Entrepreneurship

Entrepreneurship Delivered in: Islamia University Bahawalpur Presented By: Tasawar Javed

Creative thinking • Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world (Albert Einstein) • Creativity is the power to connect the seemingly unconnected (willaim plomer)

Inside the entrepreneurial mind: From Ideas to Reality • Creativity: • The ability to develop new ideas and to discover new ways of looking at problems and opportunities • Thinking new things • Innovation: • Is the ability to apply creative solutions to problems and opportunities to enhance or to enrich people’s lives • Doing new things

Innovation: • Mintzberg describes innovation as “the means to break away from established patterns, doing things really differently”. • According to a professor at Kenan Flagler Business School, the University of North Carolina, innovation is: • An important tool for a company’s survival today • There is no incremental innovation, it is just innovation and it is a radical • It is beyond invention • Innovation should meet customers’ expected as well as unexpected needs • Is not complexity • Better if innovation fits in with customers’ lives other than having customers • adjusting their lives to innovation • It is not just a company’s R&D domain, but it is a philosophy that should be imbibed in the company’s culture (Malhotra, A., 2006)

Innovation: • Dosi defines innovation as, “ the search for, the discovery, experimentation, development, imitation and adoption of new products, new processes and new organizational set-ups. It is a social process that transforms ideas or inventions into successful market products and services.” It covers a wide range of ideas: • * New or improved products: First transistor • * New production methods: Henry Ford • * New distribution channels: Amazon • * New forms of business organizations: Franchising • (Innovation Examples, 2007)

Did you know? • When do you think the credit card was invented? • The credit card was used in Babylon and Egypt 3000 years ago. Bill of exchange was established in the 14th Century. Paper money followed only in the 17th Century. • From the 18th Century until the early part of the 20th Century, tallymen sold clothes for small weekly payments. They were called, “tallymen” because they kept a record or tally of what people bought on a wooden stick. On one side was marked with notches to represent the amount of debt and the other side was to record payments. • In 1950 Diners Club and American Express launched their charge cards in the USA, the first plastic money. • In 1951, Diners club issued the first credit card to 200 customers. Magnetic strips on the card were introduced in the 1960s. (didyouknow, 2007, online)

Sources of innovation: • The seven sources of opportunity & innovation • With in the firm: • The unexpected • The incongruity • The inadequacy • The changes in industry or market structure • The outside world • Demographic changes • Changes in perception, mood and meaning • New knowledge

Creative Thinking • Human brain has two parts left and right • Left brain is guided by linear, vertical thinking (from one logical conclusion to the next) • Right brain relies on kaleidoscopic, lateral thinking (considering a problem from all sides & jumping into it at different points). • The left brain handles language, logic, and symbols; right brain takes care of the body’s emotional, intuitive, and spatial functions • Left brain processes information in a step-by-step fashion, but the right processes it intuitively-all at once, relying heavily on images

Creative Thinking • Those who have learned to develop their right brained thinking skills • Always ask the questions “Is there a better way?” • Challenge custom, routine, and tradition • Be reflective, often staring out window, deep in thought (how many traditional managers would stifle creativity by snapping these people out of their “day dreaming”) • Be prolific thinkers. Generate lot of ideas, likelihood of coming up with a few highly creative ideas. • Play mental games, trying to see an issue from different perspective • Realize that there may be more than one right answer • See problems as springboards of new ideas • Relate seemingly unrelated ideas to a problem to generate innovative solutions

Barriers to Creative • Those who have learned to develop their right brained thinking skills • Searching for the one “right” answer • Focusing on “being logical” • Blindly following the rules • Constantly being practical • Viewing play as frivolous (playful) • Becoming overly specialized • Avoiding ambiguity • Fearing looking foolish • Fearing mistakes and failure • Believing that “I am not creative”

The Creative Process • Steps in the creative process • Preparation • Investigation • Transformation • Incubation • Boring phase, nothing happens, it occurs while the individual is away from the problem, often engaging in some totally unrelated activity • Illumination • Verification • implementation

The Creative Process • Convergent Thinking • The ability to see similarities and the connections among various data and events • Divergent Thinking • The Ability to see the difference among various data and events

Ten “Secrets” for leading Creative • They think • They are visionaries • The listen to customers • They understand how to manage ideas • They are people centered • They maintain a culture of “change” • They maximize team synergy, balance, and focus • They hold themselves and others accountable for extremely high standards of performance • They refuse to take “no” for an answer • They love what they do and have fun doing it

Types of innovation

Types of Innovation:

Types of Innovation Traditional classification of innovation • Incremental innovations • Radical innovations • General purpose innovations

Entrepreneurship and innovation • Need of entrepreneurial activity to exploit opportunities • Innovation contribute to growth of the economy because entrepreneurs produce innovation (Schumpeter, 1934) • Entrepreneurship is about innovation • Innovation requires three basics components : • Infrastructure • Capital • Entrepreneurial capacity (Herbig et al., 1994) • People who lead teams and organisations to introduce innovation are entrepreneurs (Legge and Hindle, 1997)

Bottom line!!! • Entrepreneurship and innovation are closely related to each other and are complementary • Corporate entrepreneurship = The effort of promoting innovation in an uncertain environment • Entrepreneurial behaviour can add significant value to the organisation (compétitive advantage) • Entrepreneurship and innovation should be regarded as an ongoing everyday practice

Thank You!!!! • Q&A

Entrepreneurship