Creativity, Innovation and Methods to
initiate Ventures
Learnings
• Entrepreneurial imagination and creativity
• Sources of Innovative ideas
• Principles of Innovation
• Creating New Ventures
• Examination of the financial picture
• Acquiring an established entrepreneurial venture
Entrepreneurial imagination and creativity
• Million dollar ideas
Entrepreneurial imagination and creativity
• Key to successful innovation is Imagination, creative thinking with a systematic, &
logical process.
• Just like what we learnt from the Whistle, coffee holder, or head blade all began
with the Question “What if ?” or “Why not ?”
• An ability to see, recognize and create opportunity where others find only
problems.
• What is the problem ? Whom does it affect ? How does it affect them ? What
costs are involved ? Can it be solved ? Would market pay for the solution?-type of
analysis blends creative thinking with systematic analysis.
Creative process
Everyone is creative to some degree. Some more so..
• [Link]
Creative process
• The following process can occur in random for any creative activity.
Chaos is necessary, which needs to be structured and focused.
1. Background or knowledge accumulation: reading, joining
professional groups, travel, develop subject library for reference,
carry notebook to record ,pursue natural curiosities.
2. The incubation process: subconscious efforts while preparing –
engage in routine, exercise , think about the problem before sleep,
meditate.
Creative process
3. The idea experience: Solution to the problem. “eureka
factor”- solutions come out of the blue or an
incremental manner. While do normal activity you come
up with solution –leisurely environment.
4. Evaluation and implementation: identify a workable idea
use your skills to implement. It might work or can come
up with whole different idea overtime.- educate yourself,
exercise rest food, take note of hunches, learn
organizational policy, seek advice.
Developing creativity-Critical thinking
process
• Brainstorming
• Making project
plans
• Assessing yourself
• Force field analysis-
Facilitating(+) and
inhibiting factor(-)
Impediments to creativity
• Consciously make yourself a more adaptive, flexible and tolerant person to be
more creative.
• On the other hand avoid the following habits.
Avoiding unfamiliar situations and anxious the movement you face ambiguity and
suspense.
An overwhelming desire for conformity.
A tendency to stereotype another person
event, experience, or trait.
Fear of failure and pessimism.
Resource myopia – not able to see
available resources when faced with
problems
Feeling upset or depressed when faced
with negative feedback.
• To improve creativity one must become aware of some of the habits
and mental blocks that stifle creativity.
• Recognizing how to see new and different relationships among
objects, process , materials, technologies and people.
Overcoming impediments of creativity
• Take small risks, maintain a log and chart their accuracy and
consequences.
• Communicate with those who confirm to typical stereotype to
overcome stereotyping.
• Work with some amount of ambiguity.
• Think of the positive, negative and then interesting aspects.
• Avoid judging people or their ideas just listen.
Innovation process
• Innovation occurs when someone improves on or makes a significant
contribution to an existing product, process, or service.
• Most innovations result from a conscious, purposeful search for new
opportunities.
Types of Innovation
• Invention –Creation of a new product, service or process often
one that is novel or untried.
• Extension/Incremental-expansion of a product, service or
process already in existence. different applications of a current
idea.
• Duplication- replication of an already existing product or
service or process. Enhancing the concept is necessary to beat
the competition.
• Synthesis- Combination of existing concepts and factors into a
new formulation. Finding new way that by combining existing
concepts or products to form new application.
Source of Innovative ideas
• At its core entrepreneurship revolves around the questions of why,
when and how opportunities for the creation of goods and services in
the future arise in an economy. Thus, opportunity recognition is the
progenitor of both personal and societal wealth.
• understanding the opportunity identification process is one of the
primary challenges within the domain of entrepreneurship research
Source of Innovative ideas
• Potential entrepreneurs must always be alert to the opportunities that lie in the
external and internal environments in which they live.
1. Trends: Trends signal shift s in the current paradigm (or thinking) of the
major population. Observing trends closely will grant an entrepreneur the
ability to recognize a potential opportunity. Look for PESTEL
Ex: A large number of Youth population don’t believe in owning a house or a car
Business idea that can cater to the same-Uber, Ola, Magic bricks, 99acres.
2. Unexpected occurrences
These are successes or failures that, because they were unanticipated
or unplanned, often end up proving to be a major innovative surprise to
the firm.
3. Incongruities
These occur whenever a difference exists between expectations and
reality. Innovation is the creation of solutions to incongruities.
4. Process needs: For example, process gaps or bottlenecks. These
occur when an answer to a particular need is required. Venture
capitalists oft en refer to these as ‘pain’ that exists in the
marketplace
5. Industry and market changes: Continual shifts in the marketplace occur,
caused by developments such as consumer attitudes, advancements in
technology, industry growth and the like. Industries and markets are
always undergoing changes in structure, design, or definition
6. Demographics: These arise from trend changes in population,
education, income changes, age, occupations, geographic
locations and similar factors. Demographic shifts are important
and often provide new entrepreneurial opportunities.
7. Perceptual changes: These changes occur in people’s
interpretation of facts and concepts. They are intangible yet
meaningful. Perception can cause major shifts in ideas to take
place.
Focus on fitness for better life. Coworking zones for creative sharing
and development of ideas.
8. Knowledge-based concepts
These are the basis for the creation or development of something
brand new. Inventions are knowledge-based; they are the product of
new thinking, new methods and new knowledge.
Such innovations often require the longest time period between
initiation and market implementation because of the need for testing
and modification.
• A disruptive technology is usually a lower Performance or less
expensive product or process that gains a foothold in the low end,
less demanding part of an existing market and then successively
moves upmarket through performance improvements until finally
displacing the market incumbents
Principles of innovation
• Potential entrepreneurs need to realize innovation principles exist. These principles
can be learned and, when combined with opportunity, can enable individuals to
innovate. The major motivation principles follow.
• Be action oriented: Innovators always must be active and searching for new ideas,
opportunities, or sources of innovation.
• Make the product, process, or service simple and understandable: People must
readily understand how the innovation works.
• Make the product, process, or service customer-based: Innovators always must keep
the customer in mind. The more an innovator has the end-user in mind, the greater the
chance the concept will be accepted and used.
• Start small: Innovators should not attempt a project or development on
a grandiose scale. They should begin small and then build and develop,
allowing for planned growth and proper expansion in the right manner
and at the right time.
• Aim high: Innovators should aim high for success by seeking a niche in
the marketplace.
• Try/test/revise: Innovators always should follow the rule of try, test and
revise. This helps work out any flaws in the product, process, or service.
• Learn from failures: Innovation does not guarantee success. More
important, failures often give rise to innovations
• Follow a milestone schedule: Every innovator should follow a
schedule that indicates milestone accomplishments.
• Reward heroic activity: This principle applies more to those involved
in seeking and motivating others to innovate. Innovative activity
should be rewarded and given the proper amount of respect. This
also means tolerating and, to a limited degree, accepting failures as a
means of accomplishing innovation
• Work, work, work: This is a simple but accurate exhortation with
which to conclude the
• innovation principles. It takes work – not genius or mystery – to
innovate successfully
