5-1

Chapter

Creating and Starting The Venture

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Whats New About The New Venture?

A. New Knowledge?- Human Genetic Structure B. New Technology?- How To Modify It C. New Products?- New CancerSuppressing Drugs D. New Services? New Tests For Cancer E. All Of The Above?- New System For Doing Business

5-3

Sources of Innovation
Source
Incongruities

Examples
Overnight Package Delivery

Success: Apple Computer Unexpected Occurrences Failure: Ford Edsel 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
5-4

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

Impediments to Creativity
1) Fear & Anxiety

2) Defensiveness

3) Cultural Inhibition
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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
5-6

Barriers To Creative Decision-Making

Searching for one

Focusing on being Blindly following rules Constantly being Viewing play as
frivolous practical right answer

Becoming overly
Avoiding ambiguity Fear of looking foolish Fearing mistakes & Believing that Im not
creative
5-7

specialized

logical

failure

Sources Of New Ideas

Consumers Existing Products/Services Distribution Channels

Federal Government
Research & Development
5-8

Methods of Generating Ideas

Focus Groups Brainstorming
No Criticism Freewheeling

Large Quantity Of Ideas

Combinations/Improvements Encouraged

Problem Inventory Analysis

5-9

Creative Process
1) 2) 3) 4) 5) 6) 7) Preparation Investigation Transformation Incubation Illumination Verification Implementation
5-10

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
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Invention Process
Technology Observation Parameter Analysis Parameter Identification Realization of Invention Creative Synthesis

Market Need Analysis

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Additional Sources of New Ideas

Opportunity Recognition Product Planning/Development
Establish Evaluation Criteria Idea Stage Concept Stage Product Development Stage Test Marketing Stage
5-13

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
5-14

Determining New Product Value

Cash
Outflow Inflow Net

Profit
Relative Return

Compared To Other Investments

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Sources of Extraordinary Profit

1) Monopoly Power 2) Consumer Ignorance 3) Cost Leadership 4) Product Differentiation 5) Innovation

6) Speed To Market
5-16

Stages of Innovation
U N I Q U E N E S S Breakthrough Innovation

Technological Innovation
Ordinary Innovation

NUMBER OF EVENTS
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E-Commerce & Startup

E-Commerce Creativity
Website Tracking Customer Information Entrepreneurial Company
5-18

Checklist for Website Design

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