The Idea Generation Process

THE IDEA GENERATION
PROCESS
Technology entrepreneurship
THE IDEA GENERATION PROCESS
you have a product that you can present to customers you must first have an
idea for a product. We’ve developed a four-step process that you can use to
develop your idea.
• 1. Identify a point of pain in a target market
• 2. Innovate a product or service
• 3. Test business models
• 4. Explore how to acquire customers
Step 1: Identify a Point of Pain
It is much easier to start a new venture if you have some idea of what your
target market will be and what point of pain you intend to address. Your
target market doesn’t determine the entire market opportunity for your
venture's products or services, but it does give you an important starting
point. Every technology venture has to start with the first customer, and it is
far easier to get your first customer if you identify your target market,
thoroughly study its pain points, needs.
The consumption chain
Customer pain points can be identified using a number of techniques. One
useful way of considering the typical customer experience is through a
model known as the consumption chain. The consumption chain illustrates a
typical set of steps customers must go through to acquire and use goods and
services. Any one of the steps in the consumption chain may be a customer
point of pain and ripe for a new solution.
The consumption chain
Step 2: Innovate a Product or Service
You may already have a rough idea of the product or service that you’d like
to take to your target market. Be careful, however, not to be satisfied with
your initial intuitions about what your customers want. To innovate a
product or service idea is both an art and a science. There are a number of
possible strategies that you can use. For example, the point of pain may be a
common problem that you’d like to solve.
List of some techniques used by technology entrepreneurs to innovate new
product ideas.
“Look at what is bugging you”
“Be present in life”
“Let your subconscious do the work”
“Attack practical problems”
“Think big”
Step 3: Test Business Models
A business model is simply the way a business makes money. Companies
make money in a variety of ways, and often it takes a bit of creativity to
determine which business model will be right for your venture.
Facebook, for example, reported operating results at the end of 2013 that
impressed investors because of the improvement in advertising revenue for
users of their mobile platform
Step 4: Explore How to Acquire Customers
Acquiring customers can also be a function of where they are located, geographically
speaking, in relation to the venture. If the market is the local neighborhood (which is
what it would be in a restaurant), it may be enough simply to put up a sign and
announce that you are open for business. On the other hand, if a technology
entrepreneur wants to acquire customers worldwide, there may be much more
complexity and expense in announcing the venture's existence and value proposition.
Many aspiring entrepreneurs have learned too late that only putting up a website is not
enough to generate sufficient sales. A full-blown, thought-out strategy for acquiring,
serving, and maintaining customers should be part of your new venture idea
THE OPPORTUNITY REGISTER
A tool that many aspiring technology entrepreneurs use to track their flow of
ideas is called the opportunity register. An opportunity register is simply a
notebook or computer file that you will return to again and again as new
ideas come to you and as you modify the ideas that you’ve already recorded.
NONTRADITIONAL IDEA SOURCES
• Read Alternative Literature
• Visit New Places and Experience New Things
• Meet Thought Leaders
• Team Up
PRODUCT PLANNING AND
DEVELOPMENT
Technology entrepreneurship
PRODUCT PLANNING AND
DEVELOPMENT
A standard approach used by many technology entrepreneurs to evaluate
new products and services is the product planning and development process.
This process consists of four stages
Stages
• (1) idea stage
• (2) concept stage
• (3) product development stage
• (4) test marketing stage
(1) idea stage
The first stage, the idea stage is when the innovation is formulated and
developed. There are many ways these innovative ideas occur. Sometimes
the innovation comes from observing trends. There are several trends
occurring today that will provide the opportunity for new innovations. These
include the organic food trend, the green trend, the health trend, the clean
energy trend, and the social media trend.
(2) concept stage
In this stage, the modified innovation is tested to determine market reaction

and the degree of acceptance. Although various methods can be employed,
one of the easiest, cost-effective methods is to discuss the innovation with
individuals in the defined market. This is called a “conversational
interview.” Various features, price, and promotional aspects of the
innovation should be discussed in comparison to competitive products
(3) product development stage
Final version of the product, based in part on the evaluations obtained in the
concept stage, is subjected to consumer input. Again, consumer feedback is
obtained, and the refined innovation is evaluated against the evaluation
criteria established.
(4) test marketing stage
Market test of the innovation is done to help ensure successful
commercialization. Due to the costs of test markets and the nature of some
products or services, this stage is often bypassed with the innovation going
from the product development stage direct to commercialization.
THE IDEA DEVELOPMENT PROCESS
Describe the Idea and Competition
the first stage is to describe the idea; evaluate any products or services that
are filling the same need; and determine the advantages, benefits, and
features that provide these benefits of your idea. it is important to describe
the details of the idea, the problem it solves, and the need it fills and
completely as possible. It is helpful to determine the country system code that
best describes the product. For example, NAICS (North American Industry
Classification System) is the country code in the United States, and SIC
(Standard Industrial Classification) is the country code in China and Korea
Determine the Need
The second stage is to determine the need for your innovation. This requires
that the description developed in stage one is as in-depth as possible. At least
three different groups of consumers or firms that might benefit from your
innovation should be identified, and a customer profile for each group should
be established. For business-to-consumer (B2C) groups, this profile should at
least include age range, income range, and gender. Listing family size,
education, occupation, and race are helpful, but not as critical. For business-to-
business (B2B) groups, the profile should include industry, type of products or
services, location, and size.
Modify and Validate
Modify and validate, the third stage, involves developing a prototype
template of your innovation and interviewing individuals concerning this
prototype. The questions concerning the prototype should focus on features
and benefits of your prototype, the important aspects of this particular
product, and the buying process involved
Develop a Marketing Plan
when discussing the business plan focuses on pricing, distribution, and
communication (promotion). The pricing data obtained in your competitive
analysis (stage one) should be evaluated along with cost data to determine an
initial price. A distribution plan laying down the geographic area where your
innovation will be sold, how you will physically get it there, and distribution
channel(s) should also be developed when applicable. Finally, all the
possible marketing communication tools appropriate should be considered,
including the importance of social media.
Develop the Final Product or Service
The development of the actual idea is the fifth stage. This involves the
development of the features of the final idea, its marketing theme, naming,
and packaging (if appropriate). The marketing theme needs to focus on key
benefits or unique selling propositions that appeal to your target customers.
The package, when appropriate, has many aspects, the most important of
which is eye appeal when using a retail distribution
Launch the Idea
The sixth and final stage is to launch the final product or service. This starts
the product life cycle, which was previously discussed

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THE IDEA GENERATION

In this stage, the modified innovation is tested to determine market reaction

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