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Entrepreneurship 8th Edition

Author: Robert D Hisrich, Micheal P. Peters Dean a Shepherd

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Creativity & Innovation

Creativity is the ability to develop new ideas and to discover new ways of looking at problems & opportunities

Innovation is the ability to apply creative solutions to those problems & opportunities to enhance or to enrich peoples lives Innovator

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Creativity = Ideas
Creativity involves generating something from nothing

Creative ideas springs up from the most unexpected places

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Edwin Land, one of Americas most prolific inventors, credits his three year old daughter with the idea of the Polaroid instant camera

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What an idea!!!!

But not valued in Business until implemented!!!

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Innovation = Ideas + Action

Entrepreneurship is the result of a disciplined, systematic process of applying creativity & innovation to needs & opportunities in the marketplace Millions of people come up with creative ideas for new or different products & services; most of them, however, never do anything with them Entrepreneurs are those who connect their creative ideas with the purposeful action & structure of a business Thus successful entrepreneurship is a constant processBZUPAGES.COMcreativity, that relies on

3000 new product ideas, 4 make it to development stage, 2 are actually launched & only ONE becomes a success in the market

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Creativity should be accompanied with Innovation!!

Entrepreneurs succeed by thinking and doing new things or old things in new way Having a great new idea is not enough; transforming the idea into a tangible product, service or business venture is the essential next step

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Trends Green Trend

Clean-Energy Trend

Organic-Orientation Trend
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Trends (continued)

Social Trend

Health Trend

Web Trend
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Sources of New Ideas

Consumers.

(1 of 2)

Existing Companies

Distribution channels
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Sources of New Ideas

Federal government

(2 of 2)

Research and development

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Methods of Generating New Ideas Focus groups

number of group members from 6-12 Moderator focuses discussion of the group in a directive or nondirective manner. Co. womens slipper-concept of warm & comfortable slipper thats fits and old shoe 12 women focus group An excellent method for initially screening ideas and concepts.

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Brainstorming
A Group method for obtaining new ideas & solutions

4 Rules should be followed 1.No criticism is allowed by anyone in the group 2.Freewheeling is encouraged-wilder the idea the better 3.Quantity of ideas is desired- greater the no. of ideas the greater the likelihood of the emergence of useful ideas 4.Combinations and improvements of ideas are Brainwriting is similar of others can be used to encouraged- ideas to Brainstorming produce still another new idea
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Focus group and brainstorming is different in the sense that FG is structured or moderated...while BS is not a debate or discussion like that....its people giving lots of ideas without criticism allowed
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Methods of Generating New Ideas

2)

(2 of

Problem inventory analysis

Consumers associates particular problems with specific products & then develop a new product that do not contain the identified fault

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Problem inventory analysis (continued)

Instead of generating new ideas themselves consumers provided with list of problems in general product category Then asked to identify & discuss products in this category that have particular problem Effective method since its easier to relate known products to suggested problems & arrive at a new product idea than to generate an entirely new product idea by itself Results must be carefully evaluated as they may BZUPAGES.COM

Creative Problem Solving

Creativity: an important attribute of a successful entrepreneur.

Creativity tends to decline with:

Age, education, lack of use, and bureaucracy.

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Creative Problem-Solving Techniques

<<Insert Table 5.2>>

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Creative Problem-Solving Techniques

(1 of 3)

Brainstorming
Used in creative problem solving and idea generation. Creative problem solving: a method for obtaining new ideas Spontaneous contribution of participants Problem statement-neither too broad nor too narrow Avoid inhibiting responses NO group member should be expert in field of problem Ideas even if illogical, must be recorded Prohibit criticizing OR evaluating during BS BZUPAGES.COM

 Reverse brainstorming

A group method for obtaining new ideas focusing on the negative. Finding fault by asking questions in how many possible ways can the idea flop Maintain group morale Stimulate innovative thinking Often involves identification of everything wrong with an ideafollowed by discussion how to overcome these problems
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 Brainwriting Form of written brainstorming. It is a silent, written generation of ideas by a group of people. This sheet can b passed around on e-mail as well Pass the sheet around reach its owner The only thing wrong with it is that there is no excitement of
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Creative Problem-Solving Techniques

(2 of 3)

Gordon method

Method for developing new ideas when the individuals are unaware of the problem. u dont give away too much detail about the problem headline would be i wish there was something v cud do about the bad colors in my TV screen Or Latest trends in fashion world
Checklist method
Developing a new idea through a list of related issues. BZUPAGES.COM

Product Planning & Development Process Establishing Evaluation Criteria

Criteria for evaluation need to be established at each stage of the product planning and development process. Criteria should be:
All inclusive and quantitative to screen the product carefully. Established to evaluate the new idea in terms of:
Market opportunity Competition Marketing system Financial factors Production factors. BZUPAGES.COM

Need for the product idea must exist Characteristics & attitudes of consumers Market opportunitymight buy the product, size & nature of that market Share of that market that product could competing producers, prices, & marketing policies capture should be evaluated Product should be able to compete successfully with Competition products already on the market by having New product should overcome current or features that will meet or be compatible with existing management capabilities & anticipated competition marketing strategies Firm should be able to use its marketing Marketing system experience & other expertise in this new product effort Example: GE would have less difficult time adding ashould be able to be supported by & product new kitchen appliance to its line than P&G contribute to Co. financial structure Break Financial factors even point & Long term profit outlook for product new product idea cannot be integrated into if the need to be determined

Production

existing manufacturing processes, not only is the new factors. positive- but new plan & production cost idea is less BZUPAGES.COM plant space need to be determined

Product Planning and Development Process

Divided into five major stages:
Idea stage. Concept stage. Product development stage. Test marketing stage. Commercialization.

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The Product Planning and Development Process (1 of 3)

<<Insert Figure 5.6>>

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The Product Planning and Development Process (2 of 3)

Idea stage
Promising new product/service ideas should be identified. Impractical ones eliminated. Evaluation method systematic market evaluation checklist.

Concept stage
Refined idea is tested to determine consumer acceptance. Consumer acceptance can be measured through the conversational interview method. BZUPAGES.COM

The Product Planning and Development Process (3 of 3)

Product development stage
Determines consumer reaction to the physical product/service. A tool frequently used consumer panel. Consumer preference is determined through:
multiple brand comparisons, risk analysis, level of repeat purchases, or intensity of preference analysis.

Test marketing stage

Increases certainty of successful commercialization. Provides actual sales results, which indicate the acceptance level of consumers. Positive test results indicate probability of successful product launch

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E-commerce and Business Start-up

E-commerce offers entrepreneurs an opportunity to be creative and innovative. Factors that facilitate a high-growth in electronic commerce:
Widespread use of personal computers. Adoption of intranets in companies. Acceptance of the Internet as a business communications platform. Faster and more secure systems.

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Using E-Commerce Creatively

Entrepreneurs starting an Internet commerce venture need to address the same strategic and tactical questions as Internet operationsany other entrepreneur. Entrepreneurs have to decide to:

Run Internet operations within the or Outsource these operations to Internet specialists.

company primary business Availability of resources company, web professional

Another option is to use the packages for

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Components of Internet Commerce

Two major components of Internet commerce are:
Front-end operations. Back-end operations.

Integration of front-end and back-end operations

represents the greatest challenge for doing Internet mistake The biggestbusiness. of many companies provides the opportunity for developing on the internet is believing that an a sustained competitive advantage. BZUPAGES.COM

attractive & interactive website will secure success- leads to underestimating

Web Sites- connection btw Co & its Indicat or of Customers professio legitim

nal acy design Shoppin Web g cartKeys to a good Web site: design er Ease of use ( info product /servicescredit ) card Structure and organization of information payment Secure s Visibility servers Search capability https Advertise E-mail response system search Speed. engines, banner ads, Technical aspects email Should work properly in different browsers and Secure platforms. servers Should appear in all marketing materials. https

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Tracking Customer Information

Database:
Tracks activity of the:
Industry. Segment. Company.

Supports personal marketing targeted at individual clients.

Should be able capture customer attention with customized one-to-one marketing.

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Doing E-Commerce as an Fresh Entrepreneurial fruits & Company

To do business through the Internet:

vegitable s?

Products should be delivered economically and conveniently. Products need to interest a wide market
Company must be ready to ship the product outside its own geographical location.

Online operations have to bring significant cost reductions-as compare to brick & mortar operation Company must possess the ability to economically draw customers to its Web site.

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Summary
Starting point successful Co.product/Service they offer Sources of ideas ranges comments of consumers TO changes in Govt regulations Monitoring comments of Consumers Evaluating new products offered by competitors Familiar with the ideas contained in previously granted patents

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 Becoming actively involved in R&D Specific techs entrepreneur use to generate ideas

Focus group-BrainstormingProblem inventory analysis

After idea generation the planning and developing process begins Large number ideas screened/ evaluated Potential ideas moved- concept, product development, test marketing, commercialization stage
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