SPE3002 Entrerpeneurship - Creativity and Innovation w8[1]

7/30/2019 SPE3002 Entrerpeneurship - Creativity and Innovation w8[1]

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Mohd. Khata Bin Jabor email: [email protected] slide 1

WEEK 8

28 AUGUST – 3 SEPTEMBER 2006




AGENDA

Developing Creativity andInnovation




LEARNING OUTLINE

What Is Creativity?

Process Of Creativity

Barriers To CreativityHow To Generate Creative Ideas

• Continue..




LEARNING OUTLINE

What Is Innovation?

Type Of Innovation

Sources Of Innovation

Barriers Of Innovation

The Importance Of Creativity AndInnovation

Strategies To Encourage CreativityAnd Innovation




What is Creativity

• Definition – Involves the development of unique

and novel responses to problem and

opportunities.

– Imperative for responding to the

complex challenges in a dynamic

business environment which is often

on non-routine problems. – The ability to produce work that is

original and unexpected, high in

quality and appropriate.




Inside theEntrepreneurial Mind:

From Ideas to Reality




Creativity and Innovation

• Creativity – the ability to develop newideas and to discover new ways oflooking at problems and opportunities.

• Innovation – the ability to applycreative solutions to problems or opportunities to enhance or to enrich

people’s lives.




Entrepreneurship

• Entrepreneurship – the result of adisciplined, systematic process ofapplying creativity and innovation to

the needs and opportunities in themarketplace.

Entrepreneurs connect their creative

ideas with the purposeful action andstructure of a business.




Failure: Just Part of the

Creative Process!• For every 3,000 new product ideas:

– Four make it to the development stage.

– Two are actually launched.

– One becomes a success in the market.

• On average, new products account

for 40% of companies’ sales!!




Can We Learn to BeCreative?

Yes!!

By overcoming paradigms and by suspending

conventional thinking long enough to consider new

and different alternatives!




Bird’s Model of

Entrepreneurial Intentionality

Opportunities in thesocial, political,

economic context

Personal history,background,

personality, abilities

Rational, analyticthinking, goal-

directed behavior

Intuitivethinking,

vision

Intentionality

Actions




Right-Brained, Creative Thinkers

• Always ask, “Is there a better way?”

• Challenge custom, routine, andtradition.

• Are reflective.

• Play mental games.




Right-Brained, Creative Thinkers

• Realize that there may be more thanone “right” answer.

• See mistakes as pit stops on the way tosuccess.

• Relate seemingly unrelated ideas to aproblem.

• Have “helicopter skills.”




Left-Brained or Right-Brained?

• Entrepreneurship requires both left-and right-brained thinking. – Right-brained thinking draws on divergent

reasoning, the ability to create amultitude of original, diverse ideas.

– Left-brained thinking counts onconvergent reasoning, the ability to

evaluate multiple ideas and to choosethe best solution to a problem.




Focus

Depth

Skills

Hard Work

Experience

Growth

Expansion

LinearCreativity

Lateral Creativity

Breadth

Analogies

Uniqueness

Non-Logic

Innovation

Out-of-the-Box

(Intuitive/Imagination)

(Logic/Knowledge)




Elements of Creativity

• Unique (original)

• Valued (useful)

• Intent (purpose)• Continuance (implementation

excellence)




Increasing Personal Creativity

• Idea file or notebook

• Network

• Read voraciously• Think in opposites

• Look for new uses for old things




Tips for EnhancingOrganizational Creativity

• Expecting creativity

• Expecting and tolerating failure

• Encouraging creativity• Viewing problems as challenges

• Providing creativity training

• Providing support• Rewarding creativity

• Modeling creative behavior




Tips for Enhancing IndividualCreativity

• Allow yourself to be creative

• Give your mind fresh input every day

• Keep a journal handy to record your thoughts and ideas

• Read books on stimulating creativity

• Take some time off




Creative Thinking Process

CreativeProcess

KnowledgeAccumulation

Incubation

Ideas

Evaluation andImplementation




The Creative Process

Preparation Investigation Transformation

Incubation Illumination Verification

Implementation




How to Create Creative Ideas

BRAINSTORMING

D – Define Problem

O – Open mind and apply creative technique

I – Identify best solution

T - Transform

FORCED ANALOGY

MIND MAPPING

NOMINAL GROUP

DO IT

H t C t C ti Id

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How to Create Creative Ideas




Techniques for Improving theCreative Process

• Brainstorming – Goal is to create a large quantity of novel

and imaginative ideas.

• Mind-mapping – A graphical technique that encourages

thinking on both sides of the brain, visuallydisplays relationships among ideas, and

improves the ability to see a problem frommany sides.




Techniques for Improving theCreative Process

• Rapid prototyping – Transforming an idea into an actual

model that will point out flaws and lead to

design improvements.




PERSONAL BELIEFS STRESS

OVER-MANAGEMENT




Barriers to Creativity

• Searching for the one“right” answer

• Focusing on “being logical”

• Blindly following the rules

• Constantly being practical

• Viewing play as frivolous




Barriers to Creativity(continued)

• Becoming overly specialized

• Avoiding ambiguity

• Fearing looking foolish• Fearing mistakes and failure

• Believing that “I’m not

creative”




Characteristics of Creative Individuals

Humble and Proud

Passionate about work, Yet objective about it

Brave to try new things

Open Minded

Willing to accept critiques

Combination –

Playfulness &

Discipline, responsibility

High Self-Control

Goal directed, deliberate,

considerate in

decision making

Willing to take risk

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Protecting Your Ideas

• Patent – a grant from the Patent andTrademark Office to the inventor of aproduct, giving the exclusive right to

make, use, or sell the invention for 20years from the date of filing the patentapplication.




The Steps to a Patent

Establish the invention’s novelty

Document the device

Search existing patents

Submit the patent application

Prosecute the patent application

Study search results




Protecting Your Ideas

• Trademark – any distinctive word,symbol, design, name, logo, slogan, or trade dress a company uses to identify

the origin of a product or to distinguishit from other goods on the market.

• Servicemark – the same as a

trademark except that it identifies thesource of a service rather than aproduct.




Protecting Your Ideas(continued)

• Copyright – an exclusive right thatprotects the creators of original worksof authorship such as literary,

dramatic, musical, and artistic works.

• Copyrighted material is denoted bythe symbol ©.




Innovation

CREATIVITY INNOVATION

i ti b t




Misconceptions aboutInnovation

• Primary misconception – innovationmainly technological

• New, novel, creative

• Innovation often confused withinvention

• Discovery – Invention – Innovation• Innovation can be managerial, legal,

political




Innovation – Definition 1

• Innovation is an endeavour whichproduces a significant leap in the costto benefit ratio

• Costs and benefits are defined incomprehensive ways

• Costs: monetary, difficulty,

inconvenience, physical risk

• Benefits: Money, pleasure, health, fun,convenience




Innovation – Examples

• Optical communication systems – bandwidth vs cost

• Flexible Manufacturing Systems:choice vs cost

• Web-enabled processes: customer

satisfaction vs cost (FedEx example)

• ATM Machines: convenience vs cost




Non-technological Innovations

• Productivity Innovation: Ford cars(assembly line)

• Marketing innovation: Frequent Flier

programs (Sticky customers,avoiding customer churn)

• Pricing innovation: Web-services

model




Non-technological Innovations

• Branding innovation: Kingfisher Airline?

• Legal Innovation: Patents, Limitedliability companies

• Financial innovations: insurance,mutual funds, installment buying,home loans, credit cards, derivatives

(futures and options), mortgage-backed securities

I ti M j d




Innovation – Major andIncremental

• First time introduction – a whole newmarket created – SONY walkman,Mosaic WWW browser, Dial-up

modems (using phone lines to sendand receive data)

• Incremental innovation: extensions –

ADSL modem (32 kbps to 1.5 mbps andsimultaneous data and voice delivery)




Innovation – Definition 2

• Innovation endows resources with newcapacity to deliver

• Economics – Resources are scarce and

limited

• Progressive societies efficiently allocate

resources to the most promisingactivities

• Production Possibility Frontier




Performance

Time and Effort

Table: S-curve

THE IMPACT OF INNOVATION (C.M. Christensen)




Continuation of Ongoing Innovation

Performance

Time and Effort

Table: S-Curve




Innovation

Types of Innovation

INVENTION

EXTENSION

DUPLICATION SYNTHESIS




Sources of Innovation

Unexpected Events

New – knowledge concept

Changes of Demographics

Process Needs




Barriers to innovation

No encouragement by

organizations

Insufficient sources –

humanresources, funds, facilities

Traditional Management

Behavior – resist changes

B i t I ti




Barriers to Innovation

Personal / Individual Behaviors

– Fear of trying

– Fear of making mistakes

–

Improper motivation – Fear of Change

– Fear of Failure

– Self-image block




Why Creativity and Innovation

are Important?1. To ensure organization’s survival

2. To explore new market

3. To exploit natural resources

http://images.google.com.my/imgres?imgurl=http://www.developyourvision.com/images/Logo%2520Icon%2520Mindset.jpg&imgrefurl=http://www.developyourvision.com/Mindset.htm&h=288&w=220&sz=16&tbnid=AvF6gL8r6nYuLM:&tbnh=110&tbnw=84&hl=en&start=53&prev=/images%3Fq%3Dcreative%2Bthinking%26start%3D40%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN




Strategies Recognize your own ability Change your perception

Change your

organizational culture

Dare to Fail

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http://images.google.com.my/imgres?imgurl=http://www.tes.co.uk/upload/2128245/streamingscotplus.jpg&imgrefurl=http://www.tes.co.uk/section/story/%3Fstory_id%3D2128245%26window_type%3Dprint&h=270&w=200&sz=9&tbnid=0bVz-Wx8N-363M:&tbnh=108&tbnw=80&hl=en&start=156&prev=/images%3Fq%3Dcreative%2Bthinking%26start%3D140%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN

http://images.google.com.my/imgres?imgurl=http://www.theperformanceworkshop.co.uk/images/img795dd12f2f50911823ac6369d4f0d7af.gif&imgrefurl=http://www.theperformanceworkshop.co.uk/performance-workshops/personal-performance-workshops/creative-thinking&h=344&w=342&sz=15&tbnid=O0D3RCIQee2U-M:&tbnh=116&tbnw=115&hl=en&start=144&prev=/images%3Fq%3Dcreative%2Bthinking%26start%3D140%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN

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INNOVATION PROCESS &

THE INNOVATION CHAINEQUATION

• Developed by J.R Bright (1969)provides an eight-stage of theinnovation process.




INNOVATION PROCESS &CHAIN EQUATION

Stage 1

Stage 7

Stage 6

Stage 5

Stage 4

Stage 3

Stage 2

Stage 8




Stage 1

• The innovation begins in one or both oftwo ways. One is by suggestion and/ordiscovery; that is from the speculations

and/or discoveries of scientist, or possibly craftspeople in pursuing their activities. Another way is by

perception of an environmentalmarket need or opportunity.




Stage 2

• This is the proposed theory or designconcept; that is, the synthesizing ofexisting knowledge and techniques to

provide the theoretical basis for thetechnical concept. This synthesisusually occurs after considerable trial

and error.




Stage 3

• The verification of the theory or designconcept followed.

Stage 4 • The laboratory demonstration of the

applicability of the concept, such as thedevelopment of the “breadboard” model in

electronics.




Stage 5

• Alternative versions of the concept areevaluated and developed to bedefined as the full scale approach. At

his stage, a prototype is developed and subjected to field trials.Alternatively, a pilot production plant

produces small quantities

of the newproduct which may be submitted totest markets or clinical trials.




Stage 6

• The commercial introduction or initialoperational use of the innovation

Stage 7 The widespread adoption of the innovation

when its scale and scope of usage are sufficient

to generate substantial cash flows in the

producing enterprises and significant societal

impacts.




Stage 8

• Proliferation, when either the genericproduct (e.g: radar to detectspeeding motorist) or the generics

technology (e.g: microwavetechnology in cooking ovens) isadapted for use in newly defined

markets.

INNOVATION IN PRACTICE





•

Innovation is a dynamic process• A continuing occurrence in our

everyday business life and they

are mostly minor in nature• Example: A color television set.

What changes (technical design

& appearance) could yousuggest?






•

A deviation from the earlier modelor add functions

• These changes are ongoing, and

vital to the continued success of

the business

O O C C




INNOVATION IN PRACTICEStage Date Person Activities

1 1846 MichaelFaraday

Discovered an interrelationshipbetween electricity & magnetismthrough observation leading toscientific suggestion

2 1864 JamesMaxwell

Electromagnetic wave theory

3 1886 HeinrichHertz

Experimental detection (verificationof the existence) of electromagneticwaves

4 1892 WilliamCrookes

Suggests their use in wirelesscommunication

5 1894 Oliver Lodge

Laboratory demonstration of use

O O C C




INNOVATION IN PRACTICEStage Date Person Activities

6 1896 GuglielmoMarconi

Recognized the potential utility ofwireless telegraphy

7 1897 GuglielmoMarconi

Commercial introduction

8 1910-1912 GuglielmoMarconi Increasing adoption – Crippen-Titanic effect

9 Later Many Proliferation-radio industry, radar, TVindustry, etc.

Discuss the technological

innovation above and identifyfactors that need to be givenconsiderations upon making an

innovation.




Newneeds,

new users& markets

Physical arrangementof materials/

hardware/information

Practical butunrealizedinventions

Design forcommercialrealization

of invention

Innovativeproducts

designed for

selected markets

Competitive designing& redesigning, ongoing

improvements of product: lower price,

modified specifications

The process of Invention, Design and Innovation

Invention

Designdevelopment Innovation Continuous

innovation

Basic design concept



Acceptance of an Idea

Applicable Adaptation Exploitation Expansion

Fulfilling Needs

SPE3002 Entrerpeneurship - Creativity and Innovation w8[1]

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