Inside the Entrepreneurial Mind: From Ideas to Reality chapter 02

Business Education

1. Copyright 2008 Prentice Hall Publishing 1Chapter 2: Creativity
Inside the
Entrepreneurial Mind:
From Ideas to Reality

2. Copyright 2008 Prentice Hall Publishing 2Chapter 2: Creativity
Creativity and InnovationCreativity and Innovation
Creativity Creativity – the ability to develop new – the ability to develop new
ideas and to discover new ways of looking ideas and to discover new ways of looking
at problems and opportunities; at problems and opportunities; thinkingthinking
new things.new things.
InnovationInnovation – the ability to apply creative – the ability to apply creative
solutions to problems or opportunities to solutions to problems or opportunities to
enhance or to enrich people’s lives; enhance or to enrich people’s lives; doingdoing
new things. new things.

3. Copyright 2008 Prentice Hall Publishing 3Chapter 2: Creativity
EntrepreneurshipEntrepreneurship

EntrepreneurshipEntrepreneurship – the result of a – the result of a
disciplined, systematic process of applying disciplined, systematic process of applying
creativity and innovation to the needs and creativity and innovation to the needs and
opportunities in the marketplace. opportunities in the marketplace.

Entrepreneurs connect their creative ideas Entrepreneurs connect their creative ideas
with the purposeful action and structure of a with the purposeful action and structure of a
business. business.

4. Copyright 2008 Prentice Hall Publishing 4Chapter 2: Creativity
Failure: Just Part of the Failure: Just Part of the
Creative Process!Creative Process!

For every 3,000 new product ideas:For every 3,000 new product ideas:

Two are actually launched.Two are actually launched.

One becomes a success in the market.One becomes a success in the market.

On average, new products account for 40 percent On average, new products account for 40 percent
of companies’ sales!!of companies’ sales!!

Creativity is an important source for building a Creativity is an important source for building a
competitive advantage. competitive advantage.

5. Copyright 2008 Prentice Hall Publishing 5Chapter 2: Creativity
Can We Can We LearnLearn to Be Creative? to Be Creative?
By overcoming paradigms and by suspendingBy overcoming paradigms and by suspending
conventional thinking long enough to consider newconventional thinking long enough to consider new
and different alternatives!and different alternatives!
Yes!

6. Copyright 2008 Prentice Hall Publishing 6Chapter 2: Creativity
Creative ThinkersCreative Thinkers

Always ask, “Is there a better way?”Always ask, “Is there a better way?”

Challenge custom, routine, and tradition.Challenge custom, routine, and tradition.

Are reflective.Are reflective.

Are prolific thinkers. Are prolific thinkers.

Play mental games.Play mental games.

7. Copyright 2008 Prentice Hall Publishing 7Chapter 2: Creativity
Creative ThinkersCreative Thinkers

Realize that there may be more than one Realize that there may be more than one
“right” answer. “right” answer.

See mistakes as pit stops on the way to See mistakes as pit stops on the way to
success.success.

See problems as springboards for new ideas. See problems as springboards for new ideas.

Relate seemingly unrelated ideas to a Relate seemingly unrelated ideas to a
problem. problem.

Have “helicopter skills.” Have “helicopter skills.”

8. Copyright 2008 Prentice Hall Publishing 8Chapter 2: Creativity
Barriers to CreativityBarriers to Creativity

Searching for the one “right” Searching for the one “right”
answer answer

Focusing on “being logical”Focusing on “being logical”

Blindly following the rulesBlindly following the rules

Constantly being practicalConstantly being practical

Viewing play as merryViewing play as merry

9. Copyright 2008 Prentice Hall Publishing 9Chapter 2: Creativity
Barriers to CreativityBarriers to Creativity

Becoming overly specializedBecoming overly specialized

Avoiding ambiguityAvoiding ambiguity

Fearing looking foolishFearing looking foolish

Fearing mistakes and failureFearing mistakes and failure

Believing that “I’m not creative”Believing that “I’m not creative”

10. Copyright 2008 Prentice Hall Publishing 10Chapter 2: Creativity
Questions to Spur the Questions to Spur the
ImaginationImagination

Is there a new way to do it?Is there a new way to do it?

Can you borrow or adapt it?Can you borrow or adapt it?

Can you give it a new twist?Can you give it a new twist?

Do you merely need more of the same?Do you merely need more of the same?

Less of the same?Less of the same?

11. Copyright 2008 Prentice Hall Publishing 11Chapter 2: Creativity
Questions to Spur the Questions to Spur the
ImaginationImagination

Is there a substitute?Is there a substitute?

Can you rearrange the parts?Can you rearrange the parts?

What if you do just the opposite?What if you do just the opposite?

Can you combine ideas?Can you combine ideas?

Can you put it to other uses?Can you put it to other uses?

12. Copyright 2008 Prentice Hall Publishing 12Chapter 2: Creativity
Questions to Spur the Questions to Spur the
ImaginationImagination

What else could you make from this?What else could you make from this?

Are there other markets for it?Are there other markets for it?

Can you reverse it?Can you reverse it?

Can you rearrange it? Can you rearrange it?

What idea seems impossible, but if executed What idea seems impossible, but if executed
would revolutionize your business?would revolutionize your business?

13. Copyright 2008 Prentice Hall Publishing 13Chapter 2: Creativity
Tips for Enhancing Tips for Enhancing
Organizational CreativityOrganizational Creativity

Include creativity as a core Include creativity as a core
company valuecompany value

Embrace diversityEmbrace diversity

Expect creativityExpect creativity

Expect and tolerate failure Expect and tolerate failure

Encourage creativityEncourage creativity

14. Copyright 2008 Prentice Hall Publishing 14Chapter 2: Creativity
Tips for Enhancing Tips for Enhancing
Organizational CreativityOrganizational Creativity

Create a change of scenery Create a change of scenery
periodicallyperiodically

View problems as challengesView problems as challenges

Provide creativity trainingProvide creativity training

Provide supportProvide support

Develop a procedure for Develop a procedure for
capturing ideascapturing ideas

15. Copyright 2008 Prentice Hall Publishing 15Chapter 2: Creativity
Tips for Enhancing Tips for Enhancing
Organizational CreativityOrganizational Creativity

Talk with customersTalk with customers

Look for uses for your Look for uses for your
company’s products or company’s products or
services in other marketsservices in other markets

Reward creativityReward creativity

Model creative behaviorModel creative behavior

16. Copyright 2008 Prentice Hall Publishing 16Chapter 2: Creativity
Tips for Enhancing Individual Tips for Enhancing Individual
CreativityCreativity

Allow yourself to be creativeAllow yourself to be creative

Give your mind fresh input every dayGive your mind fresh input every day

Observe the products and services of other Observe the products and services of other
companies, especially those in completely companies, especially those in completely
different marketsdifferent markets

Recognize the creative power of mistakesRecognize the creative power of mistakes

17. Copyright 2008 Prentice Hall Publishing 17Chapter 2: Creativity
Tips for Enhancing Individual Tips for Enhancing Individual
CreativityCreativity

Keep a journal handy to record your thoughts Keep a journal handy to record your thoughts
and ideasand ideas

Listen to other peopleListen to other people

Listen to customersListen to customers

Talk to a childTalk to a child

Keep a toy box in your officeKeep a toy box in your office

Read books on stimulating creativity or take a Read books on stimulating creativity or take a
class on creativityclass on creativity

Take some time offTake some time off

18. Copyright 2008 Prentice Hall Publishing 18Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

19. Copyright 2008 Prentice Hall Publishing 19Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

20. Copyright 2008 Prentice Hall Publishing 20Chapter 2: Creativity
PreparationPreparation

Get your mind ready for creative thinking.Get your mind ready for creative thinking.

Adopt the attitude of a lifelong student.Adopt the attitude of a lifelong student.

Read …a lot…and not just in your field of Read …a lot…and not just in your field of
expertise.expertise.

Clip articles of interest to you and file them.Clip articles of interest to you and file them.

Take time to discuss your ideas with other Take time to discuss your ideas with other
people. people.

21. Copyright 2008 Prentice Hall Publishing 21Chapter 2: Creativity
PreparationPreparation

Get your mind ready for creative thinking.Get your mind ready for creative thinking.

Join professional or trade associations and Join professional or trade associations and
attend their meetings.attend their meetings.

Study other countries and their cultures and Study other countries and their cultures and
travel.travel.

Develop your listening skills. Develop your listening skills.

Eliminate creative distractions. Eliminate creative distractions.

22. Copyright 2008 Prentice Hall Publishing 22Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

23. Copyright 2008 Prentice Hall Publishing 23Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

24. Copyright 2008 Prentice Hall Publishing 24Chapter 2: Creativity
TransformationTransformation

Involves viewing both the similarities and Involves viewing both the similarities and
the differences among the information the differences among the information
collected. collected.

Two types of thinking required:Two types of thinking required:

ConvergentConvergent – the ability to see the similarities – the ability to see the similarities
and the connections among various and often and the connections among various and often
diverse data and events. diverse data and events.

DivergentDivergent – the ability to see the differences – the ability to see the differences
among various data and events. among various data and events.

25. Copyright 2008 Prentice Hall Publishing 25Chapter 2: Creativity
TransformationTransformation

How can you transform information into How can you transform information into
purposeful ideas? purposeful ideas?

Grasp the “big picture” by looking for patterns Grasp the “big picture” by looking for patterns
that emerge.that emerge.

Rearrange the elements of the situation.Rearrange the elements of the situation.

Use synectics, taking two seeming nonsensical Use synectics, taking two seeming nonsensical
ideas and combining them. ideas and combining them.

Remember that several approaches can be Remember that several approaches can be
successful. If one fails, jump to another. successful. If one fails, jump to another.

26. Copyright 2008 Prentice Hall Publishing 26Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

27. Copyright 2008 Prentice Hall Publishing 27Chapter 2: Creativity
IncubationIncubation

Allow your subconscious to reflect on the Allow your subconscious to reflect on the
information collected.information collected.

Walk away from the situation.Walk away from the situation.

Take the time to daydream.Take the time to daydream.

Relax – and play – regularly.Relax – and play – regularly.

Dream about the problem or opportunity.Dream about the problem or opportunity.

Work on it in a different environment. Work on it in a different environment.

28. Copyright 2008 Prentice Hall Publishing 28Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

29. Copyright 2008 Prentice Hall Publishing 29Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

30. Copyright 2008 Prentice Hall Publishing 30Chapter 2: Creativity
VerificationVerification

Validate the idea as accurate and useful. Validate the idea as accurate and useful.

Is it Is it reallyreally a better solution? a better solution?

Will it work?Will it work?

Is there a need for it?Is there a need for it?

If so, what is the best application of this idea in the If so, what is the best application of this idea in the
marketplace?marketplace?

Does this product or service fit into our core Does this product or service fit into our core
competencies?competencies?

How much will it cost to produce or to provide? How much will it cost to produce or to provide?

Can we sell it at a reasonable price?Can we sell it at a reasonable price?

31. Copyright 2008 Prentice Hall Publishing 31Chapter 2: Creativity
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation

32. Copyright 2008 Prentice Hall Publishing 32Chapter 2: Creativity
Techniques for Improving the Techniques for Improving the
Creative ProcessCreative Process

BrainstormingBrainstorming

Goal is to create a large Goal is to create a large quantityquantity of novel and of novel and
imaginative ideas. imaginative ideas.

33. Copyright 2008 Prentice Hall Publishing 33Chapter 2: Creativity
Brainstorming GuidelinesBrainstorming Guidelines

Keep the group small – “Two pizza rule.”Keep the group small – “Two pizza rule.”

Make the group as diverse as possible.Make the group as diverse as possible.

Company rank is irrelevant.Company rank is irrelevant.

Have a well-defined problem, but don’t reveal it Have a well-defined problem, but don’t reveal it
ahead of time.ahead of time.

Limit the session to 40 to 60 minutes.Limit the session to 40 to 60 minutes.

Take a field trip.Take a field trip.

Appoint a recorder.Appoint a recorder.

34. Copyright 2008 Prentice Hall Publishing 34Chapter 2: Creativity
Brainstorming GuidelinesBrainstorming Guidelines

Use a seating pattern that encourages interaction.Use a seating pattern that encourages interaction.

Throw logic out the window.Throw logic out the window.

Encourage Encourage allall ideas from the team. ideas from the team.

Shoot for quantity of ideas over quality of ideas. Shoot for quantity of ideas over quality of ideas.

Forbid criticism.Forbid criticism.

Encourage idea “hitch-hiking.” Encourage idea “hitch-hiking.”

Dare to imagine the unreasonable. Dare to imagine the unreasonable.

35. Copyright 2008 Prentice Hall Publishing 35Chapter 2: Creativity
Techniques for Improving the Techniques for Improving the
Creative ProcessCreative Process

Mind-mappingMind-mapping

A graphical technique that encourages thinking on both A graphical technique that encourages thinking on both
sides of the brain, visually displays relationships among sides of the brain, visually displays relationships among
ideas, and improves the ability to see a problem from ideas, and improves the ability to see a problem from
many sides.many sides.

BrainstormingBrainstorming

Goal is to create a large Goal is to create a large quantityquantity of novel and of novel and
imaginative ideas. imaginative ideas.

36. Copyright 2008 Prentice Hall Publishing 36Chapter 2: Creativity
Techniques for Improving the Techniques for Improving the
Creative ProcessCreative Process

TRIZTRIZ

A systematic approach designed to solve any technical A systematic approach designed to solve any technical
problem, whatever its source. problem, whatever its source.

Relies on 40 principles and left-brained thinking to solve Relies on 40 principles and left-brained thinking to solve
problems. problems.

Rapid prototypingRapid prototyping

Transforming an idea into an actual model that will point out Transforming an idea into an actual model that will point out
flaws and lead to design improvements.flaws and lead to design improvements.

37. Copyright 2008 Prentice Hall Publishing 37Chapter 2: Creativity
Protecting Your IdeasProtecting Your Ideas

PatentPatent – a grant from the Patent and – a grant from the Patent and
Trademark Office to the inventor of a Trademark Office to the inventor of a
product, giving the exclusive right to make, product, giving the exclusive right to make,
use, or sell the invention for 20 years from use, or sell the invention for 20 years from
the date of filing the patent application. the date of filing the patent application.

38. -
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19 7 5 19 8 0 19 8 5 19 9 019 9 5 19 9 7 19 9 8 19 9 9 2 0 0 02 0 0 12 0 0 22 0 0 32 0 0 4
Number of Patent Applications and Patents Issued
Patent Applications
Patents Issued

39. Copyright 2008 Prentice Hall Publishing 39Chapter 2: Creativity
The Steps to a PatentThe Steps to a Patent
Establish the invention’s novelty
Document the device
Search existing patents
Submit the patent application
Prosecute the patent application
Study search results

40. Copyright 2008 Prentice Hall Publishing 40Chapter 2: Creativity
Protecting Your IdeasProtecting Your Ideas

TrademarkTrademark – any distinctive word, symbol, – any distinctive word, symbol,
design, name, logo, slogan, or trade dress a design, name, logo, slogan, or trade dress a
company uses to identify the origin of a company uses to identify the origin of a
product or to distinguish it from other goods product or to distinguish it from other goods
on the market. on the market.

ServicemarkServicemark – the same as a trademark – the same as a trademark
except that it identifies the source of a except that it identifies the source of a
service rather than a product. service rather than a product.

41. -
50 , 0 0 0
10 0 , 0 0 0
150 ,0 0 0
2 0 0 , 0 0 0
2 50 , 0 0 0
3 0 0 , 0 0 0
3 50 , 0 0 0
19 8 019 8 519 9 0 19 9 519 9 719 9 819 9 92 0 0 02 0 0 12 0 0 22 0 0 32 0 0 4
Trademark Applications and Trademarks Issued
Trademark A pplications
Trademarks and R enewals Issued

42. Copyright 2008 Prentice Hall Publishing 42Chapter 2: Creativity
Protecting Your IdeasProtecting Your Ideas

CopyrightCopyright – an exclusive right that protects – an exclusive right that protects
the creators of original works of authorship the creators of original works of authorship
such as literary, dramatic, musical, and such as literary, dramatic, musical, and
artistic works. artistic works.

Copyrighted material is denoted by the Copyrighted material is denoted by the
symbol symbol ©. ©.

43. Protecting Your IdeasProtecting Your Ideas
Type of Type of
ProtectionProtection
What It What It
Covers Covers
Time Time
RequiredRequired

CostCost
CopyrightCopyright Works of original Works of original
authorshipauthorship
About 2 weeksAbout 2 weeksAbout $30About $30
TrademarkTrademark Logos, names, Logos, names,
phrasesphrases
6 – 12 months6 – 12 months$900 - $1,500$900 - $1,500
Design patentDesign patentLook of an Look of an
original productoriginal product
Up to 2 yearsUp to 2 years$5,000 - $20,000$5,000 - $20,000
Utility patentUtility patentHow an original How an original
product worksproduct works
2 – 5 years2 – 5 years $5,000 - $20,000$5,000 - $20,000
Business method Business method
patentpatent
A business A business
processprocess
2 – 5 years2 – 5 years $5,000 - $20,000$5,000 - $20,000
Source: Anne Field, “How to Knock Out Knock Offs,” Source: Anne Field, “How to Knock Out Knock Offs,” Business WeekBusiness Week, March 14, 2005. , March 14, 2005.