Chapter 5
Creativity
and
the Business Idea Hisrich
Peters
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Shepherd
Sources of New Ideas
Consumers
Potential entrepreneur can use-
Informal monitoring the consumers for potential
ideas and needs.
Formal arrangement for consumers to express
their opinions.
Care must be taken to ensure that the idea
or need represents a large enough market
to support a new venture
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Sources of New Ideas
Existing Products and Services
Establish a formal method for monitoring and
evaluating the competitive product and service
on the market
Analyze to uncover ways to improve offerings
that may result in a new product or service.
Distribution Channels
Channel members can help suggest and market
new products.
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Sources of New Ideas (cont.)
Federal Government
Files of the Patent Office can suggest new
product possibilities.
New product ideas can come in response to
government regulations.
Research and Development
A formal endeavor connected with one’s current
employment.
An informal lab in a basement or garage.
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Methods of Generating New
Ideas
Focus Groups
A moderator leads a group of 8 to 14
participants through an open, in-depth
discussion in a directive or nondirective manner.
An excellent method for generating and
screening ideas and concepts.
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Methods of Generating New Ideas
(cont.)
Brainstorming
Allows people to be stimulated to greater
creativity.
Good ideas emerge when the brainstorming
effort focuses on a specific product or market
area.
Rules of brainstorming:
No criticism.
Freewheeling is encouraged.
Quantity of ideas is desired.
Combinations and improvements of ideas are
encouraged.
The brainstorming session should be fun 4-6
Methods of Generating New Ideas
(cont.)
Brainwriting
A form of written brainstorming.
Participants write their ideas on special forms or
cards that circulate within the group.
Problem Inventory Analysis
Consumers are provided with a list of problems
and are asked to identify products that have
those problems.
Results must be carefully evaluated as they may
not actually reflect a new business opportunity.
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Creative Problem Solving
Creativity tends to decline with age,
education, lack of use, and bureaucracy.
Latent creative potential can be stifled by
perceptual, cultural, emotional, and
organizational factors.
Creativity can be unlocked by using any of
the creative problem-solving techniques.
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Creative Problem Solving (cont.)
Brainstorming
Session starts with a problem statement.
Once the problem statement is prepared, 6 to 12
individuals are selected to participate.
No group member should be an expert in the
field of the problem.
All ideas must be recorded.
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Creative Problem Solving (cont.)
Reverse Brainstorming
Similar to brainstorming, except that criticism is
allowed.
A group method that focuses on the negative
aspects of a product, service, or idea as well as
ways to overcome these problems.
Care must be taken to maintain group morale.
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Creative Problem Solving (cont.)
Gordon Method
Method for developing new ideas when the
individuals are unaware of the problem.
Solutions are not clouded by preconceived ideas
and behavioral patterns.
The entrepreneur starts by monitoring a general
concept associated with the problem.
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Creative Problem Solving (cont.)
Checklist Method
Developing a new idea through a list of related
issues.
The entrepreneur can use a list of questions or
statements to develop new ideas.
One general checklist is as follows:
-- Modify? Change meaning, color, motion, odor,
form, shape? Other changes?
-- Magnify? What to add? More time? Greater
frequency? Stronger? Larger? Thicker?
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Creative Problem Solving (cont.)
Checklist Method
One general checklist is as follows:
-- Minify? Smaller? Condensed? Miniature? Lighter?
Omit?
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Creative Problem Solving (cont.)
Forced Relationships
Developing a new idea by looking at product
combinations.
A five step process which focuses on generating
ideas from relationship patterns between
elements of a problem.
Collective Notebook Method
Developing a new idea by group members
regularly recording ideas.
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Creative Problem Solving (cont.)
Heuristics
This method involves using thoughts, insights,
learning, an intuitive judgment, or common
sense for solving problem.
Scientific Method
Developing a new idea through research,
experimentation, observation.
This approach involves defining problems,
gathering and analyzing the data, developing
and testing potential solutions, and choosing the
best solution.
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Creative Problem Solving (cont.)
Attribute Listing
Developing a new idea by looking at the
positives and negatives.
Big-Dream Approach
Developing a new idea by thinking without
constraints.
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Product Planning and Development
Process
Establishing Evaluation Criteria
Criteria should be established at each stage of
the product planning and development process.
It should be all-inclusive and quantitative in
nature.
Criteria should evaluate the idea in terms of:
Market opportunity.
Competition.
Marketing system.
Financial factors.
Production factors.
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Figure 4.6 - The Product Planning
and Development Process
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Product Planning and Development
Process (cont.)
Idea Stage
Promising ideas should be identified and
impractical ones eliminated.
Evaluation method – Systematic market
evaluation checklist.
Determine the need for the new idea as well as
its value to the company.
Concept Stage
Refined idea is tested to determine consumer
acceptance which can be measured through the
conversational interview method.
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Product Planning and Development
Process (cont.)
Product Development Stage
Consumer reaction to the product/service is
determined.
A consumer panel is given a product sample and
preference is determined through methods such
as multiple brand comparisons, risk analysis,
etc.
Test Marketing Stage
Increases certainty of successful
commercialization.
Actual sales reflect consumer acceptance.
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THE END OF THE CHAPTER
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