ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

CREATIVITY & INNOVATION

CHAPTER 3:
CREATIVITY AND
INNOVATION

WHAT IS CREATIVITY

(Lotherington,2008) - the merging of ideas which have not

been merged before. New ideas are formed by developing current
ones within our minds.

(Dorf and Byers, 2005) - the ability to use the imagination to

develop new ideas, new things or new solutions

(Matherly & Goldsmith, 1985) the generation of ideas that

result in improved efficiency or effectiveness of a system.

(May, 1975) the process of bringing something new into being.

WHAT IS INNOVATION

(Howell & Higgins, 1990) the process by which

entrepreneurs convert opportunities into marketable ideas.

(Drucker, 1985) - the specific instrument of

entrepreneurs, the means by which they exploit change as
an opportunity for a different business or a different
service.

Luecke and Katz (2003) - "Innovation.is generally

understood as the successful introduction of a new thing or
method . . . Innovation is the embodiment, combination, or
synthesis of knowledge in original, relevant, valued new
products, processes, or services.

CREATIVITY, INNOVATION &

ENTREPRENEURSHIP

Davila et al (2006) - "Often, in common parlance, the words

creativity and innovation are used interchangeably. They shouldn't
be, because while creativity implies coming up with ideas, it's the
"bringing ideas to lifethat makes innovation the distinct
undertaking it is.

(Lotherington, 2003) - Creativity enables people to connect

unconnected things and from that meeting, new ideas spring forth,
whether they are new ideas for doing things or new ideas for using
things.

Amabile et al (1996) All innovation begins with creative

ideas..We define innovation as the successful implementation of
creative ideas within an organization. In this view, creativity by
individuals and teams is a starting point for innovation; the first is
necessary but not sufficient condition for the second"

CREATIVITY, INNOVATION &

ENTREPRENEURSHIP

Creativity is the process of generating unique and

useful ideas.

Innovation will take place when there is a creative idea

generation.

Innovation is about taking the creative/unique new

idea and turning it into something of value

Innovation requires discipline and action to evaluate

the ideas, test them, modify them and then apply
them. It is through there disciplined and actions that
turn an idea into something of value.

CREATIVITY, INNOVATION &

ENTREPRENEURSHIP

Creative entrepreneurs observed peoples problem, and

see opportunities. These entrepreneurs then innovate by
applying creative solutions to peoples problems to better
enhance peoples quality of life.

Entrepreneurship is the commercialization of creativity.

Entrepreneurship occurs when an individual or

organization:
a.

Sees the potential in an idea that can be developed for

the marketplace or user groups

b.

Is prepared to take the necessary risks to stir things up

and get things out of their neat or comfortable spaces

c.

Has the skills (or access to them), confidence,

determination, and the funds (or access to them) to
carry out the innovation that is required to turn the

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.

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.

PHASES OF CREATIVE
PROCESS

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.

COMPONENTS OF CREATIVITY

10

Creative thinking skills

a.

The use of creative intelligence to

approach problems and find solutions
Knowledge

b.

Four styles of creative intelligence:

c.

Intuitive
Innovative
Imaginative
Inspirational

Motivation

Extrinsic
Intrinsic

COMMON CREATIVITY
TECHNIQUES

11

a.

Brainstorming

b.

SCAMMPERR

(Micheal Michalko)

c.

Lateral thinking

(Edward De Bono)

d.

Mind mapping

(Tony Buzan)

e.

Problem reversal

f.

Attribute listing

(Alex F. Osborn)

(Charles Thompson)

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

BRAINSTORMING
(ALEX F. OSBORN )

12

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.

BRAINSTORMING
(ALEX F. OSBORN )

13

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).

SCAMMPERR (MICHEAL
MICHALKO)

14

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

LATERAL THINKING
(EDWARD DE BONO)

15

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.

MIND MAPPING
(TONY BUZAN)

16

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.

PROBLEM REVERSAL (CHARLES

THOMPSON)

17

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!

ATTRIBUTE LISTING

18

Steps:
a.

Identify the product or process you are dissatisfied with

or wish to improve.

b.

List its attributes. For a simple physical object like a

pen, this might include: material, shape, target market,
colours, textures, etc.

c.

Choose, say, 7-8 of these attributes

particularly interesting or important.

d.

Identify alternative ways to achieve each attribute (e.g.

different shapes: cylindrical cubic, multi-faceted.),
either by conventional enquiry, or via any ideagenerating technique.

e.

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.

that

seem

BLOCKS TO CREATIVITY

19

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

PERCEPTUAL BLOCKS

20

Prevent problem recognition, limiting the

problem.

Inability to see problems from different

perspectives

Stereotyping, missing the connections or

associations

Not thinking outside the box

Literal thinking

EMOTIONAL BLOCKS

21

Fear of failure can paralyse us if we think what

we are doing wont be good enough. Will lead
to procrastination and project abandonment.

Most blockages are attitudinal or

psychological. Inability to incubate can lead to
other fears such as: fear of problem, fear of
work, fear of fun, fear of exploring and fear of
abandonment.

EMOTIONAL BLOCKS

22

a.

Fear of problem
We are inclined to worry when we view our
situation as a problem to be solved.

b.

Fear of work

c.

Fear of fun

d.

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.

e.

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.

Lazy to merge or seek new ideas

Believe that fun is childish and a waste of time, yet

some of the best ideas come when we are relaxing or
fooling around.

EMOTIONAL BLOCKS

23

f.

Judging rather than generating ideas like :

Oh, that wont work

We have tried that before. It didnt work out well

g. Dislike new challenges

CULTURAL BLOCKS

24

a.

Tradition is to be maintained.

b.

Playfulness is only for children

c.

Fantasies or dreams are for crazy

people

d.

Comfortable zone

ENVIRONMENTAL BLOCKS

25

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.

Blockages can also arise from physical and

mental exhaustion.

ENVIRONMENTAL BLOCKS

26

a.

Lack of corporation and trust among

colleagues (lack esprit de corp)

b.

Bosses who practice autocratic

management

c.

Too many distractions

d.

Lack of financial and top management

support to bring ideas to
implementation

INTELLECTUAL/ CONCEPTUAL
BLOCKS

27

a.

Failure
to
understand
and
acknowledge problems that need to
be solved.

b.

I dont know; Dont ask me

c.

Try asking someone else

d.

Many creative solutions are hidden

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

TYPES OF INNOVATION

28

There are 3 types of innovation :

a.

Technological Innovation

b.

Operational Innovation

c.

Organizational Innovation

TECHNOLOGICAL INNOVATION

29

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

TECHNOLOGICAL
INNOVATION

30

Example of major technological breakthroughs are : the

wheel, the printing press, steam power, electricity,
wireless technology, the computer, the internet, high
performance materials like plastic, fiber 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: the paper

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

OPERATIONAL INNOVATION

31

Operational Innovation is smaller, more processoriented Innovation

Tends to be incremental in nature

Doesnt 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.

OPERATIONAL INNOVATION

32

This type of Innovation happens by the very act of

people doing their work Hmm, what if we try
doing it this way instead?

Have

much

compared

smaller
with

impact,

breakthrough

per

invention,

technological

innovation, but cumulatively their effect can be

enormous. Their effect builds and grows over time.

33

OPERATIONAL INNOVATION INCLUDES:

a.

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.

b.

Small improvements in operations or processes. For

example, changes to make equipment run more effectively.

c.

Minor improvements or developments that will enhance it

to a technological product.

d.

Innovative new business practices. For example, new ways

for thinking strategically.

ORGANIZATIONAL INNOVATION

34

Organizational Innovation is where a company or

organization itself is innovative

In an innovative company or organization everyone

knows his or her specific role in innovation

It

can

be

purposely

built

through

putting

organizational culture as the operational style or

mode to get things done.

Innovative companies dont just produce innovative

goods and services. They use innovative methods in
everything they do.

35

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:
a.

Change the way the staff work

b.

Change their attitudes and mindsets

c.

Improve their skills

d.

Improve the methods they use to carry out their

work

EXAMPLES OF ORGANIZATIONAL
INNOVATION

36

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 whats going on around them and they find
opportunities or way for improvement.

SOURCES OF INNOVATION

37

Within the company or industry

a.

Unexpected occurrence (viagra, penicillin)

b.

Incongruities (Federal Express)

c.

Process needs (enzyme for cataract operation, sugar free products)

d.

Industry and market changes (advances in technology, healthcare

industry)

Within the social environment

a.

Demographic changes (change in consumer preference)

b.

Perceptual changes (fitness craze)

c.

New knowledge (video industry, robotics)

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

COMMON CHARACTERISTICS OF
CREATIVE ENTREPRENEURS

38

Sensitive to problems

Broad perspectives

Flexible and adaptable

Original thinker and stick-to-own opinion

Risk-taker

Motivated and dedicated

Curious

39