Creative Economy Midterm

vertical thinking

-analytical -selective -selects more promising approach to problem -knows what they're looking for -excludes what's irrelevant; perpetuates the current pattern -one has to be correct at every step (rightness) -need both vertical & horizontal thinking

creative thinking techniques

-behaving like an idea person -using creativity techniques

middle ages

-change -a movement -lifestyle -an opportunity -prosperity -a routine is a creativity killer -power of the brain: age is a state of mind

creativity techniques

-creativity is a skill that everyone can learn, practice, and use -creativity can get better with practice

the human brain

-divided into two hemispheres (left and right) -some cognitive functions tend to be dominated by one side or the other, how they are lateralized -highly creative people use both sides of their brain

4 actions framework: cirque du soleil

-eliminate: star performers, animal shows, aisle concessions - raise: unique venue -reduce: fun & humor, thrill & danger -create: theme, refined environment, multiple productions, artistic music & dance

ken robinson's key ideas

-unpredictable future=> expect to prepare them for it -creativity is just as important as literacy -can't be afraid to be wrong or you can't be original -intelligence is diverse, distinct, brilliant

creative class: diversity & openness

-want an environment open to differences, whether it's topics related to same-sex marriage, race gender, ethnicity, appearance - ex. they go into interviews asking about same-sex marriage benefits even though they aren't gay -they want to be able to move across the country & find a job where they fit in and feel comfortable

anatomy of the creative moment: ILLUMINATION

-when all of sudden the solution to the problem or a great idea comes to you out of nowhere

anatomy of the creative moment : INCUBATION

-when you digest all what you have gathered -more of a passive stage where much of what goes on occurs outside of your focused awareness -in the mind's unconscious

opportunity

-where is it? -without it you may never know what your aptitudes are or how far they may take you -we may never discover our true element depends on this -depends on what we have, what we create, and how or is we take them -seek this and explore your aptitude in different fields

anatomy of the creative moment: DAYDREAM

-you have to immerse yourself in the subject, so then you can start thinking about it at odd hours -this type of thinking leads to illumination

finding your tribe: FIELD

helps domain happen; the people that are around

create

which factors can be created that haven't been offered? -lifts value

reduce

which factors can/have been reduced below industry standard? -drops cost

eliminate

which factors should be eliminated? -drops cost

raise

which factors should be raised above industry standard? -lifts value

finding your tribe: DOMAIN

engage in activities and come up with ideas/changes

being creative in X

- a given person can be very original and inventive, in one of those areas without being particularly creative in any of the others

the strategy canvas

- current state of play in the known market space - allows you to understand where competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what customers receive from the existing competitive offerings on the market

blue oceans

- denote all the industries NOT in existence today; the unknown market space - are new markets, value innovation

the strategy canvas: value curve

- horizontal axis: captures the range of factors the industry competes on and invests in (starts with price then other factors) - vertical axis: the strategy canvas captures the offering level that buyers receive across all these key competing factors (starts low to high)

aptitude

- i get it -it is an intuitive feel or a grasp of what that thing is, how it works, & how to use it -they are highly personal (may be general or very specific) -we are not good at everything, but at something in particular

path 2

- look across strategic groups within industries - strategic differences among industry are shown by a small number of "strategic groups" - a group of companies within an industry that pursue a similar strategy -ranked in order by price & performance -a jump in price brings a corresponding jump in some dimensions of performance -what are the strategic groups in your industry? -why do customers trade up for the higher group, and why do they trade down for the lower one?

what does Apple focus on?

- packaging: it's just as important as the product -attention to detail: everything has been thoroughly designed in a highly secured lab - simplicity: smaller product line, so all their products can be great and top of the line -business to business: sells to users; "consumerization"

red oceans

- represent all industries in existence today; the known market space - are known customers and markets in the field of business

creative class: post-scarcity effect

- shift from survival to self-expression values -devote energy to having wealth, time, & ability to enjoy other aspects of life -material conditions allow us to be more creative -creative class is part of mainstream but is new in the sense of creating and striving for a diverse environment

brainstorming

-Alex Osborne developed it in 1941 -thinking methodology

analytical tools & framework

-The Strategy Canvas -The 4 Actions Framework

value curve

-a company's relative performance across its industry's factors of competition -horizontal axis (factors) & vertical axis (offering level)

creative economy

-about creativity, imagination, and above all innovation -1969 Peter Drucker -reliance on knowledge workers

creativity killers

-tradition -lack of vision -over speculation -negativism -fear of failure -impatience -uniformity -lack of funding

the power of the unconscious mind

-far more suited to a creative insight that is the conscious mind 1. no self-censoring judgements -ideas are free to recombine with other ideas in unpredictable associations 2. it is a storehouse of everything we know even if we can't readily call it into awareness -less than 1% makes it to our conscious mind -is intellectually richer than the conscious part of the mind 3. speaks in ways that go beyond words because it includes the deep feelings and rich imagery that make up the intelligence of the senses -"intuition"; when we trust our intuition, we are turning to the wisdom of the unconscious

the benefits of the 6 paths framework

-gives companies insight how to reconstruct market realities to open up blue oceans -based on looking at familiar data from a new perspective

passion

-i love it -just because you may be very good at something, that doesn't mean it's their life's calling -take a deep delight and pleasure in what they do

attitude

-i want it -basic character, our spirit, our sense of self-worth, the perception of those around us, and their expectations of us -perseverance, self-belief, optimism, ambition, and frustration

lateral thinking

-is concerned with the generation of new ideas -provocative -generative -generate as many alternatives -won't know what until I find it -allows new patterns to form with unlikely information -one does not have to be correct at every step (richness) -need both vertical & horizontal thinking

Best way to beat failure...

-is to face it, accepting that failure is simply necessary for success and realizing that you can learn a lot from failing -there's no failure, only feedback -successful innovators see mistakes as unintended outcomes or unexpected results, not as failure

From a certain age...

-learning becomes failure -many of us are brought up believing that failure is a bad thing; not taught how to learn from our mistakes -when we become adults, we have lost the capacity to take risks, and being wrong or being seen as wrong frightens us

path 1

-look across alternative industries - companies compete with those in their industry, but also industries that produce alternative products or services -what are the alternative industries to your industry? -why do customers trade across them?

path 4

-look across complementary product & service offerings -other products and services affect their value -companies should know what affects demand for their business -define the total solution buyers seek when they choose a product or service -value is often hidden in complementary products and services -what is the context in which your product or service is used? -what happens before, during, & after? -can you identify the pain points? -how can you eliminate these pain points through a complementary product or service offering?

path 5

-look across functional or emotional appeal to buyers -challenge the functional-emotional orientation of their industry -some compete just on price and function of calculations of utility, their appeal is functional -some compete largely on feelings; their appeal us emotional -this has unconsciously educated consumers on what to expect -functionality? -emotionally?

path 3

-look across the chain of buyers -competitors converge around a common definition of who the target buyer is - sometimes there's a strong economic rationale for this focus, but often it's the result if industry practices that have never been questioned -what is the chain of buyers in your industry? - which buyer group does your industry typically focus on? - if you shifted the buyer group of your industry, how could you unlock new value?

path 6

-look across time -all industries face external trends that affects their businesses over time (internet, environment) -looking at these trends can help create a blue ocean opportunity -how trend will change value to customers and impact the company's business model

the element

-people who are doing the thing they love, and in doing it they feel like their most authentic selves -they connect with something fundamental to their sense of identity, purpose, & well-being -provides a sense of self-revelation, of defining who they really are and what they're really meant to be doing with their lives

anatomy of the creative moment

-preparation P -incubation I -daydream D -illumination I -translation into reality T

role of mentor

-recognition: identify skills -encouragement: lead us; we can achieve something -facilitating: offer advice & techniques -stretching: push past our limits -helps mentee find their element -purpose: growth, evolution, transformation

power of feedback

-self-confidence -new paths -determination -finding your element

blue ocean strategy: strategic move

-shows that this is the right unit of analysis for explaining the creation of blue oceans and sustained high performance

anatomy of the creative moment: TRANSLATION INTO REALITY

-the thought alone, even if it is a breakthrough, is still not a creative act -this is the final stage, where you take the insight and transform it into action -translate your illumination into reality so then it becomes useful to you and others

blue ocean strategy

-there is no perpetually high performing company and the same company can be brilliant at one moment and wrongheaded at another - history also shows that industries are constantly being created and expanded over time and that industry conditions and boundaries aren't given; individual actors can shape them

anatomy of the creative moment : PREPARATION

-you immerse yourself in the problem, searching for information that may be relevant -let your imagination roam free, open yourself to anything that is even vaguely relevant to the problem -idea is to gather a broad range of data so the unusual and unlikely elements can begin to juxtapose themselves -being receptive, being able to listen openly & well is a crucial skill here -accept periods of anguish/frustration as necessary parts of the whole creative process -accepting there is a darkness before dawn - this positive view of anxiety can foster a greater willingness to persist in trying to solve a problem in spite of frustration

the element has two main FEATURES

1. Aptitude (i get it) 2. Passion (i love it)

the element has two main CONDITIONS

1. Attitude (i want it) 2. Opportunity (where is at?)

path 6: to form basis of a blue ocean strategy, these trends must...

1. be decisive to your business 2. be irreversible 3. have a clear trajectory -look across time & ask what the market would look like if the trend were taken to its logical conclusion -identify what must be changed today

the 3 stories of Steve Jobs

1. connecting dots: dropped out of college & started doing calligraphy -learned: everything was going to work out; if he didn't drop out he would have missed out 2. love & loss: at 30 got fired from Apple but then he started Pixar and Next -learned: still loved what he did, so he started over; don't lose faith, love what you do 3. death: if today was the last day, would I want to do what I'm doing -learned: follow heart, stay hungry, clears out old to get new, don't live someone else's life

4 rules of brainstorming

1. criticism is ruled out 2. freewheeling is welcome 3. quantity is desirable 4. combination & improvement are sought

3 categories of leadership

1. erotics: need to be loved, value consensus 2. obsessives: create & maintain order 3. productive: narcissist; visionary risk taker

Braintrust: 3 reasons for feedback

1. identify & deal with the root of the problem 2. ideas only get better when they have been challenged & tested 3. intentions are to help the problem at hand

5 steps to a creative idea

1. inspiration from impactful event, research, experience, discussion I 2. brainstorm B 3. share idea/discuss idea S 4. start developing SD 5. bring idea to life I to L

10 characteristics of creative individuals

1. inspirational I 2. passionate P 3. open-minded OM 4. bold B 5. vulnerable V 6. perspective P 7. observant O 8. thoughtful T 9. motivated M 10. spontaneous S

why is Braintrust so different?

1. it is made up of people with a deep understanding of storytelling and people who have through the process before 2. the meetings have no authority

the 9 "intelligences"

1. linguistic (writers, lawyers) L 2. logical/mathematical (scientific, mathematical thinking) L 3. musical (performance, composition) M 4. bodily/kinesthetic (michael jordan, surgeon, craftsmen) B 5. spatial (sculptor, pilot) S 6. interpersonal (educators, salesperson, religious leaders) I 7. intrapersonal (sigmund freud, psychologist) I 8. naturalist (charles darwin) N 9. existential (philosophers) E

circles of constraints (3)

1. personal: find passion & overcome constraints P 2. social: fear of disapproval S 3. cultural: cultural thinking prevents you from finding your element C -these limit creativity & finding your element

a market universe is composed of two sorts of oceans

1. red ocean 2. blue ocean

4 actions framework

1. reduce 2. create 3. raise 4. eliminate

creativity is a consequence of

1. your intention to be creative 2. your determination to learn and use creative-thinking strategies

creativity & innovation

Theodore Levitt -creativity is THINKING of new ideas -innovation is DOING new things -creativity = ideas ; novelty -innovation = ideas & action ; novelty & value

cross stimulation

combining ideas

the creation of blue oceans is about

driving costs down WHILE driving value up for buyers

6 paths framework

blue ocean 1. industry: looks across alternative industries I 2. strategic group: looks across strategic groups within industry SG 3. buyer group: redefines the industry buyer group BG 4. scope of product/service offering: looks across to complementary product & service offerings SO 5. functional-emotional orientation: rethinks the functional-emotional orientation of industry FEO 6. time: shapes external trends over time T

innovation

is creativity and imagination applied in a business context (Jeffrey Immelt)

value-cost trade-off

it is believed that companies can either... - create greater value at a higher cost -create reasonable value at a lower cost traditionally, strategy is seen as making a choice between differentiation and low cost

associate with failure

negative: -frustration & shame -unaccomplished -not fulfilled -scared -step back -stressed positive: -chance to improve & look at big picture -wanting to try harder next time -knowledge

suspended judgement

no idea is too ridiculous

mind mapping

organization, key words, association

ikigar

reason for being

strategic move

the set of managerial ACTIONS and DECISIONS involved in making a major market-creating business offering