Part II
Initiating Entrepreneurial
Ventures
Chapter 5
Innovation:
The Creative
Pursuit of Ideas
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Table
5.1 Sources of Innovative Ideas
Source Examples
Unexpected occurrences Unexpected success: Apple Computer (microcomputers)
Unexpected tragedy: 9/11 terrorist attack
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 communities for older people
Perceptual changes Exercise (aerobics) and the growing concern for fitness
Knowledge-based concepts Mobile (cell phone) technology; pharmaceutical industry;
robotics
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Trends
Societal Technology Economic Government
Trends Trends Trends Trends
Higher
Mobile (cell
Aging disposable
phone) Increased
demographics, incomes, dual
technology, e- regulations,
health and wage-earner
commerce, petroleum
fitness growth, families,
Internet prices, terrorism
senior living performance
advances
pressures
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5–3
The Role of Creative Thinking
• Creativity
The generation of ideas that result in the
improved efficiency or effectiveness of a system.
• Two important aspects of creativity exist:
Process
• The process is goal oriented; it is designed
to attain a solution to a problem.
People
• The resources that determine the solution.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5–4
Table
5.2 Two Approaches to Creative Problem Solving
Adaptor Innovator
Employs a disciplined, precise, Approaches tasks from unusual angles
methodical approach
Is concerned with solving, rather Discovers problems and avenues of
than finding, problems solutions
Attempts to refine current practices Questions basic assumptions related
to current practices
Tends to be means oriented Has little regard for means; is more
interested in ends
Is capable of extended detail work Has little tolerance for routine work
Is sensitive to group cohesion and Has little or no need for consensus;
cooperation often is insensitive to others
Source: Michael Kirton, “Adaptors and Innovators: A Description and Measure,” Journal of Applied
Psychology (October 1976): 623. Copyright © 1976 by The American Psychological Association.
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The Knowledge and Learning Process
Personal work
experience,
and education
Specific General
interest industry
knowledge knowledge
Distilling Ideas
into
Opportunities
Prior customer Prior market
understanding knowledge
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The Nature of the Creative Process
• Creativity is a process that can be developed and
improved. Some individuals have a greater
aptitude for creativity than others.
• Typical Creative Process
Phase 1: Background or knowledge accumulation
Phase 2: The incubation process
Phase 3: The idea experience
Phase 4: Evaluation and implementation
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The Typical Creative Process
Phase 1
Phase 2 Phase 3 Phase 4
Background or
The incubation The idea Evaluation and
knowledge
process experience implementation
accumulation
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Figure
5.1 The Critical Thinking Process
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Innovation and the Entrepreneur
• Innovation:
Is the process by which entrepreneurs convert
opportunities (ideas) into marketable solutions.
Is a combination of the vision to create a good idea
and the perseverance and dedication to remain with
the concept through implementation.
Is a key function in the entrepreneurial process.
Is the specific function of entrepreneurship.
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The Innovation Process
• Sources
Types ofofInnovation
Innovation
Unexpected occurrences
Invention
Extension
Incongruities
Duplication
Process needs
Synthesisand market changes
Industry
Demographic changes
Perceptual changes
Knowledge-based concepts
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Table
5.6 Innovation in Action
Type Description Examples
Invention Totally new product, service, Wright brothers—airplane
or process Thomas Edison—light bulb
Alexander Graham Bell—telephone
Extension New use or different Ray Kroc—McDonald’s
application of an already Mark Zuckerberg—Facebook
existing product, service, Barry Sternlicht—Starwood Hotels &
or process Resorts
Duplication Creative replication of an Wal-Mart—department stores
existing concept Gateway—personal computers
Pizza Hut—pizza parlor
Synthesis Combination of existing Fred Smith—Fed Ex
concepts and factors into a Howard Schultz—Starbucks
new formulation or use
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