creativity and innovation ( keys to entrepreneurial success)

Copyright © 2015 Pearson Education, Ltd.

Creativity: the ability to develop new ideas and to discover new ways of looking at problems and opportunities

Thinking new thingsInnovation: the ability to apply creative solutions to those problems and opportunities to enhance or to enrich people’s lives

Doing new thingsEntrepreneurs succeed by thinking and doing new things or old things in new ways

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Intuit identified six enablers of small business innovation:1. Passion2. Customer connection3. Agility and adaptation4. Experimentation and improvisation5. Resource limitations6. Information sharing and collaboration

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Innovations can be:Reactive in response to customer feedback or changing

market conditionsProactive in response to new opportunities on which to

capitalizeRevolutionary creating market-changing, disruptive

breakthroughs that are the result of generating something from nothing

Evolutionary, developing market-sustaining ideas that elaborate on existing products, processes, and servicesPutting old things together in new ways or from taking

something away to create something simpler or better

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"Innovation is in small business DNA. Yet, many entrepreneurs don't realize that some of the great offerings and processes they create are innovations," said Steve King.

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creativity is not only an important source for building a competitive advantage, but it also is a necessity for survival.

When developing creative solutions to modern problems, entrepreneurs must go beyond relying in what has worked in the past:Cast off limiting assumptions, beliefs, and behaviorsDevelop new insights Change perspectivesLook at the world in new and different ways

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Can Creativity be Taught?Creativity is a skill

Anyone can learn to be creative and to get better at it

Need to understand creative thinking

https://www.youtube.com/watch?v=vlBpDggX3iE

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Mental locks that can limit individual creativity:1. Searching for the one “right” answer2. Focusing on “being logical”3. Blindly following the rules4. Viewing laughter and play as frivolous5. Becoming overly specialized6. Avoiding ambiguity7. Fearing looking foolish8. Fearing mistakes and failure9. Believing that “I’m not creative”

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Enhancing Organizational Creativity1. Include creativity as a core company value and

make it an integral part of the company’s culture2. Hire for creativity 3. Embrace or hold diversity 4. Establish an organizational structure that nourishes

creativity 5. Expect creativity 6. Expect failure and learn from it 7. Include fun into the work environment 8. Encourage curiosity 9. Design a workspace that encourages creativity

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10.View problems as opportunities11. Provide creativity training12.Provide support13.Develop a procedure for capturing ideas14.Talk with customers – or better yet, interact with them15.Monitor emerging trends and identify ways your company can

capitalize on them16.Look for uses for your company’s products or services in other

markets 17.Reward creativity18.Model creativity

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Enhancing Individual Creativity 1. Allow yourself to be creative2. Forget the “rules”3. Give your mind fresh input everyday4. Travel – and observe5. Collaborate with other people6. Observe the products and services of other companies,

especially those in different markets7. Recognize the creative power of mistakes and accidents

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8. Be positive9. Notice what is missing 10.Periodically ask yourself, “Am I asking the right

question?”11. Keep a journal handy to record your thoughts and ideas12.Listen to other people13.Get adequate sleep14.Watch a movie15.Talk to a child

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16.Do something ordinary in an unusual way17.Keep a toy box in your office18.Take note of your ‘pain points’: do other people

experience them as well?19.Do not throw away seemingly ‘bad’ ideas20.Read books on stimulating creativity or take a class on

creativity21.Take some time off22.Be persistent

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Creative ideas are the result of seven step process:1. Preparation2. Investigation3. Transformation4. Incubation5. Illumination6. Verification7. Implementation

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Step 1: PreparationAdopt the attitude of a lifelong studentRead—a lot—and not just in your field of expertiseClip articles of interest to you and create a file for themTake time to discuss your ideas with other people, including those

who know little about it as well as experts in the fieldJoin professional or trade associations and attend their meetingsDevelop listening skills.Eliminate creative distractions

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Creative ideas are the result of seven step process:1. Preparation Investigation

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Step 2: InvestigationDevelop a solid understanding of the problem,

situation, or decision at hand

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Creative ideas are the result of seven step process:1. Preparation2. Investigation Transformation

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Step 3: TransformationTwo types of thinking:

1. Convergent thinking: the ability to see the similarities and the connections among various and often diverse data and events

2. Divergent thinking: the ability to see the differences among various data and events

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Transforming information into a purposeful idea:Evaluate the parts of the situation several times, trying to understand the

big pictureRearrange the elements of the situationTry using synectics (a term derived from the Greek words for “to bring

together” and “diversity”),taking two seemingly illogical ideas and combining them

Before locking into one particular approach to a situation, remember that several approaches might be successful

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Creative ideas are the result of seven step process:1. Preparation2. Investigation3. Transformation Incubation

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Step 4: IncubationIdeas may require a gestation period

Walk away from the situationTake the time to daydreamRelax – and play - regularly Dream about the problem or opportunityWork on the problem or opportunity in a different environment

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Creative ideas are the result of seven step process:1. Preparation2. Investigation3. Transformation4. Incubation Illumination

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Step 5: illuminationThe light bulb goes on

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Creative ideas are the result of seven step process:1. Preparation2. Investigation3. Transformation4. Incubation5. Illumination Verification

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Step 6: VerificationIs it really a better solution to a particular problem or

opportunity?Will it work?Is there a need for it?If so, what is the best application of this idea in the

marketplace?

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Does this product or service idea fit into our core competencies?

How much will it cost to produce or to provide?Can we sell it at a reasonable price that will

produce adequate sales, profit, and return on investment for our business?

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Creative ideas are the result of seven step process:1. Preparation2. Investigation3. Transformation4. Incubation5. Illumination6. Verification Implementation

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Step 7: ImplementationTransform the idea into reality

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creativity and innovation ( keys to entrepreneurial success)

Small Business & Entrepreneurship