Scarb Eesbm6e PPT 02

CHAPTER
Inside
Inside the
the Entrepreneurial
Entrepreneurial Mind:
Mind:
From
From Ideas
Ideas to
to Reality
Reality
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Creativity and Innovation
Creativity the ability to develop

new ideas and to discover new ways
of looking at problems and
opportunities; thinking new things
Innovation the ability to apply

creative solutions to problems or
opportunities to enhance or to enrich
peoples lives; doing new things.
Ch. 2: Inside the Entrepreneurial Mind
2-2
Entrepreneurship
Entrepreneurship the result of a

disciplined, systematic process of
applying creativity and innovation to
the needs and opportunities in the
marketplace.
Entrepreneurs connect their creative

ideas with the purposeful action and
structure of a business.
2-3
Failure: Part of the

Creative Process!
For every 3,000 new product ideas:
Four make it to the development stage.

Two are actually launched.
One becomes a success in the market.
On average, new products account for 40%

of companies sales!!
Creativity is an important source of building

a competitive advantage.
2-4
Can We Learn to Be Creative?
Yes!
By overcoming paradigms and by suspending
conventional thinking long enough to
consider new and different alternatives!
2-5
How Creative Are You?

Chun
Chun
Chun
Chun
Hundred
Hundred
Hundred
Hundred
Hundred
O
R
H
Umph Umph Umph

Of the Spirit
Grace.
Stand
I
Scholar
S Media
Intensity
2 1111 STO CK
Objection
Ruled
THEBLUEFACE
Roll Roll
Roy Roy
Tomb of 210,N
2-6
How Creative Are You?

Fortune 500
Scattered
Showers
Triumph of the
Spirit
Grace Period
Rhodes Scholar
I Understand
Spring Break
Media Bias
Two for One

Stock Split
Blue in the Face
High Intensity
Spreadsheet
Objection
Overruled
Web Links
Rolls Royce
Tomb of
Tutankhamen
2-7
Right-Brained,
Creative Thinkers
Always ask: Is there a better way?
Challenge custom, routine, and

tradition.
Are reflective.
Are prolific thinkers.
Play mental games.
2-8
Right-Brained,
Creative Thinkers
Realize that there may be more than one

right answer.
Know that mistakes are pit stops on the

way to success.
Recognize that problems are

springboards for new ideas.
2-9
Right-Brained,
Creative Thinkers
Understand that failure is a natural part

of the creative process.
Relate seemingly unrelated ideas to a

problem.
Have helicopter skills.
2 - 10
Left-Brained or
Right-Brained?
Entrepreneurship requires both left-and
right-brained thinking.
Right-brained thinking draws on divergent

reasoning, the ability to create a multitude
of original, diverse ideas.
Left-brained thinking counts on convergent

reasoning, the ability to evaluate multiple
ideas and to choose the best solution to a
problem.
2 - 11
Barriers to Creativity
Searching for the one right answer
Focusing on being logical
Blindly following the rules
Constantly being practical
Viewing play as frivolous
2 - 12
Barriers to Creativity
Becoming overly specialized
Avoiding ambiguity
Fearing looking foolish
Fearing mistakes and failure
Believing that Im not

creative
2 - 13
Questions to Spur the

Imagination
Is there a new way to do it?
Can you borrow or adapt it?
Can you give it a new twist?
Do you merely need more of the same?
Do you need less of the same?
2 - 14

Imagination
(continued)
Is there a substitute?
Can you rearrange the parts?
What if you do just the opposite?
Can you combine ideas?
Can you put it to other uses?
2 - 15

Imagination
(continued)
What else could you make from this?
Are there other markets for it?
Can you reverse it?
Can you eliminate it?
Can you put it to another use?
What idea seems impossible, but if

executed, would revolutionize your
business?
2 - 16
Tips for Enhancing

Organizational Creativity
Include creativity as a core company

value
Embrace diversity
Expect creativity
Expect and tolerate failure
Create an organizational structure that

nourishes creativity
2 - 17
Tips for Enhancing

(continued)
Encourage curiosity
Create a change of scenery periodically
View problems as opportunities
Provide creativity training
Provide support
Develop a procedure for capturing ideas
2 - 18
Tips for Enhancing

Talk and interact with customers
Look for uses for your companys

products or services in other markets
Reward creativity
Model creative behavior
2 - 19
Tips for Enhancing

Individual Creativity
Allow yourself to be creative

Give your mind fresh input every day
Observe the products and services
of other companies, especially
those in completely different markets
Recognize the creative
power of mistakes
Notice what is missing
2 - 20
Tips for Enhancing

Keep a journal to record your thoughts

and ideas
Listen to other people
Listen to customers
Talk to a child
Do something ordinary in an unusual

way
2 - 21
Tips for Enhancing

Keep a toy box in your office
Do not throw away seeming bad

ideas
Read books on stimulating creativity or

take a class on creativity
Take some time off
Be persistent
2 - 22
The Creative Process

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 23

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 24
Preparation
Get your mind ready for creative thinking.
Adopt the attitude of a lifelong student.
Read a lot and not just in your field of

expertise.
Clip articles of interest to you and save

them.
Take time to discuss your ideas with other

people.
2 - 25
Preparation
Get your mind ready for creative thinking.
Join professional or trade associations

and attend their meetings.
Study other countries and their cultures.
Travel to new places.
Develop your listening skills.
Eliminate creative distractions.
2 - 26

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 27

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 28
Transformation
Involves viewing both the similarities and the

differences among the information collected.
Two types of thinking are required:
Convergent the ability to see the

similarities and the connections among
various and often diverse data and events.
Divergent the ability to see the

differences among various data and
events.
2 - 29
Transformation
How can you transform information

into purposeful ideas?
Grasp the big picture by looking for

patterns that emerge.
Rearrange the elements of the situation.
Use synectics, taking two seeming

nonsensical ideas and combining them.
Remember that several approaches can be

successful. If one fails, jump to another.
2 - 30

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 31
Incubation
Allow your subconscious to reflect on
the information collected.
Walk away from the situation.
Take the time to daydream.
Relax and play regularly.
Dream about the problem or

opportunity.
Work on the problem in a different

environment.
2 - 32

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 33

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 34
Verification
Validate the idea as accurate and useful.

Is it really a better solution?
Will it work?
Is there a need for it?
If so, what is the best application of this idea
in the marketplace?
Does this product or service fit into our core
competencies?
How much will it cost to produce or to
provide?
Can we sell it at a reasonable price that will
produce a profit?
2 - 35

Preparation
Incubation
Investigation
Illumination
Transformation
Verification
Implementation
2 - 36
Techniques for Improving

the Creative Process
Brainstorming:
The goal is to create a large quantity
of novel and imaginative ideas.
2 - 37
Brainstorming Guidelines
Keep the group small Two pizza rule.

Make the group as diverse as possible.
Emphasize that company rank is irrelevant.
Have a well-defined problem, but dont
reveal it ahead of time.
Limit the session to 40 to 60 minutes.
Take a field trip.
Appoint a recorder.
2 - 38
Brainstorming Guidelines
Use a seating pattern that encourages

interaction.
Throw logic out the window.
Encourage all ideas from the team.
Shoot for quantity of ideas over quality of
ideas.
Forbid criticism.
Encourage idea hitch-hiking.
Dare to imagine the unreasonable.
2 - 39
Techniques for Improving the

Creative Process
Brainstorming
The goal is to create a large quantity of

novel and imaginative ideas.
Mind-mapping
A graphical technique that encourages

thinking on both sides of the brain,
visually displays relationships among
ideas, and improves the ability to see a
problem from many sides.
2 - 40

Creative Process
Force Field Analysis

A useful technique for evaluating the
forces that support and oppose a
proposed change.
Three columns:
Center: Problem to be addressed
Left: Driving forces
Right: Restraining forces
Score each force (-1 to +4) and add them.
2 - 41
FIGURE 2.2 Sample Force Field Analysis
2 - 42

Creative Process
TRIZ
A systematic approach designed to solve
any technical problem.
Relies on 40 principles and left-brained
thinking to solve problems.
2 - 43
2 - 44

Creative Process
TRIZ
A systematic approach designed to solve
any technical problem.
Relies on 40 principles and left-brained
thinking to solve problems.
Rapid Prototyping
Transforming an idea into an actual model

that will point out flaws and lead to design
improvements.
2 - 45
Protecting Your Ideas
Patent a grant from the Patent and

Trademark Office to the inventor of
product, giving the exclusive right to
make, use, or sell the invention for
20 years from the date of
filing the patent application.
2 - 46
FIGURE 2.4 Patent Applications and Patents Issued
The Six Steps to a Patent

6. File the patent application
5. Complete the patent application
4. Study search results
3. Search existing patents
2. Document the device
1. Establish the inventions novelty
2 - 48
Trademark any distinctive word,

symbol, design, name, logo, slogan, or
trade dress a company uses to identify
the origin of a product or to distinguish
it from other goods on the market.
Servicemark the same as a trademark

except that it identifies the source of a
service rather than a product.
2 - 49
FIGURE 2.6 Trademark Applications and Trademarks and Renewals Issued

2 - 50
Copyright an exclusive right that

protects the creators of original works
of authorship such as literary,
dramatic, musical, and artistic works.
Copyrighted material is denoted by

the symbol .
2 - 51

Type of
Protection
Copyright
What It
Covers
Works of
original
authorship
Time
Required
Cost
About 2 weeks
About $35
Trademark
Logos, names,
phrases
6 12 months
$900 - $1,500
Design patent
Look of an
original product
Up to 2 years
$5,000 - $20,000
Utility patent
How an original
product works
2 5 years
$5,000 - $20,000
Business
method patent
A business
process
2 5 years
$5,000 - $20,000
Source: Anne Field, How to Knock Out Knock Offs,

Offs, Business Week,
Week, March 14, 2005.
2 - 52
Conclusion
The creative process is a tenant of the

entrepreneurial experience.
Success, and even survival itself, requires
entrepreneurs to tap their creativity.
The seven steps of the creative process
transform an idea into a business reality.
Creativity results in value, and value
provides a competitive advantage.
Entrepreneurs protect their creative ideas
with patents, trademarks, servicemarks, and
copyrights to sustain a competitive edge.
2 - 53
All rights reserved. No part of this publication may be

reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of
the publisher. Printed in the United States of America.
2 - 54

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CHAPTER

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Creativity and Innovation

Creativity the ability to develop

Innovation the ability to apply

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Entrepreneurship the result of a

Entrepreneurs connect their creative

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Failure: Part of the

For every 3,000 new product ideas:

Four make it to the development stage.

On average, new products account for 40%

Creativity is an important source of building

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Can We Learn to Be Creative?

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

How Creative Are You?

Umph Umph Umph

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

How Creative Are You?

Two for One

Blue in the Face

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Always ask: Is there a better way?

Challenge custom, routine, and

Are prolific thinkers.

Play mental games.

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Realize that there may be more than one

Know that mistakes are pit stops on the

Recognize that problems are

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Understand that failure is a natural part

Relate seemingly unrelated ideas to a

Have helicopter skills.

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Right-brained thinking draws on divergent

Left-brained thinking counts on convergent

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Searching for the one right answer

Focusing on being logical

Blindly following the rules

Constantly being practical

Viewing play as frivolous

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Becoming overly specialized

Fearing looking foolish

Fearing mistakes and failure

Believing that Im not

Ch. 2: Inside the Entrepreneurial Mind

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall