Topic 3 : Developing Entrepreneurial Creativity and Innovation.

3.1 3.2 3.3 3.4 3.5 3.6 3.7 What is creativity? Process of creativity Barriers to creativity How to generate creative ideas Characteristics of creative individual What is innovation? The importance of creativity and innovation for entrepreneurs 3.8 Strategies to Encourage Creativity and Innovation

3.1 What is Creativity? Creativity is the ability to produce work that is novel (original and unexpected), high in quality and appropriate (useful, meets task constraints)
(Stemberg, Kaufman and Pretz, 2002)

3.2 The Process of Creativity (The Creative thinking process) Knowledge Accumulation The more knowledge you accumulated, the greater is the pool of resources you can bring to generate new ideas. Incubation Relax and do something unrelated to the problem. Ideas Eureka I found it! Moment of inspiration. Evaluation and Implementation Developing ideas into useful and practical applications.

3.3

Barriers to Creativity
2. Fear of criticism Follow routines rather than do things differently 4. Stress Stress happens when people feel that they are facing or enduring extraordinary demands , constraints or opportunities and are uncertain about their ability to handle it effectively

1. Personal beliefs negative thinking

3. Over- Management Too hectic working environment does not provide space for workers to be creative.

3.4 How to Generate Creative Ideas

a) Brainstorming 4 to 7 members suggest ideas The more ideas, the better All ideas are acceptable Use other group members ideas to generate more ideas Criticism or evaluation of ideas is not allowed

b) Forced Analogy
The idea is to compare the problem with something else that has little or nothing in common and gaining new insights as a result Forced Relationship is basically a technique of forcing yourself to think of your organization s brand in terms of another product or industry. E.g. music and computers . computer and network technologies...

c) DO IT

D Define problem O Open mind and apply creative technique I Identify best solution T Transform

d) Mind Mapping

e) Nominal Group
Generate ideas and evaluate solutions face to face in non-threatening group Write down silently as many ideas as possible Member vote privately on the priority of ideas

3.5. 8 Characteristics of Creative Individual

1. 2. 3. 4. 5. 6. 7. 8. Remarkably humble and proud at the same time Very passionate about their work, yet they can be extremely objective about it as well. Brave to try new thing Open minded and willing to accept criticism from others Have a combination of playfulness and discipline, or responsibility and irresponsibility Tend to have high self-control Goal-directed, deliberate and considerate in making any decision. Willing to take calculated risks.

3.6 What is innovation?

finding ways to deliver new or better goods or services Kinicki and Williams (2003) The creation of something new in the marketplace that alters the supply-demand equation Chell (2001)

3.6.1

Types of innovation

Invention
The act of Creating a new Product, Service or process

Extension
Expand existing Product lines, Services or Processes.

Duplication
Replicate existing Product, services or process

Synthesis
Combining separate parts or elements into a new whole formulation

3.6.2 Sources of Innovation

1. Unexpected events (e.g. SARS, H1N1 .) 2. New-knowledge Concept (handset, laptop etc) 3. Changes of Demographics (standard of living and income increase--- demands for luxury goods and health care products) 4. Process Needs (healthy society--- health facilities or centres)

3.6.3
1. 2. 3.

Barriers to innovation

Organisation Does not Encourage Innovation Insufficient Sources Traditional Management Behaviour
Barriers to Innovation derived from Personal or Individual Bahaviour

1. 2. 3. 4. 5. 6.

Fear of change Fear of failure Self-image block Fear of trying Fear of making mistakes Improper motivation

3.7 The importance of creativity and innovation for entrepreneurs

To ensure an organisation s survival (e.g Nokia handset) To explore new markets (Philips --- DVD) To exploit natural resources (utilise the wealth of resources without harming the environment)

3.8 Four strategies to encourage creativity and

innovation in the organisation.

1. 2. 3. 4.

Recognise your own ability Change your perception Change the organisational culture Dare to fail

Future laptop