This is an attempt to clarify the difference between invention and innovation. This also illustrates simple ways in which innovations can be made. A brief list of questions to evaluate whether the idea is a potential business or not is given in the end.

1. ENTREPRENEURSHIP
IDEA GENERATION & EVALUATION

2. CONTENTS
• INVENTION AND INNOVATION
• TYPES OF INNOVATION
• SOURCES OF INNOVATIVE OPPORTUNITIES
• PRINCIPLES OF SUCCESFUL INNOVATION
• “SCAMPER”- A METHOD FOR IDEA GENERATION
• EVALUATING A BUINESS IDEA

3. The difference between
Invention and Innovation
• Invention - is the creation of new products,
processes, and technologies not previously
known to exist.
• Innovation - is the transformation of creative
ideas into useful applications by combining
resources in new or unusual ways to provide
value to society through improved products,
technology, or services.

4. The difference between
Invention and Innovation
DISCOVERY/INVENTION
• X-RAY
• LIGHT-SENSITIVITY OF
SILVER COMPOUNDS
• SEMI-CONDUCTORS
• STORAGE OF DATA ON
MAGNETIC SURFACES
• LASERS
• E=MC^2
INNOVATION
• MEDICAL X-RAY
• PHOTOGRAPHY&
CAMERA
• RADIO
• MAGNETIC TAPE ,
CASSETTES & DISKETTES
• CDs , DVDs
• NUCLEAR POWER

5. The difference between
Invention and Innovation
In a market driven economy, the real winner is the
company that can make something valuable through
innovation –
not the inventor who happens to come up with
something that THE MARKET may or may not want.
Innovation happens when you figure out how to
make money from an invention.
Necessity is the mother of Invention
Profit motive and Creativity are the parents of
Innovation!

6. SCHUMPETER’S
TYPES OF INNOVATION
• Source of supply,
• Technology,
• Commodity (Product),
• Markets,
• Type of organization
N
E
W

7. Drucker’s
Seven Sources
for Innovative Opportunities
1. The Unexpected
2. The Incongruity
3. Innovation based on process need
4. Changes in industry or market Structure
5. Demographics
6. Changes in perception, mood and meaning
7. New Knowledge

8. DRUCKER’S
PRINCIPLES FOR
SUCCESFUL INNOVATION
1. Begin with an analysis of the opportunity.
2. Analyze the opportunity to see if people will
be interested in using the innovation.
3. To be effective, the innovation must be simple
and clearly focused on a specific need.
4. Effective innovations start small
5. Aim at market leadership

9. SCAMPER ~ TECHNIQUES FOR
INNOVATION
• SUBSTITUTE, SIMPLIFY
• COMBINE
• ADAPT
• MODIFY, MAGNIFY, MINIFY
• PUT TO OTHER USES
• ELIMINATE
• REVERSE, REARRANGE

10. “SUBSTITUTE”- AN EXAMPLE

11. “COMBINE”- AN EXAMPLE
+ =

12. “ADAPT” – AN EXAMPLE

13. “MAGNIFY” – AN EXAMPLE

14. “MINIFY” – AN EXAMPLE

15. PUT TO OTHER USES

16. ELIMINATE

17. ‘REARRANGE’ EXAMPLE 1/2

18. “REARRANGE” EXAMPLE 2/2

19. IF YOU WISH TO LEARN MORE

20. BOOKS ON
CREATIVE THINKING

21. Screening Ideas: Are they Opportunities?
5 Questions
1. What important customer problem can you
solve?
2. How are you going to do it?
3. How many customers are there that are willing
to buy from you?
4. Why can only you provide the solution?
5. How can you defend against others?
Ask these questions BEFORE somebody else does!

22. Screening an Opportunity:
5 Questions
1. What important customer problem can you
solve?
How valuable?
How painful?
Remember, you need to change somebody’s
behavior to buy your product.

23. Screening an Opportunity:
5 Questions
2. How are you going to do it?
Business model:
Product
Distribution
Location
Technology/Innovation
Service
Brand

24. Screening an Opportunity:
5 Questions
3. How many customers are there that are willing
to buy from you?
How many customers are there? (Market size)
How many will buy from you? (Market share)
Who will be your first customer (besides your
Mom)?
Who will be your 100th?

25. Screening an Opportunity:
5 Questions
4. Why can only you provide the solution?
How are you unique?
What do you provide that nobody else can?

26. Screening an Opportunity:
5 Questions
5. How can you defend against others?
Location,
Brand,
Patent (or other IP),
Great service, great taste, great fashion sense….

27. BEST OF LUCK!