GEntrep

Activity 3

Definition of Terms:
1. AEIOU Framework
 According to Pandey (2021), AEIOU design thinking framework provides an
observation technique used to document contextual inquiries during ethnographic
studies. It helps to categorize and interpret observations gathered during user
research field studies and usability testing efforts. AEIOU is a framework which
guides designers in thinking through a scenario or a problem from a variety of
perspectives. It is useful in organizing thoughts, observations, and ideas into
distinct categories. It provides a framework for observing contextual inquiries and
collecting qualitative data. It will help gather observational data in addition to
other ethnographic methods.

AEIOU Framework:
A: Activities
E: Environments
I: Interactions
O: Objects
U: Users

2. Convergent Thinking
 J.P. Guilford is typically credited with distinguishing between divergent and
convergent thinking. Convergent thinking is involved whenever the individual
focuses on one correct or conventional idea solution. Convergent thinking occurs
when the solution to a problem can be deduced by applying established rules and
logical reasoning. This type of reasoning involves in solving a problem within the
context of known information and narrowing down the solution based on logical
inference.

3. Design Thinking
 Design thinking is a human-centered approach to innovation—anchored in
understanding customer’s needs, rapid prototyping, and generating creative ideas
—that will transform the way you develop products, services, processes, and
organizations. By using design thinking, you make decisions based on what
customers really want instead of relying only on historical data or making risky
bets based on instinct instead of evidence. Design thinking brings together what is
desirable from a human point of view with what is technologically feasible and
economically viable.
 Desirability: What makes sense to people and for people?
 Feasibility: What is technically possible within the foreseeable future?
 Viability: What is likely to become part of a sustainable business model?
4. Divergent Thinking
 Divergent thinking is a type of cognition in which the contents of memory and
perception are employed to generate a large variety and quantity of solutions from
an open-ended source or starting point.
 Divergent thinking, also referred to as lateral thinking, is the process of creating
multiple, unique ideas or solutions related to a problem that you are trying to
solve. Divergent thinking is similar to brainstorming in that it involves coming up
with many different ideas to solve a single problem. Many tests that are used to
measure creativity, such as the alternative uses test and incomplete figure test,
have been found to measure divergent thinking.

5. Ideation
 Ideation refers to the process of developing and conveying prescriptive ideas to
others, typically in a business setting. It describes the sequence of thoughts, from
the original concept to implementation. Ideations can spring forth from past or
present knowledge, external influences, opinions, convictions, or principles.
Ideation can be expressed in graphical, written, or verbal terms.

 Styles of ideation include the following:

 Problem solutions: This straightforward method is where an individual identifies a
problem that they subsequently solve.
 Derivative ideas: This involves making improvements to an existing idea.
 Symbiotic ideas: This is a collision of several incomplete ideas that combine to
create a fully-baked, holistic idea.

6. Implementation
 Business implementations, also called a business implementation plan, is a set of
steps that companies use to determine how to implement a strategic plan within
company activities to achieve one or more business plan objectives. This includes
activities like setting roles, establishing important dates or deadlines, defining
methods of communication and methods to educate company employees about
strategic planning initiatives.

7. Insight
 The term 'insight' means understanding, perception or knowledge.
 In business an insight is knowledge that adds value and serves to create or
improve something. A company has insights when it has valuable information that
allows companies to generate intelligence and understand what is happening, why
and how something can be solved, reversed or improved.

8. Inspiration
  Business inspiration—the spark that leads to a great idea or energizes you so you
can move forward—is often the remedy. There are many different ways to find
inspiration, and what works for one entrepreneur may not work for another.
 Business inspiration is the process of being mentally stimulated, and creativity
can be the result of getting inspired. For instance, you might become inspired by
meeting new people and learning new concepts at a trade conference. The
inspiration allows you to create solutions for a problem your business is having.

9. Latent Needs
 Latent demand refers to demand for a good or service that consumers cannot
satisfy for three main reasons. First, the consumer does not have enough money to
buy the item. Second, the item is not available. Third, the consumer does not
know that the product or service is available.
 If a consumer cannot satisfy a desire for something because they cannot point it
out, we could say there is latent demand. If the consumer does not realize what is
missing until somebody points it out, there is also latent demand.

10. Needs
 A need is a requirement arising out of a necessity that is essential for an
individual to exist or live a healthy life.
 Consider it to be an essential element of life whose deficiency may lead to
adverse outcomes. Needs are drivers of people’s actions. Almost all actions can
be considered as originating in the quest for satisfying or actualizing needs.
 In marketing, a need is the consumer’s desire to get functional utility out of an
offering. It’s the desire for the offering’s specific benefit that helps the consumer
get the job done.

11. Observation
 Customer observation is the research and collection of customer data to
understand better their needs and how they interact with a company’s products or
services. Interviews, focus groups, surveys, and analytics are among the
qualitative and quantitative research methods used
 Understanding your customers is essential for business success. Companies can
learn about unfulfilled customer needs and design products or services to address
them by observing them. Customer observation can also assist businesses in
improving the customer experience, making it more seamless and enjoyable.
 Customers’ selective listening can also give businesses a competitive advantage
by providing first-hand insights into customer trends.

References:
Pandey, B. (2021, May 29). “AEIOU of design thinking”. Linkedin.
www.Linkein.com/pulse/aeiou-design-thingking-bhupesh-kumar-pandey
Killgore, W. (2010). “Convergent thinking”. ScienceDirect.
www.sciencedirect.com/topics/psychology/convergent-thinking
Design thinking process. IDEO U. httpss://www.ideou.com/pages/design-thinking
Runco, M.A. (2011). “Divergent thinking”. ScienceDirect.
www.sciencedirect.com/topics/psychology/divergent-thinking
Klenton, W. (2022, December 06). “What is an ideation? Definition, how it works, and process”.
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Indeed Editorial Team (2023, March 11). “What is business implementation? Definition and
tips”. Indeed. www.indeed.com/career-advice/creer-development/business-
implementation
Emilio, N. (2021, July 22). “What is an insight? Business insights and insight marketing”. Kale
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Business inspiration: how to find and put it into action, (n.d). Shopify.
https://www.shopify.com/blog/business-inspiration
Pahwa, A. (2022, September 13). “Needs vs wants- understanding the difference in marketing”.
Feedough. www.feedough.com/needs-vs-wants/
Question Pro Collaborators, (n.d). “Customer observation: what is it, importance, key points”.
QuestionPro. www.questionpro.com/blog/customer-observation/