Business Model: Pandora Jewellery

Pandora Jewellery with its logo statement “Unforgettable moments” displays a distinctive brand offering and a distinctive product range. Undoubtedly Pandora is one of the worlds’ recognised jewellery brands. A key reason for this success is the business concept that allows customers to design her article in unique, personalised and individualised style; this concept finds expression in its business model.

Founded in Copenhagen Denmark in 1982 by jewellery artist Per Enevoldsen and his wife Winnie in modest manner, Pandora (www.pandora.net) sells more than 6 billion Danish Kroner worth of jewellery pieces including charms, bracelets, rings, earrings, necklaces, pendants et cetera in exquisite designs. More than 10,000 outlets in about 65 countries cater to the sophisticated needs of women who love jewellery that tell a story. A work force of 5,300 people participates in this colossal and global enterprise guided by Allan Heighton Chairman of Board of Directors and Bjorn Gulden CEO and Henrik Holmark CFO.

Business Model

Pandora operates under a vertically integrated business model built literally and meaningfully around a forward looking pair of mission that offshoot from an ambitious yet achievable vision:

Vision: “to become the world’s most recognised jewellery brand”

Mission: 1. Offer women across the world a universe of high quality, hand-finished, modern and genuine jewellery products at affordable prices.

2. Develop jewellery portfolio in keeping with core values of affordable luxury, contemporary design and personal storytelling

Predictably, the business model speaks of the logic of a business in terms of creating value, delivering value and capturing value. Let us see how the business model of Pandora stands on these limbs.

Creating Value

Primary focus on creating value is design and product quality parameters. The business concept that consumer is allowed to morph her own design is the integral part woven into the system. This gives rise to expression of individualised and personalised product design cherished by the buyers. Nevertheless, pre-designed in-house jewellery articles continue to be the main stay of the product portfolio. Strict quality standards are enforced so that articles coming out of the manufacturing facilities chiefly located in Thailand conform to spotless product quality.

Delivering Value

Elements framed in connection with delivering value are shown below:

1. Product offering of charms, bracelets, rings, earrings, necklaces, pendants and watches are packaged into the business motto of unforgettable moments, so that women who wear a piece of Pandora has lingering thoughts of the one she has purchased

2. Broadening of jewellery portfolio through specialised collections. Some of these collections are noteworthy: Compose, LovePods and Liquid Silver launched in 2007, 2008 and 2009 respectively. The company envisages to launch potential collections captioned Moments and Stories both in existing and new markets shortly

3. Brand perception and promotion are finely balanced resulting in what we call as “brand consistency” that ultimately leads to customer loyalty and repeat purchases

4. Sales outlets either using franchises or direct operations are established in delivering the products. Out of these about 700 are termed as “concept shops” that account for about 43% of sales volume

5. Expansion of Pandora product range in existing and selected markets involves branded points of sale with a view to strengthen the perception of the brand by customers as well as to permit wide array of Pandora pieces

6. Expansion of Pandora products in new markets is tackled either serving them from existing outlets from nearby areas or setting-up branded sales outlets. Although most of these are to be directly operated, franchises would also be considered

7. Finally, customer loyalty is the ultimate component in the business model. Attracting and retaining customers takes place in multiple ways. Pandora Club and social network such as Facebook are chief among these methods.

Capturing Value

Revenue generation from operation has the following highlights:

1. Branded distribution is emphasised, consequently as per 2012 first quarter (1Q12) interim financial statement branded distribution accounts for three fourths of sales revenue

2. Direct distribution either using franchises or own operation is given pride of place; the figure of 96% of sales emanating from direct distribution in 1Q12 lends credence to this fact

3. A healthy net profit ratio is a must; for 1Q12 revenue is 1,424 million Danish Kroner and net profit is about 338 million Danish Kroner.

Integration

The business model of Pandora is integrated properly by linking with strategy and tactics. The company reports that feedback from major markets confirms that the strategy adopted by them is working successfully. Moreover, the recent stock re-balance in USA and UK as a tactical measure proves that business model allows leeway in handling operational issues and market challenges in cost effective manner.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

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Business Model Connects Strategy with Tactics

The notion that business model is a stand alone concept was widely accepted in business for quite sometime. Originally founded by Peter F Drucker, business model gained currency with the dot com revolution. Like the dotcom it faded out of fashion soon. Changes that shook technology, economy, social mobility and the way business goes about in the last decade necessitated a second coming of business model. This time it was accompanied with quantum shift in analysis. Gone are the days when business model was treated in isolation. Researchers and practitioners have now begun to spot an integration between strategy and tactics.

What is Business Strategy?

Every business needs a unique proposition, be it a product or service to be offered to the market. Such a proposition must create and sustain value for the business and those elements connected with it. More than that, this proposition must give a distinct and discernible advantage for the business as against its competitors. Sustaining this advantage is a bounden duty of a business that should make every stratagem in order to keep it primary position in the pecking order. That involves two types of actions. One relates to defence and the other relates to attack. In commercial sense the former is developing ability to tide over any adverse eventuality. Attack on the other hand is framing a road map in translating business strategy into practical measures by way of designing a business model.

What a Business Model does?

To answer this question , let me cherry pick three definitions of business model found in academic writings. To begin with look at what Hamel ( 2000 ) sees a business model; it is “ a business concept that has been put into practice”. What is implied is that a strategy of a business is put into practical terms by way of a business model. Secondly, the form of business model and what it does is succinctly stated by Shafer et al (2005) when the authors pen “ We define a business model as representation of a firm’s underlying core logic and strategic choices for creating and capturing value within a value network”. We have got a working definition of the way business model looks like. But wait a minute: what about delivery of value? Osterwalder (2009) has the answer when he writes: “A business model describes the rationale of how an organization creates, delivers, and captures value”.

Now we have the full spectrum of what a business does. It is about time to find out how the model connects with strategy and tactics. In a pioneering research work titled “From Strategy to Business Models and to Tactics” authors Ramon Casadesus-Masanell and Joan Eric Ricart explain in detail about how business model is integrated with strategy and success. Additional reporting by them in recent article tiled “ How to Design a Winning Business Model” (Harvard Business Review Jan-Feb 2011) continues the trend of expositing fundamental theory of business model as the logic of the company and by implementing strategy a business makes choices and face the consequences arising therefrom. They mention choices on policy, asset and governance. They also forecast consequences that are classified as rigid or flexible. The authors turn to the auto industry for an analogy: Strategy is designing and building the car, the business model is the car, and tactics are how one drives the car. By this time we have catapulted into the area of tactics

Business Tactics fill the Rest

These are steps a business take in order to implement the business model. A pre-explanation of how the business will re-act in a given situation could be easily gained from a cursory glance on a business model. In addition to planned tactics a business model allows leeway for the line managers to adopt ad-hoc measures in keeping with over-all thrust of the strategy. These measures could range from non-repetitive tactics, quick-fixes or actions made out of the gut feeling.

Muthu Ashraff

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Key Differences between Business Strategy and Tactics

Most of you know the differences between business strategy and business tactics. But when you are asked to state the differences you generally fumble for suitable words and phrases. Maybe phrases such as “long and short term” and “high and low stuff” are often muttered. But not much is followed thereafter. In this blog I elaborate key differences between business strategy and business tactics for your benefit.

Business Strategy

1. Business strategy is defined as “a well thought out long term plan incorporating chosen methods, moves or a series of maneuverers chalked out by senior managers for obtaining a set of specific objectives of a business”. This definition characterises strategy as long-term, multi-dimensional, complex, and high-flown and having huge impact on business performance

2. Analysts consider strategy as the thinking part of the business process driven by the vision of the stakeholders

3. Although static in nature, strategy gives direction and sense of purpose in movement towards achieving business objectives

4. Value optimization is the anchor on which strategy is fastened; by this, business seeks best possible benefits in a sustainable manner and over a long-term span

5. Integration is the means whereby strategy connects various competing and complementary elements within a business. Like an alchemist, corporate management tries to drive the best mix, blend or configuration of resources and capabilities of business. In sum, strategy fuses many parts together to form a meaningful whole with a view to achieve set goals. For example, a business that has trained human resource and has identified a niche market could use a perfect configuration to get optimum results from an opportunity

6. As I said earlier strategy is for long –term and by nature static. This theme can be further laboured to see a nuance in terms of how a business responds to changes. You cannot easily adjust strategy to changes that are taking place in the market on a day-to-day basis. Nether strategy allows you to re-act to each change in a short time. Factoring market movements, alteration in consumer preferences and shift of business cycle into strategy takes quite some time. This part is better left to be handled by tactics as explained below.

Business Tactics

1. Business tactics are defined as ”specific moves, manoeuvres and actions taken in isolation or as in a series by line managers in order to move from one milepost to another in the pursuit of operationalizing strategy”. By this definition it is clear that tactics are short-term, linear, and single, with localised focus and having fairly limited impact on business performance

2. It is the action part of the business plan process and driven by mission related to a particular set of circumstances

3. Tactics are in a state of constant of flux keeping in line with changes taking place in the environment; these symbolise movement towards goals and mileposts within business objectives

4. Value maximization is the anchor on which tactics are knotted, by this, business seeks best possible benefits in the short-term, and so that trend curve of business success never falters

5. Decomposition is the means whereby tactics dissect a single part from the whole strategy that needs correction or adjustment. In other words, tactics allow you to excise a part from the whole plan, work on it and re-fix without upsetting the overall gist of the strategy. An apt example is the pricing policy adopted in a business. When an existing old customer comes with a special order for a large quantity of a popular product tactics allow you to consider a special discount in addition to the usual ones.

6. Tactics are by nature short-term affairs that function in consonance with all-inclusive strategic policy, but tweak it each time a business faces an issue or snag. Nobody can keep a treasure trove of tactics that could be applied to, each time an unforeseen consequence slaps on the face of business. Each time you face a crisis situation you come out with a tactic that takes care of it adequately. Admittedly, tactics are developed on the spur of the moment. It does not mean planning tactics is not necessary in a business though. If you envisage how a situation could unfold, you can develop the wherewithal to meet it. What is in essence is that you have to quickly adjust to changing business environment and the consequences that arise in its wake? For this purpose a line manager who has an uncanny ability to use a blend of planned and ad-hoc measures with a view to tide over a difficult and perhaps desperate situation is an excellent tactician.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Business Model: BNP Paribas Private Banking

Private banking deals with financial advice and management of money, investment and assets belonging to upper affluent, high net worth individuals (HNWI) and ultra-high net worth individuals (UHNWI). These clients may be wealthy individuals or big corporates. BNP Paribas, a Paris based bank with a successful private banking arm has been voted as seventh best private bank in global ranking. It continues to savour business success as the number one private bank in Eurozone. This laudable success is traced back to the business model that the bank has rolled out in many countries.

BNP Paribas Private Banking is one of the largest in the continent with a portfolio of Euro 255 billion in client assets spread in about 30 countries. France alone accounts for nearly 40 % of its client assets which is closely followed by a whopping 35 % in Europe - Off-shore- Middle –East and Latin America segment. Asia comes third with a 12% share.

Business Model

BNP Paribas has introduced an effective business model interwoven with four core concepts: value proposition, segmentation, leverage and synergy.

1. Value Proposition

Understanding the asset & liability base of client is the first limb in value proposition that takes it to next logical step of clarifying what the client expects or requires from the bank. Third step is to determine jointly with the client an appropriate long-term asset allocation model as well as a suitable investment holding structure. Once it is done, the agreed upon strategy is put through the works. To do that business model dictates the selection of the right products and securities. Regular review of the investment portfolio is the final limb that seeks to adjust the portfolio in terms of market evolution and changing client needs

2. Segmentation

Bringing in a remarkable focus and approach on client segmentation BNP Paribas has identified three client groups who are described as upper affluent, high net worth individuals (HNWI) and ultra-high net worth individuals (UHNWI). Each segmented group is serviced by strategy fine-tuned as per their predilection and personal needs. For example, in the HNWI segment, the focus is on net new assets together with general return on existing client assets. Whereas UHNWI gets further tweaked focus and approach; in their case absolute return is accompanied with attention on net new assets. Moreover, each segment is afforded with different commercial approaches. Upper affluent gets standardised ones that are in store, while the UHNWI is showered with tailor made innovative solutions

3. Leverage

Two mutually exclusive sub-models are displayed under leverage. A stand-alone model is employed in regions such as China, India, South East Asia and Latin America while a joint service model with inputs from sister entities within the BNP Paribas umbrella such as Corporate Investment Bank is offered to clients in Middle-East and Hong Kong segment. This serves two goals: one is that it leverages specialised services of different arms of BNP Paribas group in product delivery; the other is that this leads to corporate synergy within the group resources

4. Synergy

Harnessing significant synergies within BNP Paribas group resources is a key objective enmeshing well with the concept of leverage stated above. Corporate & Investment Banking and Asset Management & Services are two specialised entities that are identified in the business model as generators of synergy in terms of product offering and operationalization of customer mandates in private banking. Corporate finance, export project, structured finance and cash management from Corporate & Investment Banking arm along with asset management, Insurance and real estate services from Asset Management & Services division are pinpointed to contribute towards group synergy. Ostensibly, the linking pins between these two arms continue to be the concepts of client referrals, cross selling and platform sharing that exist and perhaps encouraged by the business model.

So the success story of BNP Paribas Private Banking continues. Would other private bankers take not?

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Deductive Reasoning in Business Research

In the process of doing business research, you will invariably be confronted with the choice of using the right approach of reasoning. There are two such approaches: Deductive and Inductive. In this blog post let me explain the deductive approach of reasoning.

Deductive Approach

Deductive approach begins from general perspective and ends in specifics. In deductive approach a business researcher uses formal logic where he states the problem along with possible causes. Afterwards he searches for rules, norms, principles, parameters that function as theoretical premises in guiding him toward his findings. He then turns to the observations he has made and/or phenomena that he has seen while considering the problem. After analysing these he finally seeks whether there is a connection between his findings and the chosen theory. At this moment he can opt for either of two models:

1. If… Then Model: This model is selected where the business researcher can state confidently that if a particular problem occurs in a manner then it is due to a particular premise. For example, if there is employee absenteeism then there is breakdown of motivation. The underlying theme in this model is that if we accept the premises are true, the observations/phenomena are objectively recorded and the argument led is sound then deductive reasoning enables us to conform the theoretical premises

2. Yes or No Model: In this model the theory and expected consequences are matched. Theory remains sacrosanct and expected consequences can vary. At a given moment if the observations and expected outputs are one and the same it proves the theory. On the other hand, if observations are dissimilar to the expected outputs it does not prove the theory forcing the business researcher to begin his enquiry afresh.

Ostensibly deductive approach of reasoning prods the business researcher to travel in a matrix of theory - hypothesis – observation – conformation as if he is stepping out from top to down or falling from cliff to valley. Perhaps due to this form of southerly movement analysts describe deductive reasoning as “Top Down “or Water Fall” approach.

Choice

Professor Gunapala Nanayakkara, a management guru, educator and researcher states that deductive approach of reasoning is applicable to phenomena that are sufficiently documented and a substantial amount of knowledge already exists. In his opinion deductive approach may start from known realities about which facts exist.

Therefore deductive approach can be effectively employed in most if not all cases of business research. Nevertheless, in the business world of risk and uncertainty it may be a good thing to look into merits and demerits of the alternative approach of inductive reasoning as well. Let me come back on this matter in another blog post.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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How to Create Your Business Concept

A business concept encompasses every business activity undertaken by an enterprise in creating value for customers, suppliers and other stakeholders. Therefore, business concept extend its arch from manufacturing a product to marketing it successfully in order to amass revenue; in similar vein business concept drives every functional area in a business to co-ordinate activities so that goals and objectives are achieved in an optimal fashion. Creating a business concept is an easy task if you adopt a step-by-step approach explained below:

1. Concept Initiation: Firstly, prepare the groundwork by stipulating your purpose and objectives in setting up a concept. Review both internal and external environment and look for clues as to how you can make progress, fix a problem and enhance your value chain. Assume you wish to maximize revenue by introducing a new product. Just check out whether it is an original one, a substitute for an existing product, improvement over what you already have in line or adaptation of a competitor’s product or just a re-make of a common item

2. Concept Generation: Get contribution from your staff, colleagues as regards to the findings or fine-tuning of concepts. Teamwork is better; you can invite participants to put it in writing or just allow them to think out loud. A brainstorm is a better way of garnering new concepts or new twists to a concept that is already known. Yet there is a caveat: never interrupt, rush to criticise neither scurry to cut it down. Generation of ideas could take place in two forms: in-box solutions that have had previous history of successful implementations or out-of-box solutions that originate with parameters un-known or not tested before. More is merrier when it comes to concept generation, as you have a wide selection to choose from

3. Concept Evaluation: The maxim is that every subjective or objective matter can be evaluated by setting norms and specifications. Therefore, concept evaluation cannot be an exception. In evaluating concepts, you go in quick steps through screening, scoring and testing processes. As you begin to screen, most, if not all, concepts would fall on the way side. If there is no viable option you have to brainstorm once again or chose an external adviser. If you have concepts worthy of further analysis you have to apply a scoring system in consultation with your team members. One such scoring system that is widely used is Pugh Matrix. It is an evaluation tool, where you presume a base case with score of 5 and rank the new concepts introduced by your team on the scale 1-5-9. Any concept that is worse than the base case is ticked 1, concepts equal to base case is marked 5 and the ones that are better than base case are scored 9. Thereafter, concepts with the score of 9 are zeroed in for preliminary testing. Once again, using objective standards, a dry test must be carried out so that you cherry pick about two to three concepts

4. Concept Selection: Hard thinking, minute analysis along with “what – if “scenario casts are made so that the chosen concepts could be put through baptism of fire. At this moment, you have to make a trade-off between internal capability and external opportunity, objective standards and subjective demands, theory and practice so that you strike a via-media. The concept that has the best line of fit is generally selected for further development

5. Concept Development: A task force is named and nominated to develop the selected concept. The members of the task force would be briefed in all areas of development including technical, technological, human side, operations, marketing and last but not least financial considerations. On the up-stream, concept development takes into account objectives, purposes and specifications; on the downstream it must address the needs of the ultimate users who seek value for money

6. Concept Validation: After developing a concept in full stream it must be subjected to internal and external validation. Internally it must conform to corporate belief system, shared culture and the obvious necessity to conform to internal standards covering sustainable profit for the business. External validation is via industry standards, B2B ethics, customer perception of quality and durability and overall market acceptance. A product concept might have made waves on the drawing board. Nonetheless it could prove to be a laggard in the market. Recent initial public issue of the Facebook suffered this fate. Even though the market is willing to absorb there is no internal validation of sound financial proof available. Technology guys have a red book on separating chaff from the grain: proof of concept

7. Concept Institution: By this time the business concept is created; it is understood and ready for installation. Lovingly it is named may be after the boss who started the ball rolling; finally it is institutionalized. In this context, the definition of concept stated by American philosopher and psychologist John Dewey may not be out of place. Just check this: “A concept is meaning sufficiently individualized to be directly grasped and readily used, and thus fixed by a word”.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Core Concepts in Building Business Models

Designing effective business models mandates that stakeholders of business enterprises understand the core concepts that lie beneath such models. A Business model that is built on sound concepts can take your business to the top range whereas a poorly made one spells doom.

Investopedia defines business model in plain language as “the plan implemented by a company to generate revenue and make profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs”. This led business practitioners to add or subtract components to a business model at will, without ever understanding the business process and the core concepts that function as building blocks around which a business model is built.

Addressing the lack of awareness of concepts academic researchers spawned several definitions of business model incorporating a number of core concepts. Surveying the literature on business model definitions and core concepts Suvi Nenonen and Kaj Storbacka of Hanken School of Economics, Finland have published a thought provoking article titled “Business model design: conceptualizing networked value co-creation” wherein they have painstakingly analysed definitions of business model given by several academic writers and have succeeded in tracing five core concepts that form main threads in these definitions:

1. Value Creation: As a core concept, value creation ranks first in the list as most academic writers harp on this issue in one way or another. Alternate phrases such as value proposition, value design, value configuration or simply value for customers adorn in their writings. Designers of business models are reminded of the necessity to convey their customers how their firms create value in the first place

2. Earnings Logic: Resorted to by many authors, earnings logic is spelt out at varying length of details. Profit potential, revenue model, revenue logic, capture value, profit formula, return to stakeholders, transactional link to exchange partners, cost structure are chief amongst these. The fundamental aspect of making profit has never been lost on these authors

3. Value Network: Thirdly, value network is emphasised as vital concept in building and sustaining business models. This was worded differently by academic writers as: structure of value chain, partner network, value network, link to external stakeholders, transactional links to exchange providers and so on. This concept cultivates external orientation of a business and defines structure, content and governance of transactions with external actors

4. Resources & Capabilities: As juxtaposition to value network, resource & capability element prod business to look more inwardly by employing assets in a suitable manner. This concept theme is illustrated by writers in the following ways: core competency, resources, assets, processes, activities and strategy & structures of material aspects residing within a business. Capability and capacity is the bulwark on which a business is built and sustained, as does the business model itself

5. Strategic Decision: A key concept confronting designers is the framing of strategic choice within a business model. Such a choice is found in expressions in academic writings as: target market, target customers, position within value network, competitive strategy, market segmentation and others that seek to differentiate the market niche and produce products and services that could satisfy the chosen segments

6. Belief System: Even though belief system was not identified by Suvi Nenonen and Kaj Storbacka as a core concept, I trust that the degree of conviction a business has on its name and goodwill ultimately decide on the success of a business model. This particular point is stressed by H L Tikkanen et al who speak of belief system in such terms as reputational rankings, industry recipe, boundary beliefs, and product ontologies.

Muthu Ashraff

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Four Managerial Skills

Management researcher Robert Lee Katz identified three core skills: technical, human and conceptual abilities as vital ingredients in the management process. Yet there is something missing in this equation to make the management process seamless and successful. Read more…

Professor Gunapala Nanayakkara, a management guru, educator and researcher suggests that success in management processes requires managers and leaders to be task masters, people masters, context masters and finally masters of self. Combining these two theories let me present the following sets of managerial skills that are needed to transform men and women as effective leaders and managers in business and industry:

1. Technical Skills: Performing a given task requires that a manager must have technical skills in relation to his position. Skills do differ across the functions. Still, a manager is expected to demonstrate necessary and overall competence in areas under task management. Process, technique, technology, hands-on experience, knowledge and understanding governing the entire production or service centre are key capabilities in a typical manager’s portfolio. Task orientation is a result of the western civilization, especially American where relating to matter, materials and machinery take pride of place and where completing a mission to its exactitude is appreciated and perhaps rewarded

2. Human Skills: Unlike technical skills, managers see a different dimension in dealing with people. They breathe, and do have life, like other living creations. More than that, they have feelings, emotions, desires, aspirations and top it all every person is unique in terms of physique and mind set. Dealing with people inside organization is called “inter-personal relations” whereas relating to those outside is termed as public relation, customer relation and in such other expressions. Although handling people differ depending on their grades and positions, the least common denominator continues to be the display of human touch by an accomplished manager. From Shaolin temple to modern factories in sprawling industrial city of Shenzhen, Chinese showcase brilliant mastery in motivating people to deliver their goods exceptionally

3. Contextual Skills: Understanding the context in which you are placed is the key force that defines and derives you in arriving at a particular choice. Context can be a form like an organization, time like recession or situation like an emergency. The Arabs went on to explain it philosophically as space, time and being. Let us take the organization. If you are working for a business company your management inputs in terms of skills have to be combed for making profits and working for survival. In a public sector the context goes through a sea-change. Regularity, service orientation and the dictum “pro bono publico’ (for the public interest) demand that you fine-tune your managerial ability in the contextual perspective of public service. Quite a number of skills dominate the contextual area. Chiefly amongst these are, time management, communication, money management, leading, decision making, negotiation and trouble shooting

4. Conceptual Skills: Indians excelled in mastery of self from time immemorial. Vedas are about ten thousand years old. Hinduism as a religion must be older than that. Study of the self, led Indian society to harness the power of mind to do what was unthinkable. Rishis and Sadhus had the ability to fly from one point to another using “pushpak” (an abstract form of flying), recalling memories of past births and so on. Lord Buddha introduced the first conceptual framework in human history wherein he presented the philosophy of Buddhism. Conceptual skills need not be consigned to the realm of high stuff only. Generating ideas, developing concepts, conceptual thinking, problem solving, planning, forecasting, are some of the basic skills needed in everyday business life. Equally important is their use in family life resulting peace and harmony which finally motivates managers and leaders to do excellent jobs in their offices.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Clearing Confusion Surrounding Concept Documents

Many readers are confused regarding the titling of concept documents. There are three such documents: concept statement, concept note and concept paper. Each differs in terms of definition, length and the purposes intended. Using statement, note and paper interchangeably defeat the purpose.

Concept Statement

What it is?

It is a quick glance document defined as a brief verbal and/or graphical presentation made by one party to another in order to obtain approval or decision over the matter raised in such statement. Concept statement does not ordinarily exceed three pages.

What is used for?

1. Charting a course of action in business management

2. Arguing why customers be given better business terms

3. Alluding distinct advantages of doing business with collaborators

4. Clarifying purposes of a sales & promotion campaign to an Ad agency

Concept Note

What it is?

A concept note is defined as “a brief outline of a proposed research matter, submitted to management for their approval”. As regards to length, concept note ranges 3 to 6 pages excluding cover pages and/or annexures

What is used for?

1. Laying out an un-biased, objective document for the management in order to obtain approval to undertake business research

2. Stating major highlights of a proposed research project to research organizations that call for it as a preliminary document to be appraised before considering a detailed research proposal

Concept Paper

What it is?

Concept paper is defined as “a summary of information relating to a subject matter under discussion, presented in logical sequence explaining the underlying concepts and how these are inter-linked”. As an all-purpose document concept paper can be brief and precise or elaborate and in-depth, depending on the subject matter explained therein. Hence, ordinarily it runs 6 to 15 pages in length

What is used for?

It is a multi-task document that can be utilized for every conceivable business needs where a proposal needs to be prepared and presented.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Business Applications of Concept Paper

Concept paper is increasingly sought after in business and industry as a document serving multi purposes. What is more, concept paper is used by decision makers in different phases of the business life cycle. Definition of concept paper as well as elements in crafting it together with business applications for which it is intended are matters of keen interest.

Concept paper is defined as “a summary of information relating to a subject matter under discussion, presented in logical sequence explaining the underlying concepts and how these are inter-linked”. As an all-purpose document concept paper can be brief and precise or elaborate and in-depth, depending on the subject matter contained therein. Hence, ordinarily it runs 6 to 15 pages in length.

Unless, stipulated by the requesting party, elements in a concept paper are woven in a logical sequence. These are: Title, Background, Purpose, Objectives, Expectations, Core activities, Indicators of performance, Conceptual framework, Timeline and Finance & logistical support required in achieving the purpose.

Business Applications

The following list though non-exhaustive displays the wide variety of business applications for which concept is prepared and presented:

1. Planning a new business venture

2. Planning expansion of present business

3. Searching for a joint-venture

4. Looking for collaboration in a specific area

5. Seeking grants from Government or non-governmental organizations

6. Requesting loans or funding

7. Proposing business research

8. Substituting as a business plan

9. Seeking approvals and licences from authorities

10. Profiling a project

11. Standing as instruction manuals

12. Explaining theory or method

13. Introducing a new business concept

14. Amending the present business model

15. Clarifying strategy in functional departments such as marketing

16. Benchmarking standards, performance measurement or anticipated results

17. Comparing several alternatives before zeroing on the apt course of action

18. Designing organization structure

19. Launching a new product

20. Changing business terms in selected markets such as overseas

21. Setting a new marketing or PR campaign

22. Troubleshooting organization-wide conflicts.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

 

 

Making Concept Note for Business Research

Originally introduced as a solicitation for funding, concept note has now morphed into a memo to be submitted for approval before undertaking research in business. The role of concept note has two dimensions. Research organizations call for a concept note as a preliminary document to be appraised before considering a detailed research proposal. Business management however, requires a concept note to consider granting approval to undertake business research straight away. In this blog post, I am concerned with the latter process.

A concept note is defined as “a brief outline of a proposed research matter, submitted to management for their approval”. It is an un-biased, objective note, clearly laying out the canvass of the subject matter in concise and logical manner such that the management is able to make up their mind without calling for further elaboration and explanation. Every concept note is prepared in a unique manner appropriate to the matter examined within, thereby leading the reader to understand the gist of the argument presented and the germane gravamen assembled within it. As regards to length, concept note ranges 3 to 6 pages excluding cover pages and/or annexures. Preparing concept note definitely requires high degree of conceptual thinking and mastery of skills in presentation. Creativity and logic must be put on even keel when making a concept note. Here are the contents that are included in a typical concept note:

1. Title: Give a suitable title that is self-explanatory. Later on, the rubric can be amended in light of the findings

2. Problem Statement: A brief explanation of the problem/issue/question must be given touching on the current situation and how it impedes the progress of the business

3. Background: In this section, you must focus on matters such as what is currently practised in terms of solution, whether it is successful within the business or outside. List any drawbacks or blowbacks that have occurred implementing the current solution and underline the need for fresh inquiry

4. Purpose: Reinforce the need for fresh inquiry by stating what to find, how to find, what to do with the findings, how finally the findings can help business grow. Preferably you must write about general objective of the research and thereafter taper it into specific aims and goals

5. Research Method: Choosing a method that is a suitable for the study of a problem remains the most daunting task. Nevertheless, it is necessary to beam light on this matter before undertaking research. Though, there are several limbs in research methodology, two of these namely models and approaches must be broached in a concept note. You can choose either quantitative or qualitative model or a mixture of both. Likewise, you can select deductive or inductive approach or a blend of both

6. Research Design: Collection and analysis of data is covered in this segment. Any existing data base in a business along with available historical and statistical data in the public domain could form the primary data collection. Secondary data from un-published research or information gleaned from industry sources could add more meat to your study. Moreover, the type of data collection methods such as questionnaire, interview or survey has a bearing on your research. Once the data is collected and collated it must be subjected to impartial scrutiny and analysis

7. Output: How to present your findings to the management is dealt with, in this section. The report format, highlights of findings, generalizations, comments & opinions along with interpretations are included; summary recommendations are pinpointed

8. Researcher Profile: Names and qualifications of researcher or researchers in the case of a ream work are mentioned together with experience and exposure of each resource person. Courtesy dictates that the chief of party be named and celebrated

9. Time Span: Duration of the research in weeks or months must be written

10. Funds & Logistics: Break-down of cost with a cash out-lay statement is prepared and related summary brought in the body and details given as annexure. The type of physical resources required and duration must be given in a logistics statement.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

 

Writing Concept Statement in Business

As a quick glance report, concept statement has been proved as a useful document in business management. It is defined as a brief verbal and/or graphical presentation made by one party to another in order to obtain approval or decision over the matter raised in such statement. Generally it is submitted in response to request made by the party that approves or decides. Salient points in writing a concept statement are explained below:

In keeping with brevity, a concept statement must not ordinarily exceed three pages. It can be intended to several types of receivers. Higher management requires concept statement to decide on a course of action; customers seek a statement that affords him best business terms; collaborators look for a statement that alludes on the advantages of doing business; service providers such as advertisement agencies need clarification of the purpose; finally someone else might look forward solve his own problem. Chief characteristics of concept statement includes: conciseness, to the point, of essence, unique in design and with lot of usefulness for all parties concerned.

Nobody can produce a concept statement by a magic wand or by the sleight of hands as card players do. A lot of handwork and conceptual thinking goes in, before writing a concept statement. Thereafter, it is reduced to black and white over and over to get the right copy in your hand. Here are the contents that must be included in a typical concept statement:

1. Introduction: Give background including reference to the person who requested concept statement; purpose intended to serve

2. Description: Summarize description in eye-catching words and paint a broad brush stroke of the uniqueness of the concepts contained in the statement

3. Benefits & Usefulness: Identify key benefits to the business; how it will play out in the near term and long terms, as regards to your own business, as against competitors and as a bulwark for the industry you are in. Point form of summary of usefulness functional departments must be given

4. Constraints & Limitations: Do not feel down-beaten about admitting any constraints envisaged as per the concept statement; inadequacies of the concept must be underlined along with any limitations that are imposed within or without in putting the concept into practice

5. Response: After ascertaining potential objections to the concept from inside the business, you must air your thoughts to alleviate doubts and fears emanating from the objecting quarters

6. Consequences: After examining potential uneasiness outside the business, you must say how you can neutralize it; you have to list the type of risks you have to face and how you will marginalize these; summarize the pot-holes and land-mines that lay in your path in implementing the concept statement

7. Probability of Success: Never live in a dream world and wish troubles, snags and failures fly away; never turn blind–eye to reality. Stay attuned to the fact that business is all about taking and managing risks and uncertainty. So tell the receiver of the statement what is the probability of success associated with this concept without going hyperbole or putting positive spin about it. Say frankly what you envisage as critical elements in putting concept statement into practice

8. Resources & Cost: List the human and physical resources you require in translating the concept statement into action steps. You also have to give a cost break-down in terms of finance

9. Time Span: The proposed implementation of the concept must be date-marked; you can do this in phases to facilitate identification of tasks and time duration

10. Responsibility: The person or persons in the case of team work, who are responsible, must be named

11. Reporting to: The person to whom the responsibility holders report to must be clearly stated and frequency and form of such report output must be underscored

12. Approval Sought: As the last point you must state the approval needed in clear and concise English.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

How Conceptual Thinking Improves Business?

Behind every successful business stands a concept introduced and implemented by a person who employed conceptual thinking. In highly competitive business environment, it is conceptual thinking that provides much desired edge. Proof comes from social network media where Facebook, Twitter, Linkedin and so on are soaring in sales and revenue because each brought out a new concept that became instantly popular. Whether it is an existing business or a new one conceptual thinking can improve its prospects and performance.

1. It is all question of perception in the first place. When you are presented with a situation, conceptual thinking trains you to spot the missing link or information that is needed to solve a puzzle. You are not looking at facts and figures but for a hidden concept, a big picture, and a skill that marks you from others. You quickly read in-between lines and focus on a single aspect that can ultimately solve the issue and make your business a success

2. Flexibility is proven boon from conceptual thinking; your mind traverses from one point to another searching for a breakthrough. You think vertically and in the next moment laterally; use critical or reflective method of analysis; adopt structured or un-structured mode of approach; decide on the basis of deductive or inductive method of reasoning. The entire range of thinking and analytical styles is within easy range of a conceptual thinker

3. Configuration is a key benefit conceptual thinking affords to a business. A conceptual thinker can use abstract notion to be morphed into a concrete idea; likewise he can wade through in concrete measures to form an abstract principle. Aviation is the result of this combination; from Icarus who flew on wax wings to Wright Brothers who invented a flying machine, configuration has contributed to what we see as cosy planes today

4. Integrate and disintegrate is not only a mantra of the mathematicians but actively used for results by a conceptual thinker who has the ability to break a complex problem into small workable pieces. He goes on to understand the cause and effect and what must be done to get a sense of insight. This is referred to as mapping of concepts. By the same token, conceptual thinking can integrate parts into whole. Professor Gunapala Nanayakkara considers this as: “Holistic Thinking” where many un-related issues can be brought into a single all-embracing concept. A good example is framing a mission statement for a business entity

5. Delving into underlying relationship is a key measure in conceptual thinking. Searching for new and existing elements, surveying individual elements, setting how these elements go for backward or forward integration, set patterns and trends in order to understand connection and relationship are some of the processes performed by a consummate conceptual thinker. More often than not, a conceptual thinker lands on a connection between the factors that was never perceived to exist previously. The evolution of various packing materials for milk, liquor, and drinks is a vivid example

6. Issue recognition is yet another feature of conceptual thinking that contributes immensely to a business. A conceptual thinker moves in tandem by listing all variables even checking on for un-fathomed ones, identifying important or critical variables and go deeper into find out how these could be examined to bring about resolution of a matter. Recent actions by air travel industry in solving unrest among air pilots is a good example

7. Solution is the final embodiment of success in a given business. Achieving solution requires finding out the common concept that is woven around different alternatives. For example, employee compensation can take various types of incentives hygienic to self-actualization. But the fact remains that attractive take-home salary is the common factor in any such alternatives. Framing a compensation package taking into considerations of competing and conciliatory challenges from management and employee unions would finally depend on a single conceptual anchor: corporate well-being. This concept acts as an over-awning arch and eggs on the employees, management, owners and other stakeholders of a business to select a compensation package that magnifies this concept and without any divisions, really.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

Your MBA is as Good as your Dissertation

No mistake about it. You can do MBA anywhere in any school. If you have not done a dissertation as part of your study, there is no point flaunting your MBA to professionals in the field of business. Even if you have done one that cannot stand the rigorous test of academic standards, you would better keep your MBA out of sight from professionals in the field of business and academe.

Today, a plethora of MBA programmes are advertised globally. There is on-line MBA for a fraction of the fee levied by reputed universities. Some institutions offer MBA as a distance learning with or without requirement of a dissertation. Executive MBA is a programme offered for busy executives with duration of 6 to 9 months; such programmes at best require the candidate to file an executive report of some sort. We also spot programmes that award MBA degree after a lapse of 12, 15 or 18 months without insisting on any research paper. More than that, there are printing presses that can give you MBA certificate for a small fee. Such is the status of MBA programme today, it behoves parents and potential candidates do lot of search and thinking before embarking on a MBA programme.

Bet that as it may, having entered an acceptable MBA programme you should tally up the core subjects and electives/optional subjects and then zoom in on the type of dissertation the university or school requires. Some universities allocate 3 course credits or certain number of credit hours for a dissertation. If there are say 15 total course credits required then a dissertation is about 20 % of the entire study duration. As an easy way out, few schools land a single course credit on a dissertation and bring the total course credits to 12 or less. Normally, candidates tend to think about dissertation as an easy go where they can write some muck to pass the hurdle. They would be sorely disappointed. Every university or school applies strict evaluation yard stick in whetting such dissertations. Moreover, when a candidate who has handled dissertation with a kid glove goes out in the market in search of new job, elevation in present employment or placement elsewhere, he gets a slap on his face as he is often asked to furnish an abstract of the research done for his MBA.

A dissertation is defined as a “treatise written by a candidate in partial fulfilment of the requirements for a Master’s Degree in Business Administration, where an argument is presented, described and explained based on the findings of such candidate”. A well written MBA dissertation speaks of the excellence of the MBA programme one followed. Like proof of the pudding in the eating, a dissertation evidences that the author has done his homework well and deserves the degree of MBA. If you are signing up for a MBA programme be determined to do a well-researched dissertation. When you pass out as an MBA the professional and academic community would be in awe of you.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

 

Two Views on Business Development

There are two views of business development floating around in the market place. One relates business development as the functional view and as a sub-set of the marketing; other view speaks of it as the organizational growth process. Here are few points in support of both views:

Business Development as Function of Marketing

You come across number of high flyers who don visiting cards broadcasting as business development managers. The trend began with the boom in the IT industry and with dotcom revolution. Even today IT companies have specialised people handling marketing under the job name of business developer. Academic and professional organizations which are forbidden to use the word and title of marketing as a matter of courtesy and ethics open up business development divisions ostensibly to handle the same mundane function of sales and marketing. Hardly have we seen a new venture without a business developer prominent in their HR profile. So we have a situation where business development has been placed under marketing with a stated goal of bringing more business, customers and relationships. A new vocabulary consisting of such jargons and phrases as business pipeline, capture management, competitive intelligence, business leads and probability of winning bedazzles us more than ever.

Business Development as Organizational Growth Process

A macro view of identifying business development with as much new business as organizational wide growth process is slowly gaining currency in business and management literature. This view incorporates the following step-up approach, in defining business development:

1. Business Development brings in new relationship along with added sales growth

2. Existing relationships are milked more in order to improve business prospects

3. Building of strategic alliances is the cornerstone of any business development activity

4. Creating more opportunities for sales must reflect back on the organization whereby new products and processes are introduced to optimize such opportunities

5. Every growth opportunity is identified and analysed so that the optimum one yielding commensurate return for all functions in an organization is selected. Thereafter, proper strategies are formulated with a view to ensure seamless implementation

6. Business Development must aim for incremental rise in market activity that sustains the growth momentum in corporate management, marketing, HR, production/operation as well as in finance

7. Finally, business development must garner long term value by employing internal strengths to capitalize on external opportunities.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

 

Seven Styles of Thinking in Business

In a business there are several functions. Likewise those who man the functions have different style of thinking. There are seven such styles of thinking. Let me explain you each of these styles and to which function it relates:

1. Normal Thinking: This style refers to ordinary mental process encompassing, reasoning, visualizing, analysing, forecasting, journeying, jumping from one frame to another, shifting positions & focus and other activities to arrive at a conclusion. Most office workers, operatives and junior level employees possess normal thinking

2. Logical Thinking: Anchored on reasoning and driven by sense of focus on solving a problem at hand, logical thinking consciously seeks a solution or decision at a given moment. Every variable is subjected to scrutiny in logical thinking. At the same time their thoughts flow in an orderly fashion. There are two strands under this style:

2.1 Critical Thinking: This process involves high degree of analysis and evaluation to prove a point currently under examination. Criminal lawyers tend to display critical thinking strand

2.2 Reflective Thinking: On the other hand, reflective thinking seeks answers for phenomena that happened in the past, while adopting the same methodology of analysis and evaluation to arrive at conclusion. Once a conclusion emerges reflective thinkers apply that to the issue at hand. Civil lawyers tend to display reflective thinking strand

3. Vertical Thinking: This style of thinking moves on a vertical plane, sequentially analysing only known matters that too are selected beforehand. Vertical thinkers are also referred to as direct thinkers as they tend to focus on a matter directly without any sub-routing. More than that, they adjust their position only marginally as they proceed. Compliance, conformity and aversion to flexibility are their hallmarks. This style befits accountants, auditors and officers in finance department

4. Lateral Thinking: Founded by Edward De Bono, lateral thinking is just opposite of vertical thinking; it is alternately known as horizontal thinking or indirect thinking. Flexibility, experimenting are the chief characteristics of lateral thinkers. Striking the right balance between reasoning and creativity, logic and innovativeness is their forte. Lateral thinking generates ideas in quick succession, one of which could be selected in solving issues. Sales and marketing departments are full of lateral thinkers who add value to the business

5. Creative Thinking: Under this style, thoughts are fairly un-organised. Reason and logic are thrown overboard. In its stead there is imagination often running wild. If not corralled creative thinkers can turn to be fantasizers. But we must admit, these guys can move mountain with their ideas; they and their ideas in turn are celebrated. Internet is a lively example of creative thinking. Ideas and pictures come in quick succession to a creative thinker who can fashion a new product or find a new way of using an existing product. Though creative thinking is often spontaneous, it can be egged on by direction and guidance. Brain storming is a good example of the latter method. Departments dealing in design, fashion, lay-out, PR, advertisement, corporate communication are manned by creative thinkers.

6. Structured Thinking: In business life, you bump into someone who uses step-by-step approach in handling matters. He goes through methodical system of study, listen, observe, collate, reflect and thereafter make his pronouncements known. Here is a structured thinker, who combines both vertical thinking and horizontal thinking in equal measure but move cautiously and sequentially from unknown to known realm. At a given moment their thinking process involves problem definition, listing of underlying causes, assessing impact, generating alternatives and finally choosing the ones that optimize the interest of a business. Engineers, operation managers and those work in research and development departments are possessed with this style of thinking

7. Conceptual Thinking: As the odd man out of the seven styles of thinking, conceptual thinker is not concerned with facts or pictures, but with concepts. He has the ability to break a complex problem into small workable pieces. He goes on to understand the cause and effect and what must be done to bring normalcy. Afterwards, he builds concepts around the problem quickly and with ease; maps the relationship that lie between each concept, makes useful assumptions, validates the assumptions; fuses the concepts into a framework; arrives at a solution or decision; finally makes his point known in concise and precise manner. A man in his elements, he is the quintessential business developer, corporate strategist and on elevation chairman of a board.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

 

Eight Types of Business Research

Every business undertakes research so that it can take right decisions at the right time. No matter what kind of business you are in, you are expected to find out something out there that impacts running of your business. Here are eight types of business research you will have to do at some stage in your business career:

1. Exploratory: This type of research arises when you are entering into un-chartered area. A pretty good example is when you are asked to explore the possibility of opening a branch of your company abroad. At present you have no research findings with you. Neither you are familiar with the territory. So you begin to work from general point to a specific focus of your company. You have to marshal facts from many sources, collate these and familiarize with the situation there. Thorny issue must be identified and you need to find out every angle of opening a branch in terms of qualitative and quantitative data. Afterwards, you develop hypotheses that can be tested. Sometimes it so happens that you find opening such a branch is just no-go

2. Descriptive: Most business research harp on describing the facts as it is. A good example is to see how your present business location helps in developing your business. You identify variables and rank these in order of their importance in impacting your business growth. You cannot leave a single stone un-turned. After listing every conceivable variable you file up your report. At the risk of repetition, I must state that these variables are known and exist as it is. What differs is your ranking of the facts and/or level of their impact. Since there is no originality involved we often call this research as “Ex Post Facto”

3. Evaluative: This type of research is also known as “ analytical”, due to the fact that you are expected to do lot more analysis. In evaluative research you have full freedom to bring in variables that was not known previously. A doable example is to analyse the present office lay-out in overall efficiency. You still use existing data, but you can bring a new factor to evaluate it. In addition to factors already in use such as convenience, seamless integration, process flow, traffic flow, lighting & ventilation, natural setting, you can also bring in ergonomics and aesthetics to evaluate the office lay-out. In evaluative research you are expected to air constructive criticism of the subject matter so that the management can make considered judgement or informed decision on the basis of your findings

4. Diagnostic: Though sounds more of clinical nature, diagnostic research is often undertaken in business areas to solve chronic issues that remain unsolved for quite some time. One example is employee absenteeism. In this type of research, you are both an insider and outsider. You have to be passionate in solving the issue and at the same time display a sense of neutrality. This is because you are handling sensitive matter of employees and even more discreet matter such as absenteeism. You approach this assignment with open mind and seek to get in-depth knowledge by identifying symptoms, causes and effect. You will distinguish between chaff and grain, symptoms and causes, under-lying reasons and obvious explanations. Your data gathering must be discreet and borders on confidentiality. In most cases you will select a sample from a large group or work on selected employees of a critical department

5. Investigative: A minuscule version of a diagnostic research, this type narrows down the field of inquiry to a specific factor or phenomenon. An apt example is carelessness of an employee that caused a fire in the factory. You are expected to survey the factory, understand the cause, identify the party involved, and file evidence against such an employee. You will assess the cost of damage, obtain explanation from the party concerned, and ascertain the extent of contributory negligence on the part of management. You will conclude with what action to be taken against the party concerned and what steps to be taken to avoid such accidents in future

6. Normative: This is completely different research from the previous ones. Here you study and analyse issues to set norms, standards or parameters. Often these are expressed in quantitative forms. Where qualitative form is selected norms would tend to be general requirements or maxims. Norms can range from broader aspects such as values and characteristics to narrow aspects of eligibility. Setting accounting and auditing standards in a business is a perfect example of a normative research

7. Predictive: This research type is also known as causal research as it sets out to trace the cause and effect of a phenomenon. In business, predictive research can take the form of “If----When “scenarios. Basically a predictive research indicates the set of results when a particular cause takes place. Predicting such results have nothing to do with soothsaying but anchored on the scientific method of testing a hypothesis. Loosening credit control leading to pile of bad debts is a tested example of predictive research

8. Prescriptive: A prescriptive research is based on designing a specific solution to a known issue. Generally such a known issue emanates from the gap between what is desired and what is currently available. A business researcher embarks on doing this, after examining the relevant data and variables that impact and influence the situation; after critically evaluating the business as a whole; after exhausting all other possibilities of solutions that are found in available literature. Hence, a prescriptive research is the most original in terms of outcome. Designing an organizational system is a fitting example of a prescriptive research.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

 

How to generate Business Ideas?

Enthusiasm has no limits when it comes to talk about ideas. Oftentimes, you bump across the guy who says to you “Listen, I have an idea”. Depending on the circumstances you are in generating ideas can be quick or time consuming. During an emergency everybody starts thinking and an excellent workable idea pops out. But in the case of family, business, educational pursuits, sports, military ventures and political manoeuvring, creating the right idea is time consuming. There are seven ways in which you can generate successful ideas that work in most of the fields. As a business adviser I give pride of place to generating business ideas:

1. Reflective Thinking: This is the fountain that springs most successful ideas in business, technology and activities that border on the profit motive. In reflective thinking you regurgitate like a cow in the gate, of what you have learned, what you have heard and what you have felt. You marshal these facts of wisdom; re-visit these and make connections between you and the facts gathered. Thereafter, you examine the facts, correct the errors tie the loose-ends and embark on the journey of re-learning. You fuse many limbs of the idea into a cohesive whole and arrive at a business idea that has the potential to be turned into a practical and successful one

2. Studied imagination: I rate this process as the second most important way to generate good business ideas. In this process you enmesh both subjectivity and objective analysis. What you have studied in college, business and family relationship is your objective part which you will weld with imagination that flies out to realm of un-fathomed areas. Icarus saw how birds fly and fitted him with wings made of wax he soared over the sky. For his bad time he came close to the Sun which resulted in the melting of the wings. Consequently, he started to fall. You are not going to repeat this. Instead, you will steer your imagination backed by your objective facts could easily land in a workable business idea

3. Bright Sparks: Unlike studied imagination bright sparks give you an idea all of a sudden. It may be related to the circumstance you are in or something un-related but connected to your circumstance. Archimedes found his theory of floating body after immersing in the water tub. His theory ran thus: any object, wholly or partially immersed in a fluid, is buoyed up by a force equal to the weight of the fluid displaced by the object. This theory has worked wonders in business applications

4. Observing Nature: Newton found his theory of gravity after observing the fall of apple from the tree. Natural phenomenon has objective lessons for you. Scriptures talk about this as a measure of reward or punishment from the God. Naturalists think otherwise. They opine that these phenomena are result of cause and effect which were later tested in science and arts. By observing nature, business persons have fashioned ventures from food to outer space-physics

5. Your Experience: As you agree with me, experience is a better teacher. Your track experience in a chosen career can give you plenty of ideas whose success rate is much higher than the ones your green horn colleague boasts about. A seasoned person with plenty of experience and insight generates quick and workable ideas than MBA graduates because he prefers to err on the side of caution rather than jump head along into a hole of fire

6. Brainstorming: It is not necessary that you should do a brainstorm session in a class room setting to get brilliant ideas. When you meet up with friends, colleagues and family members make it a point to talk about new idea for a business. Allow them to speak their heart out. Never interrupt. Garner points and trends. Now you do your own calculus picking one point here one trend there and bring together to get a raw idea. After refinement and faceting you will end up having a remarkable one. Call it gold mine

7. Recycling Ideas: For want of better expression, I am using the phrase recycling ideas. in fact you are borrowing it lock, stock and barrel. Lest you are accused of plagiarism or indicted for copyright violations you calibrate the idea; tweaking and tinkering. The result can be anything: Improvement, Adaptation or Re-make. Sadly, 90 % of the ideas that float in the market are just re-cycling stuff.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/