Entrepreneurship development and Industrial Consultancy

Module.2 Concept and working of entrepreneur

Lesson 10

GENERATION, INCUBATION AND COMMERCIALIZATION OF IDEAS AND INNOVATIONS

10.1 Introduction

Choosing a good idea decides the success to an enterprise. The idea should be such that it can be independently managed by an entrepreneur. To arrive at such an idea, it is necessary to pursue/ think about at least five to ten ideas initially and then screening and analysis, arrives at a most promising single idea.

10.2 Sources of Ideas

1. Consumers : The products and services are meant to satisfy the consumer’s needs. Thus entrepreneurs should try to search unsatisfied needs of consumers.

2. Existing products : Entrepreneurs should systematically analyze the existing products in the market. It will give an opportunity to further improve upon the existing products to match with the consumer’s need.

3. Distribution channels : Channel members are responsible for making the product available to the consumers. They frequently interact with the consumers and thus know their hidden needs. Thus they provide meaningful clue after developing new products or modifying existing products.

4. Research and Development : R & D efforts by existing organization, leads to new ideas for the organization.

10.3 Methods of Generating Ideas

1. Focus Groups : Groups of individual providing information in structured formats.

2. Brain Storming : A group method for obtaining new ideas and solutions.

3. Problem inventory analysis : A method for obtaining new ideas and solution by focusing on problems.

4. C reative problem solving : A method for obtaining new ideas focusing on parameters.

5. Reverse Brain Storming : A group method for obtaining new ideas focusing on the negative.

6. Synectics : A method for individuals to solve problem through one of the four analogy mechanism : Personal, Direct, Symbiotic and Fantasy

7. Gordon Method : A method for developing new ideas when the individuals are unaware of the problem.

8. Check list method : Developing a new idea through a list of related issues.

9. Free Association : Developing a new idea through a chain of word association.

10. Forced Relationships : Developing a new idea by looking at product combinations.

11. Collective notebook method : Developing a new idea by group members regularly recording ideas.

12. Heuristics : Developing a new idea through a thought process progression.

13. Scientific method : Developing a new idea through inquiry and testing.

14. Value analysis: Developing a new idea by evaluating worth of aspects of ideas.

15. Attribute listing : Developing a new idea by looking at the positive and negative attributes.

16. Matrix Charting : Developing a new idea by listing important elements on attributes axes of a chart.

17. Big dream approach : Developing a new idea by thinking about constraints.

18. Parameter Analysis : Developing a new idea by focusing on parameter identification and creative synthesis.

10.4 Product Planning and Development Process

Several ideas can be obtained by using the idea generation method. After careful analysis and screening, potential ideas can be further developed into a final product or service. This is carried out through product planning and development process which is divided into five stages. Idea stage, Concept Stage, Product development stage, Test marketing stage and commercialization.

1. Idea Stage : In this stage new product ideas are generated and potential ideas are selected from among all the generated ideas. Only the best idea is selected, considering its market value and requirement of organization resources for its development into product.

2. Concept Stage : At this stage only potential viable ideas are developed and refined after obtaining consumer perception about the same. At this stage product is not actually produced but preliminary reactions are obtained from prospective consumers. Based upon responses, the product can be refined/ reformulated according to the consumers need, or dropped.

3. Product Development stage : At this stage actual, physical product is given to the consumer panel for evaluation.

4. Test Marketing Stage : A market test can be carried out to increase the probability of successful commercialization. At this stage actual sales results are obtained indicating the acceptance level of the consumers. Based on the feedback from consumers necessary improvements are incorporated in the product.

5. Commercialization : After knowing fully the success probability, the organization then decides to finalize all features of the product. At this stage marketing department carries out related promotional activities and production department for mass production of the product.