5 Creativity and Innovation

CREATIVITY
AND
INNOVATION
TOPIC 5
LEARNING OBJECTIVES:
• To explore how ideas fit within the opportunity identification

process
• To define and illustrate the sources of opportunity for
entrepreneurs
• To examine the role of creativity and to review the major
components of the creative process: knowledge accumulation,
incubation process, idea evaluation and implementation
• To present ways of developing personal creativity: recognize
relationships, use lateral thinking, use your ‘brains’, think
outside the box, identify arenas of creativity and work in creative
climates
LEARNING OBJECTIVES:
• To introduce how innovation can inspire opportunity

through invention, extension, duplication and
synthesis
• To review some of the major misconceptions
associated with innovation and to define the 10
principles of innovation
IDEAS AND THE SEARCH FOR
OPPORTUNITY
 Identifying and shaping opportunity is central to the
domain of entrepreneurship.
 opportunity identification process is one of the
primary preoccupations of entrepreneurship
 Innovation refers to newness, but not because
something is new that it will automatically create
value or be perceived as inherently positive and
good.
 Entrepreneur’s challenge is to innovate a new
product, service, process, market or business
concept that they foresee will create future value.
SOURCES OF INNOVATIVE IDEAS
Trends
Trends signal shifts in the current paradigm (or
thinking) of the major population.
Societal trends: ageing demographics, health and
fitness growth, senior living, social media
Technology trends: smart phone technology, e-
commerce, Internet advances, drones,
miniaturization
Economic trends: higher disposable income, dual
wage-earner families, performance pressures,
rising fuel costs
Political trends: increased regulations, terrorism,

sovereign debt, military alliances, free trade
agreements
Environmental trends: global warming, drought,
increased severity of storms, increases frequency
of bushfires, pollution.
Unexpected occurrences
These are successes or failures that, because
they were unanticipated or unplanned, often end
up proving to be a major innovative surprise to
the business.
Incongruities
These occur whenever a difference exists
between expectations and reality.
Innovation is the creation of solutions to
incongruities.
Process needs
Process gaps or bottlenecks
The entrepreneur must recognize an innovation
solution, or ‘painkiller’.
Industry and market changes
Continual shifts in the marketplace occur, caused
by developments such as consumer attitudes,
advancements in technology, industry growth and
the like.
Demographics
These arise from trend changes in population,
education, income changes, age, occupations,
geographic locations and similar factors.
Perceptual changes
These changes occur in people’s
interpretation of facts and concepts. They are
intangible yet meaningful.
Knowledge-based concepts
Inventions are knowledge-based; they are the
product of new thinking, new methods and new
knowledge.
Such innovations often require the longest time
period between initiation and market
implementation because of the need for testing
and modification.
NATURE OF CREATIVE PROCESS
 One’s creative potential is something that can
be developed and improved.
 Some individuals have a greater aptitude for
creativity than others.
 Some people have been raised and educated in
an environment that encouraged them to
develop their creativity.
 The creative process involves seeing
relationships among things others have not seen
DEVELOPING CREATIVITY
Lateral Thinking
Concerned with the generation of new ideas. It is
also concerned with ‘breaking out of the concept
prisons of old ideas’.
 Lateral thinking is not a substitute for vertical
thinking
 Lateral thinking is generative, vertical thinking is
selective.
Thinking Outside the Box
 To leave your psychological comfort zone and
explore ‘solutions in the unknown world on the
outside requires large measures of mental agility,
boldness and creativity
Recognizing Relationships
 Many inventions and innovations are a result of
the inventor seeing new and different
relationships among objects, processes,
materials, technologies and people
Using your Brains
 The right brain hemisphere helps an individual
understand analogies, imagine things and synthesize
information.
 The left brain hemisphere helps the person analyze,
verbalize and use rational approaches to problem
solving.
 The creative process involves logical and analytical
thinking in the knowledge accumulation, evaluation
and implementation stages.
 To become more creative it is necessary to practice
and develop both right- and left-hemisphere skills
ARENAS OF CREATIVITY
Idea Creativity
 Thinking up a new idea or concept, such as an idea for
a new product or service or a way to solve a problem
Material Creativity
 Inventing and building a tangible object such as a
product, an advertisement, a report or a photograph.
Organization Creativity
 Organizing people or projects and coming up with a
new organizational form or approach to structuring
things.
Relationship Creativity
An innovative approach to achieving
collaboration, cooperation and win-win
relationships with others.
Event Creativity
Producing an event such as an awards ceremony,
team outing or annual meeting
Inner Creativity
Changing one’s inner self; being open to new
approaches to how one does things and thinking
about oneself in different ways.
Spontaneous Creativity
Acting in a spontaneous or spur-of-the-moment
manner
INNOVATION AND THE
ENTREPRENEUR
 Innovation is the process by which
entrepreneurs convert opportunities (ideas)
into marketable solutions.
 Innovation process begins with the analysis of
the sources of new opportunities
 Most successful innovations are simple and
focused. They are directed towards a specific,
clear and carefully designed application.
TYPES OF INNOVATION
Invention
 the creation of a new product, service or process,
often one that is novel or untried; such concepts tend
to be revolutionary
Extension
 the expansion of a product, service or process
already in existence; such concepts make a different
application of a current idea
TYPES OF INNOVATION
Duplication
 the replication of an already existing product, service or
process.
 however, is not simply copying but adding the
entrepreneur’s own creative touch to enhance or
improve the concept to beat the competition
Synthesis
 the combination of existing concepts and factors into a
new formulation; this involves taking ideas or items
already invented and finding a way so together they
form a new application.
PRINCIPLES OF INNOVATION
Be action oriented
Make the product, process or service simple
and understandable
Make the product, process or service customer-
based
Start small
Aim high
Try/test/revise
PRINCIPLES OF INNOVATION
Learn from failures
Follow a milestone schedule
Reward heroic activity
Work, work, work
THANK YOU
FOR
LISTENING!

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CREATIVITY

• To explore how ideas fit within the opportunity identification

• To introduce how innovation can inspire opportunity

Political trends: increased regulations, terrorism,

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