Chapter 2Creativity and Innovation

Identifying Business Opportunities

Creativity and InnovationCreativity InnovationAbility to develop new

ideas

Discovering new ways to approach old problems

It’s tough to teach someone to be creative!

Applying creativity to new product or services

Making something new for society from a creative process

The Importance of InnovationCreative destruction

Joseph Schumpeter

Small companies can out-innovate their larger competitors, who can spend more.

Innovation is necessary because people’s tastes change, and because innovations fail.

Innovation TypesInnovation usually comes from something

already in existenceThis is called incremental innovation.

Innovation that completely breaks the mold is called radical innovation.

ParadigmsOur preconceived thoughts on how the world

worksWhen you get up, what do you do every day?What are you going to do after graduation?How will you get to the mall?What are you going to buy to fill a new house?

Why do we have paradigms?What do they have to do with being creative?

Cognitive ScienceLeft Brain –

Linear, logical thinking

Right Brain – Parallel, kaleidoscopic thinking

Successful entrepreneurs rely on BOTH halves of their brain.

The Impact of Art and PlayHow many of you still practice some form of

art?

We can strengthen and release the right side of our brains, that side that is creative, by painting, sculpting, playing, or dancing.

Play brings us back to the frivolous side we had as children, before the structure of rules locked our creativity away.

What Things Keep Us from Being Creative?The Right Answer SyndromeFollowing RulesForgetting to PlayForgetting to Enrich OurselvesFear of Seeming Foolish or Making a MistakeDoubt in Ourselves and Our Ideas

Think about this in terms of the culture you want to create at your business!

The Process to Enhance Creativity1. Prepare! (get some background)2. Investigate! (understand the opportunity)3. Transform! (put the pieces together in

different ways – convergent and divergent thinking)

4. Incubate! (Rest – let it all gel by itself)5. Illumination! (The A-Ha! moment happens)6. Verify! (Make sure)7. Implement! (Carry it through)

Cognitive ScienceConvergent thinking:

Noticing how things are the same RadarGolf

Divergent thinking:Figuring out how things could be better by

being different Life Is Good Around the Way Dog

Other Creativity TechniquesBrainstorming

Small group of people interact about a problem with little structure

Mind MappingDraw your cognitive process from one idea to

the next to show relationships

Force Field AnalysisList prose and cons and give them strength

values to reflect how critical each force is.

Protecting Your IdeasPatents

On things – typically last 20 yearsObject must be new, not obvious, and usefulCannot be filed on something that is already distributed or

soldCan take 3 years to receive a decisionDoes not protect you from the cost of patent litigation!Costs around $5K- $20K to register!

TrademarksOn logos, symbols, phrases, or brand namesPerpetual in length of timeCosts about $1000 to register

Protecting Your IdeasCopyrights

On literary, dramatic, musical, and artistic works

Like trademark, has a common law component that is enforceable WITHOUT registering with USPTO.

Lasts for life of creator + 70 years after death.Costs $35 to $45 to register

OpportunitiesA chance to assemble resources and earn profits

An unmet need that exists

Opportunities need to be Attractive

Durable

Timely

Anchored