SARDAR PATEL COLLEGE OF

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BACHELOR OF BUSINESS ADMINISTRATION IN INFORMATION SYSTEM
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MANAGEMENT BBA (ISM) - SEMESTER– IV
BUSINESS STARTUP (UM04VABBS04)
UNIT: 1 INTRODUCTION& DEVELOPING SUCCESSFUL BUSINESS IDEAS

Unit Outcomes
• Students can get acquainted with basics of start up.
• Students can find new avenues for start up by using various skills
• New idea generation will be possible for future start up programmes.

WHAT IS BUSINESS?
A business can be described as an organization or enterprising entity that engages
in professional, commercial or industrial activities. There can be different types of
businesses depending on various factors. Some are for-profit, while some are non-
profit. Similarly, their ownership also makes them different from each other. For
instance, there are sole proprietorships, partnerships, corporations, and more.
Business is also the efforts and activities of a person who is producing goods or
offering services with the intent to sell them for profit.Business refers to an
enterprising entity or organization that carries out professional activities.They can
be commercial, industrial, or others. For-profit business entities do business to
earn a profit, while nonprofit ones do it for a charitable mission. Business
ownership includes partnerships, sole proprietorships, corporations, etc.
Businesses can be small-scale or large-scale. Some of the biggest businesses in
the world are Amazon and Walmart.

WHAT IS A STARTUP?
A startup is an entrepreneurial venture in the early stages of operations, typically
created for resolving real-life problems. As many startups solve society's needs,
they attract investors and funders because of the tremendous growth
opportunities.
A Startup is a new business venture providing services or products to an existing
and growing market. A startup is in the first stage of operations and comprises one
or more entrepreneurs.The primary aim is to answer market demand by creating
new and innovative products or services. While most small businesses might
intend to stay small, a startup focuses on fast growth in a designated
market.Usually,such companies start as an idea and gradually grow in to a viable
product, service or platform.

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Startups begin with high costs and have limited revenue. Also, they do not have a
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developed business model and lacks adequate capital to move to the next phase.
As a result, these companies seek funding from various sources, such as venture
capitalists, angel investors and banks. Investors or lenders might offer additional
funds for a share of future profits and partial ownership.

DEFINITION FOR STARTUP

As per the definition provided by the Department of Promotion of Industry and
Internal Trade (DPIIT), a startup is an entity:
• That is incorporated as a private limited company, a partnership firm, or a
limited liability partnership (LLP).
• The entity has been operating for less than ten years from its incorporation
or registration date.
• Whose turnover for any financial year since its incorporation has not
exceeded INR 100 crore (approximately USD 14 million).
• That is working towards innovation, deployment, development, or
commercialization of new processes, products, or services driven by
technology or intellectual property.
Main characteristics of a startup company
Innovation – Startups are usually founded on a unique idea
High Growth Potential – Startups are designed to proliferate,
Scalability – Scalability refers to the ability of a company to overgrow while
maintaining or increasing its efficiency and profitability.
Problem-solving – startups are often focused on solving problems.
Customer Focus – Startups are focused on creating value for their customers.

HOW ARE STARTUPS FUNDED?

Startups generally raise money via several rounds of funding:
There’s a preliminary round known as bootstrapping, when the founders, their friends and
family invest in the business.
After that comes seed funding from so-called “angel investors,” high-net-worth individuals
who invest in early stage companies.
Next, there are Series A, B, C and D funding rounds, primarily led by venture capital
firms, which invest tens to hundreds of millions of dollars into companies.
Finally, a startup may decide to become a public company and open itself up to outside
money via an IPO, an acquisition by a special purpose acquisition company (SPAC) or a
direct listing on a stock exchange. Anyone can invest in a public company, and the

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startup founders and early backers can sell their stakes to realize a big return on
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investment.
It’s worth noting that the initial stages of startup funding are limited to those with
especially large pockets, people called accredited investors, because the Securities and
Exchange Board of India believes that their high incomes and net worths help shield them
from potential loss.
TYPES OF STARTUP
In our modern world, where everyone strives to bring innovation, a good idea isn’t enough
to create a startup. To understand the features of different startups better, you need to
review the following six types.
Scalable startups
Companies in a tech niche often belong to this group. Since technology companies often
have great potential, they can easily access the global market. Tech businesses can
receive financial support from investors and grow into international companies. Examples
of such startups include Google, Uber, Facebook, and Twitter. These startups hire the
best workers and search for investors to boost the development of their ideas and scale.
Small business start-ups
These businesses are created by regular people and are self-funded. They grow at their
own pace and usually have a good site but don’t have an app. The purpose of a small
business startup is longevity rather than scalability. While these businesses have an
interest in growth, they grow at their own pace. Business owners usually bootstraps and
self-finance these startups. This means that they have less pressure to scale. Some
examples of small business startups include hairdressers, grocery stores, travel agents
and bakers. Also, many of these startups are family-owned. A small business startup is a
right choice if a business plans to hire locals and family membersto operate a business or
create a sustainable and long-lasting business. Grocery stores, hairdressers, bakers, and
travel agents are the perfect examples.
Lifestyle start-ups
People who have hobbies and are eager to work on their passion can create a lifestyle
startup. They can make a living by doing what they love. We can see a lot of examples of
lifestyle startups. Let’s take dancers, for instance. They actively open online dance
schools to teach children and adults to dance and earn money this way.
Buyable start-ups
Unlike other startups on this list, buyable startups do not aim to become large and
successful. A business owner builds such a company from scratch to sell it to a big
company. Usually, you are likely to find such companies in the technology and software
industry.Many of these startup industries are in the mobile application development
industry. A buyable startup is a right choice if a business owner wants to develop a

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company but do not want to operate it long term or if the business idea has tremendous
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growth potential. In the technology and software industry, some people design a startup
from scratch to sell it to a bigger company later. Giants like Amazon and Uber buy small
startups to develop them over time and receive benefits.
Big business start-ups
Large companies have a finite lifespan since customers’ preferences, technologies, and
competitors change over time. That’s why businesses should be ready to adapt to new
conditions. As a result, they design innovative products that can satisfy the needs of
modern customers.Large company startups.A large company or offshoot startup includes
large companies that have been in operation for a long time. Companies that fit into this
category start with revolutionary products and quickly become famous. As big businesses
are self-sufficient, they grow along with new market demands and trends. For this reason,
it is essential for these companies to keep up with changes to sustain themselves.Backed
by support and capital, these offshoot startups focus on diversifying product offerings and
plans to reach new audiences. An offshoot startup is a right choice if a business owns a
large company or wants to penetrate a new market that is not the business's primary
focus.
Social entrepreneurship startups
Unlike other types of startups, a social entrepreneurship startup does not focus on wealth
generation for the founders. Instead, they build such a business to change the
environment and society positively. Some examples of these companies include charities
and non-profit organizations. These companies usually scale for doing philanthropy
activities. Though they operate like other startups, they do it through donations and
grants. A social startup is a right choice if a business plans to create a positive
environmental or social impact or if the company has an idea of solving a wide spread
social problem.
SKILLS FOR STARTUP
Starting a business requires a unique set of skills and personal qualities that can make all
the difference between success and failure. Being a startup founder is a challenging role
that demands a combination of entrepreneurial spirit, strategic thinking, and a strong drive
for success. In this article, we will explore some of the key skills and personal qualities
that are essential for a startup founder.

1. Visionary Leadership:
A startup founder needs to possess a clear and compelling vision for their business. They
should be able to articulate their long-term goals and inspire others to rally behind their
vision. Effective leadership skills are crucial for setting the direction, making tough
decisions, and motivating the team to achieve the company's objectives.

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2. Resilience and Perseverance:
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Building a startup is not for the faint of heart. It often involves facing numerous
challenges, setbacks, and failures along the way. A resilient founder can bounce back
from adversity, learn from their mistakes, and keep pushing forward. Perseverance is key
to weathering the storms that inevitably arise in the startup journey.
3. Adaptability and Flexibility:
The business landscape is constantly evolving, and startups need to be agile to stay
ahead of the curve. A founder who can adapt quickly to changing market conditions,
customer needs, and technological advancements has a better chance of succeeding.
Being open to new ideas, embracing change, and adjusting the business strategy
accordingly are vital qualities for a startup founder.
4. Strong Work Ethic:
Founding a startup requires a tremendous amount of hard work and dedication. Long
hours, late nights, and weekends are often part of the job. A strong work ethic is
necessary to drive the business forward and lead by example. The founder should be
willing to put in the time and effort required to build a solid foundation for their venture.
5. Problem-Solving Skills:
Startups face a myriad of problems and obstacles on a daily basis. Whether it's
troubleshooting technical issues, resolving conflicts within the team, or finding creative
solutions to business challenges, a founder needs to be an effective problem solver. The
ability to analyze problems, think critically, and come up with innovative solutions is a
valuable asset for any startup founder.
6. Networking and Relationship Building:
Building a network of contacts and fostering relationships with key stakeholders is crucial
for the success of a startup. A founder who can network effectively can tap into valuable
resources, gain industry insights, and form strategic partnerships. Good interpersonal
skills, strong communication, and the ability to connect with people are essential for
building a strong network.
7. Financial Management:
A startup founder must have a solid understanding of financial management. They need
to be able to create and manage budgets, forecast cash flow, and make sound financial
decisions. Being able to effectively allocate resources and monitor financial performance
is vital for the long-term sustainability of the business.
8. Continuous Learning:
The startup landscape is dynamic, and successful founders are lifelong learners. They
stay updated on industry trends, seek out new knowledge and skills, and actively pursue
personal and professional growth. Being open to learning and adapting allows founders to
stay ahead of the competition and make informed decisions.

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9. Legal and Compliance:
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Understanding of legal requirements, business registration, intellectual property,
contracts, and regulatory compliance.
10. Disciplined
Successful entrepreneurs are focused on making their businesses work. They eliminate all
hindrances and distractions to their goals and outline tactics to accomplish them. They
focus on the day-to-day operations of their business without disregarding their long-term
goals. Successful entrepreneurs are disciplined enough to take steps every day toward the
achievement of their goals and objectives.
11. Calculated Risk-Taking
Startups often involve taking risks, and not all of these risks end up working out. This is
why it’s really important for people who want to work in startups to have a positive attitude.
If you want to work in a startup, you should be good at seeing the bright side even when
things don’t go as planned.

In conclusion, being a startup founder requires a unique combination of skills and

personal qualities. While some of these qualities can be learned and developed over time,
others are inherent to the individual. A successful founder possesses visionary
leadership, resilience, adaptability, a strong work ethic, problem-solving skills, networking
abilities, financial acumen, and a commitment to continuous learning. By cultivating these
skills and qualities, founders can increase their chances of navigating the challenges and
achieving success in the competitive startup ecosystem.

DEVELOPING SUCCESSFUL BUSINESS IDEAS

❖ RECOGNIZING OPPORTUNITIES
What is a Business Opportunity?
A business opportunity is like a golden chance for someone who wants to start their own
business and make money.A business opportunity refers to a situation where a person or
organization identifies a need or demand in the market that can be met through a new
business venture or expansion of an existing one. Opportunities for a business involve a
specific product, service, or niche that has the potential for profit.
Identifying business opportunities involves recognizing gaps in the market, emerging
trends, consumer needs, or areas where there is room for innovation and improvement. It
requires careful analysis of market dynamics, competition, and potential risks and
rewards.
It’s when you notice something missing in the market or something people really need
but can’t find easily. For example, maybe people want a new type of gadget, or there’s a
service everyone wishes they had. When you see this gap or need, that’s the

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opportunity part. Now, what you do is come up with a product or service that fits right
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into that gap or fulfills that need. It’s like solving a problem for people, and when they
pay for your solution, that’s how you make a profit. So, a business opportunity is like
finding a key to success by spotting what people want and creating something to give it
to them.

How to Identify a Business Opportunity

1. Market Research: Market research is like putting on a detective hat for your
business. It involves digging into market trends, understanding what customers want,
and checking out what your competitors are up to. By analyzing the market, you can
uncover gaps or needs that haven’t been met, laying the groundwork for potential
business opportunities.
2. Problem Solving: Successful businesses often start with a problem in need of a
solution. Identifying problems in the market or recognizing areas where things could be
better is the first step. Then, it’s about coming up with innovative solutions that make life
easier or more enjoyable for customers. It’s like being a detective and an inventor rolled
into one – finding problems and creating solutions.
3. Networking: Networking is your business’s social circle. By staying connected to
industry peers, mentors, and experts, you get a sneak peek into what’s happening in
your field. Sometimes, opportunities come from these connections – hearing about a
gap in the market or getting advice from someone who’s been there before. Networking
is like having friends who share tips and open doors to potential opportunities.
4. SWOT Analysis: SWOT analysis is your business’s self-reflection. It stands for
strengths, weaknesses, opportunities, and threats. By evaluating these aspects, you get
a clearer picture of where your business stands and what possibilities lie ahead. It’s like
having a roadmap that shows you where you can shine, where you need improvement,
and where opportunities might be hiding.
5. Technology Trends: Keeping an eye on technology trends is like looking into a
crystal ball for business opportunities. Technology is always evolving, and sometimes,
new opportunities emerge as a result. It could be finding ways to use the latest gadgets
or leveraging emerging technologies to solve problems in your industry. It’s like riding
the wave of innovation to discover new possibilities for your business.

Importance of a Business Opportunity

The importance of a business opportunity lies in its potential to bring about substantial
positive changes for entrepreneurs and the broader economy.
1) Revenue Generation: At its core, a business opportunity is a pathway to making
money. Successfully identifying and tapping into opportunities can lead to substantial

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financial gains. This not only benefits individual business owners but also contributes to
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the economic well-being of the community and the nation as a whole.
2) Innovation: Opportunities act as catalysts for innovation. They bring forth challenges
or needs within the market that demand creative solutions. Entrepreneurs, driven by the
desire to capitalise on these opportunities, are prompted to think outside the box. This
process often results in the development of new products, services, or more efficient
business processes, fostering ongoing innovation within industries.
3) Economic Growth: Successful businesses arising from identified opportunities play
a pivotal role in fostering economic development. They generate job opportunities,
employing individuals within the community. Additionally, these businesses stimulate
economic activity by engaging in transactions with suppliers, customers, and other
businesses. This ripple effect contributes to the overall growth of the economy.
4) Competitive Edge: Recognising and acting on a business opportunity before
competitors is akin to securing a strategic advantage. Being ahead in the game
allows entrepreneurs to establish themselves in the market, build a customer base, and
solidify their position. This competitive edge is crucial for the long-term success and
sustainability of a business, establishing a foothold that is challenging for competitors to
overcome.
5) Adaptability: Businesses actively seeking and capitalizing on opportunities are
inherently more adaptable to market changes. By staying attuned to emerging trends,
consumer preferences, and technological advancements, these businesses can adjust
their strategies swiftly. This adaptability is crucial for navigating the dynamic business
landscape, ensuring that the company remains relevant and resilient in the face of
changing market conditions.

Characteristics of a Good Business Opportunity

1. Market Demand: A good business opportunity taps into a real need or want in the
market. It’s not just an idea; it’s about solving a problem or offering something people
really want. This ensures that there’s a genuine interest and willingness to pay for what
you’re providing.
2. Feasibility: Feasibility means your idea can actually work in the real world. It should
be doable with the available technology, financially sound (costs shouldn’t outweigh
earnings), and operationally practical. Think of it as having a plan that’s not just on
paper but can be executed without major problems.
3. Sustainability: A good opportunity is not a quick fix; it’s something that can last. It
should have the potential for long-term success, not just a short-term trend. This means
it can adapt and grow over time, staying relevant as things change.

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4. Competitive Advantage: Your opportunity should stand out from the crowd with
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a unique selling proposition (USP) that offers a competitive advantage. It’s about being
different or better than what’s already out there. Having a competitive advantage means
your business has something special that attracts customers and makes it hard for
others to copy.
5. Scalability: Scalability is about growth potential. A good opportunity allows you to
expand and reach more people or markets. It’s not just about starting small; it’s about
having the potential to get bigger without breaking. Think of it like a recipe you can
easily double or triple without messing it up.
Good business opportunity meets a real market need, is doable in the real world, can
last in the long run, stands out from the competition, and has the potential to grow.
These qualities make an opportunity solid and increase its chances of success.

❖ TREND ANALYSIS
Trend analysis is defined as a statistical and analytical technique used to evaluate and
identify patterns, trends, or changes in data over time. It involves the examination of
historical data to uncover insights into the direction or tendencies of a particular
phenomenon. Trend analysis is applied in various fields, including finance, economics,
marketing, and science, to make informed decisions and predictions based on past
performance or behavior. Trend analysis involves collecting the information from
multiple periods and plotting the collected information on a horizontal line to find
actionable patterns from the given information.
Key components of trend analysis include:
• Time Series Data: Trend analysis relies on time series data, which is a
sequence of observations or measurements collected and recorded over
successive intervals of time. This could be daily, monthly, yearly, etc.
• Data Visualization: Visual representation of data, such as line charts or
graphs, is often used in trend analysis to illustrate patterns and trends over
time.
• Identification of Patterns: Analysts examine the data to identify recurring
patterns, trends, or cycles. These patterns could be upward (indicating growth),
downward (indicating decline), or cyclical.
• Statistical Methods: Various statistical methods may be employed to quantify
and analyze trends. This could include moving averages, regression analysis,
or other time series analysis techniques.
• Extrapolation and Prediction: Based on identified trends, analysts may
extrapolate into the future to make predictions about potential future values or
outcomes.

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Steps in Trend Analysis
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Trend analysis involves a systematic approach to examining historical data to identify
patterns, tendencies, or changes over time. Here are the steps in conducting trend
analysis:
Step 1: Define Objectives
Clearly articulate the objectives of the trend analysis. Understand the specific
questions or issues you aim to address, ensuring a focused and purposeful analysis.
Step 2: Data Collection
Gather relevant historical data related to the phenomenon under investigation. Ensure
that the data is accurate, complete, and representative of the time period of interest.
Step 3: Data Cleaning and Preprocessing
Clean and preprocess the data to address any inconsistencies, missing values, or
outliers. This stage guarantees that the data is appropriately formatted for analytical
purposes.
Step 4: Data Visualization
Create visual representations of the data, such as line charts, bar graphs, or scatter
plots. Visualization helps in identifying visual patterns and trends in the data.
Step 5: Time Series Analysis
If dealing with time-based data, conduct a time series analysis to explore patterns over
different time intervals. This may involve calculating moving averages, identifying
seasonality, or examining long-term trends.
Step 6: Choose Analysis Methods
Select appropriate analysis methods based on the nature of the data and the
objectives of the analysis. This could include statistical methods, regression analysis,
or machine learning algorithms.
Step 7: Identify Key Metrics
Define key performance indicators (KPIs) or metrics that are relevant to the analysis
objectives. Focus on specific variables that capture the essence of the trends you are
investigating.
Step 8: Segmentation and Subgroup Analysis
Consider segmenting the data into subgroups or categories to analyze trends within
specific subsets. This can reveal variations and patterns that may be masked in an
overall analysis.
Step 9: Statistical Testing
Apply statistical tests to assess the significance of observed trends. This step helps
determine whether the identified patterns are statistically significant or if they could
occur by chance.
Step 10: Validate Findings

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Validate the identified trends by comparing them with independent data sources or
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benchmarks. Cross-checking findings enhances the reliability of the analysis.
Step 11: Interpretation
Interpret the results in the context of the objectives and the broader environment.
Consider the implications of the identified trends and patterns.
Step 12: Documentation
Document the methodology, assumptions, and limitations of the analysis. Transparent
documentation ensures that others can understand and replicate the analysis.
Step 13: Communication
Communicate the findings in a clear and understandable manner. Tailor the
communication to the audience, emphasizing key insights and actionable takeaways.
Step 14: Periodic Review and Updates
Schedule periodic reviews to reassess and update the trend analysis. Trends may
evolve over time, and regular updates ensure that insights remain relevant.
Step 15: Feedback and Collaboration
Seek feedback from relevant stakeholders and encourage collaboration among team
members. Collaborative input enhances the robustness of the analysis.
By following these steps, analysts can systematically conduct trend analysis, leading
to actionable insights and informed decision-making based on historical data patterns.
Trend Analysis Examples
Trend analysis is applied across various domains to gain insights into patterns and
changes over time. Here are examples of trend analysis in different fields:
• Financial Markets: Analyzing historical stock prices to identify trends in the
performance of a particular company or industry. Investors use trend analysis to
inform their decisions on buying or selling stocks.
• Sales and Marketing: Tracking sales data over several quarters to identify
seasonal trends or changes in consumer preferences. Businesses use this
information to adjust marketing strategies and optimize product offerings.
• Technology Adoption: Analyzing the adoption rates of smartphones or other
technologies over the years. Companies use this information to anticipate
market trends and plan product development.
• Educational Performance: Examining historical student performance data to
identify trends in academic achievement. Schools and education policymakers
can use this analysis to implement targeted interventions.
• Customer Satisfaction: Tracking customer satisfaction scores over time to
identify trends in customer experience. Businesses use this analysis to make
improvements and enhance customer loyalty.

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• Technology Performance: Monitoring the performance of software or
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hardware systems over time to identify trends in reliability, efficiency, or user
satisfaction. IT departments use this analysis for system optimization and
upgrades.
These examples illustrate the diverse applications of trend analysis in different
sectors, helping organizations make informed decisions based on historical data
patterns.
Benefits of Trend Analysis in Decision-Making
Trend analysis offers several benefits across various industries and sectors. Here are
some key advantages:
1. Informed Decision-Making
Trend analysis provides historical context, enabling organizations to make informed
decisions based on past patterns and behaviors. This is particularly valuable in
strategic planning and resource allocation.
2. Anticipation of Future Trends
By identifying and understanding historical trends, organizations can anticipate future
developments and prepare for potential shifts in the market, technology, or consumer
behavior.
3. Risk Management
Trend analysis helps in identifying and mitigating risks by uncovering patterns that
may indicate potential challenges or threats. This allows organizations to proactively
address issues before they escalate.
4. Resource Optimization
Understanding trends in resource usage, demand, or performance allows
organizations to optimize their resources more effectively. This includes managing
inventory, workforce, and operational processes efficiently.
5. Strategic Planning:
Organizations can use trend analysis to develop and adjust long-term strategies. This
includes market entry strategies, product development plans, and other initiatives
aligned with identified trends.
6. Performance Evaluation:
Trend analysis provides a basis for evaluating the performance of various aspects of
an organization, such as sales, marketing campaigns, and operational efficiency. It
helps in assessing the success of past initiatives.
7. Improved Forecasting
Trend analysis enhances forecasting accuracy by providing a historical perspective on
variables that impact predictions. This is crucial for financial planning, demand
forecasting, and other predictive modeling activities.

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8. Market Intelligence
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By analyzing trends in the market, organizations gain valuable insights into consumer
preferences, competitive landscapes, and emerging opportunities. This intelligence is
essential for staying competitive and innovative.
9. Early Detection of Issues
Trends may reveal early signs of potential issues or opportunities. Early detection
allows organizations to address challenges proactively and capitalize on emerging
opportunities before competitors.
10. Enhanced Customer Satisfaction
Understanding trends in customer behavior and preferences helps in tailoring
products, services, and customer experiences. This leads to improved customer
satisfaction and loyalty.
11. Optimized Marketing Strategies
Marketers can use trend analysis to evaluate the performance of past marketing
campaigns and identify effective strategies. This information guides the development
of future campaigns and messaging.
12. Operational Efficiency
Trend analysis in operations helps organizations streamline processes, reduce
inefficiencies, and improve overall operational performance. This can result in cost
savings and increased productivity.
13. Regulatory Compliance
Organizations can use trend analysis to track changes in regulatory requirements over
time. This ensures ongoing compliance and helps anticipate future regulatory trends.
14. Continuous Improvement
By identifying areas for improvement through trend analysis, organizations can
implement continuous improvement initiatives. This fosters a culture of innovation and
adaptation.
15. Investment Decisions
Investors and financial analysts use trend analysis to evaluate the historical
performance of stocks, bonds, and other investment instruments. This informs
investment decisions and risk assessments.
Trend analysis serves as a valuable tool for organizations seeking to adapt to
changing environments, capitalize on opportunities, and mitigate risks. It enhances
strategic decision-making and contributes to overall organizational effectiveness.

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Types of trends
1. Uptrend
An uptrend or bull market is when financial markets and assets - as with the broader
economy-level - move upward and keep increasing prices of the stock or the assets or
even the size of the economy over the period. It is a booming time where jobs get
created, the economy moves into a positive market, sentiments in the markets are
favorable, and the investment cycle has started.
2. Downtrend
Companies shut down their operation or shrank the production due to as lump in sales.
A downtrend or bear market in a stock market trend analysis is when financial markets
and asset prices - as with the broader economy- level - move downward, and prices of
the stock or the assets or even the size of the economy keep decreasing over time.
Jobs are lost, asset prices start declining, sentiment in the market is not favorable for
further investment, and investors run for the haven of the investment.
3. Sideways/horizontal
A sideways/horizontal trend means asset prices or share prices – as with the broader
economy level – are not moving in any direction; they are moving sideways, up for some
time, then down for some time. The direction of the trend cannot be decided. It is the
trend where investors are worried about their investment, and the government is trying
to push the economy in an uptrend. Generally, the sideways or horizontal trend is
considered risky because when sentiments will be turned against cannot be predicted;
hence investors try to keep away in such a situation.
Limitations
Some limitations of the method are as follows:
• It assumes that the trends identified from the historical data will continue in
future, which may not be the real case. Trends keep changing in every field.
• The data used may not be authentic or reliable enough to interpret correctly. The
quality issues lead to incorrect conclusion and decision making.
• In case of trend analysis in accounting or any other field predictions are limited to
a particular extent. If there are some unforeseen contingencies, the predictions will be
useless.
• The analysis just provides some conclusion based in numerical form. It does not
provide the reason of the particular trend which may be on the upside or downside. To
understand the reason, further analysis is needed.
• Trends are not always in a linear form. It may have a seasonal pattern or cyclical
pattern, which is again difficult to interpret and analyse.

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• There is always a risk of business in the trend analysis methods. Analysts may
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sometimes interpret the data based on their own assumptions or expectations.
❖ GENERATING IDEAS
An idea is a thought, suggestion, or a mental image about a possible outcome or course
of action that can be used to help achieve a particular goal. Ideas can be tangible or
intangible. Tangible ideas are those that are well-formed and that can be clearly
described, expressed, or put into action. Intangible ideas are the opposite; they are not
easily defined or clear in the person's mind. Idea generation is a creative process that is
used to form new ideas or concepts and to help convert intangible ideas into tangible
ones. This process is also referred to as ideation. Idea generation involves coming up
with many ideas in a group setting, finding ways to use these ideas, and then
transferring the ideas to real-world instances.

Idea generation means to create, develop and communicate ideas which are concrete,
abstract, or visual. A company makes use of this process to come up with solutions to
problems.

After the generation of ideas, the team works on validating the ideas, choosing the best
one and then coming up with a plan to implement it. Only after this does the team move
on to the further steps of building upon it. Idea generation is the first step of the
complete innovation management funnel. The idea may be something you can touch
and see (tangible) or one which is symbolic in nature.

Ideas are the starting point towards making changes. Ideally, ideas are meant to bring
about positive improvement. This could be anywhere, in a region, a company, or the
world at large. For the sake of this blog, we will be limited to understanding idea
generation in businesses. So, we'll see how businesses come up with ideas. This would
be through the help of a number of techniques which we see below. Of course, the
process of idea generation is not limited to these techniques but can be done in any
way you wish to.
Importance of Idea Generation
Idea generation is important because it helps people find new solutions and approaches
to solving a variety of problems. It can help an individual come up with ideas that they
otherwise might not have. Idea generation can also be used to reflect on past ideas and
as a means to refine previous solutions to a problem. If a previously devised solution
does not help one achieve a certain goal, idea generation can be used to refine the idea
in ways that may be more useful. Companies often use this approach as a way to
determine which solutions are effective at addressing specific problems or tasks.

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Steps involved in Idea generation
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As already mentioned, the ways companies find ideas are different and need not be
uniform. But, we will see what are the overall steps the company takes to come up with
a new idea.
Thomas Edison proposed a streamlined set of steps for the idea generation process.
This is often used by product building and marketing teams. Here is a summary of the
steps he proposed.
Enable - This means searching for the field you want to develop an innovation in.
Define - In this stage, you'd be defining search queries and paths.
Inspire - Here, you'd be looking at other areas and try finding inspiration on how to go
about with things.
Select - This is where you'd be picking one idea from the various ones in mind.
Optimize - Take the initial idea and make it better by working on it and finalizing the
concept.
Nurture - This is when you implement the idea in various ways to eventually sell it.
Techniques used for idea generation
The following are some tried and tested methods you could use for the generation of
ideas. Firms make use of one or more of these to come up with ideas for innovation.
Techniques of idea generation include Brainstorming, Mind Mapping, SWOT Analysis
and SCAMPER Technique.
Brainstorming
Brainstorming is a collaborative and creative technique to create a wide range of ideas
for a specific problem or task. It typically involves a group of individuals but can also be
done individually. The key principles of brainstorming are:
Quantity Over Quality: The goal is to initially produce as many ideas as possible
without judgment or criticism. The more ideas, the better.
Free Expression: Participants should feel free to express any idea, no matter how
unconventional or seemingly impractical it may be.
Build on Others’ Ideas: Encourage participants to expand on or combine ideas put forth
by others, fostering a collaborative atmosphere.
Example: In a brainstorming session for a new restaurant concept, team members
might suggest ideas like a themed menu based on classic movies, an interactive dining
experience, or a sustainable farm-to-table approach.

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Mind Mapping
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Visual brainstorming techniques like mind mapping help organize ideas in a structured
and interconnected manner. It starts with a central idea or concept and branches into
related subtopics or ideas. Key elements of mind mapping include:
Central Idea: Begin with a central topic or concept and write it down at the centre of a
page.
Branching: Create branches extending from the central idea, each representing a
subtopic or related concept.
Hierarchy: Subtopics can have further sub-branches, creating a hierarchical structure
that captures the relationships between ideas.
Keywords and Visuals: Use keywords and visual elements like icons or colours to
enhance understanding and memory.
Example: When planning a marketing strategy, you can create a mind map with the
central idea “Marketing Plan” branching into subtopics like “Target Audience,”
“Advertising Channels,” “Budget Allocation,” and “Key Performance Indicators (KPIs).”
SWOT Analysis
SWOT Analysis is a strategic planning tool to assess a business or project’s internal
strengths and weaknesses and external opportunities and threats in the market or
environment. It involves the following components:
Strengths: Identify the internal attributes and resources that provide a competitive
advantage. These could be skilled employees, cutting-edge technology, or strong brand
recognition.
Weaknesses: Recognize internal limitations or areas for improvement, such as lack of
funds, outdated infrastructure, or poor management.
Opportunities: Examine external factors that benefit the organization, like emerging
markets, changing consumer preferences, or new technologies.
Threats: Identify external factors that could harm the organization, such as increased
competition, economic downturns, or regulatory changes.
Example: In a SWOT Analysis for a small retail business, strengths might include a loyal
customer base, while weaknesses could involve limited financial resources.
Opportunities could include expanding into e-commerce, while threats might include a
downturn in the local economy.

SCAMPER Technique
The SCAMPER technique is a creative thinking tool offering seven ways to manipulate
existing ideas, products, or processes to generate new and innovative solutions. Each
letter in SCAMPER represents a specific action:

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Substitute: Identify elements that can be substituted with something else. For example,
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traditional fuel in vehicles can be replaced with electric power.
Combine: Merge different concepts, features, or ideas to create something new. For
example, a smartphone and a fitness tracker can be combined to create a health-
monitoring device.
Adapt: Modify an existing idea or concept to suit a new context or purpose. For
example, adapting a restaurant’s menu to cater to vegan or gluten-free diets is an
adaptation.
Modify: Alter specific attributes or characteristics of an idea, such as changing its size,
shape, or colour. For example, a backpack’s design could be modified to include solar
panels for charging devices.
Put to Another Use: Find alternative uses for an existing product or concept.
Repurposing shipping containers into housing units is putting them to another use.
Eliminate: Identify elements, features, or steps that can be removed without
compromising the overall concept or function. Eliminating physical buttons on a
smartphone in favour of touchscreen technology is an elimination.
Reverse (or Rearrange): Change the order or sequence of elements in a concept. For
example, reversing the order of a recipe’s steps can lead to a new dish.
Example: Applying the SCAMPER technique to the concept of a traditional bicycle, you
might “Combine” it with an electric motor to create an electric bicycle or “Reverse” the
handlebars and pedals to create a recumbent bicycle.

Reverse Thinking
Opposite or reverse thinking is to look at a problem to see how it comes about. Take if
you want to increase the number of visitors to your website. Here, you'd try to
understand what are the things that are keeping visitors from coming to your website.
This could be a poor landing page, bad SEO, lack of content, and other such factors.
So, instead, you have to then work on only those things which will be conducive to
increasing users to your site.
When using reverse thinking, you can come up with various solutions to solve problems
the same way - determining what makes it worse and then avoiding it.

Idea generation is the lifeblood of innovation, problem-solving, and creativity in all

aspects of life and industry. It’s a dynamic process that thrives on diversity of thought,
conducive environments, and the ability to overcome creative blocks. Individuals and
organizations can tap into their creative potential with the right techniques and mindset.
It continuously produces fresh, valuable ideas that drive progress and transformation. In

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an ever-evolving world, the power of idea generation remains a vital force for shaping
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the future.

❖ BRAINSTORMING
Brainstorming is a group creativity technique that is often used to find a solution to a
specific problem. This is accomplished by gathering and recording new ideas from team
members in a free-flowing manner.
Brainstorming sessions are usually made up of a handful of core team members, and
typically are led by a director or facilitator.
During the brainstorming sessions, ideas are collected and recorded using whatever tool
is available to the team. Modern businesses have begun to adopt digital brainstorming
tools to speed up the process and make the review phases faster and more productive.
Quantity of ideas is usually emphasized over quality, with the goal of generating as many
new suggestions as possible. Once all ideas have been collected, the team then
evaluates each of them and focuses on the ones that are most likely to solve the problem.
History: Alex Osborn Gives Birth to Brainstorming
In the 1940s, an advertising executive by the name of Alex Osborn came up with the
technique of brainstorming following his frustration at the inability of employees to come
up with innovative ideas for advertising campaigns. The technique was the result of his
attempts to fix rules that would provide people with the freedom of action and mind to
trigger and reveal fresh ideas. The original name he gave to this ideation process he
invented was “think up” before it later came to be called brainstorming. According to
Osborn, brainstorming is a conference technique through the practice of which a group
endeavors to come up with a solution for a particular problem by collecting all the ideas
spontaneously contributed by the participating members.
Osborn’s argument was that two principles:
1) defer judgment and
2) reach for quantity helped in achieving ideative efficacy.
These principles were followed by Osborn’s four rules of brainstorming which may be
outlined as follows:
• Put the emphasis on quantity of ideas (as the maxim goes, “quantity breeds quality”);
• Hold back criticism or judgment;
• Be open to bizarre/strange ideas;
• Blend ideas to enhance them (1+1=3).
These rules were established with the objective of lessening social inhibitions if any
among the group members, boosting overall group creativity and of course, fueling idea
generation.

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Osborn was of the opinion that brainstorming should only address one specific question
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because he believed that sessions that tried to tackle many questions were unproductive.
The four principles of brainstorming
While brainstorming has evolved over the years, Osborne’s four underlying principles are
a great set of guidelines when running your own sessions. These principles include:
• Quantity over quality. The idea is that quantity will eventually breed quality as ideas are
refined, merged, and developed further.
• Withhold criticism. Team members should be free to introduce any and all ideas that
come into their heads. Save feedback until after the idea collection phase so that
“blocking” does not occur.
• Welcome the crazy ideas. Encouraging your team members to think outside of the box,
and introduce pie in the sky ideas opens the door to new and innovative techniques that
may be your ticket for success.
• Combine, refine, and improve ideas. Build on ideas, and draw connections between
different suggestions to further the problem solving process.
Brainstorming techniques and processes helps your team innovate and work
collaboratively. There’s no single right way to hold a brainstorming session. In fact,
holding individual or reverse brainstorming sessions can both be helpful activities for
generating new ideas.
Your goal should always be to use the process that works best for you and your team.
Why brainstorming is important?
If you’ve ever held a brainstorming session, you likely know that they can be very
effective for generating new ideas, and finding solutions to a problem. This is largely due
to the many advantages of brainstorming that help teams work more collaboratively
towards a common goal.
Some of the advantages of brainstorming for businesses and individual productivity
include:
1. Brainstorming allows people to think more freely, without fear of judgment.
2. Brainstorming encourages open and ongoing collaboration to solve problems and
generate innovative ideas.
3. Brainstorming helps teams generate a large number of ideas quickly, which can be
refined and merged to create the ideal solution.
4. Brainstorming allows teams to reach conclusions by consensus, leading to a more well-
rounded and better informed path forward.
5. Brainstorming helps team members feel more comfortable bouncing ideas off one
another, even outside of a structured session.
6. Brainstorming introduces different perspectives, and opens the door to out-of-the-box
innovations.

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7. Brainstorming helps team members get ideas out of their heads and into the world, where
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they can be expanded upon, refined, and put into action.
8. Brainstorming is great for team building. No one person has ownership over the results,
enabling an absolute team effort.
In summary, the core advantages of brainstorming are its ability to unlock creativity by
collaboration. It’s the perfect technique to use for coming together as a team, and can
help to generate exciting new ideas that can take your business to a new level.
Now that we’ve established what brainstorming is, and why it’s important, let’s take a look
at some examples of scenarios where it would be useful.
Steps for Effective Brainstorming
A brainstorming session may be carried out in any of many different ways. Given below is
a 7-step process.
Step #1: Decide on a suitable place and facilitator
The brainstorming has to be conducted in a comfortable environment so that you can get
the best output from the participants. A well-lit conference room would be good. It should
be possible for the facilitator to take notes – make use of flip charts, a computer or white
board (whichever would suit your group). If you expect the session to last a long time, you
might want to arrange snacks and refreshments. Ensure that there is adequate paper and
stationery.
Appoint one person as a team manager/leader and another as an idea recorder. It would
be difficult for one person alone to handle both responsibilities.
Step #2: Decide on the participants
Devote some time to deciding who should be called to participate in the session. A simple
rule to apply here would be to choose the people who would have the answers to the
question you intend to put forth. This may seem obvious but very frequently, the selection
of participants is based more on their position in the organization’s corporate ladder than
on their specific knowledge. You can also consider including people with different thinking
styles or associated with a diversity of disciplines.
Step #3: Specify the problem for which possible solutions are to be found and the goal
It is important that the problem for which brainstorming is to be done, be stated clearly. A
good way to ensure this would be to write the problem lucidly at the head of the board.
Everyone should comprehend the objective of the session. With the topic in full view all
through the session, there is a greater likelihood of the session staying focused. Also
remember that the participants should be given the necessary background information
before the brainstorming. The best time is before the session though sometimes it may
have to be shared while the session is in progress. Here’s an example: Suppose the
problem is how to make sure employees always register their time of arrival at and exit
from the office. For that you can provide background information such as:

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• Why the irregular clocking in and out is a problem;
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• Which are the groups forgetting to do so;
• How the business is losing because of this and so on.
Last of all, it is also important to delineate the solutions space. Come up with rules,
boundaries and criteria for the ideas that are to be generated. This will ensure that time
doesn’t go to waste checking out ideas that don’t fit the bill.
Step #4: Set a time limit
State the time limit at the very beginning. 5 or 10 minutes may do but sometimes more
time may be required. Whatever you decide, state it up front.
Step #5: Diverge prior to converging
This is a suggestion. Allow everyone to pen down their ideas prior to the start of the
session so that there is no time lost in talking about just one or a few ideas. This would
help you to bring in a little argument into the discussion whenever it is possible.
Step #6: Let the brainstorming begin
Start the brainstorming. You can expect some bad ideas but members of the team/group
should be instructed in advance not to criticize/comment negatively till after the session is
over, however dumb or strange the idea sounds. The person in charge of note taking
should note down all the ideas as they come, bereft of any criticism or comment. Breaks
are permissible in case the brainstorming session gets too long.
Step #7: Choose the best ideas (based on pre-determined criteria)
Select the best ideas after short-listing the ones that meet the pre-determined criteria.
One way to make things easier is to score each of the ideas a number from 0 to 5
depending on the degree to which it satisfies each of the pre-determined criterion. Once
that’s done, add up the scores. The one with the highest score can be taken as the best
idea. However, if this best idea is not practical, in spite of the scores, you can look for the
second best one.

FOCUS GROUPS
Focus Group Definition
Ernest Ditcher, an Austrian-American psychologist, was the first person to coin the term
"focus group" in the early 1950s. He was approached by Betty Crocker to help solve why
their convenient cake mix was not selling. Ditcher gathered a small group of housewives
to lead a discussion on the matter. After his focus group, Ditcher discovered that
housewives felt guilty serving already prepared food to their families. Betty Crocker
altered their directions to add an egg to give the illusion of preparation. Their cake mix
began to sell after the adjustment to the directions.

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The definition of a focus group is a research technique that utilizes a small group of
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meticulously screened individuals to gather data. The meaning or purpose of a focus
group is to unravel how a target group thinks or behaves about a particular subject.
Each person in the group is prescreened using a questionnaire. The focus group is a
guided discussion on a particular topic that is guided by a trained mediator. Everyone in
the group is encouraged to share their opinions openly.
Focus groups are used to collect quantitative, broad data by using open-ended questions.
This type of data can provide an accurate portrayal of the true opinions of participants
because non-verbal communication can also be observed. This subjective data is used
mainly in marketing or business.
Focus group research is used to gather the opinions of participants about a product,
service, or idea. This data is used to make improvements to the concept, and make it
more user-friendly. It can also be used to increase the satisfaction of the client. This is
commonly used with new products or when products are trialing a new feature.
Focus group data can be standalone data, not combined with any other data. Or, focus
group data can be supplementary data, adding additional details to other means of data
collection.
A focus group forms part of qualitative market research, during which a group of
individuals come together to discuss specific topics. The subject matter could
include brands, companies, or products, as well as prominent societal figures, such as
politicians.
Focus groups are usually conducted on behalf of a business or organisation, with the help
of a market research firm. The best market research companies specialise in
recruiting, conducting, and evaluating focus groups, using tactics and knowledge
gained through years of industry experience.
Focus groups are traditionally carried out in person and face-to-face. However, online
focus groups (facilitated through Zoom or an online forum) are becoming an increasingly
popular, cost-effective alternative

Advantages of Using Focus Groups for Your Business

Focus groups are a valuable tool for businesses to gain insights and understanding into
their target market’s thoughts, opinions, and preferences. Here are some advantages of
using focus groups for your business:
1. Provides in-depth information: Focus groups allow businesses to gather more
in-depth information than they would through traditional surveys or questionnaires.
In a focus group, participants can provide detailed and nuanced responses to
questions, giving businesses a better understanding of their target market’s
opinions and attitudes.

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2. Generates new ideas: Focus groups can also be used to generate new ideas and
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innovative solutions. By gathering a diverse group of participants, businesses can
brainstorm and test new ideas and concepts, getting valuable feedback and
suggestions from the group.
3. Offers real-time feedback: Focus groups provide real-time feedback, allowing
businesses to observe participants’ reactions to new products, services, or
marketing campaigns. This information can be used to refine and improve the
offering before launching it to the broader market.
4. Cost-effective: Focus groups can be cost-effective, especially compared to large-
scale surveys or other research methods. Businesses can conduct focus groups
with a small group of participants, making it more accessible and cost-effective for
small and medium-sized businesses.
5. Helps with decision-making: The insights and information gathered from focus
groups can help businesses make informed decisions about their products,
services, and marketing strategies. By understanding their target market’s
preferences and opinions, businesses can tailor their offerings to meet their
customers’ needs and desires.
Focus groups can provide a valuable opportunity for businesses to gather insights and
feedback directly from their target market. This information can be used to improve
products, generate new ideas, and make informed decisions, ultimately leading to more
significant business success.
Disadvantages of Using Focus Groups for Your Business
While focus groups can be a useful tool for businesses, there are also some
disadvantages to consider. Here are some potential drawbacks of using focus groups:
1. Limited sample size: Focus groups typically involve a small group of participants,
which can limit the generalisation of the results. The insights and opinions
gathered from focus groups may not be representative of the broader population or
market.
2. Social desirability bias: In a group setting, participants may be influenced by
social desirability bias, where they provide responses that align with what they
believe others in the group want to hear. This can result in inaccurate or
misleading information.
3. The dominance of certain participants: Some participants may dominate the
conversation, preventing others from expressing their opinions fully. This can skew
the results and limit the diversity of perspectives.
4. Cost and logistics: Conducting a focus group can be time-consuming and costly,
especially if the business needs to recruit participants, rent a space, and pay for a
moderator’s services.

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5. Limited control: The moderator cannot control the participants’ behaviour, and
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there is a risk of participants getting off-topic or being disruptive. This can make it
difficult to get the information needed and can impact the validity of the results.
6. Interpretation of results: Analysing and interpreting focus group results can be
subjective, and the moderator’s interpretation may not align with the business’s
objectives or goals.
Purpose of Focus Groups
The purpose of a focus group is to gather qualitative data on a customer's opinion on a
product or idea. It focuses on the ideas, beliefs, and attitudes of the participants to
improve upon a good, service, or idea. Focus groups are used when a written survey is
not adequate or supplemental knowledge is needed.
• Focus groups research is used to:
• get customer opinions
• figure out how a customer interacts with a product
• explore personal opinions of a brand
• help choose between prototypes
• gage customer satisfaction
• test novel products
• discover customer needs and expectations
Focus groups help researchers understand how to improve, create or change a product to
make it more receptive to their target audience. By gathering opinions with open-ended
questions and guided conversation, researchers hope to tap into the unfiltered opinions of
their carefully chosen participants.
How Many People Do You Need for A Useful Business Focus Group?
As the ideal number of participants for a focus group depends on the research objectives
and the nature of the topic being explored, the size of a focus group should be
determined based on the research objectives of the topics being discussed. For example,
a focus group exploring customer satisfaction with a specific product would likely need
fewer participants than an open-ended discussion about consumer preferences.
Generally speaking, however, focus groups should have between 6 and 12 participants.
This number of participants allows for diverse perspectives while still enabling the
moderator to maintain control of the conversation and ensure everyone has an
opportunity to provide their input.
Fewer than six participants may not provide enough diversity of opinion or enough data to
reach valid conclusions. More than ten participants can be difficult to manage, and some
participants may be less likely to participate fully in the discussion.
How to Plan and Conduct a Successful Focus Group

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Delivering a successful focus group requires careful planning, so if you are charged with
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arranging a focus group for your business’s customer research, be sure to include the
following steps to ensure everything runs smoothly.
1. Define the research objectives: The first step is to clearly define the research
objectives and what the business hopes to achieve with the focus group. This will
guide the selection of participants, the discussion guide, and the analysis of the
results to ensure the insights gathered are meaningful and useful.
2. Select the participants: Identify the target audience for the focus group and
recruit participants who match the desired demographic and psychographic
characteristics. Participants can be recruited through various channels, including
social media, email lists, and online surveys.
3. Develop a discussion guide: Develop a discussion guide that outlines the topics
and questions to be covered during the focus group. The guide should be designed
to encourage open-ended discussion and elicit in-depth responses.
4. Find a moderator: The moderator is key to the success of the focus group and
should have experience in conducting this type of research. They should also be
familiar with the discussion guide and prepared to address any disruptions or
unexpected scenarios.
5. Choose a location: Choose a location that is convenient and comfortable for the
participants. The location should also be quiet and private to minimise distractions
and interruptions.
6. Conduct the focus group: Start the focus group by introducing the moderator and
the purpose of the session. Encourage participants to share their thoughts and
opinions freely and avoid influencing their responses. The moderator should ask
open-ended questions and follow-up questions to elicit more detailed responses.
7. Record the discussion: Record the focus group discussion, either through audio
or video recording, to capture all the insights and observations.
8. Analyse the results: Once the focus group is completed, analyse the results to
identify themes and patterns in the participants’ responses. Use the analysis to
inform product development, marketing strategies, or other business decisions.
9. Follow up with participants: Follow up with participants after the focus group to
thank them for their participation and provide any additional information they may
need

SURVEY METHOD
Meaning:
The primary reason or aim of conducting a survey is to acquire information. Surveys have
become relevant to businesses, academia, governments, including private and public

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organizations across the globe. It’s a method of information gathering, which, when
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conducted appropriately, provides a rich form of data. That data can help businesses, or
whoever conducted the survey, in diverse ways.
Surveys help businesses to make educated and informed decisions. If it involves buyers’
persona, a survey can grant quality information that can help companies to position their
brands for success. Let’s look at the meaning, types, advantages, and disadvantages of
the survey method.
Therefore, the “survey method refers to techniques deployed to gather information
from an individual or group of people”. The individual conducting the survey prepares
a series of questions, which the surveyee needs to answer. It’s the answer provided that
is summed up to make up the data for the survey.
After the survey is collected and collated, the next step might be to analyze it.
However, this depends on the nature of the survey, as some don’t need analyzing. You
can conclude from the response given by the respondent.
There are also different types of survey methods out there. A firm or individual can
choose whatever process that’s conducive to conduct their surveys.
The Different Types of Survey Methods Available
The methods of conducting a survey are numerous, and there’s no method that is more
effective than the other. One has to stick with the technique tested and effective for the
business, niche, audience, or project.
Below are the different types of surveys you need to know.
1. Online Survey
If you are consistently visiting the internet, buying things online, or spending hours on
social media, it is most likely that you have done one or more online surveys. Online
surveys are among the most common survey methods you will find. Plus, with the
advancement in technology and the population of mobile phone users or those who have
access to the internet increasing, the popularity of online surveys will only increase. They
are considered a breeze to design and deploy to surveyees via email or other means.
And compared to other forms of surveys, online surveys are more cost-effective.
2. Paper Survey
Paper survey is almost like the direct opposite of an online survey. The advantage of this
survey method is that it can get to areas where there’s weak or no internet
connection. The survey paper can be written with a pen or typed on a computer system
and printed before being distributed. This type of survey is also popularly used in the field
of research.
3. Face to Face
This survey method can also be termed a “one-on-one interview.” It involves talking with
the interviewee or respondent directly. Face to face interviews can be time-consuming

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and demanding. But if you are creative enough with your questions, you can end up
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acquiring a great deal of information from the respondent for your project.
4. Telephone Survey
The name alone tells with this survey method implies. It involves conducting an interview
or asking the respondents questions over the phone. This survey method is time-
consuming and financially demanding. Also, most people aren’t comfortable talking over
the phone for long hours, so that might be another bottleneck. Most respondents might
also not pick up your call, and that might hamper your project or whatever you plan to do
with the survey.
Advantages and Disadvantages of Survey Method
So, let’s look at the bad and the good sides of survey methods. With this explanation, you
will understand the term better. Why are surveys relevant and what are the drawbacks?
Also, note that these advantages and disadvantages cover all survey methods.
Advantage of Survey Method
• Surveys, particularly online surveys, are quite less expensive, talking about the
cost for each participant. It’s the phone interview that tends to be more expensive.
With online surveys, the response might run into hundreds of thousands.
• There’s a high possibility that you might receive candid responses from your
surveyees. That’s because of the anonymity attached to surveys, anyway. So, if
you want to get an unbiased reaction from respondents, the survey is a much
better option than other research methodologies.
• The data collated from an online survey tends to be more reliable, which is the aim
of every survey.
• Surveys are quite a breeze to administer.
• They can prove helpful for academic, health, or business purpose. For business,
information gathered from research can help companies to plan their market
strategy, sales promotion, advertising media, and market variables.
Disadvantages of Survey Method
• The response rate, when sending out emails, are sometimes very low.
• Your audience also matters a great deal when it comes to the outcome of a survey.
If you are dealing with a low literacy audience, online surveys might not be
appropriate. These respondents aren’t used to or regular on the internet. So, you
might not achieve your goal of the survey.
• Surveys, particularly the face-to-face survey method, can be quite expensive. In
addition to being financially draining, face-to-face surveys also consume a lot of
time. You might have made up your mind to stay for 30 minutes and end up
staying longer.

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• Rigidity is another disadvantage and a significant issue for surveys. When crafting
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the questions, you need to take into consideration every single question you are
interested in asking. Failure to do so will cause you to miss out on specific
information. That’s because respondents may not provide answers for questions
not captured in the survey sheet or form.
• The answers given by the respondent might produce unclear data. That’s because
the respondents might interpret or respond to the questions differently. Whether
online or face-to-face surveys, it can still happen.

CUSTOMER ADVISORY BOARD

What is a Customer Advisory Board (CAB)?
A customer advisory board (CAB) is a group of key customers that a company invites to a
meeting (and possibly additional periodic meetings) to offer feedback on the product as
well as their overall impressions of the company.
Businesses assemble customer advisory boards with several common objectives in mind,
including:
• To create champions for their brand
• To validate product ideas and guide the product roadmap
• To help shape their marketing messaging
• To gather market intelligence
Because a customer advisory board should serve as a representative sample of the
company’s broader market, this board should include a cross-section of customers
representing as many different market segments as possible.
Definition: Many businesses use a customer advisory board, or CAB, to assist them with
market and customer research efforts. A customer advisory board is a group of customers
who come together on a regular basis to share insights and advice with an organization.
Usually, the members of a customer advisory board are high-level executives at their
organizations and therefore can provide in-depth market insight.
Benefits of a Customer Advisory Board
Customer advisory boards are one of the most effective ways to get feedback from
customers and identify new opportunities for growth and innovation.
Here are some of the top benefits of forming and consulting a customer advisory board:
• Provides real-time feedback on your products, services, and overall company
from people who have experienced them firsthand
• Helps businesses understand the problems their customers are facing, so
they can solve them better going forward
• Gives true, valuable insight into what your customers want, helping to create
a more informed product roadmap

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• Makes it easier to engage with customers, helping to improve customer success
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rate and brand loyalty
The Cons of Customer Advisory Boards
• If not adequately trained and managed, a poorly run CAB can result in more
negatives than positives.3
• Establishing a strong CAB program can take away from other business resources.
It requires time, resources, and logistics that include the drafting of a charter,
membership and recruitment criteria, agenda and meeting material preparation,
and more.3
• It takes planning. Developing a CAB will take at least six months. Accelerating the
process could negatively impact both a company’s staff and the consumer board
members being recruited.3
• A poorly managed CAB could result in damage to a long-term customer
relationship.3
• Poorly constructed CABs can be overly skewed, resulting in insight that does not
reflect the general marketplace.4
Steps to Form a Customer Advisory Board
Forming a customer advisory board is an important step toward improving your customer
base’s experience. A well-formed advisory council can help you make better decisions
and even drive business growth. Follow these steps to form a customer advisory board:
1. Create Bylaws
Creating bylaws is the first step to forming a customer advisory board. Bylaws are the
rules that govern how your customer advisory board operates. They define who is eligible
to serve on the board, how members are selected, and how long a term lasts.
They may also specify what types of activities the board will undertake and how often it
will meet (monthly, quarterly, etc.). You may want to consult with your legal team, so
these documents can reflect your needs and meet all applicable laws.
2. Draft Customer Advisory Board Agreement
Drafting a customer advisory board agreement sets the stage for your board to be
successful. The agreement should outline the following details:
• The purpose of the board
• Who can serve on it
• How meetings will be conducted and documented
• How much time members will spend on the board
The agreement should also include a section that outlines how members are
compensated for their time. If you’re just starting out, you might consider offering non-
monetary rewards like free access to your product or services. Remember to make
members and a representative from the business both sign the agreement.

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3. Align on Goals and Objectives
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It’s important that you align on goals and objectives before forming a customer advisory
board. This will help ensure everyone is on the same page with regard to how you want to
use customer insights, the input you’re seeking, and how often you’d like board meetings
to take place.
The main goal of this board is to help you improve your product roadmap or marketing
strategy by getting feedback directly from those who use your product or service most
often. So make sure everyone involved understands their role in this process before they
start participating in meetings or providing feedback.
4. Host Customer Advisory Board Meeting
Hold an initial meeting with all members who are present, so you can get a feel for how
they’ll contribute in terms of ideas, feedback, and perspective.
Hosting your customer advisory meeting is the culmination of all the preparation that went
into creating and building your customer advisory board. Here are some tips for hosting a
successful customer advisory board meeting:
• Establish a clear agenda for your meeting.
• Prepare and distribute materials beforehand.
• Set expectations upfront and ensure everyone has a voice.
• Consider having an open Q&A session during the meeting.

PATENT
A patent is an individual's or company's legal right to produce or sell something that they
have invented for a specific period of time. Patents, by law, protect inventors by only
allowing them to sell their product or choose who may sell their product for them. The
term comes from Old Latin, Old French, and Old English. It dates back to the late 13th
century from the Latin patentem and French patente, meaning an open letter. The term
evolved to its modern meaning in the 1580s, when it became defined as a license from
the government to invent and sell an item exclusively.
In business, a patent is used to create, market, and sell an item. Patents are used for
many of the items that consumers buy. The general length of a patent is 20 years from
the date which the patent was applied for once it has been approved by the government.
A letter patent is the official government document granting an individual or company
exclusive rights to a product. After the patent is processed and approved, the creator or
seller may begin obtaining royalties for their product. A royalty is a payment to the
inventor for the ability to use a product, really a compensation for their efforts. An
example of this could be a television commercial creator paying a songwriter royalties to
use their music in an advertisement. Patents and royalty use is usually kept between

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companies and a sound agreement and trade secret, something that is not publicly
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divulged, at least until the product hits the market.
What is a patent?
A patent is an exclusive right granted for an invention, which is a product or a process
that provides, in general, a new way of doing something, or offers a new technical
solution to a problem. To get a patent, technical information about the invention must be
disclosed to the public in a patent application.
• The history of Patent law in India starts from 1911 when the Indian Patents and
Designs Act, 1911 was enacted.
• The Patents Act, 1970 is the legislation that till date governs patents in India. It first
came into force in 1972.
• The Office of the Controller General of Patents, Designs and Trade Marks or
CGPDTM is the body responsible for the Indian Patent Act.
• The Patent Office has its headquarters in Calcutta and has branches in New Delhi,
Chennai and Mumbai. The office of the CGPDTM is based in Mumbai. Nagpur
hosts the office of the Patent Information System and also the National Institute for
Intellectual Property Management.
• The Controller General supervises the Act’s administration and also offers advice
to the government on related matters.
• The Patents Act has been repeatedly amended in 1999, 2002, 2005, 2006
respectively. These amendments were required to make the Patents Act TRIPS
compliant. TRIPS stands for Trade-Related Aspects of Intellectual Property Rights.
• The major amendment in the Patent Act was in 2005, when product patents were
extended to all fields of technology like food, drugs, chemicals and
microorganisms. The Rules under Patent Act were also amended in 2012, 2013,
2014.
Examples of Patents
Patents have been used in their modern definition since the 1500s to provide inventors
the exclusive right to produce and sell their inventions. Some famous examples of
products that have been patented include:
• The Telephone: Patented by Alexander Graham Bell in 1876.
• The Lightbulb: Patented in 1878 by Thomas Edison.
• Global Positioning System (GPS): The patent was awarded to Roger Easton in
1974.
• The (programmable) Computer: Invented by Steve Wozniak and patented by Apple
Computers in 1977.
• Amazon Delivery Drone: The company received a patent in 2017.
Types of Patents

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There are three types of patents available in the United States: utility patents, design
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patents, and plant patents. Each has its own specifications and durations.
Utility Patents
Utility patents, or patents for invention, issue legal protection to people who invent a new
and useful process, an article of manufacture, a machine, or a composition of matter.
Utility patents are the most common type of patent, with more than 90% of patents
issued by the U.S. government belonging to this category.
United States Patents and Trademarks Office. "Types of Patents."
A utility patent lasts for 20 years from the date of filing as long as maintenance fees are
paid. Maintenance fees are surcharges applied to utility patent applications filed after
December 12, 1980.
Design Patents
Design patents are patents issued for original, new, and ornamental designs for
manufactured products. Design patents protect the design or look of something. They
require the invention to which the design belongs to be original and useful. Design
patents last for 15 years for applications filed after May 13, 2015. For applications filed
before May 13, 2015, patents last for 14 years from the date of the filing. Maintenance
fees do not apply to design patents.
Plant Patents
Plant patents go to anyone who produces, discovers, and invents a new kind of plant
capable of reproduction. These patents are granted for 20 years from the date of filing
and no maintenance fees apply.
Patents provide an incentive for companies or individuals to continue developing
innovative products or services without the fear of infringement. For example, large
pharmaceutical companies can spend billions of dollars on research and
development. Without patents, their drugs and medicines could be duplicated and sold
by companies that didn't research or invest the needed capital for R&D.
In other words, patents protect the intellectual property of companies to help their
profitability. However, patents also serve as bragging rights for companies demonstrating
their innovativeness.
Patent Procedure in India has steps of:
• capturing your idea for creating complete invention disclosure,
• conducting a patentability search,
• drafting a patent application,
• filing the application,
• publication of application,
• examination,
• responding to objections, and

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• grant of the patent.

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Patents play a crucial role in protecting inventions and fostering innovation. In India, the
patent procedure is governed by the Patents Act, 1970, and the associated rules. This
article provides a comprehensive overview of the patent procedure in India, including the
steps involved, the timeline, and the associated costs.
Your innovative idea can be a starting point of a valuable invention, which when protected
with a patent and with patent commercialization can result in profits and financial gains
There are recent updates in patent rules that is Patents (Amendment) Rules, 2021; which
now has new advantages like:
• 80% Reduction in the fees for patent filing and prosecution for educational
institutions
• Faster grant of patent applications by expedited route (faster examination and
grant) reducing the time required for grant of patent from 3-4 years to 1-1.5 years.
• The fastest patent was granted in 41 days after filing request for expedited
examination.
• Expansion of expedited (faster) examination of patents: now includes categories
like Women applicant or co-applicant, Educational institutes, Startups, SMEs
(Small and Medium Enterprises), Government Departments, Institutions
established by a Central, Government Company, etc.
Hence, applying for patent and getting patent grant has become even faster and
economic.

INTELLECTUAL PROPERTY RIGHTS

What Is Intellectual Property?
Intellectual property is a broad categorical description for the set of intangible
assets owned and legally protected by a company or individual from outside use or
implementation without consent. An intangible asset is a non-physical asset that a
company or person owns.
The concept of intellectual property relates to the fact that certain products of human
intellect should be afforded the same protective rights that apply to physical property,
which are called tangible assets. Most developed economies have legal measures in
place to protect both forms of property.
Types of Intellectual Property
Intellectual property can consist of many types of intangibles, and some of the most
common are listed below.
Patents
A patent is a property right for an investor that's typically granted by a government
agency, such as the U.S. Patent and Trademark Office.2 The patent allows the inventor

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exclusive rights to the invention, which could be a design, process, improvement, or
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physical invention such as a machine.
Technology and software companies often have patents for their designs. For example,
the patent for the personal computer was filed in 1980 by Steve Jobs and three other
colleagues at Apple (AAPL).
Copyrights
Copyrights provide authors and creators of original material the exclusive right to use,
copy, or duplicate their material. Authors of books have their works copyrighted as do
musical artists. A copyright also states that the original creators can grant anyone
authorization through a licensing agreement to use the work.
Trademarks
A trademark is a symbol, phrase, or insignia that is recognizable and represents a
product that legally separates it from other products. A trademark is exclusively assigned
to a company, meaning the company owns the trademark so that no others may use or
copy it.
A trademark is often associated with a company's brand. For example, the logo and
brand name of Coca-Cola is owned by the Coca-Cola Company (KO).
Franchises
A franchise is a license that a company, individual, or party–called the franchisee–
purchases allowing them to use a company's–the franchisor–name, trademark,
proprietary knowledge, and processes.
The franchisee is typically a small business owner or entrepreneur who operates
the store or franchise. The license allows the franchisee to sell a product or provide a
service under the company's name. In return, the franchisor is paid a start-up fee and
ongoing licensing fees by the franchisee. Examples of companies that use the franchise
business model include United Parcel Service (UPS) and McDonald's (MCD).
Trade Secrets
A trade secret is a company's process or practice that is not public information, which
provides an economic benefit or advantage to the company or holder of the trade secret.
Trade secrets must be actively protected by the company and are typically the result of a
company's research and development (R&D), which is why some employers require the
signing of non-disclosure agreements (NDAs).
Examples of trade secrets could be a design, pattern, recipe, formula, or proprietary
process. Trade secrets are used to create a business model that differentiates the
company's offerings to its customers by providing a competitive advantage.
Digital Assets
Digital assets are also increasingly recognized as IP. These would include proprietary
software code or algorithms, and online digital content.

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Types of Intellectual Property

IP Protection Duration (in the U.S)
Patents Inventions, industrial designs, computer code 20 years
Trademarks Unique identifiers for a business or its As long as the trademarked
products or services (e.g., logos, brand material remains active
names)
Copyrights Works of authorship, including books, poems, 70 years after the author dies
films, music, photographs, online content

What are Intellectual Property Rights?

▪ Intellectual property rights (IPR) are the rights given to persons over the creations of
their minds: inventions, literary and artistic works, and symbols, names and images
used in commerce. They usually give the creator an exclusive right over the use of
his/her creation for a certain period of time.
▪ These rights are outlined in Article 27 of the Universal Declaration of Human
Rights, which provides for the right to benefit from the protection of moral and
material interests resulting from authorship of scientific, literary or artistic
productions.
▪ The importance of intellectual property was first recognized in the Paris Convention
for the Protection of Industrial Property (1883) and the Berne Convention for
the Protection of Literary and Artistic Works (1886). Both treaties are
administered by the World Intellectual Property Organization (WIPO).

Intellectual Property Rights in general refers to the set of intangible assets including
invention, creation, and contribution to the contemporaneous field of knowledge which is
owned and legally protected by an individual or company from the outside use or
implementation without approved consent. The economic growth, financial incentive and
motivation for advanced innovations imbedded in the balanced legal protection of
Intellectual Property Rights entails proficient, directed and timely updated guidance in the
field of Intellectual Property Rights.
Intellectual property has increasingly assumed a vital role with the rapid pace of
technological, scientific and medical innovation that we are witnessing today. Moreover,
changes in the global economic environment have influenced the development of
business models where intellectual property is a central element establishing value and
potential growth. In India several new legislations for the protection of intellectual property

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rights (IPRs) have been passed to meet the international obligations under the WTO
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Agreement on Trade-Related Aspects of Intellectual Property Rights(TRIPS).
Intellectual property rights are customarily divided into two main areas:
(i) Copyright and rights related to copyright:
▪ The rights of authors of literary and artistic works (such as books and other writings,
musical compositions, paintings, sculpture, computer programs and films) are
protected by copyright, for a minimum period of 50 years after the death of the
author.
(ii) Industrial property: Industrial property can be divided into two main areas:
▪ Protection of distinctive signs, in particular trademarks and geographical
indications.
o Trademarks distinguish the goods or services of one undertaking from those of
other undertakings.
o Geographical Indications (GIs) identify a good as originating in a place where
a given characteristic of the good is essentially attributable to its geographical
origin.
o The protection of such distinctive signs aims to stimulate and ensure fair
competition and to protect consumers, by enabling them to make informed
choices between various goods and services.
o The protection may last indefinitely, provided the sign in question continues to
be distinctive.
▪ Industrial designs and trade secrets: Other types of industrial property are
protected primarily to stimulate innovation, design and the creation of
technology. In this category fall inventions (protected by patents), industrial
designs and trade secrets.
What is the need of IPR?
The progress and well-being of humanity rest on its capacity to create and invent new
works in the areas of technology and culture.
▪ Encourages innovation: The legal protection of new creations encourages the
commitment of additional resources for further innovation.
▪ Economic growth: The promotion and protection of intellectual property spurs
economic growth, creates new jobs and industries, and enhances the quality and
enjoyment of life.
▪ Safeguard the rights of creators: IPR is required to safeguard creators and other
producers of their intellectual commodity, goods and services by granting them
certain time-limited rights to control the use made of the manufactured goods.
▪ It promotes innovation and creativity and ensures ease of doing business.

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▪ It facilitates the transfer of technology in the form of foreign direct investment,
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joint ventures and licensing.
National IPR Policy
▪ The National Intellectual Property Rights (IPR) Policy 2016 was adopted in May
2016 as a vision document to guide future development of IPRs in the country.
▪ It’s clarion call is “Creative India; Innovative India”.
▪ It encompasses and brings to a single platform all IPRs, taking into account all inter-
linkages and thus aims to create and exploit synergies between all forms of
intellectual property (IP), concerned statutes and agencies.
▪ It sets in place an institutional mechanism for implementation, monitoring and
review. It aims to incorporate and adapt global best practices to the Indian scenario.
▪ Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce,
Government of India, has been appointed as the nodal department to coordinate,
guide and oversee the implementation and future development of IPRs in India.
▪ The ‘Cell for IPR Promotion & Management (CIPAM)’, setup under the aegis of
DIPP, is to be the single point of reference for implementation of the objectives of
the National IPR Policy.
▪ India’s IPR regime is in compliance with the WTO's agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS).
▪ An efficient and equitable intellectual property system can help all countries to
realize intellectual property’s potential as a catalyst for economic development and
social & cultural well-being.

Disclaimer: The basic objective of this material is to supplement

teaching and discussion in the classroom in the subject. Students are
required to go for extra reading in the subject through Library books
recommended by Sardar Patel University, Vallabh Vidyanagar.
References:
https://www.shiksha.com/online-courses/articles/idea-generation-meaning-and-techniques/
https://buildd.co/product/idea-generation
https://cleverism.com/brainstorming-techniques-for-idea-generation/
https://blog.mindmanager.com/what-is-brainstorming-and-why-is-it-important/
https://ideascale.com/blog/what-is-trend-analysis/
https://www.viima.com/blog/idea-generat

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