Spotting Business Idea: Ideation & Innovation

Lesson 4
 Objectives
At the end of the lesson, the students should be able to:
• Name some known entrepreneurs and investigate their
profiles and their success stories.
• Craft their own business idea
“To accomplish great things, we must not only act but also
dream; not only plan but also believe.”
by Anatole France
 The Concept of Innovation

Innovation refers to the process of translating ideas into

goods or services.
 2 Faces of Innovation
• Disruptive Innovation - are those that open up a new
segment in the market, which early adopters jump on first
to be followed by the general consumer audience.
• Incremental Innovations - are those that is composed of a
series of small improvements to an existing product or
product line that usually help maintain or improve its
competitive position over time.
 Instruments or Methods of Innovations
• Invention - refers to the discovery or devising a new
products and processes.
• Development - refers to the processes by which ideas
and principles generated from the stage of invention are
embodied in concrete products and techniques.
• innovation - refers to the actual introduction of a new
product or process.
 Impacts of Innovation
• Effecting a new Policy
• Finding new opportunities
• Designing a new structure
• Devising a fresh method
 IDEATION
• is the act or process of forming ideas or images in one's
mind.
• Accdg to Medina, a sound business idea refers to
economic opportunities that is within the reach of the
entrepreneur and that will provide him with a desirable
value.
 Methods of Searching for Ideas
1. Unanticipated Means
1.1 The person’s work
1.2 The person’s hobby
1.3 The person’s acquaintance
• A chance event encountered by the person
2. Deliberate Search - this method is done intentionally by the
prospective entrepreneur or existing businessmen wanting to have a
competitve advantage over his competitors.
2.1 Using Search questions
2.2 Idea prompting
 Screening of Listed Ideas
• Feasibility Study - is conducted to tests the viablity of an
idea, a project or even a new business.
• Feasibility Study also allow a business to address where
and how it will operate, potential obstacles, competition
and the funding needed to get the business up and
running.
 Aspects of Feasibility Study
• Market Feasibility - describes the industry, the current and future
market potential, competition, sales estimations and prospective
buyers.
• Organizational Feasibility - it describes how the business will be
organized by the entrepreneur, its forms of organization, and the
manpower requirements of the proposed business.
• Technical Feasibility - refers to the analysis of the production
requirements in converting resources into real products or
services with the required quality and quantity and how these will
be delivered to the customers. it also includes the cost in
producing the business goods or services.
 Aspects of Feasibility Study

• Financing Feasibility - deals with the determination of the

sufficiency of capital and possible sources of financial capital.
• financial Feasibility - deals with the determination and
construction of projected financial statements to determine the
profitability of the business
 Final Selection of Ideas
• The main goal of conducting a feasibility study or
screening business ideas is to emphasize potential
problems that could occur if one pursues a project and
determine if, after all significant factors, the project is a
good idea.
After screening the idea will lead any of the
following:
• Status quo - means all business ideas generated and
screened passed the criteria.
• Short list - means that not all business ideas are found
feasible thus, eliminated from the list.
• Zero List - means that no idea is able to pass the criteria
set by the entrepreneur.
 Top 12 Local Entrepreneurs
• Henry Sy (Shoe Mart) ...
• Tony Tan Caktiong (Jollibee Foods) ...
• Socorro Ramos (National Book Store) ...
• John Gokongwei Jr. (J.G Holdings)
• Edgar Sia (Mang Inasal) ...
• Mariano Que (Mercury Drug) ...
• Cresida Tueres (Greenwich Pizza) ...
• Cecilio Kwok Pedro (Lamoiyan Corporation)
• Alfredo M Yao (Zest-O)
• Gregorio G Sanchez Jr (LactoPAFI)
• Joe Magsaysay (Potato Corner)
• Milagros, Clarita, and Doris Leelin (Goldilocks)