Methods of generating business idea

IDEA – In narrow sense, an idea is just whatever is before the mind when one thinks.

BUSINESS IDEA –A Business idea is an idea which has come in the mind of any
person to Start a new venture with an innovative idea.

The Entrepreneurs can use several methods to help generate new business ideas such
as:-

1) Focus groups
2) Brainstorming
3) Problem inventory analysis

1) Focus groups :- These are the groups of individuals providing information in a

structural format. A moderator leads a group of people through an open, in-depth
discussion rather than simply asking questions to solicit participant response.
Such groups form comments in open-end in-depth discussions for a new product
area that can result in market success. In addition to generating new ideas, the
focus group is an excellent source for initially screening ideas and concept.

2) Brainstorming: - it is a group method for obtaining new ideas and solutions. It is

based on the fact that people can be stimulated to greater creativity by meeting
with others and participating in organized group experiences. The characteristics
of this method are keeping criticism away; freewheeling of idea, high quantity of
ideas, combinations and improvements of ideas.

3) Such type of session should be fun with no scope for domination and inhibition.
Brainstorming has a greater probability of success when the effort focuses on
specific product or market area.

4) Problem inventory analysis– it is a method for obtaining new ideas and

solutions by focusing on problems. This analysis uses individuals in a manner
that is analogous to focus groups to generate new product areas. However,
instead of generating new ideas, the consumers are provided with list of
problems and then asked to have discussion over it and it ultimately results in an
entirely new product idea. The entrepreneur is not limited by only the three
methods presented in this article.

5) VERTICAL THINKING. : Vertical thinking is a type of approach to problems

that usually involves one being selective, analytical, and sequential. It could be
said that it is the opposite of lateral thinking.

6) CREATIVITY. : CREATIVITY. This module consists of sections on:

  THE NEED FOR LATERAL THINKING: Realising the need to improve
the quality of our thinking. Application of thinking to different areas.
 BASIC LEVEL CREATIVITY: The cure for arrogance and the deliberate
search for alternatives: concepts and explorations. The mechanics of new
routes
 . JUDGEMENT AND MOVEMENT: The difference between perception
and processing. Patterning systems, and the concept of idiom. Humour,
logic and lateral thinking.
 ESCAPE: The first technique of lateral thinking.
 STEPPING STONE: The second technique.
 RANDOM JUXTAPOSITION: The third technique.
 THE TREATMENT OF IDEAS: Constraints, shaping, using and
harvesting.

Q2 problem-solving techniques

1) Brainstorming: Although brainstorming has become a popular group technique,

researchers have not found evidence of its effectiveness for enhancing either
quantity or quality of ideas generated. Because of such problems as distraction,
social loafing, evaluation apprehension, and production blocking, brainstorming
groups are little more effective than other types of groups, and they are actually
less effective than individuals working independently. Although traditional
brainstorming does not increase the productivity of groups (as measured by the
number of ideas generated), it may still provide benefits, such as boosting
morale, enhancing work enjoyment, and improving team work.
2) Divide and conquer (derived from the Latin saying Divide et impera ) may
refer to:Divide and rule, in politics, sociology and economics, a strategy to gain
or maintain power Divide and conquer paradigm, in computer science, an
algorithm design paradigm based on recursion
3) A statistical hypothesis test is a method of making statistical decisions using
experimental data. In statistics, a result is called statistically significant if it is
unlikely to have occurred by chance. The phrase "test of significance" was
coined by Ronald Fisher: "Critical tests of this kind may be called tests of
significance, and when such tests are available we may discover whether a
second sample is or is not significantly different from the first." Hypothesis
testing is sometimes called confirmatory data analysis, in contrast to exploratory
data analysis. In frequency probability, these decisions are almost always made
using null-hypothesis tests; that is, ones that answer the question Assuming that
the null hypothesis is true, what is the probability of observing a value for the
test statistic that is at least as extreme as the value that was actually observed.
 However, other approaches to reaching a decision based on data are available via
decision theory and optimal decisions.
4) Lateral thinking is a term coined by Edward de Bono, for the solution of
problems through an indirect and creative approach. Lateral thinking is about
reasoning that is not immediately obvious and about ideas that may not be
obtainable by using only traditional step-by-step logic.
5) Means-Ends Analysis (MEA) is a technique used in Artificial Intelligence for
controlling search in problem solving computer programs. It is also a technique
used at least since the 1950s as a creativity tool, most frequently mentioned in
engineering books on design methods. Means-Ends Analysis is also a way to
clarify one's thoughts when embarking on a mathematical proof.
6) Research can be defined as the search for knowledge or any systematic
investigation to establish facts. The primary purpose for applied research (as
opposed to basic research) is discovering, interpreting, and the development of
methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe This research provides
scientific information and theories for the explanation of the nature and the
properties of the world around us. It makes practical applications possible.
7) Root cause analysis (RCA) is a class of problem solving methods aimed at
identifying the root causes of problems or events. The practice of RCA is
predicated on the belief that problems are best solved by attempting to correct or
eliminate root causes, as opposed to merely addressing the immediately obvious
symptoms. By directing corrective measures at root causes, it is hoped that the
likelihood of problem recurrence will be minimized. However, it is recognized
that complete prevention of recurrence by a single intervention is not always
possible. Thus, RCA is often considered to be an iterative process, and is
frequently viewed as a tool of continuous improvement. RCA, initially is a
reactive method of problem detection and solving. This means that the analysis
is done after an event has occurred. By gaining expertise in RCA it becomes a
pro-active method. This means that RCA is able to forecast the possibility of an
event even before it could occur.
8) Trial and error, or trial by error, is a general method of problem solving,
fixing things, or for obtaining knowledge. "Learning doesn't happen from failure
itself but rather from analyzing the failure, making a change, and then trying
again."In the field of computer science, the method is called generate and test.
In elementary algebra, when solving equations, it is "guess and check".This
approach can be seen as one of the two basic approaches to problem solving and
is contrasted with an approach using insight and theory.
9) Morphological analysis or General Morphological Analysis is a method
developed by Fritz Zwicky (1967, 1969) for exploring all the possible solutions
 to a multi-dimensional, non-quantified problem complex. As a problem-
structuring and problem-solving technique, morphological analysis was designed
for multi-dimensional, non-quantifiable problems where causal modeling and
simulation do not function well or at all. In computability theory and
computational complexity theory, a reduction is a transformation of one problem
into another problem. Depending on the transformation used this can be used to
define complexity classes on a set of problems. Intuitively, problem A is
reducible to problem B if solutions to B exist and give solutions to A whenever
A has solutions. Thus, solving A cannot be harder than solving B. We write A ≤
B, usually with a subscript on the ≤ to indicate the type of reduction being used

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