Module 1: Entrepreneurship – An Innovation

Challenges of Innovation:

The top 10 challenges of innovation and how to overcome them @@@

The path to innovation is not always easy.

It’s frequently necessary to create a certain atmosphere in which individuals are encouraged
and permitted to freely develop ideas, which may actually move initiatives ahead.

The necessary tools must also be in place for the creative approach to provide the most
benefit.

In terms of organizational growth and success, innovation is a critical aspect:

Creating an innovative culture in your organization is a key undertaking today, yet many
companies face internal problems that obstruct the innovation process.

Should you encounter any of these problems, how do you best respond to them?

What are the top challenges of innovation?

Innovation is a significant component in the growth, success, and survival of a company. So

encouraging innovation in your organization should be a top priority. Unfortunately, most
businesses encounter internal difficulties that impede innovation.

Here are ten of the most prevalent issues that hinder innovation and how to address
them.

1. Impractical expectations for innovation

Imposing unreasonable expectations makes individuals lose confidence. As a result,
innovative outputs suffer. Sometimes, in innovation, we sensationalize, overestimate, and
overpromise an idea that generates an expectation threshold that is difficult to meet.
For others, the problem often comes from the fact that under-promising may not help
your team obtain the traction you need among investors to secure a suitable investment
to push your innovation project through.

While it’s a delicate, tricky choice between over- and under-promising, being honest about
the project’s possible risks — and preparing to meet them in case — is a great
countermeasure.

Solutions:

 Extracting insights about what could go wrong and making room for possible errors with
a build-measure-learn attitude can help deliver the best business value possible. After
all, great innovations take patience and time to implement.
 Develop the mental grit to go on by setting the appropriate goals and expectations while
embracing a ‘test small, fail quick, and learn quickly’ mind set in an atmosphere where
certain delays hold back patience – and in consequence – progress.

 Discuss the innovation process with defined goals and expected outcomes to set the
right expectations.

2. Un-empowered innovation teams

Some innovation managers are concerned that innovation would divert the attention of their
workforce from their daily tasks and responsibilities.

As a result, some employees don’t feel equipped nor motivated to participate in the
exploration of new ideas or even in discussions related to the company’s innovation
activities.

Because of this, they develop less regard for innovation objectives, which could possibly make
them feel that innovation should be the least of the organization’s priorities.

Solutions:

 Promote innovation as an inclusive activity that inspires, appreciates, and rewards

innovative concepts.
 Boost your innovation culture by doing the following steps:
 o Offering thorough backing for innovation initiatives
o Conducting innovation training
o Promoting accountability for innovation performance outcomes
o Allocating sufficient resources to support sustainable culture change
o Developing innovation strategies and projects together with employees
 Encourage employees to spend time innovating via motivational activities such as
incentive programs, hackathons, and other innovation challenges.

3. Lack of innovation strategies

Creating a coherent innovation plan is critical, just like any other organizational
endeavour. An innovation strategy directs the course of innovation, as well as its
practical execution. Without one, efforts to innovate risk becoming misaligned.

A considerable percentage of some corporate innovation projects appear to have been

established haphazardly without a defined innovation strategy in existence. Because of
this, such projects will only create displeasure of top management at first.

However, because such efforts are not tightly tied to company strategy, vital financing will soon
run dry. It would then become difficult to sustain the resources devoted to these projects
unless its commercial benefit (ROI) is demonstrated.

Solutions:

 Consider the company’s growth strategies and agenda when initiating grassroots
activities.
 Create a specific set of objectives and define how you can possibly and efficiently attain
them.
 Develop an innovation plan and be transparent about it with your employees. Ask for
their insights to show how serious you are in keeping them on-board, including how
their participation is greatly appreciated.

4. Weak innovation culture

Given the importance of innovation in business and the reality that corporate culture has
proved to be the most powerful and elusive obstacle to creative performance, innovation
culture is a significant issue for many.
The problem is, a weak innovation culture can spiral into numerous different problems
that may hinder the organization’s overall capacity for innovation. Not only will it
impede the creativity of employees. It will also affect how they perceive innovation
activities.

For instance, when an individual feels that the company’s mechanisms are not in place for
implementing innovative ideas, then innovation will never be on top of their priorities. Or worse,
they may never take it seriously, which may then affect productivity, efficiency, and deadlines.

Solutions:

 Assess where you are in terms of innovation. Recognizing where you stand innovatively
offers you a proper indication of what rules, laws, activities, and procedures you need to
put in place to foster an innovative culture.
 Make a plan for where you wish to go from an innovative standpoint. Goals and
objectives are taken into account in a strong innovation culture. Allow these factors to
influence your company’s day-to-day operations.
 Discover what needs to be done by learning from your current innovation culture. Ask
your employees for their insights. And if something isn’t working as it should, figure out
what needs to be altered and make the appropriate changes.

5. Lack of managerial support

Managerial support for innovation is critical in enhancing organizations’ economic
competitiveness.

However, some executives find it challenging to support innovation efforts, not because
they underestimate the function or importance of innovation in growth.

But because other elements of proposed innovation activities — such as projected ROI,
methods, targets, and prospective results – are vague and ambiguous.

Solutions:

 Align your business goals with your innovation strategies. It not only adds business
value to your innovative output. It also secures backing from the management as it also
meets business objectives.
  Be very clear on your innovation plans and execution methods. Clearly define every
part of the innovation process, particularly your expected results and outcomes. This
communicates confidence and indicates superior knowledge on the matter at hand.
 While innovation ideas should not always be prioritized according to their earning
potential, it is an essential factor for executives to consider upon deciding to support an
innovation endeavour. Make sure that your concept has a strong economic impact.

6. Resistance to change
People often say that change is constant. But sometimes, humans have this natural tendency
to be afraid of change, especially big ones. However, in business, to accomplish progress, it is
necessary to embrace change.

The resistance of many employees to the emergence of various resources, such as

manufacturing machinery or new complicated plans, updated procedures, or new
disruptive theories, has well-founded causes.

Employees, for example, maybe resistant to this because they are concerned that changes
would make them obsolete. Resistance can also stem from the fear of the unknown when the
learning process is seen to be excessively difficult.

Solutions:

 Misunderstandings regarding the change you wish to implement may contribute to the
impression. Educate your employees how this innovation can help you as an
organization and how it can help them perform their tasks better.
 Emphasize the benefits that you can all get in implementing your innovation
initiatives. Change their fear of the unknown into the feeling of excitement in
implementing it. Moreover, highlight the fact that you will be there with them every step
of the way.
 Walk them through all the phases of your innovation plans so they’d know what to do to
help you out. Ask for their opinions if possible, so they can see that this ‘change’ is an
inclusive journey.
7. Lack of internal and external collaboration
Internal and external collaboration is essential in the generation of novel ideas. Collaboration
within departments — and even with customers — can quickly fix difficulties with new ideas
that have the potential to alter your industry.

Furthermore, by obtaining suggestions from diverse groups of individuals, a wide range

of viewpoints may be considered in enhancing or developing product and service lines.

Different approaches are used, so every risk associated with a certain concept is examined,
resulting in a sequence of evidence-based decisions that might ensure a smooth execution
phase.

Solutions:

 Reach out to your customers. Let them know that their ideas and feedback regarding
your products and services are valued and that these insights aid in delivering the value
that they should be receiving for the confidence they’ve placed in your business.
 Ask the right questions for both customers and employees. Create questions that
encourage innovative thinking. When responses are provided, entertain and discuss
them.
 Incentivize marketable ideas. Hold a hackathon or conduct any innovation challenge
that is open for both your customers and the organization. Encourage them to work in
teams to promote collaboration.

8. Difficulty in transitioning from one phase to the next

Given that the innovation team is composed of different people with diverse ideas, this could
potentially become a problem as their opposing views could affect their way of working
towards an accessible and meaningful output. This could potentially affect them in the long
run.

In addition, with limited resources, managing the movement of an innovation project from one
stage of development to the next can be difficult as it involves a conscious effort on
straightforwardness and structure.

This ensures that the innovation can be effectively translated at the next level of the process
without compromising quality.
Solutions:

 Developing a coherent innovation plan is critical for the seamless execution of projects.
An innovation strategy directs the course of innovation as well as its practical execution.
Without one, efforts to innovate risk becoming misaligned.
 Risks should be assessed ahead of time. Determine what may possibly go wrong at
each stage of the process and devise countermeasures to assure its continuance.
 Adopt a ‘test and learn’ strategy. Treat each step as a learning opportunity so that you
don’t see any difficulties in shifting as a sign of failure. However, be cautious about this
as it might get costly if not executed on a limited scale.

9. Incorrect innovation KPIs

Innovation is a critical process for an organization’s existence, and it may necessitate the use
of business resources, as well as energy, effort, and time. It must be measured on a regular
basis in order to assess development in a proactive manner.

Measuring innovation is critical to its ongoing success. However, traditional KPIs, like
sales volume or income, may not provide your firm with the best insight into innovation
performance.

As not everything in innovation can be accurately quantified, it is critical for businesses to

identify appropriate measurements for evaluating certain elements of innovation.

Solutions:

 In order to properly measure innovation, include both results and conditions for success
in your innovation KPI scorecard. Results-based metrics focus on product metrics,
whereas conditions for success include strategy, structures, capabilities, and culture.
 You obtain a complete collection of indicators that address important determinants of
innovation success by grouping similar measures, merging input and output data, and
classifying associated factors.
 To make things simpler, you may utilize an innovation dashboard to assist in the
creation of reports based on integrated data sources and key performance metrics.
10. Futile innovation toolbox
Without access to powerful innovation tools, it’s impossible to manage innovation and keep
track of your innovation initiatives in today’s highly competitive business environment.

Because most innovation tools have limited capabilities, businesses may wind up
devoting large efforts to finding innovation tools that give merely basic functionalities
rather than a competitive edge.

As a result, innovation is slowed down as every tool takes time to learn, manage, and control.
The company’s innovation toolbox is also made up of too many innovation tools that do not
work well together, granting how one’s features may not be integrated with the next.

Solutions:

 Choose an innovation software that can help you with every step of the innovation
process — one that ties every aspect of innovation together, like Accept Mission (Idea
and Innovation Management Software).
 Select an innovation software that allows real-time collaboration from ideation to
implementation for seamless execution of innovation projects.
 Create an innovation toolbox that matches your needs.

Awareness is the key

The best way of solving problems always starts with being aware that they actually exist in the
first place.

You will only be able to overcome them if you know that they’re there. A thorough evaluation of
your innovation process can help you identify these issues.

Meet with your team and discuss with them what solutions you can employ to effectively solve
them.

What is the Innovation Process?

Innovation refers to the introduction of a new quality of a good or a new good, market, method
of production, source of supply, and organization in an industry. The most promising thing
about the innovation process is being able to actualize an idea into a successful concept.
“Innovation takes birth in sync with the evolution of customer’s expectations and
demands or vice versa. Either way, organizations around the world have to continually
innovate themselves and keep up with the people’s wants. The failure to do so or being
indifferent to your customer’s needs will make your competitors win. And then,
customers become indifferent to you with a high-risk gamble to play at.” – Ketan
Kapoor, Co-founder of Mercer-Mettl

Steps of Innovation Process – @@@

Step 1: Idea Generation and Mobilization –

New ideas are created during idea generation. Successful idea generation should involve the
pressure to compete and the freedom to explore.

Mobilization occurs when the idea is moved to a different logical or physical location.

For instance, how Apple waited three years after MP3 players were introduced to create the
iPod, which was attractive, intuitive, and offered capacity for up to 1,000 songs.

Step 2: Advocacy and Screening –

Advocacy and screening help to evaluate the feasibility of a business idea with its potential
problems and benefits.

Hence, a decision can be made about an idea’s future. Companies looking to develop a
culture can establish a few best practices.

For instance, Employees should have plenty of avenues to receive advocacy and feedback.
Also, organizations must understand the difficulties involved in evaluating truly innovative
ideas. Also, organizations need to build transparent evaluation and screening protocols.

Step 3: Experimentation –
The experimentation stage tests the sustainability of ideas for an organization at a specific
time. Experimentation generates new ideas with the information that is gathered on the results
and feasibility of the original idea.

For instance, when Amazon tested its grocery delivery service in certain Seattle suburbs.
After this, Amazon Fresh expanded to Los Angeles, San Diego, and New York City.

Step 4: Commercialization –

Commercialization develops market value for an idea by focusing on its impact. An important
part is establishing the specifications of any given idea.

Commercialization is the stage that involves the change of focus developments to persuasion.
After the idea is clarified and a business plan is developed, it will be ready for diffusion and
implementation.

Step 5: Diffusion and Implementation –

Diffusion is the company-wide acceptance of an innovative idea, and implementation sets up

everything needed to develop the innovation.

Diffusion and implementation allow the organization to determine the next set of needs for
customers. Receiving feedback, indicators for success metrics, and other benchmarks enable
the organization to stimulate the innovation process.

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Divergent Vs Convergent Thinking @@@

Difference between Divergent Thinking and Convergent Thinking

Both convergent and divergent thinking are vital in our lives. Neither one is exactly more
superior as compared to the other. For us to do well in various tasks, we often need to use
these opposite mental processes in conjunction.

When faced with a problem, we need to explore differing options (divergence). Afterwards, we
narrow down our choices and decide on the “best” solution (convergence).

For instance, John Kennedy used convergent thinking to figure out that America could beat
Russia into space by sending a man on the moon and NASA team employed divergent
thinking in developing the equipment and lunar modules.

What is Divergent Thinking?

Divergent thinking talks about considering several solutions to a certain problem. It is
sometimes referred to as “lateral thinking” which is a term credited to Edward De Bono, a
Maltese psychologist, physician, author, and inventor. As one of the leading authorities in
creativity, he proposed that problems should be solved through indirect and creative
strategies. This mind set is best utilized in inventive tasks such as free writing, creative
artwork, mind mapping, and brainstorming.
The characteristics of divergent thinking involve the following:

 Instinctual

Ideas are generated in a highly spontaneous manner.

 Free-flowing

Although an answer has been found, the possibility of finding other answers is still considered.

 Complex

Concepts are multi-layered and involve numerous standpoints.

What is Convergent Thinking?

Joy Paul Guilford, an American psychologist, coined the term “convergent thinking”. It refers
to figuring out a certain established solution to a problem. This is often employed in structured
assessments such as multiple-choice items, identification, and arithmetic problems.

The characteristics of convergent thinking comprise the following:

 Fast

As compared to divergent thinking, convergent thinking focuses more on speed as it aims to

verify the most direct and efficient answer in a shorter period of time.
 Precise
An accurate answer is derived after the process. This means that a certain concept may either
be right or wrong.
 Logical

A linear method is used and rational steps are taken to figure out the correct solution.

Differences between Divergent thinking and Convergent Thinking

1. Direction of divergent and convergent thinking

Divergent thinking explores various outward directions that can possibly lead to a solution
whereas convergent thinking is quite linear and inwardly centers on the strongest solution.

2. Novelty of divergent and convergent thinking

Divergence focuses on unique ideas or original products while convergence considers the
utilization of previous techniques.

3. Limit of divergent and convergent thinking

Convergent thinking seeks to find out the definite answer. On the other hand, divergent
thinking views possible answers as limitless.

4. Certainty of divergent and convergent thinking

Convergent thinking sees fixed sides; something is either black or white. However, divergent
thinking views concepts less rigidly; it considers the gray areas and less certain perspectives
of the solutions.

5. Efficiency of divergent and convergent thinking

Convergent thinking is most effective in decision making tasks while divergent thinking is
needed in figuring out probable options.

6. Personality of divergent and convergent thinking

Studies show that individuals who are open to new experiences and extroverted often employ
divergent thinking. This implies that those who are more comfortable with what is familiar as
well as those who are introverted usually practice convergent thinking.

7. Emotional State of divergent and convergent thinking

Interestingly, research correlated divergent thinking with positive emotional states where as
convergent thinking was associated with negative moods. You are more likely to generate
various ideas when in a pleasant mood as you become less critical and appreciate differing
viewpoints.

8. Value of Answers in divergent and convergent thinking

In divergent thinking, the multiple answers are of equal value. On the contrary, convergent
thinking dictates that there must be a certain answer with the highest value.

9. Intricacy in divergent and convergent thinking

Divergent thinking favours intricate ideas while convergent thinking encourages strong and
clear-cut concepts.

10. Risk taking in divergent and convergent thinking

Divergent thinkers take more risks with their adventuresome ideas as they often like
to experiment and go against the flow. On the other hand, convergent thinkers tend to be on
the safer side by mainly considering tried and tested options.

11. Curiosity in divergent and convergent thinking

As compared to their convergent counterparts, divergent thinkers tend to be more curious as

they have a number of questions and contemplate on wide-ranging as well as in depth ideas.

12. Brain Activity in divergent vs. convergent thinking

Since divergent thinking is mostly associated with artistry, it mainly stimulates the right
hemisphere of the brain. As for convergent thinking, it is generally related with logic which is
generally processed in the left hemisphere.

13. Reasoning in divergent and convergent thinking

Deductive reasoning is followed in convergent thinking as a logical answer is derived by
eliminating the other less reliable data. Conversely, divergent thinking leans towards inductive
reasoning as ideas stem out from a main proposition.
 14. Quantity vs Quality in divergent and convergent thinking

Divergent thinking favours quantity over quality in the sense that its chief aim is to produce as
many ideas as possible. Contrary wise, convergent thinking supports quality over quantity as it
purports to determine the finest idea.

15. Time : divergent and convergent thinking

As divergent thinking welcomes all potentials, the process often endures for long periods of
time. Antithetically, convergent thinking concludes earlier as it only considers what is perceived
as highly relevant.

Divergent Thinking vs Convergent Thinking: Comparison Chart

Divergent Thinking Convergent Thinking

Seeks various solutions Focuses on a single answer

Generates new ideas Reuses previous information

Used in specifying options Efficient in decision making

Presents more complicated facets Mainly concerned with an exact viewpoint

Welcomes risk-taking Focuses on less-ambiguous answers

Covers massive and multi-layered concepts Aims to identify the most efficient concept

Associated with positive mood Associated with a cynical mood

Mainly involves the right brain Generally, it stimulates the left brain

Favours quantity over quality Favors quality over quantity

Process usually takes a longer time Process generally takes a shorter time

Summary points on divergent and convergent thinking

 Both divergent and convergent thinking are essential in problem solving.

 Divergent thinking leaves room for ambiguity while convergent thinking
strongly focuses on the exact answer.
  As compared to convergent thinkers, divergent thinkers tend to have better
moods.
 Divergence considers a number of ideas whereas convergence seeks the best
idea. Thus, quantity vs quality.
 Divergent thinking involves artistry which is associated with the right brain
while convergent thinking encompasses logical reasoning which employs the
left brain.
 Divergent thinking is a longer process as compared to convergent thinking.

Lateral Thinking @@@

Using both Convergent and Divergent Thinking

Also called: ‘Thinking outside the Box’

‘Lateral thinking is solving problems through an indirect and creative approach,

using reasoning that is not immediately obvious and involving ideas that may not be obtainable
by using only traditional step-by-step logic.

The term was first used in 1967 by Maltese psychologist Edward de Bono in his book The Use
of Lateral Thinking. De Bono cites the Judgment of Solomon as an example of lateral
thinking, where King Solomon resolves a dispute over the parentage of a child by calling for
the child to be cut in half, and making his judgment according to the reactions that this order
receives.

Edward de Bono also links lateral thinking with humour, arguing it entails a switch-over from a
familiar pattern to a new, unexpected one. It is this moment of surprise, generating laughter
and new insight, which facilitates the ability to see a different thought pattern which initially was
not obvious.

According to de Bono, lateral thinking deliberately distances itself from the standard perception
of creativity as "vertical" logic, the classic method for problem solving.
Qualities of an Entrepreneur:

Entrepreneurial Characteristics: @@@

Not all entrepreneurs are successful; there are definite characteristics that make
entrepreneurship successful. A few of them are mentioned below:

 Ability to take a risk- Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate
and take risks, which is an essential part of being an entrepreneur.

 Innovation- It should be highly innovative to generate new ideas, start a company and
earn profits out of it. Change can be the launching of a new product that is new to the
market or a process that does the same thing but in a more efficient and economical
way.

 Visionary and Leadership quality- To be successful, the entrepreneur should have a

clear vision of his new venture. However, to turn the idea into reality, a lot of resources
and employees are required. Here, leadership quality is paramount because leaders
impart and guide their employees towards the right path of success.

 Persistent

A good entrepreneur is always persistent by nature. A business is never an overnight

success. It takes immense hard work and also a little bit of luck.

But a persistent entrepreneur makes his own luck. He can create opportunities if they are
not presented to him. So a persistent entrepreneur that works tirelessly always has a
greater chance of success.

 Competitive Spirit

The business world is a very cut-throat space. Thousands of new businesses born and die
every day. So the competition is always going to be fierce and intense.

Such an environment is better suited to someone who is already competitive by nature

and thrives in such situations of pressure.

 Resilient
 And finally one of the most important traits in a successful entrepreneur is resilience.
There is no smooth straightforward path to success.

There will always be some failures and roadblocks in the way. So the entrepreneur has to
be resilient and steadfast in his pursuit of success.

 Open-Minded- In a business, every circumstance can be an opportunity and used for

the benefit of a company. For example, Paytm recognised the gravity of demonetization
and acknowledged the need for online transactions would be more, so it utilised the
situation and expanded massively during this time.

 Flexible- An entrepreneur should be flexible and open to change according to the

situation. To be on the top, a businessperson should be equipped to embrace change in
a product and service, as and when needed.

 Know your Product- A company owner should know the product offerings and also be
aware of the latest trend in the market. It is essential to know if the available product or
service meets the demands of the current market, or whether it is time to tweak it a little.
Being able to be accountable and then alter as needed is a vital part of
entrepreneurship.