IDEA GENERATION
AND EVALUATION
Dalhia Mani
nsrcel
Myths

Good Ideas usually involve high technology
K.KUMAR & Adam Grant
“Farmers get only 30% of the ultimate price of the crop sold”, Laxminarayan
Srinivasaiah, co-founder of Jivabhumi
CONTEXT:
Banks favor a wealthy clientele, to whom
they lend large sums and request
guarantees to hedge their risks.
Poorer population are excluded from this
systems which push them further into
poverty.
Grameen idea:
Become a bank for the poor; lend
small sums to group of people
enabling them to set up small
businesses and use social
pressure in place of guarantees.
10
Myth 2
Low cost models are less profitable
CONTEXT:
Poor customers with very small amounts in
their bank accounts are not a profitable
segment for banks.
NICKEL idea:
Provide a bank account at the
corner store : a basic account
opening, simple debit card, and no
overdraft options.
CONTEXT:
Cut hassle, cut cost of real estate
Beauty Bubble idea:
Offer an inexpensive haircut (no
shampoo) in convenient location. A
haircut takes 10 min, costs 10 € and
does not require an appointment.
22
Myth 3
External constraints kill ideas
K.KUMAR & Adam Grant
CONTEXT:
Local food, land for farming
BRIGHT FARMS idea:
Fresh produce from the
roof. Install hydroponic
(without soil) greenhouses
on roofs or near
supermarkets. 26
More Myths

Ideas are scarce
 Ideas

should not be shared or they will be stolen
Brilliant people create brilliant ideas,
Which lead to success/fame/money
If I failed my idea must be stupid
So I must be stupid
K.KUMAR & Adam Grant
Thomas Edison’s creepy talking doll
..and his ghost busting machine
Nikola Tesla’s portable earthquake
maker
Myths……



Good Ideas usually involve high technology
External constraints kill ideas
Ideas are scarce
 Ideas


should not be shared or they will be stolen
rBrilliant people create brilliant ideas
Brilliant ideas lead to success/fame/money
 If
I failed my idea must be stupid
 If I failed, I must be stupid
K.KUMAR & Adam Grant
Myth Busting…..






Good Ideas often use existing technology
External constraints are breeding grounds for ideas
Ideas are everywhere.
Ideas become better when shared.
Create 100 ideas and you will hit a few brilliant ones.
“Doing” leads to success/fame/money.
Idea generation techniques



Brainstorming: Don't put on your evaluating hat.
Painstorming: Come up with a list of problems you
or those around you face, and that you think are
interesting to be solved.
Hobbystorming: Think about your hobbies or
passions and use that as the source of your business
idea.
Evaluating Ideas



Is there a market? How big is the market? Is it likely
to grow?
Is it doable? For me?
Will it be profitable? Is it scalable? Is it durable?
Opportunity identification matrix TM
Prof Ramachandran, ISB
High
Discontentment
Good potential
For success
Highest potential
For success
High Criticality
Low Criticality
Not for
now
Challenges in
innovation
Low
Discontentment
Assessing Opportunity Doability
Feasibility
Is it doable?
Market
Personal
Technical Feasibility
Market Feasibility
Value
Is it worth doing?
Financial Feasibility
Can I do it?
Do I want to do it?
What will it take to do it?
Whom else do I nee?
What turns me on about it?
Why do I want to do it?
Opportunity Characteristics: Significant profit
potential



To qualify as an opportunity, a business must offer
the potential for significant profit
But what is significant?
Person seeking a lifestyle business will look for one
that can be passed on to the children
Profit potential

(Contd.)
Ambitious entrepreneurs may want a business that is
capable of
 turning
a profit in 2-3 yrs,
 $10 million in sales within 5 yrs
 a 10-15% ROI
 a 20% annual revenue growth for 5 years
Opportunity Characteristics:
Durability/scalability

Some opportunities are not durable because
 The
demand dries up – fads?
 Low entry barrier lets in too much competition

Some opportunities are not scalable because the
model relies on skills/resources that are not easily
replicable
Key Learnings






Ideas are everywhere
Problems/constraints are a great source of ideas
Ideas don’t appear in a vacuum – Ideas are “You”
Ideas change (improve?) in conversation
Generating ideas is not hard
Evaluating ideas based on:
 Is
there a market? How big?
 Doability. For me?
 Profitability/scalability/durability
References

Suresh Bhagavatula, EM course Slides

K. Kumar, EM Course Slides


“Knowing a winning business idea when you see one,” W. Chan Kim and
Renee Mauborgne
Odyssey 3.14, Laurence Lehman-Ortega and Helene Musikas