Creativity and Innovation

Creativity is one thing; innovation is another. It is the difference between idea and application, between imagination and action.

Creativity:
The original thought, the spark the blueprint, the original design concepts

􀁹The generation of ideas that result in the improved efficiency or effectiveness of a system.
􀁹The creative person is someone who has good imagination and good idea.


Innovation:
Translating the original thought into practice

Is the process by which entrepreneurs convert opportunities into marketable products/services
“The search for good ideas is never easy”
Translating the original thought into practice
Is a key function in the entrepreneurial process
Technology is the driving force of innovation success, but not necessarily with technology alone




Innovation
Innovation is the creation of better or more effective products, processes, services, technologies, or ideas that are accepted by markets, governments, and society.

Innovation differs from invention in that innovation refers to the use of a new idea or method, whereas invention refers more directly to the creation of the idea or method itself.


Types of innovation

1. Invention
Totally new product, service, or process
Wright brothers—airplaneThomas Edison—light bulbAlexander Graham Bell—telephone

2. Extension
New use or different application of an already existing product, service, or process
Ray Kroc—McDonald’s
Mark Zuckerberg—Facebook

3. Duplication
Creative replication of an existing concept
Wal-Mart—department storesGateway—personal computersPizza Hut—pizza parlor

4. Synthesis
Combination of existing concepts and factors into a new formulation or use
Fred Smith—Fed ExHoward Schultz—Starbucks




Principles of innovation
Be action oriented.
Make the product, process, or service simple and understandable.
Make the product, process, or service customer-based.
Start small.
Aim high.
Try/test/revise.
Learn from failures
Follow a milestone schedule.
Reward heroic activity.
Work, work, work.