CREATIVITY &

INNOVATION

Pn Ima Shanaz Wahidin

Business and Management Department
UiTM Perak Branch
Tapah Campus
 INTRODUCTION

❑ Entrepreneurs need to be creative in

discovering new opportunities (in terms of
products or services) either through
invention or innovation.
❑ Innovation starts with a good idea, and a
good idea starts in the mind of a creative
individual.
 CREATIVITY? INNOVATION?
1) IDEAS→ COME FROM A NEW WAY OF THINKING, A NEW WAY OF
DOING THINGS
Everything starts with an idea. An idea is the starting point of
creativity and innovation. Without ideas there can never be
anything creative or innovative.
2) CREATIVITY→PROCESS OF GATHERING & GENERATING NEW IDEAS.
Creativity is idea generation. It can be simple or complex.
Creativity comes from the word ‘create’. What is ‘created’ or
‘generated’ is the idea.
3) INNOVATION→ CREATIVITY IMPLEMENTED.
Innovation= putting the idea into practice. It adds value to the
idea
 CREATIVITY
❑ Merging of ideas which have not been
merged before formed by developing
current ones within our minds.
❑ The ability to use the imagination to develop
new ideas, new things or new solutions
❑ The generation of ideas that result in
improved efficiency or effectiveness of a
system.
❑ The process of bringing something new into
being.
 CREATIVITY COMPONENTS

Knowledge Motivation

Creative thinking
skills
 1. Knowledge
❑Understanding of a subject with the ability
to use it if applicable.
❑Encompasses expertise, familiarity, skills
and practical & theoretical understanding
of a subject.
❑Gained by an individual through study or
experience
 2. Motivation
❑ Driving force that initiates one to behave.
❑ It is also driving someone to do something.
❑ Two forms:
▪ Extrinsic motivation→ comes from outside
a person such as recognition, rewards,
praises
▪ Intrinsic motivation→ person’s internal
desire to do something. Satisfaction is
derived from overcoming the challenge or
pleasure getting the task done
 3. Creative Thinking Skills
❑The use of creative intelligence to approach
problems and find solutions.
❑Four styles of creative intelligence:
▪ Intuitive – focuses on results and relies on
past experience to guide actions - learn
from these failures by avoiding their
repetitions.
▪ Innovative – focus on the issues at hand
and evidences in front of them - carry
out experiments by apply theoretical
concepts to a particular problem -
conduct experiment to verify facts.
▪ Imaginative – adopted when chaos arises -
strong sense of confidence to influence
everyone - allows envision and plan for the
future course of action - able to visualize
opportunities - thinks “out of the box”.
▪ Inspirational – inspire their followers - strong
social awareness and score very high on
affiliations for people focuses on social
change and the giving of self toward an
end.
 CREATIVITY TECHNIQUES

Brainstorming Mind-mapping

Forced Attribute Lateral Problem

Analogy listing Thinking Reversal
❑ PROBLEM REVERSAL – look at the
opposite of things, see things inside out,
backwards or upside down – turn defeat
into victory-create negative statements-
doing what everybody is not doing.
❑ FORCED ANALOGY - gain new insights by
forcing a relationship between almost
anything-develop new ideas by looking
at product combination.
❑ ATTRIBUTE LISTING - break down the
“thing” into smaller parts or
characteristics and develop ideas to
improve on them-look at negative &
positive aspect-identify dissatisfaction.
❑ MIND MAPPING - starts in the centre of the
page with the main idea, and works
outward in all directions, producing a
growing and organized structure
composed of key words and key images.
❑ BRAINSTORMING – generating ideas
based on the principle of suspending
judgments.
❑ LATERAL THINKING - exploring multiple
possibilities and approaches from different
perspective rather than pursuing in a
conventional, logical, step by step single
approach. i.e. by changing concepts and
perceptions, and generating new ones.
 CREATIVE PROCESS
Phase 1: Phase 2:
Background or The Incubation
Knowledge Process
Accumulation

Phase 4: Phase 3:
Evaluation and The Idea
Implementation Experience
Phase 1: Background/ Knowledge Accumulation - Study the
subject matter – seek and gather information (observations,
readings, conversations seminars, meetings, workshops,
discussion - experts, practitioners, academicians, researchers
in the field) - expose to a variety of perspectives.
Phase 2: The Mind Incubation Process - Allows creativity to
work on it - Immerse in data & allow subconscious mind to
ponder on the information gathered - Ideas emerge when we
are busy doing something unrelated - engaging in ‘mindless
activities’ (painting, meditate or board games).
Phase 3: The Idea Experience - Discovery of the idea or
solutions to the problems - Most exciting phase as appear out
of the blue/ incrementally - expedite movement (daydream,
fantasies).
Phase 4: Evaluation and Implementation - Most difficult -
courage, discipline & perseverance - High level persistency
and patience - do not easily give up as many failures before
successful - Ideas are modified and tested before the best
workable idea is put into a final form and successfully
implemented.
 INNOVATION
Process where entrepreneurs convert
opportunities into marketable ideas
Refers to the implementation of the
creativity ideas that put through in
product and services
The ability to apply creative solution to
enrich and enhance people’s lives
 TYPES OF INNOVATION
 Invention – Creation of totally new product &
service – Aeroplanes (Wright Brothers), light bulb –
(Thomas Edison), telephone (Alexander Graham
Bell).
 Extension – Introduce different application or usage
of existing products & services – laptop, telephone.
 Duplication – Replication of existing concept –
pizza, chicken rice shop, kfc, etc.
 Synthesis – Combination of existing concept into
new usage – adding convenience stores, cafes to
petrol station.
 INTENSITY OF
INNOVATION

Radical Innovation Incremental Innovation

• Fundamental rethink • Steady improvements

• Based on disruptive
technologies
• Experimentation and
play/make-believe
• Need to be nurtured for
long periods
• Worse initial
performance, potential
big gains
• Create new markets
• Based on sustaining
technologies
• Obedience to cultural
routines and norms
• Can be rapidly
implemented
• Immediate gains
• Develop customer loyalty
 Innovation Examples
❑Example of radical innovation: the wheel, the
printing press, steam power, electricity,
wireless technology, the computer, the
internet, high performance materials like
plastic, fiber board, nuclear power and so on.
❑Example of incremental innovation: the paper
cup, the ball-point pen, the electric
toothbrush, the electric razor, hair dryers, the
garden hose, electric toys, remote control
toys, computer games, electric pencil
sharpener and so on.
 SOURCES OF INNOVATION
Within the company (industry)

Unexpected occurrence
❑ An opportunity can arise
from an unexpected
event/ discovery -
happened by accident
 Incongruities
❑The gap between what is and what should be;
arise whenever a difference exists between
expectations & reality.
❑A discrepancy between reality and what everyone
assumes is real, or between what is and what ought
to be, can create an innovative opportunity.
❑Eg: The thought of the invention of TV means the
end of movie theatres. However, movie theatres
have since evolved and are still attracting
moviegoers.
 Process Needs
❑Require entrepreneurs to innovate and
answer a particular needs such as.
❑When a weak link is evident in a particular
process, an opportunity is present to the
person or company willing to supply the
"missing link".
❑ Eg: Sugar free products, time-saving
devices -microwave oven.
 Structural Change
❑ Caused by industry and market changes due to
new developments such as advances in
technology.
❑ A business is ready for an innovative product,
service or approach to the business when the
underlying foundation of the industry or market
shifts.
❑ Eg: Rest homes -> children busy working and
cannot look after their parents & Kindy parents
busy working and need place to care for children.
 SOURCES OF INNOVATION
Within the social environment
Demographic changes
❑ Changes in the population's size, age
structure, composition, employment, level
of education and income can create
innovative opportunities.
 Perceptual Changes
❑ Society's general assumptions, attitudes and
beliefs change.
❑ Cause mood swings and major changes in ideas
❑ Eg: fitness craze is resulted by perceived needs to
be healthy & physically fit (jogging, aerobics,
etc) & usage of personal computers have
shifted; initially regarded as simple word
processing machines now used for
entertainment.
 New Knowledge
❑ The basis of development of something brand
new.
❑ Advances in scientific and non-scientific
knowledge can create new products and new
markets.
❑ Eg: flat-panel television, portable hand phones,
which can be used anywhere on earth using
satellite technology & intelligent facsimile
machines and portable personal computers,
provide lots of opportunities in this area.
LINKING CREATIVITY, INNOVATION
& ENTREPRENEURSHIP
Creativity
The ability to develop new ideas & discover new
ways of looking at problems & opportunities – Done
by generating useful & unique ideas - Turned into
reality through innovation of product.
Innovation
The ability to apply creative solutions to problems &
opportunities to enhance & enrich people’s lives.
Entrepreneurs are those who marry their creative
ideas with the purposeful action and structure of a
business.
Entrepreneurship
Result of a systematic process of applying creativity
& innovation to the needs & opportunities in
marketplace.