Creativity and innovation ( keys to entrepreneurial success)

Copyright © 2015 Pearson Education, Ltd.
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Creativity: the ability to develop new ideas and to
discover new ways of looking at problems and
opportunities
Thinking new things
Innovation: the ability to apply creative solutions to
those problems and opportunities to enhance or to
enrich people’s lives
Doing new things
Entrepreneurs succeed by thinking and doing new
things or old things in new ways
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Intuit identified six enablers of small business
innovation:
1. Passion
2. Customer connection
3. Agility and adaptation
4. Experimentation and improvisation
5. Resource limitations
6. Information sharing and collaboration
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Innovations can be:
Reactive in response to customer feedback or changing
market conditions
Proactive in response to new opportunities on which to
capitalize
Revolutionary creating market-changing, disruptive
breakthroughs that are the result of generating something
from nothing
Evolutionary, developing market-sustaining ideas that
elaborate on existing products, processes, and services
Putting old things together in new ways or from taking
something away to create something simpler or better
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"Innovation is in small business DNA. Yet,
many entrepreneurs don't realize that
some of the great offerings and processes
they create are innovations," said Steve
King.
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creativity is not only an important source for building a competitive
advantage, but it also is a necessity for survival.
 When developing creative solutions to modern problems,
entrepreneurs must go beyond relying in what has worked in the
past:
Cast off limiting assumptions, beliefs, and behaviors
Develop new insights
Change perspectives
Look at the world in new and different ways
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Can Creativity be Taught?
Creativity is a skill
Anyone can learn to be creative and to get
better at it
Need to understand creative thinking
https://www.youtube.com/watch?v=vlBpDggX3iE
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Mental locks that can limit individual creativity:
1. Searching for the one “right” answer
2. Focusing on “being logical”
3. Blindly following the rules
4. Viewing laughter and play as frivolous
5. Becoming overly specialized
6. Avoiding ambiguity
7. Fearing looking foolish
8. Fearing mistakes and failure
9. Believing that “I’m not creative”
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Enhancing Organizational Creativity
1. Include creativity as a core company value and
make it an integral part of the company’s culture
2. Hire for creativity
3. Embrace or hold diversity
4. Establish an organizational structure that nourishes
creativity
5. Expect creativity
6. Expect failure and learn from it
7. Include fun into the work environment
8. Encourage curiosity
9. Design a workspace that encourages creativity
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10.View problems as opportunities
11. Provide creativity training
12.Provide support
13.Develop a procedure for capturing ideas
14.Talk with customers – or better yet, interact with them
15.Monitor emerging trends and identify ways your
company can capitalize on them
16.Look for uses for your company’s products or services
in other markets
17.Reward creativity
18.Model creativity

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Enhancing Individual Creativity
1. Allow yourself to be creative
2. Forget the “rules”
3. Give your mind fresh input everyday
4. Travel – and observe
5. Collaborate with other people
6. Observe the products and services of other
companies, especially those in different markets
7. Recognize the creative power of mistakes and
accidents

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8. Be positive
9. Notice what is missing
10.Periodically ask yourself, “Am I asking the right
question?”
11. Keep a journal handy to record your thoughts and
ideas
12.Listen to other people
13.Get adequate sleep
14.Watch a movie
15.Talk to a child

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16.Do something ordinary in an unusual way
17.Keep a toy box in your office
18.Take note of your ‘pain points’: do other people
experience them as well?
19.Do not throw away seemingly ‘bad’ ideas
20.Read books on stimulating creativity or take a class
on creativity
21.Take some time off
22.Be persistent

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Creative ideas are the result of seven step
process:
1. Preparation
2. Investigation
3. Transformation
4. Incubation
5. Illumination
6. Verification
7. Implementation

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Step 1: Preparation
Adopt the attitude of a lifelong student
Read—a lot—and not just in your field of expertise
Clip articles of interest to you and create a file for them
Take time to discuss your ideas with other people,
including those who know little about it as well as
experts in the field
Join professional or trade associations and attend their
meetings
Develop listening skills.
Eliminate creative distractions
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process:
1. Preparation
 Investigation

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Step 2: Investigation
Develop a solid understanding of the problem,
situation, or decision at hand

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process:
1. Preparation
2. Investigation
 Transformation

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Step 3: Transformation
Two types of thinking:
1. Convergent thinking: the ability to see the
similarities and the connections among
various and often diverse data and events
2. Divergent thinking: the ability to see the
differences among various data and events

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Transforming information into a purposeful idea:
Evaluate the parts of the situation several times, trying
to understand the big picture
Rearrange the elements of the situation
Try using synectics (a term derived from the Greek
words for “to bring together” and “diversity”),taking two
seemingly illogical ideas and combining them
Before locking into one particular approach to a
situation, remember that several approaches might be
successful
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process:
1. Preparation
2. Investigation
3. Transformation
 Incubation

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Step 4: Incubation
Ideas may require a gestation period
Walk away from the situation
Take the time to daydream
Relax – and play - regularly
Dream about the problem or opportunity
Work on the problem or opportunity in a
different environment
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process:
1. Preparation
2. Investigation
3. Transformation
4. Incubation
 Illumination

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Step 5: illumination
The light bulb goes on

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process:
1. Preparation
2. Investigation
3. Transformation
4. Incubation
5. Illumination
 Verification

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Step 6: Verification
Is it really a better solution to a particular problem
or opportunity?
Will it work?
Is there a need for it?
If so, what is the best application of this idea in the
marketplace?

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Does this product or service idea fit into our core
competencies?
How much will it cost to produce or to provide?
Can we sell it at a reasonable price that will
produce adequate sales, profit, and return on
investment for our business?

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process:
1. Preparation
2. Investigation
3. Transformation
4. Incubation
5. Illumination
6. Verification
 Implementation

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Step 7: Implementation
Transform the idea into reality

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Creativity and innovation ( keys to entrepreneurial success)

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