Agenda ? Entrepreneurship II. Purposeful innovationRoad map from idea to commercializationIdeas vs. OpportunitiesGenerating IdeasWhat to Do when momentum is lostIdea Generating Activity ? Fibre is the focusScreening Ideas for opportunities. Characteristics of the Successful Entrepreneur. T
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1. Business Idea Generation, Creative Thinking, Idea Screening and Business Plans Ken Hartviksen
Will It Fly Workshop
February 28, 2011
2. Agenda – Entrepreneurship II Purposeful innovation
Road map from idea to commercialization
Ideas vs. Opportunities
What to Do when momentum is lost
Idea Generating Activity – Fibre is the focus
Screening Ideas for opportunities
3. Characteristics of the Successful Entrepreneur
4. The Successful Entrepreneur
5. Innovation is a Purposeful Activity
6. Innovation has become a purposeful activity IDEO
7. A Road Map from Idea to Successful new Business Opportunity
8. The Long Road to Success Ideas – opportunities – feasibility – business plan – implementation – evaluation – modification - management
9. Brainstorming New Product Innovations
Screening Those Ideas
Implementation The Process
10. The Process - is like a funnel!
11. From Ideas to Opportunity Identifying Viable Business Opportunities
12. Business Ideas Are a ‘dime a dozen’
Don’t fall in love with your own idea
Don’t hide it under a tarp in the back yard
Look before you leap (critically evaluate the potential for the business before starting)
You have to screen from 100 to 1,000 different ideas before you find a true opportunity that fits you in this place and at this time.
Avoid the service industry in a declining economy
Avoid the retail industry in a declining economy
Seek value-added, export-oriented businesses selling into growing markets
13. Idea versus Opportunity Ideas are “a dime a dozen”
Opportunities are business ideas that offer the potential for a return on invested capital that more than offsets the costs of that capital on a risk-adjusted basis.
14. Ideas versus Opportunities Ideas
Harvest heavy metal contaminants out of river bottoms using plants
Sell pollution solution technologies to companies under environmental cleanup orders.
15. The Ideal Opportunity (Heaven) A motivated and large market of customers prepared to pay any price for the product or service you offer
Repeated purchases are necessary for customers to satisfy their demand
Significant barriers of entry for any potential competitors preserving your market dominance for a long period of time
Little or no capital investment required
High profit margin (Selling price less cost to produce)
Few employees and little demand on your time
16. Little Opportunity (Business Hell) Few customers, no repeat purchases, sporadic and unpredictable demand
few barriers of entry for any potential competitors making it easy for anyone to enter the market to compete with you if you manage to develop the market
Large initial and on-going capital investment required
Low profit margin per unit (Selling price less cost to produce)
17. Creativity and Creative Thinking
18. Hard and Soft Thinking SOFT – often circular
Non-judgmental - illogical
HARD – Linear
critical - logical
Holistic Left-Mode and Right-Mode Characteristics
20. Mental Locks/Barriers to Creativity Focus on the right answer
That’s not logical
Follow the rules
To err is wrong
Play is frivolous
That’s not my area
Don’t be foolish
I’m not creative
21. Idea Generation
22. Generating New Business Ideas Techniques include:
Group brainstorming/lateral thinking exercises
Research – observation, enquiry, play, prototype, experiment
Analysis of and reflection on trends:
Society – social trends
Political and regulatory changes
23. Opportunities are spawned in
lags or leads
knowledge and information gaps
vacuums in industry or markets Where are the opportunities?
24. Look for opportunities in the following:
things that ‘bug’ you
things that bother others or stop people from doing what they want, when they want, and the price they want
new advances in science and technology
Solutions in one field being applied to another field
look for problems that need to be solved
changes in our world whether those changes be in:
etc. Strategies for Spotting New Opportunities
25. When brainstorming, start to combine ideas. Use each as stepping stone to something else. Don’t be afraid to experiment.
Two ideas: pealing paint and gun powder
----I hate scraping old paint off the exterior of my house…..I wish sometimes that I could blast it off!!! (Of course, that would destroy the house….but…)
- maybe there is an additive that could be put in the paint before it is applied, that would allow us to trigger it’s easy removal. Importance of Lateral Thinking
26. Simile (Comparing things using ‘like’ or ‘as’) Simile often give us ideas or insights that logical thinking cannot.
Fibre is like glue.
Different simile will give you a whole new perspective on what it is that you are examining.
Fibre is like a sieve.
Fibre is like gossamer.
Use the insight provided by different simile to look for ideas!
Example: Dolby is like a sonic laundry. It washes out all the noise or dirt from the sound without hurting the sound.
27. Use “What if” Questions
Play with the idea
Challenge the rules associated with the problem
Be a magician
Be a child
Be ambiguous…and look for the possibilities (geeh…that pen is a pen, but it could be a pointer, a digging implement or even a weapon or projectile)
Go “hunting” for ideas from other fields…ideas that could be creatively applied to your field of interest. (Like Guttenberg who used the coin punch and wine press ideas to invent the printing press.)
Other Creative Thinking Techniques
28. At the edges of human experience: (at extremes)
when you are tired
when you are at rest
when you are pressed by a deadline or are stressed
when you are playing
when you are on vacation
when you are exercising
Usually NOT when you are doing routine things!!!!
Try doing something differently…live your day backwards…break the routine!
Necessity is the Mother of Invention…but play must be the Father!
When are you open to Creativity?
30. Requires creative thinking (soft-thinking)
Here are some suggestions to improve the brainstorming process:
Choose a facilitator
Small groups work better than large.
Freewheeling is encouraged – the wilder the idea the better.
Brainstorm spontaneously, copiously
No criticism, no negatives
Quantity – the greater the number of ideas, the greater the likelihood of finding useful ones.
Record ideas in full view
Invent to the “void”
Resist becoming committed to one idea
Combinations and improvements are encouraged – ideas of others can be used to produce still other new ideas.
Identify the most promising ideas
Refine and prioritize Brainstorming
31. Reverse Brainstorming
32. Reverse Brainstorming Like brainstorming EXCEPT criticism is allowed.
Ask the question:
“In how many ways can this idea fail?”
After you have identified everything wrong about an idea, you discuss ways to overcome these problems.
33. Brainwriting Written form of brainstorming. (Bernd Rohrbach – Method 635)
Use 5 minute intervals.
Works best with 6 member groups.
Each group member writes three ideas on small card in each 5 minute period.
The card is passed to the next adjacent person – who writes down three new ideas on the same card – who passes it to the next person…until each form has passed all participants.
34. Problem Inventory Analysis Produce a list of problems with natural fibre.
Identify and discuss products in each category that have the particular problem.
Example using food:
Weight – fattening – empty calories
Hunger – filling – still hungry after eating
Thirst – does not quench – makes one thirsty
Health – indigestion – bad for teeth – keeps one awake - acidity
Taste – bitter – bland – salty - sweet
Appearance – colour – unappetizing - shape
Consistency/Texture – tough – dry – greasy
Meal Planning - forget – get tired of it
Storage – run out – package would not fit
Preparation – too much trouble – too many pots – never turns out
Cooking – burns - sticks
Cleaning – makes a mess in oven
35. Problem Inventory Analysis … Example using food….continued:
Portability – eat away from home – take lunch
Portions – not enough in package – creates leftovers
Availability – out of season – not in supermarket
Spoilage – get mouldy – gets sour
Cost – expensive – takes expensive ingredients
Serve to company – would not serve to guests – too much last minute preparation
Eating alone – too much effort to cook for oneself
Self-image – made by a lazy cook – not served by a good mother
36. Checklist Method Developing a new idea through a list of related issues:
Put to other uses? New ways to use as is? Other uses if modified?
Adapt? What else is like this? What other ideas does this suggest? Does past offer parallel? What could I copy? Whom could I emulate?
Modify? New twist? Change meaning, colour, motion, odour, form, shape? Other changes?
Magnify? What to add? More time? Greater frequency? Stronger? Larger? Thicker? Extra Value? Plus ingredient? Duplicate? Multiply? Exaggerate?
37. Checklist Method … Developing a new idea through a list of related issues:
Minify? What substitute? Smaller? Condensed? Minature? Lower? Shorter? Lighter? Omit? Streamline? Split up? Understated?
Substitute? Who else instead? What else instead? Other ingredient? Other material? Other process? Other power? Other place? Other approach? Other tone of voice?
Rearrange? Interchange components? Other pattern? Other layout? Other sequence? Transpose cause and effect? Change pact? Change schedule?
38. Checklist Method … Developing a new idea through a list of related issues:
Reverse? Transpose postive and negative? How about opposites? Turn it backward? Turn it upside down? Reverse roles? Change shoes? Turn tables? Turn other cheek?
Combine? How about a blend, an alloy, an assortment, an ensemble? Combine units? Combine purposes? Combine appeals? Combine ideas?
39. Free Association Developing a new idea through a chain of word associations.
A word or phrase is written down – then another and another
Each new word attempting to add something new to the ongoing thought process
Thereby creating a chain of ideas ending with a new product idea emerging.
40. Forced Relationships Developing a new idea by looking at product combinations.
Isolate the elements of the problem
Find the relationships between these elements
Record the relationships in an orderly form
Analyze the resulting relationships to find ideas or patterns
Develop new ideas from these patterns.
41. Example of Forced Relationship Relationship/ Elements- Paper/Soap
Forms Combination Idea/Pattern
Adjective Papery soap Flakes
Soapy paper Wash and dry travel aid
Noun Paper soaps Tough paper impregnated with soap and usable for washing surfaces
Verb-correlates Soaped papers Booklets of soap leaves
Soap “wets” paper In coating and impregnation processes
Soap “cleans” paper Suggests wallpaper cleaner
42. Collective Notebook Method Developing a new idea by group members regularly recording ideas.
Use a small notebook that fits into a pocket:
Record – statement of the problem, blank pages and any pertinent background data.
Each group member write their own personal ideas three times each day.
Give to group leader at the end of the day
Group leader summarizes all material
Final creative focus group discussion with all participants.
43. Attribute Listing Method Developing a new idea by looking at the positives and negatives.
List the attributes of an item or problem
Look at each attribute from a variety of viewpoints
Originally unrelated objects can be brought together to form a new combination and possible new uses that better satisfy a need.
44. Big-Dream Approach Developing a new idea by thinking without constraints.
Dream (imagine) about the problem and its solution (think big)
Every possibility should be recorded and investigated without regard to the negatives involved or resources required.
Ideas should be conceptualized without any constraints until an idea is developed into a workable form.
45. Parameter Analysis Developing an idea by focusing on parameter identification and creative synthesis.
Analyze variables in the situation to determine their relative importance
Important variables are the focus and others set aside
Relationships between parameters that describe the underlying issues are examined.
Through evaluation of the parameters and relationships, one or more solutions are developed; this solution development is called creative synthesis.
46. When Momentum is Lost
47. Strategies to Regain Focus Immerse yourself in the topic
Develop a number system
Change your location
Use a different technique
Take a short break and do something
48. Immerse Yourself If you are developing ideas about fibre:
Grab as much fibre as you can
Put it together in weird combinations
Talk to people who produce, use, modify fibre
Explore use of fibre in all aspects of human, animal, geologic life
Talk to people who use fibre
Talk to people who convert fibre
Talk to people who hate fibre
Talk to textile experts – filter experts – basket weaving experts – art teachers – artists – engineers - contractors
49. Brain Dump Each person has to write as many ideas as they can on one filing card.
Cards are thrown into a hat
Cards are pulled out one at a time.
Group members then have to argue why the idea is great.
The key is to generate as many ideas as possible.
Eventually the group can vote on the ideas they liked the most.
50. Develop a Number System Identify six possible target markets for an application of fibre:
Develop a list of possible features.
The group then has to develop as many ideas as possible using the ingredients and the target market.
51. Idea Screening
52. Out of 100 ideas or more, there may be only one or two real opportunities.
Superior business ideas that have the potential to become opportunities have 4 anchors:
They create or add significant value to a customer or end user.
They do so by solving a significant problem, or meeting a significant want or need, for which someone is willing to pay a premium.
They therefore have a robust market, profit margin, and moneymaking characteristics.
They are a good fit with the founder(s) and management team at the time and in the marketplace with a risk/reward balance. Idea Screening
53. Characteristics of the "Ideal" Business Idea Ř Technical feasibility
Ř Requires no initial investment
Ř Has a recognized, measurable market
Ř A perceived need for the product or service is present
Ř A dependable source of supply for the required inputs is available
Ř No government regulation
Ř Requires no labour force
Ř Provides 100 percent gross margin
Ř Buyers purchase frequently
Ř Receives favourable tax treatment
Ř Has a receptive, established distribution system
Ř Has great publicity value
Ř Customers pay in advance
Ř No risk of product liability
fully examine the potential of an opportunity
identify key success factors
identify critical risk factors
guide the entrepreneur in start-up
raise capital The Business Plan
55. Involve all of the management team in its preparation
make the plan logical, comprehensive and readable - and short as possible
identify critical risks and assumptions
disclose and discuss any current or potential problems in the venture
identify several alternative sources of financing. Spell out the proposed deal and how investors will win.
Be creative in gaining the interest of potential investors.
Remember the plan is not the business.
Know your targeted investor group.
Let realistic market and sales projections drive the assumptions underlying the financial forecasts, rather than the reverse. Business Plan Do’s
56. Don’t have unnamed, mysterious people on the management team.
Don’t make ambiguous, vague or unsubstantiated statements such as estimating sales on the basis of what the team would like to produce.
Don’t describe technical products using jargon that only an expert can understand. Don’t spend money on developing fancy brochures, or other ‘sizzle’ - instead, show the “steak” Business Plan Don’ts
prepared for the audience
organized A Good Business Plan is...