Creative Thinking - A way of looking at problems or situations from a fresh
perspective that suggests unorthodox solutions (which may look unsettling at first). Creative thinking can be stimulated both by an unstructured process such as brainstorming, and by a structured process such as lateral thinking.
2. Personal Creativity - Creativity - the generation of ideas that results in
improved efficiency or effectiveness of a system.
3. Innovation - The process by which entrepreneurs convert opportunities into
marketable ideas. - The process of creating something new, which is central to the entrepreneurial process. - Innovation is a capability of the many. That capability is utilized when people give commitment to the mission and life of the enterprise and have the power to do something with their capabilities.
4. Innovative Idea - A product or an idea becomes innovative when it stands out
from the rest and truly makes the customers' lives easier. A successful change that can convert knowledge and ideas into benefit � in the form of new or improved products / services is capable of being innovative. - new, original idea - the introduction of something new
5. Invention - A basic type of innovation that involves the creation of a new
product, service or process that is often novel or untried. - something new, that did not exist previously and that is recognized as the product of some unique intuition or genius - A product of the imagination. Something that has never been made before.
6. Opportunity Recognition - The process of perceiving the possibility of a
profitable new business or a new product or service. - means proactively brainstorming a new business venture or expansion idea. A small-business owner typically engages in opportunity recognition at the point where he realizes he has an idea, strength or capability that matches well with a particular target market. - is actually a process that's found in the way that individuals and businesses with an entrepreneurial mindset approach new business ventures or ideas. In many ways, it is a constant brainstorming in which individuals look for ''new and improved ways'' of addressing problems.
7. Opportunity Identification - The ability to recognise a viable business
opportunity within a variety of good ideas. - It identifies entrepreneur's personality traits, social networks, and prior knowledge as antecedents of entrepreneurial alertness to business opportunities. - is a competency that can be developed as are other unique competencies
2. Give the types of innovation and explain each.
Galing sa book nyo � invention � the creation of a new product, service or process, often one that is novel or untried; such concepts tend to be revolutionary � extension � the expansion of a product, service or process already in existence; such concepts make a different application of a current idea � duplication � the replication of an already existing product, service or process; the duplication effort, however, is not simply copying but adding the entrepreneur�s own creative touch to enhance or improve the concept to beat the competition � synthesis � the combination of existing concepts and factors into a new formulation; this involves taking ideas or items already invented and finding a way so together they form a new application. Galing sa ibang book pero meron din nung ^^^^ � Radical innovation is the launching of major breakthroughs that radically transform an industry, such as wireless Internet, iPods, videophones, Post-it� notes, disposable nappies, optical fibres, CT scanners, mobile phones, NutraSweet and even overnight mail delivery. They were all radical innovations at the early stages of their diffusion and adoption. They took experimentation and determined vision. They could be �managed� only with difficulty, but they had to be recognised, nurtured and guided. � Incremental innovation refers to the systematic transformation of an existing product or service into newer or larger markets. These are all products at advanced stages of their product life cycles. Examples include the newest version of Microsoft Windows, the Nespresso coffee system, microwave popcorn, packaging beads (to replace Styrofoam), frozen yoghurt and so forth. Sometimes an incremental innovation will actually take over after a radical innovation introduces a breakthrough (see Figure 8.4). Think of how many incremental versions of Microsoft Windows there have been! The structure, marketing, financing and formal systems of a company can help implement incremental innovation. As Sir Richard Branson said, �Business opportunities are like buses; there�s always another one coming�; Virgin Airlines is like that. It is the airline famous for service innovation. Nothing radical, just incrementally better than the others � constantly.
3. What are the principles of innovation, briefly explain each also.
� Be action oriented: Innovators always must be active and searching for new ideas, opportunities or sources of innovation. � Make the product, process or service simple and understandable: People must readily understand how the innovation works. � Make the product, process or service customer-based: Innovators always must keep the customer in mind. The more an innovator has the end-user in mind, the greater the chance the concept will be accepted and used. � Start small: Innovators should not attempt a project or development on a grandiose scale. They should begin small and then build and develop, allowing for planned growth and proper expansion in the right manner and at the right time. � Aim high: Innovators should aim high for success by seeking a niche in the marketplace. � Try/test/revise: Innovators always should follow the rule of try, test and revise. This helps work out any flaws in the product, process or service. � Learn from failures: Innovation does not guarantee success. More important, failures often give rise to innovations. � Follow a milestone schedule: Every innovator should follow a schedule that indicates milestone accomplishments. Although the project may run ahead or behind schedule, it is still important to have the schedule in order to plan and evaluate the project. � Reward heroic activity: This principle applies more to those involved in seeking and motivating others to innovate. Innovative activity should be rewarded and given the proper amount of respect. This also means tolerating and, to a limited degree, accepting failures as a means of accomplishing innovation. Innovative work must be seen as heroic activity that will reveal new horizons for the enterprise. � Work, work, work: This is a simple but accurate exhortation with which to conclude the innovation principles. It takes work � not genius or mystery � to innovate successfully.
4. Where do innovative ideas come from?
� Trends: Trends signal shifts in the current paradigm (or thinking) of the major population. Observing trends closely will enable an entrepreneur to position an idea fitting with the trend and recognise a potential opportunity. Trends need to be observed in society, technology, economy and government. Following are some examples of such trends: � societal trends: ageing demographics, health and fitness growth, senior living, social media � technology trends: smart phone technology, e-commerce, Internet advances, drones, miniaturisation � economic trends: higher disposable income, dual wage-earner families, performance pressures, rising fuel costs � political trends: increased regulations, terrorism, sovereign debt, military alliances, free trade agreements � environmental trends: global warming, drought, increased severity of storms, increased frequency of bushfires, pollution. � Unexpected occurrences: These are successes or failures that, because they were unanticipated or unplanned, often end up proving to be a major innovative surprise to the business. For example, Alexander Fleming was surprised to note that a contamination of a bacterial plate culture suppressed the growth of his bacteria. He identified the contamination as penicillin mould. Later, Australian scientist Howard Florey drew on Fleming�s observation to create the industrial-scale manufacture of penicillin. � Incongruities: These occur whenever a difference exists between expectations and reality. Innovation is the creation of solutions to incongruities. In the 1980s Ken Kutaragi was watching his daughter playing with a Nintendo Entertainment System which produced poor quality sound and relied on a magnetic tape drive and wondered why such a good game had such terrible sound. Ken knew from his research with Sony that he could develop a better product for Nintendo. Attentiveness to this incongruity led Nintendo to contract Sony for its next generation machine that incorporated better sound and floppy disk technology. Although Kutaragi nearly lost his job for contracting to a competitor, eventually this led to the development of Sony�s Playstation product range which was a key pillar in Sony�s profitability for many years. � Process needs: For example, process gaps or bottlenecks. These occur when an answer to a particular need is required. Venture capitalists often refer to these as �pain� that exists in the marketplace. The entrepreneur must recognise an innovation solution, or �painkiller�. Examples include the creation of new medical devices, health foods, pharmaceuticals, timesaving devices and eco-sustainable green manufacturing. � Industry and market changes: Continual shifts in the marketplace occur, caused by developments such as consumer attitudes, advancements in technology, industry growth and the like. Industries and markets are always undergoing changes in structure, design or definition. An example is found in the healthcare industry where hospital care has undergone radical change and where home healthcare and preventive medicine have replaced hospitalisation and surgery as primary focus areas. The entrepreneur needs to be aware of and seize these emerging opportunities. � Demographics: These arise from trend changes in population, education, income changes, age, occupations, geographic locations and similar factors. Demographic shifts are important and often provide new entrepreneurial opportunities. For example, as the average population age in Australia�s Gold Coast has increased (due largely to the influx of retirees), land development, recreational and healthcare industries have all profited. � Perceptual changes: These changes occur in people�s interpretation of facts and concepts. They are intangible yet meaningful. Perception can cause major shifts in ideas to take place. For example the increasingly popular perceived need to be healthy and physically fit has created a demand for both health foods and health facilities. Another example is people�s desire to use their personal time better. As a result, the travel industry has capitalised on consumers�current need to see the world while they are young and healthy, so time-share holiday destinations and travel clubs have increased. � Knowledge-based concepts: These are the basis for the creation or development of something brand new. Inventions are knowledge-based; they are the product of new thinking, new methods and new knowledge. Such innovations often require the longest time period between initiation and market implementation because of the need for testing and modification. For example, today�s smart phone technology has advanced to transform the mobile phone into a camera, Internet access resource and music provider. This has revolutionised the way we use different technologies today.
7. What are the Major Components in the Creative Process
Phase 1: Background or knowledge accumulation Successful creativity in our entrepreneurial context is generally preceded by investigation and information gathering. This usually involves extensive reading, conversations with others working in the field, attendance at professional meetings and workshops and a general absorption of information relative to the problem or issue under study. Additional investigation in both related and unrelated fields is sometimes involved. This exploration provides the individual with a variety of perspectives on the problem and it is particularly important to the entrepreneur, who needs a basic understanding of all aspects of the development of a new product, service or business venture. People practise the creative search for background knowledge in several ways. Some of the most helpful are: (1) read in a variety of fields; (2) join professional groups and associations; (3) attend professional meetings and seminars; (4) travel to new places; (5) talk to anyone and everyone about your subject; (6) scan magazines, newspapers and journals for articles related to the subject; (7) develop a subject library for future reference; (8) carry a small notebook and record useful information; and (9) devote time to pursue natural curiosities. Phase 2: The mind incubation process Creative individuals allow their subconscious to mull over the tremendous amounts of information they gather during the preparation phase. This incubation process often occurs while they are engaged in activities totally unrelated to the subject or problem. It happens even when they are sleeping. This accounts for the advice frequently given to a person who is frustrated by what appears to be an unsolvable problem: �Why don�t you sleep on it?� Getting away from a problem and letting the subconscious mind work on it allows creativity to spring forth. Some of the most helpful steps to induce incubation are: (1) engage in routine, �mindless� activities (cutting the grass, painting the house); (2) exercise regularly; (3) play (sports, board games, puzzles); (4) think about the project or problem before falling asleep; (5) meditate or practise self-hypnosis; and (6) sit back and relax on a regular basis. Phase 3: The idea experience This phase of the creative process is often the most exciting. It is when the idea or solution is discovered. Sometimes referred to as the eureka factor, this phase is also the one the average person incorrectly perceives as the only component of creativity. As with the incubation process, new and innovative ideas often emerge while the person is busy doing something unrelated to the enterprise, venture or investigation (for example, taking a shower, driving on a highway, leafing through a newspaper). Sometimes the idea appears as a bolt out of the blue. In most cases, however, the answer comes to you incrementally. Slowly but surely, you begin to formulate the solution. Because it is often difficult to determine when the incubation process ends and the idea experience phase begins, many people are unaware of moving from phase 2 to phase 3. Here are some ways to speed up the idea experience: (1) daydream and fantasise about your project; (2) practise your hobbies; (3) work in a leisurely environment (for example, at home instead of the office); (4) put the problem on the back burner; (5) keep a notebook at your bedside to record late-night or early-morning ideas; and (6) take breaks while working. Phase 4: Evaluation and implementation This is the most difficult step of a creative endeavour and requires a great deal of courage, selfdiscipline and perseverance. Successful entrepreneurs can identify ideas that are workable and that they have the skills to implement. More important, they do not give up when they run into temporary obstacles. Often they will fail several times before they successfully develop their best ideas. In some cases entrepreneurs will take the idea in an entirely different direction or will discover a new and more workable idea while struggling to implement the original idea. Another important part of this phase is the reworking of ideas to put them into final form. Because frequently an idea emerges from phase 3 in rough form, it needs to be modified or tested to put it in final shape. Some of the most useful suggestions for carrying out this phase are: (1) increase your energy level with proper exercise, diet and rest; (2) educate yourself in the business planning process and all facets of business; (3) test your ideas with knowledgeable people; (4) take notice of your intuitive hunches and feelings; (5) educate yourself in the selling process; (6) learn about organisational policies and practices; (7) seek advice from others (for example, friends, experts); and (8) view the problems you encounter while implementing your ideas as challenges to be overcome.