Zubair Ahmad

Entrepreneurship

Assignment

Presented by: Zubair Ahmad

Presented to: Sajid Hameed Mufti

Specialization: MBA-HRM

Reg-No. : 1732-109013
 Zubair Ahmad

Entrepreneurship

Contents:

 CREATIVITY AND THE BUSINESS IDEA

 METHODS OF GENERATING NEW IDEAS
 CREATIVE PROBLEM SOLVING
 PRODUCT PLANNING AND DEVELOPMENT PROCESS
 Zubair Ahmad

Entrepreneurship

CREATIVITY AND THE BUSINESS IDEA

METHODS OF GENERATING NEW IDEAS
Even with the wide variety of sources available, coming up with an idea to serve as the
basis for the new venture can still be a difficult problem. The entrepreneur can use
several methods to help generate and test new ideas, including focus groups, brain
storming and problem inventory analysis.

Focus groups
Group of individuals providing information in a structured format is called a focus group.
The group of 8 to 14 participants 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. The
brainstorming method for generating new ideas is based on the fact that people can be
stimulated to greater creativity by meeting with others an d 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

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Entrepreneurship

Problem inventory analysis uses individuals in a manner that is analogous to focus groups
to generate new product ideas. However instead of generating new ideas themselves,
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. This method is often effective since it is easier to relate known products to
suggested problems and arrive at a new product idea then to generate an entirely new idea
by itself.

CREATIVE PROBLEM SOLVING

Creative problem solving is a method for obtaining new ideas focusing on the parameters.

Brainstorming
The first technique, brainstorming, is probably the most well known and widely used for
both creative problem solving and idea generation. It is an unstructured process for
generating all possible ideas about a problem within a limited time frame through the
spontaneous contribution of participants. All ideas, no matter how illogical, must be
recorded, with participants prohibited from criticizing or evaluating during the
brainstorming session.

Reverse brainstorming
Similar to brainstorming, but criticism is allowed and encouraged as a way to bring out
possible problems with the ideas.

Synectics
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Entrepreneurship

Synectics is a creative process that forces individuals to solve problems through one of
four analogy mechanisms: personal, direct, symbolic and fantasy. This forces participants
to consciously apply preconscious mechanisms through the use of analogies in order to
solve problems.

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.

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.

Heuristics
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Entrepreneurship

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.

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 PROCESS

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Entrepreneurship

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.

Establishing evaluation criteria

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. The new product should be
compatible with existing management capabilities. The product should be able
to be supported by and contribute to the company’s financial structure. The compatibility
of new product’s production requirements with existing plant, machinery, and personnel
should be determined. Entrepreneurs should formally evaluate an idea throughout its
evolution.

Idea Stage
Promising new product ideas should be identified and impractical ones eliminated in the
idea stage allowing maximum use of company’s resources. In the systematic market
evaluation checklist method, each new product idea is expressed in terms of its chief
values, merits, and benefits. This technique can be used to determine which new products
should be pursued. The company should also determine the need for the new product and
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Entrepreneurship

its value to the company. Need determination should focus on the type of need, its timing,
the users involved, the importance of marketing variables, and the overall market
structure and characteristics. In determining the product’s value to the firm, financial
scheduling should be evaluated.

Concept Stage
In the concept stage the refined idea is tested to determine consumer acceptance without
manufacturing it. One method of testing is the conversational interview in which
respondents are exposed to statements that reflect attributes of the product. Features,
price, and promotion should be evaluated in comparison to major competitors to indicate
deficiencies or benefits. The relative advantages of the new product versus competitors
should be determined.

Product Development Stage

In this stage, consumer reaction is determined, often through a consumer panel. The panel
can be given samples of the product and competitors’ products to determine consumer
preference. Participants keep the record of their use of product and comment on its
virtues and deficiencies. The panel of consumers is also given a sample of product and
one or more competitive product simultaneously. One test product may already be on the
market, whereas the other test product is new.

Test Marketing Stage

Although the results of product development stage provide the basis of the final
marketing plan, the market test can be done to increase the certainty of successful
commercialization. The last step in the evaluation process, the test marketing stage,
provides actual sales results which indicate the acceptance level of consumers.

References:
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Entrepreneurship

Entrepreneurship 7th edition Hisrich-Peters-Shepherd.

Entrepreneurship notes by Virtual University.

www.entrerepenerur.com

blog.entrepreneur.com