Module – 4

Idea To Opportunity
 Emerging trends for new product Idea
Seven trends that provides Opportunities for an Entrepreneur

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[Link] Energy
[Link] Orientation
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 Continued
Green trend
▪ Wide opportunities open around the world
▪ Water an important resource used in green trend(e.g. Golf coursed ,parks)
▪ Business areas such as recycling, Eco-friendly priniting,environmental
cleaning process
▪ Prime example of one person uses worms to recycle food waste to fertilizer
and other
▪ uses it as source of fuel

Clean-Energy trend
▪ Need for change to solar, wind and geothermal sources

▪ Reduce dependent on coal

▪ Wide open opportunities in the area
▪ Examples of use of solar energy in homes as increased substantially.
Continued
Organic-Orientation Trend
▪ Widely used in food sector
▪ Customers shift towards organic foods have seen a two fold jump since
emergence of covid-19
▪ Opens opportunities for entrepreneurs to explore, also the cost of organic and
non organic foods have narrowed down considerably.
▪ E.g. of milk, dairy products,vegetables,fruits,snacks,F&B are potential
opportunities.
Economic Trend
▪ Uncertainties in banking sector, credit crunch has lead careful spending by
consumers
▪ Opens the opportunities for credit and debt management consultancy, business
coaching, discount retailing, outsourcing.
Continued
Social Trend
▪ Involves with networking events globally provides open oppourtinities to start a
business.
▪ Popular sites such as FB,Myspace and LinkedIn.
▪ Networking business are quite popular.

Health Trend
▪ Health consciousness is increasing among customers with emerging diseases,
which presents opportunities to explore.
▪ Areas such as cosmetics, concept of brain gym, personal health portals, fitness
centres, diet clinics, wellness centres.
Continued
Web trend
▪ The fastest growing industry with opportunities on hand.
▪ Areas of blogging, online video, mobile applications are examples of web
trend
▪ Platforms of Apple and Android provide the opportunity to launch the
products for new entrepreneurs.
 Consumers

Existing Products & Services

Sources of New Distribution Channels

Ideas
Governments

R&D
Continued
Consumers
▪ Potential Entrepreneurs should always pay attention to potential Customers
▪ Understanding consumer needs and warrants better rewards
▪ Ensure that idea or need represents a large enough market to support new
venture

Existing Products & Services

▪ Careful evaluation of competitive products
▪ Offer improved product or service for better sales and profits.
▪ Applies for new businesses and existing businesses
Continued
Distribution Channels
▪ Entrepreneurs should pay attention to distribution channels as they have a
better understanding of needs of the market.
▪ They not only helps in sales of existing products but also helps in marketing
new product developed.
▪ Clue of changes from distributors are important source of information.
Governments
▪ Form of patenting your innovation is a key source, governments helps in
patenting your product.
▪ Governments become source of idea for new entrepreneurs where their
promotional and regulatory measures open up new opportunities.
▪ In form of subsidies, tax reduction, excise duty reduction, FDI in sectors.
Continued

Research & Development

▪ Largest source of idea is entrepreneurs own R&D.
▪ Innovative products heave been developed from garage
▪ E.g. of Google and Apple
 Methods of Generating & testing new Ideas
Though idea for new venture creation is developed it still needs more
appropriate answers to be conclusive of the decision made, below listed are
few methods to test the new ideas

[Link] Groups
▪ Group of consumers are interviewed-focus on in-depth discussions on the
new product in direct or indirect way
▪ Group of 8-14 members is ideal
▪ Decisive in selection of group or else it becomes useless exercise.
▪ This method helps not only for generation of new ideas it becomes in
screening the ideas and concepts.
2. Brainstorming
▪ A group of consumers are selected for this method
▪ Focus on specific market or product
▪ Freewill discussion is encouraged to generate ideas
▪ The method encourages the participants to combine various ideas and improve
these ideas into new ideas.
▪ Criticism and negative comments are prohibited in this method
▪ No leader or dominance in discussion where one or two new ideas emerge
▪ Well known and widely used technique for business idea generation and
testing.
▪ Unstructured process for is followed .
▪ Starts with a problem statement which is neither too broad or too narrow where
all ideas which are illogical is also recorded
[Link] Brainstorming
▪ Similar to brainstorming but here criticism against an idea is allowed
▪ Technique where it is based on finding fault in an idea generated
▪ The core idea is finding what is wrong with the idea generated and how to
overcome these problems.
[Link] Brainstorming
▪ Focus on problem by a group of people interacting with the leader than each
other.
▪ Example a leader will hold up a pen and say to the group ‘this is not a pen "what
is it? And the group is encouraged to produce a series of answers and all answers
to it are taken down like its shape, colour and its ability.
▪ Problem identified and all answers are fed to chairperson directly with lesser
interaction among participants
▪ Its effective when there are people to write up all ideas that emerge and good
technique for untrained people,
5. Gordon Method
▪ Unlike other methods it begins with group of members not knowing the
exact nature of the problem.
▪ It ensures the idea is not clouded by pre-conceived ideas and patterns
▪ The entrepreneur mentions the general concept associated with the problem
and the group express their ideas where with the help of entrepreneur
guidance related concepts are developed.
▪ Finally the actual problem is revealed and group it enables the group to
make suggestions and final solution come up with refinement.
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▪ It is a creative process where it forces individuals to solve problems through
one or four analogy methods – personal,direct,symbolic and fantasy.
▪ Strangeness to the problem is eliminated and only familiar perspective is
accepted.
▪ The next step participants engage themselves making the familiar strange
through four analogy stated above which results in a unique solution is derived.

[Link] method
▪ A method where a list of questions or statements helps in new idea generation
or provide solution to specific idea areas.
▪ Checklist may take any form and be of any length.
8. Problem inventory analysis
▪ This method for obtaining new ideas and solution by focusing on problem
▪ Instead of generating ideas by themselves a list of problems for a product
category is provided and they are asked to identify and discuss products in that
category that have a particular problem.
▪ Effective in relating the known products problem suggestion and arrive at a
new product idea.
▪ Careful evaluation of inventory analysis is require as it may not reflect a new
business opportunity.

[Link] Association
▪ Simplest but effective in generation of new ideas.
▪ Word or phrase is written down, then one after other where each new word add
something to the process therefore creating chain of ideas with a new product
idea emerging.
[Link] Relationships
Combination of products are taken in this technique to develop a idea
Example : Pencil and calculator which are totally unrelated but trying to put them
together you may get ideas calculator with touchscreen and a pencil to write on it.
[Link] Notebook method
▪ A method where a small notebook which fits a shirt pocket is prepared which
includes a statement of problem, blank pages and pertinent background data.

▪ Selected individuals consider the problem record the ideas atleast three times a
day and at the end of the month the ideas is developed with suggestions .

▪ Technique can be used in a group or individuals where a central coordinator

looks into the collection and summary of data.
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▪ Heuristics provide the entrepreneur with cognitive problem solving tools or
shortcuts when they need to make a decision or solve a problem. Heuristics are
based on previous experiences, and become rules of thumb or golden rules that
an entrepreneur follows when a quick decision is required .

▪ HIT(Heuristic ideation technique) which involves locating relevant concepts

associated with a product area and generating possible ideas.

[Link] method
Widely used methods where identifying a problem and formulating hypothesis
and validating the data by analysing it.
[Link] Analysis
Value analysis is a set of techniques, knowledge, and skills used to improve the
value of a product by eliminating unnecessary costs or improving its functions
without compromising its quality, reliability, and performance. It involves
understanding the components of a product and related costs.

[Link] Listing
▪ Technique of listing all attributes of a product or problem and look at each at
all possible viewpoints

▪ This process will enable where unrelated objects can be brought together to
form a new combination and new uses to satisfy a need.
[Link] charting
Systematic searching for new opportunities by listing important elements for the
product area along two axis of a chart and them asking questions regarding each
of these elements.
[Link] new product idea includes : what can it be used for? Where cant it be
used? Who can use it? When can it be used? How can it be used?
Closeness to area of activity
NEAR INTERMEDIATE Low
1 1 1

HIGH 1 High - Near High- Intermediate High - Low

Probability of Intermediate - Intermediate- Intermediate -

INTERMRDIATE 2 near intermediate Low
Success
Very Very speculative- Very speculative-
VERY 3 speculative- Intermediate Low
SPEULATIVE near
[Link]-Dream Approach
This technique essentially is about entrepreneur dreams about the problem and
solution for coming up with a new idea – Thinking Big

Record and investigate all points irrespective of negative points and resources,
conceptualize the idea without constraints.

Continues till it turns into a workable form.

[Link] Listening
A technique where listening become essential part of this method, focus on
creative listening than talk in this technique become essential.
[Link] Analysis
Two critical aspects of this technique are parameter identification and creative
synthesis, where step one involves analysing important variables for investigation
and set aside other variables.
Next the relationships between parameters and the underlying issues are
examined. Through an evaluation of the parameters and relationships a solution is
developed this solution is called creative synthesis
Example
Textiles with natural herbals

20. Morphological Analysis:

This technique in the first stage existing product or service ,uses and usages on
one axis and new developed ideas and identification on one axis as shown below
Alternative Uses of Docks
Clothing
Equipment Manufacture Teaching Practice Driving
Golf Manufacturer r Golf Club Professional Range Tournament

Fishing
 Alternative uses of Docks

Equipment Clothing Golf Teaching Practice Driving

Golf Manufacturer Manufacturer Club Professional Range Tournament

Fishing
Sailing
Diving
[Link] sessions:
▪ Technique which is used in untrained participants
▪ A group of participants are describe about a problem or idea and distributed
two sheets to come up with a solution or ideas in one sheet
▪ Each participant presents the ideas and others strike out the repeated idea
heard
▪ When the first round passes, all ideas triggered again are taken down in the
second sheet
▪ So once the rounds passes until all ideas are generated and taken down.
 INNOVATION
▪ Innovation is the key factor of Economic development

▪ Innovation becomes essential when old products sales decrease, old industries
fail

▪ Innovation ensures ending blockades of economic development

 Three Types of Innovation

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Innovation

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Innovation Innovation
Continued

Breakthrough Innovation
▪ Unique innovation that serves as the basis for further innovations in the area.

▪ These innovations are protected by strong patents, trademarks and copyrights

▪ Ideas such as pharma,nanotechnology,computers,aviation and automobiles

Technological Innovation
▪ An innovation that occurs frequently than breakthrough innovation and is not the
same level of scientific discovery and advancements.
▪ Meaningful innovations that offer advancements in product/market area.
▪ Examples : 3D printing,5G technology, AI & Machine learning

Incremental Innovations
▪ The most occurred innovation ,it usually extends an existing innovation into a
better product or service
▪ Usually comes from market analysis
▪ Effect of innovation is from market pull rather than technology push
▪ Examples : Cadburys,Gillete
Process of Innovation

Development

Application

Launch

Growth

Maturity

Decline
Innovation Development:
The process of Evalaution,modification and improvement of creative ideas

Innovation Application:
The stage where a developed idea is but into use in the design,manfcaturing or
delivery of new products,services,or processes.

Innovation Launch:
Stage where the organisation introduces new products or services to the market
place.

Application Growth:
After successful launch the period of high economic performance for an
organisation where the anticipation of demand or supply is critical.
Innovation Maturity:
Stage where most organisations in an industry have access to an innovation,enjoy
the benefit of sustained competitive advantage

Innovation Decline :
Every successful innovation has its own decline as the competitive advantage
declines, at this stage the demand decreases and substitute innovations are
developed
 Time Lag in Innovation
Time taken in translating a new idea into satisfied demand is called
innovation lag

Production
Concept Product Technology Technology
Conceptualization of Developing of a Development of an
a new idea working prototype effective and efficient
production process
Three main ways to reduce innovation lag

1. Goal setting : Specific and time bound goals create the sense of urgency
necessary for speedier innovation.

2. Empowerment: Pushing decision making authority to lower levels leads to

faster innovations

3. Concurrent engineering: Also called as parallel design, it is a team approach

to product design, In this approach,research,design,production,finance marketing
specialist have a direct say in the product design process from the very
beginning.
Distinction between creativity and innovation

Basis of Distinction Creativity Innovation

Meaning The process of generating The process of converting

new ideas new ideas into
useful,products,services
or processes.
Relationship with The seed that inspires The process of
entrepreneurship entreprenuership entreprenuership
Outcome New ideas Enterprises

Orientation Thought-oriented Action-oriented

Nature Pure Applied

Role of Innovation in Entrepreneurship

1. New product development: strong connection between market performance

and new products-capture and retain market share and increase profitability.

2. Competitive advantage: gain edge in the competitive environment- product

differentiation based on superior quality adds to companies credibility and
profitability

3. Superior quality and service : ability to make something no one else can or
to do so in a better ways is a advantage.

Eg: Dominance of Japanese firms in cars,motorcycles,and consumer electronics

is largely due to their superior manufacturing skills
 Opportunity Recognition

Prior knowledge of
Education markets and
customer problems

Outcome:
Entrepreneurial Successful
Experience
alertness opportunity
recognition

Personal Work
Networks
Experience experience
▪ As the chart indicates opportunity results from Knowledge and experience of
the individual entrepreneur.

▪ The prior knowledge is a combination of education and experience as indicated

and the experience from variety experience like work and personal experiences
to have a better understanding of the market

▪ The other important factors are the entrepreneurial alertness and entrepreneurial
networks, also there is an interaction between entrepreneurial alertness and
entrepreneur prior knowledge of markets and consumer problems

▪ One who have the ability to recognize business opportunities are in a strategic
position to successfully complete the product planning and development
process and launch new ventures
 KEY NOTES
▪ Trends that provides opportunities to the Entrepreneur

▪ Sources of new ideas

▪ Methods/Techniques of testing new ideas – 21 Techniques

▪ Innovation – description of innovation, types of innovation, process of

innovation, time-lag in innovation and ways to avoid them, Innovation VS
creativity, role of innovation in entrepreneurship development

▪ Opportunity Recognition – Go through the flow chart and the summary

following the description of the flow chart

▪ Refer textbooks for detailed description of all points