3. Generation and Screening of Idea
Generation of project Idea:
Generation and screening of idea begins when someone with specialised knowledge or
expertise or some other competence feels that he can offer a product or service.
1.Which can cater to a presently unmet need and demand.
2.To serve a market where demand exceeds supply.
3.Which can effectively compete with similar product or service due to its better
quality/price.
An organisation has to identify investment opportunities which are feasible and
promising before taking a full fledged project .
4. Generally project ideas are generated depending on:
Consumer needs
Market demand
Resource availability
Technology
Natural calamity
SWOT analysis
Political considerations etc.,
The project idea selection is selection of project idea from available alternatives is to be best suited to the
entrepreneurs’ capacity, competence and willingness. The project Selection includes
Profitability
Feasibility
Resource-ability
Acceptability
5. Tasks involved in generation and screening of project idea
Generation of idea
Monitoring of the environment
Corporate Appraisal
Looking for project idea
Preliminary Screening
Project Rating index
Sources of Positive Net Present value
Entrepreneurial Skills
6.
7.
8.
9.
10. Idea screening
With your list of potential new product ideas, you now need to decide which ideas to pursue and which to
discard. Consider your competition, your existing products, their shortcomings, and the needs of your
market. Draw on the customer needs list you have developed, and the areas for product improvement you
have identified.
Develop a set of criteria to evaluate your ideas against. Your criteria might include:
most prominently identified customer needs
product improvements most needed
the benefits to your target market
the technical feasibility of the idea
the level and scope of research and development required
11. the profitability of the idea. What is its potential appeal to the market? How would you price it? What are
the costs in bringing it to market — overall and per unit?
where the product fits in the market. Is there a gap? How close is it to competitor products?
the resources it will require in development
the marketing potential of the idea
the fit with your business profile and business objectives.
