[SOUND] Now, we're going to define innovation and entrepreneurship, and I'll start

with the premise that innovation and entrepreneurship are clearly not the same.
Let's look at some definitions, shall we? I'm going to ask you to define in your
own
words innovation and entrepreneurship. Take out a piece of paper or open a window
on your computer,
think about what they mean to you. Deconstruct the words
a little bit as well. If you're within a group, have
a conversation with some of your friends, and write down your definitions and try
to do each of those in 15 words or less. All right, we're going to move on, I'm
going to share all
my definitions with you. My definitions for innovation,
developing a new solution or new way of doing something that
drives differentiation versus the existing offerings versus your
competitors and creates measurable value. For me, adding that value is
a crucial element of innovation, otherwise, it's just an idea. So you're looking
for those key
elements when it comes to innovation. Secondly, entrepreneurship,
entrepreneurs pursue opportunities, often, but not always,
based on innovation, without regard to the resources directly
and currently controlled by them. Now a lot of entrepreneurs, and let's think about
folks
like Steve Jobs at Apple or Bill Gates at Microsoft or
Elon Musk, first at PayPal and now at Tesla and SpaceX, or
Mark Zuckerberg at Facebook. Pick your favorite entrepreneur, focus on things with
major
innovation attached to them. But many entrepreneurs don't. Think about
entrepreneurs that
may open new businesses and take risks around concepts that
may not be quite that innovative. It could be a bakery, or a restaurant,
or a shoe-repair shop, or any one of many other businesses,
like a retail location. But nonetheless, these entrepreneurs are
taking risks and pursuing opportunities. Now, how about the relationships between
innovation and entrepreneurship? What I'd like you to do, this time,
you do need a piece of paper. I'd like you to grab a piece of paper, and
I'd like you to think about innovation, entrepreneurship, and
let's add inventions and ideas. And think about the relationships
between those particular concepts. And I'd like to have you draw them out. And it
could be Venn diagrams,
it could be an iterative process. It could be any one of
a number of different sets of relationships between these concepts. And of course,
they don't all have to be the same size. This is going to take a little more time,
so why don't you take two minutes or so? And then come back, and
I'm going to share my answers, at least, my approach to this, okay? So to begin
with,
ideas are the biggest element. We all have many ideas, and every day,
we say, wouldn't it be great if, or have you thought about that? So we're going to
start with
ideas existing in space. Now within ideas, some of those ideas have
the potential to turn into innovation. So, innovation is going to
overlap a lot with new ideas, and it may also overlap a little bit
with the existing environment as well. And then third, we have invention, some
inventions are explicitly
related to an innovation. Others may just be a different way,
as something else that you might do that may not meet the requirements in many ways
of an innovation that we've defined, but still is a new invention, a new device,
a new way of doing something. And then fourth, we have entrepreneurship. And
entrepreneurship is the act of
taking these ideas, innovations, inventions, and
turning them into new businesses, new business concepts and
executing against that. And as I shared, not every entrepreneur
deals with new innovations, sometimes they will launch a business based on
some existing business, like a bakery. But in many cases, they are around
new inventions, like Tesla, or new innovations, like Google has
done in their approach to search. Now, how did you do? I've done this particular
example with
students dozens, probably hundreds, of times, and many times,
I'll have overlapping shapes like this. Sometimes I may have a funnel
that starts with ideas and ends up with entrepreneurship. Other times,
I'll have an iterative process. All of those are different ways, different models
that you might think about how
these particular concepts are related. Well, as the great entrepreneur and
innovator, Walt Disney, once said, the way to get started
is to quit talking and begin doing.