1. Chapter 3
Recognizing and
Creating
Opportunity

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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

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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

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Critical Concepts of Creativity
• Idea
• Business opportunity
• Opportunity recognition
• Opportunity creation

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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

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The Nature of Creativity
• Creativity as a process:
– Invention process is not formulaic or linear
– Certain definable patterns and activities can
occur in any creative process:
• Connection
• Discovery
• Invention
• Application

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Figure 3.1: The Invention Process

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Challenges to Creativity *
• No time for creativity
• No confidence (scared of criticism)
• No creative skills

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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 OUTDOORS? AT THE LAKE?
– Develop a creative company culture
• “You CAN be serious without a suit” (Google)
– Mix people up

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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 “Dielectic”

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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

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Decision Tree Analysis

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Sources of Innovation
• Customers - expressed needs and suggestions for improvements
• Newspapers and magazines - what are the media reporting on?
• Observation – watch how the staff works in a hospital, retail store, etc.
• Demographic shifts - moves to the south and west, concentrations of latinos, asians, etc.
• Unexpected news events - shocking developments, heighten fears, generate needs
• Trends and patterns of change - need for privacy protection on the internet
• New government regulation - health care system…how will things change now?
• Emerging industries - private space flights, wind and solar power generation, etc.

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New Product/Service Ideas Sources
• Technological Trends
– Human Genome Project
– Nanotechnology
– Wireless Technology
• Who will have the next great idea?!

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New Venture Project
 What are your roadblocks?
 Roadblock removal plan.
 Track your business ideas.