Chapter
2: Inside the Entrepreneurial Mind: From Ideas to Reality
Learning Objectives
1. Explain the differences among creativity,
innovation, and entrepreneurship.
2. Describe why creativity and innovation are
such an integral part of entrepreneurship.
3. Understand how the two hemispheres of the
human brain function and what role they play in creativity.
4. Explain the 10 “mental locks” that limit
individual creativity.
5. Understand how entrepreneurs can enhance the
creativity of their employees as well as their own creativity.
6. Describe the steps in the creative process.
7.
Discuss
techniques for improving the creative process.
8. Describe the protection of intellectual
property involving patents, trademarks, and copyrights.
Class Instruction
Introduction
One of the
tenets of entrepreneurship is the ability to create new and useful ideas that
solve the problems and challenges that people face every day. As Chapter 1
discussed, entrepreneurs can create value in a number of ways. For example,
entrepreneurs invent new products and services, develop new technology,
discover new knowledge, improve existing products or services, and find
different way of providing more valuable goods and services with fewer
resources.
Creativity, Innovation, and Entrepreneurship LO
1
Creativity is the ability to develop new ideas and discover new ways
of looking at problems and opportunities.
Innovation is the ability to apply creative solutions to problems
and opportunities that enhance or enrich people’s lives.
One
entrepreneur explains, “Creativity is only useful if it is channeled and
directed.” Leadership expert Warren Bennis says, “Today’s successful companies
live and die according to the quality of their ideas.” A small percentage of
product ideas prove to be successful products. It is this creativity that is an important source of building a competitive advantage.
.
Entrepreneurship is the result of a
disciplined, systematic process of applying creativity and innovation to needs
and opportunities in the marketplace. Innovation must be a constant process
because most ideas do not work and most innovations fail.
Creativity – Essential to Survival LO
2
Creativity is an important source for
building a competitive advantage and for survival.
Making the inferential leap from what has
worked in the past to what will work today (or in the future) requires
entrepreneurs to cast off their limiting assumptions, beliefs, and behaviors
and to develop new insights into the relationship among resources, needs, and
values.
A paradigm
is a preconceived idea of what the world is, what it should be like, and how it
should operate. These ideas become so deeply rooted in our minds that they
become blocks to creative thinking, even though they may be outdated, obsolete,
and no longer relevant. A paradigm may also be defined in
the following ways:
·
A shared set of assumptions—The way we perceive the world helping to
explain and predict its behavior.
·
An overarching model—A concept that is either so widely accepted,
or applicable to so many different areas, that it can be used as a type of
template for understanding.
·
A set of rules and regulations,
written or unwritten—It establishes or
defines boundaries and tells you how to behave inside the boundaries.
Paradigms
stifle creativity when they limit or restrict the way people think about
possible solutions. Paradigms set parameters and cause thinking to be based on
past “rules and procedures” rather than open, creative thinking that can lead
to innovative solutions. Creative and innovative thought must break through the
barriers that paradigms can present.
Research into the operation of the human
brain shows that each hemisphere of the brain processes information
differently. One side of the brain tends to be dominant over the other. The
human brain develops asymmetrically, and each hemisphere tends to specialize in
certain functions. The left–brain handles language, logic, and symbols. The
right brain takes care of the body’s emotional, intuitive, and spatial
functions.
Right–brained
lateral thinking is somewhat unconventional,
unsystematic, and relies on kaleidoscope/lateral thinking. This describes the
process of considering a problem from all sides and jumping into it at
different points.
Left–brained vertical thinking is narrowly focused and systematic, proceeding in a
highly logical fashion from one point to the next. Left–brain thinking is
guided by a linear, vertical thought process progressing from one logical
conclusion to the next.
Those who have learned to develop their
right–brained thinking skills tend to:
·
Challenge custom, routine, and
tradition
·
Realize there is more than one
“right answer”
·
Have “helicopter skills” to rise
above daily routine
·
Ask the question: “Is there a better
way?”
Entrepreneurs can learn to tap their
innate creativity by breaking down the barriers to creativity that most of us
have.
Entrepreneurship requires both left– and
right–brained thinking.
Barriers to Creativity LO 4
There are many barriers to creativity—time
pressures, unsupportive management, pessimistic coworkers, overly rigid company
policies, and countless others.
The most difficult hurdles to overcome are
those that individuals impose upon themselves. In his book, A Whack on the Side of the Head, Roger
von Oech identifies ten “mental blocks” that limit individual creativity. They
are as follows:
1.
Searching for
just one right answer
2.
Focusing on
being logical
3.
Blindly
following rules
4.
Constantly
being practical
5.
Viewing play as
frivolous
6.
Becoming overly
specialized
7.
Avoiding
ambiguity
8.
Fearing looking
foolish
9.
Fearing mistakes and failure
10.
Believing that “I’m not creative”
Questions to
spur the imagination include:
1.
Is there a new
way to do it?
2.
Can you borrow
or adapt it?
3.
Can you give it
a new twist?
4.
Do you merely
need more of the same?
5.
Do you need
less of the same?
6.
Is there a
substitute?
7.
Can you
rearrange the parts?
8.
What if you do
just the opposite?
9.
Can you combine
ideas?
10.
Are customers
using your product or service in ways you never expected or intended?
11.
Which customers
are you not servicing? What changes to your product or service are necessary to
reach them?
12.
Can you put it
to other uses?
13.
What else could
we make from this?
14.
Are there other
markets for it?
15.
Can you reverse
it?
16.
Can you
rearrange it?
17.
Can you put it
to another use?
18.
What idea seems
impossible, but if executed, would revolutionize your business?
How to Enhance Creativity LO 5
New ideas are fragile creations, but the
right organizational environment can encourage people to develop and cultivate
them.
Ensuring that workers have the freedom and
the incentives to be creative is one of the best ways to achieve creativity.
Entrepreneurs can stimulate their own
creativity and encourage it among workers by:
1.
Including
creativity as a core company value
2.
Hire for
creativity
3.
Establish an
organizational structure that nourishes creativity
4.
Embracing
diversity
5.
Expecting
creativity
6.
Expecting and
tolerating failure
7.
Incorporate fun
into the work environment
8.
Encouraging
curiosity
9.
Design a work
space that encourages creativity
10.
View problems
as challenges
11.
Provide
creativity training
12.
Provide support
13.
Develop a
procedure for capturing ideas
14.
Talk and
interact with customers
15.
Monitor
emerging trends and identify ways your company can capitalize on them
16.
Look for uses
for your company’s products or services in other markets
17.
Rewarding
creativity
18.
Modeling
creative behavior
You can enhance individual creativity by
using the following techniques:
1.
Allow yourself
to be creative
2.
Forget the
“rules”
3.
Give your mind
fresh input every day
4.
Travel and
observe
5.
Observe the
products and services of other companies, especially those in complete
different markets
6.
Recognize the
creative power of mistakes
7.
Notice what is
missing
8.
Keep a journal
handy to record your thoughts and ideas
9.
Listen to other
people
10.
Listen to
customers
11.
Watch a movie
12.
Talk to a child
13.
So something
ordinary in an unusual way
14.
Keep a toy box
in your office
15.
Take note of
your “pain points”
16.
Do not throw
away seemingly “bad” ideas
17.
Read books on
stimulating creativity or take a class on creativity
18.
Take some time
off
19.
Be persistent
The Creative Process LO 6
Although new ideas may appear to strike
like a bolt of lightning, they are actually the result of the creative process.
The creative process involves seven steps:
1.
Preparation
2.
Investigation
3.
Transformation
4.
Incubation
5.
Illumination
6.
Verification
7.
Implementation
Techniques for Improving the Creative
Process LO 7
Brainstorming is a process in which a small group
interacts with very little structure to produce a large quantity of novel and
imaginative ideas. For a brainstorming session to be successful, an
entrepreneur should follow these guidelines:
1.
Keep the group
small—five to eight members
2.
Make the group
as diverse as possible
3.
Encourage
participants to engage in some type of aerobic exercise before the session
4.
Company rank
and department affiliation are irrelevant
5.
Give the group
a well–defined problem to address
6.
Provide the group
relevant background information about the problem in advance
7.
Limit the
session to 40 to 60 minutes
8.
Take a field
trip to visit the scene of the problem
9.
Appoint someone
the job of recorder
10.
Use a seating
pattern that encourages communication
11.
Throw logic out
the window
12.
Encourage all
ideas from the team, even wild and extreme ones
13.
Establish a
goal of quantity of ideas rather than quality
14.
Forbid
evaluation or criticism
15.
Encourage “idea
hitch–hiking”
16.
Dare to imagine
the unreasonable
Mind–mapping is an extension of brainstorming.
Mind–mapping is a graphical technique that encourages thinking on both sides of
the brain, visually displays the various relationships between ideas, and
improves the ability to view the problem from many sides. It relates to the way
the brain actually works. Rather than throwing out ideas in a linear fashion,
the brain jumps from one idea to another. In many creative sessions, ideas are
rushing out so fast that many are lost if a person attempts to shove them into
a linear outline.
The mind–mapping process works this way:
1.
Sketch a
picture symbolizing the problem
2.
Write down
every idea that comes to your mind – use key words and symbols
3.
When idea flow
starts to trickle, stop
4.
Allow your mind
to rest a few minutes
Force Field Analysis addresses the
problem to solved, the driving forces, and the restraining forces. Refer to
Figure 2.3 – Sample Force Field Analysis.
TRIZ is a systematic approach to
solve any technical problem and relies on 40 principles and left–brain thinking
to solve problems. Refer to Figure 2.4 – TRIZ Contradiction Matrix.
Rapid prototyping transforms ideas
into actual models that point out flaws and lead to improvements. The three
principles of rapid prototyping are “The Three R’s”: rough, rapid, and right.
Protecting Your Ideas LO 8
Entrepreneurs must understand how to put
patents, copyrights and trademarks to work for them.
·
Patents – a grant from
the federal government’s Patent and Trademark Office (PTO), to the inventor,
giving the exclusive right to use or sell the invention in the US for 20 years
from the date of the patent application.
·
Inventors who
develop a new plant can obtain a plant patent (by grafting or
cross–breeding, not planting seeds).
·
Most patents
are granted for new product inventions, but design patents, which extend beyond
the date the patent is issued, are given to inventors who make new original and
ornamental changes in the designs of existing products that enhance their
sales.
·
A device cannot
be patented if it has been in print anywhere in the world.
·
Before
beginning the lengthy process of applying for a patent, it is best to seek the
advice of a patent agent or attorney.
A list of registered patent, copyright
and trademark professionals are available at: http://www.uspto.gov/web/offices/dcom/olia/oed/roster/
The patent process involves these six
steps:
1.
Establish the
invention’s novelty
2.
Document the
device
3.
Search existing
patents
4.
Study search
results
5.
Submit the
patent application
6.
Prosecute the
patent application
A trademark is any distinctive word,
phrase, symbol, design, name, logo, slogan, or trade dress that a company uses
to identify the origin of a product or to distinguish it from other goods in
the market. A service mark is the same as a trademark, except that it identifies
and distinguishes the source of a service rather than a product. Refer to
Figure 2.7 – Trademark Applications and Trademarks and Renewals Issued.
A copyright is an exclusive right that
protects the creators of original works of authorship such as literary,
dramatic, musical, and artistic works. This includes motion pictures, software,
choreography, books, and recordings.
Protecting intellectual property is imperative. Unfortunately, not
every businessperson respects the rights of ownership to products, processes,
names, and works. The dynamics of the global market makes protecting
intellectual property even more challenging. The primary weapon is efficient
use of the legal system. Before bringing a lawsuit, an entrepreneur must
consider the following issues:
1.
Can the
opponent afford to pay if you win?
2.
Will you get
enough from the suit to cover the costs of hiring an attorney?
3
Can you afford
the loss of time and privacy from the ensuing lawsuit?
Conclusion
The creative process is a tenant of the
entrepreneurial experience. Success, and even survival itself, requires
entrepreneurs to tap their creativity. The seven steps of the creative process
allow the entrepreneur to transform an idea into a business reality.
1.
Preparation
2.
Investigation
3.
Transformation
4.
Incubation
5.
Illumination
6.
Verification
7.
Implementation
Creativity results in value and value
provides a competitive advantage. Entrepreneurs should protect their creative
ideas through patents, trademarks, servicemarks, and copyrights to sustain a
competitive edge.
Chapter Discussion Questions
1.
Explain the differences among creativity, innovation, and
entrepreneurship. (LO 1)
Creativity is
the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.
Innovation
is the ability to apply creative solutions to those problems and opportunities
to enhance or enrich people’s lives.
Entrepreneurship
is the ability of the entrepreneur to apply creative ideas into a business
model and succeed by doing things in an innovative way.
2.
How are creativity, innovation, and entrepreneurship
related? (LO 2)
Creativity is a core business skill that develops new ideas
and discovers new ways of looking at problems and opportunities, and
entrepreneurs lead the way in developing and applying that skill. Innovation is
the ability to apply creative solutions to problems and opportunities to
enhance or enrich people’s lives. Successful entrepreneurs come up with
creative ideas and then find ways to make them work to solve a problem or fill
a need. In an ever–changing world, creativity and innovation are vital to a
company’s success and survival.
3.
Why are creativity and innovation so important to the
survival and success of a business? (LO
2)
Creativity offers the potential to generate something from
nothing. When small business owners cannot outspend their larger rivals, they
can create powerful competitive advantages by “outcreating” and “outinnovating”
their larger competitors. Today’s successful businesses live and die according
to the quality of their ideas and the ability to protect them.
4.
One entrepreneur claims, “Creativity unrelated to a business
plan has no value.” What does he mean?
Do you agree? (LO 2)
Yes, creativity is only useful if it is channeled and
directed in a viable business concept. The definition of innovation addresses
the importance of applying this creativity to bring value to others. Expect
students to leverage information from the chapter to support their decision.
5.
Can creativity be taught or is it an inherent trait? Explain.
(LO 3)
Creativity can be taught. Research indicates that anyone can
be creative. Each person can be taught techniques and behaviors that can help
them generate new and creative ideas to solve problems and pursue
opportunities.
6.
How does the human brain function? What operation does each
hemisphere specialize in? What hemisphere is the “seat” of creativity? (LO 3)
Each hemisphere of the human brain processes information
differently and one side of the brain tends to be dominant over the other. The
left brain is guided by linear, vertical thinking and handles language, logic,
and symbols. The right brain takes care of the body’s emotional, intuitive, and
spatial functions, relying heavily on images. The “seat” of creativity comes
from the right brain that more efficiently leverages these attributes.
7.
Briefly outline the “ten mental locks” that can limit
individual creativity. Give an example of a situation in which you subjected
yourself to one of these mental locks.
(LO 4)
The ten mental
blocks are:
1.
Searching for the one right answer
2.
Focusing on being logical
3.
Blindly following the rules
4.
Constantly being practical
5.
Viewing play as frivolous
6.
Becoming overly specialized
7.
Avoiding ambiguity
8.
Fearing looking foolish
9.
Fearing mistakes and failure
10. Believing that “I’m not creative”
Each
student will have a different “mental lock” experience. Encourage them to
express and describe that mental lock.
8. What can entrepreneurs do to stimulate their
own creativity and to encourage it among workers? (LO 5)
Enhancing
individual creativity:
·
Allow yourself to be creative
·
Give your mind daily input
·
Keep a journal
·
Read books that stimulate creativity
·
Take a class on creativity
·
Take some time off
Ways
to enhance creativity:
·
Expect it
·
Tolerate and expect failure
·
Encourage curiosity
·
View problems as challenges
·
Provide creativity training
·
Provide support
·
Reward creativity
·
Model creative behavior
9. Explain the steps of the creative process.
What can an entrepreneur do to enhance each step? (LO 7)
The steps of the creative process include:
1.
Preparation
2.
Investigation
3.
Transformation
4.
Incubation
5.
Illumination
6.
Verification
7.
Implementation
Techniques
to assist entrepreneurs improve the creative process include brainstorming,
mind–mapping, and rapid prototyping.
10. Explain the differences among a patent, a
trademark, and a copyright. What form of intellectual property does each
protect? (LO 8)
·
A patent is a grant from
the federal government’s Patent and Trademark Office (PTO) to the inventor of a
product, giving the exclusive right to make, use, or sell the invention
in the U.S. for 20 years from the date of filing the patent
application.
·
A trademark is any
distinctive word, phrase, symbol, design, name, logo, slogan, or trade dress
that a company uses to identify the origin of a product or to
distinguish it from other goods in the marketplace.
·
A copyright is an exclusive
right that protects the creators of original works of
authorship such as literary, dramatic, musical, and artistic works. Examples of
these works include video games, software, sculptures, motion pictures,
choreography and others.
Self-Study
Quiz
1. What is the basic difference between
creativity and innovation?
A) Creativity means
coming up with a new product; innovation means coming up with a new process.
B) Creativity is a
more mentally straining exercise; innovation just comes naturally.
C) Creativity is having a new
idea on how to look at a problem or opportunity, while innovation is the
ability to apply the creative idea.
D) Creativity is
where the real money is made; innovations just usually stay in the lab.
D) Creativity is the
same thing as innovation, except creativity refers to ideas outside the
business realm.
(See "Creativity,
Innovation, and Entrepreneurship," page 40.)
2. Why are creativity and innovation so
critical to an entrepreneurs' survival?
A) Creativity and innovation
allow small companies with limited resources to compete with larger
competitors.
B) Creativity and
innovation keeps entrepreneurs focused on the initial business development
period.
C) Creativity and
innovation help entrepreneurs to replicate current products on the market.
D) Creativity and
innovation can substitute for a shaky business model.
E) Creativity and
innovation help the entrepreneur to secure financing for start-up capital.
(See "Creativity - Essential to
Survival," pages 42–44.)
3. Entrepreneurs require what
side of the brain to help them meet the requirements for success?
A) Left side
B) Right side
C) Both right and left sides
D) Neither right or
left sides
E) The brain is not
an important ingredient
(See "Creative Thinking," pages 44–47.)
4. Potential barriers to creativity are
limitless. Which one of those listed below is NOT a barrier?
A) Logical
thinking
B) Fearing failure
C) Ambiguity
D) Following the
rules
E) Being practical
with a solution
(See "Barriers to
Creativity," pages 48–53.)
5. Which of the following is a method for
enhancing organizational creativity?
A) Initiate a
controlling structure within the organization
B) Maintain the
same location or scenery
C) Encourage curiosity among
your employees
D) View issues as
potential problems
E) Provide no
support for creativity
(See "Enhancing Organizational
Creativity," pages 53–57.)
6. Enhancing creativity includes the following
EXCEPT:
A) Do something
different everyday
B) Lay off those who aren't
creative
C) Borrow ideas
from others not involved with your industry
D) Develop an
understanding of mistakes made
E) Listen to
others outside the organization
(See "Enhancing Individual
Creativity," pages 57–61.)
7. What is one of the best ways to generate
creative thinking while you are on the job?
A) Don't gain a
formal education
B) Don't gain a
total understanding of the problem
C) Don't think
convergently and divergently
D) Don't schedule every minute
of the day
E) Don't use
simulations
(See "The Creative
Process," pages 62–67.)
8. Which of the following shows
the proper order of select steps in the creative process?
A) Preparation,
implementation, verification, illumination
B) Preparation,
verification, implementation, illumination
C) Verification,
preparation, implementation, illumination
D) Preparation, illumination,
verification, implementation
E) Preparation,
implementation, illumination, verification
(See "The Creative
Process," pages 62–67.)
9. What is a good recommendation for forming
and conducting a brainstorming session?
A) Throw logic out the window
B) Distinguish
good ideas from bad ideas during the session
C) Create an
all-day retreat for the session
D) Restrict the
guest list to only top management
E) Allow employees
to prepare for the session ahead of time
(See "Techniques for
Improving the Creative Process - Brainstorming," pages 67–68.)
10. Music writers would need to
protect their songs by filing for which type of intellectual property
protection?
A) A patent
B) A trademark
C) A copyright
D) A trade secret
E) A service mark
(See "Intellectual Property:
Protecting Your Ideas," pages 72–79.)
Chapter Review
Multiple
Choice Questions:
1. What is the entrepreneurial “secret” for
creating value in the marketplace?
a. Applying Creativity and Innovation to Solve Problems
b.
Creating New Products and Services
c.
Learning by Doing
d.
Applying Lessons Learned from History
2. The ability to develop new ideas and
to discover new ways of looking at problems and opportunities is called:
a.
entrepreneurship
b.
innovation
c. creativity
d.
creative thinking
3. The
ability to apply creative solutions to problems and opportunities to enhance or
to enrich people’s lives is called:
a.
entrepreneurship
b. innovation
c.
creativity
d.
creative thinking
4. Harvard’s Theodore Levitt says that
creativity is ____________ new things, and innovation is ______________ new
things.
a. thinking; doing
b.
doing; thinking
c.
seeing; doing
d.
thinking; applying
5. Creativity often involves creating
something from nothing. However, it is more likely to result in:
a.
elaborating on the present.
b.
putting old things together in new ways.
c.
taking something away to create
something simpler or better.
d. All of the above.
6. Entrepreneurship is a constant process that
relies on:
a.
creativity, innovation, and profit.
b.
the ability to win over the consumer.
c. creativity, innovation, and application in the marketplace.
d.
intellectual property rights.
7. When developing creative solutions to
modern problems, entrepreneurs must:
a. go beyond merely using whatever has worked in the past.
b.
limit the creative process to only
profitable ventures.
c.
remember what has worked in the past.
d.
pay attention to limiting factors.
8. A
________________ is a preconceived idea
of what the world is, what it should be like, and how it should operate.
a.
innovation
b.
entrepreneur
c. paradigm
d.
profitable vision
9. Research shows that anyone can learn to be
creative. The problem is:
a.
many organizations fail to foster an
environment that encourages creativity.
b.
most people never tap into their pools
of innate creativity.
c.
most people have never been taught to be
creative.
d. All of the above.
10. Research
into the operation of the human brain shows that each hemisphere of the brain:
a.
develops symmetrically.
b.
controls similar functions.
c.
does not dominate the other hemisphere.
d. processes information differently.
11. The
left-brain is guided by:
a.
kaleidoscopic, lateral thinking.
b. linear, vertical thinking.
c.
asymmetrical thinking.
d.
intuitive thinking.
12. The right brain is guided by:
a. kaleidoscopic, lateral thinking.
b.
linear, vertical thinking.
c.
asymmetrical thinking.
d.
logical thinking.
13. Which
hemisphere of the brain is responsible for language, logic, and symbols?
a.
Right Hemisphere
b. Left Hemisphere
c.
Lateral Hemisphere
d.
Intuitive Hemisphere
14. Which
hemisphere of the brain is responsible for the body’s emotional, intuitive, and
spatial functions?
a. Right Hemisphere
b.
Left Hemisphere
c.
Vertical Hemisphere
d.
Logical Hemisphere
15. Which
hemisphere of the brain processes information in a step-by-step fashion?
a.
Right Hemisphere
b. Left Hemisphere
c.
Lateral Hemisphere
d.
Intuitive Hemisphere
16. Which
hemisphere of the brain processes information all at once and by relying
heavily on images?
a. Right Hemisphere
b.
Left Hemisphere
c.
Vertical Hemisphere
d.
Logical Hemisphere
17. _______________ vertical thinking is narrowly
focused and systematic, proceeding in a highly logical fashion from one point
to the next.
a. Left-brained
b.
Right-brained
c.
Unconventional
d.
Intuitive
18. _______________
lateral thinking is somewhat unconventional and unstructured.
a.
Left-brained
b. Right-brained
c.
Systematic
d.
Logical
19. In his book A Whack on the Side of the Head,
Roger von Oech views a “playful attitude” as:
a.
frivolous.
b. fundamental to creative thinking.
c.
a mental block.
d.
limiting individual creativity.
20. All
of the following represent barriers to creativity that entrepreneurs impose
upon themselves except:
a.
focusing on being too logical.
b.
being too practical.
c.
blindly following rules.
d. searching for more than one answer.
21. Roger
von Oech believes that blindly following rules leads to:
a.
order, which stimulates creativity.
b.
a clearer vision and business venture.
c.
new ways of doing things.
d. a mental block towards creativity.
22. Joseph
Schumpeter wrote that entrepreneurs perform the vital function of:
a.
challenging accepted ways of doing
things.
b.
creative destruction.
c.
revolutionizing current patterns of
production.
d. All of the above.
23. Entrepreneurs can stimulate their own
creativity and encourage it among workers by:
a. expecting and tolerating failure.
b.
avoiding problems.
c.
limiting rewards.
d.
not taking chances.
24. Which of the following is NOT one of the
ways entrepreneurs can stimulate their own creativity and encourage it among
their workers?
a.
Provide creativity training
b.
Encourage curiosity
c. View challenges as problems
d.
Develop a corporate culture that both
fosters and rewards creativity
25. Employees
must be given the tools and resources they need to be creative. One of the most valuable resources is:
a.
providing challenges.
b.
rules and guidelines.
c. time.
d.
money.
26. Hiring a diverse workforce:
a. helps
in enhancing organizational creativity.
b. allows for different ideas and varying
methods of problem solving.
c. brings
in people from different backgrounds, with different cultural experiences,
hobbies, and interests.
d. All of the above.
27. All
of the following are enhancements to individual creativity except:
a.
keeping a journal to record thoughts and
ideas.
b. limiting your reading sources.
c.
taking time off.
d.
allowing yourself to be creative.
28. Which of the following is NOT an enhancement
to individual creativity?
a. Listening
to other people.
b. Recognizing the
creative power of mistakes.
c. Keeping a toy box
in your office.
d.
Working
without breaks until the project is complete or the problem is solved.
29. Which
stage of the Creative Process includes on-the-job training?
a.
Implementation
b. Preparation
c.
Illumination
d.
Verification
30. Which
stage of the Creative Process requires one to develop a solid understanding of
the problem or
decision?
a. Investigation
b.
Preparation
c.
Illumination
d.
Verification
31. Which
stage of the Creative Process involves viewing the similarities and differences
in the
information
collected?
a. Transformation
b.
Incubation
c.
Illumination
d.
Verification
32. The
ability to see the similarities and the connections among various data and
events is called:
a. Convergent thinking
b.
Divergent thinking
c.
Transformational thinking
d.
Illumination
33. The ability to see the differences among
various data and events is called:
a.
Convergent thinking
b. Divergent thinking
c.
Transformational thinking
d.
Illumination
34. ________________
thinking is the ability to see similarities and ___________________ thinking is
the ability to see differences among various data and events.
a.
Divergent; Convergent
b. Convergent; Divergent
c.
Convergent; Transformational
d.
None of the above.
35. During
the Incubation Phase of the Creative Process, the entrepreneur might do all of
the following EXCEPT which one to let ideas “marinate” in his mind?
a. Do
something totally unrelated for awhile.
b. Relax
and play regularly.
c. Work
on the problem or opportunity in a different environment.
d. Don’t allow
himself to daydream.
36. At
which stage of the Creative Process does a spontaneous breakthrough occur,
allowing all of the previous stages to come together to produce the “Eureka
Factor” or the “light bulb goes on”?
a.
Implementation
b.
Preparation
c. Illumination
d.
Verification
37. “Verification” refers to:
a.
validating the idea as accurate and
useful.
b. possibly
conducting experiments, running simulations, test marketing a product or
service.
c.
possibly asking questions such as “will
it work?” and “is it really a better solution?”
d. All of the above.
38. The focus of this step in the Creative
Process is to transform the idea into reality.
a. Implementation
b.
Preparation
c.
Illumination
d.
Verification
39. ______________ is a process in which a small
group of people interacts to produce a large quantity of imaginative ideas.
a.
Groupthink
b.
Mind-mapping
c. Brainstorming
d.
Prototyping
40. Effective
Brainstorming involves all of the following except:
a.
a small group of people
b.
an open uninhibited environment
c. an effective method to evaluate ideas
d.
very little structure
41. ________________ is a graphical technique that encourages
thinking on both sides of the brain, visually displays the various
relationships among the ideas, and improves the ability to view a problem from
many sides.
a.
Brainstorming
b. Mind-mapping
c.
Prototyping
d.
Groupthink
42. Mind-mapping is a useful tool for
jump-starting creativity. It includes all of the following except:
a. sketching
a picture to symbolize the problem or area of focus in the center of a sheet of
paper.
b. writing
down every idea that comes into your mind, connecting each idea to the central
picture.
c.
allowing your mind to rest for a few
minutes before integrating the ideas.
d. forcing creativity when ideas start to trickle.
43. The
premise behind _____________ is that transforming an idea into an actual model
will lead to improvements in its design.
a. Rapid Prototyping
b.
Mind-mapping
c.
Brainstorming
d.
Inventions
44. The three principles (3 R’s) of Rapid
Prototyping are:
a.
develop a rough model, rapidly and for
the right price.
b.
develop a complete model, rapidly and
for the right problem.
c. develop a rough model, rapidly and for the right problem.
d.
develop a right model, roughly, for the
right price.
45. Steps
in the Patent Process include:
a.
establishing whether or not it is a
novelty.
b.
documenting and verifying the date the
idea was first conceived.
c.
searching existing patents.
d. All of the above.
46. To
which governmental office must applications for patents be submitted?
a. The U.S. Patent and Trademark Office
b.
The individual State Offices of Patent
Development
c.
Both A and B are correct.
d.
None of the above.
47. Any
distinctive word, phrase, symbol, name or logo a firm uses to distinguish
itself or its products is called a:
a. trademark.
b.
patent.
c.
copyright.
d.
service mark.
48. A
_____________ is an exclusive right that protects the creators of original
works such as literary,
dramatic, musical, and artistic works.
a.
Trademark
b.
Patent
c. Copyright
d.
Service Mark
49. Copyrights
protect the creator of original works such as:
a. software, choreography, and motion pictures.
b.
symbols, names and designs.
c.
Both A and B are correct.
d.
None of the above.
50. Which
of the following questions should you consider before entering a lawsuit to
protect intellectual property?
a.
Can you afford the loss of time, money
and privacy the lawsuit will bring?
b.
Can the opponent afford to pay if you
win?
c.
Do you expect to get enough from the
suit to pay for the costs of hiring an attorney?
d. All of the above.
True/False
Questions:
51. Creativity is the ability to apply
creative solutions to problems and opportunities to enhance or enrich people’s
lives.
False
52. Innovation is the ability to develop
new ideas and to discover new ways of looking at problems and opportunities.
False
53. Creativity is the ability to develop
new ideas and to discover new ways of looking at problems and opportunities.
True
54. Innovation is the ability to apply
creative solutions to problems and opportunities to enhance or enrich people’s
lives.
True
55.
Successful entrepreneurs come up with
ideas and then find ways to make them work to solve a problem or fill a need.
True
56. Creativity and innovation are the
signature of large, entrepreneurial businesses.
False
57. Creativity and innovation are the
signature of small, entrepreneurial businesses.
True
58. Although creativity sometimes involves
generating something from nothing, it more likely results in elaborating on the
present, putting old things together in new ways, or taking something away to
create something simpler or better.
True
59. Innovation must be a constant process
because most ideas don’t work and most innovations fail.
True
60. For every 3,000 new product ideas,
four make it to the development stage, two are actually launched, and only one
becomes successful in the market.
True
61. On average, new products account for
2/3 – 3/4 of companies’ sales.
False
62. Creativity is not only an important source
for building a competitive advantage, but it also is necessary for survival.
True
63. History is always a reliable predictor
of the future of business.
False
64. Entrepreneurs must embrace traditional
assumptions and perspectives about how things ought to be because they support
creativity.
False
65. A paradigm is a preconceived idea of
what the world should be like.
True
66. Paradigms may become so deeply rooted in our
minds that they become immovable blocks to creative thinking.
True
67. While most people see what they’ve
always seen, entrepreneurs are able to see beyond
preconceptions.
True
68. Successful entrepreneurs push
technological and economic boundaries forward and sometimes make unconventional
decisions.
True
69.
The rapidly accelerating rate of
change has created an environment in which staying in a leadership position
requires constant creativity, innovation, and entrepreneurship.
True
70. Research shows that not everyone can
be creative.
False
71. Businesses typically foster an
environment that encourages creativity.
False
72. Research shows that each hemisphere of the
human brain processes information differently and that one side of the brain
tends to be dominant over the other.
True
73. The left brain is guided by linear,
vertical thinking.
True
74. The
right brain is guided by linear, vertical thinking.
False
75. The left-brain relies on
kaleidoscopic, lateral thinking.
False
76. The right brain relies on kaleidoscopic,
lateral thinking.
True
77. The left brain handles language,
logic, and symbols.
True
78. The right brain takes care of the
body’s emotional, intuitive, and spatial functions.
True
79. The right brain processes information intuitively—all
at once, relying heavily on images.
True
80. The left brain processes information
in a step-by-step fashion.
True
81. The left brain processes information
intuitively—all at once, relying heavily on images.
False
82. The right brain processes information
in a step-by-step fashion.
False
83. Right-brained individuals tend to
challenge tradition, custom, and routine.
True
84. Left-brained individuals realize that
there may be more than one right answer.
False
85. Entrepreneurship requires both left
and right-brained thinking.
True
86. Right-brain
thinking draws on the power of divergent reasoning, which is the ability to
create a multitude of original, diverse ideas, while left-brain thinking counts
on convergent reasoning, the ability to evaluate multiple ideas and choose the
best solution to a given problem.
True
87. Entrepreneurs
need to rely on left-brain thinking to generate innovative product, service, or
business ideas and use right-brain thinking to judge the market potential of
the ideas they generate.
False
88. Intuition
is based on the accumulated knowledge and experiences a person encounters over
the course of a lifetime and resides in the subconscious.
True
89. “Constantly Being Practical” is a
mental block that can stifle creativity.
True
90. Viewing play as frivolous is a mental
block, which stifles creativity.
True
91. Ambiguity tends to destroy creativity.
False
92. Failure is an important part of the creative
process, as it provides a chance to learn how to succeed.
True
93. Employees tend to rise—or fall—to the
level of expectations entrepreneurs have of them.
True
94. Hiring a diverse work force makes it more
difficult to achieve creativity in the workplace.
False
95. Entrepreneurs can encourage creative
thinking in their employees by setting examples of creative behavior and
rewarding creative behavior when exhibited by their employees.
True
96. “Divergent Thinking” is the ability to
see similarities and connections among various data and events.
False
97. “Convergent Thinking” is the ability
to see the differences among data and events.
False
98. It may appear in the Incubation Stage
of the Creative Process that the entrepreneur is loafing, as he is taking time
to reflect on the information collected.
True
99. The Illumination Stage of the Creative
Process is often called the “Eureka Factor” and is characterized by a
spontaneous breakthrough.
True
100. The typical entrepreneurial philosophy is
“Ready, aim, aim, aim…”
False
101. When “Brainstorming,” individuals should be
encouraged to use “idea hitchhiking,” or building new ideas on those already
suggested.
True
102. During a
brainstorming session, company rank and department affiliates are irrelevant.
True
103. Mind mapping is a graphical technique that
encourages thinking on both sides of the brain, visually displays the various
relationships among ideas, and improves the ability to view a problem from many
sides.
True
104. Rapid prototyping, transforming an idea into
an actual model, typically does not lead to
improvements in design.
False
105. A patent gives the inventor the exclusive
right to make, use, or sell an invention for 50 years.
False
106. One study reports that for the typical small
business, obtaining a patent and maintaining it for 20 years costs about
$10,000.
True
107. Trademarks are distinctive words, symbols,
designs, names, or logos used for company identification.
True
108. A patent protects the creator of original
works of authorship such as for software.
False
109. The U.S. Copyright Office does not require
registering the creative work because registering it does not give creators
greater protection over their work.
False
110. The
major problem with relying on the legal system to enforce ownership rights is
the cost of infringement lawsuits, which can quickly exceed the budget of most
small businesses.
True
Essay Questions:
111. What
is the entrepreneurial “secret” for creating value in the marketplace?
Creativity and Innovation should be used in
combination to allow the entrepreneur to solve real world problems and to
exploit opportunities and the profits that come with them. Creativity should
always be directed and complement the business plan.
Creativity is the ability to develop new
ideas and to discover new ways of looking at problems and to exploit
opportunities that people face everyday. Innovation is the ability to apply creative
solutions to those problems and opportunities to enhance and enrich people's
lives.
112. Explain
the differences between the left and right sides of the brain.
The left brain is guided by linear,
vertical thinking, whereas the right brain relies on kaleidoscopic, lateral
thinking. The left brain handles
language, logic, and symbols, whereas the right brain takes care of the body’s
emotional, intuitive, and spatial functions.
The left brain processes information in a step-by-step fashion, whereas
the right brain processes it intuitively—all at once, relying heavily on
images. Left-brained vertical thinking
is narrowly focused and systematic, whereas right-brained lateral thinking is
somewhat unconventional, unsystematic, and unstructured.
113. List
five of the “mental locks” that limit individual creativity.
The five should come from the
following list:
·
Search
for the one “right” answer.
·
Focus
on “being logical.”
·
Blindly
follow the rules.
·
Constantly
be practical.
·
View
play as frivolous.
·
Become
overly specialized.
·
Avoid
ambiguity.
·
Fear
looking foolish.
·
Fear
mistakes and failure.
·
Believe
that “I’m not creative.”
114. List five ways entrepreneurs can stimulate
their own creativity and encourage it among
workers.
The five should come from the
following list:
·
Expect
creativity.
·
Embrace
diversity.
·
Expect
and tolerate failure.
·
Encourage
curiosity.
·
View
problems as challenges.
·
Provide
creativity training.
·
Provide
support.
·
Reward
creativity.
·
Model
creative behavior.
115. List
five ways individuals can enhance their own creativity.
The five should come from the
following list:
·
Allow
yourself to be creative.
·
Give
your mind fresh input every day.
·
Recognize
the creative power of mistakes.
·
Keep
a journal handy to record your thoughts and ideas.
·
Listen
to other people.
·
Read
books on stimulating creativity or take a class on creativity.
·
Talk
to a child.
·
Keep
a toy box in your office.
·
Take
some time off.
116. List
and briefly explain the seven steps in the Creative Process.
1.
Preparation
– Get your mind ready for creative thinking through formal education, OJT, work
experience, etc. This helps to build
creativity and innovation.
2.
Investigation
– Develop a solid understanding of the problem or decision.
3.
Transformation
– View the similarities and differences in the information collected.
4.
Incubation
– Take time to reflect on the information collected.
5.
Illumination
– A spontaneous breakthrough occurs, causing the “light bulb to go on.” All of the previous stages come together to produce
the “Eureka factor.”
6.
Verification
– Validate the idea as accurate and useful.
May include conducting experiments, running simulations, test marketing
a product or service, etc., to verify that the new idea will work and is
practical.
7.
Implementation
– Transform the idea into reality.
117. Explain
“brainstorming” and list at least five of the guidelines for a successful
brainstorming session.
Brainstorming is a process in which a
small group of people interact with very little structure with the goal of
producing a large quantity of novel and imaginative ideas. The goal is to create an open, uninhibited
atmosphere that allows member of the group to “freewheel” ideas. Five guidelines should come from the
following list:
·
Keep
the group small—five to eight members.
·
Have
a well-defined problem for the group to address, but don’t reveal it ahead of
time.
·
Limit
the session to 40-60 minutes.
·
Appoint
someone to be the recorder and write every idea on a flip chart.
·
Use
a seating pattern that encourages communication and interaction.
·
Encourage
all ideas from the team, even wild and extreme ones.
·
Establish
a goal of quantity of ideas rather than quality.
·
Forbid
evaluation or criticism of any idea during the session.
·
Encourage
participants to use “idea hitchhiking” or to “piggyback”/build new ideas on
those already suggested.
118. Why
is it important for an entrepreneur to use techniques like Mind-mapping, which
use both sides of the brain?
Mind-mapping,
a graphical technique that encourages thinking on both sides of the brain,
visually displays the various relationships among ideas, and improves the
ability to view a problem from many sides. Since entrepreneurs themselves tend
to be left or right-brained thinkers, techniques like Mind-mapping encourage
them to look at problems and opportunities in a different way. Mind-mapping is
also a useful tool that includes: sketching a picture symbolizing the problem,
connecting each idea to the central picture or words with a line, and allowing
your mind to rest for a few minutes before beginning to integrate the ideas.
119. List
the steps an entrepreneur should follow in order to enhance his/her chances of
receiving a patent.
1.Establish the invention’s novelty.
2.Document the device.
3.Search existing patents.
4.Study search results.
5.Submit the patent application.
6.Prosecute the patent application.
1 comments:
good work
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