ENTR 11

ENTREPRENEURIAL
MIND
DIANNE M. DALIN-AS
INSTRUCTOR
DEPARTMENT OF BUSINESS AND MANAGEMENT
LESSON 3.2: CREATIVITY,
INNOVATION, AND
ENTREPRENEURSHIP
LESSON SUMMARY

• Creativity is the ability to develop new ideas and to

discover new ways of looking at problems and
opportunities. Innovation on the other hand, is the ability
to apply creative solutions to those problems and
opportunities to enhance or enrich people’s lives.
• Entrepreneurship is the result of a disciplined, systematic
process of applying creativity and innovation to needs
and opportunities in the marketplace
DISCUSSION
Introduction
• “The alternatives are to ‘make change’ or ‘be changed,’” says
Langdon Morris, co-founder of InnovationLabs and an expert on
innovation. “Making change brings considerable advantages, but
being changed carries a huge load of negative consequences. The
choice isn’t really a choice at all. You’ve got to pursue innovation,
and you’ve got to do it to obtain long lasting benefits.”
 DISCUSSION
Creativity, Innovation and Entrepreneurship

Creativity is thinking new things, and innovation is doing new

things. However, having a great new idea is not enough. It
should be transformed into an actual product, service, or
business venture, and this is entrepreneurship.
Successful entrepreneurs develop new ideas, products, and
services that solve a problem or fill a need and, in doing so,
create value for their customers and wealth for themselves.
Creativity is not only a vital source of competitive advantage but
also a prerequisite for survival. When developing creative
solutions to modern problems, entrepreneurs must go beyond
merely relying on what has worked in the past. Innovation
should be pursued to obtain long lasting benefits.
DISCUSSION
Failure: Part of the Creative Process

Entrepreneurs must always be on guard against traditional assumptions and

perspectives about how things ought to be because they are certain killers
of creativity!

Creativity is not only an important source for building a competitive

advantage but also a necessity for survival.

As the global COVID-19 pandemic shows signs of improvement in some

countries, most businesses have slowly started to return to normal
operations. However, this is not true for all firms as the crisis induced by the
pandemic resulted in permanent closures of businesses across the globe.
DISCUSSION
We may ask then, what is the impact of the crisis on firm
survival during the pandemic?

According to World Bank (2021), firms that survived the COVID-19

crisis are older and more productive; they also tend to be innovators,
use digital technology, and operate in less burdensome business
environments.

The use of technology, which has become particularly relevant during

the COVID-19 crisis as a way to offset the physical remoteness
imposed by the social distancing requirements, is critical for survival.
The role of mitigating factors, such as innovation and digitalization, is
stronger for smaller firms. Finally, operating in burdensome business
environments appears to be a contributing factor for firm exit.
DISCUSSION

Can Creativity Be Taught?

DISCUSSION
Importance of Innovation

Differentiate innovation from invention?

According to Meriam-Webster, invention can refer to a type
of musical composition, a falsehood, a discovery, or any
product of the imagination; a device, a machine, an
a p p a rat u s , o r p ro c e s s o r i g i n ate d af te r st u d y a n d
experiment, and is usually something which has not
previously been in existence.
While innovation can refer to something new or a change
made to an existing product, idea, or field. For example,
one might say that the first telephone was an invention, the
first cellular telephone either an invention or an innovation,
and the first smartphone an innovation.
DISCUSSION

Levels of Innovation
The fewest innovation is the breakthrough innovation.
Examples of a breakthrough innovation are penicillin, steam
engine, computers, automobiles, internet, nanotechnology.
These innovations are protected by strong patents, trades
secrets, and/or copyrights.
Technological innovations occur more frequently than
breakthrough innovations. Examples are flip watch for
containing pictures, personal computers, voice and text
messaging. These are meaningful innovations thus need to be
protected.
Ordinary innovations occur most frequently. These are
innovations that extends an existing innovation into a better
product or service or one that has a different, or better, market
appeal. This type of innovation usually come from market
analysis and pull, not technology push.
LESSON 3.3: CREATIVITY: THE HUMAN
BRAIN AND WHAT ROLE IT PLAYS IN
CREATIVITY
DISCUSSION

The Australian Council for Educational Research (ACER)

ACER defines creative thinking as: the capacity to generate
many different kinds of ideas, manipulate ideas in unusual
ways and make unconventional connections in order to
outline novel possibilities that have the potential to
elegantly meet a given purpose.
DISCUSSION
Strand 1 Generation of Ideas
Creative thinking is, at its core, a generative process. This strand
acknowledges the importance of the production of many different ideas,
sometimes called ideational fluency (Guilford, 1950) to the process of
creative thinking.

• Nature of Entrepreneurship
- While this aspect cannot speak to the quality of the ideas produced, the
generation of ideas is a prerequisite for developing a creative solution.
• Range of Ideas
- The inclusion of this aspect recognizes that the more ideas are
produced, the more likely it is that a truly creative idea will be among
them. When a large number of ideas are produced, one or more could
be combined to construct a creative product.
DISCUSSION

Strand 2 Experimentation

A key element of creative thinking is the ability to ‘play’

with ideas, both previously existing, and newly-generated.
Critical to this process are the ability to consciously consider
ideas from multiple perspectives, and to think creatively
within the constraints of a task. This can lead to ‘new’ ideas
in the form of processes such as adaptation and synthesis
(Lassig, 2013).
SOURCE: https://research.acer.edu.au/cgi/viewcontent.cgi?article=1038&context=ar_misc
DISCUSSION
Strand 3 Quality of Ideas

Creative thinking does not exist in a vacuum. This aspect is

about ensuring that the ideas generated are of high quality.
Examining the appropriateness (or otherwise) of a solution is
an idea that is present in most of the frameworks reviewed. A
strength of the ACER approach is that not only is the
importance of the solution as a creative product
acknowledged, but the key features of a product that
demonstrates creative thinking are specified.
SOURCE: https://research.acer.edu.au/cgi/viewcontent.cgi?article=1038&context=ar_misc
DISCUSSION

The assessment of creativity and

creative thinking has typically been
characterised in relation to the ‘4Ps’
first identified in the 1960s (Rhodes,
1961).
These ‘Ps’ are the person, the process,
product and press.
DISCUSSION
Let’s explore the Ps in detail:
1) Person- To understand creativity, we must also understand
what makes People creative: what are their characteristics, their
habits, the thoughts.
2) Product- These are the ‘things’ that are the result of creative
activity. What makes one product creative (a song) and another
not? How many products can we say are the result of creativity?
3) Process- The process is all about HOW people are creative do
what they DO. But Processes can also be Products… new ways of
doing old tasks
4) Press- Defined as the environment around the creative person
and recognises that, if the climate around a person is not
conducive to creativity, it soon dies.
DISCUSSION

The human brain shows that each

hemisphere of the brain processes
information differently and that one side of
the brain tends to be dominant over the
other.

The left brain is guided by linear, vertical

thinking (from one logical conclusion to the
next), whereas the right brain relies on
kaleidoscopic, lateral thinking (considering a
problem from all sides and jumping into it at
different points).
DISCUSSION

Barriers to Creativity
Searching for the one “right” answer
• Focusing on “being logical” – sound reasoning
• Blindly following the rules
• Constantly being practical
• Viewing play as frivolous - no serious purpose or value
DISCUSSION
Enhancing Individual Creativity

• Allow yourself to be creative.

• Forget the “rules.”
• Give your mind fresh input every day.
• Take up a hobby.
• Travel and observe.
• Collaborate with other people.
• Observe the products and services of other companies, especially
those in completely different markets
LESSON 3.4: CREATIV PROCESS
 Steps in the Creative Process
Although creative ideas may appear to strike as suddenly as a bolt of
lightning, they are actually the result of the creative process, which
involves seven steps:
1. Preparation or getting the mind ready for creative thinking.

2. Investigation. To create new ideas and concepts in a particular field,

an individual first must study the problem and understand its basic
components.

3. Transformation. This phase requires two types of thinking:

convergent thinking is the ability of the entrepreneur to see similarities
and connections among various and often diverse data and events
while divergent thinking is the ability to see the differences among
various data and events.
4.Incubation. Incubation occurs while the individual is away from the
problem, often engaging in some totally unrelated activity.

5.Illumination. In the illumination stage, all the previous stages come

together to produce the “Eureka factor”—the creation of the innovative
idea.

6.Verification. Validating an idea as realistic and useful may include

activities such as conducting experiments, running simulations, test-
marketing a product or service, establishing small-scale pilot programs,
building prototypes, and many other activities.

7.Implementation. What makes him an entrepreneur is that he acts on

his ideas.
Techniques for Improving the
Creative Process
A. Brainstorming: The goal is to create a large quantity of novel
and imaginative ideas.
B. Mind-mapping: A graphical technique that encourages
thinking on both sides of the brain, visually displays
relationships among ideas, and improves the ability to see a
problem from many sides.