SAS 15 The Entrepreneurial Mind
Types of innovation: Invention
totally new product, service or process
types of innovation: Synthesis
Combination of existing concepts and factors into a new formulation or use
types of innovation: Duplication
Creative replication of an existing concept
Myth. No.3
Creativity Relies on Dreams and Blue-Sky Ideas* - Accomplished innovators are very practical people and create from the opportunities left by reality - not daydreams. [*Blue Sky ideas, come from the blue sky thinking approach to idea generation. It consists mainly of the activity of "brainstorming with no limits."]
principles of innovation: Follow a milestone schedule
Every innovation should follow a schedule that indicates milestone accomplishments. Although the project may run ahead or behind schedule, it still is important to have the schedule in order to plan and evaluate the project.
types of innovation: examples of synthesis
Fred Smith - Federal Express Merrill Lynch - home equity financing
principles of innovation: Learn from failures
Innovation does not guarantee success. More importantly, failures often give rise to innovations
Name two (2) of the five (5) myths of innovation discussed by the teacher
Innovation is Planned and Predictable
principles of innovation: Make the product, process, or service customer-based.
Innovation must always keep the customer in mind. The more the innovator has the end-user in mind, the greater the chance that the concept will be accepted and used.
principles of innovation: action-oriented
Innovators must always be active and searching for new ideas, opportunities, or sources of innovation.
principles of innovation: Aim high.
Innovators should aim high for success by seeking niche in the marketplace
principles of innovation: Try-test-revise
Innovators should always follow the rule of try, test, and revise. This helps work out any flaws in the product, process, or service
principles of innovation: Start small.
Innovators should not attempt a project or development on a grandiose scale. They should begin small and build and develop, allowing for planned growth and proper expansion in the right manner and at the right time.
adds that this must also lead to commercial success to be rightfully called an innovation. Both agree that the success of a new business depends a lot on the innovative quality of an idea.
Josiah Go
The Major Myths of Innovation
Myth No. 1: Innovation is Planned and Predictable - This myth is based on the old concept that innovation should be left to the research and development (R & D) department under a planned format. In truth, innovation is unpredictable and may be introduced by anyone.
types of innovation: Extension
New use or different application to an already existing product, service, or process
principles of innovation: Make the product, process, or service simple and understandable.
People must readily understand how the innovation works.
"Innovation is the specific function of entrepreneurship...It is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth."
Peter F. Drucker
For _________, innovators are those who introduce something new to the market - a new product, new service, or a new business model.
Peter F. Drucker
types of innovation: examples of extension
Ray Kroc - McDonald's Nolan Bushnell - Atari Kemmons Wilson - Holiday Inn
Myth No.2
Technical Specifications Should Be Thoroughly Prepared - Thorough preparation often takes too long. Quite often it is more important to use a try-test-revise approach.
Name four (4) of the seven (7) sources of innovation: Any 4 of the ff:
Unexpected occurrences b. Incongruities c. Process Needs d. Industry and market
types of innovation: examples of duplication
Wal-Mart - department stores Gateway - personal computers Pizza Hut - pizza parlor
sources of innovation: Changes in perception
examples: Exercise (aerobics) and the growing concern for fitness
sources of innovation: Industry and market changes
examples: Health care industry: changing to home health care
sources of innovation: Incongruities
examples: Overnight package delivery
sources of innovation: Demographic changes
examples: Rest homes and retirement centers for older people
sources of innovation: Process needs
examples: Sugar-free products Caffeine-free coffee Microwave ovens
sources of innovation: Unexpected occurances
examples: Unexpected success: Apple Computer (microcomputers) Unexpected failure: Ford's Edsel
sources of innovation: Knowledge-based concepts
examples: Video industry; robotics
what are four types of innovation?
invention, extension, synthesis, duplication
Principles of Innovation
A potential entrepreneur needs to realize that there are principles of innovation. These principles can be learned and, when combined with opportunity, can enable the individual to innovate. The major principles of innovation are
Myth No.4
Big Projects Will Develop Better Innovations Than Smaller Ones - This myth has been proven false time and time again. Larger firms are now encouraging their people to work in smaller groups, where it often is easier to generate creative ideas.
Myth No.5
Technology Is The Driving Force of Innovation and Success - Technology is certainly one source for innovation, but it is not the only one. Moreover, it is the customer or market that is the driving force behind any innovation. Market-driven or customer-based innovations have the highest probability of success. A good example is found in the case of Polaroid's Polarvision, a television camera that allowed for instant playback of the film. Polaroid hit the market with this technological advance at the same time that videocassette recorders arrived. Result: Polaroid's product was rejected and the company lost millions of dollars.
principles of innovation: Work, work, work.
This is a simple but accurate exhortation with which to conclude the principles of innovation. It takes work, not genius or mystery, to innovate successfully.
principles of innovation: Reward heroic activity.
This principle applies more to those involved in seeking and motivating others to innovate. Innovative activity should be rewarded and given the proper amount of respect. This also means tolerating and, to a limited degree, accepting failures as a means of accomplishing innovation. Innovative work must be seen as heroic activity that will reveal new horizons for the enterprise.
types of innovation: Examples of inventions
Wright brothers - airplane Thomas Edison - light bulb Alexander Graham Bell - telephone