Problem identification and idea fields

The essentials

Many successful enterprises begin with a simple question: "What problem do people face, and how can it be solved better?" Problem identification means carefully observing difficulties, inconveniences and complaints of customers, and then converting them into business ideas. A clearly defined problem leads to a focused solution.

Idea fields are broad areas from which business ideas can be drawn. Common idea fields include:

• Natural resources: agriculture, forest produce, minerals, marine products, for example food processing or herbal products.
• Existing products and services: improving, modifying or adding value to what already exists.
• Market-driven ideas: ideas based on what customers demand, including imported items that can be made locally.
• Trading-related ideas: buying and selling, distribution, exports and imports.
• Service sector: education, health, repairs, tourism, logistics, IT services.
• Knowledge and technology: new uses of science, software and research.

Key points

• Methods to generate ideas: observation, customer surveys, brainstorming, studying complaints, visiting trade fairs, reading journals.
• Brainstorming: a group freely produces many ideas without criticising them at first; evaluation comes later.
• A problem statement should be specific: who faces it, when, and why.
• Not every idea is pursued; ideas are screened later for feasibility.

Exam tips

• Match the case to the idea field: a business using mango pulp from local orchards draws on natural resources; a phone repair kiosk is a service-sector idea.
• Remember the key rule of brainstorming: no criticism during idea generation.

Common mistakes

• Jumping to a solution before understanding the actual problem.
• Thinking ideas must be totally new; improving existing products is also a valid idea field.