Entrepreneurship Assignment (8) 6a292

Zubair Ahmad Entrepreneurship

Assignment

Presented by: Zubair Ahmad Presented to: Sajid Hameed Mufti Specialization: MBA-HRM Reg-No. : 1732-109013

Zubair Ahmad Entrepreneurship

Contents:  CREATIVITY AND THE BUSINESS IDEA  METHODS OF GENERATING NEW IDEAS  CREATIVE PROBLEM SOLVING  PRODUCT PLANNING AND DEVELOPMENT PROCESS

Zubair Ahmad Entrepreneurship

CREATIVITY AND THE BUSINESS IDEA METHODS OF GENERATING NEW IDEAS Even with the wide variety of sources available, coming up with an idea to serve as the basis for the new venture can still be a difficult problem. The entrepreneur can use several methods to help generate and test new ideas, including focus groups, brain storming and problem inventory analysis. Focus groups Group of individuals providing information in a structured format is called a focus group. The group of 8 to 14 participants is simulated by comments form other group in creatively conceptualizing and developing new product idea to fulfill a market need. Brainstorming A group method of obtaining new ideas and solutions is called brainstorming. The brainstorming method for generating new ideas is based on the fact that people can be stimulated to greater creativity by meeting with others an d participating with organized group experiences. Although most of the ideas generated from the group have no basis for further development, often a good idea emerges. Problem inventory analysis

Zubair Ahmad Entrepreneurship

Problem inventory analysis uses individuals in a manner that is analogous to focus groups to generate new product ideas. However instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category. They are then asked to identify and discuss products in this category that have the particular problem. This method is often effective since it is easier to relate known products to suggested problems and arrive at a new product idea then to generate an entirely new idea by itself.

CREATIVE PROBLEM SOLVING Creative problem solving is a method for obtaining new ideas focusing on the parameters. Brainstorming The first technique, brainstorming, is probably the most well known and widely used for both creative problem solving and idea generation. It is an unstructured process for generating all possible ideas about a problem within a limited time frame through the spontaneous contribution of participants. All ideas, no matter how illogical, must be recorded, with participants prohibited from criticizing or evaluating during the brainstorming session. Reverse brainstorming Similar to brainstorming, but criticism is allowed and encouraged as a way to bring out possible problems with the ideas. Synectics

Zubair Ahmad Entrepreneurship

Synectics is a creative process that forces individuals to solve problems through one of four analogy mechanisms: personal, direct, symbolic and fantasy. This forces participants to consciously apply preconscious mechanisms through the use of analogies in order to solve problems. Gordon method Gordon method is a method of developing new ideas when the individuals are unaware of the problem. In this method the entrepreneur starts by mentioning a general concept associated with the problem. The group responds with expressing a number of ideas. Checklist method Developing a new idea through a list of related issues is checklist method of problem solving.

Free association method Developing a new idea through a chain of word association is free association method of problem. Forced relationship Forced relationship is the process of forcing relationship among some product combination. It is technique that asks questions about objects or ideas in an effort to develop a new idea. Collective notebook method It is method in which ideas are generated by group regularly recording ideas. Heuristics

Zubair Ahmad Entrepreneurship

It is method of developing a new idea through a thought process progression. Scientific method This is a more structured method of problem solving, including principles and rules for concept formation, making observations and experiments, and finally validating the hypothesis. Value analysis Value analysis is developing a new idea by evaluating the worth of aspects of ideas. Attribute listing This is an idea finding technique that requires the entrepreneur to list the attributes of an item or problem and then look at each from a variety of viewpoints. Matrix charting Matrix charting is a systematic method of searching for new opportunities by listing important elements for the product area along two axis of chart and then asking questions regarding each of these elements. Big dream approach Developing a new idea by thinking about constraints is big-dream approach of problem solving. Parameter analysis Parameter analysis is developing a new idea by focusing on parameter identification and creative synthesis. PRODUCT PLANNING AND DEVELOPMENT PROCESS

Zubair Ahmad Entrepreneurship

Once idea emerges from idea sources or creative problem solving, they need further development and refinement in to final product or service to be offered. This refining process- the product planning and development process – is divided in to five major stages. Idea stage, concept stage, product development stage, test marketing stage and commercializing; it result in the product life cycle. Establishing evaluation criteria At each stage of product planning and development process, criteria for evaluation need to be established. These criteria should be broad, yet quantitative enough to screen the product carefully in the particular stage of development. Criteria should be developed to evaluate the new product in of market opportunity, competition the marketing system, financial factors and production factors. A market opportunity and adequate market demand must exist. Current competing producers, prices, and policies should be evaluated in their impact on market share. The new product should be compatible with existing management capabilities. The product should be able to be ed by and contribute to the company’s financial structure. The compatibility of new product’s production requirements with existing plant, machinery, and personnel should be determined. Entrepreneurs should formally evaluate an idea throughout its evolution.

Idea Stage Promising new product ideas should be identified and impractical ones eliminated in the idea stage allowing maximum use of company’s resources. In the systematic market evaluation checklist method, each new product idea is expressed in of its chief values, merits, and benefits. This technique can be used to determine which new products should be pursued. The company should also determine the need for the new product and

Zubair Ahmad Entrepreneurship

its value to the company. Need determination should focus on the type of need, its timing, the s involved, the importance of marketing variables, and the overall market structure and characteristics. In determining the product’s value to the firm, financial scheduling should be evaluated. Concept Stage In the concept stage the refined idea is tested to determine consumer acceptance without manufacturing it. One method of testing is the conversational interview in which respondents are exposed to statements that reflect attributes of the product. Features, price, and promotion should be evaluated in comparison to major competitors to indicate deficiencies or benefits. The relative advantages of the new product versus competitors should be determined. Product Development Stage In this stage, consumer reaction is determined, often through a consumer . The can be given samples of the product and competitors’ products to determine consumer preference. Participants keep the record of their use of product and comment on its virtues and deficiencies. The of consumers is also given a sample of product and one or more competitive product simultaneously. One test product may already be on the market, whereas the other test product is new. Test Marketing Stage Although the results of product development stage provide the basis of the final marketing plan, the market test can be done to increase the certainty of successful commercialization. The last step in the evaluation process, the test marketing stage, provides actual sales results which indicate the acceptance level of consumers.

References:

Zubair Ahmad Entrepreneurship

Entrepreneurship 7th edition Hisrich-Peters-Shepherd. Entrepreneurship notes by Virtual University. www.entrerepenerur.com blog.entrepreneur.com