Psychology of Creativity - Topic Two PDF

Topic Two Creativity, Innovation, and Entrepreneurship 1 1 Creativity; Past, Present & Future… “How Can we Know Where We’re Going Without Knowing First Where We ‘ve Been?” 11/17/24 Psychology of Creativity - Topic Two 2 Creativity:...

Topic Two Creativity, Innovation, and Entrepreneurship 1 1 Creativity; Past, Present & Future… “How Can we Know Where We’re Going Without Knowing First Where We ‘ve Been?” 11/17/24 Psychology of Creativity - Topic Two 2 Creativity: What is it???…… “The ability to create and innovate has been observed throughout history and even though the fundamental tools may have changed the ability has been prevalent in every civilisation” (Hisrich, Peters and Shepherd, 2005, p. 8). “May our species be resurrected and awakened by the Spirit of Creativity for this coming century” (Fox, 2002). Psychology of Creativity - Topic Two 11/17/24 3 The Past……. “Throughout history, the process of creation whether; paintings or musical compositions were thought of as ‘spiritual experiences in the service of whatever muse held the artist in her thrall” (Thorsby, 2001, p. 95). “The artist was a channel for a superior power, creativity a gift from the gods, and the imagination a divine spark” (Thorsby, 2001, p. 94). A Gift from the Gods or a New Phenomenon? Or…Could Both Be True????...... Maybe? Natures Creation? or Human Creation Venoms & Poisons or Anaesthetics The Leaf or Solar Panel (energy from light) Brain or Computer/Electronic Circuitry DNA or Computer Program Ear Drum or Microphone Eye or Camera (lens, focus, iris, film) Eye Lid or Windshield Wiper Tears or Wiper Fluid Incisor Teeth or Knife Heart or Pump Spinal Chord/Nervous system or Communication/Telephone Cables Song Birds or Music Just look at how nature has inspired creativity and innovation…. The links between nature and nurture are apparent even in the simplest things! Creativity: Nature or Nurture? Let’s look at the field of music: If we want to be great musicians what do we need? A good “ear” – which may have some biological origin Talent – again, an innate trait. But also THEORY, STUDY, PRACTICE, PRACTICE, PRACTICE! If I am super-talented through natural chance, I may become a great pianist – but only if I study hard If I am not super-talented but I study hard, I may not be the greatest pianist in the world, but I can certainly become competent – and even make a living from it. Psychology of Creativity - Topic Two 11/17/24 6  Creativity: Nature or Nurture (2) If business creativity depends on nature, then only a few of us can operate in that sphere. Result – business grinds to a halt! Luckily, we know, from experience and from research that we can learn techniques which support creativity. So, we may not all be creative business gurus who come up with fabulous ideas while sitting in our armchairs BUT We can apply creative techniques and thinking processes which help us develop new ideas and keep our businesses flexible and successful. 11/17/24 Psychology of Creativity - Topic Two 7 Why is Creativity Important? All business sectors seek novelty Consumer products Media Fashion Travel Even seemingly conventional sectors respond to novelty, e.g. medicine seeks new formulations of existing drugs. Note that some novelty may be “better”, e.g. better medicine, some is simply a response to the desire for something new, e.g. fashion. So, a continual drive for novel developments suggests that creative thinking is key to success. 11/17/24 Psychology of Creativity - Topic Two 8 Creativity “There is no doubt that creativity is the most important human resource of all. Without creativity there would be no progress, and we would be forever repeating the same patterns” (Edward de Bono). Edward de Bono (2008), a theorist of creativity, noted that the process of creativity does not just happen in a flash of inspiration. Individuals, entrepreneurs, teams and business don’t just sit waiting for the “lightbulb moment”; instead, he argues that they approach their problem systematically. 11/17/24 Psychology of Creativity - Topic Two 9  Who is Creative? Are creative people born or made? Think back to your first year management studies and discussions of what constitutes an entrepreneur, and whether these skills can be learned. The literature suggests that creativity can be innate (you’re born with it), but can also be learned (you get better with practice). 11/17/24 Psychology of Creativity - Topic Two 10 Two views of Creativity There are two opposing views of creativity, suggested by Feldman 1999. Is it nature versus nurture? The Elite View V’s The Developmental View 11/17/24 Psychology of Creativity - Topic Two 11 The Elitist View… Getting New & Valuable Ideas A Rare Talent Creating Great Works of Art or Scientific Discoveries Unable to be Taught Not Relevant in My Job/ Organisation A Lonely Individual Process 11/17/24 Psychology of Creativity - Topic Two 12 The Developmental View… Available to Everyone Evident in Personal & Modest Insights Released Through Training & Development of Personal Potential Within the Scope of All Jobs Encouraged or Discouraged Within Groups According to their Climate Escape from ‘Personal Stuckness’ & Reveals Itself in Results Which are Original & Potentially Valuable 11/17/24 Psychology of Creativity - Topic Two 13  Which View Do You Agree With? 11/17/24 Psychology of Creativity - Topic Two 14 The Reality….. Creativity Is Not Exclusively for ‘Elite’ People It Can be Developed in All Persons Creativity is a Personal Problem-solving Process of a Non-routine Kind It Can be Learned, Practiced & Successfully Applied by all – in Every Walk of Life 11/17/24 Psychology of Creativity - Topic Two 15 Can We Learn Creativity? We can argue that although we might not be able to learn how to turn ourselves into creative people, we can learn how to think about business creatively. 11/17/24 Psychology of Creativity - Topic Two 16 The Role of the Brain 11/17/24 Psychology of Creativity - Topic Two 17 The Role of Brain Ultimately creativity is a process that we can all as humans tap into. Just look at the image above. According to the theory of left-brain or right-brain dominance, each side of the brain controls different types of thinking. Additionally, people are said to prefer one type of thinking over the other. For example, a person who is "left-brained" is often said to be more logical, analytical, and objective, while a person who is "right-brained" is said to be more intuitive, thoughtful, and subjective. 11/17/24 Psychology of Creativity - Topic Two 18 The Role of Brain In psychology, the theory is based on what is known as the lateralization of brain function. So does one side of the brain really control specific functions? Are people either left-brained or right-brained? Like many popular psychology myths, this one grew out of observations about the human brain that were then dramatically distorted and exaggerated. The right brain-left brain theory originated in the work of Roger W. Sperry, who was awarded the Nobel Prize in 1981. While studying the effects of epilepsy, Sperry discovered that cutting the corpus collosum (the structure that connects the two hemispheres of the brain) could reduce or eliminate seizures. 11/17/24 Psychology of Creativity - Topic Two 19 The Role of Brain Later research has shown that the brain is not nearly as dichotomous as once thought. For example, recent research has shown that abilities in subjects such as math are actually strongest when both halves of the brain work together. Today, neuroscientists know that the two sides of the brain work together to perform a wide variety of tasks and that the two hemispheres communicate through the corpus collosum. 11/17/24 Psychology of Creativity - Topic Two 20 The Role of Brain "No matter how lateralized the brain can get, though, the two sides still work together," science writer Carl Zimmer explained in an article for Discover magazine. "The popular psychology notion of a left brain and a right brain doesn’t capture their intimate working relationship. The left hemisphere specializes in picking out the sounds that form words and working out the syntax of the words, for example, but it does not have a monopoly on language processing. The right hemisphere is actually more sensitive to the emotional features of language, tuning in to the slow rhythms of speech that carry intonation and stress." In one study by researchers at the University of Utah, more 1,000 participants had their brains analyzed in order to determine if they preferred using one side over the other. The study revealed that while activity was sometimes higher in certain important regions, both sides of the brain were essentially equal in their activity on average. 11/17/24 Psychology of Creativity - Topic Two 21 The Role of Brain “It’s absolutely true that some brain functions occur in one or the other side of the brain. Language tends to be on the left, attention more on the right. But people don’t tend to have a stronger left- or right-sided brain network. It seems to be determined more connection by connection," explained the study's lead author Dr. Jeff Anderson. While the idea of right brain / left brain thinkers has been debunked, its popularity persists. So what exactly does this theory suggest? 11/17/24 Psychology of Creativity - Topic Two 22 The Role of Brain The Right Brain According to the left-brain, right-brain dominance theory, the right side of the brain is best at expressive and creative tasks. Some of the abilities that are popularly associated with the right side of the brain include: Recognizing faces Expressing emotions Music Reading emotions Color Images Intuition Creativity 11/17/24 Psychology of Creativity - Topic 23 Two The Role of Brain The Left Brain The left-side of the brain is considered to be adept at tasks that involve logic, language and analytical thinking. The left-brain is often described as being better at: Language Logic Critical thinking Numbers Reasoning 11/17/24 Psychology of Creativity - Topic Two 24 The Role of Brain The Uses of Right-Brain, Left-Brain Theory Researchers have demonstrated that right-brain/left-brain theory is a myth, yet its popularity persists. While often over-generalized and overstated by popular psychology and self-help texts, understanding your strengths and weaknesses in certain areas can help you develop better ways to learn and study. For example, students who have a difficult time following verbal instructions (often cited as a right-brain characteristic) might benefit from writing down directions and developing better organizational skills. 11/17/24 Psychology of Creativity - Topic Two 25 The Whole Brain: Universal Thinking Styles 11/17/24 Psychology of Creativity - Topic 26 Two The Whole Brain: Universal Thinking Styles The Whole Brain Model (shown above), is a metaphor for how we think, providing a useful framework to diagnose and describe the different types of thinking involved in any organization. It divides thinking into four quadrants, two on the “left brain” side and two on the “right brain” side. All four of the different thinking modes are in use and available to all of us, but we tend to prefer certain types over others. 11/17/24 Psychology of Creativity - Topic 27 Two  In what kinds of situations can Whole Brain Thinking be used? 11/17/24 Psychology of Creativity - Topic Enterprise Concepts and Issues © Goodfellow Publishers 2016 28 Two Decision Making Most decisions benefit from a thought process that includes the review of multiple options and perspectives. A typical example is the purchase of a car. Quadrant A thinkers look at information on the actual performance of the vehicle. Quadrant B thinkers read a consumer report to gather research on the reliability and practical features (trunk size, safety records, etc.) of the vehicle. Quadrant C thinkers test drive the car to see if it “feels” right. And Quadrant D focuses on the aesthetics, color, styling and innovations of each model. Using Whole Brain Thinking—the thinking of all quadrants— contributes to a better choice and avoids unpleasant surprises. Overlooking even one quadrant can result in a less than ideal outcome. 11/17/24 Psychology of Creativity - Topic 29 Two Problem Solving Every problem situation can benefit from a Quadrant A review of the data and facts, as well as an analysis of the real problem at hand; the Quadrant D “big-picture” context and possible creative ideas; Quadrant C viewpoint of the “customer” of the problem and how the problem affects others; and Quadrant B step-by-step process to solve the problem and implement the solution. 11/17/24 Psychology of Creativity - Topic 30 Two Improving team interactions and performance Most teams are formed to make the most of the differences among team members. But very often those differences stand in the way of the team living up to its potential. Whole Brain® Thinking can help a team to acknowledge the differences among team members and then use those differences to make the most of the ideas of each team member. In addition, once a team knows its preferences it can use that knowledge to enhance its communication with other teams and work groups which may have thinking preferences that are quite different. 11/17/24 Psychology of Creativity - Topic 31 Two Communication The objective of most communication is to convey an idea, transfer information or persuade someone. How many times have you experienced the frustration of delivering a message only to realize that the other person “just didn’t get it.” In order to communicate effectively, it's important to understand the “language” and mindset of the person(s) you are communicating with. A diagnosis of the thinking preferences of the audience can provide the critical planning information you need to tailor your language and presentation to the audience. When the audience's preferences are in doubt, taking a Whole Brain approach to communication ensures that you've covered all the “languages.” This reduces the possibility of miscommunication and improves the chance that your message will be successfully received by the audience. 11/17/24 Psychology of Creativity - Topic 32 Two Three Components of Creativity Domain Relevant Skills Creative Processes Intrinsic Task Motivation 11/17/24 Psychology of Creativity - Topic Two 33 Creativity “There is no doubt that creativity is the most important human resource of all. Without creativity there would be no progress, and we would be forever repeating the same patterns” (Edward de Bono). 11/17/24 Psychology of Creativity - Topic 34 Two De Bono’s But going back to De Bono’s statement. Creativity whether innate or cultivated is the most important of all human resources. He believed this so much so that he developed “The Six Thinking Hats” technique (1985, 1999) to aid this process. The basic premise is for an individual or project team to learn how to separate thinking into six clear functions and roles by “wearing one hat at a time” when considering a problem. Each role is identified with a symbolic "thinking hat" in a different colour. By mentally wearing and switching "hats," teams can easily focus or redirect their thoughts, conversation, or meeting. At any one time, everyone will wear the same colour of hat, or in other words, everyone will look at the problem at hand from only one perspective, which at any given time is the perspective indicated by the hat being worn (see Figure 1). 11/17/24 Psychology of Creativity - Topic 35 Two  De Bono’s creative process For De Bono the hats themselves represent the creative process of generating new knowledge, reflecting on the situation, generating ideas themselves then evaluating and implementing them. 1.Generating knowledge and awareness Reading, learning, researching, finding out about the world in general and the area in which you wish to operate 2.Incubation Time for reflection 3.Idea generation Using your own knowledge and creative thinking techniques e.g. brainstorming, to create ideas 4.Evaluation and Implementation Choosing your idea and making it work! 11/17/24 Psychology of Creativity - Topic 36 Two Edward De Bono: ‘Six’ Thinking Hats (1985) White Archives, Reports, Media, Articles, Books, Biographies, Images, Audio & Digital Media Red Does my Direction Feel Right? Could I be Looking in the Wrong Place? Asking the Wrong Questions? Black What Can I do Different? Is there Anything More to Look at? What are the Weaknesses? Yellow Why is it Worth it? For Whom is it of Interest? Why Can it Be Done? Because it Can…… Green Alternative Ways? New Methods or Tools? New Stance? New View of Your Original Stance? Figure 1 Blue What Has Been Done? What is Still to do? How to Proceed? Edward De Bono: ‘Six’ Thinking Hats (1985) As suggested above the basic premise is for an individual or project team to learn how to separate thinking into six clear functions and roles by “wearing one hat at a time” when considering a problem. Each role is identified with a symbolic "thinking hat" in a different colour. For example you can see in the slide each colour represents a different view point. From looking at new ways in the green hat to analysing data in the black hat. By mentally wearing and switching "hats," teams can easily focus or redirect their thoughts, conversation, or meeting. At any one time, everyone will wear the same colour of hat, or in other words, everyone will look at the problem at hand from only one perspective, which at any given time is the perspective indicated by the hat being worn. 11/17/24 Psychology of Creativity - Topic Two 38 The white hat is the current focus. Where are we now? Examination of all facts and figures. This is the feelings hat. Where teams discuss how they feel about the position or idea.  The black hat is logic. Is this the logical choice? 11/17/24 Psychology of Creativity - Topic 41 Two The yellow hat is judgment. Is this idea feasible? The green hat represents the possibilities. This is for new ideas or solutions.  The green hat represents the possibilities. This is for new ideas or solutions. 11/17/24 Psychology of Creativity - Topic Two 44 The Unique Blue Hat The blue hat is different from the other hats because it is involved with directing the thinking process itself We use the blue hat whenever we suggest the next hat to be used The blue hat need not be acknowledged at every turn however there are some points which it is often helpful: At the outset of a discussion – Lets decide what we want to think about and which hats we will use? At a midpoint to restate the thinking goal – I think we are getting away from what we wanted to talk about. Can someone recall what we decided to talk about? At the end to summarise what thinking has been done – Think of a sentence that tells about what we have been doing today? 11/17/24 Psychology of Creativity - Topic Two 45 Evaluation Sequence For example there are a number of ways to use the hats to consider problems or creative ideas…. To discover the positive aspects and negative aspects of an idea. You use the yellow hat (sunny optimism) before the black hat (caution). You could follow up with the green hat (new ideas) and red hat (emotion, feelings) thinking. Examples: Consider positive and negative  Not doing homework one night 11/17/24 Psychology of Creativity - Topic Two 46 Caution Sequence Looking critically at situations. You are first considering facts with the white hat. Then use the black hat to discover difficulties. This can be followed up with some blue hat or red hat thinking. Examples: consider the consequences  Not letting someone know where you are going. Psychology of Creativity - Topic Two 11/17/24 47 Design Sequence Creating: New ideas Products Improvements to existing designs. For this, we could use the blue (control), green (creative new ideas) and red (emotions, feelings) hats. 11/17/24 Psychology of Creativity - Topic Two 48 Other Sequences Red + White Comparing fact and opinion Black + Yellow + Green Comparing and synthesising (coming up with new ideas from the known) White + Blue What do we know (facts) and where are we going (planning) 11/17/24 Psychology of Creativity - Topic Two 49  Example: Creative Problem Solving Steps 1. Problem Definition I Used the Explorer Mindset To look at the Larger Issues Related to Entrepreneurship (Quadrant C and D thinking) Then to find the main issues of interest the detective mindset was used (using Quadrant A and B thinking) 2. Idea Generation Records, Prior In the second stage, brainstorming a multitude of Data Literature creative ideas using the imaginative, intuitive mindset Collection of an Artist (Quadrant C and D thinking) 3. Idea Synthesis In the creative idea evaluation phase, I try to obtain Is there more practical, solutions using the mindset Another Reflect of an engineer (Quadrants D and A thinking) Way? 4. Idea Judgement In the critical idea evaluation phase, I must determine which ideas And solutions are best, thinking like a Judge Who is Review (Quadrants A and B) it For? Methods 5. Solution Implementation Putting the solution into practice requires the mindset of the producer where the focus is primarily on carrying out the data collection within the research project (Quadrant B and C are especially important, but the whole brain must be used)  So What is Creativity? It can be anything…. While we often associate the term with artistic endeavour – writing, painting, making music. We can be creative in business life as well. “Creativity is… the ability or quality displayed when solving hitherto unsolved problems, when developing original and novel solutions to problems others have solved differently, or when developing original and novel… products” (Parkhurst, 1999). 11/17/24 Psychology of Creativity - Topic Two 51 What does this tell us about creativity? It tell us that: Creativity can be about developing new products BUT It can also be about developing new solutions. 11/17/24 Psychology of Creativity - Topic Two 52 Ideas Can Start with Solving Problems Solving “Points of Pain”: To Notice Inefficiency, Inconveniences, & Other Forms of “Points of Pain” & Use these to Build New Business Opportunities 11/17/24 Psychology of Creativity - Topic Two 53 Solutions? What do we mean by solutions? In this context, it could mean new processes to help us do something better new ways of using existing products new services to supply to new or existing customers etc. New ways of thinking about things! 11/17/24 Psychology of Creativity - Topic Two 54 Idea Generation Your Task: Generate as many ideas for a new product or service to improve student experience at HW as you can in 5 minutes 11/17/24 Psychology of Creativity - Topic 55 Two  So… If Creativity is Solving Problems… What Is An Innovation? 11/17/24 Psychology of Creativity - Topic 56 Two To Innovate…. According to the New Oxford Dictionary (2004, p. 942), innovation means to be able to: “Make changes in something established, especially by introducing new methods, ideas, or products”. According to the UK government, “innovation is the process by which new ideas are successfully exploited to create economic, social and environmental value” (BIS 2014, p.7). In the mid-twentieth century, economist Joseph Schumpeter (1950) pioneered the categorisation of innovation as the creation of something ‘new’ that creates and adds value for those who interact with, or consume, it. Something ‘new’ can also mean the updating of something which already exists in order to take advantage of a specific segment or a newly-identified or emerging market. 11/17/24 Psychology of Creativity - Topic Two 57 Schumpeter’s Innovator Schumpeter (1934) distinguished inventions from innovations and identified ‘Five Types of Innovation’ 11/17/24 Psychology of Creativity - Topic 58 Two Disruptive and Sustaining Innovations Christensen (1997), identified two types of innovations: disruptive innovations and sustaining innovations. The former, disruptive innovations involve a new value proposition by which new markets are created. In such instances, individuals or business organisations seize upon basic inventions and transform them into economic innovations, thereby disequilibrating and altering the existing market structure, then waiting until the process eventually settles down before the next wave of innovation begins. In contrast, the latter, sustaining innovations are best thought of as improvements to existing products, processes or markets. 11/17/24 Psychology of Creativity - Topic Two 59  What is innovation? “When an enterprise produces a good or service or uses a method or input that is new to it, it makes a technical change. The first company to make a given technical change is an innovator. Its action is innovation.” Schmookler (1966) “Innovation by definition must be successful in the market. “The test of innovation, after all, lies not in its novelty, its scientific content, or its cleverness. It lies in its success in the marketplace.” Drucker (1993) It is the creativity of an entrepreneur that results in invention [creation of new knowledge] and innovation [application of knowledge] to create new products, services or processes.  Department for Business, Innovation and Skills “Innovation is the process by which new ideas are successfully exploited to create economic, social and environmental value.” (BIS, 2014) What is Innovation? Degree of Newness: The reality is innovation is both about newness and Radical Innovation adding value. Incremental Innovation 11/17/24 Psychology of Creativity - Topic Two 62  Examples of Innovation Glass (3500 BC) Modern Public Library (1850-1945 depending on country) Electronic calculator (1961) Mobile phones (1973) World Wide Web / Internet (1989) Email (1993) What is A New Innovation? What do you define as new? Can mean different things to different people New to the world (10%) New to the firms (20%) Additions to existing products/process (26%) Improvement and revisions to existing products/process (26%) Repositioning (with different purposes) (7%) New to the market (geography + segments) New to the season Cost reduction (11%) (See; Booz, Allen & Hamilton, 1982; Griffin, 1997) 11/17/24 Psychology of Creativity - Topic Two 64 New Meaning, New Concept…. (1) 11/17/24 Psychology of Creativity - Topic Two 65 New Meaning, New Concept… (2) 11/17/24 Psychology of Creativity - Topic Two 66 Creative New meaning with New Innovation 11/17/24 Psychology of Creativity - Topic Two 67 Revolutionise Existing Concepts 11/17/24 Psychology of Creativity - Topic Two 68  Open versus Closed Innovation Closed Innovation Principles Open Innovation Principles Not all the smart people work for us, so owe must find Most of the smart people in our field work for us and tap into the knowledge and expertise of bright individuals outside our company To profit from R&D, we must discover, develop External R&D can create significant value; internal and ship ourselves R&D is needed to claim some portion of that value We don't have to originate the research in order to If we discover it, we will get it to market first profit from it Building a better business model is better than getting If we are the 1st to commercialise we will win to market first If we create the most and the best ideas in the If we make the best use of internal and external ideas, industry, we will win we will win We should control our intellectual property (IP) We should profit from others' use of our IP, and we so that our competitors don't profit from our should buy others' IP whenever it advances our own ideas business model  Open versus Closed Innovation The paradigm of closed innovation says that successful innovation requires control and ownership of the Intellectual property (IP). A company should control the creation and management of ideas. Roots of closed innovation go back to the beginning of the twentieth century when universities and governments were not involved in the commercial application of science. Some companies therefore decided to run their own research and development units. The entire new product development (NPD) cycle was then integrated within the company where innovation was performed in a "closed" and self-sufficient way. The central idea behind open innovation is that, in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (i.e. patents) from other companies. In addition, internal inventions not being used in a firm's business should be taken outside the company (e.g. through licensing, joint ventures or spin-offs). 11/17/24 Psychology of Creativity - Topic Two 70 Open versus Closed Innovation Under the concept of innovation that prevailed during most of the 20th century, companies attained competitive advantage by funding large research laboratories that developed technologies that formed the basis of new products that commanded high profit margins that then could be ploughed back into research. The closed innovation paradigm has eroded due to the following factors: Increased mobility of skilled workers Expansion of venture capital External options for unused technologies Increased availability of highly-capable outsourcing partners  Closed Innovation (Chesbrough, 2003) 11/17/24 Psychology of Creativity - Topic 72 Two  Closed Innovation The greatest example of a Closed Innovation Model is the company at 1 Infinite Loop, Cupertino. Working behind veils of secrecy and the occasional ‘strategic leak’ , Apple has delivered some of the greatest products in the technology industry. The proponents of open innovation model do agree that Apple ‘s success lies in an innovation model that is ‘Closed’ yet conducive for openness. The single maniacal direction enforced by Steve Jobs and the radical internalisation of all branches of product development had brought out coherent products. They have managed to avoid ‘featuritis’ plaguing many ‘Open’ products 11/17/24 Psychology of Creativity - Topic Two 73  Open Innovation (Chesbrough, 2003) 11/17/24 Psychology of Creativity - Topic 74 Two  Open Innovation The greatest proponents of Open Innovation P&G,IBM are some of the examples of this nature of relationship. Advantages: Open innovation offers several benefits to companies operating on a program of global collaboration: Reduced cost of conducting research and development Potential for improvement in development productivity Incorporation of customers early in the development process Increase in accuracy for market research and customer targeting Potential for viral marketing 11/17/24 Psychology of Creativity - Topic 75 Two  Open Innovation Implementing a model of open innovation is naturally associated with a number of risk and challenges, including: Possibility of revealing information not intended for sharing Potential for the hosting organisation to lose their competitive advantage as a consequence of revealing intellectual property Increased complexity of controlling innovation and regulating how contributors affect a project Devising a means to properly identify and incorporate external innovation Realigning innovation strategies to extend beyond the firm in order to maximise the return from external innovation 11/17/24 Psychology of Creativity - Topic Two 76 Not all Innovations are Successful… Innovation = Invention + Commercialization 11/17/24 Psychology of Creativity - Topic 77 Two Neither are All Fashion Trends 11/17/24 Psychology of Creativity - Topic 78 Two Really!?!? 11/17/24 Psychology of Creativity - Topic 79 Two  Innovation = Invention + Commercialization Are all Innovations Opportunities? 11/17/24 Psychology of Creativity - Topic 80 Two Opposing Views… We can therefore see that there is a difference between the commonly held definitions of “Creativity and Opportunity” and the definitions used in a business context. We may think that creativity is related to artistic or cerebral activity and opportunity is a matter of chance. Business management theory suggests that in a commercial context, creativity can be learned or developed and that it need not relate to complete novelty; opportunity can be created or developed. 11/17/24 Psychology of Creativity - Topic Two 81  What’s an Opportunity? “An opportunity has the qualities of being attractive, desirable and timely and is anchored in a product or service which creates value for buyer or end user” A new or improved product A new service A new means of production A new way of distributing the product or service An improved service New combinations Or a hybrid of the above 11/17/24 Psychology of Creativity - Topic Two 82 Recognising an Opportunity Opportunities are not like raindrops – they do not fall at our feet. Well, not usually! From time to time something might just happen which allows an entrepreneur to move forward. However, if we wait for an opportunity to turn up, we will probably never succeed. As creative business people we seek or develop opportunities. 11/17/24 Psychology of Creativity - Topic Two 83 So… Do Ideas = Opportunities? Do Problems = Opportunities? Reality - An Idea is Only an Opportunity when It: Adds Value to Consumer It Solves a Problem It Can Make Some Money ( Communicate Some Value to Other Stakeholders) It is a Good “Fit” with the Entrepreneurial Team Timmons& Spinelli (2007) 11/17/24 Psychology of Creativity - Topic 84 Two Factors Influencing the Creation/Discovery of Opportunities 11/17/24 Psychology of Creativity - Topic Two 85 Factors Influencing the Creation/Discovery of Opportunities However there are numerous factors which determine whether the idea itself is an opportunity or can be exploited. Demand and supply characteristics will play a role, economy and societal factors will also play a role. But in terms of the competencies of the individual exploring the idea as a possible opportunity this also need to be accounted for. 11/17/24 Psychology of Creativity - Topic 86 Two  Drucker’s Opportunity Scan Drucker suggests that the opportunity to be creative happens both externally and internally. Internal External 1. The unexpected - can we react to 1. Changes in demographics – age, change? income, health, etc. 2. Incongruity – can we cope with the 2. Changes in perception, mood, difference between what we meaning - can we react to thought would happen and what changes in fashion, culture, actually happened? This could attitudes. create an opportunity. 3. New knowledge – science and 3. Inadequacy in underlying industry affect our products and processes – can exiting processes processes. and procedures be improved? 4. Changes in our industry or our market – can we respond positively? 11/17/24 Psychology of Creativity - Topic Two 87  Creative Invention Vs Innovative Opportunity High STRUGGLER INNOVATOR Creative Invention STAGNATOR COPIER Low Low Innovative High Opportunity Perception 11/17/24 Psychology of Creativity - Topic Two 88 Creative Invention Vs. Innovative Opportunity The reality is that for an idea to be creative and to be turned into an innovative opportunity then there has to be the perception that this is creative. If the invention is not creative yet there is the opportunity space then the idea is perhaps copying an existing idea. If the idea is deemed to creative and no one can see the potential opportunity then the idea will struggle to become an innovation. Therefore there has to be a combination of both high creativity as well as a high perception of that creative invention as an opportunity. 11/17/24 Psychology of Creativity - Topic Two 89  Creativity and Commerce So, think of creativity in terms of ways of thinking which support commercial opportunities, whether in developing new processes, services or products. 11/17/24 Psychology of Creativity - Topic Two 90 Example: Rise of Levi’s Problem: Working Clothes for Mining Workers do Not Last Solution: First Pair of Jeans 11/17/24 Psychology of Creativity - Topic Two 91 Ideas Start With Solving Problems Remember… Ideas Start With Solving Problems Any Problems are Big Opportunities. No Problems, No Solutions, & No Reasons for Firms to Exist. No One Pays You to Solve a Non-exist Problem (Vinod Khosla, Sun Microsystems) 11/17/24 Psychology of Creativity - Topic Two 92 “Solving Problems” Take care with this use of the word “problem”… The normal use of this word might suggest that there is something wrong In a business context, we might use the word simply to represent something which makes the customer’s activities less efficient/enjoyable/simple So, a “problem” might be something quite trivial, everyday or simple – however, by providing a cost effective solution, we please our customer and make money Examples Velcro – a simple alternative to the shoelace. A keyring that beeps – you can find your keys anywhere in the room Goretex – water resistant jackets. 11/17/24 Psychology of Creativity - Topic Two 93 Attributes of Creative Thinking Flexibility – willing to look at an issue from many angles, not set in our ways. Originality – attempts to find non-typical responses to problems. Non-judgemental – not rejecting a potential solution without giving it appropriate consideration. 11/17/24 Psychology of Creativity - Topic Two 94  Creativity, Invention, Opportunity & Entrepreneurship ENTREPRENEURIAL ENVIRONMENT INVENTION Ability to be Ability to spot CREATIVE OPPORTUNITIES INNOVATION SUCCESS 11/17/24 Psychology of Creativity - Topic Two 95  Creating Creativity Creative Individuals don’t just sit waiting for the “lightbulb moment” They approach a problem systematically 11/17/24 Psychology of Creativity - Topic Two 96 Stages in Creative Thought Preparation Incubation Insight Evaluation Elaboration 11/17/24 Psychology of Creativity - Topic Two 97 What Stops Business Creativity? Barriers are understandable, but nevertheless can prevent or slow the development of new ideas: Fear – change is always frightening. Risk – am I risking my established business? Convention – we’ve always done it this way. Self-doubt – if it’s that good, surely somebody else would have made it by now? Fear of failure 11/17/24 Psychology of Creativity - Topic Two 98 Readings Chesbrough, H. (2003) Open Innovation, Harvard University Press: Cambridge, MA. Fagerberg, Jan, Fosaas, Morten, & Sapprasert, Koson. (2012). Innovation: Exploring the knowledge base. Research Policy, 41(7), 1132-1153. Fillis, I. (2002) An Andalusian Dog or a Rising Star? Creativity and the Marketing/Entreprenseurship Interface. Journal of Marketing Research, 18(1), 379-395. Rothwell, R. (1994). Towards the fifth generation innovation process. International Marketing Review, 11 (7-31). 11/17/24 Psychology of Creativity - Topic 99 Two