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Business ideas or business opportunities

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Andrew Hirst
Andrew Hirst

This document discusses creativity and developing business ideas. It describes creativity as stemming from intelligence, environment, knowledge, thinking style, personality, and motivation. It also discusses different thinking styles like convergent and divergent thinking. The document then provides various techniques that can help generate ideas such as brainstorming, market research, developing personas, mapping customer journeys, and techniques like SCAMPER. It emphasizes that ideas can come from many sources and the importance of identifying the problem to be solved. Ultimately, the document stresses that ideas must be turned into opportunities by considering factors like market fit, feasibility, management team, and personal ambition.

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What is creativity?
Creativity: Sternberg and Lumbart (1995) To be creative Intelligence Environment Knowledge Thinking Style Personality Motivation
Creativity • Creative professions – e.g. artists, actors or mad genius etc. • Creative People in "uncreative professions" – e.g. police trying to solve crimes • We are all creative – Novel associations – cognitive process – We can use techniques to help us
Thinking styles • Whole brain thinking?
Our Brains work in two ways – Convergent Thinking (left brain) • Logical • Analytical • Solution reducing – Divergent Thinking (right brain) • Creative • Artistic • Solution generating
Developing a Business Idea Dr Andrew Hirst Room 9339 6
Where do ideas come from? 7
Where do ideas come from? • Copying existing ideas • Solving problems • Developing a hobby • Finding gaps • Improving existing ideas • Listening to others who say things like ‘If only…’ • Combining ideas • Poor alternatives • Building on skills • Utilising existing resources • New ways of doing things • Opportunity seeking • Thinking about what things do rather than what they are Ideas come from anywhere!
Where do innovative ideas come from? • Technology - e.g. Moore's Law – micro chip performance doubles roughly every year • Market - e.g. Deregulation, globalisation, the internet • Societal - e.g. Lifestyles, ecology • Brontosaurus factor e.g. IBM, Ford and GM • Irrational exuberance (asset bubbles) e.g. changing asset values
Some example techniques that can help us?
Brainstorming – Best for/with: • - Small groups of up to 5 • - A wide range of abilities • - Generating lots of different ideas • - Risk free exercise • - Initial team building • - Short time periods – Poor for: – - Ideas evaluation – - Poorly defined topics or problems – - Use over long periods – - Generating quality ideas – - Learning specific facts
Market research / business development techniques
Developing Personas examples • Create your ideal customer • Age • Occupation • Level of expertise “A persona is a fictional • Net usage character that communicates the primary characteristics of • Environment a group of users, identified • Triggers and selected as a key target • Ultimate Goals through use of segmentation data, across the company in • Day in the life a usable and effective • Examples manner.
Create your ideal customer • Age • Occupation • Level of expertise • Net usage • Environment • Triggers • Ultimate Goals • Day in the life • Examples – Persona 1 – George: George is a 45 year old violin teacher who has used the Internet for less than a year. He accesses the Internet from home over a broadband connection. He has never purchased online before, preferring to place orders by phone. – Persona 2 – Georgina: Georgina is a 29 year old ad exec who has been using the Internet for 5 years and uses her Macbook, iPad or Android phone to access the web – whatever is to hand.
Mapping the Customer Journey • Stages of purchase – Awareness of need – Distribution – Selection – Purchasing – Payments – After sales – Repair – Disposal
Customer Journey for Websites Awareness Understand Join in engage advocate
Scamper - e.g. Mars Bar S ubstitute C ombine A dapt M agnify P ut to other use E liminate R earrange Breakfast Bar not Bowl Mcflurry Mars Battered Mars Bar King Size Celebrations Mars Artificial ingredients Mini Mars bags
Other techniques • 5 Whys +1 How – Drill Down Process • Other ideas – Cube Crawling (3D) • Market, • Technology/Materials, • Processes – Market Mapping – Attribute analysis – Mind GYM
One simple question What problem am I trying to fix?
The reality of generating business ideas • Idea development process is continuous Mullins and Komisar (2009) • Analogs (similar ideas) • Antilogs (opposing ideas) • Leaps of faith • i.e. Incremental development vs radical innovation
Some interesting business analogues to copy • Gillett razor - low initial investment to tie in customers • e.g. world of warcraft • Ebay - cash positive business, by acting as intermediary • e.g. Betfair • Playstation - provide open system for developers • e.g. Andriod • Nintendo - controlled system • e.g.Apple • Innocent Drinks
Summary - creating business ideas • Ideas come from many sources • We can use techniques to help generate ideas • Often ideas come from what we see and hear in our daily lives • Identifying the problem to be solved is an important stage in the idea development process
Ultimately, ideas are irrelevant if they stay as an idea!
Persistence "Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'Press On' has solved and always will solve the problems of the human race." Calvin Coolidge Dr Andrew Hirst Room 9339 24
Ideas into Opportunities "An opportunity has the qualities of being attractive durable and timely and is anchored in a product or service, which creates or adds value for its buyer or end user"
We often get it wrong • 1977 - Ken Olsen Digital Equipment Corporation – "There is no reason for any individual to have a computer in their home" • 1980 Sir Clive Sinclar launches the ZX80 (the first home PC) • 1901 - Wilbur Wright (Wright Brothers) – "Man will not fly for 50 years" – 1903 Wright Brothers makes first flight
We often get it wrong • Thomas Eddison (1910) – "The Nickel-Iron Battery will put the Gasoline buggy out of existence in no time" • Einstein (1932) – "There is not the slightest indication that nuclear energy will ever be obtainable. It would mean that the atom would have to be shattered at will" – 1944 America use the Hydrogen bomb • “There is a world market for about five computers.” Thomas J Watson, IBM
Need an effective way to decide Screening ideas for opportunity fit A Science or an Art? ....trying to get it right
Basic Criteria • Business focused – Market opportunity • Size, growth, competition and barriers to entry – Practical/Economic feasibility • Cash flow, ROI Margins, time to breakeven – Management team • Credibility and experience – Product/ service • Technology, Timing and Strategic Advantage – Personal • Type and scale of ambition, Fit with idea, attitude to risk
Creating Evaluation Criteria • Depends on scale and ambition of the idea • Personal decision • Balance the idea with practical concerns • It is an iterative process
Example Fine screen: Weighted Scoring Grid Criteria Weighting (1-5) Idea 1 (Score 1-5) Idea 2 (Score 1-5) Idea 3 (Score 1-5) Raw score Weighted score Raw score Weighted score Raw score Weighted score Ability to work from home 1 1 1 1 1 3 3 Low level of risk 2 4 8 2 4 5 _ High Financial return 3 2 6 3 9 1 _ Low start up investment 2 1 2 2 4 4 _ Leverage contracts from 4 3 12 2 8 5 _ previous job Avoid head on competition 2 3 6 2 4 2 _ Total - 35 30 _
Try this in VM • 2x2 matrix 1. Idea attractiveness vs compatibility with personal circumstances 2. Benefit to future career vs time to complete 3. Easy to do vs fun to do No point doing Yeah, lets do it! Oh no.. Boring A great challenge Easy Fun
Summary • A business opportunity is more than an idea • It’s a personal decision • An opportunity arrives when the idea, resources and the teams motivation and skills merge • Develop a set of criteria that helps you • Remember that nothing is perfect and you need to take risks and make a decision! • Knowledge is power - so do your research
Your Business will be... Resources Team Idea The right fit

More Related Content

Business ideas or business opportunities

  • 2. Creativity: Sternberg and Lumbart (1995) To be creative Intelligence Environment Knowledge Thinking Style Personality Motivation
  • 3. Creativity • Creative professions – e.g. artists, actors or mad genius etc. • Creative People in "uncreative professions" – e.g. police trying to solve crimes • We are all creative – Novel associations – cognitive process – We can use techniques to help us
  • 4. Thinking styles • Whole brain thinking?
  • 5. Our Brains work in two ways – Convergent Thinking (left brain) • Logical • Analytical • Solution reducing – Divergent Thinking (right brain) • Creative • Artistic • Solution generating
  • 6. Developing a Business Idea Dr Andrew Hirst Room 9339 6
  • 7. Where do ideas come from? 7
  • 8. Where do ideas come from? • Copying existing ideas • Solving problems • Developing a hobby • Finding gaps • Improving existing ideas • Listening to others who say things like ‘If only…’ • Combining ideas • Poor alternatives • Building on skills • Utilising existing resources • New ways of doing things • Opportunity seeking • Thinking about what things do rather than what they are Ideas come from anywhere!
  • 9. Where do innovative ideas come from? • Technology - e.g. Moore's Law – micro chip performance doubles roughly every year • Market - e.g. Deregulation, globalisation, the internet • Societal - e.g. Lifestyles, ecology • Brontosaurus factor e.g. IBM, Ford and GM • Irrational exuberance (asset bubbles) e.g. changing asset values
  • 10. Some example techniques that can help us?
  • 11. Brainstorming – Best for/with: • - Small groups of up to 5 • - A wide range of abilities • - Generating lots of different ideas • - Risk free exercise • - Initial team building • - Short time periods – Poor for: – - Ideas evaluation – - Poorly defined topics or problems – - Use over long periods – - Generating quality ideas – - Learning specific facts
  • 12. Market research / business development techniques
  • 13. Developing Personas examples • Create your ideal customer • Age • Occupation • Level of expertise “A persona is a fictional • Net usage character that communicates the primary characteristics of • Environment a group of users, identified • Triggers and selected as a key target • Ultimate Goals through use of segmentation data, across the company in • Day in the life a usable and effective • Examples manner.
  • 14. Create your ideal customer • Age • Occupation • Level of expertise • Net usage • Environment • Triggers • Ultimate Goals • Day in the life • Examples – Persona 1 – George: George is a 45 year old violin teacher who has used the Internet for less than a year. He accesses the Internet from home over a broadband connection. He has never purchased online before, preferring to place orders by phone. – Persona 2 – Georgina: Georgina is a 29 year old ad exec who has been using the Internet for 5 years and uses her Macbook, iPad or Android phone to access the web – whatever is to hand.
  • 15. Mapping the Customer Journey • Stages of purchase – Awareness of need – Distribution – Selection – Purchasing – Payments – After sales – Repair – Disposal
  • 16. Customer Journey for Websites Awareness Understand Join in engage advocate
  • 17. Scamper - e.g. Mars Bar S ubstitute C ombine A dapt M agnify P ut to other use E liminate R earrange Breakfast Bar not Bowl Mcflurry Mars Battered Mars Bar King Size Celebrations Mars Artificial ingredients Mini Mars bags
  • 18. Other techniques • 5 Whys +1 How – Drill Down Process • Other ideas – Cube Crawling (3D) • Market, • Technology/Materials, • Processes – Market Mapping – Attribute analysis – Mind GYM
  • 19. One simple question What problem am I trying to fix?
  • 20. The reality of generating business ideas • Idea development process is continuous Mullins and Komisar (2009) • Analogs (similar ideas) • Antilogs (opposing ideas) • Leaps of faith • i.e. Incremental development vs radical innovation
  • 21. Some interesting business analogues to copy • Gillett razor - low initial investment to tie in customers • e.g. world of warcraft • Ebay - cash positive business, by acting as intermediary • e.g. Betfair • Playstation - provide open system for developers • e.g. Andriod • Nintendo - controlled system • e.g.Apple • Innocent Drinks
  • 22. Summary - creating business ideas • Ideas come from many sources • We can use techniques to help generate ideas • Often ideas come from what we see and hear in our daily lives • Identifying the problem to be solved is an important stage in the idea development process
  • 23. Ultimately, ideas are irrelevant if they stay as an idea!
  • 24. Persistence "Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'Press On' has solved and always will solve the problems of the human race." Calvin Coolidge Dr Andrew Hirst Room 9339 24
  • 25. Ideas into Opportunities "An opportunity has the qualities of being attractive durable and timely and is anchored in a product or service, which creates or adds value for its buyer or end user"
  • 26. We often get it wrong • 1977 - Ken Olsen Digital Equipment Corporation – "There is no reason for any individual to have a computer in their home" • 1980 Sir Clive Sinclar launches the ZX80 (the first home PC) • 1901 - Wilbur Wright (Wright Brothers) – "Man will not fly for 50 years" – 1903 Wright Brothers makes first flight
  • 27. We often get it wrong • Thomas Eddison (1910) – "The Nickel-Iron Battery will put the Gasoline buggy out of existence in no time" • Einstein (1932) – "There is not the slightest indication that nuclear energy will ever be obtainable. It would mean that the atom would have to be shattered at will" – 1944 America use the Hydrogen bomb • “There is a world market for about five computers.” Thomas J Watson, IBM
  • 28. Need an effective way to decide Screening ideas for opportunity fit A Science or an Art? ....trying to get it right
  • 29. Basic Criteria • Business focused – Market opportunity • Size, growth, competition and barriers to entry – Practical/Economic feasibility • Cash flow, ROI Margins, time to breakeven – Management team • Credibility and experience – Product/ service • Technology, Timing and Strategic Advantage – Personal • Type and scale of ambition, Fit with idea, attitude to risk
  • 30. Creating Evaluation Criteria • Depends on scale and ambition of the idea • Personal decision • Balance the idea with practical concerns • It is an iterative process
  • 31. Example Fine screen: Weighted Scoring Grid Criteria Weighting (1-5) Idea 1 (Score 1-5) Idea 2 (Score 1-5) Idea 3 (Score 1-5) Raw score Weighted score Raw score Weighted score Raw score Weighted score Ability to work from home 1 1 1 1 1 3 3 Low level of risk 2 4 8 2 4 5 _ High Financial return 3 2 6 3 9 1 _ Low start up investment 2 1 2 2 4 4 _ Leverage contracts from 4 3 12 2 8 5 _ previous job Avoid head on competition 2 3 6 2 4 2 _ Total - 35 30 _
  • 32. Try this in VM • 2x2 matrix 1. Idea attractiveness vs compatibility with personal circumstances 2. Benefit to future career vs time to complete 3. Easy to do vs fun to do No point doing Yeah, lets do it! Oh no.. Boring A great challenge Easy Fun
  • 33. Summary • A business opportunity is more than an idea • It’s a personal decision • An opportunity arrives when the idea, resources and the teams motivation and skills merge • Develop a set of criteria that helps you • Remember that nothing is perfect and you need to take risks and make a decision! • Knowledge is power - so do your research
  • 34. Your Business will be... Resources Team Idea The right fit