Chapter 5
Creativity
and
the Business Idea Hisrich
Peters
Shepherd
Creativity & Innovation
• Creativity is the ability to develop new
ideas and to discover new ways of
looking at problems & opportunities
• Innovation is the ability to apply
creative solutions to those problems &
opportunities to enhance or to enrich
people’s lives.
• Creativity is thinking new things &
innovation is doing new things
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Creativity & Innovation
• Entrepreneurs succeed by thinking and
doing new things or old things in new
way.
• Having a great new idea is not enough;
transforming the idea into a tangible
product, service or business venture is
the essential next step
• Leadership expert Warren Bennis says. “
today’s successful companies live and
die according to the quAwaz ality of
their ideas”
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Creativity & Innovation
• Creativity involves generating something from
nothing
• Creative ideas springs up from the most
unexpected places.
• Millions of people come up with creative ideas
for new or different products & services; most
of them, however, never do anything with
them
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Sources of New Ideas
Consumers
Sources Products and
Services
R&D of New
Section
Ideas
Distribution
Govt.
channels Regulation
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Sources of New Ideas
• Consumers
– Informally monitor potential ideas and needs.
– Formally arrange for consumers to express their
opinions.
• Existing Products and Services
– Analysis uncovers ways to improve offerings that may
result in a new product or service.
• Distribution Channels
– Channel members can help suggest and market new
products.
Sources of New Ideas (cont.)
• Federal Government
– Files of the Patent Office can suggest new product
possibilities.
– New product ideas can come in response to
government regulations.
• Research and Development
– A formal endeavor connected with one’s current
employment.
– An informal lab in a basement or garage.
Methods of Generating New Ideas
• Focus Groups
– A moderator leads a group of 8 to 14 participants
through an open, in-depth discussion in a directive
or nondirective manner.
– Moderator focuses discussion of the group in a
directive or nondirective manner.
– An excellent method for generating and screening
ideas and concepts.
Methods of Generating New Ideas (cont.)
• Brainstorming
– Allows people to be stimulated to greater creativity.
– Good ideas emerge when the brainstorming effort
focuses on a specific product or market area.
– Rules of brainstorming:
• No criticism.
• Freewheeling is encouraged.
• Quantity of ideas is desired.
• Combinations and improvements of ideas are encouraged.
Methods of Generating New Ideas
Focus group and brainstorming is
different in the sense that FG is
structured or moderated...while BS is
not a debate or discussion like
that....its people giving lots of ideas
without criticism allowed
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Methods of Generating New Ideas (cont.)
• Brainwriting
– A form of written brainstorming.
– Participants write their ideas on special forms or
cards that circulate within the group.
• Problem Inventory Analysis
• Instead of generating new ideas themselves consumers
provided with list of problems in general product category
• Then asked to identify & discuss products in this category that
have particular problem.
• Can be used to test a new product idea.
• Effective method since its easier to relate known products to
suggested problems & arrive at a new product idea than to
generate an entirely new product idea by itself.
• Results must be carefully evaluated as they may not actually
reflect a new business opportunity.
Creative Problem Solving
• Creativity tends to decline with age, education,
lack of use, and bureaucracy.
• Latent creative potential can be stifled by
perceptual, cultural, emotional, and
organizational factors.
• Creativity can be unlocked by using any of the
creative problem-solving techniques.
Creative Problem Solving (cont.)
• Brainstorming
– Session starts with a problem statement.
– No group member should be an expert in the field of
the problem.
– All ideas must be recorded.
• Reverse Brainstorming
– A group method that focuses on the negative aspects
of a product, service, or idea as well as ways to
overcome these problems.
– Care must be taken to maintain group morale.
Creative Problem Solving (cont.)
• Gordon Method
– Method for developing new ideas when the individuals
are unaware of the problem.
– Solutions are not clouded by preconceived ideas and
behavioral patterns.
• Checklist Method
– Developing a new idea through a list of related issues.
• Free Association
– Developing a new idea through a chain of word
associations.
Creative Problem Solving (cont.)
• Forced Relationships
– Developing a new idea by looking at product
combinations.
– A five step process which focuses on generating
ideas from relationship patterns between
elements of a problem.
• Collective Notebook Method
– Developing a new idea by group members
regularly recording ideas.
Creative Problem Solving (cont.)
• Attribute Listing
– Developing a new idea by looking at the positives
and negatives.
• Big-Dream Approach
– Developing a new idea by thinking without
constraints.
