Copyright Notice: This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent, charge, or profit from the educational materials contained here. Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

1. Arianto Muditomo @2019
Copyright Notice:
This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-
commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from
Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent,
charge, or profit from the educational materials contained here.
Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

2. arianto.muditomo@2019
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(Steve Jobs, interview with Fortune Magazine, 1998)

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§ Session #1: Introduction of Knowledge Management
§ Session #2: KM & Organizational Learning
§ Session #3: Knowledge Management Strategy & Implementation
§ Session #4: Introduction to Change Management
§ Session #5: Organizational Change Management & Cultural
Change Management
§ Session #6: Introduction of Innovation & Entrepreneurship
§ Session #7: Creativity & Innovation
§ Session #8: Entrepreneur & Innovation Leadership
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References:
• Kimiz Dalkir, Knowledge Management In Theory and Practice 1st Edition, Butterworth-Heinemann; 1 edition (June 30,
2005), ISBN-10: 075067864X, ISBN-13: 978-0750678643
• John Bessant and Joe Tidd (2015). Innovation and Entrepreneurship 3rd Edition. John Wiley & Sons, Ltd., ISBN-13: 978-
1118993095; ISBN-10: 1118993098
• John P. Kotter, Leading Change, With a New Preface by the Author, Harvard Business Review Press; 1R edition (November
6, 2012), ISBN-10: 9781422186435, ISBN-13: 978-1422186435
• Frank Voehl, H. James Harrington, Change Management: Manage the Change or It Will Manage You, Productivity Press; 1
edition (November 13, 2017), ISBN-10: 1138463957, ISBN-13: 978-1138463950

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§ What is CREATIVITY?
§ What is
INNOVATION?
§ What is
ENTREPRENEURSHIP?

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§ Creativity is defined as the tendency to generate or recognize
ideas, alternatives, or possibilities that may be useful in solving
problems, communicating with others, and entertaining ourselves and others.
§ Creativity is the ability to come up with new ideas and to identify new and different ways of
looking at a problem and opportunities.
§ A process of assembling ideas by recombining elements already known but wrongly
assumed to be unrelated to each other.This definition has several key elements that are
worth considering:
§ Process: Creativity is also a process (implying, among other things, that it is more like a skill than an
attitude, and that you can get better at it with practice).
§ Ideas: Creativity results in ideas that have potential value.
§ Recombining:The creative process is one of putting things together in unexpected ways.

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Opportunity or
Problem
Recognition
Immersion Incubation Insight Verification and
Application
A person
discovers that a
new opportunity
exists or a
problem needs
resolution.
The individual
concentrates on
the problem and
becomes
immersed in it.
He or she will
recall and collect
information that
seems relevant,
dreaming up
alternatives
without refining or
evaluating them.
The person keeps
the assembled
information in mind
for: a while. He or
she does not appear
to be working on
the problem
actively; however,
the subconscious
mind is still
engaged.
The problem-
conquering
solution flashes
into the person's
mind at an
unexpected time,
such as on the
verge of sleep,
during a shower,
or while running.
Insight is also
called the Aha!
Or Eureka!
Experience
The individual
sets out to prove
that the creative
solution has
merit.Verification
procedures
include gathering
supporting
evidence, using
logical
persuasion, and
experimenting
with new ideas.

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§ Excessive focus on extrinsic motivation
§ Limits set by superiors
§ Critical evaluation
§ Close, controlling supervision
§ Competition in a win-lose situation
§ Control of decision making
§ Control of information
§ Blindly following the rules
§ Constantly being practical
§ Becoming overly specialized
§ Fearing looking foolish
§ Fearing mistakes and failure
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§ Innovation is the implementation of new ideas at the individual,
group or organizational level.
§ A process of intentional change made to create value by meeting
opportunity and seeking advantage.
§ Process: Innovation is a process (implying, among other things, that it
can be learned and managed).
§ Intentional:That process is carried out on purpose.
§ Change: It results in some kind of change.
§ Value:The whole point of the change is to create value in our economy,
society and/or individual lives.
§ Opportunity: Entrepreneurial individuals enable tomorrow's value
creation by exploring for it today: having ideas, turning ideas into
marketable insights and seeking ways to meet opportunities.
§ Advantage: At the same time, they also create value by exploiting the
opportunities they have at hand.

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A combination of more than one
existing products or services into a
new product or service.This means
that several different ideas are
combined in to one new product or
service.
SYNTHESIS
Described as the creation
of a new product, service
or process. Something that
has not been tried before.
INVENTION
Copying (replicating) an
existing product or service
and then adding the
entrepreneurs own
creative touch. In order to
improve it
DUPLICATION
The expansion of an existing
product, service or process.This
would mean that the entrepreneur
takes an existing idea and applies
it differently.
EXTENTION
There are four distinct types of innovation, these are as follows:

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Carefully identifying
the product or
service features,
design as well as the
resources that will be
needed.
Analytical
planning
Obtaining the
required
resources, materials,
technology, human or
capital resources.
Resource
organization Applying the
resources in order to
accomplish the plans
Implementation
The provision of value
to customers, reward
employees, and
satisfy the stake
holders.
Commercial
application
5 MYTHS OF INNOVATION
1) Innovation is planned and predictable.
2) Technical specifications should be thoroughly prepared in advance.
3) Creativity relies on dreams and blue-sky ideas.
4) Big projects will develop better innovations than smaller ones.
5) Technology is the driving force of innovation and success.

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= Derived from French word Entreprendre which means “to undertake‟.
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Richard Cantillon: Entrepreneurs are non-
fixed income earners who pay known costs of
production but earn uncertain incomes.
Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production-
land of one, the labour of another and the capital of yet another and thus produces a product.
By selling the product in the market he pays rent of land, wages to labour, interest on capital
and what remains is his profit. He shifts economic resources out of an area of lower and into an
area of higher productivity and greater yield.
David McClelland: An entrepreneur is a
person with a high need for achievement [N-
Ach].
He is energetic and a moderate risk taker.
Peter Drucker: An entrepreneur searches for
change, responds to it and exploits
opportunities. Innovation is a specific tool of an
entrepreneur hence an effective entrepreneur
converts a source into a resource.
Ronald May: An Entrepreneur is
someone who commercializes his
or her innovation
Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the
existing products and services, to set up new products, new. They employs "the gale of creative
destruction" to replace in whole or in part inferior offerings across markets and industries,
simultaneously creating new products and new business models. Thus, creative destruction is
largely responsible for the dynamism of industry and long-term economic growth..

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FRANK H. KNIGHT
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The behavior of the entrepreneur reflects a kind of person willing to put his or her
career and financial security on the line and take risks in the name of an idea,
spending much time as well as capital on an uncertain venture. Knight classified
three types of uncertainty.
Risk
which is measurable statistically (such
as the probability of drawing a red
color ball from a jar containing 5 red
balls and 5 white balls)
Ambiguity
which is hard to measure
statistically (such as the
probability of drawing a red
ball from a jar containing 5
red balls but with an
unknown number of white
balls)
True Uncertainty
which is impossible to estimate or
predict statistically (such as the
probability of drawing a red ball from
a jar whose number of red balls is
unknown as well as the number of
other colored balls

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• Creativity is the ability to develop new ideas
and to discover new ways of looking at
problems and opportunities.
• Innovation is the ability to apply creative
solutions to those problems and
opportunities in order to enhance people‟s
lives or to enrich society.
• Entrepreneurship is the result of a
disciplined, systematic process of applying
creativity and innovation to needs and
opportunities in the marketplace.
• Entrepreneurs are those who marry their
creative ideas with the purposeful action and
structure of a business.
Researchers believe that entrepreneurs succeed by thinking and
doing new things or old things in new ways.
Entrepreneurship = Creativity + Innovation

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"Twenty years from now, you will
be more disappointed by the
things that you didn't do than by
the ones you did do, so throw off
the bowlines, sail away from safe
harbor, catch the trade winds in
your sails. Explore, Dream,
Discover.“
~MARK TWAIN
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