FSPQ 0012

CO-CURRICULUM
(ENTREPRENEURSHIP)
WEEK 3 LECTURE 3
TOPIC 3: CULTIVATING ENTREPRENEURIAL
CREATIVITY AND INNOVATION

Prepared by:
Siti Nur Shahida, AFHEA
PPI, UTMSPACE
 LEARNING OBJECTIVES

• To define the concept of creativity and innovation.

• To explain the four main phases in the creative process.
• To describe the FIVE (5) creativity techniques.
• To list the characteristics of creative individuals.
• To describe the FOUR (4) basic types of innovation.
• To discuss the barriers to creativity and innovation.
• To explain the importance of creativity and innovation for
entrepreneurs.
 INTRODUCTION

Today’s competitive business environment

requires an entrepreneur to think of ways to
produce new products, services or processes
to the customers.

This would enable the organisation to survive

in the business and attract customers to the
organisation’s new inventions as well as
generate revenues.

Hence, creativity and innovation are vital

elements for all levels of businesses in order
for them to grow and expand.

Besides, it is also essential both for survival

and for building competitive advantage (Kirby,
2003).
 WHAT IS CREATIVITY?

“The ability to produce work

Creativity involves the
that is novel (i.e. original and
development of unique and
unexpected), high in quality
novel responses to problems
and appropriate (i.e. useful,
and opportunities.
meets task constraints)”.
•Schermerhorn, Hunt and • Sternberg, Kaufman and
Osborn (2003) Pretz (2002)
THE PROCESS OF CREATIVITY

INCUBATION

KNOWLEDGE CREATIVE IDEA

ACCUMULATION PROCESS GENERATION

EVALUATION
AND
IMPLEMENTATION
 THE PROCESS OF CREATIVITY: PHASE 1 –
KNOWLEDGE ACCUMULATION

Description: Example:
• This step involves gathering • An entrepreneur might spend time
information and building a studying market reports, learning
knowledge base relevant to the about new technologies, and
problem or project at hand. understanding customer needs
• This can include researching before developing a new product.
existing solutions, understanding
market trends, learning new skills,
and accumulating data.
 THE PROCESS OF CREATIVITY: PHASE 2 -
INCUBATION

Description: Example:
• During the incubation phase, ideas • After gathering information, an
are allowed to gestate. entrepreneur might take a step
• This often involves taking a break back from actively thinking about
from conscious problem-solving to the problem, allowing insights to
let the subconscious mind work on emerge naturally.
the problem.
• This phase can involve relaxation
and mental diversion.
 THE PROCESS OF CREATIVITY: PHASE 3 –
IDEA GENERATION

Description: Example:
• This is the brainstorming phase • An entrepreneur might hold
where various ideas and potential brainstorming sessions with their
solutions are generated. team to generate multiple ideas for
• Creativity is key here, and the goal a new product feature.
is to produce a wide range of ideas
without immediate judgment or
criticism.
 THE PROCESS OF CREATIVITY: PHASE 4 –
EVALUATION AND IMPLEMENTATION

Description: Example:
• In this phase, the ideas generated are • An entrepreneur might analyze the pros
critically evaluated for feasibility, and cons of different product ideas,
potential impact, and alignment with choose the most promising one, and
goals. then develop a detailed plan to bring it
• The best ideas are selected for to market.
implementation.
• This involves planning, resource
allocation, and executing the chosen
ideas.
HOW TO GENERATE CREATIVE IDEAS?

FORCED
ANALOGY

BRAINSTORMING DO IT

CREATIVITY
TECHNIQUES

NOMINAL
MIND-MAPPING
GROUP
 HOW TO GENERATE CREATIVE IDEAS?
(CONT.)

BRAINSTORMING FORCED ANALOGY

• Description: • Description:
•A group activity where • Comparing the problem with
participants freely suggest ideas something unrelated to spark
without judgment. new ideas.
• Example: • Example:
• A team gathers to generate as • Comparing a business
many ideas as possible for a challenge to a sports strategy to
new product feature. find innovative solutions
HOW TO GENERATE CREATIVE IDEAS?
(CONT.)
• Description:
• A structured approach involving four steps:
Define, Open, Identify, Transform.
D.O.I.T • Example:
• Define the problem, Open your mind to
possibilities, Identify the best options, Transform
the ideas into actionable steps.
• Description:
• Visual diagram connecting ideas around a
central concept.
Mind Mapping:
• Example:
• Creating a mind map to explore various aspects
and potential features of a new app.
• Description:
• Structured group discussion where individuals
generate ideas independently before sharing
Nominal Group with the group.
Technique: • Example:
• Team members write down their ideas privately,
then discuss and rank them collectively.
 CHARACTERISTICS OF CREATIVE
INDIVIDUALS

Humble & Goal-

Proud directed

Passionate but Calculated

Objective risk taker

Brave to
High
try new things
Self-control

Open minded &

willing to accept Playfulness & discipline/
criticism responsibility &
irresponsibility
WHAT IS INNOVATION?

Once entrepreneurs have gone through a creative

process and found the best solution, the following
step will be the application of innovation.

Creativity is a pre-condition to innovation.

Currently, innovation is thought to be the key to
sustainable success for many organisations.

Companies that are able to compete, win and

sustain in the market are those that develop new
products or new systems of producing products
and continue doing so over time.
 WHAT IS INNOVATION? (CONT.)

Innovation is
According to related to as “the
Kinicki and creation of
Williams (2003), something new in
innovation is the marketplace
“finding ways to that alters the
deliver new or supply-demand Hence, innovation
better goods or equation” (Chell, is the key to
services”. 2001). survival for
That means, every This mean that an entrepreneurs in
organisation will entrepreneur today’s intense
not allow itself to creates a new business
become demand in the environment.
complacent, market by
especially when recombining the
rivals are coming factors of
up with creative production to
ideas. create something
new.
 WHY INNOVATE?

To convert creativity &

opportunities into
marketable offerings –
products, services or
processes

To seek new or efficient To deliver new or better

resources products or services

To penetrate new market

 TYPES OF INNOVATION
• Description:
• The creation of a completely new product, service, or
process that did not exist before. It involves novel ideas
that are developed into tangible outcomes.
• Example:
• The invention of the telephone by Alexander Graham
Invention: Bell. This was a groundbreaking communication device
that transformed how people connect over long
distances.
• Implication:
• Invention requires substantial research and
development, and it can significantly impact industries
and create new markets.

• Description:
• The enhancement or improvement of an existing
product, service, or process. It builds upon current
technologies or concepts to offer better performance,
features, or user experience.
• Example:
• The evolution of Smartphone from basic mobile
Extension: phones. Modern Smartphone includes advanced
features such as touch screens, high-resolution
cameras, and internet connectivity.
• Implication:
• Extensions help companies stay competitive by
continuously improving their offerings and addressing
evolving customer needs.
 TYPES OF INNOVATION (CONT.)
• Description:
• The replication or reproduction of an existing product,
service, or process, often with minor modifications or
improvements.
• It involves copying a successful innovation and
adapting it to a different context or market.
• Example:
Duplication • The introduction of ride-sharing services like Lyft
following the success of Uber. Both companies offer
similar services but may differentiate in terms of
branding, pricing, and market strategies.
• Implication:
• Duplication can be a strategic move to enter
established markets by leveraging proven business
models and technologies.

• Description:
• The combination of existing ideas, products, services,
or processes to create something new. It involves
merging different concepts to produce innovative
solutions that address specific needs or challenges.
• Example:
• The development of hybrid cars, which combine
Synthesis traditional internal combustion engines with electric
powertrains to offer more environmentally friendly
transportation options.
• Implication:
• Synthesis encourages cross-disciplinary innovation and
can lead to breakthroughs that integrate diverse
technologies or approaches.
 SOURCES OF INNOVATION

• Description:
• Unplanned or unforeseen events that can lead
to new discoveries or opportunities for
innovation.
Unexpected Events or
• Example:
Occurrences:
• The discovery of penicillin by Alexander
Fleming when he noticed that a mold
(Penicillium notatum) killed bacteria in a petri
dish.

• Description:
• Innovations driven by the output of research
and development (R&D) activities, leading to
new inventions and advancements.
New-Knowledge
• Example:
Concept:
• The development of the CRISPR-Cas9 gene-
editing technology, which was a result of
extensive scientific research and has
revolutionized genetics and biotechnology.
 SOURCES OF INNOVATION (CONT.)

• Description:
• Innovations prompted by shifts in demographic
characteristics such as age, education levels,
income, and consumer preferences.
Change of
• Example:
Demographics:
• The aging population in many countries has led
to innovations in healthcare, such as the
development of telemedicine and home health
monitoring systems to cater to elderly patients.

• Description:
• Innovations that arise from the need to improve
business or production processes using new
tools, machines, or systems.
Process Needs:
• Example:
• The introduction of automation and robotics in
manufacturing processes to increase efficiency,
reduce costs, and improve product quality.
BARRIERS TO CREATIVITY AND INNOVATION
• Description:
• High pressure and workload.
• Impact:
Stress: • Reduces clarity and creative thinking.
• Solution:
• Implement stress management techniques and ensure
work-life balance.
• Description:
• Lack of support for innovation within the organization.
Organization Might Not • Impact:
Encourage Innovation: • Limits idea generation and implementation.
• Solution:
• Develop a culture that values and supports innovation.
• Description:
• Rigid management practices that resist change.
• Impact:
Traditional Management
• Discourages innovative thinking.
Behavior: • Solution:
• Adopt flexible and progressive management
approaches.
• Description:
• Lack of time, funding, or tools for innovation.
• Impact:
Insufficient Resources: • Limits the ability to develop and test new ideas.
• Solution:
• Allocate adequate resources and provide necessary
tools.
BARRIERS TO CREATIVITY AND INNOVATION
(CONT.)
• Fear of Change:
• Description:
• Resistance to altering the status quo.
• Impact:
• Stifles innovative efforts and
adaptability.
• Solution:
• Encourage a culture that views change
as an opportunity.
Personal or Individual
Behaviors • Fear of Failure:
• Description:
• Anxiety about unsuccessful outcomes.
• Impact:
• Prevents risk-taking and
experimentation.
• Solution:
• Cultivate an environment where
failures are seen as learning
opportunities.
BARRIERS TO CREATIVITY AND INNOVATION
(CONT.)
• Fear of Trying:
• Description:
• Hesitation to start new initiatives.
• Impact:
• Limits the exploration of new ideas.
• Solution:
• Encourage small, manageable steps to
build confidence.
Personal or Individual
Behaviors (Cont.) • Fear of Making Mistakes:
• Description:
• Anxiety about errors in the innovation
process.
• Impact:
• Inhibits creativity and experimentation.
• Solution:
• Promote a learning culture that values
mistakes as part of growth.
BARRIERS TO CREATIVITY AND INNOVATION
(CONT.)
• Fear of Criticism:
• Description:
• Apprehension about negative feedback
on ideas.
• Impact:
• Stifles idea sharing and innovation.
• Solution:
• Foster a supportive environment with
constructive feedback.
Personal or Individual
Behaviors (Cont.) • Improper Motivation:
• Description:
• Lack of incentives or recognition for
creativity.
• Impact:
• Reduces motivation to pursue
innovative ideas.
• Solution:
• Implement reward systems for
innovative contributions
BARRIERS TO CREATIVITY AND INNOVATION
(CONT.)

• Self-Image Block:
• Description:
• Low self-esteem or self-doubt regarding
creative abilities.
Personal or Individual • Impact:
Behaviors (Cont.) • Prevents individuals from contributing
ideas.
• Solution:
• Boost confidence through training,
positive feedback, and highlighting past
successes.
STRATEGIES TO OVERCOME THE BARRIERS
TO CREATIVITY AND INNOVATION
• Encourage open and respectful communication, where
Create a supportive ideas are welcomed and constructive feedback is
and non-judgmental provided.
• Emphasize that all ideas are valuable and that criticism is
environment focused on improving ideas rather than personal attacks.

• Provide opportunities for relaxation and stress reduction.

Manage stress • Encourage regular breaks, mindfulness practices, and a
healthy work-life balance.
levels • Foster a supportive work culture that values employee
well-being and encourages creative thinking.

• Encourage individuals to question their own assumptions

Challenge and explore different perspectives.
• Foster a culture of curiosity and learning, where new
assumptions and ideas and unconventional approaches are valued.
beliefs • Encourage individuals to challenge established norms and
explore alternative possibilities.

• Offer training and workshops on creativity and innovation

to equip individuals with tools and techniques for
Provide training and enhancing their creative thinking abilities.
resources • Provide access to resources, such as books, articles, or
online courses, that promote creative thinking and offer
inspiration.
 IMPORTANCE OF CREATIVITY AND
INNOVATION FOR ENTREPRENEURS
• By creating new products or services, it can
Ensure an increase the organization's capability to compete
with its rivals.
Organization's • It also makes the entire organization respond
Survival speedily and collectively to the environmental
change.

• With the production of new products or services,

entrepreneur have the advantage of exploring
Explore New untapped markets.
Markets • A creative and innovative entrepreneur will always
think of ways to provide their unique offerings to a
new market.

• As there are plenty of natural resources available,

entrepreneurs must ensure that they can get benefits by
exploiting the wealth of the resources without causing
Exploit Natural harm to the environment.
• Indeed, creativity and innovation create resources.
Resources According to Drucker (1985), there is no such thing as a
resource until man (entrepreneur) finds a use for
something in nature and thus endows it with economic
value.
 REFERENCES

Ariffin, S. & Hamidon, S. (2017). “Introduction to Entrepreneurship”.

Shah Alam: Selangor, Oxford Fajar Sdn. Bhd.
Ariffin, S., Ab Wahab, I., & Hambali, Zarida (2013). “Fundamentals
of Entrepreneurship”. Shah Alam: Selangor, Oxford Fajar Sdn.
Bhd.
Aman Shah, S. H., Sh’afie, S. Z., Teik Lan, C. S., Mokhtar, N. S., &
Mohamed, M. (2018). “Entrepreneurship”, 5th Ed., Shah Alam:
Selangor, Oxford Fajar Sdn. Bhd.
Jamaludin, A., Mohd Yusoff, A.R., Mohd Rusli, M.H., Che Mat, S., &
Abdul Majid, Z. (2011). “Introduction to Entrepreneurship”.
Shah Alam: Selangor, Oxford Fajar Sdn. Bhd.