Creativity and Innovation in Entrepreneurship

LECTURE 7
CREATIVITY AND INNOVATION IN ENTREPRENEURSHIP
Lecture Synopsis:
 Creativity vs Innovation,
 Types of Innovation in an enterprise,
 Innovation as a strategic tool to market completion,
 Creativity and Innovation Competitive tools of Entrepreneurship in Lesotho.
FROM CREATIVITY TO ENTREPRENEURSHIP
1
Creativity is the capability or act of conceiving something original or unusual.
Innovation is the implementation of something new.
Invention is the creation of something that has never been made before and is
recognized as the product of some unique insight.
 Creativity is thinking new things, and innovation is doing new things.

 Creativity is the ability to develop new ideas and to discover new ways of looking
at problems and opportunities.
 Innovation is the ability to apply creative solutions to those problems and
opportunities in order to enhance people’s lives or to enrich society.
 Entrepreneurship is the result of a disciplined, systematic process of applying
creativity and innovation to needs and opportunities in the marketplace.
 Entrepreneurs are those who marry their creative ideas with the purposeful
action and structure of a business.
CREATIVITY AND INNOVATION
Think Creatively
 Use a wide range of idea creation techniques (such as brainstorming)
 Create new and worthwhile ideas (both incremental and radical concepts)
 Elaborate, refine, analyze and evaluate their own ideas in order to improve and
maximize creative efforts
Work Creatively with Others
 Develop, implement and communicate new ideas to others effectively
 Be open and responsive to new and diverse perspectives; incorporate group

input and feedback into the work
2
 Demonstrate originality and inventiveness in work and understand the real world
limits to adopting new ideas
 View failure as an opportunity to learn; understand that creativity and innovation

is a long-term, cyclical process of small successes and frequent mistakes
Implement Innovations
 Act on creative ideas to make a tangible and useful contribution to the field in
which the innovation will occur.
THE PRINCIPLES OF CREATIVITY
People become more creative when they feel motivated primarily by the interest,
satisfaction, and challenge of the situation and not by external pressures; the passion
and interest – a person’s internal desire to do something unique to show-case himself
or herself; the person’s sense of challenge, or a drive to crack a problem that no one
else has been able to solve.
Within every individual, creativity is a function of three components:
1. Expertise
2. Creative thinking skills
3. Motivation.
TYPES OF INNOVATIONS IN BUSINESS
Breakthrough Innovation
Breakthrough innovations are innovation that leads to major scientific breakthrough.

They often establish the platform on which future innovation in an area are developed.
They are usually very few. Breakthrough innovations include such ideas as the
computer, the air plane and the internet.
3
Technological Innovation
Technological innovation are in general not at the same level as scientific discovery, but
they create technological advancement in product and market areas. Examples include
jet plane, personal computer, voice and text messaging.
Ordinary Innovation
This type of innovation occurs most frequently. Ordinary innovation comes from market
analysis and they extend a technological innovation into a better product or service or
one that has a different, usually a better market appeal. One unique characteristics of
ordinary innovation is that the market has a stronger effect on the innovation (market
pull) than the technology (technology pull)
THE ELEMENTS OF INNOVATION
Innovation is the successful development of competitive advantage and as such, it is

the key to entrepreneurship. The entrepreneurs are the “dreamers”, who take hands on
responsibility for creating innovation. It is the presence of innovation that distinguishes
the entrepreneur from others. Innovation, must therefore, increase competitiveness
through efforts aimed at the rejuvenation, renewal, and redefinition of organizations,
their markets or industries, if business are to be deemed entrepreneurial.
Fiona Fitzpatrick identified the following elements of innovation:
1. Challenge: What we are trying to change or accomplish-the “pull”
2. Customer focus: Creating value for your customers – the “Push”
3. Creativity: Generating and sharing the idea(s) - the “brain”
4. Communication: The flow of information and ideas –the “life blood”
5. Collaboration: People coming together to work together on the idea(s) – the “heart.”
4
6. Completion: Implementing the new idea-the “muscle”.
7. Contemplation; Learning and sharing lessons lead to higher competency-the “ladder”
8. Culture: The playing field of innovation includes:
Leadership (sees the possibilities and positions the team for action-the role
model)
People (diverse groups of radically empowered people innovate –the source of
innovation)
Basic values (trust and respect define and distinguish an innovative organization-
the backbone).
Innovation values (certain values stoke the fires that make the “impossible”
possible-the Spark).
9. Context: Innovation is shaped by interactions with the world.
CREATIVITY AND INNOVATION IN AN ENTREPRENEURIAL ORGANIZATION
Growth and development cannot be sustained without additional innovations (usually in

the product or services or in its marketing) with additional innovations, firms become
“glamorous”. Introducing new products is usually seen as part of the process of
innovation, which is itself seen as the engine driving continued growth and
development. The “winning performance” of the entrepreneur and the organization
focuses on.
 Competing on quality not prices:

 Domination of a market niche;
 Competing in an area of strength
 Having tight financial, and operating controls:
5
 Frequent product or service innovation (particularly important in
manufacturing).
Shapiro argues that perpetual and pervasive innovation is the key to long –term
sustainable success in the relentless competition for customers. To survive any
competition, you must rapidly and repeatedly re-invent yourself. The road map to
reinvention starts by applying the seven R’s.
1. Rethink your underlying assumptions.
2. Reconfigure how you carry out work.
3. Resequence when work takes place
4. Relocate where work is done to cut down on handoffs and delays.
5. Reduce the frequency of carrying our specific activities.
6. Reassign who does the work by asking if anyone else could achieve the same result
more effectively and efficiently.
7. Retool the technology that supports getting the work done. Could new software and
automated equipment transform our ways of working?

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LECTURE 7

CREATIVITY AND INNOVATION IN ENTREPRENEURSHIP

FROM CREATIVITY TO ENTREPRENEURSHIP

Innovation is the implementation of something new.

 Creativity is thinking new things, and innovation is doing new things.

CREATIVITY AND INNOVATION

 Use a wide range of idea creation techniques (such as brainstorming)

Work Creatively with Others

 Develop, implement and communicate new ideas to others effectively

 Be open and responsive to new and diverse perspectives; incorporate group

 View failure as an opportunity to learn; understand that creativity and innovation

THE PRINCIPLES OF CREATIVITY

Within every individual, creativity is a function of three components:

2. Creative thinking skills

TYPES OF INNOVATIONS IN BUSINESS

Breakthrough innovations are innovation that leads to major scientific breakthrough.

THE ELEMENTS OF INNOVATION

Innovation is the successful development of competitive advantage and as such, it is

Fiona Fitzpatrick identified the following elements of innovation:

1. Challenge: What we are trying to change or accomplish-the “pull”

2. Customer focus: Creating value for your customers – the “Push”

3. Creativity: Generating and sharing the idea(s) - the “brain”

4. Communication: The flow of information and ideas –the “life blood”

7. Contemplation; Learning and sharing lessons lead to higher competency-the “ladder”

8. Culture: The playing field of innovation includes:

People (diverse groups of radically empowered people innovate –the source of

9. Context: Innovation is shaped by interactions with the world.

CREATIVITY AND INNOVATION IN AN ENTREPRENEURIAL ORGANIZATION

Growth and development cannot be sustained without additional innovations (usually in

 Competing on quality not prices:

1. Rethink your underlying assumptions.

2. Reconfigure how you carry out work.

3. Resequence when work takes place

4. Relocate where work is done to cut down on handoffs and delays.

5. Reduce the frequency of carrying our specific activities.

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