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Opportunity, Innovation
 and Entrepreneurship

    The Role of Creativity
Creativity and Entrepreneurs

• “Entrepreneurs are able to blend imaginative & creative
  thinking with a systematic, logical process ability.” (Kuratko
  & Hodgetts, 1992)


• “First rule in developing entrepreneurial vision is to
  recognise that problems are to solutions what demand is to
  supply.” (Kuratko & Hodgetts, 1992)
Where does Creativity come from ?

•   A divine quality - something only gifted people have.


•   Serendipitous activity - much evidence supports the lucky break
    theory


•   Planned luck - looking for opportunities


•   Endurance - hard work and persistence


•   Idea generation methods
The Creative Process


• Creativity can be developed and improved


• Distinct way of looking at the world


• Involves seeing relationships that others may not see


• Structured and focused chaos
‘Schools of thought’

•   Attribute theories - creativity is something that is inherent


•   Conceptual skills theories - new ways of thinking, using your brain …
    can be taught / learned


•   Behavioural theories - encourage creative habits


•   Process theories - creativity is highly complex and multi-faceted.
    Individual talents, skills, actions, and organisational conditions all
    contribute.
Characteristics of Creative People?

•   Bright
•   Inquisitive
•   Adaptable and flexible as opposed to rigid or dogmatic
•   Good at generating ideas
•   Have a positive image of themselves
•   Challenge oriented - motivated
•   Sensitive to their environment
•   Value their independence and do not have strong need for approval
•   Lead a rich, almost bizarre, fantasy life
•   Able to withhold the decision on a problem
    until sufficient facts have been collected
Myths of Creativity
•   The smarter you are, the more
    creative you are
                                            •   Money Is a Creativity Motivator
•   Creativity exists outside of time and
    circumstance                            •   Time Pressure Fuels Creativity

•   Creative people are risk takers         •   Fear Forces Breakthroughs

•   The creative act is essentially         •   Competition Beats Collaboration
    effortless                              •   A Streamlined Organization Is a
•   Creativity derives from eccentric           Creative Organization
    personalities
•   Creativity exists only in the arts      •   Amabile
•   Coming up with new ideas is the most
    difficult part of creativity
•   Creative output is always good




Andriopoulos & Dawson 2009
The smarter you are, the more
      creative you are

 The creative process requires a certain level of
intelligence, but above a basic level, there is no
  evidence for any significant link between the
               two (Amabile, 1996)
Creativity exists outside of time and
            circumstance

    The creative process is an ongoing contextual
    dynamic process that is inextricably linked to
       domains of knowledge.. A dynamic flow
   between a person‟s thoughts and the changing
   social context from which they draw and refine
     their ideas (Andriopoulos & Dawson, 2009)
Creative people are risk takers


Willingness to take calculated risks and ability
to think in non-traditional ways figure but…You
   do not have to be a bungee jumper to be
     creative (Smith and Reinertsen, 2004)
The creative act is essential
          effortless

Although creativity is a complex process, there
  is a tendency to emphasise the illumination
 stage, this fails to recognise the role of many
  trials, dead ends and a lot of personal effort
                  (Placone 1989)
Creativity derives from eccentric
          personalities

   It is more useful to consider that creativity
arises from a particular behaviour then resulting
from a particular product or idea. (Andriopoulos
                & Dawson, 2009)
Coming up with new ideas is the
 most difficult part of creativity

   There are many techniques to help creative
 persons generate new ideas.. the difficult part..
   Is to identify those that have value and are
             realizable (Rogers, 1995)
Creativity exists only in the arts


Creativity is a human behaviour which exists in
any human activity and not just in literature or
            music etc (Amabile 1996)
Creative output is always good


 Novel ideas can also be applied to evil and
destructive ends as well as good, responsible
   and constructive ends (Amabile 1996)
Money Is a Creativity Motivator


People are most creative when they care about their
 work and they're stretching their skills. Employees
don't think about pay on a day-to-day basis-and the
 handful of people who were spending a lot of time
wondering about their bonuses do very little creative
                thinking. (Amabile)
Time Pressure Fuels Creativity


Time pressure stifles creativity because people can't deeply
engage with the problem. Creativity requires an incubation
 period; people need time to soak in a problem and let the
  ideas bubble up. it's not so much the deadline that's the
problem; it's the distractions that rob people of the time to
 make that creative breakthrough. People can certainly be
creative when they're under the gun, but only when they're
           able to focus on the work. (Amabile)
Fear Forces Breakthroughs


Creativity is positively associated with joy and love and
 negatively associated with anger, fear, and anxiety.
 People are happiest when they come up with a creative
idea. They're more likely to have a breakthrough if they
         were happy the day before. (Amabile)
Competition Beats Collaboration


    The most creative teams are those that have the
    confidence to share and debate ideas. But when
   people compete for recognition, they stop sharing
  information. And that's destructive because nobody
 in an organization has all of the information required
to put all the pieces of the puzzle together. (Amabile)
A Streamlined Organization Is a
     Creative Organization

 Creativity suffers greatly during a downsizing. Every single one of
   the stimulants to creativity in the work environment went down
significantly during a downsizing. Anticipation of the downsizing was
     even worse than the downsizing itself -- people's fear of the
       unknown led them to basically disengage from the work.
  Even five months after the downsizing, creativity was still down
                     significantly. (Amabile)
The Creative Process

•   Entrepreneurs need ideas to pursue, and ideas seldom materialize
    accidentally. Ideas usually evolve through a creative process
    whereby imaginative people, germinate ideas, nurture them, and
    develop them successfully.


•   Various labels have been applied to stages in the creative process, but
    most social scientist agree on five stages that we label as:
     – Idea Germination
     – Preparation
     – Incubation
     – Illumination
     – Verification
Additional Notes:
   Practical Tips to Enhance the „Creative Process‟


• Creativity is a process that can be developed and improved.
• Entrepreneurs have been taught to think and act creatively.
• There are 4 commonly agreed upon phases in the creative
  process.


• Playing with creativity
   – http://www.creativethinking.net/WP04_Exercises.htm
A ‘Hybrid’ Model of the Creative Process


• Idea Germination – the seeding stage of a new idea –
  Recognition
• Preparation – conscious search for knowledge – Rationalisation
• Incubation – subconscious assimilation of information –
  Fantasizing
• Illumination – recognition of idea as being feasible –
  Realization
• Verification – application or test to prove idea has value -
  Validation
First, in groups, list the attributes of a
              screwdriver.
First, list the attributes of a screwdriver.
• Round steel shaft

• Wooden or plastic handle


• Wedge-shaped tip


• Manually operated


• Used for tightening or loosening screws
Next, focus on each specific attribute and ask
"How else can this be accomplished?" or "Why
        does this have to be this way?"
•   What can I substitute for this   •   Can I modify it in some fashion?
    attribute?

                                     •   Can I put it to some other use?
•   What can be combined with it?

                                     •   What can I eliminate?
•   Can I adapt something to it?

                                     •   Can the parts be rearranged?
•   Can I add or magnify it?

                                     •   What is the reverse of this?
Resulting innovations
•   Focusing on the handle, a Swedish company created a handle with space
    for both hands. It was so successful, they later developed a full range of
    tools with a long handles.


•   In the Third World, an aspiring inventor added a battery to provide
    power. This power source proved to be more reliable than electricity.


•   An entrepreneur came up with a better arrangement. He created shafts
    that were made interchangeable to fit various size screws, which obviated
    the need to have several screwdrivers.


•   A Japanese engineer invented a bendable electric screwdriver with a
    super-flexible shaft to reach out of the way places.
Phase 1: Background of Knowledge
                      Accumulation.

• Successful creations are generally preceded by investigation and
  information gathering.


• Additional investigation in both related and unrelated fields is
  sometimes involved


• There are a number of ways to practice the creative search for
  background knowledge.
Phase 2: The Incubation Process

• Creative entrepreneurs allow their subconscious to mull
  over the tremendous amounts of information they
  gather during the preparation phase.


• Getting away from a problem and letting the
  subconscious mind work on it allows creativity to spring
  forth.
Phase 3: The Idea Experience

• The Idea is discovered
 ( keep a notepad by your bed!)


• Speeding up the Idea experience can be achieved through:

              »Daydreaming
              »Take regular breaks
              »Put the issue to the back of
               your mind
Phase 4: Evaluation & Implementation

• This phase involves reworking the idea from its rough draft form
• The most difficult part of the whole creative process
• To test the idea entrepreneurs can:
    – seek advice from knowledgeable people
    – trust their instincts


If at any stage a major unworkable problem arises then it is better to revert
    back to the previous phase
The Creative Thinking Process
                         Diagram
                   (Kuratko & Hodgetts, 1992)



                        Incubation




 Knowledge           Creative Process           Ideas
Accumulation




                      Evaluation &
                     Implementation
Tips to encourage creative behaviour


• Knowing when to shape environments and when to leave
  them alone
• Reward creativity in those who display it
• Take sensible risks
• Overcome obstacles, don‟t let them overcome you
• Think for the long term
• Keep growing
• Be aware of the danger of knowing too much
Aiding Individual Creativity


• Role models


• Reward systems


• Peer Pressure


• Management Culture
‘Diamond Thinking’

• Creative people are often „divergent‟ thinkers - generating
  ideas


• „Business Studies‟ courses encourage „convergent thinking -
  coming to solutions


• „Diamond‟ thinking encourages a period of „divergent‟ thinking
  followed by a period of „convergent‟ thinking. Entrepreneurs ?
Convergent thinking
Divergent thinking
De bono’s hats
Activity 1
• With the ideas you developed in the speed innovating
  seminar
• In groups, work on assessing the opportunity using the
  different hats
Activity 2
The object of the exercise is to create at least 3 new, innovative business
   concepts for one of the following:
    – a product or service for the food industry
    – a service or accessory for a car
    – a communications device or service

Suggested process for groups of three / four:
1. Brain storming …. divergent thinking. The rules include: no criticism;
   freewheeling / piggybacking; quantity is best; combinations and
   improvements.
2. Consider your three best ideas, and use associative thinking to
   improve further (e.g. how is this like a …. Church, space station,
   Disneyland, etc ?)
3. Present your best idea to the class, indicating why you think it‟s a
   viable proposition.

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Creativity and innovation

  • 1. Opportunity, Innovation and Entrepreneurship The Role of Creativity
  • 2.
  • 3. Creativity and Entrepreneurs • “Entrepreneurs are able to blend imaginative & creative thinking with a systematic, logical process ability.” (Kuratko & Hodgetts, 1992) • “First rule in developing entrepreneurial vision is to recognise that problems are to solutions what demand is to supply.” (Kuratko & Hodgetts, 1992)
  • 4. Where does Creativity come from ? • A divine quality - something only gifted people have. • Serendipitous activity - much evidence supports the lucky break theory • Planned luck - looking for opportunities • Endurance - hard work and persistence • Idea generation methods
  • 5. The Creative Process • Creativity can be developed and improved • Distinct way of looking at the world • Involves seeing relationships that others may not see • Structured and focused chaos
  • 6. ‘Schools of thought’ • Attribute theories - creativity is something that is inherent • Conceptual skills theories - new ways of thinking, using your brain … can be taught / learned • Behavioural theories - encourage creative habits • Process theories - creativity is highly complex and multi-faceted. Individual talents, skills, actions, and organisational conditions all contribute.
  • 7. Characteristics of Creative People? • Bright • Inquisitive • Adaptable and flexible as opposed to rigid or dogmatic • Good at generating ideas • Have a positive image of themselves • Challenge oriented - motivated • Sensitive to their environment • Value their independence and do not have strong need for approval • Lead a rich, almost bizarre, fantasy life • Able to withhold the decision on a problem until sufficient facts have been collected
  • 8. Myths of Creativity • The smarter you are, the more creative you are • Money Is a Creativity Motivator • Creativity exists outside of time and circumstance • Time Pressure Fuels Creativity • Creative people are risk takers • Fear Forces Breakthroughs • The creative act is essentially • Competition Beats Collaboration effortless • A Streamlined Organization Is a • Creativity derives from eccentric Creative Organization personalities • Creativity exists only in the arts • Amabile • Coming up with new ideas is the most difficult part of creativity • Creative output is always good Andriopoulos & Dawson 2009
  • 9. The smarter you are, the more creative you are The creative process requires a certain level of intelligence, but above a basic level, there is no evidence for any significant link between the two (Amabile, 1996)
  • 10. Creativity exists outside of time and circumstance The creative process is an ongoing contextual dynamic process that is inextricably linked to domains of knowledge.. A dynamic flow between a person‟s thoughts and the changing social context from which they draw and refine their ideas (Andriopoulos & Dawson, 2009)
  • 11. Creative people are risk takers Willingness to take calculated risks and ability to think in non-traditional ways figure but…You do not have to be a bungee jumper to be creative (Smith and Reinertsen, 2004)
  • 12. The creative act is essential effortless Although creativity is a complex process, there is a tendency to emphasise the illumination stage, this fails to recognise the role of many trials, dead ends and a lot of personal effort (Placone 1989)
  • 13. Creativity derives from eccentric personalities It is more useful to consider that creativity arises from a particular behaviour then resulting from a particular product or idea. (Andriopoulos & Dawson, 2009)
  • 14. Coming up with new ideas is the most difficult part of creativity There are many techniques to help creative persons generate new ideas.. the difficult part.. Is to identify those that have value and are realizable (Rogers, 1995)
  • 15. Creativity exists only in the arts Creativity is a human behaviour which exists in any human activity and not just in literature or music etc (Amabile 1996)
  • 16. Creative output is always good Novel ideas can also be applied to evil and destructive ends as well as good, responsible and constructive ends (Amabile 1996)
  • 17. Money Is a Creativity Motivator People are most creative when they care about their work and they're stretching their skills. Employees don't think about pay on a day-to-day basis-and the handful of people who were spending a lot of time wondering about their bonuses do very little creative thinking. (Amabile)
  • 18. Time Pressure Fuels Creativity Time pressure stifles creativity because people can't deeply engage with the problem. Creativity requires an incubation period; people need time to soak in a problem and let the ideas bubble up. it's not so much the deadline that's the problem; it's the distractions that rob people of the time to make that creative breakthrough. People can certainly be creative when they're under the gun, but only when they're able to focus on the work. (Amabile)
  • 19. Fear Forces Breakthroughs Creativity is positively associated with joy and love and negatively associated with anger, fear, and anxiety. People are happiest when they come up with a creative idea. They're more likely to have a breakthrough if they were happy the day before. (Amabile)
  • 20. Competition Beats Collaboration The most creative teams are those that have the confidence to share and debate ideas. But when people compete for recognition, they stop sharing information. And that's destructive because nobody in an organization has all of the information required to put all the pieces of the puzzle together. (Amabile)
  • 21. A Streamlined Organization Is a Creative Organization Creativity suffers greatly during a downsizing. Every single one of the stimulants to creativity in the work environment went down significantly during a downsizing. Anticipation of the downsizing was even worse than the downsizing itself -- people's fear of the unknown led them to basically disengage from the work. Even five months after the downsizing, creativity was still down significantly. (Amabile)
  • 22. The Creative Process • Entrepreneurs need ideas to pursue, and ideas seldom materialize accidentally. Ideas usually evolve through a creative process whereby imaginative people, germinate ideas, nurture them, and develop them successfully. • Various labels have been applied to stages in the creative process, but most social scientist agree on five stages that we label as: – Idea Germination – Preparation – Incubation – Illumination – Verification
  • 23. Additional Notes: Practical Tips to Enhance the „Creative Process‟ • Creativity is a process that can be developed and improved. • Entrepreneurs have been taught to think and act creatively. • There are 4 commonly agreed upon phases in the creative process. • Playing with creativity – http://www.creativethinking.net/WP04_Exercises.htm
  • 24. A ‘Hybrid’ Model of the Creative Process • Idea Germination – the seeding stage of a new idea – Recognition • Preparation – conscious search for knowledge – Rationalisation • Incubation – subconscious assimilation of information – Fantasizing • Illumination – recognition of idea as being feasible – Realization • Verification – application or test to prove idea has value - Validation
  • 25.
  • 26. First, in groups, list the attributes of a screwdriver.
  • 27. First, list the attributes of a screwdriver. • Round steel shaft • Wooden or plastic handle • Wedge-shaped tip • Manually operated • Used for tightening or loosening screws
  • 28. Next, focus on each specific attribute and ask "How else can this be accomplished?" or "Why does this have to be this way?" • What can I substitute for this • Can I modify it in some fashion? attribute? • Can I put it to some other use? • What can be combined with it? • What can I eliminate? • Can I adapt something to it? • Can the parts be rearranged? • Can I add or magnify it? • What is the reverse of this?
  • 29. Resulting innovations • Focusing on the handle, a Swedish company created a handle with space for both hands. It was so successful, they later developed a full range of tools with a long handles. • In the Third World, an aspiring inventor added a battery to provide power. This power source proved to be more reliable than electricity. • An entrepreneur came up with a better arrangement. He created shafts that were made interchangeable to fit various size screws, which obviated the need to have several screwdrivers. • A Japanese engineer invented a bendable electric screwdriver with a super-flexible shaft to reach out of the way places.
  • 30. Phase 1: Background of Knowledge Accumulation. • Successful creations are generally preceded by investigation and information gathering. • Additional investigation in both related and unrelated fields is sometimes involved • There are a number of ways to practice the creative search for background knowledge.
  • 31. Phase 2: The Incubation Process • Creative entrepreneurs allow their subconscious to mull over the tremendous amounts of information they gather during the preparation phase. • Getting away from a problem and letting the subconscious mind work on it allows creativity to spring forth.
  • 32. Phase 3: The Idea Experience • The Idea is discovered ( keep a notepad by your bed!) • Speeding up the Idea experience can be achieved through: »Daydreaming »Take regular breaks »Put the issue to the back of your mind
  • 33. Phase 4: Evaluation & Implementation • This phase involves reworking the idea from its rough draft form • The most difficult part of the whole creative process • To test the idea entrepreneurs can: – seek advice from knowledgeable people – trust their instincts If at any stage a major unworkable problem arises then it is better to revert back to the previous phase
  • 34. The Creative Thinking Process Diagram (Kuratko & Hodgetts, 1992) Incubation Knowledge Creative Process Ideas Accumulation Evaluation & Implementation
  • 35. Tips to encourage creative behaviour • Knowing when to shape environments and when to leave them alone • Reward creativity in those who display it • Take sensible risks • Overcome obstacles, don‟t let them overcome you • Think for the long term • Keep growing • Be aware of the danger of knowing too much
  • 36. Aiding Individual Creativity • Role models • Reward systems • Peer Pressure • Management Culture
  • 37. ‘Diamond Thinking’ • Creative people are often „divergent‟ thinkers - generating ideas • „Business Studies‟ courses encourage „convergent thinking - coming to solutions • „Diamond‟ thinking encourages a period of „divergent‟ thinking followed by a period of „convergent‟ thinking. Entrepreneurs ?
  • 41. Activity 1 • With the ideas you developed in the speed innovating seminar • In groups, work on assessing the opportunity using the different hats
  • 42. Activity 2 The object of the exercise is to create at least 3 new, innovative business concepts for one of the following: – a product or service for the food industry – a service or accessory for a car – a communications device or service Suggested process for groups of three / four: 1. Brain storming …. divergent thinking. The rules include: no criticism; freewheeling / piggybacking; quantity is best; combinations and improvements. 2. Consider your three best ideas, and use associative thinking to improve further (e.g. how is this like a …. Church, space station, Disneyland, etc ?) 3. Present your best idea to the class, indicating why you think it‟s a viable proposition.