Inside the Entrepreneurial Mind: From Ideas to Reality Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall CHAPTER 2

Inside the Entrepreneurial Mind: Inside the Entrepreneurial Mind: From Ideas to RealityFrom Ideas to Reality

Inside the Entrepreneurial Mind: Inside the Entrepreneurial Mind: From Ideas to RealityFrom Ideas to Reality

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

CHAPTER CHAPTER 22

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2 - 2Ch. 2: Inside the Entrepreneurial Mind

Creativity and InnovationCreativity and Innovation

Creativity Creativity – the ability to develop – the ability to develop new ideas and to discover new ways new ideas and to discover new ways of looking at problems and of looking at problems and opportunities; opportunities; thinkingthinking new things new things

InnovationInnovation – the ability to apply – the ability to apply creative solutions to problems or creative solutions to problems or opportunities to enhance or to enrich opportunities to enhance or to enrich people’s lives; people’s lives; doingdoing new things. new things.


EntrepreneurshipEntrepreneurship

EntrepreneurshipEntrepreneurship – the result of a – the result of a disciplined, systematic process of disciplined, systematic process of applying creativity and innovation to applying creativity and innovation to the needs and opportunities in the the needs and opportunities in the marketplace. marketplace.

Entrepreneurs connect their creative Entrepreneurs connect their creative ideas with the purposeful action and ideas with the purposeful action and structure of a business. structure of a business.


Failure: Part of the Failure: Part of the Creative Process!Creative Process!

For every 3,000 new product ideas:For every 3,000 new product ideas: Four make it to the development stage.Four make it to the development stage. 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% On average, new products account for 40% of companies’ sales!!of companies’ sales!!

Creativity is an important source of building Creativity is an important source of building a competitive advantage. a competitive advantage.


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 toconventional thinking long enough to

consider new and different alternatives!consider new and different alternatives!

Yes!


How Creative Are You?How Creative Are You? HundredHundred

Chun HundredChun Hundred




OO

RR

H EH E

S WS W

S S

Umph Umph UmphUmph Umph Umph

Of the SpiritOf the Spirit

Grace.Grace.

StandStand

II

S MediaS Media

2 1111 STO CK2 1111 STO CK THEBLUEFACETHEBLUEFACE

IntensityIntensity

S H E E TS H E E T

ObjectionObjection

RuledRuled

W E B W E B Roll RollRoll Roll

Roy RoyRoy Roy

Tomb of 210,NTomb of 210,N

Scholar


How Creative Are You?How Creative Are You?

Fortune 500Fortune 500 Scattered Scattered ShowersShowers

Triumph of the Triumph of the SpiritSpirit

Grace PeriodGrace Period

Rhodes ScholarRhodes Scholar I UnderstandI Understand Spring BreakSpring Break Media BiasMedia Bias

Two for One Two for One Stock SplitStock Split

Blue in the FaceBlue in the Face High IntensityHigh Intensity SpreadsheetSpreadsheet

Objection Objection OverruledOverruled

Web Links Web Links Rolls RoyceRolls Royce Tomb of Tomb of TutankhamenTutankhamen


Right-Brained, Right-Brained, Creative ThinkersCreative Thinkers

Always ask: “Is there a better way?”Always ask: “Is there a better way?” Challenge custom, routine, and Challenge custom, routine, and

tradition.tradition. Are reflective.Are reflective. Are prolific thinkers. Are prolific thinkers. Play mental gamesPlay mental games..



Realize that there may be more than one Realize that there may be more than one “right” answer. “right” answer.

Know that mistakes are pit stops on the Know that mistakes are pit stops on the way to success.way to success.

Recognize that problems are Recognize that problems are springboards for new ideas. springboards for new ideas.



Understand that failure is a natural part Understand that failure is a natural part of the creative process. of the creative process.

Relate seemingly unrelated ideas to a Relate seemingly unrelated ideas to a problem. problem.

Have “helicopter skills.” Have “helicopter skills.”


Left-Brained or Left-Brained or Right-Brained?Right-Brained?

Entrepreneurship requires Entrepreneurship requires bothboth left-and left-and right-brained thinking.right-brained thinking.

Right-brained thinking draws on Right-brained thinking draws on divergentdivergent reasoning, the ability to create a multitude reasoning, the ability to create a multitude of original, diverse ideas.of original, diverse ideas.

Left-brained thinking counts on Left-brained thinking counts on convergentconvergent reasoning, the ability to reasoning, the ability to evaluate multiple ideas and to choose the evaluate multiple ideas and to choose the best solution to a problem. best solution to a problem.


Barriers to CreativityBarriers to Creativity

Searching for the one “right” answer Searching for the one “right” answer

Focusing on “being logical”Focusing on “being logical”

Blindly following the rulesBlindly following the rules

Constantly being practicalConstantly being practical

Viewing play as frivolousViewing play as frivolous


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 Believing that “I’m not creative”creative”


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? Do you need less of the same?Do you need less of the same?



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?

(continued)



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 eliminate it? Can you eliminate it? Can you put it to another use?Can you put it to another use? What idea seems impossible, but if What idea seems impossible, but if

executed, would revolutionize your executed, would revolutionize your business?business?

(continued)


Tips for Enhancing Tips for Enhancing Organizational CreativityOrganizational Creativity

Include creativity as a core company Include creativity as a core company valuevalue

Embrace diversityEmbrace diversity Expect creativityExpect creativity Expect and tolerate failure Expect and tolerate failure Create an organizational structure that Create an organizational structure that

nourishes creativitynourishes creativity



Encourage curiosityEncourage curiosity Create a change of scenery periodicallyCreate a change of scenery periodically View problems as opportunitiesView problems as opportunities Provide creativity trainingProvide creativity training Provide supportProvide support Develop a procedure for capturing ideas Develop a procedure for capturing ideas

(continued)



Talk and interact with customersTalk and interact with customers Look for uses for your company’s Look for uses for your company’s

products or services in other marketsproducts or services in other markets Reward creativityReward creativity Model creative behavior Model creative behavior


Tips for Enhancing Tips for Enhancing Individual CreativityIndividual Creativity

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 servicesObserve the products and services

of other companies, especially of other companies, especially those in completely different marketsthose in completely different markets

Recognize the creative Recognize the creative power of mistakespower of mistakes

Notice what is missingNotice what is missing



Keep a journal to record your thoughts Keep a journal 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 Do something ordinary in an unusual Do something ordinary in an unusual

wayway



Keep a toy box in your officeKeep a toy box in your office Do not throw away seeming “bad” Do not throw away seeming “bad”

ideasideas Read books on stimulating creativity or Read books on stimulating creativity or

take a class on creativitytake a class on creativity Take some time offTake some time off Be persistentBe persistent


The Creative ProcessThe Creative Process

PreparationPreparation InvestigationInvestigation TransformationTransformation

IncubationIncubation IlluminationIllumination VerificationVerification

ImplementationImplementation







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 save Clip articles of interest to you and save

them.them. Take time to discuss your ideas with other Take time to discuss your ideas with other

people. people.


PreparationPreparation

Get your mind ready for creative thinking.Get your mind ready for creative thinking. Join professional or trade associations Join professional or trade associations

and attend their meetings.and attend their meetings. Study other countries and their cultures.Study other countries and their cultures. Travel to new places.Travel to new places. Develop your listening skills. Develop your listening skills. Eliminate creative distractions. Eliminate creative distractions.












TransformationTransformation Involves viewing both the similarities and the Involves viewing both the similarities and the

differences among the information collected. differences among the information collected. Two types of thinking are required:Two types of thinking are required:

ConvergentConvergent – the ability to see the – the ability to see the similarities and the connections among similarities and the connections among various and often diverse data and events. various and often diverse data and events.

DivergentDivergent – the ability to see the – the ability to see the differences among various data and differences among various data and events. events.


TransformationTransformation How can you transform information How can you transform information

into purposeful ideas? into purposeful ideas? Grasp the “big picture” by looking for Grasp the “big picture” by looking for

patterns that emerge.patterns that emerge. Rearrange the elements of the situation.Rearrange the elements of the situation. Use Use synecticssynectics, taking two seeming , taking two seeming

nonsensical ideas and combining them. nonsensical 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.







IncubationIncubation Allow your subconscious to reflect on Allow your subconscious to reflect on

the information collected.the 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 Dream about the problem or

opportunity.opportunity. Work on the problem in a different Work on the problem in a different

environment. environment.












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 If so, what is the best application of this

idea in the marketplace?idea in the marketplace? Does this product or service fit into our Does this product or service fit into our

core competencies?core competencies? How much will it cost to produce or to How much will it cost to produce or to

provide? provide? Can we sell it at a reasonable price that will Can we sell it at a reasonable price that will

produce a profit?produce a profit?







Techniques for Improving Techniques for Improving the Creative Processthe Creative Process

Brainstorming:Brainstorming:

The goal is to create a large The goal is to create a large quantityquantity of novel and imaginative ideas. of novel and imaginative ideas.


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. Emphasize that company rank is Emphasize that company rank is

irrelevant.irrelevant. Have a well-defined problem, but don’t Have a well-defined problem, but don’t

reveal it ahead of time.reveal it 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.


Brainstorming GuidelinesBrainstorming Guidelines

Use a seating pattern that encourages Use a seating pattern that encourages interaction.interaction.

Throw logic out the window.Throw logic out the window. Encourage Encourage allall ideas from the team. ideas from the team. Shoot for Shoot for quantityquantity of ideas over of ideas over qualityquality of of

ideas. ideas. ForbidForbid criticism. criticism. Encourage idea “hitch-hiking.” Encourage idea “hitch-hiking.” Dare to imagine the unreasonable. Dare to imagine the unreasonable.


Techniques for Improving the Techniques for Improving the Creative ProcessCreative Process

BrainstormingBrainstorming The goal is to create a large The goal is to create a large quantityquantity of of

novel and imaginative ideas. novel and imaginative ideas.

Mind-mappingMind-mapping A graphical technique that encourages A graphical technique that encourages

thinking on both sides of the brain, thinking on both sides of the brain, visually displays relationships among visually displays relationships among ideas, and improves the ability to see a ideas, and improves the ability to see a problem from many sides. problem from many sides.



Force Field AnalysisForce Field Analysis A useful technique for evaluating the A useful technique for evaluating the

forces that support and oppose a forces that support and oppose a proposed change. proposed change.

Three columns: Three columns: Center: Problem to be addressedCenter: Problem to be addressed Left: Driving forcesLeft: Driving forces Right: Restraining forcesRight: Restraining forces

Score each force (-1 to +4) and add them.Score each force (-1 to +4) and add them.


FIGURE 2.2 Sample Force Field Analysis



TRIZTRIZ A systematic approach designed to solve A systematic approach designed to solve

any technical problem. any technical problem. Relies on 40 principles and left-brained Relies on 40 principles and left-brained

thinking to solve problems. thinking to solve problems.




TRIZTRIZ A systematic approach designed to solve A systematic approach designed to solve

any technical problem. any technical problem. Relies on 40 principles and left-brained Relies on 40 principles and left-brained

thinking to solve problems. thinking to solve problems.

Rapid PrototypingRapid Prototyping Transforming an idea into an actual model Transforming an idea into an actual model

that will point out flaws and lead to design that will point out flaws and lead to design improvements. improvements.


Protecting Your IdeasProtecting Your Ideas

PatentPatent – a grant from the Patent and – a grant from the Patent and Trademark Office to the inventor of Trademark Office to the inventor of product, giving the exclusive right to product, giving the exclusive right to make, use, or sell the invention for make, use, or sell the invention for 20 years from the date of 20 years from the date of filing the patent application.filing the patent application.


FIGURE 2.4 Patent Applications and Patents Issued


The Six Steps to a PatentThe Six Steps to a Patent

1. Establish the invention’s novelty

2. Document the device

3. Search existing patents

5. Complete the patent application

6. File the patent application

4. Study search results



TrademarkTrademark – any distinctive word, – any distinctive word, symbol, design, name, logo, slogan, or symbol, design, name, logo, slogan, or trade dress a company uses to identify trade dress a company uses to identify the origin of a product or to distinguish the origin of a product or to distinguish it from other goods on the market. it from other goods 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.


FIGURE 2.6 Trademark Applications and Trademarks and Renewals Issued



CopyrightCopyright – an exclusive right that – an exclusive right that protects the creators of original works protects the creators of original works of authorship such as literary, of authorship such as literary, dramatic, musical, and artistic works. dramatic, musical, and artistic works.

Copyrighted material is denoted by Copyrighted material is denoted by the symbol the symbol ©. ©.


Protecting Your IdeasProtecting Your IdeasType of Type of

ProtectionProtectionWhat It What It Covers Covers

Time Time RequiredRequired

CostCost

CopyrightCopyright Works of Works of original original authorshipauthorship

About 2 weeksAbout 2 weeks About $35About $35

TrademarkTrademark Logos, names, Logos, names, phrasesphrases

6 – 12 months6 – 12 months $900 - $1,500$900 - $1,500

Design patentDesign patent Look 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 patent How an original How an original product worksproduct works

2 – 5 years2 – 5 years $5,000 - $20,000$5,000 - $20,000

Business Business method patentmethod patent

A business A business processprocess

2 – 5 years2 – 5 years $5,000 - $20,000$5,000 - $20,000

Source: Anne Field, Source: Anne Field, ““How to Knock Out Knock Offs,How to Knock Out Knock Offs,”” Business WeekBusiness Week, March 14, 2005., March 14, 2005.


Conclusion The creative process is a tenant of the The creative process is a tenant of the

entrepreneurial experience. entrepreneurial experience. Success, and even survival itself, requires Success, and even survival itself, requires

entrepreneurs to tap their creativity. entrepreneurs to tap their creativity. The seven steps of the creative process The seven steps of the creative process

transform an idea into a business reality. transform an idea into a business reality. Creativity results in value, and value Creativity results in value, and value

provides a competitive advantage. provides a competitive advantage. Entrepreneurs protect their creative ideas Entrepreneurs protect their creative ideas

with patents, trademarks, servicemarks, and with patents, trademarks, servicemarks, and copyrights to sustain a competitive edge. copyrights to sustain a competitive edge.

2 - 53Ch. 2: Inside the Entrepreneurial Mind


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Inside the Entrepreneurial Mind: From Ideas to Reality Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall CHAPTER 2