Innovation, Ideation, Concept Generation and Evaluation Flashcards
is central to the domain of entrepreneurship
opportunity identification
At its core entrepreneurship revolves around the questions of why, when, and how opportunities for the creation of goods and services in the future arise in an economy. Thus, opportunity recognition is the progenitor of both personal and societal wealth”.
True or False?
True
It has been argued that understanding the opportunity ________process is one of the primary challenges of entrepreneurship.
identification
signal shifts in the current paradigm (or thinking) of the major population.
trends
aging demographics, health and fitness growth, senior living, COVID-19 pandemic
what kind of trend
social trend
mobile technology, e-commerce, Internet advances
what kind of trend
technology trends
higher disposable incomes, dual wage-earner families, performance pressures
what kind of trend
economic trends
increased regulations, petroleum prices, terrorism
what kind of trend
government trend
Successes or failures that, because they were unanticipated or unplanned, often prove to be major sources of innovation.
unexpected occurences
exist in the gap between expectations and reality. For example: when Fred Smith proposed overnight mail delivery, he was told, “If it were profitable, the US Post Office would be doing it.” It turned out Smith was right.
incogruities
Venture capitalists often refer to _________ in the marketplace as “pain” and to innovative solutions to those needs as “pain killers.” When the need is to do something better, innovative new medical devices, healthier food, more effective medicines, and time-saving devices can be the result.
process needs
Continual market shifts in the marketplace caused by changes in consumer attitudes, advancement in technology, and growth in the structure, design, or definition of markets or industries are sources of emerging opportunity.
industry and market changes
Changes in population size, age, education, occupation, geographic locality, and similar demographic variables often catalyze new entrepreneurial opportunities.
demographic change
in people’s interpretation of facts and concepts may be intangible but meaningful. The perceived need to be healthy and physically fit has created a demand for both health foods and health facilities throughout the country.
perceptual changes
Inventions, which are products of new thinking, new methods, and new knowledge, often require the longest time period between initiation and market implementation because of the need for testing and modification.
knowledge-based concepts
blend imaginative and creative thinking with systematic ,logical process ability. This combination is a key to successful innovation.
entrepreneurs
It has been said that the first rule for developing entrepreneurial _____ is to recognize that problems are to solution what demand is to supply.
vision
is the generation of ideas that results in the improved efficiency or effectiveness of a system. Two important components of creative problem solving are process and people.
creativity
is goal oriented: it is designed to attain a solution to a problem.
process
are the resources that determine the solution
people
two approaches to creative problem solving
adaptor
innovator
Employs a disciplined, methodical approach
Is concerned with solving, rather than finding problems
Attempts to refine current practices
Is capable of extended detail work
Is sensitive to group cohesion and cooperation
approach to creative problem solving?
the adaptor
Approaches tasks from unusual angles
Discovers problems and avenues of solution
Questions basic, assumptions related to current practices
Has little regard for means; is more interested in ends
Has little tolerance for routine work
Has little or no need for consensus; often is insensitive to others
what kind of approach
innovator
5 steps in creative process
background or knowledge accumulation
incubation process
idea experience
evaluation and implementation
If expanded, the principle of perceiving in a relational mode helps develop a _____perspective toward things and people
functional
hemisphere helps an individual understand analogies, imagine things, and synthesize information.
right
hemisphere helps the person analyze, verbalize, and use rational approaches to problem solving
left
Although these two brain hemispheres process information differently and are responsible for different brain activities and skills, they are integrated through a group of connecting nerve fibers called the
corpus callosum
nvolves logical and analytical thinking in the knowledge accumulation, evaluation, and implementation stages. In addition, it calls for imagination, intuition, analogy conceptualization, and synthesizing in the incubation and the idea creation stages.
creative process
These habits, or ____ _____, tend to hinder creative thought processes, and different thought processes must be used to enhance creative thinking.
muddling mindsets
Because of the speed of change in the modern world, personal lives are filled with a great deal of uncertainty and ambiguity. People often get bogged down with striving for an unreasonable amount of ambiguity in his or her work and life. Many exceptionally creative people thrive in an uncertain environment and find it exhilarating.
either/or thinking
Many people try to make the right decisions or take the correct action every time. In doing so, they rely on averages, stereotypes, and probability theory to minimize their risks. Although this strategy often is appropriate, at times a creator or innovator must take some calculated risks, Sometimes these risks result in the innovator being wrong and making mistakes. Yet by recognizing this as a part of the innovation game, the creative person learns from mistakes and moves on to create bigger and better things.
security hunting
It is ironic that, although averages and stereotypes are fabricated abstractions, people act and make decisions based on them as if these were data entities that exist in the real world. For example, one could hypothesize that the average homemaker is female, 38 years old, and 5’4” tall, weighs 120 pounds, and has 2 children, and a part-time job. If this is an acceptable stereotype of a homemaker then, it would be difficult to accept outside that description. Creativity experts argue that people must alter their thinking to enhance their creativity; only new patterns of thinking will lead to new ideas and innovation.
stereotyping
In their struggle to achieve security, many people also tend to rely on the theory of probability thinking to make decisions. An overreliance on this decision-making method can distort reality and prohibit one from taking calculated risks that may lead to creative endeavours.
probabilty thinking
thinking up a new idea or concept, such as an idea for a new produ
ct or service or a way to solve a problem
what kind of creativity?.
idea creativity
inventing and building a tangible object such as a product, an advertisement, a report, or a photograph.
what kind of creativity
material creativity
organizing people or objects and coming up with a new organizational form or approach to structuring things. Examples could include organizing a project, starting a new type of venture, putting together or reorganizing a work group, and changing the policies and rules of a group
what kind of creativity
organization creativity
an innovative approach to achieving collaboration, cooperation, and win-win relationships with others.
what kind of creativity
relationship creativity
producing an event such as an awards ceremony, team outing, or annual meeting. The creativity here also encompasses decor, ways in which people are involved, sequence of happenings, setting, and so forth
what kind of creativity
event creativity
changing one’s inner self; being open to new approaches to how one does things and thinking about oneself in different ways; achieving a change of heart or finding a new perspective or way to look at things.
what kind of creativity
inner creativity
acting in a spur-of-the-moment manner, such as coming up with a witty response, a quick and simple way to settle a dispute, or an innovative appeal when trying to close a sale.
what kind of creativity
spontaneous creativity
In entrepreneurship, creativity is never alone–it always connects to
innovatoion
is a key function in the entrepreneurial process. It is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth.
innovation
is the process by which entrepreneurs convert opportunities (ideas) into marketable solutions. It is the means by which they become catalysts of change.
innovation
(management guru) has noted that because innovation is both conceptual and perceptual, would-be innovators must go out and look both the right and the left sides of their brains.
Peter Drucker
It is the creation of a new product, service, or process–often one that is novel or untried. Such concepts are said to be “revolutionary”.
Examples: Thomas Edison’s lightbulb, the airplane by the Wright brothers
four type of innovation
invention
Creating a new use or different application of an already existing product, service, or process.
Examples: Mark Zuckerburg - Facebook, Ray Kroc - McDonald’s
type of innovation
extension
An innovation that is a replication of an existing product, service, or process. The duplication however, is not simply copying but adding the entrepreneur’s own creative touch to enhance or improve the concept and beat the competition.
Examples: Pizza Hut (pizza parlor), Wal-Mart (department stores)
type of innovation
duplication
This is the combination of existing concepts and factors into a new formulation or use. It involves taking a number of ideas or items already invented and finding a way that they can form a new application.
Examples: Starbucks (coffee shop +hangout place for work and socialization), Toyota Prius (hybrid car that runs both on gasoline and electricity)
type of innovation
synthesis
Innovation is planned and predictable.
why not?
This statement is based on the old concept that innovation should be left to the research and development (R&D) department under a planned format. In truth, innovation is unpredictable and may be introduced by anyone.
Technical specifications must be thoroughly prepared.
why not?
his statement comes from the engineering arena, which drafts complete plans before moving on. Though preparation is good, but it sometimes takes too long. Quite often, it is more important to use a try/test/revise approach.
Big projects will develop better innovations than smaller ones.
why not?
This statement has been proven false time and again. Larger firms are now encouraging their people to work in smaller groups, where it often is easier to generate creative ideas
Innovation relies on dreams and blue-sky ideas.
why not?
he creative process is extremely important to recognize innovative ideas. However, accomplished innovators are very practical people and create from opportunities grounded in reality–not daydreams.
Technology is the driving force of innovation success.
why not?
Technology is certainly one source for innovation, but it is not the only one. Numerous sources exist for innovative ideas. Moreover, the customer or market is the driving force behind any innovation. Market-driven or customer-based innovations have the highest probability of success.
During the past two decades, the number of new venture start-ups has been consistently high. One proof is the significant and increasing number of new ____ as well as _____applications
firms
patent application
efers to the special characteristics and design concepts that draw the customer to the venture, which should provide performance or service that is superior to that of competitive offerings.
uniqueness
begins with an idea for the venture and ends when the doors are opened for business
phase of venture
prestartup
ommences with the initiation of the sales activity and the delivery of products and services, and ends when the business is firmly established and beyond short-term threats to survival.
phase of venture
startup
lasts until the venture is terminated or or the surviving organizational entity is no longer controlled by an entrepreneur.
phase of venture
post startup
why do ventures fail?
product/market problems
financial difficulties
manageraial problems
approaches of analyses (3)
profile analysis
feasibility criteria
comprehensive feasibility
is a tool that enables entrepreneurs to judge a business venture’s potential by sizing up the venture’s strengths and weaknesses along a number of key dimensions or variables.
profile analysis
SWOT
(Strengths, Weaknesses, Opportunities, and Threats)
presents a framework, in checklist format, for determining the relative strengths and weaknesses of the financial, marketing, organizational, and human resources available to a new venture. Through careful profile analysis, entrepreneurs can mitigate for possible weaknesses that may inhibit the growth of their ventures, avoiding many of the mistakes that can lead to venture failure.
internal profile analysis
is a criteria selection list based on the following questions, from which entrepreneurs can gain insights into the viability of their venture:
feasibility criteria approach
A more comprehensive and systematic feasibility analysis, incorporates external factors in addition to those included in the criteria questions cited previously.
comprehensive feasibility approach
Factors involved in a comprehensive feasibility approach are: (5)
technical
market
financial
organizational
competitive
which merit special attention in comprehensive feasibility approach (2)
technical
market
The evaluation of a new venture idea should start with identifying the technical requirements–the _____ ______–for producing a product or service that will satisfy the expectations of potential customers. The most important of these are:
technical feasibility
Assembling and analyzing information about the _____of a new venture are vital for judging its potential success. Thee major areas in this type of analysis are:
marketability
