Creativity, Innovation &

Entrepreneurship

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Creativity; Past, Present & Future…..

“How Can we Know Where We’re Going

Without Knowing First Where We ‘ve Been?”

Enterprise and its Business Environment

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Creativity: What is it???……

“The ability to create and innovate has been

observed throughout history and even though the
fundamental tools may have changed the ability
has been prevalent in every civilisation”
(Hisrich, Peters and Shepherd, 2005, p. 8).

“May our species be resurrected and awakened

by the Spirit of Creativity for this coming century”
(Fox, 2002).
Enterprise and its Business Environment
© Goodfellow Publishers 2016
The Past…….

“Throughout history, the process of creation whether; paintings

or musical compositions were thought of as ‘spiritual
experiences in the service of whatever muse held the artist in
her thrall”
(Thorsby, 2001, p. 95).

“The artist was a channel for a superior power, creativity

a gift from the gods, and the imagination a divine
spark”
(Thorsby, 2001, p. 94).
Enterprise and its Business Environment
© Goodfellow Publishers 2016
A Gift from the God or a New Phenomenon?
Or…Could Both Be True????......
Maybe?
Natures Creation? or Human Creation
Venoms & Poison or Anaesthetics
The Leaf or Solar Panel (energy from light)
The Brain or Computer/Electronic Circuitry
DNA or Computer Program
The Ear Drum or Microphone
The Eye or Camera (lens, focus, iris, film)
Eye Lid or Windshield Wiper
Incisor Teeth or Knife
The Heart or Pump
Spinal Chord/Nervous system or Communication/Telephone Cables
Birds or Music
Enterprise and its Business Environment
© Goodfellow Publishers 2016
Creativity

“There is no doubt that creativity is the most

important human resource of all. Without
creativity there would be no progress, and
we would be forever repeating the same
patterns”
(Edward de Bono).

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Two views of Creativity

The Elite View

V’s
The Developmental View
Enterprise and its Business Environment
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The Elitist View…
• Getting New & Valuable Ideas
• A Rare Talent
• Creating Great Works of Art or Scientific
Discoveries
• Unable to be Taught
• Not Relevant in My Job/ Organisation
• A Lonely Individual Process
Enterprise and its Business Environment
© Goodfellow Publishers 2016
The Developmental View…
• Available to Everyone
• Evident in Personal & Modest Insights
• Released Through Training & Development of
Personal Potential
• Within the Scope of All Jobs
• Encouraged or Discouraged Within Groups
According to their Climate
• Escape from ‘Personal Stuckness’ & Reveals
Itself in Results Which are Original & Potentially
Valuable
Enterprise and its Business Environment
© Goodfellow Publishers 2016
Which View Do You
Agree With?

Enterprise and its Business Environment

© Goodfellow Publishers 2016
The Reality…..
• Creativity Is Not Exclusively for ‘Elite’
People
• It Can be Developed in All Persons
• Creativity is a Personal Problem-solving
Process of a Non-routine Kind
• It Can be Learned, Practiced &
Successfully Applied by all – in Every
Walk of Life
Enterprise and its Business Environment
© Goodfellow Publishers 2016
 Three Components of Creativity

• Domain Relevant Skills

• Creative Processes

• Intrinsic Task Motivation

Enterprise and its Business Environment

See; Amabile, Philips & Collins, © Goodfellow Publishers 2016
Stages in Creative Thought
• Preparation

• Incubation

• Insight

• Evaluation

• Elaboration
Enterprise and its Business Environment
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• So What Is An
Innovation?

Enterprise and its Business Environment

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What is Innovation?
• Newness & Adding Value
• Functional Value: Technology-Driven
• Symbolic Value (Meaning): Design-Driven

• Degree of Newness:
• Radical Innovation
• Incremental Innovation

Enterprise and its Business Environment

© Goodfellow Publishers 2016
What is A New Innovation?
• What do you define as new?
• Can mean different things to different people
• New to the world (10%)
• New to the firms (20%)
• Additions to existing products/process (26%)
• Improvement and revisions to existing products/process (26%)
• Repositioning (with different purposes) (7%)
• New to the market (geography + segments)
• New to the season

• Cost reduction (11%)

(See; Booz, Allen & Hamilton, 1982; Griffin, 1997)
Enterprise and its Business Environment
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New Meaning, New Concept…. (1)

Enterprise and its Business Environment

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New Meaning, New Concept… (2)

Enterprise and its Business Environment

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Creative New meaning with New Innovation

Enterprise and its Business Environment

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Revolutionise Existing Concepts

Enterprise and its Business Environment

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Not all Innovations are Successful…

Innovation = Invention + Commercialization

Enterprise and its Business Environment
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Neither are All Fashion Trends

Enterprise and its Business Environment

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What is Entrepreneurship?

“Entrepreneurship is the identification,

evaluation, and exploitation of opportunities”
(Shane, 2011, p. 143).

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Historic Evolution on Entrepreneurship
• Entrepreneurial strategies are not a twentieth-century
phenomenon.
• The word entrepreneur originates from a 13th century French verb,
entreprendre, meaning “to do something” or ‘to undertake’ (Sobel,
2011, p. 2).

• Marco Polo established trade routes to the Far East, he

demonstrated risk-taking behaviour we associate with
entrepreneurship today (Osborne, 1995, p. 4). The ‘fit’
between his skills and the environmental opportunity is a
perfect illustration of a true entrepreneurial strategy, and in
particular is more relevant to our understanding of
entrepreneurship, with its increasing global scope (Ibid, p.
4).
Enterprise and its Business Environment
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Marco Polo’s Trade Routes…

Enterprise and its Business Environment

© Goodfellow Publishers 2016
What Does it Mean Today?
• Dictionary definition
• The owner or manager of a business
enterprise who, by risk and initiative, attempts
to make profits
• Popular view:
• ‘Arthur Daly’, ‘Del Boy’
• Original derivation:
• ‘entreprendre’ (French): to undertake

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Definitions of Entrepreneurship
• “Much has been written on the complex subject
of entrepreneurs and entrepreneurship, and
many inconsistent definitions have been brought
forth and explored in great detail. Yet the
entrepreneur is still one of the most ‘intriguing
and elusive characters to constitute the subject
of analysis” (Baumol, 1968, p. 64).
• “All who claim to have caught sight of him report
he is enormous, but disagree on his particulars”
(A.A. Milne. In Kirby, 2003, p. 11).
Enterprise and its Business Environment
© Goodfellow Publishers 2016
However…..

“Entrepreneurship is essentially an
economic phenomenon, and ‘involves a
nexus of two phenomena: the presence of
lucrative opportunities and the presence of
enterprising individuals”.
(Venkataraman, 1997)

Enterprise and its Business Environment

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• Who are these
Individuals?

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Historical Views from Economics
• Economics tends to marginalize the entrepreneur
• Cantillon and Say (from the perspective of an agrarian
economy) – someone who makes buying and selling
decisions and in so doing is the bearer of risk
• ‘Austrian school’: Kirzner – an ‘alert’ middleman who spots
opportunities to facilitate exchange (arbitrage)
• Schumpeter: an innovator – the entrepreneur brings change
through the introduction of new technological processes or
products
• Knight: someone who undertakes risk, with profit being the
reward for bearing uncertainty
• Shackle: emphasises the role of creativity in the
entrepreneurial process
• Casson: someone with the skills to organise or reallocate
Enterprise and its Business Environment
resources © Goodfellow Publishers 2016
Economic Theories of Entrepreneurship
Technologica
Capitalist – l Knowledge
Risk Taker –
Adam Smith, – Jeremy
Richard
1776, David Bentham,
Cantillion, 1755
Ricardo, 1871 1838
Capi
Risk Taker & Ama talist –
Economic sa
Innovator – 1866 Walker,
Change – ,F
Von Thunen, Carl Menger, A. W rancis
alker
1850 1871 1887 ,
Risk
T
Novel Unc aker &
Avo ertainty ss–
Resource or– e
rt n l
Fran idance t
va h Ale a
Combination k Kn – no
In osep er, Isre er,
192 ight, et n
– Alfred J p Kirz 73
1
c hum 2 19
Marshall, S 195
1920
Enterprise and its Business Environment
© Goodfellow Publishers 2016
Definitions continued
• Note: None of These Definitions Sees the
Entrepreneur as the Creator of a Business
• Contemporary Definitions:
• Distinguish Between ‘Enterprise’ & ‘Entrepreneurship’
• Enterprise:
• Using Skills Such as Initiative, Independence,
Creativity, Problem-solving, Identifying & Working on
Opportunities, Leadership & Acting Resourcefully to
Apply Creative Ideas & Innovations to Practical
Situations to Effect Change

Enterprise and its Business Environment

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• Which Entrepreneurs Can
You Name?

Enterprise and its Business Environment

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Revolutionaries continued
• How have entrepreneurs affected your life in the past 24
hours?
• Have you used your computer? (personal computers, PC
software: Intel, Microsoft, Dell, Apple)
• Have you surfed the web? (web browser – Netscape, Google,
AOL)
• Have you made a purchase over the internet (internet retailers,
eBay, PayPal)
• Have you made a mobile phone call? (cellular phone services;
voice mail IT services)
• Have you used a hand held wireless communication device (a
‘blackberry’)? (RIM)
• Have you taken your car in for a fast oil change or MoT?
(KwikFit)
• Have you taken a budget flight? (Easyjet, Ryan Air)
Enterprise and its Business Environment
© Goodfellow Publishers 2016
 Revolutionaries … continued
• Where have you bought your clothes? Have you put on trainers
(Nike, Reebok), put on waterproof clothes (WL Gore, Timberland)?
• Have you bought a coffee (Starbucks)
• Have you bought some DIY products (Home Depot, B&Q)
• Have you bought any stationary? (Staples)
• Have you listened to your iPod? (Apple)
• Have you watched a 24 hours news channel? (CNN)
• Do you purchase ethically (Bodyshop)?
• Have you played a round of golf? (Calloway Golf)
• Have you been to a fitness club (Fitness First, David Lloyd)?
• Have you bought a copy of ‘Big Issue’? (social entrepreneurship)
• Have you donated anything to a charity shop? (e.g. Bethany Trust)

Enterprise and its Business Environment

© Goodfellow Publishers 2016
• Why Do They Do What
They Do?

Enterprise and its Business Environment

© Goodfellow Publishers 2016
So Why Choose to be an Entrepreneur?
• Luke Johnson (FT 25/4/07)
• Freedom: “starting and running a business is the
best way of controlling your destiny”
• Changing the world: “creating an enterprise is
perhaps the most effective way of making a positive
difference to society that has ever been devised.”
“What could be more important than creating jobs?”
• Progress: “new business is about upsetting the
status quo, thereby leading to progress. I think that
is a virtuous mission”

Enterprise and its Business Environment

© Goodfellow Publishers 2016
continued
• Social mobility; “business is a fantastic way for
someone from a modest background … to
improve their life and get ahead.”
• Creative destruction: inefficient and loss making
companies die … but productive companies tend
to create a virtuous circle: … attract talent, pay
more, make investors good returns, and can afford
to launch better products. This is called progress.”
• Creating a better future: “the inventive ability of
entrepreneurs to find solutions to … problems”
such as global warming and so forth.
• Entrepreneurship is about striving for a better
future – not just dreaming.
Enterprise and its Business Environment
© Goodfellow Publishers 2016
In Economic Terms….

• “There has never been a better time

to practice the art and science of
entrepreneurship”.
(Bygrave and Zacharakis)

Enterprise and its Business Environment

© Goodfellow Publishers 2016
UK SME Statistics: Start of 2013
• There were an estimated 4.9 million businesses in the UK which employed 24.3 million
people, and had a combined turnover of £3,300 billion
• SMEs accounted for 99.9 per cent of all private sector businesses in the UK, 59.3 per
cent of private sector employment and 48.1 per cent of private sector turnover
• SMEs employed 14.4 million people and had a combined turnover of £1,600 billion
• Small businesses alone accounted for 47 per cent of private sector employment and
33.1 per cent of turnover
• Of all businesses, 62.6 per cent (3.1 million) were sole proprietorships, 28.5 per cent
(1.4 million) were companies and 8.9 per cent (434,000) partnerships
• There were 891,000 businesses operating in the construction sector - nearly a fifth of
all businesses
• In the financial and insurance sector, only 27.5 per cent of employment was in SMEs.
However, in the agriculture, forestry and fishing sector virtually all employment (95.4
per cent) was in SMEs
• Only 22.5 per cent of private sector turnover was in the arts, entertainment and
recreation activities, while 92.7 per cent was in the agriculture, forestry and fishing
sector
• With 841,000 private sector business, London had more firms than any other region in
the UK. The south east had the second largest number of businesses with 791,000.
Together these regions account for almost a third of all firms
Enterprise and its Business Environment
(Federation of Small Businesses, 2013) Publishers 2016
© Goodfellow 40
Small and Medium Sized Enterprises (SMEs)
The main factors determining whether a company is an SME are:

Company category Employees Turnover or Balance sheet total

Medium-sized < 250 ≤ € 50 m ≤ € 43 m

Small < 50 ≤ € 10 m ≤ € 10 m
Micro < 10 ≤€2m ≤€2m

(European Commission, 2013)

With the UK government adopting the definition of SMEs as -

Micro firm: 0-9 employees

Small firm: 0-49 employees
Medium firm: 50-249 employees (Greene and Mole, 2006).
Enterprise and its Business Environment
© Goodfellow Publishers 2016 41
 Importance of SMEs
• SMEs play an important role in the change of
technology and innovation
• SMEs create an additional sense of competition whilst
also, providing a mechanism for regeneration
• SMEs contribute to international competition
• SMEs create jobs
• SMEs contribute to economic growth

Enterprise and its Business Environment

© Goodfellow Publishers 2016 42
What Explains this Growth?
• Structural shift from manufacturing (large firm
dominated) to services (small firm dominated)
• Growth in personal, flexible, tailor-made services
• Restructuring by large firms – focus on core activities,
sub-contract non-core activities
• Technological change
• Scientific discoveries exploited by small firms
• Production and IT technologies have reduced the role of
economies of scale
• Low cost and access to communications technology (‘the great
equaliser’): access to information, distribution (‘the long tail’)
Enterprise and its Business Environment
© Goodfellow Publishers 2016
Growth Continued
• Importance of human capital rather than financial capital as
the basis for competitiveness
• Consumer choice – reaction against mass produced products
and services: individualism, demand for authenticity, natural
products (e.g. real ale beer) – growth in market niches
• Deregulation of markets: e.g. in airlines, telecoms, media
• Personal choice – ‘rebellion’, reaction against working in large
impersonal organisations, want to control own destiny
• Availability of finance – venture capital
• Availability of support, advice and education

Enterprise and its Business Environment

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• How do they do it?

Enterprise and its Business Environment

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Timmon’s (2007) Model

Enterprise and its Business Environment

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An Enterprise Needs
• According to Timmons & Spinelli (2007);
• Opportunity
• Lead Entrepreneur & A Team
• Resource Parsimony & Creative Use of
Resources
• Fit & Balance
• Integrated & Holistic
• Sustainable

Enterprise and its Business Environment

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The Entrepreneurial Process

Enterprise and its Business Environment

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So…
• Do Ideas = Opportunities?
• Do Problems = Opportunities?
• Reality - An Idea is Only an Opportunity when
It:
• Adds Value to Consumer
• It Solves a Problem
• It Can Make Some Money ( Communicate Some
Value to Other Stakeholders)
• It is a Good “Fit” with the Entrepreneurial Team
• Timmons& Spinelli (2007)
Enterprise and its Business Environment
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Ideas Can Start with Solving Problems
• Solving “Points of Pain”:

• To Notice Inefficiency, Inconveniences, &

Other Forms of “Points of Pain” & Use these
to Build New Business Opportunities

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Ideas Start With Solving Problems
• Any Problems are Big Opportunities.

• No Problems, No Solutions, & No Reasons

for Firms to Exist.

• No One Pays You to Solve a Non-exist

Problem (Vinod Khosla, Sun Microsystems)
Enterprise and its Business Environment
© Goodfellow Publishers 2016
Example (1): Rise of Levi’s
• Problem:
• Working Clothes for Mining Workers do Not
Last

• Solution:
• First Pair of Jeans

Enterprise and its Business Environment

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• The Point of Pain: A Direct Solution
http://kck.st/LEbznj

Enterprise and its Business Environment

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What is Your Opportunity for the Pizza Business?

Enterprise and its Business Environment

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What is Your Opportunity for the Pizza Business?

Enterprise and its Business Environment

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Locating a Business Idea

Mapping: where to look for?

Enterprise and its Business Environment

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Searching for Business Opportunity in a
360 Degree Space

Enterprise and its Business Environment

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Locating Business Ideas
• Products: Create Entirely New Products or New Services
• Solutions: Solve “End-to-end” Problems for Customers
• Customers: Find New Customer Segments or Unmet Needs
• Customer Experience: Change How Customers Interact With You
• Revenue Model: Change How You Get Paid
• Processes: Innovate on Operating Processes
• Value Chain: Change Position or Scope of Participation
• Logistics/Supply Chain: Change the Way You Source & Ship
• Channels: Change How you Go To Market with your Products
• R&D: Create New Technologies, Materials, Products or Processes
Enterprise and its Business Environment
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There are Other Techniques to
Screen Your Idea….

Enterprise and its Business Environment

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Screening
• Systematic approach but avoid the paralysis with
analysis approach.
• Should screening be the same for every business
or change depending on the context?-Service
company’s think that ideas should be generated
as required rather than an ongoing basis but still
use financial, marketing, management, strategy
and resource implications ( Kelley & Storey 1999)
• Hard and fast rules presented by writers.

Enterprise and its Business Environment

© Goodfellow Publishers 2016
Case Studies of Successful Businesses
• http://www.growingbusiness.co.uk/ones-to-
watch?page=6

• https://www.nationalfield.com/
Enterprise and its Business Environment
© Goodfellow Publishers 2016
True Entrepreneurial, Creative & Innovative Acts
• Dare To Dream!!!
• Be Creative… Do Things Which Others
Refuse! No Compromise Between Dream
& Capabilities
• The New Ones Can Start from the
Forgotten Old Ones Stop & Look Around

Enterprise and its Business Environment

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Don’t Limit Yourselves

Enterprise and its Business Environment

© Goodfellow Publishers 2016
 Additional Resources....
• Berger, B. (1991) The Culture of Entrepreneurship. CA: ICS Press.
• Adair, J (2007) The Art of creative Thinking London. Kogan Page
• Antoncic, Bostjan & Hisrich, Robert D ( 2003) Clarifying the intrapreneurship concept Journal of Small Business & enterprise Development
Vol 10 no 1, pp7-24
• Bilton, C. (2007) Management and Creativity: From Creative Industries to Creative Management. 1st Edition, Oxford: Blackwell Publishing.
• Christensen C, Anthony, Roth, E. (2004) Seeing What's Next: Using the Theories of Innovation to Predict Industry Change, Harvard
Business School Press.
• Davidsson, P. (2006) The entrepreneurial process. In Enterprise and Small Business: Principles, Practice and Policy, S. Carter and D.
Jones-Evans, eds. 2nd Edition, Financial Times/Prentice Hall: Hanslow.
• De Bono, E.
• Dimov, D & De Clercq,D ( 2006) Venture Capital Investment Strategy andPortfolio Failure Rate: A Longitudinal Study Entrepreneurship,
Theory and Practice
• Fox, M. (2002) Creativity: Where the Divine and the Human Meet, 1st Edition. New York: Tarcher/Putnam.
• Goffin, K., & Mitchell, R. (2005) Innovation Management, Palgrave Macmillan.
• Hisrich, R.D., Peters, M.P., Shepherd, D.A. (2005) Entrepreneurship, 6th Edition, USA: McGraw Hill Irwin.
• Howells, J. (2005) The Management of Innovation and Technology, Sage.
• Johnson, Steven (2010) Where good ideas come from
• Kelley & Storey (2000) New service Development: initiation strategies, Int Journal of Service management. Vol 11 no1pp45-62
• Lumsdaine, E., & Binks, M. 2007. Entrepreneurship: From Creativity to Innovation, Oxford: Trafford Publishing.
• McDonald, L (2009) Wild drinks: The hedgerow Martini” The Times May 30 2009 available from
http://www.timesonline.co.uk/tol/life_and_style/food_and_drink/drinks/article6365156.ece accessed 23 January 2011
• Piercy, N. (2002) Market Led Strategic Change, Third Edition, Butterworth Heinemann.
• Porter & Kramer(2011) Creating shared Value HBR Jan/Feb 2011
• Stewart, Anne(2011) Where do great ideas come from? Inc magazine [online] available from
http://www.inc.com/magazine/20021015/24773_pagen_3.html accessed 21 January 2011
• Stokes, D,. Wilson, N,. (2006) Small Business Management & Entrepreneurship, Ch4, pp100 – 139 Thomson Learning.
• Throsby, D. (2001) Economics and Culture. Cambridge: Cambridge University Press
• Timmons, Jeffry A & Spinelli, Stephen (2007) New Venture Creation McGrawHill. ch 3 & 4

• WEBSITES ACCESSED………
• http://www.sie.ac.uk/60secondshorts/videos.php
• http://www.creax.com/csa/frame.asp?session=zero
Enterprise and its Business Environment
© Goodfellow Publishers 2016
Reading
Fillis, I. (2002) An Andalusian Dog or a Rising Star?
Creativity and the Marketing/Entrepreneurship Interface.
Journal of Marketing Research, 18(1), 379-395.
Bygrave, W.D. (1989) The entrepreneurship paradigm (1):
a philosophical look at its research methodologies,
Entrepreneurship Theory and Practice, 14(1), 1-26.

Enterprise and its Business Environment

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