Enterprise Project
aman_2910
EPLecture2Opportunity20v3.pptEnterprise Project UMCD9Q-30-3
Presentation by
Dr Akin Ojolo
Module Leader
September 2019
Lecture structure
Lecture will be in three parts:
- Ideas and Creativity
- Creative Process & Lateral Thinking
- Opportunity
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A simplified illustration of entrepreneurial process (Blundel & Lockett)
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Entrepreneurial learning and opportunity business model
(Blundel & Lockett)
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Idea and creativity
- What is an idea?
- What is creativity?
- Creative Thinking and Creative Process
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What is an idea?
- An idea is a network – neurons create new connections in our brain
- Where do they come from?
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11 ideas in
1 valuable idea out
- For every 11 ideas that enter new product development process only one new product will be launched (Page, 1993)
- New ideas that add value are at a premium
- It’s a numbers game – more ideas are generated, the more you might find a commercially successful concept
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Sources of ideas
- Customers
- Internet
- Newspapers and magazines
- Observation
- Demographic shifts
- Unexpected new events
- Trends and patterns of change
- New government regulation
- Emerging industries
Allen (2009)
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Observing Trends
Market
forces
Personal problems
Technology
Different industries
Business,
product
or service
opportunity
gap
New business,
product &
service ideas
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Enterprise Project UMCD9Q-30-3
Creative process & lateral thinking
Presentation by
Dr Akin Ojolo
Module Leader
September 2019
Creativity
- Sound creative thinking and solid creative processes are core of any true entrepreneur
- Creativity contributes/leads to innovation
- Innovation distinguishes successful entrepreneurs/enterprises from unsuccessful ones
- Focus is on commercial opportunity leading to new products, processes, services or marketing approaches
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Creativity
- Misconceptions:
- Special people
- Special activities
- Letting go
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creativity
- What is creativity
- Being creative involves doing something
- People are not creative in the abstract, they are creative in something i.e engineering; business; in writing; music in whatever
- You can’t be creative unless you were actually doing something
- Whatever the task, creativity is not just an internal mental process it involves action
- Rooted in imaginative thoughts in envisaging new possibilities
- In a sense it is applied imagination
- Creativity can be defined as imaginative process with outcome in the public world
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Individual creativity
Amabile (1998) – individual creativity has three components
Expertise = knowledge, technical, procedural and intellectual
Creative - thinking skills= linking, analysing, parodying, evaluating, etc.
Motivation = not all is equal= intrinsic is what you need – inner passion leads to faster solutions – can be influenced by work place
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Creativity
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Creative process
- Creativity is a process not an event
- There are three crucial features of a creative process ( Robinson (2001)
- The right medium
- The necessity to control the medium
- Freedom to experiment and take risks
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Creative
Process 1
Feedback loop
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Lateral thinking- Creative process 2
Vertical thinking vs. Lateral thinking
Being right vs. Being effective
Source: De Bono (1970)
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Techniques: Dominant ideas
Source: De Bono (1970)
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B
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B
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Techniques: The reversal method
In lateral thinking one is not looking for the right answer but for a different arrangement of information which will provoke a different way of looking at the situation (De Bono, 1970: 143)
Source: De Bono (1970)
A
B
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B
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Ideas generating process
Vertical Thinking
- Selective – rightness
- Moves only if there is a direction in which to move
- Analytical
- Sequential
- Must be correct at every step
- Creates negative to block certain paths
- Excludes what is irrelevant
- Follows most likely path
- Finite process – predictive logic
Lateral Thinking
- Generative – richness
- Generates direction
- Provocative
- Makes jumps
- Do not have to
- No negatives
- Welcome intrusion
- Least likely
- probability
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Enterprise Project UMCD9Q-30-3
Opportunity
Presentation by
Dr Akin Ojolo
Module Leader
September 2019
What is an opportunity?
- An opportunity is a favourable set of circumstances that creates a need for a new product, service or business
- A chance to meet a market need through a creative combination of resources to deliver superior value (Ardichvili, 2003)
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What is an Opportunity?
- Different notions of opportunities (from different scholars)
- Opportunities are created by the actions of entrepreneurs
- An opportunity represents a stream of continuously developed and modified ideas
- An opportunity can not be separated from the individual
- An opportunity exists only in the entrepreneur’s imagination
- An opportunity is intertwined with individual beliefs
- An opportunity constitutes an organising vision
- At individual level – thinking about opportunities depicts an understanding of empirical reality of aspiring and acting entrepreneurs……. stories
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Opportunities recognition
- Two levels of thinking about opportunities
- Individual level
- Systematic level
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Opportunity identification
- Entrepreneurs identify business opportunity to create value for stakeholders
- Careful investigation of and, sensitivity to market needs
- Spot suboptimal development of resources
away from present suboptimal configuration to more promising opportunities …… (Kirzner, 1973)
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process of opportunity recognition
- Entrepreneurial alertness
- Information asymmetry – prior knowledge
- Social network
- Personality traits
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process of opportunity recognition
- Entrepreneurial alertness- ability to notice things without engaging in deliberate search
- Recognition of opportunity preceded by a state of heighten alertness to information-
- Personality characteristics and environment interact to create entrepreneurial awareness (Galio, 1992)
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process of opportunity recognition
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process of opportunity recognition
- Information search
- Problemistic searches-
- driven by perception that particular expectations have not been met
- current performance is below their aspiration level
- Three distinct processes were identified by Heron and Sapienza (1992)- (based on 136 Swedish ventures)
- Proactive search (exploratory)- unique knowledge
- Reactive search (triggered by poor performance)
- Fortuitous discovery (unexpected event)
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process of opportunity recognition
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Contextual and social influences
- When individuals are engaged in intuiting – they are likely to be situated in a particular context -
- Executing a particular task, in a job, walking leisurely in the park etc
- Innovative ideas come from a variety of sources – potentially available to many people
- Individuals have absorptive or learning capabilities for assimilating and extending the available information- thereby generating different meanings from it.
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Reading
De Bono, Edward, 1970. Lateral thinking : a textbook of creativity. London: Ward Lock Educational.
Robinson, Ken. 2001. Out of our minds: Learning to be creative. Oxford: Capstone.
Richard Blundel & Nigel Lockett- Exploring Entrepreneurship practices and Perspectives
De Bono, E. (1995) ‘Serious Creativity’, The Journal for Quality and Participation, 18(5)
Majaro, S. (1992)’Managing Ideas for Profit’, Journal of Marketing Management, 8.
Page, A.L. (1993) ‘Confusion, Lack of Consensus and the Definition of Creativity as a Construct’, Journal of Creative Behaviour, 33.
Allen, K.R., 2009. Launching New Ventures : An Entrepreneurial Approach. 5th ed. Boston : Houghton Mifflin.
Barringer, B. R., and Duane Ireland, R. 2016. Entrepreneurship: Successfully Launching New Ventures, 5th ed., Upper Saddle River, New Jersey: Pearson Education Inc.
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