LESSON 1: INNOVATION ON ENTREPERENEURIAL ENDEAVORS

A. INNOVATION IN ENTREPRENEURSHIP
INNOVATION means changing or creating more effective and systematic processes,
product, and services, which results to better productivity and performance, thus increases
the successful conduct of a business.
It deals with creating and implementing new ideas, developing dynamic products, and
creating new services or improving existing ones. It acts as a catalyst for the growth or
sustainability of a business.
INNOVATION is the specific function of entrepreneurship. It is the means by which the
entrepreneur either creates new wealth-producing resources, or develops further existing
resources to enhance potential for creating wealth it is developing good and marketable ideas
that have undergone various development stages, a product of extensive thinking, research,
experience, and work.

B. IMPORTANT INNOVATION STEPS IN BUSINESS

These are the following:
1. Analyze the market environment, the needs and wants of customers, and the nature of
existing competitors. Be open to new ideas and learn to adapt to change.
2. Develop employees from the top down to become innovators. Inspirational leadership
drives innovation in business.
3. Establish connection with customers and employees for idea generation and for
improving processes, products and services.
4. Utilize available resources, business consultant/advisors.

C. CREATIVITY: ITS ROLE IN THE INNOVATION PROCESS

CREATIVITY is the generation of ideas that result to improved efficiency or effectiveness
of a system. There are two important aspects of creativity- process and people. The process is
the goal oriented and is designed to obtain a solution to a problem. On the other hand, the
people are resources that determine the solution.

D. THE FOUR PHASE OF CREATIVE PROCESS

1. BACKGROUND OR KNOWLEDGE ACCUMULATION (PREPARATION)
Products/Services that gain full consumer acceptance are usually those that have
undergone thorough investigation and information gathering. This involves constant and
extensive reading, exchanging ideas with others, and attending professional gatherings
and workshops successfully.
2. THE INCUBATION PROCESS
The incubation process usually happens when people are engaged in activities that are not
related to the subject or problem. Detaching one’s physical self from a problem and
allowing the subconscious mind to work on it allows creativity to spring forth.
3. THE IDEA EXPERIENCE (ILLUMINATION)
This is considered as the most exciting phase, a phase when one would simply smile
because of a bright idea that suddenly comes to mind. Many ideas spring into our minds
while we do other activities that are totally unrelated to a certain project, venture, or
another activity like for example taking a bath, brushing one’s teeth, baking a cake,
decorating the house, or simply scanning or reading a magazine.
4. IMPLEMENTATION AND EVALUATION (VERIFICATION)
If the idea experience or illumination phase is the most exciting, the evaluation and
implementation or verification phase is the most difficult and therefore requires a great
deal of courage, self-discipline, perseverance, confidence, and determination. This is the
phase where successful entrepreneurs identify ideas that are practical, feasible, and
doable. More importantly, successful entrepreneurs do not easily give up n the onset of
failure. Entrepreneurs who achieve tremendous success are those who keep trying despite
initial failures.

E. SOURCES OF INNOVATION
Entrepreneurs usually make use of innovation to exploit rather than create change.
1. UNEXPECTED OCCURRENCE
Unanticipated or unplanned event or incident. Because it is unexpected, it ends providing
to be a major surprise to any entrepreneur which could spark new ideas.
2. INCONGRUITY
This happens whenever there is a gap between expectation and reality.
3. PROCESS NEED
This occurs whenever there is a demand for the entrepreneur to innovate and answer a
particular need, or to answer a current consumer demand like the need to manufacture
convenience food or time saving devices.
4. INDUSTRY AND MARKET CHANGE
Consumer’s attitude, advancement in technology, industry growth, etc., are developments
that cause continuous shifts in the market.
5. DEMOGRAPHIC CHANGE
This occurs as a result of changes in population, education, occupation, age, geographic
location, etc.
6. CHANGE IN PERCEPTION
This change occurs in people’s interpretation of facts and concepts which are intangible
yet meaningful.
7. KNOWLEDGE BASED CONCEPT
This is used as a basis for the development or creation of a new idea or invention.
Inventions which are knowledge based are the products of new thinking, new methods,
and new knowledge.
F. TYPES OF INNOVATION
1. INVENTION
It refers to newly created products, services or processes which are often novel and
untried or have never been made before.
2. EXTENSION
It refers to existing products, services or processes that are expanded.
3. DUPLICATION
It refers to existing products, services, or processes that are replicated. An entrepreneur’s
own creative touch is added to improve/enhance the product.
4. SYNTHESIS
It refers to existing concepts and factors that are combined into a new formulation. It
involves gathering a number of existing ideas or items and finding ways to make these
form a new use or application.

G. MODES OF INNOVATION
1. ENTREPRENEURIAL INNOVATION
This refers to the innovation in entrepreneurship. It pursues creative or novel solutions to
challenges confronting a business organization such as developing new products and
services, or new administrative techniques and technologies that are geared towards the
efficient and effective performance of organizational functions.
2. TECHNOLOGICAL INNOVATION
It occurs when businesses try to gain a competitive advantage either by reducing costs or
by introducing a new technology.
3. STRATEGIC REFLEXIVE INNOVATION
This mode is considered as the most effective mode for change and innovation. It is
intangible and organizational in nature. It refers to how things are done instead of giving
much attention to the end product.