Entrepreneurship Chapter 5

What is the right brain vs the left brain?

right: -helps individual understand analogies, imagine things, and synthesize information left: -helps person analyze, verbalize, and use rational approaches to problem solving Corpus callosum connects the two

What are perceptual changes?

Changes in people's interpretation of facts and concepts may be intangible but meaningful ex) healthy and fit, time shares

What are demographic changes?

Changes in population size, age, education, occupation, geographic locality, and similar demographic variables ex) average pop age in florida and arizona has increased, land development, recreation, and health care industries

What is security hunting?

Common mental habit that inhibits creativity and innovation by hindering creative thought processes Must take calculated risks

What are industry and market changes?

Continual shifts in the marketplace caused by changes in consumer attitudes, advancements in tech, and growth in the structure, design, or definition of markets or industries ex) health care industry, in-patient, at-home health care, etc

What are the arenas of creativity?

Idea creativity: -thinking up a new idea or concept, such as an idea for a new product or service or a way to solve a problem Material creativity: -inventing and building a tangible object such as a product, ad, report, etc Organization creativity: -organizing people or projects and coming up with a new organizational form or approach to structuring things Relationship creativity: -innovative approach to achieving collaboration, cooperation, and win-win relationships with others Event creativity: -producing an event such as an awards ceremony, team outing, annual meeting Inner creativity: -changing ones inner self: being open to new approaches to how one does things and thinking about oneself in different ways Spontaneous creativity: -acting in a spontaneous or spur of the moment manner, witty response, off-the-cuff speech, closing a sale

What do entrepreneurs blend ?

Imaginative and creative thinking with a systematic, logical process ability

What are the major misconceptions of innovation?

Innovation is planned and predictable: -based on the old concept that innovation should be left to R&D department under planned format Technical specification must be thoroughly prepared: -comes from engineering arena, which drafts complete plans before moving on. Try try/test/revise approach Big projects will develop better innovations than smaller ones: -larger firms are encouraging people to work in smaller groups because easier to generate creative ideas Tech is driving force of innovation success: -tech is a driving force but not only success factor ---customer or market is driving force

What are the types of innovation?

Invention: -creation of new product, service, or process (revolutionary) Extension: -expansion of product, service, or process already in existence Duplication: -replication of an already existing product, service, or process Synthesis: -combination of existing concepts and factors into a new formulation

What are knowledge based concepts?

Inventions, which are the product of new thinking, new methods, and new knowledge, often require the longest time period between initiation and market implementation because of testing and modification ex) cell phone tech (not just cell service)

What is either/or thinking?

People often get bogged down with striving for an unreasonable amount of certainty in their lives Creative person learns to accept reasonable amount of ambiguity in his or her work and life

What are the two important components of creative problem solving?

Process and people process: -goal oriented; designed to attain a solution to a problem people: -the resources that determine the solution

What is innovation?

Process by which entrepreneurs convert opportunities into marketable ideas combination of the vision to create a good idea and the perseverance and dedication to remain with the concept through implementation

What is stereotyping?

Refers to averages that people fabricate and then ironically base decisions on as if they were entities existing in the real world

What is probability thinking?

Relying on probability to make decisions in the struggle to achieve security

What are unexpected occurences?

Successes or failures that, because they were unanticipated or unplanned, often prove to be major sources of innovation. ex) 9/11, influx of homeland security changes

What are examples of a creative climate?

Trustful management that doesnt overcontrol employees Open channels of comm among all business members Considerable contact and comm with outsiders Large variety of personality types Willingness to accept change Enjoyment of experimenting with new ideas Little fear of negative consequences for making mistake Selection and promotion of employee on basis of merit

What is a functional perspective?

Viewing things and people in terms of how they can be used to satisfy ones needs and to help complete a project

Differences between adaptor and innovator

adaptor: -employs discipline, precise, methodical approach -is concerned with solving, rather than finding problems -attempts to refine current practices -tends to be means oriented -capable of extended detail work -sensitive to group cohesion and cooperation innovator: -approaches tasks from unusual angles -discovers problems and avenues of solutions -questions basic assumptions related to current practices -has little regard for means; is more interested in ends -has little tolerance for routine work -has little or no need for consensus; often is insensitive to others

Ways to develop left hemisphere skills? right?

left: -step-by-step planning of work and life activities -reading ancient, medieval, and scholastic philosophy, legal cases, and books on logic -timetables for all activities -working with computer program right: -using metaphors and analogies to describe things and people in conversations -taking off your watch when you arent working -suspending initial judgement of ideas, new acquaintances, movies, etc -record hunches, feelings, and intuitions

What are process needs?

needs in the marketplace are "pain" and to innovative solutions to these needs as painkillers ex) med devices, healthier foods, time-saving devices

Describe the four phases of creative development

1) Background or knowledge accumulation: -Successes are preceded by investigation and information gathering ---read a variety of fields, join professional group, attend professional meetings, travel to new places, talk about the subject, scan magazines, papers, develop subject library, carry notebook around, devote time to pursue curiosities 2) Incubation Process -allow the subconscious to mull over amounts of information gathered (usually when engaged in activities unrelated to subject) ----mindless activites (grass cutting), exercise, play something, before falling asleep, meditate, relax on regular basis 3) The idea experience -When the idea or solution the individual is seeking is discovered ----daydream, practice hobbies, leisurely environment, put problem on backburner, notebook by bedside, take breaks while working 4) Evaluation and Implementation ---increase energy level w/ diet exercise and rest, educate yourself in business-planning process, test your ideas with others, intuitive hunches and feelings, educate yourself in selling process, organization policies and practices, seek advice

What are the ten key idea killers?

1) Nah. 2) Can't 3) Thats the dumbest thing ive ever heard 4) Yeah, but if you did that (disaster case) 5) We already tried that ---- years ago 6) I dont see anything wrong with the way were doing it now 7) Weve never done anything like that before 8) Weve got deadlines to meet - we dont have time to consider that 9) Its not in the budget 10) Where do you get these weird ideas?

What is a complementary or appositional relationship?

A relationship among things and people existing in the world in relations to other things and other people

What are innovation principles?

Be action oriented: -searching and active for new ideas Make the product, process, or service simple and understandable: -readily understandable Make the product, process, or service customer-based: -keep customer in mind, greater chance of acceptance Start small: -begin small and build and develop , planned growth Aim high: -for success by seeking niche in marketplace Try/test/revise: -follow the rule of try, test, and revise Learn from failures Follow milestone schedule Reward heroic activity Work, work, work

What is opportunity identification?

The ability to recognize a viable business opportunity within a variety of good ideas One of the primary challenges of entrepreneurial research

What is the creative process?

The four phases of creative development: background or knowledge accumulation, incubation process, idea experience, and evaluation or implementation

What is creativity?

The generation of ideas that results in the improved efficiency or effectiveness of a system

What are trends? Types?

They signal shifts in the current paradigm (or thinking) of the major population Societal Trends: -aging demographics, health and fitness growth, senior living Technology trends: -mobile tech, e-commerce, Internet advances Economic trends: -higher disposable incomes, dual wage-earner families, performance pressures Gov. trends: -increased regulations, petro prices, terrorism

What are some sources of innovative ideas?

Trends Unexpected occurences Incongruities Process needs Industry/Market changes Demographic changes Perceptual changes Knowledge-Based Concepts

What are muddling mind-sets?

When creative thinking is blocked or impeded

What are incongruities?

Whenever a gap or difference exists between expectations and reality ex) Fedex overnight mail, US postal service