Generating Ideas:

Group 2
 of Ideas for Entrepreneurial Ventures
A NUMBER OF PRACTICING ENTREPRENEURS AND
BUSINESS COACHES HAVE IDENTIFIED A HOST OF
SOURCES, FROM WHICH WE CAN FIND BUSINESS
IDEAS.

THESE CAN BE CATEGORIZED INTO FOUR MAJOR

SOURCES:
A. FROM THE PRODUCT
B. FROM THE PROCESS
C. FROM THE PERSON
D. FROM RELATIONSHIPS
 4 MAJOR SOURCES:
01 FROM EXISTING
03 FROM THE PERSON
. PRODUCTS OR .
SERVICES The individual examines their interest, hobbies, skills, dreams and even
Many entrepreneurs have introduced new travels. Aside from providing ideas for entrepreneurial venture, personal
products and services by differentiating interest can sustain a business venture at its initial stage of operation.
them from those currently in the market.
You can differentiate it a product by its In addition, skills learned from prior employment can be source of
shape, size, color, and contents business ideas as shown in several studies

02 FROM THE PROCESS 04 FROM RELATIONS

. Business ideas can likewise
arise from the process of
. Friends and classmates can also be
sources of business ideas and
production and distribution partners.
 METHODS FOR
GENERATING OR
TESTING NEW
IDEAS
GENERATING BUSINES
IDEAS THROUGH
LOGICAL THINKING
Logical thinking refers to the systematic and
rational way of provifing an answer to a question.
Systematic – follow steps in responding to an
inquiry
Rational – adheres to the rules of logic in
connecting the relationships of variable and in
making conclusions.

Methods that use systematic analysis in generating

new ideas are: —SOMEONE
• Statistical analysis FAMOUS
• Market analysis
• SWOT analysis
• Delphi technique
Statistical analysis
- Refers to a systematic analysis of data
generated from a survey of individuals.
- Also give basic information on the
population being studied and used for
hypothesis testing on difference of values of
certain variables.
- Can describe the trend in the demand for a —SOMEONE
particular product, as well as show which
key socioeconomic variables can FAMOUS
significantly influence change in the
demand for a product
 Market Analysis
- Is undertaken to know the various factors that affect the demand
for a particular product or service
- Also determine how certain socioeconomic and demographic
groups will react to the introduction of a new commodity or a
change in existing products or services

Can be done through surveys, interviews with key informants, and

focus group discussion

Expensive and
time consuming
That are
knowledgeable of Can elicit the —SOMEONE
the market are same general
undertaken trends that would FAMOUS
likely appear in a
detailed
questionnaire.
SWOT ( strengths, weaknesses, opportunities, threats)
analysis
- Usually undertaken to describe the state of competition
within an industry.
- Can also provide business ideas that an entrepreneur can
pursue
Delphi technique
- Is the systematic way of generating ideas from a select
group of individuals using rounds of consultations or
sessions. —SOMEONE
In the first round, the group is asked to list several response to a FAMOUS
given question.
Delphi technique
- Is the systematic way of generating ideas from a select group of
individuals using rounds of consultations or sessions.

In the first round, the group is asked to list several response to a given question.

After the leading responses are given back to the respondents in the next round.

The respondents are then asked to list a shorter number of answers on the same question
based on the leading responses in the previous round
—SOMEONE
In succeeding rounds, the leading responses are further listed and given to the respondents
until the final two or three answers are determined.
FAMOUS
GENERATING BUSINESS
features
IDEAS THROUGH
CREATIVE THINKING
Creative Thinking
- Creativity refers to thought processes that do not
follow systematic or analytical procedures. It uses
lateral thinking, which connects ideas and reprocesses
them to formulate new ideas.
- Creativity puts emphasis on the role of imagination
and inspiration.

Methods that use creative thinking in identifying business

ideas are:
● Brainstorming
● Problem inventory analysis
● Free association method
● Checklist method
Brainstorming
- Refers to an unstructured discussion of a group to
elicit ideas.
- After a fixed period of discussion, the various ideas
are processed and synthetized to come out with an
answer to the question.
Problem inventory analysis
- Is similar to brainstorming. It uses the group
discussion method to elicit ideas from
participants.
- It is directed to identifying all possible problems
encountered with a specific product or service.
- At the end of the discussion the participants are
tasked to give alternative solutions to the
problems
Free association method
- A method that has been used in psychology to elicit
the unconscious thoughts of individuals by expressing
their thoughts associated with words and ideas given
by the therapist.
- From this process the group can come out with an idea
or set of ideas that can be basis for business ventures.
Checklist method
- Another creative way of obtaining business ideas from
target participants by listing all possibilities that can be
connected to, reprocessed, and associated with.

A specific checklist method developed by Alex Osborn is

known as SCAMPER (Substitute, Combine, Adapt,
Magnify, Put to other use, Eliminate, and Rearrange)
- In this method the participants are presented with a
product or service or an idea and are asked to provide
a comprehensive list of how the product or service or
idea can be replaced, mixed, differentiated, enlarged,
applied, removed and altered.
GENERATING BUSINESS
IDEAS THROUGH TRENDS IN
BUSINESS ENVIRONMENT
THEORY
LESSON
Some of the methodologies used include Porter’s Five Forces of competition, SWOT analysis, and
environmental scanning. These methods like market analysis, discussion, and delphi technique are
instense in the use of logical and systematic analysis.

Porter's Five Forces Framework  Five Forces analysis can be used to

guide business strategy to increase competitive advantage.

Environmental Scanning involves reviewing external

sources and factors that impact the internal operations
of a business.
Based on the trends on the business environment an entrepreneur can get ideas from:

• The bargaining powers of its competitors and suppliers

• Major shifts in government involvement in business
• Sociodemographic changes
• Technological developments
One possible business idea is to lower the selling price. From the theory of
demand, consumers are encouraged to demand more of a product if its price is
lower than its competitors

Another alternative is to differentiate its product from existing product lines in

industry. Product differentiate can alter the shape, contents, and package of a
product to create a brand that would establish loyalty from its customers.

The suppliers of major inputs can also provide business ideas to potential
entrepreneurs.

Changes in government regulation can also provide impetus foe new products
or services.
Sociodemographic changes including smaller homes
and living spaces can provide opportunities for
producers of consumer durable to produce smaller
appliances and furniture.

Pollution in highly urbanized areas encourage

manufacturers to make air conditioner that can serve as
air purifiers as well.
Creativity: A New
Way of Looking at
Things
Creativity: A New Way of Looking at Things
There are many ways of connecting these ideas. It can be done by
comparing them, linking them, looking at similarities and differences
and looking for trends.
You can differentiate any good or service depending on your
creativity.
Some creativity coaches have recommended several measures to improve
someone e’s creativity.
• Foremost is the quest to learn from a variety of sources on things that
may interest the individual .
• There is also need for a place and time for individual to think, reflect,
meditate, or even dream.
• Make sure you have a notebook or a handy computer so you can write
down the ideas
• Avoid editing or rejecting any idea.
• An individual’s stock knowledge can be a useful reference in the process
of linking ideas.
 Factors That Influence Creativity

Problem Solving Factors Motivational Factors Situational Factors Organizational Factors

Beyond personal factors,

A creative person is someone A creative individuyal is A creative person thrives in an
the creativity of individuals
who wants to provide an ussually a highly environment that is nurturing
is manifested when they are
answer to a problem. motiocated person. and not threatening.
confronted with concrete
The ability to solve problems, Thus, a motivated person situation. Creative persons are also
inturn, is influenced by the plans ahead and more encouraged when the work place
A creative person is an
knowleddge of the individual, importantly is willing to does not focus on rules but on
action person since he
the extent of his experience, take risk. outputs
knows how to implement
and his leevl of education. his plan
Creative Problem Solving
Creative problem solving (CPS) is a procedure of answering a problem
with mechanisms and techniques incorporating creativity.
Scienyific method is also a procedure in answering a problem with the
use of rational thinking
One procedure of creative problem solving is the one developed by
Sidney Parnes and Alex Osborn (1950). It is defferentiated from other
CPS since it uses divergent thinking processes and convergent thinking
mechanisms in various stages of seeking a solution.
Six steps that are followed in Osborn-
Parnes model:
1. Setting the objective: this involves the identification of an objective that an
individual wishes to achieve. This stage can become cumbersome since the
individual has to differentiate an objective from a variety of goals, challenges,
issues, and problems. Such differentiate may involve creative processes.
2. Revisiting the objective: this stage involves the search for studies, reports, analyses,
and papers related to the objective set. It can involve interviews with key informants
and experts on the field on significance of the objective and its relevance. This stage
may also know which part of the objective still needs to be pursued.
3. Identifying the problem: this process involved divergent thinking processes in
seeking the possible issues, challenges, problems that may emerge from the
objective set. Once the possible problems, challenges, and issues have been
identified, the convergent process of evaluating the options can provide the
individual a single problem to solved.
Six steps that are followed in Osborn-
Parnes model:
4. Looking for a solution: once the problem has been identified, another
series of divergent thinking of generating ideas for the solution of the
problem is needed.
5. Selecting a solution: once enough options are given from the divergent
thinking process, a convergent evaluation process of weighing the
significance, relevance, nd feasibility of these options is undertaken
6. Accepting the solution: in our chosen problem, we have selected a
solution.
END.