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Creativity and the Business Idea

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Creativity and the Business Idea

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Creativity and the Business Idea

  1. 1. Hisrich Peters Shepherd Creativity and the Business Idea Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
  2. 2. 4-2 Creative Problem Solving  Creativity tends to decline with age, education, lack of use, and bureaucracy.  Latent creative potential can be stifled (restrain) by perceptual, cultural, emotional, and organizational factors.  Creativity can be unlocked by using any of the creative problem-solving techniques.
  3. 3. 4-3  Brainstorming  Session starts with a problem statement.  No group member should be an expert in the field of the problem.  All ideas must be recorded.  Reverse Brainstorming  A group method that focuses on the negative aspects of a product, service, or idea as well as ways to overcome these problems.  Criticism is allowed but care must be taken to maintain group morale. Creative Problem Solving (cont.)
  4. 4. 4-4  Forced Relationships  Developing an idea to solve a problem by looking at product combinations.  A five step process which focuses on idea generation from relationship patterns between elements of a problem.  Isolate the key elements of the problem  Find the relationships between these elements  Record the relationships in orderly form  Analyze the relationships to find patterns  Develop new ideas from these patterns  Problem statement ‘soap gets wasted on plastic rack’ Creative Problem Solving (cont.)
  5. 5. 4-5  Collective Notebook Method  Developing a new idea to solve problem by participants of a group regularly recording ideas at least once, but preferably three times a day.  At the end of a month participants giving their notebooks to a central coordinator who summarizes all the material.  The summary becomes the topic of a final creative focus group discussion. Creative Problem Solving (cont.)
  6. 6. 4-6  Big-Dream Approach  Developing a new idea by thinking about a problem and its solutions without considering any constraints.  Then analyse each developed idea for feasibility until an idea emerges as a workable form. Creative Problem Solving (cont.)
  7. 7. 4-7 Illustration of Parameter Analysis Parameter Analysis Developing an idea to solve problem by focusing on parameter identification and creative synthesis. 1.Identify and analyse parameters (characteristics, feature) in the situation to determine their relative importance. Then the relationships between parameters are examined that describe the underlying issues. 2.Through evaluation of the parameters (characteristics, features) and their relationships a solution (s) is developed; this solution is called creative synthesis
  8. 8. 4-8 Illustration of Parameter Analysis
  9. 9. 4-9 Parameter Analysis  Problem statement: Hair loss while showering with soap?
  10. 10. 4-10 The Product Planning and Development Process
  11. 11. 4-11 Product Planning and Development Process  Establishing Evaluation Criteria  Criteria should be established at each stage of the product planning and development process.  It should be all-inclusive and where possible quantitative in nature so that easy to analyse.  Criteria should evaluate the idea in terms of:  Market opportunity (demand/need for the market).  Competition.  Marketing system (compatibility with companies experties).  Financial factors.  Production factors.
  12. 12. 4-12  Idea Stage  Promising ideas should be identified and impractical ones eliminated.  Evaluation method – Systematic market evaluation checklist; where each product idea is expressed in terms of its chief values to firm, merits and benefits to consumers. Promising ideas are selected and resources are not wasted on ideas that are incompatible with the market’s values  Determine the need for the new idea to market as well as its value to the company. In order to accurately determine the need for a new product, it is helpful to define the potential needs for the market in terms of timing, satisfaction, alternatives, benefits and risks, future expectations, price versus product performance features, market structure and size, and economic conditions. Product Planning and Development Process (cont.)
  13. 13. 4-13  Concept Stage  Refined product idea is tested to determine its acceptance without necessarily incurring the costs of manufacturing the physical product  Product idea acceptance can be measured through the conversational interview with potential consumers or members of the distribution channel when appropriate.  Respondents are exposed to statements that reflect the physical characteristics and attributes of the product idea.  Features, price and promotion should be evaluated for both the concept being studied and any major competing products. By identifying any major problems marketable product, or the concept can be dropped and not receive any further attention. Product Planning and Development Process (cont.)
  14. 14. 4-14  Product Development Stage  Consumer reaction to the product/service is determined.  A consumer panel is given a product sample and one or more competitive products simultaneously  Then preference are determined through multiple methods such as multiple brand comparisons, risk analysis, level of repeat purchases, or intensity of preference analysis etc. Product Planning and Development Process (cont.)
  15. 15. 4-15  Test Marketing Stage  Launch of a product in a selected area. This increases certainty of successful product commercialization.  Actual sales reflect consumer acceptance.  Positive test results indicate the degree of probability of a successful product launch on bigger scale and company formation. Product Planning and Development Process (cont.)
  16. 16. 4-16  Commercialization Stage Product Planning and Development Process (cont.) Introduction Growth Maturity Decline Strategic sales objective Build sales Build sales Hold sales Harvest/manag e for cash Strategic marketing focus Expand market Penetrate markets Protect market share Manage Productivity Brand objective Brand product awareness/trial Brand preference Brand loyalty Brand exploitation Product (features) Basic; emphasis on reliability and functionality Differentiated Differentiated Rationalized Promotion Creating awareness/trial Creating awareness/trial /focus on repeat purchasers Maintaining awareness/focus on repeat purchasers Cut/eliminated Price High Lower Lowest Rising Distribution Patchy Wider Intensive Selective
  17. 17. 4-17 Story of the week......“Larry Ellison” Occupation CEO of Oracle Corporation Net worth US$ 49.7 billion

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