IDEA GENERATION

and MANAGEMENT
-Module 4-
 Introduction
• Generating innovative ideas and
effectively managing them is crucial for
entrepreneurial success. This introduces
various techniques for idea generation,
strategies for evaluating and selecting viable
ideas, and market validation techniques to
ensure business feasibility. Additionally, this
topic will explore design thinking, user-centered
innovation, and collaborative innovation
practices to refine their entrepreneurial
concepts.
 A. TECHNIQUES FOR IDEA GENERATION

Idea Generation is developing new ideas

IDEA by investigating various concepts and
GENERATION possibilities and feedback from other
stakeholders to identify the best answer. It
is an essential problem-solving
component and can be done in a
collaborative environment.
 A. TECHNIQUES FOR IDEA GENERATION

Why is Idea Generation

Important?
• Coming up with new, innovative ideas is critical in our drive to establish
a firm. We can discover numerous compelling reasons to adopt tools that
assist us in organizing our thoughts and spending time thinking
creatively in our business. Here are four compelling reasons why
devoting time to brainstorming new ideas is worthwhile.

• 1. Discovering new opportunities

• 2. Generating fresh ideas
• 3. Improving old concepts
• 4. Updating current practices
 BRAINSTORMING

MIND-
Various
MAPPING
techniques that
SCAMPER
can be used for
technique
Idea Generation

DESIGN THINKING
 Brainstorming is a group problem-
solving technique that involves the
spontaneous contribution of ideas from
BRAINSTORMI all members of the group. It is also the
NG mulling over of ideas by one or more
individuals in an attempt to devise or
find a solution to a problem. In
controlled conditions and a free-thinking
environment, teams approach a problem
by such means as “How Might We”
questions.
 Mind-Mapping is a powerful technique to help
you visually develop and organize ideas and
information.
MIND-
MAPPING Mind maps provide a structured way to capture
and organize ideas and information. They help
users to understand concepts by breaking them
down into their component parts. The
technique is used to develop new ideas, or to
break down and better understand existing
information.
 SCAMPER Technique is a creative problem-solving method
that encourages individuals to think differently and
SCAMPER generate innovative solutions.

Technique SCAMPER means:

Substitute – Replace a part with something else.

Combine – Merge elements to create something new.
Adapt – Modify for different uses or environments.
Modify – Change aspects like size, shape, or color.
Put to another use – Find a new purpose for the product.
Eliminate – Remove unnecessary parts.
Reverse – Flip or rearrange the process.
DESIGN Design Thinking is a problem-solving
approach that focuses on understanding
THINKING users’ needs and creating innovative
solutions. It involves five key steps:
empathize, define, ideate, prototype,
and test. By putting the user at the
center of the process, design thinking
helps teams come up with creative
ideas that truly meet people’s needs.
 5 Phases of Design

Thinking

2. Define
1. Empathize 3. Ideate
- Focus on the collection
- The Information Gathering
and classification of the - Giving an optimized
phase. Business-related
information from the empathize and real-time solution to the
information gathered by
searching and understanding phase. The information gets problems. No irrespective
the customer’s views. It is done categorized according to ideal and illogical thinking
by interviews, group customers, their problems, the
accepted. These solutions
discussions, and most of the solution to their problems and
are raised by Sketching and
observations. needs, and fears of users that
we have to consider.
Prototyping.
 5 Phases of Design

Thinking

5. Test
4. Prototype
- The basic - Verifying the product in
implementation of the design real life. Customers are able to
thinking solution is used to use it and give feedback for
verify the solution in real life. their personal experience. Also,
The prototype must be less
the designer can ask questions
expensive and the very first
version of the ideal solution. on how to improve such
products for better usage.
 B. IDEA EVALUATION AND SELECTION

The following methods help evaluate and select the best business ideas:

1. FEASIBILITY STUDY - is an assessment of the practicality of a proposed plan or project. It

analyzes the viability of a project to determine whether the project or venture is likely to succeed.
The study is also designed to identify potential issues and problems that could arise while pursuing
the project.
Key components:
● Market Feasibility – Is there demand for the product/service?
● Technical Feasibility – Can the business produce or deliver the idea?
● Financial Feasibility – Is the idea profitable and sustainable?
● Legal and Regulatory Feasibility – Are there legal barriers to entry?
● Operational Feasibility – Can the business manage and scale the idea?
 B. IDEA EVALUATION AND SELECTION

The following methods help evaluate and select the best business ideas:

2. SWOT Analysis - is a framework to help assess and understand the

internal and external forces that may create opportunities or risks for an
organization.
SWOT stands for:
● Strengths – What gives the business a competitive advantage?
● Weaknesses – What limitations need improvement?
● Opportunities – What trends or gaps in the market can be leveraged?
● Threats – What risks could affect the business?
 B. IDEA EVALUATION AND SELECTION

The following methods help evaluate and select the best business ideas:

3. Business Model Canvas

(BMC) for Idea Assessment - is a
strategic management tool that lets
you visualize and assess your
business idea or concept. It’s a one-
page document containing nine boxes
that represent different fundamental
elements of a business.
 Busiess Model Canvas

Customer Segments (CS)

- These are the groups of people or organizations that a business aims to
reach and serve. Customers are the heart of a business model, and without
(profitable) customers, a business cannot survive. Customers are grouped into
distinct segments with common needs, common behaviors, or other attributes.
Customer groups represent separate segments if:
● Their needs require and justify a distinct offer.
● They are reached through different Distribution Channels.
● They require different types of relationships.
● They have substantially different profitability.
● They are willing to pay for different aspects of the offer.
The following two questions, if answered with clarity, help a business identify its
CS.
● For whom are we creating value?
● Who are our most important customers?
 Busiess Model Canvas

Value proposition (VP)

Value Proposition describes the bundle of products and services that create value for a
specific Customer Segment chosen by a business.
A VP is the reason why customers turn to one company over another. VP must solve a
customer’s problem or satisfy a need.

An organization’s VP must answer the following questions with clarity:

● What value do we deliver to the customer?
● Which one of our customer’s problems are we helping to solve?
● Which customer needs are we satisfying?
● What bundles of products and services are we offering to each CS?
 Busiess Model Canvas

CHANNELS (CH)
Channels describe how a company communicates with and reaches its Customer Segments to deliver a Value
Proposition.
Channels are customer touch points that play an important role in the customer experience and serve several functions,
including:
● Raising awareness about a company’s products and services
● Helping customers evaluate a company’s Value Proposition
● Allowing customers to purchase specific products and services
● Delivering a Value Proposition to customers
● Providing post-purchase customer support
To establish an effective channel, a company must first answer the following:
● Through which Channels do our Customer Segments want to be reached?
● How are we reaching them now?
● How are our Channels integrated?
● Which ones work best?
● Which ones are most cost-efficient?
● How are we integrating them with customer routines?
 Busiess Model Canvas

Customer Relationships (CR)

Customer Relationships describe the types of relationships a company establishes with specific
Customer Segments. Relationships can range from personal to automated. An organization’s CR
strategy may be driven by one of the following motivators:
● Customer acquisition
● Customer retention
● Boosting sales (upselling)
A business can arrive at the optimum CR by asking the following questions:
● What type of relationship does each of our Customer Segments expect us to establish and
maintain with them?
● Which ones have we established?
● How costly are they?
● How are they integrated with the rest of our business model?
 Busiess Model Canvas

Revenue Streams (RS)

Revenue Streams represent the company’s cash (earnings) from each Customer
Segment and are like the arteries of any business.
Revenue streams
There are two distinct categories of Revenue Streams:
● Transaction Revenues which are one-time customer payments
● Recurring Revenues that are ongoing payments to either deliver a Value
Proposition to customers or provide post-purchase customer support
There are two main types of pricing mechanisms,
Fixed and Dynamic, as follows:
 Busiess Model Canvas

Key Resources (KR)

The Key Resources describe the most important assets required to make a business model
work. These resources allow an enterprise to create and offer a Value Proposition, reach
markets, maintain relationships with Customer Segments, and earn revenues.

Key Resources can be owned or leased by a business or acquired from its key partners.
They can be identified by answering the following questions:
● What Key Resources do our Value Propositions require?
● What resources are required to sustain our Distribution Channels, Customer
Relationships and Revenue Streams?
 Busiess Model Canvas

Key Activities (KA)

Key Activities describe the most important things a company must do to make its business
model work. They are required to create and offer a Value Proposition, reach markets,
maintain Customer Relationships, and earn revenues.
Key Activities differ depending on the business model type.
A business can identify its Key Activities by answering the following questions:
● What Key Activities do our Value Propositions require?
● What activities directly contribute to maintaining our Distribution Channels,
Customer Relationships and Revenue Streams?
 Busiess Model Canvas

Key Partnerships (KP)

The Key Partnerships describe the network of suppliers and partners
that make the business model. There are four types of partnerships:
A business must ask the following questions before forming
partnerships:
● Who are our key partners?
● Who are our key suppliers?
● Which Key Resources are we acquiring from partners?
● Which Key Activities do partners perform?
 Busiess Model Canvas

Cost Structure (CS)

Cost Structure describes all costs incurred to operate a business model. A business incurs costs in
creating and delivering value, maintaining customer relationships, and generating revenue. Costs are
business-specific, where some are more cost-driven than others.
A business must answer the following questions to arrive at an optimum cost structure:
● What are the most important costs inherent in our business model?
● Which Key Resources are most expensive?
● Which Key Activities are most expensive?

2 broad classes of business model Cost Structures:

● Cost Driven: This model focuses on minimizing costs wherever possible. This approach aims at
creating and maintaining the leanest possible Cost Structure, using low-price Value Propositions,
maximum automation, and extensive outsourcing.
● Value Driven: Premium Value Propositions and a high degree of personalized service usually
characterize value-driven business models.
 C. MARKET VALIDATION TECHNIQUES
Market validation techniques are methods to test the viability and demand of a product
or service before launching it.Some common market validation techniques are:
● Customer interviews: In-depth interviews of target customers or focus groups to
collect qualitative data about customer needs and expectations.
● Surveys: Online surveys to collect customer insights at scale.
● Market validation research: Market research techniques such as competitor
analysis, market sizing, and trend analysis.
● Fake door testing: Creating a landing page or an ad to measure customer interest
and willingness to pay.
● Prototype testing: Creating a minimum viable product (MVP) to get feedback from
early adopters.
● Beta testing: Releasing a limited version of the product or service to a selected
group of customers to evaluate its performance and usability.
Thank you