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A textbook on
MANAGEMENT OF CREATIVITY
Self-published by students of HR domain
Rajadhani Business School 2018
A Textbook on
MANAGEMENT OF
CREATIVITY
Self Published By
HR Students of
Rajadhani Business School
Nagaroor, Attingal, Thiruvananthapuram
2016-2018
For internal circulation only
FOREWORD
I congratulate Scaria Thomas (Assistant professor, Rajadhani Business School) and our T6 MBA
students (HR domain, 2016 Batch) for publishing a textbook on Management Of Creativity, based on
the MBA syllabus of APJ Abdul Kalam Technological University. A great effort indeed!
Students always look for the textbooks that they could easily understand and apprehend. When I was a
student too, I wanted such a textbook! I could not find it. I could find some fantastic books on the
subject, but could not find a book that provided real life examples and explanations. This book is the
result of a few MBA students with research insight and want to explore more into the subject. Once
they compiled, they wanted to share the wealth of information with other fellow students.
The intent of the authors is to help readers, i.e., management students and faculty, to have easy access
to information and help them to attain good grades. I am sure this book is going to be a ‘live project’
and the same authors will keep on updating it once they start their career in this field.
In closing, I am excited to share with readers “A Textbook on Management Of Creativity” that
would definitely help you to in understanding the subject. Without doubt, I can say that this book is an
enthusiastic celebration of techniques involved in Management Of Creativity. I think that the authors
can be confident that there will be many grateful readers who will gain a broader perspective of the
discipline .
Rajit Karunakaran Nair
Director, Rajadhani Business School, Trivandrum, Kerala
(Author of “Making of a Sensible Consultant” & “Fearless or Shameless”)
FOREWORD
I feel proud to know about the academic initiative by our MBA T6 students by publishing a book of
“Management Of Creativity”. This is the second initiative of our students in this direction. The first
book of Sales and Distribution was well appreciated and acclaimed by our management and student
fraternity. This noble sharing efforts and initiatives make RBS, a different learning place. I take this
opportunity to congratulate Mr Scaria Thomas, Assistant Professor and the entire members of student
team for this commendable work.
I wish and expect more such efforts from our students and faculty members in future.
Prof (Dr) Rajesh S Pyngavil
Professor and Head
Rajadhani Business School
FOREWORD
Creativity is essential in every walk of life the same way it essential for management too. They
go hand in hand. Creativity is the keystone of all the successful management ventures.
This book on “Management Of Creativity” is a sincere effort by the HR students of the
college, purely based on KTU Syllabus of T6 HR paper named Management of Creativity. The Book
details about Creativity styles, Creativity in problem solving, Lateral thinking, Ideation, TRIZ, Six
thinking hats, Decision and Evaluation.
An outstanding portrayal of the minuet accepts of creativity in Human Resources Management.
This book is a sure help for the students specializing in HR.
Scaria Thomas
Assistant professor
Rajadhani Business School, Trivandrum
FOREWORD
A great initiative by the HR specialization students of RBS by producing a book on “Management Of
Creativity” as per KTU syllabus. Credits to entire crew and Scaria sir for this superb attempt.
Shaan R S
Assistant Professor
Rajadhani Business School, Trivandrum
MANAGEMENT OF CREATIVITY
AUTHORS
MANASA PRADEEP PRASEETHA GOKHALEY HAJNA.G.S
LEKSHMI PRAKASH SUDHINA NAZER MINNU SABU
ACKNOWLEDGEMENT
We thank God, almighty giving as a splendid opportunity for completing our work “A Textbook on
Management Of Creativity” as per the KTU syllabus.
We would like to thank our mentor Asst. Prof.Scaria Thomas, Rajadhani Business School, for
encouraging and supporting us to publish this book.
We would like to express our gratitude and thanks to Prof. Rajit Karunakaran Nair, Director
Rajadhani Business School and Prof. Dr. Rajesh S Pyngavil Professor & Head, Rajadhani Business
School, for helping us making this book a reality.
Last but not least we thank all our RBS faculty, all our friends of Rajadhani Business School and our
family, for giving their support and well wishing. We beg forgiveness of all those have been with our
work and those we have failed to mention.
Team Human Resources Management
RBS
2016-2018
INDEX
Units Contents Page No:
1
Creativity & Concepts:
Making a case for creativity; Creative thinking as a skill; Valuing diversity
in thinking – Thinking preferences, Cognitive biases of creativity.Creativity
styles; setting the stage for success – Basic philosophy, Having a vision,
Setting the right attitude, Recognizing and avoiding mental blocks,
Avoiding mindsets, Risk taking, Paradigm shift and paradigm paralysis,
Individual and team work; Creativity in problem solving – Problem
definition, Understanding, Representing; Pattern Breaking – Thinking
differently, Changing your point of view, Watching for paradigm shift,
Challenging conventional wisdom, Lateral thinking, Provocation (escape,
random word), Mind stimulation: games, brain-twisters and puzzles.
1 – 21
2 (a)
2 (b)
Idea and Opportunity:
History of ideas – development of ideas in history (post-it
notes, coke bottles); Ideation – Basic of human information
processing; Factors influencing ideation - social factors,
resources, motivation, context, time; Recognizing
Opportunities – how to recognize opportunities; Exploration,
evaluation, exploitation, Factors revealing opportunities -
Alertness, knowledge, luck.
Defining an opportunity - objective or subjective nature,
underlying needs and wants, newness, entrepreneurial
strategies of Vesper; Discovery view (building on cognitive
foundations and Scott Shane’s material) - sources of
opportunities, key correlates with opportunity recognition);
Creation view - building on Saras Sarasvathy’s effectuation
Logic, implications on the process.
22 – 42
3
Ideation process:
Idea-collection processes - Brainstorming/Brain-writing, The SCAMPER
methods, Metaphoric thinking, Outrageous thinking, Mapping thoughts,
Other (new approaches); Using Math and Science - Systematic logical
thinking, Using math concepts; Eight-Dimensional (8D) Approach to
Ideation - Uniqueness, Dimensionality, Directionality, Consolidation,
Segmentation, Modification, Similarity, Experimentation.
43 – 63
4
Systematic Inventive Thinking:
TRIZ - Fundamentals of TRIZ, Trial and Error and Systematic Innovation,
Patents, sources of Technological Innovation; Key finding in TRIZ Patents
Research - Level of Invention, Definition of Inventive Problem, Patterns of
Technology Evolution, Patterns of Invention; Ideal Final Result (IFR),
Psychological Inertia, TRIZ Process, Cause Effect Chains Diagram,
Contradictions Matrix, 40 Inventive Principles to resolve technical
contradiction
64 – 72
5
Decision and Ownership:
Decision and Evaluation - Focused thinking framework; Recognizing
Reasoned Arguments – short arguments and non arguments; drawing
conclusions, inference, or hypothesis; Assumptions - implicit assumptions,
underlying assumptions; Reasoning – reasoning, explanations, flaws in
reasoning; Six Thinking hats; Ethical considerations.
Intellectual Property - Introduction to intellectual property
rights- Patents, Copyrights , Trademarks , Trade Secret,
Unfair Competition.
73 – 80
6 Reference 81
MODULE 1
CREATIVITY
CREATIVITY
Creativity is the act of turning new and imaginative ideas into reality. Creativity is characterized by the
ability to perceive the world in new ways, to find hidden patterns, to make connections between
seemingly unrelated phenomena, and to generate solutions.
CONCEPT OF CREATIVE THINKING
Creative thinking has two aspects:
1. The process of creative thinking
2. The product of creative thinking
While the process of creation is an inner happening, the product of creation is seen and defined
COMPONENTS OF CREATIVITY
1. Imagination- the process by which items of experience are combined to form new
products.
2. Fluency-it means the frequency with which relevant and unrepeated ideas come to one’s
mind after a question is put.
3. Flexibility-it is represented by a person’s ability to produce ideas which differ in approval
or thought trend.
4. Originality-it is uniqueness of response, defines originality as the production of unusual,
for fetched, remote or clever responses among members of a certain population.
5. Elaboration-it is indicated by a person’s ability to add pertinent details to the minimum
and primary response to the stimulus.
6. Curiosity-it is an exploratory behavior.
7. Giftedness-it was considered only children with greater IQ were gifted, but now it is
intelligence or talent and artistic ability.
CREATIVE THINKING AS A SKILL:
It’s important to have a creative thinking to solve problems more effectively. So we have to improve
our creative thinking. Some of the ways to improve our creative thinking are as follows:
Sensing
• Use all your senses—see, taste, smell, touch, hear, think, speak.
• Be a good observer of people, nature, and events around you.
Thinking
• Engage thinking on the right side of your brain (intuition, open-mindedness, visual perception,
rhythm . . .).
• Change your interpretation of an event, situation, behavior, person, or object.
• Allow ideas to incubate.
• Be open to insight as ideas pop into your mind.
Imagining
• Brainstorm by generating ideas with a group of people.
• Ask, “What would happen if . . .”
• Ask, “In how many different ways . . .”
• Develop ideas and expand their possibilities.
• Envision the future.
Speaking and Writing
• Use your words and your “voice” when conveying your original ideas.
• Avoid using clichés or overly familiar responses to questions or problems.
• Explain how your ideas move beyond the status quo and contribute to a discussion.
• Take notes.
Drawing
• Use mind-mapping to capture ideas; start with a key concept and write it in the center of your
page; use connecting lines, radiating from the central concept, and write down any connected
or related ideas that come to you.
• Create pictures or drawings of situations (“rich pictures”) to show them in a different way.
Learning
• Find ways to demonstrate your personal investment in projects.
• Gather knowledge and conduct research.
• Have more fun learning!
Moving
• Do physical activities to engage the creative areas of your brain and think differently.
Resting
• Take breaks.
Dimensions of Creative Style
VALUING DIVERSITY IN THINKING:
Here are four tips for getting the most from your own and others’ thinking diversity:
1. Expect it and plan for it so you’re not quite so surprised when you face it. Awareness can
keep you from having a knee-jerk reaction or jumping to conclusions.
2. Look for the learning you can get from different perspectives: What might you overlook
without them? That, alone, may encourage you to seek out differences.
3. Keep in mind this process requires a mental stretch. If you’re irritated, the other person
probably is, too. You both have to stretch to bridge the thinking divide, so recognize what’s
happening and cut each other some slack.
4. Unique is normal—so have fun with it! In nearly every discussion we have with clients, they
share stories of how recognizing and valuing thinking diversity has helped them lighten up
about it. They realize the differences aren’t personal, it’s just “where she’s coming from”
THINKING PREFERENCES:
The awareness of one’s own thinking preferences and the thinking preferences of others, combined
with the ability to act outside of one’s preferred thinking preferences is known as “Whole Brain
Thinking.”
The model was developed by Ned Herrmann. Using brain research developed by others and his own
studies, Herrmann discovered that there were four patterns that emerged in terms of how the brain
perceives and processes information. The Whole Brain Thinking is a methodology designed to help
thinkers, teams and organizations better benefit from all of the thinking available to them. It
acknowledges that while different tasks require different mental processes, and different people prefer
different kinds of thinking, organizations will get better results when they can strategically leverage the
full spectrum of thinking available.
Each person (yes, you!) has thinking preferences, some strong, others intermediate. Those preferences
develop into dominances, and without the awareness of those preferences, you may fall victim to blind
spots when it comes to other people’s ways of thinking. But Whole Brain Thinking reminds us that
everyone has access to all four ways of thinking. Applying Whole Brain Thinking means being able to
fully leverage one’s own preferences, stretch to other quadrants when necessary, and adapt to and take
advantage of the preferences of those around you to improve performance and results.
COGNITIVE BIASES OF CREATIVITY:
A cognitive bias is a mistake in reasoning, evaluating, remembering, or other cognitive process, often
occurring as a result of holding onto one's preferences and beliefs regardless of contrary information.
There are many cognitive biases that should be avoided for creative thinking. Some of the cognitive
biases are given below:
1. Conservatism Belief: When old established information is favoured above new more recent
information.
2. Dunning-Kruger Effect: When unskilled people overestimate their skills and skilled people
underestimate theirs.
3. Functional Fixedness: Limits the use of an object to what it is designed for. Absence of this bias
is one of the markers for increased creativity. And the practice of relinquishing the bias can help
you boost creative thinking.
4. Hyperbolic Discounting: This is the tendency to favour short-term immediate gains over longer
term gains. Leads to poor long-term decisions.
5. Planning Fallacy: The tendency to underestimate the time it will take to complete certain tasks.
Cognitive Biases that Impact Innovation
Our everyday decisions, and those of our colleagues, our consumers, and our families are
constantly influenced by hundreds of cognitive biases.
1. Mere Exposure; We like things we are familiar with. So the more we have seen something, the
more we will like it. It’s one reason why advertising works, as it makes things more familiar,
and hence makes us more likely to choose them. A similar bias is the availability cascade,
where if we repeat something enough, it becomes true.
2. Backfire effect when people react to evidence that challenges their opinion by strengthening
their existing beliefs. Closely related is irrational escalation, a phenomenon where people
justify increased commitment to a course of action based on prior investment, even in the face
of new evidence suggesting that the original action was wrong. If you innovate for long enough,
you’ll find these somewhere!
3. Illusory Correlation, or False Cause Fallacy: Inaccurately perceiving a relationship between
two unrelated events, often because they occur in close temporal proximity. Correlation does
not mean causation, but we are wired to make that connection. Often harmless, it can lead to
superstitions like a lucky jacket. However, it can also be a barrier to innovation, particularly in
situations where a new product is incorrectly linked to background problems that routinely
occur, but become more visible simply because the innovation focuses more attention on the
whole usage experience. For example, linking vaccination to Autism, or a new drug to apparent
side effects, such as an upset stomach, which in reality would have occurred with or without the
drug
4. Confirmation bias is the tendency to search for, or interpret information in a way that confirms
our preconceptions. Expectation bias is closely related, and is the tendency for experimenters to
believe data that agree with their expectations for the outcome of an experiment, and to
disbelieve and discard data that appear to conflict with those expectations
5. Functional fixedness limits a person to using an object only in the way it is traditionally used.
The killer application of many inventions is not the one it was originally created for. Being able
to see though this bias can be a huge enabler for innovation, whether it leads to the Post-It note,
or James Dyson’s use of centripetal separation in his vacuum cleaner.
6. Framing effect: We draw different conclusions from the same information, depending upon on
how or where that information is presented. Most people would rather have a surgery that has a
90% survival rate than one that has a 10% mortality rate. We prefer a car with a 99% reliability
record than one that breaks down more than 3 days a year! We are used to framing, or spinning
in politics (are you pro choice or pro life?), but it also matters when you are pitching an idea,
service, or a new innovation.
7. Context Effect: Never go shopping when you are hungry, you will buy more calories! People
who are happy will respond to an innovation differently to people who are frustrated.
Refreshed people are more open to new ideas, while tired people are more likely to fall back on
old habits. Context is also crucial for Innovation research. Data generated in a lab, a focus
group, or when someone is wired up to an EEG machine or brain scanner, will often be different
to behavior in the real world.
8. Zero-risk bias: We prefer reducing a small risk to zero over reducing a big risk to a small one.
We also love things that are free, which is a close cousin to zero risk. Whether it is free
shipping, 20% extra free, buy one get one free, or a money back guarantee, we are tapping into
this bias. This is closely related to Prospect Theory for anyone who wants to dig a little deeper.
9. Distinction bias is the tendency to view two options as more dissimilar when evaluating them
side by side than when evaluating them separately. This is important for research, where we
often compare different option in close proximity, when in the real world they may never be
seen together. Also related to, “the new prototype is 5x better than the old one”. Making big
improvements is a faulty prototype can be seductive to a team who has put their all into the
improvement. But this doesn’t matter to a potential customer who never saw the old prototype.
All that matters to them is how we compare to the market. This is also related to the Relativity
bias, which is the tendency to make relative, rather than absolute evaluations.
10. Mental accounting The tendency to value things differently based on what internal
classification we put on them. The way we think of money is different depending upon whether
we are paying cash or using a credit card. We think of value differently for luxury versus
commodity items. Framing an innovation to match the right internal classification for potential
buyers can be the difference between success and failure just as much as the innovation itself.
11. Hyperbolic discounting the tendency for people to have a stronger preference for more
immediate payoffs relative to later payoffs. This bias for short-term gains probably made a lot
of sense on the savannah, but today it contributes to obesity, poor diet, lack of compliance to
life saving medications, even texting and driving.
12. Endowment effect and Loss Aversion Bias: People often demand much more (often 2x) to give
up an object than they would be willing to pay to acquire it. A bird in the hand is worth two in
the bush, even if we are given a guarantee that we’ll get the ones in the bush later. Giving
someone a bonus, and then taking it back if somebody doesn’t meet a goal is often more
powerful than giving them the same bonus if they do.
13. Planning Fallacy the tendency to underestimate task-completion times and cost. I suspect
we’ve all experienced this in some form, but it never seems to completely go away!
14. Peak End Rule. We tend to remember things in terms of the peak (negative or positive)
experience in the process, and the end result. So a medical procedure may be remembered by
the most intense moment of pain, and how it ended, rather than for little bursts of pain that
occurred throughout. An innovative meal by the first bite of an amazing dish, and the check! It
is worth thinking about the experience with our innovations from peak end perspective, which
also embraces the weakest link.
15. Availability heuristic: We estimate what is more likely by what is more available in memory,
which is in turn biased toward vivid, unusual, or emotionally charged examples, or recall driven
by current context. This is really important for advertizing, as we remember things that were
encoded into memory under similar conditions to where we are at the moment, so there is a lot
of value of connecting advertizing to the point of purchase, or in creating advertizing where our
innovation is associated with vivid emotional events (ideally positive)
16. Rhyme as reason effect rhyming statements is perceived as more truthful and/or more likeable.
Rhyme all the time, your innovation will shine!
17. Dunning Kruger effect where incompetent people fail to realize they are incompetent because
they lack the skill to distinguish between competence and incompetence. Common when people
are moved to areas that are new with the same responsibility they had in their old space, and
when people are promoted beyond their abilities. I’ve been fortunate to only have to deal with
this in a small number of occasions, but when I have, there has been a somewhat irrational
comfort in being able to give it a name!
18. Information bias is the tendency to seek information even when it cannot affect action. This
delays action, and hence risk, and the potential for loss or blame, but of course, also slows down
innovation.
19. Knowledge bias the tendency of people to choose the option they know best rather than the best
option. As innovators, overcoming this bias can be the key to disruption, as looking in
unexpected places is more likely to drive big, innovative leaps.
20. Bandwagon effect the tendency to do (or believe) things because many other people believe the
same. Not always a bad idea. If everyone believes something is poisonous, you may not want
to eat it, and crowd sourcing can be a powerful tool. However, challenging widely held givens
can also be a way to be at the front of the crowd, rather than following it.
CREATIVITY STYLES:
SETTING THE STAGE FOR SUCCESS:
• Basic philosophy
• Having a vision
• Setting the right attitude
• Recognizing and avoiding mental blocks
• Avoiding mindsets
• Risk taking
• Paradigm shift and paradigm paralysis
• Individual and teamwork
SETTING THE RIGHT ATTITUDE:
• Remember that YOU control your attitude.
• Adopt beliefs that frame events in a positive way.
• Create a "library" of positive thoughts.
• Avoid angry or negative media.
• Ignore whiners and complainers.
• Use a more positive vocabulary.
RECOGNIZING AND AVOIDING MENTAL BLOCKS:
An inability to recall something or to perform a mental action is termed as mental block. Mental blocks
can be caused by physical disabilities or simply a lack of focus. Mental blocks are also often used to
describe a temporary inability to recall a name or other information.
Recognizing Mental Blocks:
1. Perceptual blocks
• Stereotypes – This is a broad category that consists of seeing what you expect to see.
Stereotyping is an efficient form of decision making in many cases, but prevents you from
seeing what is really there.
• Excess information – Key information may be difficult to isolate from the environment.
There is a huge amount of information to be processed by your brain and knowing which
information will be important in the future can be difficult.
• Boundaries – Some problems are difficult to analyze because the frame around the
problem is the wrong size. The think-out-of-the-box metaphor speaks to this block.
Sometimes clarity comes from expanding the boundaries, but sometimes it comes from
narrowing the boundary. May organizations carry a bias towards convergence that
reinforces the tendency to look at problems more narrowly. The boundaries that are
established can have a large effect on the potentials solutions that can be imagined.
• Limited perspective – The importance of a problem will differs to different people, as does
what is important about a problem. The inability to empathize with other perspectives and
interests blocks you from a complete view of the problem.
• Capacity – You are constantly flooded with information and so select which things to
attend to and remember. As a consequence, you forget much more than you remember. In
some cases, people are actually trained to ignore details, but mostly they just pay less
attention.
• Limited attention to the senses – Most people is strongly visual and use their other four
senses much less intently. Some professions (e.g., cooking, mechanical repair) require
development of other senses, but in most business settings vision and hearing dominate
sensory input.
2. Emotional blocks:
• Fear – expressing an idea is personal risk (of looking ignorant or foolish). There may also
be fear of future failure and loss of money (or something equivalent).
• Discomfort with chaos – Often new ideas are unclear and increase ambiguity, before they
increase clarity. Anticipation of an increased feeling of chaos hinders people and groups.
Most people are more comfortable with order and expect problem solving to increase
order. The fact that the first stages of problem solving often increase disorder causes
trouble.
• Reluctance to incubate – People want to immediately judge ideas, reach conclusions and
take action. Better ideas that come out after the action begins are ignored. The feeling is
that it is too late, nobody wants to go “backwards”. In a related way, people resist working
on the problem for a while to get “primed”, and then take a break to let the mind “work on
the problem”. This may be based on the sense that this incubation requirement is an
indication of being less intelligent or committed.
• Lack of focus – People who are multi-tasking will struggle to generate the focus required
to really think about the problem. Distractions clog short-term memory and prevent ideas
from being noticed or novel connections between ideas from being made.
3. Cultural and environmental blocks
These blocks may simply prevent people from expressing their ideas out of concern about
upsetting the group. When the block is stronger, it may prevent people from even thinking about
the blocked area. Examples of these blocks include:
• Taboos – These are primarily unspoken social norms that are defended by the group.
Certain words are never used and some topics are never brought up in groups. The
absence of these sources of inspiration or clarification blocks thinking.
• Commitment to being serious – Humor is based on a discontinuity with expectations. So is
creativity. By keeping all interactions serious, individuals and groups block themselves
from discussions about “silly” insights that make have useful implications.
• Logic & reason – Logic is very powerful and most adults and organizations believe that
they are governed by logic. Excess attachment to reason prevents individuals from
accessing “hunches” about solutions. More importantly, the attachment prevents people
from expressing their hunches.
4. Intellectual and Expressive blocks:
• Using the wrong “language” to think about the problem – Some problems are best
examined in visual terms, while others are suited for mathematical analysis. However,
most people default to thinking about problems using words. While suitable in some cases,
many problems are nearly impossible to solve when words are the sole medium of
approach. More generally, attempting to think about a problem in the “wrong” language
blocks us from potentially understanding the problem or expressing the solution.
• Overuse of a few thinking patterns – One of the most popular thinking strategies in
business is analysis: the process of “taking apart”. But the solutions for many problems
require a different thinking strategy. People with relatively few thinking strategies are
blocked in their ability to create ideas. The book lists over 60 thinking strategies, which
are basically verbs that describe different actions. Sample verbs/strategies include
combine, select, visualize, vary and cycle.
• Incorrect and incomplete information – Because the quality of a solution is often
dependent on the quality of the inputs, poor quality information can block development of
a proper solution. It is often forgotten that it is more common for errors to propagate
through an analysis than it is for good information to “cancel” bad information.
AVOIDING MENTAL BLOCKS:
AVOIDING MINDSETS:
7 real life fixed mindset mistakes and how to avoid doing them
1. Fixed mindset: Thinking that you can’t develop in something.
Growth mindset: Whatever it is, you can always develop in it, even if it’s simply figuring out
how to do it more efficiently or differently. If you want to become more of an extrovert, learn
about how to socialize and find events which you find interesting to network in. If you want to
improve your fitness, work with a personal trainer, like Oitoo, to come up with a suitable
training scheme.
2. Fixed mindset: Being obsessed with being perceived a certain way, such as “smart”.
Growth mindset: Be the real authentic you. The thoughts people have of you shouldn’t matter.
And if you focus on learning and growing, I guarantee you will be appreciated and seen in a
completely different positive light for wanting to continuously develop and grow.
3. Fixed mindset: Avoid challenges for fear of failure.
Growth mindset: Take up challenges as an opportunity to learn. If you don’t fail, you’re less
likely to learn. So take risks, look for challenges and try things differently. You’re more likely
to discover the real gems that will make you succeed and it will be a hell lot more fun too!
4. Fixed mindset: Give up easily.
Growth mindset: Persist at the things you want most. Don’t let obstacles stop you but motivate
you further. Most things worth having don’t come easily.
5. Fixed mindset: See effort as something untalented people have to do.
Growth mindset: Effort & hard work will get you where you want to go. And when you’ve put
hard work into it, good results will taste so much sweeter.
6. Fixed mindset: Ignore useful negative feedback.
Growth mindset: Use feedback to help you progress forward. Your friends, customers, and
managers want to help you to improve, so listen to the feedback they have for you.
7. Fixed mindset: Feel threatened by others’ success.
Growth mindset: Get inspired and learn from them instead. Ask them how they got to where
they are and what were their secrets behind their success. Learn from their learning.
RISK TAKING:
The act or fact of doing something that involves danger or risk in order to achieve a goal. Starting a
business always involves some risk-taking.
Reasons why risk taking leads to success:
1. Unforeseen opportunities often come from risk-taking.
2. Taking risks shows confidence and helps you stand out.
3. We learn from risks and those lessons may lead us on an important, new path.
4. Success won't fall in your lap, you have to pursue it.
5. You don't achieve your dreams by playing it safe.
6. Embracing risk-taking helps you overcome a fear of failure.
PARADIGM SHIFT AND PARADIGM PARALYSIS:
Think of your favorite fruit. Imagine that for as long as you could remember, your favorite fruit was an
apple. Not just any type of apple - it had to be a Granny Smith apple! You loved the bright green color,
the scent of the apples in the fruit market, the crisp juicy crunch, and the mixture of sweetness and
tartness that was just the right balance. You were sure that Granny Smith apples were simply the most
perfect fruit ever created.
Then, you visited a tropical island, and in the village where you stayed, there was a whole new and
wonderful rainbow of fruits available for you to taste. There were fruits that you had heard of before,
but had never tasted, like plantains, papayas, and mangoes. Then there were others still that you had
never even heard of before, like kumquats, rambutans, lychees, and dragon fruit. You tried them all,
and guess what? You found out that you loved mangoes even more than Granny Smith apples! You
have just experienced what is known as a paradigm shift.
A paradigm is a perception or a group of ideas about how things should be done, made, or thought
about. In other words, it's your perspective on the world, your point of view, or your beliefs about
what's true. A paradigm shift occurs whenever there's a significant change in the way an individual or
a group perceives something, and the old paradigm is replaced by a new way of thinking, or a new
belief.
Individuals have their own personal paradigms, or lenses through which they view the world.
Corporations and other organizations have corporate paradigms regarding the methods by which they
believe their goals will best be accomplished. Likewise, cultural communities have cultural
paradigms that include their sets of beliefs about themselves, about others, and about the world.
A paradigm shift (also radical theory change), a concept identified by the American physicist and
philosopher Thomas Kuhn (1922–1996), is a fundamental change in the basic concepts and
experimental practices of a scientific discipline. A fundamental change in an individual’s or a society’s
view of how things work in the world is called paradigm shift.
The 6 major paradigm shifts:
❖ Push to pull.
❖ Consume to Create
❖ Assets to Access
❖ Linear to Complex
❖ Scarcity to Abundance
❖ Universal to Unique
1. Push to pull is the shift from pushing structures and products to pulling in resources and demand. We
are moving from marketing existing stocks to manufacturing on demand; shifting from top-down
allocation to pulling resources for projects; moving from fixed structures to varying constellations, and
understanding and responding to emergent patterns of user behavior.
2. Consume to create is the shift from passively consuming to actively contributing and creating. We
are shifting to a more participatory experience, in which the customer is actively involved, co-creating
the product or experience. People are using their cognitive surplus to create communal projects such as
Wikipedia and open-source software.
3. Assets to Access is the shift from acquiring and hoarding knowledge to spreading and sharing
knowledge. In education, it means shifting from memorizing facts to knowing where to find
information. The new skill is searching for and evaluating information. In media, we see a shift from an
emphasis on authoring to an emphasis on curating. In scientific research, the difficulty has shifted from
being able to find data to navigating and mining massive databases.
4. Linear to complex is the shift from independent and predictable systems to interdependent adaptive
systems. We are transitioning from seeing the world in a linear way, in which small causes have small
effects and large causes have large effects, to realizing that it’s perfectly possible for large marketing
campaigns to have almost no result, while small things go viral and flood the market. When we are
moving from a predictable world to a world that is unpredictable in principle, we must shift our strategy
from planning to prepare.
5. Scarcity to abundance is the shift from scarce natural resources to using natural abundance. Where a
specific situation may have had a limited set of choices, it now specializes on an abundance of
renewable resources.
6. Universal to unique is the shift from mass production to tailored and individualized artifacts. In the
health-care field, it is shown by the emergence of individualized medicine tailored to the genetic make-
up of the user, and by the rise of individual quantified self-data. In terms of consumer empowerment, it
is the possibility to design your own clothes, shoes, consumer products, and to 3D-print your own
version of consumer goods.
Paradigm paralysis refers to the refusal or inability to think or see outside or beyond the current
framework or way of thinking or seeing or perceiving things. Paradigm paralysis is often used to
indicate a general lack of cognitive flexibility and adaptability of thinking.
8 Steps to Thinking Creatively: Overcoming Paradigm Paralysis:
1. Look at a problem in many different ways. Much like Leonardo da Vinci did in looking
at his creations from multiple vantage points. He drew the different points of view. (And
the added benefit if you draw is that maybe someday you will be famous too.)
2. Make your thoughts visible. Diagrams are an excellent tool to make your thoughts
visible.
3. Produce a lot. And this means a lot. Edison is famous for this as is Issac Asimov, who
wrote 450 books.
4. Combine Things in new ways. New relationships of well-known concepts or ideas may
spark something for you. It worked for Albert Einstein with E=mc2
. No one had thought of
combining energy, mass and the speed of light together.
5. Force Relationships. Samuel Morse came up with the solution to weak telegraph signals
one day by watching a team of horses being switched out at a relay station thus getting the
idea of boosting the signal as it went along the wires.
6. Think in opposites. What if we ate dessert before dinner or we grew younger rather than
older. How might this apply to incentives versus rewards?
7. Think metaphorically. Can you recognize resemblances between very different
situations? Take a lesson from Aristotle.
8. Prepare for the benefits of chance. Chance happens. As Louis Pasteur said “Luck favors
the prepared mind.”
TEAM WORK: Importance of teamwork is as follows:
➢ Teamwork motivates unity in the workplace.
➢ Teamwork offers differing perspectives and feedback.
➢ Teamwork provides improved efficiency and productivity.
➢ Teamwork provides great learning opportunities.
➢ Teamwork promotes workplace synergy.
The Basics of Creative Problem Solving – CPS
Creative problem solving isn't just brainstorming, although that's what many people may associate it
with. It's actually a well-defined process that can help you from problem definition to implementing
solutions, according to Jeffrey Baumgartner.
Creative ideas do not suddenly appear in people’s minds for no apparent reason. Rather, they are the
result of trying to solve a specific problem or to achieve a particular goal. Albert Einstein’s theories of
relativity were not sudden inspirations. Rather they were the result of a huge amount of mental problem
solving trying to close a discrepancy between the laws of physics and the laws of electromagnetism as
they were understood at the time.
Albert Einstein, Leonardo da Vinci, Thomas Edison and other creative geniuses have always worked in
the same way. They do not wait for creative ideas to strike them. Rather they focus on trying to solve a
clearly stated, at least in their minds, problem. This is just like important TED talks to ideate for
business innovation specifically discussed to get a better solution for existing problems.
This approach has been formalized as Creative Problem Solving (CPS). CPS is a simple process that
involves breaking down a problem to understand it, generating ideas to solve the problem and
evaluating those ideas to find the most effective solutions. Highly creative people tend to follow this
process in their heads, without thinking about it. Less naturally creative people simply have to learn to
use this very simple process.
A 7-step CPS framework
Although creative problem solving has been around as long as humans have been thinking creatively
and solving problems, it was first formalized as a process by Alex Osborn, who invented traditional
brainstorming, and Sidney Parnes. Their Creative Problem Solving Process (CPSP) has been taught at
the International Center for Studies in Creativity at Buffalo College in Buffalo, New York since the
1950s.
However, there are numerous different approaches to CPS. Mine is more focused on innovation (that is
the implementation of the most promising ideas). It involves seven straightforward steps.
CPS Steps
• Clarify and identify the problem
• Research the problem
• Formulate creative challenges
• Generate ideas
• Combine and evaluate the ideas
• Draw up an action plan
• Do it! (implement the ideas)
Let us look at each step more closely:
1. Clarify and identify the problem
Arguably the single most important step of CPS is identifying your real problem or goal. This may
seem easy, but very often, what we believe to be the problem is not the real problem or goal. For
instance, you may feel you need a new job. However, if you break down your problem and analyse
what you are really looking for, it may transpire that the actual issue is that your income does not cover
your costs of living. In this case, the solution may be a new job, but it might also be to re-arrange your
expenses or to seek a pay rise from your existing employer.
2. Research the problem
The next step in CPS is to research the problem in order to get a better understanding of it. Depending
on the nature of the problem, you may need to do a great deal of research or very little. The best place
to start these days is with your favorite search engine. But do not neglect good old fashioned sources of
information and opinion. Libraries are fantastic for in-depth information that is easier to read than
computer screens. Friends, colleagues and family can also provide thoughts on many issues. Fora on
sites like LinkedIn and elsewhere are ideal for asking questions. There’s nothing an expert enjoys more
than imparting her knowledge. Take advantage of that. But always try to get feedback from several
people to ensure you get well-rounded information.
3. Formulate one or more creative challenges
Creative challenges should be simple, concise and focus on a single issue. For example: “How might I
improve my Chinese language skills and find a job in Shanghai?” is two completely separate
challenges. Trying to generate ideas that solve both challenges will be difficult and, as a result, will
stifle idea generation. So separate these into two challenges: “How might I improve my Chinese
language skills?” and “How might I find a job in Shanghai?” Then attack each challenge individually.
Once you have ideas for both, you may find a logical approach to solving both problems in a
coordinated way. Or you might find that there is not a coordinated way and each problem must be
tackled separately.
4. Generate ideas
Finally, we come to the part most people associate with brainstorming and creative problem solving:
idea generation. And you probably know how this works. Take only one creative challenge. Give
yourself some quiet time and try to generate at least 50 ideas that may or may not solve the challenge.
You can do this alone or you can invite some friends or family members to help you.
5. Combine and evaluate ideas
After you have written down all of your ideas, take a break. It might just be an hour. It might be a day
or more. Then go through the ideas. Related ideas can be combined together to form big ideas (or idea
clusters). Then, using the criteria you devised earlier, choose all of the ideas that broadly meet those
criteria. This is important. If you focus only on the “best” ideas or your favorite ideas, the chances are
you will choose the less creative ones! Nevertheless, feel free to include your favorite ideas in the
initial list of ideas.
6. Draw up an action plan
At this point, you have some great ideas. However, a lot of people have trouble motivating themselves
to take the next step. Creative ideas may mean big changes or taking risks. Some of us love change and
risk. Others are scared by it. Draw up an action plan with the simple steps you need to take in order to
implement your ideas. Ideas that involve a lot work to implement can be particularly intimidating.
Breaking their implementation down into a series of readily accomplished tasks makes these ideas
easier to cope with and implement.
7. Do it!
This is the simplest step of all. Take your action plan and implement your idea. And if the situation
veers away from your action plan steps, don’t worry. Rewrite your action plan!
Diversity of thought
What is Diversity of Thought? “The idea of more than one way”
Diversity of thought—the idea of more-than-one-way— is key to understanding the potential
of diversity and inclusion as an organizational resource. The way each of us interprets and negotiates
the world around us is informed by our identity, culture and experience.
Diversity of thought allows for differing perspectives on ideas and unique insights into problems. It
creates opportunities for innovation, and partnerships in unexpected places. It allows you to take a
"reality check" before plunging into new activities. Most important, it helps avoid groupthink. It
encompasses the idea that different ideas, even conflicting ideas, will rub and bump against one
another. Eventually this collision will instigate newer and more forward-thinking ideas that can be
implemented as successful business strategies.
Here are four tips for getting the most from your own and others’ thinking diversity:
• Expect it and plan for it so you’re not quite so surprised when you face it. Awareness can keep you
from having a knee-jerk reaction or jumping to conclusions.
• Look for the learning you can get from different perspectives: What might you overlook without
them? That, alone, may encourage you to seek out differences.
• Keep in mind this process requires a mental stretch. If you’re irritated, the other person probably is,
too. You both have to stretch to bridge the thinking divide, so recognize what’s happening and cut
each other some slack.
• Unique is normal—so have fun with it! In nearly every discussion we have with clients, they share
stories of how recognizing and valuing thinking diversity has helped them lighten up about it. They
realize the differences aren’t personal, it’s just “where she’s coming from.”
How to Creating a Culture that Embraces Diversity of Thought
• Encourage open discussion
• Explore all problems from the four-point sequence – beginning with What do you know
• Assign roles for asking difficult questions (have a devil's advocate)
• Reward truth speakers
• Train staff for the art of the difficult conversation
• Invite new perspectives to discussions
• Build in time to reflect and revisit tough decisions
When defining or considering how best to execute organizational diversity of thought management or
strategy, there are some best practices associated with executing this kind of diversity:
Evaluate opportunity - Not every decision requires multiple, diverse perspectives to ensure that it’s
solid.
Determine the perspectives needed - When considering whom to invite to exploratory meetings,
include those who will be impacted by the decision or who have pertinent knowledge.
Identify information-gathering mechanisms - How a team gathers diverse perspectives will
depend on who the audience is. Teams can leverage multiple tools from survey products, to
intranets, to email systems and telephone conferencing capabilities to gather and deliver
information. When the number of participants is small, real-time conversations are ideal.
Challenges to Implementing Diversity of Thought
Challenge: Grasping that Executive Leadership and Subject Matter Experts (SME) may not always
have the right answer
➢ An understated challenge may be getting the leadership to admit that he or she doesn’t hold
all the answers. According to IBM’s “Leading through Connections” study, more CEOs
rely on their workforces to provide the full picture. In the meantime, the workforce is
hungry for more ways to fully collaborate with their organizations; they want to have a real
stake in the company’s success.
➢ Professor Scott E. Page has used mathematic models showing that "diversity trumps
ability". His case studies have demonstrated that strong teams of diverse individuals have
better problem solving skills than teams of more qualified people that come from the same
perspective.
➢ Businesses generally tend to link innovation with a creative drive that is exclusive to the
top and brightest talent, however, scientific research confirms that true innovation thrives in
an inclusive culture that values diverse ideas, leverages unique perspectives and invites
everyone to achieve collaborative breakthroughs across the entire organization.
Pattern Breaking
We base our thinking on past experiences. In our everyday life this is good; it makes us efficient at
performing tasks. However, when it comes to thinking of new ideas it can inhibit our creativity because
we automatically revert to past patterns of thinking based on what we know has worked before. If we
are going to be genuinely creative and come up with something new we need to break our current
patterns of thinking. Therefore, the wider we look for inspiration and the more new connections we
open up to, the more likely we are to come up with genuinely new ideas. The same can also be said
when we are searching for a solution to a specific problem. If we deliberately work to break our
patterns of thinking in our everyday lives we will be better equipped with a resource of experiences
from which we can draw when we are required to think more creatively.
Tips to help us all break patterns.
• Read a different newspaper or magazine – read something as different as possible to your
‘normal’ paper or magazine and note the differences.
• Watch a film that you wouldn’t usually watch – maybe a different genre, or a film with
subtitles, or ask someone else to choose for you as long as it’s different from your normal
preferences. Then talk about how you feel about it. Were you pleasantly surprised or bored to
tears? Think about why
• Take up a new activity – as long as it’s new, it doesn’t matter what it is. What have you been
meaning to do –singing, dancing the tango, or learning a new language?
• Go for coffee or lunch with a colleague who works in a different team and who will have a
different perspective. If you don’t normally go out for coffee or lunch all the better, and if you
do go out regularly then go somewhere new.
• Ask children – children are more creative than adults because they haven’t got such ingrained
patterns of behavior. They are not afraid to ask why and they will certainly have a different
perspective on a problem.
• Take a different route to work ¬ you will have a different experience, encounter different people
and break some of the most ingrained everyday patterns in your life.
• Cook a new recipe – use ingredients that you have never tried before. If you are not a natural
chef, take a cookery lesson, or eat out in a restaurant that you have never been to.
• Listen to a different radio station – try one that is totally different to your normal preference.
Listen to it for a week. Then change again.
• Get out of your normal environment for a set time every week. Go and work from the local
coffee shop, hold a meeting in the park, hot-desk in a different department.
• Take a walk in the park during office hours. Deliberately change the pace of your thinking.
Take time to ponder.
• Listen to the music charts – do you know what’s number one at the moment? No, me neither.
Find out; amaze your colleagues.
• Do lateral thinking puzzles – these puzzles are scenarios which give you a small amount of
information and you then have to try and figure out what is going on by asking questions. They
help to challenge your assumptions and force you to approach a question in a different way.
There are many books and web resources including Destination Innovation from Paul Sloane
(Sterling Publishing, London, 1991.
MODULE 2
IDEAS AND OPPORTUNITY
Module 2 (a)
Difference between an innovative idea and a business opportunity
An idea is the first milestone in the process of founding a business. Every successful business started as
someone’s idea. A business idea is a concept that can be used to make money. It has no commercial
value initially. It centers on a product or service that can be offered for money. Most business ideas
exist in abstract form; usually in the mind of its creator or investor and not all business ideas, no matter
how brilliant they may seem, would end up being profitable.
A promising business idea must have the following characteristics:
• Relevant
• Innovative
• Unique
• Clear focus
• Profitable in the long run
Any business idea that, at least, focuses on lowering costs would most likely be profitable in the long
term. A successful business idea must meet the following three conditions:
➢ It must offer benefit to the customer by solving a problem or fulfilling a need. Customers buy
products and services for just one reason; to satisfy a need. So, if your business idea cannot
satisfy customers, it won’t be successful. Every successful business idea must have a unique
selling proposition.
➢ It must have a market that is willing to accept it. A promising business idea must offer a
product or service that would be accepted by a large market. It must also have feasible
arrangements for catering to that large market as well as unique values that differentiates it
from the competition.
➢ It must have a mechanism for making revenue. A successful business idea must show how
much money can be earned from it and how the money will be earned.
The acceptability and profitability of a business idea hinges largely on how innovative the idea is.
Being innovative means using conventional production or distribution methods that have rarely been
adopted before.
For example, FedEx revolutionized mail post services through 24-hour operation and very quick
delivery worldwide. The company therefore adopted an innovative system, which eventually spurred it
to becoming one of the world’s leading mail and parcel delivery services.
A business opportunity is a proven concept that generates on-going income. In other words, a business
opportunity is a business idea that has been researched upon, refined and packaged into a promising
venture that is ready to launch.
An opportunity is regarded as one after it has been found to meet the following criteria:
• It must have high gross margins.
• It must have the potential to reach break-even cash flow within 12 months – 36 months.
• The startup capital investment must be realistic and within the range of what you can provide.
• You must have the strength and ability needed to drive the business to success.
• Your level of enthusiasm for the business must be very high.
• It must have the potential to keep on improving with time.
• It must have a low level of liability risk.
Multiple business ideas may strike on a daily basis, but only few of them will be profitable in the long
run based on market research and feasibility study conducted. These few are the real business
opportunities.
Eg:- Colonel Sanders tried for many years to sell his chicken recipe idea but no one listened to him
until he repackaged it and KFC (Kentucky Fried Chicken) was born.
How to prepare, plan, define and implement a business idea?
Business ideas are all within you and within your environment. Some of these business ideas emanate
from analysis of market and consumer needs, while others emanate from a long research process.
• Look within yourself and examine your skills, talent, passion
• Keep up with current events and be ready to take advantage of business opportunities
• Invent a new product or service
• Add value to an already existing product
• Franchising: Franchising may take several forms, but the most interesting one is the type that
offers a name, method of running business, image and operating principles.
• Mass media
• Exhibitions, Expos and Trade shows : means to discover business ideas and opportunities
• Industrial Surveys: The main point for a new business idea should be the customer.
• Listen to customers complaints
• Brainstorming: Brainstorming is a creative problem-solving technique, and also a source for
generating ideas.
HISTORY OF IDEAS
DEVELOPMENT OF IDEAS IN HISTORY (POST-IT NOTES, COKE BOTTLES)
Post it notes: History Timeline:
For over 35 years, the Post-It Brand has helped people be more productive, communicate better and
express themselves in a number of creative ways.
• Dr. Spencer Silver, a 3M scientist, who was busily researching adhesives in the laboratory.
Discovered something peculiar: an adhesive that stuck lightly to surfaces but didn’t bond tightly
to them.
• What Silver discovered was something called microspheres which retain their stickiness but
with a "removability characteristic," allowing attached surfaces to peel apart easily.
• Meanwhile, Art Fry, another 3M scientist, who was frustrated needed a bookmark that would
stick to the paper without damaging the pages.
• Partnering with Silver, they began developing a product. Once they found themselves writing
messages on their new notes to communicate around the office, they realized the full potential
of the idea.
• Fry supplied the entire company with the new adhesive notes. Employees loved them.
• 3M initially launched the product in four cities under the name Press 'n Peel with mixed results.
• 1980 to 1986: The notes was always a self-advertising product because customers would put the
notes on documents they sent to others, arousing the recipient's curiosity.
• Yellow Gets Its Due: On April 6, Silver and Fry’s unsung hero debuted in US stores as Post-it
Notes. Later Notes are introduced in Canada and Europe.
• 1987 to 1996: The Post-it Note celebrated its 10th anniversary and was featured on many lists of
top consumer products of the decade.
• Post-it Easel Pads were introduced. 1997 to 2003
• Post-it Notes are sold in more than 100 countries. The now famous Post-it adhesive continues to
be used on many 3M products.
• Post-it Super Sticky Notes were introduced with a stronger adhesive that adheres better to
vertical and non-smooth surfaces.
• The Post-it Flag Highlighter received high marks from students for being a highlighter.
• The Post-it Big Pad made its debut.
• Post-it Brand teamed up with Evernote, the organizational note-taking app.
• Post-it Notes are now available in more than 150 countries. Collectively, there are more than
4,000 Post-it Products.
COKE BOTTLES:
Coca Cola’s history has got a lot of bottle - more than 115 years’ worth, in fact. The world’s favorite
soft drink started life as a soda fountain beverage, selling for five cents a glass, but it was only when a
strong bottling system developed that Coca-Cola became the world-famous brand it is today.
• 1894 - A modest start for a bold idea: Mississippi shop owner Joseph A. Biedenharn began
bottling Coca-Cola after he was impressed by its sales. He sold the drink to his customers in a
common glass bottle called a Hutchinson.
• 1916 - Birth of the Contour Bottle: Bottlers worried that a straight-sided bottle wasn’t
distinctive enough and that Coca-Cola was becoming easily confused with ‘copycat’ brands.
Glass manufacturers were approached to come up with a unique bottle design for Coca-Cola.
The Root Glass Company of Terre Haute, Indiana, designed with the famous contour shape,
which won enthusiastic approval from Coca-Cola in 1915 and was introduced in 1916.
• 1923 – Six packs: Six pack carriers of Coca-Cola bottles were introduced to encourage people
to take their drinks home – and were a huge hit.
• 1928 – Bottle overtakes fountain: For the first time, the volume of Coca-Cola sold in bottles
exceeded the amount sold through soda fountains.
• 1950 – Media moments: The Coca-Cola Contour Bottle was the first commercial product to
appear on the cover of TIME magazine, establishing Coca-Cola as a truly international brand.
Also this year, the first television advert featuring Coca-Cola's Contour Bottle appeared during
CBS' The Edgar Bergen-Charlie McCarthy Show.
• 1955 – Packaging innovations: For the first time, people could buy different sized bottles of
Coca-Cola. As well as the traditional 6.5 ounce contour bottle, shops also started selling larger
10, 12 and 26 ounce versions.
• 1960 – Trademark no.1: The Contour Bottle with the word ‘Coca-Cola’ written on it received
its first trademark from the US Patent and Trademark Office.
• 1977 – Trademark no.2: The Coca-Cola Contour Bottle was granted a second trademark for
the contour shape itself, with no words written on it.
• 1978 – Recyclable bottles: Coca-Cola introduced the world to the two liter PET plastic bottle.
It became popular for a lot of reasons: it doesn’t break; it’s re-sealable, lightweight and
recyclable.
• 2000 – Reducing waste: Coca-Cola introduced the ultra-glass Contour Bottle designed for
improved impact resistance, reduced weight and cost. These bottles are 40 per cent stronger and
20 per cent lighter than the original Coca-Cola Contour Bottle – saving approximately 52,000
metric tons of glass in 2006.
• 2005 – Aluminum bottles: Coca-Cola joined forces with design firms from five continents to
launch a new aluminum Contour Bottle called the ‘M5’ (Magnificent 5).
• 2009 – Green bottles: Coca-Cola launched the innovative Plant Bottle in the US, a completely
recyclable PET container made with 30 per cent plant materials, including sugar cane extracts.
• 2011 – Going green globally: Plant Bottle packaging is available in nine countries with
launches planned for many additional markets in 2011 and beyond.
• 2013/14 – Your name on our bottles: Coca-Cola swaps its iconic logo with Great Britain’s
most popular names for the summer-long ‘Share a Coke’ campaign.
IDEATION:
Ideation has been defined in these ways:
❖ Ideation is the creative process of generating, developing, and communicating new
ideas.
❖ Ideation is a technique that involves both the left and right sides of the brain to allow
breakthroughs from entrenched habits of thought and persistent difficult problems.
❖ Ideation is the process of creating new ideas.
In the Ideation stage, design thinkers spark off ideas — in the form of questions and solutions —
through creative and curious activities such as Brainstorms and Worst Possible Idea. In this article,
we’ll introduce you to some of the best Ideation methods and guidelines that help facilitate successful
Ideation sessions and encourage active participation from members.
When facilitated in a successful way, Ideation is an exciting process. The goal is to generate a large
number of ideas — ideas that potentially inspire newer, better ideas — that the team can then cut down
into the best, most practical and innovative ones.
“Ideation is the mode of the design process in which you concentrate on idea generation. Mentally it
represents a process of “going wide” in terms of concepts and outcomes. Ideation provides both the fuel
and also the source material for building prototypes and getting innovative solutions into the hands of
your users.”
The main aim of the Ideation stage is to use creativity and innovation in order to develop solutions. By
expanding the solution space, the design team will be able to look beyond the usual methods of solving
problems in order to find better, more elegant, and satisfying solutions to problems that affect a user's
experience of a product.
In the Design Thinking process, the Ideation stage often follows the first two stages, which are the
Empathies stage and Define stage. There is a significant overlap between the Define and Ideation stages
of a typical Design Thinking process. Interpreting information and defining the problem(s) and ideation
both drive the generation of problem solutions. This overlap is represented in the types of methods
design teams employ during these two stages. For example, Body storm and “How Might We”
questions are often used in both of these stages.
Ideation Will Help You:
• Ask the right questions and innovate.
• Step beyond the obvious solutions and therefore increase the innovation potential of your
solution.
• Bring together perspectives and strengths of team members.
• Uncover unexpected areas of innovation.
• Create volume and variety in your innovation options.
• Get obvious solutions out of your heads, and drive your team beyond them.
• Ideation Methods to Spark Innovative Ideas
There are hundreds of ideation methods. Some methods are merely renamed or slightly adapted
versions of more foundational techniques. Here you’ll get brief overview of some of the best methods:
• Brain storm
• Brain dump
• Brain write
• Brain walk
• Challenge Assumptions
• SCAMPER
• Mind map
• Sketch or Sketch storm
• Storyboard
• Analogies
• Provocation
• Movement
• Body storm
• Game storming
• Cheat storm
• Crowd storm
• Co-Creation Workshops
• Prototype
• Creative Pause
There is a basic 4 step process that explains how an idea can turn into a billion dollar company, and
the more familiar you are with it the more effective you will be at following it!
Phase 1: Knowledge Accumulation
This initial stage is all about absorbing as much information as possible. This stage is all about hunger
for knowledge which you can attempt to satisfy through reading articles, joining discussion groups, or
attending events that educate us on our domain of interest. As you process these new concepts, you end
up with many more questions than you started out with. This is your brain telling you what pieces of
the puzzle are missing, to encourage you to continue feeding yourself more information.
“Synchrony”, the more information you feed your mind, the quicker your brain can establish new
connections to generate ideas from.
Phase 2: Incubation
With all that newly acquired information, it’s always best to step away to let it all sink in. Your
subconscious knows your goals, desires, and needs more clearly than your conscious does. Once you
rest from knowledge absorption, the incubation phase begins transferring that information to your
subconscious which reorganizes and strengthens neuron connections.
The brain incorporates past experiences and knowledge with our conscious accumulation of
information, to find unique solutions to our interests. From this, it can identify gaps and will attempt to
work itself using the information it has. As the difficulty of finding a solution increases, the level of
creativity required does as well. If you are still stumped, it means you don’t have enough of the puzzle
put together yet to see the big picture, so the best solution is to return to the absorption phase and build
on from there.
Phase 3: The Idea Experience
If you are having trouble getting from Phase 2 to 3, some proven ways to speed up the transition are to;
contemplate the idea some more, switch up your work environment, participate in monotonous
activities to relax your mind, address tasks that are distracting you, and write down any thoughts that
pop into your head. These actions will help you relax and clarify your mind so you can extract those
ideas more effortlessly when the time comes.
This next phase occurs when your mind overcomes a gap and you have your notorious ‘aha’ moment.
Suddenly, your confusion is simplified and clouded thoughts seem much clearer. Once the
subconscious can piece together a creative solution in a way that makes logical sense, the solution is
brought into conscious awareness where you can then decide on a plan of action.
Phase 4: Implementation
The Implementation phase is where you find ways to incorporate your idea into daily life. Persistence is
a key factor as each idea worth implementing will most likely run into temporary setbacks before it
becomes successful. It will take several attempts at restructuring your idea before it will achieve its
final form. In the meantime, begin testing your idea, ask for consumer opinion, and most importantly,
don’t let your hunger go satisfied.
FACTORS INFLUENCING IDEATION
Factors influencing ideation process is -social factors, resources, motivation, context, time;
The social factors usually influence the character of the person, and this factor will that helps and
motivate to think creatively and that will support ideation. The resources like personal, educational,
environmental and metal trades will helps in ideation. Motivation from the family and society has a
major influencing factory in the case of ideation. Context means the situation where you think, the
context of thinking is depended the mood, surrounding climate all influxes. At last time that is factor of
luck.
RECOGNISING OPPORTUNITES
Exploration: the action of exploring an unfamiliar area, thorough examination of a subject.
Evaluation: Evaluation is a systematic determination of a subject's merit, the making of a judgment
about the amount, number, or value of something; assessment.
Exploitation: the action or fact of treating someone unfairly in order to benefit from their work. This is
an action of making use of and benefiting from resources.
FACTORS REVEALING OPPORTUNITIES
Alertness: it means the quality of being alert. How quick to notice any unusual and potentially
dangerous or difficult circumstances; vigilant.
Knowledge: facts, information, and skills acquired through experience or education; the theoretical or
practical understanding of a subject.
Luck: the success or failure apparently brought by chance rather than through one's own actions.
DEFINING OPPORTUNITY
• Objective and Subjective nature
• Underlying needs and wants
• Newness
• Entrepreneurial Strategies of Vesper
MODULE 2(b)
DEFINING OPPORTUNITY
Opportunity refers to a favorable set of circumstances that creates a need for a new product, service or
business. Window of opportunity describes the time period in which a firm can realistically enter a
new market.
Essential qualities of opportunity:
• Attractive
• Timely
• Durable
• Creates or adds value for its buyer or end user
Approaches used for entrepreneurs to identify opportunities:
• Observing Trends
• Solving a problem
• Identifying gaps in the marketplace
• Create a product that no one knows they need yet
• Underlying needs and wants
• Newness
Observing Trends: Trends creates opportunities for entrepreneurs to pursue. Important trends are:
economic forces, social forces, technological advances, political action and regulatory changes.
Solving a problem: Identifying opportunities involve noticing problem and finding a way to solve it.
Gaps in the marketplace: A gap in the marketplace is created when a product or service is needed by
a specific group of people but it may not represent large market to be of the interest to mainstream
retailers.
Personal characteristics of the entrepreneur that help to identify business opportunity:
• Prior experience
• Cognitive factors
• Social Networks
• Creativity
RECOGNISING OPPORTUNITES
• Exploration
• Evaluation
• Exploitation
FACTORS REVEALING OPPORTUNITIES
• Alertness
• Knowledge
• Luck
ENTREPRENEURIAL STRATEGIES OF VESPER
Karl Vesper could shed new light to the concept during 1980. Vesper states entrepreneurship is
expressed according to one’s perception. Vesper explained psychologists will perceive them as
achievement oriented individuals facing challenges for new accompaniments. Marxist philosophers
may see them as exploitative adventurers and professional corporate managers may
view them as small businesspersons lacking in professional qualification to do corporate management.
THEORY OF ENTREPRENEURSHIP:
According to Karl H Vesper, Entrepreneur is seen differently by economist, psychologist, politicians
and businesspersons. He had presented different views about entrepreneurship.
According to economists, entrepreneurship is an activity of earning profitability through proper
co-ordination of means of production.
According to psychologist, entrepreneur is an agent of change.
According to socialists, the role of entrepreneur is to meet the changing needs of society.
ENTREPRENEURIAL TYPOLOGIES
Vesper 1980 At least 11 types of entrepreneurs:
• Solo self-employed individuals
• Team builders
• Independent innovators
• Multipliers of existing models
• Economy-of-scale exploiters
• Capital aggregators
• Acquirers
• Artists who buy and sell
• Conglomerate builders
• Speculators
• Manipulators of apparent values
There are various factors responsible for the failure of entrepreneurship. Karl H Vesper has identifies
the following:
• Lack of viable concept
• Lack of market knowledge
• Lack of technical skill
• Lack of capital
• Lack of Business Knowledge
• Lack of motivation
• Time pressure and distractions
• Legal constraints
• Monopoly
• Low level of commitment
• Shortage of resources
• Poor communication network
DISCOVERY VIEW:
SOURCES OF OPPORTUNITY AND INNOVATION IN A TURBULENT ENVIRONMENT
• Demographic change
• Increasing diversity
• Customers / Change in perception
• Idea of crowd sourcing
• Time based opportunities
• Increased value of information/ New knowledge
• Reduced distance through technology
• Industry and Market structure change
• Process Need
SOURCES OF ENTREPRENEURIAL OPPORTUNITIES
If opportunities have such an integral role in entrepreneurship, where do they come from and what are
their characteristics? Researchers have categorized the sources of entrepreneurial opportunity in many
different ways: by discipline - psychology, sociology, economics, and management, by level of analysis
(micro, meso, and macro) by the institutional landscape, by demand and supply (market) factors, and
government policy. In each discipline two factors are continually in interaction: the individual and the
environment.
Opportunities define how the entrepreneur behaves and what kind of entrepreneurship is manifested.
The two integral parts of entrepreneurial process are entrepreneurial opportunity discovery and
exploitation. The field of entrepreneurship has two general entrepreneurial opportunities: the
Schumpeterian and the Kirznerian perspectives.
Schumpeter saw entrepreneurial opportunity anchored in the individuals of society. It has wide
reaching social repercussions specially for increasing nation output and job growth. The Kirznerian
entrepreneurs are found in the environment .It is considered to be non-level and not a major contributor
to national economic well-being.
Sources for Schumpeterian opportunities:
• Technological changes
• Political/Regulatory changes
• Socio-demographic changes
Kirznerian opportunities occur at any time or place. It emerges because of market disequilibria created
by market errors or omissions that create surplus or shortages.
Shane (2003) describes an entrepreneurial opportunity as: “…a situation in which a person can create a
new means-end framework for recombining resources that the entrepreneur believes will yield a profit.
This definition of an entrepreneurial opportunity is useful in that entrepreneurial opportunities are about
two things: something happening in the environment (resources) and something to do with the
individual (creation, beliefs, and recombination). Since opportunities are not always profitable the key
word “believes” is well placed.
Table 1: Opportunity Recognition
Year Author Contribution Level of
Examination
1934 (Schumpeter) Entrepreneurs create opportunity by
disrupting the equilibrium in the
marketplace.
Individual
1945 (Hayek) The economic problem is not just how
to allocate resources; it is a problem of
utilization of knowledge. Knowledge is
not given in totality to anyone.
Individual
1949 (von Mises) Entrepreneurs & their search for
opportunities are driven by a profit
motive.
Individual
1973 (I. Kirzner) Alertness, not just the possession of
information helps one recognize &
exploit opportunities.
Individual &
Environment
1979 (Vesper) Work experience, hobbies, networks,
systematic search lead to opportunity
recognition.
Individual &
Environment
1985 (Drucker) Opportunities are innovations that occur
due to changes in industry structure,
demand, outside events, demographics.
Environment
1985 (I. Kirzner) Alertness aids opportunity recognition
& exploitation; it “emerges into view at
the precise moment when decisions
have to be made.”
Individual
1988 (Bird & Jelinek) Schemas, mental models, and
opportunity recognition.
Individual
1988 (Katz & Gartner) Entrepreneurial intention and
recognition.
Individual
1990 (Christensen &
Peterson)
Along with market & technological
knowledge, specific problems & social
encounters are often a source of venture
ideas.
Environment
1991 (Shaver & Scott) Psychology of new venture creation. Individual
1992 (C. Gaglio &
Taub)
Pre-recognition stew of environmental,
technological, social, economic,
cultural, and personal forces lead
opportunity recognition
Individual
1994 (Bhave) External circumstances and/or desire to
start business motivate a conscious
search
Individual &
Environment
1996 (Hamel &
Prahalad)
Broad experience & the ability to learn
& adapt should help individuals
recognize opportunities.
Individual
1997 (Venkataraman) Opportunity identification &
opportunity recognition should be part
of what distinguished entrepreneurship
as its own. Scholarly field.
Individual
1997 (C. Gaglio) Detailed review & critique of
opportunity recognition.
Literature Review
1997 (I. M. Kirzner) A comparison of the Schumpeter &
Kirzner view of the entrepreneur &
opportunity
Literature Review
1999 (Timmons) The role of experience in opportunity
recognition
Individual
1999 (De Koning) Initial ideas come from continuous
information scanning without a specific
objective.
Individual &
Environment
2000 (Shane &
Venkataraman)
Entrepreneurship should be concerned
with the sources of opportunities and
the individual.
Individual &
Environment
2000 (Krueger) The role of intention in opportunity
development
Individual
2001 (Ireland, Hitt, &
et.al.)
The differences between opportunity-
seeking & advantage-seeking behavior.
Individual
2001 (C. M. Gaglio &
Katz)
Alertness is the engine that drives
opportunity recognition
Individual
2003 (Ardichvili,
Cardozo, & Ray)
Theory building using personality traits,
social networks, & prior knowledge as
precursors to alertness
Individual
2004 (Sarasvathy,
Venkataraman,
Dew, & Velamuri,
2004)
Three views of entrepreneurial
opportunity based on the market
process: allocative, discovery, &
creative
Individual &
Environment
2007 (Casson &
Wadeson)
Opportunity is an unexploited project
which is perceived by an individual.
Invokes the idea of rational action.
Individual
INDIVIDUAL FATORS AFFECTING DISCOVERY AND EXPLOITATION PROCESS
Table 2: Individual factors affecting discovery process
Non-Psychological Factors Psychological Factors
Prior Life Experiences Absorptive Capacity
Size of Social Network Recognition of Causal Links
Ability to Categorize Information
Relationship/Pattern Making
Understanding Processes
Evaluating Information Accurately
Table 3 : Individual factors affecting exploitation process
Non-Psychological Factors Psychological Factors
Opportunity Cost Extroversion
Working Spouse Need for Achievement
Higher Level of Education Risk-Taking
Career Experience Desire for Independence
General Business Experience Locus of Control
Functional Experience Self-Efficacy
Industry Experience Overconfidence
Start-up Experience Intuition
Having a Role Model
ENVIRONMENTAL FACTORS INFLUENCING THE DISCOVERY AND EXPLOITATION
OF OPPORTUNITIES
Table 4: Economic Conditions Affecting Entrepreneurial Opportunities
Condition Effect on Opportunities
ECONOMIC ENVIRONMENT
Stable economic conditions & economic growth Can increase or decrease
Unemployment Can increase or decrease
Income disparity Can increase or decrease
Capital availability Can increase or decrease
High Taxation Decreases
Table 5: Policy Conditions Affecting Entrepreneurial Opportunities
Condition Effect on Opportunities
Rule of Law/Property Rights Increases
Macroeconomic Policies Depends
Licensing & Bankruptcy Policies Increases
Deregulation Increases
Resource Policies Increase
Sectoral Policies Increase
Decentralization of Power Increase
Table 6: Industry Conditions Affecting Entrepreneurial Opportunities
Condition Effect on Opportunities
KNOWLEDGE CONDITIONS
R&D Intensity, Technological
Development
Provides new markets, products, ways of
organizing, technology, raw materials
Locus of Innovation Public sector, university research, R&D spillovers
encourage new firms
Strength of Patents Strong patent protection supports new firms.
DEMAND CONDITIONS
Market Size Larger markets provide more opportunities
Market Growth Growing markets provide excess demand
Market Segmentation Segmentation enhances opportunities due to the
exploitation of niches by nimble small firms
INDUSTRY STRUCTURE
Structure Service economy, spin-offs, clusters encourage
new ventures
Industry Age Age reduces opportunities for new firms
Dominant Design Industries converging on a dominant design have
less opportunities.
Industry Concentration Density increases the likelihood of venture failure.
Profitability High profit margins encourage new firms.
Cost of Inputs Lower input costs encourage new firms
Capital Intensity Lower capital intensity supports new firms
Advertising Intensity Lower advertising intensity supports new firms
Average Firm Size Small firm sizes encourage new entrants
Table 7: Demographic & Cultural Conditions Influencing Entrepreneurial Opportunities
Demographic & Cultural Conditions Effect on Opportunities
DEMOGRAPHIC CONDITIONS
Population Growth Increases
Population Density & Urbanization Increases
Immigration & Population Mobility Increase/Decrease
Educational Infrastructure Increase/Decrease
CULTURAL CONDITIONS
Social acceptance of entrepreneurship The more acceptance, the more likely
opportunities will be exploited.
Attitudes toward failure & bankruptcy The more negative the attitude, the
less likely opportunities will be
exploited.
Bureaucracy & Corruption Decreases the opportunities exploited
by legitimate entrepreneurs
Tradition Increase/Decrease
Social Capital Increases due to cooperation, trust
Power Distance (PDI) Depends on context
Uncertainty Avoidance (UAI) Depends on context
Masculinity (MAS) Depends on context
Individualism (IDV) Depends on context
Table 8: The Individual Framework Affecting the Entrepreneurial Process
DISCOVERY PROCESS EXPLOITATION PROCESS
Individual
Capabilities
Psychological Factors Individual Capabilities Psychological
Factors
Prior Life
Experiences
Absorptive Capacity Opportunity Cost Extroversion
Size of Social
Network
Recognition of Causal
Links
Working Spouse Need for
Achievement
Ability to Categorize
Information
Education Risk-Taking
Relationship/Pattern
Making
Career Experience Desire for
Independence
Understanding Processes General Business
Experience
Locus of Control
Evaluating Information
Accurately
Functional Experience Self-Efficacy
Industry Experience Overconfidence
Start-up Experience Intuition
Having a Role-Model
CREATION VIEW
What makes entrepreneurs entrepreneurial?
Entrepreneurs constantly make decisions and take action.How do they do that? Are there any
universal methods or principles they use?
Dr. Saras Sarasvathy, a cognitive scientist, conducted a study of expert entrepreneurs and found
answer to these questions, the result is effectuation: logic of thinking that uniquely serves
entrepreneurs in starting businesses. It provides a way to control a future that is inherently
unpredictable.
What does effectuation do?
• Ideas - Effectuation advances ideas toward sellable products and services with proven
customers.
• Stakeholder Commitments - Using effectuation, the entrepreneur interacts in search of self-
selecting partners to co-create the venture with.
• Decisions - Experts entrepreneurs use a set of techniques that serve as the foundation for
making decisions about what to do next
Principles of Effectuation
Expert entrepreneurs have learned the hard way that the most interesting ventures are built in a
space in which the future is not only unknown, but unknowable. Still yet, entrepreneurs do shape
this unpredictable future. They use techniques which minimize the use of prediction and allows
them to shape the future. These five principles, listed below, make up effectual logic.
• Bird-in-hand {start with your means}
When expert entrepreneurs set out to build a new venture, they start with their means: who I am,
what I know, and whom I know. Then, the entrepreneurs imagine possibilities that originate from
their means.
Contrasts with... Pre-set goals or opportunities: Causal reasoning works
inversely by assembling means after a goal is set.
• Affordable Loss {focus on the downside risk }
Expert entrepreneurs limit risk by understanding what they can afford to lose at each step,
instead of seeking large all-or-nothing opportunities. They choose goals and actions where there
is upside even if the downside ends up happening.
Contrasts with...Expected return: Causal reasoning first targets a return, then
works to minimize associated risk.
• Lemonade { leverage contingencies }
Expert entrepreneurs invite the surprise factor. Instead of making “what-if” scenarios to deal
with worst-case scenarios, experts interpret “bad” news and surprises as potential clues to create
new markets.
Contrasts with... Avoiding surprises: Causal reasoning works to minimize the
probability of unexpected outcomes.
• Patchwork Quilt {form partnerships }
Expert entrepreneurs build partnerships with self-selecting stakeholders. By obtaining pre-
commitments from these key partners early on in the venture, experts reduce uncertainty and co-
create the new market with its interested participants.
Contrasts with... Competitive analysis: Causal reasoning presumes that
competitors are rivals to contend with.
• Pilot-in-the-plane { control v. predict}
By focusing on activities within their control, expert entrepreneurs know their actions will result
in the desired outcomes. An effectual worldview is rooted in the belief that the future is neither
found nor predicted, but rather made
Contrasts with...Inevitable trends
OVERVIEW OF EFFECTUATION IN ACTION
An algorithm is a step-by-step procedure with a finite number of steps that seeks a specific
outcome. It’s recursive.
A heuristic is a problem-solving technique that involves creating a speculative formulation and
self-led investigation to reach some desired outcome. The most quintessential heuristic is “trial
and error.”
Effectual logic happens in mind of an individual, where it provides a way of thinking about
making decisions when non-predictive control is required. The effectual cycle represents the
thinking process in a form used in creating products, markets, and ventures. It’s not a
prescriptive “do this, do that” algorithm, but rather a set of heuristics* that uniquely and
universally apply to the challenges that entrepreneurs are bound to face.
Effectual reasoning, however, does not begin with a specific goal. Instead, it begins with a given
set of means and allows goals to emerge contingently over time from the varied imagination and
diverse aspirations of the founders and the people they interact with. While causal thinkers are
like great generals seeking to conquer fertile lands (Genghis Khan conquering two thirds of the
known world), effectual thinkers are like explorers setting out on voyages into uncharted waters
(Columbus discovering the new world). It is important to point out though that the same person
can use both causal and effectual reasoning at different times depending on what the
circumstances call for. In fact, the best entrepreneurs are capable of both and do use both modes
well. But they prefer effectual reasoning over causal reasoning in the early stages of a new
venture, and arguably, most entrepreneurs do not transition well into latter stages requiring more
causal reasoning.
Effectual reasoning: The logic
Underlying all the principles of effectual reasoning is a coherent logic that rests on a
fundamentally different assumption about the future than causal reasoning. Causal reasoning is
based on the logic, To the extent that we can predict the future, we can control it. That is why
both academics and practitioners in business today spend enormous amounts of brainpower and
resources on developing predictive models. Effectual reasoning, however, is based on the logic,
To the extent that we can control the future, we do not need to predict it. How does one control an
unpredictable future? The answer to this question depends on our beliefs about where the future
comes from. Is the future largely a continuation of the past? To what extent can human action
actually change its course? While the future is always uncertain, not all uncertainties are the same.
Entrepreneurs choose to view the future through effectual logic. Consciously, or unconsciously,
they act as if they believe that the future is not “out there” to be discovered, but
That it gets created through the very strategies of the players. That is because effectual logic is
people dependent, unlike causal logic, which is effect dependent. In other words, when a
particular effect has already been chosen such as a target segment within an existing market, the
people we hire and partner with will depend on the effect we want to create or the market we want
to penetrate. Effectual logic, however, does not assume pre-existent markets and builds on the
idea that the markets we create will be predicated on the people we are able to bring together. In
fact, in effectual reasoning, markets are in essence stable configurations of critical masses of
stakeholders who come together to transform the outputs of human imagination into the forging
and fulfillment of human aspirations through economic means.
So, what makes entrepreneurs entrepreneurial?
Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they
think effectually; they believe in a yet-to-be-made future that can substantially be shaped by
human action; and they realize that to the extent that this human action can control the future,
they need not expend energies trying to predict it. In fact, to the extent that the future is shaped by
human action, it is not much use trying to predict it – it is much more useful to understand and
work with the people who are engaged in the decisions and actions that bring it into existent.
MODULE – 3
IDEATION PROCESS
Brainstorming
Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific
problem by gathering a list of ideas spontaneously contributed by its members.
In other words, brainstorming is a situation where a group of people meet to generate new ideas and
solutions around a specific domain of interest by removing inhibitions. People are able to think more
freely and they suggest many spontaneous new ideas as possible. All the ideas are noted down and are
not criticized and after brainstorming session the ideas are evaluated. The term was popularized by
Alex Faickney Osborn in the 1953 book Applied Imagination.
Process for generating creative ideas and solutions through intensive and freewheeling group
discussion.
Every participant is encouraged to think aloud and suggest as many ideas as possible, no matter
seemingly how outlandish or bizarre. Analysis, discussion, or criticism of the aired ideas is allowed
only when the brainstorming session is over and evaluation session begins. See also lateral thinking and
nominal group technique.
Individual Brainstorming
While group brainstorming is often more effective at generating ideas than normal group problem
solving, several studies have shown that individual brainstorming produces more and often better ideas
than group brainstorming.
This can occur because groups aren't always strict in following the rules of brainstorming, and bad
behaviors creep in. Mostly, though, this happens because people pay so much attention to other people
that they don't generate ideas of their own – or they forget these ideas while they wait for their turn to
speak. This is called "blocking."
Brainstorming
induvidual
brainstorming
group
brainstorming
When you brainstorm on your own, you don't have to worry about other people's egos or opinions, and
you can be freer and more creative. For example, you might find that an idea you'd hesitate to bring up
in a group develops into something special when you explore it on your own.
Group brainstorming
Here, you can take advantage of the full experience and creativity of all team members. When one
member gets stuck with an idea, another member's creativity and experience can take the idea to the
next stage. You can develop ideas in greater depth with group brainstorming than you can with
individual brainstorming.
Another advantage of group brainstorming is that it helps everyone feel that they've contributed to the
solution, and it reminds people that others have creative ideas to offer. It's also fun, so it can be great
for team building.
Process
STEP 1: PREPARE THE GROUP
First, set up a comfortable meeting environment for the session. Make sure that the room is well-lit and
that you have the tools, resources, and refreshments that you need. How much information or
preparation does your team need in order to brainstorm solutions to your problem? Remember that prep
is important, but too much can limit – or even destroy – the freewheeling nature of a brainstorming
session.
Consider who will attend the meeting. A room full of like-minded people won't generate as many
creative ideas as a diverse group, so try to include people from a wide range of disciplines, and include
people who have a variety of different thinking styles. When everyone is gathered, appoint one person
to record the ideas that come from the session. This person shouldn't necessarily be the team manager –
it's hard to record and contribute at the same time. Post notes where everyone can see them, such as on
flip charts or whiteboards; or use a computer with a data projector.
STEP 2: PRESENT THE PROBLEM
Clearly define the problem that you want to solve, and lay out any criteria that you must meet. Make it
clear that that the meeting's objective is to generate as many ideas as possible.
Give people plenty of quiet time at the start of the session to write down as many of their own ideas as
they can. Then, ask them to share their ideas, while giving everyone a fair opportunity to contribute.
STEP 3: GUIDE THE DISCUSSION
Once everyone has shared their ideas, start a group discussion to develop other people's ideas, and use
them to create new ideas. Building on others' ideas is one of the most valuable aspects of group
brainstorming. Encourage everyone to contribute and to develop ideas, including the quietest people,
and discourage anyone from criticizing ideas.
Brain writing: Brain writing is the silent, written generation of ideas in a group. It was originally
popularized in Germany in the 70s.
There are two basic types:
• nominal ideas in a group that are not shared with other group members while generating ideas
and,
• Interacting ideas that are shared for additional stimulation.
An example of nominal brain writing would be a group of people write down ideas in index cards or
Post-It Notes.
Brain writing is simple. Rather than ask participants to yell out ideas, you ask them to write down their ideas
about a particular question or problem on sheets of paper for a few minutes; then, you have each participant pass
their ideas on to someone else, who reads the ideas and adds new ideas. After a few minutes, you ask the
participants to pass their papers to others, and the process repeats. After 10 to 15 minutes, you collect the sheets
and post them for immediate discussion.
Process
• Introduce the procedure.
• Hand out paper for each person to write down ideas.
• Provide a clear and legible problem statement.
• Describe the timing of the brain writing and the process for passing the pages. A page-passing
process that is not clear could undermine the credibility of the method and waste time.
• Ask if anyone has any questions about the problem statement or the brain writing process.
• Remind people to read the ideas quickly before entering their own ideas and to feel free to add,
modify and combine ideas. Let people know that extra paper is around the room if they run out.
• Begin the rounds. Announce the end of each round, and ask people to pass their paper to
another person.
• At the end of the session, collect the brain writing pages and post them for comment, additional
ideas or review.
Scamper method
Checklist that helps you to think of changes you can make to an existing product to create a new one.
You can use these changes either as direct suggestions or as starting points for lateral thinking
SCAMPER stands for:
S - Substitute - components, materials, people
C - Combine - mix, combine with other assemblies or services, integrate
A - Adapt - alter, change function, use part of another element
M - Modify - increase or reduce in scale, change shape, modify attributes (e.g. color)
P - Put to another use
E - Eliminate - remove elements, simplify, reduce to core functionality
R - Reverse - turn inside out or upside down
When to use SCAMPER?
• Use it to discover more ideas when you are running out.
• Use it to stimulate new ways of thinking about the problem, perhaps to kick you out of your
current rut.
How to use SCAMPER?
Step 1: Substitute
• what parts of the product, service or process may be replaced by other things
• Includes components, objects, materials the product is made of, people and roles involved in a
process, etc.
Step 2: Combine
• Look for ways to assemble together things which are separate, to integrate steps and operations
Step 3: Adapt
• Make the product or service or part of it better suited to its environment or to things that come
in contact with it, or to a specific group of clients.
Step 4: Modify
Change the properties of the product or service to make it larger, smaller, of different colors, tastes, etc
Step 5: Put to another use
Find other uses for the product or service that are different from the original intention.
Step 6: Eliminate
Remove a major function or component of the product or service.
Step 7: Rearrange
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Management of creativity e book

  • 1. A textbook on MANAGEMENT OF CREATIVITY Self-published by students of HR domain Rajadhani Business School 2018
  • 2. A Textbook on MANAGEMENT OF CREATIVITY Self Published By HR Students of Rajadhani Business School Nagaroor, Attingal, Thiruvananthapuram 2016-2018 For internal circulation only
  • 3. FOREWORD I congratulate Scaria Thomas (Assistant professor, Rajadhani Business School) and our T6 MBA students (HR domain, 2016 Batch) for publishing a textbook on Management Of Creativity, based on the MBA syllabus of APJ Abdul Kalam Technological University. A great effort indeed! Students always look for the textbooks that they could easily understand and apprehend. When I was a student too, I wanted such a textbook! I could not find it. I could find some fantastic books on the subject, but could not find a book that provided real life examples and explanations. This book is the result of a few MBA students with research insight and want to explore more into the subject. Once they compiled, they wanted to share the wealth of information with other fellow students. The intent of the authors is to help readers, i.e., management students and faculty, to have easy access to information and help them to attain good grades. I am sure this book is going to be a ‘live project’ and the same authors will keep on updating it once they start their career in this field. In closing, I am excited to share with readers “A Textbook on Management Of Creativity” that would definitely help you to in understanding the subject. Without doubt, I can say that this book is an enthusiastic celebration of techniques involved in Management Of Creativity. I think that the authors can be confident that there will be many grateful readers who will gain a broader perspective of the discipline . Rajit Karunakaran Nair Director, Rajadhani Business School, Trivandrum, Kerala (Author of “Making of a Sensible Consultant” & “Fearless or Shameless”)
  • 4. FOREWORD I feel proud to know about the academic initiative by our MBA T6 students by publishing a book of “Management Of Creativity”. This is the second initiative of our students in this direction. The first book of Sales and Distribution was well appreciated and acclaimed by our management and student fraternity. This noble sharing efforts and initiatives make RBS, a different learning place. I take this opportunity to congratulate Mr Scaria Thomas, Assistant Professor and the entire members of student team for this commendable work. I wish and expect more such efforts from our students and faculty members in future. Prof (Dr) Rajesh S Pyngavil Professor and Head Rajadhani Business School
  • 5. FOREWORD Creativity is essential in every walk of life the same way it essential for management too. They go hand in hand. Creativity is the keystone of all the successful management ventures. This book on “Management Of Creativity” is a sincere effort by the HR students of the college, purely based on KTU Syllabus of T6 HR paper named Management of Creativity. The Book details about Creativity styles, Creativity in problem solving, Lateral thinking, Ideation, TRIZ, Six thinking hats, Decision and Evaluation. An outstanding portrayal of the minuet accepts of creativity in Human Resources Management. This book is a sure help for the students specializing in HR. Scaria Thomas Assistant professor Rajadhani Business School, Trivandrum
  • 6. FOREWORD A great initiative by the HR specialization students of RBS by producing a book on “Management Of Creativity” as per KTU syllabus. Credits to entire crew and Scaria sir for this superb attempt. Shaan R S Assistant Professor Rajadhani Business School, Trivandrum
  • 7. MANAGEMENT OF CREATIVITY AUTHORS MANASA PRADEEP PRASEETHA GOKHALEY HAJNA.G.S LEKSHMI PRAKASH SUDHINA NAZER MINNU SABU
  • 8. ACKNOWLEDGEMENT We thank God, almighty giving as a splendid opportunity for completing our work “A Textbook on Management Of Creativity” as per the KTU syllabus. We would like to thank our mentor Asst. Prof.Scaria Thomas, Rajadhani Business School, for encouraging and supporting us to publish this book. We would like to express our gratitude and thanks to Prof. Rajit Karunakaran Nair, Director Rajadhani Business School and Prof. Dr. Rajesh S Pyngavil Professor & Head, Rajadhani Business School, for helping us making this book a reality. Last but not least we thank all our RBS faculty, all our friends of Rajadhani Business School and our family, for giving their support and well wishing. We beg forgiveness of all those have been with our work and those we have failed to mention. Team Human Resources Management RBS 2016-2018
  • 9. INDEX Units Contents Page No: 1 Creativity & Concepts: Making a case for creativity; Creative thinking as a skill; Valuing diversity in thinking – Thinking preferences, Cognitive biases of creativity.Creativity styles; setting the stage for success – Basic philosophy, Having a vision, Setting the right attitude, Recognizing and avoiding mental blocks, Avoiding mindsets, Risk taking, Paradigm shift and paradigm paralysis, Individual and team work; Creativity in problem solving – Problem definition, Understanding, Representing; Pattern Breaking – Thinking differently, Changing your point of view, Watching for paradigm shift, Challenging conventional wisdom, Lateral thinking, Provocation (escape, random word), Mind stimulation: games, brain-twisters and puzzles. 1 – 21 2 (a) 2 (b) Idea and Opportunity: History of ideas – development of ideas in history (post-it notes, coke bottles); Ideation – Basic of human information processing; Factors influencing ideation - social factors, resources, motivation, context, time; Recognizing Opportunities – how to recognize opportunities; Exploration, evaluation, exploitation, Factors revealing opportunities - Alertness, knowledge, luck. Defining an opportunity - objective or subjective nature, underlying needs and wants, newness, entrepreneurial strategies of Vesper; Discovery view (building on cognitive foundations and Scott Shane’s material) - sources of opportunities, key correlates with opportunity recognition); Creation view - building on Saras Sarasvathy’s effectuation Logic, implications on the process. 22 – 42
  • 10. 3 Ideation process: Idea-collection processes - Brainstorming/Brain-writing, The SCAMPER methods, Metaphoric thinking, Outrageous thinking, Mapping thoughts, Other (new approaches); Using Math and Science - Systematic logical thinking, Using math concepts; Eight-Dimensional (8D) Approach to Ideation - Uniqueness, Dimensionality, Directionality, Consolidation, Segmentation, Modification, Similarity, Experimentation. 43 – 63 4 Systematic Inventive Thinking: TRIZ - Fundamentals of TRIZ, Trial and Error and Systematic Innovation, Patents, sources of Technological Innovation; Key finding in TRIZ Patents Research - Level of Invention, Definition of Inventive Problem, Patterns of Technology Evolution, Patterns of Invention; Ideal Final Result (IFR), Psychological Inertia, TRIZ Process, Cause Effect Chains Diagram, Contradictions Matrix, 40 Inventive Principles to resolve technical contradiction 64 – 72 5 Decision and Ownership: Decision and Evaluation - Focused thinking framework; Recognizing Reasoned Arguments – short arguments and non arguments; drawing conclusions, inference, or hypothesis; Assumptions - implicit assumptions, underlying assumptions; Reasoning – reasoning, explanations, flaws in reasoning; Six Thinking hats; Ethical considerations. Intellectual Property - Introduction to intellectual property rights- Patents, Copyrights , Trademarks , Trade Secret, Unfair Competition. 73 – 80 6 Reference 81
  • 11. MODULE 1 CREATIVITY CREATIVITY Creativity is the act of turning new and imaginative ideas into reality. Creativity is characterized by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions. CONCEPT OF CREATIVE THINKING Creative thinking has two aspects: 1. The process of creative thinking 2. The product of creative thinking While the process of creation is an inner happening, the product of creation is seen and defined COMPONENTS OF CREATIVITY 1. Imagination- the process by which items of experience are combined to form new products. 2. Fluency-it means the frequency with which relevant and unrepeated ideas come to one’s mind after a question is put. 3. Flexibility-it is represented by a person’s ability to produce ideas which differ in approval or thought trend. 4. Originality-it is uniqueness of response, defines originality as the production of unusual, for fetched, remote or clever responses among members of a certain population. 5. Elaboration-it is indicated by a person’s ability to add pertinent details to the minimum and primary response to the stimulus. 6. Curiosity-it is an exploratory behavior. 7. Giftedness-it was considered only children with greater IQ were gifted, but now it is intelligence or talent and artistic ability. CREATIVE THINKING AS A SKILL: It’s important to have a creative thinking to solve problems more effectively. So we have to improve our creative thinking. Some of the ways to improve our creative thinking are as follows: Sensing • Use all your senses—see, taste, smell, touch, hear, think, speak. • Be a good observer of people, nature, and events around you.
  • 12. Thinking • Engage thinking on the right side of your brain (intuition, open-mindedness, visual perception, rhythm . . .). • Change your interpretation of an event, situation, behavior, person, or object. • Allow ideas to incubate. • Be open to insight as ideas pop into your mind. Imagining • Brainstorm by generating ideas with a group of people. • Ask, “What would happen if . . .” • Ask, “In how many different ways . . .” • Develop ideas and expand their possibilities. • Envision the future. Speaking and Writing • Use your words and your “voice” when conveying your original ideas. • Avoid using clichés or overly familiar responses to questions or problems. • Explain how your ideas move beyond the status quo and contribute to a discussion. • Take notes. Drawing • Use mind-mapping to capture ideas; start with a key concept and write it in the center of your page; use connecting lines, radiating from the central concept, and write down any connected or related ideas that come to you. • Create pictures or drawings of situations (“rich pictures”) to show them in a different way. Learning • Find ways to demonstrate your personal investment in projects. • Gather knowledge and conduct research. • Have more fun learning! Moving • Do physical activities to engage the creative areas of your brain and think differently. Resting • Take breaks.
  • 13. Dimensions of Creative Style VALUING DIVERSITY IN THINKING: Here are four tips for getting the most from your own and others’ thinking diversity: 1. Expect it and plan for it so you’re not quite so surprised when you face it. Awareness can keep you from having a knee-jerk reaction or jumping to conclusions. 2. Look for the learning you can get from different perspectives: What might you overlook without them? That, alone, may encourage you to seek out differences. 3. Keep in mind this process requires a mental stretch. If you’re irritated, the other person probably is, too. You both have to stretch to bridge the thinking divide, so recognize what’s happening and cut each other some slack. 4. Unique is normal—so have fun with it! In nearly every discussion we have with clients, they share stories of how recognizing and valuing thinking diversity has helped them lighten up about it. They realize the differences aren’t personal, it’s just “where she’s coming from” THINKING PREFERENCES:
  • 14. The awareness of one’s own thinking preferences and the thinking preferences of others, combined with the ability to act outside of one’s preferred thinking preferences is known as “Whole Brain Thinking.” The model was developed by Ned Herrmann. Using brain research developed by others and his own studies, Herrmann discovered that there were four patterns that emerged in terms of how the brain perceives and processes information. The Whole Brain Thinking is a methodology designed to help thinkers, teams and organizations better benefit from all of the thinking available to them. It acknowledges that while different tasks require different mental processes, and different people prefer different kinds of thinking, organizations will get better results when they can strategically leverage the full spectrum of thinking available. Each person (yes, you!) has thinking preferences, some strong, others intermediate. Those preferences develop into dominances, and without the awareness of those preferences, you may fall victim to blind spots when it comes to other people’s ways of thinking. But Whole Brain Thinking reminds us that everyone has access to all four ways of thinking. Applying Whole Brain Thinking means being able to fully leverage one’s own preferences, stretch to other quadrants when necessary, and adapt to and take advantage of the preferences of those around you to improve performance and results.
  • 15. COGNITIVE BIASES OF CREATIVITY: A cognitive bias is a mistake in reasoning, evaluating, remembering, or other cognitive process, often occurring as a result of holding onto one's preferences and beliefs regardless of contrary information. There are many cognitive biases that should be avoided for creative thinking. Some of the cognitive biases are given below: 1. Conservatism Belief: When old established information is favoured above new more recent information. 2. Dunning-Kruger Effect: When unskilled people overestimate their skills and skilled people underestimate theirs. 3. Functional Fixedness: Limits the use of an object to what it is designed for. Absence of this bias is one of the markers for increased creativity. And the practice of relinquishing the bias can help you boost creative thinking. 4. Hyperbolic Discounting: This is the tendency to favour short-term immediate gains over longer term gains. Leads to poor long-term decisions. 5. Planning Fallacy: The tendency to underestimate the time it will take to complete certain tasks. Cognitive Biases that Impact Innovation Our everyday decisions, and those of our colleagues, our consumers, and our families are constantly influenced by hundreds of cognitive biases. 1. Mere Exposure; We like things we are familiar with. So the more we have seen something, the more we will like it. It’s one reason why advertising works, as it makes things more familiar, and hence makes us more likely to choose them. A similar bias is the availability cascade, where if we repeat something enough, it becomes true.
  • 16. 2. Backfire effect when people react to evidence that challenges their opinion by strengthening their existing beliefs. Closely related is irrational escalation, a phenomenon where people justify increased commitment to a course of action based on prior investment, even in the face of new evidence suggesting that the original action was wrong. If you innovate for long enough, you’ll find these somewhere! 3. Illusory Correlation, or False Cause Fallacy: Inaccurately perceiving a relationship between two unrelated events, often because they occur in close temporal proximity. Correlation does not mean causation, but we are wired to make that connection. Often harmless, it can lead to superstitions like a lucky jacket. However, it can also be a barrier to innovation, particularly in situations where a new product is incorrectly linked to background problems that routinely occur, but become more visible simply because the innovation focuses more attention on the whole usage experience. For example, linking vaccination to Autism, or a new drug to apparent side effects, such as an upset stomach, which in reality would have occurred with or without the drug 4. Confirmation bias is the tendency to search for, or interpret information in a way that confirms our preconceptions. Expectation bias is closely related, and is the tendency for experimenters to believe data that agree with their expectations for the outcome of an experiment, and to disbelieve and discard data that appear to conflict with those expectations 5. Functional fixedness limits a person to using an object only in the way it is traditionally used. The killer application of many inventions is not the one it was originally created for. Being able to see though this bias can be a huge enabler for innovation, whether it leads to the Post-It note, or James Dyson’s use of centripetal separation in his vacuum cleaner. 6. Framing effect: We draw different conclusions from the same information, depending upon on how or where that information is presented. Most people would rather have a surgery that has a 90% survival rate than one that has a 10% mortality rate. We prefer a car with a 99% reliability record than one that breaks down more than 3 days a year! We are used to framing, or spinning in politics (are you pro choice or pro life?), but it also matters when you are pitching an idea, service, or a new innovation. 7. Context Effect: Never go shopping when you are hungry, you will buy more calories! People who are happy will respond to an innovation differently to people who are frustrated. Refreshed people are more open to new ideas, while tired people are more likely to fall back on old habits. Context is also crucial for Innovation research. Data generated in a lab, a focus group, or when someone is wired up to an EEG machine or brain scanner, will often be different to behavior in the real world.
  • 17. 8. Zero-risk bias: We prefer reducing a small risk to zero over reducing a big risk to a small one. We also love things that are free, which is a close cousin to zero risk. Whether it is free shipping, 20% extra free, buy one get one free, or a money back guarantee, we are tapping into this bias. This is closely related to Prospect Theory for anyone who wants to dig a little deeper. 9. Distinction bias is the tendency to view two options as more dissimilar when evaluating them side by side than when evaluating them separately. This is important for research, where we often compare different option in close proximity, when in the real world they may never be seen together. Also related to, “the new prototype is 5x better than the old one”. Making big improvements is a faulty prototype can be seductive to a team who has put their all into the improvement. But this doesn’t matter to a potential customer who never saw the old prototype. All that matters to them is how we compare to the market. This is also related to the Relativity bias, which is the tendency to make relative, rather than absolute evaluations. 10. Mental accounting The tendency to value things differently based on what internal classification we put on them. The way we think of money is different depending upon whether we are paying cash or using a credit card. We think of value differently for luxury versus commodity items. Framing an innovation to match the right internal classification for potential buyers can be the difference between success and failure just as much as the innovation itself. 11. Hyperbolic discounting the tendency for people to have a stronger preference for more immediate payoffs relative to later payoffs. This bias for short-term gains probably made a lot of sense on the savannah, but today it contributes to obesity, poor diet, lack of compliance to life saving medications, even texting and driving. 12. Endowment effect and Loss Aversion Bias: People often demand much more (often 2x) to give up an object than they would be willing to pay to acquire it. A bird in the hand is worth two in the bush, even if we are given a guarantee that we’ll get the ones in the bush later. Giving someone a bonus, and then taking it back if somebody doesn’t meet a goal is often more powerful than giving them the same bonus if they do. 13. Planning Fallacy the tendency to underestimate task-completion times and cost. I suspect we’ve all experienced this in some form, but it never seems to completely go away! 14. Peak End Rule. We tend to remember things in terms of the peak (negative or positive) experience in the process, and the end result. So a medical procedure may be remembered by the most intense moment of pain, and how it ended, rather than for little bursts of pain that occurred throughout. An innovative meal by the first bite of an amazing dish, and the check! It is worth thinking about the experience with our innovations from peak end perspective, which also embraces the weakest link.
  • 18. 15. Availability heuristic: We estimate what is more likely by what is more available in memory, which is in turn biased toward vivid, unusual, or emotionally charged examples, or recall driven by current context. This is really important for advertizing, as we remember things that were encoded into memory under similar conditions to where we are at the moment, so there is a lot of value of connecting advertizing to the point of purchase, or in creating advertizing where our innovation is associated with vivid emotional events (ideally positive) 16. Rhyme as reason effect rhyming statements is perceived as more truthful and/or more likeable. Rhyme all the time, your innovation will shine! 17. Dunning Kruger effect where incompetent people fail to realize they are incompetent because they lack the skill to distinguish between competence and incompetence. Common when people are moved to areas that are new with the same responsibility they had in their old space, and when people are promoted beyond their abilities. I’ve been fortunate to only have to deal with this in a small number of occasions, but when I have, there has been a somewhat irrational comfort in being able to give it a name! 18. Information bias is the tendency to seek information even when it cannot affect action. This delays action, and hence risk, and the potential for loss or blame, but of course, also slows down innovation. 19. Knowledge bias the tendency of people to choose the option they know best rather than the best option. As innovators, overcoming this bias can be the key to disruption, as looking in unexpected places is more likely to drive big, innovative leaps. 20. Bandwagon effect the tendency to do (or believe) things because many other people believe the same. Not always a bad idea. If everyone believes something is poisonous, you may not want to eat it, and crowd sourcing can be a powerful tool. However, challenging widely held givens can also be a way to be at the front of the crowd, rather than following it.
  • 19. CREATIVITY STYLES: SETTING THE STAGE FOR SUCCESS: • Basic philosophy • Having a vision • Setting the right attitude • Recognizing and avoiding mental blocks • Avoiding mindsets • Risk taking • Paradigm shift and paradigm paralysis • Individual and teamwork SETTING THE RIGHT ATTITUDE: • Remember that YOU control your attitude. • Adopt beliefs that frame events in a positive way.
  • 20. • Create a "library" of positive thoughts. • Avoid angry or negative media. • Ignore whiners and complainers. • Use a more positive vocabulary. RECOGNIZING AND AVOIDING MENTAL BLOCKS: An inability to recall something or to perform a mental action is termed as mental block. Mental blocks can be caused by physical disabilities or simply a lack of focus. Mental blocks are also often used to describe a temporary inability to recall a name or other information. Recognizing Mental Blocks: 1. Perceptual blocks • Stereotypes – This is a broad category that consists of seeing what you expect to see. Stereotyping is an efficient form of decision making in many cases, but prevents you from seeing what is really there. • Excess information – Key information may be difficult to isolate from the environment. There is a huge amount of information to be processed by your brain and knowing which information will be important in the future can be difficult. • Boundaries – Some problems are difficult to analyze because the frame around the problem is the wrong size. The think-out-of-the-box metaphor speaks to this block. Sometimes clarity comes from expanding the boundaries, but sometimes it comes from narrowing the boundary. May organizations carry a bias towards convergence that reinforces the tendency to look at problems more narrowly. The boundaries that are established can have a large effect on the potentials solutions that can be imagined. • Limited perspective – The importance of a problem will differs to different people, as does what is important about a problem. The inability to empathize with other perspectives and interests blocks you from a complete view of the problem. • Capacity – You are constantly flooded with information and so select which things to attend to and remember. As a consequence, you forget much more than you remember. In some cases, people are actually trained to ignore details, but mostly they just pay less attention. • Limited attention to the senses – Most people is strongly visual and use their other four senses much less intently. Some professions (e.g., cooking, mechanical repair) require development of other senses, but in most business settings vision and hearing dominate sensory input. 2. Emotional blocks: • Fear – expressing an idea is personal risk (of looking ignorant or foolish). There may also be fear of future failure and loss of money (or something equivalent). • Discomfort with chaos – Often new ideas are unclear and increase ambiguity, before they increase clarity. Anticipation of an increased feeling of chaos hinders people and groups. Most people are more comfortable with order and expect problem solving to increase
  • 21. order. The fact that the first stages of problem solving often increase disorder causes trouble. • Reluctance to incubate – People want to immediately judge ideas, reach conclusions and take action. Better ideas that come out after the action begins are ignored. The feeling is that it is too late, nobody wants to go “backwards”. In a related way, people resist working on the problem for a while to get “primed”, and then take a break to let the mind “work on the problem”. This may be based on the sense that this incubation requirement is an indication of being less intelligent or committed. • Lack of focus – People who are multi-tasking will struggle to generate the focus required to really think about the problem. Distractions clog short-term memory and prevent ideas from being noticed or novel connections between ideas from being made. 3. Cultural and environmental blocks These blocks may simply prevent people from expressing their ideas out of concern about upsetting the group. When the block is stronger, it may prevent people from even thinking about the blocked area. Examples of these blocks include: • Taboos – These are primarily unspoken social norms that are defended by the group. Certain words are never used and some topics are never brought up in groups. The absence of these sources of inspiration or clarification blocks thinking. • Commitment to being serious – Humor is based on a discontinuity with expectations. So is creativity. By keeping all interactions serious, individuals and groups block themselves from discussions about “silly” insights that make have useful implications. • Logic & reason – Logic is very powerful and most adults and organizations believe that they are governed by logic. Excess attachment to reason prevents individuals from accessing “hunches” about solutions. More importantly, the attachment prevents people from expressing their hunches. 4. Intellectual and Expressive blocks: • Using the wrong “language” to think about the problem – Some problems are best examined in visual terms, while others are suited for mathematical analysis. However, most people default to thinking about problems using words. While suitable in some cases, many problems are nearly impossible to solve when words are the sole medium of approach. More generally, attempting to think about a problem in the “wrong” language blocks us from potentially understanding the problem or expressing the solution. • Overuse of a few thinking patterns – One of the most popular thinking strategies in business is analysis: the process of “taking apart”. But the solutions for many problems require a different thinking strategy. People with relatively few thinking strategies are blocked in their ability to create ideas. The book lists over 60 thinking strategies, which are basically verbs that describe different actions. Sample verbs/strategies include combine, select, visualize, vary and cycle. • Incorrect and incomplete information – Because the quality of a solution is often dependent on the quality of the inputs, poor quality information can block development of a proper solution. It is often forgotten that it is more common for errors to propagate through an analysis than it is for good information to “cancel” bad information.
  • 22. AVOIDING MENTAL BLOCKS: AVOIDING MINDSETS: 7 real life fixed mindset mistakes and how to avoid doing them 1. Fixed mindset: Thinking that you can’t develop in something. Growth mindset: Whatever it is, you can always develop in it, even if it’s simply figuring out how to do it more efficiently or differently. If you want to become more of an extrovert, learn about how to socialize and find events which you find interesting to network in. If you want to improve your fitness, work with a personal trainer, like Oitoo, to come up with a suitable training scheme. 2. Fixed mindset: Being obsessed with being perceived a certain way, such as “smart”. Growth mindset: Be the real authentic you. The thoughts people have of you shouldn’t matter. And if you focus on learning and growing, I guarantee you will be appreciated and seen in a completely different positive light for wanting to continuously develop and grow. 3. Fixed mindset: Avoid challenges for fear of failure. Growth mindset: Take up challenges as an opportunity to learn. If you don’t fail, you’re less likely to learn. So take risks, look for challenges and try things differently. You’re more likely to discover the real gems that will make you succeed and it will be a hell lot more fun too! 4. Fixed mindset: Give up easily. Growth mindset: Persist at the things you want most. Don’t let obstacles stop you but motivate you further. Most things worth having don’t come easily. 5. Fixed mindset: See effort as something untalented people have to do. Growth mindset: Effort & hard work will get you where you want to go. And when you’ve put hard work into it, good results will taste so much sweeter. 6. Fixed mindset: Ignore useful negative feedback.
  • 23. Growth mindset: Use feedback to help you progress forward. Your friends, customers, and managers want to help you to improve, so listen to the feedback they have for you. 7. Fixed mindset: Feel threatened by others’ success. Growth mindset: Get inspired and learn from them instead. Ask them how they got to where they are and what were their secrets behind their success. Learn from their learning. RISK TAKING: The act or fact of doing something that involves danger or risk in order to achieve a goal. Starting a business always involves some risk-taking. Reasons why risk taking leads to success: 1. Unforeseen opportunities often come from risk-taking. 2. Taking risks shows confidence and helps you stand out. 3. We learn from risks and those lessons may lead us on an important, new path. 4. Success won't fall in your lap, you have to pursue it. 5. You don't achieve your dreams by playing it safe. 6. Embracing risk-taking helps you overcome a fear of failure. PARADIGM SHIFT AND PARADIGM PARALYSIS: Think of your favorite fruit. Imagine that for as long as you could remember, your favorite fruit was an apple. Not just any type of apple - it had to be a Granny Smith apple! You loved the bright green color, the scent of the apples in the fruit market, the crisp juicy crunch, and the mixture of sweetness and tartness that was just the right balance. You were sure that Granny Smith apples were simply the most perfect fruit ever created. Then, you visited a tropical island, and in the village where you stayed, there was a whole new and wonderful rainbow of fruits available for you to taste. There were fruits that you had heard of before, but had never tasted, like plantains, papayas, and mangoes. Then there were others still that you had never even heard of before, like kumquats, rambutans, lychees, and dragon fruit. You tried them all, and guess what? You found out that you loved mangoes even more than Granny Smith apples! You have just experienced what is known as a paradigm shift. A paradigm is a perception or a group of ideas about how things should be done, made, or thought about. In other words, it's your perspective on the world, your point of view, or your beliefs about what's true. A paradigm shift occurs whenever there's a significant change in the way an individual or a group perceives something, and the old paradigm is replaced by a new way of thinking, or a new belief. Individuals have their own personal paradigms, or lenses through which they view the world. Corporations and other organizations have corporate paradigms regarding the methods by which they believe their goals will best be accomplished. Likewise, cultural communities have cultural paradigms that include their sets of beliefs about themselves, about others, and about the world. A paradigm shift (also radical theory change), a concept identified by the American physicist and philosopher Thomas Kuhn (1922–1996), is a fundamental change in the basic concepts and
  • 24. experimental practices of a scientific discipline. A fundamental change in an individual’s or a society’s view of how things work in the world is called paradigm shift. The 6 major paradigm shifts: ❖ Push to pull. ❖ Consume to Create ❖ Assets to Access ❖ Linear to Complex ❖ Scarcity to Abundance ❖ Universal to Unique 1. Push to pull is the shift from pushing structures and products to pulling in resources and demand. We are moving from marketing existing stocks to manufacturing on demand; shifting from top-down allocation to pulling resources for projects; moving from fixed structures to varying constellations, and understanding and responding to emergent patterns of user behavior. 2. Consume to create is the shift from passively consuming to actively contributing and creating. We are shifting to a more participatory experience, in which the customer is actively involved, co-creating the product or experience. People are using their cognitive surplus to create communal projects such as Wikipedia and open-source software. 3. Assets to Access is the shift from acquiring and hoarding knowledge to spreading and sharing knowledge. In education, it means shifting from memorizing facts to knowing where to find information. The new skill is searching for and evaluating information. In media, we see a shift from an emphasis on authoring to an emphasis on curating. In scientific research, the difficulty has shifted from being able to find data to navigating and mining massive databases. 4. Linear to complex is the shift from independent and predictable systems to interdependent adaptive systems. We are transitioning from seeing the world in a linear way, in which small causes have small effects and large causes have large effects, to realizing that it’s perfectly possible for large marketing campaigns to have almost no result, while small things go viral and flood the market. When we are moving from a predictable world to a world that is unpredictable in principle, we must shift our strategy from planning to prepare. 5. Scarcity to abundance is the shift from scarce natural resources to using natural abundance. Where a specific situation may have had a limited set of choices, it now specializes on an abundance of renewable resources. 6. Universal to unique is the shift from mass production to tailored and individualized artifacts. In the health-care field, it is shown by the emergence of individualized medicine tailored to the genetic make- up of the user, and by the rise of individual quantified self-data. In terms of consumer empowerment, it is the possibility to design your own clothes, shoes, consumer products, and to 3D-print your own version of consumer goods. Paradigm paralysis refers to the refusal or inability to think or see outside or beyond the current framework or way of thinking or seeing or perceiving things. Paradigm paralysis is often used to indicate a general lack of cognitive flexibility and adaptability of thinking.
  • 25. 8 Steps to Thinking Creatively: Overcoming Paradigm Paralysis: 1. Look at a problem in many different ways. Much like Leonardo da Vinci did in looking at his creations from multiple vantage points. He drew the different points of view. (And the added benefit if you draw is that maybe someday you will be famous too.) 2. Make your thoughts visible. Diagrams are an excellent tool to make your thoughts visible. 3. Produce a lot. And this means a lot. Edison is famous for this as is Issac Asimov, who wrote 450 books. 4. Combine Things in new ways. New relationships of well-known concepts or ideas may spark something for you. It worked for Albert Einstein with E=mc2 . No one had thought of combining energy, mass and the speed of light together. 5. Force Relationships. Samuel Morse came up with the solution to weak telegraph signals one day by watching a team of horses being switched out at a relay station thus getting the idea of boosting the signal as it went along the wires. 6. Think in opposites. What if we ate dessert before dinner or we grew younger rather than older. How might this apply to incentives versus rewards? 7. Think metaphorically. Can you recognize resemblances between very different situations? Take a lesson from Aristotle. 8. Prepare for the benefits of chance. Chance happens. As Louis Pasteur said “Luck favors the prepared mind.” TEAM WORK: Importance of teamwork is as follows: ➢ Teamwork motivates unity in the workplace. ➢ Teamwork offers differing perspectives and feedback. ➢ Teamwork provides improved efficiency and productivity. ➢ Teamwork provides great learning opportunities. ➢ Teamwork promotes workplace synergy. The Basics of Creative Problem Solving – CPS Creative problem solving isn't just brainstorming, although that's what many people may associate it with. It's actually a well-defined process that can help you from problem definition to implementing solutions, according to Jeffrey Baumgartner. Creative ideas do not suddenly appear in people’s minds for no apparent reason. Rather, they are the result of trying to solve a specific problem or to achieve a particular goal. Albert Einstein’s theories of relativity were not sudden inspirations. Rather they were the result of a huge amount of mental problem solving trying to close a discrepancy between the laws of physics and the laws of electromagnetism as they were understood at the time. Albert Einstein, Leonardo da Vinci, Thomas Edison and other creative geniuses have always worked in the same way. They do not wait for creative ideas to strike them. Rather they focus on trying to solve a clearly stated, at least in their minds, problem. This is just like important TED talks to ideate for business innovation specifically discussed to get a better solution for existing problems.
  • 26. This approach has been formalized as Creative Problem Solving (CPS). CPS is a simple process that involves breaking down a problem to understand it, generating ideas to solve the problem and evaluating those ideas to find the most effective solutions. Highly creative people tend to follow this process in their heads, without thinking about it. Less naturally creative people simply have to learn to use this very simple process. A 7-step CPS framework Although creative problem solving has been around as long as humans have been thinking creatively and solving problems, it was first formalized as a process by Alex Osborn, who invented traditional brainstorming, and Sidney Parnes. Their Creative Problem Solving Process (CPSP) has been taught at the International Center for Studies in Creativity at Buffalo College in Buffalo, New York since the 1950s. However, there are numerous different approaches to CPS. Mine is more focused on innovation (that is the implementation of the most promising ideas). It involves seven straightforward steps. CPS Steps • Clarify and identify the problem • Research the problem • Formulate creative challenges • Generate ideas • Combine and evaluate the ideas • Draw up an action plan • Do it! (implement the ideas) Let us look at each step more closely: 1. Clarify and identify the problem Arguably the single most important step of CPS is identifying your real problem or goal. This may seem easy, but very often, what we believe to be the problem is not the real problem or goal. For instance, you may feel you need a new job. However, if you break down your problem and analyse what you are really looking for, it may transpire that the actual issue is that your income does not cover your costs of living. In this case, the solution may be a new job, but it might also be to re-arrange your expenses or to seek a pay rise from your existing employer. 2. Research the problem The next step in CPS is to research the problem in order to get a better understanding of it. Depending on the nature of the problem, you may need to do a great deal of research or very little. The best place to start these days is with your favorite search engine. But do not neglect good old fashioned sources of information and opinion. Libraries are fantastic for in-depth information that is easier to read than computer screens. Friends, colleagues and family can also provide thoughts on many issues. Fora on sites like LinkedIn and elsewhere are ideal for asking questions. There’s nothing an expert enjoys more than imparting her knowledge. Take advantage of that. But always try to get feedback from several people to ensure you get well-rounded information.
  • 27. 3. Formulate one or more creative challenges Creative challenges should be simple, concise and focus on a single issue. For example: “How might I improve my Chinese language skills and find a job in Shanghai?” is two completely separate challenges. Trying to generate ideas that solve both challenges will be difficult and, as a result, will stifle idea generation. So separate these into two challenges: “How might I improve my Chinese language skills?” and “How might I find a job in Shanghai?” Then attack each challenge individually. Once you have ideas for both, you may find a logical approach to solving both problems in a coordinated way. Or you might find that there is not a coordinated way and each problem must be tackled separately. 4. Generate ideas Finally, we come to the part most people associate with brainstorming and creative problem solving: idea generation. And you probably know how this works. Take only one creative challenge. Give yourself some quiet time and try to generate at least 50 ideas that may or may not solve the challenge. You can do this alone or you can invite some friends or family members to help you. 5. Combine and evaluate ideas After you have written down all of your ideas, take a break. It might just be an hour. It might be a day or more. Then go through the ideas. Related ideas can be combined together to form big ideas (or idea clusters). Then, using the criteria you devised earlier, choose all of the ideas that broadly meet those criteria. This is important. If you focus only on the “best” ideas or your favorite ideas, the chances are you will choose the less creative ones! Nevertheless, feel free to include your favorite ideas in the initial list of ideas. 6. Draw up an action plan At this point, you have some great ideas. However, a lot of people have trouble motivating themselves to take the next step. Creative ideas may mean big changes or taking risks. Some of us love change and risk. Others are scared by it. Draw up an action plan with the simple steps you need to take in order to implement your ideas. Ideas that involve a lot work to implement can be particularly intimidating. Breaking their implementation down into a series of readily accomplished tasks makes these ideas easier to cope with and implement. 7. Do it! This is the simplest step of all. Take your action plan and implement your idea. And if the situation veers away from your action plan steps, don’t worry. Rewrite your action plan! Diversity of thought What is Diversity of Thought? “The idea of more than one way” Diversity of thought—the idea of more-than-one-way— is key to understanding the potential of diversity and inclusion as an organizational resource. The way each of us interprets and negotiates the world around us is informed by our identity, culture and experience. Diversity of thought allows for differing perspectives on ideas and unique insights into problems. It creates opportunities for innovation, and partnerships in unexpected places. It allows you to take a "reality check" before plunging into new activities. Most important, it helps avoid groupthink. It
  • 28. encompasses the idea that different ideas, even conflicting ideas, will rub and bump against one another. Eventually this collision will instigate newer and more forward-thinking ideas that can be implemented as successful business strategies. Here are four tips for getting the most from your own and others’ thinking diversity: • Expect it and plan for it so you’re not quite so surprised when you face it. Awareness can keep you from having a knee-jerk reaction or jumping to conclusions. • Look for the learning you can get from different perspectives: What might you overlook without them? That, alone, may encourage you to seek out differences. • Keep in mind this process requires a mental stretch. If you’re irritated, the other person probably is, too. You both have to stretch to bridge the thinking divide, so recognize what’s happening and cut each other some slack. • Unique is normal—so have fun with it! In nearly every discussion we have with clients, they share stories of how recognizing and valuing thinking diversity has helped them lighten up about it. They realize the differences aren’t personal, it’s just “where she’s coming from.” How to Creating a Culture that Embraces Diversity of Thought • Encourage open discussion • Explore all problems from the four-point sequence – beginning with What do you know • Assign roles for asking difficult questions (have a devil's advocate) • Reward truth speakers • Train staff for the art of the difficult conversation • Invite new perspectives to discussions • Build in time to reflect and revisit tough decisions When defining or considering how best to execute organizational diversity of thought management or strategy, there are some best practices associated with executing this kind of diversity: Evaluate opportunity - Not every decision requires multiple, diverse perspectives to ensure that it’s solid. Determine the perspectives needed - When considering whom to invite to exploratory meetings, include those who will be impacted by the decision or who have pertinent knowledge. Identify information-gathering mechanisms - How a team gathers diverse perspectives will depend on who the audience is. Teams can leverage multiple tools from survey products, to intranets, to email systems and telephone conferencing capabilities to gather and deliver information. When the number of participants is small, real-time conversations are ideal.
  • 29. Challenges to Implementing Diversity of Thought Challenge: Grasping that Executive Leadership and Subject Matter Experts (SME) may not always have the right answer ➢ An understated challenge may be getting the leadership to admit that he or she doesn’t hold all the answers. According to IBM’s “Leading through Connections” study, more CEOs rely on their workforces to provide the full picture. In the meantime, the workforce is hungry for more ways to fully collaborate with their organizations; they want to have a real stake in the company’s success. ➢ Professor Scott E. Page has used mathematic models showing that "diversity trumps ability". His case studies have demonstrated that strong teams of diverse individuals have better problem solving skills than teams of more qualified people that come from the same perspective. ➢ Businesses generally tend to link innovation with a creative drive that is exclusive to the top and brightest talent, however, scientific research confirms that true innovation thrives in an inclusive culture that values diverse ideas, leverages unique perspectives and invites everyone to achieve collaborative breakthroughs across the entire organization. Pattern Breaking We base our thinking on past experiences. In our everyday life this is good; it makes us efficient at performing tasks. However, when it comes to thinking of new ideas it can inhibit our creativity because we automatically revert to past patterns of thinking based on what we know has worked before. If we are going to be genuinely creative and come up with something new we need to break our current patterns of thinking. Therefore, the wider we look for inspiration and the more new connections we open up to, the more likely we are to come up with genuinely new ideas. The same can also be said when we are searching for a solution to a specific problem. If we deliberately work to break our patterns of thinking in our everyday lives we will be better equipped with a resource of experiences from which we can draw when we are required to think more creatively. Tips to help us all break patterns. • Read a different newspaper or magazine – read something as different as possible to your ‘normal’ paper or magazine and note the differences. • Watch a film that you wouldn’t usually watch – maybe a different genre, or a film with subtitles, or ask someone else to choose for you as long as it’s different from your normal preferences. Then talk about how you feel about it. Were you pleasantly surprised or bored to tears? Think about why • Take up a new activity – as long as it’s new, it doesn’t matter what it is. What have you been meaning to do –singing, dancing the tango, or learning a new language? • Go for coffee or lunch with a colleague who works in a different team and who will have a different perspective. If you don’t normally go out for coffee or lunch all the better, and if you do go out regularly then go somewhere new.
  • 30. • Ask children – children are more creative than adults because they haven’t got such ingrained patterns of behavior. They are not afraid to ask why and they will certainly have a different perspective on a problem. • Take a different route to work ¬ you will have a different experience, encounter different people and break some of the most ingrained everyday patterns in your life. • Cook a new recipe – use ingredients that you have never tried before. If you are not a natural chef, take a cookery lesson, or eat out in a restaurant that you have never been to. • Listen to a different radio station – try one that is totally different to your normal preference. Listen to it for a week. Then change again. • Get out of your normal environment for a set time every week. Go and work from the local coffee shop, hold a meeting in the park, hot-desk in a different department. • Take a walk in the park during office hours. Deliberately change the pace of your thinking. Take time to ponder. • Listen to the music charts – do you know what’s number one at the moment? No, me neither. Find out; amaze your colleagues. • Do lateral thinking puzzles – these puzzles are scenarios which give you a small amount of information and you then have to try and figure out what is going on by asking questions. They help to challenge your assumptions and force you to approach a question in a different way. There are many books and web resources including Destination Innovation from Paul Sloane (Sterling Publishing, London, 1991.
  • 31. MODULE 2 IDEAS AND OPPORTUNITY Module 2 (a) Difference between an innovative idea and a business opportunity An idea is the first milestone in the process of founding a business. Every successful business started as someone’s idea. A business idea is a concept that can be used to make money. It has no commercial value initially. It centers on a product or service that can be offered for money. Most business ideas exist in abstract form; usually in the mind of its creator or investor and not all business ideas, no matter how brilliant they may seem, would end up being profitable. A promising business idea must have the following characteristics: • Relevant • Innovative • Unique • Clear focus • Profitable in the long run Any business idea that, at least, focuses on lowering costs would most likely be profitable in the long term. A successful business idea must meet the following three conditions: ➢ It must offer benefit to the customer by solving a problem or fulfilling a need. Customers buy products and services for just one reason; to satisfy a need. So, if your business idea cannot satisfy customers, it won’t be successful. Every successful business idea must have a unique selling proposition. ➢ It must have a market that is willing to accept it. A promising business idea must offer a product or service that would be accepted by a large market. It must also have feasible arrangements for catering to that large market as well as unique values that differentiates it from the competition. ➢ It must have a mechanism for making revenue. A successful business idea must show how much money can be earned from it and how the money will be earned. The acceptability and profitability of a business idea hinges largely on how innovative the idea is. Being innovative means using conventional production or distribution methods that have rarely been adopted before.
  • 32. For example, FedEx revolutionized mail post services through 24-hour operation and very quick delivery worldwide. The company therefore adopted an innovative system, which eventually spurred it to becoming one of the world’s leading mail and parcel delivery services. A business opportunity is a proven concept that generates on-going income. In other words, a business opportunity is a business idea that has been researched upon, refined and packaged into a promising venture that is ready to launch. An opportunity is regarded as one after it has been found to meet the following criteria: • It must have high gross margins. • It must have the potential to reach break-even cash flow within 12 months – 36 months. • The startup capital investment must be realistic and within the range of what you can provide. • You must have the strength and ability needed to drive the business to success. • Your level of enthusiasm for the business must be very high. • It must have the potential to keep on improving with time. • It must have a low level of liability risk. Multiple business ideas may strike on a daily basis, but only few of them will be profitable in the long run based on market research and feasibility study conducted. These few are the real business opportunities. Eg:- Colonel Sanders tried for many years to sell his chicken recipe idea but no one listened to him until he repackaged it and KFC (Kentucky Fried Chicken) was born.
  • 33. How to prepare, plan, define and implement a business idea? Business ideas are all within you and within your environment. Some of these business ideas emanate from analysis of market and consumer needs, while others emanate from a long research process. • Look within yourself and examine your skills, talent, passion • Keep up with current events and be ready to take advantage of business opportunities • Invent a new product or service • Add value to an already existing product • Franchising: Franchising may take several forms, but the most interesting one is the type that offers a name, method of running business, image and operating principles. • Mass media • Exhibitions, Expos and Trade shows : means to discover business ideas and opportunities • Industrial Surveys: The main point for a new business idea should be the customer. • Listen to customers complaints • Brainstorming: Brainstorming is a creative problem-solving technique, and also a source for generating ideas. HISTORY OF IDEAS DEVELOPMENT OF IDEAS IN HISTORY (POST-IT NOTES, COKE BOTTLES) Post it notes: History Timeline: For over 35 years, the Post-It Brand has helped people be more productive, communicate better and express themselves in a number of creative ways. • Dr. Spencer Silver, a 3M scientist, who was busily researching adhesives in the laboratory. Discovered something peculiar: an adhesive that stuck lightly to surfaces but didn’t bond tightly to them. • What Silver discovered was something called microspheres which retain their stickiness but with a "removability characteristic," allowing attached surfaces to peel apart easily. • Meanwhile, Art Fry, another 3M scientist, who was frustrated needed a bookmark that would stick to the paper without damaging the pages. • Partnering with Silver, they began developing a product. Once they found themselves writing messages on their new notes to communicate around the office, they realized the full potential of the idea. • Fry supplied the entire company with the new adhesive notes. Employees loved them. • 3M initially launched the product in four cities under the name Press 'n Peel with mixed results. • 1980 to 1986: The notes was always a self-advertising product because customers would put the notes on documents they sent to others, arousing the recipient's curiosity. • Yellow Gets Its Due: On April 6, Silver and Fry’s unsung hero debuted in US stores as Post-it Notes. Later Notes are introduced in Canada and Europe. • 1987 to 1996: The Post-it Note celebrated its 10th anniversary and was featured on many lists of top consumer products of the decade. • Post-it Easel Pads were introduced. 1997 to 2003 • Post-it Notes are sold in more than 100 countries. The now famous Post-it adhesive continues to be used on many 3M products. • Post-it Super Sticky Notes were introduced with a stronger adhesive that adheres better to vertical and non-smooth surfaces. • The Post-it Flag Highlighter received high marks from students for being a highlighter. • The Post-it Big Pad made its debut.
  • 34. • Post-it Brand teamed up with Evernote, the organizational note-taking app. • Post-it Notes are now available in more than 150 countries. Collectively, there are more than 4,000 Post-it Products. COKE BOTTLES: Coca Cola’s history has got a lot of bottle - more than 115 years’ worth, in fact. The world’s favorite soft drink started life as a soda fountain beverage, selling for five cents a glass, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. • 1894 - A modest start for a bold idea: Mississippi shop owner Joseph A. Biedenharn began bottling Coca-Cola after he was impressed by its sales. He sold the drink to his customers in a common glass bottle called a Hutchinson. • 1916 - Birth of the Contour Bottle: Bottlers worried that a straight-sided bottle wasn’t distinctive enough and that Coca-Cola was becoming easily confused with ‘copycat’ brands. Glass manufacturers were approached to come up with a unique bottle design for Coca-Cola. The Root Glass Company of Terre Haute, Indiana, designed with the famous contour shape, which won enthusiastic approval from Coca-Cola in 1915 and was introduced in 1916. • 1923 – Six packs: Six pack carriers of Coca-Cola bottles were introduced to encourage people to take their drinks home – and were a huge hit. • 1928 – Bottle overtakes fountain: For the first time, the volume of Coca-Cola sold in bottles exceeded the amount sold through soda fountains. • 1950 – Media moments: The Coca-Cola Contour Bottle was the first commercial product to appear on the cover of TIME magazine, establishing Coca-Cola as a truly international brand. Also this year, the first television advert featuring Coca-Cola's Contour Bottle appeared during CBS' The Edgar Bergen-Charlie McCarthy Show. • 1955 – Packaging innovations: For the first time, people could buy different sized bottles of Coca-Cola. As well as the traditional 6.5 ounce contour bottle, shops also started selling larger 10, 12 and 26 ounce versions. • 1960 – Trademark no.1: The Contour Bottle with the word ‘Coca-Cola’ written on it received its first trademark from the US Patent and Trademark Office. • 1977 – Trademark no.2: The Coca-Cola Contour Bottle was granted a second trademark for the contour shape itself, with no words written on it. • 1978 – Recyclable bottles: Coca-Cola introduced the world to the two liter PET plastic bottle. It became popular for a lot of reasons: it doesn’t break; it’s re-sealable, lightweight and recyclable. • 2000 – Reducing waste: Coca-Cola introduced the ultra-glass Contour Bottle designed for improved impact resistance, reduced weight and cost. These bottles are 40 per cent stronger and 20 per cent lighter than the original Coca-Cola Contour Bottle – saving approximately 52,000 metric tons of glass in 2006. • 2005 – Aluminum bottles: Coca-Cola joined forces with design firms from five continents to launch a new aluminum Contour Bottle called the ‘M5’ (Magnificent 5). • 2009 – Green bottles: Coca-Cola launched the innovative Plant Bottle in the US, a completely recyclable PET container made with 30 per cent plant materials, including sugar cane extracts. • 2011 – Going green globally: Plant Bottle packaging is available in nine countries with launches planned for many additional markets in 2011 and beyond. • 2013/14 – Your name on our bottles: Coca-Cola swaps its iconic logo with Great Britain’s most popular names for the summer-long ‘Share a Coke’ campaign.
  • 35. IDEATION: Ideation has been defined in these ways: ❖ Ideation is the creative process of generating, developing, and communicating new ideas. ❖ Ideation is a technique that involves both the left and right sides of the brain to allow breakthroughs from entrenched habits of thought and persistent difficult problems. ❖ Ideation is the process of creating new ideas. In the Ideation stage, design thinkers spark off ideas — in the form of questions and solutions — through creative and curious activities such as Brainstorms and Worst Possible Idea. In this article, we’ll introduce you to some of the best Ideation methods and guidelines that help facilitate successful Ideation sessions and encourage active participation from members. When facilitated in a successful way, Ideation is an exciting process. The goal is to generate a large number of ideas — ideas that potentially inspire newer, better ideas — that the team can then cut down into the best, most practical and innovative ones. “Ideation is the mode of the design process in which you concentrate on idea generation. Mentally it represents a process of “going wide” in terms of concepts and outcomes. Ideation provides both the fuel and also the source material for building prototypes and getting innovative solutions into the hands of your users.” The main aim of the Ideation stage is to use creativity and innovation in order to develop solutions. By expanding the solution space, the design team will be able to look beyond the usual methods of solving problems in order to find better, more elegant, and satisfying solutions to problems that affect a user's experience of a product. In the Design Thinking process, the Ideation stage often follows the first two stages, which are the Empathies stage and Define stage. There is a significant overlap between the Define and Ideation stages of a typical Design Thinking process. Interpreting information and defining the problem(s) and ideation both drive the generation of problem solutions. This overlap is represented in the types of methods design teams employ during these two stages. For example, Body storm and “How Might We” questions are often used in both of these stages. Ideation Will Help You: • Ask the right questions and innovate. • Step beyond the obvious solutions and therefore increase the innovation potential of your solution. • Bring together perspectives and strengths of team members. • Uncover unexpected areas of innovation. • Create volume and variety in your innovation options. • Get obvious solutions out of your heads, and drive your team beyond them. • Ideation Methods to Spark Innovative Ideas There are hundreds of ideation methods. Some methods are merely renamed or slightly adapted versions of more foundational techniques. Here you’ll get brief overview of some of the best methods: • Brain storm • Brain dump • Brain write • Brain walk
  • 36. • Challenge Assumptions • SCAMPER • Mind map • Sketch or Sketch storm • Storyboard • Analogies • Provocation • Movement • Body storm • Game storming • Cheat storm • Crowd storm • Co-Creation Workshops • Prototype • Creative Pause There is a basic 4 step process that explains how an idea can turn into a billion dollar company, and the more familiar you are with it the more effective you will be at following it! Phase 1: Knowledge Accumulation This initial stage is all about absorbing as much information as possible. This stage is all about hunger for knowledge which you can attempt to satisfy through reading articles, joining discussion groups, or attending events that educate us on our domain of interest. As you process these new concepts, you end up with many more questions than you started out with. This is your brain telling you what pieces of the puzzle are missing, to encourage you to continue feeding yourself more information. “Synchrony”, the more information you feed your mind, the quicker your brain can establish new connections to generate ideas from. Phase 2: Incubation With all that newly acquired information, it’s always best to step away to let it all sink in. Your subconscious knows your goals, desires, and needs more clearly than your conscious does. Once you rest from knowledge absorption, the incubation phase begins transferring that information to your subconscious which reorganizes and strengthens neuron connections. The brain incorporates past experiences and knowledge with our conscious accumulation of information, to find unique solutions to our interests. From this, it can identify gaps and will attempt to work itself using the information it has. As the difficulty of finding a solution increases, the level of creativity required does as well. If you are still stumped, it means you don’t have enough of the puzzle put together yet to see the big picture, so the best solution is to return to the absorption phase and build on from there. Phase 3: The Idea Experience If you are having trouble getting from Phase 2 to 3, some proven ways to speed up the transition are to; contemplate the idea some more, switch up your work environment, participate in monotonous activities to relax your mind, address tasks that are distracting you, and write down any thoughts that pop into your head. These actions will help you relax and clarify your mind so you can extract those ideas more effortlessly when the time comes.
  • 37. This next phase occurs when your mind overcomes a gap and you have your notorious ‘aha’ moment. Suddenly, your confusion is simplified and clouded thoughts seem much clearer. Once the subconscious can piece together a creative solution in a way that makes logical sense, the solution is brought into conscious awareness where you can then decide on a plan of action. Phase 4: Implementation The Implementation phase is where you find ways to incorporate your idea into daily life. Persistence is a key factor as each idea worth implementing will most likely run into temporary setbacks before it becomes successful. It will take several attempts at restructuring your idea before it will achieve its final form. In the meantime, begin testing your idea, ask for consumer opinion, and most importantly, don’t let your hunger go satisfied. FACTORS INFLUENCING IDEATION Factors influencing ideation process is -social factors, resources, motivation, context, time; The social factors usually influence the character of the person, and this factor will that helps and motivate to think creatively and that will support ideation. The resources like personal, educational, environmental and metal trades will helps in ideation. Motivation from the family and society has a major influencing factory in the case of ideation. Context means the situation where you think, the context of thinking is depended the mood, surrounding climate all influxes. At last time that is factor of luck. RECOGNISING OPPORTUNITES Exploration: the action of exploring an unfamiliar area, thorough examination of a subject. Evaluation: Evaluation is a systematic determination of a subject's merit, the making of a judgment about the amount, number, or value of something; assessment. Exploitation: the action or fact of treating someone unfairly in order to benefit from their work. This is an action of making use of and benefiting from resources. FACTORS REVEALING OPPORTUNITIES Alertness: it means the quality of being alert. How quick to notice any unusual and potentially dangerous or difficult circumstances; vigilant. Knowledge: facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject. Luck: the success or failure apparently brought by chance rather than through one's own actions. DEFINING OPPORTUNITY • Objective and Subjective nature • Underlying needs and wants • Newness • Entrepreneurial Strategies of Vesper
  • 38. MODULE 2(b) DEFINING OPPORTUNITY Opportunity refers to a favorable set of circumstances that creates a need for a new product, service or business. Window of opportunity describes the time period in which a firm can realistically enter a new market. Essential qualities of opportunity: • Attractive • Timely • Durable • Creates or adds value for its buyer or end user Approaches used for entrepreneurs to identify opportunities: • Observing Trends • Solving a problem • Identifying gaps in the marketplace • Create a product that no one knows they need yet • Underlying needs and wants • Newness Observing Trends: Trends creates opportunities for entrepreneurs to pursue. Important trends are: economic forces, social forces, technological advances, political action and regulatory changes. Solving a problem: Identifying opportunities involve noticing problem and finding a way to solve it. Gaps in the marketplace: A gap in the marketplace is created when a product or service is needed by a specific group of people but it may not represent large market to be of the interest to mainstream retailers. Personal characteristics of the entrepreneur that help to identify business opportunity: • Prior experience • Cognitive factors • Social Networks • Creativity RECOGNISING OPPORTUNITES • Exploration • Evaluation • Exploitation FACTORS REVEALING OPPORTUNITIES • Alertness • Knowledge • Luck
  • 39. ENTREPRENEURIAL STRATEGIES OF VESPER Karl Vesper could shed new light to the concept during 1980. Vesper states entrepreneurship is expressed according to one’s perception. Vesper explained psychologists will perceive them as achievement oriented individuals facing challenges for new accompaniments. Marxist philosophers may see them as exploitative adventurers and professional corporate managers may view them as small businesspersons lacking in professional qualification to do corporate management. THEORY OF ENTREPRENEURSHIP: According to Karl H Vesper, Entrepreneur is seen differently by economist, psychologist, politicians and businesspersons. He had presented different views about entrepreneurship. According to economists, entrepreneurship is an activity of earning profitability through proper co-ordination of means of production. According to psychologist, entrepreneur is an agent of change. According to socialists, the role of entrepreneur is to meet the changing needs of society. ENTREPRENEURIAL TYPOLOGIES Vesper 1980 At least 11 types of entrepreneurs: • Solo self-employed individuals • Team builders • Independent innovators • Multipliers of existing models • Economy-of-scale exploiters • Capital aggregators • Acquirers • Artists who buy and sell • Conglomerate builders • Speculators • Manipulators of apparent values There are various factors responsible for the failure of entrepreneurship. Karl H Vesper has identifies the following: • Lack of viable concept • Lack of market knowledge • Lack of technical skill • Lack of capital • Lack of Business Knowledge • Lack of motivation • Time pressure and distractions • Legal constraints
  • 40. • Monopoly • Low level of commitment • Shortage of resources • Poor communication network DISCOVERY VIEW: SOURCES OF OPPORTUNITY AND INNOVATION IN A TURBULENT ENVIRONMENT • Demographic change • Increasing diversity • Customers / Change in perception • Idea of crowd sourcing • Time based opportunities • Increased value of information/ New knowledge • Reduced distance through technology • Industry and Market structure change • Process Need SOURCES OF ENTREPRENEURIAL OPPORTUNITIES If opportunities have such an integral role in entrepreneurship, where do they come from and what are their characteristics? Researchers have categorized the sources of entrepreneurial opportunity in many different ways: by discipline - psychology, sociology, economics, and management, by level of analysis (micro, meso, and macro) by the institutional landscape, by demand and supply (market) factors, and government policy. In each discipline two factors are continually in interaction: the individual and the environment. Opportunities define how the entrepreneur behaves and what kind of entrepreneurship is manifested. The two integral parts of entrepreneurial process are entrepreneurial opportunity discovery and exploitation. The field of entrepreneurship has two general entrepreneurial opportunities: the Schumpeterian and the Kirznerian perspectives. Schumpeter saw entrepreneurial opportunity anchored in the individuals of society. It has wide reaching social repercussions specially for increasing nation output and job growth. The Kirznerian entrepreneurs are found in the environment .It is considered to be non-level and not a major contributor to national economic well-being. Sources for Schumpeterian opportunities: • Technological changes • Political/Regulatory changes • Socio-demographic changes Kirznerian opportunities occur at any time or place. It emerges because of market disequilibria created by market errors or omissions that create surplus or shortages.
  • 41. Shane (2003) describes an entrepreneurial opportunity as: “…a situation in which a person can create a new means-end framework for recombining resources that the entrepreneur believes will yield a profit. This definition of an entrepreneurial opportunity is useful in that entrepreneurial opportunities are about two things: something happening in the environment (resources) and something to do with the individual (creation, beliefs, and recombination). Since opportunities are not always profitable the key word “believes” is well placed. Table 1: Opportunity Recognition Year Author Contribution Level of Examination 1934 (Schumpeter) Entrepreneurs create opportunity by disrupting the equilibrium in the marketplace. Individual 1945 (Hayek) The economic problem is not just how to allocate resources; it is a problem of utilization of knowledge. Knowledge is not given in totality to anyone. Individual 1949 (von Mises) Entrepreneurs & their search for opportunities are driven by a profit motive. Individual 1973 (I. Kirzner) Alertness, not just the possession of information helps one recognize & exploit opportunities. Individual & Environment 1979 (Vesper) Work experience, hobbies, networks, systematic search lead to opportunity recognition. Individual & Environment 1985 (Drucker) Opportunities are innovations that occur due to changes in industry structure, demand, outside events, demographics. Environment 1985 (I. Kirzner) Alertness aids opportunity recognition & exploitation; it “emerges into view at the precise moment when decisions have to be made.” Individual 1988 (Bird & Jelinek) Schemas, mental models, and opportunity recognition. Individual 1988 (Katz & Gartner) Entrepreneurial intention and recognition. Individual 1990 (Christensen & Peterson) Along with market & technological knowledge, specific problems & social encounters are often a source of venture ideas. Environment 1991 (Shaver & Scott) Psychology of new venture creation. Individual
  • 42. 1992 (C. Gaglio & Taub) Pre-recognition stew of environmental, technological, social, economic, cultural, and personal forces lead opportunity recognition Individual 1994 (Bhave) External circumstances and/or desire to start business motivate a conscious search Individual & Environment 1996 (Hamel & Prahalad) Broad experience & the ability to learn & adapt should help individuals recognize opportunities. Individual 1997 (Venkataraman) Opportunity identification & opportunity recognition should be part of what distinguished entrepreneurship as its own. Scholarly field. Individual 1997 (C. Gaglio) Detailed review & critique of opportunity recognition. Literature Review 1997 (I. M. Kirzner) A comparison of the Schumpeter & Kirzner view of the entrepreneur & opportunity Literature Review 1999 (Timmons) The role of experience in opportunity recognition Individual 1999 (De Koning) Initial ideas come from continuous information scanning without a specific objective. Individual & Environment 2000 (Shane & Venkataraman) Entrepreneurship should be concerned with the sources of opportunities and the individual. Individual & Environment 2000 (Krueger) The role of intention in opportunity development Individual 2001 (Ireland, Hitt, & et.al.) The differences between opportunity- seeking & advantage-seeking behavior. Individual 2001 (C. M. Gaglio & Katz) Alertness is the engine that drives opportunity recognition Individual 2003 (Ardichvili, Cardozo, & Ray) Theory building using personality traits, social networks, & prior knowledge as precursors to alertness Individual 2004 (Sarasvathy, Venkataraman, Dew, & Velamuri, 2004) Three views of entrepreneurial opportunity based on the market process: allocative, discovery, & creative Individual & Environment 2007 (Casson & Wadeson) Opportunity is an unexploited project which is perceived by an individual. Invokes the idea of rational action. Individual
  • 43. INDIVIDUAL FATORS AFFECTING DISCOVERY AND EXPLOITATION PROCESS Table 2: Individual factors affecting discovery process Non-Psychological Factors Psychological Factors Prior Life Experiences Absorptive Capacity Size of Social Network Recognition of Causal Links Ability to Categorize Information Relationship/Pattern Making Understanding Processes Evaluating Information Accurately Table 3 : Individual factors affecting exploitation process Non-Psychological Factors Psychological Factors Opportunity Cost Extroversion Working Spouse Need for Achievement Higher Level of Education Risk-Taking Career Experience Desire for Independence General Business Experience Locus of Control Functional Experience Self-Efficacy Industry Experience Overconfidence Start-up Experience Intuition Having a Role Model
  • 44. ENVIRONMENTAL FACTORS INFLUENCING THE DISCOVERY AND EXPLOITATION OF OPPORTUNITIES Table 4: Economic Conditions Affecting Entrepreneurial Opportunities Condition Effect on Opportunities ECONOMIC ENVIRONMENT Stable economic conditions & economic growth Can increase or decrease Unemployment Can increase or decrease Income disparity Can increase or decrease Capital availability Can increase or decrease High Taxation Decreases Table 5: Policy Conditions Affecting Entrepreneurial Opportunities Condition Effect on Opportunities Rule of Law/Property Rights Increases Macroeconomic Policies Depends Licensing & Bankruptcy Policies Increases Deregulation Increases Resource Policies Increase Sectoral Policies Increase Decentralization of Power Increase
  • 45. Table 6: Industry Conditions Affecting Entrepreneurial Opportunities Condition Effect on Opportunities KNOWLEDGE CONDITIONS R&D Intensity, Technological Development Provides new markets, products, ways of organizing, technology, raw materials Locus of Innovation Public sector, university research, R&D spillovers encourage new firms Strength of Patents Strong patent protection supports new firms. DEMAND CONDITIONS Market Size Larger markets provide more opportunities Market Growth Growing markets provide excess demand Market Segmentation Segmentation enhances opportunities due to the exploitation of niches by nimble small firms INDUSTRY STRUCTURE Structure Service economy, spin-offs, clusters encourage new ventures Industry Age Age reduces opportunities for new firms Dominant Design Industries converging on a dominant design have less opportunities. Industry Concentration Density increases the likelihood of venture failure. Profitability High profit margins encourage new firms. Cost of Inputs Lower input costs encourage new firms Capital Intensity Lower capital intensity supports new firms Advertising Intensity Lower advertising intensity supports new firms Average Firm Size Small firm sizes encourage new entrants Table 7: Demographic & Cultural Conditions Influencing Entrepreneurial Opportunities Demographic & Cultural Conditions Effect on Opportunities DEMOGRAPHIC CONDITIONS Population Growth Increases Population Density & Urbanization Increases Immigration & Population Mobility Increase/Decrease Educational Infrastructure Increase/Decrease CULTURAL CONDITIONS Social acceptance of entrepreneurship The more acceptance, the more likely
  • 46. opportunities will be exploited. Attitudes toward failure & bankruptcy The more negative the attitude, the less likely opportunities will be exploited. Bureaucracy & Corruption Decreases the opportunities exploited by legitimate entrepreneurs Tradition Increase/Decrease Social Capital Increases due to cooperation, trust Power Distance (PDI) Depends on context Uncertainty Avoidance (UAI) Depends on context Masculinity (MAS) Depends on context Individualism (IDV) Depends on context Table 8: The Individual Framework Affecting the Entrepreneurial Process DISCOVERY PROCESS EXPLOITATION PROCESS Individual Capabilities Psychological Factors Individual Capabilities Psychological Factors Prior Life Experiences Absorptive Capacity Opportunity Cost Extroversion Size of Social Network Recognition of Causal Links Working Spouse Need for Achievement Ability to Categorize Information Education Risk-Taking Relationship/Pattern Making Career Experience Desire for Independence Understanding Processes General Business Experience Locus of Control Evaluating Information Accurately Functional Experience Self-Efficacy Industry Experience Overconfidence Start-up Experience Intuition Having a Role-Model
  • 47. CREATION VIEW What makes entrepreneurs entrepreneurial? Entrepreneurs constantly make decisions and take action.How do they do that? Are there any universal methods or principles they use? Dr. Saras Sarasvathy, a cognitive scientist, conducted a study of expert entrepreneurs and found answer to these questions, the result is effectuation: logic of thinking that uniquely serves entrepreneurs in starting businesses. It provides a way to control a future that is inherently unpredictable. What does effectuation do? • Ideas - Effectuation advances ideas toward sellable products and services with proven customers. • Stakeholder Commitments - Using effectuation, the entrepreneur interacts in search of self- selecting partners to co-create the venture with. • Decisions - Experts entrepreneurs use a set of techniques that serve as the foundation for making decisions about what to do next
  • 48. Principles of Effectuation Expert entrepreneurs have learned the hard way that the most interesting ventures are built in a space in which the future is not only unknown, but unknowable. Still yet, entrepreneurs do shape this unpredictable future. They use techniques which minimize the use of prediction and allows them to shape the future. These five principles, listed below, make up effectual logic. • Bird-in-hand {start with your means} When expert entrepreneurs set out to build a new venture, they start with their means: who I am, what I know, and whom I know. Then, the entrepreneurs imagine possibilities that originate from their means. Contrasts with... Pre-set goals or opportunities: Causal reasoning works inversely by assembling means after a goal is set. • Affordable Loss {focus on the downside risk } Expert entrepreneurs limit risk by understanding what they can afford to lose at each step, instead of seeking large all-or-nothing opportunities. They choose goals and actions where there is upside even if the downside ends up happening. Contrasts with...Expected return: Causal reasoning first targets a return, then works to minimize associated risk. • Lemonade { leverage contingencies } Expert entrepreneurs invite the surprise factor. Instead of making “what-if” scenarios to deal with worst-case scenarios, experts interpret “bad” news and surprises as potential clues to create new markets. Contrasts with... Avoiding surprises: Causal reasoning works to minimize the probability of unexpected outcomes. • Patchwork Quilt {form partnerships } Expert entrepreneurs build partnerships with self-selecting stakeholders. By obtaining pre- commitments from these key partners early on in the venture, experts reduce uncertainty and co- create the new market with its interested participants. Contrasts with... Competitive analysis: Causal reasoning presumes that competitors are rivals to contend with. • Pilot-in-the-plane { control v. predict} By focusing on activities within their control, expert entrepreneurs know their actions will result in the desired outcomes. An effectual worldview is rooted in the belief that the future is neither found nor predicted, but rather made Contrasts with...Inevitable trends OVERVIEW OF EFFECTUATION IN ACTION An algorithm is a step-by-step procedure with a finite number of steps that seeks a specific outcome. It’s recursive. A heuristic is a problem-solving technique that involves creating a speculative formulation and self-led investigation to reach some desired outcome. The most quintessential heuristic is “trial and error.”
  • 49. Effectual logic happens in mind of an individual, where it provides a way of thinking about making decisions when non-predictive control is required. The effectual cycle represents the thinking process in a form used in creating products, markets, and ventures. It’s not a prescriptive “do this, do that” algorithm, but rather a set of heuristics* that uniquely and universally apply to the challenges that entrepreneurs are bound to face. Effectual reasoning, however, does not begin with a specific goal. Instead, it begins with a given set of means and allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with. While causal thinkers are like great generals seeking to conquer fertile lands (Genghis Khan conquering two thirds of the known world), effectual thinkers are like explorers setting out on voyages into uncharted waters (Columbus discovering the new world). It is important to point out though that the same person can use both causal and effectual reasoning at different times depending on what the circumstances call for. In fact, the best entrepreneurs are capable of both and do use both modes well. But they prefer effectual reasoning over causal reasoning in the early stages of a new venture, and arguably, most entrepreneurs do not transition well into latter stages requiring more causal reasoning. Effectual reasoning: The logic Underlying all the principles of effectual reasoning is a coherent logic that rests on a fundamentally different assumption about the future than causal reasoning. Causal reasoning is based on the logic, To the extent that we can predict the future, we can control it. That is why both academics and practitioners in business today spend enormous amounts of brainpower and resources on developing predictive models. Effectual reasoning, however, is based on the logic, To the extent that we can control the future, we do not need to predict it. How does one control an unpredictable future? The answer to this question depends on our beliefs about where the future comes from. Is the future largely a continuation of the past? To what extent can human action actually change its course? While the future is always uncertain, not all uncertainties are the same. Entrepreneurs choose to view the future through effectual logic. Consciously, or unconsciously, they act as if they believe that the future is not “out there” to be discovered, but That it gets created through the very strategies of the players. That is because effectual logic is people dependent, unlike causal logic, which is effect dependent. In other words, when a particular effect has already been chosen such as a target segment within an existing market, the people we hire and partner with will depend on the effect we want to create or the market we want to penetrate. Effectual logic, however, does not assume pre-existent markets and builds on the idea that the markets we create will be predicated on the people we are able to bring together. In fact, in effectual reasoning, markets are in essence stable configurations of critical masses of stakeholders who come together to transform the outputs of human imagination into the forging and fulfillment of human aspirations through economic means. So, what makes entrepreneurs entrepreneurial? Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they think effectually; they believe in a yet-to-be-made future that can substantially be shaped by human action; and they realize that to the extent that this human action can control the future, they need not expend energies trying to predict it. In fact, to the extent that the future is shaped by human action, it is not much use trying to predict it – it is much more useful to understand and work with the people who are engaged in the decisions and actions that bring it into existent.
  • 50. MODULE – 3 IDEATION PROCESS Brainstorming Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members. In other words, brainstorming is a situation where a group of people meet to generate new ideas and solutions around a specific domain of interest by removing inhibitions. People are able to think more freely and they suggest many spontaneous new ideas as possible. All the ideas are noted down and are not criticized and after brainstorming session the ideas are evaluated. The term was popularized by Alex Faickney Osborn in the 1953 book Applied Imagination. Process for generating creative ideas and solutions through intensive and freewheeling group discussion. Every participant is encouraged to think aloud and suggest as many ideas as possible, no matter seemingly how outlandish or bizarre. Analysis, discussion, or criticism of the aired ideas is allowed only when the brainstorming session is over and evaluation session begins. See also lateral thinking and nominal group technique. Individual Brainstorming While group brainstorming is often more effective at generating ideas than normal group problem solving, several studies have shown that individual brainstorming produces more and often better ideas than group brainstorming. This can occur because groups aren't always strict in following the rules of brainstorming, and bad behaviors creep in. Mostly, though, this happens because people pay so much attention to other people that they don't generate ideas of their own – or they forget these ideas while they wait for their turn to speak. This is called "blocking." Brainstorming induvidual brainstorming group brainstorming
  • 51. When you brainstorm on your own, you don't have to worry about other people's egos or opinions, and you can be freer and more creative. For example, you might find that an idea you'd hesitate to bring up in a group develops into something special when you explore it on your own. Group brainstorming Here, you can take advantage of the full experience and creativity of all team members. When one member gets stuck with an idea, another member's creativity and experience can take the idea to the next stage. You can develop ideas in greater depth with group brainstorming than you can with individual brainstorming. Another advantage of group brainstorming is that it helps everyone feel that they've contributed to the solution, and it reminds people that others have creative ideas to offer. It's also fun, so it can be great for team building. Process STEP 1: PREPARE THE GROUP First, set up a comfortable meeting environment for the session. Make sure that the room is well-lit and that you have the tools, resources, and refreshments that you need. How much information or preparation does your team need in order to brainstorm solutions to your problem? Remember that prep is important, but too much can limit – or even destroy – the freewheeling nature of a brainstorming session. Consider who will attend the meeting. A room full of like-minded people won't generate as many creative ideas as a diverse group, so try to include people from a wide range of disciplines, and include people who have a variety of different thinking styles. When everyone is gathered, appoint one person to record the ideas that come from the session. This person shouldn't necessarily be the team manager – it's hard to record and contribute at the same time. Post notes where everyone can see them, such as on flip charts or whiteboards; or use a computer with a data projector. STEP 2: PRESENT THE PROBLEM Clearly define the problem that you want to solve, and lay out any criteria that you must meet. Make it clear that that the meeting's objective is to generate as many ideas as possible. Give people plenty of quiet time at the start of the session to write down as many of their own ideas as they can. Then, ask them to share their ideas, while giving everyone a fair opportunity to contribute. STEP 3: GUIDE THE DISCUSSION Once everyone has shared their ideas, start a group discussion to develop other people's ideas, and use them to create new ideas. Building on others' ideas is one of the most valuable aspects of group brainstorming. Encourage everyone to contribute and to develop ideas, including the quietest people, and discourage anyone from criticizing ideas.
  • 52. Brain writing: Brain writing is the silent, written generation of ideas in a group. It was originally popularized in Germany in the 70s. There are two basic types: • nominal ideas in a group that are not shared with other group members while generating ideas and, • Interacting ideas that are shared for additional stimulation. An example of nominal brain writing would be a group of people write down ideas in index cards or Post-It Notes. Brain writing is simple. Rather than ask participants to yell out ideas, you ask them to write down their ideas about a particular question or problem on sheets of paper for a few minutes; then, you have each participant pass their ideas on to someone else, who reads the ideas and adds new ideas. After a few minutes, you ask the participants to pass their papers to others, and the process repeats. After 10 to 15 minutes, you collect the sheets and post them for immediate discussion. Process • Introduce the procedure. • Hand out paper for each person to write down ideas. • Provide a clear and legible problem statement. • Describe the timing of the brain writing and the process for passing the pages. A page-passing process that is not clear could undermine the credibility of the method and waste time. • Ask if anyone has any questions about the problem statement or the brain writing process. • Remind people to read the ideas quickly before entering their own ideas and to feel free to add, modify and combine ideas. Let people know that extra paper is around the room if they run out. • Begin the rounds. Announce the end of each round, and ask people to pass their paper to another person. • At the end of the session, collect the brain writing pages and post them for comment, additional ideas or review. Scamper method Checklist that helps you to think of changes you can make to an existing product to create a new one. You can use these changes either as direct suggestions or as starting points for lateral thinking SCAMPER stands for: S - Substitute - components, materials, people C - Combine - mix, combine with other assemblies or services, integrate
  • 53. A - Adapt - alter, change function, use part of another element M - Modify - increase or reduce in scale, change shape, modify attributes (e.g. color) P - Put to another use E - Eliminate - remove elements, simplify, reduce to core functionality R - Reverse - turn inside out or upside down When to use SCAMPER? • Use it to discover more ideas when you are running out. • Use it to stimulate new ways of thinking about the problem, perhaps to kick you out of your current rut. How to use SCAMPER? Step 1: Substitute • what parts of the product, service or process may be replaced by other things • Includes components, objects, materials the product is made of, people and roles involved in a process, etc. Step 2: Combine • Look for ways to assemble together things which are separate, to integrate steps and operations Step 3: Adapt • Make the product or service or part of it better suited to its environment or to things that come in contact with it, or to a specific group of clients. Step 4: Modify Change the properties of the product or service to make it larger, smaller, of different colors, tastes, etc Step 5: Put to another use Find other uses for the product or service that are different from the original intention. Step 6: Eliminate Remove a major function or component of the product or service. Step 7: Rearrange