Sudha has just passed her class XII with 90% marks and was to start her own business but was unable to decide about the nature of business. Her friend, Sumita suggested her to seek professional help.

One day during the morning walk her grandmother fell down in park. She observed that her grandmother often forgets to take her medicines. She thought that the same problem might be faced by other old people. She got an idea from here to start a business, to develop an instrument for old people that could be fitted with an electronic device connected to the mobile phones of members of their family which could indicate the location of old people when they go outside their homes. This device was to be kept in their pockets. She also thought to fit a timer in the instrument that could remind the old persons about the time of taking their medicines. She also made it a point to observe her grandmother sometimes during the morning walk to see the functioning of the device. Sudha also studied pros and cons of production before launching it.

She contacted a professional, Sanjay, as advised by her friend, and asked him to give his valuable technical assistance and capital to finance her ideas.

Which of the following concept described in the above paragraph, helped Sudha in structuring her idea for solving the problem?

Product Identification

Product identification: After opportunity spotting and scanning of the environment, an entrepreneurial idea should lead to a definite product. An idea should lead the entrepreneur to a definite product/service which he can sell. So the first step is to obtain a concept of the product or service suggested by one idea. We should also see whether this product is already available in the market or not. If it is, then we should identify the reason for introducing the same product or service in the market. For example, innovating a new pendrive especially for teachers which will have a built in antivirus and which can be worn like a watch so it minimises the problem of losing the pendrive.

In the present case the product conceived by Sudha is an instrument for old people that could be fitted with an electronic device connected to the mobile phones of members of their family which could indicate the location of old people when they go outside their homes.