Entrepreneurs: Imagination and Creativity Entrepreneurs blend imaginative and creative thinking with a systematic, logical process ability. Potential entrepreneurs are always looking for unique opportunities to fill needs or wants. They sense economic potential in business problems by continually asking “What if…?” or “Why not…?” They develop an ability to see, recognize, and create opportunity where others find only problems. An entrepreneur will analyze a problem from every possible angle: What is the problem? - What costs are involved? Whom does it affect? - Can it be solved? How does it affect them? - Would the marketplace pay for a solution? © 2009 South-Western, a part of Cengage Learning. All rights reserved.

Table 5.2 Two Approaches to Creative Problem Solving Adaptor Innovator Employs a disciplined, precise, methodical approach Approaches tasks from unusual angles Is concerned with solving, rather than finding, problems Discovers problems and avenues of solutions Attempts to refine current practices Questions basic assumptions related to current practices Tends to be means oriented Has little regard for means; is more interested in ends Is capable of extended detail work Has little tolerance for routine work Is sensitive to group cohesion and cooperation Has little or no need for consensus; often is insensitive to others Source: Michael Kirton, “Adaptors and Innovators: A Description and Measure,” Journal of Applied Psychology (October 1976): 623. Copyright © 1976 by The American Psychological Association. © 2009 South-Western, a part of Cengage Learning. All rights reserved.

Table 5.6 Innovation in Action Type Description Examples Invention Totally new product, service, or process Wright brothers—airplane Thomas Edison—light bulb Alexander Graham Bell—telephone Extension New use or different application of an already existing product, service, or process Ray Kroc—McDonald’s Mark Zuckerberg—Facebook Barry Sternlicht—Starwood Hotels & Resorts Duplication Creative replication of an existing concept Wal-Mart—department stores Gateway—personal computers Pizza Hut—pizza parlor Synthesis Combination of existing concepts and factors into a new formulation or use Fred Smith—Fed Ex Howard Schultz—Starbucks © 2009 South-Western, a part of Cengage Learning. All rights reserved.

Principles of Innovation Be action oriented. Innovators always must be active and searching for new ideas, opportunities, or sources of innovation. Make the product, process, or service simple and understandable. People must readily understand how the innovation works. Make the product, process, or service customer-based. Innovators always must keep the customer in mind. Start small. Innovators should not attempt a project or development on a grandiose scale. They should begin small and then build and develop, allowing for planned growth and proper expansion in the right manner and at the right time. © 2009 South-Western, a part of Cengage Learning. All rights reserved.

Principles of Innovation Aim high. Innovators should aim high for success by seeking a niche in the marketplace. Try/test/revise. Innovators always should follow the rule of try, test, and revise. Learn from failures. Innovation does not guarantee success. Follow a milestone schedule. Every innovator should follow a schedule that indicates milestone accomplishments. Reward heroic activity. Innovative activity should be rewarded and given the proper amount of respect. Work, work, work. It takes work--not genius or mystery--to innovate successfully. © 2009 South-Western, a part of Cengage Learning. All rights reserved.