CREATIVE PROBLEM SOLVING TECHNIQUES FOR BUSINESS ORGANIZATIONS

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.

An effective approach to brainstorming is to starts with a problem statement that is neither

two broad nor too narrow. Once the problem statement is clear, a minimum of six and a
maximum of twelve individuals are selected to participate.

As a guiding rule, no group member should be recognized as expert in the field of the
problem. Every idea, no matter how illogical must be recorded and analyzed.

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
groups morale must be maintained in the right direction.

This approach can be effectively used before other creative techniques to stimulate
innovative thinking.

This method produces some worthwhile results as it is easier for an individual to be critical
about an idea than to come up with a new idea.

Brainwriting

This is a form of written brainstorming. Brainwriting differs from the classical brainstorming
by giving participants more time to think than in brainstorming session, where ideas are
expressed spontaneously.

It is a silent, written generation of ideas by a group of people. The participants write their
ideas on a special card, which circulates within the group (usually six members).

Each group member generates and writes down three ideas during a five-minute period. The
card is passed on to the adjacent person, who writes down three new ideas and so on, until
each form has passed all participants.

A moderator or group leader monitor the time intervals and can reduce or increase the time
given to participants with respect to the needs of the group.
A variation of this idea-generation method is that participants are located at their respective
work-place, separated by distance and the card are rotated by e-mail, in this case the
interval can be longer.

Checklist Method

In this method, a new idea is developed through a list of related issues or suggestions.

The entrepreneur uses a list of questions or statements to guide the direction of developing
entirely new ideas or focusing on specific idea areas.

Collective Notebook Method

In the collective notebook method, a small notebook that easily fits in a pocket containing a
statement of the problem, blank pages and any pertinent background data is distributed to
participants.

Participants are expected to consider the problem and its possible solutions recording ideas
at least once or three times daily. At the end of the week, a list of the best ideas is
developed, together with any suggestions.

Each participant now submits their notebooks to a central coordinator who summarizes all
the materials and lists the ideas in order of frequency of mention.

The summary thereafter becomes the topic of a final creative focus group discussion by the
group participants.

Free Association

Free association is a method of developing new idea through a chain of word association.
This technique is helpful in developing an entirely new angle to a problem.

The process involve a word or phrase relating to the problem being written down, then
another and another, with each new word attempting to add a new idea to the ongoing
thought processes, finally creating a chain of ideas ending with the new product idea
merging.

This is the simplest yet most effective method that an entrepreneur can employ.

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.

At last the actual problem is revealed, enabling the group to make suggestion for the
implementation or refinement of the final solution.

Forced Relationship

This is a process of forcing relationship among some product combinations and their
features. It is a technique that asks questions about objects or ideas in an effort to develop a
new idea.

The new combination and eventual concept emerged through a five step process given
below

- Isolation of elements of the problem.

- Establish relationships between these elements.

- Record the relationships in an orderly manner.

- Analyze the emerging relationship to find ideas or pattern.

- Develop new idea from these patterns.

Big-Dream Approach

Here the entrepreneur dreams about the problem and its solution. He or she thinks big. In
this approach, every possibility is recorded and investigated or the resources required
documented.

To the entrepreneur idea are conceptualized without any constraint until an idea is
developed into a workable form.

Attribute Listing

Attribute listing is an idea-finding technique that requires entrepreneurs to list the attributes
of an item or problem and then look at each from different perspectives.

Through this method, originally unrelated objects can be brought together to form a new
combination and possible new uses that better satisfy a need.
In summary, attribute listing refers to a method of developing a new idea by looking at the
positives and negatives.

Parameter Analysis

This is a method of developing new idea by focusing on parameter identification and

creative synthesis.

Parameter identification involves the analysis of variables contained in the situation to

determine their relative importance.

These variables thereafter become the focus of the investigation with other variables being
set aside.

METHODS OF GENERATING BUSINESS IDEAS

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.

For a new product or services area, 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 initially screening ideas and concepts. Existing
company can use this method to expand a section or department to be able to achieve
greater productivity in its services.

Brainstorming

The brainstorming method allows a group of individual to be stimulated to 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 times that a good idea emerges. This has a greater frequency of occurrence when the
brainstorming effort focuses on a specific product or market area.

For this approach to be successful there should be no negative comment or criticism,

quantity of ideas should be encouraged, the wider the idea, the better and combinations and
improvements of ideas are encouraged.
Many modern commercial banks successfully used brainstorming techniques to develop a
series of product for their clients or customers.

Problem Inventory Analysis

Problem inventory analysis is a method for obtaining new ideas and solutions by focusing on
existing problems. In this approach, the customers or consumers are provided with a list of
problems in a general product category.

Thereafter, they are asked to identify and discuss product in each category that have a
particular problem. This method is effective when an improved service/product is desired.

When known product or services are related to suggested problems, a new product idea
emerges. Result from product inventory analysis must be carefully evaluated as they may
actually reflect a new business opportunity.

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.

RECOGNITION OF BUSINESS OPPORTUNITIES

A business opportunity represents a possibility for the entrepreneur to successfully fill a

large enough unsatisfied need that can result to enough sales and profits. The ability to
recognize a business opportunity is one fundamental quality of a successful entrepreneur
and for a growing business.

The primary origin of opportunity evolution is from the knowledge and experience of the
individual entrepreneur and the knowledge of the business itself. This knowledge is a
combination of education and relevant experience. These experiences could be related or
unrelated or could result from a variety of personal experience or event. As an entrepreneur
the desire to use those experiences is crucial.

Other factors responsible for the recognition of a business opportunity are entrepreneurial
alertness, entrepreneurs prior knowledge of markets and customer problems and
entrepreneurs networks.

INNOVATION IN BUSINESS

Innovation is one key factor for successful entrepreneurship. Every successful entrepreneur
who stands the test of time must have used the weapon of innovation. The meaning and
definition of innovation could be viewed in different angles.
In organizations, according to Luecke and Katz (2003),"Innovation is generally understood
as the successful introduction of a new thing or method. It is the embodiment, combination,
or synthesis of knowledge in original, relevant, valued new products, processes, or services.

According to Baregheh et al. (2009):

"Innovation is the multi-stage process whereby organizations transform ideas into

new/improved products, service or processes, in order to advance, compete and
differentiate themselves successfully in their marketplace.

Innovation typically involves creativity, but is not identical to it. Innovation involves acting
on the creative ideas to make some specific and tangible difference in the domain in which
the innovation occurs. For example,

Amabile et al. (1996) propose:

"All innovation begins with creative ideas. We define innovation as the successful
implementation of creative ideas within an organization. In this view, creativity by
individuals and teams is a starting point for innovation; the first is necessary but not
sufficient condition for the second".

For innovation to occur, something more than the generation of a creative idea or insight is
required: the insight must be put into action to make a genuine difference, resulting for
example in new or altered business processes within the organization, or changes in the
products and services provided.

"Innovation, like many business functions, is a management process that requires specific
tools, rules and discipline."

From this point of view emphasis is moved from the introduction of specific novel and useful
ideas to the general organizational processes and procedures for generating, considering
and acting on such insights leading to significant organizational improvements in terms of
improved or new business products, services, or internal processes.

As an economic conception, Schumpeter (1934), defined economic innovation as:

The introduction of a new good: that is one with which consumers are not yet familiar
or of a new quality of a good.

The introduction of a new method of production, which need by no means be founded

upon a discovery scientifically new, and can also exist in a new way of handling a
commodity commercially.

The opening of a new market: that is a market into which the particular branch of
manufacture of the country in question has not previously entered, whether or not
this market has existed before.

The conquest of a new source of supply of raw materials or half-manufactured goods,

again irrespective of whether this source already exists or whether it has first to be
created.

The carrying out of the new organization of any industry, like the creation of a
monopoly position or the breaking up of a monopoly position.
PRODUCT PLANNING AND DEVELOPMENT PROCESS
Once idea emerges from idea sources or creative problem solving,
they need further development and
refinement in to final product or service to
be offered. This refining process- the product planning and
development process is divided in
to five major stages. Idea stage, concept stage, product development
stage, test marketing stage and commercializing; it result in the product life cycle.

Establishing evaluation criteria

At each stage of product planning and development process, criteria for evaluation need
to be established.
These criteria should be broad, yet quantitative enough to screen the product carefully in
the particular
stage of development. Criteria should be developed
to evaluate the new product in terms of market
opportunity, competition the
marketing system, financial factors and production factors. A market
opportunity and adequate market demand must exist. Current competing producers, pric
es, and policies
should be evaluated in their impact on market share.
The new product should be
compatible with existing management capabilities. The product should be able
to be supported by and contribute to
the company's financial structure. The compatibility of new product's
production requirements with existing plant, machinery, and personnel should
be determined.
Entrepreneurs should formally evaluate an idea throughout its evolution.
Idea Stage
Promising new product ideas should be identified and impractical ones eliminated in
the idea stage allowing
maximum use of company's resources. In
the systematic market evaluation checklist method, each new
product idea is expressed in terms of its chief values, merits, and benefits. This techniqu
e can be used to
determine which new products should be pursued.
The company should also determine the need for the new product and its value to
the company. Need
determination should focus on the type of need, its timing, the users involved, the
importance of marketing
variables, and the overall market structure and characteristics. In determining the
product's value to the
firm, financial scheduling should be evaluated.
Concept Stage
In
the concept stage the refined idea is tested to determine consumer acceptance without
manufacturing it.
One method of testing is
the conversational interview in which respondents are exposed to statements that
reflect attributes of the product. Features, price, and promotion should
be evaluated in comparison to
major competitors to indicate deficiencies or benefits. The relative advantages of
the new product versus
competitors should be determined.
 Product Development Stage
In this stage, consumer reaction
is determined, often through a consumer panel. The panel can be given
samples of the product and competitors' products
to determine consumer preference. Participants keep
the record of their use of product and comment on its virtues and deficiencies.
The panel of consumers is also given
a sample of product and one or more competitive product
simultaneously. One test product may already be on
the market, whereas the other test product is new.
Test Marketing Stage
Although the results of product development stage provide the basis of
the final marketing plan, the
market test can be done to increase the certainty
of successful commercialization. The last step in the
evaluation process, the test marketing stage, provides actual sales results which indicate
the acceptance level

TYPES OF INNOVATIONS IN BUSINESS

Breakthrough Innovation

Breakthrough innovations are innovation that leads to major scientific breakthrough. They
often establish the platform on which future innovation in an area are developed. They are
usually very few. Breakthrough innovations include such ideas as the computer, the air plane
and the internet.

Technological Innovation

Technological innovation are in general not at the same level as scientific discovery, but they
create technological advancement in product and market areas. Examples include jet plane,
personal computer, voice and text messaging.

Ordinary Innovation

This type of innovation occurs most frequently. Ordinary innovation comes from market
analysis and they extend a technological innovation into a better product or service or one
that has a different, usually a better market appeal. One unique characteristics of ordinary
innovation is that the market has a stronger effect on the innovation (market pull) than the
technology (technology pull)

Areas of Innovation in Business includes:

Product improvement:

Continuous improvements, making the product more:

efficient, effective

leveraging existing core technology

useful or user friendly

 integrated with other products, technologies, or systems

valuable to users

Process improvement: Make processes:

simpler

faster

more accurate

more reliable

less expensive

more integrated

New business models:

Restructure the nature of how business is done to serve the customer better and

make it easier to do business

create more integrated products and services

devise better ways to be profitable

use resources in a new way

Market extension:

Develop new products and services to:

support Existing Customers

Market Bases who buy our current products

facilitate product/technological adoption and create value from usage

introduce new services & value streams

Socio-organizational: Design new human relationships to:

increase results (strategic alliances & value networks)

reorient or restructure human interaction (Facebook, employee ownership, diversity

of thought)
 enable people to interact differently with technology