Creativity and Innovation

Creativity and Innovation

Creativity is the generation of ideas that results in the improved efficiency or effectiveness of a system.

Innovation is the process by which entrepreneurs convert opportunities into marketable ideas.

Sources of Innovation Ideas

1. Trends: It signals shift in the prevailing style of the major population. Close observation of these trends will help an entrepreneur recognize an opportunity. Examples include; Societal trends, Economic trends, Government trends and technology trends.
2. Unexpected Occurrences: These are successes or failures that, because they were unforeseen, they become major innovative surprise to everyone example Apple Computer (microcomputers) and 9/11 terrorists attack in the united States which produced an influx of innovative solutions to the newly created challenge of homeland security.
3. Incongruities: These occur when a gap exists between expectations and reality. for example; Overnight Package Delivery.
4. Process Needs: These occur when an answer to a particular need is required and an entrepreneur has to recognize an innovative solution. Example; Sugar-free products, Caffeine-free coffee and Microwave ovens.
5. Industry and Market changes: Industries and Markets undergo changes in structure or design which is mainly caused by developments such as consumer attitudes, advancements in technology and industrial growth. For example; Health care industry changing to home health care.
6. Demographic changes: This arise from trend changes in population, age, education, occupations, geographic  locations and similar factors. Demographic changes are important and often provide new entrepreneurial opportunities. For example; Rest homes or retirement centers for older people.
7. Perceptual changes: These are changes that occur because people are more educated and sophisticated. For example; perceived need to be healthy and physically fit has created a demand for both health foods and health facilities throughout the country and there is growing need for fitness making people to exercise.
8. Knowledge-based concepts: These are inventions, new thinking, new methods. For example Mobile (cell phone) technology, pharmaceutical industry and Robotics.