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Chapter 4: Developing Creative Business Ideas
Prepared by: Lina Nadia Abd Rahim
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Learning Objectives
By the end of the chapter, students should be able to:
• understand what is creativity and its components
• explain the creativity process
• know the techniques to generate creative ideas
• understand factors that could block creativity
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What Is Creativity?
Creativity can be defined as the production of new
and useful ideas as well as the ability to discover new
ways of looking at problems and opportunities.
It is the ability to use imagination to develop new
ideas, new things or new solutions. These generation
of ideas should lead to improve efficiency or
effectiveness of a system.
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What Is Creativity?.... cont
Creative ideas often arise when creative people
observe established solutions, practices, or products
and think of something new or different.
Example: Creating the “NEW”
o Products
o Knowledge
o Processes
o Services
o Markets
o Business model
o Raw materials
.
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Components of Creativity 5
Creativity has three basic components:
Knowledge
Creative thinking skills
Motivation
.
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Components of Creativity…cont 6
1. Knowledge
o Refers to a confident understanding of a subject with the
ability to use it if applicable. It encompasses expertise,
skills, familiarity and practical & theoretical understanding of
a subject.
o Knowledge is gained by an individual through study or
experience.
o The more you know about the subject, the better equipped
you are to think outside of the box and come up with
innovative solutions.
.
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Components of Creativity…cont 7
2. Creative thinking skills
o Creative thinking skills is the use of creative intelligence
to approach problems and find solutions.
o The four styles of creative intelligence are:
o Intuitive – relies on past data
o Innovative – use factual data to make decisions
o Imaginative – imaginative, independent thinker
o Inspirational – focus on self-giving
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Components of Creativity…cont 8
3. Motivation
o Motivation can be in two forms:
o Extrinsic motivation – comes from external
environment (outside a person).
o Intrinsic motivation – a person’s internal
desire to do something.
.
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The Creativity Process
Creativity process can be broken into 5 phases:
INSIGHT
• Eureka
PREPARATION INCUBATION • Business Idea achieve
• Problem solve
ELABORATION EVALUATION
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The Creativity Process
1. Preparation
• Seeking and gathering the background
knowledge
• This may requires extensive reading,
discussion with experts, practitioners,
academicians, researchers in the field,
attending workshops and seminars, exploring
various unrelated areas etc.
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The Creativity Process
2. Incubation
• Incubation gives entrepreneurs time to reflect
upon the preparation stage and the information
they have gathered.
• Entrepreneurs allows creativity to spur by
breaking-away from the problem and let the
subconscious mind work on it.
• Incubation can be induced by engaging in
‘mindless activities’ such as painting the house
or cutting grass, meditate or play sports or
board games. The rationale is new ideas often
emerge when we are busy doing something
unrelated to the matter.
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The Creativity Process
3. Insight
• Insight is when solution to the
problem is seen or idea is born.
• Sometimes called Eureka
experience.
• This is the moment entrepreneur
recognize opportunities.
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The Creativity Process
4. Evaluation
• Idea is subjected to scrutiny and analyzed for viability
• Many entrepreneur mistakenly skip this process & try to
implement idea before they make sure it is viable.
5. Elaboration
• This is the stage during which the creative idea is put
into a final form.
• Detail work out – testing the idea, working on the idea
• Idea is transformed into something of value to
customers (e.g. product, services)
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Creativity Techniques
PROBLEM REVERSAL – look at the opposite of
things, see things inside out, backwards or upside
down.
FORCED ANALOGY - gain new insights by forcing
a relationship between almost anything.
ATTRIBUTE LISTING - break down the “thing” into
smaller parts or characteristics and develop ideas to
improve on them.
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Creativity Techniques… cont
MIND MAPPING - starts in the centre of the
page with the main idea, and works outward
in all directions, producing a growing and
organized structure composed of key words
and key images.
BRAINSTORMING – generating ideas
based on the principle of suspending
judgments.
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Blocks to Creativity
Searching for the only ‘one’ right answer
Focusing on ‘being logical’ and practical
Becoming overly specialized
Fearing looking foolish
Fearing mistakes and failure
Believing that “I’m not creative”
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