1. Copyright 2008 Prentice Hall Publishing 1Chapter 2: Creativity
Inside the
Entrepreneurial Mind:
From Ideas to Reality
Inside the
Entrepreneurial Mind:
From Ideas to Reality
2. Copyright 2008 Prentice Hall Publishing 2Chapter 2: Creativity
Creativity and InnovationCreativity and Innovation
CreativityCreativity – the ability to develop new– the ability to develop new
ideas and to discover new ways of lookingideas and to discover new ways of looking
at problems and opportunities;at problems and opportunities; thinkingthinking
new things.new things.
InnovationInnovation – the ability to apply creative– the ability to apply creative
solutions to problems or opportunities tosolutions to problems or opportunities to
enhance or to enrich people’s lives;enhance or to enrich people’s lives; doingdoing
new things.new things.
3. Copyright 2008 Prentice Hall Publishing 3Chapter 2: Creativity
EntrepreneurshipEntrepreneurship
EntrepreneurshipEntrepreneurship – the result of a– the result of a
disciplined, systematic process of applyingdisciplined, systematic process of applying
creativity and innovation to the needs andcreativity and innovation to the needs and
opportunities in the marketplace.opportunities in the marketplace.
Entrepreneurs connect their creative ideasEntrepreneurs connect their creative ideas
with the purposeful action and structure of awith the purposeful action and structure of a
business.business.
4. Copyright 2008 Prentice Hall Publishing 4Chapter 2: Creativity
Failure: Just Part of theFailure: Just Part of the
Creative Process!Creative Process!
For every 3,000 new product ideas:For every 3,000 new product ideas:
Four make it to the development stage.Four make it to the development stage.
Two are actually launched.Two are actually launched.
One becomes a success in the market.One becomes a success in the market.
On average, new products account for 40 percentOn average, new products account for 40 percent
of companies’ sales!!of companies’ sales!!
Creativity is an important source for building aCreativity is an important source for building a
competitive advantage.competitive advantage.
5. Copyright 2008 Prentice Hall Publishing 5Chapter 2: Creativity
Right-Brained, Creative ThinkersRight-Brained, Creative Thinkers
Always ask, “Is there a better way?”Always ask, “Is there a better way?”
Challenge custom, routine, and tradition.Challenge custom, routine, and tradition.
Are reflective.Are reflective.
Are productive thinkers.Are productive thinkers.
Play mental games.Play mental games.
6. Copyright 2008 Prentice Hall Publishing 6Chapter 2: Creativity
Right-Brained, Creative ThinkersRight-Brained, Creative Thinkers
Realize that there may be more than oneRealize that there may be more than one
“right” answer.“right” answer.
See mistakes as pit stops on the way toSee mistakes as pit stops on the way to
success.success.
See problems as springboards for new ideas.See problems as springboards for new ideas.
Relate seemingly unrelated ideas to aRelate seemingly unrelated ideas to a
problem.problem.
Have “helicopter skills.”Have “helicopter skills.”
7. Copyright 2008 Prentice Hall Publishing 7Chapter 2: Creativity
Left-Brained or Right-Brained?Left-Brained or Right-Brained?
Entrepreneurship requiresEntrepreneurship requires bothboth left-andleft-and
right-brained thinking.right-brained thinking.
Right-brained thinking draws onRight-brained thinking draws on divergentdivergent
reasoning, the ability to create a multitude ofreasoning, the ability to create a multitude of
original, diverse ideas.original, diverse ideas.
Left-brained thinking counts onLeft-brained thinking counts on convergentconvergent
reasoning, the ability to evaluate multiple ideasreasoning, the ability to evaluate multiple ideas
and to choose the the best solution to a problem.and to choose the the best solution to a problem.
8. Copyright 2008 Prentice Hall Publishing 8Chapter 2: Creativity
Barriers to CreativityBarriers to Creativity
Searching for the one “right”Searching for the one “right”
answeranswer
Focusing on “being logical”Focusing on “being logical”
Blindly following the rulesBlindly following the rules
Constantly being practicalConstantly being practical
Viewing play as lightheartedViewing play as lighthearted
9. Copyright 2008 Prentice Hall Publishing 9Chapter 2: Creativity
Barriers to CreativityBarriers to Creativity
Becoming overly specializedBecoming overly specialized
Avoiding ambiguityAvoiding ambiguity
Fearing looking foolishFearing looking foolish
Fearing mistakes and failureFearing mistakes and failure
Believing that “I’m not creative”Believing that “I’m not creative”
10. Copyright 2008 Prentice Hall Publishing 10Chapter 2: Creativity
Tips for EnhancingTips for Enhancing
Organizational CreativityOrganizational Creativity
Include creativity as a coreInclude creativity as a core
company valuecompany value
Embrace diversityEmbrace diversity
Expect creativityExpect creativity
Expect and tolerate failureExpect and tolerate failure
Encourage creativityEncourage creativity
11. Copyright 2008 Prentice Hall Publishing 11Chapter 2: Creativity
Tips for EnhancingTips for Enhancing
Organizational CreativityOrganizational Creativity
Create a change of sceneryCreate a change of scenery
periodicallyperiodically
View problems as challengesView problems as challenges
Provide creativity trainingProvide creativity training
Provide supportProvide support
Develop a procedure forDevelop a procedure for
capturing ideascapturing ideas
12. Copyright 2008 Prentice Hall Publishing 12Chapter 2: Creativity
Tips for EnhancingTips for Enhancing
Organizational CreativityOrganizational Creativity
Talk with customersTalk with customers
Look for uses for yourLook for uses for your
company’s products orcompany’s products or
services in other marketsservices in other markets
Reward creativityReward creativity
Model creative behaviorModel creative behavior
13. Copyright 2008 Prentice Hall Publishing 13Chapter 2: Creativity
Tips for Enhancing IndividualTips for Enhancing Individual
CreativityCreativity
Allow yourself to be creativeAllow yourself to be creative
Give your mind fresh input every dayGive your mind fresh input every day
Observe the products and services of otherObserve the products and services of other
companies, especially those in completelycompanies, especially those in completely
different marketsdifferent markets
Recognize the creative power of mistakesRecognize the creative power of mistakes
14. Copyright 2008 Prentice Hall Publishing 14Chapter 2: Creativity
Tips for Enhancing IndividualTips for Enhancing Individual
CreativityCreativity
Keep a journal handy to record your thoughtsKeep a journal handy to record your thoughts
and ideasand ideas
Listen to other peopleListen to other people
Listen to customersListen to customers
Talk to a childTalk to a child
Keep a toy box in your officeKeep a toy box in your office
Read books on stimulating creativity or take aRead books on stimulating creativity or take a
class on creativityclass on creativity
Take some time offTake some time off
15. Copyright 2008 Prentice Hall Publishing 15Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
16. Copyright 2008 Prentice Hall Publishing 16Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
17. Copyright 2008 Prentice Hall Publishing 17Chapter 2: Creativity
PreparationPreparation
Get your mind ready for creative thinking.Get your mind ready for creative thinking.
Adopt the attitude of a lifelong student.Adopt the attitude of a lifelong student.
Read …a lot…and not just in your field ofRead …a lot…and not just in your field of
expertise.expertise.
Clip articles of interest to you and file them.Clip articles of interest to you and file them.
Take time to discuss your ideas with otherTake time to discuss your ideas with other
people.people.
18. Copyright 2008 Prentice Hall Publishing 18Chapter 2: Creativity
PreparationPreparation
Get your mind ready for creative thinking.Get your mind ready for creative thinking.
Join professional or trade associations andJoin professional or trade associations and
attend their meetings.attend their meetings.
Study other countries and their cultures andStudy other countries and their cultures and
travel.travel.
Develop your listening skills.Develop your listening skills.
Eliminate creative distractions.Eliminate creative distractions.
19. Copyright 2008 Prentice Hall Publishing 19Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
20. Copyright 2008 Prentice Hall Publishing 20Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
21. Copyright 2008 Prentice Hall Publishing 21Chapter 2: Creativity
TransformationTransformation
Involves viewing both the similarities andInvolves viewing both the similarities and
the differences among the informationthe differences among the information
collected.collected.
Two types of thinking required:Two types of thinking required:
ConvergentConvergent – the ability to see the similarities– the ability to see the similarities
and the connections among various and oftenand the connections among various and often
diverse data and events.diverse data and events.
DivergentDivergent – the ability to see the differences– the ability to see the differences
among various data and events.among various data and events.
22. Copyright 2008 Prentice Hall Publishing 22Chapter 2: Creativity
TransformationTransformation
How can you transform information intoHow can you transform information into
purposeful ideas?purposeful ideas?
Grasp the “big picture” by looking for patternsGrasp the “big picture” by looking for patterns
that emerge.that emerge.
Rearrange the elements of the situation.Rearrange the elements of the situation.
Use synectics, taking two seeming nonsensicalUse synectics, taking two seeming nonsensical
ideas and combining them.ideas and combining them.
Remember that several approaches can beRemember that several approaches can be
successful. If one fails, jump to another.successful. If one fails, jump to another.
23. Copyright 2008 Prentice Hall Publishing 23Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
24. Copyright 2008 Prentice Hall Publishing 24Chapter 2: Creativity
IncubationIncubation
Allow your subconscious to reflect on theAllow your subconscious to reflect on the
information collected.information collected.
Walk away from the situation.Walk away from the situation.
Take the time to daydream.Take the time to daydream.
Relax – and play – regularly.Relax – and play – regularly.
Dream about the problem or opportunity.Dream about the problem or opportunity.
Work on it in a different environment.Work on it in a different environment.
25. Copyright 2008 Prentice Hall Publishing 25Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
26. Copyright 2008 Prentice Hall Publishing 26Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
27. Copyright 2008 Prentice Hall Publishing 27Chapter 2: Creativity
VerificationVerification
Validate the idea as accurate and useful.Validate the idea as accurate and useful.
Is itIs it reallyreally a better solution?a better solution?
Will it work?Will it work?
Is there a need for it?Is there a need for it?
If so, what is the best application of this idea in theIf so, what is the best application of this idea in the
marketplace?marketplace?
Does this product or service fit into our coreDoes this product or service fit into our core
competencies?competencies?
How much will it cost to produce or to provide?How much will it cost to produce or to provide?
Can we sell it at a reasonable price?Can we sell it at a reasonable price?
28. Copyright 2008 Prentice Hall Publishing 28Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
29. Copyright 2008 Prentice Hall Publishing 29Chapter 2: Creativity
Techniques for Improving theTechniques for Improving the
Creative ProcessCreative Process
BrainstormingBrainstorming
Goal is to create a largeGoal is to create a large quantityquantity of novel andof novel and
imaginative ideas.imaginative ideas.
30. Copyright 2008 Prentice Hall Publishing 30Chapter 2: Creativity
Brainstorming GuidelinesBrainstorming Guidelines
Keep the group small – “Two pizza rule.”Keep the group small – “Two pizza rule.”
Make the group as diverse as possible.Make the group as diverse as possible.
Company rank is irrelevant.Company rank is irrelevant.
Have a well-defined problem, but don’t reveal itHave a well-defined problem, but don’t reveal it
ahead of time.ahead of time.
Limit the session to 40 to 60 minutes.Limit the session to 40 to 60 minutes.
Take a field trip.Take a field trip.
Appoint a recorder.Appoint a recorder.
31. Copyright 2008 Prentice Hall Publishing 31Chapter 2: Creativity
Brainstorming GuidelinesBrainstorming Guidelines
Use a seating pattern that encourages interaction.Use a seating pattern that encourages interaction.
Throw logic out the window.Throw logic out the window.
EncourageEncourage allall ideas from the team.ideas from the team.
Shoot for quantity of ideas over quality of ideas.Shoot for quantity of ideas over quality of ideas.
Forbid criticism.Forbid criticism.
Encourage idea “hitch-hiking.”Encourage idea “hitch-hiking.”
Dare to imagine the unreasonable.Dare to imagine the unreasonable.
32. Copyright 2008 Prentice Hall Publishing 32Chapter 2: Creativity
Techniques for Improving theTechniques for Improving the
Creative ProcessCreative Process
Mind-mappingMind-mapping
A graphical technique that encourages thinking on bothA graphical technique that encourages thinking on both
sides of the brain, visually displays relationships amongsides of the brain, visually displays relationships among
ideas, and improves the ability to see a problem fromideas, and improves the ability to see a problem from
many sides.many sides.
BrainstormingBrainstorming
Goal is to create a largeGoal is to create a large quantityquantity of novel andof novel and
imaginative ideas.imaginative ideas.
33. Copyright 2008 Prentice Hall Publishing 33Chapter 2: Creativity
Techniques for Improving theTechniques for Improving the
Creative ProcessCreative Process
TRIZTRIZ
A systematic approach designed to solve any technicalA systematic approach designed to solve any technical
problem, whatever its source.problem, whatever its source.
Relies on 40 principles and left-brained thinking to solveRelies on 40 principles and left-brained thinking to solve
problems.problems.
Rapid prototypingRapid prototyping
Transforming an idea into an actual model thatTransforming an idea into an actual model that
will point out flaws and lead to designwill point out flaws and lead to design
improvements.improvements.
34. Copyright 2008 Prentice Hall Publishing 34Chapter 2: Creativity
Protecting Your IdeasProtecting Your Ideas
PatentPatent – a grant from the Patent and– a grant from the Patent and
Trademark Office to the inventor of aTrademark Office to the inventor of a
product, giving the exclusive right to make,product, giving the exclusive right to make,
use, or sell the invention for 20 years fromuse, or sell the invention for 20 years from
the date of filing the patent application.the date of filing the patent application.
36. Copyright 2008 Prentice Hall Publishing 36Chapter 2: Creativity
The Steps to a PatentThe Steps to a Patent
Establish the invention’s novelty
Document the device
Search existing patents
Submit the patent application
Prosecute the patent application
Study search results
37. Copyright 2008 Prentice Hall Publishing 37Chapter 2: Creativity
Protecting Your IdeasProtecting Your Ideas
TrademarkTrademark – any distinctive word, symbol,– any distinctive word, symbol,
design, name, logo, slogan, or trade dress adesign, name, logo, slogan, or trade dress a
company uses to identify the origin of acompany uses to identify the origin of a
product or to distinguish it from other goodsproduct or to distinguish it from other goods
on the market.on the market.
ServicemarkServicemark – the same as a trademark– the same as a trademark
except that it identifies the source of aexcept that it identifies the source of a
service rather than a product.service rather than a product.
40. Protecting Your IdeasProtecting Your Ideas
Type ofType of
ProtectionProtection
What ItWhat It
CoversCovers
TimeTime
RequiredRequired CostCost
CopyrightCopyright Works of originalWorks of original
authorshipauthorship
About 2 weeksAbout 2 weeks About $30About $30
TrademarkTrademark Logos, names,Logos, names,
phrasesphrases
6 – 12 months6 – 12 months $900 - $1,500$900 - $1,500
Design patentDesign patent Look of anLook of an
original productoriginal product
Up to 2 yearsUp to 2 years $5,000 - $20,000$5,000 - $20,000
Utility patentUtility patent How an originalHow an original
product worksproduct works
2 – 5 years2 – 5 years $5,000 - $20,000$5,000 - $20,000
Business methodBusiness method
patentpatent
A businessA business
processprocess
2 – 5 years2 – 5 years $5,000 - $20,000$5,000 - $20,000
Source: Anne Field, “How to Knock Out Knock Offs,”Source: Anne Field, “How to Knock Out Knock Offs,” Business WeekBusiness Week, March 14, 2005., March 14, 2005.