Creativity and the business idea Flashcards
Trends
Wearable, green, health, mobile, maker, payments
Sources of new ideas
Consumers, federal government, distribution channels, existing products, r&d
Innovation
Key to the economic development of the business or the country
Types of innovation
Breakthrough innovation: Usually protected by strong patents, trade secrets and copyright
Technological innovation: Advancements in service/product/market area
Ordinary Innovation: Improving already existing product
Classification of new products
Degree of newness: How much learning and behavioural change is requires by the costumer to use the product?
Continuum for classifying new products:
Continuous innovation - Dynamically continuous innovation - Discontinous innovation
From a firm’s viewpoint
Important diffraction between new product and new markets
Modell of Opportunity Recognition process
Education -> Prior Knowledge of the market
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Workp exp Life exp Entrep. alertness
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v v
Experience networks
Outcome: Successful opportunity recognition
Opportunity recognition
Entrepreneur need the ability to recognise new opportunities
A business opportunity is a possibility for the entrepreneur to successfully fill a large enough unsatisfied need that enough sales and profit result
Product Planning and development process
(Product life cycle)
Criteria for evaluation:
All inclusive
Quantitve
Determine market demand
Determine Characteristics of consumers and industries
Nature of the market
Product development stages
- Idea Stage: allow max use of resources
- Concept stage: Analyse costumer’s response
- Product development stage: Consumer’s reaction to physical product tested
- Test market Stage: Increase certainty of successful commercialisation
- Commercialisation
E-Commerce
Give entrepreneur chance to act creatively and innovatively
-> Basis for new ventures
-> Enables small businesses to minimise costs while reaching broader markets
-> Extend marketing and sales channels
Manage E-Commerce
Full insourcing: Back-End activities, Front-End activities
Hybrid Form
Full outsourcing
E-Commerce Channels
Websites
Dedicated Mobile optimised websites and apps
Doing E-Commerce as an entrepreneurial company
Essential
Reaches Broader markets
Product needs to be able to be shipped outside of geographical location
Cost effective, easy, secure
