Hisrich Entrepreneurship Ch4 PDF

Because learning changes everything.® Section 2: From Idea to the Opportunity Chapter 4: Creativity and the Business Idea © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. ...

Because learning changes everything.® Section 2: From Idea to the Opportunity Chapter 4: Creativity and the Business Idea © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Trends trends yalli darjin bi wafro foras 7atta nbalesh mashrou3 jdid khososi at start of trend that take a long time Trends provide opportunities for starting a new venture, particularly when at the start of a long-lasting trend. fi 3enna seven trends wearable kel shi 3m yettla3 fina nelbaso , bi ma inoo cost w size te3ol microprosesors 3m t5ef sar fina n7n ntawer devices fihon microprocesors w bi sa3dona bi ktir activities Wearable trend: As the cost and size of microprocessors continue to shrink, the ability of carrying computers to monitor and record activity and display relevant information continues to increase in capability. hiyi wake3 mo3azaz Broadly speaking, the wearable tech industry includes categories such as augmented reality (google glass),hole body monitoring (Fitbit) and point of view (GoPro). kel shi helpn ralated distance walk small cameras bi 5alona nsawer high quality data heart rate calories burn Green trend: the green sector continues to provide inspiration for entrepreneurs heart rate kel hayda l kita3 fi ktir oppurtunities lal entreprenuers around the world. Business interest in this area includes energy efficiency and storage, software, e-commerce and electronic components. Also popular are hybrid energy storage approaches designed to stabilize demand on an energy grid such as what is being implemented in Braderup, Germay where citizens can sell excess electricity into the grid during peak demand when prices are higher. The payments industry: money, and the way we manage and exchange it , continues to be an industry undergoing massive transformation. This industry includes services for lending money to products that allows anyone to accept credit cards , as well as billing and accounting services. kel shi elo 3ala2a ino bi credits cards © McGraw Hill LLC 2  Trends Maker trend: in May 2014, Disney announced that it would buy Maker studios, series of YouTube channels dedicated to independent inventors , designers and tinkerers for 1 billion $. Maker studios and other outlets like Etsy are part of the growing DIY ecosystem , which is empowering individuals to become makers instead of just consumers. Mobile trend: the mobile phone continues to revolutionize the way individuals make contact, make purchases, and interact with each other. Health trend: health maintenance and concerns about health care provisions together are one of the biggest trends today that will continue in the next decade as the world population continues to age. someone said Internet of things/Smart devices: the potential for nearly everything we interact with to be connected to the internet has given rise to new products that people never imagined could benefit from having an embedded Wifi transmitter. Internet connectivity such as lights and thermostats are part of this new trend of “smart devices”. © McGraw Hill LLC 3  mn wen hole bi jibo afkar te3olon Sources of New Ideas Some of the most fruitful sources of ideas include: Consumers: Potential nascent entrepreneurs should always pay close attention to potential customers. This can take the form of informally monitoring potential ideas and needs or formally arranging for consumers to have an opportunity to express their opinions. Existing products or services: Potential entrepreneurs should also establish a method for monitoring and evaluating competitive products/ services on the market. Distribution channels: Members of the distribution channels are also good sources for new ideas reflecting their familiarity with the needs of the market. The Federal Government: The Federal government can also be a source of new product ideas in two ways. First, the files of the Patent Office contain numerous new product possibilities. Although the patents themselves may not be feasible, they can frequently suggest other more feasible product ideas. thryy are not confidential hini bynshrohon 7ata ; wahad yekhod afkar bs msh detailed explanation Second, new product ideas can evolve in response to government regulations. The occupational safety and health act (OSHA)mandated that first-aid kits be available in business establishments employing more than 3 people. To assist business establishments in meeting this new regulation, a company was found to assemble and distribute the kits containing the specific items needed for the company and the industry. Research and development: The largest source of new ideas is the entrepreneur’s own “research and development’ efforts, which may be a formal endeavor connected with current employment or an informal one in a basement or a garage. © McGraw Hill LLC 4 Methods of Generating Ideas: focus groups, brainstorming, brainwriting and problem inventory analysis A focus group is controlled by a moderator leading a group in an open, in- depth discussion. For a new product area, the moderator focuses the discussion of the group in either a directive or nondirective manner.The group of frequently 8 to 14 participants is stimulated by comments from each other in creatively conceptualizing and developing a new product/service. Also excellent for initial screening of ideas and concepts. Brainstorming method stimulates individuals to be creative by meeting with others and participating in an organized group experience. It allows greater creativity in a group exercise. When using brainstorming, 4 rules should be followed: - No criticism is allowed by anyone in the group- no negative commentsma byesma7o bil inti2ad 7atta yetla3o bi usefull ideas - freewheeling is encouraged , the wilder the idea, the better - quantity of ideas is desired- the greater the number of ideas, the greater the likelihood of the emergence of useful ideas. - Combinations and improvements of ideas are encouraged; ideas of others can be used to produce still another new idea. msh atoul bi twaselni la new idea kad eh w kad la Brainstorming sessions should be fun with no domination or inhibition. © McGraw Hill LLC 5  Methods of Generating Ideas Brainwriting is a written form of brainstorming. It differs from classical brainstorming by giving participants more time to think than in a brainstorming session, where the ideas are expressed spontaneously. Brainwriting is silent, written generation of ideas by a group of individuals. The participants write their ideas on special forms or cards that circulate within the group, which usually consists of 6 members. Each group member generates and writes down three ideas during a five-minute period. The form is then passed on to the adjacent individual, who writes down three new ideas, this process continues until each form has passed all participants. A leader monitors the time intervals and can reduce or lengthen the time given to participants depending on the needs of the group. Participants can also be spread geographically with the sheets rotated electronically. This gives participants more time to think than brainstorming. Problem inventory analysis is similar to a focus group but members focus on product problems rather than new ideas. Problem inventory analysis uses individuals in a manner analogous to focus groups to generate new product ideas. However, instead of generating new ideas themselves, consumers in the group are provided with a list of problems in a general product category. They are then asked to identify and discuss products in this category that have the particular problem. Evaluation is necessary as results may not reflect an opportunity. © McGraw Hill LLC 6  Creative problem-solving techniques techniques to solve problems creative prooblem solving texhniques. creativity decrease with age m3 3elem 2w msln m3m neshti8il bi majal elo 3ala2a bs it can be unlocked mn khilal steps jayin Creativity can be unlocked by using any of the following creative problem-solving techniques: Brainstorming: Brainstorming is the most widely used technique for both creative problem solving as well as idea generation. In creative problem-solving, brainstorming can generate ideas about a problem within a short time frame through the spontaneous contributions of participants. (no experts) hiyi shi unstructured proccces to manna 3amaliyi ktir monazami bs fiha kam sha8le generate ideas Reverse brainstorming is similar but allows criticism. The process usually involves the identification of everything wrong with an idea , following by a discussion of ways to overcome these problems. Since the focus is on the negative aspects of a product, service, or idea, care needs to be taken to maintain the group’s morale. The Gordon method slowly reveals the problem to a suggestion group. The Gordon method, unlike most other creative problem-solving techniques, begins with group members not knowing the exact nature of the problem. This ensures that the solution is not clouded by preconceived ideas and behavioral patterns. The entrepreneur starts by mentioning a general concept associated with the problem. The group responds by expressing a number of ideas. Then a concept is developed, followed by the development of related concepts, through guidance by the moderators. The actual problem is then revealed, enabling the group to make suggestions for implementation or refinement of the final solution. The checklist method guides the new idea process. In the Checklist method , a new idea is developed through a list of related issues or suggestions. © McGraw Hill LLC 7  Creative problem-solving techniques Free association simply creates a chain of ideas. The Free association technique is particularly helpful in developing an entirely new slant to a problem. First, a word or phrase related to the problem is written down, then another and another, with each new word attempting to add something new to the ongoing thought processes. This process should create a chain of ideas ending with a new product/service idea emerging. Forced relationships is the process of forcing relationships among some product combinations. It is a technique that asks questions about objects or ideas in an effort to develop a new idea. The new combination and eventual concept is developed through a five-step process: - Isolate the elements of the problem; by3zlo elements - Find the relationships between these elements; - Record the relationships in an orderly form; bi sajlo l 3ala2at bi tari2a monazima - Analyze the resulting relationships to find ideas or patterns. analyze the relation to get new idea see p10 Develop new ideas from these patterns. In the collective notebook method, a small notebook that easily fits in a pocket- containing a statement of the problem- blank pages, and any pertinent background data- is distributed to the participants. Participants consider the problem and its possible solutions, recording ideas at least once, but preferably three times, a day. At the end of a week, a list of the best ideas is developed, along with any suggestions. The collective notebook method asks for written suggestions © McGraw Hill LLC 8  Creative problem-solving techniques Attribute listing is an idea-finding technique that has the entrepreneur list the attributes of an item or problem and then look at each from a variety of viewpoints. Attribute-listing looks at problem attributes from various viewpoints The Big dream approach refers to coming up with a new idea from the entrepreneur dreaming about the problem and its solution; the entrepreneur should think big in this dream. Every possibility should be recorded and investigated without considering any negatives involved or the resources required. Ideas should be conceptualized without any constraints until an idea is developed into a workable form. The big-dream approach asks the entrepreneur to think big Parameter analysis involves two aspects: parameter identification and creative synthesis. The first step involves analyzing variables in the situation to determine their relative importance. These variables become the focus of the investigation, with other variables being set aside. After the primary issues have been identified, the relationships between parameters that describe the underlying issues are examined. Through an evaluation of the parameters and relationships, one or more solutions are developed; this solution development is called creative synthesis Parameter analysis involves parameters and creative synthesis. © McGraw Hill LLC 9  Table 4.4: Illustration of Forced Relationship Technique wara2 w sabon not related tala3na relation ships baynaton hiyi word relation ship l2n elemets ma darora ykon fi baynaton 3ala2a Elements: Paper and Soap Forms Relationship/Combination Idea/Pattern Adjective Papery soap Flakes Soapy paper Wash and dry travel aid kel shi la ghasil 2w tajfif bi safar Noun Paper soaps Tough paper impregnated with soap and usable for washing surfaces msln wara2 m8ams bi sabon la neghsol astoh Verb-correlates Soaped papers Booklets of soap leaves kotayeb fi wara2 mtl sabon Soap “wets” paper In coating and impregnation processes kel shi elo 3ala2a bi tila2 Soap “cleans” paper Suggests wallpaper cleaner ashya bi tnadef jodran Source: Souder, William E. and Ziegler, Robert W., “A Review of Creativity and Problem-Solving Techniques,” Research Management, July, 1975, 37. © McGraw Hill LLC 10  Figure 4.1: Illustration of Parameter Analysis mnshof needs bil market bshof important variable msln weight pof car w effecincy w battery w bna22e aham shi w bsir la2e relation ships bayna w bein l bay2in w mnsawi improvement w bytla3 m3na invention that meets the need ha2e2 product hot relation ships Access the text alternative for slide images. Source: The procedure for parameter analysis is thoroughly discussed in Li, Yao Tzu, et al, Technological Innovation in Education and Industry, New York: Reinhold, 1980, 26–49, 277–86. © McGraw Hill LLC 11  Innovation innovation hiyi ibtikar key to economic development to any company Innovation is key to economic development of any company. Innovation is typed based on the uniqueness of the idea. Breakthrough innovations are unique and often establish the platform on which future innovations are developed—the airplane. Given that they are often the basis for further innovation in an area, these innovations are usually protected by strong patents, trade secrets, and/or copyrights. Technological innovations occur more frequently than breakthrough innovations and in general are not at the same level of scientific discovery and advancement. Nonetheless, they offer advancements in the product/market area—the jet airplane. Ordinary innovations occur most frequently and usually extend a product into a better product—Spanx footless pantyhose. These innovations usually come from market analysis and pull, not technology push. © McGraw Hill LLC 12  Figure 4.2: Innovation Chart ma ktir bi tsir Access the text alternative for slide images. © McGraw Hill LLC 13  Defining a New Innovation (Product/Service) new product may be classified from view point even of consumer or the firm ye3ni lama badi ahki 3n shi new ya imma mn wejhit nazar consumer 2w mn wejhit nazar l firm so fi ashya kad tkon me5tlfi bein firm w costumor Entrepreneurs must define a new product or what about their product is new and unique. kel entrepreenur bado y2oul shu shi l jdeed bil product te3o iza consumer shafo inique Uniqueness may be in the consumer concept. The change may be in the product itself. change ma be in product in itself The product may be repackaged. The product may have only minor improvements. kad ykon ta3dil basit The product may simply be similar to a competitor’s product. talla3na w 8ayarna w 3mlna shi arib lal compatitors © McGraw Hill LLC 14  Classification of New Products fi 3enna kaza no3 mn inovation hole l anwa3 kad y2asro 3a adde n7na bi haje net3alamon w adde 7a y8ayro bil consumer pattern see anmat shira2iyi bi sbb innovation Consumers may look at how much behavioral change or learning is required to use a new product. mostamira w motawasila ma badon n7na net3alam shi jdid 2w n8ayer bi solokna shira2i Continuous innovations require no new learning or behavior change. hole bi nos hini dynamic aktr so require some learning Dynamically continuous innovations require some relearning. ma metwaslin m3 li abel and require learning Discontinuous innovations are truly new and require much learning. sharikat bi tshof l 3onsor jdid bi ayya shi mn khilal 2 factors : technology 2w market yalli 3m nazel product Firms may view newness by differences in the technology used or the market served. mn no change la shi ktir jdid Changes in technology may range from no change to brand new. mn lama asht8el bi market la 7ata sir bi market jdeed Changes in markets range from the same market to a new market. ta32id shi 3ade bi zid bs yet8ayaro hole factors m3 b3d Complexity increases with changes in both dimensions. © McGraw Hill LLC 15 important Figure 4.3: Continuums for Classifying New Products hiyi 3nda akal ta2sir 3ala bdna nefhama shway anmat l mostahlikn w influnce te3ola wasaat hiyi ma bi t2aser 3a solookna 3a 3adat mostahlikin hayda ktiir jdidi w requires relearning w 3adatna l itihlakiyi ihaydi mn kon n7na 3mlna shi kyir disruptive w 8ayarna 3adat mostahlikin mn kon 3m nhot shi ktiir new Access the text alternative for slide images. Adapted from Robertson, Thomas, “The Process of Innovation and the Diffusion of Innovation,” Journal of Marketing, January, 1967, 14–19 with permission from American Marketing Association. © McGraw Hill LLC 16  Figure 4.4: New Product/Service Classification System read Access the text alternative for slide images. © McGraw Hill LLC 17  Opportunity Recognition shu l 3awamelli 3nd l entreprenuer li bi sa3do yktishif opportunities li bil enviroment hawale Some entrepreneurs can recognize a business opportunity which is fundamental to the entrepreneurial process. msh kel rowad a3mal fihon yl2to forsa The keys to recognizing an opportunity lie in the knowledge and experience of the individual entrepreneur. Other important factors are entrepreneurial alertness and entrepreneurial networks. adde yakez w adde 3ndo networks A good method for assessing each new idea is using an opportunity assessment plan. tari2a hata sawi evaluation la ayya shi jdid hiyi hiyi oppurtonity assesment plan entreprenuer should be able to asses all new ideas ana innovative oppurtinities © McGraw Hill LLC 18 Figure 4.5: A Model of the Opportunity Recognition Process bkon anjah ino la2e l forsa personal and work Access the text alternative for slide images. Source: Ardichvili, Alexander, & Cardozo, Richard N., “A Model of the Entrepreneurial Opportunity Recognition Process,” Journal of Enterprising Culture, vol. 8, no.2, June, 2000, 103–119. © McGraw Hill LLC 19  Product Planning and Development Process bdna n3ml evaluation abel ma ntawira entereprenur bado ykon able to assest the new idea refined ye3ni btnfaraz l afkar Ideas are refined through the production planning and development process, divided into five major stages. bi proccwes m3ayani This process results in the start of the product life cycle. natijo te3it procccess criteria bado ykon open w shamel w maftou7 w quantitaative b2dar 2iso measurable Evaluation criteria must be all inclusive and quantitative. ykon fi forssa bi sou2 w talab mola2em A market opportunity and adequate market demand should must exist. Evaluate current competing producers, prices, and policies for impact on market share. ma fini nazel shi mn ma shof compatitor w as3ar bi sou2 ma fini nazel pro jdid w capabilities te3oli bi shi teni ma khaso New products should have synergy with existing capabilities. product should give me superior financila performance New products should support and contribute to financial well-being. tana8om m3 l m3adat l mawjodin w mwazfin. mwazafin badi ykono by3rfo ysta3mlo Evaluate compatibility with existing machinery and personnel. Evaluate an idea throughout its evolution. la hatta nshof tataworat © McGraw Hill LLC 20 Figure 4.6: The Product Planning and Development Process 5 stages tawer montaj hayda product cycle taswi2 w nazalto bi shakel ktir kbir bi balsho ywaz3o bi sou2 mahdoud k2n 3m y3ml test w hone b2dar a3rf adde hone wesel lal fini bi3 peak te3o w fato compatitors hone bynzalo sale iza ma 3mlna innovation bhal marhali mo2abalat bi rou product saales ktir tekbar w yiji positive feedbacks evalute sales fekra bsawi takyim laa sou2 hal costumor s ha y2lbo w yeshtro product Access the text alternative for slide images. Source: Hisrich, Robert, Marketing Decisions for New and Mature Products, 2nd edition. Upper Saddle River, NJ: Pearson Education, 1991. © McGraw Hill LLC 21  Five Stages of Production Development important life cycle Idea Stage. product n7na wa3din nkafe fihon Identify promising new products and eliminate impractical ones. bshof shu products momkin tkon 3ndi w eliminate non practical ones bshof l haji w 2imto w mn khilal use of systemic evaluation market check list Determine the need for the product and its value to the company. Use of the systematic market evaluation checklist la hata shof feedback msln ana bady sawi watch metawra fa balesh hot l ideas li kad yetla3o 3ndi fa mn3ml brain storming w byiji team bytla3li bi new ideas i defined idea msln byiji hada bi oul bdna watch that detects fitness and health fa bshofo inexpensive fa bkarer ino badi kaffi fiha Concept Stage. byrj3 byijni fekraa ino badi dakhel AI ww bshof ha shi not expensive fa b2oul okay reje3 hada 2alli tkon 3d fa baji bsawi evaluation bla2iha expensive 2w technoogy b3da ma mjaahazi fa ana hone bs bna2e ashya manti2iyi The refined idea is tested to determine customer acceptance. bsawila test la shof radet fe3el mostahlikin w b3ml mo2abalat w hiwarat la shof feed back ana sabatet ino watch w fiha al w health detectio w mnsawi interviewa 7ata nshof feedback Use of conversational interviews Product Development. bs ekhod + feed baack btawer product hone badi balesh tawer haydi watch w bi siro ysawo prototypes w bi waz3o samples 3a nes sar 3enna protoypes Consumer reaction to the physical product is determined. 3rfnna ino kel shi tmm One tool frequently used is the consumer panel, in which a group of potential customers is given product samples. hone ana btawer montaj w bwaze3 sample 3al costumors 7ata yshofo pros and cons of it Test Marketing Stage. bbalesh sawe2 bi range dayye2 company releases in small market hole early uses by3to information w mn ha data fihon y3mlo improvement in selected markets Provides sales results, which indicate customer acceptance level. hine bayyan kel shi tmm fa bwase3 l product Commercialization. © McGraw Hill LLC 22  E-Commerce and Business Start-Up sharikat bein b3d E-commerce sales continue to increase in both the business-to-business and the business-to-consumer markets. montij la mostahlek An entrepreneur has 3 basic options when it comes to managing an e-commerce site: Use full in-sourcing, full outsourcing, or a hybrid approach. kifo bado ydiro (modir l entreprenuer) Full in-sourcing: entre matloub ykon 3aref abel ma y3ml idara 32a shi 3al internet bado y3rf sho l activity daroiyin front w back wahad fat ayya shi user bi shofo howi front Front – End activities: everything that that the customer sees and interacts with including User Experience (UX) and User Interface (UI) activities (shopping cart, customer support channels..) w mtl live web chat systems ye3ni l wajiha kel shi 3a screen kel shi behind seen Back – End activities: IT Infrastructure (service, site security, hosting), analytic tools, payment processing, order tracking, fulfillment and Inventory Management..) kif bi sir order kif basht8el m3 ditributors Full outsourcing: The entrepreneur elects to have one or more firms handle all front end and back end activities and simply provides the firm that manages their site with updated product description and pricing information. Hybrid Approach Third-party firms specialize in managing one or more of every front end and back end activity, but they must be seamless. © McGraw Hill LLC 23  E-Commerce and Business Start-Up E-commerce channels include websites and apps. mn shen bi3 Consider optimizing your website for display on a mobile device. ykon 3ndak app khas fik Or have your own dedicated app. in developing i need to think about the audience min mestahdef ana 1- websites website 3ade guidelines 2- dedicated mobile optimized websites (cut features, cut content, enlarge interface elements) website bs khsousi lal ajhizil mahmouli (phones) w nature of device msh mtl website 3ade\ wajhit telephone zghiri w conection 3a telephone bi tkon slower 3- dedicated mobile apps : mobile apps are computer programs developed for smartphones that can be downloaded from an online store of the company who owns the mobile operating system. 3 benefits: streamlined customer experience, new methods of engaging different audiences and general visibility. Online operations have to be cost effective, easy to use, and secure. bi wafro © McGraw Hill LLC 24  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.