innovation and self awareness group discussion

innovation and self awareness

1. INNOVATION AND SELF –
AWARENESS
By Group 1;

2. Presentation outline
Concepts of Business idea, Creativity and Innovation in Entrepreneurship
Types of innovation
Sources of innovation
Process of innovation
Barriers to innovation

3. Concepts of Business idea, Creativity and Innovation in
Entrepreneurship
•Businessideaisthefirstprocedureofstartingabusiness.Theconceptofbusinessideais
envisionedfromaninspiration,motivation.Itiscenteredongoodsorservicesandcanbe
usedtogeneratevalue.
•Accordingto(Hougaard,2004),definedbusinessideaasaframeworkintendedtosharpen
yoursensestowardsentrepreneurshipandperhapsmakeyouwanttohaveagoatityourself.
Healsoarguedthatbusinessideaoriginhastodowithdiscoveringandenabling,andthatitis
anongoinglogic,thatis,thebusinessideavisionwillalwaysbepresentandtoexplain
entrepreneurialprocessfromthemomenttheideaisconceiveduntilthebusinessisintroduced
tothemarket.
•Hougaard(2004)arguedthatabusinessideadoesnothavetobeunique,butpotentialtomeet
theneedofthetargetmarket.Thereisneedtoconcentrateonthemarketasthemainfactorto
determinewhetherthebusinessideawillbesuccessfulornot.

4. Characteristics of business idea
Abusinessideashould;
i.Havepotentialtomeetanidentifiedmarketneed
ii.Havescopeforgrowthexpansion
iii.Becomparativewithowner’sgoalandinterest
iv.Notbeagainstexpectationofthesociety
v.Haveavailableresourcesneededforsuccessfullyimplementationofbusinessideatothe
market.
vi.Besustainableinthelongrun
vii.Generatevalue

5. Sources of business ideas
Consumers:Payingattentiontopotentialcustomersfeedback,complaintsandmonitoringtheir
potentialneeds,cantriggerideastofulfilltheirneedsandwants.
Existingproductsandservices:Monitoringandevaluatingcompetitiveproductsandservices
inthemarket,mayresulttonewproductorserviceideathathasmoremarketappeal.
Distributionchannels:SuchasRetailersandDistributorstheydealwithdifferentvarietyof
itemsandinteractwithdifferentconsumers.Theyaremorefamiliarwiththeneedsofthe
marketandcangivesuggestionsofnewproductsandconsumerneeds.
Government:ThroughGovernmentmagazines,Governmentshowsandexhibitions,
GovernmentResearchesandDevelopmentcanbesourceofbusinessidea.
EducationandPastworkingexperience:Bothprovidesaninsightknowledgeandtoolsone
canusetoimplemententrepreneurialideaintopractice.
CurrentTrends:Itmakesiteasytoknowwherewearenow,andwhereweareheadedand
potentialbusinessideasthatcancontributepositivelytomarketneeds.
Newsoutlets:Therearemanysourcesthatwriteaboutnewsallovertheworld,whichare
updatedalmosteverysecondwiththehelpoftechnology.Thiscanbeoneofthebest
sourcesforapotentialbusinessideas.

6. Means of Generating a Business Idea
IdentifyingaNeed:Aneedcanbeanopportunity.Identifyinganunidentifiedorunserved
needisawayofgeneratingbusinessideas.
BrainStorming:Isaprocessthatinvolvesgeneratingideasthroughthinking.
BuildingonOne’sSkill,HobbiesorInterests:Businessideascanbegeneratedthrougha
personalinterestsandhobbies,Copyingorimprovingsomebody’sideas.(Skills)
SportingaMarketNiche:Involveslookingforgapsinthegrowingmarkets,identifying
marketsectionswhicharenotbeingutilized.
ListeningtowhatPeoplesay:Thesearepeoplewhosimplysayorspeaktheirneeds.Through
that,businessideascanbegeneratedbasedonchangingthewayonelooksatsomethingin
ordertofindanewuseforit.
GainingfromWaste:Whatwouldappearwastecanbeusedasrecyclestocreateanew
opportunity.
Theweb:Isthemostandimportantlyusedsearchtoolwhichhasmadeiteasierforoneto
sourceandameansofgeneratingbusinessidea.Withtheuseofsmartphoneorcomputer
andinternet,onemaygetrelevantinformationfromtherelevantsearchengines.

7. Creativity
BaronandShane(2008)definedcreativityasProductionofideasforsomethingnewthatisalso
potentiallyuseful.
•Involvesuseofimaginationtocreatenewideastosolveproblemsandorthinkingof
possibilitiesthatnooneelsehasthoughtofbefore.
Innovationisderivedfromalatinword‘in’and‘novare’meaning‘tomakesomethingnew’
Oxforddictionarydefinesinnovationas‘change’
•BessantandTidd(2018),definedInnovationasrecognizingopportunitiesfordoing
somethingnewandimplementingthoseideas.Inaddition,theyarguedinnovationisnot
aboutopeningnewmarket,buttooffernewwaysofservingexistingmarkets.Itisdrivenby
entrepreneurshipmotive,thatis,thepowerfulmixtureofenergy,vision,passion,
commitmentandrisktakingtosomethingthatcangeneratevalue.
•Drucker(1985),perceivesInnovationasatoolofentrepreneurship.Itrevolvesabout
growingnewmarkets,rethinkingservices,meetingsocialneedsandimprovingoperationsto
bebetter.Allthiscontributestowardscompetitivesuccessofthebusiness(BessantandTidd
2015).

8. TheprocessofCreativityaccordingto(KuratkoandHodgetts,2004)
Step1:knowledgeAccumulation:Thisstepfocusesmoreonthestudybackgroundofthe
ideastohelptohavebetterunderstandinginthatareaofthesubjectmatter.Itrequires
extensivereading,discussingwithexperts,researchersonthatareaoffield,attending
workshopsandseminarsetc.
Step2:Incubation:Inthisstagethebusinessperson,willtaketimetofamiliarizewiththe
knowledgeacquired.Itisalsoassumedthatmoreideasmayemergeoronemaygetnew
perceptiveofthesubjectmatter
Step3:Ideas:Ideasarebelievedtobefreeandcanbesourceddifferently.Atthisphase
focusesmoreonsourcingofinnovationideaofthesubjectmatter.
Step4:EvaluationandImplementation:Thisfocusesmoreontransformingtheideainto
workablesolution.Thisrequirescontinuousdevelopmentandassessmentsothattheidea
canbeconceptualizedandadjustedtomakeitpracticalandacceptabletopotential
customersandstakeholders.

9. TypesofInnovation
Therearefourmaintypesofinnovation.Weusethesecategoriestounderstandwherethe
businessshouldfocusitsattentiontodistinguishyourselffromthecompetition.
IncrementalInnovation:Thisreferstoimprovingexistingtechnologyinanexistingmarket.A
goodexamplewillbeAppleInc.whichgraduallyaddsnewfeaturestoitsiPhones.Thisis
anexampleofincrementalinnovation.
•Incrementalinnovationisalow-riskstrategy,asthebusinessalreadyknowsboththe
technologyandthemarketwell.
ArchitecturalInnovation:Occurswhenabusinessexpandsexistingtechnologyintoanew
market.AnexampleofarchitecturalinnovationisUber’sexpansionintothefooddelivery
marketwithUberEats.
•Thisinnovationtypeisrelativelylow-risk,asthecompanyhasalreadytestedthe
technologyandknowsitworks.Buttheuncertaintyregardingthenewmarketintroduces
unknowns,soarchitecturalinnovationsbenefitfromextramarketinginvestment.

10. TypesofInnovation (cont.)
DisruptiveInnovation:Occurswhenacompanyusesanewtechnologytoenteranexisting
market.Wikipediaisanexampleofdisruptiveinnovation.Itsfreedigitalcrowd-sourced
encyclopediaentrieswereadrivingforceinmovingtraditionalprintencyclopediasoutof
business.
•Startupscommonlyusedisruptiveinnovationstrategiestoimplementanewideaona
shoestringbudget.Thesestrategiesaremostdangeroustolargecompaniesengagedin
“sustaininginnovation”:companiesmakingsmalladjustmentstotheirbusinessto
graduallyincreaseprofitmargins.
•Disruptorscanclaimmarketshareatthebottomofamarket,forcingestablished
companiestoraisepricestoremainprofitable.Disruptiveinnovationsareamedium-to-
highrisk.Manyfail,butastheyusuallyuselow-costresources,thecostoffailureis
oftenmanageable.

11. TypesofInnovation (cont.)
RadicalInnovation:Occurswhenacompanydevelopsandappliesanewtechnologytoanew
market.AnexampleofradicalinnovationisSalesforce,anearlydeveloperofcloud
computingandthesoftwareasaservice(SaaS)businessmodel.Itsreleasein1999created
anewmarketforbusinessclientswhowantedacomprehensivesoftwarepackageto
managecustomerrelationships.
•Radicalinnovationisahigh-risk,high-rewardstrategy.Companiesmayinvestagreat
dealindevelopingthenewtechnologyandthenfeeldisappointedbycustomer
engagement.Butifaradicalinnovationworks,itgainsthecompanyavaluableheadstart
inthenewmarket.

12. TypesofInnovation (cont.)
Alternativecategories
Whiletheabovecategorizationcoverfourgeneralinnovationtypes,hereareacoupleof
alternativewaysofunderstandinginnovationforyourbusiness.
Thisfirstoneisusefulwhenconsideringwheretofocusyourinnovationefforts:
Productinnovationsimproveproductperformanceorcreateentirelynewproducts.
Serviceinnovationsreduceservicecostsorimprovethecustomerexperience.
Processinnovationscreatenewmethodstomakeinternalcompanyprocesses(manufacturing,
administration)moreefficientorflexible.
Businessmodelinnovationschangehowacompanycreatesordistributesitsproducts,like
switchingfromaone-offpurchasemodeltochargingasubscriptionfee.
Technologicalinnovationsareimprovementsinavailabletechnologies.
Marketinginnovationsarenovelmarketingstrategies,likerebrandingorexpandingintoa
newformofsocialmedia.

13. TypesofInnovation (cont.)
Thissecondbreakdownishelpfulwhenyou’reconsideringadjustingyourbusiness’score
operations:
Coreinnovationsaresmallongoingimprovements,likenewpackagingoroptimizedproduct
features,thatdon’trequireasignificantchange
Adjacentinnovationsexpandexistingoperations,eitherbringinganexistingproductintoa
newmarketordevelopinganewproductforthecompany’sexistingmarket(think
traditionalcarcompaniesdevelopingelectricvehicles).
Transformationalinnovationschangethecompany’scorebusinessprofoundly,usuallyby
implementinganewbusinessmodel,likewhenNetflixmovedfrommailingDVDsto
streamingfilmsondemandviatheinternet.

14. Sources of Innovation
Innovationhasalwaysbeenasignificantfactorinenablingentrepreneurialfirmstoachieve
theirgoalsbycreatinggoodsandservicesofmoreexcellentvalue.Analyzingtheexternaland
internalsourcesofinnovationallowstheidentificationofsuchfactorsthatwillhelpan
entrepreneurplanbetterforthefutureofthebusiness.
Drucker(2006),indicatedsevenkeysourcesofinnovation,whichotherscholarsandbusiness
expertshavesinceanalyzed.
InternalSources
•Akeysourceofinnovationbelongstothiscategoryofinsideorinternalsources.Thisis
achievedthroughinternalprocessanalysis,assessmentofconstructivefeedbackfrom
employees,andcustomerfeedback.
•Loopholeswithinanenterprise'sbusinessprocessesortheproductsofferedbyan
enterprisecanbeusedininnovation.Forinstance,firmscanoptimizetheproductionline
tocutpricesormodifyanaspectoftheproductasdeemedfitbytheconsumers(Digital
Leadership,2024).
•Inthisway,businessescanremainonthesuperiorplanetocompetitorsiftheyembracethe
consequentimprovementsthatareachievedthroughmarginalrevolutions.

15. Sources of Innovation (cont.)
ChangesinMarketStructureandIndustry
•Itisexpectedtoobservethatmanyinnovationsareinducedbyexternalvariablesprevalent
withinthemarketortheentireindustry.Thereisalwaysroomforentrepreneurstoexplore
wheneverthereisachange,anewregulation,newtechnology,orashiftinconsumer
trends.
•Severalstudiesrevealthattechnologicaladvancementsformthebasisofnoveltybusiness
opportunities,especiallyfortechnopreneurswhoseprimaryareaofinterestistechnology,
development,andinnovation,specificallyinprocessesthatarebecomingautomatedand
digitized(Arnold,2015).
•Itiscriticalfortheseentrepreneurstoconstantlybepreparedforshiftsinsuchsystemsso
thattheycaneasilycapturethosechangesandbenefitfromthem.

16. Sources of Innovation (cont.)
UnexpectedOccurrences
•Apositiveenvironmentalchangeresultsininvention,justasanegativechangedoes.For
example,supplychaindisruptionscouldcauseacompanytodevisebettersupplychain
solutions,oranexcessofdemandmightleadtotheinnovationsofnewproducts(Arnold,
2015).
•Theseareusuallysourcesofunanticipatedchallengesthatresultinnewbusiness
breakthroughsforcompaniestoperformdistinctively.

17. Sources of Innovation (cont.)
DemographicShifts
•Thefollowingkeyareaafirmcansourceinnovationfromisademographicshift.Changes
inthequantityofpopulation,age,andincomepredisposeachangeintherequirementsand
needsofconsumers.Suchchangescanoccurintheculturalattributesofconsumption,and
theentrepreneurwhoexpectssuchchangecandevelopaproductoraservicethatmeetsthe
expectedchange(DigitalLeadership,2024).
•Forinstance,businessesthataimattheelderlygrouphavedevelopednewhealthandstyle
servicesandgoods.
Othersourcesofinnovationinclude;
Incongruities:Thisreferstoascenariowherethereisadifferenceordiscrepancybetween
“whatis”and“whatshouldbe”.Thisdiscrepancycreatesanopportunityforinnovation
(Drucker,2006).

18. Sources of Innovation (cont.)
Changesinmood,perceptionandmeaning:Peopleandpopulationchangewithtime
especiallyinthewaytheyperceivelifeandhowtheyfeelaboutdifferentthings.Innovators
shouldbeabletodetectthesechangesorshiftsandleveragethem(Drucker,2006).
Newknowledge:Thesereferstonewdiscoveries,knowledgeaswellastechnologywhichcan
bringnewchangesinanindustry.Thenewknowledgebringaboutnewopportunitiesfor
innovationofnewproductsandservices(Drucker,2006).
Processneeds:Thisinvolvesascenariowhereonelooksatthewaythingsarecurrentlydone
andtriestofindbetterwaysofdoingthem.Asonetriestofindbetterways,theyarebeing
innovative.
Innovationinentrepreneurshipstemsfrominternalunderstandingandideas,external
changes,andchangesdrivenbyeventsanddemographics.So,understandingandutilizing
thesevarioussources,entrepreneurscanbeabletosustainmarketleadership,tacklenew
issues,andfosterbusinessdevelopment.

19. Process of Innovation
Innovationisaprocessthatinvolvesgeneratingideas,productsorservicesandsuccessfully
implementingtheseideastocreatevalue.Itisastructuredandsystematicapproachthat
organizationsfollowtofoster,developandimplementinnovations.
Belowarethe5processesofinnovations;
Ideagenerationandmobilization.
•It’stheinitialphasewhereadiverserangeofcreativeideasiscollectedwiththegoalbeing
tocreateapoolofpotentialinnovationsthatcanaddresschallengesorcapitalizeon
opportunities.
•Oncetheideaisgenerateditpassesontomobilizationstage,wheretheideatravelstoa
differentphysicalorlogicallocation.Sincemostinventorsaren’tmarketerstheideaoften
needsasomeoneelseotherthantheoriginatortomoveitalong.

20. Process of Innovation
Advocacyandscreening
•Heretheideascollectedundergoevaluationtoidentifythosewiththehighestpotential.
Criteriausedaresuchasfeasibility,alignmentwithorganizationalgoalsandmarket
relevance.Thisistoprioritizeandfocusresourcesonmostpromisingconcepts,eliminating
thosethatmaynotbeviable.
•Itinvolvesweighingtheprosandconsofanidea.Ithelpsmeasurepotentialbenefitsand
problems.Fromthisadecisionismadeabouttheideasfuture.

21. Process of Innovation (cont.)
Conceptdevelopmentandtesting.
•Ideasaretranslatedintoconcreteconceptsorprototypeswhicharethetestedinrealworld
scenariosorthroughsimulationstogatherfeedbackandseehowpracticaltheideasare.
Testingallowsrefinementandimprovementbeforemovingtothenextstage.
•Sometimesexperimentationortestingmayleadtonewideasduetoinformationgathered
ontheresultsandtheoverallfeasibilityoftheoriginalidea.
•Forinstance,Amazontesteditsgrocerydeliveryideain2007inSeattlesuburbsandaftera
successfulrunAmazonFreshexpandedtoothercitiessuchasNewYork,LosAngeles,New
JerseyandevenUnitedKingdom.

22. Process of Innovation (cont.)
Implementation.
•Involvesturningarefinedconceptintoatangibleproductorservice.Thisstagerequires
coordinatedeffort,resourceallocationandgoodprojectmanagementtoensureasmooth
transitionfromconcepttoreality.
Monitoringandevaluation.
•Itscontinuouslymonitoringandevaluatingtheprogressoftheproductthroughtrackingthe
innovationsperformanceagainstpredefinedmetricsandassessingitsimpacton
organizationalgoals.
•Evaluatingregularlyhelpsanorganizationadapttochangingcircumstancesandrefinetheir
innovationapproach.

23. Process of Innovation (cont.)
Successfulinnovationprocesstakestheideafromitsmetaphoricalbirthtowellintoitslifeto
thebenefitofthecompany,workforcesandmarket.Thebenefitsofawell-runinnovation
processmayproducethefollowingbenefits;
i.Awell-working,streamlinedprocesstorolloutnewproducts,services,andinitiatives.
ii.Animprovementtoacreativeteam’senvironmentthatgeneratesmoreideas.
iii.Anincreaseinbrandimpact,recognition,andoverallmonetaryefficiency.
iv.Aforward-looking,flexiblecompanystandsbettersuitedtohandlingnewindustrytrends.
v.Higherqualityandcutting-edgeproductsthatleadthecompetition.
vi.Companiesthatregularlyinnovatesuccessfullybecomehouseholdnamesandfindsuccess
intoday’scompetitiveworld.

24. Barriers to Innovation
Abarrierisanythingthatstandsinthewayofachievinganinnovativegoaloridea.
Thebarrierstoinnovationcanbeasaresultofbothinternalandexternalfactors.Internal
factorsincludelackoffinance,lackofskilledpersonnelaswellaslackofadequateResearch
andDevelopment.Externalfactorsontheotherhandincludehighcostofinnovation,lackof
technologicalandmarketinformationandgovernmentpoliciesandregulations.
Governmentpoliciesandregulations:
•Lackoffavorablegovernmentpoliciesandregulationsareinnovationbarriersinthebusiness
environment.Suchfactorsmayincludehightaxes,highcostsandtheprocessesofacquiring
licensesandfailurebythegovernmenttoprovidefinancialsupporttoResearchand
Development.
Lackoftechnology:
•Lowaccess&utilizationofup-to-dateinformationandmaterials,lackoftechnological
transferinstitution,absenceofaccess&usageofinternetservice;inadequateknowledgeof
market&theirdemand,&loweffortfornewtechnologicalmarketstoservearebarriersto
innovation.

25. Barriers to Innovation (cont.)
InadequateResearchandDevelopment
•LackofadequateResearchandDevelopmentisconsideredasabarriertoinnovation.Factors
suchas,inabilitytohaveorganizedR&Doffice&equippedstaffsandlackofengagementon
R&Dcontributesasbarrierstoinnovation.
Highinnovationcosts
•Anotherfactorthatactsasabarriertoinnovationishighcostofinnovation.Suchissuesas
inabilitytoacquirenecessaryskilledhumanpowerandequipment,inabilityofenterprisesto
acquiringexternalcompetence,lackofbudgetallocationforinnovationactivitieshinders
innovation.
Organisationalculture
•Issuestodowithlackofemployeeempowerment,lackofmanagementsupport,poor
communicationorlackofpropercommunicationchannelsaresomeofthefactorsthathinder
innovationinanorganization.

26. Barriers to Innovation (cont.)
Lackofresources
•Anothercommonbarriertoinnovationislackofresources.Thiscanincludetime,money,
people,skills,tools,orinformation.Withoutenoughresources,youmayfeelconstrained,
overwhelmed,orunabletopursueyourinnovationgoals.Youmayalsomissouton
opportunities,insights,orcollaborationsthatcouldenhanceyourinnovationprocess.
•Toovercomethisbarrier,youneedtoprioritizeyourinnovationactivities,allocateyour
resourceswisely,andleverageyourexistingassetsandnetworks.Youalsoneedtoseekout
externalsourcesofresources,suchasgrants,partnerships,mentors,orcustomers,thatcan
supportyourinnovationefforts.
Lackofaclearinnovationstrategy
•Oneofthebiggestbarrierstoinnovationisalackofaclearinnovationstrategy.Withouta
clearstrategy,itcanbedifficultfororganizationstoknowwhattypesofinnovationtopursue
andhowtoallocateresourceseffectively.

27. References
AlissaMariello.(2007,April01).Re:TheFiveStagesofSuccessfulInnovation.Themagazinespring2007.
https://sloanreview.mit.edu/article/the-five-stages-of-successful-innovation/
AllayaCooks-Campbell.(2023,April17).Re:Discover4typesofinnovationandhowtoencouragethem.
http://betterup.com/blog/types-of-innovation.
Arnold,K.(2015,March4).WhereDoesInnovationComeFrom?TheSevenSourcesofInnovation.KristinArnold-the
ExtraordinaryTeam.https://extraordinaryteam.com/where-does-innovation-come-from-the-seven-sources-of-innovation/
DonaldF.Kuratko,RichardM.Hodgets.(2004).Entrepreneurship:Theory,Process,Practice6
th
Ed.ThomsonSouth-Western;
Mason,UnitedState.
DruckerP.F.(1985).InnovationandEntrepreneurship;PracticeandPrinciples.Harper&Row,NewYork.
Drucker,P.F.(2006).Classic:TheManWhoInventedManagement.HarvardBusinessReviewBook.EuropeanFoundationforthe
ImprovementofLivingandWorkingConditions
DigitalLeadership(2024,February15).SourcesofInnovation:OpportunityIdentificationandEntrepreneurship.Digital
LeadershipAG.https://digitalleadership.com/glossary/sources-of-innovation/
JohnBessant,JoeTidd.(2015).InnovationandEntrepreneurship3
rd
Ed.JohnWiley&Sons;Chichester,UnitedKingdom.
JohnBessant,JoeTidd.(2018).Entrepreneurship1
st
.JohnWiley&Sons;Chichester,England.

28. References (cont.)
Massa,S.andTesta,S.(2008).InnovationandSMEs:misalignedperspectivesandgoalsamongentrepreneurs,academics,and
policymakers”,Technovation,Vol.28,No.7,pp.393-407.
MikaMugogo1,AndrewSalauMidala2.(2020).BarrierstoSMEinnovationforperformance:evidencefromZimbabwe.
InternationalJournalofEducationandResearch,Vol.8No.11November2020.
https://www.ijern.com/journal/2020/November-2020/03.pdf
MikeKennard.(2021).InnovationandEntrepreneurship.Routledge,London.
RiverUniversity.CultivatingaRobustOrganization:5StagesoftheInnovationProcess.https://www.rivier.edu/academics/blog-
posts/cultivating-a-robust-organization-5-stages-of-the-innovation-process/
RobertA.Baron,ScottA.Shane.(2008).Entrepreneurship:AProcessPerspective.ThomsonSouth-Western,Mason.
Shyamala,N.(2007),ObstaclestoInnovation:EvidencefromMalaysianManufacturing.UniversityLibraryofMunich,Germany,
MPRAPaperNo.1807.https://mpra.ub.uni-muenchen.de/18077/
Silva,M.,Leitao,J.andRaposo,M.(2007).BarrierstoInnovationfacedbyManufacturingFirmsinPortugal:Howtoovercomeit?
MPRAPaperNo.5408posted07,Nov.2007.
SorenHougard.(2004).TheBusinessIdea:TheEarlyStagesofEntrepreneurship.SpringerHeidelberg,Germany.
Stanford.Aguidetoinnovationmanagement.https://online.stanford.edu/guide-innovation-management