Entrepreneurship Development (BBA432) Identification of Opportunities

ENTREPRENEURSHIP
DEVELOPMENT
(BBA432)
Module 2 : Identification of Opportunities
Halaswamy D PhD
Assistant Professor
School of Business & Management
MISSION VISION CORE VALUES
CHRIST is a nurturing ground for an individual’s Excellence and Service Faith in God | Moral Uprightness
holistic development to make effective contribution to Love of Fellow Beings
the society in a dynamic environment Social Responsibility | Pursuit of Excellence
CHRIST
Deemed to be University
Beauty Clinic
Anushka and Devyani were two students studying a beautician course
in a city college. They hailed from Madurai a metropolitan city and
Uttangadi an upcoming village near by Madurai respectively. They
became good friends during the course of their education. Anushka
hailed from an upper middle class family with her parents in
influential Government jobs. Devyani hailed from a lower middle
class family with her parents depending on farming their livelihood.
They both shared a long ambition to become successful in their life
working independently.
Excellence and Service

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They both were intelligent and were creative compared to others and
both - were intent on stalling a beauty clinic in their own respective
places. Anushka was against the idea of Devyani starting her clinic in
a village. She felt that people in a village will have a lesser awareness
towards beauty and moreover their ability to pay more in her village a
question mark. She had a strong view that, villagers always depend on
nature for their beauty needs and they would have reluctance for the
use of these artificial beauty techniques. But Devyani was strong in
her view that she will succeed as a beautician in her own village rather
than any other place.
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Questions
1. What are the reasons for difference in views on establishing beauty

clinic in respective places?
2. Whom do you support? What do you suggest ?
3. Explain the factors that influence the choice of location to start

business.

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IDENTI FYING THE BUSINESS OPPORTUNITY

● The opportunity to be your own boss, to provide a product or service,
to implement your ideas, which can generate sufficient surplus, is
reason to think of starting any business.
Before Starting Your Own Business…

● Does the idea fire your motivation and is it adequate enough to keep you
going for next one to two years?
● Is it a viable business proposition in your area?
● Does it match the needs of your clientele, local or otherwise?
● Check it out with basic market research.
● Test it out in the market.
● Consult with experts.
● Look out for competition in the field.
● Is it a sunrise industry?
● Evaluate your business opportunity.
● Project conceptualization. Excellence and Service
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Idea generation
● Idea generation is the creative process or procedure that a company

uses in order to figure out solutions to any number of difficult
challenges.
● It involves coming up with many ideas in a group discussion,

selecting the best idea or ideas, working to create a plan to implement
the idea, and then actually taking that idea and putting it into practice.
● The idea can be tangible, something you can touch or see,

or intangible, something symbolic or cultural.

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Techniques of Idea Generation : 1. Brain Storming
● This technique is quantitative meaning that you come up with a large

number of ideas. Here a group comes up with a different probable
solution to the problem.
● Brainstorming is a group technique as a way to generate a lot of ideas

quickly in response to a specific problem or question.
● Traditional brainstorming involves multiple people calling out as

many ideas as they can think of within a set timeframe.
● Brainstorming emphasizes quantity over quality, disallowing critique

or limitations during the brainstorming session; "There are no bad
ideas."

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Techniques of Idea Generation : 2. Reverse

Brainstorming
● A technique that builds on our natural ability to more easily see problems
than solutions.
● Instead of asking a group to brainstorm ideas that would work, the group
brainstorms all the ways that they could cause a plan to fail.
● This technique is used because it can be easier to criticize and see gaps in a
plan than to outline a strategy for success.
● Once the group has this list, they can look at these specific examples and
come up with ways to achieve the opposite effect.
● In reverse brainstorming, you instead look at what could make the problem
worse or why the problem can't be solved.
Example:
"How do we improve patient satisfaction?"
Then she reverses the problem statement:
"How do we make patients more dissatisfied?"
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Techniques of Idea Generation : 3. Brain Deemed to be University
writing
● Brainwriting is an idea generation
technique where participants write
down their ideas about a particular
question for a few minutes without
talking.
● Then, each person passes his or her

ideas to the next person who uses
them as a trigger for adding or
refining their own ideas.
● Brainwriting is the introvert’s

version of brainstorming.
● Each person is given a blank page to

write down three ideas, then after
five minutes, all pages are collected
and passed onto someone else, who
can continue to explore those
existing ideas, or add their own.
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Techniques of Idea Generation : 4.Attribute Listing
Attribute Listing is
a creative
technique which
involves breaking the
problem into smaller
and smaller parts and
looking at alternative
solutions to these parts.
Attribute Listing is a good

tool for Incremental
Innovations in a
product/service.

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Techniques of Idea Generation : 5. Free Association
Free association is a method of developing new idea through a chain or a cycle

of word association.
The process involve a word relating to the problem being written down, then
another and another.
Participant says whatever comes into his mind relative to a word he just wrote or
relative to a key word definition of a problem.
Creating a semantic relationship between every word from the obtained list of
associations and the problem might help to find useful analogy, which
contains creative ideas and could lead to solutions.

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Types of associations
1. Serial association. Creating of a chain of associations in which each association works

as a trigger for the next association.
Start with a trigger word, you record the flow of words that come to mind, each word
triggering the next, ultimately reaching a potentially useful one.
For example: Phone – relationship – love – rose – velvet – heat – lamp – sun – life
–health … (The “phone-health” bundle can be the source of a number of ingenious
and powerful solutions for improving the device).
2. Centred association. Generation of multiply association to one single stimulus word

or trigger. This technique similar to Mind Mapping.
Prompts you to generate multiple associations to the original trigger so that you
‘delve’ into a particular area of associations.
For example: Phone – waves, computer, music, art, hand, light, heat, vibrations,
jacket, world, artificial intelligence, chain, energy, weapon, robot … (The “phone –
weapon” and “phone-robot” bundles also can generate several powerful ideas for
improving the device and giving it a new functions).

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Techniques of Idea Generation : 6. Forced

Relationship,
● This technique helps to come up with unique ideas.
● Here you take two unrelated things and imagine putting them together
to see what new thing you can come up with.
● For example, take a calculator and a pencil, these are unrelated to

each other. Now try putting them together.
● It is an easy technique involving the joining of totally different ideas

to come up with a fresh idea. Though the solution may not be strictly
unique, it frequently results in an assortment of combinations that are
often useful. A lot of products we see today are the output of forced
relationships (such as a digital watch that also has a calculator,
musical birthday cards )
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Techniques of Idea Generation : 7. Gordon Method
● Developing new ideas when the individuals are unaware of the

problem.
● The entrepreneur begins by mentioning a general concept associated

with the problem.
● The group thereafter responds by expressing a number of ideas.
● This can then lead to a concept being developed, followed by related

concept through guidance by the entrepreneur.
● At last the actual problem is revealed, enabling the group to make

suggestion for the implementation or refinement of the final solution.

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Techniques of Idea Generation : 8. Parameter

Analysis;
● This is a method of developing new idea by focusing on parameter identification and
creative synthesis.
● Parameter identification involves the analysis of variables contained in the situation to
determine their relative importance.
● These variables thereafter become the focus of the investigation with other variables
being set aside.

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Innovation, Invention & Creativity
● Innovation is the process of turning a new concept into commercial success or widespread use.
● Invention is the creation of a new idea or concept.
● Creativity is the act of turning new and imaginative ideas into reality.
Creativity, invention, and innovation are all interrelated and necessary for growth to occur.
Innovation cannot happen without creativity or invention, and neither creativity nor invention is
useful in business if not properly executed.
We can follow any successful company and see an investment of time and effort into these three concepts.

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Definition of Creativity
● Creativity is the characteristic of a person to generate new ideas,

alternatives, solutions and possibilities in a unique and different way.
● Creativity is the ability to conceive something unpredictable, original

and unique. It must be expressive, exciting and imaginative. It is the
mirror of how beautifully a person can think in any given
circumstance.
● It is not genetic but can be developed if someone keeps on learning

and comprehending things with a rare and exclusive perception.
Creativity is a brainstorming and mind-blogging activity in which a
person has to think beyond his imagination for bringing something
worthwhile. It is an activity of unveiling something which was
previously hidden.
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Definition of Innovation
● Innovation is an act of application of new ideas to which creates some
value for the business organisation, government, and society as well.
Better and smarter way of doing anything is innovation. It could be
the introduction of:
○ New technology.
○ New product line or segment.
○ A new method of production.
○ An improvement in the existing product.
● Innovation is closely tied to creativity i.e. putting creative ideas into

action is an innovation, whose consequences should be positive. It is
the process of doing something better for the first time, which was not
previously done by any entity. It can also be termed as a change
which can bring a new edge to the performance and productivity of
the company. It is of two types i.e. evolutionary and revolutionary.
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Key Differences between Creativity and Innovation
● The quality of thinking new ideas and putting them into reality is
creativity. The act of executing the creative ideas into practice is
innovation.
● Creativity is an imaginative process as opposed to innovation is a
productive process.
● Creativity can never be measured, but Innovation can be measured.
● Creativity is related to the generation of ideas which are new and
unique. Conversely, Innovation is related to introduce something
better into the market.
● Creativity does not require money. On the other hand, innovation
requires money.
● There is no risk involved in creativity, whereas the risk is always
attached to innovation.

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GENERATING IDEAS
(a) Brainstorming:
● This is a process in which a small group of people interact with very

little structure, with the goal of producing a large quantity of novel
and imaginative ideas.
● The goal is to create an open, uninhibited atmosphere that allows
members of the group for ideas.
● Normally, the leader of the group asks the participants to share their
ideas.
● As group members interact, each idea sparks the thinking of others,
and the spawning of ideas becomes contagious.

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(b) Focus Groups :
These are group of individuals who provide information using a

structured format.
● Normally, a moderator will lead a group of people through an open, in

depth discussion.
● The group members will form comments in open-end in-depth
discussion for a new product area that can result in market
penetration.
● This technique is an excellent source for screening ideas and concept.

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(c) Observation :
A method that can be used to describe a person or group of people’s

behaviour by probing:
(i) What do people/organisations buy?

(ii) What do they want and cannot buy?
(iii) What do they buy and don't like?
(iv) Where do they buy, when and how?
(v) Why do they buy?
(vi) What are they buying more of?
(vii) What else might they need but cannot get?

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(d) Surveys
● This process involves the gathering of data based on communication
with a representative sample of individuals.
● This research technique requires asking people who are called
respondents for information either verbally or by using written
questions.
● Questionnaires or interviews are utilised to collect data on the
telephone or face-to-face interview.
(e) Emerging Trends

● The example is based on the population within your area may be
getting older and creating demand for new products and services.

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(f) Research and Development

● Research is a planned activity aimed at discovering new knowledge,
with the hope of developing new or improved products and services.
● Researching new methods, skills and techniques enable entrepreneurs
to enhance their performance and ability to deliver better products and
services.
(g) Tradeshows and association meetings

This can be an excellent way to examine the products of many potential
competitors, uncover product trends and identify potential products.
(h) Other Technique :
● This can be achieved by reading relevant trade magazines and
browsing through trade directories.
● These may include local, national and foreign publications.
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Product Planning and Development
Step # 1. Generation of New Product Ideas
● The first step in product planning and development is generation of

ideas for the development of new/innovative products.
● Ideas may come from internal sources like company’s own Research
and Development (R&D) department, managers, sales-force personnel
etc.; or from external sources like, customers, dealers, competitors,
consultants, scientists etc.
● At this stage, the intention of management is to generate more and

more new and better product ideas; so that the most practical and
profitable ideas may be screened subsequently.

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Step # 2. Screening of Ideas:
● Screening of ideas means a close and detailed examination of ideas, to

determine which of the ideas have potential and are capable of making
significant contribution to marketing objectives.
● In fact, generation of ideas is not that significant as the system for

screening the generated ideas.
● The ideas should be screened properly; as any idea passing this stage
would cost the firm in terms of time, money and efforts, at subsequent
stages in product planning and development.

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Step # 3. Product Concept Development
● Those product ideas which clear the screening stage must be

developed into a product concept – identifying physical features,
benefits, price etc. of the product.
● At this stage product idea is transformed into a product concept i.e. a

product which target market will accept.

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Step # 4. Commercial Feasibility:
● At this stage, the purpose is to determine whether the proposed

product idea is commercially feasible, in terms of demand potential
and the costs of production and marketing.
● Management must also ensure that product concept is compatible with

the resources of the organization technological, human and financial.

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Step # 5. Product Development:
● Product development encompasses the technical activities of

engineering and design.
● At this stage, the engineering department converts the product concept

into a concert form of product in view of the required size, shape,
design, weight, colour etc. of the product concept.
● A model or prototype of the product is manufactured on a limited

scale. Decisions are also made with regard to packaging, brand name,
label etc. of the product.

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Step # 6. Test Marketing
● A sample of the product is tested in a well-chosen and authentic sales

environment; to find out consumers’ reaction.
● In view of consumers’ reactions, the product may be improved

further.

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Step # 7. Commercialization:
● After the management is satisfied with the results of test marketing,

steps are taken to launch a full-fledged programme for the production,
promotion and marketing of the product.
● It is the stage where the new product is born; and it enters it life cycle
process.

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● Proof of Concept (POC)---- Goal: To find out whether the idea is

technically feasible
● Prototype- Goal: To demonstrate how the product will look
● Minimum Viable Product (MVP)- Goal: Launch and iterate based on

user feedback

BUSINESS OPPORTUNITIES IN
INDIA
MISSION VISION CORE VALUES

CHRIST is a nurturing ground for an individual’s Excellence and Service Faith in God | Moral Uprightness
holistic development to make effective contribution to Love of Fellow Beings
the society in a dynamic environment Social Responsibility | Pursuit of Excellence
CHRIST

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India a viable investment and entrepreneurship

destination
● It is one of the world’s fastest-growing economies that is developing
at a rapid pace.
● It provides a sharp edge for technology innovation.
● India, as an economically free country, provides a favourable

framework for entrepreneurs to reach the large market.
● According to the World Bank and the International Finance

Corporation, India is rated 23rd.
● Another compelling incentive to start a business in India is the

country’s large youth population.

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Model for Opportunity Evaluation
The RAMP Model
R – Return
A – Advantages
M – Market
P – Potential

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R- Return
● Is it profitable? Will your revenues be higher than your expenses?

● Time to break even. How long will it take before you have positive
cash flow? How long until the company begins to have an aggregate
net income?
● Investment Needed. How much money will it take to start up this
venture?

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A – Advantages
● Look at the cost structure (suppliers, what each element will cost to
source or manufacture).
● Barriers to entry (large competitors, regulations, patents, large

capital requirements).
● Intellectual Property. Do you have a proprietary advantage such as a

patents or exclusive licenses on what you will be selling?
● Distribution Channel. How will you be selling your product? Will

you sell it direct to the consumer via the Internet, sell it to wholesales,
sell it to businesses, or sell it to retail stores? If you can develop a
unique distribution channel this can surely be an advantage.
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M – Market
● The Need. Is there big need for this product or service? Try to avoid
ideas that sound cool but there is no real need for. Make sure your
product or service fills a need or solves a problem.
● Target market. Who are you selling to? Businesses? Consumers?

What demographics? What is the size of the market?
● Pricing. What will you charge, what will be the price, will there be a
high enough markup?

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P-Potential
● Risk vs. Reward. How risky is the opportunity? Will there be a high
reward for the founders and investors if the company succeeds?
● The Team. Is the team right for the business? Do the members of the
team have knowledge in this area?
● Timing. Is the market ready for your product? You may have a great
idea for flying cars, but if consumers are not ready for your product
you may not be able to turn your idea into a successful business.
● Goal Fit. Does the business concept fit the goals of the team to create
a high potential or lifestyle business?
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Mullins’ Seven Domains Model to analyze your

environment
John Mullins, an entrepreneur and professor at London Business
School, developed the Seven Domains Model and published it in his
2003 book, "The New Business Road Test."
Model helps you analyze the impact of seven major factors –on the
activity you are planning to evaluate or the venture you are planning
to start.
Visit for a short video by John:
https://www.youtube.com/watch?v=7sA_saQ2iZ0

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Mullins’ Seven Domains Model

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Mullins’ Seven Domains Model

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You need to look at each of these domains and ask key questions about
each, you’ll gain clarity about how likely your business idea is to
succeed
The seven domains are:

1. Market attractiveness
2. Target segment beneﬁts and attractiveness
3. Industry attractiveness
4. Competitive and economic sustainability
5. Mission, aspirations, propensity for risk
6. Ability to execute on CSFs
7. Connectedness up and down the value chain

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Market Attractiveness
● Market Domain – Macro Level
● You must look at the whole market.
● How large is it, how many customers can you acquire, revenue
opportunity, and the quantity of units that can be sold?
● Then, look at trends within the market.
● What is the growth in recent years? Is this growth likely to continue?

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Target segment benefits and attractiveness
● Market Domain – Micro Level

● You cannot target the whole world at once! Identify the sector you
wish to target and perform this step to check if you can meet its needs
fully.
Some questions that you must look at:

● Which category/ sector of the market is most likely to benefit from
your activity?
● How are you / your product different from others in this segment?
● What are the futuristic trends in this segment? Is it growing, and will
it continue?
● Which is the next market segment you would like to target?

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Industry Attractiveness
Industry Domain – Macro Level
● Use this step, to see how attractive your industry is on a macro level.
● Define the industry that you want to compete in, and then check for
the ease of entering this industry. Look at your competition as well. Is
rivalry in this market fierce or civilized? Gather intelligence about
your potential competitors and see what they are doing.
● Look at buyers and suppliers. Understand and access how much

power do they have? Are they setting their own terms and conditions
sighting the power? Do an analysis of what effect this will have on
your offering? Excellence and Service
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Competitive and economic sustainability
Industry Domain – Micro Level

● In the previous step, we looked at the industry from a macro level. In
this step, lets look at it from a micro perspective.
● Let’s Start with a USP Analysis. Define, what you should do to build
and sustain any USP? Identify the competencies that you’ll need, and
define how your organization will develop these.
● As we are looking at sustainability, identify what resources do you

possess that your competitors don’t? Look at your competitors’
resources. What do they have that you don’t? This could include
critical and trust seeking factors like patents, established processes,
and finances. Excellence and Service
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Mission, Aspirations, Propensity for Risk

Team Domain
● In this domain, you will be analyzing the commitment levels – your’s,
and that of your team – relative to the particular context.
● Think about why you want to implement the new activity or start this
business? Are you passionate about this idea, and, if so, why? What
do you want to do with this? What are your personal goals and values
/ business goals and values, and how does this activity/venture align
with these? And are you prepared to take the risk and put in the hard
work needed to build this business?
● It is also important to check if your team’s motivation align with
yours and that of the organization. Is the team prepared to work really
hard to make the business a success?

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Ability to Execute on Critical Success Factors

Team Domain
● In this stage you need to derive the Critical Success Factors (CSFs)
for the business, and think realistically about whether your team can
deliver on these.
● Here are a few questions to help you:
● Identify the decisions or activities which will harm the growth
significantly if you get them wrong, even when everything else is
going in the right direction?
● Which activities will deliver high benefits and enhance performance,
even if other things are going poorly?
● How certain are you that you and your team can deliver successfully
on the identified CSFs?
● When there is a gap in skills or abilities, who can you bring on board
to fill this gap? Excellence and Service
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Connectedness Up, Down, Across Value Chain

Team Domain
● This stage is all about connecting the dots.
● We refer to your network and what contribution your connections can

make.
● Start with your suppliers and investors.
● Identify vendors that can supply you with the resources you need.
● Now, look at your potential customers and distributors.
● In what ways can you capitalize on your connections here?
● Last, look across the valueExcellence

chain. and Service

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ENTREPRENEURSHIP

Module 2 : Identification of Opportunities

Excellence and Service

1. What are the reasons for difference in views on establishing beauty

2. Whom do you support? What do you suggest ?

3. Explain the factors that influence the choice of location to start

Excellence and Service

IDENTI FYING THE BUSINESS OPPORTUNITY

Before Starting Your Own Business…

Excellence and Service

Excellence and Service

Excellence and Service

● Idea generation is the creative process or procedure that a company

● It involves coming up with many ideas in a group discussion,

● The idea can be tangible, something you can touch or see,

Excellence and Service

Techniques of Idea Generation : 1. Brain Storming

● This technique is quantitative meaning that you come up with a large

● Brainstorming is a group technique as a way to generate a lot of ideas

● Traditional brainstorming involves multiple people calling out as

● Brainstorming emphasizes quantity over quality, disallowing critique

Excellence and Service

Techniques of Idea Generation : 2. Reverse

● Then, each person passes his or her

● Brainwriting is the introvert’s

● Each person is given a blank page to

Attribute Listing is a good

Excellence and Service

Techniques of Idea Generation : 5. Free Association

Free association is a method of developing new idea through a chain or a cycle

Excellence and Service

1. Serial association. Creating of a chain of associations in which each association works

2. Centred association. Generation of multiply association to one single stimulus word

Excellence and Service

Techniques of Idea Generation : 6. Forced

● For example, take a calculator and a pencil, these are unrelated to

● It is an easy technique involving the joining of totally different ideas

Techniques of Idea Generation : 7. Gordon Method

● Developing new ideas when the individuals are unaware of the

● The entrepreneur begins by mentioning a general concept associated

● The group thereafter responds by expressing a number of ideas.

● This can then lead to a concept being developed, followed by related

● At last the actual problem is revealed, enabling the group to make

Excellence and Service

Techniques of Idea Generation : 8. Parameter

Excellence and Service

● Invention is the creation of a new idea or concept.

Creativity, invention, and innovation are all interrelated and necessary for growth to occur.

Excellence and Service

Excellence and Service

Excellence and Service

● Creativity is the characteristic of a person to generate new ideas,

● Creativity is the ability to conceive something unpredictable, original

● It is not genetic but can be developed if someone keeps on learning

● Innovation is closely tied to creativity i.e. putting creative ideas into

Key Differences between Creativity and Innovation

Excellence and Service

Excellence and Service

● This is a process in which a small group of people interact with very

Excellence and Service

(b) Focus Groups :

These are group of individuals who provide information using a

● Normally, a moderator will lead a group of people through an open, in