IDEATION, INNOVATION, AND CREATIVITY Ideation/ Where to get ideas Gap analysis/ Developing an idea Great Business idea/ Evaluating an idea Protecting your idea/ Confidentiality Agreements Patents/ Trademark/ copyrights Entreprenuerial Creativity and Obstacles Innovation concept Impacts to innovation Organizational motivation to innovate What is ideation? • Ideation represents the creative process of generating, developing, and communicating new ideas, where an idea is understood as a basic element of thought that can be either visual, concrete, or abstract[1]. As such, it is an essential part of the design process, both in education and practice[2]. • Business begins with IDEATION. • IDEATION should be the first investment of anybody who seeks to be an entrepreneur. • The single most important activity or any entrepreneur or small business manager is to generate business ideas. Ideas are the fuel of any enduring brand WHERE TO GET IDEAS? • SOOOOOOOOO MANY AVENUES!!! Another means of finding business ideas GAP ANALYSIS WHAT IS AN IDEA THAT IS WORTH A BUSINESS? One that has market now and in the future Totally Stupid Online Business Ideas That Made Someone Rich • Million Dollar Homepage • 1000000 pixels, charge a dollar per pixel – that’s perhaps the dumbest idea for online business anyone could have possible come up with. Still, Alex Tew, a 21-year-old who came up with the idea, is now a millionaire. Totally Stupid Online Business Ideas That Made Someone Rich • LaserMonks • LaserMonks.com is a for-profit subsidiary of the Cistercian Abbey of Our Lady of Spring Bank, an eight-monk monastery in the hills of Monroe County, 90 miles northwest of Madison. Yeah, real monks refilling your cartridges. Hallelujah! Their 2005 sales were $2.5 million! Praise the Lord. Totally Stupid Online Business Ideas That Made Someone Rich • PositivesDating.Com • How would you like to go on a date with an HIV positive person? Paul Graves and Brandon Koechlin thought that someone would, so they created a dating site for HIV positive folks last year. Projected 2006 sales are $110,000, and the two hope to have 50,000 members by their two-year mark. Totally Stupid Online Business Ideas That Made Someone Rich • SantaMail • Ok, how’s that for a brilliant idea. Get a postal address at North Pole, Alaska, pretend you are Santa Claus and charge parents 10 bucks for every letter you send to their kids? Well, Byron Reese sent over 200000 letters since the start of the business in 2001, which makes him a couple million dollars richer. DEVELOPING AN IDEA • • • • • • Recognizing a need Improving an existing product Recognizing trend Be aware of everything Questioning assumptions Identifying or naming it first, then develop it EVALUATING AN IDEA Is Your Great Idea A Real Business? Christopher Steiner, 06.11.10, 06:30 PM • Twelve questions to help you separate the merely clever from the ideas that stand a true chance of succeeding. • To sift out true business opportunities from the sand of merely bright ideas, would-be entrepreneurs can ask a series of questions. Twelve Questions To Test If It's A Real Business 1. Are you filling a void? A clever idea is nothing more than a science project if nobody actually needs the resultant product. "You have to determine that there's something actually missing to a specific market-something you're going to supply," says Tom Lane, founder of Propertyroom.com, an auction site for recovered and seized items sitting in backrooms of police departments. 2. Does the idea pass a live-fire test? Many ideas lend themselves to an easy litmus test to determine if they'd be needed or popular. A newfangled baked good, for instance, could be tested at a farmer's market before being pitched to retailers. If the sweet concoction doesn't sell at all to the market crowd, the product may need to be reexamined before getting pushed in bigger ponds. 3. Do industry experts hate your idea? Good. Just because so-called experts hate an idea doesn't mean it's bad. It can often prove to be a good thing. Entrenched players often don't see the harbingers of change until it's too late. "Industry experts, by definition, are often steeped in the orthodoxies of the industry; therefore they are also more likely to underestimate the importance of a novel business model or innovation coming from outside their industry," says Eric Noyes, a professor at the Arthur M. Blank Center for Entrepreneurship at Babson College. 4. Does the idea have shelf life? Are there pending, sweeping changes in technology that could render your idea moot? Companies not on guard for changes in technology can be swept away while competitors move ahead, says Matthew Ammirati, president of Ammirati, a Manhattan advertising agency. Advertising agencies that didn't embrace social media as it emerged several years ago, for instance, are still struggling to catch up. 5. High barrier to entry? The best ideas have high barriers to entry, says Kanchana Raman, CEO of Avion Systems, a telecommunications company. If an idea is good but not patentable, bigger competition could overrun you overnight. 6. Is the idea scalable? The best business ideas incorporate plans that can be replicated and easily taught so they don't require the founder to be the business all on his or her own, says Susan Wilson Solovic, CEO of SBTV.com, a St. Louis-based online network focusing on small business. "If you are the business all alone, then you really haven't started a business, you've just created a job for yourself." 7. Can the idea be priced attractively? Many daydreamers with good ideas don't run the numbers to determine if their bright insight can be offered to the market at a price the market is willing to pay. "There may be a reason why nobody else is already doing what you're thinking about--they can't make any money doing it," explains Solovic. 8. How much funding will the idea need? Financing has rarely been easy for entrepreneurs; today's tight market makes things even worse. Many business ideas initially get backed by the founder's own money with contributions from family and friends. When it comes to specific ideas, entrepreneurs have to ask themselves, "How much money do you truly need to get the business off the ground?" says Solovic. If the idea will take colossal VC funding, it may be more expedient to examine business ideas with lower budgets. 9. How large is the market for the idea? If a business plan requires that you sell to 60% of a potential market in order to make a profit, then the idea isn't realistic. Better business ideas can achieve profits by attaining a smaller market share of 5% to 10%. 10. Is the idea truly a stand-alone business, or is it an add-on feature? It's easy for an entrepreneur to mistake a feature for a solid company idea. Many good ideas can be useful to businesses that already exist--for instance, a feature addition for a program such as Windows or Photoshop, but don't make for a business by themselves. "A cupholder for minivans does not beget a company," says Dave Kellogg, CEO of Mark Logic, a Sequoia Capital-backed database software company in San Carlos, Calif. 11. If it weren't your idea, would you put money into it? This is a simple question and an important litmus test, says Michael Bechara, managing director of Granite Consulting Group, which advises its clients on corporate governance and risk. "If a stranger pitched this idea to you, how likely would it be that you'd buy in?" 12. Can you pitch your idea as a business in 20 seconds or less? James W. Klingler, a professor at Villanova's Center for Innovation, Creativity and Entrepreneurship, makes students hone their ideas and explain their pitches again and again. Many entrepreneurs, he says, never reach an elite level of clarity in explaining why their idea is a great business. "If there isn't a good elevator pitch, there isn't a real opportunity," Klingler says. PROTECTING YOUR IDEA PROTECTING YOUR IDEA COPYRIGHT LAW FULL IMPLEMENTATION OF IP Other means of protecting an idea • Record ideas, taking notes, diary • Secure notes (safety place) • Take note of phone calls, record conversations, including date and time, keep copy of the bill & journal • Send data thru certified couriers CONFIDENTIALITY AGREEMENT When is this necessary? • While initial research and evaluation is going on • When you are manufacturing it or presenting to companies to get it licensed • When it has reached the point of dealing with an investor PATENTS • A patent is a right granted for any device, substance, method, process which is new inventive and useful. Patents are legally enforceable and gives the owner the exclusive right to commercially exploit the invention for the life of the patent. The innovation patent is a protection option which is designed to protect inventions that are not sufficiently inventive. PATENT Example: The Ipod range is protected under a patent. The value of patenting and licensing • The principal reason is not to protect your idea or product from being ripped off, though that’s the nice side benefits •The real reason is that no company is going to pay you royalty on idea that is not legally protected. Patent pending • Status of patent application • Review stage at the patent office • Product already sold in the market marked as patent pending TRADEMARKS • A trademark can be a letter, number, word, phrase, sounds, smell, slogan, logo, picture, aspect of packaging or any combination of these. • Trademarks are used to distinguish goods and services of one trade from those of another. You don’t have to register your trade mark to use it, however registration is advisable because it can be an expensive and time consuming exercise to take action under common law. • A registered trade mark gives you exclusive legal rights to use, license or sell it within your country (laws vary within countries) for the goods and services for which it is registered. TRADEMARK Example: Cadbury Schweppes have a trademark on their specific purple color Registered Design • refers to the configuration, pattern, or ornamentation which when applied to a product gives the product a unique appearance. You can register a design but it must be new and distinctive. Example: The Coca Cola bottle, even without any text or branding was recently registered in Japan being the first of its kind. COPYRIGHTS • Protects the creative work of composers, authors, writers, artists, filmmakers, and others. • Endures during the lifetime of the creator and for 50 yrs after his death COPYRIGHT Example: The specific character, and material relating to Batman is protected under copyright ENTREPRENUERIAL CREATIVITY technical, procedural & intellectual knowledge COMPONENTS OF CREATIVITY Creative Thinking Skills Expertise IT IS ABOUT COMING UP WITH INNOVATIVE IDEAS AND CONVERTING THEM INTO VALUECREATING PROFITABLE BUSINESS ACTIVITIES how flexibly and more imaginatively people approach problems Creativity Motivation intrinsic is more effective than extrinsic Environmental stimulants to creativity • • • • • • • • • • Freedom Good project management Sufficient resources Encouragement Various organizational characteristics Recognition Sufficient time Challenge Pressure Outside organization Environmental obstacles to creativity • • • • • • • • • Various organizational characteristics Constraint Organizational disinterest Poor project management Evaluation Insufficient resources Time pressure Overemphasis on status quo Competition The concept of INNOVATION Doing something different Innovation is a process of taking new ideas to satisfied customers. • Effecting a new policy • Finding new opportunities • Designing a new structure • Devising a fresh method Lamp-Proxima-Futuristic-Car New-Innovative-ArchitecturalBalenciaga-Shoes.jpg dutchess-county-guest-housewooden-matrials Modern Loft Notebook-Acer-Aspire-AS8940G6865 coffee-machine-design-technology Organizational motivation to innovate Innovation Lessons THANK YOU!!!
