Creating and Starting The Venture

Whats New About the New Venture?

A. New Knowledge? Ex. Human Genetic Structure B. New Technology?... Ex. How to Modify It C. New Products? ... Ex. New Cancer-Suppressing Drugs

D. New Services? ... Ex. New tests for Cancer

E. All of the Above? ... Ex. New System For Doing Business

Sources of Innovation
Source Examples
Success: Apple Computer Unexpected Occurrences Failure: Ford Edsel

Process Needs Industry/Market Change Demographic Changes Perception Change Knowledge-Based Concepts

Sugar-Free Products, Caffeine-Free Coffee, Microwave Ovens Health Care Industry Changing to Home Health Care Rest Homes/Retirement Centers for Older People Exercise (Aerobics) & Growing Concern for Fitness Video Industry: Robotics

Impediments to Creativity
1) Fear & Anxiety

2) Defensiveness
3) Cultural Inhibition

Organizational Hindrances to Creativity Process

Stress on Consequence of Failure Organizational Instability Excessive Rules, Policies, Relationships, & Procedures Highly Centralized Organizational Structure Little time allocated to thinking & Experimenting

Barriers to Creative Decision-Making

Searching for one right answer Focusing on being logical Blindly following rules Constantly being practical Viewing play as frivolous Becoming overly specialized Avoiding ambiguity Fear of looking foolish Fearing mistakes & failure Believing that Im not creative

Sources of New Ideas

Consumers (ex. Feed back / opinion etc.)

Existing Products/Services
Distribution Channels Govt. Research & Development

Methods of Generating Ideas

Focus Groups

Brainstorming
No Criticism

Freewheeling
Large Quantity of Ideas

Combinations/Improvements Encouraged

Problem Inventory Analysis

Creative Process
1) 2) 3) 4) 5) 6) 7) Preparation Investigation Transformation Incubation Illumination Verification Implementation

Creative Problem Solving

Brainstorming
Reverse Brainstorming Brainwriting Gordon Method Checklist Method Free Association Forced Relationships Collective Notebook Method Attribute Listing Big-Dream Approach Parameter Analysis

Invention Process
Technology Observation Parameter Analysis Creative Synthesis

Parameter Identification

Market Need Analysis

Realization of Invention

Additional Sources of New Ideas

Opportunity Recognition

Product Planning/Development
Establish Evaluation Criteria

Idea Stage
Concept Stage Product Development Stage Test Marketing Stage

Determining Need
Type of Need Timing of Need Competing Ways to Satisfy Need Perceived Benefits/Risks Price vs. Performance Features Market Size &

Potential
Availability to

Customer Funds

Determining New Product Value

Cash
Outflow
Inflow Net

Profit Relative Return Compared To Other Investments

Sources of Extraordinary Profit

1) 2) 3) 4) 5) 6) Monopoly Power Consumer Ignorance Cost Leadership Product Differentiation Innovation Speed to Market

Stages of Innovation

Breakthrough Innovation

UN I Q U E N E S S

Technological Innovation

Ordinary Innovation

NUMBER OF EVENTS

E-Commerce & Startup

E-Commerce Creativity Website Tracking Customer Information

Checklist for Website Design

Professional Outlook Credibility Functionality Characteristics
Speed Ease of Use Customization International Orientation Browser Compatibility