ENTREPRENEURSHIP

Lecture on creativity and

Innovation of Entrepreneurship

by Mesay A
Introduction

Learning Objectives
2

 Objectives:

1. Define and distinguish between:

• Discovery
• Invention
• Innovation (venture model / technology)
• Creativity
2. Give reasons why creativity and innovation are
critical to the work of the entrepreneur
 Last lecture review

 Entrepreneurs need a keen eye to understand economic,

social, and scientific realities and the capacity to
understand evolutionary processes in the future.
 Entrepreneurs also need dedication and commitments
and the capacity to overcome failure.
 The way become the champions of a new process, and to
engines for change.
Concepts

What is Innovation?
4

 A process of intentional change made to create

value by meeting opportunity and seeking
advantage
 “…is the specific function of entrepreneurship…”

 Process:-
 Invention  Change  Useful implementation
 What Are Innovations?

 Innovations are new ways to achieve tasks.

 Types of innovations include:
 Mechanical—tractors, cars.
 Water__ quality water,
 Chemical—pesticides.
 Biological—seed varieties.
 Managerial— extra pay for work, overtime.
 It is useful to distinguish between process innovations and
product innovation.
Concepts

Types of Innovation
6

 For now we will consider the following types

of innovations:
1. Technological
2. Venture model

Assignment
Examples

For example The Digital Camera

7

• Innovation?
• Technological or venture
model?

• Assignment
 The Innovation Process

 An innovation starts as a concept that is refined and

developed before application.
 Innovations may be inspired by reality. The innovation
process, which leads to useful technology, requires:
 Research
 Development (up-scaling, testing)
 Production
 Marketing
 Use
 Experience with a product results in feedback and leads
to improved innovations.
Concepts

What is Creativity?
9

 “The imaginatively gifted recombination of known

elements into something new.”

 “Fruitful combining which reveal to us unsuspected

kinship between facts, long ago known.

 Process:
 Existing ideas  Recombination  New ideas
The Creative Process
 Planning & definition
 focus on building the RIGHT product
 Design, demonstration & customer support
 focus on building the product RIGHT
Concepts

Key Concepts
11

Development
of new ideas
• new ideas:
• knowledge
• concepts

Purposeful
implementation
• inventions: of those ideas
• technologies
• business models

Exploitation
of inventions
• useful implementation:
• products to create
• services economic and
• experiences
social value
Introduction

For Example iPod by Apple

12

• Since 2002:
• 162 million sold
• 90% of market
• Source from
• Today
training…..
we’ll ask
ourselves again why
this has been so
successful…
Innovation

Thanks!!!!

by Mesay A