas (cont.)
Brainstorming
Allows people to express and amplify their creativity.
Be somewhat specific
Good ideas emerge when the brainstorming effort focuses on a specific product or market area.
Rules of brainstorming:
No criticism.
Freewheeling is encouraged.
Quantity of ideas is desired.
Combinations and improvements of ideas are encouraged.
Assign someone to take notes and write down everything

8. Methods of Generating New Ideas (cont.)
Reverse Brainstorming
A group method that focuses on the negative aspects of ideas and ways to overcome these problems.
Care must be taken to maintain group morale and avoid offending participants.

9. Entrepreneur’s Adage #13
“Don’t follow the trend. Create the trend.”
- Jordan

10. Methods of Generating New Ideas (cont.)
Gordon Method
Method for developing new ideas when the individuals are unaware of the problem.
Solutions are not clouded by preconceived ideas and behavioral patterns.
Layered presentation of the solution
Free Association
Developing a new idea through a chain of word associations.

11. Methods of Generating New Ideas (cont.)
Collective Notebook Method
Developing a new idea by group members regularly recording ideas.
Big-Dream Approach
Developing a new idea by thinking without constraints.

12. Creative Problem Solving
Creativity tends to decline with age, education, lack of use, and bureaucracy.
Latent creative potential can be stifled by perceptual, cultural, emotional, and organizational factors.
HOW CAN SOMEONE’S CREATIVE SPIRIT BE NURTURED?

13. Entrepreneur’s Adage #14
“Creativity begets creativity… Write a poem, compose a song, take some awe-inspiring pictures or paint something in the middle of the day while you work!”
- Jordan

14. Innovation Types of Innovation Breakthrough Technological
Fewest number of innovations.
Establishes the platform on which future innovations in an area are developed.
Should be protected by patents, trademarks, and copyrights.
Technological
Occurs more frequently; not at the same level of breakthrough inventions.
Offers advancements in the product/market area.
Also needs to be protected.

15. Innovation (cont.) Ordinary Occurs most frequently.
Extends a technological innovation into a better product or service or one that has a different market appeal.
Usually come from market analysis and pull, not technology push.

16. Continuum for Classifying New Products

17. The Opportunity Recognition Process

18. Entrepreneur’s Adage #15
“Get excited (not discouraged) when people tell you your ideas are dumb or will never work. Most people mock what they cannot themselves understand, create or envision.”
- Jordan