UNIT 4

FROM IDEA TO OPPORTUNITY

Idea generation is the process of creating, developing, and communicating new

ideas. It's a creative process that involves coming up with as many ideas as
possible, and then finding ways to use them and transfer them to the real world.
Idea generation is the first step towards making improvement. It can help
individuals move forward when they are stuck on a task or unable to solve a
problem. In business, idea generation can help companies identify creative
solutions, optimize operations, and drive overall success.
It requires you to do market research and SWOT analysis. You should aim to come
up with an idea that is unique from your competitors and can be used profitably.
For example, self-sanitizing door handles can be a product that you look at. It is
unique and would be in high demand because of the current shift towards a healthy
lifestyle.

Sources of Idea Generation

1. Internal Sources: - Internal sources are ideas that come from within the
organization or individual. These sources are valuable because they involve direct
insights from employees or personal experience.
 Employee Feedback: Employees working within the company have a deep
understanding of existing processes and can identify areas for improvement.
Feedback loops and suggestion systems can help tap into this potential.
 Customer Feedback: Insights from customers are a goldmine for
generating new ideas. Understanding customer needs, pain points, and
preferences helps businesses generate ideas for new products or services
that meet their demands.
 R&D Departments: Many large organizations have research and
development teams dedicated to innovating and generating new ideas. R&D
is a structured source that focuses on experimentation and exploring new
possibilities
 Personal Experience: Individuals can draw on their experiences to identify
problems or areas for improvement. This is especially common among
 entrepreneurs who recognize a gap in the market based on their own
interactions.
2. External Sources: - External sources involve ideas that come from outside the
organization or individual. These sources include market trends, competitors,
collaborations, and industry knowledge.
 Market Trends: Observing market trends and understanding consumer
behaviors help generate ideas that align with current demands. Emerging
technologies, shifts in consumer preferences, or changes in regulations can
inspire innovativ solutions.
 Competitor Analysis: Studying competitors' successes and failures can
spark new ideas. Organizations often improve on competitors' offerings by
identifying gaps or opportunities to differentiate their products and services.
 Collaborations and Partnerships: Working with external partners,
suppliers, or even other companies can lead to idea generation. Collaborative
efforts often combine diverse knowledge bases and perspectives, which
results in creative solutions.
 Academic Research: Collaboration with universities and research
institutions can bring cutting-edge ideas and technologies into businesses.
Academic insights, scientific discoveries, and technological advancements
can inspire new innovations.
 Conferences and Workshops: Attending industry conferences, workshops,
and seminars provides exposure to the latest developments in the field.
Networking with other professionals can also lead to the exchange of ideas

Idea Generation Techniques / Methods

1. Mind mapping - It is a technique of presenting information. Here we show
the links between the different elements or the pieces of information. The
links or connection is usually shown with the help of lines and arrows. It’s a
visual way of presenting the information.

For example, let’s suppose you want a name for your new application. You
will start by writing the main topic in the center of a paper, which here is the
name for your new application.
From the center point, you will have arrows pointing out. These arrows will point
to the main things to be kept in mind while thinking of a name like guidelines,
visualization, productivity, etc.
Now from every key aspect, there will be more arrows pointing out. These arrows
will describe the key aspect in detail. Like ‘guidelines’ will talk about the name
being able to express what the application does, following the naming scheme, etc.

2) Reverse Thinking - As is very clear from the name itself this technique asks us
to think oppositely. Instead of working on the problem in front of us, we work on
the exact opposite of it.
For example, let us assume you want to know ‘how to increase your followers on
social media platforms. According to this technique, you will instead think of ‘how
will I not increase my followers on social media platform’.
To this question, you will get answers like, by not posting regularly, or posting
low-quality content, etc. Now you just have to reverse your answers.
So, to increase followers on a social media platform you should post high-quality
content regularly. This idea generation technique works on the concept that it’s
easier to come up with negative suggestions.
3) Brainstorming - This technique is quantitative meaning that you come up with
a large number of ideas. Here a group comes up with a different probable solution
to the problem.
For example, if you along with some of your colleagues are
trying to come up with a tagline for your product. And each
one of you gives your ideas, then that is called brainstorming.

4) SCAMPER - The word SCAMPER is an acronym.

S –Substitute -Replace one element of a product or process with another to

improve it.

C – Combine - Merge two or more elements to create something new.

A – Adapt - Modify an existing idea or solution to fit a new context.
M – Modify - Change the shape, size, or attributes of an idea to enhance it.
P – Put to another use-: Find a different use for an existing product or process.
E – Eliminate - Remove unnecessary components to simplify or improve an idea.
R – Reverse - Reorganize elements to create a new perspective or solution.

Bob Eberle developed this technique. Each part of the acronym helps us think and
ask questions, which results in generating ideas.
For example, if you are a clothes manufacturing company you can think of
‘substitute’ your current material with a sustainable, eco-friendly option. You
could also ‘put it to other uses’ by recycling the waste material.
5) Synectic - George M. Prince and Willian J. J. Gordon developed this technique.
In this technique, we take apart a thing and then put it back together. This helps us
get a better understanding of how things work.
6) Role-Playing- In this technique, the participants take up roles to play. These
roles are different from the ones they usually play. It adds an element of fun and
helps get innovative ideas.
For example, you could take up the roles of customers and discuss your
expectations and what you want from products. This could lead you to stumble
upon some good ideas.
7) Storyboarding - This technique refers to the process of making storyboards to
generate ideas. Storyboards use pictures, illustrations, and other information to
better present the ideas.
For example, suppose you are working on an idea for an advertisement. You can
portray the different scenes in the form of a storyboard. This helps you in better
visualization and you can make changes accordingly.
8) Brainwriting- In this technique, a group of people writes their ideas on a piece
of paper. After the designated time for writing is over the paper is given to a
different person.
Now this person reads the ideas on the paper they got and adds their ideas on the
paper. This continues until everyone has put their ideas on all the papers. And
following this, there is a discussion on each idea.
9) The 5 W’s- Who, What, Where, When, and Why are the five W’s. Answering
these five W’s helps us achieve a very holistic view of the topic under discussion.
And it is an efficient way to come up with solutions and ideas.
For example, suppose you want to create a new product or a service. You can do so
by asking questions like, who would use the product, why would people buy it,
what would it do, etc.

10) Six Thinking Hats:- Developed by Edward de Bono, the Six Thinking Hats
method encourages individuals to look at problems from multiple perspectives.
Each "hat" represents a different type of thinking: logical (white hat), emotional
(red hat), creative (green hat), cautious (black hat), optimistic (yellow hat), and
control (blue hat). This structured approach ensures that ideas are evaluated from
all angles.

Identification & Classification Of ideas

Idea identification and classification are crucial steps in the innovation process.
Whether for entrepreneurship, product development, or problem-solving, it's
important to effectively identify and classify ideas to maximize their potential.
Proper classification ensures that resources are allocated wisely, and only the best
ideas are taken forward for development. This systematic approach helps in turning
raw thoughts into actionable concepts.
Methods of Idea Identification:
There are various methods that individuals and organizations use to identify
potential ideas:
1. Brainstorming Sessions: One of the most common ways to identify ideas,
brainstorming involves gathering a group of people to freely generate ideas. The
focus is on quantity rather than quality at first, with evaluation happening after
ideas have been shared.
2. Customer Feedback: Customers provide valuable insights into their needs and
pain points. These insights can be transformed into new ideas for products,
services, or improvements. Tools like surveys, reviews, and focus groups are
commonly used for this purpose.
3) Competitor Analysis: By observing competitors, businesses can identify gaps
in the market or areas where they can improve or innovate. This analysis helps
generate ideas that capitalize on market needs that competitors are not addressing.
4. Trend Analysis: Keeping an eye on market and industry trends can inspire
innovative ideas that capitalize on upcoming changes in customer preferences,
technological advancements, or societal shifts.
5. Reverse Engineering: - By deconstructing existing products, services, or
processes, one can gain insights into how to improve or repurpose them for
innovation.
 Classification of Ideas
Once ideas are identified, the next step is classification. This involves organizing
and categorizing ideas based on specific criteria, which helps streamline the
selection process. Classification ensures that ideas are evaluated on a systematic
basis, ensuring that the best ideas are given attention.

By Type of Innovation

1) Incremental Innovation: These are small-scale improvements or updates to

existing products, services, or processes. They do not radically change the
product but enhance it. Example: a new version of a smartphone with better
battery life.
2) Radical Innovation: Ideas that lead to significant changes in products,
services, or markets. These ideas often involve breakthroughs in technology
or completely new business models. Example: the invention of the electric
car.
3) Architectural Innovation: Ideas that involve reconfiguring existing
components in new ways to create new products or services. Example:
combining smartphone hardware and software with fitness tracking to create
wearable fitness devices.
4) Process Innovation: Ideas focused on improving business processes to
increase efficiency, reduce costs, or improve quality.

By Feasibility.

1) High Feasibility Ideas -These are ideas that can be implemented with
minimal investment of time, money, and effort. They are typically aligned
with current capabilities and resources.
2) Medium Feasibility Ideas: These ideas require a moderate level of
investment or effort but are still within reach. They may need additional
resources or capabilities but do not require radical changes.
 3) Low Feasibility Ideas: These ideas involve high levels of risk, require
significant investment, or require completely new technologies or
capabilities. While challenging to implement, they may offer high rewards.
By Business Value

1) High-Value Ideas: These ideas have the potential to generate significant

financial returns or social impact. They are often prioritized for development
due to their potential to drive growth or achieve strategic objectives.
2) Moderate-Value Ideas: Ideas that may lead to moderate improvements in
revenue or market share. These ideas may be developed alongside other
projects or saved for future consideration.
3) Low-Value Ideas: Ideas that may have little impact on the business or
market. These ideas are typically discarded unless they align with other
strategic goals.
By Urgency
1) Short-Term Ideas: Ideas that can be implemented quickly and have an
immediate impact. These ideas are often prioritized if the business needs a
rapid solution or improvement.
2) Long-Term Ideas: - Ideas that require significant time for development and
may offer future opportunities. These ideas are often kept in the innovation
pipeline for future exploration.
By Market Impact
1 ) Local Ideas: Ideas that address specific local or niche market needs. These are
typically small-scale and designed for a limited audience.
2 ) Global Ideas: Ideas that have the potential for widespread impact,
including international markets. These ideas often require larger investments
but can lead to significant rewards.
 Idea to Business opportunity Process of New venture
The journey from an idea to a viable business opportunity is an exciting, yet
challenging, process that involves creativity, strategic thinking, and a deep
understanding of market needs. While ideas are the seeds of entrepreneurship, not
every idea has the potential to become a profitable business. The transformation
from a raw concept to a successful business opportunity requires a well-thought-
out process, involving evaluation, validation, and execution.
1. Idea Generation: The process of converting an idea into a business opportunity
begins with generating creative and innovative ideas. An idea can emerge from
various sources: solving a personal problem, identifying a gap in the market,
improving an existing product or service, or leveraging new technologies.
2) Market Research: - Once an idea has been formed, the next step is conducting
market research. This involves gathering data about the potential market, including
the target audience, competitors, industry trends, and demand for your product or
service. The goal of market research is to assess whether the idea has market
potential and to identify the key factors that will influence its success.
3) Feasibility Analysis: Feasibility analysis helps determine whether the business
idea is financially, operationally, and technically viable. During this phase,
entrepreneurs evaluate the practical aspects of turning their idea into a functioning
business. This step is critical in identifying any major challenges or obstacles that
could prevent the idea from becoming a successful venture.
4) Business Model Development: Once feasibility has been established, the next
step is developing a business model. A business model defines how the company
will create, deliver, and capture value from its offering
5) Validation - Before fully committing to launching the business, it is important
to validate the idea. Validation involves testing the product or service with
potential customers to gather feedback and confirm there is demand. This step
often involves creating a prototype or minimum viable product (MVP) that
demonstrates the core functionality of the offering.
6. Business Planning: Once the idea has been validated, the final step is creating
a detailed business plan. This plan outlines the overall strategy for launching and
growing the business, including marketing, operations, financial projections, and
timelines.
Challenges
1) Cash Flow Issue
2) Maintaining Quality
3) Limited Market Budget
4) Market Competition
5) Hiring the Right Talent
6) Investor Skepticism