Creativity and Innovation

Midterm Requirement for Strategic Entrepreneurship Subject

at Faculty of Administrative Science University of Brawijaya

Name: Almoazer Abdelaal Abdllatif Abdelrahman

Nim: 206030203141001

Subject Supervision by:

Dr.M.K.Mawardi

UNIVERSITY OF BRAWIJAYA
FACULTY OF ADMINISTRATIVE SCIENCE
DEPARTMENT OF BUSINESS ADMINISTARTION
MALANG
2020
Introduction
While the concept of entrepreneurship has existed for some time, we are witnessing a resurgence
in both research as well as formal degree programs. I think this is triggered by a number of
factors. One key factor is that most net new growth in jobs today emanates from small to
medium-size businesses. Larger firms are turning to alternative organizational forms to compete
in the global economy. This ranges from trimming the various managerial layers to strategic
outsourcing as well as joint ventures.
A second key factor is that concept of taking an idea to market involves a degree of
competitiveness—often lacking in the larger firms. That is not to say it is absent but the vagaries
of internal politics and satisfying multiple stakeholders is usually distasteful to the entrepreneur.
Indeed, I have known several entrepreneurs who began with larger firms but were adamant that
they would do things differently when they began their own business.
A third key factor is that the entrepreneur needs to own the entire process—beginning with idea
(which I associate with the innovation process). The creative element involves crafting the
business plan, assessing market opportunities, and raising capital. Many times these steps can be
quite frustrating but it is the excitement of pulling if off the appeals to the entrepreneur. Indeed, I
know of one entrepreneur who stated “how much money I make in the end is not the goal—it is
just my way of keeping score.” In sum, entrepreneurship and managing organizations are closely
intertwined. One of the challenges going forward is competing in the global arena where
products and services are brought together from several countries or regions. This requires
focusing on team dynamics, cross-cultural issues and political/legal requirements. The
opportunities are boundless yet it needs an individual who is comfortable working in a messy
environment.
Innovation is not a new phenomenon in the evolution of society, but it is a process inherent to
human development. Ancient societies searched those elements that not only increase those
means of subsistence obtained from natural resources, but also reduce the effort necessary to
carry out their work and to facilitate the transport of individuals and products. With the
introduction of more sophisticated innovations, the benefits of these innovations were considered
as well as the negative effects on society, on employment and on human behavior. From the
economic point-of-view, economists have employed different terms when they speak about
innovation. Traditionally, innovation has been included in the capital accumulation concept.
When classical economists spoke about market behavior and mechanical advances, they included
innovation. They showed the great relevance of innovation as an essential element of economic
progress. For example, Adam Smith (1776) stated that the division of labor is one key element of
the wealth of nations, an element that could be encouraged through wider markets. One avenue
for firms to increase the markets for their products is to introduce innovations in the productive
process to produce more competitive products.
All innovations begin through the imaginative ideas. Originality is the preliminary position for
innovation. Innovation is the development of conveying the greatest thoughts into realism, which
generates an imaginative proposal and makes a succession of original proceedings. Innovation is
the conception of innovative significance. Innovation is the procedure which converts innovative
thoughts into novel significance.
One can’t be able to innovate lacking of originality. „Innovation‟ is the method to facilitate
unites thoughts and information into innovative assessment lacking of innovation a project
rapidly turns into obsolete. According to the thesaurus innovation is the beginning of „a little
different‟ or „something new‟. Innovation is the execution of imaginative stimulation.
Innovation is the starting point of each and every one struggle, the resources of predicting and
gathering customer’s requirements and the technique of consumption of knowledge.
According to West (2002), creativity is distinct from innovation as it encompasses the processes
leading to the generation of new ideas to create value for individuals, organizations and the
health sector. The term innovation is used to describe the use of these new ideas, products or
methods where they have not been used before (Eurostat Community Innovation Survey (CIS)
2015). Innovation intentionally introduces ideas, processes, products or procedures which are
new to that job, work team or organization, and which are designed to benefit the job, the work
team or the organization. For those working in healthcare there is pressure to be innovative and
‘do more with less’. Leadership of real creativity and innovation needs to be developed
throughout healthcare organizations to rise above and beyond this challenge.
The way in which people think about innovation has radically changed over the last two decades
with the advent of open sharing, user customization and the idea that service users or patients are
often the best placed people to proactively assist in revising products and processes. These
service users are now becoming more and more active in engaging with the health services to
meet their needs.
This chapter explores how creativity and innovation can be developed and sustained through
leadership, teamwork and collaboration in order to achieve a higher performing health service.

CREATIVITY
Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities
that may be useful in solving problems, communicating with others, and entertaining ourselves
and others.
It is the reason of originality, whether uttered in economic terms, employment or development,
sustainability or upgrading of common benefit. There are four methods of creative value in business are
innovation consultancy, product development, management and business support. In the end, value isn’t
some vague concept. Value is simply being of service. Something has value as long as it is able to serve.
In this sense, value is the potential to serve. When build products based around serving customer mission.
The simple untouched truth is that companies that know how to serve their customer mission are
companies that know how to generate real value in their markets. Creating value is the spirit of business.
But sometimes entrepreneurship loses prospect of what value actually is and abstract concept – a kind of
business-speak – and when we do, we lose that substantial sense of what it essentially means to create
value in business.
Creativity is the ability to come up with new ideas and to identify new and different ways
of looking at a problem and opportunities.
A process of assembling ideas by recombining elements already known but wrongly
assumed to be unrelated to each other. This definition has several key elements that are
worth considering:
• Process: Creativity is also a process (implying, among other things, that it is more like
a skill than an attitude, and that you can get better at it with practice).
• Ideas: Creativity results in ideas that have potential value.
• Recombining: The creative process is one of putting things together in unexpected
ways. THREE REASONS WHY PEOPLE ARE MOTIVATED TO BE CREATIVE:
1. Need for novel, varied, and complex stimulation.
2. Need to communicate ideas and values.
3. Need to solve problems. In order to be creative, you need to be able to view things in
new ways or from a different perspective. Among other things, you need to be able to
generate new possibilities or new alternatives. Tests of creativity measure not only the
number of alternatives that people can generate but the uniqueness of those alternatives.
the ability to generate alternatives or to see things uniquely does not occur by change; it
is linked to other, more fundamental qualities of thinking, such as flexibility, tolerance of
ambiguity or unpredictability, and the enjoyment of things heretofore unknown. Thus,
creativity is the development of ideas about products, practices, services, or procedures
that are novel and potentially useful to the organization.

INNOVATION
Innovation is the implementation of new ideas at the individual, group or organizational
level. A process of intentional change made to create value by meeting opportunity and
seeking advantage.
Innovation is the process which can be organized and control. It is establish undertaking or in
modernize a hundred years old business. To change and new ideas is essential for companies to
remain competitive and creative in shifting environments [8]. Innovation is the implantation of
creative inspiration. Sometimes walking, whether indoors or outdoors, can help to boost our
creative inspiration. Research reveals that if one draw strategy using block diagram, it will cause
mind to think in a different way, which is a great way to shake up creativity.
• Process: Innovation is a process (implying, among other things, that it can be learned
and managed).
• Intentional: That process is carried out on purpose.
• Change: It results in some kind of change.
• Value: The whole point of the change is to create value in our economy, society and/or
individual lives.
• Opportunity: Entrepreneurial individuals enable tomorrow's value creation by exploring
for it today: having ideas, turning ideas into marketable insights and seeking ways to
meet opportunities.
• Advantage: At the same time, they also create value by exploiting the opportunities
they have at hand.
TYPES OF INNOVATIONS
There are four distinct types of innovation, these are as follows:
 Invention - Described as the creation of a new product, service or process. Something
that has not been tried before.
 Extension - The expansion of an existing product, service or process. This would
mean that the entrepreneur takes an existing idea and applies it differently.
 Duplication - Copying (replicating) an existing product or service and then adding the
entrepreneurs own creative touch. In order to improve it.
 Synthesis - A combination of more than one existing products or services in to a new
product, or service. This means that several different ideas are combined in to one new
product or service.
THE INNOVATION PROCESS
1. Analytical planning – Carefully identifying the product or service features, design as
well as the resources that will be needed.
2. Resource organization – Obtaining the required resources, materials, technology,
human or capital resources.
3. Implementation – Applying the resources in order to accomplish the plans
4. Commercial application – The provision of value to customers, reward employees, and
satisfy the stake holders.
ENTREPRENEURSHIP
It is a purpose command to constrain a procedure during the labors of obsessive persons, with
their occupied group and listening carefully network. Most of the entrepreneurs believe that
mentorship is important for start-ups and budding entrepreneurs as they don't have the bandwidth
of experience, overview, and vision. For start-up making cardinal mistakes in the beginning of
their career and, therefore, have to close down the businesses because of that, it is better avoid
such situation as it’s very easily preventable through mentorship. Proper sieves, giving a few
timely tips on structuring the path for a company or for entrepreneurs as they build a company;
giving a few timely tips on structuring the path for a company or for entrepreneurs as they build a
company; it can have a snowball effect on both their probability of success and the quality of the
experience.
 Derived from French word Entreprendre which means „to undertake‟.
 Richard Cantillon: Entrepreneurs are non-fixed income earners who pay known costs
of production but earn uncertain incomes.
 Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of
production- land of one, the labor of another and the capital of yet another and thus
produces a product. By selling the product in the market he pays rent of land, wages to
labor, and interest on capital and what remains is his profit. He shifts economic resources
out of an area of lower and into an area of higher productivity and greater yield.
 David McClelland: An entrepreneur is a person with a high need for achievement
[NAch]. He is energetic and a moderate risk taker.
  Peter Drucker: An entrepreneur searches for change, responds to it and exploits
opportunities. Innovation is a specific tool of an entrepreneur hence an effective
entrepreneur converts a source into a resource.
 Ronald May: An Entrepreneur is someone who commercializes his or her innovation.
• Risk, which is measurable statistically (such as the probability of drawing a red color
ball from a jar containing 5 red balls and 5 white balls).
• Ambiguity, which is hard to measure statistically (such as the probability of drawing a
red ball from a jar containing 5 red balls but with an unknown number of white balls).
• True Uncertainty, which is impossible to estimate or predict statistically (such as the
probability of drawing a red ball from a jar whose number of red balls is unknown as well
as the number of other colored balls
CREATIVITY, INNOVATION AND ENTREPRENEURS
Creativity is thinking new things, and innovation is doing new things.
 Creativity is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.
 Innovation is the ability to apply creative solutions to those problems and opportunities
in order to enhance people’s lives or to enrich society.
 Entrepreneurship is the result of a disciplined, systematic process of applying creativity
and innovation to needs and opportunities in the marketplace.
 Entrepreneurs are those who marry their creative ideas with the purposeful action and
structure of a business. Researchers believe that entrepreneurs succeed by thinking and
doing new things or old things in new ways.
Entrepreneurship = creativity + innovation

Example:

In 2013 when I was student in the university I work as volunteer in orphan company i
went to village called “Om alqura” it’s poor village “even it’s not far from the capital city
(Khartoum)” (I prefer to called development village) , I stay there for two weeks, as my
am person with high curiosity after I start to explore the area and talk with people to
analysis and know them needs.
That’s make me think a lot to make it typical village with Bank financing, the notice that
most of the Citizens in my country when they get funding from bank they buy bus or
(Rickshaw motor) and after one or two years after they bring back the fund, back to them
zero point and sometimes the failed to bring the fund. Also it`s only for one person or few
persons but my project for all people in the village.
The project start with agriculture because of the big empty space in Sudan and the fertile
land the space will be for three different kinds of crops.
The first one for sugar cane why sugar cane because the rubbish of this harvest can be
used as energy for producing electricity for the pumps for the farms.

The second one will be clover for Cattle to produce meat by opening Slaughterhouse ,
also produce milk, all these products can sold for the other nearby village and the market.

The third crop will be tomato and another kind depends on the season because the land
fertile and that will help a lot after time we can open Sauce factory.

Inside those farms we can make Fish farming which help for increase the profit and
decrease the hunger

One of the important thing that education and health so also from the profit of that project
we can develop the schools and add new tools and fields like technical field special for
agriculture techniques ,because already the market Suffering from a deficiency of
professional technical, when we add this fields that will decrease the percentage of
deficiency.
On the other hand we have the problem of health because of the Organic waste and the
solution by burying it and produce bio cooking gas from it at the same time we can use it
as organic fertilizer. Also from the profit of this project we can Development the
hospitals which it already been in this village.
Also we will use solar and wind energy for the village to produce electricity
Conclusion:
Originality is essential for innovation. An entrepreneur must aware of the potential
dangers and simply not allow any risk. To gain premeditated roles inside the public and
private sectors lead organizations through innovative change exhibit skills in strategy,
original, and critical-thinking plan and execute research projects to a professional
standard organize professional communication skills-including written, oral and
presentation skills.
 Schumpeter: Entrepreneurs are innovators who use a process of shattering the status
quo of the existing products and services, to set up new products, new. They employs
"the gale of creative destruction" to replace in whole or in part inferior offerings across
markets and industries, simultaneously creating new products and new business models.
Thus, creative destruction is largely responsible for the dynamism of industry and long-
term economic growth.  Frank H. Knight: entrepreneurship is about taking risk. The
behavior of the entrepreneur reflects a kind of person willing to put his or her career and
financial security on the line and take risks in the name of an idea, spending much time as
well as capital on an uncertain venture. Knight classified three types of uncertainty.
The change that entrepreneurs bring about is through creativity and innovation.
Therefore, it is not surprising to see that entrepreneurs are among the more creative and
innovative players of organizational change.
 Creativity requires someone (like an entrepreneur) to add value in the marketplace
through the innovation process.
 From the idea generation to the successful product development and launch,
innovation is the seed-bed for change. Charged with the coordination of the innovation
process are the entrepreneurs.
 It is the job of the entrepreneurs to be creative in identifying the gap in the market and
innovate a product to fill this gap.
References
Innovation, Creativity, and Entrepreneurship Robert McGowan
Innovation and Creativity in Entrepreneurship Momin Mukherjee
Innovation, entrepreneurship and economic growth Miguel-A´ ngel Galindo Marı´a-Teresa Me
´ndez-Picazo
J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and
delight. Journal of world business
Istanbul biogas produce Ahmet alshegery (Arabic)