UNDERSTANDING CREATIVE
PROCESSES
•
•
•
•
•
•
•
Preparation
Investigation
Transformation
Incubation
Illumination
Verification
Implementation
SOURCES OF NEW IDEAS?
• Consumers
• Boundary Spanners
• Front-line Employees
• Cost-Benefit Analyses
• Existing Products/Services
• Distribution Channels
• Research & Development
• “Foreign” Markets
NEW VENTURE IDEA
GENERATING TOOLS
• Brainstorming
• Focus groups
• Value Chain Analysis
(Firm/Industry)
• Business Strategy
(Gap) Analysis
• Checklist Method
• Challenging
Assumptions
Idea Generating Tools…
(Firm Value Chain Analysis)
1. Select a
business/
industry.
Human Resource Management
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Firm Infrastructure
2. Identify
areas of
weakness/
need.
Idea Generating Tools…
(Industry Value Chain Analysis)
Industry A
Firm A
Firm B
Firm C
Raw
Materials
Consumer
Goods
Industry B
Firm 1
Raw
Materials
Firm 2
Firm 3
Firm 4
Consumer
Goods
Idea Generating Tools…
(Competitor’s
Source of Competitive Advantage
Business Strategies)
Cost
Breadth of
Competitive
Scope
Broad
Target
Market
Narrow
Target
Market
Uniqueness
Cost
DifferenLeadership
tiation
Integrated
Low Cost/
Differentiation
Focused
Focused
DifferenLow Cost
tiation
Idea Generating Tools …
• Checklist Method
•Other uses?
•Adapt?
•Modify?
•Magnify?
•Internationalize?
p. 146
•Minify?
•Substitute?
•Rearrange?
•Reverse?
•Combine?
Idea Generating Tools …
• Challenging Assumptions
• List your assumptions
• Record differing viewpoints
• Reverse each assumption
• Ask yourself how to accomplish each reversal
(E.g., GM Sloan M-form, installment purchases; Military uniforms
and battlement field medical care)
Restaurants
• Have menus, written, verbal or implied
• Charge $ for food
• Serve food
Adapted from Michalko (2006)
ASSESSING CURRENT &
POTENTIAL DEMAND
• Type of Need
• Timing of Need
• Competing Ways
to Satisfy Need
• Perceived
Benefits/Risks
p. 148
• Price vs.
Performance
Features
• Market Size &
Potential
• Availability of
Customer
Funds
The Entrepreneurial Process
• Challenge Traditional Definitions of Value
• Entrepreneurship thrives on market
inefficiencies
• Customers seek improvement in the
following:
•
•
•
•
Speed
Convenience
Personalization
Price