7
Idea Development
Back in Business · Strand 2: Understanding Enterprise
3 Learning
Outcomes
Outcomes
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7.1
Determine the factors that impact on the development of business ideas
Determine
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DETERMINEEstablish or ascertain based on information usually after investigation. Cover each factor with what it is and how it impacts idea development.
Organisational Culture
The values, norms and leadership style within a business.
How it impacts idea development:A charismatic leader like Steve Jobs inspires staff to innovate. An autocratic leader limits idea generation because staff may not feel valued enough to offer new ideas. A culture that encourages and rewards intrapreneurship leads to more ideas.
+How it impacts idea development:A charismatic leader like Steve Jobs inspires staff to innovate. An autocratic leader limits idea generation because staff may not feel valued enough to offer new ideas. A culture that encourages and rewards intrapreneurship leads to more ideas.
Availability of Resources
Financial and human resources available to invest in research and development.
How it impacts idea development:Businesses need to allocate time and money to develop new ideas. Google gives staff 20% of their working time to work on innovation. Without sufficient financial or human resources, idea development will be limited.
+How it impacts idea development:Businesses need to allocate time and money to develop new ideas. Google gives staff 20% of their working time to work on innovation. Without sufficient financial or human resources, idea development will be limited.
Market Trends & Consumer Behaviour
Shifts in what consumers want and how settled or disrupted a market is.
How it impacts idea development:When a market changes, there are greater opportunities for new products. For example, increasing environmental awareness has led to alternatives to plastic straws and single-use packaging.
+How it impacts idea development:When a market changes, there are greater opportunities for new products. For example, increasing environmental awareness has led to alternatives to plastic straws and single-use packaging.
Technological Advancements
New technologies that create previously impossible business opportunities.
How it impacts idea development:Innovations not possible before are now available. Smartphones, for example, created entirely new industries such as food delivery services like Deliveroo and Just Eat.
+How it impacts idea development:Innovations not possible before are now available. Smartphones, for example, created entirely new industries such as food delivery services like Deliveroo and Just Eat.
Legal Requirements
Laws, regulations and planning rules that restrict or enable certain business ideas.
How it impacts idea development:Some business ideas may not be legally possible even if they would solve a real problem. For example, modular housing ideas in Ireland cannot be developed fully until legal changes are made to allow such schemes.
+How it impacts idea development:Some business ideas may not be legally possible even if they would solve a real problem. For example, modular housing ideas in Ireland cannot be developed fully until legal changes are made to allow such schemes.
Sources of Business Ideas (students learn about)
Internal sources
Personal experience / solving own frustrations
Brainstorming sessions — all ideas welcome
Suggestion boxes, encouraging intrapreneurship
Dedicated R&D department (e.g. Glanbia)
Problem solving / design thinking approach
+Brainstorming sessions — all ideas welcome
Suggestion boxes, encouraging intrapreneurship
Dedicated R&D department (e.g. Glanbia)
Problem solving / design thinking approach
External sources
Copying competitors while respecting patents
Market trends and consumer data analytics
Social media showing real-time trends
Import substitution — producing an Irish version of an imported product (e.g. Fulfil protein bars)
+Market trends and consumer data analytics
Social media showing real-time trends
Import substitution — producing an Irish version of an imported product (e.g. Fulfil protein bars)
7.2
Outline design thinking as an innovative approach to idea development and appreciate how the process is iterative and both solution- and person-centred
Outline / Appreciate
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OUTLINEGive the main points. Cover the definition, the three characteristics, and the four phases in order.
Design thinking is an innovative, non-linear approach to the development of products and services which focuses on solutions for the end user. The process puts the human at the centre — first understanding their needs and problems, then developing innovative solutions to those problems.
Person-centred
The business tries to understand user problems and empathise with them before developing any solution.
Solution-centred
The business defines the problem and focuses entirely on imagining and developing practical ways to solve it.
Iterative
Trial and error is used. The team creates, tests, improves, and re-tests ideas until they find the best possible solution.
The four phases — tap each to read more
1
Clarify
Person-centred phase
Gain a deep understanding of the user's problem through observation, qualitative interviews, focus groups and market research.
The goal is to empathise with the end user before any solution is developed. E.g. Airbnb researchers observed how hosts prepared their homes and interviewed guests about what mattered most to them.
The goal is to empathise with the end user before any solution is developed. E.g. Airbnb researchers observed how hosts prepared their homes and interviewed guests about what mattered most to them.
2
Ideate
Solution-centred phase
Teams brainstorm a wide range of creative solutions to the problem identified in the Clarify phase. No idea is immediately dismissed — the goal is to think outside the box and explore as many possibilities as possible.
E.g. Airbnb teams brainstormed every possible way to make listings more appealing to potential guests.
E.g. Airbnb teams brainstormed every possible way to make listings more appealing to potential guests.
3
Develop
Iterative phase begins
The most promising ideas from Ideate are turned into prototypes — first working samples that let the team explore how solutions might function in reality. Prototypes can range from simple sketches to interactive models.
E.g. Airbnb developed a professional photography programme as a prototype solution to improve listing quality.
E.g. Airbnb developed a professional photography programme as a prototype solution to improve listing quality.
4
Implement
Test and refine
Prototypes are tested with real users to gather feedback. The iterative process means the team reviews this feedback and may return to earlier stages to refine the idea before testing again.
E.g. Airbnb tested the photography programme in certain markets first. When bookings increased significantly, it was expanded across the whole platform.
E.g. Airbnb tested the photography programme in certain markets first. When bookings increased significantly, it was expanded across the whole platform.
7.3
Appreciate the importance of conducting a feasibility study to evaluate a business idea
Appreciate
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APPRECIATERecognise the meaning, value or importance. For each type: state what it checks, then explain why it is important.
Feasibility study: An assessment carried out before launching a new business idea to determine whether it is practical, profitable, and worth investing in. It helps a business make informed decisions and reduce the risk of failure.
| Type | What it checks | Why it matters |
|---|---|---|
| Market feasibility | Level of demand, size of target market, existing competitors | Reduces risk — prevents launching a product with little or no demand, saving time and investment |
| Financial feasibility | Whether the idea can be profitable — costs, funding, cash flow, potential profits | Increases profit potential — prevents producing something that will not make money or that the business cannot afford |
| Production feasibility | Whether the business has staff, equipment and suppliers needed to produce the idea | Saves resources — ensures the business does not commit to an idea it cannot physically deliver |
| Environmental feasibility | Environmental impact — waste management, emissions, compliance with environmental laws | Ensures sustainability — avoids fines and reputational damage while supporting ethical business practices |
| Legal feasibility | Compliance with all laws — copyright, intellectual property and employment legislation | Prevents fines — avoids legal issues and delays that could halt production or damage the business |
Click an LO to see its mind map.
📌 7.1 Factors Impacting Idea Development
Idea
Development
Development
Five Factors
Organisational culture: charismatic leaders inspire ideas; autocratic style limits them
Availability of resources: time, finance and staff must be allocated (e.g. Google 20% time)
Market trends & consumer behaviour: disrupted markets create new opportunities
Technological advancements: new tech opens previously impossible ideas (e.g. smartphones)
Legal requirements: some ideas may not be possible until laws change
Internal Sources
Brainstorming | R&D department | Intrapreneurship | Problem solving
External Sources
Copying competitors | Consumer data | Import substitution
📌 7.2 Design Thinking
Design
Thinking
Thinking
3 Characteristics
Person-centred: understand and empathise with user needs first
Solution-centred: define the problem, then focus on ways to solve it
Iterative: trial and error — create, test, improve, repeat
4 Phases (in order)
1. Clarify: understand the user's problem via observation, interviews, research
2. Ideate: brainstorm wide range of solutions without judgement
3. Develop: turn best ideas into prototypes to test in reality
4. Implement: test with real users, gather feedback, refine and repeat
Key point
Non-linear: the process can return to earlier phases after testing
📌 7.3 Feasibility Study
Feasibility
Study
Study
Purpose
Assesses if a business idea is practical, profitable and worth investing in before launch
5 Types
Market: Is there enough demand? Reduces risk
Financial: Can it be profitable? Increases profit potential
Production: Can we actually make it? Saves resources
Environmental: What is the eco-impact? Ensures sustainability
Legal: Are we compliant? Prevents fines
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7.2Outline how ProjectOne can use each of the four phases of design thinking to successfully meet GlowInc's expectations.HL Paper 1 · Q1(d)▼
OutlineGive the main points; restrict to essential points of information.
Context — GlowInc wants an organic, sustainable nail polish. ProjectOne uses design thinking to develop it.
1. ClarifyThis phase involves understanding the user's needs through observation, focus groups and market research. ProjectOne can take a person-centred approach by working closely with GlowInc to explore consumer attitudes toward traditional nail polish and identify what eco-conscious customers are really looking for in a sustainable beauty product.
2. IdeateThis phase focuses on brainstorming multiple possible solutions to the defined problem. Using a solution-centred approach, ProjectOne can lead creative sessions with the forward-thinking team to generate a wide range of ideas for natural nail polish formulas, packaging innovations and brand experiences that align with GlowInc's sustainability goals.
3. DevelopThe best ideas are turned into prototypes that can be tested and improved. ProjectOne can adopt an iterative approach by creating early versions of the nail polish using state-of-the-art equipment and different sustainable materials. These prototypes are tested and modified based on how well they meet performance and environmental standards.
4. ImplementThis final phase involves testing the product with real users and refining it based on feedback. ProjectOne can carry out small-scale testing with target consumers, gathering feedback to refine the product further. This iterative process ensures the final solution meets user expectations for both quality and sustainability, aligning with GlowInc's values.
7.3Explain one function of a feasibility study when developing a new business idea.OL Paper 1 · Q5(b)▼
ExplainGive a detailed account including reasons or causes.
Possible solutions could include (pick any one and explain it fully)
Establish market feasibilityA feasibility study helps check if there is a viable market for the product or service. It involves researching market size, consumer needs, preferences and existing competitors to determine if there is enough demand before launching the idea. This prevents the business from investing time and money in something customers do not actually want.
Assess financial feasibilityThe study evaluates whether the business idea can be profitable and financially sustainable. It considers factors like cost of production, funding needs, pricing and the potential for profit. This prevents the business from starting something it cannot afford to run or that would not generate enough income to be viable.
Check legal feasibilityA feasibility study ensures the idea complies with relevant laws and regulations. This includes checking for issues like copyright infringement, intellectual property rights or employment legislation. It prevents future legal disputes or fines that could delay production or damage the business's reputation.
Assess production feasibilityThe study checks whether the business has the staff, equipment and suppliers needed to actually produce the idea. This ensures the business does not commit to something it cannot physically deliver, saving time and money.
