Creativity is the generation of ideas that result in the improved efficiency or effectiveness of a system.On the other hand, innovation is the process by which entrepreneures convert opportunities and ideas into marketable solutions.
The first source of innovative ideas is TREND. Observing trends closely will grant an entrepreneur the ability to recognise a potential opportunity. The various trends are; societal trends, which has to do with ageing demographics, health and fitness growth and senior living. Technology trends consist of (cell phones) technology, e-commerce, internet advances. Finaly, government trends; increased regulations, petroleum prices, terrorism.
The second source of innovative ideas is unexpected occurrences; these are success or failures that because they were unanticipated or unplanned, often prove to be a major innovative surprise to everyone. An example is the infamous 9/11 terrorist attack on the United States. it produced an influx of innovative solutions to newly created challenge of homeland security.
Third is incongruities; this occurs when a gap or difference exists between expectations and reality. for example when Fred Smith proposed overnight mail delivery, he was told " if it were that profitable, U.S post office would be doing it. it turned out Smith was right. An incongruity existed between what smith felt was neede and the way business was currently conducted; thus he created fedEX
Fourth is process needs; These occur when an answer to a particular need is required. Venture capitalists often refer to these needs as "pain". examples include the creation of new medical devices, health foods, pharmaceuticals, and time-saving innovations.
Fifth is industry and market changes;Continual shifts in the market are caused by developments such as consumer attitudes, advancements in technology and industry growth. Industries and markets allways undergo changes in structure, design, or definition. An example can be found in the health care industry- hospital care has undergone radical changes, and home health care and preventive medicines have replaced hospitalization and surgery as primary focus areas. The entrepreneur needs to be aware of and seize this emerging opportunities.
Demographic changes; These arises from trend changes in population, age, education, occupations, geographic locations, and similar factors. Demorgraphic shifts are important and often provide new intrepreneurial opportunities. For example, as the average population age in Florida andArizona has increased (due largely to the influx of retirees), land development, recreational, and health care industries all have profited.
Perceptual changes; These are changes that occur in people's interpretation of facts and concepts. perceptual changes are intangible but meaningful. Perception can cause major shifts in ideas to take place.The current fitness craze, caused by the perceived need to be healthy and physically fit, has created a demand for both health foods and health facilities throughout the country. Another example is people's desire to better use their personal time. As a result, the travel industry has capitalized on consumers' current need to " see the world" while they are young and healthy, and time -share condominiums and travel clubs have increased.
Knowledge based concepts; These are the bases for creation or development of something brand new. Inventions are knowledge based; they are the products of new thinking, new methods and new knowledge. Such innovations often requires the longest time period between initiative and market implementation because of the need for testing and modification. For example, today's cell phone technology has advanced to include not just phone service but cameras, internet access, and music. This has revolutionized the way we use different technologies today. These concepts were not thought possible just five years ago;
