lecture 3 - innovation

7/21/2019 Lecture 3 - Innovation

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Innovation & Creativity

Dr Noor Muhammad


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Innovation?

Innovation is the specific function ofentrepreneurship (Drucker)

It is the means by which the entrepreneureither creates new wealth-producing resourcesor endows existing resources with enhancedpotential for creatingwealth(Drucker)

It is a foundation of competitive success,especially in turbulent and highly competitiveenvironments


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Innovation

Innovation:The ability to apply creative solutions toproblems and opportunities to enhance or to enrich peoples

Lives.

Innovation = Theoretical conception + Technical invention + Practical implementation


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Types of Innovation

THREE IsThree types of innovation activitiesaccording to Schumpeter

Invention

InnovationImitation


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Innovation?

Invention

The act of creating ordeveloping a new product orprocess

Brings something new into

being Technical criteria determine

the success of an invention


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Innovation?

Invention

Innovation

Process of creating a commercialproduct from an invention

Brings something new into use

Commercial criteria determinethe success of an innovation


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Innovation?

Invention

Innovation

Imitation

Adoption of an innovation by similarfirms

Usually leads to product or processstandardization

Products based on imitation often areoffered at lower prices and without asmany features

Results of imitation Product or process standardization Products made with fewer features Products offered at lower prices


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Innovation

Entrepreneurs

Individuals, acting independently or as

part of an organization, who see anentrepreneurial opportunity and thentake risks to develop an innovation toexploit it


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Creativity?

The ability to develop new ideas and to

discover new ways of looking at problems

and opportunities.


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Can Creativity Be Taught?

Not long ago, the conventional wisdom was thatentrepreneurs are bornand not made. It was thought

that individuals are either creative, imaginative, and

entrepreneurial or not creative, not imaginative and

not entrepreneurial.

But research has shown that people can be taught

how to be creative, imaginative and entrepreneurial.


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Two Hemispheres of the Human Brain

Left-brain

1. Logic

2. Detailed facts

3. Words

Right-brain

1. Feelings

2. Imagination

3. Symbols

4. Design

5. Images

http://www.wherecreativitygoestoschool.com/vancouver/left_right/rb_test.htm
http://www.wherecreativitygoestoschool.com/vancouver/left_right/rb_test.htmhttp://www.wherecreativitygoestoschool.com/vancouver/left_right/rb_test.htm


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Creative Thinking

1. Research on human brain demonstrates that each hemisphereof the brain functions differentlyand that one side of the brainis more dominant than the other.

2. Human brain develops asymmetricallyand each side developsinto certain speciality.

3. The left brain is guided by linearand vertical thinkingstep by

step.

4. The right side of the brain rely on kaleidoscopic, lateralthinkinganalysing a problem from different angles.

5. The left side handles language, logicand symbols.

6. The right side handles the emotional andsensitive(innate)functions.

7. It is this group of people that are at the centre of the creativethinking.


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Creative ThinkingNow those people who develop their right side of the brain

tend to:

1. Search for the better

2. Challenge custom, routine and tradition

3. Reflective, often staring out windows and day dreaming

4. Play mental games, looking at problems from different angles

5. Realising that there may be more than one answer to aproblem

6. See failures as a step to success

7. Relate unrelated ideas to a problem to generate innovativesolutions


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Barriers to Creativity

There is no complete list of barriers to creativity. Time

pressures, non-cooperative environment, pessimistic

colleagues, rigid policies and many others.

However, the most common barriers are the one that

individuals impose on themselves.


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Most Common Barriers

1. Searching for the one right answer

2. Focussing on being logical

3. Blindly following the rules

4. Constantly being practical

5. Becoming overly specialised

6. Avoiding ambiguity

7. Fearing looking foolish

8. Fearing mistakes and failures

9. Believing that I am not creative


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How to Enhance Creativity?

Creativity can be enhanced in two ways:

1. Through organisations

2. Through individuals

Entrepreneurs need to create an environment where creativity

can be fostered. New ideas need further development and

needs a favourable nourishing environment. Innovations occur

in a supportive environment.


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How Can Entrepreneurs Encourage Creativity?

Entrepreneurs can enhance his/her own creativity and amongthe workers in the following ways:

1. Expecting creativity

2. Expecting and tolerating failure

3. Encouraging curiosity

4. Viewing problems as challenges

5. Providing creativity training

6. Providing support

7. Rewarding creativity

8. Modelling creative behaviour


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The Creative Process

New ideas can pop up at any time but they are actually theresult of a creative process which has the following steps:

1. Preparation

2. Investigation3. Transformation

4. Incubation

5. Verification

6. Implementation


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How to Improve the Creative Process?

It is said that two heads works better than one head. Groups of individualsworking on a particular issue can generate more creative ideas than anindividual working alone. There are three techniques which improves thequality of creative ideas:

1. Brainstorming

2. Mind-mapping

3. Rapid prototyping

Please explore the following websites:

1. www.mindstore.com2. www.mycoted.com3. www.edwdebono.com4. www.triz-journal.com
http://www.mindstore.com/http://www.mycoted.com/http://www.edwdebono.com/http://www.triz-journal.com/http://www.triz-journal.com/http://www.triz-journal.com/http://www.triz-journal.com/http://www.edwdebono.com/http://www.mycoted.com/http://www.mindstore.com/


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References

1. Barringer, B. R., and Ireland, R. D. (2010) Entrepreneurship:Successfully Launching New Ventures, 3rdedition (Globaledition), Pearson.

2. Burns, P. (2007) Entrepreneurship and Small Business, 2ndedition, Palgrave.

3. Deakins, D., and Freel, M. (2009). Entrepreneurship and Small

Firms, 5thedition. McGraw-Hill.4. Schilling, M.A. (2008) Strategic Management of Technological

Innovation, 2ndEdition, McGrawHill International Edition

5. Wickham, P. A. (2006) Strategic Entrepreneurship, 3rdedition,Pearson Education Limited, Financial Times, Prentice Hall.

6. Zimmerer, T. W., Scarborough, N. M., and Wilson, D. (2008)Essentials of Entrepreneurship and Small BusinessManagement, 5thedition, Pearson Education, Prentice Hall

lecture 3 - innovation

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