ENTREPRENEURIAL

MINDSET 2
CREATIVITY AND INNOVATION
 Creativity

• Also it is defined as a mind skill (Static subject) or a

process(Dynamic meaning)equipping us to make any
new idea in any area.
• creativity is essentially not a knowledge or science
branch. Instead, it is a skill that may be improved
through various methods

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 Creativity
• The ability to produce work that is novel (i.e. original and
unexpected), high in quality and appropriate (i.e. useful,
meets task constraints) – Sternberg, Kaufman and Pretz,
2002

• Latin = “Creare” = “to make”

• Greek = “Kranein” = “to fulfill”

• creativity involves the production of novel (useful) products,

characterized by originality and expressiveness and
imaginative” (Mumford, 2003, p. 110)

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 Creativity
• The process through which invention occurs, that enabling
process by which something new comes into existence.
• 3 different perspectives of creativity:
– Personal level: creative styles, new ideas and concepts
– Group & Social: derived from the discussion of a cross-
functional team
– Contextual: internal and external context- structures,
strategy, concept, environment and etc.

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 Components of Creativity

3 Components of creativity:

Creative Thinking Skills
• Identifies a problem and seeks its solution

Knowledge
• An adequate level of knowledge and skills that enable
a person to focus on his business or interest

Motivation
• Determine what people actually want and will do
• Either intrinsic or extrinsic.
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 Creative Process

Incubation

Knowledge Creative
Accumulation Process Ideas/
(Preparation) Insight

Evaluation
Elaboration

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 Factors Influencing Creativity

Encouragement

Autonomy
Mental
Block

Pressures Resources

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 Barriers to Creativity

Fear of
• Afraid that other people critique their ideas
Criticism

• Facing extraordinary demands, constraints

Stress and uncertain about their ability

Personal
• Negative belief on our creativity capability.
Beliefs

• Competition in the workplace and job burden

Over-
Management

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 Characteristics of Creative
Individuals
Goal-
Humble &
directed
Proud

Calculated
Passionate but risk taker
Objective

High
Brave to
Self-control
try new things

Open minded & Playfulness & discipline/

willing to accept criticism responsibility & irresponsibility
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 CREATIVITY TECHNIQUES

Attribute
Listing
Brainstorming Problem
Reversal

TECHNIQUES

Lateral Forced
Thinking Analogy
Mind
Mapping
 Innovation
• The process of translating an idea or invention into a good or
service that creates value or for which customers will pay.
• To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need. Innovation
involves deliberate application of information, imagination and
initiative in deriving greater or different values from resources, and
includes all processes by which new ideas are generated and
converted into useful products.
• In business, innovation often results when ideas are applied by the
company in order to further satisfy the needs and expectations of
the customers.

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 Types of Innovation
• The creation of a new product, service or process
Invention • More radical creation – high uncertainty

• New use or different application of an already

Extension existing product, service or process

• Creative replication of an existing product –

Duplication replicated by others using the similar concept

• Combination of existing concepts and factors into

Synthesis a new formulation or use.
 Sources of Innovation
Unexpected Events or Occurrence
• An unexpected event might lead to a new discovery

New-Knowledge Concept
• The output of R&D activities helps to create new invention

Change of Demographics
• The changes of demographic characteristics such as age, education
levels, consumer preferences and etc.
Process Needs
• Business process or production process that can be improved with
the use of new tools, machines or system.
 Process of Innovation

• Requirement Analysis
Implementation
• Production
• Idea Generation • Market Launch and
• Idea Evaluation • Development / penetration ( national /
construction international )
• Project Planning
• Prototype development
• Pilot Application
• Testing
Conception Marketing
 Barriers to Innovation
Improper
Motivation
Fear of
Change Fear of
Making
Mistake

Fear of “Self-
Trying Image
Block”

Fear of
Failure

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 Why Innovate?
• Innovation is the specific tool of
entrepreneurs- exploit change as an
opportunity for a different business
or service.

• The injection of creativity and

innovation techniques can add
value and create competitive
advantage to the business process
 Why Innovate?
• To convert opportunities into marketable
offerings – products, services or processes.
• To deliver new or better products or services.
• To penetrate new market
• To seek new or efficient resources
 Entrepreneurial
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 Creativity
• The ability to produce work that is novel (i.e. original and
unexpected), high in quality and appropriate (i.e. useful,
meets task constraints) – Sternberg, Kaufman and Pretz,
2002

• Latin = “Creare” = “to make”

• Greek = “Kranein” = “to fulfill”

• creativity involves the production of novel (useful) products,

characterized by originality and expressiveness and
imaginative” (Mumford, 2003, p. 110)

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 Entrepreneurs

Scarborough & Zimmerer (1998)

“…a person who creates a new business in the face
of uncertainty for the purpose of achieving profit &
growth by identifying opportunities and assembling
the necessary resources to capitalise on them…”

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 Innovation
• The process of translating an idea or invention into a good or
service that creates value or for which customers will pay.
• To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need. Innovation
involves deliberate application of information, imagination and
initiative in deriving greater or different values from resources, and
includes all processes by which new ideas are generated and
converted into useful products.
• In business, innovation often results when ideas are applied by the
company in order to further satisfy the needs and expectations of
the customers.

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 Top 4 Traits of Successful Entrepreneurs
Do you think you have what it takes to be an entrepreneur? Becoming an entrepreneur takes a specific type of
personality. Fortunately, it’s the type of personality you can develop by working on yourself, growing, and learning how
to express these traits. Focus on the four top traits below and you’ll find yourself ahead of the pack.

An entrepreneur is a problem solver An entrepreneur is self-motivated

An entrepreneur looks at a problem and knows it’s an
opportunity. That’s not a cliché talking. A problem is literally an
opportunity to get paid if you can be the one to solve it. Successful
entrepreneurs make their name identifying problems without solutions,
and providing those solutions. Every good product solves some sort of
problem. Even video games solve a problem—they provide a way for
people to unwind after a stressful day and fulfill a fantasy.
If you want to be a successful entrepreneur, your natural response to
any given problem should always be to ask yourself how you can solve
that problem. Not who is to blame, not how that problem came to be—
just how the problem can be solved. Problem-solving becomes a
habit. As you become alert to problems with no solutions, you become
alert to new ways to create, grow, develop, and innovate new
products. If you can marry this alertness to calculated action you will
develop the instincts that you need to be an outstanding entrepreneur.
An entrepreneur takes calculated risks
Risk-adverse people don’t make very good entrepreneurs—but neither
do extremely reckless people who leap first and look later. Real
entrepreneurs evaluate their potential risks. They also know how to
minimize the risks they need to take through hard work, dedication,
and strategic planning.
When a risk goes bad an entrepreneur doesn’t waste a lot of
time looking for someone to blame. Instead a true
entrepreneur analyzes what went wrong, learns from it, and
moves on.
This is about more than simply being your own
boss. This is about more than simply being able to
get up in the morning and get to work. An
entrepreneur is always capable of seeing a
tomorrow that’s just a little bit better than
today. He’s not satisfied to just sit on his laurels and
enjoy the fruits of his success. He’s constantly
looking forward—creating plausible plans to create
more opportunities and find his next point of
success. An entrepreneur is also willing to push
himself. Last year’s success was fine, but this
year’s success should reflect his growth. He’s
always coming up with some new project and
looking for ways to make that project succeed.
An entrepreneur is confident
There’s not much room in the business world for
self-doubt. Fear can make you back away from
projects that could be the key to your ultimate
success. Furthermore, the entrepreneur has to be in
the business of convincing other people that his
ideas are good. Partners, investors, financing,
creative structuring—it all depends on the
entrepreneur’s ability to convince other people that
they’re making a good bet when they team up with
him. If the entrepreneur isn’t sure about himself,
how can anyone else be sure of him?