BIC

1. Chapter No. 2

2. 2
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
people’s lives.
• Creativity is thinking new things &
innovation is doing new things

3. 3
• 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
• Leadership expert Warren Bennis says. “
today’s successful companies live and
die according to the quality of their
ideas”
Creativity & Innovation

4. 4
• Creativity involves generating something from
nothing
• Creative ideas springs up from the most
unexpected places.
• Millions of people come up with creative ideas
for new or different products & services; most
of them, however, never do anything with
them
Creativity & Innovation

5. 5
Sources
of New
Ideas
Consumers
Products and
Services
Distribution
channels
R & D
Section
Govt.
Regulation
Sources of New Ideas

6. Consumers or Customers
Consumers play a crucial role in new idea generation for businesses and
product development. They can serve as a source of innovation in
several ways:
1. Customer Feedback & Complaints
• Direct feedback helps businesses identify gaps in existing products
and services.
• Complaints highlight pain points that can inspire improvements or
entirely new solutions.

7. 2. Lead Users & Early Adopters
• Some consumers are ahead of trends and modify products to fit their needs.
• Observing these lead users can provide insights into future market demands.
3. User-Generated Content & Reviews
• Customers often share their experiences online, suggesting new features or product
variations.
• Analyzing online reviews and social media comments can reveal unmet needs.
4. Crowdsourcing & Co-Creation
• Companies engage consumers directly through innovation contests and idea submission
platforms.
• Examples: Lego Ideas, Starbucks My Idea, and Threadless (crowdsourced T-shirt designs).
5. Customization & Personalization Trends
• Observing how customers personalize or use products in unexpected ways can inspire
new offerings.

8. 6. Ethnographic Research & Observations
• Studying consumer behavior in real-life settings helps businesses identify new opportunities.
• Example: Observing how customers interact with a product in a store or at home.
7. Social Media & Online Communities
• Customers discuss problems, trends, and potential solutions in forums, Facebook groups,
Reddit, and other platforms.
• Monitoring these discussions helps businesses stay ahead of market trends.
8. DIY (Do-It-Yourself) & Maker Movement
• Consumers who create their own solutions to everyday problems can inspire businesses to
commercialize similar ideas.
• Example: 3D-printed accessories or home automation hacks leading to new product lines.
9. Surveys & Focus Groups
• Directly asking customers about their needs and preferences can generate new product
ideas.
10. Unmet Needs & Market Gaps
• Identifying what customers are struggling with but cannot find solutions for can lead to
breakthrough innovations.

9. Examples
1. Careem – Ride Categories & Women Captains
• How Consumers Contributed: Users requested more ride options and
safety features.
• Example: Careem introduced Go Mini, Go Plus, Bike, and Women Captains
(female drivers for enhanced safety).
2. FoodPanda – Home Chefs Program
• How Consumers Contributed: Many home-based cooks wanted a
platform to sell food without opening a restaurant.
• Example: FoodPanda launched Panda HomeChefs, allowing small food
businesses to sell online.

10. Existing products and Services
• Existing products and services can be a powerful source of new ideas
through various methods, including modifications, improvements, and
repurposing.
1. Product Improvement & Upgrades
• How? Identify shortcomings in existing products and enhance them.
• Example:
• Mobile Phones – Every new smartphone model comes with improved
cameras, processors, and battery life based on user feedback.
• Toyota Hybrid Cars – Toyota improved its Prius model by enhancing fuel
efficiency and battery life.

11. 2. Product Line Extensions
• How? Introduce variations of a successful product to target different
market segments.
• Example:
• Coca-Cola – Started with regular Coke and expanded to Diet Coke, Coke Zero,
and flavored variations.
• Nestlé’s KitKat – Introduced flavors like Matcha, Dark Chocolate, and Cookies
& Cream.

12. 3. Repurposing & Repositioning
• How? Modify an existing product to serve a new purpose or
audience.
• Example:
• Johnson’s Baby Shampoo – Initially for babies but repositioned as a gentle
shampoo for adults.
• Baking Soda (Arm & Hammer) – Originally a baking ingredient, but marketed
for cleaning and deodorizing.

13. 4. Cost Reduction & Value Engineering
• How? Simplify production or change materials to make products
more affordable.
• Example:
• Tata Nano – Launched as the world’s cheapest car by removing unnecessary
features.
• Airlines (Budget Carriers) – Removed free meals and extra luggage to offer
lower ticket prices.

14. 5. Sustainability & Eco-Friendly Innovation
• How? Modify existing products to be more environmentally friendly.
• Example:
• Unilever’s Water-Saving Detergents – Designed to use less water while
washing clothes.
• Paper Straws & Biodegradable Packaging – Replacing plastic with sustainable
materials.

15. 6. Customer Feedback & Data Analytics
• How? Use customer complaints, reviews, and purchase data to refine
products.
• Example:
• Netflix & Spotify – Use AI-based recommendations to personalize content.
• Nike’s Self-Lacing Shoes – Developed after customers wanted more
convenience in sports footwear.

16. 7. Service Innovation & Subscription Models
• How? Convert one-time purchase products into recurring services.
• Example:
• Adobe Software – Shifted from selling software (Photoshop, Illustrator) to
subscription-based Adobe Creative Cloud.
• Car Subscriptions (Care by Volvo) – Instead of buying, customers can
subscribe to use a car for a monthly fee.

17. Government Regulations
Government regulations can be a major source of new idea generation by
creating opportunities for businesses to develop innovative products,
services, and processes that comply with legal requirements.
• 1. Compliance-Driven Innovation
• How? Companies develop new products or modify existing ones to meet
government standards.
• Example:
• Automobile Industry – When governments introduced emission regulations,
companies like Toyota and Tesla innovated with hybrid and electric vehicles.
• Pharmaceutical Industry – Stricter FDA regulations led to the development of safer
and more effective drugs.

18. • 2. Environmental & Sustainability Regulations
• How? Laws promoting sustainability lead to eco-friendly products and
services.
• Example:
• Plastic Ban in Pakistan – Many businesses started producing biodegradable
bags and reusable shopping bags.
• Renewable Energy Policies – Solar panel companies and wind energy
solutions grew due to government incentives.

19. • 3. Digitalization & Cybersecurity Laws
• How? Regulations on data protection and digital transactions lead to
new cybersecurity solutions and fintech innovations.
• Example:
• GDPR (Europe) – Led to the rise of privacy-focused tech solutions like
encrypted messaging apps (e.g., Signal).
• Pakistan’s Cybercrime Laws – Encouraged businesses to develop secure
digital payment systems (e.g., JazzCash, Easypaisa).

20. • 4. Health & Safety Regulations
• How? Companies create new safety equipment, workplace policies,
and hygiene solutions.
• Example:
• COVID-19 Regulations – Businesses innovated with face masks, sanitizers,
online work solutions, and touchless payment systems.
• Food Industry Standards – Brands like K&N’s in Pakistan improved hygiene in
meat processing to comply with global standards.

21. • 5. Financial & Tax Regulations
• How? New tax laws and financial policies create opportunities for
financial services and investment solutions.
• Example:
• Tax Reforms in Pakistan – Led to the rise of tax consultancy firms and digital
tax-filing platforms like Tax Dosti.
• Islamic Banking Regulations – Encouraged banks to develop Shariah-
compliant banking products.

22. • 6. Trade & Import/Export Regulations
• How? Restrictions on certain imports create opportunities for local
manufacturing.
• Example:
• Ban on Mobile Phone Imports in Pakistan – Led to local production by
companies like Infinix and Tecno.
• Halal Food Regulations – Created a global market for certified halal food
products from Pakistan.

23. • 7. Labor & Employment Laws
• How? Companies innovate to meet workforce regulations and
improve employee well-being.
• Example:
• Work-from-Home Policies – Many businesses introduced remote work
solutions after government regulations during COVID-19.
• Minimum Wage Laws – Led to automation in industries where labor costs
increased.

24. • 8. Public-Private Partnerships & Incentives
• How? Government policies encouraging collaboration with private
companies generate new business ideas.
• Example:
• CPEC (China-Pakistan Economic Corridor) – Opened opportunities for
logistics, construction, and entrepreneurship.
• Startup Funding by Government – Pakistan’s Ignite National Technology Fund
supports tech startups.

25. • 9. Transport & Infrastructure Regulations
• How? Regulations lead to new transport solutions and smart
infrastructure.
• Example:
• Ride-Hailing Regulations in Pakistan – Led to Careem and Uber developing
new service models like Careem Bike and Rickshaw Rides.
• Electric Vehicle (EV) Policy – Encouraged companies like Jolta Electric to
launch Pakistan’s first electric bike.

26. Distribution channels
Distribution channels are not just pathways to deliver products—they can also
inspire new business ideas, services, and product innovations. Companies that
rethink their distribution strategies often discover untapped markets, new
customer needs, and better ways to serve consumers.
• 1. E-Commerce & Online Marketplaces
• How? Selling through online platforms can reveal demand for new products and
services.
• Example:
• Daraz in Pakistan – Helped small businesses reach nationwide customers, inspiring many
brands to launch online-only stores.
• Amazon’s FBA (Fulfillment by Amazon) – Led to a wave of private-label businesses and
new logistics solutions.

27. • 2. Direct-to-Consumer (DTC) Model
• How? Brands can eliminate middlemen and gain direct insights from
customers.
• Example:
• Nike’s DTC Strategy – Inspired the launch of exclusive online-only shoe
collections.
• Khaadi (Pakistan) – Opened its own stores and e-commerce platform,
avoiding reliance on third-party retailers.

28. • 3. Subscription-Based Distribution
• How? Recurring delivery models generate new ideas for convenience-
focused products.
• Example:
• Netflix & Spotify – Inspired other industries (e.g., meal kit subscriptions like
HelloFresh).
• BlueEX in Pakistan – Developed subscription-based courier services for online
sellers.

29. • 4. Mobile & App-Based Distribution
• How? Companies can explore mobile-first business models.
• Example:
• FoodPanda & Cheetay (Pakistan) – Started as restaurant delivery platforms
but expanded into grocery and pharmaceutical deliveries.
• Careem (Pakistan) – Initially a ride-hailing app, later added Careem Pay and
Careem Shops.

30. • 5. Social Commerce (Selling via Social Media)
• How? Platforms like Facebook, Instagram, and TikTok inspire new
ways to sell.
• Example:
• Instagram Shops – Helped brands create exclusive product lines just for social
media shoppers.
• Pakistani Home-Based Entrepreneurs – Many small businesses emerged
selling customized jewelry, clothing, and handicrafts.

31. • 6. Omni-Channel Retailing
• How? Integrating physical and online stores can create new shopping
experiences.
• Example:
• Walmart & Carrefour – Launched hybrid online + in-store pickup models.
• Al-Fatah & Chase Up (Pakistan) – Expanded their e-commerce presence,
offering home delivery alongside in-store shopping.

32. • 7. Crowdsourced & Peer-to-Peer Distribution
• How? Using individuals as delivery partners creates new service
models.
• Example:
• Uber Eats & Bykea (Pakistan) – Empowered individuals to earn by delivering
food, groceries, and parcels.
• Airbnb Experiences – Used local guides for unique travel experiences,
expanding beyond just accommodation.

33. • 8. Dark Stores & Warehouse Distribution
• How? Fulfillment centers located near urban areas speed up delivery
and inspire instant commerce.
• Example:
• Pandamart (Pakistan) – FoodPanda launched its own warehouses to ensure
30-minute grocery deliveries.
• Quick Commerce (q-commerce) – Led to the rise of services like Krave Mart &
Cheetay Instant Delivery.

34. • 10. Last-Mile & Hyperlocal Delivery Innovations
• How? Finding better ways to reach customers in remote areas can
generate new ideas.
• Example:
• TCS Hazir (Pakistan) – Introduced same-day delivery in response to e-
commerce demand.
• Bykea & Rider (Pakistan) – Created affordable delivery solutions for small
businesses.

35. Research & Development (R&D)
R&D plays a crucial role in generating new ideas by discovering innovative products, improving
existing ones, and developing new business models. Companies that invest in R&D often stay
ahead of competitors by identifying emerging trends and technological advancements.
R&D is essential for driving innovation across industries. Whether through product
development, process efficiency, or sustainability efforts, companies investing in R&D stay
competitive and create groundbreaking solutions.
• 1. New Product Development (NPD)
• How? R&D helps companies create completely new products that meet evolving consumer
needs.
• Example:
• Tesla's Electric Cars – R&D in battery technology led to the success of long-range electric vehicles (EVs).
• Nestlé's Nescafé 3-in-1 (Pakistan) – R&D identified demand for instant coffee mixes, leading to product
innovation.

36. • 2. Product Improvement & Upgrades
• How? R&D enhances existing products, making them more efficient,
durable, or user-friendly.
• Example:
• Smartphones – Continuous R&D led to better cameras, foldable screens, and
AI-powered assistants.
• Unilever's Lifebuoy Soap – Reformulated with germ-killing ingredients after
COVID-19 research.

37. • 3. Cost Reduction & Process Innovation
• How? R&D helps businesses find cheaper and more efficient ways to
manufacture products.
• Example:
• Tata Nano (India) – R&D helped develop the world's cheapest car by
optimizing design and materials.
• Pakistani Textile Industry – R&D in synthetic fibers led to cost-effective and
eco-friendly clothing production.

38. • 4. Market Expansion & Customization
• How? R&D enables businesses to customize products for different
markets.
• Example:
• Coca-Cola's Regional Flavors – Created different versions of Coke (e.g.,
Mango flavor in South Asia).
• Pakistani Handicrafts Export – R&D on global consumer trends led to
customized traditional products for foreign markets.

39. • 5. Sustainable & Eco-Friendly Innovation
• How? R&D develops solutions to reduce environmental impact.
• Example:
• Biodegradable Plastics – Companies like PepsiCo invest in sustainable
packaging.
• Pakistani Solar Energy Startups – Research in renewable energy led to
affordable solar panel solutions.

40. • 6. Healthcare & Pharmaceutical Innovations
• How? R&D leads to new medicines, vaccines, and healthcare
technologies.
• Example:
• COVID-19 Vaccines – Pfizer, Moderna, and Sinopharm developed vaccines
through intensive R&D.
• Pakistan’s Pharmaceutical Industry – Companies like Getz Pharma invest in
R&D for generic medicines.

41. • 7. Digital & Technological Advancements
• How? R&D helps businesses develop software, AI, and automation
solutions.
• Example:
• Google AI & ChatGPT – AI-driven research created intelligent virtual
assistants.
• Pakistan's Fintech Growth – Startups like Sadapay & Easypaisa developed
digital payment solutions.

42. • 8. Safety & Security Innovations
• How? R&D helps improve product and workplace safety.
• Example:
• Fire-Resistant Building Materials – R&D led to improved construction safety
in disaster-prone areas.
• Rescue 1122 (Pakistan) – Research into emergency response improved
ambulance services.

43. • 9. Space & Advanced Scientific Research
• How? R&D enables space exploration and high-tech innovations.
• Example:
• NASA's Mars Rover – R&D in robotics and AI enabled space exploration.
• Pakistan’s SUPARCO Research – Contributed to satellite technology
advancements.

44. • 10. Agriculture & Food Technology
• How? R&D improves crop yields, food preservation, and agricultural
sustainability.
• Example:
• Genetically Modified Crops (GMO) – Increased productivity and pest
resistance.
• Pakistan’s Dairy Industry – R&D helped improve milk preservation and
packaging (e.g., Olper’s & Nurpur).