ENT 3003 Chapter 3

Restating the problem

Use how and why to break the logjam.

Techniques to help generate ideas and then focus on the best solution

1) RESTATE THE PROBLEM—clearly identify the true problem (ex) problem seems to be needing more revenue but a closer look reveals there is no value proposition for the consumer 2) IDENTIFY PROS AND CONS FOR POTENTIAL SOLUTION—come up with several solutions and identify the positive and negative of each solution 3) DEVELOP A DECISION TREE—reflects all of the possible choices to solve a problem and its related outcomes.

Generate ideas for sources of the problem and potential solutions

1) go for quantity over quality initially 2) capture every idea no matter how outlandish it may seem on the surface 3) Piggyback on ideas and create new combinations and modifications

Take advantage of a personal network

2nd most commonly cited source of new venture ideas is business associates. This expands the individuals access to experiences

New research has indicated that when ideas are generated individually before the team meets the number of quality ideas improves

Best generated ideas by the hybrid approach is usually better than the best idea using the group approach

Attribute Identification

Break down a problem into its various elements, then generate new approaches or modifications for each of the elements. (apparel company might include the actual clothing line, the type of retail outlet, in-store service techniques and customer acquisition strategies )

Minimize the distractions

Close the door, shut off the phone, turn off email

Design an environment to stimulate creativity

Companies like Google attribute a lot of their success to providing an environment that stimulates innovation.

No Confidence

Confidence is the expectation of success and many are simply afraid to fail which might cause someone with a good idea to never pursue it. (Washing machine that attached to a car tire made the car only go 25 mph, but similarly the fax machine would have never been invented if someone didn't think out of the box. (think why you can instead of why you can't)

Connecting unrelated concepts

Da Vinci is credited with seeing a connection between the branches of trees and the potential for a canal system in the city of Florence.

Devote time to quiet contemplation

Do it regularly to facilitate creativity

Developing creative skills

Don't dismiss ideas before they have a chance.

4) Spend more time with people in different fields of interest and move out of the comfort zone

Expose yourself to new perspectives

Creativity and Problem Solving

Identify a problem and seek a solution (you need a hammer but don't have one so you use the handle of a screwdriver). Studies show that problem solving often involves creativity but creativity does not always involve problem solving.

Log Ideas

Jot down ideas in a journal, keep it with you at all times. Even if you aren't ready to act, write it down.

Brain Writing

Making sure everyone is comfortable(some people might not want to announce their ideas out loud). Everyone writes an idea on 3 post-it notes and puts them in the middle of a table. You then pick an idea other than your own and put 3 new ideas on it

Return to Childhood

Many creative gurus use toys to get their clients to respond more creatively (legos and K"NEX are examples of creative toys. Also suggest playing with children to watch unfettered imagination. ( Guy took a bet he couldn't make a living selling butterflies and now he releases them at wedding or other special events, last year revenue for his company Amazing Butterflies was $1 million

3) Pay attention to the places that inspire the most creative thinking and spend more time there

Many innovative people move to Silicon Valley each year

Focus on the problem definition

Natural tendency to kill the crazy ideas quickly. Should use Affirmative Judgment which is simply looking for the strengths or positive aspects of a problem definition first.

Put the familiar into a new context

Not true that entrepreneurs only build businesses based on concepts that never existed, in many cases the idea stems from an opportunity or problem in his current environment. Recessions, while negative to many, also leads many to look for new opportunities

Noller

developed a formula that said creativity is a function of three dynamics: 1) Knowledge 2) imagination 3) Evaluation

Challenges to creativity

entrepreneurs sometimes unintentionally erect roadblocks

Wallas

identified four stages of the creative process: 1) Preparation 2) Incubation (letting the problem lie in the subconscious for some time) 3) Illumination (the discovery of a solution) 4) Verification (bringing the idea to an outcome)

Creation Theory

no single coherent theory but rather a number of assumptions about contexts and behaviors that don't wall within the realm of discovery theory. Entrepreneurs create opportunity via their actions, reactions, and experiments around new products, services, and business models. (opportunity is in the mind of the entrepreneur and must be created).

No time for creativity

people are often so busy there is no time to think and this suppresses creative skills. 1994 research showed that 82 % of respondents said they completed at least half of their planned work for the day, a current study showed the number had dropped to 50%. A recent study showed that students who did not multi-task performed better than those who did.

Isaksen

recognized 4 general themes: 1) Characteristics of Creative people 2) Processes creative people perform 3) Products creative people produce 4) Climate culture and context in which creativity occurs.

Discovery Theory

sees opportunity rising from shifts in external factors such as regulation, technological changes and changes in customer preferences. These are waiting for entrepreneurs to discover them. Research has shown that entrepreneurs are more aware and alert than normal people.

Ideas

they are a commodity, everyone has them but entrepreneurs extract value and turn them into opportunities.