2.

0 Innovation and the business idea

Entrepreneurship and Project
Planning

Manipal College of Health

Professions
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
 Importance of Entrepreneurship

▪ Keeping the above in mind, let us take a look at the seven key importance of entrepreneurship:
▪ 1. Entrepreneurs are Innovators
▪ With the rapid growth in technology, many occupations don’t exist anymore. For instance,
remember the elevator attendant or the movie film projectionist?
▪ 2. Entrepreneurs create jobs
▪ The importance of entrepreneurship can be understood by the number of jobs that are created once
entrepreneurs launch new businesses. These establishments become the source of job creation.
▪ 3. Entrepreneurs improve the standard of living
▪ They start a new organization and create employment. When new employees are hired, they are
remunerated, and this income is spent in the local economy.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ 4. Entrepreneurs are Philanthropists
▪ One of the most highlighted importance of entrepreneurship is the nature to give back to the
community.
▪ 5. Entrepreneurs introduce changes in the community
▪ Entrepreneurship benefits the local community and society. The new company hires employees
who earn an income to spend at local stores.
▪ 6. Entrepreneurship leads to economic growth
▪ Entrepreneurship is a process that starts with new businesses making money for civilization.
▪ 7. Entrepreneurs support other entrepreneurs
▪ Some entrepreneurs move on to also become mentors and consultants. This is because they have a
passion for their business and like to guide aspiring innovators on their path to success.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Why do entrepreneurs need creativity?

▪ Creativity allows a person to devise interesting processes, which gives so many

advantages to entrepreneurs.
▪ Creativity leads to success of entrepreneur’s work life by:
▪ 1. Creating new ideas for competitive advantage: The ability to explore different
niches is just like a learned skill or a resource that is possessed by an individual.
▪ 2. Thinking of novel ways to develop your product and improve the business:
Creativity helps develop new ways of improving an existing product or service and
optimizing a business.
▪ 3. Thinking the unthinkable: Imagination is needed to cross the boundaries and to
think outside the box.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ 4. Finding similar patterns in different areas: Creativity enables people to connect dissimilar
and unrelated subjects and make successful entrepreneurial ideas.
▪ 5. Developing new niches through creativity and entrepreneurship.
▪ How are entrepreneurship and creativity linked?
▪ In today’s world, products are manufactured and exported to international markets.
▪ As a result, there is easier access to every product, everywhere.
▪ The consumer has access to various kinds of products ranging in type and quality.
▪ Creativity helps us think of how to improve existing business practices.
▪ A creative mind is like an artist who creates new and exciting patterns on canvas.
▪ Creativity can come up with the most unthinkable ideas and bring innovation into existing
practices.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 The role of creativity in entrepreneurship

▪ Creativity eliminates the limits to the mindset and skill set of an investor.
▪ Over time, creativity has become an integral component of good business acumen. Lack of
creativity could easily drag your business into the stagnation mode.
▪ High overall success: dynamics are changing, and entrepreneurs are beginning to realize the
importance of bringing creative people on board.
▪ Increase productivity: Creativity allows an entrepreneur to disconnect from the accustomed and
move into uncharted territories with an aim to discern unique and useful solutions.
▪ Exploit employee potential:
▪ Transcend boundaries: Creativity enables entrepreneurs to find some of the path-breaking
discoveries.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Encourage critical thinking: Creativity is slowly turning out to be one of the best ways to alleviate problems
plaguing today’s enterprises.
▪ Foster innovation: This is the time an entrepreneur begins to realize how innovation and invention differ. The
invention refers to a new, unique concept while innovation is an idea which is as unique and useful as the
original one.
▪ How Entrepreneurs can use Design Thinking
▪ Redefining problems, understanding the challenges faced by users, and coming up with an innovative solution is
known as the design thinking process.
▪ It is a solution-based approach, and can be looked at as ‘thinking out of the box’. As an entrepreneur, it is crucial
to understand the market and learn whether your product or service will be helpful to the customers or not.
▪ Companies such as Apple, Adidas, Airbnb, and PepsiCo have outperformed all thanks to design thinking. Let us
try to understand how design thinking can help you as an entrepreneur.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Why do entrepreneurs need design thinking?

▪ A majority of the entrepreneurs that get effective growth have added innovation in their business.
▪ 1. Long-term strategy planning: As an entrepreneur, it is important as part of your long term planning and
business strategy to consider these aspects as well. In the design thinking process, we often ask questions about
how one might be able to solve these problems in the future.
▪ 2. Allows divergent thinking : Design thinking follows an approach that allows divergent and convergent
thinking. This is typically associated with imaginative thinking, originality, curiosity, and exploring various
possible outcomes.
▪ 3. Incorporate a process model :Incorporating a design thinking process can help you track and measure your
progress and outcomes. It also allows you to evaluate feedback from various entrepreneurial activities
▪ 4. Be curious and observe: Design thinking is all about observation. Being curious as to how things are, why
they are a certain way, and trying to come up with solutions to this curiosity is what makes you as an
entrepreneur very unique.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 5 Stages in the Stanford’s Design Thinking Model

▪ Design Thinking is a design methodology that provides a solution-based approach to solving

problems. It’s extremely useful in tackling complex problems.
▪ 1. Empathise: This involves consulting experts to find out more about the area of concern
through observing, engaging and empathizing with people to understand their experiences and
motivations
▪ 2. Define (the Problem): This will help the designers in your team gather great ideas to establish
features, functions, and any other elements that will allow them to solve the problems or, at the
very least, allow users to resolve issues themselves with the minimum of difficulty.
▪ 3. Ideate: Brainstorm and Worst Possible Idea sessions are typically used to stimulate free
thinking and to expand the problem space. It is important to get as many ideas or problem
solutions as possible at the beginning of the Ideation phase.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ 4. Prototype: the design team will have a better idea of the constraints inherent to the product and
the problems that are present, and have a clearer view.
▪ 5. Test: Designers or evaluators rigorously test the complete product using the best solutions
identified during the prototyping phase.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 What is Idea Generation? – Definition, Techniques and
Success Factors
▪ Ideas are the key to innovation. Without them, there isn't much to execute and because execution is
the key to learning, new ideas are necessary for making any kind of improvement.
▪ Idea generation is described as the process of creating, developing and communicating abstract,
concrete or visual ideas.
▪ It has, however, been shown that brainstorming not only takes more time and leads to less ideas,
but also worse ideas than if the same participants had just tried to come up with ideas by
themselves.
▪ There are several other reasons why brainstorming may not be the best way to come up with
ideas. Scheduling, organizing and documenting the session in a usable format will all take up even
more time.
▪ Idea challenge is a focused form of innovation where you raise a problem or opportunity with the
hopes of coming up with creative solutions.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ The SCAMPER technique is created by Bob Eberle, and is a method used for problem-solving and creative thinking. It’s a holistic way of applying
critical thinking to modify ideas, concepts or processes that already exist.
▪ 1. Substitute – Substitution technique refers to replacing a part of your product, concept or process with another to achieve even better outcome.
▪ 2. Combine – The combine technique explores the possibility to combine two ideas into a single, more effective solution.
▪ 3. Adapt – Adaptation analyses the possibilities to make the process more flexible and focuses on other similar incremental improvements to the idea,
process, or concept.
▪ 4. Modify – Modifying the idea looks at the problem or opportunity from a bigger perspective and aims for improving the overall results, not just the
idea.
▪ 5. Put to another use – This approach focuses on finding ways to use the idea or existing solution for another purpose and analyses the possible
benefits if applied to other parts of the business.
▪ 6. Eliminate – The elimination technique is quite straightforward: it examines the possible outcomes if one or more parts of the concept were
eliminated.
▪ 7. Reverse – This action focuses on reversing the order of interchangeable elements of an idea.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Opposite/reverse thinking is a technique that can help you question long-held assumptions
related to your business. It’s a useful tool to consider if you feel your team is stuck with the
conventional mindset and coming up with those “out-of-the-box ideas” seems to be difficult.
▪ Brainstorm cards are a useful tool created by the Board of Innovation for coming up with dozens
of new ideas related to whatever challenge or problem you are currently working with. Brainstorm
cards help you consider external factors such as: societal trends, new technologies, and regulation
in the context of your business.
▪ Analogy thinking is a technique for using information from one source to solve a problem in
another context. Often one solution to a problem or opportunity can be used to solve another
problem.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Succeeding with Idea Generation

▪ Before engaging more people to use these tools and techniques for generating more ideas, there are
a few more tips that can help you get more out of your ideation methods
▪ Define the problem or opportunity
▪ Involve the right people
▪ Set constraints
▪ Conclusion

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Some of the important sources for getting new business ideas are
as follows:

▪ There are many places to start searching for ideas. Sometimes, it is an on going process where we
are generally on the lookout for great new ideas.
▪ 1. Past Work Experience:
▪ 2. Hobbies and Interests:
▪ 3. Strengths and Abilities:
▪ 4. Friends and Family:
▪ 5. Distribution Channels:
▪ 6. Travel:
▪ 7. Books and Magazines:
▪ 8. Current Trends:
▪ 9. Research Organizations:
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 The Three Stages of Successful Ideation

▪ Stage #1: Generation: The majority of companies can easily identify these kinds of needs – the
main decision is whether they contribute to an ideation approach. After problem-solving, come two
other key chances for utilizing ideation: core competencies and consumer insights.
▪ Stage #2: Selection: Picking the best ideas for an online business starts much before the beginning
of the ideation process
▪ Stage #3: Implementation: The success of implementation is dependent on an organization’s
ability to choose the top ideas and take action based on them. It also depends on the organization
having appropriate workflows in place so that the right groups take part at the appropriate time in
the three steps of the ideation process.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 What is creative problem-solving?

▪ Creative problem-solving involves approaching a problem or a challenge in an inventive way. It is

a process that redefines problems and opportunities and helps us come up with innovative
solutions.
▪ Generally, the creative problem-solving process involves the following stages:

▪ Identify the problem or the challenge

▪ Generate ideas that may be possible solutions
▪ Solve the problem with the help of generated ideas
▪ Implement the solution plan and move to the next step

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Techniques of creative problem-solving

▪ Brainstorming is one of the most popular techniques of creative problem-solving. When the city’s
municipal corporation needs to come up with measures regarding safety and health, citizens are
often asked to brainstorm and suggest innovative ideas.
▪ Mind-mapping is a graphic representation of ideas and concepts. It is a visual tool for creativity
and problem-solving. Mind maps help you categorize and structure information.
▪ Counterfactual thinking is one of the smartest examples of creative problem-solving at work.
However, it is important not to channel negative emotions while going down the counterfactual
thinking route.
▪ Abstraction is a great booster for creativity and problem-solving. When a creative director in an
advertising agency has to design a campaign for a brand of fruit drinks or evening wear, he uses
abstraction.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Innovation is about the process and organization needed to generate ideas in any context.”
▪ The ability to innovate in this sense isn’t just a vital component of a thriving business, but can be
seen as an essential aspect of entrepreneurship itself.
▪ what does it take to be an innovative entrepreneur?

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 what does it take to be an innovative entrepreneur?

▪ While many have wondered whether or not innovation and entrepreneurship

are skills that can be practiced and learned, our professors trust that they can.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: