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Creativity and generating business ideas by J.M. pant


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Creativity and generating business ideas by J.M. pant

  1. 1. Module 2: Creativity and Generating Business Ideas Opportunity Recognition Six Thinking Hats J.M.Pant Management Consultant, Trainer and Visiting Professor [email_address] A presentation by J.M.Pant Program on Educational Entrepreneurship For More details, visit :
  2. 2. Ideas and Business Opportunity <ul><li>Ideas are necessary and they form the starting point of business. </li></ul><ul><li>The idea by itself is not complete. It has to be developed and implemented. </li></ul><ul><li>An idea alone is not an opportunity. </li></ul><ul><li>Opportunity has the qualities </li></ul><ul><ul><li>Attractive present and potential </li></ul></ul><ul><ul><li>Durable </li></ul></ul><ul><ul><li>Timely </li></ul></ul><ul><ul><li>Anchored on a product or service which creates or adds value for its buyer or end user </li></ul></ul><ul><li>For an entrepreneur to seize an opportunity, the window should be opening, not closing, and the window remains open long enough. </li></ul>A presentation by J.M.Pant
  3. 3. Ideas and Business Opportunity <ul><li>Business Opportunity- a business concept that, if turned into a tangible product or service offered by a business enterprise, will result in financial profit . </li></ul><ul><li>Opportunities are about creating value, not necessarily lowering cost. </li></ul><ul><li>Does the opportunity help increase the customers’ effectiveness and efficiency? </li></ul><ul><ul><li>It is simple economics: if it is worth it, people pay </li></ul></ul><ul><li>Opportunities are not the same for everyone </li></ul><ul><ul><li>Not everyone pursues opportunities, even if they are obvious. </li></ul></ul><ul><li>Creative thought is wonderful but if it does not lead to action it is a waste of energy. </li></ul><ul><ul><li>You must show real initiative to pursue opportunity. </li></ul></ul>A presentation by J.M.Pant
  4. 4. Opportunity Recognition <ul><li>Ideas may be good but…. </li></ul><ul><ul><li>Do they make a business opportunity? </li></ul></ul><ul><li>Complex opportunities have lower chances of success </li></ul><ul><ul><li>The simpler it is, the more better </li></ul></ul><ul><li>As market matures, window of opportunity begins to close. </li></ul><ul><li>Ask Yourself: </li></ul><ul><ul><li>Can I make the product or provide the service? </li></ul></ul><ul><ul><li>Can I market the product or service? </li></ul></ul><ul><ul><li>Can I make adequate profit? </li></ul></ul><ul><ul><li>Can I realise my money quickly? </li></ul></ul><ul><ul><li>Do I enjoy this business, have passion </li></ul></ul><ul><ul><li>Do I have the strengths for making this a successful business </li></ul></ul>A presentation by J.M.Pant
  5. 5. Opportunity Recognition Process <ul><li>A Model of the Opportunity Recognition Process </li></ul>A presentation by J.M.Pant Personal experiences Work experiences Experience Education Prior knowledge of markets and customer problems Entrepreneurial alertness Networks Outcome: Successful Opportunity Recognition
  6. 6. Product Planning and Development Process <ul><li>Ideas need further development and refining. </li></ul><ul><li>The refining process - Product planning and development process </li></ul><ul><ul><li>Idea stage </li></ul></ul><ul><ul><li>Concept stage </li></ul></ul><ul><ul><li>Product development stage </li></ul></ul><ul><ul><li>Test marketing stage </li></ul></ul><ul><ul><li>Commercialisation </li></ul></ul><ul><li>Commercialisation stage results in the start of the product life cycle </li></ul><ul><li>Product life cycle </li></ul><ul><ul><li>the stages each product goes through from introduction to decline </li></ul></ul>A presentation by J.M.Pant
  7. 7. New Product Planning and Development Process <ul><li>Product planning and development process </li></ul>A presentation by J.M.Pant Test marketing Stage Concept Stage Product develop-ment Stage Idea Stage Idea Evaluate Laboratory development Evaluate Pilot operation run Evaluate Trial Evaluate Introduction Growth Maturity Decline Commercialization stage product life cycle
  8. 8. Evaluation Criteria <ul><li>At each stage criteria for evaluation to be established: </li></ul><ul><li>Market opportunity </li></ul><ul><ul><li>Who are the consumers and what is the market size </li></ul></ul><ul><ul><li>Growing market or mature/declining </li></ul></ul><ul><ul><li>Possible market share </li></ul></ul><ul><li>Competition </li></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Prices </li></ul></ul><ul><ul><li>Does the product have unique differential advantage </li></ul></ul><ul><li>Marketing system </li></ul><ul><li>Financial factors </li></ul><ul><li>Production factors </li></ul><ul><li>Fit with promoters’ strengths, interest, passion </li></ul>A presentation by J.M.Pant
  9. 9. Determining the Need for New Product Ideas A presentation by J.M.Pant Factor Competitive capabilities New product idea capability Type of need Continuing need Declining need Emerging need Future need Timing of need Duration of need Frequency of need Demand cycle Position in life cycle Competing ways to satisfy need Doing without Using present way Modifying present way
  10. 10. Determining the Need for New Product Ideas A presentation by J.M.Pant Factor Competitive capabilities New product idea capability Perceiving benefits/Risks Utility to customer Customer tastes/preferences Buying motives Consumption habits Price vs performance features Price-quantity-quality relationship Demand elasticity Stability of price, market Market size and potential Market growth, trends, threats Availability to customer funds Economic scenario, income Financing opportunities
  11. 11. Change Provides Opportunity <ul><li>Change brings disruption in – </li></ul><ul><ul><li>Consumer needs, preferences </li></ul></ul><ul><ul><li>Expectations </li></ul></ul><ul><ul><li>Business models </li></ul></ul><ul><ul><li>Level of expertise needed </li></ul></ul><ul><ul><li>Finance methods, institutions </li></ul></ul><ul><li>Change provides opportunity to new entrepreneurs as the new field is a level playing field where established players enjoy no advantage. </li></ul><ul><li>Change related opportunities are actually loaded in favour of the new player because of his or her flexibility, adaptiveness, agility </li></ul>A presentation by J.M.Pant
  12. 12. Entrepreneurs Exploiting Change <ul><li>Japanese car manufacturers (1973) </li></ul><ul><li>Microsoft (1976-78) </li></ul><ul><li>Amazon and Dell (1990s) </li></ul><ul><li>Infosys (1989) </li></ul><ul><li>HCL and NIIT (late 1970s and 80s) </li></ul><ul><li>SKS Microfinance (2000s) </li></ul>A presentation by J.M.Pant
  13. 13. Change Related To……. <ul><li>Demographic – age distribution, urban-rural, working-non working, sex ratio, literacy, skill level, employability </li></ul><ul><li>Economic – Emerging economies, markets, GDP, growth rate, credit availability, middle class, bottom of pyramid </li></ul><ul><li>Socio-Cultural -- Value systems, role models, social trends, behaviour norms, aspirations </li></ul><ul><li>Technological -- new technology, speed, capacity, variety, performance, cost </li></ul><ul><li>Legal and Regulatory -- liberalization (internal and external), enforcement of IP protection laws </li></ul>A presentation by J.M.Pant
  14. 14. Start Up Entrepreneurs <ul><li>Unique, innovative ideas: 3-4% </li></ul><ul><li>Rest 96% </li></ul><ul><ul><li>Enhancement- improvement of features – cheaper, better, faster, more user-friendly </li></ul></ul><ul><ul><li>Extension to features </li></ul></ul><ul><ul><li>Specialization -- niche’ creation </li></ul></ul>A presentation by J.M.Pant
  15. 15. <Examples> A presentation by J.M.Pant Enhancement Extension Niche DOS to Windows Pen with torch Low cost airlines- Ryan air, easy jet, Spicejet, Indigo Desktop PC to laptop Mobile with camera Specialty hospitals Conventional TV to LCD to LED TV Day care centers with tuition Finishing schools Mechanical watch to quartz watch Creche with pick up and drop facility Placement for specific sectors
  16. 16. Incremental and Radical Innovation <ul><li>Timeline of radical and incremental improvement </li></ul>A presentation by J.M.Pant Time Performance/ Cost Improvements Radical Innovations
  17. 17. The S-curve <ul><li>The S-curve:An established technology and a new rival </li></ul>A presentation by J.M.Pant Time/Investment T1 T2 Performance Established Technology New Rival
  18. 18. Six Thinking Hats <ul><li>Dr Edward de Bono pioneered concept of creative thinking using six thinking hats: </li></ul><ul><li>White hat- concerned with data and information available and needed. The facts, just the facts. </li></ul><ul><li>Red hat- concerned with feelings, hunches, emotions and intuition </li></ul><ul><ul><li>Share likes, dislikes, fears </li></ul></ul><ul><li>Black hat- judgment, the “devil’s advocate”, points out the weakness in our thinking, cautions. </li></ul><ul><ul><li>Why something will not work, Highlights points of caution, existing and potential downsides, and concerns </li></ul></ul><ul><li>Six thinking hats </li></ul>A presentation by J.M.Pant
  19. 19. Six Thinking Hats <ul><li>Yellow hat- symbolises brightness and optimism </li></ul><ul><ul><li>represents logical, positive aspects of thinking </li></ul></ul><ul><ul><li>Explore positives, Looks for benefit and value, feasibility </li></ul></ul><ul><li>Green hat- “creativity hat” </li></ul><ul><ul><li>For alternatives, creative ideas and possibilities, does not need to have logical base </li></ul></ul><ul><ul><li>New concepts, new peceptions </li></ul></ul><ul><li>Blue hat- “process control”. Manages the thinking process itself </li></ul><ul><li>Six thinking hats </li></ul>A presentation by J.M.Pant
  20. 20. White Hat <ul><li>White hat questions: </li></ul><ul><ul><li>What information is available? </li></ul></ul><ul><ul><li>What information would we like to have? </li></ul></ul><ul><ul><li>What information do we need? </li></ul></ul><ul><ul><li>How are we going to get the missing information? </li></ul></ul><ul><li>Separate facts from speculation </li></ul><ul><li>Think of five white hat comments on one of the following topics: </li></ul><ul><ul><li>Education and employability </li></ul></ul><ul><ul><li>Neighbourhood school </li></ul></ul><ul><ul><li>Your own topic </li></ul></ul>A presentation by J.M.Pant Experience the white hat
  21. 21. Red Hat <ul><li>Red hat questions: </li></ul><ul><ul><li>What are my feelings right now? </li></ul></ul><ul><ul><li>What does my intuition tell me? </li></ul></ul><ul><ul><li>What is my gut reaction? </li></ul></ul><ul><li>The red hat should be limited to 30 seconds or less </li></ul><ul><li>Gives us full permission to express feelings, hunches and intuitions </li></ul><ul><li>Does not require us to justify or explain the reasons for our feelings </li></ul><ul><li>Can be used as part of thinking that leads to decision </li></ul><ul><li>Can be used after a decision is made </li></ul><ul><li>Experience the red hat </li></ul><ul><li>Give red hat responses to following proposals: </li></ul><ul><ul><li>Right to education </li></ul></ul><ul><ul><li>Vocational schools </li></ul></ul><ul><ul><li>State control on education </li></ul></ul>A presentation by J.M.Pant
  22. 22. Black Hat <ul><li>Black hat questions: </li></ul><ul><ul><li>What could be the possible problems? </li></ul></ul><ul><ul><li>What be some of the difficulties be? </li></ul></ul><ul><ul><li>What are points of caution? </li></ul></ul><ul><ul><li>What are the risks? </li></ul></ul><ul><li>The black hat explores why something may not work. </li></ul><ul><li>Must have logical reasons for concerns. </li></ul><ul><li>Is a powerful assessment tool when used after the yellow hat </li></ul><ul><li>Supplies a road map for improvement and problem solving when used before the green hat </li></ul><ul><li>Do not overuse the black hat </li></ul><ul><li>Experience the black hat </li></ul><ul><li>Think of five black hat comments to following topics: </li></ul><ul><ul><li>Bidding for Asian games </li></ul></ul><ul><ul><li>Increasing student intake in schools </li></ul></ul><ul><ul><li>Your own topic </li></ul></ul>A presentation by J.M.Pant
  23. 23. Yellow Hat <ul><li>Yellow hat questions: </li></ul><ul><ul><li>What are the benefits? </li></ul></ul><ul><ul><li>What are the positives? </li></ul></ul><ul><ul><li>Is there a concept in the idea that looks attractive? </li></ul></ul><ul><ul><li>Can this be made to work? </li></ul></ul><ul><li>The yellow hat requires a deliberate effort. </li></ul><ul><li>Complements the black hat. </li></ul><ul><li>Reinforces creative ideas and new directions </li></ul><ul><li>Must give reasons why idea is valuable or might work </li></ul><ul><li>Experience the yellow hat </li></ul><ul><li>Think of five yellow hat comments to following topics: </li></ul><ul><ul><li>Only 10 th pass people may apply for a driver’s license </li></ul></ul><ul><ul><li>Accident in Delhi metro near GK I/Nehru Place </li></ul></ul><ul><ul><li>Your own topic </li></ul></ul>A presentation by J.M.Pant
  24. 24. Green Hat <ul><li>Green hat questions: </li></ul><ul><ul><li>Are there other ways to do this? </li></ul></ul><ul><ul><li>What else could we do here? </li></ul></ul><ul><ul><li>What are the possibilities? </li></ul></ul><ul><ul><li>What will overcome our difficulties? </li></ul></ul><ul><li>The green hat encourages search for new ideas and alternatives. </li></ul><ul><li>Sets up a microculture for creativity. </li></ul><ul><li>Balances the natural dominance of the black hat </li></ul><ul><li>Green hat permits suggestions without having to support them logically. </li></ul><ul><li>Experience the green hat </li></ul><ul><li>Do some creative thinking about one of the following topics: </li></ul><ul><ul><li>Mass education in developing employable skills </li></ul></ul><ul><ul><li>Creating a new television series </li></ul></ul><ul><ul><li>Your own topic </li></ul></ul>A presentation by J.M.Pant
  25. 25. Lateral Thinking <ul><li>Allows you to try different perceptions and different points. It allows you to do out of the box thinking, removing the mental road blocks to creativity. </li></ul><ul><li>Logic is concerned with ‘the truth’, with what is, but lateral thinking is concerned with possibilities, with what might be. </li></ul><ul><li>Most people see things as they are and wonder why. A creative person sees things that are not and says why not? </li></ul><ul><li>Experts are sometimes not as creative as a layman can be. They tend to think ‘What can be done? ’ Layman wonders ‘What must be done?’ </li></ul>A presentation by J.M.Pant
  26. 26. Lateral Thinking <ul><li>Questioning assumptions </li></ul><ul><li>Creative solutions are found by ‘moving out of the box’ by looking at the constraints that define the problem </li></ul><ul><li>Boundaries limit the ideas and assumptions are the building blocks that create the boundaries. </li></ul><ul><li>Provocations </li></ul><ul><li>This technique involves putting forward provocative statements to stimulate creativity in the mind </li></ul>A presentation by J.M.Pant
  27. 27. Creative Approaches A presentation by J.M.Pant Brainstorming Focus groups Reverse brainstorming Brain writing Checklist method Attribute listing Random word-free association Problem inventory analysis Big dream approach Out of the box thinking
  28. 28. Blue Hat <ul><li>Blue hat questions: </li></ul><ul><ul><li>What is our agenda? </li></ul></ul><ul><ul><li>What is our next step? </li></ul></ul><ul><ul><li>What hat are we using now? </li></ul></ul><ul><ul><li>How can we summarise the discussion so far? </li></ul></ul><ul><ul><li>What is our decision? </li></ul></ul><ul><li>The blue hat is usually the role of the facilitator </li></ul><ul><li>Focuses and refocuses thinking </li></ul><ul><li>Experience the blue hat </li></ul><ul><li>You will be given some practice situations by the speaker. Decide how you would address each situation if you were wearing a blue hat. </li></ul><ul><li>Three key disciplines to be managed by blue hat </li></ul><ul><ul><li>Discipline of focus </li></ul></ul><ul><ul><li>Discipline of the hat </li></ul></ul><ul><ul><li>Discipline of time </li></ul></ul>A presentation by J.M.Pant
  29. 29. Project Work For The Week <ul><li>Interview a successful entrepreneur. Some thoughts on direction of interview: </li></ul><ul><ul><li>Initial spark, motivators for starting his or her enterprise </li></ul></ul><ul><ul><li>Background of promoters, selection of project, Growth process </li></ul></ul><ul><ul><li>Support, if any, from family, govt, friends etc </li></ul></ul><ul><ul><li>Problems faced (people/supplier/customer related, marketing, operations, technology, finance, govt and others), and how were they overcome </li></ul></ul><ul><ul><li>Is the project scaleable? Is it sustainable? </li></ul></ul><ul><ul><li>What motivates him or her now </li></ul></ul><ul><ul><li>Future plans </li></ul></ul><ul><li>Prepare and present audio visual presentation on 28 Aug 2010 </li></ul>A presentation by J.M.Pant
  30. 30. Project Work For The Week <ul><li>Generate Ideas - Education Related </li></ul><ul><ul><li>Using the six thinking hats and various creative thinking approaches, generate ideas on education related entrepreneurial opportunities. </li></ul></ul><ul><ul><li>Some Random words to trigger ideas: </li></ul></ul><ul><ul><ul><li>Jobs </li></ul></ul></ul><ul><ul><ul><li>Learning </li></ul></ul></ul><ul><ul><ul><li>Volumes </li></ul></ul></ul><ul><ul><ul><li>Quality </li></ul></ul></ul><ul><ul><ul><li>Desire to learn </li></ul></ul></ul><ul><ul><ul><li>Skills </li></ul></ul></ul><ul><ul><ul><li>Knowledge </li></ul></ul></ul><ul><ul><li>Prepare and present on 21 Aug 2010 </li></ul></ul>A presentation by J.M.Pant
  31. 31. A presentation by J.M.Pant Thanks