Idea generation

1. UNIT II
S S PRAJAPATI

2. S S PRAJAPATI
Idea generation Process

3. S S PRAJAPATI
Idea generation Process
As the great philosopher Seneca said once, the best ideas
are common property. You don’t have to come up with a crazy new
invention or a new life-changing product or service to be an
entrepreneur. Sometime it is the matter of improving the design
and the concept. !e secret here is to do things bigger, better, faster
and more efficiently than others.
Without an idea, you won’t have a business. But having an idea
doesn’t mean you’re on to be a winner either. You have to realize
the idea. !at requires hard work, determination, and pushing
yourself both physically and mentally

4. S S PRAJAPATI
Aspirants can generate ideas in a
number of key venture areas like
1. New Product
2. New Services
3. New Technologies
4. New Combination of existing and budding ventures.
5. New Sources of supply
6. New Markets and segments

5. S S PRAJAPATI
Idea generation Process
Without an idea, you won’t have a business. But having an idea
doesn’t mean you’re on to be a winner either. You have to realize
the idea. !at requires hard work, determination, and pushing
yourself both physically and mentally

6. S S PRAJAPATI
Idea generation Process
Faced with complex, open-ended, ever-changing challenges,
new idea and innovation are a must to stay ahead of the
competition.
Often, though, we make the mistake of assuming that good ideas
just happen. Or we get caught into the mind trap that creativity is
an aptitude; some people have it, others don’t. !en there is the
other self-defeating belief – “I am not intelligent enough to come
up with good ideas.” !ese assumptions are rarely true. Everyone can
come up with fresh, radical ideas – you just need to learn to open
your mind and think differently

7. S S PRAJAPATI
Idea generation Process
1.
•Idea Generation
2
•Why Does the innovation
process needs Idea
3
•Stages from Idea generation to
Idea Implimentation

8. S S PRAJAPATI
Idea generation Process
Without an idea, you won’t have a business. But having an idea
doesn’t mean you’re on to be a winner either. You have to realize
the idea. !at requires hard work, determination, and pushing
yourself both physically and mentally

9. S S PRAJAPATI
Idea generation Process
“The process of creating, developing and comminicating ideas
which could be abstract concrete, or visual”.
“The Process Includes the process of constructing through the idea,
innovating the concept, developing the process and bringing the
concept to reality.”
Idea generation Means:

10. S S PRAJAPATI
Idea generation Process
1. Invent something new
2. Reproduce someone else’s idea with improvement
3. Spot a gap in the market/Answer an unfulfilled need
4. Use your own skills and interests
Research has shown that there are four main sources for generating
business ideas :

11. S S PRAJAPATI
Idea generation Process
1. Start thinking! Get your brain to work
2. Buy a notebook
3. Follow your passion
4. Keep your eyes open
5. Capitalize on your strengths
6. Explore new things
7. Check your bank account
8. Know what you want in life
9. Choose a business that suits your personality
10. Read about people who started their own business
10 Steps to generating idea for successful VENTURE

12. S S PRAJAPATI
Idea generation Process
• Observe needs of people, market
• Observe business of other people, you could improve those
• Your experiences with people as customer
• Read advertisements in newspapers, magazines
• Look at a product or service, and apply it to a different industry
or setting
• Use the gap analysis technique
Observe things around

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Idea generation Process
• Ideas are a core part of the innovation process.
• Each innovation begins with an idea.
• New ideas are the wheel of progress.
• Ideas are the raw material for product development.
• All the current products and services were once an idea in
someone’s mind.
• Steven Covey (2004) calls an idea the “first act of creation
where as the second act of creation is the deed of putting an
idea into a physical form.”
Why Does ! Innovation Process Need Ideas?

14. S S PRAJAPATI
Idea generation Process
•Idea to solve problems
•Ideas to help people
•Ideas to save and fix and create things
•Ideas to make things better and cheaper, and
•Ideas to enlighten, excite, enthuse, enrich, and encourage.
Jack Foster (1996) discusses a variety of ideas like

15. S S PRAJAPATI
Idea generation Process
Mark Fritz eloquently demonstrated the value of ideas in his quote
“The wheel, the printing press, the light bulb, penicillin, the
transistor, and every other great human invention, discovery, or
social advance started with a basic idea”.
Value of Ideas:
“An idea is nothing more nor less than a new combination of old
elements” According to Francis H. Cartier, “there is only one way in
which a person acquires a new idea: by the combination or
association of two or more ideas he already had into a new
juxtaposition in such a manner as to discover a relationship
amongst them of which he was not previously aware”.

16. S S PRAJAPATI
Idea generation Process
Mark Fritz eloquently demonstrated the value of ideas in his quote
“The wheel, the printing press, the light bulb, penicillin, the
transistor, and every other great human invention, discovery, or
social advance started with a basic idea”.
“An idea is nothing more nor less than a new combination of old
elements” According to Francis H. Cartier, “there is only one way in
which a person acquires a new idea: by the combination or
association of two or more ideas he already had into a new
juxtaposition in such a manner as to discover a relationship
amongst them of which he was not previously aware”.

17. S S PRAJAPATI
Idea generation Process
C. Stages from Idea Generation to Idea Implementation.

18. S S PRAJAPATI
Idea generation Process
C. Stages from Idea Generation to Idea Implementation.

19. S S PRAJAPATI
Idea generation Process
C. Stages from
Idea Generation
to Idea
Implementation.

20. S S PRAJAPATI
Idea generation Process
C. Stages from Idea Generation to Idea Implementation.
Innovation is a process from Ideation to Implementation of idea.

21. S S PRAJAPATI
1. Which are the steps to generate New Ideas for successful
venture?
2. Explain the process of framing ‘Basic Business Idea’ and how
innovation will be helpful in formulating business proposals.
3. Define business idea. Elaborate the problems & opportunities
for an entrepreneur
4. What are the stages from Idea generation to Idea
implementation?
Questions

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Product Identification

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“... Our best business missions are based on those ideas that often
emerge out of our deepest personal motivations and interests.”
-Warren Avis in “Take a Chance to Be First”

24. S S PRAJAPATI
ideas need to be filtered through a multi-layer screen. !is model is
shown in the following flow.
• Does the idea fire up your motivation?
• Is it viable business proposition in our area.
• Does it match the need of our clientele?
• Check it out with basic market research.
• Test it out at market place.
• Consult with the experts
• Look out for competition in the field
• Project conceptualization

25. S S PRAJAPATI
Once the ideas are screened and a viable business opportunity
emerges the project has to be conceptualized in all its dimensions.
The 4 Ps of Project Conception are :
• PRODUCT (Shape, Size and Nature) / SERVICE (Type)
• PROCESS (Technology to produce the product)
• PLACE (Location of Plant)
• PARTNER (Technological or Financial Collaborator)

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Making
A Product
/
Service Choice

28. S S PRAJAPATI
New product / service development
• It is the complete process of bringing a new product / service to the
market.
• A product is a set of benefits offered for value addition and can be
tangible (that is, something physical you can touch) or intangible (like a
service, experience, or belief).
• There are two parallel paths involved in the new product
development process:
one involves the idea generation, product design and detailed
engineering;
the other involves market research and marketing analysis.

29. S S PRAJAPATI
•Ideas for new products can be obtained from basic research using a
SWOT analysis (Strengths, Weaknesses, Opportunities & Threats).
•Market and consumer trends, competitors, trade shows, or
ethnographic discovery methods (searching for user patterns and
habits) may also be used to get an insight into new product lines or
product features.

30. S S PRAJAPATI
Stages
1 Idea Screening.
2 Concept Development and Testing
3 Business Analysis
4 Market Testing
5 Technical Implementation
6 Commercialization
7 New Product Pricing

31. S S PRAJAPATI
• Will the customer in the target market benefit from the
product/service? What is the size and growth forecasts of the market
segment / target market?
• What is the current or expected competitive pressure for the product
idea?
• What are the industry sales and market trends the product idea is
based on?
• Is it technically feasible to manufacture the product?
• Will the product be profitable when manufactured and delivered to
the customer at the target price?
1 Idea Screening.
The object is to eliminate unsound concepts prior to devoting
resources to them. The screeners should ask several questions:

32. S S PRAJAPATI
2 Concept Development and Testing:
•Develop the marketing and engineering details
• Investigate intellectual property issues and search patent databases
(if applicable)
• Which is the target market and who is the decision maker for
purchasing?
• What features must the product offer? What benefits will the
product provide
• How will consumers react to the product? How will the product be
produced most cost effectively?

33. S S PRAJAPATI
2 Concept Development and Testing:
• Prove feasibility through virtual computer aided rendering and rapid
Prove feasibility through virtual computer prototyping
• What will it cost to produce it?
• Testing the Concept by asking a number of prospective customers
what they think of the idea

34. S S PRAJAPATI
3. Business Analysis
• Estimate likely selling price based upon competition and customer
feedback
• Estimate sales volume based upon size of market
• Estimate profitability and break-even point

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4. Market Testing
• Produce a physical prototype or mock-up
•Test the product and its packaging in typical usage situations
• Conduct focus group customer interviews or introduce at trade show
• Make adjustments where necessary
• Conduct an initial run of the product and sell it in a test market area
to determine customer acceptance

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5. Technical Implementation
• New program initiation
• Finalize Quality Management System
• Resource estimation
• Supplier collaboration
• Logistics plan

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6. Commercialization
• Launch the product
•Prepare and launch with advertisements and other promotions
•Decide the distribution channels for the product
•Critical path analysis is most useful at this stage

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7. New Product Pricing
• Impact of new product on the entire product portfolio
• Value Analysis internal & external
•Competition and alternative competitive technologies
•Differing value segments (price, value and need)
• Product Costs-fixed & variable
•Forecast of unit volumes, revenue, and profit
These steps may be taken as needed. Some steps may be eliminated.
Some steps may be completed simultaneously.

39. S S PRAJAPATI
These steps may be taken as needed. Some steps may be eliminated.
Some steps may be completed simultaneously.

40. S S PRAJAPATI
C. Process Selections
Once the choice of the product/ service is made, selection of the right
process technology becomes important. The process technology
required may be: -
1. Indigenously developed
2. Imported

41. S S PRAJAPATI
C. Process Selections
Once the choice of the product/ service is made, selection of the right
process technology becomes important. The process technology
required may be: -
1. Indigenously developed: Indigenously developed process know-how
has intrinsic benefits like appropriateness, relative inexpensiveness and
possibility to work with technology developer.

42. S S PRAJAPATI
C. Process Selections
2. Imported:
• For some complex products, process know-how has to be imported.
In such cases agreements for technology transfer should be made with
due care in order to safeguard nation's interest.
• Government of India facilitates foreign technology induction both
through FDI and through foreign technology collaboration agreements.
FDI and Foreign technology collaboration agreements can be approved
either through the automatic route under the powers delegated to the
Reserve Bank of India or otherwise by the Government.