Unit _2

Course Name: Entrepreneurship

and Design Thinking
 Code: PG33
Course Name

Entrepreneurship and Design Thinking

Unit -2
 Unit Coverage

This Unit will cover :-

• Creativity and Innovation
• Design Thinking tools
• Identifying and analyzing
opportunities
• Legal aspects of protecting ideas
• Intellectual property Rights
Creativity and Innovation in Entrepreneurship

• What is Creativity?
• What is Innovation?
 Creativity

Creativity is thinking new things, the ability to

develop new ideas and to discover new ways of
looking at problems and opportunities.
 Innovation

Innovation is doing new things, the ability to

apply creative solutions to those problems and
opportunities in order to enhance people’s lives
or to enrich society
 Entrepreneurship
Entrepreneurship = creativity + innovation

Entrepreneurship is the result of a process

that apply both creativity and innovation to capitalize
on marketplace opportunities.
 Barriers to innovation and
creativity:
1. Searching for the one ‘right’ answer
2. focusing on being logical
3. blindly following the rules
4. looking foolish
5. fearing mistakes and failure
6. believing that ‘I’m not creative’.
Four phases to avoid innovation and
creativity barriers:

1. Knowledge accumulation e.g. reading,

professional conferences, talking, visit to
library
2. Keep on exercising it.
3. Idea or ‘eureka’ experience, usually this
phase occurs slowly but surely formulates
the solution
4. Evaluation and implementation
 Four types of Innovation
• Invention - described as the creation of a new
product, service or process.
• Extension - the expansion of a product,
service or process
• Duplication - defined as replication of an
already existing product, service or process
• Synthesis - the combination of existing
concepts and factors into a new formulation.
 Five innovation myths:
• Innovation is planned and predictable.
• Technical specifications should be thoroughly
prepared in advance.
• Creativity relies on dreams.
• Big projects will develop better innovations
than smaller ones.
• Technology is the driving force of innovation
and success.
design thinking tools
 Design Thinking
• Design thinking is a tool kit which aims at generating
innovation.

• It begins in the rawest form and marks its end at an

abundance of innovation.

• Design thinking tools are tools, which one can use to

generate ideas for solving problems.

• A business organization requires continuous innovation in

order to survive in the competitive environment of the
market.
 Design Thinking Tools
Following are a few design thinking tools, which
facilitate the innovation process:
1. Mind Mapping:
• A mind map is a graphical way to represent ideas
and concepts.
• It is often created around a single concept,
drawn as an image in the center of a blank
page, to which associated representations of
ideas such as images, words and parts of
words are added.
• Mind maps can also be drawn by hand, either
as "rough notes" during a lecture, meeting etc.

• Mind maps can be used

to generate, visualize, structure, and classify
ideas, and as an aid to studying
and organizing information, solving
problems, making decisions, and writing.
Example – Rough Mind map Notes
Mind Mapping - Example
 2. Journey mapping

• Journey mapping refers to visualizing what a

customer goes through.
• Understanding the needs and pain points of
the customer is necessary for journey
mapping.
• This is due to the reason that, they provide an
essential support to the goals of any
organization.
 3. Innovation Flowchart
• The innovation flowchart renders the basic
stages in the process of generating techniques
for innovation.
• It enables us to see where we are in the
process of innovation.
• It is also of great help in determining whether
or not, we have considered the important
aspects. 
 4.Assumption testing

• Assumption testing is a design thinking tool that

identifies the various assumptions underlying in
the process of designing.
• It begins with identifying the assumptions. After
which, it assesses their viability.
• For this purpose, it gathers a lot of data from
numerous resources to conduct assumption
testing.
• After that, we have to conduct experiments for
assessing their viability.
 5. Visualization

• Designing does not exclusively concern

developing images.
• First of all, it involves an in-depth visual thinking.
• Secondly, it focuses on unlocking various parts
of our brain.
• Visualization is required at every stage of the
design thinking process.
• Therefore, it is termed as the ‘mother of design
thinking tools.’
 6. Value Chain Analysis 
• It examines how an organization interacts with
value chain partners to produce, market, and
distribute new offerings.

• Analysis of the value chain offers ways to

create better value for customers along the
chain and uncovers important clues about
partners’ capabilities and intentions.
Identifying an Analyzing
Business Opportunities
SOURCES OF BUSINESS IDEAS AND METHODS
FOR GENERATING IDEAS

• SOURCES OF BUSINESS IDEAS: Ideas for businesses may

come from diversified sources ranging from personal
exposures and experiences to market conditions.
• Some of the commonly cited sources of business ideas are
briefly stated below.
Work experience: People working in a particular company
will become familiar with the practices and business
opportunities perused by their employer company.
Hobbies: Many promotion and advertising tycoons,
photography and film making, restaurant and hotel
runners, gymnasium owners, bookstore successes, beauty
service business owners, agriculturalists, floriculturists,
etc are backed by their hobbies.
Deliberate search: Sizeable numbers of people go into business
after an extensive market need assessment to identifying
demand and supply gaps and future prospects.
Observing the market: observation of the market through
personal exposure may give a flash idea of going into business.
This may include; observation of customer complaints,
understandings of what the people like doing most often, a
closer examination of the socio-cultural conditions etc.
 Customers: giving attention for the requirements of the needs
and wants of the customers by giving customers the
opportunity to express their opinion.
 Chances for substituting the import articles
 Study of project or industrial surveys
 Distribution channels
 Trade fair and exhibitions
 Mass medias
 Monitoring & evaluating the products and services offered by
existing or new companies.
 METHODS FOR GENERATING IDEAS

1.Brainstorming: - It is the most well-known and widely used

technique. This method is based on the fact that people can be
stimulated to greater creativity by meeting with others and
participating in organized group experience.
• The entrepreneur can gather a group of people to discuss
and generate new ideas.
• When using this method, the following four overall rules
need to be followed: -
i. No criticism is allowed - no negative comments
ii. Freewheeling is encouraged – the wild the idea the
better
iii. Quantity of idea is desired – the greater the number
the more likelihood of useful ideas emerging.
iv. Combinations and improvements of ideas are
 2. Heuristics
 It is an integral part of creativity.
 involve two types.
• 1st - Analysis heuristics: - These are the cognitive strategies
entrepreneurs adopt in order to gain and integrate new
information about the world, to understand the patterns in this
information and to spot market gaps.
• 2nd – Synthesis heuristics: - Synthesis involves using a cognitive
strategy to bring the ideas developed form analysis back together
again in a new and creative way generating a new perspective on
customer needs and how they might be addressed.
• Analysis is about spotting opportunities;
• Synthesis is about creating innovations
• These two sets of heuristics lie at the center of a process with
information as an input and new business opportunities as an
output.
• 3. Customer Proposal: - A new opportunity may be identified
by a customer on the basis of recognition of their own needs.
4. Creative groups: - A creative group consists of a small number of potential
customers or product experts who are encouraged to think about their needs in
a particular market area and consider how these needs might be better served.

5.Market Mapping: - It is a formal technique which involves identifying the

dimensions defining a product category.
These dimensions are based on the features of the product category.
The features will differ depending on the type of product, but indicators like
price, quality and performance are quite common.. A map is created of the
market by using the feature buyer dimensions as co-ordinates.

6. Features Stretching: - Innovation involves offering something new. This means looking for
ways in which changes might be made. It involves identifying the principal factors which
define a particular product or service and then seeing what happens if they are changed in
some way. The trick is to test each feature with a range of suitable adjectives such as: bigger,
stronger, faster, more often more fun and so on and see what results from such testing.
• 7. Product blending: - This technique involves identifying the features which
define particular products. Instead of just changing individual features, new
products are created by blending together features from different products
or services. This technique is often used in conjunction with features
stretching. Both features stretching and features blending make good team
exercises and can prove to be quite good fun.
• 8. Focus group: - This method consists of a moderator leading a group of
people through an open, in-depth discussion rather than simply asking
questions to solicit participative response. The moderator focuses the
discussion of the group on the new product area in either a directive or a
non-directive manner. In addition to generating idea, it is an excellent
method for initially screening ideas and concepts.
• 9. Reverse Brainstorming:- It is similar to brainstorming, except that criticism
is allowed. The technique is based on finding fault by assessing the question
“In how many ways can this idea fail?” Care must be taken to maintain the
group’s morale. The process most often involves the identification of
everything wrong with an idea and then a discussion of ways to overcome
• 10. Gordon Method:- The Gordon method, analyzes many other
creative problem-solving techniques, begins with group members not
knowing the exact nature of the problem. This ensures that the
solution is not concluded by preconceived ideas and habit patterns. It
follows the following steps:
• The entrepreneur starts by mentioning a very general concept
to the problem
• The group responds by expressing a number of ideas
• Then a concept is developed, followed by related concepts
through guidance by the entrepreneur.
• Then the actual problem is revealed, enabling the group to
make suggestions for implementation or refinement of the
final suggestion
• 11. Scientific Method: - It consists of principles and
processes, conducting observations and experiments
and validating the hypothesis used in any rigorous
investigation. The approach involves the entrepreneur
defining the problem, analyzing the problem,
gathering and analyzing data developing and testing
potential solutions and choosing the best solution.

• 12. Big Dream Approach: The entrepreneur dream

about a problem and its solution, -thinking big. Every
possibility should be recorded and investigated. This
should continue until an idea is developed into a
workable form.
 EVALUATING BUSINESS OPPORTUNITIES
MEANING OF OPPORTUNITIES:
• Opportunity can be defined as “a chance of doing
things both differently from and better than how
they are being done at the moment.”
o It is also defined as a “gap in the market”.
o Opportunities may be divided as: small value and
Big value opportunities.
o Opportunities are said small value when the
revenue potential may be small but the costs and
risks may be too high.
o Whereas opportunities are said big values when the
revenue potential may be high the cost and risks
may be low.
o Opportunities lead to business ideas.
 MEASURING THE SIZE OF THE OPPORTUNIT Y

In order to measure the size of an opportunity identified, one should raise the
following questions and get the right response.
* How large is the market into which the innovation is to be
placed?

In order to answer this question you should further see the following
questions independently.
 What products will it compete with? - analyze the available goods
and services in the market.
 What is the total value of their sales? - analyze the volume of the
market where these goods and services will be sold.

What share of the market is likely to be gained?

In order to answer this question you should further ask the following
questions.
• -How competitive will it be against existing products? Identity the
strength of your product over your competitors.
• -What percentage of customers can be reached? Try to measure
the level of customers’ satisfaction with the existing
products supplied by competitors.

* What gross margin (revenue minus costs) is likely? In order to

answer this question, you ask the following questions.
 identify your pricing strategy and set the price of your product,
understand the paying ability of customers, etc.

* Over what period can the opportunity are exploited? In order to

answer this question, you have to consider the following questions.
 Forecast the trend of customers’ test, behavior buying habit,
income level, and competitors’ reaction pattern.
WHAT INVESTMENT WILL BE NECESSARY IF IT IS TO BE EXPLOITED
PROPERLY?

• What are the immediate capital requirements?

• This refers to the short-term capital requirement of the business. The
capital required for different purposes such as: what investments in
people, operating assets and communication that will be required to start
the business?

• • What will be the long-term and ongoing capital

requirements? This is to understand the capital requirement for- Future
investment so as to continuously exploit the opportunity

• •Does the business have access to the capital required? - Can

he/she raise the capital required? If so, is it from own source or credit from
lenders?
• • What human resources will be needed? Are they available?
This is in terms of number, type of training and level
of training.
 DETERMINE THE LIKELY
RETURN
• Determine the likely return in order to answer this question you have to raise the following points :
• • What profits will be generated?
 Try to estimate the rate of return, will it be lesser than or greater
than other investment areas?
 Try to measure the possible costs that will be incurred to operate the
business.
• • Over what period?
Estimate the length of the period over which this rate of return can
be earned. Will it be very short, intermediate or very long period?
 Is this attractive given the investment necessary?
• Compare the return from the project at hand with other
investment areas and answer the following questions.
 How does return on investment compare to other investment
options?
 MEASURING THE RISKS
• Raise the following questions and try to find
out the right response.
• • How sound are the assumptions
about the size of the opportunity?
How accurate were the data on markets?
Have all competitor products been
considered?
• • What if customers do not find the offering as attractive as
expected?
• • What if competitors are more responsive than expected?
• • What will be the effect on cash flow if revenues are lower
than expected?
 INTELLECTUAL PROPERTY

INDUSTRIAL
COPYRIGHT
PROPERTY

PATENTS,INDUSTRIAL
DESIGN,GRAPHICAL
INDICATION,TRADEMARK
 INTELLECTUAL PROPERTY
RIGHTS
PATENT

TRADE SECRET IPR TRADEMARK

COPYRIGHT
 PATENTS

• A patent is a grant of a property right by the government to an

inventor.
• provide exclusive rights of ownership to patent holders, their
heirs and assigns.
• Patents are exclusive property rights that can be sold,
transferred, willed, licensed, or used as collateral; much like other
valuable assets.
• Most independent inventors do not commercialize their
inventions or create new products from their ideas.
Instead, they sell or license their patents to others who
have the resources to develop products and commercial
markets.
Dr.Arvind Kumar Bhatt 40
 TYPES OF PATENTS
• The patent law provides the three categories of patents as: UTILITY
PATENTS, DESIGN PATENTS, and PLANT PATENTS
a) UTILITY PATENTS: A utility patent is granted for new products, process,
machines, methods of manufacturing, and compositions of matter. Similar
patents can be filed in more than 80 countries,
b) DESIGN PATENTS: Design patents are granted for any new or original
ornamental design for an article of manufacture. An inventory could easily
register both a utility patent and a design patent, but the design patent has a
limited life.
c) PLANT PATENTS: new plants, mutants, hybrids, the seedlings may be
patented. Provided the inventor can satisfy the patent office that the new plant
did not evolve from nature. This is a rather narrow definition, yet hundreds of
patents have been granted for unusual hybrid roses, ornamental trees, shrubs,
food grains, and an assortment of special-purpose grasses, herbs and vegetable
plants.
Dr.Arvind Kumar Bhatt 41
COPYRIGHT
• A copyright is that the intellectual property is protected for the life of
the originator plus 50 years.
• Among the things that need to be protected through copyright are;
music, books, software, scripts, articles, poems, sculptures, models,
maps, and blueprints.
• if that property cannot be patented, the copyright only prevents
duplicating or using the original material.
• In Ethiopia, the revised copyright law was enacted in July 2004. The
law severely punishes those who infringe others’ copyright, whether
intentionally or with negligence, with imprisonment of up to 10 years
and material and moral compensation of Birr 100,000 minimum.
• Thus, it is very crucial for the entrepreneur to understand the law
very clearly and proceed accordingly.
Dr.Arvind Kumar Bhatt 42
 TRADEMARKS
• A trade mark includes any word, name, symbol, or distinguishing device,
or any combination thereof adopted and used by a manufacturer or
merchant to identify his goods and distinguish them from those
manufactured or sold by others.
• A trade mark is granted through the U.S Patent and Trade Mark office for
a period of 20 years.
• It needs the necessary renewal.
Examples;
Coke (name) for Coca-Cola Corporation
(Symbol) Apple with a bite in the side – Apple Computer
Corporation
Wild Mustang horse- Ford Automobile
The intricate shield and eagle design- beer cans by Anheuser-
Busch Dr.Arvind Kumar Bhatt 43
Protecting the Idea and
Other Legal Issues for the Entrepreneur
Regional Patent office’s Jurisdiction

Office Territorial Jurisdiction

Patent Office The States of Andhra Pradesh, Karnataka,
Branch, Chennai Kerala, Tamil Nadu and the Union Territories
of Pondicherry and Lakshadweep
Patent Office The States of Maharashtra, Gujarat, Madhya
Branch Mumbai Pradesh, Goa and Chhattisgarh and the
Union Territories of Daman and Diu & Dadra
and Nagar Haveli.
Patent Office The States of Haryana, Himachal Pradesh,
Branch, Jammu and Kashmir, Punjab, Rajasthan,
New Delhi Uttar Pradesh, Uttaranchal, Delhi and the
Union Territory of Chandigarh.
Patent Office, HO The rest of India
Kolkata

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