Venture Creation - Week 3 PDF

Presentation 2024 01 02 03 04 05 06 07 1.Develop a business plan. 2.Acquire finances 3.Meet legal requirements (ownership, registration, intellectual property right, etc) Using the items below (a metal hanger and a plastic bottle of coke) write a list of things you can use or create using e...

Presentation 2024 01 02 03 04 05 06 07 1.Develop a business plan. 2.Acquire finances 3.Meet legal requirements (ownership, registration, intellectual property right, etc) Using the items below (a metal hanger and a plastic bottle of coke) write a list of things you can use or create using each item. The team with the longest list will be the winners of this challenge. To take a free creativity test click the link below http://www.testmycreativity.com/ The interaction between aptitude, process and environment by which an individual or group produces a perceptible product that is both novel and useful as defined within a social context. Organizational creativity is considered as a function of the creative outputs of its constituents and contextual effects such as organizational culture, rewards and resources. A creative organization is characterized as any business entity whose main source of income comes from the production of novel and appropriate ideas, processes, products or services to tackle client’s problems or opportunities identified. Individual Level: It is associated with being artistic and the ability to produce new ideas and solve problems. Societal Level: Associated with new inventions, new social programs and scientific findings. Steve Jobs defines creativity as the ability to connect experiences and synthesize them to new things. -Being creative does not necessarily mean the product will be a radically invention it can be a simple idea of changing the way things are done or by simply improving the benefits of a certain product. -Having the experience of using a certain product nurtures the creative thinking of how that product can be improved. –Creativity is vital at all stages of a product. 1. Information: This is 2. Incubation: Generating 3. Illumination: gathering of information, ideas to solve an identified Generation of solutions through observation and problem, this would using the ideas which perception, to identify the involve a lot of convergent were generated in stage problem and try to find thinking. two, here divergent ways of solving them. thinking is used. 4. Verification: All ideas 5. Communication: Here 6. Validation: This is more and solution are evaluated experts are consulted to like pilot testing or market in terms of how realistic give their opinion or testing of the idea. It and novel they are, which assess the idea. Experts involves societal resources would be will give feedback to evaluation. needed to attain them. enable the entrepreneur to refine the idea. Convergent Thinking Divergent Thinking -It can be referred to as reasoning -Also known as creative, or rational thinking. imaginative or original thinking. -It is rigid, methodical or -It yields several responses and stereotyped options -It uses facts -There is no single answer to a -It has a single correct answer problem, various methods can be In terms of problem solving, it used. tends to follow a repetitive pattern -It is trait for creative people. or by using a known method. -It is measured by creativity tests, -It is measured by intelligence tests thus novelty of ideas, originality such as numerical reasoning and and flexibility. financial reasoning. -SCAMPER -Random input: Development of words, pictures or images using random methods. -Problem reversal: Seeing a problem in the reverse form, analysing what everybody else is not doing -Association technique: Linking or associating unrelated concepts. -Discontinuity principle: Breaking away from the norm, doing thing differently. -SCAMPER Substitute: Find part of your concept, product or process that you can replace for enhanced results. Combine: How can you combine different ideas. Adapt: Being aware of external factors and adapting to them. Modify: What can be done to improve the value of the product? Put to other use: Ways of using the product than the initial intended use or current use. Eliminate: Getting rid of waste processes. Reverse: Might lead to more ideas when you re-arrange/reverse the current product/service. -Problem reversal is a good and easy process for improving products and services. -It is used by asking the exact opposite of the question intended to be asked and use the result appropriately. -How do we make sure that fewer people take the car to their work?’. Swapping the key words, you could rephrase this challenge as -‘How do we make sure that fewer cars take people to their work?’ Association technique Discontinuity Ideas can be generated from: -brainstorming, -coming up with better ways of doing things, -finding ways of converting hobbies into entrepreneurial activities, -recycling and reusing of products, -adopting new technologies etc. Creativity plays a critical role in idea generation, thus entrepreneurs ought to be creative to come up with new ideas which could be transformed into business opportunities. In terms of intrapreneurship organisations normally allows employees to have brainstorming sessions as well as allow them to communicate their ideas. Research is also another form of generating new ideas, thus it allows an aspiring entrepreneur to understand the market needs, the supply and demand for a particular product or service. -Scientist come up with new ideas as a result of constant research. -The availability of resources is also a source of idea generation, for example if there is availability of reed people living in that particular area might come up with ideas of basket weaving. After idea generation the best idea that can be profitable is selected. The following are considered in idea selection; Compatibility: Is the idea compatible with the interests and skills of the entrepreneur? Resources: What resources are needed to explore that particular idea, is it easy to acquire all those resources? Costs: Is it something that is affordable? External environmental factors: Consider cultural aspects, political factors, demographics, etc. Regulations: Are there policies in place creating a conducive environment for that particular idea to be explored? These will include trade policies, export policies, exchange rates, etc. -A crucial step in the process of business set up. -It is about how realistic, how viable and how possible it is to implement the idea. -The entrepreneur ought to be aware of the external environment. -It is all about establishing whether the idea/opportunity is worth pursuing or not. Industry/market feasibility analysis is an assessment of the overall appeal of the market for the product or service being proposed. For feasibility analysis, there are three primary issues that a proposed business should consider: 1.Industry attractiveness; 2.Market timeliness; 3.Identification of a niche market. An industry that is growing more attractive means it is receptive to new firm entrants and new product introductions. In general, the most attractive industries are characterised as the following: -Being large and growing (growth more important than size: the number of firms in the industry). -Sell products/services that customers must have. -Being fairly young and early in PLC (product life cycle) as price competition is not so intense. -Not being crowded. The factors to consider vary, depending on whether a prospective business is planning to introduce a breakthrough new product or service or one that is an improvement on those currently available. For a new business that are developing potentially breakthrough product or service, the issue is whether to try to capture a first-mover advantage is vitally important. If the product or service is an improvement on those already available in the marketplace the following must be considered: 1. Is the window of opportunity for the product or service open or closed. 2. Study the economics of the marketplace to determine the current dynamics of the industry and if the timing for a new business is good. A niche market is a place within a larger market segment that represents a narrower group of customers with similar interests. Most successful entrepreneurial firms do not start by selling to broad markets. The challenge in identifying an attractive niche market is that it must be large enough to support a proposed business yet small enough to avoid initial direct head-to-head competition with industry leaders. If a clearly defined niche cannot be identified, it is difficult to envision the industry/market feasibility of a new venture. Parameter Analysis result Core competencies Competition intensity Cost SWOT Market size Human resources and other resources