CREATIVITY

Creativity is the ability to develop

new ideas and to discover new ways
of looking at problems.

Innovation is the ability to apply

creative solutions to problems and
opportunities to enrich people’s life.
 CREATIVITY
Creativity is THINKING about new things.
Where as
Innovation is DOING new things.
Entrepreneurs succeed by thinking and doing
new things or old things in new ways.
Ex: Polaroid instant camera – Edwin Land
Ruff Rider – Carl Goldberg
 Invention
• An invention must involve an inventive step,
be novel, have utility, and be non-obvious.
• But to be called an innovation, it must also be
replicable at an economical cost, and must
satisfy a specific need.
• That's why only a few inventions lead to
innovations because not all of them are
economically feasible.
 CREATIVITY
BARRIERS TO CREATIVITY
1.Searching for one right answer.
Ex: Farmer
2.Focusing on being logical.
Ex: Sea water
3.Blindly following the rules.
Ex: Sholes & co – Type Writer
4. Fearing mistakes & failure
 CREATIVITY
5.Constantly being practical.
Ex: Thomas Edison
6. Becoming overly specialized.
7.Fearing looking foolish.
Ex: Farmer- apple tree
8.I am not creative
9. Avoiding ambiguity
10. Viewing play as frivolous
 CRITERIA FOR EVELUATING THE
OPPORTUNITY
Characteristics (Criteria) of a genuine business
opportunity.
1.Creates significant value for customers by
solving a problem or filling an unmet need for
which customers are willing to pay a premium.
Ex; CEMEX – ready mixed cement.
 IDENTIFYING AND EVELUATING THE
OPPORTUNITY
2] offers significant profit potential to the
entrepreneur and inventor enough to meet
their Risk/Reward expectation.
ex : 1. Suzlon wind power.

RISK/RETURN TRADE OFF

 IDENTIFYING AND EVELUATING THE
OPPORTUNITY
• 3.Represent a good fit with the capabilities of
the promoter [and management team].
Ex: Infosys – Narayanmurthy and his team.
 IDENTIFYING AND EVELUATING THE
OPPORTUNITY
4. Is durable in the sense that the opportunity
for profits will persist over a reasonable period
of time.
Ex: Power Sector.
 IDENTIFYING AND EVELUATING THE
OPPORTUNITY
5. The opportunity is amenable to financing.
Opportunity Evaluation
• Is there a target market segment in which we offer the
customer clear and compelling benefits, at a price he
or she is willing to pay?
• Are these benefits, in the customer’s minds, different
from and superior in some way –to what’s currently
offered by other solutions?
• Entry in to this segment will provide entry in to other
segments in the future?
 Opportunity Evaluation

• How large is the market?

• How quickly can it grow in the next 6 months or 2/3/5
years?
• What trends can be identified in the environment and
how will it affect the business?
Opportunity Evaluation
• Is it difficult for companies to enter this industry?
• Do suppliers to this industry have the power to set terms
and conditions?
• Do buyers have the power to set terms and conditions?
• Is it easy or difficult for substitute products to steal the
market?
• Is competitive rivalry intense or moderate?
Opportunity Evaluation
• Do you require proprietary elements - patents, trade
secrets so that other firms cannot likely duplicate or
imitate?
• Can your business develop and employ superior
organizational processes, capabilities or resources that
others would have difficulty in duplicating or imitating?
• Is your business model economically viable i.e. can you
show that your company won’t run out of cash quickly?
Opportunity Evaluation
• What level of aspirations do you have for your
entrepreneurial dream?
• What sorts of risk are you and are you not willing to
take?
• What are the Critical Success Factors required in this
Industry?
• Does your team have it?
• Who do you and your team know across the value-
chain among your customers, suppliers, competitors
and substitutes?
Mullins’ 7 Domain Framework
 How to generate Business Ideas?

• Problem solving / situation Analysis Approach. This

approach highlight the need which give rise to many
Business opportunities.

• Thinking of new product / services not in existence.

• Developing the existing products and services, in terms of

design, specializations etc.,

• Selecting products / services which are being

manufactured / offered.
 Where to look for opportunities.
Where things are changing
- New knowledge
 Block Chain
 Robotics
 Artificial Intelligence

- Technology (change)
- Tele medicine.
- online education.
- online Tuition.
 Where to look for opportunities
- Regulatory change.
- Tele communications.
- Retailing
- Airlines
- Insurance
- Finance
- Banking
- Defense
 Where to look for opportunities
- social turmoil and civic failures
- Education
- Security systems
 Where to look for opportunities
- Changing tastes/preferences of customers.
- F M Radio
- Multiplex Cinema