DEVELOPING CREATIVITY AND UNDERSTANDING INNOVATION
Innovation and the Entrepreneur
Innovation is a key function in entrepreneurship
More than just a good idea
The Role of Creativity
The nature of the creative process:
Background or knowledge accumulation provides the individual with a variety of perspectives on the situation. This helps the entrepreneur develop a basic understanding of the product or venture to be undertaken. 2.
The incubation process allows the individual to subconsciously mull over the information gathered during the preparation stage. The individual "sleeps on it." 3.
The idea experience is the time when the idea or solution the individual is seeking is discovered. 4.
Evaluation and implementation. Successful entrepreneurs must be able to identify workable ideas which they have the skills to implement. B.
Developing your creativity:
Recognizing relationships: Many inventions and innovations are the result of the inventor's seeing new and different relationships. Example: Adding fruit juice to soft drinks to create "Slice." 2.
Developing a functional perspective: You must begin to look at people and things in the environment in terms of how they complement your attempts to satisfy needs and complete projects. 3.
Eliminating muddling mind-sets: Mental habits which block or impede creative thinking. They include: a.
The creative climate: he proper climate must exist for creative owners and managers. Some characteristics include: 1.
A trustful management which does not over control personnel. 2.
A large variety of personality types.
Enjoyment in experimenting with new ideas.
The selection and promotion of employees on basis of merit.
The Innovation Process
Types of innovation
Sources of innovation
Unexpected successes or failures which prove to be a major surprise. 2.
Exist when there is a gap or difference between expectations and reality 3.
Exist whenever there is demand for the entrepreneur to innovate and answer a particular need. 4.
Industry and market changes
There are continual shifts in the marketplace caused by advances in technology, industry growth, etc. The entrepreneur needs to be able to take advantage of any resulting opportunity. 5.
Arise from changes in population, age, education, occupation, geographic locations, etc. 6.
Changes in perception
Occur in people's interpretation of facts and concepts. 7.
The creation or development of something new.
The major myths of innovation
Innovation is planned and predictable.
Technical specifications should be thoroughly prepared. 3.
Creativity relies on dreams and blue-sky ideas.
Big projects will develop better innovations than small ones. 5.
Technology is the driving force of innovation and success. D.
Principles of innovation
Make the product, process, or service simple and understandable 3.
5. Learn from failures
Financial Support for Innovation
Venture capital environment
The venture capital funds have increased dramatically during the last ten years. a.
In 1987 there were 587 U.S. venture capital firms, a 148 percent increase...
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