Business Idea
Business idea creativity and innovations are interrelated activities in business. Creativity is an initial stage of innovation, without which invention and innovation are impossible. Idea generation is the first step of product development process.
Creativity
Creativity is that mental ability and skills of a person which brings newness in the ideas, products and services. It is an ability of a person or a set of skills that makes one person more creative than other or an intellectual thought that takes place within a person or something that can be simulated by the environment.
According to Mumford, “Creativity involves the production of novel and useful products applicable to the people.”
According to Rollo May– “creativity is the process of bringing something new in human being. Creative requires passion and commitment. It brings to our awareness what was previously hidden and points to new life. The experience is one of heightened consciousness ecstasy.”
Creativity is the act of turning new imaginative ideas into reality.
Creative Process (Stages):
Stage I: Preparation
Stage II: Incubation
Stage III: illumination
Stage IV: Verification
Stage V: Implementation
Innovations:
Developing and producing new products and services by applying appropriate idea, knowledge and skill to serve the potential demands of consumers is innovation.
Innovation is the process that combines ideas and knowledge into new value. In short, innovation is the transformation of creative ideas in to useful application.
According to Leonard and Rayport,” Innovation referes to improving products, services and the existing processes that create values to the customers.”
Joseph Schumpeter (1934) believe that the concept of innovation, described as the use of an invention to create a new commercial product or service, is the key force in creating new demand and thus new wealth.
Relation Between Creativity and Innovation:
“Creativity involves imagining a new reality and innovation is required to it work … (by) developing ideas into applications and solutions.” David Rae (2007)
From the above definition we can conclude that creativity and innovation is business idea or creativity and innovations are the gateway of translating business idea into reality.
Basics of Creative Behaviour
Creative behavior is the ability or action of a person to carryout innovative and creative action.
- Imagination and originality: Generating original ideas that are novel to the people
- Flexibility and risk taking: Creative activity may face risk and uncertainty. Creative manager should be flexible in attitude and have ability to take risk of failure.
- Self expression: Sharing his/her new ideas with friends, co-worker, supervisors and managers in effective way.
- Collaboration: Team work facilitates for sharing ideas and information among the members as they work together for solution of problem which helps to increase both individual as well as team performance.
- Accepting challenges: Creative persons always want to accept complex and difficult task.
- Open communication: Open communication among team members facilitates to share their idea, views, experience and knowledge.
- Involvement in research and development: Research helps individuals to get detail knowledge about the problems and issues those are faced by the management.
- Social support:
Business Idea and Its Generation:
Business idea is the concept transferable to the goods and services having monetary value or benefit. Business idea generation is the process of imagination, conceptualization and development of novel thought for introduction and expression of business activities.
Source of Business Ideas:
- Source of existing products
- Government policies
- Research and development
- Business action network
- Buyers
- Suppliers
- Consultant
- Channel Members
Divergence and Convergence in Business
Divergence in business is concerned with expansion and diversification of present business activities for grabbing more business scope and opportunity in society.
Convergence in business is concerned with coming together two or more business entities in one roof. It is concerned with integration of two or more business organisation doing similar business or interrelated business activities. Also the combination of two or more than two technologies in one also comes under the convergence. Merger is the best example of Convergence.
Difference Between Divergence and Convergence in Business
| Basis | Divergence in Business | Convergence in Business |
|---|---|---|
| Concept | Divergence in business is concerned with expansion and diversifications of present business activities | Convergence in business is concerned with coming together two or more business entities in one roof. |
| Trend | It is a natural trend of business operation | It is the strategic trend of business operation. |
| Objectives | Its main objective is the expansion of present level of business | It main objectives is to integrate of resources of two or more organisation |
| Emphasize | It emphasizes on adding two or more lines of business based on scope. | It emphasizes on maximization of level of competition in the market. |
| Useful | It is useful when there is sufficient fund and scope of business | It is useful for integration of resources and technology for internal strenth. |
| Competition | It can maximise level of competition in market. | It can minimise level of competition in market |
| Registration | It is concern with registration of new name of business | It is concerned with acquisition and merger of two or more business entities as one entity |
| Strengths | Divergence in business is the reason of internal financial strength of the organisation. | Convergence in business is done to maintain internal strength through resources and knowledge integration. |
Tools and Technique of generating new business ideas:
- Brainstorming
- Expert opinion
- Scamper
- Substitute
- Combine
- Adapt
- Maximize or minimize (Modify or magnify)
- Put to other use (purpose)
- Eliminate
- Reverse
Factors affecting Implementation of new ideas:
- Planning, programmes and policies
- Management system
- Organization structure
- Organizational structure
- Organizational resources
- Role of leadership
- Technological factors
- Conflict management
- Level of competition
- Laws, rules and regulations
