We discuss the process of opportunity identification, the first phase in new‐product

development. Whereas many sources assume it is the generation of ideas that is most
difficult, it appears that selecting the most promising among them is the key issue. The
probability of choosing the most viable ideas (or opportunities, or strategic options)
increases with using predefined, relevant criteria. Such criteria should follow from a
company's product strategy or product innovation charter.

We present and discuss a systematic way of assessing new opportunities, based on

four criteria. These criteria are business opportunity, feasibility, competitiveness, and
leverage. Recent research suggests that business opportunity and feasibility are most
important in judging strategic options ex‐ante, whereas competitiveness is a good
predictor ex‐post.

In general sense, the term opportunity implies a good chance or a

favourable situation to do something offered by circumstances.
The term ‘opportunity’ also covers a product or project. Hence, the
identification of an opportunity or a product or project is identical
and, therefore, all these three terms are used as synonyms. 

In a sense, opportunity identification and selection are akin to, what is

termed in marketing terminology, ‘new product development.’ Thus,
product or opportunity identification and selection process starts with
the generation of ideas, or say, ideas about some opportunities or
products are generated in the first instance.

These may include:

(i) Knowledge of potential customer needs,
(ii) Watching emerging trends in demands for certain products,
(iii) Scope for producing substitute product,

(iv) Going through certain professional magazines catering to specific

interests like electronics, computers, etc.,
(v) Success stories of known entrepreneurs or friends or relatives,
(vi) Making visits to trade fairs and exhibitions displaying new
products and services,
(vii) Meeting with the Government agencies,
(viii) Ideas given by the knowledgeable persons,
(ix) Knowledge about the Government policy, concessions and
incentives, list of items reserved for exclusive manufacture in small-
scale sector,
(x) A new product introduced by the competitor, and
(xi) One’s market insights through observation.
Opportunity/Product Identification:
ne might have been able to generate some ideas that can be considered
to be pursued as ones business enterprise.