ENT600 Unit 2 Creativity

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Entrepreneurship Dept, FBM (2009)

UNIT 2:

CREATIVITY, INNOVATIONAND

TECHNOLOGY ENTREPRENEURSHIP

1ENT600/UNIT 2: CREATIVITY

TECHNOLOGY ENTREPRENEURSHIP

(ENT600)



Introduction

• Discovery of opportunity at the righttime and place is the corner-stone of any entrepreneurial success

• Technopreneurs need to be creative indiscovering new opportunities (in terms

of products or services) either throughinvention or innovation.

Entrepreneurship Dept, FBM (2009) 2ENT600/UNIT 2: CREATIVITY



What is creativity?

• Creativity can be defined as the production of new and useful ideas as well as the ability to

discover new ways of looking at problems and

opportunities.

• It is the ability to use imagination to develop

new ideas, new things or new solutions. These

generation of ideas should lead to improved

efficiency or effectiveness of a system

(Adapted from Fredrick et al., 2006 and Dorf and Byers, 2005)




Examples ►Creating the “NEW”

o Knowledge

o Products

o Processes

o Services

o Markets

o Business models

o Raw materials

Creative ideas often arise when creative people

observe established solutions, practices, or

products and think of something new or different.




Creativity & Role of Teams

• Technology entrepreneurship is at its best when

the creativity of a pool of people are

consolidated as a team effort

• Hence, creativity should be encouraged among

team members or within an enterprise.

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 2: CREATIVITY 5



Six Resources of

Creative Team/Enterprise1. Knowledge in the required domain and fields

i.e. in-depth knowledge of your industry.

2. Intellectual abilities to recognize connections,redefine problems, and envision and analyzepossible practical ideas and solutions.

3. Inventive thinking about the problem in novelways




4. Motivation towards action

5. Opportunity-oriented personality andopenness to change.

6. Contextual understanding that supportscreativity and mitigates risks.

Six Resources of

Creative Team/Enterprise (cont.)




Creativity Techniques

PROBLEM REVERSAL – look at the oppositeof things, see things inside out, backwards or upside down.

FORCED ANALOGY - gain new insights byforcing a relationship between almost anything.

ATTRIBUTE LISTING - break down the “thing”

into smaller parts or characteristics and developideas to improve on them.




Creativity Techniques

MIND MAPPING - starts in the centre of the page

with the main idea, and works outward in alldirections, producing a growing and organizedstructure composed of key words and key images.

BRAINSTORMING – generating ideas based onthe principle of suspending judgments.

LATERAL THINKING - exploring multiple

possibilities and approaches from differentperspective rather than pursuing in a conventional,logical, step by step single approach. i.e. bychanging concepts and perceptions, andgenerating new ones.




Creativity has three basic components:

• Knowledge

• Motivation

• Creative thinking skills

Three Components of Creativity




Three Components of Creativity:

Knowledge

• Knowledge refers to a confidentunderstanding of a subject with the abilityto use it if applicable. It encompasses

expertise, skills, familiarity and practical &theoretical understanding of a subject.

• Knowledge is gained by an individualthrough study or experience

Entrepreneurship Dept, FBM(2009)

ENT600/UNIT 2: CREATIVITY 11




Creative Thinking Skills

Creative thinking skills is the use of creative intelligenceto approach problems and find solutions

Four styles of creative intelligence:

• Intuitive – focuses on results and relies on pastexperience to guide actions

• Innovative – concentrates on-problem solving, issystematic, and relies on data

• Imaginative – is able to visualize opportunities, is

artistic, enjoys writing, and thinks “out of the box” • Inspirational – focuses on social change and the

giving of self toward an end





Motivation

Motivation is in two forms:

Extrinsic motivation

comes from outside a person, whether

the motivation is a „carrot‟ or a „stick‟

Intrinsic motivation

a person‟s internal desire to dosomething. Satisfaction is derivedfrom overcoming the challenge.




Phases of the Creative Process

Phase 1: Background or KnowledgeAccumulation

• Study the background of the subject matter

• This may requires extensive reading,discussion with experts, practitioners,

academicians, researchers in the field,

attending workshops and seminars, exploring

various unrelated areas etc.

• These explorations expose entrepreneurs to a

variety of perspectives on the subject matter.





Phase 2: The Mind Incubation Process

An individual immerse himself or herself in thedata, allowing the subconscious mind to muse or ponder on the information gathered.

“Sleep on it” …getting away from the subject

matter and letting the subconscious mind workingon it allows creativity to spring forth.

Incubation can be induced by: engaging in„mindless activities‟ such as painting the house or

cutting grass, meditate or play sports or boardgames. The rationale is new ideas often emergewhen we are busy doing something unrelated tothe matter.





Phase 3: The Idea Experience

• This is when the person discovers the solution or theidea. The idea may appear out of the blue or it may

comes incrementally.

• At this phase, the person begins to formulate the

solution.• Most of the time it is difficult to tell the movement from

phase 2 to phase 3.

• To expedite movement to idea experience a person can

try to daydream and fantasies about the project andalways keep a notebook to record emergence of ideas

at odd hours.





Phase 4: Evaluation and Implementation• This phase is the most difficult and requires

courage, discipline & perseverance.

• There are a lot of possibilities of failures.• Ideas are modified and tested before the best

workable idea is put into a final form and

successfully implemented.




Blocks to Creativity

• Searching for the only „one‟ right answer • Focusing on „being logical‟

• Blindly following the rules

• Constantly being practical

• Viewing play as frivolous

• Becoming overly specialized

• Avoiding ambiguity

• Fearing looking foolish• Fearing mistakes and failure

• Believing that “I‟m not creative”




The Most Common Idea Stoppers

• “That doesn‟t sound too practical”

• “We‟ve never done anything like that before.”

• “Let‟s get back to reality”

• “That‟s the dumbest thing I‟ve ever heard.”

• “We have already tried that – years ago.”

• “I don‟t see anything wrong with the waywe‟re doing it now.”

• “Are you kidding?”

• “Where do you get these weird ideas?”




What is innovation?

• Innovation is the specific instrument of

entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service (Drucker, 1985).

• Innovation is the ability to apply creative solutions to problems and opportunities to enhance or toenrich people‟s lives

• Entrepreneurs innovate by converting opportunitiesinto marketable ideas (Kuratko, 2004).




Creativity, Innovation & Invention

• Creativity is thinking new things while

innovation is doing new things.

• Invention on the other hand is often a product

of research.

• Invention is the extreme and riskiest form of innovation and often associated with

development of a new or better product or

process (Burns, 2008).

• Not all inventions lead to a commercially viable

output.




INTENSITY OF

INNOVATION

Incremental Innovation

• Steady improvements

• Based on sustaining

technologies

• Obedience to cultural routines

and norms

• Can be rapidly implemented

• Immediate gains• Develop customer loyalty

Radical Innovation

• Fundamental rethink

• Based on disruptive

technologies• Experimentation and

play/make-believe

• Need to be nurtured for longperiods

• Worse initial performance,potential big gains

• Create new markets




Examples of Incremental Innovations

• Mobile phone was regarded as a radicalinnovation (compared to the traditional„stationed‟ phone) when it was first introducedto the market.

• As technology progresses, several features areprogressively added to the phone to enhanceits features & functions.

• These innovations on mobile phones areconsidered as incremental innovations.




Examples of Radical Innovations

• Air Products – oxygen separation technology

• Analog Devices – Air Bag Accelerometer

• Dupont – Biodegradable polymer, display

technology

• General Electric – Digital X-ray• General Motors – Hybrid vehicle

• IBM – Silicon Germanium Devices, electronic book

• Nortel Networks – Internet software rental

• UTC/Otis Elevator – Bi-directional elevator

• Polaroid – Memory storage device

• Texas Instruments – Digital light processor




Impact of InnovationIntensity on the Market

• INCREMENTAL INNOVATION – Low market uncertainty

– Low technical uncertainty

– Low organization uncertainty

–Low resource uncertainty

• RADICAL INNOVATION

– High market uncertainty

– High technical uncertainty

– High organization uncertainty

– High resource uncertainty

LOW

HIGH

U N C E R T A I N

T Y




Basic Types of Innovation

INVENTION - Creating a totally new product, service or

process. Examples: aeroplanes (Wrightbrothers), light bulbs (Thomas Edison),personal GPS (Peter Maire)

EXTENSION - Introducing different application or new useof existing product, service or process

Examples: laptop, PDAs, walkman

DUPLICATION - Creative replication of an existing concept

Examples: Franchise businesses such asChicken Rice Shop

SYNTHESIS - Combining existing concepts or factors into anew formulation or use.

Example: combining functions of a telephone,video and camera.




Important Technological Innovations

1793 – 1829

•Cotton gin

•Practical

Steamboat

•Steam powered

locomotive for

passengers and

freight

1830-1900

•Telegraph

•Vulcanized Rubber

•Safety Elevator

•Internal

Combustion Engine

•Telephone

•Phonograph

•Radio

1901-1939

• Air Conditioner

•First Flight

•Model T (Ford)

•Liquid –fueled

Rockets

•FM Radio

•Jet Engine

•Xerography

•Helicopter




Important Technological Innovations

1940-1949

•Color TV

•General Purpose,

Electronic, Digital

Computer

•Supersonic Flight

•Transistor

•Instant Camera

•Jet Airliner

1950-1969

•Sputnik 1 (USSR)

•NASA

•Integrated Circuit

•Operable Laser

•First Man In Space

•Telstar Satellite

•Fiber Optics

• Apollo lX

1970 ->

•Microprocessor

•Recombinant DNA

•Laser Printer

•MRI Scanner

•Space Shuttle

•Scanning Tunneling

Microscope




Sources of Innovation

• Within the company or industry

– Unexpected occurrence - unexpected discovery

such as penicillin

– Incongruities – the gap between what is and what

should be; arise whenever a difference exists

between expectations & reality.

– Process needs – require entrepreneurs to innovate

and answer a particular needs such as time-saving

devices

– Structural change – caused by industry and marketchanges due to new developments such as

advances in technology.




Sources of Innovation

• Within the social environment

– Demographic changes – for examplechanges in population, consumer preference

and geographical locations.

– Perceptual changes – perceptions cancause mood swings and major changes in

ideas, for example fitness craze is resulted by

perceived needs to be healthy & physically fit

– New knowledge – the basis of developmentof something brand new.




Linking Creativity, Innovation & Entrepreneurship

INNOVATION

INVENTION

Ability to be

CREATIVE Ability to spot

OPPORTUNITIES

ENTREPRENEURIAL ENVIRONMENT

SUCCESS Source: Burns (2008)




• Creative idea flows to invention and invention

flows to innovation.

• Creativity can also directly leads to innovation.

• Creativity is turned into a practical reality such

as a product through innovation.• The entrepreneurial context as well as

perception of opportunity are necessary to turnit into a business reality.

• Hence, creativity must be linked toentrepreneurship in order to turn it intocommercial opportunity to be exploited.

Linking Creativity & Entrepreneurship


ENT600 Unit 2 Creativity

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