Date post: | 14-Apr-2018 |
Category: |
Documents |
Upload: | kirti-srivastava |
View: | 221 times |
Download: | 0 times |
of 31
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
1/31
2ND UNIT
CREATIVITY AND ENTREPRENEURIAL
PLAN: IDEA GENERATION
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
2/31
CREATIVITY & ENTREPRENEURIAL :
Idea Generation (2nd Unit)At the idea stage, individuals find their mindobsessed & occupied with an idea which keepsgrowing. They find great potential for their idea. Awild guess indicates a business opportunity behindthe idea, as it could bring in a change, in the waythings are happening. For shaping the idea andcreating impact on the society, the idea needs tobe pursued further with the help of relevantspecific information. Therefore the need is to linkthe idea to a clear & feasible business opportunity.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
3/31
FEATURES OF THE IDEA STAGE OF A
BUSINESS VENTURE IDEA : Born from a single person, or at times agroup effort of few people.
SENSE: A mission that inspires us with senseand moves us, both through the entrepreneurproject and in the personal field.
UNCERTAINITY : A high level of uncertainty inall areas ( such as technology, market, sector,finance, regulation and rivalry) apart from senseitself.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
4/31
FEATURES OF THE IDEA STAGE OF A
BUSINESS VENTURESACRIFICE : Entrepreneurs work without a
salary and with huge devotion and
commitment. INFORMAL : Company is not yet incorporated
PUBLIC V/S PRIVATE : Hard balance between
keeping the project confidential and making itpublic while seeking information, advise,
answers and feedback
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
5/31
FEATURES OF THE IDEA STAGE OF A
BUSINESS VENTURE AUSTERITY : Care should be taken to keep the
operational cost as low as possible.
SIGNIFICANCE : Many key decisions are made thatwill have a deep impact (positive or negative ) on
the future project evolution.
LEARNING : Broad, slow & expensive due to thecomplexity of the circumstances, and to multiple
faces of the project (technology, market, strategy,
finance, operations, channels, sources of capital.)
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
6/31
FEATURES OF THE IDEA STAGE OF A
BUSINESS VENTURE
TRANSITION : Time to get ready for a change,
assess the situation and decide whether youmake this great jump towards
entrepreneurship.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
7/31
FEATURES OF THE IDEA STAGE OF A
BUSINESS VENTUREA budding entrepreneurs start their journeytowards entrepreneurship with one or few uniqueideas in their hand which, according to them, click
in the market. The most crucial step lies inidentifying one unique idea that separates out fromhundreds of other ideas that are either impracticalor less promising. One of the prominent evaluation
methods successfully used in this stage is thesystematic market evaluation check list, whereeach new product idea is expressed in terms of itschief value merits and benefits ( Gedimen 1965).
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
8/31
THE JOGGERS STOP WATCH
The first digital Joggers Stop Watch was a greatidea ---- except that you could not switch from thestop watch mode to see the real time, without
wiping out the elapsed time on the stop watchfunction. So, a jogger could not tell what time itactually was, only how long they had been running.The execution of the concept is as important as its
abstract description. Also, it often pays to concept-test your competitors product. You can often find afatal flaw in an otherwise good concept, which iseasily correctable.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
9/31
CONCEPT STATE ISSUES TO BE
ADDRESSED
Concept Stage - Issues
Seek Customer Reaction toProducts & Services
Incorporate necessary changes
based on customer feedback
Not Favourableabandon
Product / Services Superior as
compared to existing available
Choices
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
10/31
Product Development is a process focused ondeveloping systematic methods for guiding all thesteps involved in & associated with getting a new
product to market. ProductDevelopment servesas a bridge between a problem or need & providinga solution in life. A PDModel becomes relativelyeasy , in case it revolves around known customers,
product, business model, pricing, distributionprocess and competition. Complication increaseonly when uncertainties & unknown parametersincrease.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
11/31
PRODUCT DEVELOPMENT STAGE
Product
Development
New Products to market place
New Product to the Company
Improved Version of existing
Products
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
12/31
PRODUCT DEVELOPMENT STAGE
Product development may relate to a productthat is either altogether new to themarketplace or new to the company or it
could be improved version of an excitingproduct produced by the company.
It is a process focused on developingsystematic methods for guiding all the stepsinvolved in & associated with getting a newproduct to the market.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
13/31
PRODUCT DEVELOPMENT STAGE
The New Product Development stages
provide the last opportunity provide the last
opportunity to twist & squeeze the product
design to improve its performance andoutlook aesthetically. Even at this stage, the
product development team keeps coming up
with further opportunities for cost saving orfeature enhancement.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
14/31
PRODUCT DEVELOPMENT STAGE
Product development model becomes
relatively easy, in case it revolves around
known customers, product, business model,
pricing, distribution process & competition.However, complication increase as
uncertainties and unknown parameters
increase.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
15/31
PRODUCT DEVELOPMENT STEPS
Collate Critical Inputs Received
Through Focus Groups, Consumers
Generate design specifications &
Incorporate in the product.
Continuous Evaluation based on
predetermined Objective Criteria
Prototype Development
Full Working Model
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
16/31
Test Marketing provides actual salesoutcomes in terms of turnover & specificpreferences revealed by the customers from a
promotion & distribution point of viewrevealing the acceptance level on the part ofthe customers.
The results of the test marketing are carefullymonitored, to derive its advantage in terms oflaunching the product on a larger scale.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
17/31
The Test Marketing can be undertaken in anyarea or combination of areas, such as televisionarea, internet online test, test town & residentialneighbourhood and this stage requires basically
decisions to be taken related to thefollowing.
Which test market ?
What exactly is to be tested ?
How long does a test need to be conducted ?
What are the success criteria ?
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
18/31
STEPS INVOLVED IN TAPPING
OPPORTUNITY
E Seizing theopportunity
Evaluating
Opportunity
Understanding time
frame of an
opportunity
Computingthe worth of
an
opportunity
EstablishingNeed,
undertaking
Market Research
Identifying need
for partners, if
any
Identifying Resources
required & sources to
acquire
Managing the
Venture
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
19/31
SEIZING THE
OPPORTUNITY
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
20/31
Opportunity evaluation basically starts withcustomer pain points or needs that can befulfilled. There should be concrete evidence
backed up by a customers response to aproposed solution and its acceptance by thecustomer.
One needs to clearly define a valuepreposition to the customer with the helpof clearly & concretely identified gains.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
21/31
Every opportunity has a time horizon for whichit exists. Opportunity does not exist before aparticular time and ceases after a given time
horizon. Therefore, the entrepreneurs need tobe ready with delivery of their product / serviceexactly at a time during which opportunityexists.
Successful ventures identify & exploit market in
time, while others miss those opportunitiesbecause of lack of sense about timings.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
22/31
COMPUTING THE WORTH OF AN
OPPORTUNITY
Opportunity cost is defined as the cost
related to the next-best choice available to
someone who has picked from among several
mutually exclusive choices.
The notion of opportunity cost plays a crucial
part in ensuring that scarce resources are
used efficiently.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
23/31
Suppose one has 5 acres of land in the heart ofthe city and decides to build a hotel on it. Theopportunity cost of building a hotel is the value
of the benefits that would be foregone byputting the funds on the next best alternativeuse to which the same land could have been put
to.
By putting the land to hotel use, the possible
alternative opportunities foregone could bebuilding a hospital, school & shopping complex.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
24/31
COMPUTING THE WORTH OF AN
OPPORTUNITY
It is important to remember that the total
opportunity cost of choosing an option
amongst exclusive alternative options can
never be estimated with certainty, and aretherefore called Hidden Costs or Hidden
Losses as what has been prevented from
being produced cannot be seen or known.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
25/31
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
26/31
Will customers take interest in the proposed product orservice ?
What is going to be the market opportunity?
What is the range in which customers will be willing to
pay for the product? How do you propose to expand the market?
What will be the distribution and packaging strategy andcost ?
Who are the competitors and what are their strength &
weaknesses. Can you create exclusive rights on the product through
patenting, copy right, design, trademark or trade secret ?
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
27/31
While making a plan for the venture, theentrepreneur depending upon the businessventure has to develop a clear understanding ofthe need for inducting co-founders if any.
This basically depends on the nature of thebusiness and the size of the operations.
Whenever required, it is desirable to engagesuch development partners in the beginning
phase of the venture itself. These partners add a lot of value by way of
technical and business expertise to the venture.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
28/31
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
29/31
IDENTIFYING RESOURCES REQUIRED
AND SOURCES TO ACQUIRE
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
30/31
Managing the venture requires a managementstructure and style in place, to be duly filled upwith a right set of people to respond tochallenges, difficulties and blocks that may comeon the way of implementation.
To fetch returns on investments made, theentrepreneur needs to invest on people --- build
teams, operating procedures & practices, andinformation technology to make quick & gooddecisions.
7/30/2019 Creativity & Entrepreneurial(Iind Unit) (1)
31/31
Entrepreneurs should always under-promise and
over-deliver to the customer, to ensure building
customer good will.
The growth of the venture depends much upon
developing several types of products around corecompetence and related themes.
Development requires more research andexperimentation & the unending cycle continues.
Thus, innovation is the constant challenge for anyventure and vital to retaining competitive advantage
in the long term.