School Of Finance And Commerce
Course Code: BCOM1001 Course Name: Business Organization
Setting up business enterprise
Idea generation, creativity, innovation
Faculty Name: Vaishali Joshi Program Name:
Topics covered
• Introduction
• What is a good business idea
• Techniques for generating ideas
• What is creativity
• Reasons why people are motivated to be creative
• Steps involved in creative process
• Personality traits of creative people
• Barriers to creativity
• Innovation
• Types of innovation
• Steps involved in innovation process
What is a good business idea?
• What is a good business idea?
• Where should the entrepreneur
look for a new business idea?
What is a good business idea?
• A Good Business Idea
An invention, a product or service
A good business idea does not necessarily have to be
a unique product or service.
Could be just the exceptional execution of ordinary
idea..
What is a good business idea? Examples
• Develop ideas as an extension of an existing product
• Create an improved service (fast delivery services).
• Market a product at a lower price (via e-commerce e.g. [Link]).
• Add value to an existing product or service (i.e. reputable brand name or delivery service).
• Altering their quality or quantity.
• Introducing automation, simplification, convenience (i.e. smart product).
• Personal interests or hobbies
• Spot the latest trends.
• Changing the delivery method, packaging, unit size or shape.
• Increasing mobility, access, portability or disposability.
• Simplifying repair, maintenance, replacement or cleaning.
• Changing their colour, material or shape.
Techniques for generating ideas
• Brainstorming
• Focus groups
• Observations
• Surveys
• Emerging trends
• Research And development
Techniques for generating ideas
• Brainstorming
Brainstorming combines a relaxed, informal approach to problem solving with lateral thinking. It
encourages people to come up with thoughts and ideas that can, at first, seem a bit crazy. Some of
these ideas can be crafted into original, creative solutions to a problem, while others can spark even
more ideas.
• Focus Groups
A focus group is a group interview involving a small number of demographically similar people.
Their reactions to specific researcher-posed questions are studied. Focus groups are used in market
research and studies of people's political views.
Techniques for generating ideas
Observation: Probing questions like why do people buy product, do peole need something different in their
product?
Surveys This research technique requires asking people who are called respondents for information either
verbally or by using written questions. Questionnaires or interviews are utilised to collect data on the telephone
or face-to-face interview.
Emerging Trends: Spotting the latest trends
Research and Development: Researching new methods, skills and techniques enable entrepreneurs to
enhance their performance and ability to deliver better products and services.
Creativity
A process of assembling ideas by recombining elements already known but wrongly assumed to be
unrelated to each other. This definition has several key elements that are worth considering:
Process: Creativity is also a process (implying, among other things, that it is more like a skill than
an attitude, and that you can get better at it with practice).
Ideas: Creativity results in ideas that have potential value.
Recombining: The creative process is one of putting things together in unexpected ways.
Reasons why people are motivated to be creative
1. Need for novel, varied, and complex
stimulation.
2. Need to communicate ideas and values.
3. Need to solve problems.
Steps in creativity
1. Problem Recognition
2. Immersion
3. Incubation
4. Insight
5. Verification and Application
PERSONALITY TRAITS OF CREATIVE PEOPLE
• Persistence
• Self-confidence
• Independence
• Attraction to complexity
• Tolerance of ambiguity
• Intuitiveness
• Have broad interests
• Are energetic
• Drive to achieve
• Love their work
• Take risks
BARRIERS TO CREATIVITY
• Excessive focus on extrinsic motivation
• Limits set by superiors
• Critical evaluation
• Close, controlling supervision
• Competition in a win-lose situation
• Control of decision making
• Control of information
• Blindly following the rules
• Constantly being practical
• Becoming overly specialized
• Fearing looking foolish
• Fearing mistakes and failure
Innovation
Innovation is the implementation of new ideas
at the individual, group or organizational level.
• Process• Intentional: • Change• Value
Steps in innovation
1. Analytical planning
2. Resource organization
3. Implementation
4. Commercial
• TYPES OF INNOVATIONS
• There are four distinct types of innovation, these are as follows:
• Invention - Described as the creation of a new product, service or process.
• Something that has not been tried before.
• Extension - The expansion of an existing product, service or process. This
• would mean that the entrepreneur takes an existing idea and applies it
• differently.
• Duplication - Copying (replicating) an existing product or service and then
• adding the entrepreneurs own creative touch. In order to improve it.
• Synthesis - A combination of more than one existing products or services in to
• a new product. or service. This means that several different ideas are
• combined in to one new product or service.
References
• Chhabra, T.N. Business Organisation & Management, Sun India Publications,
New Delhi.
• Tulsian, P.C. Business Organisation & Management, Pearson Education, New
Delhi.
• Shankar, G. Modern Business Organisation, Mahavir Book Depot, New Delhi.
• Pic credit: [Link]
• Video credit: [Link]
