Business start-up:Creativity and the Business Idea

Identify various sources of ideas for new ventures. Discuss methods available for generating new venture ideas. Discuss creativity and the techniques for creative problem solving. Discuss the creative climate conducive to creative process Identify and make use of the different types of innovation

Consumers
Potential entrepreneurs to pay attention to potential customers Informal monitoring potential ideas and needs Formally arranging for consumers to have an opportunity to express their opinions Need to ensure that the idea and need represent a large enough market to support a new venture: critical mass

Existing companies
Potential entrepreneurs to establish a formal method for monitoring and evaluating competitive products on the market Frequently this analysis uncovers ways to improve on these offerings, resulting in a new product that has more market appeal.

Distribution channels
Members of distribution channels good sources for new ideas, due to their familiarity with the market: market knowledge. In addition to their frequent suggestions of completely new products, they will also help to market the newly developed products.

Federal government
Files of the patent office: the patents themselves may not be copied but can suggest ideas for other more marketable products Some governments eg USA publishes list of abstracts of thousands of government-owned patents.

Sources:
(a)Publication called Government-owned patents available for license. (b) Office of Technical services assists entrepreneurs in obtaining specific product information (c) The official Gazette, published weekly by the US Patent Office

New product ideas can come in response to government regulations. Occupational Safety regulations aimed at elimination unsafe working conditions in industry can promote an entrepreneur into coming up with a new product as solution.

Research and Development Largest source of new ideas is the entrepreneurs own R&D Can be associated with ones current employment Can be a hobby in the informal lab in the garage (eg Apple).

Focus groups A moderator leads a group of people through an open, in-depth discussion rather than simply asking questions to solicit participant response for a new product idea. The moderator focuses the discussion of the group either in a directive or non-directive manner. The group of 8-12 participants is stimulated by comments from other group members in creatively conceptualizing and developing a new product idea to meet market needs. In addition, the focus group can help screen ideas

Brainstorming The brainstorming method for generating new ideas is based on the fact that people can be stimulated to greater creativity by meeting with others and participating in group discussions. Most of the ideas generated by group can have no basis for further development, however often one good idea may emerge. There is greater probability of success when the brainstorming effort focuses on a specific product or market area.
Used in problem-solving and idea generation Unstructured process for generating all possible ideas to solve a problem, within short timeframe Start with a statement of the problem Statement must be well defined:
(i) if too broad: diversify ideas too greatly, no good idea emerges (ii) if too narrow: tend to limit and confine responses: no good ideas

Select 6-12 people so that a wide range of knowledge is represented No group member to be a recognized expert, on the problem field to avoid inhibition Record all responses, no matter how illogical Again no criticisms / evaluations allowed No criticisms is allowed: no negative comments The wilder the idea, the better A large quantity of ideas to allow for greater likely of one good idea to emerge Combinations and improvements on ideas, piggy -riding is encouraged: ideas of others can be used to produce other ideas.

Reverse Brainstorming Similar to brainstorming, but criticism is allowed Find fault by asking the question; In how many ways can this idea fail? Care must be used to maintain groups morale This method must involve identifying everything possibly wrong about the idea, followed by ways to solve these problems.

Problem-Inventory Analysis Method uses people in a manner analogous to focus group. But instead of generating new ideas as in focus groups, consumers are provided with a list of problems in a general product category. People are asked to identify and discuss product s in this category that have the particular problem. Method is effective, since it is easier to relate known products to suggested problems and arrive at a new product idea than to generate an entirely new product idea by itself. Results from product inventory analysis must be properly evaluated, as they may not actually reflect a new business opportunity. To ensure results, problem inventory analysis should be used primarily to identify product ideas for further evaluation.

Creativity is an important attribute for entrepreneurs Creativity may decline with age, lack of use and education Latent creativity in person stifled by perceptual, cultural, emotional and organizational factors Ways to unlock creativity includes

Begins with group members not knowing the exact nature of the problem To avoid the solution being biased by preconceived ideas Entrepreneur starts by mentioning a general concept associated with a problem The group is to respond with a number of ideas Then a concept is developed, followed by related concepts through guidance by entrepreneur The actual problem is than revealed, and group is to make suggestions for implementation of the solution

Helpful in developing entirely new ideas to a problem First write a word/phrase related to problem Then another, and another, and so on, with each new word attempting to add something new to the ongoing thought process Create a chain process until a new product idea emerges

Each member of group keeps a notebook that readily fits in pocket, note always with person A statement of the problem is written in it Whenever an idea comes to mind, the idea is noted down: try to at least write 3 ideas per day. This is carried out for a month At months end, notebook is submitted to coordinator who summarises all the materials The summary becomes topics for focus group discussion

A trustful management that does not over-control staff Open channels of communication among all buiness members Considerable contact with outsiders A large variety of personality types A willingness to accept change An enjoyment in experimenting with new ideas Little fear of negative consequences for making mistakes The selection and promotion of employees based on merit Use of techniques that encourage ideas, including suggestion systems Sufficient financial, managerial, human, and time resources for accomplishing goals

Invention Creation of a totally new product, service or process One the is novel and untried These are mostly revolutionary Examples:

(i)Wright Brothers: Airplane (ii)Thomas Edison: Light blb (iii)Alexander Gaham Bell: Telephone

Extension Extension of a product, service or process already in existyence Make a diiferent application of a current idea Baby diapers modified for use by adults Examples: Ray Kroc: McDonalds Mark Zuckerberg: Facebook Barry Sternlicht: Starwood Hotels & Resorts

Duplication Replication of an already existing product, service or process Duplication process not simply copying but adding the entrepreneurs own creative touch to enhance or improve the concept and beat the competition Examples: (i) Wal-Mart: Departmental stores (ii) Gateway: Personal computers (iii)Pizza Hut: Pizza parlor

Synthesis Combination of existing concepts and factors into new formulation Involves taking a number of ideas or items already invented and finding a way that they can form a new application Examples: (i) Fred Smith; FedEx Howard Schultz: Starbucks

Be action oriented Make the product, service, process simple and understandable Make the product, service and process customerbased Start small Aim high Try/test/revise Learn from failures Follow a milestone schedule Reward heroic activity

Innovation is planned and predictable Technical specifications must be thoroughly prepared Innovation relies on dreams and blue-sky ideas Big projects will develop better innovations than small ones Technology is the driving force of innovation success