Subject.

Entrepreneurship
Chapter 4
Creativity and the Business
Idea
Ali Raza (Ph.D. Scholar, Near East
University, North Cyprus, Mersin
10, Turkey)
 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
1. Breakthrough Innovation
2. Technological Innovation
3. Ordinary Innovation
 Defining a New Innovation
(product or Service)
 Its always a dilemma to define a new
product. For example
– Jeans is not a new product
– Walkman Popular product of 1980s was the
same as cassette recorder
Firms constantly looking for new markets to exploit to
increase profits and make more effective use of their
resources. Other firms are simply changing one or
more of the marketing mix elements to give old
products a new image
 Classification of New Products
New products may be classified from the
viewpoint of either the consumer or the
firm.
1. From a Consumer’s Viewpoint This
technique looks at newness in terms of its
effect on changed physical form, or is an
improved version of an old or existing
product
 Classification of New Products
The continuum proposed by Thomas
Robertson and shown in Figure 4.3
contains three categories based on the
disrupting influence that use of the
product has on established consumption
pattern (Figure 4.3)
Figure 4.3 - Continuum for
Classifying New Products
 Classification of New Products
Consumer’s Viewpoint
 Continuous Innovation: Least disrupting
influence on established patterns e.g.
(Fashion Style changes, package
changes)
 Dynamically Continuous Innovation:
Some disrupting influence on established
consumption pattern e.g. CDs, ipod
 Classification of New Products
3. Discontinuous Innovations: Involves the
establishment of new consumption
patterns and the creation of previously
unknown products. These are truly new
products and are rare and require a great
deal of new learning by the consumer.
E.g. Internet has changed the lifestyle of
people
 Classification of New Products
Firm’s Viewpoint (Figure 4.4)
An important distinction is made between new
products and new markets.
New products are defined in terms of the amount
of improved technology, whereas market
development is based on the degree of new
segmentation.
New market and new technology together possess
the highest risk and more complications
Figure 4.4 - New Product
Classification System
 Opportunity Recognition
A business opportunity represents a
possibility for the entrepreneur to
successfully fill a large enough unsatisfied
need that enough sales and profits result.
(Figure 4.5)
 Figure 4.5 - A Model of the
Opportunity Recognition Process
 Figure 4.6 - The Product
Planning and Development
Process