MGMT20128 Project: Idea Selection, Business Model, and Pitch

This project presents a comprehensive business plan for a smart toys venture targeted at children aged 15, focusing on enhancing innovation, creativity, and cognitive skills. The project addresses the problem of needing creative solutions, highlighting the benefits of creativity for CEOs and the learning process. The proposed business model includes the sale of physical toys and subscription-based memberships, with detailed financial feasibility analysis, including income streams, profit margins, and overhead costs. Operational feasibility is addressed through product improvements based on feedback and sales supporting less fortunate children. The project outlines the scope and scalability of the idea, including expansion plans and technological enhancements. It also details the investor's offerings, including development capital, network, distribution, and experience, and what the investor is offered in return, such as equity and control. Cash flow projections for two years are provided, along with references to relevant academic literature supporting the business concept. The assignment also includes an analysis of the validation process for a business idea, focusing on market and customer validation, as well as the structure of an investor pitch, including key aspects of the business model to highlight. Workshop activities include consensus-building, reverse brainstorming, and the preparation of supporting materials for the pitch, drawing on resources such as Forbes and Inc. to structure a compelling presentation.

Idea Selection and Business
Pitch
Name
Institution
Date

Overview
 Smart toys.
 Educational games.
 Children age 15.
 Enhance innovation and creativity
 Improve motor, skills, cognitive and speech.

Problem to be solved
 Many problems require creative solutions.
 Chief executive officers require creativity skills.
 Creativity enhances intellectual capacity.
 Creativity facilitates learning process.
 Creativity encourages innovation.

Idea Monetization
 Sell of physical toys.
 Subscription method.
 Life time membership fees.

Financial Feasibility
 Three income streams proposed.
 High profit margin from sales.
 Huge overhead costs.
 Enough money to run the business and expand.

Operation feasibility
 The smart toys will be improved through reviews from teachers and parents.
 Sales will support less fortunate children.
 It offers immediate value and facilitates reduction of cost.
 Sales and marketing carried out through the firms website.

Scope and scalability
 Children in the local market.
 Expansion to other parts of the world.
 The idea can be scaled to introduce specific skills.
 Other technology can be incorporated to enhance user experience.

What the investor is offering
 Development capital.
 Network.
 Distribution.
 Experience.

What investor is offered
 Equity in the business.
 Control in the firm.
 Profits from sales generated.
 Market share in the industry.

Cash flow projections for two years
 The company will experience huge expenses in the first year associated to the cost of
manufacturing plants and equipment.
 The second year will be characterized by huge sums of money flowing into the
business as a result of reduction in expenses attributed to initial capital.

References
 Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations: Making progress, making
meaning. Research in Organizational Behavior, 36, 157-183.
 Eling, K., Langerak, F., & Griffin, A. (2015). The performance effects of combining rationality and intuition in making early new product idea evaluation
decisions. Creativity and Innovation Management, 24(3), 464-477.
 Grubenmann, T. (2018, April). Monetization Strategies for the Web of Data. In Companion of the The Web Conference 2018 on The Web Conference 2018 (pp. 813-
817). International World Wide Web Conferences Steering Committee.
 IBM 2010 Global CEO Study: Creativity Selected as Most Crucial Factor for Future Success. (2010). Retrieved from
https://www-03.ibm.com/press/us/en/pressrelease/31670.wss
 Lewellen, J., & Lewellen, K. (2016). Investment and cash flow: New evidence. Journal of Financial and Quantitative Analysis, 51(4), 1135-1164.
 Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
 Perry-Smith, J. E., & Mannucci, P. V. (2017). From creativity to innovation: The social network drivers of the four phases of the idea journey. Academy of
Management Review, 42(1), 53-79.
 Reiter-Palmon, R., Kennel, V., de Vreede, T., & de Vreede, G. J. (2019). The Role of Structure and Instruction on Creative Idea Evaluation and Selection. In The
Palgrave Handbook of Social Creativity Research (pp. 209-224). Palgrave Macmillan, Cham.
 Sääksjärvi, M., & Hellén, K. (2018). Idea selection using innovators and early adopters. European Journal of Innovation Management.
 Santos, G., Afonseca, J., Lopes, N., Félix, M. J., & Murmura, F. (2018). Critical success factors in the management of ideas as an essential component of
innovation and business excellence. International Journal of Quality and Service Sciences, 10(3), 214-232.
 Watt, G., & Abrams, H. (2019). Lean entrepreneurship: Innovation in the modern enterprise.New York: Apress.
 Zhu, Y., Ritter, S. M., Müller, B. C., & Dijksterhuis, A. (2017). Creativity: Intuitive processing outperforms deliberative processing in creative idea
selection. Journal of Experimental Social Psychology, 73, 180-188.