Ideas and opportunities are related to one another, but they are distinct constructs. Ryan Allis (2008, p. 1) identifies the differences between an idea and an opportunity as follows: "You can build it and get it to the market; Customers
will buy it; There aren't too many competitors detracting from your efforts; At the end of the day you can still make a profit from it." In other words, an idea may precede an opportunity or create one, but the idea is an opportunity "when it is timely, attractive, achievable, durable, fills a need, and provides value to the buyer" (Allis 2004, p. 1). Ideas, in order to be a true opportunity, must be based on a demonstrated need, a ready and accessible market, and the ability to generate a return on investment that is sufficient to justify the cost of the idea.
Ideas and opportunities, therefore, are linked in that for an idea to be an opportunity, there must be a reason to believe that the market will validate the idea and that the management team has the ability to execute the idea (Allis 2004, p. 1). Many seemingly feasible ideas are found, on closer examination, to fail in achieving opportunity status. One recalls the introduction some years ago of "New Coke," which did not in any way resonate with consumers and which was a major embarrassment for the firm.
Indeed, Allis (2004, p.1) believes that business ideas are "a dime a dozen. What really matters is the execution and quality of the team. It is not the idea. It is the people, and their ability to execute." Lacking this ability - or, as significantly, lacking a receptive market - means that an idea is not and cannot become an opportunity. Allis (2008, p. 1) argues that business ideas should be evaluated suing such techniques as the RAMP Model - an acronym standing for Return on investment, Advantages to be gained, Market identification, and Potential for adequate rewards versus level of risk. Risk is inevitable in tr...