INNOVATION IDEA PROPOSAL

Idea Evaluation Matrix

Scoring system: 1 (low importance) to 5 (high importance).

Critical success factors: write text

�The parameters given here serve as an example only.

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Table 1

Executive Summary

• It is vital information for attracting the attention of investors. This section should provide a high-level summary of everything included herein. Compose a few phrases on each of your business plan's components - company description, goods and services, market research, and so on - while leaving the reader fascinated and wanting to know more. It should be brief and entertaining, no more than two pages long. Despite the fact that we listed it first, you should write it last. The executive summary will be at the top of your business plan, but you won't know what material to add until you finish the parts below.

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Opportunity Recognition

Figure only serves to help you explain how did you come up with this opportunity gap! Please mention if your innovative idea comes from these environmental trends!

Opportunity Recognition

• Are young rather than old.
• Are early rather than late in their life cycle.
• Are growing rather than shrinking.
• Are selling products and services that customers “must have” rather than � “want to have.”
• Have high rather than low operating margins.
• Are not highly dependent on the historically low price of key raw materials.

Characteristics of Attractive Industries

Company Description

It provides a description of the business or idea. So, begin with the name of your company, its description and the names of its founders. Continue by adding the following elements:

• Company’s Mission, Vision and short and long term Objectives

Core Strategy

Primary Elements of Core Strategy

Mission Statement

Vision Statement

A vision statement provides a brief description of a company's long-term goals. It's typically ambitious and communicates how the company plans to make a difference in the world.

A firm’s mission, or mission statement, describes why it exists and what its business model is suppose to accomplish.

Core Strategy

Primary Elements of Core Strategy

Basis of Differentiation

It is important that a new venture differentiate itself from its competitors in some way that is important to its customers. If a new firm’s products or services aren’t different from those of its competitors, why should anyone try them?

Basis of differentiation

• For example, ZUCA (www.zuca.com) is a wheeled backpack. It was designed by Laura Udall as an alternative to traditional backpacks when her fourth grader daughter complained every day that she had back pain from carrying a backpack. ZUCA has two distinct points of differentiation: It relieves back pain using wheeled bags and is strong enough to sit a child or adult.

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• For example, when Laura Udall introduced ZUCA, she could have focused on the product features and listed its differentiation points as follows: (1) pulls like a suitcase instead of being worn on the back, ( 2) includes a sturdy aluminum frame, and (3) is available in six colors.

Vision statement example

Vision statement examples�

• Starbucks “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”
• Starbucks’ effective vision statement shows the public the brand plans to expand and is focused on sticking to its core values as it does so. 
• It also tells us it wants to be the best coffee provider in the world. This points to the brand’s high ambitions and commitment to its craft.
• Tesla: “To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.”
• Tesla’s vision statement expresses its desire to become the most compelling auto corporation while pushing the entire world toward a more sustainable, better future. 
• The innovative aspirations align with its core identity and futuristic brand name. The company’s statement provides a transitional goal that inspires employees.
• IKEA: “To create a better everyday life for the many people.”
• IKEA’s vision statementIKEA’s vision statement appeals directly to corporate social responsibility and communicates the brand’s philanthropic aims. It corresponds with the company’s mission to provide super-affordable and accessible products.
• Nike: “To remain the most authentic, connected, and distinctive brand.”
• Nike’s vision statement shows it plans to continue along its current path as we move into the future. The company’s statement suggests it already represents the most authentic, connected and distinctive brand. This reaffirms Nike’s authority in its field.
• Google: “To provide access to the world’s information in one click.”
• Google’s vision statement fixates on global accessibility. It expresses the company’s forward-thinking goal of optimizing convenience, speed and ease of use. The single-click aim serves as motivation.

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Mission statement example

Mission statement examples�

• Starbucks: “To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.”
• Starbucks’ mission statement is passion-driven and appeals to emotion while focusing on the brand’s core purpose — serving coffee globally. It’s short, sweet and easy to understand.
• Tesla: “To accelerate the world’s transition to sustainable energy.”
• This auto company’s mission statement concisely communicates its reason for existing and foundational aims. The use of “accelerate” is forward-thinking and fast-paced, which aligns well with its brand identity.
• IKEA: “To offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”
• IKEA presents its company mission with an accessible statement. It highlights what the brand does — providing practical home furnishings almost anyone can afford. It also points to its unique offering — huge product variety and well-designed items.
• Nike: “To bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete.”
• Nike’s mission statement expresses its fundamental values, inspiration and innovation in athletics. It’s intentionally inclusive, reminding us that “athlete” doesn’t just refer to the Michael Jordans of the world but to each of us. This makes it relatable and memorable.
• Google: “To organize the world’s information and make it universally accessible and useful.”
• Google’s mission statement communicates the range of complex activities it works on in simple terms. It highlights the company’s primary focus on cataloging and offering information to the world while laying out its core values — accessibility and practicality.

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SMART objectives

• Specific
• Measurable
• Achievable
• Realistic
• Time-Frame

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Short term goals (>6months), medium term goals (>2 years) Long term goals (> 2 years)

Examples of S.M.A.R.T. Goals?

• Walgreens: “Second is to hire a significant number of people with disabilities in our South Carolina distribution center, scheduled to open in 2007, and achieve 20% productivity gains there.”
• UPS: “65% of drivers will have access to the new technology (implemented in 2004) by the end of 2005.” and “In 2005, we will increase operating profit in each of our 3 key businesses: domestic, int’l, supply chain.”
• Wrigley: “In 2005, the company will decrease the long-term rate of return assumption for the assets of its U.S. (pension) plans from 8.75 % to 8.5%.”

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• Halliburton: “We estimate that 74% of the backlog existing on 12/31 will be eliminated the following fiscal year.”
• Martha Stewart Living Omnimedia: “In 2004 we will discontinue the Catalog for Living and its online product options, and sell remaining inventory in early fiscal 2005.”
• Starbucks: “In fiscal 2006, we plan to open approximately 1,800 net new stores globally.”

Market Analysis

This section should provide a description and analysis of (i) the industry in which the company will be operating, (ii) the target market, and (iii) the company’s major competitors. The elements that market analysis includes are:

• Description of products and services
• Target Market and Consumer Demographics
• Opportunities and Threats in the Industry, including barriers to entry
• Comparison of your product with competition (see table 2 below)
• Location

Product/Service Desirability �example

New Venture Fitness Drink’s Concept Statement

Market Analysis

• Description of products and/or services

Market Analysis

• Target Market and Consumer Demographics

Market Analysis

Table 2. Competitor Analysis of the proposed products/services

Market Analysis

• Location

Management and organization

This part should provide a description of the company's proposed organizational structure as well as how it will be administered. The following items should be included in the description:

• Type of Ownership and Rationale for Ownership Form
• Organizational Structure
• Team Qualifications, Experience and Responsibilities

Marketing and operational plan

• Here it is outlined how your business idea will translate into selling and delivering your products to potential clients. Discuss your advertising and promotion strategy, as well as your marketing budget. You're thinking about this ahead of time since you'll need to plan how you'll fulfill those orders or handle your bookings. You should discuss different resources you need, such as the labor force, materials, and equipment for the day-to-day functioning of the company.

Financing projections

Targets and forecasts for the first three years, as well as a description of possible investors, shall be included for new enterprises. A budget should cover charges for staffing, development, manufacturing, marketing, and any other company expenses. Moreover, think about these questions when writing this section:

• How much money will you need to put this business idea at first?
• How much money are you looking for from investors?
• How long till you start making money?
• How much profit do you anticipate making in the coming year? 3 years?

Financing projections

Table 3. Estimated selling prices, quantity sold and total sales for three years

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Year Size Total (Euro)

____1__________ ________________ ____________________

____2__________ ________________ ____________________

____3__________ ________________ ____________________

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