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BUS502 Entrepreneurship
Creating Business Ideas
Week 2
Learning Objectives
To identify various sources of ideas for new ventures
To discuss methods available for generating new venture ideas
To discuss creativity and the techniques for creative problem solving
To discuss the importance of innovation
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives
To understand an opportunity assessment plan
To discuss the aspects of the product planning and development process
To discuss aspects of e-commerce and starting an e- commerce business
To further discuss forms of entrepreneurship
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Trends of the Next Decade
Wearable Trend
Smart watches
Smart cameras
Augmented reality
Green Trend
Energy efficiency
Energy storage
Hybrid systems
Resource (re)use
Payments
Lending
Digital currencies
Mobile
Maker Trend
DIY
Design
Craft
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Trends of the Next Decade (cont’d)
Mobile Trend
Technology
Content
Interactions
Health Trends
Wellness
Nutrition
Health care
The future is Fitness mobile
Internet of Things
Smart devices
Embedded Wifi
Linked to mobile and wearable technology
Sources of New Ideas
Consumers
Entrepreneurs should:
Formally or informally monitor potential ideas
Ensure that the idea represents a large enough market to support a new venture
Existing products and services
Formally monitor and evaluate competitive products and services on the market
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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Sources of New Ideas
Distribution channels
Help suggest and market new products
Federal government
Taking cue from pending patents
Ideas evolve in response to government regulations
Research and development
Formal endeavor connected with one’s current employment
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Methods of Generating New Ideas
Focus groups
Open in-depth discussion led by a moderator
Problem inventory analysis
Obtaining new ideas and solutions by focusing on problems
Used to test a new product idea
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Methods of Generating New Ideas
Brainstorming
Group method for obtaining new ideas and solutions
Rules of brainstorming
No criticism
Freewheeling is encouraged
Quantity of ideas is desired
Combinations and improvements of ideas are encouraged
Brain writing
Form of written brainstorming
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Creative Problem Solving
Method for obtaining new ideas focusing on the given parameters
Can be stifled by perceptual, cultural, emotional, and organizational factors
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Creative Problem-Solving Techniques
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Brainstorming
Reverse brainstorming
Brainwriting
Gordon method
Checklist method
Free association
Forced relationships
Collective notebook method
Attribute listing method
Big-dream approach
Parameter analysis
… and others
Illustration of Parameter Analysis
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Types of Innovation
Breakthrough
Extremely unique innovations that establish the platform on which future innovations can be developed
Should be protected by patents, trademarks, and copyrights
Technological
Advancements in the product/market area
Needs to be protected
Ordinary
Extend technological innovation into a better product or service or one that has a different market appeal
Result of market analysis and pull and not technological push
Innovation
Defining a new innovation
Newness of a product or service can be attributed to:
Consumer concept
Change in the package or container
Change of service delivery
Modifications in the appearance of the product (industrial market)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Classification of new products
Consumer’s viewpoint
Determines newness in terms of its effect
Degree of newness depends on:
Level of behavioral change or new learning required by the consumer
Firm’s viewpoint
An innovative entrepreneurial firm should:
Make a distinction between new products and new markets
New products - Defined in terms of amount of improved technology
Market development - Based on the degree of segmentation
Continuum for Classifying New Products
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
New Product Classification System
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Product Planning and Development Process
Product life- cycle
Stages each product goes through from introduction to decline
Product planning and development process
Stages in developing a new product
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Product Planning and Development Process
Evaluation criteria
Market opportunity Competition Marketing system Financial factors Production factors
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
The Product Planning and Development Process
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
E-commerce and Business Start-up
Offers entrepreneurs an opportunity to be creative and innovative
Factors that facilitate growth
Widespread use of personal computers
Adoption of intranets in companies
Acceptance of the Internet as a business communications platform
Faster and more secure systems
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
E-commerce and Business Start-up
Using E-commerce creatively
An entrepreneur has to decide whether he or she will run the Internet operations:
Within the company or outsource these operations to Internet specialists
Integrate front-end and back-end activities
Integrate customer orders, with distribution channels and manufacturing capabilities
Allow flexibility for specific customer orders
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
E-commerce and Business Start-up
Web sites
Important features include:
Ease of use
Search capability
E-mail response system
Speed
Compatibility with different browsers and platforms
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
E-commerce and Business Start-up
Doing E-Commerce as an entrepreneurial company
Essential criteria
Economic and convenient delivery of products
Products should cater to a wide market
Feasibility of shipping outside own geographical location
Significant cost reductions
Ability to economically draw customers to its Web site
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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Fastest Growing SME sectors in Australia
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https://www.nbnco.com.au/content/dam/nbnco2/documents/small%20Business-big-thinking-nbn-report.pdf
Preparation task from last week
Find examples of different types of entrepreneurs (e.g. start-up, social, sustainability, etc.) that inspire you.
List and add link to the website/source.
What in particular inspired you for each of them?
What examples did you find?
Corporate Entrepreneurship
Organisations that excel or promote corporate entrepreneurship?
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Sustainable Entrepreneurship
Organisations or individuals that focus on sustainable entrepreneurship?
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Social Entrepreneurship
Organisations or individuals that focus on social entrepreneurship?
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Preparation for next week
In week 3, we will start exploring the business model canvas with examples from existing businesses. Have a look at the canvas, as well as explore some of the material on the Strategyzer website (links on Learnline).
We will also continue developing business ideas and you will have the opportunity to discuss some ideas that you have for your assignment 2. Therefore, start using the canvas and/or briefly describe on one page what your business proposition is. (See tips on Learnline)
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