MODULE 2: CREATIVITY AND

INNOVATION

LEARNING OBJECTIVES:

• Sources of New Ideas

• Methods of Generating Ideas
• Creative Problem Solving
• Opportunity Recognition
• Product Planning and Development Process

SOURCES OF NEW IDEAS

• Consumers
• Exiting Products and Services
• Distribution Channels
• Government
• Research and Development

1
METHODS OF GENERATING IDEAS

• Focus Groups
• Brainstorming
• Problem Inventory Analysis

PROBLEM INVENTORY ANALYSIS

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

2
ILLUSTRATION OF FORCED RELATIONSHIP
TECHNIQUE

ILLUSTRATION OF PARAMETER ANALYSIS

A MODEL OF THE OPPORTUNITY

RECOGNITION PROCESS

3
PRODUCT PLANNING AND DEVELOPMENT
PROCESS
Five Major Stages:
o Idea Stage
o Concept Stage
o Product Development Stage
o Test Marketing Stage
o Commercialization

THE PRODUCT PLANNING AND

DEVELOPMENT PROCESS

THE NORMAL DISTRIBUTION OF ADOPTERS

4
DISTRIBUTION OF ADOPTERS

• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards

CROSSING THE CHASM

MARKET DYNAMICS

• Demand forecasts help you to determine how much to produce.

• Demand forecasts help you to project your future costs in businesses based
on economies of scale.
• Demand forecasts help you to determine the payback on your investment in
product development.
• Demand forecasts help you to make pricing and advertising decisions because
they provide information about customers' price sensitivity, and the effect of
advertising on sales.
• Demand forecasts help you to determine the competitiveness of your market.

5
SOURCES OF OPPORTUNITIES

• Technological Change
• Political and Regulatory Change
• Social and Demographic Change
• Combination