CHAPTER 2

INSIDE THE ENTERPRENEURIAL MIND: IDEAS TO REALITY

Creativity:

It is the ability to develop new ideas and to discover new way of looking at problems
and opportunities,”

Innovation.

“It is the ability to apply creative solutions to those problems and opportunities to
enhance and enrich people’s lives”.

Intrapreneurs

Entrepreneurs who operate within the framework of an existing

business.Intrapreneurship can also be defined as innovative corporate management
strategy that encourages employs within an organization to create new product
ideas. If employee’s ideas are approved, management will finance research and
development of the product while sharing an equitable partnership arrangement with
the employee. Intrapreneurship scheme allows and encourages entrepreneurial
activities within the corporation or institution. Intrapreneurship is often associated
with larger companies that have taken notice of the rise in entrepreneurial activity in
recent years; these firms endeavor to create an environment wherein creative
employees can pursue new ways of doing things and new product ideas within the
context of the corporation.
TYPES OF INNOVATION

There are four types of innovation

1. INVENTION
Its involves creating a totally new product, process or services. It is more radical
where there is high market uncertainty, technical uncertainty, organization
uncertainty and resources uncertainty. Example of new product invention is aero
planes by Wright Brothers and light bulbs by Thomas.

2. EXTENSION
Here is the introduction stage of different application or new use of existing
products, process or service. For example. Apple IPod is a new breed of mobile
music that replaces the walkman and laptop extends the use of computer to
make it mobile. Sometimes it involves incremental improvement to the product
design such as the addition of new features to increase its performance.

3. DUPLICATION
Duplication is the process of creative replication of an existing concept. For
example, a 24 hours convenience mart such as 7-Eleven has been duplicated by
other using the same concept.

4. SYNTHESIS
Synthesis is where the combination of existing concepts or factors into new
formulation, combination or use. For example, now a mobile phone with
additional functions can work as a camera and make a video calls.
SOURCES OF INNOVATION

There are seven sources of innovation which are as follow:

The unexpected: Innovations can take place unexpectedly. They can happen by

chance. Someone might just stumble upon a new idea or product. There is a long list
of unexpected innovations in human history. Even fire is considered an unexpected
innovation that humans stumbled upon.

Incongruities: When the need is incongruent with the supply, innovation might be

born. In an attempt to resolve the existing incongruities people might innovate. For
example as the population of cars grew there was a shortage of parking area. In an
attempt to solve the incongruity between parking area and parking shortage, the
smart car was born.

Market structure: An existing market structure can also give rise to chances for
innovation. This is how Google was born. Google shaped the search engine market.
Before Google the search engines were not as perfect and Google brought all of it in
order. There was so much information scattered over the World Wide Web. 

Necessity: Necessity is the mother of invention but it is also the mother of

innovation. Let us say Microscope. It was born out of the need to delve deeper into
the microbial world. Needs always set us thinking. Innovation is based upon bright
ideas. the human mind thinks of new things that can better fulfill an existing need. In
this process he thinks of filling his needs in new ways and by devising new products
and mechanisms.

Demographics: Our lifestyles can also be a source of innovation. We all have our
lifestyle needs. For example we feel the need to smoke. However, since smoking is
dangerous, we made e-cigarettes to satisfy the urge. Lifestyle needs are not small
needs and their fulfillment and important requirement for us. This is where
innovators sometimes find major opportunities.

Changing perception: Changing perception regarding things can also give birth to
innovation. Earlier, the overweight people were seen as healthier than the leaner
ones. However, the social perception of healthy has undergone a big change where
fat people are seen as obese and unhealthy. People feel the need to remain leaner
and healthier. Based upon this changed perception, a flood of healthy and low
calorie foods came to the market.

New knowledge: New knowledge can also be a source of innovation. Whether it is

nano-technology, biotechnology or even artificial intelligence, new knowledge in any
area is a source of innovation. The science keeps progressing. Every year new
areas are discovered and much gets added to the existing base of human
knowledge. This new knowledge paves way for innovations that can sometimes be
life changing. 
 Stages gate of Process of Innovation
Stages gate process:

The Stages Gate process is a patented trademark of Dr. Robert Cooper. The model
focuses on the innovation process and is also referred to as the waterfall process.
It is a project management technique, in which an initiative or project takes place,
divided over several stages. These stages are separated by so-called ‘gates’; the
decision points for whether or not to proceed to the next stage. This model can be
used when developing new products, process changes or improvements.

Stages

The Stage Gate process consists of a number of stages, which are connected to each
other by gates. Each stage is designed to collect specific information:

 Stage 0: discovery
 Stage 1: scoping
 Stage 2: business plan concept
 Stage 3: development
 Stage 4: testing and validation
 Stage 5: launch and implementation

Stage 0: discovery

This initial preparatory stage determines which project a company wants and is able to
carry out. Ideas can be generated in brainstorming sessions. Employees are not the
only ones involved in this part. Customers and suppliers also provide useful information.
An idea is first selected and then proposed. If the idea is not worth the effort, the gate
closes here.

Stage 1: scoping

This stage is all about evaluating the product and the associated market. What are the
product’s strengths and weaknesses and what can it bring to the user/consumer in
terms of added value? This stage takes all the possible threats from competitors into
account. Based on the assessed threat, production will or will not continue. The greater
the threat, the greater the chance that the gate will close .
Stage 2: business plan concept

Now that the product is impervious to competition, a business plan is drawn up. This is
the last stage of concept development and is crucial before the starting with
development of the actual product. This stage is very labor-intensive and includes sub-
stages that need to be completed:

Stage 3: development

During this stage, the plans from the previous steps are carried out and simple tests are
conducted. For example, at this stage customers can be asked what they think of the
product. The development team also creates a timeline with specific milestones that
have to be achieved. This timeline can be revised and updated regularly. It also
incorporates multi-functional teamwork; different departments provide input with expert
advice. This ultimately results in a product prototype, which will be extensively tested
during the next stage. The gate will remain closed if the product has not been
sufficiently developed.

Stage 4: testing and validation

This stage covers product testing and validation. They also look at the manufacturing
process and how the product is accepted by customers and the market. This also
means that a number of sub-stages are completed during this stage:

Stage 5: launch and implementation

The marketing strategy comes into play during this stage in the Stage Gate process.
The product is ready to be launched, which will include a fair amount of hype, by means
of for instance an advertising campaign, free publicity (press releases) and interviews.
An estimate is made about the quantity that will be sold. Policies regarding production,
inventory and distribution must be set up. The sales team is predominantly responsible
for ensuring a smooth process.
THE CREATIVE PROCESS
Although creative ideas may appear to strike as suddenly as a bolt of lightning, they
are actually the result of the creative process, which are involves seven steps:

1. PREPARATION
This step involves getting the mind creative thinking. Preparation might include a
formal education, on the job training, work experience and other learning
opportunities.
2. INVESTIGATION

This step requires one to develop a solid understanding of the problem, situation
and decision at hand. To create new ideas and concept in a particular field, an
individual first must study the problem and understand its basic components.

3. TRANSFORMATION
Its involves viewing the similarities and the differences among the information
collected. This phase required two types of thinking: convergent and divergent.
Convergent thinking is the ability to see the similarities and the connection
among various and often diverse data and events. While divergent thinking is the
ability to see the differences among various data and events.
4. INCUBATION
In this stage, an individual will immerse oneself by allowing the subconscious
mind to ponder on the information gathered. In this phase, the individual may not
be directly involved in the creative task. Incubation may be induced by engaging
in relaxing activities such as painting or playing sports etc.
5. ILLUMINATION
This phase of the creative process occurs at some point during the incubation
stage when a spontaneous breaks through causes “the light bulb to go on”.
In the illumination process, all the previous stages come together to produce the
Eureka factor-“the creation of creative idea”.
6. VERIFICATION
For entrepreneurs. Validating an idea as realistic and useful may include
conducting experiments, running simulations, test marketing a product and
services, establishing small scale pilot programs and many other activities
designed to verify that the idea will work and is practical to implement.

7. IMPLEMENTATION
The focus of this stage is to transform the idea into reality. Plenty of people come
up with creative ideas for promising new products or services, but most never
take them beyond the idea stage.
INTELLECTUAL PROPERTY RIGHT
Intangible property that is the result of creativity. Intellectual property rights are the
rights given to persons over the creations of their minds. They usually give the creator
an exclusive right over the use of his/her creation for a certain period of time.

Intellectual property protection isn’t as simple as declaring ownership of a particular

product or asset. In most countries, there are four primary types of intellectual property
(IP) that can be legally protected: patents, trademarks, copyrights, and trade secrets.
Each has their own attributes, requirements and costs.
 1. PATENT
Used to protect inventive ideas or processes – things that are new, useful and no
obvious - patents are what most often come to mind when thinking of IP protection.
Patents are also used to protect newly engineered plant species or strains, as well.

PROCEDURE

For most of the companies, patent result from the following stages:

Conceptualization, innovation teams work to address a common problem facing their

organization, industry, or the world at large when developing their idea. When they’ve
arrived at a solution or concept, they’ll draw up plans and gather the resources
necessary to make it a reality.

Invention disclosure, The reviewers assess, rate, rank, score, and highlight potential
flaws in the supporting documents and descriptions for the invention, which are then
addressed by the inventor. These reviews can and often do take place multiple times for
a single invention.

Patent application, A patent application is a request pending at a patent office for the

grant of a patent for an invention described in the patent specification.

Maintenance, Once a patent is approved, it has a finite lifetime. Patent holders are
responsible for maintaining and tracking the usage of their patents and paying the
appropriate periodic government renewal fees.

Cost
Costs will vary depending on the country or countries where you file an application, and
can run into tens of thousands of dollars depending on the invention’s complexity, plus
attorney fees. Maintenance fees over the lifetime of the patent can run into thousands
more per patent, per country where patent rights have been granted.

2. TRADEMARK
A trademark is unlike a patent in that it protects words, phrases, symbols, sounds,
smells and color schemes. Trademarks are often considered assets that describe or
otherwise identify the source of underlying products or services that a company
provides, such as the MGM lion roar, the Home Depot orange color scheme, the Intel
Inside logo, and so on.

Procedure
 Trademarks do not necessarily require government approval to be in effect; they
can apply through abundant use in interstate commerce. Still, registration of a
trademark affords far superior protection and is gained by filing an application with the
proper government office.

Costs

Trademarks are generally quite less expensive to obtain. According to the US Patent
and Trademark Office, trademark registration currently costs between $225 and $325
for each class code you use per mark. Attorney and search fees are extra.

3. COPYRIGHT
Copyrights do not protect ideas, but rather the manner in which ideas are expressed
(“original works of authorship”) - written works, art, music, architectural drawings, or
even programming code for software (most evident nowadays in video game
entertainment). With certain exceptions, copyrights allow the owner of the protected
materials to control reproduction, performance, new versioning or adaptations, public
performance  and distribution of the works.

PROCEDURE
Copyright registration applications are much simpler than patents or trademarks, and
typically can be obtained by the author alone. The US Copyright Office encourages use
of their online application system, and requires a sample of the work to be protected
and some background information about the author.

COST
Depending on the type of work being protected, currently fees vary between $25-$100
in the US. The most frequent copyright registration sought is for one work by one
author, and costs about $35.

4. TRADE SECRET
Trade secrets are proprietary procedures, systems, devices, formulas, strategies or
other information that is confidential and exclusive to the company using them. They act
as competitive advantages for the business.

PROCEDURE
There actually isn’t a federally-regulated registration process for trade secrets. Instead,
the onus is on the company in possession of the secret to take necessary precautions
to maintain it as such. This is an ongoing, proactive process and can include clearly
marking relevant documents as “Confidential,” implementing physical and data security
measures, keeping logs of visitors and restricting access.

Costs
Though there are no official registration costs, there are costs associated with taking
appropriate precautions and security measures. You must weigh the competitive
significance of your secrets against the cost of protecting them.