Innovation and Creativity

Learning outcomes Explain nature of innovation Critical role of entrepreneurs in the process

of innovation Link between innovation, opportunity and

entrepreneurshipOpportunity can be stimulated in a

systematic way Sources of opportunity Are you an innovative thinker

Learning outcomes Cont… Creativity & its importanceExplain what makes an individual creativeRelation of Creativity & logical thinkingCreativity processBarriers to creativityTechniques to increase creativitySteps to become creativeCreativity vs. innovationInnovation creativity & entrepreneurship

Creativity & Innovation

Ideas Ideas + Action

Kantar defines Innovation as As the generation, acceptance and implementation

of new Ideas, processes product and services Mintzberg defined innovation as As the mean to break away from established

pattern in other words doing things in really different way

Innovation

Cont…. Porter presents that innovation is not just a

single major technological breakthrough in fact it is a accumulation of small changes in the product ,services and in processes

Morris and Kuratko present the list of continuum of possibilities for innovation in product/services and processes

Types of innovation The introduction of new or improved goods

or services The introduction of new processes The opening up of new market The identification of new source of supply of

raw materials.The creation of new types of industrial

organization

(Burns, 2007)

Process of Innovation

(Burns, 2007)

Effectiveness Criteria for an Innovation process

Implement a few ideas at regular intervals

Ensure feedback takes place - there must be communication channels

to originators.

Screening system should be simple, understood by everyone

Ensure the system is promoted

Transform ideas into reality at a reasonable speed - if the system is too

slow we may be too slow to react to the market pace and turn off idea

originators.

(Burns, 2007)

Frequent route of innovation for entrepreneurial firms

Product/servicesdevelopmentNew to the marketNew product/service line

within the company Addition in the line Improvement or revision New applications in the

existing product and servicesRepositioning of the existing

product Cost reduction for the

existing products/ services

Process developmentMajor new processes

Minor new processes

Significant revision to existing processes

Modest improvement to existing process

(Burns, 2007)

Innovation Model

What is CreativityNew ways of doing things The ability or quality displayed when solving

hitherto unsolved problem (parkhurst 1999)

Help in innovationTo do things differently

(Burns, 2007)

Definition

Creativity is a mental process involving the discovery of new

ideas or concepts, or new associations of the existing ideas

or concepts, fueled by the process of either conscious or

unconscious insight(Burns, 2007)

Creativity is at core of any true entrepreneur. it is important in coming up with completely new ways of doing things, rather than looking for adaptive, incremental change.

Parkhurst (1999) defined:

It as the ability or quality displayed when solving hitherto unsolved problems, when

developing original and novel (at least to its originator).

Characteristics of the creative personality • Creative individuals have a great deal of energy, but they are also often quiet and at rest.

• Creative individuals tend to be smart, yet also naive at the same time. • Creative individuals have a combination of playfulness and discipline, or

responsibility and irresponsibility. • Creative individuals alternate between imagination and fantasy ant one end,

and rooted sense of reality at the other. • Creative people seem to harbor opposite tendencies on the continuum

between extroversion and introversion. • Creative individuals are also remarkable humble and proud at the same

time. • Creative individuals to a certain extent escape rigid gender role

stereotyping and have a tendency toward androgyny. • Generally, creative people are thought to be rebellious and independent. • Most creative persons are very passionate about their work, yet they can be

extremely objective about it as well. • The openness and sensitivity of creative individuals often exposes them to

suffering pain yet also a great deal of enjoyment (Burns, 2007)

Creativity process on individual level

FEED BACKLOOP

(Burns, 2007)

Creative process1.Generating knowledge and awarenessA prerequisite to all creative processes is the

generation of awareness of different ideas and ways of doing things through reading and traveling widely, talking with different people with different views about the world.

2.Incubation processThis incubation period happens when people are

engaged in other activities (the best are those instinctive activities that do not require left brain dominance) and they can left their subconscious mind work on the problem. (Burns, 2007)

Creative process3. Generating ideasIdeas can come unexpectedly during the incubation

period, but often they need encouragement. There are a number of techniques to encourage idea generation.

4. Evaluation and implementationThe Explorer: Searching for new insights and perspective by

shifting through information , being curious , observing other fields, generating ideas, broadening perspective, following unexpected leads, using difficulties and obstacles and constantly writing things down.

(Burns, 2007)

Wallis Model of the Creative Process:

• Preparation• Incubation• Illumination• Verification

(Burns, 2007)

Preparation StageDefine the problem, need, or desire, and

gather any information the solution or response needs to encompass.

Set up criteria for verifying the solution's acceptability.

This can take minutes, hours, days, weeks, months, even years.

(Burns, 2007)

Incubation StageStep back from the problem and let our

minds contemplate and work it through. As with preparation, incubation can last

various lengths of time.

(Burns, 2007)

Illumination StageIdeas arise from the mind to provide the

basis of a creative response. These ideas can be pieces of the whole or the

whole itself. Illumination is often very brief, involving a

tremendous rush of insights within a few minutes or hours.

(Burns, 2007)

Verification StageDemonstrate whether or not what emerged in

illumination satisfies the need and the criteria defined in the preparation stage.

(Burns, 2007)

Techniques to enhance creativityBrainstormingAnalogyAttribute analysisGap analysisEncouraging creativity

(Burns, 2007)

Barriers to creativityThe fallacy that there is only one correct solution to a

problemThe fallacy that logical is important in creativityThe tendency to be a practicalThe tendency to follow established rules unquestioningly.The tendency to assign blame for failureThe unwillingness to recognize the creativity power of playThe tendency to think too narrowly & with too much focusThe unwillingness to think unconventionally because of the

fear of appearing foolishThe lack of belief that you can be creative

(Burns, 2007)