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Handout Lesson 6
6. Creativity, Innovation and Invention
•Tools for Creativity and Innovation
•Creativity, Innovation, and Invention: How They Differ
•Developing Ideas, Innovations, and Inventions
-The Creative Process: Five Stages of Creativity
•Creative Problem-Solving Methods

Tools for Creativity and Innovation

One of the key requirements for entrepreneurial success is the ability to develop and
offer something unique to the marketplace. Over time, entrepreneurship has become
associated with creativity, the ability to develop something original, particularly an idea
or a representation of an idea. Innovation requires creativity, but innovation is more
specifically the application of creativity. Innovation is the manifestation of creativity into a
usable product or service.

In the entrepreneurial context, innovation is any new idea, process, or product, or a

change to an existing product or process that adds value to that existing product or
service. How is an invention different from an innovation? All inventions contain
innovations, but not every innovation rises to the level of a unique invention. For our
purposes, an invention is a truly novel product, service, or process.

Differences between Creativity, Innovation and Invention

Concept Description
Creativity Ability to develop something original, particularly an idea, with an element of
aesthetic flair
Innovation Change that adds value to an existing product or service.
Invention Truly novel product, service, or process that, though based on ideas and
products that have come before, represents a leap, a creation truly novel and
different.

Entrepreneurial creativity and artistic creativity are not so different. You can find
inspiration in your favorite books, songs, and paintings, and you also can take
Handout Lesson 6
Entrepreneurial Mind
Prof Maria Elizabeth N. Villabroza
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inspiration from existing products and services. You can find creative inspiration in
nature, in conversations with other creative minds, and through formal ideation
exercises, for example, brainstorming. Ideation is the purposeful process of opening up
your mind to new trains of thought that branch out in all directions from a stated purpose
or problem. Brainstorming, the generation of ideas in an environment free of judgment
or dissension with the goal of creating solutions, is just one of dozens of methods for
coming up with new ideas.[9] You can benefit from setting aside time for ideation.
Reserving time to let your mind roam freely as you think about an issue or problem from
multiple directions is a necessary component of the process. Ideation takes time and a
deliberate effort to move beyond your habitual thought patterns. If you consciously set
aside time for creativity, you will broaden your mental horizons and allow yourself to
change and grow.

Entrepreneurs work with two types of thinking. Linear thinking—sometimes called

vertical thinking—involves a logical, step-by-step process. In contrast, creative thinking
is more often lateral thinking, free and open thinking in which established patterns of
logical thought are purposefully ignored or even challenged. You can ignore logic;
anything becomes possible. Linear thinking is crucial in turning your idea into a
business. Lateral thinking will allow you to use your creativity to solve problems that
arise.

 for businesses to help generate new ideas by letting employees collaborate
digitally with ideation software. In recent years, there has also been a rise in tools
for design thinking which helps individuals and teams to quickly create prototypes
of their ideas.

Some of the most popular tools of innovation include brainstorming tools, prototyping
tools, and design thinking tools. Brainstorming tools can help employees come up with
new ideas, prototyping tools can help them test and refine those ideas, and design
thinking tools can help them put them into action.

Six Thinking Hats

The six thinking hats is a concept developed by Dr. Edward de Bono and was first
published in his book Six Thinking Hats in 1985. The concept has been made popular in
both educational and entrepreneurial circles, any environment where group
collaboration and decision-making are being done.

The basic concept of the six thinking hats is that in order to process information and to
reach the best conclusions in problem-solving sessions, people need to look at issues
from a variety of perspectives. Companies often have a facilitator take the group
through each of the hats and their functions to get a more holistic look at an issue they
are facing. It could work for a variety of scenarios from product design to increasing
motivation and engagement to risk avoidance.

Handout Lesson 6
Entrepreneurial Mind
Prof Maria Elizabeth N. Villabroza
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This powerful method can be used to enhance critical thinking skills and increase
productivity as well as spark innovation and creative problem-solving.

• White Hat: acts as information gatherer by conducting research and bringing

quantitative analysis to the discussion; sticks to the facts
• Red Hat: brings raw emotion to the mix and offers sensibilities without having to justify
them
• Black Hat: employs logic and caution; warns participants about institutional limitations;
also known as the “devil’s advocate”
• Yellow Hat: brings the “logical positive” of optimism to the group; encourages solving
small and large problems
• Green Hat: thinks creatively; introduces change and provokes other members when
needed; new ideas are the purview of the Green Hat
• Blue Hat: maintains the broader structure of the discussion and may set the terms by
which progress will be judged; makes sure the other hats play by the rules, or stay in
their respective lanes, so to speak.

Creative Problem-Solving Methods (6-Step Innovation Process for Business)

1. Idea generation.

This step involves generating new ideas for products, services, or process
improvements. This can be done through brainstorming, customer feedback, or simply
observing what's happening in the market. Once you have some new business ideas,
it's important to evaluate them and see which ones might have the most potential.

2. Idea screening.

This step involves evaluating and sorting through the ideas generated in step 1. Only
the best ideas will move on to the next step. One popular way to evaluate new ideas is
through a concept called the "5 Whys." This involves asking yourself why a particular
idea is important, and then drilling down into the answers until you reach a basic need
or problem that the

3. Concept development:
Handout Lesson 6
Entrepreneurial Mind
Prof Maria Elizabeth N. Villabroza
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This step involves developing a rough idea of what the new product, service, or process
would look like. This includes figuring out how it would work and what features it would
have. It's important to be realistic in this step and not get carried away with the
possibilities.

4. Prototype development.

This step involves creating a prototype of the new product, service, or process. This can
help to test out the feasibility of the concept and get feedback from potential customers.

5. Testing and evaluation.

This step involves testing the new product, service, or process with real customers to
see how they like it. It's important to collect feedback during this step so that the idea
can be further refined or scrapped altogether.

6. Launch.

Once the new product, service, or process has been refined based on feedback from
testing and evaluation, it's ready for launch. This can involve marketing the new product,
setting up a sales process, or simply making it available to customers.

(https://innovation.tools/blogs/innovation-blog/what-are-the-best-innovation-tools-for-business)

Five Stages of Creativity

Handout Lesson 6
Entrepreneurial Mind
Prof Maria Elizabeth N. Villabroza
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The Creative Process: The Five Stages of Creativity

(Graham Wallas, 1920s) – a sequence of five stages (preparation, incubation,

intimation, illumination, verification), based on the assumption that creativity is a legacy
of evolution, enabling humans to adapt to changing environments

Raw creativity and an affinity for lateral thinking may be innate, but creative people must
refine these skills in order to become masters in their respective fields. They practice in
order to apply their skills readily and consistently, and to integrate them with other
thought processes and emotions. Anyone can improve in creative efforts with practice. It
requires:

1. Preparation
2. Incubation
3. Insight
4. Evaluation
5. Elaboration

(Source: Entrepreneurship. Openstax)

Preparation

This is the first stage yet is considered by many to be the most important. Preparation
involves complete immersion in the topic area, drawing in as much information as
possible, to establish a strong basis for idea creation. This requires critical thinking and
curiosity, internally ask yourself, ‘what is the problem I need to solve?’, ‘what knowledge
do I need to help me solve this problem?’. In a business environment this can build off
the project mission, objectives, or creative brief.

Incubation

The second stage, incubation, can often be rushed or overlooked in the creative
process, especially with the pressure of looming deadlines. But this stage is critical and
requires time. By taking a step back from the project, your brain can internalize
gathered information, whilst ideas can percolate, and the intended direction can begin to
become clearer. For example, have you ever started and completed an assignment the
night before it was due and then days later you find yourself still thinking about it and
coming up with ways it could have been better executed? This is because your brain
requires time to sit with ideas and for true creativity to come to light.

Handout Lesson 6
Entrepreneurial Mind
Prof Maria Elizabeth N. Villabroza
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Insight

This is what is referred to by creative expert James Taylor as the “a-ha” or light-bulb
moment. Insight can often seem to have come out of no-where, but this is not the case,
you have allowed yourself time to sub-consciously consider the problem and develop a
clear solution.

Evaluation

Evaluation is the time to validate your ideas and critically reflect / critique. It is important
to analyze whether your insight, solution or idea aligns with the project objectives or
initial problem. It can be beneficial to discuss with others and gauge their reactions, or
for those in a business setting, conduct market research to test effectiveness and
market feasibility.

Elaboration

Finally, it is time to put your idea into practice in the elaboration stage, this is where you
create the output. This could be anything, from a report or an advertising campaign, to a
painting, or a story.
(https://squareholes.com/blog/2021/06/24/understanding-the-5-stage-creative-process-to-help-maximise-
your-creative-output/)

Handout Lesson 6
Entrepreneurial Mind
Prof Maria Elizabeth N. Villabroza