1. Developing Entrepreneurial creativity and innovation
Chapter 3
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2. Chapter outline Part I What is Creativity? Process of Creativity
Barriers to Creativity
How to generate creative ideas?
Characteristics of creative individual
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3. Entrepreneurial Creativity – Five action areas
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4. Entrepreneurial Leadership
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5. Creativity, Innovation & Entrepreneurship
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6. ‘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."
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7. Don’t 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
“That’s an amazing invention. But who would ever want to use one of them?”
- US President Rutherford B. Hayes after participating in a trial tele-converation between Washington & Philadelphia in 1876
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8. The Whats What is it? What are the components? What is the process?
What stops it?
What helps it?
What are the steps to develop?
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9. ‘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”
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10. ‘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
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11. ‘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
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12. 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’
- Sternberg, Kaufman & Pretz, 2002
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13. Why Creativity is essential for Entrepreneurs?
It’s 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
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14. From ‘Creativity’ to ‘Innovation’
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15. Entrepreneurial Creativity in Individuals
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16. Components of Creativity
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17. The Process of Creativity
Incubation
Creative Process
Knowledge Accumulation
Ideas
Evaluation & Implementation
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18. Creativity & creative thinking
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
Creative thinking
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19. Barriers to Creativity
Personal Beliefs
Fear of Criticism
Barriers to Creativity
Stress
Over-Management
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20. Blocks & Blockbusters to creativity
Making assumptions
Check assumptions
Following the rules
Breaking the rules
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21. Blocks & Blockbusters to creativity
Over reliance on logic
Using imagination & intuition
Fear of failure
Risk taking culture
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22. Conceptual Blocks
Mental obstacles that constrains the way the problem is defined & limit the number of alternative solutions thought to be relevant
Conceptual Blocks
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23. 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.”
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24. 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
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25. 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
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26. 5 Rules of Creative Thinking
Don't let assumptions stifle your capacity
Discipline yourself to take time to look for alternatives
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
To open up true creativity, you have to shed inhibitions and move from left-brain – dominated by numbers toward right- brain  – the original thinking
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
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27. Characteristics of Creative Individuals
Remarkably humble & proud at the same time
Passionate about their work, yet can be extremely objective about it
Brave to try new things
Open minded & willing to accept criticism
Have a combination of playfulness & discipline or responsibility & irresponsibility
Have high self-control
Goal directed, deliberate & considerate in making any decision
Willing to take calculated risks
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28. Techniques of generating creative ideas
Brainstorming
Forced Analogy
Do It
Mind Mapping
Nominal Group
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29. Mind Map
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30. 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.
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31. Each 'Thinking Hat' is a different style of thinking
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32. 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.
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33. 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
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34. 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
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35. 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
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36. 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.
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37. 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..
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38. Chapter outline Part II What is Innovation? Types of innovation
Sources of innovation
Barriers innovate
Development of innovation & creativity
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39. Invention Vs. Innovation – synonyms????
‘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
Doing things differently
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40. Invention Vs. Innovation – synonyms????
Extreme end of a development of a new product or process
Associated with the development 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
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41. 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
- Michael Porter (1990)
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42. Creativity & Innovation
Bringing into existence an idea that is new
Innovation
The practical application of
creative ideas
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43. 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)
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44. Relationship between innovation & Entrepreneurship
The Struggler
The Innovator
The Stagnator
The Copier
High
Innovation & Creativity
Low
Low
High
Entrepreneurship
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Source : Entrepreneurship & Small Business – Paul Burns

45. The Value of Innovation
The balance between adapting and revolutionizing
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46. The Process of Innovation
Opportunity
Delivery of Innovation
Opportunity evaluation
Innovation
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47. Types of innovation Villa College Invention Extension Duplication
Synthesis
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48. 7 Sources of Entrepreneurial Opportunities for innovation by Drucker
Internal
The unexpected – the unexpected success, the unexpected failure, the unexpected outside event
The incongruity – between reality as it actually is and reality as it is assumed to be or as it “ought to be”
Innovation based on process need; any inadequacy in a business process that is taken for granted
Changes in industry structure or market structure that catch everyone unawares
External
Demographic changes caused by things like wars, migrations, medical developments
Changes in perception and fashion brought about by changes in the economy
Changes in awareness caused by new knowledge
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49. Do’s & don’ts on innovation by Peter Drucker
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
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50. 5 stage approach to purposeful, systematic innovation by Peter Drucker
Start with the analysis of opportunities (inside the firm & its industry & in the external environment)
Look at the financial implications, but also talk to people, particularly customers & analyze how to meet the opportunity
An innovation must be simple & has to be ‘focused’
To be effective, start small. Take an incremental approach
Aim at leadership & dominate the competition as soon as possible in the particular area of innovation
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51. Blocks and Limiting Beliefs Switch To Positive Attitude
What prevents people from being creative or
innovative?
Adapted from Effective Innovation: How to Stay Ahead of the Competition, John Adair
Barriers
Blocks and Limiting Beliefs
Switch To Positive Attitude
Negative Attitude
The tendency to focus on the negative aspects of problems and expend energy on worry.
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 over- stressed 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 Assumptio ns
Many both conscious and unconscious assumptions restrict creative thinking.
Identify and examine the assumptions you are making to ensure they are not excluding new ideas. Challenge assumptions.
Over- reliance on Logic
Investing all your intellectual capital into logical or analytical thinking – the step-by-step approach – excludes imagination, intuition, feeling or humor.
"Innovation is not the product of logical thought, although the result is tied to logical structure." – Albert Einstein
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52. Barriers to Innovation
Organizational
Personal or Individual
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