Learning Objectives

1. Learning Objectives • Understand the nature of entrepreneurial opportunity through discovery and creation. • Discuss creativity, its challenges, and how to develop creative skills. • Explain problem solving as it relates to creativity and entrepreneurship. • Understand types of innovation and the innovation process. “The Three P's” Steve Case - AOL, Revolution

2. Creativity: What It Means • Enables entrepreneurs to differentiate their businesses from competitors • Is the basis for invention • Is fundamental to problem solving • Is a critical skill for recognizing or creating opportunity in a dynamic environment

3. Creativity Themes Figure 3.1 “Recognizing Opportunity in the Rain” David Friedberg-The Climate Corporation Source: Adapted from Isaksen, S.G., Stein, M.I., Hills, D.A. & Grayskiewicz, S.S. (1984). “A Proposed Model for the Formulation of Creativity Research,” Journal of Creative Behavior, 18: 67–75.

4. Creativity: What It Means (cont’d) Four stage creative process: • Preparation: looking at a problem from a variety of perspectives • Incubation: letting the problem lie in the subconscious for a time • Illumination: the discovery of a solution • Verification: bringing the idea to an outcome “Combine and Share Ideas” Kevin Systrom, Mike Krieger-Instagram

5. Creativity: What It Means (cont’d) • Challenges to Creativity • No time for creativity • No confidence

6. Creativity: What It Means (cont’d) • Developing Creative Skills • Design an environment to stimulate creativity • Log ideas • Put the familiar into a new context • Take advantage of a personal network • Return to childhood

7. Creativity: What It Means (cont’d) • Creativity and Problem Solving • Define the problem • Generate ideas for sources of the problem and potential solutions • Other techniques include brainwriting • Getting ideas down on paper and then organizing ideas and creating themes “Opportunities in Sensors and Smart Devices” Chi-Hua Chien KPCB venture capitalist , Spotify Co Founder Daniel Ek

8. Focus on Problem Definition • Focus on Problem Definition • Use affirmative judgment • Use a set of predefined criteria • Effective problem statement contains certain criteria. Please list:

9. Developing Solutions • Use same techniques used to generate and focus ideas • Criteria plays critical role in solution identification “Are You Building Products Customer Want ? ” Jessica Mah, Co-founder of inDinero

10. Innovation • Joseph Schumpeter identified five categories of innovation: • A new product or substantial change in an existing product • A new process • A new market • New sources of supply • Changes in industrial organization “Space Stadium”

11. Innovation and Commercialization Process Figure 3.4

12. New Venture Action Plan… And In Class Exercise • Create Your Own Personal Creativity Action Plan. • Practice generating ideas and problems using the techniques provided in the chapter • NOW…In Class Exercise with Your Ideas… • The Exercise -“Developing Creative Skills.” (making connections with your ideas) • Instructions on next PowerPoint ** The video shows tremendous creativity >> “Matching Your Product to Customers” Bespoke Innovations Co-Founder Scott Summit

13. In Class Exercise Instructions From Your Homework (the Discussion Posting) – • Each person selects 1 of their ideas/innovations… • Form Groups of 3…(3 ideas per group) • Each person passes an idea to the left…(and so on) • Each person adds something to extend the idea • You should end up with 3 ideas, each with 2 extenders • Then, select the best idea of the group and present • Don’t take to long…avoid analysis paralysis • Don’t be shy, think out of the box and think big Let Begin…Form Groups Please…