GEN 009: Entrepreneurial Mind
Module #14 Student Activity Sheet
Name: ____________________________________ Section: ___________________ Date: ___________________
Lesson Title: Creativity and Innovation Part 2 Material: SAS
Learning Targets: Reference:
At the end of the module, students will be able to: Go, Josiah (2018) Entrepreneurship: Starting
1. Identify sources of innovation an Enterprise. Having an Innovation Mindset.
2. Determine different types of innovation
Productivity Tip: It is never too late to be what you might have been.
A. LESSON PREVIEW/REVIEW
Introduction
We are now in Module #14 Future Entrepreneurs!!
According to Peter F. Drucker, “Innovation is the specific function of entrepreneurship…It is the means by which
the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential
for creating wealth.”
For Drucker, innovators are those who introduce something new to the market – a new product, new service, or
a new business model. Josiah Go adds that this must also lead to commercial success to be rightfully called an
innovation. Both agree that the success of a new business depends a lot on the innovative quality of an idea. This
session will explore the concept of innovation and examine its role in entrepreneurship.
Do not forget to read the learning targets before you proceed to the succeeding sections of the module. The
learning targets are your goals. Remember, you need to achieve the learning targets at the end of the lesson.
B. MAIN LESSON
Read and Understand
Content and Skill-Building
Topic # 1 Principles of Innovation
A potential entrepreneur needs to realize that there are principles of innovation. These principles can be
learned and, when combined with opportunity, can enable the individual to innovate. The major principles of
innovation are:
● Be action-oriented. Innovators must always be active and searching for new ideas, opportunities, or sources of
innovation.
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GEN 009: Entrepreneurial Mind
Module #14 Student Activity Sheet
Name: ____________________________________ Section: ___________________ Date: ___________________
● Make the product, process, or service simple and understandable. People must readily understand how innovation
works.
● Make the product, process, or service customer-based. Innovation must always keep the customer in mind. The
more the innovator has the end-user in mind, the greater the chance that 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 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 should always 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 importantly, failures often give rise to
innovations.
● Follow a milestone schedule. Every innovation should follow a schedule that indicates milestone accomplishments.
Although the project may run ahead or behind schedule, it still is important to have the schedule in order to plan
and evaluate the project.
● 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. Innovative work must be seen as
heroic activity that will reveal new horizons for the enterprise.
● Work, work, work. This is a simple but accurate exhortation with which to conclude the principles of innovation. It
takes work, not genius or mystery, to innovate successfully.
Sources of Innovation
Source Examples
Unexpected occurrences Unexpected success: Apple Computer (microcomputers)
Unexpected failure: Ford’s Edsel
Incongruities Overnight package delivery
Process needs Sugar-free products
Caffeine-free coffee
Microwave ovens
Industry and market changes Health care industry: changing to home health care
Demographic changes Rest homes and retirement centers for older people
Changes in perception Exercise (aerobics) and the growing concern for fitness
Knowledge-based concepts Video industry; robotics
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GEN 009: Entrepreneurial Mind
Module #14 Student Activity Sheet
Name: ____________________________________ Section: ___________________ Date: ___________________
Types of Innovation
Type Description Examples
Invention Totally new product, service, or process Wright brothers – airplane
Thomas Edison – light bulb
Alexander Graham Bell - telephone
Extension New use or different application to an Ray Kroc – McDonald’s
already existing product, service, or Nolan Bushnell – Atari
process Kemmons Wilson – Holiday Inn
Duplication Creative replication of an existing concept Wal-Mart – department stores
Gateway – personal computers
Pizza Hut – pizza parlor
Synthesis Combination of existing concepts and Fred Smith – Federal Express
factors into a new formulation or use Merrill Lynch – home equity financing
The Major Myths of Innovation
The following is a list of what Innovation is not. They are commonly accepted myths of innovation.
Myth No. 1: Innovation is planned and predictable – This myth is based on the old concept that innovation should be left
to the research and development (R & D) department under a planned format. In truth, innovation is unpredictable and
may be introduced by anyone.
Myth No. 2: Technical specifications should be thoroughly prepared – Thorough preparation often takes too long. Quite
often it is more important to use a try-test-revise approach.
Myth No. 3: Creativity relies on dreams and Blue-Sky ideas – Accomplished innovators are very practical people and
create from the opportunities left by reality – not daydreams. Blue Sky ideas come from the blue-sky thinking approach
to idea generation. It consists mainly of the activity of “brainstorming with no limits.”
Myth No. 4: Big Projects will develop better innovations than Smaller Ones – This myth has been proven false time and
time again. Larger firms are now encouraging their people to work in smaller groups, where it often is easier to
generate creative ideas.
Myth No. 5: Technology is the driving force of innovation and success – Technology is certainly one source for
innovation, but it is not the only one. Moreover, it is the customer or market that is the driving force behind any
innovation. Market-driven or customer-based innovations have the highest probability of success. A good example is
found in the case of Polaroid’s Polavision, a television camera that allowed for instant playback of the film. Polaroid hit
the market with this technological advance at the same time that videocassette recorders arrived. Result: Polaroid’s
product was rejected and the company lost millions of dollars.
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GEN 009: Entrepreneurial Mind
Module #14 Student Activity Sheet
Name: ____________________________________ Section: ___________________ Date: ___________________
Now, let us proceed to the activities that will strengthen your knowledge of the topic.
Check for Understanding
Try to finish the exercise before going through the Answer Key at the last page. This will help in checking if you have
understood the lessons in this module before going to the next module.
Exercise 1: Read each statement carefully and identify what type of innovation it describes.
_______________1. It is a combination of existing concepts and factors into a new formulation or use.
_______________2. This is a creative replication of an existing concept.
_______________3. The airplane invented by the Wright brothers is an example of what type of innovation?
_______________4. This provides new use or different applications to an already existing product, service, or
process.
_______________5. It is a totally new product, service, or process.
Exercise 2: This Exercise may be done by groups and presented to the class (You can have the same group as the group
for the Final Project Presentation). Read the case and answer the questions below:
Excerpts from a Q&A with Cebuana Lhuillier’s president Mr. Jean Henri Lhuillier:
Cebuana Lhuillier is in the Guinness Book of World Records as the largest chain of pawnshops in the world with
over 2,200 outlets, bigger than many banks combined, serving mostly the ordinary “unbanked” population. Its
president, Jean Henri Lhuillier shares his thoughts about innovation. [Go. p. 183]
Question: One of your core values is innovation. What innovation are you proudest of so far?
Mr. Lhuillier: Cebuana Lhuillier is a game changer, we have changed the face of pawning remittance and micro
insurance. We don’t walk around telling our market our capabilities, they tell us what they need and we develop the
capabilities to serve them even better.
Our innovation is born out of a move in creating a culture of appreciating our clients, making sure that the clients who
are “unbanked” are treated even better than those who are “banked.”
We are the 1st to introduce a loyalty program in the micro financial industry. This program enabled us to understand
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GEN 009: Entrepreneurial Mind
Module #14 Student Activity Sheet
Name: ____________________________________ Section: ___________________ Date: ___________________
our clients even more. And that simple understanding made our loyalty program achieve the highest membership,
frequency and recency in our transaction records. [Go, p. 184]
What do you think is the Source of Innovation for the Loyalty Program of Cebuana Lhuillier?
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C. LESSON WRAP-UP
Frequently Asked Question
Q: Why is innovation important for entrepreneurs?
A: Innovations contribute to the success of the company. Entrepreneur, as innovators, see not just one solution to a
need. They keep coming up with ideas and do not settle until they come up with multiple solutions. Innovation is
extremely important that companies often see their employees’ creativity as a solution.
Thinking about Learning
Congratulations for finishing this module! Let’s reflect on your learning:
Did you have challenges learning the concepts in this module? If none, which parts of the module helped you learn the
concepts?
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Some question/s I want to ask my teacher about this module is/are:
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Answer Key: Exercise 1: Synthesis, Duplication, Invention, Extension, Invention
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