Entrepreneurial Development Program-1 MODULE

ENTREPRENEURSHIP
DEVELOPMENT
22MBA12

2
Course Code 22MBA12 CIE Marks 50
Teaching Hours/Week
(L:P:SDA)
4:0:0 SEE Marks 50
Total Hours of
Pedagogy
50 Total
Marks
100
Credits 04 Exam
Hours
03

Course Learning objectives:
• To develop and strengthen entrepreneurial qualities and
motivation among students.
• To impart basic entrepreneurial skills and understandings to
run a business efficiently and effectively.
• To provide insights to students on entrepreneurship
opportunities, sources of funding and institutions supporting
entrepreneurs.
• To make students understand the ways of starting a company
of their own.
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• Introduction to Entrepreneur & Entrepreneurship: Meaning of entrepreneur.
• Evolution of the concept - Functions of an Entrepreneur.
• - Types of Entrepreneurs - Intrapreneur- an emerging class - Concept of
Entrepreneurship.
• -Entrepreneurial Culture - Stages in entrepreneurial process.
• Creativity and Innovation: The role of creativity , The innovation Process , Sources of
New Ideas.
• Methods of Generating Ideas , Creative Problem Solving.
• Entrepreneurial Process.
Module-1 (7 Hours)

Introduction
The words entrepreneur and entrepreneurship have
acquired special significance in the context of
economic growth in a rapidly changing socio-
economic and socio-cultural climates, particularly in
industry, both in developed and developing
countries.
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Introduction to Entrepreneur
•The entrepreneur as a person brings in overall
change through innovation for the maximum
social good. Human values remain sacred and
inspire him to serve society.
•The entrepreneur is a visionary and an integrated
man with outstanding leadership qualities. With
a desire to excel, he gives top priority to
Research and Development.
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Introduction to Entrepreneurship
• Entrepreneurship refers to all those activities which are to be carried
out by a person to establish and to run the business enterprises in
accordance with the changing social, political and economic
environments.
• Entrepreneurship includes activities relating to the anticipation of the
consumers likes and dislikes, feelings and behaviors, tastes and
fashions and the introduction of business ventures to meet out all these
expectations of the consumers.
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Introduction to Entrepreneurship
• Entrepreneurship is the ability of entrepreneurs to assess
the risks and establish businesses which are risky but at
the same time suits perfectly to the changing scenarios
of the economy.
• The two major factors determine the entrepreneurship
developments are:
• Risk taking ability of entrepreneurs and
• Power of achievement of entrepreneurs
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Meaning of entrepreneurship
•Entrepreneurship “Entrepreneurship is the act
of being an entrepreneur, which can be
defined as “one who undertakes innovations,
finance and business acumen in an effort to
transform innovations into economic goods.”
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•Social entrepreneurship that applies the
“entrepreneurial principles to organize, create and
manage a venture to achieve social change” and
•Political entrepreneurship or “starting a new
political project, group, or political party.”
•No society can exist without entrepreneurship.
Every society depends on entrepreneurs.
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Meaning of entrepreneur
• An entrepreneur is an individual who creates a new
business, bearing most of the risks and enjoying most
of the rewards.
• The entrepreneur is commonly seen as an innovator, a
source of new ideas, goods, services, and business/or
procedures.
• A person who undertakes the risk of starting a new
business venture is called an entrepreneur.
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Meaning of entrepreneur
“Entrepreneur is one who innovates, raises money,
assembles inputs, chooses managers and sets the
organisation going with his ability to identify them and
opportunities which others are not able to identify and is
able to fulfill such economic opportunities. Innovation
occurs through
i) Introduction of a new quality in a product
ii) New product
iii) Discovery of fresh demand and fresh sources of
supply
iv) Change in the organization and management”.
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ENTREPRENEUR
ENTREPRENEURS
HIP Enterprise
Person Process of
Action Object

Entrepreneurial Behaviours
• grasping opportunity
• taking initiative
• solving problems creatively
• managing autonomously
• taking responsibility for, and ownership of, things
• seeing things through
• networking effectively to manage interdependence
• putting things together creatively
• using judgement to take calculated risk
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Entrepreneurial Attributes
•achievement orientation and ambition
•self-confidence and self-esteem
•Perseverance(continued effort)
•high internal locus of control (autonomy)
•action orientation
•preference for learning by doing
•hard-working
•determination
•creativity
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Entrepreneurial Skills
•creative problem-solving
•persuading
•Negotiating, selling
•proposing
•holistically managing business/projects/
situations
•strategic thinking
•intuitive decision making under uncertainty
•networking
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Evolution of the Concept
• The word ‘Entrepreneurship’ appeared first, in French
according to Encyclopedia Britannica.
• In the early 16th Century, it was applied to those who
were engaged in Military expeditions.
• In the 17th Century, it was extended to cover civil
engineering activities such as construction fortification.
• The word itself derived from 17th Century French
entrepreprendre, refers to individuals who were
‘undertakers’ meaning those who “undertook” the risk of
new enterprise. They were “contractors” who bore the
risks of profit or loss.
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Evolution of the Concept
•Entrepreneurship started catching up in 1980s just
as professionalism in management caught up
during 1970s.
•However, confusion still prevails as to what
exactly we mean by the term ‘entrepreneur’.
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Functions of an Entrepreneur
•Risk Absorption
•Formulate Strategic Business Decisions
•Execute Managerial Functions
•Adopt Innovation Function
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Characteristics of Entrepreneur
1. Facilitating Character:
2. Self-Confidence:
3. Work with Vision and Mission:
4. High Degree of Endurance:
5. Trouble Shooting Nature:
6. Initiative and Enterprising Personality:
7. Goal Setter:
8. Calculated Risk-Taking:
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Entrepreneurial Development Program-1 MODULE

Types of Entrepreneurs
Entrepreneurs are classified under different heads as
given below. This helps the potential entrepreneurs to
choose his own nature and style of entrepreneurship.
• Business Entrepreneur: Business entrepreneurs are
individuals who conceive an idea for a new product or
service and then create a business to materialize their
idea into reality. They tap both production and
marketing resources in their search to develop a new
business opportunity.
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Industrial Entrepreneur:
Industrial entrepreneur is essentially a manufacturer who
identifies the potential needs of customers and tailors
product or service to meet the marketing needs.
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Corporate Entrepreneur: Corporate entrepreneur is a
person who demonstrates his innovative skill in
organising and managing a corporate undertaking. A
corporate undertaking is a form of business organisation
which is registered under some statute or act which gives
it a separate legal entity. A corporate entrepreneur is thus
an individual who plans, develops and manages a
corporate body.
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Agricultural Entrepreneur :
Agricultural entrepreneurs are those entrepreneurs who
undertake such agricultural activities as raising and
marketing of crops, fertilizers and other inputs of
agriculture according to the use of Technology.
Ex: Pramod, a former automobile engineer who switched
to farming in 2006, Sachin is a mechanical engineer in
2013 switched to argriculture
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Technical Entrepreneur :
A technical entrepreneur is essentially an
entrepreneur of “Craftsman type”. He develops a
new and improved quality of goods because of his
craftsmanship. He concentrates more on production
than marketing.
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Incubative Entrepreneurship
The generation of new sort of ideas and ventures within
the premises of the organization is involved in this
category of Entrepreneurship. It manages it in a
productive way and makes sure the material gain for the
business firm.
• Ex: some of the tech companies like Microsoft and
Nokia always discover and promote new technologies in
a wide range of products and forms differentiation
among all the categories of the products in the
marketplace.
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Professional Entrepreneur: Professional entrepreneur is
a person who is interested in establishing a business but
does not have interest in managing or operating it once it
is established. Professional entrepreneurs generate ideas,
develop them and sell it. They could also start a venture
and sell it. Professional entrepreneurs usually have
multiple ideas and never stick to one venture.
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Based on their working relationship with the business
environment they are functioning in, various types of
entrepreneurs can be found. The chief categories are these
four types of entrepreneurs, i.e.
1. Innovative entrepreneurs
2. Imitating Entrepreneurs
3. Fabian Entrepreneurs and
4. Drone Entrepreneurs.
5. Hustler entrepreneurship
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•Innovative Entrepreneurs : This type of an
entrepreneur is more interested in introducing
some new ideas into the market, organization or in
the nation. They are drawn towards innovations
and invest a lot of time and wealth in doing
research and development.
•People like Steve Jobs and Bill Gates are
examples of innovative entrepreneurs.
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• Imitating Entrepreneurs: These are often disparagingly
referred to as copy cats‘. They observe an existing
successful system and replicate it in a manner where all
the deficiencies of the original business model are
addressed and all its efficiencies are retained.
• These entrepreneurs help to improve an existing product
or production process and can offer suggestions to
enhance the use of better technology.
• All small car manufactures are now the imitating
entrepreneurs
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• Imitators are entrepreneurs who use others' business
ideas as inspiration but work to improve them. They
look to make certain products and services better and
more profitable.
• An imitator is a combination between an innovator and a
hustler. They are willing to think of new ideas and work
hard, yet they start by copying others. People who are
imitators have a lot of self-confidence and
determination. They can learn from others' mistakes
when making their own business.
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• Fabian Entrepreneurs: These are entrepreneurs that are very
careful in their approaches and cautious in adopting any changes.
They are not prone to sudden decisions and try to shy away from
any innovations or change that doesn‘t fit their narrative. Ex:
Kodak company. Tom Anderson who is a second-generation
entrepreneur and does not want to take the risk.
• Drone Entrepreneurs: These are entrepreneurs who do not like
a change. They are considered as old school‘. They want to do
business in their own traditional or orthodox methods of
production and systems. Such people attach pride and tradition
to even outdated methods of doing business.
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• Hustler entrepreneurship: People who are willing to work
hard and put in constant effort are considered hustler
entrepreneurs. They often start small and work toward
growing a bigger business with hard work rather than
capital. Their aspirations are what motivates them, and
they are willing to do what it takes to achieve their
goals.
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Top 10 Indian Entrepreneurs
1. Dhirubhai Ambani
2. Jehangir Ratanji Dadabhoy Tata
3. Nagavara Ramarao Narayana Murthy
4. Shiv Nadar
5. Lakshmi Niwas Mittal
6. Ghanshyam Das Birla
7. Dilip Shanghvi
8. Azim Premji
9. Mukesh Jagtiani
10. Ardeshir Godrej
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Based on Ownership:
1. Private Entrepreneur: A private entrepreneur is one
who as an individual sets up a business enterprise. He /
she is the sole owner of the enterprise and bears the entire
risk involved in it.
2. State Entrepreneur: When the trading or industrial
venture is undertaken by the State or the Government, it is
called ‘state entrepreneur.’
3. Joint Entrepreneurs: When a private entrepreneur and
the Government jointly run a business enterprise, it is
called ‘joint entrepreneurs.’
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Based on the Size of Enterprise
1. Small-Scale Entrepreneur: An entrepreneur who has
made investment in plant and machinery up to Rs 1.00
crore is called ‘small-scale entrepreneur.’
2. Medium-Scale Entrepreneur: The entrepreneur who has
made investment in plant and machinery above Rs 1.00
crore but below Rs 5.00 crore is called ‘medium-scale
entrepreneur.’
3. Large-Scale entrepreneur: The entrepreneur who has
made investment in plant and machinery more than Rs
5.00 crore is called ‘large-scale entrepreneur.’
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Entrepreneur and Entrepreneurship
BASIS FOR
COMPARISON
ENTREPRENEUR ENTREPRENEURSHIP
Meaning An entrepreneur is an individual or a
team thereof, having an innovative
idea, and takes every step to turn the
idea into reality, while bearing the
risks.
Entrepreneurship is a risky activity of
commencing a business usually a start
up company, offering distinct products
and services to the target customers,
which may or may not get success.
What is it? Person who has an idea and gives shape
to it.
Process which gives shape to the idea.
Represents An innovator, who chased the dream,
till it becomes true.
A procedure through which an
innovation is done.
Business
Venture
He/She is the one who sets up the
business venture, to turn a concept into
reality.
It is the activity, which an entrepreneur
undertakes to set up the business
venture.

Intrapreneur
• Intrapreneurship is the act of behaving like an entrepreneur while
working within a large organization
• A person within a large corporation who takes direct
responsibility for turning an idea into a profitable finished
product.
• An intrapreneur works inside a company to develop an innovative
idea or project that will enhance the company's future.
• Many top MNCs, including Google Inc. and Microsoft Corp.,
offer intrapreneurial programs in separate R&D departments.

Intrapreneur-Meaning
• Intrapreneur meaning refers to the ambitious employees in an
organization, who have a passion, skill, and drive to convert
unique ideas and concepts into new products and services, which
would add to the list of offerings of their employer.
• An intrapreneur is an inside entrepreneur, or an entrepreneur
within a large firm, who uses entrepreneurial skills without
incurring the risks associated with those activities.
• Intrapreneurs are usually employees within a company who are
assigned to work on a special idea or project, and they are
instructed to develop the project like an entrepreneur would.

Intrapreneur
•Pinchot defined intrapreneurs as “dreamers who do.
Those who take hands-on responsibility for creating
innovation of any kind, within a business”.
•According to The American Heritage Dictionary
intrapreneur, means “A person within a large
corporation who takes direct responsibility for turning
an idea into a profitable finished product through
“assertive risk-taking and innovation”.

Entrepreneur & Intrapreneur
BASIS FOR
COMPARISON
ENTREPRENEUR INTRAPRENEUR
Meaning Entrepreneur refers to a person
who set up his own business with a
new idea or concept.
Intrapreneur refers to an employee of the
organization who is in charge of undertaking
innovations in product, service, process etc.
Approach Intuitive Restorative
Resources Uses own resources. Use resources provided by the company.
Capital Raised by him. Financed by the company.
Enterprise Newly established An existing one
Dependency Independent Dependent
Risk Borne by the entrepreneur himself. Taken by the company.
Works for Creating a leading position in the Change and renew the existing organizational

Basis for
comparison
Entrepreneur Intrapreneur
Core
objective
To innovate something new
socio economic value
To increase competitive strength
and market sustainability of the
organization
Activity Direct and total participation
in the process of innovation
Direct participation which is
more than delegation
Decision Independent decisions to
execute dreams
Collaborative decision to execute
dreams
Operation Operation from outside the
organization
Operation from inside the
organization
Entrepreneur & Intrapreneur

Entrepreneurial Culture
• Entrepreneurial culture implies a set of values, norms and traits that
are conducive to the growth of entrepreneurship.
• It is the corporate culture that focuses on the emergence of new
opportunities, the means of capitalizing of them, and the creation of
the structure appropriate for pursuing them. Entrepreneurial culture
should be differentiated from administrative culture.
• An Entrepreneurial Culture consists of a group of individuals who
have suppressed individual interests in an effort to achieve group
success because group success will advance their individual interest.
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• The prerequisite for an entrepreneurial culture is a massive
reorientation in policies and attitudes, and above all, in priorities.
We need to encourage habits of flexibility, of continuous learning,
and of acceptance of change as normal and as opportunity - for
institutions as well as for individuals.
• An entrepreneurial culture is an environment where someone is
motivated to innovate, create and take risks.
• In a business, an entrepreneurial culture means that employees are
encouraged to brainstorm new ideas or products. When work time
is dedicated to these activities, it is called intrapreneurship.
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Culture encompasses variety of elements such as values,
norms and artifacts.
• Values: these are ideas about what is important in life.
They guide the society.
• Norms: they are expectations about how people will
behave in different situations. Norms that society enforces
are called laws.
• Artifacts: these refers to the material culture. They are
derived from the cultural norms and values.
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Entrepreneurship Process
•Entrepreneurship is the process or activity, of initiating,
developing, managing and operating a startup company, while
taking all the risks involved, so as to make profits. It is one of
the four factors of production, the other being land, labour,
capital.
•Entrepreneurship process is a defined as sequence of ideas,
techniques, plans and programmed essentials for establishing
a new venture. The entrepreneurship is responsible for
identifying, evaluating, developing and managing different
resources.
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Stages in Entrepreneurial Process
Stage I: Perceiving, identifying and evaluating
Opportunity
•Creation & scope of opportunity
•Perceived and actual worth of the opportunity
•Risks and profits involved in the opportunity
•Competitors analysis
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Stage II: Drawing up a Business Plan
•Executive Summary
•Concept of the business
•Management Team
•Production / Marketing & Sales / Finance Plans
Structure and operation
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Stage III: Marshalling Resources Stage
IV: Creating the Enterprise Stage
V: Consolidation and Management
•Critical factors to success
•Management Style
•Identify present & potential problems
•Implementing a control system
•Professionalize the management
•Get into new markets
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Stages in Entrepreneurial Process-I
• An entrepreneurial process begins with the idea generation, wherein the
entrepreneur identifies and evaluates the business opportunities.
• The identification and the evaluation of opportunities is a difficult task; an
entrepreneur seeks inputs from all the persons including employees,
consumers, channel partners, technical people, etc. to reach to an optimum
business opportunity.
• Once the opportunity has been decided upon, the next step is to evaluate it.
• An entrepreneur can evaluate the efficiency of an opportunity by
continuously asking certain questions to himself, such as, whether the
opportunity is worth investing in, is it sufficiently attractive, are the
proposed solutions feasible, is there any competitive advantage, what are
the risk associated with it.
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Stages in Entrepreneurial Process-II
•Once the opportunity is identified, an entrepreneur needs to
create a comprehensive business plan.
• A business plan is critical to the success of any new
venture since it acts as a benchmark and the evaluation
criteria to see if the organization is moving towards its set
goals.
•An entrepreneur must dedicate his sufficient time towards
its creation, the major components of a business plan are
mission and vision statement, goals and objectives, capital
requirement, a description of products and services, etc.
•A well drafted business plan serves as a road map to the
entrepreneur to guide and monitor his/her activities towards
the set goals.
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Stages in Entrepreneurial Process-III
•The third step in the entrepreneurial process
is resourcing, wherein the entrepreneur
identifies the sources from where the
finance and the human resource can be
arranged.
•Here, the entrepreneur finds the investors
for its new venture and the personnel to
carry out the business activities.
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Stages in Entrepreneurial Process- III
The resources may be as follows,
1. Technical resources need for production purpose in order
to develop quality products.
2. Financial resources like cash-in-hand equity and
borrowing authorities.
3. Physical resources in the form of assets such as buildings
machinery equipment, and vehicles.
4. Human resources including skilled and experienced
employees and workers with emotional and intellectual
abilities.
5. Intangible resources such as information, networks,
protected patents, latest technology, and brand recognition
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Stages in Entrepreneurial Process- IV
•Once the funds are raised and the
employees are hired, the next step is to
initiate the business operations to achieve
the set goals.
•First of all, an entrepreneur must decide the
management structure or the hierarchy that
is required to solve the operational
problems when they arise.
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•The final step in the entrepreneurial process is
harvesting wherein, an entrepreneur decides
on the future prospects of the business, i.e. its
growth and development.
•Here, the actual growth is compared against
the planned growth and then the decision
regarding the stability or the expansion of
business operations is undertaken
accordingly, by an entrepreneur.
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•In the last stage of entrepreneurship procured resources are
utilized for effective implementation of business plan.
•Along with implementing business plan, management of the
enterprise is also crucial. For effective management of the
enterprise entrepreneur develops an appropriate
organizational structure and style key success factors are
also determined in this stage.
• This is the most challenging stage of entrepreneurship as
some entrepreneurs fail to manage and grow the enterprise.
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Creativity
•Creativity is the “ability to bring something new into
existence”.
•This definition emphasizes the “ability”, not the
“activity”, of bringing something new into existence.
• A person may therefore conceive of something new
and envision how it will be useful, but not necessarily
take the necessary action to make it a reality.
• Innovation is the process of doing new things, but
creativity is a prerequisite to innovation.
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Creativity-Process
•The preparation stage of the creative process often
begins with gathering research and defining objectives.
•The incubation stage involves considering and
developing a project by allowing creative juices to flow
and brainstorming numerous directions for the project
to take place.
•The illumination stage can be thought of as the
"lightbulb" moment when all of the brainstorming and
planning begins to come together in one's mind. The
illumination stage is often when a project's direction or
framework is developed.
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Creativity-Process
•The evaluation stage can take place before and after the
implementation process.
•Evaluating productivity, testing the idea's chances for
success, and evaluating prior projects and comparing them
to the current project, is a useful part of the process to
assess whether or not this project will be successful and if
the process can be replicated/needs more development.
•The fifth and final stage is the implementation stage,
where one puts all of one's plans into motion and brings a
project through the different drafting stage.
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Innovation
• Entrepreneurial innovation deals with the introduction of new concept,
a new way of doing things, or a new approach.
• Innovation can also be in terms of new technology, new techniques of
production, new sources and types of raw materials, novel machinery,
new labour saving devices, new packaging techniques product
development.
• Innovation refers to the process of bringing new, problem solving
ideas into use.
• The ideas may be related to reorganizing, cutting costs, establishing
new budgeting system, improving communication etc.,
• Comprehensively speaking, innovation involves generation,
acceptance and implementation of new ideas, processes, products or
services.
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Innovation
•Peter Drucker saying that innovation is an important tool of
an entrepreneur, as he perceives new opportunity; convert
this opportunity into attractive projects and become market
leader.
•Innovation is the conversion of new knowledge into new
products and services. Innovation is about creating value and
increasing productivity, and therefore, making your business
grow.
•Innovation is the essential for entrepreneurial motivation.
•Innovation gives money. Innovation must be knowledge
based. Scientific knowledge is the base for innovation.
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Innovation process
•The innovation process describes the path of
translating new and/or existing knowledge into
marketable solutions.
•Companies that pursue a successful innovation
process have something decisive that puts them ahead
of others - they have designed the path of an idea from
generation, through development, to market entry.
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Innovation process
Step 1. Idea Generation
•It is where you decide on the concept that you want to
develop and come up with reasons why you want to improve
the idea.
•It is important for you to involve your employees and
customers. Involving many knowledgeable people will
enable you to get a better understanding of the market.
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Innovation process
Step 2. Advocacy and Screening
•Not every idea that is generated is worth
implementing, for that reason; you must screen all
the ideas presented. When screening, ensure you
measure the benefits and risks of each idea to
determine its viability.
•Any idea that has a futuristic approach should be
chosen for the next stage.
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Innovation process
Step 3. Experimentation
•At this stage, the idea is tested using a pilot test. The
test takes place within a targeted market. As you test
your product, remember you want to know if the
customers will accept it, if the price is acceptable,
and if they like the innovation. The aim is to test if
the idea is ideal and suitable for the company at a
particular time.
•Therefore, if an idea is too complex for the
organization or it’s a premature idea, then it should
not be implemented.
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Innovation process
Step 4. Commercialization
•When you get to this stage, just know the product is
ready for the market. The major work at this stage is to
persuade your target audience that the innovation is
good for them.
•To do this, explain how the innovation will be of use to
them, when it will be used, and demonstrate the benefits
of the innovation using the prototypes. Be very specific
about the idea in regards to any information that could
attract customers to your idea.
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Innovation process
Step 5. Diffusion and Implementation
•Diffusion and implementation are two different stages:
diffusion is where the company accepts the innovation and
implementation is setting up everything that is needed to
develop and utilize or produce the innovative idea.
•Knowledge brokers are used to diffuse the idea in an
organization. The knowledge brokers communicate the
specification about the idea and its usability. This
information helps your employees to understand the idea in
a deeper way. After they understand it, then they implement
the idea.
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Sources of New Idea
• Some of the more frequently used sources of ideas for entrepreneurs
include:
• Consumers, Existing Products and Services, Distribution Channels, the
Government and Research and Development.
Consumers
• Potential entrepreneurs should continually pay close attention
customers. This attention can take the form of informally monitoring
potential ideas and needs or formally arranging for consumers to have
an opportunity to express their opinions. Care needs to be taken to
ensure that the idea or need represents a large enough market to support
a new venture.
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Sources of New Idea
Existing products and services/Existing organization
• Potential entrepreneurs and intrapreneurs should also establish a formal
method for monitoring and evaluating competitive products and services on
the market. Frequently, this analysis that may result in a new product or
service that has more market appeal.
• Competing products and services of existing organizations and evaluation
thereof is a successful source of new ideas.
Distribution Channels
• Members of the distribution channels are also excellent sources for new ideas
because of their familiarity with the needs of the market. Not only do channel
members frequently have suggestions for completely new products, but they
can also help in marketing the entrepreneur’s newly developed products.
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Sources of New Idea
Government
• The federal government can be a source of new product
ideas in two ways. First , the files of the patent Office
contain numerous new product possibilities. Although
the patents themselves may not be feasible, they can
frequently suggest other more marketable product ideas.
Several government agencies and publications are
helpful in monitoring patent applications.
• Other government agencies, such as the Office of
Technical Services, assist entrepreneurs in obtaining
specific product information.
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Sources of New Idea
• Secondly, new product ideas can respond to government
regulations, industrial policy, investment guidelines, annual plan,
Five-year plan, etc.
• Thirdly, several government agencies nowadays assist
entrepreneurs in discovering evaluating business ideas.
• Fourthly, government publications on trade and industry can also
help set new venture ideas.
Research and Development
• The largest source of new ideas is the entrepreneur’s own
“research and development.
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Sources of New Idea
Trade Shows, Fairs aid Exhibitions
• These sources display new products and innovations in processes
and services. An innovative entrepreneur can get product ideas to
adapt or modify and produce with indigenous materials and
technology.
Focus Groups
• Focus groups are good sources of product ideas. A moderator leads
a group of people through an open, in-depth discussion rather than
simply asking questions to solicit participant response; for a new
product area, the moderator focuses the group’s discussion in
either a directive or a nondirective manner.
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Ideas into Opportunities
• The Product Planning and development process is divided
into five major stages. These are:
• Idea Stage
• Concept Stage
• Product Development Stage
• Test marketing Stage
• Commercialization
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• Idea Stage: Promising new product/service ideas should be
identified and impractical ones eliminated in this stage.
• Concept Stage: In this stage, the refined idea is tested to
determine consumer acceptance. Initial reactions to the
concept are obtained from potential customers or members of
the distribution channel as appropriate.
• Product Development Stage: In this stage, consumer
reaction to the product/service is determined. One tool
frequently used in this stage is the consumer panel, in which a
group of potential consumers is given product samples.
Participants keep a record of their use of the product and
comment on its virtues and deficiencies.
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• Test marketing Stage: This last stage in the evaluation
process provides actual sales results, which indicate the
acceptance level of consumers. Positive test results
indicate the degree of probability of a successful product
launch and company formation.
• Commercialization Stage: In this stage products are
launched on a mass scale in the market. Here the product
life cycle: Introduction, Growth, Maturity and Decline
stages are followed.
Presentation title
81

Creative Problem Solving
•Creativity is an important attribute of a successful
entrepreneur. Unfortunately, creativity tends to
decline with age. Creativity can be unlocked and
creative ideas and innovations generated by using
any of the creative problem-solving techniques.
• Creative Problem Solving may be defined as a
problem solving technique that addresses a
challenge or problem in a creative manner. The
solution is creative because it is not obvious.
Presentation title
82

Creative problems solving techniques
1. Brainstorming
2. Heuristics
3. Reverse Brainstorming
4. Synectics
5. The Gordon Method
Presentation title
83

1. Brainstorming
• This is probably the most well known and widely used
techniques for both creative problem solving and idea
generation. Brainstorming can generate ideas about a
problem within a limited time frame through the
spontaneous contribution of participants.
• For example, if you along with some of your
colleagues are trying to come up with a tagline for
your product. And each one of you gives your ideas,
then that is called brainstorming.
Presentation title
84

1. Brainstorming
• When using brainstorming, these rules should be followed:
• No criticism is allowed by anyone in the group-no negative
comments.
• Freewheeling is encouraged- the wilder the idea, the better.
• Quantity of ideas is desired-the greater the number of ideas, the
greater the likelihood emergence of useful ideas.
• Combination and improvements of ideas are encouraged; ideas of
others can be used to produce still another new idea.
• The brainstorming session should be fun, with no one dominating
or inhibiting the discussion.
Presentation title
85

2. Heuristics
• A heuristic is a mental shortcut that allows people to solve
problems and make judgments quickly and efficiently.
Heuristic techniques are not a formal problem-solving model
as such, but can be used as an approach to problem solving,
where solutions are not expected to produce a perfect or
optimal solution.
• Heuristics are physiological concepts for simple, efficient
rules that help to explain how people solve problems.
• For example, an educated guess is based on knowledge and
experience, but excludes what you have yet to learn.
Presentation title
86

3. Reverse Brainstorming
• This is a group method for obtaining new ideas while
focusing on the negatives. In reverse brainstorming
criticism is allowed as against the brainstorming
approach.
• The technique is based on finding fault by asking the
question “in how many ways can this idea fail”. With
the fact that it focuses on the negative aspects of a
product or service, the group’s morale must be
maintained in the right direction.
•This approach can be effectively used before other
creative techniques to stimulate innovative thinking.
Presentation title
89

•Synectics
• The term synectics is derived from a Greek word that
roughly means "bringing together disparate ideas that may
appear unrelated." Synectics aims to understand and
facilitate the cooperation of different people with differing
ideas in order to develop creative solutions to problems.
Presentation title
90

• The study and application of synectics is based on three assumptions:
• The creative process is not relegated to innate talent or special ability.
Instead, it is something that can be deliberately taught.
• The creative process is the same, whether it's applied to works of art
or scientific inquiry.
• The creative process works the same way for both individual and
group endeavors.
Presentation title
91

• The Gordon Method
• The Gordon method involves developing new ideas when the
individuals are unaware of the problem. This implies that group
members do not know the exact nature of the problem.
• The entrepreneur begins by mentioning a general concept associated
with the problem. The group thereafter responds by expressing a
number of ideas. This can then lead to a concept being developed,
followed by related concept through guidance by the entrepreneur.
Presentation title
92

•Crowdsourcing involves teams of amateurs and
non-experts working together to form a solution to a
problem. The challenge is to take a cautionary
approach to the ‘wisdom of the crowd’.
• For example, an ice cream company could generate
interest by hosting a contest to determine the name
and ingredients of a new ice cream flavor.
Presentation title
93

Discover new ways to look at things
differently.
• Imagine that you're vacuuming your house in a hurry
because you've got friends coming over. Frustratingly,
you're working hard but you're not getting very far. You
kneel down, open up the vacuum cleaner, and pull out the
bag. In a cloud of dust, you realize that it's full... again.
Coughing, you empty it and wonder why vacuum cleaners
with bags still exist!
Presentation title
94

Discover new ways to look at things
differently.
• James Dyson, inventor and founder of Dyson® vacuum cleaners, had
exactly the same problem, and he used creative problem solving to
find the answer. While many companies focused on developing a
better vacuum cleaner filter, he realized that he had to think
differently and find a more creative solution. So, he devised a
revolutionary way to separate the dirt from the air, and invented the
world's first bagless vacuum cleaner.
Presentation title
95

Agenda
Presentation title
96
Google
Facebook
Unilever
Hulu
Disney and Universal.

Primary goals
Introduction to Marketing:
In the face of a digital revolution and other major changes in the business environment, good marketing today is both increasingly vital and
radically new. Consider Unilever.1

Quarterly performance
4.5
3.5
2.5
4.3
2.8
1.8
4.4
2.4
5.0
3.0
2.0 2.0
-
1.0
2.0
3.0
4.0
5.0
6.0
Q4 Q3 Q2 Q1
Series 3 Series 2 Series 1
Presentation title
98

Areas of growth
B2B Supply chain ROI E-commerce
Q1 4.5 2.3 1.7 5.0
Q2 3.2 5.1 4.4 3.0
Q3 2.1 1.7 2.5 2.8
Q4 4.5 2.2 1.7 7.0
Presentation title
99

Business opportunities are like
buses. There's always another
one coming.
Richard Branson
”
“

Meet our team
Takuma Hayashi
President
Mirjam Nilsson
Chief Executive Officer
Flora Berggren
Chief Operations
Officer
Rajesh Santoshi
VP Marketing
Presentation title
101

Meet our extended team
Takuma Hayashi
President
Graham Barnes
VP Product
Mirjam Nilsson
Chief Executive Officer
Rowan Murphy
SEO Strategist
Flora Berggren
Chief Operations Officer
Elizabeth Moore
Product Designer
Rajesh Santoshi
VP Marketing
Robin Kline
Content Developer
Presentation title
102

Plan for product launch
Planning
Synergize
scalable e-
commerce
Marketing
Disseminate
standardized
metrics
Design
Coordinate e-
business
applications
Strategy
Foster
holistically
superior
methodologies
Launch
Deploy strategic
networks with
compelling e-
business needs
Presentation title
103

Timeline
Presentation title
104
Synergize scalable e-
commerce
Sep 20XX
Disseminate standardized
metrics
Nov 20XX
Coordinate e-business
applications
Jan 20XX
Foster holistically superior
methodologies
Mar 20XX
Deploy strategic networks with
compelling e-business needs
May 20XX

Areas of focus
Presentation title
105
B2B market scenarios
• Develop winning strategies to keep ahead of the
competition
• Capitalize on low-hanging fruit to identify a
ballpark value
• Visualize customer directed convergence
Cloud-based opportunities
• Iterative approaches to corporate strategy
• Establish a management framework from the
inside

Summary
At Contoso, we believe in giving 110%. By using our next-generation data architecture,
we help organizations virtually manage agile workflows. We thrive because of our
market knowledge and great team behind our product. As our CEO says, "Efficiencies
will come from proactively transforming how we do business."
Presentation title
106

Thank you
Mirjam Nilsson
mirjam@contoso.co
m
www.contoso.com

Entrepreneurial Development Program-1 MODULE

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