Creativity and Idea Generation

Subject Entrepreneurship
Segment Sources of Opportunity

Topic Creativity and Idea Generation
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Table of Contents
1. Overview
2. The Role of Creativity in Entrepreneurship
3. The Concept of Creativity
4. Types of Creative Behaviour
5. Creativity and the Resource-based Theory
6. Creativity Techniques
7. Creativity and You
8. Group Creativity
9. Creativity at Blitz and Zuma SunCare
10. Self-Assessment
11. Summary
1. Overview
"There is one thing stronger than all the armies in the world, and that is an idea
whose time has come".
Victor Hugo
Entrepreneurship is all about turning innovative ideas and opportunities into
successful businesses. As many entrepreneurs discover, one of the hardest things in
starting a new venture is to find the best ideas.
Is generating business ideas easy?
Ideas evolve; they do not arrive by themselves. An entrepreneur has to think of an
idea to make it a commercial success. This often becomes a roadblock for the
budding entrepreneur. Creativity is a key character trait that drives
entrepreneurship.
In this topic, you will read about some techniques to unlock the creative capacity
that each individual possesses. It is important to explore these techniques and
identify opportunities for innovation.
We will begin with examining the sources of opportunity as put forward by Peter
Drucker. You will also read about creativity and types of creative behaviour. We will
also join James Chew as he identifies his personal creative style. Finally, we will wind
up the topic by analysing the creative techniques that the Blitz team employed to set
up their business.
Objectives: Creativity and Idea Generation
Upon completion of this topic, you should be able to:
 examine the sources of opportunity in the macro-environment
 explore the relationship between creativity and sustainable competitive
advantage
 examine the types of creative behaviour in relation with entrepreneurship
 explore individual and group creativity techniques to discover your creative
potential
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2. The Role of Creativity in Entrepreneurship

The famous management and entrepreneurship guru Peter Drucker views innovation
as the specific tool of the entrepreneur. Drucker believes that a combination of
systematic environmental analysis and creativity could lead businesses and
entrepreneurs to find new opportunities for innovation in entrepreneurship. Drucker
has detailed the following seven sources of ideas for new businesses in his book,
Innovation and Entrepreneurship (New York: Harper and Row, 1985).
 The Unexpected
 Incongruities
 Process needs
 Industry/Market Structure
 Demographics
 Changes in perception
 New Knowledge
Let's review these seven sources of opportunites in an environment in the
presentation below.
Sources of Opportunity
The Unexpected: An outside event, an unexpected success or failure may lead to
an opportunity.
The Incongruous: When there is a difference between the reality and what people
expect or believe, it can give room for innovating.
The Process Need: When there is a need in a process, but people, companies or
researchers go around it, there is an opportunity for a company which can address it
or fix it.
Changes in Industry/Market Structures: When there is a shift in the market or
industry conditions, there is room for business opportunities.
Demographics: A change in the characteristics of a population (size, income,
education and etc) may create opportunities.
Changes in perception, mood or meaning: When the set of core beliefs of a
group or population change, new business opportunities are also created.
New Knowledge: The creation of new knowledge, scientific, technological, or of any
other nature, can create innovation opportunities for businesses.
You learned about Peter Drucker's sources of opportunity. Now, let us review a few
examples to test your understanding of the seven sources. You will now read about
some examples of products, services or opportunities related to each of Drucker's
seven sources of opportunity.
Let's revisit Drucker's seven sources of opportunity. They are:
1. The Unexpected
2. Incongruities
3. Process needs

4. Industry or Market Structure

5. Demographics
6. Changes in perception
7. New Knowledge
Now, review the following examples. As each example is described, identify the
source of opportunity that best describes the example.
1. With the slogan, you press the button, we do the rest, George Eastman in
1888 put the first simple camera into the hands of a world of consumers. In
so doing, he made what had been a cumbersome and complicated process
easy to use and accessible to nearly everyone.
2. The invention of the diesel engine in 1897 powered pipelines, electric and
water plants, automobiles and trucks and marine crafts.
3. Toyota, the Japanese car manufacturer, benefited from the timing of the
Korean War. The United States feared communism would spread, and Toyota
received an order for 1,500 trucks a month.
4. A religious organisation that ordinarily opposes gambling supported it in this
case. The game of bingo was originally played in America during the
Depression as a way for churches to raise money for the poor. Bingo was first
legalised in the 1950's in the cities of New York and New Jersey, and today
takes in more than three billion dollars a year.
5. People's opinion about healthcare is changing. In the recent years, there is a
distinct emphasis on nutrition, functional food and indoor gyms.
6. Between 1946 and 1964, the US experienced an exceptionally high rate of
birth that we have since come to call the Baby Boom. This had a tremendous
effect on the sales of everything, from toys to parent child travel tours.
7. In the early 1900s, the US auto industry saw high growth, which created
tremendous pressure in the market. GM started to serve all consumer
segments and launched a number of new models.
Now that you have reviewed the examples, let us find out whether you identified the
correct source of opportunity for each example. Let us begin with the first example.
1. With the slogan, you press the button, we do the rest, George Eastman in
1888 put the first simple camera into the hands of a world of consumers. In
so doing, he made what had been a cumbersome and complicated process
easy to use and accessible to nearly everyone. This example illustrates the
source of opportunity, the process needs. Innovation based on process needs
occurs when technicians need a way to get from point A to point B. Eastman
Kodak and Bell's automatic switchboards are few such examples.
2. The invention of the diesel engine in 1897 powered pipelines, electric and
water plants, automobiles and trucks and marine crafts. This example
illustrates the source of opportunity, New Knowledge. New knowledge is often
seen as the superstar of entrepreneurship. However, it has the longest lead
time because there is another long period before the new technology turns
into products, processes or service in the market place. The invention of the
diesel engine and computer are such examples.
3. Toyota, the Japanese car manufacturer, benefited from the timing of the
Korean War. The United States feared communism would spread, and Toyota
received an order for 1,500 trucks a month. This example illustrates the
source of opportunity, the unexpected. At times, current businesses are
surprised by an unexpected event, which can provide a business opportunity.
A war often changes the economics and demand structure worldwide.
4. A religious organisation that ordinarily opposes gambling supported it in this
case. The game of bingo was originally played in America during the

Depression as a way for churches to raise money for the poor. Bingo was first
legalised in the 1950's in the cities of New York and New Jersey, and today
takes in more than three billion dollars a year. This example illustrates the
source of opportunity, the incongruous. Internal incongruity within the logic of
a process also leads to a business opportunity. Incongruity creates dissonance
and instability and leads to a business opportunity.
5. People's opinion about healthcare is changing. In the recent years, there is a
distinct emphasis on nutrition, functional food and indoor gyms. This example
illustrates the source of opportunity, changes in perception. Changes in
perceptions, mood and meaning can also lead to business opportunity. For
example, changing perceptions about health has led to a boom in the fitness
industry.
6. Between 1946 and 1964, the US experienced an exceptionally high rate of
birth that we have since come to call the Baby Boom. This had a tremendous
effect on the sales of everything from toys to parent child travel tours. This
example illustrates the source of opportunity, demographics. Demographic
changes, such as baby boom and movement of young educted women into
work force, also lead to opportunities in business.
7. In the early 1900s, the US auto industry saw high growth, which created
tremendous pressure in the market. GM started to serve all consumer
segments and launched a number of new models. This example illustrates the
source of opportunity, industry and market structures. Rapid growth of an
industry is also a major opportunity for innovation. Existing organisations
have to attune themselves to the changes in the industry and create products
to address the demand.
What did you learn from this interactive exercise? Let us do a quick recap.
1. At times, current businesses are surprised by an unexpected event, which can
provide a business opportunity.
2. Internal incongruity within the logic of a process also leads to a business
opportunity.
3. Innovation based on process needs occurs when technicians need a way to
get from point A to point B. Eastman Kodak and Bell's automatic switchboards
are few such examples.
4. Rapid growth of an industry is also a major opportunity for innovation.
5. Demographic changes, such as baby boom and movement of young educated
women into work force, also lead to opportunities in business.
6. Changes in perceptions, mood and meaning can also lead to business
opportunity. For example, changing perceptions about health has led to a
boom in the fitness industry.
7. Finally, new knowledge is often seen as the superstar of entrepreneurship.
However, it has the longest lead time because there is another long period
before the new technology turns into products, processes or service in the
market place. The invention of the diesel engine and computer are such
examples.

3. The Concept of Creativity

You read about Drucker's sources of opportunity. How can you use Drucker's sources
of change to generate ideas?
You can do this by combining environmental scanning with creativity techniques.
After you read and work through the following sections on creativity, it will be time
to generate some business ideas for your projects. However, let us first review the
notion of creativity.
What is creativity?
Creativity can be described as the initiation of a product or process that is useful,
correct, appropriate and valuable to a task, where that task is heuristic rather than
algorithmic.
What is the difference between heuristic and algorithmic?
Difference Between Heuristic and Algorithmic
Heuristic Algorithm
A heuristic is an incomplete guideline or In contrast, an algorithm is a mechanical

rule of thumb that can lead to set of rules. It is a preset plan of
understanding, learning or discovery. operations for problem solving, decision-
making and conflict resolution.
You can compare it with a fuzzy map in

which you know where you are and Flipping a coin is an algorithm because
where you are going, but the roads are the number of sides of the coin and the
not completely drawn. indicators of head and tails pre-
determine the outcomes once the coin is
Heuristics serve to stimulate the person tossed in the air.
to learn more, similar to determining
how to get from A to B on a blurry,
indistinct road map.
However, a better question than What is creativity? is Where is creativity?

Creativity occurs at the dynamic intersection of following three forces:
1. The individual, with his or her intelligence, experience and dispositions

2. The domain of knowledge, within which the particular individual has chosen
to work
3. The field or social context, within which the merits of the work or product
produced are evaluated and judged

Let us explore these three forces in detail.
Forces of Creativity
You learned that creativity occurs at the dynamic intersection of three forces, namely
the individual, the domain of knowledge, and the field or the social context. Let us
review each of these in detail.
Individual
You are now quite familiar with the first force, that of the individual. Some of the
attributes of creative people discussed in the literature on creativity are curiosity,
openness to new experiences, tolerance of ambiguity, independence of judgment,
sensitivity to problems, flexibility and originality.
One of the better ways to think of individual tendencies is through the Kirton Adaptor
Innovator theory or KAI. The KAI postulates that everyone is creative in either one of
two ways. Some people are good at figuring out how to do things better. This is an
improvement approach to creativity. People who can do things better find ways to
incrementally change what is already in existence. In contrast, people who are good
at the do things differently approach are creative in finding new and novel solutions
to problems. However, research has found that this trait approach is insufficient,
and, therefore we need to consider other variables.
Domain of knowledge
The domain of knowledge of the individual also plays an important role. Here,
domains of knowledge refer to arts, such as music or painting, sciences, such as
computer science or biology, or a business area, such as finance, marketing, product
development or a new venture.
People can only be creative if they are prepared to be creative. This means they
must have some understanding of a knowledge base and some skills at manipulating
this base. It is also true that one can know too much about a domain of knowledge
and uncritically accept all of its forms, premises, assumption and values. Such an
individual might have a difficult time producing divergent thinking, which is a good
source of creative, unconventional business ideas.
Field or social context
The last force is the field or social context. For an idea or product to be judged
creative, as opposed to simply crazy or weird, it must be judged valuable and
meritorious. Who does the judging? In the case of fine art, critics, curators and
experts judge the work of art. In the case of business related creativity, the
organisation, and inevitably, the market judge the value. If the product sells, it is
creative, if it does not, it is not. This sort of retrospective evaluation is part of the
paradox of creativity. If there were rules that you could formulate a priori, you would
have developed an algorithm and its product could no longer be considered creative.

4. Types of Creative Behaviour
"An
entrepreneur is not necessarily concerned with breaking new ground; opportunity
can also be found in a new mix of old ideas or in the creative application of
traditional approaches".
Stevenson (1999)
There are three types of entrepreneurial creativity: Creation, Synthesis and
Modification. Let us review them in the presentation below.
Types of Entrepreneurial Creativity

Creation
Creation can be described as the act of pure invention. It is similar to making
something out of nothing.
A writer creates characters, plot and action on a blank page. For example, Beethoven
created symphonies from scratch.
We usually think this type of creativity to be the only type of creativity. We tend to
believe that creativity is a gift from the gods and is available to a select group
because we associate creativity with heroic efforts and classic works of art and
science.
However, the other types of creativity are just as important and within the reach of
mere mortals.
Synthesis
Synthesis is the creative act of joining two previously unrelated things. It is bringing
together the telephone with the computer, or a theory of evolutionary biology with
economics. Synthesis is the creativity we find in humour, when two incongruous
elements combine to make something appear funny. Synthesis can have a major
impact on a market or a product, such as when the Japanese combined methods of
statistical quality control and systems thinking in the manufacture of automobiles.
The synthesis of direct selling methods into the cosmetics industry created Avon. In
addition, the synthesis of the computer with the concept of small and personal led to
the creation of the Apple Computer.
In retrospect, all successful creative acts seem logical and predictable through the
historical lens because they work. However, at the time of the creative act and the
birth of the creative product, there is no way to judge the value of any particular
outcome.
Modification
Another type of creativity is modification. Modification occurs when a thing or a
process gains a new application through improvement. A modification can be quite
small, such as a change in design, a new floor plan for an office or a new way to
solder electrical connections along an assembly line. Clearly, no heroic acts are
needed for a modification, and, therefore creativity is within the reach of all people,
and is, in fact, a natural part of all human experience.

Analogy is another type or a special case of modification. Analogy can be described

as the creative act of seeing how one thing is similar to another. At times, an action
or product, which was originally designed for one purpose, can be used for other
purposes also. For example, a common screw is also a propeller. A television
commercial is like a little movie, and so is a music video. There are many instances
of one industry borrowing a practice or product from another and putting it to
effective use. The people who think of these transfers do so by making an analogy,
that is, they see how the problem they face is like a problem that was faced by
others in the past.
5. Creativity and the Resource-based Theory

What are the links between creative entrepreneurship and sustainable competitive
advantage?
Creative ideas are based on imagination. As a result, they are rare and intuitive,
hard to duplicate and cannot be easily substituted with expert systems and artificial
intelligence. Creativity has always been of interest to researchers and practitioners in
the field of new venture creation. This is not because it is magical and metaphysical,
but because you can derive economic advantage from creativity.
The requirement that creative behaviour be of value, as opposed to simply weird, is
clearly in line with the resource-based model. A creative act is not valuable in and of
itself unless it is appropriate to the situation. Here, the situation is the creation of a
new product or process. Therefore, the creative act must contribute to the new
venture's objectives of gaining revenues or lowering costs. This includes all the
nuances and permutations that can be included in the firm's revenue and cost
functions.
All humans possess creative abilities to some extent - the evidence is in our dreams.
However, creativity is rare in organisations because certain factors suppress creative
thinking, creative behaviour and the implementation of creative programs and
processes. You can use a force-field analysis that pits the repressors of creativity
against the enhancers of creativity. Organisations that want to foster creativity can
refer to the force-field analysis.
FORCES ENHANCING AND REPRESSING CREATIVITY
Enhancing forces include the following:

1. Open, decentralised organisational structure
2. Supportive culture
3. Encourage experimental attitudes
4. Reward success, tolerate failure
5. Promote champions
6. Make resources available
7. Loosen deadlines
8. Delegate responsibility
Repressing forces include the following:
1. Closed, centralised organisational structure
2. Defensive culture
3. Discourage experimental attitudes

4. Punish failure, no incentive

5. Suppress positive role models
6. Stick to present budgets
7. Enforce time pressure
8. Emphasise authority
As the figure illustrates, the barriers to innovation and creativity in large

organisations are quite real. As you can see, the repressing side has a decided big
business slant to it. Inventors and entrepreneurs need long time horizons, flexibility,
incentives and motivation to succeed. In large organisations, the forces against
creativity may be so strong that separate business units may be required.
Creativity represents one of the most important resource advantages because it is
quite difficult to duplicate. Its elusive nature has stumped philosophers and
entrepreneurs since the beginning of time. Attempts have been made to stimulate
the creative impulse, from meditation techniques to computer simulations.
Entrepreneurs should not only covet and encourage creative impulses in themselves,
but also engender a culture that transforms creative energy into economically, as
opposed to psychologically, rewarding forms.
6. Creativity Techniques
An individual can learn to be more creative by understanding the process of
creativity and mastering a few simple techniques. Both individuals and groups can
apply techniques to solve problems that require creative solutions. The key to using
these techniques is to overcome linear thinking and the traditional linkages between
things and events. Instead, the emphasis is on lateral thinking, which encourages
divergent production by challenging concepts, perceptions and assumptions and
provoking incongruity.
(De Bono, E. Serious Creativity. New York: Harper & Row 1992.)
We will now explore some creativity techniques that help an individual think of a
creative solution to a problem in the presentation below.
Creativity Techniques
Creativity techniques include the creative pause, focus, challenge, alternatives
provocation, and mind mapping.
Creative pause
It is impossible to force a creative solution. However, you can make an effort.
The creative pause is a deliberate interruption in the routine flow of work to
concentrate on a point or process. The point or the process does not matter.
In addition, there could be no particular reason for that pause at that time. However,
it is a technique that makes the person aware that they are doing something routine
and question why are they doing it a particular way, or if they should be doing it at
all.

Focus
Simple focus is paying attention and concentrating.
It does not require that there be a problem to solve. It simply involves questioning
the linear thinking embedded in any routine.
The target of the focus can be an object, a process or a policy. Specific focus has a
defined target, such as looking for new ideas to serve customers or generating
creative ways to reduce cost of handling materials.
Although the specific focus technique requires the user to have knowledge of the
domain, it is not dependent upon increasing the amount of knowledge. Instead, it
depends on using the knowledge in new ways.
Challenge
The creative challenge questions why something is done a certain way, and if there
are other ways of doing it.
It challenges the historical and traditional processes.
It is not meant to be an exercise in criticism. A challenge can be made to something
that works quite well, but looks for something better.
The creative challenge does not accept that there is one best way to do anything or
that the current way is the optimal way.
Alternatives
Generating alternatives is the most basic among creative responses. However, we
usually engage in this exercise only when we feel a need or a problem.
Creative alternatives can be generated at any time and to do anything, even when
there is no crisis. Creating alternatives is a two stage process, which involves,
1. Discovering alternatives that are already available because there is no sense
reinventing the wheel
2. Designing new alternatives or ways to do things
The first stage is information gathering, but the second is a creative exercise.
Provocation
Creative provocations are thought experiments.
Deliberate provocations force the person to consider incongruities, discontinuities
and seemingly impossible events and situations.
The key is the child like question, What if and working backwards from there to
determine the implications of the question.
Einstein once asked, What if I could ride on a beam of light. What would I see? and
from this thought experiment derived the conditions of relativity.
Mind mapping
This technique works through mental and linguistic associations.
It enables the user to break through the wall of rationality surrounding a proposition.
A multi stage process, mind mapping starts with a clear statement that is related to
the problem in search of a creative approach. Free association follows as a map of

free associations is generated and some arbitrary limit is reached. Next, the map is
studied while looking for patterns, novelties and interesting insights.
The systematic use of these techniques ensures that a creative effort is made.
However, you cannot guarantee that creation, synthesis or modification that
possesses the four attributes of sustainable competitive advantage emerges from the
process.
7. Creativity and You

You can use an easy four-part model to think about the way creative thought and
action is turned into a business. Each of the elements of the model begins with the
letter "I" so this is termed the Four-I model. The following are the four parts of the
model:
1. Imagination: The creative act of originality
2. Incubation: The period of time when between the time the entrepreneur gets
the idea and the time when the breakthrough is discovered
3. Illumination: The event where the entrepreneur sees how the idea can be
turned into a profitable business
4. Implementation: The transformation of the idea and concept into a physical
reality
Let us join James Chew, a budding entrepreneur, to find out how creativity plays a
role in new venture creation.
James Chew
James Chew is an aspiring entrepreneur. From a chance meeting with Sabrina
Thompson, a legendary entrepreneur who started VignetteHides, a handbag retail
chain thirty years ago. He has learned that to be truly entrepreneurial, one needs to
be:
 achievement-driven
 self-reliant
 risk-tolerant
 a doer
 ready to take on challenges
In addition, an individual is driven by the following social factors to become an
entrepreneur:
 negative displacement
 being between things
 positive pull
 positive push
Disclaimer: The companies, individuals and events referred to herein are fictional.
Any similarity to actual companies, individuals and events is purely coincidental.
James is now ready to become an entrepreneur, but how does he begin with the
process? Let us join our characters James and Sabrina as they take their discussion
forward.

James says, Hello Sabrina! Thanks for meeting me at such a short notice. I hope I'm
not becoming an annoyance.
Sabrina says, On the contrary, I'm quite impressed with the way you're following up
your decision to become an entrepreneur.
James says, Our discussion at the airport was very informative, but I still feel I'm not
on firm ground. I need some help to decide on the business idea I need to
implement.
Sabrina says, Before you start with the business idea, it would be a good idea to
think of a creative business idea.
James says, Yes, I believe creativity is always a hot commodity in setting up a new
business venture.
Sabrina says, True! Creative thinking could lead entrepreneurs to find new
opportunities for entrepreneurship and innovation. But, please remember that
everyone is creative in some way. Some people are good at figuring out how to do
things better and others do things differently. You need to find out whether you are
an innovator or an adaptor.
Sabrina says, Along with James, discover whether your characteristics resemble
those of an innovator or an adaptor. Let us review some statements about
entrepreneurial personality. Identify the statements that best describe you to know
your style of creativity.
Let us begin with the first list of traits. Think of the traits that apply to you.
1. I am often characterised as precise, reliable, efficient, methodical and
disciplined.
2. I try to resolve problems and seek solutions in tried and understood ways.
3. I continuously try to reduce problems by improvement and greater efficiency.
4. I am often liable to making goals of means.
5. I consider myself sound, conforming, safe and dependable.
6. I am rarely bored and face no problems maintaining a routine with high
accuracy.
7. I rarely challenge rules unless I am assured of support.
8. I am sensitive to people and always try to maintain group cohesion and
cooperation.
Now that you have reviewed the list of traits, let us explore how these traits relate to
your creative personality.
The traits mentioned above have a distinct resemblance to those of an adaptor. An
adaptor often does things better while solving problems and making decisions. When
collaborating with innovators, adaptors supply stability and order. They provide a
safe base for the innovator's riskier operations. The value add of adaptors is highest
in the mature industries.
Now, carefully listen to the second list of traits. Identify the traits that apply to you.
1. I often think tangentially and approach tasks from unsuspected angles.
2. I frequently discover problems and discover avenues of solution.
3. I cannot solve problems unless I query and manipulate the associated
assumptions of the problem.
4. While pursuing goals, I seldom follow the accepted means.
5. I tend to take control in unstructured situations.
6. I manage to do detailed work only for short bursts and often delegate routine

tasks.
7. I often challenge rules and seldom follow customs.
8. I don't much care for the views of the group and am often seen as abrasive
as I create dissonance in the group.
Now, what do these traits tell you about your creative personality?
The traits mentioned above have a distinct resemblance to those of an innovator.
Innovators often do things differently while solving problems and making decisions.
In the institution, innovators are ideal in unscheduled crises. When collaborating with
adaptors, they supply task orientations and continuity to the partnership. They
provide the dynamics to bring about periodic radical change, without which
institutions tend to become rigid. The value add of innovators is highest in the
emerging industries.
How does the dialogue between James and Sabrina continue? Let us join our main
characters as they keep on with their conversation.
James says, Does this mean that people differ in terms of their preferred style of
creativity?
Sabrina says, Exactly! Eminent British psychologist, Dr. Michael Kirton, developed
the theory of Adaptation Innovation. The theory states that people are different in
terms of the cognitive style, in which they are creative, solve problems and make
decisions.
James says, How can this theory help me set up my new venture?
Sabrina says, Well, you should assess the styles of all the people who join your
team. While adaptors and innovators complement each other, there might be some
conflict due to differences in style. You need to be careful about that.
James says, Sabrina, a basic assumption that most people make is that creativity
depends almost exclusively on a person's level of inborn talent for doing what they're
doing. Is that true?
Sabrina says, Of course, talent is an important aspect of creativity, but it's just one
aspect. There are three basic workings of creativity. The first two are relatively
straightforward, expertise in a chosen domain, and creative thinking skills. The third
component, and the one with the greatest implications for business environments, is
task motivation.
Let's learn a little more about each element of creativity.
Domain related skills
Expertise is among the most important factors while thinking of creative ideas for a
new venture. Talent, skill, training and experience in your chosen domain of work
play a very important role. But, that's not all that we consider.
Creativity relevant skills
We also need to think about creative thinking skills. Does the person show evidence
of imagination? Does the person know what it means to work very hard and
persevere to solve problems?
Task motivation
People are going to be more creative when they're passionate about what they're
doing, when they feel personally involved in it, excited about it and when they have

a deep level of enjoyment of the domain. Even though at any one moment they
might not feel like they're having fun because it's really hard work, they still have a
deep level of attachment to their work. This is called intrinsic motivation.
James says, Are all these elements necessary for creative idea generation?
Sabrina says, The easiest of the three components to change is task motivation.
Domain and creativity skills take longer to develop. Find out where your skills and
talents lie, and then look for your creativity intersection.
James says, Creative intersection. I am a little unclear about what it means. Could
you explain?
Sabrina says, You need to look for those activities where your talents and your
strongest intrinsic motivations come together. Think about all three of the creativity
components in selecting people and assigning them to projects.
James says, I think I have a few personal take away points from this interaction. To
ensure an organisational culture that explicitly values creativity and innovation, the
following guidelines can prove useful,
1. We should set up work groups so that people will stimulate each other and
learn from each other, so that they're not homogenous in terms of their
backgrounds and training. We want people who can really cross fertilise each
other's ideas.
2. Assignments to projects can make a big difference, too. People should work
on that they're going to find appropriately challenging not so far out of their
skill range that they just can't do anything, but certainly something that's
going to get them to operate at the top of their skill level, allowing them to
really stretch and grow. That level of challenge is very important for intrinsic
motivation.
3. The overall company atmosphere should be open to creativity, from the
highest levels. We must strive for a collaborative atmosphere where people
are continually sharing ideas and helping each other with their work, rather
than competing with each other.
8. Group Creativity
At times, instead of a single individual, a group of people need to work on a creative
task. The Six Thinking Hats (Edward de Bono, 1985) is one such group technique
that incorporates a framework for creative thinking.
The six hats represent six modes of thinking and are directions to think instead of
labels for thinking. Each member of the group is assigned a role in a discussion, and
the roles can rotate as required. Each role is designated as a hat, and each hat is
identified with a colour. The thinking approach of the role bearers is proactive rather
than reactive.
Let us explore the type of thinking that is used by each hat in the presentation
below.

The Six Thinking Hats

Let us explore the description of the type of thinking that is used by each hat. This
will help you participate in a discussion case on the Six Thinking Hats method.
White hat
White hat thinking is neutral and carries information and data. The person wearing
the white hat is non judgemental and emphasises the amount, nature and availability
of data.
Red hat
Red hat thinking deals with intuition, hunches and emotions. It is the gut feeling that
one has about a situation. People are reluctant to share their emotions unless given
permission by this role.
Black hat
Black hat thinking is judgemental. It is critical and its role is to avoid errors, illegal
behaviour and non feasible solutions. Do not overuse the black hat because nothing
kills creativity faster than judgement and negative feedback, but sometimes it is
necessary to avoid a major mistake.
Yellow hat
Yellow hat thinking is optimistic and logically positive. It tries to see the good side of
any suggestion or situation and searches for benefits and possibilities. It is less
natural than the black hat and needs to be encouraged.
Green hat
Green hat thinking is developmental and growth oriented. It searches for new ideas
by being provocative and asking for alternatives. The green hat asks directly for
creative effort from other members.
Blue hat
Blue hat thinking deals with organising and controlling the thinking process. The blue
hat sets the agenda, the procedures the group will follow, assigns the roles and asks
for comments. The blue hat then summarises the conclusions. Usually, the
chairperson wears the blue hat, but anyone can offer suggestions to the blue hat.
Reading: Ordinary People, Extraordinary Creativity

In this article, you will read about ordinary people who were able to develop creative
behaviours, innovate and become successful.
Fenn, D. and Jonn C., " Ordinary People, Extraordinary Creativity", Inc. vol. 24 issue
10 (Oct 2002): 83
As you review the article, reflect on the following questions.
 Do you see differences on creativity between the different innovator’s stories
presented?
 What, according to you, are the main characteristics of creative people?

9. Creativity at Blitz and Zuma SunCare
You have learned that creativity could be a source of sustainable competitive

advantage for an entrepreneur. Now, let us analyse the Blitz case and the unique,
creative ideas incorporated in this venture.
Reading: Creative Ideas at Blitz and Zuma SunCare
You have reviewed the Blitz case and categorised Blitz's opportunity recognition
process. You have also analysed the resources available to the team and reviewed
the competitive analysis that the team performed.
Based on your reading of the Blitz case, reflect on the following questions.
 What is unique and creative about the Blitz suntan lotion?
 What, in your opinion, is the distinctive factor of the Blitz marketing plan and
market segmentation?
 Can you think of the next creative step that the team could take to
consolidate their venture?
You will read about a number of examples of creative outcomes in the Blitz case.
First, there is the idea for a two-chamber package. There are no two-chamber
packages on the market now. In this relation, the product is both better than a one-
chamber package and different from the other products available in the market.
Moreover, the team did employ some creative ways to think about the market and
the different market segments. The Blitz team did not just envision a single,
homogeneous market. Their research and mapping techniques led to a different
conclusion. Now, they have to be creative about the leadership of the company and
decide whether to bring a new person in as CEO because of their own lack of
experience. This would be an example of divergent thinking because most
entrepreneurs would be very hesitant to bring an outsider in to take charge.
10. Self-Assessment
Now, try the self-assessment questions to test your understanding of the topic. Click
the following link to open the Self-Assessment in a new window.
Self-Assessment
Q1. Which of the following is not one of Drucker's sources of innovation and
entrepreneurship?
1. The unexpected event
2. The incongruous situation
3. New knowledge
4. Patents and copyrights
5. A process need
Q2. Which of the following are the critical styles that the KAI theory postulates for
creative behaviour?
1. Algorithms and heuristics
2. Logistics and supply chains
3. Doing things better and doing things differently
4. Divergent and lateral thinking
5. Imagination and incubation

11. Summary
This topic covered the following points:
 A combination of systematic environmental analysis and creativity results in
new opportunities for innovation in entrepreneurship. The sources of
opportunity in our environment are:
o The unexpected
o Incongruities
o Process needs
o Industry/Market structure
o Demographics
o Changes in perception
o New knowledge
 Creativity is not just an individual trait, but also a function of the domain of
knowledge and the work environment.
 Creativity is an important capability for the entrepreneur and can be a source
of sustainable competitive advantage.
 Entrepreneurs and the entrepreneurial teams can learn various creative
techniques to generate creative ideas and solutions.
Credits and Disclaimer
Microsoft is a registered trademark of Microsoft Corporation in the United States and/or other countries.
Netscape and Navigator are registered trademarks of Netscape Communications Corporation.

Creativity and Idea Generation

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Creativity and Idea Generation

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Subject Entrepreneurship

Segment Sources of Opportunity

Copyright © 2015, GlobalNxt University. All rights reserved. 1 of 17

2. The Role of Creativity in Entrepreneurship

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4. Industry or Market Structure

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3. The Concept of Creativity

A heuristic is an incomplete guideline or In contrast, an algorithm is a mechanical

You can compare it with a fuzzy map in

However, a better question than What is creativity? is Where is creativity?

1. The individual, with his or her intelligence, experience and dispositions

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Let us explore these three forces in detail.

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4. Types of Creative Behaviour

Types of Entrepreneurial Creativity

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Analogy is another type or a special case of modification. Analogy can be described

5. Creativity and the Resource-based Theory

Enhancing forces include the following:

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4. Punish failure, no incentive

As the figure illustrates, the barriers to innovation and creativity in large

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7. Creativity and You

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The Six Thinking Hats

Reading: Ordinary People, Extraordinary Creativity

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9. Creativity at Blitz and Zuma SunCare

You have learned that creativity could be a source of sustainable competitive

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