Innovation, Idea generation and evaluation (edited)

ENTREPRENEURSHIPIDEA GENERATION & EVALUATION

CONTENTS

• INVENTION AND INNOVATION

• TYPES OF INNOVATION

• SOURCES OF INNOVATIVE OPPORTUNITIES

• PRINCIPLES OF SUCCESFUL INNOVATION

• “SCAMPER”- A METHOD FOR IDEA GENERATION

• EVALUATING A BUINESS IDEA

The difference between Invention and Innovation

• Invention - is the creation of new products, processes, and technologies not previously known to exist.

• Innovation - is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society through improved products, technology, or services.

The difference between Invention and Innovation

DISCOVERY/INVENTION• X-RAY• LIGHT-SENSITIVITY OF

SILVER COMPOUNDS• SEMI-CONDUCTORS• STORAGE OF DATA ON

MAGNETIC SURFACES• LASERS• E=MC^2

INNOVATION• MEDICAL X-RAY• PHOTOGRAPHY& CAMERA• RADIO• MAGNETIC TAPE , CASSETTES & DISKETTES• CDs , DVDs• NUCLEAR POWER

The difference between Invention and Innovation

In a market driven economy, the real winner is the company that can make something valuable through

innovation – not the inventor who happens to come up with

something that THE MARKET may or may not want.

Innovation happens when you figure out how to make money from an invention.

Necessity is the mother of Invention Profit motive and Creativity are the parents of

Innovation!

SCHUMPETER’STYPES OF INNOVATION

• Source of supply,• Technology, • Commodity (Product), • Markets,• Type of organization

NEW

Drucker’s Seven Sources

for Innovative Opportunities

1. The Unexpected2. The Incongruity 3. Innovation based on process need 4. Changes in industry or market Structure5. Demographics 6. Changes in perception, mood and meaning7. New Knowledge

DRUCKER’S PRINCIPLES FOR

SUCCESFUL INNOVATION1. Begin with an analysis of the opportunity.

2. Analyze the opportunity to see if people will be interested in using the innovation.

3. To be effective, the innovation must be simple

and clearly focused on a specific need.

4. Effective innovations start small

5. Aim at market leadership

SCAMPER ~ TECHNIQUES FOR INNOVATION

• SUBSTITUTE, SIMPLIFY• COMBINE• ADAPT• MODIFY, MAGNIFY, MINIFY• PUT TO OTHER USES• ELIMINATE• REVERSE, REARRANGE

“SUBSTITUTE”- AN EXAMPLE

“COMBINE”- AN EXAMPLE

+ =

“ADAPT” – AN EXAMPLE

“MAGNIFY” – AN EXAMPLE

“MINIFY” – AN EXAMPLE

PUT TO OTHER USES

ELIMINATE

‘REARRANGE’ EXAMPLE 1/2

“REARRANGE” EXAMPLE 2/2

IF YOU WISH TO LEARN MORE

BOOKS ON CREATIVE THINKING

Screening Ideas: Are they Opportunities?

5 Questions1. What important customer problem can you

solve?2. How are you going to do it?3. How many customers are there that are willing

to buy from you?4. Why can only you provide the solution?5. How can you defend against others?

Ask these questions BEFORE somebody else does!

Screening an Opportunity:5 Questions

1. What important customer problem can you solve?How valuable?How painful?Remember, you need to change somebody’s

behavior to buy your product.

Screening an Opportunity:5 Questions

2. How are you going to do it?Business model:

ProductDistributionLocationTechnology/InnovationServiceBrand

Screening an Opportunity:5 Questions

3. How many customers are there that are willing to buy from you?How many customers are there? (Market size)How many will buy from you? (Market share)Who will be your first customer (besides your

Mom)?Who will be your 100th?

Screening an Opportunity:5 Questions

4. Why can only you provide the solution?

How are you unique? What do you provide that nobody else can?

Screening an Opportunity:5 Questions

5. How can you defend against others?

Location,Brand, Patent (or other IP),Great service, great taste, great fashion sense….

NOW YOU ARE READY

TO MAKE YOUR MILLION

BEST OF LUCK!