» CHAPTER SIX OPPORTUNITY AND THE CREATIVE PURSUIT OF INNOVATIVE IDEAS Seed eee for the sources of innovation, the changes and their symptoms that indicate —_ pportuntes for success innovation. CHAPTER 1 F, Drucker, Imovation and OBJECTIVES Entrepreneurship" 41 To explore how ideas fit within the opportunity identification process _‘maginea world in which ll the things we make, use and consume provide nutrton 2 To define and ilustrate the sources of opportunity for entrepreneurs _furnsuarsamirenaty cers inhen 3 To dentily the four models of market opportunity: competition, verhing iss inteligenty designed that To dentty the four models of market human atviy generates adh, . restorative ecological fotprint. imagine & To examine the role of creativity and to review the major components having the choice, in avery sphere o lie — of the creative process: knowledge accumulation, incubation process, ‘at home, on the job, travelling from place idea evaluation and implementation to place ~ to.use goods and services that enhance the well-being of your community. To present ways of developing personal creativity: recognise Imagine thse gods designed with only relationships, use lateral thinking, use your brains’, think outside the safe, healthful materials that canbe either box, identify arenas of creativity and work in creative climates Felurned tothe earth to replenish the sol or recovered by their manufacturers to be & To ntroduce how innovation can inspire opportunity through invention, nsycua na nue gent, ‘extension, duplication and synthesis virtually eliminating the concept of waste. 7. To review some ofthe major misconceptions associated with Et sn Ss innovation and to define the 10 principles of innovation pes sa ote fea Se 8 To consider the challenges and changing dynamics of social and powered by the energy of the sun. Imagine sustainability innovation histech buildings ain ture wt the Sopher that the hab he andscape tke nate res, making oxen, sequestering carbon, ang ntogen, puniying water, proving taba or thousands af pets. acerung solr . energy, bising so and chang ith he . Seasons - whl ale generating FCoursematel remarabl rodutniy an proving beauty, comfort and delight. And then Visit hitp/togin.cengagebrain. consider the many ways in which these com ad use the access code that comes wth this book for24months access tote CourseMate Express resources for this chapter including ‘quizzes, videos, games and changes, this rediscovery of our connection to ife, could revitalise our cities, our ‘economies and our nations, remaking the way we make things and transforming humanity's relation tothe Earth William McDonough, The Natural ‘Advantage of Nations?=}, FEourseMatetxpress frepreneurit nd extern IDEAS AND THE SEARCH FOR OPPORTUNITY Identifying and shaping opportunity is central to the domain of entrepreneurship. As one researcher slates, ‘at its core entrepreneurship revolves around the questions of why, when and how opportunities for the cation of goods and servies in the Future arise in an economy’? Therefore, both opportunity creation and recogmition are fundamental to value ercaton of individuals and societies. Understanding the opportunity identification process is one of the primary preoccupations of entrepreneurship research." This chapter is devoted to examining how the creative pursuit of innovative ideas revolves around opportunity: paniculaly ideas that may be endowed with positive social and economic potential. Creativity and innovation are two major topes that are keys to understanding and practising opportunity development for entrepreneurs, Innovation in its purest sense refers to newness* but do not assume that just because something 's new that it will automatically create value ot be perceived as inherently postive and good. As we often readin the popular press, sometimes value is perceived after the fact based upon the strengths ofits performance. Our challenge as entreprencurs however is to innovate a new product, service, process, market or business concept that we foresee will creat future value. Emphasis is on foresight. ‘To perceive the value of innovation in advance requites entreprencurial judgement, and it s both art and science, Ths involves a thorough assessment ofthe idea discussed ater in Chapter 9 and to some extent instinct about what and how customers will value the innovative offering, Some researchers even say that entrepreneurs have some kind of extra-sensory perception (ESP) to be able to see what others cannot see over the horizon!” Entrepreneurial opportunites rely on new and innovative ideas, and to bridge the gap between ideas and opportunities or between invention and innovation ~ the characteristics of the entrepreneur discussed in Chapter 2 are often fundamentally important assets, The fust step for any entrepreneur is coming up with an idea that may be the foundation of a {good opportunity. The search for good opportunities starts with the recognition of ideas that have potential. Thus, inthis chapter we frst examine the sources that can be used for this search and the models of opportunity to which ideas can be applied. We then focus on how an entrepreneur can work towards the discovery or creation of high potential, innovative ideas. Ina later chapter we will discuss the shils and techniques required to analyse ideas to confirm opportunity potential. The most important areas to be aware of are often within the grasp of our own knowledge. Let us examine some ofthe key sources of innovative ideas, SOURCES OF INNOVATIVE IDEAS Potential entrepreneurs will need determination, persistence and alertness, in differing measures, to ake advantage of ideas that create the opportunities found in the extemal and internal environments {in which they live, These characteristics will allow an entreprencur to create an opportunity from an Idea that others may ignore for lack of will, give up on for lack of energy or simply do not see or recognise. The Following ate some of the most effective sources of entrepreneurial opportunities ‘© Trends: Trends signal shifts in the current paradigm (or thinking) of the major population Observing trends closely will enable an entrepreneur to position an idea fitting with the trend and recognise a potential opportunity. Trends need to be observed in saciety, technology, economy and government. Following are some examples of such trends: = societal trends: ageing demographics, health and fitness growth, senior living, social media = technology trends: smart phone technology, e-commerce, Internet advances, drones, zminiaturisation= economic trends: higher disposable income, dual wage-earner families, performance pressures, rising fuel costs ~ political trends: increased regulations, terrorism, sovercign db, military alliances, free trade agreements ~ environmental trends: global warming, drought, increased severity of storms, increased frequency of bushfires, pollution - Unexpected occurrences: These are successes or filures that, because they were unanticipated 7 CourseNateExpress or unplanned, often end up proving to bea major innovative surprise othe busines. For S0/9Cnreas see example, Alexander Fleming was surprised to note that a contamination of a bacterial plate narrow gop. culture suppressed the growth of his bacteria. He identified the contamination as pencilin __—Eneprensrswnnare ‘mould, Later, Australian scientist Howard Florey drew on Fleming's observation to create the industrial-scale manufacture of pencilin.” Incongruities: These occur whenever a difference exists between expectations and reality. Innovation is the creation of solutions to incongruities. In the 1980s Ken Kutaragi was watching his daughter playing with a Nintendo Entertainment System which produced poor- quality sound and relied on a magnetic tape drive and wondered why such a good game had such terible sound. Ken knew from his research with Sony that he could develop a beter product for Nintendo. Attentiveness to tis incongruity led Nintendo to contract Sony for its next generation machine that incorporated better sound and floppy disk technology. Although Kutaragi nearly lost his job for contracting to a competitor, eventually this led to the development of Sony's Playstation product range which was a key pillar in Sony's profitability for many years” Process needs: For example, process gaps or bottlenecks, These occur when an answer to & particular need is required. Venture capitalists often refer to these as ‘pain’ that exists in the marketplace. The entrepreneur must recognise an innovation solution, or ‘painkiller. Examples include the creation of new medical devices, health foods, pharmaceuticals, time saving devices and eco-sustainabe green manufacturing Industry and market changes: Continual sift inthe marketplace occur, caused by developments such as consumer attitudes, advancements in technology, industry growth and the like. Industries and markets are always undergoing changes in structure, design or definition. An example is found in the healthcare industry where hospital care has undergone radical change and where home healthcare and preventive medicine have replaced hospitalisation and surgery as primary focus areas. The entreprencur needs to be aware of and seize these emerging opportunities. Demographies: These arise from trend changes in population, education, income changes, age occupations, geographic locations and similar factors. Demographic shifts are important and often provide nev entrepreneurial opportunites. For example, as the average population age in Australia's Gold Coast has increased (due largely to the influx of retirees), land evelopment, recreational and healthcare industries have all profited. Perceptual changes: These changes occur in people's interpretation of facts and concepts. They are intangible yet meaningful, Perception can cause major shifts in ideas to take place, For example the increasingly popular perceived need to be healthy and physically fit has created a demand for both health foods and health facilities. Another example is people's desire to use their personal time better. Asa result, the travel industry has capitalised on consumers’‘TRoursematetupress Caurseate Expres end ‘current need to see the world while they are young and healthy, so time-share holiday destinations and travel clubs have increased ‘© Knowledge-based concepts: These are the basis for the creation or development of something brand nev. Inventions are knowledge-based; they are the product of new thinking, new methods and new knowledge. Such innovations often require the longest time period between initiation and market implementation because of the need for testing and modification, For today’s smart phone technology has advanced to transform the mobile phone into @ example, ‘camera, Internet access resource and music provider. This has revolutionised the way we use different technologies today. These concepts were not thought possible ten or so years ago. Entrepreneurs seem to have a keen seuse of an opportunity and often avoid being caught by misleading information that may derail the focus of others. Professor Gaglio claims that entrepreneurs tend to have a capacity to assess uncertainty in a changing situation and accurately determine what is relevant and what is not. She also says that entrepreneurs look deeply into the real causes of change and will often interpret and infer practical, social and commercial implications with a high degree of accuracy, avoiding alternative possibilities that prove to be ungrounded and fictional," Some examples of innovations that have emerged from the sources of ideas are presented in Table 6. SOURCE EXAMPLES Unexpected occurences Viagra, Apple Computer, Klingon language from Star Tre, Pnieln, Wikileaks Incongratis Overnight package delivery, Playstation, steel mini-mills and roll-on, roll-off container sipping oes needs Sugarfree products cafeine-free coffee, microwave ovens, nicotine patches Industry and market changes Healthcare industry ~ changing to home healthare, online rtallng oF things in manufacturing Dernographie changes Retirement communities, new ethnic communities Perceptual changes The growing concern for Fitness and body image, same sex matiage Knowledge-based concepts ‘Smartphone technology, pharmaceutical indus, obotes and drones FOUR MODELS OF MARKET-BASED OPPORTUNITIES ‘To be entrepreneurial, innovative ideas must find a market, To develop the concept of a mavket-based opportunity for entrepreneurship, frst one must appreciate the concept of a static economy." A static economy is one where there isa balance between supply and demand, as shown in Figure 6.1 ‘There is established and respectful competition in existing markets with each competitor maintaining market share and not competing for more; meaning that there is no growth. The supply chain and the channels to market are established and there are no new entrants to destabilise the market. The activity of business is to coordinate the production and services at the most efficent levels. The economy works in a harmonious way and neither demand nor supply will go up or down. The wealth of the economy remains at plateau. This is a static economy, one that is ripe for entrepreneurial opportunity.OF course, this is also a fictitious state of affairs, but itis a useful way of conceiving the economy ‘to understand entrepreneurial opportunities. The economic function of the entrepreneur is to distur this static, stable and harmonious economy. Entrepreneurial activity involves putting innovative ideas to use in the market and coordinating some form of disruption or repositioning of the marketplace. It is the entrepreneur who undertakes an enterprise that creates the dynamics of an economy. Those ‘who seek (0 maintain static businesses in predictable economies are business managers, THE COMPETITION MODEL OF MARKET OPPORTUNITY Richard Cantillon has been credited as the fust person to observe the contribution of an entreprencur {o an cconomy.”* Cantillon’s entrepreneur identified opportunities where demand ‘was sufficiently high to be able to obtain a high selling price for goods or services while simultaneously being, aware of opportunities to obtain supply of goods and services (or the inputs to the goods and services) at low buying prices. This form of trading opportunity is called arbitrage. Arbitrage is essentially purchasing low and selling high, just as currency traders wish to do. The entrepreneur, in Cantillon’s view, is someone who uses arbitrage (trade off ffleveraige) demand and supply discrepancies to make a profit. Finding market discrepancies ~ whether purely arbitrage in price advantage or other forms of market advantage or differentiation among competitors ~ often provides opportunities in highly competitive and mature markets. The effect of this activity is to introduce dynamics that alter the supply and demand behaviours in existing markets, This drives the supply and demand equation to a new point of equilibrium by cither finding inefficiencies in the supply of the existing goods or exploiting or even exeating shifts in demand patterns (see Figure 6.2). Cantillon’s entrepreneur and arbitrage ~ or demandisupply-driven opportunities ~ ereate growth in an economy by increasing the number of companies and expanding the market. Of course, there are also losses in the market when the new opportunites replace existing companies or drive them9 eae aU Laisa ot of business, This form of entreprencurship is steeped in competitive manoeuvres forthe trading of existing goods and services. Ome ws LUP ns THE INNOVATION MODEL OF MARKET OPPORTUNITY Let's look at opportunity from the point of view of innovation and emerging new markets. This entrepreneur ~ as Joseph Schumpeter described in his work ~ is proactive in the economy as the fim introduces new goods and services that disrupt existing markets and create new ones, This model of opportunity essentially introduces a new supply and demand dynamic into the marketplace and disrupts the equilibrium of the static market system. The entrepreneur in this case creates a demandfor the new good or service and attracts the attention of customers by educating them and enticing a move away from the existing market to create a new platform for economic growth. As shown in Figure 6.3, Schumpeter’s entrepreneur introduces new goods or services into the cconomy that provide growth potential. As distribution of and demand for the new goods or services Increases, it creates new jobs and new businesses. Yes, this may actually cannibalise existing goods and services, causing losses in an economy, but overall output is theorised to increase. This Form of entrepreneurship requires commitment to the creative forces within the economy (research and evelopment, for instance) and the desire for it has fuelled the innovation agenda of governments ‘and companies alike in more recent yea. QW Brena LU Le TaTeU) C eae faith aTHE ALERTNESS MODEL OF MARKET OPPORTUNITY AA third opportunity model stems from the Knowledge School of economics and is credited to Ludwig von Mises and was later championed by Israel Kirener. This form of entrepreneutial ‘opportunity relies on a combination of the previous (wo opportunity models but places a higher ‘emphasis on the knowledge of the entrepreneur. It assumes that opportunities are ‘out there’, already in existence and waiting to be discovered. The entrepreneur is the one who recognises them due to superior levels of knowledge about the market, industry, technology or networks (refer to Figure 6.4) ‘The entreprencur has the advantage of secing things differently and acting upon unique insight ‘grounded in superior knowledge Disruption to the stable economy comes about because new businesses are created that combine new and mature market forms of opportunity. Consequently these mew businesses are seen as valuable since they drive employment. The focus on an entrepreneur's knowledge risks diverting attention away from that which originally defined entrepreneurship through economic impacts and ‘influence on market dynamics. Instead the mere act of creating a business can become the major focus and be the defming act of entrepreneurship. The effects of the business on an economy are easily overlooked in terms of the economic and social contribution in favour of pure employment creation‘The son of small hawkers, vegetable sellers in Singapore, jackie Lee Choon Yau grew up selling baskets of vegetables. I told myself that there has to be a much better way of making money and doing business.’ His company Hardwarezone.com consistently ranks as the number one technology portal in SouthEast Asia. it provides IT news, product releases, hardware pricelists and forums. What started as a hobby for Jackie and five mates on SGD $1000 capital became a new-age media company, leveraging off the mature magazine and catalogue marketplace, with over SGD $200. c00/month in advertising revenue and SGD $2 milion in net assets within a short span of six years. Their success built through having an eye for opportunity with emerging technology and unique Insight into the hobbyist IT market and the strength of their network in the IT community sparked exceptional growth, and defied most ofits competitors and other dotcom ventures in Singapore that fell by the wayside or stagnated after the dotcom crisis during mid-1999. Jackie sold the company to SPH at the end of 2006, then started click TRUE within, SPH as an intrapreneur, a separate business unit that focuses on pay-per-performance advertising. By the end of 2010, he did @ management buyout of clickTRUE, ‘I think my parents have influenced me to help me succeed.’ Sources: Ta, €.€ & Tan, 6. (2008), Harduarezane-A Singaporean success sto Ides Group Publishing, Hershey PA, USA Hirdwarezone om, SPH Magarnes, http://www sphmagazines.com sq/magazines/hardwarezone, ‘Spit of enterprise r Jacke ze Choon Ya, @ 2035 and Clocrue 2 THE SOCIAL NEED MODEL OF MARKET OPPORTUNITY Im recent decades there has been a huge increase in innovations ereated by social ventures. Dedicated non-profits as well as hybrid businesses have all been creative with opportunities in the social innovation sphere. Social innovation is different from ‘economic innovation’. More than inventing, new types of production to make markets more efficient or exploiting new markets to increase market effectiveness, social Innovation seeks to satisfy needs not satisfied and unlikely to be satisfied by the market, In other words, social entrepreneurs use market-based opportunities to address a social problem and by doing so they expand the utility of the market to include a social function over and above a commercial function, Social entrepreneurs recognise and respond to social needs by forming, a market-based solution to address a soctal problem. In this case the entrepreneur recognises an opportunity grounded in competition, innovation andjor alertness which allow market-based economics to be focused on solving a social problem {refer Figure 6.5). In Chapter 4 we introduced three models of social ventures, and so you should appreciate that the social venture is not too dissimilar to the commercial venture except that the customers, suppliers or workforce have a special characteristic typically being a disadvantaged social group, or the venture has a social mission be it an environmental purpose, animal welfare or other worthwhile activity to support In Chapter 8, we will discuss social intrapreneurs, namely social entrepreneurs who work within large organisations. Researchers at Stanford University have defined social innovation as ‘a novel solution to a social problem that is more effective, more efficient, more sustainable, or more just than the existing solutions and for which the value created accrues primarily to society as a whole rather than to private individuals’ Yet they maintain that social innovations are products of the times, of a particular period in history. Today private businesses ate being forced to consider the social impact of their conduct in society. There is now a cross-fertilisation between the non-profit, governmental andprivate sectors that is propelling social innovation. These Stanford researchers list some recent social innovations that have made i to the big time: ‘© Community-centred planning: a process that enlists the knowledge and resources of local residents to help craft solutions appropriate to local needs. Allowing people to create and implement their own plans for the community helps lead to sustainable development. ‘© Emissions trading: a pollution conttol program that uses economic incentives to reduce ‘missions, A cap is set on the total amount ofa certain pollutant that can be emitted, and pers to pollute are issued to all participating businesses, Those with higher emissions can buy credits from businesses that have reduced thelr emissions. Over time the cap is reduced ‘© Fair trade: an organised movement that establishes high trade standards for coffee, cocoa, sugar and other products. By certifying traders who pay producers a living wage and meet other social and environmental standards, the fair-trade movement improves farmers’ lives and promotes environmental sustainability ‘© Habitat conservation: an agreement that creates economic incentives for wildlife conservation ay allowing development in the habitat of an endangered species if the property owner protects endangered species in another location, ‘International labour standards: legally binding standards that protect workers’ rights to freedom, equity, security and human dignity. The standards were developed by the Intemational Labour Organization, governments, employees and workers, and are enforced by ‘member counties ‘Microfinance: fmancial institutions that provide services such as banking, lending and insurance to the poor and disadvantaged who otherwise have no access to these services. By saving money, getting loans and having insurance, the poor can improve their lives and even rise out of poverty, i+ Socially responsible investing: an investment strategy that attempts to maximise both financial and social returns. Investors generally favour businesses and other organisations whose practices support environmental sustainability, human rights and consumer protection, ‘+ Supported employment: programs that help disabled or disadvantaged workers find and retain food jobs. Services include job coaches, transportation, assistive technology, specialised job ‘raining and individually talored supervision, In 2008, Daniel Fiynn, Cofounder and Managing Director of Thankyou Group, was a university, student working with small team of peers on their ‘Syear plans’. They were struck by the injustice of the fact that there were people their own age on the other side of the world facing hortifc daily battles. Thay discovered the world water crisis and the fact that even in these ‘modern times around 00 million people don't have access to safe drinking water. [At the same time, they learned that Australians spend a crazy $600 million annually on bottied water ~ an industry that they thought seemed ludicrous when considering that free water from the tap is part of an Australian way of life, ‘They came up with @ bold idea to join these two extremes together to make a difference. The result - a bottled water company for the sole purpose of funding safe water projects in developing nations. Ie sounded pretty simple. Litle did they know that it would be the hardest thing they/d ever do. But after a lot of hard work and persistence and a few miracles thrown in, Thankyou Water was barn. Today, Thankyou Water has evolved into Thankyou, a movement overseeing three different brands - Thankyou Water, ‘Thankyou Food and Thankyou Body Care. Now, they don't just provide safe water access for those in need, but also access to food and hygiene solutions, ‘The mission hasr’t changed ~ Thankyou exists to empower the everyday Australian to make a cifference through a simple choice within their everyday life. ‘Source: Adapted trom Thanigyou Group, http ww. thankyou.co/movement/ourstory DEVELOPING ENTREPRENEURIAL CAPACITY Once the sources of ideas are recognised, entrepreneurs must use their existing knowledge base, acquired throug work, exp opportunites. General industry knowledge, prior market knowledge, prior customer understanding, specific interest knowledge or any previous knowledge helps entrepreneurs to distil unusual sources of innovative ideas into potential opportunities."* In addition to simply having a particular experience in their knowledge base, entrepreneurs must be able to learn from their experiences as well. Researcher Andrew C. Corbett has identified the importance of acquiring and transforming information, knowledge, and experience through the leaming process. His research lends credence to theories about the cognitive ability of individuals to transform information into recognisable opportunities." How an individual entrepreneur acquires, processes and leams from prior knowledge is critical to the opportunity identification proces. With that in mind, we next examine a four-step process using the most typical structural development for creativity to transform experiences into entrepreneurial insight and know-how. nce and education, to hone ideas into one of the models of market Phase 1: Background or knowledge accumulation Successful creativity in our entrepreneurial context is generally preceded by investigation and information gathering, This usually involves extensive reading, conversations with others working inthe field, attendance at professional meetings and workshops and a general absorption of information relative to the problem or issue under study. Additional investigation in both related and unrelated fields is sometimes involved. This exploration provides the individual with a variety of perspectives fon the problem and it is particularly important to the entrepreneur, who needs a basic understanding of all aspects of the development of a new product, service or business venture. People practise the creative search for background knowledge in several ways. Some of the most helpful are: (1) read in a variety of fields; (2) join professional groups and associations; (3) attend professional mectings and seminars; (4) travel to new places; (5) talk to anyone and everyone about ‘your subject; (6) scan magazines, newspapers and journals for articles related to the subject; (7) develop a subject brary for future reference; (8) carry a small notebook and record useful information; and (9) devote time to pursue natural curiosities." Phase 2: The mind incubation process Creative individuals allow their subconscious to mull over the tremendous amounts of information they gather during the preparation phase. This incubation process often occurs while they are engaged in activities totally unrelated to the subject or problem. It happens even when they are sleeping. This accounts for the advice Frequently given (o a person who is frustrated by what appears to be an unsolvable problem: ‘Why don't you sleep on it?"” Getting away from a problem and letting the subconscious mind work om it allows creativity to spring forth. Some of the most helpful steps to Induce incubation are: (1) engage in routine, ‘mindless’ activities (cutting the grass, painting the hhouse); (2) exercise regulary; (3} play (sports, board games, puzzles); (4) think about the project or problem before falling asleep; (5) meditate or practise sel- hypnosis; and (6) sit back and relax on a regular bass."® Phase 3: The idea experience This phase of the creative process is often the most exciting. It is when the idea or solution is discovered. Sometimes referred to as the eureka factor, this phase is also the one the average person incorrectly perceives as the only component of ercativity.” ‘As with the incubation process, new and innovative ideas often emerge while the person is busy doing something unrelated to the enterprise, venture or investigation (for example, taking a shower, driving on a highway, leafing through a newspapey).”° Sometimes the idea appears as a bolt out of the blue. In most cases, however, the answer comes to you incrementally, Slowly but surely, you begin to formulate the solution, Because itis often difficult to determine when the incubation process ends and the idea experience phase begins, many people are unaware of moving from phase 2to phase 3. Here are some ways to speed up the idea experience: (1) daydream and fantasise about your project; (2) practise your hobbies; (3) work in a leisurely environment (for example, at home instead of the office); (4) put the problem on the back bumer; (5) keep a notebook at your bedside to record late-night or early-morning ideas; and (6) take breaks while working.” Phase 4: Evaluation and implementation This is the most difficult step of a creative endeavour and requites a great deal of courage, self discipline and perseverance, Successful entrepreneurs can identify ideas that are workable and that they have the skills to implement. More important, they do mot give up when they run into temporary obstacles.”” Often they will fail several times before they successfully develop their best ideas. In some cases entrepreneurs will take the idea in an entively different direction or will discover a new ‘and more workable idea while struggling to implement the original ideaAnother important part of this phase is the reworking of ideas to put them Because frequently an idea emerges ftom phase 3 in rough form, it needs to be modified or tested to ‘put it in final shape. Some of the most useful suggestions for carrying out this phase are: (1) increase ‘your energy level with proper exercise, dict and rest; (2) educate yourself in the business planning process and all facets of business; (3} test your ideas with knowledgeable people; (4) take notice of your intuitive hunches and feelings; (5) educate yourself in the selling process; (6) lear about ‘organisational policies and practices; (7) seck advice from others (for example, friends, experis}; and (@) view the problems you encounter while implementing your ideas as challenges to be overcome.” Figure 6.6 illustrates the four phases of a creative thinking process, If you encounter a major problem while moving through the process itis sometimes helpful to go back to a previous phase and tay again. For example, ifn individual is unable to formulate an idea or solution (phase 3}, a return to phase 1 often lelps By immersing themselves in the data, entreprencurs allow the unconscious mind to begin anew the processing of the data, establishing cause/efTect relationships and formulating potential solutions. ENTREPRENEURIAL IMAGINATION AND CREATIVITY To see opportunities, entrepreneurs blend imaginative and creative thinking with a systematic, logical process ability similar to that described above. This combination is a key to successful innovation. In addition, potential entrepreneurs are always looking for unique opportunities to Gil needs or wants They sense economic potential in business problems by continually asking ‘What if .. ?" or ‘Why not .. 7 They develop an ability to see, recognise and create opportunity where others only find problems. It has been safd that the fist rule for developing entrepreneurial visio is to recognise that problems are {o solutions what demand is to supply. Applying this rule means an entrepreneur will analyse a problem from every possible ange: What isthe problem? Whom docs it affect? How does it affect them? What casts are involved? Can it be solved? Would the marketplace pay for a solution? ‘Tis isthe type of analysis that blends creative thinking with systematic analysis." Creativity has become a compelling topic in the popular media. Richard Florida is an academic ‘whose field is regional economic development. He says: ‘Human creativity [is] the key factor in ouraEN ‘TEoursematetnpress fier herd! On economy and society .. we now have an economy powered by human creativity. Creativity .. is now the decisive source of competitive advantage’.”* THE NATURE OF THE CREATIVE PROCESS One's creative potential is something that can be developed and improved.”* Everyone is creative to some degree. However, as isthe case with many abilities and talents (for example, athletic or artistic), some individuals have a greater aptitude for creativity than others. Also, some people have been raised and educated in an environment that encouraged them to develop their ereativty. They have been taught to think and act creatively. For athers the process is more difficult because they have not been positively reinforced and, if they are to be creative, they must lear hovr to formally implement the creative process.” Many people incorrectly believe that only @ genius can be creative.™® Most people also assume some people are born creative and others are not, or only the gifted or highly intelligent person is capable of generating creative ideas and insights. Yet, the real barriers to creative thinking are sometimes the inadvertent ‘Killer phrases’ we use in our communications. People may not intentionally stop a creative idea, but simple negative phases such as, ‘that won't work’ or ‘we've tried that before’ or “get reall’ prohibit people from thinking any farther. Morcover, if you give a task requiring creativity to those ill-equipped with the knowledge or skills, restrict autonomy, constrain resources too tightly, create teams that think too much alike, punish failure rather than value the learning opportunity and generally fail to provide support, creativity will be the casualty every time” Creativity is not some mysterious and rare talent reserved for a select few. It is a distinct way of looking atthe world that is often illogical. The creative process involves seeing relationships among things others have not seen (for example, the use of USB flash drives or memory sticks to store and transfer data between computers)” DEVELOPING YOUR CREATIVITY You can do several things to improve your own creative talents. Becoming aware of some of the habits and mental blocks that stifle creativity is one of the most helpful.” OF course, 2s with most processes, your development will be more effective if you regularly practise exercises designed to increase your creative abilities. The following section will help you to improve your awareness of some of the thought habits that limit your creativity and to assist you in developing a personalised creativity improvement progam Lateral thinking One of the difficulties in using the four-step creative process isthe reliance on bright ideas emerging from phase 2, the mind incubation process. In recent years, creativity researchers have devised specific techniques to ‘forcibiy’ generate novel ideas. Among the best-known is the lateral thinking approach developed by Edward de Bono, Lateral thinking is concemed with the generation of new ideas. Ii also concerned with ‘breaking out of the concept prisons of old ideas’. Lateral thinking is not a substitute for vertical thinking (or thinking in a logical sequential manner}. Both are required ~ they are complementary: lateral thinking is generative, vertical thinking is selective. For instance, during brainstomming meetings, you encourage lateral thinking throughout the fust session to senerate as many creative solutions as possible and vertical thinking during the second session to select the feasible ideas{In traditional vertical thinking (logic or mathematics), you move forward by sequential steps, each of which must be justified. You select out of only what is relevant. You must be right at each stage in onder to achieve a correct solution.” In lateral thinking, you may deliberately seek out inclevant information ~ you use information not for its own sake but for its effec. You may have to be wrong at some stage in order to achieve an innovative and correct solution (sce Table 6.2. PETS VERTICAL THINKING Changes roosts Looks for wht i diferent Looks for what is isht Mates deliberate jumps ‘ne thing must flow diet from another Welcomes chance intrusions Concentrates on relevance Explores the east ily directions Moves in the mos ike rections ‘The entrepreneur needs cross-functional expertise in both types of thinking so that no new idea will be wasted. The wider the net, the greater the catch. True opportunity spotters identify opportunities laterally (through intuition and gut feeling), but they analyse them vertically (Uarough science and commercalisation processes). Thinking outside the box ‘Thinking outside the box is never easy, nor is it merely a rellection of mental brightness. To leave ‘your psychological comfort zone and explore ‘solutions in the unknown world on the outside requires large measures of mental agility, boldness and creativity ~ andjor a leader who makes life in the old box so uncomfortable that getting out is the only option. The future rests in those willing and able to do so!" Praiameran caret Lag FEauevtetapes seen Sey Stirs, Seg cmte eo 9 ates Sl alesHere are some tips for challenging assumptions: ‘understand the problem ~ recognise that you and everyone else have ingrained assumptions about every situation play a child ~ ask plenty of basic ‘why?" and ‘why not?" questions in order to discover and challenge those assumptions play an external observer ~ pretend you are a complete outsider and ask questions stich as "Why do you do it this way at all?" disassemble the problem ~ reduce a situation to its simplest components in order to take it out of your environment reframe ~ consider an issue from many different angles; restate @ problem in different terms {imagine the opposite ~ consider what the experts and professionals advise and then consider doing the opposite.” Recognising relationships Many inventions and innovations are a result of the inventor seeing new and different relationships among objects, processes, materials, technologies and people."* Examples range widely and include: (1) diodegradable packaging materials made out of starch; (2} combining combustion engine technology with the wheel to create the automobile; and (3) using a winged Keel on an Australian‘yacht to break the then longest winning streak in modern sports and wrest the America’s Cup away from the Americans for the fist time in 132 years If you wish to improve your creativity it helps to look for different or unorthodox relationships among the elements and people around you. This activity involves perceiving in a relational mode. You can develop this talent by viewing things and people as existing in a complementary or appositional relationship with other things and people. Simply stated, things and people exist in the world in relation to other things and people, Creative people seem to be intuitively aware of this phenomenon and have developed a talent for recognising, new and different relationships. These relationships often lead to visions that result in new ideas, products and services.” In order to develop the ability to recognise new relationships, you must practise perceiving in a relational mode, Using your brains Ever since split-brain studies were conducted in the 1950s and 1960s, experts on creativity, innovation and self-development have emphasised the importance of developing the skills associated ‘with both hemispheres of the brain.” ‘The right brain hemisphere helps an individual understand analogies, imagine things and synthesise information, The left brain hemisphere helps the person analyse, verbalise and use rational approaches to problem solving, Although the two brain hemispheres (right and left) process information differently and are responsible for different brain activities and skills (see Table 6.3), they are integrated through a group of connecting nerve fibres called the corpus callosum. Because of this connection and the nature of the relationship between the activities of each hemisphere, each hemisphere should be viewed as existing and functioning in a complementary relationship with the other hemisphere.” ‘The creative process involves logical and analytical thinking in the knowledge accumulation, evaluation and implementation stages. In addition, it calls for imagination, intuition, analogy conceptualisation and synthesising in the incubation and idea-creation stages. So to become more creative itis necessary to practise and develop both right- and left-hemispere skills. See Table 6.4 for ways to develop let- and right-hemisphere brain skills. Verca Non-verbal Analytica Synthessing Abstract Seeing analogies Rational Non-rational Logie Spatial Linear Intuitive Imaginative1 Step-by-step ning of your work and life activities 1 Using me 1 analogies to desert things and people in your conversations and writing 2 Reading ancient, medieval and scholastic philosophy, 2 Taking off your watch when you ate not working legal cases and books on logic 2 Establishing timetables for all f your activites 3 Suspending your intl judgement of ideas, new acquaintances, movies, eevsion programs and so on 4 Using and working witha computer program 4 Recording your hunches, etings and intuitions and caleulatng ther accuracy 5 Detailed fantassing and visualising things and situations inthe future 6 Drawing faces, caricatures and landscapes, ARENAS OF CREATIVITY Feoursedatetapress Remember people are inherently creative, Some act on that creativity all of the time while others stifle it, and most of us fall somewhere in between the two, The reality is that people oflen do not Soatdianeetonin' "recognise when or how they are being creative. Furthenmore, they fail to recognise the many Aer Pea opportunities for creativity that aise within tei jobs on a daly basi. coon Creativity researcher Wiliam Miller argues that people often do not recognise when they are being creative, and they frequently overlook opportunities to be creative. He suggests thatthe path to creativity begins by fist recognising all of the ways in which we are or can be creative, People in organisations can channel their creativity into seven different arenas: ‘© Idea creativity: thinking up a new idea or concept, such as an idea for a new product or service or a way to solve a problem, ‘© Material creativity: inventing and building a tangible object such as a product, an advertisement, a report or a photograph, ‘© Organisation creativity: organising people or projects and coming up with a new organisational form or approach to structuring things, Examples could include organising project, starting a new type of venture, putting together or organising a work group, and changing the policies and rules of a group. ‘© Relationship creativity: an innovative approach to achieving collaboration, cooperation and win-win relationships with others. The person who handles a difficult situation well or deals with a particular person in an especially effective manner is being creative in a relationship or ‘one-on-one context. ‘© Event creativity: producing an event such as an awards ceremony, team outing or annual meeting, The creativity here also encompasses décor, ways in which people are involved, sequence of happenings, setting and so forth. + Inner creativity: changing one’s inner self; being open to new approaches to how one does ‘things and thinking about oneself in different ways; achieving a change of heatt or finding & new perspective or way to look at things that isa significant departure from how one has traditionally looked at them.+ Spontaneous creativity: acting in a spontaneous or spur-of-the-moment manner, such as coming up witha witty response in @ meeting, an off-the-culT speech, a quick and simple way or an innovative appeal when trying to close a sale.” to settle a disput CREATING THE RIGHT SETTING FOR CREATIVITY Creativity is most likely to occur when the business context is right, No enterprise will have creative owners and managers for long if the right context within the fumn is not established and murtured, Following are some important characteristics of what factors are important: + a trustful management that does not over-control employees + open channels of communication among all business members + considerable contact and communication with outsiders + a large variety of personality types + awillingness to accept change + an enjoyment in experimenting with new ideas + little fear of negative consequences for making a mistake + the selection and promotion of employees on the basis of merit + the use of techniques that encourage ideas, including suggestion systems and brainstorming + sufficient financial, managerial, human, and time resources for accomplishing goals.” INNOVATION AND THE ENTREPRENEUR Innovation is a key function in the entreprencurial process. As renowned consultant and author, Peter F. Drucker, commented: ‘Innovation is the specific function of entrepreneurship .. It is means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth’. Hindle takes it bit Further when he says that “innovation isthe combination of an inventive process and an entreprencurial process to create new economic value for defined stakeholders!” Innovation is the process by which entrepreneurs convert opportunities (ideas) into marketable solutions. I is the means by which they become catalysts for change.“ We demonstrated in the catlier part ofthis chapter thatthe innovation process starts with @ good idea. The origin ofan idea is important and the role of creative thinking may be vita to that development.** A major difference exists between an idea that arises from mere speculation and one that is the product of extended thinking, research, experience and work, More important, a prospective entrepreneur must have the desire to bring a good idea through the development stages and into the market. Therefore innovation is a combination of the vision to create a good idea and the perseverance and dedication ‘to remain with the concept through implementation. Importantly though, it must be perceived as value adding by the market to which itis destined. In Chapter 9 we discuss Hindle’s model of entreprencurial process which argues that exploitation of an opportunity involves moving from commitment to pursue the opportunity to the actual achievement of value through the new venture’s business model. But for now we remain opportunity and focused on what creates entrepreneurial opportunity and the relationship betwe innovation, ‘TRoursematetapress Contes campos onTEoursematetspress eae about important Error tora ome THE INNOVATION PROCESS Most innovations result fom a conscious, purposeful search for new opportunities. This process begins with the analysis of the sources of new opportunities. Drucker has noted that because innovation is both conceptual and perceptual, would-be innovators must go out and Took, ask and listen, Successful innovators use both the right and left sides of their brains, They look at figures. They look at people. They analytically work out what the innovation has to be to satisfy the opportunity. ‘Then they go out and look at potential product users to study their expectations, values and needs” ‘Most successful innovations are simple and focused. They are directed towards a specific, clear and carefully designed application. In the process they create new customers and new markets. Wircless Intemet is an example. Why should one be tied down to a desk when computing should be ubiquitous? One powerful theory of innovation isthe idea of disruptive technology, coined by Christensen in his 1997 book The Innovator’s Dilemma. A disruptive technology creates a dilemma for any ‘business firmly entrenched in a market as they confront two distinct market choices. The frst choice is to continue with innovation that improves the performance of the products in the portfolio for the customers a firm already serves. The second choice is to tum towards a product category that disruptive technology makes possible for customers the business does not currently serve and which their current customers will have no interest in Te second choice is usually a lower performance or les expensive product or process that serves a seemingly less profitable market segment. If this second choice is ignored the disruptive technology is likely to be introduced into the market by some smaller or even start-up enterprise. As the new entrant gains a foothold in the low end, less demanding part of an existing market it provides opportunity for tue newer firm to successively move upmarket through performance improvements until finally it displaces the market incumbents. However, technology is not the only source of this disruptive innovative behaviour. Opportunities for disruptive innovation also exist by adapting changes to a business model, reducing process costs (¢ cheaper labour) or finding any other means of entering a lower cost product or service that extends a market to a set of customers who will be satisfied with a lower performance standard (see Table 6.5). The key idea behind disruptive DISRUPTIVE INNOVATION DISPLACED OR PRESSURED PRODUCT CATEGORY Personal computers Mainframe computers Smart mobile technologies ts No-fils tines Full-seniceaiines a cameras Photographic fm Mass-market mobile telephony, EFTPOS and e-commerce Cash registers Boutique steel mini-mil Vertically integrated steel mils ipeda Encyclopaedia Brita Tabet computers Typewriters, Biogsing Photatypeseting and manual paste-up Mobile or celular telephones Foxe line telephones, Container ships and containrsation Cargo shins and whart labourersInnovation is that established firms are predisposed to overlooking market opportunities that have lesser needs despite the faet that the under- or unserved market segment may have greater potential in terms of market expansion, TYPES OF INNOVATION 5 Four basic types of innovation exist (sce Table 6.6). These extend from the totally new to 7 CourseMateExpress snodifcations of existing prodcts or services. Tn order of originality the for types are Sze asCan invention = the eration ofa new product, service or process, often one that is novel or renner tay are untried; such concepts tend to be revolutionary on Courses xpress + extension ~ the expansion ofa product, service or process already in existence such concepts make a diferem application of curren idea + duplication - the replication ofan already existing product, service or proces; the aplication effort, however, i not simpy copying but adding the entrepreneur’ own creative touch to enhance or improve the concept to beat the competition + synthesis - the combination of existing concepts and factor into new formulation; this involves taking ideas or tems already invented and finding a way so together they form & new application,” THE MAJOR MISCONCEPTIONS OF INNOVATION ‘The entire concept of innovation conjures up many thoughts and misconceptions; it seems that everyone fas an opinion as to what innovation entails. In this section, we outline some of the commonly accepted innovation misconceptions and provide reasons why these are misconceptions and not facts." Innovation is planned and predictable. This statement is based on the od concept that Innovation should be lef to the research and development (RED) department under a planned format. In truth, innovation is unpredictable and may be introduced by anyone. Technical specifications must be thoroughly prepared. This statement comes from the engineering arena, which drafts complete plans before moving on. Thorough preparation is good, but it sometimes takes too long, Quite often, it is more important to use a trytest/revise approach. + Innovation relies on dreams and blue-sky ideas. As we have demonstrated in this chapter, the creative process is extremely important to recognising innovative ideas, However, accomplished innovators are very practical people and create from opportunities grounded in reality not daydreams, + Big projects will develop better innovations than smaller anes. This statement has been proven false time and again. Larger companies are now encouraging their people to work in smaller ‘groups where it often is easier to generate creative ideas. ‘Technology isthe driving force of innovation success, Technology is certainly one source for innovation, but itis not the only one. As we outlined earlier in this chapter, numerous sources exist for innovative ideas; technology is certainly a driving factor in many innovations, but it is not the only success Factor. Moreover, the customer or market isthe driving Force behind any innovation, Market-driven or customer-based innovations have the highest probability of3, ‘FEourseMatetxpress Playing azz On ‘optimal experience ‘TEourseMatetapress modebo he ares teen nist Invention Totally new produc, service or process Extension New use o diferent application of Menyn Victor (AUS) - lawnmower an already exiting product service Sir Edmund Hillary (NZ = farm tractors for ice exploration or process Robert Dane (AUS) ~ solar pane! yacht si Ray Kroc (US) ~ MeDonae's Bil Gallagher (NZ) ~ electri fence Mark Zuckerberg (Us) Facebook Duplication Creative replication ofan existing Bill Mamiton (NZ) - Hammiton Jet Boat concept Dean Kamen (US) - Segway Human Transporter Pizza Mut ~ pizza parlour John Briten (NZ) = motoreyce Syntresis Combination of existing concepts Howard Schult (US) ~ Starbucks snd factors into a new formulation John Neusvoski (NZ) portable fur plucker for possums ruse Ben Leen (AUS) - America’s Cup-winning winged kel design Nan Gi NZ) ~ Aguada (car on water) t (NZ ~ Blokart wind sling on land) PRINCIPLES OF INNOVATION ‘+ Innovation principles really do exist. These principles can be learned and, when combined ith opportunity, can enable individuals to innovate. The major motivation principles follow. ‘© Beaction oriented: Innovators always must be active and searching for new ideas, ‘opportunities or sources of innovation, ‘© Make the product, process or service simple and understandable: People mu understand how the innovation works. sadly ‘© Make the product, process or service customer-based: Innovators always must keep the ‘customer in mind, The more an innovator has the end-user in mind, the greater the chance the concept will be accepted and used, ‘+ Start small: Innovators should not attempt a project or development on a grandiose scale They should begin small and then build and develop, allowing for planned growth and proper ‘expansion in the right manner and atthe right time. ‘+ Aim high: Innovators should aim high for success by seeking a niche in the marketplace. + Thy/test/revise: Innovators always should follow the rule of ty, test and revise. This helps | ‘work out any flaws in the product, process or service ‘Learn from failures: Innovation does not guarantee success. More important, failures often give tise to innovations.” + Follow a milestone schedule: Every innovator should follow a schedule that indicates milestone accomplishments. Although the project may run ahead or behind schedule, i is still important to have the schedule in order to plan and evaluate the project, © Reward heroic activity: This principle applies more to those involved in seeking and ‘motivating others to innovate. Innovative activity should be rewarded and given the properamount of respect. This also means tolerating and, to a limited degree, accepting failures as a ‘means of accomplishing innovation, Innovative work must be seen as heroic activity that will reveal new horizons for the enterprise + Work, work, work: Ths is a simple but accurate exhortation with which to conclude the innovation principles. Ie takes work ~ not genus or mystery ~ to innovate successfully.”” INNOVATION IN THE ERA OF CLIMATE CHANGE Could it possibly be that climate change isthe fist examaple of ineversible large-scale envizonmental change caused by humankind? Enterprising people have created solutions to much else. We cat protect against chemical and muclear accidents, the spread of disease, depletion of resources, and disasters and pandemics. Today even species extinction seems correctable through emerging gene ‘technology. Climate scientists are sceptical; they are increasingly convinced that runaway climate change might defy this history of positive innovation. Governments often place most of their attention and funding into basic research and technology evelopment with the hope of seeing new revolutionary industries emerge. Yet amazingly, we still haven't seen the commercial introduction of hydrogen fuel cells 160 years after they were Invented As Friedman says: that is why we need to be constantly trying to invent new forms of abundant, clean, rlible and cheap electrons and constantly trying to make the technologies that already exist today for producing clean electrons ~ solar photovoltaic, wind, solar thermal, and geothermal ~ more abundant, reliable, and cheap.” ‘There are already a myriad of wind and solar technologies that are cost-effective, Ultimately, the green revolution is going to be carried by engincers and entrepreneurs who can break down the barriers to the market and commercialise existing technologies. Notably, it may not be the entreprencur himself or herself Who invents the innovation, but i s the entrepreneur who does the hard yards, who puts in the 99 per cent perspiration (o take that inspiration to the market. For clean technology, we don’t need a massive project like the Manhattan Project that produced the first atomic bomb; we need a market for clean energy. We need innovators to team up with entrepreneurs to produce and market all sorts of breakthroughs by creating and responding to demand, Only entreprencurs can take this much innovation to the markelplace. Only entrepreneurs can generate and allocate enough capital fast enough to commercialise them, ‘Table 6.7 indicates which innovations contributed to global warming and which could possibly promote sustainability. Electrification; automobile; aeroplane; water supply Genetic engineering; artificial tres; species preservation and dstributon;agieatural mecharsation; air geo-engineering; carbon sequestration; fee non-fesilful eonditioning and refgeraton; highways; household power sjtems; gene sequencing: hydragen-powered cars appliances; petroleum and petrochemical Imethare-fucied rockels;smog-eting cement; waste ‘echnoiogies:ruclearteehnaogies agement; weather pre=, ‘FEourseMatetxpress Crato-to-rade inthe Express ed ebout epi Innovation in the era of climate change presents dilemmas, How can entrepreneurs continue to encourage consumption while simultaneously discouraging and warming about its perils? Milker tives some guidelines which are outlined below. + A manufacturer developing a new product should consider whether their product will offset a consumer's general consumption needs and potentially decrease the consumer's environmental impact. Examples could be shoes made from recycled materials, products with a lifetime ‘warranty, oF a product which is made of completely biodegradable matcrals. Digital examples could be creating digital goods (MP3s or audio books), services which replace traditional paper (craigslist versus yellow pages) and services promoting reuse and sale of used goods. ‘© In its product planning a business should include methods of manufacturing and distributi which ensure a minimal environmental impset, This can be accomplished by using direct-to- consumer shipping whenever possible, by creating products for 2 local market which utilise Jocal resources and by sourcing manufacturing materials locally. ‘© Businesses should consider creating products with significantly longer life spans. While this is {impractical for many products, iis also a great design challenge for entrepreneurs. By creating products which can be upgraded, retro-fitted or are simply indestructible, we can communicate to consumers the inherent environmental and cost benefits of purchasing product which will last a generation, ‘© Entrepreneurs should find ways to package products which are sustainable by utilising recycled and biodegradable materials for packaging while minimising packaging, as much as possible. ‘+ Entrepreneurs should adopt marketing and promotional standards which are less impactful to the environment by using digital and word-of-mouth promotion. Build your brand by promoting your sustainable practices and you can stand apart, Create incentives for ‘consumers to purchase your products which go beyond price and features, but provide value through longevity and reusability.** CRADLE-TO-CRADLE DESIGN ‘The challenge for entrepreneurs of this century is how to create and sell products and services that comply with economic, social and ecological sustainability. Although it may be new to entrepreneurs, sustainable design and innovation is already very present within architecture, landscape architecture, urban design, urban planning, engineering, graphic design, industrial design, interior design and fashion design. Cradle-to-cradle design is a philosophy of innovation based upon the cyclical flows of the Earth. In the natural world, one organism's waste becomes the next organism's nourishment. In the same way, cradle-to-cradle products virtually eliminate waste and provide the ‘nutrients’ for both nature and for the next products of industry, Every action ~ be it commercial lifestyle, educational or governmental ~ ought to have a net positive effect on the environment. Cradle-to-cradle was first developed by Michael Braungart and William MeDonough.”* They conceived products, such as biodegradable fabrics, that would be used and then be retumed to nature and become food for the next product forming a closed loop. McDonough challenges us in the epigraph at the beginning of this chapter to “imagine a world in which everything is so intelligently designed that human activity generates a delightful, restorative ecological footprint’ (see also Chapter 3). Compostable diapers anyone? Recyclable shirts that iron themselves? How about sustainable fashion? Paper beer bottles? Sorry, they have already been invented,Beets Sl alesSUMMARY @ This chapter examined the importance of creativity and innovation to the entrepreneur, Opportunity identication was discussed in relation to ideas and the knowledge and learning needed, The sources of innovative ideas were outlined and ‘examined, 2s were four models of entrepreneurial opportunity including the social model of innovation and opportunity. The cveativity process was then deserived and ways of developing creativity were outlined, The nature of the creative climate was also presented “The process of innovation was discussed with particular reference to its disuptive nature on existing businesses and markets The four basic types of innovation ~ invention, extension, duplication and synthesis ~ were explained, The chapter reviewed the misconceptions commonly associated with innovation, presented the major innovation principles and discussed ‘nanclal support for innovation. ‘We finished the chapter by discussing the dilemmas facing entrepreneurs inthe era of elimate change and the challenges to encouraging the right kind of consumption. Sustainability innovation was discussed and an interesting case study of a social and sustainable entrepreneurship venture was included. Exercises and suggestions are provided in the folowing sections to help the reader increase the development of their creativity 3, ‘FCoursentate KEY TERMS AND CONCEPTS 9 Review ky terms ty appositional relationship eureka factor opportunity arbitrage extension ‘opportunity identification cradle-to-cradie incongruities pain creative process innovation right brain creativity invention social innovation duplication knowledge school of economics sustainable design entrepreneurial opportunity left brain synthesis REVIEW AND DISCUSSION QUESTIONS 9 \Why are ideas not necessarily an entreprencuial opportunity? What is necessary to bridge the gap? How are prior knowledge and learning important tothe recogition of opportunities? \What are four major models of entrepreneurial opportunity? Expain and give an example of each, \What are four major components in the creative process? \What are the four steps involved in developing personal creativity? Desrive atleast five key elements that contribute toa creative climate. What is meant by the term innovation in simple terms and what important attributes does an innovation need in order to be an entrepreneurial opportunity? \What ae the four major types of innovation? Briefly deserve each ofthe five major misconceptions commonly assotated with innovation Identity and describe five ofthe innovation principles. \What dilemma faces entrepreneurs in the era of climate change? What are some examples of tis? \What isthe philosophy of cradle-to-cadle design and what ae some examples of companies using this approach in your country?EXPERIENCING ENTREPRENEURSHIP 9 Here's an exercise (inspired by htpwaww.ducttapefeshion.com and the Duct Tape Page (hto:}www-thorselLnet{duet htm) wire you can apply some ofthe things we have been learning about creativity and innovation. Duct tape is a strong, fabri-based, multipurpose adhesive tape that can be used for just about anythin. It has been said that duct tape holds the world together. Mere are the top 10 things you can do with it. Your task st think of as many other uses a5 you can, patch pipes under the house cover the annoying ‘check engine light that won't go out use asa band-aid ‘ape all the holes in the computer ease shut so the Fan noise isn't so annaying tape an annoying person's mouth shut repair eyeglass frames patch a broken cigarette hhandcuf the kids as an emergency baby siter be sue the toilet seat never stays up (duct tape it down) get dried eat puke out of carpeting EXPERIENCING ENTREPRENEURSHIP 9 ‘Analyse and elaborate on how the folowing pars relate to each other in a complementary way: nut and bolt, usband and wife, chocolate cake and vanilla ice cream, grass clippings and tomato plants, athlete and coach, humanity and water, winning and losing, television and overhead projectors, and managers and production workers. EXPERIENCING ENTREPRENEURSHIP 9 ‘is exer is esged to blp ou devap your peel eat. To eka yur eet, ‘yu should make improvements inthe following areas: ‘FCoursematet enone derdopnentse-dacpng eanaenssel-confdencimprovenentin energy Neetenete (ere prover sain kis ble again ‘mental fluency ~ quantity of thoughts/ideas, ete. rental fest stein gearteproacer ee ongalty uma ahs ewe Wb Sart anal and wok ons few ings tne. Flow the tepbystep approach ied nest. Ue te acconpaming nose lp ou design pesonal eat psa, Choose one of the five areas for improvement listed (e.g, mental fluency), Encoluns pete forse eg once ory geet and inte salons to ‘problems at work), Decide how much time you will give to this program (e.g. three hours per week). Dee hw gyal we nhs res eon month, be montDecide what actions you wll ake and what exercises you will perform to improve inthis area (e.g. sentence-creation exercises, usage ideas, meditation, suspension of itil judgements). Set up an eutline of your pragram (ie. day of week, time of day, place and what you will do during this time). Review your program after completion and write a similar program for another one of the five areas for improvement PERSONAL CREATIVITY PROGRAM WORKSHEET ‘ea of Improvement Specific objective Number of hours er week Duration of aogram Actionsexerises Cutine of program Day of the week Time of éay Pace Actions that day EXPERIENCING ENTREPRENEURSHIP ‘A useful method for thinking about emerging opportuities isto se a futures thinking approach. You can do this by youself or bring a small group of colleagues or friends together. In this approach you target an area of interest which then becomes yur focus area and then you develop alternative scenarios around the prefered and probable futures. Some examples of focus areas are: water holiday travel ‘education energy food games. Your focus should target an area in which you have an interest in starting a business Use the Focus area to concentrate ‘your mind. A useful technique isto use the political, environmental, social and technology (PEST) imensions as a bass for ‘thinking about the probable and prefered futures. You may want to refine the focus area and write down the specificattributes about it. For instance, in the area of water you may wish to concentrate on residential dinking water or farm irigation water. ‘Once you are clear about your focus area you can start to work through the preferred and probable futures exercise. In this exercise you first gather information about what the probable future is for this focus based upon facts and evidence ‘What are the Lends, what major challenges are being faced, who are the major contibutors tothe sector and what are they doing to influence its future direction? Concentrate on facts to project what the ltely and probable future is for the focus area. After gathering and collecting the facts write a short paragraph that describes a probable future scenario Next switch your mode of thinking and instead of refecing on the Thely future stat to imagine or dream what future you would prefer to create for the focus area. What are your hopes an ideals for ths focus? Paint the future as you would Tike to see it rather than what you rojectit might be based on the evidence and current trajectory From this hopeful perspective construct a scenario that describes the prefered future. Now by contrasting these scenarios imagine and identify the opportunities that exist for you to intervene between these futures and create proguets andor services that wil alter the course of the probable and lead you closer tothe preferred, List them and write a short description of each, ‘Congratulations! You have taken a big fst step towards recognising an innovative ies, case stupies 9 CASE 6.1 Interface Lida carpet company, has emerged as pethaps the most cited example of a sustainable company in the word. It has replaced petrochemical fibres with corn-based biomass that is certified climate-neutal and the carpe tiles can be returned to Interface forthe next customer (see also Case 3.1) I wasn't always the case. In the mid-1990s, their factories and suppliers consumed around 1.2 billion pounds of ‘material. The company’s technology [was] plundering the earth. Rob Coombs, Asia-Pacific President of Interface, summarises what has driven the company in our regio: The business word is slowly coming tothe realisation that it needs to develop practices sympathetic with the natural environment in which it operates, The slumbering giant Is beginning to understand that there are also a range of ‘stakcholders affected by business practices and that there a social contract that needs to be rethought and redeveloped ‘This awakening brings with it many pressures; the need to rethink age-old values and approaches to problems, the need to find Solutions to previously unapproached technical barriers, and the need to create a new set of decision-making criteria. For Interface, inthe Asia-Pacific region, the evolution of sustainable business practice has ereated anther challenge: How to play an important part in the process of becoming a sustainable business within a large organisation atthe leading edge of the debate? How to support the position for which the company is known glabslly ard how to live up to the sition ona local bass? ‘With a vision to become sustainable and then restorative through the power ofits influence by 2020, Interface has already established a clear measure of business succes. Its moving towards this goal through the adoption of a strategy fn seven fronts: climinating waste, using only renewable energy sources, crating onty benign emissions, closing the product loop, energy efficient transport, energising people and changing the nature of commerce ise. Asia-Pacific represents 5 per cent global Interface revenues and although the region is seen as 2 growth engine for the busines, the rlatively smal scale of the division creates aseres of challenges around the move to sustainability, How thas Asia-Pacific embraced the philosophy and what has it done to support it? What are the challenges faced by a small division ofa leading force in sustainable business development? For example, Japan has embraced, by necessity, the concept of reeycing as a noble activity and itis promoted by government and within the business community. Therefore, Interface is engaged in a wide range of activity in Japan round this issue, while discussion around renewable energy receives much les attention. The two counties across the region that appear most engaged are Japan and Australia. In most other countries, ‘sustainability remains a very low priority and Interface operates with less extemal stimulus. The stimulus from customersfor more sustainable solutions is the greatest diver we have, With this less evident, Interface operates in a vacuum. In both our Australian and Thafland manufacturing faites, Interface has reduced dramatically all forms of process and material ‘waste. In Australia, for example, waste per unit of production has reduced by 90 per cent since 1996, an achievement that has both funded other sustainability profects and helped to deliver greatly improved business performance. The waste effort has been driven in both facilities by people working in teams at operator level with strong supervisor leadership tis ‘very much a grassroots program to reduce the company’s environmental footprint. Equally, regional success in reducing harmful emissions has been encouraging. Since 1999 our annual greenhouse gas emissions have reduced from approximately 1650 metric tons of CO, to 1450 metric tons, while at the same time we have inereased our production throughput by 35 per cent. The source of these emissions is electricity production 63 per cent (indirect contribution) and the burning of natural gas 37 per cent (dnect production). We have reduced and rationalised the use of solvents at our production faites and even gone to the extent of identifying new cleaners with less solvent emissions for our Carpet ‘Spot Cleaning Kits, admittedly a small component, but significant in the message we are tying to put out into the ‘marketplace In the short term we are evaluating the sale and use of ‘climate neutral’ products and services. Source: Cpright © 200 from The nara advange of rts Busines oppor ivan an gverace in he 25 cen by Kanson Hrrves rd Wha! Heson Sith Copyright © 204 Taylor 8 Panes Hooks Reed by pemsion of alt & arcs Books UK (QUESTIONS 1 How docs interface demonstrate that competitive advantage and sustainability are not mutually exclusive? 2 What system of complementary activities contribute to Interface’s competitiveness? 3 Which other Asia-Pacific countries would be the next candidates fr Interfaces sales team? CASE 6.2 Creativity is nat just for start-up ideas Serial Entrepreneur, author and Sounder of the Entreprenassance Movement, Creel Price, recounts 2 time when creativity was needed to fake it to make it. ‘Within months of opening our marketing business, yet without a client, we secured the opportunity o pitch to one of the major Australian banks. After a well-received presentation in their offic, they indicated we could have their business but fist they wanted to check out our operation. We had 18 hours to miraculously convert our exhausted, dishevelled office into something that could even remotely back up our loose-lipped assertion of ‘state of the art’ We needed a makeover. ..fast! [A plan that has since been dubbed ‘Operation Hollywood Set” was swung into action. We couldn't pass up the opportunity for our two-bit company to achieve a major bank as a client, so we decided to rll the dice and spend every last remaining dollar to hire all the furniture and technology we needed to look huge. We'd either get rich, or go broke. Delegating the tasks, we sent someone to buy second-hand computer manors forall the desks, This way we'd a least Took like we had 2 technology-enabled business, albeit we hoped they wouldn't notice there were no hard drives attached ‘Someone else started hiring enough temporary staf ta create the buzzing atmosphere ofa thriving business. Next, we had to-make the place look less drab and dingy. Someone was assigned to hire plants and paintings to take the bank team's ‘eyes away from the holes in the carpet and the tangle of cables dangling down everywhere. Our masterstroke was commandeering the vacant office next door and tuming it into ‘our boardroom’. A huge, shiny new mahogany-coloured {able and plush black leather chairs were ordered for the day and my grandfathers atlered old dining table was relegated to the scap heap. ‘The next day, our adrenalin levels were off the chars, You could smell the electric excitement inthe alt. Van after van aller van arrived to deliver our props and we felt Ike the directors ofa Blockbuster movie about Lo start filming. With our set ready and our extras in place, all we needed now were the stars ~ our prospective client team. Welcoming them into our ‘cll centre’, the illusion looked perfect. And with the confidence it gave us, we secured the deal It took us a few years to fess up to our client that we had conducted “Operation Hollywood Set’ in their honour. He responded without surprise: "I figured as much because the next time | tured up to your ofice the cool furniture had disappeared!”Yet, putting our best foot forward had worked for both of us. We helped our client build a significant cient segment cover a decade and they morphed into twenty-milion-dallar-a-year client for us. ‘In busines, it’s times lke these - when you back yourself and gamble eveything on ane rll of the die - that become {your fondest memaries Yes, we used a hel of a lat of front to win a client, but we had complete confidence in our ability to deliver 2 fantastic job providing they didn't judge us merely on our Tooks. "Now with more grey air than youthful enthusiasm, 1 think the key to “foking it until you make it! is much more than staying within the fines f the law. There is a moral cade in business that must be obeyed so that you can build a brand and culture that has lasting integrity. For me, the key is to satisfy the self-mieror test. If you are confronted with an opportunity to express some overzealous front, Fst look yoursef in the mimror and only proceed if you can be sure that {yu wil have respect Fr the person who Taoks back at you nov, as wel a in te future, QUESTIONS 11 What model of opportunity was this venture following and what was creative and innovative about their actions? 2 What would define the ereatity inthis cae as lateral thinking? 3 What arenas of eeatvity are exhibited in this case? 4s this case creative or just plain deceptive? Justity your answer and discuss any ethical dilemma, Seve: Cel Pc [014 Fake ‘you ake How fron i Coprght 2014 hy rel Pe. Ud by perio, ONLINE STUDY RESOURCES O FCourseMateExpress Vist httplogin-cengagebrain.com and use the access code that comes with this book for 12 months acess tothe student resources for this text. The CourseMate Express website contains a range of resources and study tools for this chapter, including ‘Interactive chapter quizzes and media quiezes Experiencing entrepreneurship self-tests and activities + Online video activities, weblnis and more! SEARCH ME! ACTIVITIES 9 SS creative teams future thinking entrepreneurial opportunity 1 Locate the article ‘Outlook 2015: Top trends and forecasts forthe decade ahead’ in The Futuris, 48(6) (Noverber— December 2014). After reading it, assemble @ group and utilising some of the creativity techniques discussed inthis chapter formulate a st of opportunities that may emerge from a chosen trend ot forecast Find and read the brief article tite "Living laboratory to show us the future’ by James Bow inthe Alternatives Journal, 30(5) (November-December 2004), 18, Conduct research on an activity in your local region that offers an opportunity for you to get involved in similar discussions and dialogue. How would you go about starting your own forum to promote Detter futures for your community? Locate the article by David Magellan Horth and Charles J Palus ‘Using visuals to buld teams, TD (October 2003), 58, hich describes a unique technique to get a team to thine and work ceatvely together. How can you apply this ‘technique to develop creative and collaborative teamork while building your own venture orin what ways an YoU adapt th’ approach to assist you in bullding creative teams?enootes Y 1 Drucker PF. (1989, emovaron and ‘enreprencurskip. Landon: Pan Books i {in asocaton wih Wiliam Heinemann Uh 33, 2 Copyright © 2004 from Te natural vantage of nations: Businss opportunites, imoation and yoverance in the 2st century’ by Karson Hargoves fh Mics! Harmon Smith Copyaght © 2004 Taylor Francis Book, Reprced by permission of Taylor & Francs Books Uk. 5 Venkataraman, 8. (1997) Tae ‘istinctve domain of entrepreneurship research In. A. Katz (ed), Advances in ‘nreprencrsi, frm emergence, and ‘qroath, 3, Grenvich, TIA Pres, Ta-38 4 Galo, CM & Katz, 1A. (2001). The psychologel basis of opportunity entiation: Entrepreneurial aerines. Lournal of Small Busines Economics, 16, 11-95; see alo Shepherd, D. AP Detienne, 0. 2005) Prior knowledge, potential fmancial reward, and tpportunity entiation. Eniveprenurship Theory and Practice, 29), January, 91-112. 5 Johannessen, JoA, Olsen, B Lumpkin, G. 1. (2001. Imovation as newness Whats ne, how new, and new to whom? European Journal of tonevation ‘Mangement (1), 20-31. 6 Schumpeter, J. (1961). The theory of conan development. Cambridge, MA’ Harvard University Press 1934) 1 LaPira, 8 Gili, M. (2006) Non- local intltion: Developing electo- ‘physiological measures for dcision- toaking serial eneeprenurs. In Repioal romero entrepreneurship research 2006 (Murray Glin, ed). Melbourne ‘Australian Graduate Sool of Entrepreneurship, 619-35, tps researchbank swinbumeeduauviall sccessjmanagerReposior/swin: 16810; ‘Tomasino,D. (2007) The psyehophysllogial bass of reatvity fd intuion: Accessing the zone’ of ‘entrepreneurship nterttional urna of Entrepreneurship and Smal Busines, 45), 528-02 8 Two excellent biographies of Howard Prey of Adelaide ae G. Macfarlane, Howard Fore (Oxtor, 1979);T.L ‘iliams, Howard Florey (Oxford, 1988) 9 In jeanyveshuwat, "the Sony PlayStation: An inoprenership sory Intaprencuship Conference ‘Avaliable at ep worm intrapreneursipconterencecom) ‘esony-playststion-ane Intrapreneatsip-sory: The Offa Playstation Museum (2015). Playstation history overview. Availabe at hp] playstaionmuseam com/histoy. 10 Galo, CM. (2008). The role of mental silations and counteract ‘inking inthe opportunity recognition process. Enreprenurship Theory and Practice, Winter, 533-52. 11 Refer Schumpeter (1961) 1934) 12 Heber, RF Link, AN, (2008). istor of ennepreneusip. New York: Routed. 13 Phil J. A. Jr, Deignee,K & Miler, 1.1, (2008). Rediscovering socal Innovation. Stanford Socal Innovation Review U4, 35; se also Goldsmith 8 Georges, i Burke, TG (2010). The ‘power of social innovation: How civ entrepreneurs ignite community networks or goad. Hoboken, Nl: Jossey-Bass ‘Borstin, D. favs, S. 2010). Social centreprenership: What everyone needs fo Inout New York, NY: Oxford Univesity Press; Yunus, M (2010) Building social business: The new kind of capitalism tha serves humanty’s most pressing need. ‘New York, NY: Publica 14. Ardchul Cardozo, 5. Ray. A theory of entreprenewil opportunity ‘enlification nd development Journal of Business Venturing, 123) (2003), 105-22, AndranikTumasjan# Reiner Braun, the eye ofthe beoder: How regulatory focus and self-eficaey interact ‘influencing opportunity recoguition, “Journal of Business Venturing, 276) (2012, 622-36; and Dean A Shepherd Michel Haynie Jeffery S. Mellen, Confrmatay search asa weil heuristic? “esting the veracity of entrepreneurial conjectures Journal of Business Venturing, 276) 2012), 637-5 15 Andrew €. Corbet. Experientia Tearing within the process of opporcunity ‘eatifitation and exploitation Eniepreneurship Theory ond Practice, 20(4 (2005, 473-91; and Andrew C Corbet earning asymmetries and the Ascovery of entrepreneurial ‘opportunites. Jourel of Business ‘Venturing, 23) (2007), 97-118. 16 Fora discussion of the development ofreatiity, se Raudsepp, F098) ow creative are you? New York: Pesigee Books; Van Gundy, A.B. (1983) 108 1193s fo gta Bright dea and increase ‘your creative potential Englewood CLs, Nb Prentic-tall and Firestien, RL. (0900, Why aie kik of thas? Baal, NY: Uae cation Serves tne 17 Nosanchk TA. Ogrodni1.A. ean (988) A pelininay invetgan of cubation in shor ty ving ural f Creative Bevin, 22H 279-0 is study reported hat an Cient-ay ication period was ‘sociated with gia evated Story-writng cratvi. 1 Harman, W. We Ring, (ine Higher crear: ikeating the tevconcius for breath ash. 1s Anges Tare: Goleman, Dy rufan, 8 Ray AM (1999) The treat sprit New Yo: Png Books 19 ee Cont, (985) Devoping, snore power eas, Spero Management, March, 2-9; Sake D. {19901 Uncommon genius: How grat des are form New Yor Viking Pres Keng Siu. 1990, Group creat and {ecnoogy Joural of Creative Behavior 290) pp. 201-16 20 Punk (995) was showering ihe ltmare Business Journal {ai Mare 1-14 21 For more on ide development, sce shor, Af. (1969), Apel imagination {Gr edo New Yo Serine Gordon, WEL (196 Symes New York: Heper ‘ow, Pllc (1995) A personal le stimulating Hes, ilove facts ‘daly problem savers Superson, Ape 24: Adam (2001). Concept Ubetbutng gle beter cas Peeus Pushing de Bon, E1970 ater inking’ Cet sep by se. New Yor: Pre 22 Rosenman, MF. (198) Serendipity susie discovery. Jornal Greate ekarion 222,132 2 For more on implement, ce Kel, {EMC (tS) The ceive mystique: How lo manage mature ad mae pa. New Yor: Wiley Brandowst JF (1380), Carport imagination plas: Five Steps to ranting ovate sae {nto action New York Th Free Pes. 24 Fel. W3(988)- The denying reo berween reat naval an trteeprencushi.Jeurmal of Crease Tekan 220), 196-202; War, 3 (2008 Cogan, rei an noeprencutp. Journal of Business Venturing, 12) Math, 173-88; Mica Ciel Michael Frese Joba M. Gra Anna Kampschte Creativ inthe opportunity entiation process and ‘the moderating effect of diversity of Information, lournal of Businese Venturing, 278) 2012) 889-76 25 Mori, R, (200) The rise ofthe ‘eatve class: And how i's transforming ‘ork, fesure, community and everyday je: New York: Basle Books, 5. 26 See de Bono. (1982), Serious ‘reat: Using the poner of creativity to freate new ideas, New York: Harper Busines; Seo. Lert, LE Murnfor, M.D, (2008. The effectiveness of creativity ining: A quantitative review. Creativity Research Journal, 16), 27 Mellow, . (1996) The two conditions view of eeativity. Journal of Creative ‘Behavior, 3(2, 126-43; Ant Somech & ‘Anat Drach-Zahavy. (2011) Overcoming resistance to change and enbancing Creative performance Journal of ‘Management 2B Fysench HJ (1995). Genius: The nature of creativity. New York Cambridge University Press Taylor. B. (1995) nto ‘he open Reflections on genus and ‘modernity. New York: New York Univesity Press 29 Amabile, T. 1998), How toil ‘ratvity Harvard Busines Review, 76, Septembes/October, 77-37 530) See Dauten, D (1986). Taking ‘chances Lessons in puting passion and treaty in your work ie New Yor ‘New Market Press; Dino Dimov. Grappling with the unbearable susiveness ‘of entrprenearil opportunites. Enirpreseurship Theory and Practice, st) 201, 97-81 31 Wajec, (1985) Five star minds: “Recipes o stimulate your creativity and Imagination. New York: Doubleday ‘Barton, F. (1995). No yotless flower: An ecology of ret. New Jersey: Hampton res, ne. 32 De Bono, Lateral thinking, 1970. 33 Vadim Kotelnikov, Lata thinking, huff 1000ventires com) business guidelerosscuttngs! ‘inking lateral hm. 54 Seatll GD. 2003). Thinking ouside ‘he comfort zone, cited in Vad Kotelitoy, Thinking ouside the box’, bntp:fwew.1000ventures com business guldelcrsscutings) ‘hinking_outside-he-box hal 35 Sloan, P. (2003). The leader's guide to letra thinking shils: Poswerel problem solving techniques to ignite your tom's potential Landon: Kogan Page, cited in Kotenihow. 36 Ste Dauten, D (1986). Taking ‘chances: Lessons in puting pasion and ‘rats into your work ie New York: Newmarket Pres; Davis G. A. (1986) reaiiy is forever Dubuque, IA: Kendall unt 37 Parcs, 5. (1988). Visionzing State- of she-et proeses for encouraging Imovatve excellence East Arora, NY:DOK. 38 Bazan, (1984) Make the mos of ‘you mind. New York Sion ® Schuster 39" Agor, WH (1984). Inutve ‘management: Integrating left and right brain management Sil Englewood Ci, Nz Prence-Hally Bean, T2995) Using both sides of our brain. New York: Dutton: Hal D. (1595) Jump star your bra. New Yor: Warac Books, 40 Willa C Miler (199) Flask of blending PA: Peseus Books. 41 Ka Albrecht (1967). The creative corporation. Homewood, L: Dow Jones {rin see also Wiliam C.Méler. (1987), ‘The creative edge: Fostering innovation where you work New York: Addison Wesley: K Mark Weaver. Developing and Implementing entrepreneurial ealtares. ourat of Creative Behavior, 2213 (988), 184-95; American Management Assoition, (1995) Creative edge: How omporations support creativity and ‘movation. New York: AMA; D. Leonard {8 Sra. Puting the company's whole brain to work. Havard Business Review. 175 uly! August 19}, 111-21; and Hrshberg (1998) The creative priory New York: Ilarper€ Row. 42 Drucker, PF (1985) Innovation and entrepreneurship. New York: Harper & Row, 20. 43 Tine, K (2008). The relationship betwen innovation and cniuepreveuship: Easy definition, hard pole. Regional Frontier of Entrepreneurship Research 2009, Proceedings ofthe 6 AGSE Intemational Entrepreneurship Research Exchange, 3-6 February, Univesity of Ada, South Australia, 44 Hoel JM. lggins, CA. (1990), Champions of change: Identiying, understanding and supporting champions tof technologieal innovations. Organizational Dynamics, Summer, 4055; see also Schroede.D. ML (1990). A dynam perspective on the impact of process innovation upon competitive States, Strategie Management Journal 125-4, 45’ Drucker, PF. (1985) The discipline of Innovation. Harsard Business Revie, Mayfdune, 67-72. 46 See Joty, P-L. (1990) tentative ‘model of te innovation process RED Mavagemont, January, 35-48. 47 Drucker, Tite disepline of innovation. 48 Christensen, C.M.(2003). The Innovator’ dilemma, New York HarperBusiess See also Dvorak, J.C. The myth of dsrupive technology, hp} von pemag com. {5 Adapted from Hodgets, RM Kuyatko DF. 2001) Efetve smal business management (7h eds) For Werth, TX: Harum College Publishes, 24 50 Adapted from Drucker Ianovation and entreprencarshp; Peters, J. 2. ‘Rustin NJ. (0985) passion for celle. New York: Random House. 51 Fora good example, see Misch, R.A. (0980) Thee roa to innovation, Journal of Basiness Strategy, September/O

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