Transcript
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
CHAPTER
2
Inside the Entrepreneurial Mind:
From Ideas to Reality
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
Creativity and Innovation
Creativity – the ability to develop new
ideas and to discover new ways of
looking at problems and
opportunities; thinking new things
Innovation – the ability to apply
creative solutions to problems or
opportunities to enhance or to enrich
people’s lives; doing new things.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-2
1
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Entrepreneurship
Entrepreneurship – the result of a
disciplined, systematic process of
applying creativity and innovation to
the needs and opportunities in the
marketplace.
Entrepreneurs connect their creative
ideas with the purposeful action and
structure of a business.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-3
Failure: Part of the
Creative Process!
For every 3,000 new product ideas:
Four make it to the development stage.
Two are actually launched.
One becomes a success in the market.
On average, new products account for 40%
of companies’ sales!!
Creativity is an important source of building
a competitive advantage.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-4
2
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Can We Learn to Be Creative?
Yes!
By overcoming paradigms and by suspending
conventional thinking long enough to
consider new and different alternatives!
Ch. 2: Inside the Entrepreneurial Mind
Copyright
2-5
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
How Creative Are You?
Chun
Chun
Chun
Chun
Hundred
Hundred
Hundred
Hundred
Hundred
O
R
H
E
S
Umph Umph Umph
Of the Spirit
W
Grace.
S
S Media
Stand
I
Scholar
Intensity
2 1111 STO CK
Objection
Ruled
Ch. 2: Inside the Entrepreneurial Mind
THEBLUEFACE
W
Copyright
E
B
S
Roll Roll
Roy Roy
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
H
E
E
T
Tomb of 210,N
2-6
3
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
How Creative Are You?
Fortune 500
Scattered
Showers
Triumph of the
Spirit
Grace Period
Rhodes Scholar
I Understand
Spring Break
Media Bias
Two for One
Stock Split
Blue in the Face
High Intensity
Spreadsheet
Objection
Overruled
Web Links
Rolls Royce
Tomb of
Tutankhamen
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-7
Right-Brained,
Creative Thinkers
Always ask: “Is there a better way?”
Challenge custom, routine, and
tradition.
Are reflective.
Are prolific thinkers.
Play mental games.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-8
4
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Right-Brained,
Creative Thinkers
Realize that there may be more than one
“right” answer.
Know that mistakes are pit stops on the
way to success.
Recognize that problems are
springboards for new ideas.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-9
Right-Brained,
Creative Thinkers
Understand that failure is a natural part
of the creative process.
Relate seemingly unrelated ideas to a
problem.
Have “helicopter skills.”
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 10
5
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Left-Brained or
Right-Brained?
Entrepreneurship requires both left-and
right-brained thinking.
Right-brained thinking draws on divergent
reasoning, the ability to create a multitude
of original, diverse ideas.
Left-brained thinking counts on
convergent reasoning, the ability to
evaluate multiple ideas and to choose the
best solution to a problem.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 11
Barriers to Creativity
Searching for the one “right” answer
Focusing on “being logical”
Blindly following the rules
Constantly being practical
Viewing play as frivolous
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 12
6
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Barriers to Creativity
Becoming overly specialized
Avoiding ambiguity
Fearing looking foolish
Fearing mistakes and failure
Believing that “I’m not
creative”
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 13
Questions to Spur the
Imagination
Is there a new way to do it?
Can you borrow or adapt it?
Can you give it a new twist?
Do you merely need more of the same?
Do you need less of the same?
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 14
7
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Questions to Spur the
Imagination
(continued)
Is there a substitute?
Can you rearrange the parts?
What if you do just the opposite?
Can you combine ideas?
Can you put it to other uses?
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 15
Questions to Spur the
Imagination
(continued)
What else could you make from this?
Are there other markets for it?
Can you reverse it?
Can you eliminate it?
Can you put it to another use?
What idea seems impossible, but if
executed, would revolutionize your
business?
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 16
8
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Tips for Enhancing
Organizational Creativity
Include creativity as a core company
value
Embrace diversity
Expect creativity
Expect and tolerate failure
Create an organizational structure that
nourishes creativity
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 17
Tips for Enhancing
Organizational Creativity
(continued)
Encourage curiosity
Create a change of scenery periodically
View problems as opportunities
Provide creativity training
Provide support
Develop a procedure for capturing ideas
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 18
9
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Tips for Enhancing
Organizational Creativity
Talk and interact with customers
Look for uses for your company’s
products or services in other markets
Reward creativity
Model creative behavior
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 19
Tips for Enhancing
Individual Creativity
Allow yourself to be creative
Give your mind fresh input every day
Observe the products and services
of other companies, especially
those in completely different markets
Recognize the creative
power of mistakes
Notice what is missing
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 20
10
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Tips for Enhancing
Individual Creativity
Keep a journal to record your thoughts
and ideas
Listen to other people
Listen to customers
Talk to a child
Do something ordinary in an unusual
way
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 21
Tips for Enhancing
Individual Creativity
Keep a toy box in your office
Do not throw away seeming “bad”
ideas
Read books on stimulating creativity or
take a class on creativity
Take some time off
Be persistent
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 22
11
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 23
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 24
12
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Preparation
Get your mind ready for creative thinking.
Adopt the attitude of a lifelong student.
Read … a lot … and not just in your field
of expertise.
Clip articles of interest to you and save
them.
Take time to discuss your ideas with other
people.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 25
Preparation
Get your mind ready for creative thinking.
Join professional or trade associations
and attend their meetings.
Study other countries and their cultures.
Travel to new places.
Develop your listening skills.
Eliminate creative distractions.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 26
13
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 27
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 28
14
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Transformation
Involves viewing both the similarities and the
differences among the information collected.
Two types of thinking are required:
Convergent – the ability to see the
similarities and the connections among
various and often diverse data and events.
Divergent – the ability to see the
differences among various data and
events.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 29
Transformation
How can you transform information
into purposeful ideas?
Grasp the “big picture” by looking for
patterns that emerge.
Rearrange the elements of the situation.
Use synectics, taking two seeming
nonsensical ideas and combining them.
Remember that several approaches can be
successful. If one fails, jump to another.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 30
15
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 31
Incubation
Allow your subconscious to reflect on
the information collected.
Walk away from the situation.
Take the time to daydream.
Relax – and play – regularly.
Dream about the problem or
opportunity.
Work on the problem in a different
environment.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 32
16
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 33
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 34
17
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Verification
Validate the idea as accurate and useful.
Is it really a better solution?
Will it work?
Is there a need for it?
If so, what is the best application of this
idea in the marketplace?
Does this product or service fit into our
core competencies?
How much will it cost to produce or to
provide?
Can we sell it at a reasonable price that will
produce a profit?
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 35
The Creative Process
Preparation
Investigation
Incubation
Illumination
Transformation
Verification
Implementation
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 36
18
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Techniques for Improving
the Creative Process
Brainstorming:
The goal is to create a large quantity
of novel and imaginative ideas.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 37
Brainstorming Guidelines
Keep the group small – “Two pizza rule.”
Make the group as diverse as possible.
Emphasize that company rank is
irrelevant.
Have a well-defined problem, but don’t
reveal it ahead of time.
Limit the session to 40 to 60 minutes.
Take a field trip.
Appoint a recorder.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 38
19
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Brainstorming Guidelines
Use a seating pattern that encourages
interaction.
Throw logic out the window.
Encourage all ideas from the team.
Shoot for quantity of ideas over quality of
ideas.
Forbid criticism.
Encourage idea “hitch-hiking.”
Dare to imagine the unreasonable.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 39
Techniques for Improving the
Creative Process
Brainstorming
The goal is to create a large quantity of
novel and imaginative ideas.
Mind-mapping
A graphical technique that encourages
thinking on both sides of the brain,
visually displays relationships among
ideas, and improves the ability to see a
problem from many sides.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 40
20
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Techniques for Improving the
Creative Process
Force Field Analysis
A useful technique for evaluating the
forces that support and oppose a
proposed change.
Three columns:
Center: Problem to be addressed
Left: Driving forces
Right: Restraining forces
Score each force (-1 to +4) and add them.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 41
FIGURE 2.2 Sample Force Field Analysis
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 42
21
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Techniques for Improving the
Creative Process
TRIZ
A systematic approach designed to solve
any technical problem.
Relies on 40 principles and left-brained
thinking to solve problems.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 43
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 44
22
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Techniques for Improving the
Creative Process
TRIZ
A systematic approach designed to solve
any technical problem.
Relies on 40 principles and left-brained
thinking to solve problems.
Rapid Prototyping
Transforming an idea into an actual model
that will point out flaws and lead to design
improvements.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 45
Protecting Your Ideas
Patent – a grant from the Patent and
Trademark Office to the inventor of
product, giving the exclusive right to
make, use, or sell the invention for
20 years from the date of
filing the patent application.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 46
23
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
FIGURE 2.4 Patent Applications and Patents Issued
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
The Six Steps to a Patent
6. File the patent application
5. Complete the patent application
4. Study search results
3. Search existing patents
2. Document the device
1. Establish the invention’s novelty
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 48
24
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Protecting Your Ideas
Trademark – any distinctive word,
symbol, design, name, logo, slogan, or
trade dress a company uses to identify
the origin of a product or to distinguish
it from other goods on the market.
Servicemark – the same as a trademark
except that it identifies the source of a
service rather than a product.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 49
FIGURE 2.6 Trademark Applications and Trademarks and Renewals Issued
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 50
25
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Protecting Your Ideas
Copyright – an exclusive right that
protects the creators of original works
of authorship such as literary,
dramatic, musical, and artistic works.
Copyrighted material is denoted by
the symbol ©.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
2 - 51
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
Protecting Your Ideas
Type of
Protection
Copyright
What It
Covers
Works of
original
authorship
Time
Required
Cost
About 2 weeks
About $35
Trademark
Logos, names,
phrases
6 – 12 months
$900 - $1,500
Design patent
Look of an
original product
Up to 2 years
$5,000 - $20,000
Utility patent
How an original
product works
2 – 5 years
$5,000 - $20,000
Business
method patent
A business
process
2 – 5 years
$5,000 - $20,000
Source: Anne Field, “How to Knock Out Knock Offs,” Business Week, March 14, 2005.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 52
26
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT ● 6E
Chapter 2: Inside the Entrepreneurial Mind: From Ideas to Reality
Conclusion
The creative process is a tenant of the
entrepreneurial experience.
Success, and even survival itself, requires
entrepreneurs to tap their creativity.
The seven steps of the creative process
transform an idea into a business reality.
Creativity results in value, and value
provides a competitive advantage.
Entrepreneurs protect their creative ideas
with patents, trademarks, servicemarks, and
copyrights to sustain a competitive edge.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 53
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of
the publisher. Printed in the United States of America.
Ch. 2: Inside the Entrepreneurial Mind
Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall
2 - 54
27