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Topic 3 : Developing Entrepreneurial Creativity

and Innovation.3.1 What is creativity?

3.2 Process of creativity

3.3 Barriers to creativity

3.4 How to generate creative ideas

3.5 Characteristics of creative individual

3.6 What is innovation?

3.7 The importance of creativity and innovation forentrepreneurs

3.8 Strategies to Encourage Creativity and

Innovation

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3.1 What is Creativity?

Creativity is the ability to produce

work that is novel (original and

unexpected), high in quality and

appropriate (useful, meets task

constraints)(Stemberg, Kaufman and Pretz, 2002)

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3.2 The Process of Creativity

(The Creative thinking process)

Knowledge Accumulation

The more knowledge you accumulated,

the greater is the pool of resources

you can bring to generate new ideas.

Incubation

Relax and do something unrelated to the problem.

Ideas

Eureka I found it! Moment of inspiration.

Evaluation and Implementation

Developing ideas into useful and practical applications.

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Barriers to Creativity3.3

1. Personal beliefs

negative thinking

2. Fear of criticism

Follow routines rather than

do things differently

4. Stress

Stress happens when

people feel that they are

facing or enduring

extraordinary demands ,

constraints or opportunities

and are uncertain about

their ability to handle it

effectively

3. Over- Management

Too hectic working

environment does not

provide space for

workers to be creative.

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3.4 How to Generate Creative Ideas

a) Brainstorming

4 to 7 members suggest ideas

The more ideas, the better

All ideas are acceptable

Use other group members ideas to generate

more ideas

Criticism or evaluation of ideas is not allowed

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b) Forced Analogy

The idea is to compare the problem withsomething else that has little or nothing in

common and gaining new insights as a result

Forced Relationship is basically a technique offorcing yourself to think of your organizations

brand in terms of another product or industry.

E.g. music and computers.

computer and network technologies...

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c) DO IT

D Define problem

O Open mind and apply

creative technique

I Identify best solution

T Transform

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d) Mind Mapping

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e) Nominal Group

Generate ideas and evaluate solutions face to

face in non-threatening group

Write down silently as many ideas as possible

Member vote privately on the priority of ideas

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3.5. 8 Characteristics of Creative Individual

1. Remarkably humble and proud at the same time2. Very passionate about their work, yet they can be

extremely objective about it as well.

3. Brave to try new thing

4. Open minded and willing to accept criticism from others5. Have a combination of playfulness and discipline, or

responsibility and irresponsibility

6. Tend to have high self-control

7. Goal-directed, deliberate and considerate in making anydecision.

8. Willing to take calculated risks.

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3.6 What is innovation?

finding ways to deliver new or better goods

or services

Kinicki and Williams (2003)

The creation of something new in the

marketplace that alters the supply-demandequation

Chell (2001)

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Types of innovation3.6.1

Invention Extension Duplication Synthesis

The act of

Creating a new

Product,

Service orprocess

Expand existing

Product lines,

Services or

Processes.

Replicate existing

Product, services

or process

Combining

separate parts

or elements

into a new wholeformulation

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3.6.2 Sources of Innovation

1. Unexpected events (e.g. SARS, H1N1.)2. New-knowledge Concept (handset, laptop

etc)

3. Changes of Demographics (standard ofliving and income increase--- demands for

luxury goods and health care products)

4. Process Needs

(healthy society--- health facilities or

centres)

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1. Organisation Does not Encourage Innovation

2. Insufficient Sources

3. Traditional Management Behaviour

1. Fear of change

2. Fear of failure

3. Self-image block

4. Fear of trying

5. Fear of making mistakes

6. Improper motivation

Barriers to innovation

3.6.3

Barriers to Innovation derived from Personal or Individual Bahaviour

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3.7 The importance of creativity and innovation

for entrepreneurs To ensure an organisations survival

(e.g Nokia handset)

To explore new markets

(Philips --- DVD)

To exploit natural resources(utilise the wealth of resources

without harming the environment)

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3.8 Four strategies to encourage creativity and

innovation in the organisation.

1. Recognise your own ability

2. Change your perception

3. Change the organisational culture

4. Dare to fail

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Future laptop