UNIT II

ENTREPRENEURSHIP,
CREATIVITY AND
INNOVATION

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 CREATIVE PROCESS
• Edward De Bono, 1992 – creativity is a process that can
be developed and improved.
• Everyone possessed a certain degree of creativity, some
of us are more creative, and some are a little less.
• Creative process involves looking with different
perspectives on unique relationships of the
surroundings.

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 PHASES OF CREATIVE PROCESS
• Phase 1: Background or Knowledge Accumulation
• Involves seeking and gathering of information through observations,
readings, conversations with others, attending seminars, meetings and
workshops, etc.
• Phase 2: The Incubation Process
• Entrepreneurs deliberately allows creativity to spur by breaking-away
from the problem and let the subconscious mind work on it.
• Phase 3: The Idea Experience
• Discovery of the idea or solutions to the problems (eureka factor).
• Phase 4: Evaluation and Implementation
• Evaluation and implementation of workable ideas requires high level of
persistency and patience. Entrepreneurs do not easily give-up when
they face obstacles.

Source: Adopted from Entrepreneurship A Contemporary Approach, Donald F. Kuratko and Richard M. Hodgetts,
5th Ed. Harcourt, 2001
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 COMPONENTS OF CREATIVITY
a. Creative thinking skills
– The use of creative intelligence to approach problems
and find solutions
b. Knowledge
– Four styles of creative intelligence:
• Intuitive
• Innovative
• Imaginative
• Inspirational
c. Motivation
• Extrinsic
• Intrinsic

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 COMMON CREATIVITY TECHNIQUES
A. Brainstorming (Alex F. Osborn)
B. SCAMMPERR (Micheal Michalko)
C. Lateral thinking (Edward De Bono)
D. Mind mapping (Tony Buzan)
E. Problem reversal (Charles Thompson)
F. Attribute listing

Source: Adopted from http://www.mycoted.com/Category:Creativity_Techniques

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 A. Brainstorming (Alex F. Osborn )
• Organize the group of ideally 4-8 students (per group).
• Choose the topic (problem) and write it on a whiteboard. Lecturer must
make sure that everyone understands the problem or issue.
• Remember the rules:
i. Do not criticize. All ideas are welcome and valid.
ii. Do not limit the number of ideas. The aim of brainstorming is to get
large number of ideas.
iii. Do not filter /censor any ideas. Keep the brainstorming session
flowing.
iv. Listen to other ideas and use it to generate other ideas.
v. Do not discuss or question as it could stop the flow of ideas.
• The lecturer can conduct the session either in an unstructured way (any
group can give ideas at any time) or structure (going round the group for
ideas).
• The lecturer must be around to enforce the rules and write down all the
ideas.
• Lecturer should clarify and conclude the session.
• Lecturer should get a consensus of the best ideas produced from the session
(at least two).

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 B. SCAMMPERR (Micheal Michalko)
• A checklist that could assists students to imagine various changes they can make to
an existing products/things to create a new one.
• SCAMMPERR stands for:
 S - Substitute - components, materials, people
 C - Combine - mix, combine with other assemblies or services, integrate
 A - Adapt - alter, change function, use part of another element
 M - Magnify - Make it enormous, longer, higher, overstated, added features
 M - Modify - increase or reduce in scale, change shape, modify attributes (e.g.
colour)
 P - Put to another use
 E - Eliminate - remove elements, simplify, reduce to core functionality
 R - Rearrange - change the order, interchange components, change the speed or
other pattern.
 R - Reverse - turn inside out or upside down.

• Students can use these changes as starting points for Lateral Thinking

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 C. Lateral Thinking (Edward de Bono)
• Lateral Thinking – seeking to solve problems by unorthodox
or apparently illogical methods (Concise Oxford Dictionary).
• Lateral thinking - moving sideways when working on a
problem to try different perceptions, different concepts and
different points of entry (get us out of the usual line of
thought).
• Lateral Thinking can be used in two approaches:
• Specific: A set of systematic techniques used for changing
concepts and perceptions, and generating new ones.
• General: Exploring multiple possibilities and approaches
instead of pursuing a single approach.

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 D. Mind Mapping (Tony Buzan)
• also called ‘spider diagrams’ which represents ideas, notes,
information, etc. in far-reaching tree-diagrams.
• To draw a mind-map:
• Put down a large sheet of paper and write a short heading for
the subject/theme in the centre of the page.
• For each major sub-topic start a new major branch from the
central subject/theme and label it.
• Each sub-sub-topic, creates a subordinate branch to the
appropriate main branch
• Carry on in this way for ever finer sub-branches.
• It may be appropriate to put an item in more than one place,
cross-link it to several other items or show relationships
between items on different branches. This can be done
through colour coding, type of writing etc.

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 E. Problem Reversal (Charles Thompson)
The Method
a. Create negative statements. For example, in dealing with Customer Service
issues, ask students to generate a list of all the ways to make customer service
bad.
b. Doing what everybody else doesn't. For example, food delivery using “mangkuk
tingkat” or selling women accessories using vending machine.
c. Make a list of pairs of opposing actions which can be applied to the problem.
Make students ask themselves "What if I ........" and plug in each one of the
opposites. A small sample:-
i. Stretch it/Shrink It
ii. Freeze it/Melt it
iii.Personalise it/De-personalise it
d. Change the direction or location of your perspective.
e. “Flip-flop” the results. For example, if we want to increase sales, think about
decreasing them. What would you have to do?
f. Turn defeat into victory or victory into defeat. For example, if something turns
out bad, think about the positive aspects of the situation. If I lost all of the files
off this computer, what good would come out of it? Maybe I would spend more
time with my family?! Who knows!
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 F. Attribute Listing
Steps:
1. Identify the product or process you are dissatisfied with or wish to improve.

2. List its attributes. For a simple physical object like a pen, this might include:
material, shape, target market, colors, textures, etc.

3. Choose, say, 7-8 of these attributes that seem particularly interesting or

important.

4. Identify alternative ways to achieve each attribute (e.g. different shapes:

cylindrical cubic, multi-faceted….), either by conventional enquiry, or via any idea-
generating technique.

5. Combine one or more of these alternative ways of achieving the required

attributes, and see if you can come up with a new approach to the product or
process you were working on.

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 BLOCKS TO CREATIVITY
• Blockages to creativity need to be recognized and
eliminated so that it will smooth the way to creativity.

CLASSIFICATION OF BLOCKS ARE :

A. Perceptual
B. Emotional
C. Cultural
D. Environmental
E. Intellectual/Conceptual
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 A. Perceptual Blocks
1. Prevent problem recognition, limiting the problem.

2. Inability to see problems from different perspectives

3. Stereotyping, missing the connections or associations

4. Not thinking outside the box

5. Literal thinking

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 B. Emotional Blocks
1. Fear of failure can paralyse us if we think what we are doing won’t
be good enough.

2. Will lead to procrastination and project abandonment.

3. Most blockages are attitudinal or psychological.

4. Inability to incubate can lead to other fears such as:

i. fear of problem,
ii. fear of work,
iii. fear of fun,
iv. fear of exploring and
v. fear of abandonment.
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1 Fear of problem We are inclined to worry when we view our situation as a
problem to be solved
2 Fear of work Lazy to merge or seek new ideas
3 Fear of fun Believe that fun is childish and a waste of time, yet some of
the best ideas come when we are relaxing or fooling around.
4 Fear of exploring Uncertainties of the unknown, rigid people feel
uncomfortable to be adventurous and discover because they
have to leave the safety of their known world
5 Fear of abandonment Comes from the need to conform. Conformity brings new
acceptance while deviating from normal path or escape show
our independence and make us stand out.
6 Judging rather than “Oh, that won’t work”
generating ideas like : “We have tried that before. It didn’t work out well”

7 Dislike new
challenges

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 C. Cultural Blocks
1. Tradition is to be maintained.
2. Playfulness is only for children
3. Fantasies or dreams are for crazy people
4. Comfortable zone

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 D. Environmental Blocks
1. Environmental blockages are those impose upon us by external
factors. These include the working atmosphere, amount of
stress on individual, organizational culture, supervisory practices
and even the physical surroundings of our workspace.

2. Blockages can also arise from physical and mental exhaustion.

3. Examples:
I. Lack of corporation and trust among colleagues (lack esprit de corp)
II. Bosses who practice autocratic management
III. Too many distractions
IV. Lack of financial and top management support to bring ideas to
implementation

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 E. Intellectual/ Conceptual Blocks
1. Failure to understand and acknowledge problems that need
to be solved.

2. “I don’t know; “Don’t’ ask me”

3. “Try asking someone else”

4. Many creative solutions are hidden by mistaken assumptions.

Therefore, people need to be more open minded and
receptive.

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 TYPES OF INNOVATION
• There are 3 types of innovation :
A. Technological Innovation
B. Operational Innovation
C. Organizational Innovation

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 A. Technological Innovation
• These are breakthrough inventions that have wide-reaching
impact and influence which benefit society and business.

• Major breakthroughs can be radical and disruptive for people,

society, businesses and countries or the whole world.

• Example; the internet.

• They can change the way people live their lives, the way
companies do business and the way countries govern and
behave
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• Example of major technological breakthroughs are :
– the wheel, •wireless technology,
•the computer,
– the printing press, •the internet,
– steam power, •high performance materials like plastic, fiber
– electricity, board, nuclear power and
so on.

• Smaller technological inventions have less impact but still have significant
benefit to certain users.

• Example of small technological inventions are:

– •electric toys,
the paper cup,
•remote control toys,
– the ball-point pen, •computer games,
– the electric toothbrush, •electric pencil sharpener
– the electric razor, and
– hair dryers, •so on.
– the garden hose,

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 B. Operational Innovation
1. Operational Innovation is smaller, more process-oriented Innovation

2. Tends to be incremental in nature

3. Doesn’t necessarily change products or services or how they are used and
most of it goes unnoticed by the public, but often it is the means to
improved products and lower operating costs.

4. This type of Innovation happens by the very act of people doing their
work… “Hmm, what if we try doing it this way instead?”

5. Have much smaller impact, per invention, compared with breakthrough

technological innovation, but cumulatively their effect can be enormous.
Their effect builds and grows over time.

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 Operational Innovation includes:
1. New systems or refinements to existing ones.
– For example, internal systems and methods for many aspects of work such
as staff administration, purchasing, distribution and sales.

2. Small improvements in operations or processes.

– For example, changes to make equipment run more effectively.

3. Minor improvements or developments that will enhance it to a

technological product.

4. Innovative new business practices.

1. For example, new ways for thinking strategically.

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 C. Organizational Innovation
1. Organizational Innovation is where a company or organization itself
is innovative

2. In an innovative company or organization everyone knows his or

her specific role in innovation

3. It can be purposely built through putting organizational culture as

the operational style or mode to get things done.

4. Innovative companies don’t just produce innovative goods and

services. They use innovative methods in everything they do.

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 How To Instill Organizational
Innovation
a. Developing and instituting an innovative work culture
among the people within the company or organization.

b. By enforcing work culture, company or organization

able to:
1. Change the way the staff work
2. Change their attitudes and mindsets
3. Improve their skills
4. Improve the methods they use to carry out their work

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Examples of Organizational Innovation
1. A CEO who accepts the challenge to be innovative and
encourages risk-taking (a spur to innovation) and rewards
good ideas as well as the successful completion of projects
(the results of innovation)

2. An organization where everyone understands the many

benefits of innovation. Even those who are not directly
involved in innovative work, such as production people,
recognize they have a part to play in identifying better ways
of doing things. They notice what’s going on around them
and they find opportunities or way for improvement.

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 SOURCES OF INNOVATION
• Within the company or industry
1. Unexpected occurrence (viagra, penicillin)
2. Incongruities (Federal Express)
3. Process needs (enzyme for cataract operation, sugar free products)
4. Industry and market changes (advances in technology, healthcare
industry)

• Within the social environment

1. Demographic changes (change in consumer preference)
2. Perceptual changes (fitness craze)
3. New knowledge (video industry, robotics)

Source: Adopted from Entrepreneurship A Contemporary Approach, Donald F. Kuratko and Richard M.
Hodgetts, 5th Ed. Harcourt, 2001

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 COMMON CHARACTERISTICS OF CREATIVE
ENTREPRENEURS
1. Sensitive to problems
2. Broad perspectives
3. Flexible and adaptable
4. Original thinker and stick-to-own opinion
5. Risk-taker
6. Motivated and dedicated
7. Curious

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