CREATIVITY

Dr. Ranjul Rastogi

Definition
◦ According to Kuratko (2009), creativity is a process that can be
developed and improved. Everyone is creative to some degree,
some individuals have a greater aptitude for creativity than others.
◦ Schaper and Volery (2007) stated that creativity is the process
through which invention occurs, the enabling process by which
something new comes into existence.
◦ Baron and Shane (2008) define creativity as a production of ideas
for something new that is also potentially useful.
Components of Creativity
Components Of Creativity

◦ Creative Thinking Skills

◦ refers to how a person identifies a problem and seeks its solution—the
capacity and ability to put existing ideas and knowledge together to
explore new possibilities.
◦ an entrepreneur identifies opportunities based on market demand,
develops a new product concept, formulates a business strategy and
mobilizes the required resources to undertake the project.
◦ this requires a lot of creative thinking, resourcefulness and execution
skills as it is about being creative at finding the right concept, formula,
strategy, products, etc. to make the proposal practical, affordable,
viable and acceptable to the customers and various stakeholders.
Components Of Creativity
◦ Knowledge
◦ Expertise or knowledge encompasses everything a person knows and
can do—can be acquired in different ways: formal and informal
education—education and training are major factors that distinguish
the founders of technical ventures from other types of entrepreneurs.
◦ In order to be creative, a person should have an adequate level of
knowledge and skills in the area of his interest as specialized
knowledge can enable a person to focus on his specific area of interest
—should also have broad general knowledge to enable him to think
divergently and integrate or apply other technologies that have been
developed in other fields.
Components Of Creativity
◦ Motivation
◦ Motivation determines what people actually want and will do.
◦ There are two types of motivation: intrinsic and extrinsic. Intrinsic motivation
is internally driven through a person interest, desire, aspiration and passion.
◦ Extrinsic motivation can be divided into financial and non-financial
motivation.
◦ Non-financial rewards can be in terms of compliments, words of
encouragement, acknowledgement, peer pressure and encouragement to
promote creativity.
Role of Creativity in entrepreneurship
◦ In free market economy—entrepreneur has to be creative and innovative—in order to be more
competitive, to improve market share and to increase profitability.
◦ Creativeness and innovativeness are valuable assets—help entrepreneurs to beat their competitors by
being able to offer better quality products, at competitive prices and with better service delivery.
◦ Creativity serves to express an idea or concept, while innovation seeks to solve an issue.
Role of Creativity in entrepreneurship
Creative Problem Solving
◦ How entrepreneurs do what they do:
◦ Creative thinking + systematic analysis = success
◦ Seek out unique opportunities to fill needs and wants
◦ Turn problems into opportunities
◦ Recognize that problems are to solutions what demand is to supply.
Role of Creativity in entrepreneurship
Creative Problem Solving
 The term window of opportunity is a metaphor describing the time period in which a firm can realistically enter a
new market. Once the market for a new product is established, its window of opportunity opens. As the market
grows, firms enter and try to establish a profitable position. At some point, the market matures, and the window of
opportunity closes. This is the case with Internet search engines. Yahoo!, the first search engine, appeared
Table
5.2 Two Approaches to Creative Problem Solving

Adaptor Innovator
Employs a disciplined, precise, Approaches tasks from unusual
methodical approach angles

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
Understanding Creative Ideas
Creative ideas can be worked out or extracted from three different perspectives as
suggested by Bessant and Tidd (2007):
◦ Creativity at the personal level includes creative style, inclination, ability to identify,
assess and develop new ideas and concepts.
◦ Group or social creativity stresses the contribution of teams and groups such as
creativity through the discussion of a cross-functional team—may provide a better
interface between departments or a more synergistic approach that improve
effectiveness and efficiency for the whole group or organization.
◦ Contextual creativity focuses on creativity that relates to internal and external context
such as processes, tools work method, lay out, structures, strategy, concept,
environment, climate, logistic, location, etc.
Example of sources for new ideas

◦ Consumers—the feedback and complaints from consumers will trigger

ideas on how to fulfil the needs and want of the customers.
◦ Existing products and services—existing products and services in the
market will give new ideas to entrepreneurs to further improve and
upgrade their products and services from time to time.
◦ Distribution channels—members of distribution channels are also
excellent sources of market information because of their familiarity with
the needs of the market.
◦ Government—government policy, regulation and support can be a source
of new product ideas that push entrepreneurs to be innovative and
creative.
The Process Of Creativity/ Critical Thinking
Process
The Process Of Creativity/ Critical Thinking
Process

Knowledge Accumulation
◦ This phase focuses more on the study of the background for the subject
matter which requires extensive reading, discussion with experts,
practitioners, academicians, researchers in the field, attending workshops
and seminars.
◦ This exploration exposes and helps entrepreneurs to have a better
understanding on the subject matter.
The Process Of Creativity/ Critical Thinking Process

Incubation
Incubation is defined as aprocess of unconscious recombination of thoughts
elements that were stimulated through conscious work at one pt in time
resulting in novel idea at some later [Link] time.
Incubation like a bird keeps it egg warm till the young come out.
◦ In the incubation stage, an individual will immerse oneself by allowing
the subconscious mind to muse or ponder on the information gathered.
◦ The individual may not be directly involved in the creative task.
Incubation may be induced by engaging in ‘relaxing activities’ such as
painting, meditating or playing sports or board games.
◦ The rationale is that new ideas or new insight often emerge when one is
busy doing something unrelated to the matter.
The Process Of Creativity/ Critical Thinking Process

According to Davenport and Prusak (2000), ideas are free. Ideas to innovate
can come from various sources as mentioned by Drucker (1986):
◦ The unexpected sources—sources of innovation might be derived from
unexpected success, unexpected failure or unexpected events which trigger
ideas and creativity in firms.
◦ The incongruity—the uneasiness of customers in dealing with their daily
lives could give firms ideas to create something new for the customers. For
example, paying bills on the Internet.
◦ Process need—opportunity is the source of innovation. Ideas could be
derived from the market information.
The Process Of Creativity/ Critical Thinking Process

◦ Changes in industry or market changes that caught everyone

unawares—the effect of globalization that has an impact on the
industry.
◦ Demographic changes—population change is one of the innovation
sources in meeting consumers needs.
◦ Changes in perception, mood and meaning—trend and lifestyles are
among the sources of innovation under this source of innovation.
◦ New , scientific and non-scientific knowledge—knowledge-based
innovation is based on this source— is unique as the competitors
could have a hard time to imitate the innovation.
The Process Of Creativity/ Critical Thinking
Process

Evaluation and Implementation

◦ In this phase, a person transforms the idea into a workable solution.
◦ The process of evaluation and implementation requires continuous
development and assessment so that a raw idea can be conceptualized,
modeled, strategized, refined, reworked, improved, adjusted to make it
practical, affordable, viable and acceptable to the customers and stake
holders.
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
Five Steps to Generating Creative Ideas
For an individual, the creative process can be broken down into 5 stages
Creativity requires a confluence of six distinct but interrelated
resources:

◦ "1. Intellectual abilities

◦ 2. Knowledge
◦ 3. Styles of thinking
◦ 4. Personality
◦ 5. Motivation
◦ 6. Environment
◦ Although levels of these resources are sources of individual differences, often the decision to use a
resource is a more important source of individual differences."
Creativity Techniques

◦ Entrepreneurs can use several techniques to help generate new ideas

such as:
◦ problem reversal
◦ lateral thinking
◦ forced analogy
◦ mind mapping
◦ brainstorming
◦ attribute listings
Creativity Techniques

Creativity
Techniques
 Creativity Techniques
Problem Reversal
◦ It looks at the opposite of things, see things inside out, backwards or
upside down.
◦ This technique is based on the premise that the world is full of
opposites where the action of viewing a problem from an opposite
angle and by asking questions can yield a awareness or realization of
issues that hitherto is not obvious or noticeable.
 Creativity Techniques
Problem
Reversal
Creativity Techniques

Forced Analogy
◦ This technique takes a fixed element such as the product or some idea
related to the product and forces it and compares it to the attributes of
another unrelated object or element. It is also called forced relationship
meaning the action of making an association between two unlike things
in order to obtain new insights. There are five steps on processes for
forced analogy:
◦ Isolate and list the elements of the problem.
◦ Find and establish possible relationships or connection between the
elements.
◦ Record the relationships in an orderly form.
◦ Analyze the resulting relationships to find new ideas or patterns.
◦ Develop new ideas from this pattern.
Creativity Techniques
Using forced analogy to compare new start-up business with a new born
baby.
 Creativity Techniques
Brainstorming
◦ The brainstorming term was popularized by Alex Faickney Osborn in
1953.
◦ Peters, Hisrich and Shepherd (2008) suggest that when using
brainstorming, 4 rules must be adhered to:
◦ No criticism is allowed by anyone in the group especially negative
comments.
◦ Freewheeling is encouraged because as the idea is wilder, it becomes better.
◦ Quantity of ideas is desired. The greater the number of ideas, the greater
the likelihood of the emergence of the useful ideas.
◦ Combinations and improvements of ideas are encouraged because ideas of
others can be used to produce other new ideas.
 Creativity Techniques
Attribute Listing
◦ The attribute listing technique is where the problem is broken down
into smaller parts or characteristics and analysis is made on each of
these parts to develop ideas on how to improve them.
◦ In this technique, the entrepreneur is required to list the attributes of an
item or problem and look at each from a variety of viewpoints, looking
at the positives and negatives aspects.
◦ This technique allows entrepreneurs to process some unrelated ideas
and form it into a new combination for new uses.
Creativity Techniques

Mind Mapping
◦ Mind mapping technique was developed and made famous by Tony
Buzan.
◦ A mind map is a diagram used to represent words, ideas, tasks, or other
items linked to and arranged around a central key word or idea.
◦ Mind maps are used to generate, visualize, structure, and classify ideas,
and as an aid to studying and organizing information, solving problems,
making decisions, and writing.
Creativity Techniques

Mind
Mapping
Creativity Techniques

Lateral Thinking
◦ Lateral thinking technique was introduced and developed by Edward De
Bono.
◦ Lateral thinking requires a person to explore the possibility of new
solutions to a problem from a different approach or perspective.
◦ Looking at and analyzing problems from a different perspective may
give new insight and new solutions to an old problem or the problem
itself may already be irrelevant.
Developing Your Creativity
◦ Recognizing Relationships
◦ Looking for different or unorthodox relationships among the elements and people around you.
◦ Developing a Functional Perspective
◦ Viewing things and people in terms of how they can satisfy his or her needs and help complete a project.
◦ Using Your Brains
◦ The right brain helps us understand analogies, imagine things, and synthesize information.
◦ The left brain helps us analyze, verbalize, and use rational approaches to problem solving.
The Creative Climate
◦ Characteristics of a creative climate:
◦ A trustful management that does not overcontrol the personnel
◦ Open channels of communication among all business members
◦ Considerable contact and communication with outsiders
◦ A large variety of personality types
◦ A willingness to accept change
◦ An enjoyment in experimenting with new ideas
◦ Little fear of negative consequences for making a mistake
◦ The selection and promotion of employees on the basis of merit
◦ The use of techniques that encourage ideas, including suggestion systems and brainstorming
◦ Sufficient financial, managerial, human, and time resources for accomplishing goals