CHAPTER 2 Inside the Entrepreneurial
Mind
MAN 470 – Berk TUNCALI
Video – Apple Inc. (Steve Jobs 2007 Keynote speech)
Entrepreneurs achieve success by combining resources
in new and different ways to create competitive edge on
rivals.
Remember from class, the video was about the
announcement of the original iPhone and the
text book explanation of entrepreneurship.
Creativity: the ability to develop new ideas and to discover new ways of looking at problems and oppurtunities.
Innovation: the ability to apply creative solutions to problems and oppurtunities to enhance or to enrich
people's lives. (applying creative solutions to problems you face)
Theodore Levitt - Professor at Harvard Business School – says;
Creativity is thinking new things, Innovations is doing new things or old things in new ways...
Creativity and Innovation
Creativity and Innovation
Examples;
Linda Turner - Belly Bra! for pregnant women (1991).
This idea launched T&J Designs and became a Successful company.
Henry Ford - First Mass production Automobile and the
moving assembly line. Horse wagons + steam engine…
only putting it together!
Unexpectd creativity - Story of the Polaroid camera
Edwin Land an american scientist goes to holiday with his family 1943. When taking a family picture, her 3
year
old daughter asks why she couldn't see the picture he Has just taken. He thinks about the for hours and
comes
up with the idea of a Polaroid Camera.
(Polaroid,however , filed for chapter 11 bankruptcy in 2001 and bought by JP Morgan.)
Idea Barriers
Out of every 3000 new product ideas, only 4 of them make it to development stage and 2 of them make it to the market. But 1 of them becomes a success.
Coming up with ideas that will see the light of day is very very hard. Getting them to the stage of success is even harder. However, once a product gets through these
barriers,
they will need innovations (extension strategies) to stay at the top. This can be seen on the next slide.
Creativity
Creativity is not only the best way to have a competitive advantage but it is also a
necessity for survival of companies. (Best defence is OFFENCE)
Creative Thinking: right brain
(images,emotion, intuitive, jumps from idea to
idea ) - left brain (language, linear, symbols,
logic, systematic thinking)
When your right side of the brain is more developed you tend
to:
ask is there a better way?
challenge tradition
be reflective - deep thought - stare out of windows
be prolific thinkers - many ideas make it more likely to come up with a good one
play mental games
see mistakes as pit stops on the way to success
see problems as a jumping point to the next ideas
helicopter skill - rise above the daily routine and look at things from above to see the problem
Barriers to Creativity:
1.
Searching for the one right answer
2.
Focusing on Being logical
3.
Blindly following the rules
4.
Constantly being preactica
5.
Viewing play as frivilous
Barriers to Creativity:
6.
Becoming overly specialized
7.
Avoiding ambiguity
8.
Fearing looking foolish
9.
Fearing mistakes and failure
10.
Believing that ''I am not creative''
How to develop and enhance creativity:
At Organizations;
Emracing diversity
Expecting creativity
expect and tolerate failure
encourage curiosity – (google work place)
view problems as challenges
providing creativity training
providing support
develop a procedure for capturing ideas
rewarding creativity
digital communications corporation
modelling creative behaviour
How to develop and enhance creativity:
Individually;
allow yourseld to be creative
give your mind fresh input every day
recognize the creative power of mistakes
keep a journal to record thoughts and ideas
listen to other people – interaction
talk to a child
keep a toy box in your Office – many CEO’s have this in their Office – google is full of toys.
read books and take classes on creativity
take some time off (holiday is a must)
The Creative Process
1. Preparation 2. Investigation 3. Transformation 4. Incubation
5. Illumination 6. Verification
7. Implementation
Convergent thinking: the ability to see similarities and the connections among various data and events.
Divergent thinking: the ability to see differences among various data and events.
Mind mapping: a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among ideas and improves the ability to view a problem from many sides.
Rapid prototyping: the process of creating a model of an idea, enabling an entrepreneur to discover flaws in the idea to make improvements in the design.
Brainstorming: a process in which a small group of people interact with very little structure with the goal of producing a large quantity of novel and imaginative ideas.
