5allen 03

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


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


Critical Concepts of Creativity

• Idea• Business opportunity• Opportunity recognition• Opportunity creation


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


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


Figure 3.1: The Invention Process


Challenges to Creativity *

• No time for creativity• No confidence (scared of criticism)

• No creative skills


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


Removing the Roadblocks (continued)

2. Keep track of ideas3. Start with the familiar4. Take advantage of a personal network5. Return to your childhood6. Think in opposites “Dielectic”


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


Decision Tree Analysis


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.


New Product/Service Ideas Sources

• Technological Trends– Human Genome Project– Nanotechnology– Wireless Technology

• Who will have the next great idea?!


New Venture Project

What are your roadblocks? Roadblock removal plan. Track your business ideas.

5allen 03

Small Business & Entrepreneurship

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