Learning outcomes
 Explain nature of innovation
 Critical role of entrepreneurs in the process of
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innovation
Link between innovation, opportunity and
entrepreneurship
Opportunity can be stimulated in a systematic way
Sources of opportunity
Are you an innovative thinker
Learning outcomes Cont…
Creativity & its importance
 Explain what makes an individual creative
 Relation of Creativity & logical thinking
 Creativity process
 Barriers to creativity
 Techniques to increase creativity
 Steps to become creative
 Creativity vs. innovation
 Innovation creativity & entrepreneurship
Creativity & Innovation
Ideas
Ideas + Action
Innovation
Kantar defines Innovation as
As the generation, acceptance and implementation of new
Ideas, processes product and services
Mintzberg defined innovation as
As the mean to break away from established pattern in
other words doing things in really different way
Cont….
 Porter presents that innovation is not just a single
major technological breakthrough in fact it is a
accumulation of small changes in the product ,services
and in processes
 Morris and Kuratko present the list of continuum of
possibilities for innovation in product/services and
processes
Types of innovation
 The introduction of new or improved goods or services
 The introduction of new processes
 The opening up of new market
 The identification of new source of supply of raw
materials.
 The creation of new types of industrial organization
(Burns, 2007)
Process of Innovation
(Burns, 2007)
Effectiveness Criteria for an Innovation process
 Implement a few ideas at regular intervals
 Ensure feedback takes place - there must be communication channels
to originators.
 Screening system should be simple, understood by everyone
 Ensure the system is promoted
 Transform ideas into reality at a reasonable speed - if the system is too
slow we may be too slow to react to the market pace and turn off idea
originators.
(Burns, 2007)
Frequent route of innovation for entrepreneurial firms
Product/services
development
Process development
 Major new processes
 New to the market
 New product/service line within
 Minor new processes
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the company
Addition in the line
Improvement or revision
New applications in the existing
product and services
Repositioning of the existing
product
Cost reduction for the existing
products/ services
 Significant revision to existing
processes
 Modest improvement to existing
process
(Burns, 2007)
Innovation Model
What is Creativity
New ways of doing things
The ability or quality displayed when solving hitherto
unsolved problem (parkhurst 1999)
 Help in innovation
 To do things differently
(Burns, 2007)
Definition
Creativity is a mental process involving
the discovery of new ideas or concepts,
or new associations of the existing
ideas or concepts, fueled by the process
of either conscious or unconscious
insight
(Burns, 2007)
 Creativity is at core of any true entrepreneur. it is
important in coming up with completely new ways of
doing things, rather than looking for adaptive, incremental
change.
Parkhurst (1999) defined:
It as the ability or quality displayed when solving
hitherto unsolved problems, when developing original
and novel (at least to its originator).
Characteristics of the creative
personality
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Creative individuals have a great deal of energy, but they are also often quiet and at
rest.
Creative individuals tend to be smart, yet also naive at the same time.
Creative individuals have a combination of playfulness and discipline, or
responsibility and irresponsibility.
Creative individuals alternate between imagination and fantasy ant one end, and
rooted sense of reality at the other.
Creative people seem to harbor opposite tendencies on the continuum between
extroversion and introversion.
Creative individuals are also remarkable humble and proud at the same time.
Creative individuals to a certain extent escape rigid gender role stereotyping and have
a tendency toward androgyny.
Generally, creative people are thought to be rebellious and independent.
Most creative persons are very passionate about their work, yet they can be extremely
objective about it as well.
The openness and sensitivity of creative individuals often exposes them to suffering
pain yet also a great deal of enjoyment
(Burns, 2007)
Creativity process on individual
level
GENERATING KNOWLEDGE &
AWARENESS
INCUBATION PROCESS
GENERATING IDEAS
FEED
BACK
LOOP
EVALUATION &
IMPLEMENTATION
(Burns, 2007)
Creative process
1.Generating knowledge and awareness
A prerequisite to all creative processes is the generation of
awareness of different ideas and ways of doing things
through reading and traveling widely, talking with different
people with different views about the world.
2.Incubation process
This incubation period happens when people are engaged in
other activities (the best are those instinctive activities that
do not require left brain dominance) and they can left their
subconscious mind work on the problem.
(Burns, 2007)
Creative process
Generating ideas
Ideas can come unexpectedly during the incubation period,
but often they need encouragement. There are a number
of techniques to encourage idea generation.
4. Evaluation and implementation
The Explorer:
Searching for new insights and perspective by shifting
through information , being curious , observing other
fields, generating ideas, broadening perspective,
following unexpected leads, using difficulties and
obstacles and constantly writing things down.
3.
(Burns, 2007)
Wallis Model of the Creative
Process:
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Preparation
Incubation
Illumination
Verification
(Burns, 2007)
Preparation Stage
 Define the problem, need, or desire, and gather
any information the solution or response needs to
encompass.
 Set up criteria for verifying the solution's
acceptability.
 This can take minutes, hours, days, weeks,
months, even years.
(Burns, 2007)
Incubation Stage
 Step back from the problem and let our minds
contemplate and work it through.
 As with preparation, incubation can last various
lengths of time.
(Burns, 2007)
Illumination Stage
 Ideas arise from the mind to provide the basis of a
creative response.
 These ideas can be pieces of the whole or the whole
itself.
 Illumination is often very brief, involving a
tremendous rush of insights within a few minutes or
hours.
(Burns, 2007)
Verification Stage
 Demonstrate whether or not what emerged in
illumination satisfies the need and the criteria defined
in the preparation stage.
(Burns, 2007)
Techniques to enhance creativity
 Brainstorming
 Analogy
 Attribute analysis
 Gap analysis
 Encouraging creativity
(Burns, 2007)
Barriers to creativity
 The fallacy that there is only one correct solution to a
problem
 The fallacy that logical is important in creativity
 The tendency to be a practical
 The tendency to follow established rules unquestioningly.
 The tendency to assign blame for failure
 The unwillingness to recognize the creativity power of play
 The tendency to think too narrowly & with too much focus
 The unwillingness to think unconventionally because of
the fear of appearing foolish
 The lack of belief that you can be creative
(Burns, 2007)