Prof.S.Suryanarayanan XIME INNOVATIVE ENTREPRENEURS Innovation is the specific tool of entrepreneurs ,the means by which they exploit changes as an opportunity for different business or a different service. --Peter P. Drucker XIME Creativity- ability to bring something new into existence; thinking new things Innovation-ability to apply creative solutions to opportunities ; process of doing new things Creativity is a prerequisite to innovation Creativity and innovation can not be taught ; can be learnt ; can be nurtured A quote: innovation and creativity are not just for artists; they are skills with a direct, bottom line-payoff. XIME CREATIVE THINKING LEFT HEMISPERE/ LEFT BRAIN RIGHT HEMISPHERE/ RIGHT BRAIN Analytical side
Rational
Logical
Conscious Creative side
Non rational- Imagining without direction
Intuitive experience, emotions influence
Synthesizing fantasizing
Good engineer/manager
Entrepreneur integrates rationality
Creative artist/ fantasizer/ vision
to harvest creativity. XIME CAN YOU SPOT THE PERSON?
XIME CAN YOU RECOGNISE THE WELL KNOWN PHRASES?
THAN LIFE
S H E E T
Objection Ruled
Tax ( ) XIME BARRIERS TO CREATIVITY Ten mental blocks that limit creativity: 1. Searching for the one right answer. 2. Focusing on being logical . 3. Blindly following the rules. 4. Constantly being practical. 5. Viewing play as frivolous. 6. Becoming overly specialised. 7. Avoiding ambiguity. 8. Fearing looking foolish. 9. Fearing mistakes and failures. 10. Believing that I am not creative .
XIME BUILDING CREATIVE ENVIRONMENT ( LIKE 3M,GOOGLE ) 1. Include creativity as core company value 2. Embrace diversitydiverse workforce 3. Expect creativityinvite ideas. 4. Expect and tolerate failures. 5. Encourage curiosityask questions 6. Create a change of scenery periodically 7. View problems as challenges 8. Provide training in creativity 9. Develop procedure for capturing ideas 10. Talk with customers 11. Reward creativity 12. Set example of creative behaviour.
XIME Characteristics exhibited by leaders of innovation: 1. They think 2. They are visionaries 3. They listen to customers 4. They understand how to manage ideas 5. They are people cantered 6. They maintain a culture of change 7. They maximise team synergy, balance, and focus 8. They hold themselves and others accountable for extremely high standards of performance 9. They refuse to take no for an answer 10. They love what they do and have fun doing it.
XIME CREATIVE PROCESS ( IDEATION PROCESS ) Idea germination---seeding stage of an idea, recognition Preparation---conscious search for knowledge, rationalization Investigation ---observe and understand how things work Incubation---subconscious assimilation of information, to reflect on the information, fantasizing Illumination---recognition of idea as being feasible, realization, Eureka time Verification ---application or test to prove idea has value, validation
XIME
Invention
Creation of something new
Results in new knowledge Innovation
Transformation of idea or resources into useful applications
Results in new products, services or processes. XIME Four types of innovation 1.invention new product/service ( airplane ,light bulb, telephone ) 2.Extension-expansion/ different application of existing product/service ( McDonalds, Resorts) 3.Duplicationreplication of existing product/service ( Wal Mart, ) 4.Synthesiscombination of existing ideas/concepts ( Fedex, Starbucks ) Innovation can also be classified as: A. Breakthrough innovation B. Technological innovation C. Incremental innovation XIME TRANSLATION OF CREATIVE IDEA INTO A USEFUL APPLICATION Analytical planning---to identify product design, market strategy, financial need
Organising resourcesto obtain materials, technology, human resources and capital
Commercial applicationto provide value to customers, rewards for employees, revenues for investors and satisfaction for founders XIME EXAMPLES OF INNOVATION PROCESS Story of Siddarth, agriculturist becoming entrepreneur.
Story of Capt. Gopinath, an Ex Army man, agriculturist turned into aviation entrepreneur.
Story of Kiran Mazumdar ( I am a woman, I have never done a business and I have no money )
XIME CREATING INNOVATORS: THE MAKING OF YOUNG PEOPLE WHO WILL CHANGE THE WORLD. BY TONY WAGNER Culture of schooling ( in USA) and Learning culture that produces innovators Individual achievement ( ranking of kids) Individual assignments Demands collaboration; builds team work Focuses only on specialization Problem based, multi disciplinary approach to learning Risk averse; penalizes failure Taking risks and learning from mistakes Passive experience; sit all day and consume information Create real products for real audience Extrinsic incentivescarrot and stick ( grade A/ grade F ) Intrinsically motivated; remarkable emphasis on play, passion and purpose XIME Empowering students to be innovators.
Discussion on material provided. XIME REFERENCE Notes in these slides were prepared using materials from following text books: 1. Entrepreneurship-theory and practice by Raj Shankar 2. Essentials of Entrepreneurship and Small Business Management by Thomas Zimmer, Norman Scarborough 3. Entrepreneurship by Robert Hisrich, Mathew Manimala, Michael Peters and Dean Sheperr