Introduction to

Creativity and Innovation

and Entrepreneurship

Winter 2011

ENGO 421, Fall, 2004

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Learning Objectives• Objectives:

Introduction

1. Define and distinguish between:• Discovery• Invention• Innovation (venture model / technological)• Creativity

2. Provide, recognize and classify examples of each

3. Give reasons why creativity and innovation are critical to the work of the entrepreneur

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Agenda• Introduction• Brainstorming activity• Concepts

• Discovery, invention, innovation and creativity

• Some examples

Introduction

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Why Creativity and Innovation?

Concepts

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Introduction

iPod by Apple• Since 2002:• 162 million sold• 90% of market

• Today we’ll ask ourselves again why this has been so successful…

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Activity

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Key Concepts

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Key Concepts

Concepts

Developmentof new ideas

Purposefulimplementationof those ideas

Exploitation of inventions to create economic and social value

• new ideas:• knowledge• concepts

• inventions:• technologies• business models

• useful implementation:• products• services• experiences

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What is Innovation?• A process of intentional change made to

create value by meeting opportunity and seeking advantage

• “…is the specific function of entrepreneurship…”• Peter Drucker

• Process:• Invention Change Useful implementation

Concepts

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What is Creativity?• “The imaginatively gifted recombination of

known elements into something new.”• Ciardi

• “Fruitful combining which reveals to us unsuspected kinship between facts, long ago known but wrongly believed to be strangers to one another.”• Poincare

• Process: • Existing ideas Recombination New ideas

Concepts

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Can you create creativity?• “20% time” at Google• Let people work on what they want to work on• Innovation will follow

• 50% of products come from Google’s 20% time• www.businessweek.com/magazine/content/05_40/b3953093.htm

• www.podtech.net/home/?p=632

• Is this realistic for a new business?• Can a small business do this?• Can most businesses do this?

• Other ways?

Concepts

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Do you have to invent to innovate?• Innovation is different from invention

• You don’t need to invent to innovate

• Guy Kawasaki says:• “COPY SOMEBODY … clever people have pretty

much invented every business model that’s possible. You can innovate in technology, markets, and customers, but inventing a new business model is a bad bet. You have plenty of other battles to fight.”

Concepts

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Types of Innovation

• For now we will consider the following types of innovations:

1. Technological innovation

2. Venture model innovation

Concepts

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Some Examples

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The “Fastskin” Swimsuit• Speedo LZR, 2008• Make no waves• Reduces drag• Preferred by most

Olympians today

Examples

Further reading: • http://blogs.howstuffworks.com/2008/04/21/how-the-fastest-swim-suit-works• http://www.bloomberg.com/apps/news?pid=20601079&sid=agr3V7Zrg8rk• http://philosophy.hku.hk/think/creative/creative.php

• Innovation?• Technological or venture model?

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The Digital Camera

Examples

Source: www.msnbc.msn.com/id/9261340/

• Innovation?• Technological or venture

model?

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Examples

• Innovation?• Technological or

venture model?

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Examples

iPod by Apple• Why has it been so

successful?

• Is your answer any different now than it was on the first day?

• Innovation?• Technological or

venture model?

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Examples

• Innovation?• Technological or

venture model?

iTunes by Apple

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Wrap-up

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2003 2004 2005 2006 2007

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20

15

10

5

0

Year

Millions iPods sold monthly

Value Created at Apple

Apple

Dell

HP

Microsoft

SHARE PRICES

600%500%400%300%

200%

100%

0%

ROI

Wrap-up

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Wrap-up

Innovation Index?

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Take these Concepts Further• Starting and running a business is as

important as:• Encouraging creativity • Managing innovation

• Balance• Operations vs. creativity and innovation • Left brain vs. right brain

• Your own unique processes

• Stage of business

Wrap-up

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Learning Objectives• You should be able to:

Wrap-up

1. Define and distinguish between:• Discovery• Invention• Innovation (venture model / technological)• Creativity

2. Provide, recognize and classify examples of each

3. Give reasons why creativity and innovation are critical to the work of the entrepreneur