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Idea Generation Workshop

Idea Generation Workshop
Gary Dushnitsky Gary Dushnitsky
Assistant Professor of Management Assistant Professor of Management
2031 SH 2031 SH- -DH DH
gdushnit@wharton.upenn.edu gdushnit@wharton.upenn.edu
Wharton School, University of Pennsylvania
Wharton Entrepreneurial Program
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Agenda
Agenda

Definitions
Definitions

Windows of opportunity
Windows of opportunity

Techniques for generating new ideas
Techniques for generating new ideas
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Opportunity
Opportunity

Definitions
Definitions

An idea that is attractive, durable, timely
An idea that is attractive, durable, timely
and anchored in a product or service that
and anchored in a product or service that
creates or adds value for its buyer and user
creates or adds value for its buyer and user

A novel combination of resources
A novel combination of resources
the value of which may exceed that of
the value of which may exceed that of
alternative deployments of these resources
alternative deployments of these resources
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A difficult task
A difficult task

Generating a good idea
Generating a good idea

Recognizing a good idea when faced by one
Recognizing a good idea when faced by one
Even for professionals (Bessemer Venture Partners) Even for professionals (Bessemer Venture Partners)
Apple Computer Apple Computer " " outrageously expensive outrageously expensive" "
eBay eBay no no- -brainer pass brainer pass
Federal Express Federal Express passed on seven times passed on seven times
Lotus Lotus " " they had just missed a payroll they had just missed a payroll " "
Compaq Compaq " " no real future in transportable computers no real future in transportable computers
since IBM can do it since IBM can do it
Source: The Bessemer Venture Partners Anti-Portfolio, at http://www.bvp.com/port/anti.asp
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Technological Changes
Technological Changes

Do you own a cell phone?
Do you own a cell phone?
Gartner Group (2002) Gartner Group (2002)
Mobile connections worldwide: Mobile connections worldwide: 1,157 M 1,157 M
Service revenue worldwide: Service revenue worldwide: $360.1 B $360.1 B

Moving Ideas Off Campus

Moving Ideas Off Campus

, NY Times
, NY Times
www.upenn.edu/ctt www.upenn.edu/ctt

New technologies allows us to
New technologies allows us to

Be more productive
Be more productive

Do new things
Do new things
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Political & Regulatory Changes
Political & Regulatory Changes

Deregulation allows us to
Deregulation allows us to
Be more productive Be more productive
Do new things Do new things

Airline industry
Airline industry
Airline Deregulation Act of 1978 Airline Deregulation Act of 1978
Profitable players: Profitable players: AirTran AirTran, , J etBlue J etBlue, , SouthWest SouthWest

Banking, Telecom
Banking, Telecom

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Political & Regulatory Changes
Political & Regulatory Changes

Regulations
Regulations
Generate demand / Subsidize certain businesses Generate demand / Subsidize certain businesses

Sarbanes
Sarbanes
-
-
Oxley Act
Oxley Act (Gartner Group report) (Gartner Group report)
Compliance cost Fortune 1000 : Compliance cost Fortune 1000 : Exp. Exp. $2B $2B
Auditing fees: Auditing fees: Exp. auditing fees to rise Exp. auditing fees to rise 35% 35% - - 50% 50%

Homeland Security Advanced Research
Homeland Security Advanced Research
Projects Agency
Projects Agency
Current fiscal year expected spending: Current fiscal year expected spending: $390M $390M
Interested? Visit Interested? Visit www.hsarpabaa.com www.hsarpabaa.com, , www.hsarpasbir.com www.hsarpasbir.com
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Social Changes
Social Changes

Changes in social norms
Changes in social norms
Alter demand patterns Alter demand patterns
Open demand for new products and services Open demand for new products and services

Smoking
Smoking
An industry in decline An industry in decline

Have you eaten
Have you eaten
carbs
carbs
lately
lately
44 million American pursue low 44 million American pursue low- -carb carb diet diet
eDiets.com eDiets.com$38M revenues for 2003 $38M revenues for 2003
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Demographic Changes
Demographic Changes
Demographic patterns highlight Demographic patterns highlight
Opportunities for new products and services Opportunities for new products and services
The growing U.S. Hispanic population The growing U.S. Hispanic population (Forrester Research) (Forrester Research)
Almost two Almost two- -thirds of the 38.8 million US Hispanics prefer thirds of the 38.8 million US Hispanics prefer
Spanish to English, but automotive sites that offer Spanish Spanish to English, but automotive sites that offer Spanish- -
language content are still in the minority. language content are still in the minority.
Aging baby bomber Aging baby bomber (Forrester Research) (Forrester Research)
Combine baby boomers caring for aging parents, and beginning Combine baby boomers caring for aging parents, and beginning
to face age to face age- -related conditions themselves, with a growing base related conditions themselves, with a growing base
of technology of technology Forrester projects that healthcare unbound will Forrester projects that healthcare unbound will
struggle to top $5B by 2010, but will skyrocket to $34B by 2015. struggle to top $5B by 2010, but will skyrocket to $34B by 2015.
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Generating New Ideas
Generating New Ideas

An
An
old
old
approach
approach
to a
to a
new
new
problem
problem
Start with the solution Start with the solution
or technology to be or technology to be
used and brainstorm used and brainstorm
potential applications potential applications

A
A
new
new
approach
approach
to an
to an
old
old
problem
problem
Start with the problem Start with the problem
to be addressed and to be addressed and
brainstorm potential brainstorm potential
solutions solutions

Two techniques for generating innovative ideas
Two techniques for generating innovative ideas
Source: Why Not? By B. Nalebuff and I. Ayres (also visit www.whynot.net)
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An
An
Old
Old
Approach to a
Approach to a
New
New
Problem
Problem

Translation
Translation
Where else would it work? Where else would it work?
Take a solution from one context and apply it to another Take a solution from one context and apply it to another
Arbitrage + Adaptation Arbitrage + Adaptation
Spinbrush Spinbrush, , ClearPlay ClearPlay

Symmetry
Symmetry
Would flipping it work? Would flipping it work?
Within a given context, turn an existing solution on its head Within a given context, turn an existing solution on its head
Priceline.com Priceline.com, ING Direct , ING Direct
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A
A
New
New
Approach to an
Approach to an
Old
Old
Problem
Problem

No constraints
No constraints
What would Croesus do? What would Croesus do?
Focus on identifying a solution, rather than providing it Focus on identifying a solution, rather than providing it
Stimulate radical, non Stimulate radical, non- -incremental, ideas incremental, ideas
Call Call- -Back Back

Internalization
Internalization
Why aren Why aren t you feeling my pain? t you feeling my pain?
Internalize to mitigate negative externalities Internalize to mitigate negative externalities
Blockbuster & the studios Blockbuster & the studios
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Your Turn
Your Turn

Reversing Reversing
the 900 service the 900 service
By dialing a 900 number, By dialing a 900 number,
you trigger a payment that you trigger a payment that
will be charged to your will be charged to your
phone bill. phone bill.
Can you think of a Can you think of a
business that will be willing business that will be willing
to credit your phone bill if to credit your phone bill if
you call its number? you call its number?
Level Level - -sensitive sensitive
gauges gauges
A popular idea is for a A popular idea is for a
brake light that includes a brake light that includes a
gauge to show how quickly gauge to show how quickly
the vehicle is decelerating. the vehicle is decelerating.
Where else would you like Where else would you like
to see an indication of level to see an indication of level
or intensity, rather than just or intensity, rather than just
"on" or "off"? "on" or "off"?
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Good Luck!
Good Luck!