Chapter 5
Creativity and The Business Idea
Sources Of Ideas For New Ventures
Consumers - Determine their wants/needs
Existing companies - See if there are ways to
improve upon products and services in the market
Distribution channels - Elicit suggestions from
channel members
The Federal Government
R & D - Conduct your own research &
development
Methods Of Generating New Ideas
Focus Groups - Group of individuals providing
information in a structured format is called a focus group.
The group is simulated by comments form other group
members in creatively conceptualizing and developing
new product idea to fulfill a market need
Brainstorming - A group method of obtaining new ideas
and solutions is called brainstorming. People can be
stimulated to greater creativity by meeting with others
and participating with organized group experiences.
Although most of the ideas generated from the group
have no basis for further development, often a good idea
emerges
Problem Inventory Analysis - Consumers are provided
with a list of problems in a general product category.
They are then asked to identify and discuss products in
this category that have the particular problem.
Creative Problem Solving
Reverse Brainstorming - Similar to brainstorming, but
criticism is allowed and encouraged as a way to bring out
possible problems with the ideas
Synectics - Synectics is a creative process that forces
individuals to solve problems through one of four analogy
mechanisms: personal, direct, symbolic and fantasy
Gordon Method - Gordon method is a method of
developing new ideas when the individuals are unaware of
the problem. In this method the entrepreneur starts by
mentioning a general concept associated with the problem.
The group responds with expressing a number of ideas
Creative Problem Solving
Checklist Method - Developing a new idea through a list of
related issues is checklist method of problem solving
Free Association Method - Developing a new idea through
a chain of word association is free association method of
problem
Forced Relationship - Forced relationship is the process of
forcing relationship among some product combination. It is
technique that asks questions about objects or ideas in an
effort to develop a new idea
Collective Notebook Method - It is method in which ideas
are generated by group members regularly recording ideas.
Creative Problem Solving
Heuristics - It is method of developing a new idea through
a thought process progression.
Scientific Method - This is a more structured method of
problem solving, including principles and rules for concept
formation, making observations and experiments, and finally
validating the hypothesis.
Value Analysis - Value analysis is developing a new idea by
evaluating the worth of aspects of ideas.
Attribute Listing - This is an idea finding technique that
requires the entrepreneur to list the attributes of an item or
problem and then look at each from a variety of viewpoints.
Creative Problem Solving
Matrix Charting - Matrix charting is a systematic method of
searching for new opportunities by listing important elements
for the product area along two axis of chart and then asking
questions regarding each of these elements
Big Dream Approach - Developing a new idea by thinking
about constraints is big-dream approach of problem solving
Parameter Analysis - Parameter analysis is developing a
new idea by focusing on parameter identification and
creative synthesis
Product Planning and Development
Once idea emerges from idea sources or creative
problem solving, they need further development and
refinement in to final product or service to be offered.
This refining process- the product planning and
development process – is divided in to five major
stages. Idea stage, concept stage, product
development stage, test marketing stage and
commercializing; it result in the product life cycle.
Product Planning and Development
At each stage of product planning and development
process, criteria for evaluation need to be
established. These criteria should be broad, yet
quantitative enough to screen the product carefully in
the particular stage of development. Criteria should
be developed to evaluate the new product in terms of
market opportunity, competition the marketing
system, financial factors and production factors. A
market opportunity and adequate market demand
must exist. Current competing producers, prices, and
policies should be evaluated in their impact on
market share.
Product Planning and Development
Idea Stage - Promising new product ideas should be
identified and impractical ones eliminated in the idea
stage allowing maximum use of company’s resources.
Concept Stage
In the concept stage the refined idea is tested to
determine consumer acceptance without manufacturing it.
Product Development Stage
Consumer panel can be given samples of the product and
competitors’ products to determine consumer preference.
Test Marketing Stage
The last step in the evaluation process, the test marketing
stage, provides actual sales results which indicate the
acceptance level of consumers.
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