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TECHNOLOGY ENTREPRENEURSHIP

(ENT600)
UNIT 2:
CREATIVITY, INNOVATION
AND
TECHNOLOGY ENTREPRENEURSHIP

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

Introduction
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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

What is creativity?
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
(Adapted from Fredrick et al., 2006 and Dorf and Byers, 2005)

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

Creative ideas often arise when creative people


observe established solutions, practices, or
products and think of something new or different.
Examples Creating the NEW
o
Knowledge
o
Products
o
Processes
o
Services
o
Markets
o
Business models
o
Raw materials
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

Creativity & Role of Teams


Technology entrepreneurship is at its best when
the creativity of a pool of people are
consolidated as a team effort
Hence, creativity should be encouraged among
team members or within an enterprise.

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

Six Resources of
Creative Team/Enterprise
1. Knowledge in the required domain and fields
i.e. in-depth knowledge of your industry.

2. Intellectual abilities to recognize connections,


redefine problems, and envision and analyze
possible practical ideas and solutions.
3. Inventive thinking about the problem in novel
ways

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

Six Resources of
Creative Team/Enterprise (cont.)
4. Motivation towards action
5. Opportunity-oriented personality and
openness to change.
6. Contextual understanding that supports
creativity and mitigates risks.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

Creativity Techniques
PROBLEM REVERSAL look at the opposite
of things, see things inside out, backwards or
upside down.

FORCED ANALOGY - gain new insights by


forcing a relationship between almost anything.

ATTRIBUTE LISTING - break down the thing


into smaller parts or characteristics and develop
ideas to improve on them.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

Creativity Techniques
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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

Three Components of Creativity


Creativity has three basic components:
Knowledge
Motivation
Creative thinking skills
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

10

Three Components of Creativity:

Knowledge
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
Entrepreneurship Dept,
FBM (2009)

ENT600/UNIT 2: CREATIVITY

11

Three Components of Creativity:

Creative Thinking Skills


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 is able to visualize opportunities, is
artistic, enjoys writing, and thinks out of the box
Inspirational focuses on social change and the
giving of self toward an end
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

12

Three Components of Creativity:

Motivation
Motivation is in two forms:
Extrinsic motivation
comes from outside a person, whether
the motivation is a carrot or a stick
Intrinsic motivation
a persons internal desire to do
something. Satisfaction is derived from
overcoming the challenge.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

13

Phases of the Creative Process


Phase 1: Background
Accumulation

or

Knowledge

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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

14

Phases of the Creative Process


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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

15

Phases of the Creative Process


Phase 3: The Idea Experience
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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

16

Phases of the Creative Process


Phase 4: Evaluation and Implementation
This phase is the most difficult and requires
courage, discipline & perseverance.
There are a lot of possibilities of failures.
Ideas are modified and tested before the best
workable idea is put into a final form and
successfully implemented.

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

17

Blocks to Creativity

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

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

18

The Most Common Idea Stoppers

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?
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

19

What is innovation?
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).
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

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Creativity, Innovation & Invention


Creativity is thinking new things while
innovation is doing new things.
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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

21

INTENSITY OF
INNOVATION

Incremental Innovation

Steady improvements
Based on sustaining
technologies
Obedience to cultural routines
and norms
Can be rapidly implemented
Immediate gains
Develop customer loyalty

Radical Innovation

Entrepreneurship Dept, FBM


(2009)

Fundamental rethink
Based on disruptive
technologies
Experimentation and
play/make-believe
Need to be nurtured for long
periods
Worse initial performance,
potential big gains
Create new markets

ENT600/UNIT 2: CREATIVITY

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Examples of Incremental Innovations


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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

23

Examples of Radical Innovations


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

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

24

Impact of Innovation
Intensity on the Market

RADICAL INNOVATION
High market uncertainty
High technical uncertainty
High organization uncertainty
High resource uncertainty
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

LOW

UNCERTAINTY

INCREMENTAL INNOVATION
Low market uncertainty
Low technical uncertainty
Low organization uncertainty
Low resource uncertainty

HIGH
25

Basic Types of Innovation


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
SYNTHESIS Combining existing concepts or factors into a
new formulation or use.
Example: combining functions of a telephone,
video and
camera.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

26

Important Technological Innovations


1793 1829

1830-1900

1901-1939

Cotton gin

Telegraph

Air Conditioner

Practical
Steamboat

Vulcanized Rubber

First Flight

Safety Elevator

Model T (Ford)

Internal
Combustion Engine

Liquid fueled
Rockets

Telephone

FM Radio

Phonograph

Jet Engine

Radio

Xerography

Steam powered
locomotive for
passengers and
freight

Helicopter
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

27

Important Technological Innovations


1940-1949

1950-1969

1970 ->

Color TV

Sputnik 1 (USSR)

Microprocessor

General Purpose,
Electronic, Digital
Computer

NASA

Recombinant DNA

Integrated Circuit

Laser Printer

Supersonic Flight

Operable Laser

MRI Scanner

Transistor

First Man In Space

Space Shuttle

Instant Camera

Telstar Satellite

Scanning Tunneling
Microscope

Jet Airliner

Fiber Optics
Apollo lX

Entrepreneurship Dept, FBM


(2009)

ENT600/UNIT 2: CREATIVITY

28

Sources of Innovation
Within the company or industry
Unexpected occurrence - unexpected discovery
such as penicillin
Incongruities the gap between what is and what
should be; arise whenever a difference exists
between expectations & reality.
Process needs require entrepreneurs to innovate
and answer a particular needs such as time-saving
devices
Structural change caused by industry and market
changes due to new developments such as
advances in technology.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

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Sources of Innovation
Within the social environment
Demographic changes for example
changes in population, consumer preference
and geographical locations.
Perceptual changes perceptions can
cause mood swings and major changes in
ideas, for example fitness craze is resulted by
perceived needs to be healthy & physically fit
New knowledge the basis of development
of something brand new.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

30

Linking Creativity, Innovation &


Entrepreneurship
ENTREPRENEURIAL ENVIRONMENT
INVENTION
Ability to be
CREATIVE

Ability to spot
OPPORTUNITIES
INNOVATION

SUCCESS
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

Source: Burns (2008)


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Linking Creativity & Entrepreneurship


Creative idea flows to invention and invention
flows to innovation.
Creativity can also directly leads to innovation.
Creativity is turned into a practical reality such
as a product through innovation.
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.
Entrepreneurship Dept, FBM
(2009)

ENT600/UNIT 2: CREATIVITY

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