Chapter 3

Chapter 3

Developing Entrepreneurial creativity and innovation CHAPTER 3 Villa College Chapter outline Part I What is Creativity? Process of Creativity Barriers to Creativity How to generate creative ideas? Characteristics of creative individual

Villa College Entrepreneurial Creativity Five action areas Villa College Entrepreneurial Leadership Villa College Creativity, Innovation & Entrepreneurship Villa College

Creativity A "new" idea is a combination of old elements. It is your ability to combine ideas in a unique way or to make useful associations among ideas. "There is virtually no

problem you cannot solve, no goal you cannot achieve, if you know how to apply the creative powers of your mind, like a laser beam, to cut through every difficulty in your life and your work." Villa College Dont believe in experts!!!!!!!!!! TV will not be able to hold onto any market it capturers after the 1st six months. People will soon get tired of staring into a box every night - Daryl F. Zanuck, head of 20th Century Fox in 1946

Thats an amazing invention. But who would ever want to use one of them? - US President Rutherford B. Hayes after participating in a trial teleconveration between Washington & Philadelphia in 1876 Villa College The Whats Villa College What is it?

What are the components? What is the process? What stops it? What helps it? What are the steps to develop? Creativity; the ability to bring something new into existence involves the development of UNIQUE & NOVEL responses to problems / opportunities

ability to combine ideas in a unique way the ability to make or otherwise bring into existences something new, whether a new solution to a problem, a new method or device, or a new artistic object or form new and useful Villa College

Creativity; Creative solutions are more than ideas, they must work in the real world. A creative solution has 3 attributes, It is NEW It is USEFUL, in that it solves the problem It is FEASIBLE, given the messy real

world constrains like time & money Villa College Entrepreneurial Creativity can be defined as ; coming up with innovative ideas and turning them into value-creating profitable business activities Entrepreneurial creativity = creativity entrepreneurial action

Villa College Some Well known definitions Creativity involves development of unique & novel responses to problems & opportunities Schermerhom, Hunt & Osborn, 2003 Creativity is the ability to produce work that is novel, high in quality and appropriate Villa College

- Sternberg, Kaufman & Pretz, 2002 Why Creativity is essential for Entrepreneurs? Its the starting point of invention or spotting an opportunity Creativity provides entrepreneurs to develop an ability to see, recognize & create opportunities where other find only problems

Let entrepreneurs to analyze a problem from every possible angle Essential for survival, growth expansion & most importantly for building competitive advantage Villa College From Creativity to Innovation Villa College

Entrepreneurial Creativity in Individuals Villa College Components of Creativity Villa College The Process of Creativity Incubation Knowledge Accumulation

Villa College Creative Process Evaluation & Implementation Ideas Creativity & creative thinking Creativity Bringing into existence an idea that is new

An innate talent that you were born with OR a set of skills that can be learned, developed and utilized in daily problem solving Villa College Creative thinking Barriers to Creativity Personal Beliefs Fear of Criticism Barriers to Creativity

OverManagement Villa College Stress Blocks & Blockbusters to creativity Making assumptions Check assumptions Following the rules Breaking the rules

Villa College Blocks & Blockbusters to creativity Over reliance on logic Using imagination & intuition Fear of failure Risk taking culture Villa College Conceptual Blocks

Conceptual Blocks Villa College Mental obstacles that constrains the way the problem is defined & limit the number of alternative solutions thought to be relevant Lateral Thinking Lateral thinking is concerned with

generation of new ideas. It is also concerned with "breaking out of the concept prisons of old ideas. Villa College Vertical Vs. Lateral Thinking Vertical Thinking Lateral Thinking Chooses Changes Looks for what is right

Looks for what is different One thing must follow directly from another Makes deliberate jumps Concentrates on relevance Welcomes chance intrusions Moves in the most likely directions Explores the least likely directions Villa College Unlocking your Creativity

get away from old ideas by Brian Tracy Admit when you are wrong Face up to mistakes Be flexible with new information Be willing to cut your losses Villa College

5 Rules of Creative Thinking 1. Don't let assumptions stifle your capacity 2. Discipline yourself to take time to look for alternatives 3. To get solutions, you must create an atmosphere where you and others are comfortable expressing new ideas (even if you make mistakes by coming out with bad ideas), an atmosphere where ideas are not immediately evaluated and attacked

4. To open up true creativity, you have to shed inhibitions and move from left-brain dominated by numbers toward rightbrain the original thinking 5. If you are working on a problem and getting nowhere, leave it for a while and let your subconscious your depth mind to take over Villa College Characteristics of Creative Individuals

1. Remarkably humble & proud at the same time 2. Passionate about their work, yet can be extremely objective about it 3. Brave to try new things 4. Open minded & willing to accept criticism

5. Have a combination of playfulness & discipline or responsibility & irresponsibility 6. Have high self-control 7. Goal directed, deliberate & considerate in making any decision 8.

Willing to take calculated risks Villa College Techniques of generating creative ideas Brainstorming Forced Analogy Do It

Mind Mapping Nominal Group Villa College Mind Map Villa College The Six Thinking Hats The Six Thinking Hats proposal analysis tool invented by Edward de Bono is particularly useful for evaluating innovative and provocative ideas

The method is a framework for thinking and can incorporate lateral thinking The Six Thinking Hats tool: encourages Parallel Thinking encourages full-spectrum thinking separates ego from performance. Villa College Each 'Thinking Hat' is a different style of thinking

Villa College White Hat With this thinking hat you focus on the data available. Look at the information you have, and see what you can learn from it. Look for gaps in your knowledge, and either try to fill them or take account of them. This is where you analyze past trends, and try to extrapolate from historical data. Villa College Red Hat

'Wearing' the red hat, you look at problems using intuition, gut reaction, and emotion. Also try to think how other people will react emotionally. Try to understand the responses of people who do not fully know your reasoning Villa College Black Hat Using black hat thinking, look at all the bad points of the decision. Look at it cautiously and defensively. Try to see why it might not work. This is important because it highlights the weak points in a plan. It allows you to eliminate them, alter them, or prepare contingency plans to counter them. Black Hat thinking helps to make your plans 'tougher' and more resilient. It can also help you to spot fatal flaws and risks before

you embark on a course of action. Black Hat thinking is one of the real benefits of this technique - many successful people get so used to thinking positively that often they cannot see problems in advance. This leaves them under-prepared for difficulties Villa College Yellow Hat The yellow hat helps you to think positively. It is the optimistic viewpoint that helps you to see all the benefits of the decision and the value in it. Yellow Hat thinking helps you to keep going when everything looks gloomy and difficult Villa College Green Hat

The Green Hat stands for creativity. This is where you can develop creative solutions to a problem. It is a freewheeling way of thinking, in which there is little criticism of ideas. Villa College Blue Hat 'Blue Hat Thinking' stands for process control. This is the hat worn by people chairing meetings. When running into difficulties because ideas are running dry, they may direct activity into Green Hat thinking. When contingency plans are needed, they will ask for Black Hat thinking, etc.. Villa College

Chapter outline Part II What is Innovation? Types of innovation Sources of innovation Barriers innovate Development of innovation & creativity Villa College Invention Vs. Innovation synonyms????

Invention -An invention is a new configuration, device, or process -is the creation of new products, processes, and technologies not previously known to exist Innovation An innovation is associated with the development of a new or better product or process is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or

improved products, technology, or services Villa College Doing things differently Invention Vs. Innovation synonyms???? Invention Innovation Extreme end of a development of a Associated with the development new product or process of a new or better product or process All inventions are not commercially viable

Innovations are more commercially viable A product of research More than just invention Villa College Innovation defined The means to break away from established patterns - Henry Mintzberg (1983)

The specific tool of entrepreneurs, that means by which they exploit change as an opportunity for a different business or different service - Peter Drucker (1985) The prime tool entrepreneurs use to create or exploit opportunities Villa College - Michael Porter (1990) Creativity & Innovation

Creativity Bringing into existence an idea that is new The practical application of creative ideas Villa College Innovation The relationship?????? Creativity is the starting point whether

it is associated with invention or opportunity spotting. The creativity is turned into practical reality (a product) through innovation. Entrepreneurship then sets that innovation in the context of an enterprise (the actual business)which is something of value - Bolton & Thompson (2000) Villa College Relationship between innovation & Entrepreneurship The Copier The High Innovator The

The Struggler Innovation & Creativity Low Low High Entrepreneurshi p Villa College Source : Entrepreneurship & Small Business Paul Burns

The Value of Innovation The balance between adapting and revolutionizing Villa College The Process of Innovation Opportunity Delivery of Innovation Villa College

Opportunity evaluation Innovation Types of innovation Invention Extension Duplication Synthesis Villa College

7 Sources of Entrepreneurial Opportunities for innovation by Drucker Internal The unexpected the unexpected success, the unexpected failure, the unexpected outside event 2. The incongruity between reality as it actually is and reality as it is assumed to be or as it ought to be 3. Innovation based on process need; any inadequacy in a business process that is taken for granted 4. Changes in industry structure or market structure that catch everyone unawares 1. External 5. Demographic changes caused by things like wars,

migrations, medical developments 6. Changes in perception and fashion brought about by changes in the economy 7. Changes in awareness caused by new knowledge Villa College Dos & donts on innovation by Peter Drucker DOs Analyze the opportunities Go out to look, to ask, to listen Keep it simple, keep it focused Start small try to do one specific thing Think big aim at market leadership

DON'Ts Don't try to be too clever Don't diversify, don't splinter, don't try to do too many things at once Don't undershoot, or you will simply create an opportunity for competition Don't try to innovate for the future Villa College 5 stage approach to purposeful, systematic innovation by Peter Drucker 1.

Start with the analysis of opportunities (inside the firm & its industry & in the external environment) 2. Look at the financial implications, but also talk to people, particularly customers & analyze how to meet the opportunity 3. An innovation must be simple & has to be focused 4.

To be effective, start small. Take an incremental approach 5. Aim at leadership & dominate the competition as Villa College soon as possible in the particular area of What prevents people from being creative or innovative? Adapted from Effective Innovation: How to Stay Ahead of the Competition,

BarriersJohn AdairBlocks and Limiting Beliefs Negative The tendency to focus on the negative aspects Attitude of problems and expend energy on worry. Switch To Positive Attitude Seek the inherent opportunities in the situation. Fear of Failure Fear of looking foolish or being laughed at. Failure is a necessary condition of and a stepping stone to

success. Executive Stress Not having time to think creatively. The overstressed person finds it difficult to think objectively at all. Unwanted stress reduces the quality of all mental processes. Managing day-to-day operations is important, but it is new game changing breakthroughs that will launch company into new markets, enable rapid growth, and create high return on investment. Following Rules

A tendency to conform to accepted patterns of belief or thought the rules and limitations of the status quo. Some rules are necessary, but others encourage mental laziness. "Every act of creation is first of all an act of destruction." Pablo Picasso Making Many both conscious and unconscious Assumptio assumptions restrict creative thinking. ns Identify and examine the assumptions you are making to

ensure they are not excluding new ideas. Challenge assumptions. Investing all your intellectual capital into logical Overor analytical thinking the step-by-step reliance on approach excludes imagination, intuition, Logic feeling or humor. Villa College "Innovation is not the product of logical thought, although the result is tied to logical structure." Albert Einstein Barriers to Innovation

Organizational Personal or Individual Villa College

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