UMC05 - ENTREPRENEURSHIP

Business Idea & Concept

Pertemuan ke 7-8
 Sub-CPMK
• Mahasiswa mampu membuat konsep bisnis dan
menerapkannya ke dalam kerangka Business Plan (C3, A3)

Materi
1. Business Concept
1. Business Concept
 1.1 Business Ideation

• Ideation refers to the process of developing and conveying prescriptive

ideas to others, typically in a business setting. It describes the sequence
of thoughts, from the original concept to implementation.
... Ideation can be expressed in graphical, written, or verbal terms.
 1.2 Business Ideation Process

• Every business opportunity starts with an idea. This is an intuitive

process and for an entrepreneur, potentially the “eureka” moment of
their professional lives.

• Analyze your idea – Think and rethink your idea. At this stage, you need
to analyze if your idea is something that is implementable at a larger
scale or is it just a great thought. Get the thinking cap on.
 1.2 Business Ideation Process (Cont.)

• Business Value – This is when you need to start setting expectations

around your idea. Try and assess the market failure that your idea can
address and the commercial opportunity that it may present. At the end
of the day, you need to implement the idea and generate revenues out
of it.
 1.2 Business Ideation Process (Cont.)

• Demand – People often speak about certain businesses being nothing

more than a “me –to” of a more successful and similar venture. There is
nothing wrong with that, but it is very important for you to identify
business reasons as to why consumers will transact with you and not
with the existing more established players existing in the industry. It
could be because there is a demand-supply mismatch, an uniqueness in
your delivery model, existing players do not meet consumer
expectations, or simply put, you just have a great idea.
 1.2 Business Ideation Process (Cont.)

• Skills and dependencies – This is a critical component of your ideation

phase. Do you have the skills to implement your idea and transform it
into a successful business? If you believe fundamental gaps exist, look
for co-founders who have complementary skills. Get a strong team
together and leverage each other’s capabilities. Ensure that compliance
issues are addressed and if appropriate, a legal entity is established.
Brainstorm and start to document your idea. It is here that most
entrepreneurs struggle, as transferring a thought into a structured
document, more popularly known as a business plan can prove to be
challenging.
 1.2 Business Ideation Process (Cont.)
• Ideation is the process of coming up with an idea. It is using creativity
and questions like “What if?” to imagine ways something can be done
differently. The ideation stage is critical to ensure that you are
generating good ideas from the start. It involves seeing problems and
opportunities, brainstorming around the problems you identify, and
doing research to test your assumptions about the market, your
customers, and your idea. Refining that initial idea involves assessing
the market, looking at trends, and asking questions (and more
questions)—and learning from potential customers, investors, and
research whether your idea is a good one.
 1.2 Business Ideation Process (Cont.)
The design process consists of a series of steps to test assumptions and
ideas. Ideation falls within a larger design process that begins with
understanding who you are serving; empathizing, understanding, and
defining the needs of that target audience; then ideating around what is
needed (Figure 1):
 1.2 Business Ideation Process (Cont.)

• In the Stanford School Design Thinking

Process, there six stages to design[1]:
• Understanding
• Empathizing
• Synthesis
• Ideating
• Prototyping
• Testing
 1.3 Understanding
• First stage: Every design thinking process (this is where the overview of
the design thinking process begins) starts with the immersion in the
problem area. The brain can process 7 ± 2 pieces of information in the
short-term memory. This means, it takes awhile for humans to
understand a complex problem. But no worries, we can do this much
better than computers, as our unconscious mind can collaborate in the
meantime and establish already known things, assemble for analogies
and rely on familiar principles and competences.
 1.3 Understanding

The Most Important Methods for Understanding a Problem in

Design Thinking:
• Mind map
• Extreme situations
• Stakeholder analysis
• Analogies & role models
 1.3 Understanding (Cont.)

• Timeline
• Semantic analysis
• The rational understanding stage if followed by the second
stage Empathize (learn more), which illuminates even more
the needs and the human factors. After the third stage of the
problem area Synthesize (learn more), the successful solution
development can begin.
 1.4 Empathizing
• The 3 main ways to build empathy
1. Holding an interview. Ask the people! About their personal experiences,
thoughts, feelings. The goal of the question is to get concrete stories and
find out the needs of the people.

2. Field research by observation. How do people move in a certain

environment? Which items and which symbols are important?
 1.4 Empathizing (Cont.)
3. Simulation. Act like the people! Imitate the language, the movements,
the attitude. This is as effective as 1000 miles in moccasins.

4. Levels of Human Communication

• Many interpersonal issues are dealt with on the surface level, although
the true reasons are deeper. The Iceberg model and the reflection of the
following levels help you to understand:
• Behavior: Things we can actually observe: words, deeds, gestures,
volume of the voice …
 1.4 Empathizing (Cont.)
• Thinking: Thoughts, pictures, ideas, beliefs that consciously play out in
the head.

• Feeling: For many people harder to access are the emotions such as
sadness, disappointment, enthusiasm, yearning …

• Needs: The source of dynamics on the other level. Most interesting in

organizations: Does a person seek more affiliation or individuality?
Security or change?
 1.5 Synthesize

• The third stage in Design Thinking is called Synthesize. In this

stage all the important information and insights from the first
two stages, „understand“ and „empathize„, are gathered and
melted together – synthesized (this is an overview of the design
thinking process).
 1.5 Synthesize (Cont.)

The synthesis can be well represented by the POV, the point-of-view.

Overview of the POV method in Design Thinking

1.Person – name, age, family, occupation, personality

2.Needs – social – individual, active – passive, changing – preserving

 1.5 Synthesize (Cont.)
3. Environment – conventions, obstacles, opportunities, zeitgeist
With this structure, you can break down every difficult problem from the
relevant person’s point of view. If you have a clear POV, you can easily
invent something new and develop ideas in the next stage. This is why the
right questions with the following approach are helpful.
 1.5 Synthesize (Cont.)
HMW Questions in Design Thinking: How might we…
Who ask, they lead. And the creative stage leads to a good question. The
following approaches to the HMW questions will help to get the creativity
flowing in the team:
HMW – How might we …
•… solve the Problem?
•… master the challenge?
•… satisfy the needs?
•… achieve the goals?
•… allow new possibilities?
 1.6 Ideation
• Fourth stage: For most people, developing ideas is the heart of all
creativity and also the core of the design thinking process (this is an
overview of the design thinking process). For us, it is only the tip of the
iceberg. Let’s have a closer look at the fourth phase of Design Thinking:
Ideation.
 1.6 Ideation (Cont.)
• Only when the underlying problem and the needs of the people are
clearly understood, the most effective solutions come to life – quite by
themselves. That’s why there is design thinking, and not just
brainstorming. Creativity must be steered in the right direction, so that
the really powerful ideas can be implemented into long-lasting
solutions! This ideation stage will be followed by a cycle
of prototyping, testing and improving.
 1.6 Ideation (Cont.)
• There should be a question for every ideation method. It can be defined
in the synthesis stage. Usually, the brainstorming question follows one
of the patterns:

• How can we…

• … meet the needs?
• … make the user happy?
• … solve the Problem?
• … design the ideal problem solution?
 1.6 Ideation (Cont.)
• The three best ways for developing good ideas (without
“brainstorming”):

1. Bodystorming: Imagine that the solution already exists. Put yourself

into the role of a relevant stakeholder: How do you interact with the
solution? What do you think? How do you feel? What can you do
with it, what not? Go forward with the information: What creates
the solution? What must it look like to lead to the desired reaction?
 1.6 Ideation (Cont.)
2. Headstand method: 1. Turn the question upside down: How can we
make the problem much worse? What could sweep us from the
market? How do we destroy the team spirit? 2. Gather answers to
this question. 3. Cluster the answers. 4. Derive the positive
principles of success!

3. Walking: A relaxing walk through the park often helps much more
than another hard-hitting meeting. When the body relaxes and the
mind experiences no irritation by the rest of the group, it can freely
imagine and create good solutions.
 1.7 Prototyping
• Fifth stage: Prototyping is the heart of the creative process (here’s an
overview of the Design Thinking process).

• After understanding the problem, the team switches from the problem-
based into the solution-based thinking and begins to create ideas. In the
prototyping stage these ideas are turned into tangible products that
visualize the potential solutions.

• Methods of prototyping
 1.7 Prototyping (Cont.)
• Haptic prototypes: Visualize the idea with modeling clay, Lego,
cardboard, play corn and crafting material.

• Lego Serious Play

• Role-playing games: In the interaction between the users and the

inventors, the core of the idea becomes clear.
 1.7 Prototyping (Cont.)
• Digital Prototyping: Show an idea on the internet with WordPress & Co.

• Visualize: Through painting, drawing, animating, photo collages etc. an

idea can be made visible.

• Also Interesting:
 1.8 Testing
• Sixth stage: After ideation and creating prototypes, the final stage in
Design Thinking is: Testing

• This is a challenging but crucial step. The most valuable feedback comes
from the future users using the prototype: Is the idea important? How
should the product be improved? What do people want?

• The most important methods for testing in Design Thinking

 1.8 Testing (Cont.)

• Present & Collect Feedback: A simple & proven form in which the
audience sees the new idea.

• Observe: The product stands alone and the user interacts with it.

• Thinking out loud: The user uses the prototype and thinks out loud.
 1.8 Testing (Cont.)
• Testing in Design Thinking step by step:

1. Before: You have chosen an idea & a prototype. You have developed
the persona and the main need in the synthesis. Prepare the test
well: What kind of information do the test person need? How much
time do you have? Select a suitable method for testing: presentation,
observation, A / B tests or „thinking out loud“. Look for the right
people to test your prototype. In the best case, these people could
also be future users of your idea. Otherwise, colleagues and friends
will do.
 1.8 Testing (Cont.)
2. Execution of the test.

3. Collect feedback: Let the test person do the talking. Ask open
questions to find out their wishes, critique, emotions and new ideas.

4. Reflection: Meet with your team, evaluate the feedback and make
decisions. What should we improve on the product? Should we
collect new ideas again? Do we prefer to develop a new prototype?
 1.8 Testing (Cont.)
5. Iteration: This is where the new design thinking process begins. The
feedback should be the starting point. Consider which stage you
should start from.
1.8 Testing (Cont.)
 Summary
• Ideation refers to the process of developing and conveying prescriptive
ideas to others, typically in a business setting.

• Business Ideation process consists of 3 stages: Analyze your idea,

demand, and Skills and dependencies.
Thank You