This chapter discusses creativity and recognizing opportunities. It explains that creativity enables businesses to differentiate themselves, is the basis for invention, and is critical for problem solving and recognizing opportunities. Creativity involves ideas, opportunities, and innovation. Challenges to creativity include lack of time and confidence. To overcome these challenges, one should design an environment stimulating creativity, devote time to contemplation, keep track of ideas, think from familiar perspectives, leverage networks, and think in opposites. Sources of new ideas include customers, trends, events, and new technologies.

1. Chapter 3
Recognizing and
Creating
Opportunity

2. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 2
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

3. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 3
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

4. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 4
Critical Concepts of Creativity
• Idea
• Business opportunity
• Opportunity recognition
• Opportunity creation

5. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 5
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

6. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 6
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

7. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 7
Figure 3.1: The Invention Process

8. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 8
Challenges to Creativity *
• No time for creativity
• No confidence (scared of criticism)
• No creative skills

9. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 9
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

10. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 10
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”

11. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 11
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

12. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 12
Decision Tree Analysis

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

14. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 14
New Product/Service Ideas Sources
• Technological Trends
– Human Genome Project
– Nanotechnology
– Wireless Technology
• Who will have the next great idea?!

15. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 15
New Venture Project
 What are your roadblocks?
 Roadblock removal plan.
 Track your business ideas.