GENERATION, INCUBATION AND

COMMERCIALIZATION OF IDEAS
AND INNOVATIONS

Entrepreneurship Development and Industrial

Consultancy (DBM-421)

A K JHA
 Introduction
 A good idea decides the success to an
enterprise.
 Idea should be implementable
 It should be innovative
 Entrepreneur should be able to manage the
idea independently
 It is necessary to pursue/ think about at least five
to ten ideas initially and then select the most
promising idea among them.
 Sources of Ideas
1. Consumers : Entrepreneurs should focus on emerging
demands or unfulfilled consumer’s needs and wants.
2. Existing products : Systematically analyze the existing
products in the market to improve upon the existing
products to match with the consumer’s need.
3. Distribution channels : Channel members frequently
interact with the consumers and often know their hidden
needs. Thus they provide meaningful clue for developing
new products or modifying existing products.
4. Research and Development : R & D efforts by existing
organization, leads to new ideas for the organization.
 Methods of Generating Ideas
1. Focus Groups : Groups of individual providing information in
structured formats.
2. Brain Storming : A group method for obtaining new ideas and
solutions.
3. Problem inventory analysis : A method for obtaining new ideas and
solution by focusing on problems.
4. Creative problem solving : A method for obtaining new ideas
focusing on parameters.
5. Reverse Brain Storming : A group method for obtaining new ideas
focusing on the negative.
6. Synectics : A method for individuals to solve problem through one of
the four analogy mechanism : Personal, Direct, Symbiotic and
Fantasy
7. Gordon Method : A method for developing new ideas when the
individuals are unaware of the problem.
8. Check list method : Developing a new idea through a list of related
issues.
 Methods of Generating Ideas
10. Free Association : Developing a new idea through a chain of word
association.
11. Forced Relationships : Developing a new idea by looking at product
combinations.
12. Collective notebook method : Developing a new idea by group members
regularly recording ideas.
13. Heuristics : Developing a new idea through a thought process progression.
14. Scientific method : Developing a new idea through inquiry and testing.
15. Value analysis: Developing a new idea by evaluating worth of aspects of
ideas.
16. Attribute listing : Developing a new idea by looking at the positive and
negative attributes.
17. Matrix Charting : Developing a new idea by listing important elements on
attributes axes of a chart.
18. Big dream approach : Developing a new idea by thinking about
constraints.
19. Parameter Analysis : Developing a new idea by focusing on parameter
identification and creative synthesis.
 Product Planning and Development Process
Several ideas can be obtained by using the idea generation
method. After careful analysis and screening, potential ideas
are further developed into a final product or service. This is
carried out through product planning and development
process, which is divided into five stages.
1. Idea Stage : In this stage new product ideas are
generated and potential ideas are selected from among all
the generated ideas.
2. Concept Stage : At this stage product is not actually
produced but preliminary reactions are obtained from
prospective consumers. Based upon responses, the
product can be refined/ reformulated according to the
consumers need, or dropped.
 Product Planning and Development Process
3. Product Development stage : At this stage actual,
physical product is given to the consumer panel for
evaluation.
4. Test Marketing Stage : A market test can be carried out
to increase the probability of successful
commercialization. At this stage actual sales results are
obtained indicating the acceptance level of the
consumers. Based on the feedback from consumers
necessary improvements are incorporated in the product.
5. Commercialization : At this stage marketing department
carries out related promotional activities and production
department for mass production of the product.