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CHAPTER 5 for students (2)

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12 views3 pages

CHAPTER 5 for students (2)

Uploaded by

kodirovdiyorbek4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 5

Innovation: The Creative Pursuit of Ideas

1. Opportunity Identification: The Search for New Ideas


1) Opportunity identification is central to the domain of entrepreneurship
and revolves around the answers to the questions of why, when, and how.
2) Sources of Innovative Ideas
a) Trends: Societal, Technology, Economic, Government.
b) Unexpected occurrences
c) Incongruities
d) Process needs
e) Industry and market changes
f) Demographic changes
g) Perceptual changes
h) Knowledge-based concepts

2. Entrepreneurial Imagination and Creativity


1) Sources of innovative ideas into potential opportunities. Ideas are
distilled into opportunities through personal work, experience, and
education, general industry knowledge, prior market knowledge, prior
customer understanding, specific interest knowledge, previous knowledge.
2) Creative thinking is blended with imagination in a logical process.
3) Entrepreneurs develop an ability to see, recognize, and create
opportunities where others find only problems.
4) Creativity is the generation of ideas that results in the improved
efficiency or effectiveness of a system. People will sometimes adapt a
solution and will sometimes formulate a highly innovative solution.
5) The nature of the creative process
a) Creativity is a process that can be developed and improved. Some
individuals have a greater aptitude for creativity than others.
b) There are four phases to the creative process:
- Phase 1: Background or knowledge accumulation
- Phase 2: The incubation process
- Phase 3: The idea experience
- Phase 4: Evaluation and implementation
6) A Creative Exercise
a) Look at things and people in nonconventional ways and from a
different perspective.
b) Eliminating muddling mindsets: Many inventions and innovations are
a result of seeing new and different relationships among objects,
processes, materials, technologies, and people.
- Mental habits, which block or impede creative thinking, include:
• Either/or thinking: concern for certainty
• Security hunting: concern for risk
• Stereotyping: abstracting reality
• Probability thinking: seeking predictable results
- Exercises to eliminate muddling mindsets
• Practice with small risks
• Talk to people who might conform to a common stereotype
• Take on complex projects with an ambiguous result
• Think of all positive aspects of any new idea first
• Listen, simply listen
• Make a decision in the present
7) Creativity is most likely to occur when the business climate is right.
Some important characteristics of this climate include:
a) A trustful management that does not overcontrol employees
b) Open channels of communication among all business members
c) Considerable contact and communication with outsiders
d) A large variety of personality types
e) A willingness to accept change
f) An enjoyment in experimenting with new ideas
g) Little fear of negative consequences for making a mistake
h) The selection and promotion of employees on the basis of merit
i) The use of techniques that encourage ideas, including suggestion
systems and brainstorming
j) Sufficient financial, managerial, human, and time resources for
accomplishing goals
8) Innovation and the Entrepreneur
a) Innovation is a key function of the entrepreneurship process. It is the
process by which entrepreneurs convert opportunities into marketable
ideas.
b) The Innovation Process: The innovation process is more than just a
good idea. Innovation combines the vision to create a good idea with the
perseverance to implement the concept.
c) Types of Innovation
- Invention: Creation of a new product, service, or process.
- Extension: Expansion of a product, service, or process.
- Duplication: Replication of an already existing product, service, or
process adding own creative touch.
- Synthesis: The combination of existing concepts and factors into a
new formulation.
d) The Major Misconceptions of Innovation
- Misconception 1: Innovation is planned and predictable.
Truth: Innovation is unpredictable and may be introduced by anyone.
- Misconception 2: Technical specifications must be thoroughly prepared.
Truth: Quite often, it is more important to use a try/test/revise
approach.
- Misconception 3: Innovation relies on dreams and blue-sky ideas.
Truth: Innovators create from opportunities not daydreams.
- Misconception 4: Big projects will develop better innovations than
smaller ones.
Truth: Smaller groups foster creative ideas better.
- Misconception 5: Technology is the driving force of innovation success.
Truth: Not the only source.
Truth: Market-driven innovations have the highest probability of
success.
9) Principles of Innovation
a) Be action oriented; search for new ideas.
b) Make the product, process, or service simple and understandable.
c) Make the product, process, or service customer based.
d) Start small; begin small, plan for proper expansion.
e) Aim high; seek a niche in the marketplace.
f) Try/test/revise; help work out flaws.
g) Learn from failures.
h) Follow a milestone schedule; have schedule in order to plan and
evaluate the project.
i) Reward heroic activity and give it respect.
j) Work, work, work!

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