2 Creativity Innovation and Entrepreneurship

Chapter 2
Creativity, Innovation and Entrepreneurship
By:
Bal Ram Chapagain, PhD
2
What is your understanding of creativity,

innovation and entrepreneurship?
© Bal Ram Chapagain. All rights reserved. 6/17/20

“You have to kiss a lot of frogs to find a prince.”
Art Fry
The Inventor of Post-It Notes at 3M
Concept of Creativity
 Creativity is the point of origination for innovation and
entrepreneurship.
 (May, 1975) – the process of bringing something new into
being.
 (Matherly & Goldsmith, 1985) – the generation of ideas
that result in improved efficiency or effectiveness of a
system.
 (Dorf and Byers, 2005) - the ability to use the imagination
to develop new ideas, new things or new solutions
 Creativity is concerned with generating new ideas or
associating existing ideas differently.
Concept of Innovation
 (Howell & Higgins, 1990) – the process by which
entrepreneurs convert opportunities into marketable ideas.
 Innovation is simply the act of putting new ideas into
action.
 In the context of business, once the new is identified, it
needs to be further assessed and eventually it has to be
materialized in the form of prototype (preliminary model
of something), formula, patent (an exclusive right for
invention) or business plan.
 Innovation can be in terms of product, process, or
business model.
Creativity, Innovation and Entrepreneurship
 Creativity: coming up with new ideas

 Innovation: putting ideas into action
 Entrepreneurship: commercialization of innovation
Suppose, you are a very good shower singer

 You thought of an idea to produce a distinct type of music
album “Sing in a Shower”: Creativity
 You assessed its feasibility and developed a prototype:
Innovation
 You slightly modified as needed, commercialized it for a
profit: Entrepreneurship
Journey of creative ideas-innovation-
entrepreneurship
Idea-Innovation-Entrepreneurship??
(Windmill Video)
The Three Components of Creativity
9
1. Creative thinking skills

 Capacity to put existing ideas and knowledge together in
new combinations.
2. Knowledge
 Explicit or Tacit Knowledge
 Can be acquired through formal education, practical
experience or interaction with other people.
3. Motivation
 Intrinsic and Extrinsic Motivation
 Intrinsic motivation is more important to foster creativity
(e.g., Thomas Alva Edison)
Factors Affecting Creativity
10
1. Encouragement of creativity
 Organizational encouragement (free-time, evaluation
system etc.)
 Encouragement from supervisors
 Encouragement of creativity within a group itself
2. Autonomy
 Autonomy generally triggers to creativity
3. Resources
 Practical or perceptual adequacy or limitation of
resources also affects creativity.
Factors Affecting Creativity…
11
4. Pressures
 Inverted-U relationship
between pressures creativity
5. Mental Blocks (-ve)

 Prejudice: Preconceived ideas, e.g., connecting the parts of
aeroplanes by using glue?? (but there are many kinds of glue).
 Functional Fixation: See only in terms of its name, e.g., In
Australia, “Australia Post” delivers not only mails but also
fruits, vegetables, groceries etc.
 Likewise, a coffee shop can also provide other facilities like
book reading, internet access etc.
Fostering Creativity: A Google Example
 At Google, for example, employees are asked to

spend 20% of their time working on something that
interests them away from their main jobs.
Companywide, a full 10 percent of employee time at
Google is spent dreaming up new projects. Although
most of these projects never become products, some
do – such as Google Maps, Google mail, Google
Earth, and Google Books (a controversial service that
lets users search inside published books)
Creative Ability Exercise – 1: Nine Dots Puzzle
 Connect all the nine dots in four straight lines

without lifting your pen. Retracing is not allowed.
Creative Ability Exercise – 2: Square Puzzle
 What is the exact number of squares in the box?

Creative Ability Exercise – 3: Balancing the
Equation
III – I = II
 Move anyone ‘I’ but the equation must still read
correctly.
Creative Ability Exercise – 4: Errors Puzzle
Their is four erors in this sentence.
 Find out four errors in the given sentence.

Types of Innovation
 1. Incremental vs. Disruptive Innovation
A. Incremental innovation:
 Make existing products, services or process better
 There is little change in existing paradigm
 It can be extension (e.g., development of desktop and laptop
based on mainframe computer), duplication (e.g., Red Roster
in Australia were adapted from KFC), synthesis (e.g., fax is the
synthesis of telephone + photocopier)
B. Disruptive innovation
 Truly important breakthrough innovations built on disruptive
technologies or complete shift in existing paradigm
 Examples: wheel, automobile, penicillin, steam engine,
computer etc. which completely changed the existing way of
doing things.
 Very few
Types of Innovation…
 2. Product vs. Process vs. Business Model Innovation
A. Product Innovation
 Introduce new products to cater the changing needs or tastes of
customers
 Example: Apple’s IPhone
B. Process Innovation
 Improvements in existing process to save time, cost or improve
quality of products or services
 Example: Ford’s invention of world’s first moving assembly
line in automobile manufacturing (reduced time to 1.5 hrs. from
12 hrs.)
C. Business Model Innovation
 New way of doing business
 Examples: Gramin Bank (Bangladesh), Amazon.com , Open &
Distance Learning/ Training.
Sources of Innovation/ Triggers to Innovation
1. Sources of Innovation within Companies or Industries

 Unexpected occurrences – such as penicillin (Alexander
Fleming, 1928) and Viagra (Bell et al., 1991).

 Incongruities or gaps between expectations & reality –
such as FedEx (US), Papers & Parcels (India).

 Process needs to save costs – Sanduk Ruit’s lenses that
costs less than $5 compared to $150 in developed countries

 Industry and market changes – Changes in healthcare
facilities (imitating 5-star hotel facilities) by private

hospitals to attract wealthy sick customers
Sources of Innovation/ Triggers to Innovation
2. Sources of Innovation in the Social and Technological

Environment
 Demographic Changes – such as aging population,
migration etc. may indicate the need for change in existing

products.
 Social Responsibility Concerns – such as Walmart’s
approach to convert waste products into animal feed,

energy and compost.
 New Technologies – such as banks are able to provide
innovative services such as mobile banking, ATM services

etc. due to advancement in technologies.
Linking Creativity, Innovation and Entrepreneurship
Screening New Business Opportunities
Is it real?
 Is it novel?
 Is it patentable?
 Is it technically feasible?
Is it viable?
 Is it better than rival products?
 Does somebody want to buy it?
 Can we make it with our resources?
Is it worth it?
 Is there a sizable market?
 Are forecasted returns greater than costs?
 Are the risks acceptable?
Case Study Discussion:
“Post-It Notes”
Discussion Questions
1. Explain the relationship between creativity,

innovation and entrepreneurship? Why all creative
ideas cannot be translated into successful
entrepreneurship? Discuss.
2. Explain the various factors affecting creativity.
3. Explain the various types of innovation with suitable
examples.
4. Suppose you are an aspiring entrepreneur. How
would you screen new business opportunities?
Discuss.
Research Task
 Choose a product or service. Interview five consumers
who buy that product and ask them what major
problems they have with the product (or what major
things they dislike about it). Then ask them to describe
the attributes of the “perfect product” that would
satisfy all their needs and replace the existing product.
Next, interview the representatives of five companies
that offer the product and ask them what they believe
are the major problems customers experience with their
product and to come up with some futuristic solutions.
27
Copyright © 2009 by B. R. Chapagain. All rights reserved. 6/17/20

2 Creativity Innovation and Entrepreneurship

Uploaded by

Copyright:

Available Formats

2 Creativity Innovation and Entrepreneurship

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2 Creativity Innovation and Entrepreneurship

Uploaded by

Copyright:

Available Formats

Chapter 2

Creativity, Innovation and Entrepreneurship

What is your understanding of creativity,

© Bal Ram Chapagain. All rights reserved. 6/17/20

 Creativity: coming up with new ideas

Suppose, you are a very good shower singer

1. Creative thinking skills

5. Mental Blocks (-ve)

 At Google, for example, employees are asked to

 Connect all the nine dots in four straight lines

 What is the exact number of squares in the box?

Their is four erors in this sentence.

 Find out four errors in the given sentence.

1. Sources of Innovation within Companies or Industries

Fleming, 1928) and Viagra (Bell et al., 1991).

such as FedEx (US), Papers & Parcels (India).

costs less than $5 compared to $150 in developed countries

facilities (imitating 5-star hotel facilities) by private

2. Sources of Innovation in the Social and Technological

migration etc. may indicate the need for change in existing

approach to convert waste products into animal feed,

innovative services such as mobile banking, ATM services

1. Explain the relationship between creativity,

Copyright © 2009 by B. R. Chapagain. All rights reserved. 6/17/20

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.