State the elements in the innovation process. Give the meaning of 'Problem Identification'. With the help of any two points, state how problem identification helps the entrepreneur.

Question

Accepted Answer

The **elements of the innovation process** are:

1. **Analytical planning** — Carefully identifying the product or service features, design, and the resources that will be needed.

2. **Organising resources** — Obtaining the required resources, materials, technology, human or capital resources.

3. **Implementation** — Applying the resources in order to accomplish the plans and deliver results.

4. **Commercial application** — Providing value to customers, rewarding employees and satisfying the stakeholders.

**Problem Identification** means recognising a roadblock in a situation that forces the entrepreneur to find a solution. It is the first step in converting a problem into a business opportunity.

Problem identification helps the entrepreneur in the following ways:

1. It helps bring out **new products** in the market — identifying a problem leads to the creation of new products that address it.
2. It helps **understand the problems and needs of the market** — by identifying who faces the problem and what the market acceptability of the solution is.

For example, many instant food products flooding the market today are a result of problem identification — the younger generation being career-oriented and having no time to cook.