Creativity & Innovation Techniques for Entrepreneurs

CHAPTER 3: CREATIVITY AND
INNOVATION IN ENTREPRENEURIAL
VENTURES
FUNDAMENTALS OF ENTREPRENEURSHIP
(ENT300)
RBP/UiTMKS/FPP/ENT300
Chapter objectives
The objectives of this chapter are to:
i. provide students with a better understanding of the issues on
creativity and innovation especially those that are related to
entrepreneurship.
ii. provide students with creativity techniques that can be
applied in their course works
Contents
3.1 Definition of Creativity and Innovation
3.2 The importance of Creativity & Innovation in business venture
3.3 Creativity Process
3.4 Components of Creativity
3.5 Common Creativity Techniques & Tools
3.6 Blocks to Creativity
3.7 Types of Innovation
3.8 Sources of Innovation
3.9 Promoting Creativity & Innovative environment in organization
3.10 Common Characteristics of Creative & Innovative
Entrepreneurs RBP/UiTMKS/FPP/ENT300
3.1 Definition of Creativity and Innovation
Creativity is the process of generating unique and useful ideas.
Innovation will take place when there is a creative idea

generation.
Innovation is about taking the creative/unique new idea and

turning it into something of value
Innovation requires discipline and action to evaluate the ideas,

test them, modify them and then apply them. It is through there
disciplined and actions that turn an idea into something of value.
Definition of Creativity and Innovation
Davila et al (Lotherington, Amabile et al

(2006) 2003) (1996)
• "Often, in common • Creativity enables • “All innovation begins
parlance/term, the people to connect with creative
words creativity and unconnected things ideas…..We define
innovation are used and from that meeting, innovation as the
interchangeably. They new ideas spring forth, successful
shouldn't be, because whether they are new implementation of
while creativity implies ideas for doing things creative ideas within an
coming up with ideas, or new ideas for using organization. In this
it's the "bringing ideas things. view, creativity by
to life“……that makes individuals and teams
innovation the distinct is a starting point for
undertaking it is.“ innovation; the first is
necessary but not
sufficient condition for
the second"
3.2 The importance of Creativity & Innovation
in business venture
Creative entrepreneurs observed people’s problem,

and see opportunities.
These entrepreneurs then innovate by applying

creative solutions to people ’ s problems to better
enhance people’s quality of life.
Entrepreneurship is the commercialization of

creativity thus resulting in business venture.
The importance of Creativity &
Innovation in business venture
Entrepreneurship occurs when an individual or

organization:
• Sees the potential in an idea that can be developed for
the marketplace or user groups
• Is prepared to take the necessary risks to stir things
up and get things out of their neat or comfortable
spaces
• Has the skills (or access to them), confidence,
determination, and the funds (or access to them) to
carry out the innovation that is required to turn the
idea into reality.
3.3 Creativity Process
• Edward De Bono, 1992 – creativity is a process that can
be developed and improved.
• Everyone possessed a certain degree of creativity, some
of us are more creative, and some are a little less.
• Creative process involves looking with different
perspectives on unique relationships of the
surroundings.
PHASES OF CREATIVE PROCESS
Phase 1: Background or • Involves seeking & gathering of information through

Knowledge Accumulation observations, readings, conversations with others,
(Preparation) attending seminars, meetings & workshops, etc.
• Entrepreneurs deliberately allows creativity to spur by

Phase 2: The Incubation
breaking-away from the problem & let the
Process (Incubation)
subconscious mind work on it.
Phase 3: The Idea • Discovery of the idea or solutions to the problems

Experience(Illumination) (eureka factor).
• Evaluation & implementation of workable ideas

Phase 4: Evaluation & requires high level of persistency & patience.
Implementation (Verification) Entrepreneurs do not easily give-up when they face
obstacles.
Source: Adopted from Entrepreneurship A Contemporary Approach, Donald F. Kuratko and Richard M.
Hodgetts, 5th Ed. Harcourt, 2001
9
3.4 Components of Creativity
Components of Creativity
a. Creative thinking skills
– The use of creative intelligence to approach problems and find
solutions
b. Knowledge
– Expertise or knowledge encompasses everything a person knows
and can do—can be acquired in different ways: formal and informal
education—education and training are major factors that distinguish
the founders of technical ventures from other types of entrepreneurs.
c. Motivation
– Extrinsic (External influence-into financial and non-financial
motivation)
– Intrinsic (Internal influence-internally driven through a person
interest, desire, aspiration and passion. )
11
3.5 Common Creativity Techniques & Tools
① Brainstorming (Alex F. Osborn)

② SCAMMPERR (Micheal Michalko)
③ Lateral thinking (Edward De Bono)
④ Mind mapping (Tony Buzan)
⑤ Problem reversal (Charles Thompson)
⑥ Attribute listing
Source: Adopted from http://www.mycoted.com/Category:Creativity_Techniques
Brainstorming (Alex F. Osborn)
• Peters, Hisrich and Shepherd (2008) suggest that when using brainstorming,
4 rules must be adhered to:
① No criticism is allowed by anyone in the group especially negative
comments.
② Freewheeling is encouraged because as the idea is wilder, it becomes
better.
③ Quantity of ideas is desired. The greater the number of ideas, the greater
the likelihood of the emergence of the useful ideas.
④ Combinations and improvements of ideas are encouraged because
ideas of others can be used to produce other new ideas.
SCAMMPERR (Micheal Michalko)
• A checklist that could assists students to imagine various changes they can
make to an existing products/things to create a new one.
• SCAMMPERR stands for:
 S - Substitute – different process, position
 C - Combine - mix, combine with other assemblies or services, integrate
 A - Adapt - alter, change function, use part of another element
 M - Magnify - Make it enormous, longer, higher, overstated, added
features
 M - Modify - increase or reduce in scale, change shape, modify
attributes (e.g. colour)
 P - Put to another use – Is another use possible?
 E - Eliminate - remove elements, simplify, reduce to core functionality
 R - Rearrange - change the order, interchange components, change the
speed or other pattern.
 R - Reverse - turn inside out or upside down.
RBP/UiTMKS/FPP/ENT300 14
Lateral Thinking (Edward de Bono)
• Lateral (creative/imaginative) Thinking – seeking to solve
problems by unorthodox or apparently illogical methods
(Concise Oxford Dictionary).
• Lateral thinking - moving sideways when working on a
problem to try different perceptions, different concepts
and different points of entry (get us out of the usual line
of thought).
• Lateral Thinking can be used in two approaches:
① Specific: A set of systematic techniques used for changing
concepts and perceptions, and generating new ones.
② General: Exploring multiple possibilities and approaches
instead of pursuing a single approach.
Mind Mapping (Tony Buzan)
• A mind map is a diagram used to represent words, ideas, tasks,
or other items linked to and arranged around a central key
word or idea.
• Mind maps are used to generate, visualize, structure, and
classify ideas, and as an aid to studying and organizing
information, solving problems, making decisions, and writing.
Problem Reversal (Charles Thompson)
• It looks at the opposite of things, see things inside out,
backwards or upside down.
• This technique is based on the premise that the world is full of
opposites where the action of viewing a problem from an
opposite angle and by asking questions can yield a awareness
or realization of issues that hitherto is not obvious or
noticeable.
Attribute Listing
• The attribute listing technique is where the problem is broken down into smaller
parts or characteristics and analysis is made on each of these parts to develop ideas
on how to improve them.
• In this technique, the entrepreneur is required to list the attributes of an item or
problem and look at each from a variety of viewpoints, looking at the positives and
negatives aspects.
• This technique allows entrepreneurs to process some unrelated ideas and form it
into a new combination for new uses.
3.6 Blocks to Creativity
 Blockages to creativity need to be recognized and eliminated so that it

will smooth the way to creativity.
CLASSIFICATION OF BLOCKS ARE :
① Perceptual
② Emotional
③ Cultural
④ Environmental
⑤ Intellectual/Conceptual
3.7 Types of Innovation
• There are 3 types of innovation :

① Technological Innovation
② Operational Innovation
③ Organizational Innovation
Technological Innovation
• These are breakthrough inventions that have
wide-reaching impact and influence which
benefit society and business.
• Major breakthroughs can be radical and
disruptive for people, society, businesses and
countries or the whole world. Example; the
internet.
• They can change the way people live their
lives, the way companies do business and the
way countries govern and behave
Technological Innovation
• Example of major technological breakthroughs are : the wheel, smartphones,
the printing press, steam power, electricity, wireless technology, the
computer, the internet, high performance materials like plastic, fiber board,
nuclear power and so on.
• Smaller technological inventions have less impact but still have significant
benefit to certain users.
• Example of small technological inventions are: 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.
Operational Innovation
• Operational Innovation is smaller, more process-
oriented Innovation.
• Tends to be incremental in nature.
• Doesn’t necessarily change products or services or
how they are used and most of it goes unnoticed by
the public, but often it is the means to improved
products and lower operating costs.
Operational Innovation
• This type of Innovation happens by the very act of people doing their
work… “Hmm, what if we try doing it this way instead?”
• Have much smaller impact, per invention, compared with breakthrough
technological innovation, but cumulatively their effect can be
enormous. Their effect builds and grows over time.
Operational Innovation includes:
a. New systems or refinements to existing ones. For example, internal
systems and methods for many aspects of work such as staff
administration, purchasing, distribution and sales.
b. Small improvements in operations or processes. For example, changes
to make equipment run more effectively.
c. Minor improvements or developments that will enhance it to a
technological product.
d. Innovative new business practices. For example, new ways for thinking
strategically.
Organizational Innovation
• Organizational Innovation is where a company or organization itself
is innovative
• In an innovative company or organization everyone knows his or her
specific role in innovation
• It can be purposely built through putting organizational culture as the
operational style or mode to get things done.
• Innovative companies don ’ t just produce innovative goods and
services. They use innovative methods in everything they do.
3.8 Sources of Innovation
 Within the company or industry
a. Unexpected occurrence (penicillin)
b. Incongruities (Federal Express)
c. Process needs (enzyme for cataract operation, sugar
free products)
d. Industry and market changes (advances in
technology, healthcare industry)
 Within the social environment
a. Demographic changes (change in consumer
preference)
b. Perceptual changes (fitness craze)
c. New knowledge (video industry, robotics)
Source: Adopted from Entrepreneurship A Contemporary Approach, Donald F. Kuratko and Richard
M. Hodgetts, 5th Ed. Harcourt, 2001
3.9 Promoting Creativity & Innovative
environment in organization
a. Developing and instituting an innovative work culture among the
people within the company or organization.
b. By enforcing work culture, company or organization able to:
i. Change the way the staff work
ii. Change their attitudes and mindsets
iii. Improve their skills
iv. Improve the methods they use to carry out their work
3.10 Common Characteristics of Creative &
Innovative Entrepreneurs
Sensitive to Broad Flexible and

problems perspectives adaptable
Original thinker
Motivated and
and stick-to- Risk-taker
dedicated
own opinion
Curious
END OF CHAPTER 3

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CHAPTER 3: CREATIVITY AND

Creativity is the process of generating unique and useful ideas.

Innovation will take place when there is a creative idea

Innovation is about taking the creative/unique new idea and

Innovation requires discipline and action to evaluate the ideas,

Davila et al (Lotherington, Amabile et al

Creative entrepreneurs observed people’s problem,

These entrepreneurs then innovate by applying

Entrepreneurship is the commercialization of

Entrepreneurship occurs when an individual or

Phase 1: Background or • Involves seeking & gathering of information through

• Entrepreneurs deliberately allows creativity to spur by

Phase 3: The Idea • Discovery of the idea or solutions to the problems

• Evaluation & implementation of workable ideas

① Brainstorming (Alex F. Osborn)

Source: Adopted from http://www.mycoted.com/Category:Creativity_Techniques

 Blockages to creativity need to be recognized and eliminated so that it

• There are 3 types of innovation :

Sensitive to Broad Flexible and

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