IDEA GENERATION METHODS

CREATION OF BUSINESS IDEAS: 1. Product on which the entrepreneur has firsthand manufacturing experience. 2. Product where the entrepreneur has the marketing or work experience with the particular product. 3. Product which is perceived as highly profitable. 4. Product where government has banned imports. 5. Product which has good export demand and with good margins. 6. The raw material requirement of an existing nearby big unit. 7. The location advantage of raw material/other resources. 8. The products encouraged by the government agencies.

9. Products on which government declares subsidies, incentives, other industrial/financial benefits.

10. Products where there is demand growth. While discussing about generation of ideas for the new enterprises, the project stages are to be discussed. The distinct phases are: a) Pre-project phase which consist of idea stage, concept stage, product development stage and test marketing stage and b) Commercialization phase and product life cycle which includes introduction phase, growth phase, maturity phase and decline phase. Summary: Business idea generation is a search for opportunities for

new avenues of growth in business. As per Peter Drucker the opportunities are three types:
Additive opportunities: Here better and intense utilization of existing resources is called for from the decision makers. This also means changes in production and marketing strategies. Complementary opportunities: Bring new ideas in existing products or business to bring in value addition or changes desired in the market. Here character of business is likely to change the risk in business increase. Breakthrough opportunities: New product, new areas new technologies bring in fundamental ideas. Breakthrough changes structure, strategies and business character. The element of risk is the highest and combined with highest gains in case of success.

IDEA GENERATION METHODS:

FOCUS GROUP: A group of individuals discuss and provide information in a structured format to arrive at new business ideas. The leader does not ask questions and solicit answers and act as a moderator. BRAIN STORMING: 1. The group should be informed of the broad areas of the subject or area of discussions. 2. The group should consist of people drawn from different streams of knowledge such as marketing, production, quality control, planning, finance, costing, stores, handling, taxation and the like. The group also should consist of different levels of officers, supervisors from the organization. 3. The brainstorming session should be held in a good place with ambience. So that the group comes open with their ideas.

4. The member should have no inhibitions about their status in the organization or department where they serve. The session should be frank and be fun. The brainstorming sessions are held where no individual or group dominate the discussions and no boss-subordinate relationships. 5. Day dreaming or wild ideas to be encouraged. 6. There should not be any negative comments or criticisms against any particular individuals or groups or departments. 7. The ideas of one can be improved by others but no repetition of ideas. Each individual may be given a chance to three ideas and these ideas be recorded on a flip chart or black board. All the ideas be recorded on the flip chart even if one idea is not practical or illogical. CHECK LIST: Who uses the product? How it is used? Why at all the item is used?

 What are the new ways of usage of the product? Can the product be modified for better value to the customers? What are substitutes available in the market? How they are competitive? Can we combine the features to develop a new product? Can copied and improved product will add value?

Can we modify?
Can we change the shape, colour, packing of the product? Can we make it large, smaller or increase frequency or add new ingredients? Can we bring a substitute product? Change processes, make it smaller or make it lighter?

Use different materials of construction, combine units,

change appeal, change purpose, and bring more positive aspects that attract customers? What products are being used in other countries and why? What are the new emerging products in the particular product range? Problem Inventory Analysis:
Psychological
A. Weight Fattening

Sensory A. Taste Bitter

Activities

Buying Usage Psychological/ Social

A. Serve to company from Would not serve to guests. Too much lastminute preparation. Eat away home Take lunch

A. Meal Planning A. Portability Forget Get tired of it B. Storage

Empty Calories Sweet B. Hunger Filling

Salty

B. Portions

B. Eating alone

B. Appearance Run out

Still hunger after Color eating C. Thirst Unappetising

Not enough in Too much effort to package cook for oneself Package would Creates leftovers Depressing when prepared for just one not fit

C. Preparation

C. Availability

C.Self-image

Psychological

Does not quench Makes one thirsty D. Health

Indigestion Bad for teeth Keeps one awake Acidity

Buying Usage Psychological/ Social Shape Too much Out of season Made by a trouble lazy cook Too many pots Not in Not served by and pans supermarket a good mother. C.Consistency/ never turns out D. Spoilage Texture Too much D. Cooking Gets moldy trouble Too many pots Burns Goes sour and pans Never turns Sticks E. Cost out E. Cleaning Expensive Makes a mess Takes in oven expensive ingredients Smells in refrigerator

Sensory

Activities

SYNECTICS: Step 1: Familiarise with the product and thus removing thus removing the unknown elements of vagueness about the product. Use the analogies by personal, direct, symbolic or fantasy which creates unique solutions for new products.

Step 2:

Mix of Above Methods:

The existing companies when they go in for e-commerce as a new are of business development face few problems such as:

Problem Solution
Problem Analysis Stage I Identify the elements of problems to families entities

Use of analogies Speculation Stage II Fore Fit Solution

Recycle, if necessary

SUMMARY:
Type of need Timing of need

Competitive way to satisfy the need

Perceived benefits and risks Price versus performance

Market size and potential

Payment capacities of customer How you meet the competition from existing or substitute product/s?

CREATIVE PROBLEM SOLVING:

Creative problem solving techniques used are Value analysis

Free association
Forced relationship Collective notebook

Scientific method.
Attribute listing Big dream approach Establishing valuation criteria. Idea state E-commerce

VALUE ANALYSIS:
Can this part be eliminated or replaced? Can this part be reduced? Can this part be made of lesser quality? Can the material of construction be changed? Can the part be made cheaper? Can the part be used else where or can have alternative uses? By employing value analysis techniques the product value can be maximized and the entrepreneur gets a new product or service which is readily marketable.

Free Association: A word or a phrase related to the product problem is written down Next member writes down the words he feels about the new product or the services. The third person writes down the words he feels about the new product or the services.

With each new word the new ideas are generated, new thought processes is developed and thereby creating a chain of new product ideas.
The product ideas crystallize. Forced Relationship: Find the elements of problem.

Write down the relationship between the elements

 Analyse relationships. The result in relationship gives new product of service ideas Build new ideas from the emerging patterns. Collective Notebook: In this method a group regularly meets and record ideas to develop new product services. Each member of the designated group is given a small pocket book containing the background of the product, the relevant data, the statement of the problems and blank pages. Each member of the group studies the problem in his own way and records ideas on each of the issues. The group meets three or four times at regular intervals and record the ideas and suggestions on the questions are raised.

Scientific Method:
Scientific method is a systematic approach of developing new product or service ideas through enquiry and testing.

Attribute Listing:
Listing the attributes of an item. List problems

Critically analyse from positive and negative side of each of issues involved.
Analyse the problem from different view points that is user, seller, manufacturer, transporter, and packer and so on. The combination of use of products is possible by attribute listing.

Big Dream Approach: Example may be also given of that of Ardeshir Godrej, the founder of Godrej Enterprise, who started the enterprise with a big dream that India should be independent and free from the British rule; lead to the idea of an Indian should manufacture and consume Indian products. The big dreams lead him to manufacture soaps and other products. Establishing Evaluation Criteria: The determination of market opportunities and demand for the new product is done. The stages involved are: The consumer profile and requirements that may buy the new product The size of the potential market The share of the market for the product The growth phase of the product Will the new product compete successfully in the market?

 Will the differentiation give an edge in the current and anticipated competition? How the consumer will find the new product? Should there be unique features to meet the consumer needs E-Commerce: a) The product should deliver economically conveniently to different geographical locations. and

b) The product should find interest in parts of the globe or geographical areas.

c) E-commerce should give cost advantage as compared to the present operations.

d) The website created for the product should attract more customers.