The Search for a Sound Business Idea

The Search for a Sound Business Idea

Sound Business Idea – an economic opportunity which is within reach of the entrepreneur and which will provide him with a desirable value.

Creativity – the reorganization of experiences into new configurations.

                       This has an important role in the formulation of a sound business idea.

The Creative Process

1.       Preparation – the collection of two or more large bodies of information that become associated with new and unique ways is undertaken.

2.       Incubation – the creative person relaxes and withdraws from the intense preparation period. It means getting out of the situation and observing it at a distance after sufficiently relaxing.

3.       Insight – this occurs when the creative individual discovers new associations and patterns which provide a useful solution to a problem.

4.       Verification – involves testing, refining, demonstrating and communicating the creative ideas during the insight phase

The phases sometimes overlap. For instance, insights may happen during the preparation period/

The Elements of Creativity

1.       Drive – the motivation or willingness to repeat a process until the answer to a problem is obtained. Successful inventors did not succeed in their first try.

2.       Fluency – the ability of the creative person to come up with a lot of ideas regarding the problem under consideration. Example “ how one will cross a certain river” . boat, swim, bridge. etc.

3.       Flexibility – thinking beyond a certain category ideas. Example catching fish with electricity powered by battery beyond the usual net.

4.       Originality – ability to consider the use of unusual and rare ideas. The use of sealants, before GI roofs are replaced even with only a hole in it.

5.       Awareness – the ability to see unusual connections between objects and things. Ex. Laser treatment. Internet

Types of Innovations

1.       Product Innovation – refers to new products or services as well as improvements of old products or services.

2.       Process Innovation – refers to the improvement of processes in the organization

3.       Marketing Innovation – refers to the improvements in the marketing functions of promotion, pricing, distribution, packaging and advertising.

Group Creative Techniques

Sound Business Idea comes from outputs of creative endeavors. When an entrepreneur is confronted with a problem of producing new business ideas and he can utilize the creative skills of a group, there are certain techniques available. They are the following:

1.       Interactive Techniques – meeting face to face with open interchange

a.        Brainstorming – a group creative problem- solving process that focuses on the following procedures:

1.       no negative feedback is allowed on any suggested alternative until all alternatives have been generated.

2.       piggybacking on other’s ideas is encouraged

3.       quantity of ideas, not quality, is the key

4.       evaluation comes later

5.       freethinking is pursued

6.       let the ‘wild and crazy ideas’ flow

b.       Storyboarding – a structured, but flexible brainstorming process that focuses on identifying major issues and then brainstorming each of them. Storyboarding allows for a complete picture (story) of the problem to be placed before participants, usually min some type of wallboard.

2.       Nominal Group Technique – this involves a structured process for integrating individual thinking and group interaction in order to capitalize on the benefits of both.

3.       Delphi Technique – this involves utilizing a series of questionnaires administered by a central individual to experts who never meet face-to-face.