Part 2 Developing Successful Business Ideas updated 20_8_2019.pptx

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1. Innovation and Entrepreneurship Part 2 Prepared By: Yahya Saleh Suleiman Duaifi Maher Abu Baker Mohammad J. Dweikat

2. Entrepreneurship Developing Successful Business Ideas: Recognizing opportunities and generating ideas

3. 1.0 What is an Opportunity? Opportunity Defined An opportunity is a favorable set of circumstances that creates a need for a new product, service , or business.

4. Four Essential Qualities of an Opportunity

5. 2.0 Three Ways to Identify an Opportunity Observing Trend Solving a Problem Finding Gaps in the Market Place

6. First Approach: Observing Trends Observing Trends Trends create opportunities for entrepreneurs to pursue. The most important trends are: Economic forces Social forces Technological advances Political and regulatory change It’s important to be aware of changes in these areas.

7. Environmental Trends Suggesting Business or Product Opportunity Gaps Copyright ©2016 Pearson Education, Inc. 2- 7

8. Trend 1: Economic Forces Copyright ©2016 Pearson Education, Inc. Economic trends help determine areas that are ripe for new start-ups and areas that start-ups should avoid. Example of Economic Trend Creating a Favorable Opportunity A weak economy favors start-ups that help consumers save money. An example is GasBuddy.com, a company started to help consumers save money on gas. GasBuddy  is a tech company based in  Boston  that operates apps and websites based on finding real-time fuel prices at more than 140,000 gas stations in the United States, Canada, and Australia. They also sell software products to convenience store owners via their B2B initiatives (formerly known as OpenStore ). The GasBuddy app is a  GPS -based  application program  for  smartphones  and  tablets  which provides prices of nearby gas stations from user-submitted data, as well as through partnerships with other companies and directly from station operators.The app has both  Android  and  iOS  versions.

9. Trend 2: Social Forces Social trends alter how people and businesses behave and set their priorities. These trends provide opportunities for new businesses to accommodate the changes. Examples of Social Trends Aging of the population. The increasing diversity of the workplace. Increased participation in social networks. Growth in the uses of mobile devices. An increasing focus on health and wellness.

10. Trend 3: Technological Advances Advances in technology frequently create business opportunities. Examples of Entire Industries that Have Been Created as the Result of Technological Advances Computer industry Internet Biotechnology Digital photography Big Data IOT Blockchain

11. Once a technology is created, products often emerge to advance it. Example: H20Audio An example is H20Audio, a company started by four former San Diego State University students, that makes waterproof housings and earbuds for the Apple iPhone.

12. Trend 4: Political Action and Regulatory Changes Political action and regulatory changes also provide the basis for opportunities. General Example Laws to protect the environment have created opportunities for entrepreneurs to start firms that help other firms comply with environmental laws and regulations.

13. Company created to help other companies comply with the law. Specific Example OSHA is a government agency that formulates and enforces safety, health, and environmental regulations for the workplace. Safety Compliance Company was started to help other companies comply with OSHA regulations.

14. Second Approach: Solving a Problem Solving a Problem Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it . These problems can be pinpointed through observing trends and through more simple means, such as intuition ( حدس ), serendipity ( صدفة ), or change. Many companies have been started by people who have experienced a problem in their own lives , and then realized that the solution to the problem represented a business opportunity.

15. A large number of entrepreneurial firms, like wind farm and solar energy are being launched to solve this problem. A problem facing the U.S. and other countries is finding alternatives to fossil fuels ( الوقود الإحفوري ). UBS

16. Third Approach: Finding Gaps in the Marketplace Gaps in the Marketplace A gap in the marketplace is often created when a product or service is needed by a specific group of people but doesn’t represent a large enough market to be of interest to mainstream retailers or manufacturers. Product gaps in the marketplace represent potentially viable business opportunities. Many entrepreneurs realized there were no guitars on the market made specifically for females. - Chairs for left hand people

17. 3.0 Characteristics that tend to make some people better at recognizing opportunities than others Prior Experience Cognitive Factors ( العوامل المعرفية / الإدراكية ) Social Networks Creativity

18. Prior Experience Several studies have shown that prior experience in an industry helps an entrepreneur recognize business opportunities. By working in an industry, an individual may spot a market niche that is underserved. It is also possible that by working in an industry, an individual builds a network of social contacts who provide insights that lead to recognizing new opportunities.

19. Cognitive Factors Studies have shown that opportunity recognition may be an innate skill ( مهارة فطرية )or cognitive process. Some people believe that entrepreneurs have a “ sixth sense ” that allows them to see opportunities that others miss. This “sixth sense” is called entrepreneurial alertness ( يقظة ريادية ) , which is formally defined as the ability to notice things without engaging in deliberate search ( بحث متعمد ) .

20. Social Networks The extent and depth of an individual’s social network affects opportunity recognition. People who build a substantial network of social and professional contacts will be exposed to more opportunities and ideas than people with sparse networks . Research results suggest that between 40% and 50% of people who start a business got their idea via a social contact . Strong-Tie Vs. Weak-Tie Relationships It is more likely that an entrepreneur will get new business ideas through weak-tie rather than strong-tie relationships. Why? Strong tie relationships, which typically form between like-minded individuals, tend to reinforce insights and ideas that people already have

21. http://strategicorganizationdesign.com/the-innovator%E2%80%99s-dna-disruptive-research-disruptive-writing 21

22. Creativity 2- 22 Creativity is the process of generating a novel or useful idea . Opportunity recognition may be, at least in part, a creative process.

23. For an individual , the creative process can be broken down into five stages Five Steps to Generating Creative Ideas Preparation —Is the background, experience, and knowledge that an entrepreneur brings to the opportunity recognition process. Incubation —Is the stage during which a person considers an idea or thinks about a problem; it is the “mulling things over” phase. Insight —Insight is the flash of recognition, when the solution to a problem is seen or an idea is born. Evaluation —Is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability. Elaboration —Is the stage during which the creative idea is put into a final form. The details are worked out, and the idea is transformed into something of value.

24. 5.0 Techniques for Generating Ideas Brainstorming Focus Groups Library and Internet Research Other Techniques

25. Brainstorming Is a technique used to generate a large number of ideas and solutions to problems quickly. A brainstorming “session” typically involves a group of people, and should be targeted to a specific topic.

26. Focus Groups A focus group is a gathering of five to ten people , who have been selected based on their common characteristics relative to the issues being discussed. These groups are led by a trained moderator, who uses the internal dynamics of the group environment to gain insight into why people feel the way they do about a particular issue. Although focus groups are used for a variety of purposes, they can be used to help generate new business ideas.

27. Library and Internet Research Library Research Libraries are an often underutilized ( غير مستغل ) source of information for generating new business ideas. The best approach is to talk to a reference librarian, who can point out useful resources, such as industry-specific magazines, trade journals, and industry reports. Simply browsing ( تصفح ) through several issues of a trade journal or an industry report on a topic can spark new ideas .

28. Large public and university libraries typically have access to search engines and industry reports that would cost thousands of dollars to access on your own. Examples of Useful Search Engines and Industry Reports ScienceDirect SpringLink SSRN BizMiner ProQuest IBISWorld Mintel LexisNexis Academic 2- 28

29. Library and Internet Research 2- 29 Internet Research simply type “ new business ideas ” into a search engine will produce links to newspapers and magazine articles about the “hottest” new business ideas.

30. Innovation is about improving existing processes. At its core SCAMPER is an easy to implement creative thinking and problem solving method that facilitates  continuous improvement .  There is a quote from Thomas Edison that goes “There’s a way to do it better – find it.” This is exactly what innovation is about, it’s about improving existing processes and concepts instead of creating something entirely new. You don’t have to reinvent the wheel, but you can make it run more efficient. The SCAMPER method is built on this understanding. 

31. What is SCAMPER ? SCAMPER is actually an acronym and each letter stands for one thinking technique:  S ubstitute,  C ombine,  A dapt,  M odify,  P ut to another use,  E liminate,  R everse. So SCAMPER is a collection of these various techniques and you can choose to use one or all of the seven methods to find solutions to your problems. It’s also possible to jump from one technique to another. The SCAMPER method is very similar to  Design Thinking  in that both these concepts aim to find solutions to problems . However, Design Thinking places the human factor at the center and its goal is to find creative ways to solve problems . The SCAMPER technique is more focused on the process of finding unusual and creative solutions to problems, but also to come up with innovative ideas , and the goal of improving a product or service.

32. Substitute

33. Examples

34. Combine

35. Examples

36. Adapt

37. Examples

38. Modify

39. Examples

40. Put to Another Use

41. Examples

42. Examples

43. Eliminate

44. Reverse (Rearrange)

45. Examples

46. Examples

47. Why we need SCAMPER SCAMPER can be used either in person or in group brainstorming sessions ( in which there are time constrains and lack of innovative ideas ) DO NOT say “DON’T know” T ry your best to find out the answer for each questions by SCAMPERS ,This is your problem, your job, your work, your opportunity so you should know which are principle questions .

48. Rearrange – make the nib flow outwards Example of applying the SCAMPER technique, below is one potential output of new ideas for a  new version of pen : Substitute – replace nib with knife, ink with iron Combine – holding with opening, writing with cutting Adapt – use the pen top as a container Modify – body can be made flexible Put to other uses – utilize for writing on wood Eliminate – clip utilizing Velcro

49. Examples

50. Some companies set up customer advisory boards that meet regularly to discuss needs, wants, and problems that may lead to new ideas. Customer Advisory Boards

51. A type of anthropological research, where the employees of a company spend a day with a customer. Day-In-The-Life Research

52. Six Thinking Hats 54 COLOURED HAT THINK OF DETAILED DESCRIPTION White paper The white hat is about data and information . It is used to record information that is currently available and to identify further information that may be needed. Fire and warmth The red hat is associated with feelings, intuition, and emotion . The red hat allows people to put forward feelings without justification or prejudice. Sunshine The yellow hat is for a positive view of things . It looks for benefits in a situation. This hat encourages a positive view even in people who are always critical. A stern judge The black hat relates to caution . It is used for critical judgement. Sometimes it is easy to overuse the black hat. Vegetation and rich growth The green hat is for creative thinking and generating new ideas. This is your creative thinking cap. The sky and overview The blue hat is about process control. It is used for thinking about thinking. The blue hat asks for summaries, conclusions and decisions.

53. What are the Six Thinking Hats? Six Thinking Hats or  Edward de Bono ’s Six Hats is a good decision making technique and method for group discussions and individual thinking. Combined with the parallel thinking process, this technique helps groups think more effectively. It is a means to organize thinking processes in a detailed and cohesive manner.

54. What is parallel thinking ??? At any moment everyone is looking in the same direction

55. everybody shares each other’s opinions about the problems, advantages, facts, reducing distraction and supporting thought cross pollination. This will be accomplished because everyone will put on a hat together, for instance the white hat. After the attendants have expressed their thoughts in a round of discussion, they will put on the next hat. In this way all the attendants will think in the same way at the same time . Relationship between 6 Hats &Parallel thinking

56. Uses for Six Hats Problem solving Strategic planning Running meetings Decision Making

57. So the six hats are…? Six colors of hats for six types of thinking Each hat identifies a type of thinking Hats are directions of thinking Hats help a group use parallel thinking You can “put on” and “take off” a hat

58. White Information: consider only information that is available, what are the facts? What The Color Means ?? Are neutral , not negative ,not positive

59. Red Emotions: intuitive reactions or expressions of feelings (but no justification required) Give permission to express feelings freely. express your feelings without justification. Used for a short period: thirty seconds. focus on emotion .

60. Black Judgment: logic applied to identification of mistakes or barriers, looking for a mismatch. Cautions us to make mistakes.   Identify causes of errors? And fears. evaluate behavior

61. Positive view: logic applied to the identification of opportunities, looking for harmony. Yellow Reduces negative tendency. Easy to use. Evaluate attitudes and events Positively . Integrate with black hat .

62. Green Creativity and the generation of new ideas Encourage the search for proposals and alternatives Deepening the culture of innovation and creativity Looking forward to the future Think Out of the Box

63. Thinking about Implementation and work, and control Blue Coordinate and organize Consider using time. Thinking processes guide discussion towards the goal summarizes positions. Urges decision-making Implementation begins

64. Using The Thinking Hats in Team Activities Teams can use these hats in any order during a discussion , but typically progress from blue, to white, to green, to yellow, to red, and finally to black. This order organizes the discussion: Blue : Start with the approach and process White: Review the facts Green : Generate new ideas without judgment Yellow : Focus on the benefits Red : Consider emotional responses to any ideas Black: Apply critical thinking after the benefits have been explored to test the viability of the new ideas

65. Exercise( using the 6 hats in decision making ) Someone suggested adding salt to the ice cream, read the comments and type the hat type thinking in the table?

66. Hat Comment Person I do not like that idea at all? X But perhaps it adds a wonderful vital taste? Y Will not work because salt will dissolve ice cream? Z Sometimes a salted almond is placed in ice cream? R How much salt can be placed until it tastes delicious? M Why do not think about positive points first and then negative points? N

67. Exercise( using the 6 hats in problem Solving ) Escaping students from school Note: One of the hats can be dispensed with

68. Advantages: Easy to learn and teach. Provides a common language Use more of our brains Feeding the focus and thinking side Effective. Create, evaluate & implement action plans   Recognize emotions as an important part of thinking practicing different types of thinking, such as critical thinking, creative and emotional

69. Mind maps, developed by Tony Buzan are an effective method of note-taking and useful for the generation of ideas by associations To make a mind map, one starts in the centre of the page with the main idea, and works outward in all directions, producing a growing and organised structure composed of key words and key images Mindmapping 72

70. Example 73 HW#.1 asking the students to submit a mindmap on the problem generated by the six hats methodology.

71. Establishing a Focal Point for Ideas Encouraging New Ideas Some firms meet the challenge of encouraging, collecting, and evaluating ideas by designating a specific person to screen and track them—for if it’s everybody’s job, it may be no one’s responsibility. Another approach is to establish an idea bank (or vault), which is a physical or digital repository for storing ideas. Encouraging Creativity at the Firm Level Creativity is the raw material that goes into innovation and should be encouraged at the organizational and individual supervisory level.

72. 6.0 Issus you should know…… توليد فكرة عمل Reasons behind people buying a product or service Ideas Generation Strategies : Identify gaps in the local market Develop an existing business model Solve a problem-Resolve a common complaint Take advantage of the recent technology and market trends Take advantage of your strengths, skills and experience Ideas screening

73. 6.1 Reasons behind people buying a product or service People buy the product / service if: توليد فكرة عمل They need it It was something they want/desired Solve a specific problem If your product / service does not meet any of the above criteria, your business idea is not sustainable.

74. 6.2 Ideas Generation Strategies Consider the following points when generating ideas توليد فكرة عمل 2.0 Business ideas not found in your area 4.0 Existing business idea but with competitive advantage ( different) 3.0 Business ideas capable of solving common problems 1.0 Business ideas that benefit from current market trends 5.0 Business ideas that suit your skills and experience

75. Identify gaps in the local market توليد فكرة عمل What activities have you always wanted to do in your area but could not? What services would you like to use (have) if it is locally available ? What products do you want to buy but are not available in your local market? Do you want to eat or drink something but it is not available in your local market? Is there a specific product or service that is traveling to another city / state / village for purchase?

76. Develop an existing business model توليد فكرة عمل What businesses do not seem successful? And why they think so? What businesses are facing a lot of competition? What businesses do not face much competition? What improvements can you add to an existing work? What businesses it seems to be a success? ؟

77. Solve a problem-Resolve a common complaint توليد فكرة عمل What do people in your region usually complain about? What are the things that make life difficult for people / the elderly / families / children / teen agers? What can make life easier for people in your region? Are there certain actions/things people complain about? If the answer is yes, what do they not like in those things?

78. Take advantage of the recent technology and market trends List as you can all innovations and trends for each of the following areas توليد فكرة عمل Clothing Sports Music Entertainment Technology Health Food Is there any business idea you can do to take advantage of a particular discovery / trend?

79. Take advantage of your strengths, skills and experience توليد فكرة عمل What are your hobbies? your interests? Your passion? What do you like/want to do every day? What are your hobbies/interests? What kind of work would you like to do, if you granted or won a large sum of money? What tasks do you have experience/skills in (whether paid or not)? Among those tasks, which one do you enjoy the most? Do you prefer to work alone or with others? What environment do you prefer? (Inside office / in store / outdoor ...)?

80. 7.0 Business Idea Screening توليد فكرة عمل Is this business idea likely has a promising financial return? Do I have the skills to manage this work? If I do not have it, can I employ people to learn or have those skills? Will I be able to raise the money/fund to start this proposed business? Am I able to manage this business? Will I enjoy working in this environment?

81. Later you will learn how: 8.0 Choosing the best Idea Conduct a market survey to see if your business is sustainable and growing Estimating the costs needed and how to raise finance/fund توليد فكرة عمل When choosing your business idea, make sure the following: You will enjoy this work, otherwise you will have difficulty maintaining your motivation on bad days Be realistic, Know your capabilities , and the points you will need help with. Remember, you do not need to know everything, you can take free advice/mentor often or pay for expert opinion.