CREATIVITY AND

INNOVATION
Introduction
• The first rule for developing entrepreneurial vision is to recognize
problems are to solutions what demand is to supply. Applying this rule
means an entrepreneur will analyze a problem from every possible
angel.
What is the problem?
Who does it affect?
How does it affect them?
Can it be solved?
Would the market place pay for a solution?
Introduction
• In order to give better perspective of this entrepreneurial vision this
sub topic is dedicated to examining the role of creativity and the
innovation process. These two aspects are key to understanding
opportunity and its development for entrepreneurs.
The role of creativity
• Creativity is the generation ideas that result in the improved efficiency
or effectiveness of a system
• There are two important aspects of creativity; Process and people
Process= Is a goal oriented; it is designed to attain a solution to a
problem. The process remain the same, but the approach that the
people use will vary.
For example, sometimes they will adopt a solution, and other times
they will formulate a highly innovative solution
Two Approaches to Creative Problem Solving
(Difference between innovative and adaptive entrepreneur)
Adaptor Innovator
Employs discipline precise, methodical Approaches tasks from unusual angles
approach
Is concerned with solving, rather than Discovers problems and avenues of
finding problems solutions
Attempt to refine current practices Questions basic assumptions related to
current practices
Tends to be means oriented Has little regard for means, more
interested in ends
Is capable of extended detailed work Has little tolerance for routine work
Is sensitive to group cohesion and Has little or need for consensus; often
corporation insensitive to others
The nature of creative thinking
• Creativity is a process that can be developed and improved. Some
people have greater skill for creativity than others.
• Some people have been raised and educated in an environment that
encouraged them to develop their creativity. They have been taught
and act creatively.
• For others the process is more difficult because they have not been
reinforced, and if they are to be creative they must learn how to
implement creative process.
The most common idea “killers”
1. “We’ve got deadline to meet-we don’t have time to consider that”.
2. “Can’t” (said with a shake of the head and an air of finality).
3. That is the dumbest thing I 'have ever heard
4. “Yeah but if you did that………”
5. “we already try that-years ago.”
6. “We’ve done all right so far; why do we need that?”
7. “I don’t see anything wrong with the way we are doing it now”.
8. “That doesn’t sound to practical
9. “It’s not in the budget.”
Typical creative process
Phase 1: Background or knowledge accumulation
Phase 2: The Incubation process
Phase 3: The idea experience
Phase 4: Evaluation and implementation
Typical creative process
Phase 1: Background or knowledge accumulation

• Investigation and information gatherings

• It involves extensive reading, conversations with others working in the
field, attendance at professional meetings and workshops relative to
the problems or issue under study.
• It provides the individual intending to develop new product, service or
business venture variety of perspectives on the problem.
Phase 1: Background or knowledge accumulation

• People practice the creative search for background knowledge in a

number of ways
1. Read in a variety of fields
2. Join professional groups and association
3. Attend professional meetings and seminars
4. Travel to new places
Phase 1: Background or knowledge accumulation

• People practice the creative search for background knowledge in a

number of ways
5. Talk to anyone and every one about your subjects
6. Scan magazines, newspapers and journals for articles related to the
subject
7. Develop a subject library for future reference
8. Carry small note book and record useful information
9. Devote time to pursue natural curiosities
Phase 2: The Incubation process

• Creative individuals allow their subconscious to think over the

tremendous amount of information they gather during the
preparation phase.
• Subconscious needs time to reflect on the information collected. To
an observer, this phase of the creative process would be quite boring.
It looks as though nothing is happening! In fact during this phase, it
may appear that the creative person is loafing! Incubation occurs
while the individuals away from the problem, often engaging in some
totally unrelated activity
Phase 3: The idea experience

• It is when the idea or solution the individual is seeking is discovered

• As with 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 etc.
Phase 4: Evaluation and implementation

• The focus of this step is to transform the idea into reality. Plenty of people come
up with creative ideas for promising new products and services, but most never
take them beyond the idea stage. What set entrepreneurs apart is that they act in
their ideas.
• Successful entrepreneurs can identify ideas that workable and that they have the
skills to implement
• They do not give up when they run into temporary obstacles
• In some cases entrepreneurs will take the idea in an entirely different direction or
will discover a new and more workable idea while struggling to implement
original idea
Phase 4: Evaluation and implementation

• Useful suggestions for carrying out this phase

1. Increase your energy level with proper exercise, diet and rest
2. Educate your self in the business planning process and all facets of
business
3. Test your idea with knowledgeable people
4. Educate yourself in the selling process
5. Learn about organizational policies and practices
6. Seek advice from others(for example friends, experts etc.)
THE INNOVATION PROCESS
• Innovation is the is the specific function of entrepreneurship-It is the
means by which the entrepreneurs either creates new-wealth
producing resources or endow existing resources with enhanced
potential for creating wealth.
• Innovation is the process by which entrepreneurs convert
opportunities into marketable ideas. It is the means by which they
become catalyst for change.
Types of Innovation
There are four basic types of innovation
• These extend from the totally new to modifications of existing
products or services
1. Invention
2. Extension
3. Duplication
4. Synthesis
Types of Innovation
1. Invention
• The creation of a new product, service, or process, often one that is
novel or untried. Such concept tend to be revolutionary.
2. Extension
• The expansion of a product, service or process already in existence.
Such concepts make a different application of a current idea.
Types of Innovation
3. Duplication
• The replication of an already existing product, service or process. The
duplication effort, however is not simply coping but adding the
entrepreneurs own creative touch to enhance or improve the concept
to beat the competition
4. Synthesis
• The combination of existing concepts and factors into a new
formulation. This involves taking a number of ideas or items already
invented and finding a new so together they form new application
Types of Innovation
Sources of Innovation
1. Unexpected Occurrences
2. Incongruities
3. Process needs
4. Industry and market changes
5. Demographic changes
6. Perceptual changes
7. Knowledge- based concepts
Sources of Innovation
1. Unexpected Occurrences
• These are success or failures, that because they were unanticipated or
unplanned, often end up providing to be a major innovative surprise
to the firm.
2. Incongruities
• These occur whenever a gap of difference exists between
expectations and reality.
Sources of Innovation
3. Process needs
• These exists whenever a demand arises for the entrepreneur to
innovate and answer particular need. The creation of health foods
and time-saving devices are examples
4. Industry and Market changes
• Continual shifts in the market place occur, caused by developments
such as consumer attitudes, advancements in technology, industry
growth and the like.
Sources of Innovation
5. Demographic Changes
• These arise from trend changes in population, age, education,
occupation, geographic location and similar factors.
6. Perceptual Changes
• These changes occurs in people’s interpretation of facts, and concepts.
• Perception can cause major shifts in ideas to take place
• Example the growing concern for perceived need to be healthy and
physically fit, has created demand for both health foods and health
facilities.
Sources of Innovation
7. Knowledge-based concepts
• Invention are knowledge-based, they are the product of new thinking,
new methods and new knowledge.
Principles of Innovation
1. Be action oriented
2. Make the product, process or service simple and understandable
3. Make the product, process or service customer based
4. Start small
5. Aim high
6. Try/test/revise
7. Learn from failures
8. Follow milestone schedule
9. Reward heroic activity
Principles of Innovation
1. Be action oriented
• Innovators always must be active and searching for new ideas,
opportunities or sources of innovation.
2. Make the product, process or service simple and understandable
• People must readily understand how the innovation works
Principles of Innovation
3. 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 accepted and used.
4. 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 at the
right time
Principles of Innovation
5. Aim high
• Innovators should aim high for success by seeking a niche in the
market place.
6. Try / test / revise
• Innovators always should follow the rule of try, test and revise.
7. Learn from failures
• Innovators does not guarantee success. More important, failures
often give rise to innovations.
Principles of Innovation
8. Follow Milestone Schedule
• Every innovator should follow a schedule that indicates milestone
accomplishments. Although project may run ahead or behind
schedule, it is still important to have the schedule in order to plan
and evaluate the project.
Principles of Innovation
9. Reward heroic activity
• Innovative activity should be rewarded and given the proper amount
of respect
• This also means tolerating and 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 enterprise.