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Innovation & Creativity

Dr Noor Muhammad

Innovation?

Innovation is the specific function of


entrepreneurship (Drucker)
It is the means by which the entrepreneur
either creates new wealth-producing resources
or endows existing resources with enhanced
potential for creating wealth (Drucker)

It is a foundation of competitive success,


especially in turbulent and highly competitive
environments

Innovation
Innovation: The ability to apply creative solutions to
problems and opportunities to enhance or to enrich peoples
Lives.
Innovation = Theoretical conception + Technical invention + Practical implementation

Types of Innovation

THREE Is
Three types of innovation activities
according to Schumpeter
Invention
Innovation
Imitation

Innovation?

Invention

The act of creating or


developing a new product or
process
Brings something new into
being
Technical criteria determine
the success of an invention

Innovation?

Invention

Innovation

Process of creating a commercial


product from an invention
Brings something new into use
Commercial criteria determine
the success of an innovation

Innovation?
Invention

Innovation

Imitation

Adoption of an innovation by similar


firms
Usually leads to product or process
standardization
Products based on imitation often are
offered at lower prices and without as
many features
Results of imitation
Product or process standardization
Products made with fewer features
Products offered at lower prices

Innovation

Entrepreneurs

Individuals, acting independently or as


part of an organization, who see an
entrepreneurial opportunity and then
take risks to develop an innovation to
exploit it

Creativity?

The ability to develop new ideas and to


discover new ways of looking at problems
and opportunities.

Can Creativity Be Taught?


Not long ago, the conventional wisdom was that
entrepreneurs are born and not made. It was thought
that individuals are either creative, imaginative, and
entrepreneurial or not creative, not imaginative and
not entrepreneurial.

But research has shown that people can be taught


how to be creative, imaginative and entrepreneurial.

Two Hemispheres of the Human Brain


Left-brain

Right-brain
1. Feelings

1. Logic

2. Imagination

2. Detailed facts

3. Symbols

3. Words

4. Design
5. Images

http://www.wherecreativitygoestoschool.com/vancouver/left_right/rb_test.htm

Creative Thinking
1.

Research on human brain demonstrates that each hemisphere


of the brain functions differently and that one side of the brain
is more dominant than the other.

2.

Human brain develops asymmetrically and each side develops


into certain speciality.

3.

The left brain is guided by linear and vertical thinking step by


step.

4.

The right side of the brain rely on kaleidoscopic, lateral


thinking analysing a problem from different angles.

5.

The left side handles language, logic and symbols.

6.

The right side handles the emotional and sensitive (innate)


functions.

7.

It is this group of people that are at the centre of the creative


thinking.

Creative Thinking
Now those people who develop their right side of the brain
tend to:
1.

Search for the better

2.

Challenge custom, routine and tradition

3.

Reflective, often staring out windows and day dreaming

4.

Play mental games, looking at problems from different angles

5.

Realising that there may be more than one answer to a


problem

6.

See failures as a step to success

7.

Relate unrelated ideas to a problem to generate innovative


solutions

Barriers to Creativity
There is no complete list of barriers to creativity. Time
pressures, non-cooperative environment, pessimistic
colleagues, rigid policies and many others.
However, the most common barriers are the one that
individuals impose on themselves.

Most Common Barriers


1.

Searching for the one right answer

2.

Focussing on being logical

3.

Blindly following the rules

4.

Constantly being practical

5.

Becoming overly specialised

6.

Avoiding ambiguity

7.

Fearing looking foolish

8.

Fearing mistakes and failures

9.

Believing that I am not creative

How to Enhance Creativity?


Creativity can be enhanced in two ways:
1.
2.

Through organisations
Through individuals

Entrepreneurs need to create an environment where creativity


can be fostered. New ideas need further development and
needs a favourable nourishing environment. Innovations occur
in a supportive environment.

How Can Entrepreneurs Encourage Creativity?


Entrepreneurs can enhance his/her own creativity and among
the workers in the following ways:
1.

Expecting creativity

2.

Expecting and tolerating failure

3.

Encouraging curiosity

4.

Viewing problems as challenges

5.

Providing creativity training

6.

Providing support

7.

Rewarding creativity

8.

Modelling creative behaviour

The Creative Process


New ideas can pop up at any time but they are actually the
result of a creative process which has the following steps:
1.

Preparation

2.

Investigation

3.

Transformation

4.

Incubation

5.

Verification

6.

Implementation

How to Improve the Creative Process?


It is said that two heads works better than one head. Groups of individuals
working on a particular issue can generate more creative ideas than an
individual working alone. There are three techniques which improves the
quality of creative ideas:
1.

Brainstorming

2.

Mind-mapping

3.

Rapid prototyping

Please explore the following websites:

1.
2.
3.
4.

www.mindstore.com
www.mycoted.com
www.edwdebono.com
www.triz-journal.com

References
1.
2.
3.
4.
5.
6.

Barringer, B. R., and Ireland, R. D. (2010) Entrepreneurship:


Successfully Launching New Ventures, 3rd edition (Global
edition), Pearson.
Burns, P. (2007) Entrepreneurship and Small Business, 2nd
edition, Palgrave.
Deakins, D., and Freel, M. (2009). Entrepreneurship and Small
Firms, 5th edition. McGraw-Hill.
Schilling, M.A. (2008) Strategic Management of Technological
Innovation, 2nd Edition, McGraw Hill International Edition
Wickham, P. A. (2006) Strategic Entrepreneurship, 3rd edition,
Pearson Education Limited, Financial Times, Prentice Hall.
Zimmerer, T. W., Scarborough, N. M., and Wilson, D. (2008)
Essentials of Entrepreneurship and Small Business
Management, 5th edition, Pearson Education, Prentice Hall