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TECHNOLOGY ENTREPRENEURSHIP

(ENT600)

UNIT 2:
CREATIVITY, INNOVATION &
TECHNOLOGY ENTREPRENEURSHIP

ENT600/UNIT 2: CREATIVITY 1
Discovery of opportunity at the right time and
place is the corner-stone of any entrepreneurial
success.
Technopreneurs need to be creative in discovering
new opportunities (in terms of products or
services) either through invention or innovation.
Innovation starts with a good idea, and a good idea
starts in the mind of a creative individual.
Guy Kawasaki says:
COPY SOMEBODY clever people have pretty
much invented every business model thats
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.

ENT600/UNIT 2: CREATIVITY 2
A proper understanding of these three terms is
crucial before we attempt to embrace and
practice innovation.

IDEAS COME FROM A NEW WAY OF THINKING, A


NEW WAY OF DOING THINGS
It all begins with an idea. An idea is the starting
point of creativity and innovation. Without
ideas there can never be anything creative or
innovative. Just like without cells there can be
no living things. Ideas are the building blocks
of creativity and innovation.

ENT600/UNIT 2: CREATIVITY 3
CREATIVITY - THE PROCESS OF GATHERING
& GENERATING NEW IDEAS.
Creativity may be defined as idea generation. Being
creative is to be able to generate or to come up with ideas.
Or even to gather ideas. The new idea can be simple or it
can be complex. When a child thinks of an idea, even if it
is a naughty one, he is being creative. Similarly, when a
scientist seizes on an idea, he is exercising creativity.
Creativity is hence a process, or a thinking process to be
exact. Creativity comes from the word create. What is
created or generated is the idea.

ENT600/UNIT 2: CREATIVITY 4
INNOVATION IS CREATIVITY IMPLEMENTED
Innovation, on the other hand, can be described as
creativity implemented. Innovation is putting the idea
into practice. While creativity is a thinking process,
innovation is a productive process. Innovation adds value
to the idea, which otherwise remains as a mere idea. If
the idea is likened to a seed, then innovation is the plant
that results from planting and nurturing the seed.

ENT600/UNIT 2: CREATIVITY 5
Creativity can be defined as the production of
new and useful ideas as well as the ability to
discover new ways of looking at problems and
opportunities.
It is the ability to use imagination to develop
new ideas, new things or new solutions. These
generation of ideas should lead to improved
efficiency or effectiveness of a system
Creative ideas often arise when creative people
observe established solutions, practices, or
products and think of something new or
different.
A process of assembling ideas by recombining
elements already known but wrongly assumed
to be unrelated to each other.

ENT600/UNIT 2: CREATIVITY 6
Technology entrepreneurship is at its best when the
creativity of a pool of people are consolidated as a
team effort.
Creativity should be encouraged among team
members or within an enterprise.
Six resources of creative team :
1. Knowledge in depth knowledge in the required domain and fields
2. Intellectual abilities-recognize connections, redefine problems, and
envision and analyze possible practical ideas and solutions.
3. Inventive -thinking about the problem in novel ways
4. Motivation towards action
5. Opportunity-oriented personality and openness to change.
6. Contextual understanding that supports creativity and mitigates
risks.

ENT600/UNIT 2: CREATIVITY 7
PROBLEM REVERSAL look at the opposite of
things, see things inside out, backwards or
upside down turn defeat into victory-create
negative statements-doing what everybody is
not doing
FORCED ANALOGY - gain new insights by
forcing a relationship between almost
anything-develop new ideas by looking at
product combination
ATTRIBUTE LISTING - break down the thing
into smaller parts or characteristics and
develop ideas to improve on them-look at
negative & positive aspect-identify
dissatisfaction

ENT600/UNIT 2: CREATIVITY 8
MIND MAPPING - starts in the centre of the page
with the main idea, and works outward in all
directions, producing a growing and organized
structure composed of key words and key images.

BRAINSTORMING generating ideas based on


the principle of suspending judgments.

LATERAL THINKING - exploring multiple


possibilities and approaches from different
perspective rather than pursuing in a conventional,
logical, step by step single approach. i.e. by
changing concepts and perceptions, and
generating new ones.

ENT600/UNIT 2: CREATIVITY 9
Creativity has three basic components:

Knowledge

Motivation

Creative thinking skills

ENT600/UNIT 2: CREATIVITY 10
Knowledge refers to a confident understanding of
a subject with the ability to use it if applicable. It
encompasses expertise, skills, familiarity and
practical & theoretical understanding of a subject.
Knowledge is gained by an individual through
study or experience

ENT600/UNIT 2: CREATIVITY 11
Creative thinking skills is the use of creative
intelligence to approach problems and find
solutions.
Four styles of creative intelligence:
Intuitive focuses on results and relies on
past experience to guide actions
Innovative concentrates on-problem solving,
is systematic, and relies on data
Imaginative visualize opportunities in an
artistic ways, enjoys writing and thinks out of
the box
Inspirational focuses on social change and
the giving of self towards an end

ENT600/UNIT 2: CREATIVITY 12
Motivation is a driving force that initiates one
to behave
Driving someone to do something
Two forms:
Extrinsic motivation
comes from outside a person.eg,
recognition, rewards, praises
Intrinsic motivation
a persons internal desire to do something.
Satisfaction is derived from overcoming
the challenge pr pleasure getting the task
done
ENT600/UNIT 2: CREATIVITY 13
Phase 1: Background or Knowledge Accumulation
Study the background of the subject matter
This may requires extensive reading,
discussion with experts, practitioners,
academicians, researchers in the field,
attending workshops and seminars,
exploring various unrelated areas etc.
These explorations expose entrepreneurs
to a variety of perspectives on the subject
matter.
Successful creation generally preceded by
investigation & gathering info

ENT600/UNIT 2: CREATIVITY 14
Phase 2: The Mind Incubation Process
An individual immerse himself or herself in the data,
allowing the subconscious mind to muse or ponder
on the information gathered.
Sleep on it getting away from the subject matter
and letting the subconscious mind working on it
allows creativity to spring forth.
Incubation can be induced by: engaging in mindless
activities such as painting the house or cutting grass,
meditate or play sports or board games. The
rationale is new ideas often emerge when we are
busy doing something unrelated to the matter.

ENT600/UNIT 2: CREATIVITY 15
Phase 3: The Idea Experience
Most exciting phase as this is when the person
discovers the solution or the idea.
The idea may appear out of the blue or it may
comes incrementally.
At this phase, the person begins to formulate
the solution.
Most of the time it is difficult to tell the
movement from phase 2 to phase 3.
To expedite movement to idea experience a
person can try to daydream and fantasies about
the project and always keep a notebook to
record emergence of ideas at odd hours.
ENT600/UNIT 2: CREATIVITY 16
Phase 4: Evaluation and Implementation
This phase is the most difficult and requires
courage, discipline & perseverance.
There are a lot of possibilities of failures.
Do not give up when face problems
There would be several failures before they
are successful.
Ideas are modified and tested before the
best workable idea is put into a final form
and successfully implemented.

ENT600/UNIT 2: CREATIVITY 17
Searching for the only one right answer
Focusing on being logical
Blindly following the rules
Constantly being practical
Viewing play as frivolous
Becoming overly specialized
Avoiding ambiguity
Fearing looking foolish
Fearing mistakes and failure
Believing that Im not creative

ENT600/UNIT 2: CREATIVITY 18
That doesnt sound too practical
Weve never done anything like that before.
Lets get back to reality
Thats the dumbest thing Ive ever heard.
We have already tried that years ago.
I dont see anything wrong with the way
were doing it now.
Are you kidding?
Where do you get these weird ideas?

ENT600/UNIT 2: CREATIVITY 19
Innovation is the specific instrument of
entrepreneurs, the means by which they exploit
change as an opportunity for a different business or
a different service (Drucker, 1985).

Innovation is the ability to apply creative solutions to


problems and opportunities to enhance or to enrich
peoples lives

Entrepreneurs innovate by converting opportunities


into marketable ideas (Kuratko, 2004).

ENT600/UNIT 2: CREATIVITY 20
Creativity is thinking new things while
innovation is doing new things.
Innovation is different from invention
You dont need to invent to innovate
Invention on the other hand is often a
product of research.
Invention is the extreme and riskiest form
of innovation and often associated with
development of a new or better product or
process (Burns, 2008).
Not all inventions lead to a commercially
viable output.

ENT600/UNIT 2: CREATIVITY 21
1. Radical Innovation
Provides significant technological breakthroughs
Creative/ destroying and with new/major
improvements
Is rare because of difficulty and risk
Requires substantial creativity
Best developed in separate units that start internal
ventures.
It is a major breakthrough as a result of
technological invention that offsets industry as a
whole.

ENT600/UNIT 2: CREATIVITY
Air Products oxygen separation technology
Analog Devices Air Bag Accelerometer
Dupont Biodegradable polymer, display
technology
General Electric Digital X-ray
General Motors Hybrid vehicle
IBM Silicon Germanium Devices, electronic
book
Nortel Networks Internet software rental
UTC/Otis Elevator Bi-directional elevator
Polaroid Memory storage device
Texas Instruments Digital light processor

ENT600/UNIT 2: CREATIVITY 23
2. Incremental Innovation
Most innovations are incremental due to inadequate
satisfaction of customer needs to solve problem
Builds on existing knowledge bases & driven by
technology advancement
Provides small improvements in the current product
lines
It is the technical improvement and extends the
application of radical and systems innovations.
Incremental innovations force organizations to
continuously improve their products and services and
keep abreast or ahead of the competition.

ENT600/UNIT 2: CREATIVITY
Mobile phone was regarded as a radical
innovation (compared to the traditional
stationed phone) when it was first introduced
to the market.

As technology progresses, several features are


progressively added to the phone to enhance
its features & functions.

These innovations on mobile phones are


considered as incremental innovations.

ENT600/UNIT 2: CREATIVITY 25
INTENSITY OF
INNOVATION

Radical Innovation Incremental Innovation


Fundamental rethink Steady improvements
Based on disruptive (new) Based on sustaining (existing)
technologies technologies
Experimentation and Obedience to cultural routines
play/make-believe
and norms
High risk
Moderate risk
Need to be nurtured for long
periods (LT) Can be rapidly implemented as
Create new markets immediate gains (ST)
Financial resource is high Develop customer loyalty
Financial resource is limited

ENT600/UNIT 2: CREATIVITY 26
INCREMENTAL INNOVATION LOW
Low market uncertainty
Low technical uncertainty
Low organization uncertainty

UNCERTAINTY
Low resource uncertainty

RADICAL INNOVATION
High market uncertainty
High technical uncertainty
High organization uncertainty
High resource uncertainty
HIGH

ENT600/UNIT 2: CREATIVITY 27
INVENTION - Creating a totally new product, service or
process. Examples: aeroplanes (Wright brothers), light
bulbs (Thomas Edison), personal GPS (Peter Maire)
EXTENSION - Introducing different application or new use
of existing product, service or process. Examples: laptop,
PDAs, walkman
DUPLICATION - Creative replication of an existing
concept. Examples: Franchise businesses such as
Chicken Rice Shop, pizza etc
SYNTHESIS - Combining existing concepts or factors
into a new formulation or use.Combining functions of a
telephone, video and camera. i.e.Adding convenience
stores, motels, restaurants to petrol stations

ENT600/UNIT 2: CREATIVITY 28
INTERNAL SOURCES
Unexpected Occurrence
Incongruities
Process Needs
Structural change

EXTERNAL SOURCES
Demographic Changes
Perceptual Changes
New knowledge

ENT600/UNIT 2: CREATIVITY 29
Unexpected occurrence
An opportunity can arise from an unexpected event/
discovery.
The Internet has opened up a lot of opportunities for
technopreneurs. For example, Dell Computer has grown
into a billion-dollar company from selling direct
personal computers to consumers through the Internet.
A virtual bookshop, Amazon.com Inc, has successfully
grown into a global company using website ordering
techniques.
It was purely coincident that it was Alexander Fleming
who discovered penicillin.
Similar with Christian Hansen who caught sight of an
odd yeast fungus in dark and damp staircase which later
have excellent quality in dairy sector.

ENT600/UNIT 2: CREATIVITY 30
Incongruities
The gap between what is and what should be;
arise whenever a difference exists between
expectations & reality.
A discrepancy between reality and what everyone
assumes is real, or between what is and what
ought to be, can create an innovative
opportunity.
For example, most people thought that the
invention of the television would diminished
cinema. However, cinemas are still attracting a lot
of moviegoers

ENT600/UNIT 2: CREATIVITY 31
Process needs
require entrepreneurs to innovate and answer a
particular needs such as time-saving devices.
When a weak link is evident in a particular process,
an opportunity is present to the person or company
willing to supply the "missing link".
For example, the introduction of sugar free products
and microwave oven.

ENT600/UNIT 2: CREATIVITY 32
Structural change
caused by industry and market changes due to new
developments such as advances in technology.
A business is ready for an innovative product, service
or approach to the business when the underlying
foundation of the industry or market shifts.
For example, rest homes are needed as children are
busy work and cannot look after their parents.

ENT600/UNIT 2: CREATIVITY 33
Demographic changes
Changes in the population's size, age structure,
composition, employment, level of education and
income can create innovative opportunities.
For example with the high level of computer literacy
in Singapore make Singapore an intelligent island.
Lot of companies distributing and manufacturing
personal computers & increasing number of schools
offering courses in computer software.

ENT600/UNIT 2: CREATIVITY 34
Perceptual changes
Innovative opportunities can develop when a
society's general assumptions, attitudes and beliefs
change.
Perceptions can cause mood swings and major
changes in ideas, for example fitness craze is
resulted by perceived needs to be healthy &
physically fit (jogging, aerobics, etc).
For example, people's feelings about personal
computers have shifted; initially regarded as simple
word processing machines, they are now used for
entertainment.

ENT600/UNIT 2: CREATIVITY 35
New knowledge
The basis of development of something brand new.
Advances in scientific and non-scientific knowledge
can create new products and new markets.
Advances in two different areas can sometimes be
integrated to form the basis of a new product.
For example, the advent of the flat-panel television,
portable hand phones, which can be used anywhere
on earth using satellite technology, intelligent
facsimile machines and portable personal
computers, provide lots of opportunities in this
area.

ENT600/UNIT 2: CREATIVITY 36
Innovation:
Is the process by which entrepreneurs convert
opportunities into marketable ideas.
Is a combination of the vision to create a good idea
and the perseverance and dedication to remain with
the concept through implementation.
Is a key function in the entrepreneurial process.
Is the specific function of entrepreneurship.

5
ENT600/UNIT 2: CREATIVITY 37
ENTREPRENEURIAL ENVIRONMENT

INVENTION

Ability to be Ability to spot


CREATIVE OPPORTUNITIES

INNOVATION

SUCCESS Source: Burns (2008)

ENT600/UNIT 2: CREATIVITY 38
Creativity the ability to develop new ideas
and to discover new ways of looking at
problems and opportunities. It is a process
of generating unique and useful ideas.
The creative idea flows to invention and
then to innovation.
Creativity is turned into a practical reality
such as a product through innovation.
Innovation the ability to apply creative
solutions to problems or opportunities to
enhance or to enrich peoples lives.

ENT600/UNIT 2: CREATIVITY 39
Entrepreneurship the result of a disciplined,
systematic process of applying creativity and
innovation to the needs and opportunities in
the marketplace.
Entrepreneurs connect their creative ideas with
the purposeful action and structure of a
business.
The entrepreneurial context as well as
perception of opportunity are necessary to turn
it into a business reality.
Hence, creativity must be linked to
entrepreneurship in order to turn it into
commercial opportunity to be exploited.

ENT600/UNIT 2: CREATIVITY 40

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