Unit 2: Creativity & Entrepreneurial Plan Feasibility Analysis Project Planning Creative Problem Solving
Unit 2: Creativity & Entrepreneurial Plan Feasibility Analysis Project Planning Creative Problem Solving
Unit 2: Creativity & Entrepreneurial Plan Feasibility Analysis Project Planning Creative Problem Solving
Creativity
CREATIVITY
Creativity is the ability to see the same things as
everyone else but think something different.
Creativity involves the translation of our unique
gifts and talents into something that is both new
and useful.
Creativity is an important element in finding
new ways to do old things and ways to do things
yet undone.
CREATIVE AS A PREREQUISITE TO
INNOVATION
Creativity - is the ability to bring something new
into existence
Innovation - is the process of doing new thing.
Idea Germination
Preparation
Incubation
Illumination
Verification
Recognition
Production Selection
of a
Informationof
of
problem
gathering creative
creative
or
ideas
ideas
opportunity
Implementation
of
creative
ideas
IDEA GERMINATION
Creative ideas can be traced to an
individuals interest in or curiosity
about a specific problem.
PREPARATION
Seeking information about the
problem & put the effort in order to
gather information & knowledge
INCUBATION
Crucial aspect of creativity because when we
consciously focus on a problem, we behave
rationally to attempt to find systematic
resolutions.
ILLUMINATION
Recognition of idea as being feasible.
It occurs when the idea resurfaces as
a realistic creation.
VERIFICATION
Test to prove that the idea is having a
value. It is development stage of
refining knowledge into application.
STAGES IN THE
CREATIVE
PROCESS
Become familiar with the problem;
generate as many solutions as
possible.
Take some time before working on the
problem again to gain additional
insight.
Before implementing the solution,
evaluate the alternative to be sure it is
practical.
GENERATING CREATIVE
ALTERNATIVES
Brainstorming
Synectics
Nominal Grouping
GENERATING CREATIVE
ALTERNATIVES (CONTD)
Consensus Mapping
Delphi Technique
INNOVATION
Acc. to Drucker, it means by which the
entrepreneur either creates new wealthproducing resources or endows existing
resources with enhanced potential for
creating wealth.
CREATIVE PROBLEM
SOLVING
Attribute listing
Big dream approach
Establishing valuation
criteria
Idea state
E-commerce
TECHNIQUES
Value Analysis(developing the new business ideas
by increasing the value)
Free Association(develop the new business
through chain of word association)
Forced Relationship( developing new product or
service ideas by product or service combinations)
Collective Notebook(a group regularly meets and
record ideas to develop new product or services)
Scientific Method(developing new product or
service ideas through inquiry & testing)
Attribute listing(generating new ideas by looking
+ve & -ve aspects of product or service.
TECHINQUES
Big Dream Approach(entrepreneur
develops new ideas on large canvas without
seeking constraint & then turned out in
workable form)
Establishing Evaluation Criteria(evaluation
is done setting criteria to new product in
terms of market opportunity)
E-commerce(introduction of ecom in
existing business increases business
opportunities)
CREATIVE THINKING
LATERAL
immediately obvious and about ideas that may
THINKING
not be obtainable
by using only traditional
Is for changing concept and perceptions. .
Lateral thinking is about reasoning that is not
step-by-step logic.
LATERAL THINKING
Three major activities are available to promote
lateral thinking.
1.
Awareness these activities are intended to
identify and understand current ideas (but not
to evaluate them).
2.
Alternatives a conscious effort is made to
produce as many different ways as possible to
look at the problem.
3.
Provocation discontinuity is introduced into
the thought process by forcing a change in the
way the problem is viewed.
IDEA GENERATION
Companies
Existing products & services
Substitutions
Middlemen
Channel of Suppliers & Marketers
Research & Development
Govt. Policies
structured format)
Brainstorming
Synectics
PROJECT
Defined as a scientifically evolved
work plan devised to achieve a
specific objective with a specified
period of time.
CHARACTERISTICS
Investment pattern
Benefits or gains
Time limit
Location
PROJECT
MANAGEMENT
The process of planning & directing a
project from its inception to its
completion in a given time at a given
cost to generate a given result.
PROJECT
CLASSIFICATION
Study of project ideas.
CLASSIFICATIONS OF PROJECT
Quantifiable & Non-quantifiable
Sectoral
Techno-Economic Projects
Financial Institutions Classification
Service Projects
PROJECT IDENTIFICATION
Concerned with collection & analysis of economic
data.
CONSTRAINTS IN PROJECT
IDENTIFICATION
Internal Constraints
External Constraints
INTERNAL CONSTRAINTS
Non-availability
of required project
planning capability with entrepreneur.
Evaluation & investment decisions delay
the total project realization.
Non-procurement of equipments/materials
in time.
Non-involvement of project management
in formulation of project goals &
objectives.
EXTERNAL CONSTRAINTS
Rapid change in technology
Delay in deliveries from suppliers
Govt. policies & regulations
Lack of standardization of the equipments
PROJECT SELECTION
PROJECT FORMULATION
Total impact of the proposed project.
STAGES OF PROJECT
FORMULATION
analysis
Enhanced services
Higher earnings
Improvements in employm
FINANCIAL ANALYSIS
Capacity utilization
Financial analysis
Capital requirements
MARKET ANALYSIS
Production
has no
value if the product
are not sold.
Mkting strategies
Market analysis
Potential mkt
Customer seg
TECHNICAL ASSESSMENT
Finding
the adequacy
of the proposed plant
regarding technology,
equipment selection
and capacity of the
plant
Tech assessment
ORGANIZATION &
MANAGERIAL COMPETENCE
A
good management
team can only push a
project to success.
Organization
Structure
Recruitment
Training
COMMON ERRORS IN
PROJECT FORMULATION
Product Selection
Capacity Utilization estimates
Market Study
Technology Selection
Location Selection
Selection of ownership form
PROJECT APPRAISAL
FINANCIAL ANALYSIS
METHODS OF EVALUATING
PROFITABILITY OF CAPITAL
INVESTMENT PROPOSALS
Traditional Methods
Discounted Criteria
ECONOMIC ANALYSIS
MEASURES OF ECONOMIC
ANALYSIS
It is the rate of discount which equates the real economic cost of project
outlay to its economic benefits during the life of the project.
Break-Even Analysis
TECHNOLOGICAL ANALYSIS
MODERN QUANTITATIVE
TECHNIQUES
System Analysis
Marketing Research
Operations Research
Network Analysis (PERT/CPM)
Cost-Volume-Profit Analysis
Ratio Analysis
MARKET SEGMENTATION
While selecting the market segment, an
entrepreneur should ensure the following 3 prerequisites
* the segment must be measurable
* the segment must be substantial enough to
justify the efforts
* the segment must be accessible
Based Segmentation
*psychographics variables
*demographic characteristics
*buyer readiness
Product Based Segmentation
*product use situations
*benefits segmentation
*Quantity consumed
Competition Based
*switchers
*hard core loyal
*soft core loyal
MARKET TARGETING
1.
2.
3.
1.
2.
3.
4.
5.
TARGETING STRATEGIES
Standardization
Differentiation
Focus
POSITIONING
POSITIONING STRATEGIES
Attribute positioning
Benefit positioning
Competitor positioning
Product Category positioning