Creativity involves developing new ideas and solutions, while innovation applies those creative solutions to problems and opportunities to improve people's lives. Entrepreneurs succeed by thinking and doing new things or existing things in new ways. The creative process involves preparation, investigation, transformation of information, incubation of ideas, illumination of a solution, and verification and implementation of innovative solutions.

1. Creativity And InnovationCreativity And Innovation
 Creativity is the ability to develop new idea and to discoverCreativity is the ability to develop new idea and to discover
new ways of looking at problem.new ways of looking at problem.
 Innovation is the ability to apply creative solutions to thoseInnovation is the ability to apply creative solutions to those
problems and opportunities to enhance or enrich people’sproblems and opportunities to enhance or enrich people’s
live.live.
 Creativity is thinking new things and innovation is doing newCreativity is thinking new things and innovation is doing new
things.things.
 Entrepreneurs succeed by thinking and doing new things orEntrepreneurs succeed by thinking and doing new things or
old things in new ways.old things in new ways.
 Management legend peter Drucker says “innovation is theManagement legend peter Drucker says “innovation is the
specific instrument of entrepreneurs the means by which theyspecific instrument of entrepreneurs the means by which they
exploit change as an opportunity for a different business orexploit change as an opportunity for a different business or
different service”different service”

2. Creativity And InnovationCreativity And Innovation
 Entrepreneur is the result of disciplined, systematic processEntrepreneur is the result of disciplined, systematic process
of applying creativity and innovation to needs andof applying creativity and innovation to needs and
opportunities in the market place.opportunities in the market place.
 It involves applying focused strategies to new ideas and newIt involves applying focused strategies to new ideas and new
insights to create a product or a service that satisfiesinsights to create a product or a service that satisfies
customer’s needs or solves their problems.customer’s needs or solves their problems.

3. The Creative ProcessThe Creative Process
 It involves seven stepsIt involves seven steps
 PreparationPreparation
 This step involves getting the mind ready for creative thinkingThis step involves getting the mind ready for creative thinking
 It includes formal education, on the job training, workIt includes formal education, on the job training, work
experience and taking advantage of other learning opportunities.experience and taking advantage of other learning opportunities.
 Adopt the attitude of a lifelong student, realize that educatingAdopt the attitude of a lifelong student, realize that educating
yourself is a never ending processyourself is a never ending process
 Look at every situation you encounter as an opportunity to learnLook at every situation you encounter as an opportunity to learn
 Invest time in studying other countries and culturesInvest time in studying other countries and cultures
 Develop listening skills its amazing what you can learn if you takeDevelop listening skills its amazing what you can learn if you take
the time to listen to other peoplethe time to listen to other people

4. The Creative ProcessThe Creative Process
 InvestigationInvestigation
 This step requires developing a solid understanding of theThis step requires developing a solid understanding of the
problem, situation, decision at hand.problem, situation, decision at hand.
 To create new ideas and concepts in a particular field, anTo create new ideas and concepts in a particular field, an
individual first study the problem and understand the basicindividual first study the problem and understand the basic
components.components.
 creative thinking comes about when people make carefulcreative thinking comes about when people make careful
observations of the world around them and then investigateobservations of the world around them and then investigate
the way things work or fail to work.the way things work or fail to work.

5. The Creative ProcessThe Creative Process
 TransformationTransformation
 It involves viewing the similarities and the differences in theIt involves viewing the similarities and the differences in the
information collected. This requires two types of thinkinginformation collected. This requires two types of thinking
 Convergent Thinking is the ability to see the similarities and theConvergent Thinking is the ability to see the similarities and the
connections among various data and events.connections among various data and events.
 Divergent Thinking is the ability to see the differences amongDivergent Thinking is the ability to see the differences among
various data and events.various data and events.
 IncubationIncubation
 Dream about the problem or opportunityDream about the problem or opportunity
 Means to think about an issue or a project you want to to startMeans to think about an issue or a project you want to to start
 Work on the problem casuallyWork on the problem casually

6. The Creative ProcessThe Creative Process
 IlluminationIllumination
 To enlighten intellectuallyTo enlighten intellectually
 Striking of idea during incubation stageStriking of idea during incubation stage
 VerificationVerification
 Validating the idea as accurate and useful for entrepreneurValidating the idea as accurate and useful for entrepreneur
may include conducting experiments, running simulation, testmay include conducting experiments, running simulation, test
marketing , establishing pilot programs and many othermarketing , establishing pilot programs and many other
activities designed to verify that new idea will practicallyactivities designed to verify that new idea will practically
workwork
 The goal is to subject the innovative idea to the test. That willThe goal is to subject the innovative idea to the test. That will
it work, is there any need for it.it work, is there any need for it.

7. The Creative ProcessThe Creative Process
 ImplementationImplementation
 The focus of this step is to transform the idea to reality.The focus of this step is to transform the idea to reality.
 Plenty of people come up with creative ideas for promisingPlenty of people come up with creative ideas for promising
new products r servicesnew products r services
 What sets entrepreneur apart is that they act on their ideas.What sets entrepreneur apart is that they act on their ideas.