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CI & Entrepreneur

Creativity and Innovation are two major aspects for entrepreneurs (especially for understanding opportunity and then further developing it) Entrepreneurs blend imaginative and creative thinking with a systematic logical process ability. It is a key success combination. Below are the types of analysis that blends creative thinking with systematic analysis.
They are looking for unique opportunities to fulfill needs and wants. They sense economic potential in Business Problems.

Cont..
They develop the ability to see, recognize, and create opportunity where others find only problems. They are able to recognize problems are to solutions what demand is to supply Therefore they analyze problems from all possible angles. What is the problem? Whom does it effect? How does it effect them? What costs are involved? Can it be solved? Would the marketplace pay for a solution? Etc..

Defn - Creativity
Creativity is the generation of ideas that result in improved efficiency or effectiveness of a system. Creativity is a mental and social process involving the generation of new ideas or concepts, or new association between existing ideas or concepts. Creativity is fuelled by the process of either conscious or unconscious thought.

Role of Creativity
Plays a major role in the innovative process & is very important for all entrepreneurs. Creativity has two important aspects:
1) Process 2) People Process is goal oriented; it is designed to attain a solution to a problem. People are the resources that determine the solution.

Cont..
The approaches the people take can vary. They can take adaptive solutions or they can take innovative solutions. Based on this entrepreneurs can be classified as
Adaptive Entrepreneurs and

Innovative Entrepreneurs

Two approaches to Creative Problem Solving


ADAPTOR INNOVATOR

Employs disciplined, precise, methodical approach Is concentrated with solving, rather than finding problems Attempts to refine current practices Tends to be means oriented

Approaches tasks from unusual angles Discovers problems and avenues of solutions Questions basic assumptions related to current practices Has little regards for means, is more interested in ends

Cont..
ADAPTOR INNOVATOR

Is capable of extended detailed work Is sensitive to group cohesion and cooperation

Has little tolerance for routine work Has little or no need for consensus; often is insensitive to others

Nature of Creativity
Creativity is a process that can be developed and improved. Creativity is a distinctive way of looking at the world that is often illogical. Creativity is not some mysterious and rare talent reserved for a select few Some people have more aptitude for creativity than others (just like any other talent or ability)

Steps in Creativity
The creative process has four phases or steps
Background or Knowledge accumulation The incubation process The idea experience Evaluation and Implementation

For creativity to occur, chaos is necessary but a structured and focused chaos. Therefore the steps do not always occur in the same order

Organizational areas for Creativity


Idea Creativity Material Creativity Organizational Creativity Relationship Creativity Event Creativity Inner Creativity Spontaneous Creativity

Myth of Creativity
The following are the myths associated with Creativity, Creativity comes from creative types. Money is a Creativity Motivator. Time-pressure fuels Creativity. Fear forces break through. Competition beats collaboration. A streamlined organization is Creative Orgn...

Barriers to Creativity
Fear of rejection Environment not willing to Risk. No- expectation that ideas are every ones responsibility Not Fun Neglect of ideas generated No support structure to transform the ideas to Implementation.

Cont..
Only Left Brain Use No acknowledgement of the person Valuing only Big ideas

Left brain and Right brain


Left Brain Verbal Analytical Abstract Rational Logical Linear Right Brain Non Verbal Synthesizing Seeing Analogies Non rational Spatial Intuitive Imaginative

Developing Left & Right Brain


Left Brain Right Brain

Step by step planning of your work and life activities Reading ancient, medieval and scholastic philosophy, legal cases. Establishing time-table for all your activities Using and working with your computer program

Using metaphors and analogies to describe things and people in your conversation and writing Taking of your watch when you are not working and books of logic acquaintances, movies, TV programs etc

Cont..
Left Brain
etc

Right Brain Recording your hunches, feelings and intuitions and calculating their accuracy Detailed fantasizing and visualizing things and situations in the future Drawing faces, caricatures and landscapes. Suspending your initial judgment of ideas, new

Characteristics of Creative Climate in Organizations


Trustful Management that does not over control the personnel Open Channels of Communications among business members Considerable contact and communication with outsiders A large variety of personality types A willingness to accept change

Cont..
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 brain storming. Sufficient managerial, human and time resources for accomplishing goals.

Developing your Creativity


1. Recognizing Relationships 2. Developing a functional perspective 3. Using your brains 4. Eliminating muddling mindsets Others
Be aware of some of the habits and mental blocks that stifle creativity. Use of killer phrases & idea stoppers in our communications Regularly practice exercises that enhance creativity

1. Recognizing Relationships
Practice perceiving things in a relational mode. Things and people exist in this world in relation to other things and people. Look at different and unorthodox relationships This has resulted in many innovations and inventions. Eg
Slice: Fruit juice + soft drink Automobile: Combustion Engine + Wheel Using a 110 kg, for defensive aspects in games

2.Developing a functional perspective


Develop a functional perspective toward things and people.

3. Using your brains

. 4. Eliminating muddling mindsets

Common killer phrases & idea stoppers

Exercises to improve Creativity

Innovation and Entrepreneurship


Innovation is the specific function of entrepreneurship. It is the means by which the entrepreneur either creates new wealthproducing resources or endows existing resources with enhanced potential for creating wealth. -Peter. F Drucker-

Definition - Innovation
Innovation is the combination of the vision to create a good idea and the perseverance and dedication to remain with the concept through implementation. It is the process by which entrepreneurs convert opportunities into marketable ideas. It enables them to become catalysts to change.

Difference - Innovation and Creativity


Innovation

Creativity Arises from speculation.

The origin of the idea arises from extended thinking, research, experience and work There is a vision to create a good idea. There is a perseverance and dedication to remain with the concept through implementation Requires Creativity and more. It results in more than just a good idea.

No vision to create a good idea. Not present


Part of the Innovation. Results in a good idea.

Cont..
Invention: Totally new product, service or
process. Ex. Wright brothers [Airplane], Thomas Edison [Light bulb], Alexander Graham Bell [Telephone]

Extension: New use or different application


of an already existing product, service or process. Ex. Ray Kroc McDonalds.

Cont..
Duplication: Creative replication of an
existing concept. Ex. Wal-Mart [Department stores], Pizza Hut [Pizza Parlor]

Synthesis: Combination of existing


concepts and factors into a new formulation or use. Ex. Fred Smith [Federal express], Merrill Lynch [Home equity financing]

Types of Innovation
They are of four types, in order of originality;

Invention
Extension Duplication Synthesis

Innovation Profile
PRODUCT PROCESS PROCEDURE INCREMEN DISTINCTIVE TAL BREAK THROUGH

Sources of Innovation
Unexpected Occurrences

In congruencies Process Needs Industry and Market Changes Demographic Changes Perceptual Changes Knowledge Based Concepts

Major Innovation Myths


Myth 1: Innovation Is Planned and Predictable Myth 2: Technical Specifications Should Be Thoroughly Prepared. Myth 3: Creativity Relies on Dreams and BlueSky Ideas. Myth 4: Big Project Will Develop Better Innovations Than Smaller Ones Myth 5: Technology Is the Driving Force of Innovation and Success.

Principles of Innovation
1) Be action oriented 2) Make the product, process or service simple & 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 a milestone schedule 9) Reward heroic activity 10) Work, work, work