BUS652 Study Guide
| Site: | Saylor Academy |
| Course: | BUS652: Creativity and Ideation in Entrepreneurship |
| Book: | BUS652 Study Guide |
| Printed by: | Guest user |
| Date: | Monday, 7 April 2025, 5:35 AM |
Navigating this Study Guide
Study Guide Structure
In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit.
Beneath each learning outcome are:
- questions for you to answer independently;
- a brief summary of the learning outcome topic; and
- and resources related to the learning outcome.
At the end of each unit, there is also a list of suggested vocabulary words.
How to Use this Study Guide
- Review the entire course by reading the learning outcome summaries and suggested resources.
- Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.
By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.
Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!
Unit 1: Creativity and the Entrepreneur
1a. Compile and analyze the methods entrepreneurs use to gain an entrepreneurial mindset, such as vision and goals
- What are the different types of entrepreneurs?
- How might an entrepreneur apply the business lifecycle in their business?
- What two models or frameworks can be used to develop a business idea?
An entrepreneur is a person who identifies and acts on an idea or problem that no one else has acted on. There are four types of entrepreneurs. The first is an innovator who finds new approaches or methods that uniquely add value. Creators are people who see a problem others have not noticed. A market maker is a person who innovates or reinvents their market to consider what the market can evolve into. An expander (or scaler) is a person who seeks out opportunities to expand on previously created methods or products.
Every successful entrepreneur develops a vision statement, which is the picture of what the entrepreneur has for the future. A mission statement is a formal declaration about what the venture will do, how it will add value, and how the company will accomplish these actions. A value proposition is a summary statement that conveys the benefits of the product, service, or business model. To make a business successful, entrepreneurs should have an entrepreneurial mindset, which is an awareness and focus on identifying an opportunity through solving a problem and a willingness to move forward to advance the idea.
A new venture lifecycle consists of three main stages: pre-seed, early stage, and late stage. Pre-seed involves idea development, while early stages involve implementation, growth, and maturity. The late stage involves selling the business or seeking funding for future growth. The business life cycle consists of phases a business goes through startup, launch, growth, maturity, harvest, and rebirth or exit. In each phase, an entrepreneur will take a different approach to managing the idea or the business.
Many entrepreneurs use the Lean Model Canvas to identify problems, solutions, value propositions, and customer segments. In doing so, successful entrepreneurs focus on the concept of the design thinking process, which involves empathizing, defining, ideating, prototyping, and testing.
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1b. Apply creative thinking and brainstorming techniques, such as mind maps, design thinking, and ideation processes
- What are some ways you can use creativity processes to develop ideas?
- What are the steps in the creativity process?
- What is open innovation?
Many tools can be used to help with creative thinking. One way is the SixThinking Hats method, which creates structure around how to think about new ideas. The six hats are:
- The white hat, which focuses on information gathering;
- The red hat, which focuses on emotions;
- The black hat, which focuses on logic and caution;
- The yellow hat, which focuses on optimism;
- The green hat, which focuses on creativity; and
- The blue hat, which focuses on structure.
Other ideas to generate creativity include scheduling creative free time, thinking about the quantity over the quality of ideas, and reading and writing more. The SCAMPER technique is a way of thinking about modifying an existing idea and involves looking at a product or service in a new way.
When attempting to be creative in a team, some threats to team creativity can get in the way. These include social loafing, conforming, production blocking, and performance matching.
Open innovation involves searching for and finding solutions outside of the organizational structure. It takes an optimistic view of sharing information and ideas. In using open innovation, organizations employ creativity, innovation, and invention. Creativity is the ability to develop something original. Innovation is a change that adds value to an existing product or service, while invention is a novel product or process that is a major leap in improvement.
The creativity process involves five stages: preparation, incubation, insight, evaluation, and elaboration. When employing a creativity process, understanding the meaning of the five key qualities of innovative products is important. These qualities are sometimes called DICEE: deep, indulgent, complete, elegant, and emotive.
The Timmons Framework is a method of looking at creative ideas and involves consideration of opportunities, objectives, and resources needed to meet the objectives.
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Unit 1 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- creativity
- creator
- design thinking process
- entrepreneur
- expander (scaler)
- innovation
- innovator
- invention
- market maker
- mission statement
- open innovation
- SCAMPER technique
- Six Thinking Hats method
- Timmons Framework
- value proposition
- vision statement
Unit 2: The Ideation Process and Innovation
2a. Propose actions to take in each stage of the ideation process
- What does Design Thinking involve?
- What phases might a person go through if going through an ideation process?
- How do problem-solving skills relate to design thinking processes?
The Stanford School Design thinking process addresses six stages of design, which include empathizing, defining, ideating, prototyping, testing, and sharing. This model allows you to see problems and opportunities and can help you learn how to brainstorm and solve problems.
Another way to think of the ideation process is to separate it into three phases: the inspiration, the ideation, and the implementation phases. The inspiration phase encourages getting to know the people you are designing for and understanding their needs. The ideation phase involves coming up with ways to prototype potential solutions based on what you learned. The implementation phase is where you bring your solution to life. During the ideation phase, it is often helpful to consider feasibility (can we do this?), viability (should we do this?), and desirability (do our customers want this?).
Another way to look at the design phase is to consider an adaptive or innovative model. An adaptive model seeks solutions for problems in ways that are tested and known to be effective. The innovative problem-solving model uses techniques unknown to the market and tends to search outside the box for solutions to problems.
Problem-solving skills are necessary as well. These can include resourcefulness, critical thinking skills, and the ability to analyze data. There are several types of problem-solvers, which include self-regulating problem-solvers, theorist problem-solvers, and petitioner problem-solvers.
When we look at ideation from a creative perspective, we may want to use the creative problem-solving process, which includes clarity, ideation, development, implementation, and evaluation.
Some organizations take a lean problem-solving problem approach in their ideation and problem-solving processes. This includes clarifying the problem, analyzing the problem, setting targets, identifying root causes of issues, developing countermeasures, implementing countermeasures, monitoring results, and standardizing the processes that are successful.
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2b. Describe the elements of the innovation process
- What are the forms of product innovation?
- How can Systematic Inventive Thinking be applied to solve problems?
- How might companies use open innovation?
Understanding the difference between invention and innovation is important during the ideation process. Invention involves discovering something new, while innovation means using a new idea or method. There are different degrees of innovation, including incremental and disruptive. Incremental innovation is the release of a new model of something, which makes small improvements to the old model. Disruptive innovation is launching a new business model, concept, product, or service that creates a new market segment. An example is streaming music, which was a completely new way of listening to music.
Product innovation can come in three different forms, which influence the development of a new product, an improvement on an existing product, and a new feature to an existing product. With service innovation, enhancement of the utility of the service, performance of the service, and value of the offering are important. Process innovation includes changing the equipment and technology used to make production more efficient. Technological innovation focuses on improving products and services through technology like AI, data science, and automation.
Systematic Inventive Thinking (SIT) is a backward approach to innovation that applies the idea of subtraction, task unification, multiplication, division, and attribute dependency to develop innovative products and services.
The Innovation Ambition Matrix is a model that helps companies decide how to fund different growth methods. It focuses on core innovation, adjacent innovations, and transformative innovations.
Innovation, however, often causes resistance to change. Often, employees and stakeholders can be resistant to change. Some reasons for resistance can include poor timing, lack of rewards, and fear of the unknown.
Open innovation is a business management model for innovation that promotes collaboration with people and organizations outside of the company. It can help break silos in organizations and help companies think differently while building alliances.
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2c. Compare and contrast methods to ensure innovation in an organization, such as analysis of risks and innovation leadership
- How does an innovative culture contribute to innovation?
- What is the leader’s role in building an innovative culture?
- How do you define sustainable innovation?
An innovative culture is a work environment that fosters and rewards employee creativity instead of focusing on deadlines and revenue. Key characteristics of an innovative culture include a unique strategy, autonomy, trust, accepting failures, and leadership.
Leaders can build innovative work cultures by encouraging the sharing of ideas, building trust, investing in training, and investing resources in research and development. Some organizations fail at innovation due to fears of taking risks, lack of market orientation, and poor organizational structure and processes.
When leaders look at sustainable innovation, it means looking at ways to sustain continuous innovation and improvement for company growth and competitive advantage. As a result, many companies focus on green design, eco-design, sustainable product design, and many other ways to assist a company with innovation and sustainability.
To review, see:
Unit 2 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- desirability
- disruptive innovation
- feasibility
- ideation phase
- ideation process
- implementation phase
- incremental innovation
- Innovation Ambition Matrix
- inspiration phase
- process innovation
- service innovation
- Systematic Inventive Thinking (SIT)
- technological innovation
- viability
Unit 3: Idea Feasibility Analysis
3a. Evaluate the potential success of entrepreneurial activities based on tools such as SWOT and competitive analysis
- What are the mix of tools entrepreneurs can use to determine if their idea is a good one?
- How might an entrepreneur conduct primary and secondary research on their idea?
- What is a unique selling proposition?
Once an organization or a person has an idea for a business, it is important to research the idea to ensure it is viable. Entrepreneurs can use primary research, which they can do themselves at the cost of time and money. Secondary research is a type of research where a person finds already available data.
For an idea to be recognized as an opportunity, it must meet three criteria: significant market demand, significant market structure and size, and significant margins and resources.
Another important step to take is to perform a competitive analysis. This involves listing competitors' strengths, weaknesses, quality levels, price points, and other factors. This can give an entrepreneur a good picture of the competition to determine a viable idea. SWOT analysis, which lists strengths, weaknesses, opportunities, and threats, is also a good way to determine if moving forward with an idea makes sense. A PEST analysis can also be used, which looks at external political, economic, societal, and technological factors to help determine the validity of an idea. Many other tools can be used, such as the VRIO Framework. Using various tools will help the entrepreneur clearly define their idea and their ability to move forward with the idea.
Some entrepreneurs will use the three circles to help them identify their unique selling proposition. An entrepreneur also wants to consider the business model, which includes addressing the company's offering, customers, financial viability, and infrastructure.
Awareness of the type of economy the business will operate in is important because it can help the entrepreneur determine the viability of the product or service they wish to offer.
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3b. Analyze a feasibility analysis for a new proposed venture, such as by using a Business Model Canvas
- What can a financial analysis tell an entrepreneur about their business idea?
- How can a Business Model Canvas be used to hone in on the details of a business idea?
- How can the customer empathy map be used to help understand the value proposition?
When entrepreneurs use feasibility analysis, they look at three aspects of their idea: organizational, financial, and market. A financial analysis seeks to project revenue and expenses. It might include a one-year profit and loss projection, breakeven calculations, and other financial estimates. A market feasibility analysis examines the overall market and focuses on the potential market share the entrepreneur can obtain. The organizational feasibility analysis focuses on what resources will be needed, how they might be obtained, and the abilities of the management team or entrepreneur to carry out the duties required to make the business successful.
Using a Business Model Canvas can also help determine feasibility. A Business Model Canvas can help the entrepreneur map or lay out the initial concept of their business. Some businesses also use the customer empathy map, which portrays the customer's pain points, such as fears and frustrations, and the gains they hope to achieve. This type of map can help companies determine how their proposed idea is different, serves the customer, and creates a unique value proposition.
Once an entrepreneur has done the necessary research, they may need to report this in a feasibility report, for example, if they are attempting to obtain outside funding. This would likely be part of the business plan.
To review, see:
Unit 3 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- Business Model Canvas
- competitive analysis
- customer empathy map
- financial analysis
- market feasibility analysis
- organizational feasibility analysis
- primary research
- secondary research
Unit 4: Planning the Next Steps in Your Venture
4a. Determine a viable opportunity based on tools such as the Eisenhower Matrix
- What are the stages of the entrepreneurial process?
- What are SMART goals?
- How can you apply the planning phase as an entrepreneur?
Research has shown that part of assessing an opportunity is done through a business plan. So, while entrepreneurs spend a lot of time determining the feasibility of an idea, writing the business plan after performing the necessary feasibility analysis is important.
There are four main stages of the entrepreneurial process. Stage one is the identification and evaluation of business opportunities. Stage two is the writing of the business plan. Stage three is focused on gathering and having the resources needed to start the business. Stage four is the actual creation and management of the business.
Before starting in stage two, most entrepreneurs will consider market size as a major factor; cash flow management, personal relationships, and passion are also factors when deciding to move forward with one particular opportunity. In addition to these factors, an entrepreneur should be sure the business idea aligns with their goals and values. Part of this process is the determination of short-term goals, many of which are meant to align with long-term goals. The SMART goal framework is a tool that can ensure you meet all criteria for good goal setting. Goals should be SMART, that is, specific, measurable, achievable, realistic, and time-bound.
When entrepreneurs consider moving forward with the opportunity, they look at the planning cycle, which consists of setting goals, designing a plan, implementing it, and reviewing the results. Coordination between time, ideas, resources, and goals must be considered. Strategic planning is high-level planning. Tactical planning identifies things that need to be done to meet strategic plans, and operational plans are front-line activities that employees do to meet tactical goals.
A SWOT analysis is often used as the entrepreneur transitions from identifying a good opportunity to building the business plan.
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4b. Plan an opportunity while considering other factors, such as product planning processes, product life cycles, and personal values and goals
- What tools do you think are most important to an entrepreneur when taking the next step to move forward to creating their business?
- When producing a product, what might an entrepreneur want to think about?
- How can the BCG Matrix be applied and used even for a new start-up business?
Personally speaking, entrepreneurs can use a model for them personally to focus on their business. This model involves conceptualizing your business, organizing your business, systemizing your business, and maximizing the business.
Many entrepreneurs produce products (as opposed to services). Therefore, some considerations include material sourcing and understanding documents like specifications packages, purchase orders, and contracts. Contracting with a manufacturer is another consideration as well. Entrepreneurs also consider the product life cycle: introduction, growth, maturity, and decline phases. The BCG Matrix is a tool that enables companies to look at different business units regarding market share and growth. This matrix can help entrepreneurs choose a direction or an established company to determine where to put resources.
The Eisenhower Matrix is a method entrepreneurs use to plan their time. The Eisenhower Matrix looks at the importance and urgency of a task and helps the entrepreneur determine how to prioritize tasks.
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Unit 4 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- BCG Matrix
- Eisenhower Matrix
- operational plans
- SMART goal
- strategic planning
- tactical planning