TECHNOLOGY ENTREPRENEURSHIP (ENT600)

UNIT 2: CREATIVITY, INNOVATION AND TECHNOLOGY ENTREPRENEURSHIP Click to edit Master subtitle style

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Introduction

Discovery of opportunity at the right time and place is the corner-stone of any entrepreneurial success Technopreneurs need to be creative in discovering new opportunities (in terms of products or services) either through invention or innovation.

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What is creativity?

Creativity can be defined as the production of new and useful ideas as well as the ability to discover new ways of looking at problems and opportunities. It is the ability to use imagination to develop new ideas, new things or new solutions. These generation of ideas should lead to improved efficiency or effectiveness of a system
(Adapted from Fredrick et al., 2006 and Dorf and Byers, 2005)

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Creative ideas often arise when creative people observe established solutions, practices, or products and think of something new or different. Examples

Creating the NEW

o o o o o o o

Knowledge Products Processes Services Markets Business models

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Raw materials

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Creativity & Role of Teams

Technology entrepreneurship is at its best when the creativity of a pool of people are consolidated as a team effort Hence, creativity should be encouraged among team members or within an enterprise.

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Six Resources of Creative Team/Enterprise

1.

Knowledge in the required domain and fields i.e. in-depth knowledge of your industry. Intellectual abilities to recognize connections, redefine problems, and envision and analyze possible practical ideas and solutions. Inventive thinking about the problem in novel ways
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2.

3.

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Six Resources of Creative Team/Enterprise (cont.)

4.

Motivation towards action Opportunity-oriented personality and openness to change. Contextual understanding that supports creativity and mitigates risks.
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5.

6.

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Creativity Techniques

PROBLEM REVERSAL look at the opposite of things, see things inside out, backwards or upside down. FORCED ANALOGY - gain new insights by forcing a relationship between almost anything. ATTRIBUTE LISTING - break down the thing into smaller parts or characteristics and develop ideas to improve on them.
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Creativity Techniques

MIND MAPPING - starts in the centre of the page with the main idea, and works outward in all directions, producing a growing and organized structure composed of key words and key images.

BRAINSTORMING generating ideas based on the principle of suspending judgments. LATERAL THINKING - exploring multiple possibilities and approaches from different perspective rather than pursuing in a conventional, logical, step by step single approach. i.e. by Entrepreneurship ENT600/UNIT 2: 99

Three Components of Creativity Creativity has three basic components:

Knowledge Motivation Creative thinking skills

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Three Components of Creativity:

Knowledge

Knowledge refers to a confident understanding of a subject with the ability to use it if applicable. It encompasses expertise, skills, familiarity and practical & theoretical understanding of a subject. Knowledge is gained by an individual through study or experience

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Three Components of Creativity:

Creative Thinking Skills

Creative thinking skills is the use of creative intelligence to approach problems and find solutions Four styles of creative intelligence:

Intuitive focuses on results and relies on past experience to guide actions Innovative concentrates on-problem solving, is systematic, and relies on data Imaginative is able to visualize opportunities, is artistic, enjoys writing, and thinks out of the box Inspirational focuses on social change and
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Three Components of Creativity:

Motivation

Motivation is in two forms: Extrinsic motivation comes from outside a person, whether the motivation is a carrot or a stick

Intrinsic motivation a persons internal desire to do something. Satisfaction is derived from Entrepreneurship overcoming2: ENT600/UNIT the challenge. 1313

Phases of the Creative Process

Phase 1: Background or Knowledge Accumulation

Study the background of the subject matter This may requires with extensive reading,

discussion attending
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experts, and

practitioners, seminars,
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academicians, researchers in the field, workshops

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exploring various unrelated areas etc.

Phases of the Creative Process

Phase 2: The Mind Incubation Process An individual immerse himself or herself in the data, allowing the subconscious mind to muse or ponder on the information gathered. Sleep on it getting away from the subject matter and letting the subconscious mind working on it allows creativity to spring forth. Incubation can be induced by: engaging in mindless activities such as painting the house or cutting grass, meditate or play sports or board games. The rationale is new ideas often emerge when we are busy doing something unrelated to the matter.
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Phases of the Creative Process

Phase 3: The Idea Experience

This is when the person discovers the solution or the idea. The idea may appear out of the blue or it may comes incrementally. At this phase, the person begins to formulate the solution. Most of the time it is difficult to tell the movement from phase 2 to phase 3. To expedite movement to idea experience a person can try to daydream and fantasies about the project and always keep a notebook to record emergence of ideas at odd hours.

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Phases of the Creative Process

Phase 4: Evaluation and Implementation

This phase is the most difficult and requires courage, discipline & perseverance. There are a lot of possibilities of failures. Ideas are modified and tested before the best workable idea is put into a final form and successfully implemented.

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Blocks to Creativity

Searching for the only one right answer Focusing on being logical Blindly following the rules Constantly being practical Viewing play as frivolous Becoming overly specialized Avoiding ambiguity Fearing looking foolish Fearing mistakes and failure that Im not creative ENT600/UNIT 2:
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Believing Entrepreneurship

The Most Common Idea Stoppers

That doesnt sound too practical Weve never done anything like that before. Lets get back to reality Thats the dumbest thing Ive ever heard. We have already tried that years ago. I dont see anything wrong with the way were doing it now. Are you kidding? Where do you get these weird ideas?
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What is innovation?

Innovation is the specific instrument of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service (Drucker, 1985). Innovation is the ability to apply creative solutions to problems and opportunities to enhance or to enrich peoples lives Entrepreneurs innovate by converting opportunities into marketable ideas (Kuratko, 2004).
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Creativity, Innovation & Invention

Creativity is thinking new innovation is doing new things.

things

while

Invention on the other hand is often a product of research. Invention is the extreme and riskiest form of innovation and often associated with development of a new or better product or process (Burns, 2008). Not all inventions lead to a commercially viable output.
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INTENSITY OF INNOVATION

Incremental Innovation Steady improvements Based on sustaining technologies Obedience to cultural routines and norms Can be rapidly implemented Immediate gains Develop customer loyalty

Radical Innovation Fundamental rethink Based on disruptive technologies Experimentation and play/make-believe Need to be nurtured for long periods Worse initial performance, potential big gains Create new markets

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Examples of Incremental Innovations

Mobile phone was regarded as a radical innovation (compared to the traditional stationed phone) when it was first introduced to the market. As technology progresses, several features are progressively added to the phone to enhance its features & functions. These innovations on mobile phones are considered as incremental innovations.
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Examples of Radical Innovations

Air Products oxygen separation technology Analog Devices Air Bag Accelerometer Dupont Biodegradable polymer, display technology General Electric Digital X-ray General Motors Hybrid vehicle IBM Silicon Germanium Devices, electronic book Nortel Networks Internet software rental UTC/Otis Elevator Bi-directional elevator Polaroid Memory storage device
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Impact of Innovation Intensity on the Market

INCREMENTAL INNOVATION

LOW

Low market uncertainty Low technical uncertainty Low organization uncertainty Low resource uncertainty UNCERTAINTY HIGH
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RADICAL INNOVATION

High market uncertainty High technical uncertainty High organization uncertainty High resource uncertainty
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Basic Types of Innovation

INVENTION - Creating a totally new product, service or process. Examples: aeroplanes (Wright brothers), light bulbs (Thomas Edison), personal GPS (Peter Maire)

EXTENSION - Introducing different application or new use of existing product, service or process Examples: laptop, PDAs, walkman

DUPLICATION -

Creative replication of an existing concept

Examples: Franchise businesses such as Chicken Rice Shop

SYNTHESIS Entrepreneurship Combining existing2: ENT600/UNIT concepts or factors into a 2626 new formulation or use.

Important Technological Innovations

1793 1829

1830-1900

1901-1939

Cotton gin

Telegraph

Air Conditioner

Practical Steamboat

Vulcanized Rubber

First Flight

Safety Elevator

Model T (Ford) Liquid fueled Rockets

Steam powered locomotive for passengers and freight

Internal Combustion Engine

Telephone

FM Radio

Phonograph

Jet Engine

Radio

Xerography

Helicopter 2727

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Important Technological Innovations

1940-1949

1950-1969

1970 ->

Color TV

Sputnik 1 (USSR)

Microprocessor

General Purpose, Electronic, Digital Computer Supersonic Flight

NASA

Recombinant DNA

Integrated Circuit

Laser Printer

Operable Laser

MRI Scanner

Transistor

First Man In Space

Space Shuttle

Instant Camera

Telstar Satellite

Scanning Tunneling Microscope

Jet Airliner

Fiber Optics

Apollo lX

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Sources of Innovation

Within the company or industry

Unexpected occurrence - unexpected discovery such as penicillin Incongruities the gap between what is and what should be; arise whenever a difference exists between expectations & reality. Process needs require entrepreneurs to innovate and answer a particular needs such as time-saving devices Structural change caused by industry and market changes due to new developments such as advances in technology.
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Sources of Innovation

Within the social environment

Demographic changes for example changes in population, consumer preference and geographical locations. Perceptual changes perceptions can cause mood swings and major changes in ideas, for example fitness craze is resulted by perceived needs to be healthy & physically fit New knowledge the basis of development of something brand new.
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Linking Creativity, Innovation & Entrepreneurship

ENTREPRENEURIAL ENVIRONMENT INVENTION Ability to be CREATIVE Ability to spot OPPORTUNITIES INNOVATION

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Linking Creativity & Entrepreneurship

Creative idea flows to invention and invention flows to innovation. Creativity can also directly leads to innovation. Creativity is turned into a practical reality such as a product through innovation. The entrepreneurial context as well as perception of opportunity are necessary to turn it into a business reality. Hence, creativity must be linked to entrepreneurship in order to turn it into commercial opportunity to be exploited.
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