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Entrepreneurship

Delivered in: Islamia University Bahawalpur

Presented By: Tasawar Javed

Creative thinking

Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world (Albert Einstein) Creativity is the power to connect the seemingly unconnected (willaim plomer)

Inside the entrepreneurial mind: From Ideas to Reality

Creativity:

The ability to develop new ideas and to discover new ways of looking at problems and opportunities Thinking new things

Innovation:

Is the ability to apply creative solutions to problems and opportunities to enhance or to enrich peoples lives Doing new things

Innovation:

Mintzberg describes innovation as the means to break away from established patterns, doing things really differently. According to a professor at Kenan Flagler Business School, the University of North Carolina, innovation is:

An important tool for a companys survival today There is no incremental innovation, it is just innovation and it is a radical It is beyond invention Innovation should meet customers expected as well as unexpected needs Is not complexity Better if innovation fits in with customers lives other than having customers adjusting their lives to innovation It is not just a companys R&D domain, but it is a philosophy that should be imbibed in the companys culture (Malhotra, A., 2006)

Innovation:

Dosi defines innovation as, the search for, the discovery, experimentation, development, imitation and adoption of new products, new processes and new organizational setups. It is a social process that transforms ideas or inventions into successful market products and services. * New or improved products: First transistor * New production methods: Henry Ford * New distribution channels: Amazon * New forms of business organizations: Franchising (Innovation Examples, 2007)

It covers a wide range of ideas:

Did you know?

When do you think the credit card was invented?

The credit card was used in Babylon and Egypt 3000 years ago. Bill of exchange was established in the 14th Century. Paper money followed only in the 17th Century. From the 18th Century until the early part of the 20th Century, tallymen sold clothes for small weekly payments. They were called, tallymen because they kept a record or tally of what people bought on a wooden stick. On one side was marked with notches to represent the amount of debt and the other side was to record payments. In 1950 Diners Club and American Express launched their charge cards in the USA, the first plastic money. In 1951, Diners club issued the first credit card to 200 customers. Magnetic strips on the card were introduced in the 1960s. (didyouknow, 2007, online)

Sources of innovation:

The seven sources of opportunity & innovation

With in the firm:


The unexpected The incongruity The inadequacy The changes in industry or market structure

The outside world Demographic changes Changes in perception, mood and meaning New knowledge

Creative Thinking

Human brain has two parts left and right Left brain is guided by linear, vertical thinking (from one logical conclusion to the next) Right brain relies on kaleidoscopic, lateral thinking (considering a problem from all sides & jumping into it at different points). The left brain handles language, logic, and symbols; right brain takes care of the bodys emotional, intuitive, and spatial functions Left brain processes information in a step-by-step fashion, but the right processes it intuitively-all at once, relying heavily on images

Creative Thinking

Those who have learned to develop their right brained thinking skills

Always ask the questions Is there a better way? Challenge custom, routine, and tradition Be reflective, often staring out window, deep in thought (how many traditional managers would stifle creativity by snapping these people out of their day dreaming) Be prolific thinkers. Generate lot of ideas, likelihood of coming up with a few highly creative ideas. Play mental games, trying to see an issue from different perspective Realize that there may be more than one right answer See problems as springboards of new ideas Relate seemingly unrelated ideas to a problem to generate innovative solutions

Barriers to Creative

Those who have learned to develop their right brained thinking skills

Searching for the one right answer Focusing on being logical Blindly following the rules Constantly being practical Viewing play as frivolous (playful) Becoming overly specialized Avoiding ambiguity Fearing looking foolish Fearing mistakes and failure Believing that I am not creative

The Creative Process

Steps in the creative process Preparation Investigation Transformation Incubation

Boring phase, nothing happens, it occurs while the individual is away from the problem, often engaging in some totally unrelated activity

Illumination Verification implementation

The Creative Process

Convergent Thinking The ability to see similarities and the connections among various data and events Divergent Thinking The Ability to see the difference among various data and events

Ten Secrets for leading Creative


They think They are visionaries The listen to customers They understand how to manage ideas They are people centered They maintain a culture of change They maximize team synergy, balance, and focus They hold themselves and others accountable for extremely high standards of performance They refuse to take no for an answer They love what they do and have fun doing it

Types of innovation
Category
Finance

Type
Business model

Description
changing the way business is done in terms of capturing value
join forces with other companies for mutual benefit support the company's core processes and workers create and add value to company's offerings

Example
Dell

Networks and alliances Process Enabling process

Sara Lee

Starbucks

Core processes

Wal-Mart

Types of Innovation:

Category
Offerings

Types
Product performance Product system

Description
design company's core offerings link and/or provide a platform for multiple products. provide value to customers and consumers beyond and around company's products get company's offerings to market communicate company's offerings

Examples
The VW Beetle Microsoft Office

Service

Singapore Airlines

Delivery

Channel Brand

Martha Stewart Lucozade

Types of Innovation
Traditional classification of innovation

Incremental innovations Radical innovations General purpose innovations

Entrepreneurship and innovation

Need of entrepreneurial activity to exploit opportunities Innovation contribute to growth of the economy because entrepreneurs produce innovation (Schumpeter, 1934)

Entrepreneurship is about innovation Innovation requires three basics components : Infrastructure Capital Entrepreneurial capacity (Herbig et al., 1994) People who lead teams and organisations to introduce innovation are entrepreneurs (Legge and Hindle, 1997)

Bottom line!!!

Entrepreneurship and innovation are closely related to each other and are complementary Corporate entrepreneurship = The effort of promoting innovation in an uncertain environment Entrepreneurial behaviour can add significant value to the organisation (comptitive advantage) Entrepreneurship and innovation should be regarded as an ongoing everyday practice

Thank You!!!!

Q&A