Entrepreneurship Management Creativity & Innovation

Concept Creativity – is the ability to bring something new into existence. One conceive of new ideas and their usefulness but may not necessarily take action to make it into reality. Innovation – the process of doing new things. It is the transformation of creative ideas into useful applications.

Creativity Process 1. Idea germination/recognition – the seeding stage of new idea. 2. Preparation/rationalization – conscious search for knowledge. 3. Incubation/fantasizing – subconscious assimilation of information. 4. Illumination/realization – recognition of idea as being feasible. 5. Verification/validation – application or test to prove idea has value.

Innovation vs. Invention Innovation – the transformation of an idea or resources into useful applications, which results in new product, service or process. Invention – the creation of something new that results in new knowledge.

Innovation Process 1. Analytical planning – to identify product design, market strategy, financial need. 2. Organizing resources – to obtain materials, technology, HR, capital. 3. Implementation – to accomplish organization, product design, manufacturing, services. 4. Commercial application – to provide value to customers, rewards to employees, revenues to investors, satisfaction for founders

Technological Innovation In technical terms, innovation is often explained as tangible products or processes that result from technological development. For technological innovation to succeed, there should be combination three factors: 1. Creative source 2. Champion 3. Sponsor

Creative Source The inventor/originator of the idea that led to the knowledge or vision of something new; the artist of creative endeavor. The creative source is an individual as organizations do not create ideas or incubate fantasies.

Champion The entrepreneur or manager who pursues the idea, planning its application, acquiring resources, establishes its market through persistent planning, organizing, leadership. The champion is also an individual who has the insight of developing ideas into action.

Sponsor The person or organization that makes possible the champion’s activities and the inventor’s dream through support that includes finance, contacts, advice. The sponsor may be an investor or an organization where corporate resources are allocated to innovative projects.

Change management in entrepreneurship development Entrepreneurs are called to be strategic thinkers but change has to incorporated with entrepreneurship. The following changes has evolved to be the opportunities for entrepreneurs: 1. Scientific knowledge 2. Process innovation 3. Industrial changes 4. Market changes 5. Demographic changes 6. Social and cultural changes

Success factors for entrepreneurs  The entrepreneurial team  Venture product or service  Market timing  Business ideology The success factors lies in the process of thinking different then others and thinking logically about market conditions and about the required skills to take over business.

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