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Idea Generation
& Evaluation
The Smart Entrepreneur
• Successful entrepreneurs don’t just have ‘Eureka’ moments; they
seek out opportunities... but also reshape and refine them
• Opportunities frequently come from unsolved problems
• Good ideas and solutions come from the imagination
• But still need to be evaluated and often revised against some
objective criteria
Idea Generation
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
A structured way to enable unstructured thinking
The ‘Keep on Moving’ process, (source: Lumsdaine & Binks, 2003)
1. Problem Observation
2. Problem Definition
3. Idea Generation
4. Idea Synthesis
5. Idea Evaluation
6. Solution Implementation
Each stage in the process requires a different mindset (source: Herrmann, 2003)
1. Explorer
2. Detective
3. Artist
4. Engineer
5. Judge
6. Producer
You can refer to the ‘Thinking Styles Test’ in the IED Dashboard to determine
your team members’ typical mindsets See diagram on next slide
Using the six-stage creative problem solving
process
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Six-stage creative problem solving – using different
mindsets
(Follow the arrows from the centre outward)
• This exercise will help you to devise a business idea that meets a
true stakeholder demand/need by addressing an identified problem
» It’s not enough to generate an idea, you also need to evaluate it (and
perhaps improve it)
• This method can help your team combine curiosity, imagination,
creativity and analysis by moving through different stages of thinking
• It helps you evaluate several ideas against the same set of criteria,
so it is more effective than a random list of ‘pros and cons’
• That way it is also more convincing to external stakeholders.
Why do this exercise?
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
The Explorer Mindset
OBSERVE the problem space you would like to solve with your venture
idea
Is it a significant REAL problem? For example:
• Does a sizeable group of people have this problem today, or is it just a
personal peeve of yours and a few people?
• Would it be a priority for people to solve this problem, or is it just a minor
nuisance that most people can quickly forget?
• Would such people/groups spend money or make a real effort to solve it?
• Is anyone already trying to solve it? Are current solutions inadequate?
• Is the problem likely to grow in the future?
What is the larger context of the problem?
• Is it part of a trend?
Stage 1 – Problem Observation
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Stage 2 – Problem Definition
The Detective Mindset
IDENTIFY the root causes of the problem
• Aim to reduce the problem to 1-3 focal causes
Tip – keep asking what lies behind each cause, e.g, air pollution 
traffic congestion  lack of car sharing  too much trouble to organise
 difficult to find people to share with  time constraints and lack of
information resources …….
 Which types of people have this problem, when, where?
Possible ways to get INSIGHT into causes
• Empathic design research
• Interview Expert witnesses
Summarise: What is it? Who has it? Where, When, Why?
Produce a Problem definition statement
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Problem Definition statement should be
• Connected to one of the root causes
• Short, specific, expressed as a goal to solve the problem
Tips – It may be best phrased as a question
– Linking to the ‘Who, what, when, where” may help you find
specific solutions, e.g.:
• “How can we encourage car sharing?” – very vague!
• “How can we make it easier or more convenient for
professionals living in cities with no metro system to share
transportation on weekdays?
How to get it right
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
The Artist Mindset
Use a Brainstorming session
– Generate as many solutions as possible
– Wild, odd or humorous ideas welcome – whatever comes to mind can
lead to further ideas
– ‘Hitchhiking’ on the back of each others’ ideas is encouraged, e.g.:
– “People who share cars could get discounts at local restaurants”
– “People who share cars could also get a discount on insurance and
maintenance”
– “Maybe a local company should own the cars, take care of the insurance
and maintenance, and people just rent the cars when needed?”
– No criticism or judgement of any idea is allowed at this stage
Stage 3 – Generating Solutions
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
1. Breaking away from the logical and rational
Tip – start with random words and relate to problem
Tip – change context , e.g, weightlessness, frictionless, time travel
Tip – use pictures to stimulate ideas
1. Help each other to think freely
Tip – laugh with, not at each other!
Key Challenges – Stage 3
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
The Engineer Mindset
•Focus on Purpose, Quality and Better Ideas
•Think of how to make wild ideas more practical
• Cluster ideas into categories
‒ For instance, if you’ve used post-it notes, group them into different sets
•Synthesise/merge complementary ideas into combined solutions
•Stay positive – continue to avoid judgement
Stage 4 – Creative Idea Synthesis
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
1. Categorisation
Tip – use post-it notes that you can move around on your idea chart
Tip – organise the ideas under themes
Tip – be flexible – don’t force fit
1. Synthesis
Tip – start with a single idea and build up from the rest
Key Challenges – Stage 4
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
The Judge mindset
Now you can begin to consider the merits or demerits of each idea in a
methodical way
‒ Identify the criteria that the solution must satisfy
» This depends on the stakeholders’ needs, not your preferences!
» Imagine the entire context – other factors to consider
» Sources of info: Empathic design research, Expert witnesses
‒ Score the suggested solutions according to these criteria
‒ Create a series of Advantage/Disadvantage matrices (see next
slides)
Judging the Best Solution
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Judging – Advantage/disadvantage matrix 1
Criteria
(below are just examples, find
the relevant criteria for your
situation!)
Concept
1
Concept
2
Concept
3
Barriers to Acceptance - - +
Cost - + -
Infrastructure - + -
Scoring: mark a ‘+’ where a concept/solution offers an advantage
with respect to a criterion, and ‘–’ where it presents a disadvantage
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Judging – Advantage/disadvantage matrix 2
Revised Criteria Concept
2
Concept
3
Barriers to acceptance by industry - +
Barriers to acceptance by local government + +
Barriers to acceptance by public - -
Cost - -
Infrastructure - -
Concept 1 has no advantages, so it is discarded. One of the criteria
is then elaborated to better differentiate concepts 2 and 3
•for instance by considering different types of stakeholder
•or some other refinement which applies to your case
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Judging – Advantage/disadvantage matrix 3
Revised Criteria Modified Concept 3
Barriers to acceptance by local
government
+
Barriers to acceptance by public +
Net cost to local government +?
Net cost to public +
Infrastructure for local government +?
Infrastructure for public +
Concept 3 offers the most advantages;
•now break down the criteria into more detail to analyse this solution
further
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
1. Criteria selection:
Tip – imagine trying to use a solution in practice
1. Removing negative aspects:
Tips – borrow from other solutions in your brainstorm
– borrow from solutions in other sectors
Key Challenges – Stage 5
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
The Producer Mindset
Dedicated plan
Potential problem analysis
Identifying sources of resistance:
Tip – Undertake a stakeholder analysis. Who would resist your solution and
why?
Sources of insight: Expert witnesses, Value chain analysis
Stage 6 – Implementing the Solution
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Example – HR services group
– Problem Observation and Definition
“We have a lot of employee turnover”
Young people don’t remain interested enough to stay with us
for longer than 2 years.
Notice the use of “Who, what, why, when” which makes the
problem clearer
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Young people don’t remain interested enough to stay with us for longer than 2
years
Brainstorm
Creative Idea Generation
Recruiting only
older people
Giving a
company-car
Recruiting less-
ambitious people
‘Change of job’
withing the
organisation
Paying more
money
Offering
interesting
education
Working with
bonus-system
Making a brand
people are proud
to work with
...
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Idea Synthesis
Young people don’t remain interested enough to stay with us for longer
than 2 years
•Categorise the solutions
Young people don’t
remain interested
enough to stay with us
for longer than 2 years
RENUMERATION
ENVIRONMENT
JOB CONTENTRECRUITMENT
• Job-rotation
• Setting clear goals
• Giving some choice in
job-content
•…
•Creating a strong brand
•Giving people jobs close to home
•Creating a nice environment
•…
• Giving a company car
• Giving bonusses
• …
• Recruiting only non-starters
• Recruiting less ambitious people
•…
Idea Judging - choosing the best solution
Young people don’t remain interested enough to stay with us for longer
than 2 years
• Identify the important criteria and compare the solutions
Young people don’t
remain interested
enough to stay with us
for longer than 2 years
RENUMERATIONENVIRONMENT JOB CONTENTRECRUITMENT
• Job rotation
• Setting clear goals
• Giving some choice in
job content
•…
FEASIBILITY
COST TO IMPLEMENT
EFFICIENCY
…
+ + ++ ++
+ -- + +
- + -- ++
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
• The six-stage creative problem solving process is a tool that allows you to
both generate and evaluate a range of ideas – against the same set of
criteria (better than random lists of ‘pros and cons’).
• You can use this tool to help you pinpoint the best business ideas and
applications in response to problems or trends.
• You can also use it or parts of it at any stage in your business case
development, when you need to make a new decision, solve a problem, or
evaluate alternative courses of action.
• Your team might find it useful to take the ‘Thinking Styles Test’ in the IE&D
Toolbox, based on the Hermann model, to see which mindsets come most
naturally to which members.
Conclusion and deliverables
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur
Clarysse, B. and Kiefer, S., 2011. The Smart Entrepreneur. London: Elliot
& Thompson, Ch. 2.
Lumsdaine, E. and Binks, M., 2003. Keep on Moving: Entrepreneurial
Creativity and Effective Problem Solving. McGraw-Hill.
Lumsdaine, E. and Binks, M., 2005. Creative Problem Solving Workbook.
University of Nottingham Institute for Enterprise and Innovation.
Hermann, N., 1995. The Creative Brain. The Ned Hermann Group.
Hermann, N., 1996. The Whole Brain Business Book. McGraw-Hill.
References and further reading
Copyright of Bart Clarysse and Sabrina Kiefer
The Smart Entrepreneur

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Tse idea generation_ evaluation_2014

  • 1. Idea Generation & Evaluation The Smart Entrepreneur
  • 2. • Successful entrepreneurs don’t just have ‘Eureka’ moments; they seek out opportunities... but also reshape and refine them • Opportunities frequently come from unsolved problems • Good ideas and solutions come from the imagination • But still need to be evaluated and often revised against some objective criteria Idea Generation Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 3. A structured way to enable unstructured thinking The ‘Keep on Moving’ process, (source: Lumsdaine & Binks, 2003) 1. Problem Observation 2. Problem Definition 3. Idea Generation 4. Idea Synthesis 5. Idea Evaluation 6. Solution Implementation Each stage in the process requires a different mindset (source: Herrmann, 2003) 1. Explorer 2. Detective 3. Artist 4. Engineer 5. Judge 6. Producer You can refer to the ‘Thinking Styles Test’ in the IED Dashboard to determine your team members’ typical mindsets See diagram on next slide Using the six-stage creative problem solving process Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 4. Six-stage creative problem solving – using different mindsets (Follow the arrows from the centre outward)
  • 5. • This exercise will help you to devise a business idea that meets a true stakeholder demand/need by addressing an identified problem » It’s not enough to generate an idea, you also need to evaluate it (and perhaps improve it) • This method can help your team combine curiosity, imagination, creativity and analysis by moving through different stages of thinking • It helps you evaluate several ideas against the same set of criteria, so it is more effective than a random list of ‘pros and cons’ • That way it is also more convincing to external stakeholders. Why do this exercise? Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 6. The Explorer Mindset OBSERVE the problem space you would like to solve with your venture idea Is it a significant REAL problem? For example: • Does a sizeable group of people have this problem today, or is it just a personal peeve of yours and a few people? • Would it be a priority for people to solve this problem, or is it just a minor nuisance that most people can quickly forget? • Would such people/groups spend money or make a real effort to solve it? • Is anyone already trying to solve it? Are current solutions inadequate? • Is the problem likely to grow in the future? What is the larger context of the problem? • Is it part of a trend? Stage 1 – Problem Observation Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 7. Stage 2 – Problem Definition The Detective Mindset IDENTIFY the root causes of the problem • Aim to reduce the problem to 1-3 focal causes Tip – keep asking what lies behind each cause, e.g, air pollution  traffic congestion  lack of car sharing  too much trouble to organise  difficult to find people to share with  time constraints and lack of information resources …….  Which types of people have this problem, when, where? Possible ways to get INSIGHT into causes • Empathic design research • Interview Expert witnesses Summarise: What is it? Who has it? Where, When, Why? Produce a Problem definition statement Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 8. Problem Definition statement should be • Connected to one of the root causes • Short, specific, expressed as a goal to solve the problem Tips – It may be best phrased as a question – Linking to the ‘Who, what, when, where” may help you find specific solutions, e.g.: • “How can we encourage car sharing?” – very vague! • “How can we make it easier or more convenient for professionals living in cities with no metro system to share transportation on weekdays? How to get it right Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 9. The Artist Mindset Use a Brainstorming session – Generate as many solutions as possible – Wild, odd or humorous ideas welcome – whatever comes to mind can lead to further ideas – ‘Hitchhiking’ on the back of each others’ ideas is encouraged, e.g.: – “People who share cars could get discounts at local restaurants” – “People who share cars could also get a discount on insurance and maintenance” – “Maybe a local company should own the cars, take care of the insurance and maintenance, and people just rent the cars when needed?” – No criticism or judgement of any idea is allowed at this stage Stage 3 – Generating Solutions Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 10. 1. Breaking away from the logical and rational Tip – start with random words and relate to problem Tip – change context , e.g, weightlessness, frictionless, time travel Tip – use pictures to stimulate ideas 1. Help each other to think freely Tip – laugh with, not at each other! Key Challenges – Stage 3 Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 11. The Engineer Mindset •Focus on Purpose, Quality and Better Ideas •Think of how to make wild ideas more practical • Cluster ideas into categories ‒ For instance, if you’ve used post-it notes, group them into different sets •Synthesise/merge complementary ideas into combined solutions •Stay positive – continue to avoid judgement Stage 4 – Creative Idea Synthesis Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 12. 1. Categorisation Tip – use post-it notes that you can move around on your idea chart Tip – organise the ideas under themes Tip – be flexible – don’t force fit 1. Synthesis Tip – start with a single idea and build up from the rest Key Challenges – Stage 4 Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 13. The Judge mindset Now you can begin to consider the merits or demerits of each idea in a methodical way ‒ Identify the criteria that the solution must satisfy » This depends on the stakeholders’ needs, not your preferences! » Imagine the entire context – other factors to consider » Sources of info: Empathic design research, Expert witnesses ‒ Score the suggested solutions according to these criteria ‒ Create a series of Advantage/Disadvantage matrices (see next slides) Judging the Best Solution Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 14. Judging – Advantage/disadvantage matrix 1 Criteria (below are just examples, find the relevant criteria for your situation!) Concept 1 Concept 2 Concept 3 Barriers to Acceptance - - + Cost - + - Infrastructure - + - Scoring: mark a ‘+’ where a concept/solution offers an advantage with respect to a criterion, and ‘–’ where it presents a disadvantage Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 15. Judging – Advantage/disadvantage matrix 2 Revised Criteria Concept 2 Concept 3 Barriers to acceptance by industry - + Barriers to acceptance by local government + + Barriers to acceptance by public - - Cost - - Infrastructure - - Concept 1 has no advantages, so it is discarded. One of the criteria is then elaborated to better differentiate concepts 2 and 3 •for instance by considering different types of stakeholder •or some other refinement which applies to your case Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 16. Judging – Advantage/disadvantage matrix 3 Revised Criteria Modified Concept 3 Barriers to acceptance by local government + Barriers to acceptance by public + Net cost to local government +? Net cost to public + Infrastructure for local government +? Infrastructure for public + Concept 3 offers the most advantages; •now break down the criteria into more detail to analyse this solution further Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 17. 1. Criteria selection: Tip – imagine trying to use a solution in practice 1. Removing negative aspects: Tips – borrow from other solutions in your brainstorm – borrow from solutions in other sectors Key Challenges – Stage 5 Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 18. The Producer Mindset Dedicated plan Potential problem analysis Identifying sources of resistance: Tip – Undertake a stakeholder analysis. Who would resist your solution and why? Sources of insight: Expert witnesses, Value chain analysis Stage 6 – Implementing the Solution Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 19. Example – HR services group – Problem Observation and Definition “We have a lot of employee turnover” Young people don’t remain interested enough to stay with us for longer than 2 years. Notice the use of “Who, what, why, when” which makes the problem clearer Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 20. Young people don’t remain interested enough to stay with us for longer than 2 years Brainstorm Creative Idea Generation Recruiting only older people Giving a company-car Recruiting less- ambitious people ‘Change of job’ withing the organisation Paying more money Offering interesting education Working with bonus-system Making a brand people are proud to work with ... Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 21. Idea Synthesis Young people don’t remain interested enough to stay with us for longer than 2 years •Categorise the solutions Young people don’t remain interested enough to stay with us for longer than 2 years RENUMERATION ENVIRONMENT JOB CONTENTRECRUITMENT • Job-rotation • Setting clear goals • Giving some choice in job-content •… •Creating a strong brand •Giving people jobs close to home •Creating a nice environment •… • Giving a company car • Giving bonusses • … • Recruiting only non-starters • Recruiting less ambitious people •…
  • 22. Idea Judging - choosing the best solution Young people don’t remain interested enough to stay with us for longer than 2 years • Identify the important criteria and compare the solutions Young people don’t remain interested enough to stay with us for longer than 2 years RENUMERATIONENVIRONMENT JOB CONTENTRECRUITMENT • Job rotation • Setting clear goals • Giving some choice in job content •… FEASIBILITY COST TO IMPLEMENT EFFICIENCY … + + ++ ++ + -- + + - + -- ++ Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 23. • The six-stage creative problem solving process is a tool that allows you to both generate and evaluate a range of ideas – against the same set of criteria (better than random lists of ‘pros and cons’). • You can use this tool to help you pinpoint the best business ideas and applications in response to problems or trends. • You can also use it or parts of it at any stage in your business case development, when you need to make a new decision, solve a problem, or evaluate alternative courses of action. • Your team might find it useful to take the ‘Thinking Styles Test’ in the IE&D Toolbox, based on the Hermann model, to see which mindsets come most naturally to which members. Conclusion and deliverables Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur
  • 24. Clarysse, B. and Kiefer, S., 2011. The Smart Entrepreneur. London: Elliot & Thompson, Ch. 2. Lumsdaine, E. and Binks, M., 2003. Keep on Moving: Entrepreneurial Creativity and Effective Problem Solving. McGraw-Hill. Lumsdaine, E. and Binks, M., 2005. Creative Problem Solving Workbook. University of Nottingham Institute for Enterprise and Innovation. Hermann, N., 1995. The Creative Brain. The Ned Hermann Group. Hermann, N., 1996. The Whole Brain Business Book. McGraw-Hill. References and further reading Copyright of Bart Clarysse and Sabrina Kiefer The Smart Entrepreneur