Project management. Presented by Ratnakar Mate B. E. (Mech.) University of Pune. Project Management 1

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1 Project management Presented by Ratnakar Mate B. E. (Mech.) University of Pune Project Management 1

2 CHAPTER 4 Methods of generating business ideas Chapter 4 Project Management 2

3 Learning Objectives : Business is an economic activity, which is related with continuous & regular production & distribution of goods & services for satisfying human needs & wants. The human culture varies from country to country, state to state, religion to religion, class to class, ethnic group to ethnic group, society to society. Also evolution of human culture is a continuous process., which leads to continuous evolution / change of the human needs & wants. The speed of this change in recent decades has increased due to the globalization & development of the information & technology. Chapter 4 Project Management 3

4 Learning Objectives ( Contd.) : These rapidly changing human needs are giving birth to new business opportunities every day. All business establishments are competing to sense these business opportunities & are engaged in generating new ideas to set & achieve the business targets. In order to manage the projects efficiently & effectively it is very important gain a knowledge about the METHODS OF GENERATING BUSINESS IDEAS. Chapter 4 Project Management 4

5 What is an IDEA? The most commonly accepted definition of idea is An idea is a thought or collection of thought that generates in mind This generation is generally with intention, but unintentional idea generation is not ruled out. Important aspect to note is that one must ensure the mind is kept open & unlocked for the ideas to flow. Chapter 4 Project Management 5

6 Business IDEA A business idea is an idea generated which can be transformed into a viable concept & used for commercial purposes. It typically centers on a commodity or service that can be sold for money. Chapter 4 Project Management 6

7 Creative Environment & Methods for generating Business Ideas There are several methods for generating ideas. These ideas then need to be developed and tested to convert into a business idea. Business ideas, if introduced at the right time, when demand for such service or a product introduced by the idea is expected to surge, can lead to a very profitable business. Business ideas are always available around; however, it is the application of these ideas, and timing makes all the difference in failure or success. Chapter 4 Project Management 7

8 Creative environment for Idea generation A creative and conducive environment is first & foremost requirement for effective & efficient idea generation. Few important tips to ensure such environment. Start with family The term family refers to all the stakeholders especially employees at all levels since they are consistently in touch with the business activities, processes & customers. Tapping family for great business ideas doesn t call for any additional expenditure. For delivering the ideas it is necessary that all the employees are qualified, rightly placed, trained. Also involve the extended family Do not limit yourself & depend your own family ideas use your expanded family. The expanded family refers to the suppliers, business associates, professional service providers, technical advisors, legal advisors & even the business competitors. With the expanded family, may deliver some incredible brilliant business ideas. Chapter 4 Project Management 8

9 Creative environment for Idea generation (contd.) Look at all the things that bug you It may not sound profound, but this is very fertile ground for great business ideas. Here are few examples which generated great business ideas in this area out of a bug. Examples: Tennessee-based Holiday Inn, hotel chains, disposable razors. Tap your expertise & interests "When you're doing something you love, it's never considered work," Thousands of clever people have taken up hobbies and turned them into a successful business. Example: Zagat Survey, which is sold in bookstores worldwide. Chapter 4 Project Management 9

10 Creative environment for Idea generation (contd.) Keep your senses alert on travel Traveling opens your eyes to a plethora of potential business ideas. Example: Leopoldo Fernandez Pujal discovered Domino's Pizza on a trip to the USA & his own version, in Spain called TelePizza, in Keep your eyes open When you see something that piques your interest, ask yourself, What is it about this situation that's special? Then narrow your focus so you home in on the idea. The process of zeroing in on the idea often gives birth to important niche markets. Chapter 4 Project Management 10

11 Creative environment for Idea generation (contd.) Examine old mousetraps--then build a better one "If a product doesn't meet your own high standards, create a better one, Take it to the streets There's no better place to lock into up-and-coming trends than city streets. Street culture spawned punk, hiphop, grunge and a number of fads that are converted into million-dollar businesses in United States. Chapter 4 Project Management 11

12 Creative environment for Idea generation (contd.) Continue Dreaming Many people ignore their dreams, and some don't remember, but it pays to listen to the inner messages, no matter how strange or less intelligent. These may release germ of a great idea. The tough part is to jot down those great ideas before they're forgotten. Check out the Net In the world, where IT EXPLOSIONS are taking place every moment, web surfing as a fun way to log on to potential business ideas. Keeping a consistent check on various sites can lead to the trigger of an idea or concept which is never thought of. Chapter 4 Project Management 12

13 Method of Generating Business Ideas Coming up with an idea to serve as the basis for a new business idea still is the area of concern. Hence it is necessary to clearly understand the several methods of generating business ideas & make use of the correct one or a combination of them. These methods are best suitable for an organization that need expansion in products or services & be rest assured about the future business. Prominent of them are elaborated for better understanding. Chapter 4 Project Management 13

14 Method of Generating Business Ideas (Contd,) Focus Groups A focus group is defined as a group of individuals providing information in a structured format. A moderator leads the group of about 8 to 14 participants through an open, in-depth discussion rather than simply asking questions to solicit participants responses. The moderator focuses the discussion of the group in either a directive or non-directive manner. The group is stimulated by comments from other group members in creatively conceptualizing and developing a new product or service to fill a market need. The focus group is an excellent approach for initial screening of ideas and concepts & also can be used to expand a section or department to achieve greater productivity in its services. Chapter 4 Project Management 14

15 Method of Generating Business Ideas (Contd,) Brainstorming The brainstorming method stimulates group of individual for greater creativity by interacting with each other and participating in organized group experience. Most of the ideas generated from the group have no basis for further development, yet there are chances that a good idea emerges. The chances/ frequency of occurrence will be more, when brainstorming efforts focused on a specific product or market area. For success of the method, certain basic rules which must be followed. There should be no negative comment or criticism. Each participant must be provided with an opportunity to suggest his/ her idea till all such ideas are exhausted. Quantity of ideas should be encouraged. All such ideas generated must be recorded. Chapter 4 Project Management 15

16 Method of Generating Business Ideas (Contd.) Problem Inventory Analysis Problem inventory analysis is a method for obtaining new ideas and solutions by focusing on existing problems. The feedback from customers/ consumers, service & marketing personnel by way of discussions, monitoring & recording complaints is used, in this approach, to identify the source of problem inventory. This method is effective when an improved service/product is desired. to identify the product gaps, the niche in the market. to improve the customer satisfaction index which is vital factor for repeat business opportunity & establish the brand equity value. For maximal result, it is advisable that problem inventory analysis should be used primarily to identify new product ideas from existing product before further evaluation. Chapter 4 Project Management 16

17 Method of Generating Business Ideas (Contd.) Market Research Market research is a very vast & complex subject. Market research is a very powerful method to identify the new avenues of business for expansion/ starting a new business. Very systematically & scientifically conducted Market Research survey may take a longer time & involve some initial expenses. This approach will be helpful to identify business which will maximize the utilization of available expertise, infra-structure & the finances. Chapter 4 Project Management 17

18 Method of Generating Business Ideas (Contd.) Future Planning Long term future planning & constant monitoring of the same to align them with the customer/ market requirements is a very strong approach to generate business ideas & implement the same. Close monitoring of the customers changing needs, identify & jump on the ideas, development of these ideas within shortest possible time & launching them at the right time are prominent factors for the future planning to be efficient & effective. There are business establishments existing for decades & some of them are there for centuries & also have developed a global network. This is possible only with effective & efficient future planning. Chapter 4 Project Management 18