Chapter 3 Recognizing and Creating Opportunity

Copyright © Houghton Mifflin Company. All rights reserved.3 | 2 January Tonight Items/questions from last week A brief review of the schedule/syllabus Discuss the homework (questions 4+5 page 60) Review Chapters 3 and 4…(Opportunities/Bus Models) Class workshop…Opportunity/Feasibility...(1-3 p.90) Discuss Elevator Pitches…..

Copyright © Houghton Mifflin Company. All rights reserved.3 | 3 Learning Objectives Explain the nature of creativity and problem solving Identify the challenges to creativity Discuss how to remove the roadblocks to creative thought Name some sources of new product/service ideas

Copyright © Houghton Mifflin Company. All rights reserved.3 | 4 Creativity Enables entrepreneurs to differentiate their businesses from competitors Is the basis for invention Is fundamental to problem solving Is a critical skill for recognizing or creating opportunity in a dynamic environment

Copyright © Houghton Mifflin Company. All rights reserved.3 | 5 Critical Concepts of Creativity Idea Business opportunity Opportunity recognition Opportunity creation

Copyright © Houghton Mifflin Company. All rights reserved.3 | 6 Creativity and Innovation What is known about creativity: –Function perspective - it is the production of novel and useful ideas. –Outcome perspective - it generates valuable, useful products and services, procedures and processes. –Certain environmental settings are conducive to creativity

Copyright © Houghton Mifflin Company. All rights reserved.3 | 7 The Nature of Creativity Creativity as a process: –Invention and process is not formulaic or linear –Certain definable patterns and activities can occur in any creative process: Connection Discovery Invention Application

Copyright © Houghton Mifflin Company. All rights reserved.3 | 8 Figure 3.1: The Invention Process

Copyright © Houghton Mifflin Company. All rights reserved.3 | 9 Challenges to Creativity No time for creativity No confidence No creative skills

Copyright © Houghton Mifflin Company. All rights reserved.3 | 10 Removing the Roadblocks 1.Design an environment to stimulate creativity –Minimize distractions –Devote time daily to quiet contemplation –Spend time in the places that best promote your creative thinking –Develop a creative company culture –Mix people up

Copyright © Houghton Mifflin Company. All rights reserved.3 | 11 Removing the Roadblocks (continued) 2.Keep track of ideas 3.Start with the familiar 4.Take advantage of a personal network 5.Return to your childhood 6.Think in opposites

Copyright © Houghton Mifflin Company. All rights reserved.3 | 12 Removing the Challenges to Problem Solving Restate the problem so as to uncover the real problem Identify the pros and cons for potential solutions Develop a decision tree

Copyright © Houghton Mifflin Company. All rights reserved.3 | 13 Decision Tree Analysis

Copyright © Houghton Mifflin Company. All rights reserved.3 | 14 Sources of Innovation Customers Newspapers and magazines Observation Demographic shifts Unexpected news events Trends and patterns of change New government regulation Emerging industries

Copyright © Houghton Mifflin Company. All rights reserved.3 | 15 New Product/Service Ideas Sources Technological Trends –Human Genome Project –Nanotechnology –Wireless Technology Who will have the next great idea?! The Strategic Conversation…Next Slide

Copyright © Houghton Mifflin Company. All rights reserved.3 | 16 Digital and Molecular Infrastructure Strategies From a 2008 Letter …”Computers will be 100 times faster still and storage will be 100 times cheaper. Many of the problems that we call artificial intelligence today will become accepted as standard computational capabilities… New and amazing computational capabilities will be born that we cannot even imagine today.”

Copyright © Houghton Mifflin Company. All rights reserved.3 | 17 Who will have the next great idea?! Technological Trends… Human Genome Project Nanotechnology Wireless Technology

Copyright © Houghton Mifflin Company. All rights reserved.3 | 18 Your Group Venture Your Group Presentations What are your roadblocks? Roadblock removal plan. Track your business ideas.