Module 3 examines the concept of having an innovative mind-set and the importance of having one in this sector.

1. Innovation Mindset
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2. Questions adressed
• Why a Mindset matters?
• What does it mean to have an Innovation
Mindset?
• What abilities are needed to really innovate?
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3. Learning objectives & outcomes
• Realizing and understanding what mindset is
• Developing innovation mindset
• Using innovation mindset in business
3

4. Content
• Part 1: Understanding the Power of
Mindset
• Part 2: Defining Innovation Mindset
• Part 3: Innovation Mindset and business
4

5. Part 1:
Understanding the Power of Mindset
• Part 1: Understanding the Power of Mindset
• Part 2: Defining Innovation Mindset
• Part 3: Innovation Mindset and business
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6. „Innovation and change is not a technical
problem.
It’s a mindset”
(Vijay Govindarayan 2009)
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7. Defining a Mindset
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Mindsets are beliefs – beliefs about ourselves and our
most basic qualities, like intelligence, personality or
talent (Carol Dweck)
Mindsets are attitudes which manage our actions and
interactions with the world
Minset is a way of thinking about the world and about
our impact on that world through:
• What you believe you can do
• What you believe you can’t do

8. Defining a Mindset
• Do you believe
that your traits are
just givens?
• Do you believe
that your
intelligence,
talent, personallity
alone determines
your success? And
there is nothing
you can do that
you are not like…?
• Do you believe that
your traits change
throuthout your
lifetime?
• Do you believe that
most basic abilities
can be developed
through dedication
and hard work? And
that you can DO IT
regardless of
being…?
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Think about your intelligence, your talents, your
personality…

9. Mindset in a nutshell
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10. Mindset for Success
• When you look at the world with the fixed mindset…
– it’s not enough just to succeed;
– it’s not enough just to look smart and talented;
but
– you have to be pretty much flawless; and you have to be flawless right away...
so…if you have it you have it, and if you don’t you don’t...
If failure means lack of your competence or potential - than you are a failure
– where do you go from there?
• When you look at the world with the growth mindset…
– you are encouredged to learn from failures
– you are never smart and talented enough to learn something new
but
– you can always adapt by making changes
so… you can always have it later if not this time
If failure means you lack competence or potential – you can always learn and
start over?
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11. Is it possible to think like an
innovator with a fixed mindset?
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If yes,
why?
If no,
why?

12. Is it possible to think like an
innovator with a fixed
mindset?
Watch some answers…
• https://www.youtube.com/watch?v=wny1PKr_nO
g
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13. Short excercise
• Compare folloving bahaviuors against the idea of
fixed and growth mind
– Keep an external Focus
– Learn from your mistakes
– Embrace your inner Edison
– Resist the pull of the core
• How you see your mind prepared for innovations?
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14. Part 1 summary:
Mindset for innovation
• Mindset is a way of thinking
• The way you think drives your behaviors and
determine how you act!
• What limits us is the what we think we are able to do
(Carol Dweck), because:
– everyone has the fundamental ability to be creative and
innovative
but
– not everyone has nurtured these capabilities to the same
degree
• Innovation starts inside your head!
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15. Part 2:
Defining Innovation Mindset
• Part 1: Understanding the Power of Mindset
• Part 2: Defining Innovation Mindset
• Part 3: Innovation Mindset and business
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16. What is Innovation Mindset?
• Innovation Mindset: specific state of mind which
orientates human towards innovation activities
• Since mindsets are beliefs, people with
innovation mindsets share belief that:
– innovation is needed and beneficial
– they can make a difference through innovation
– they have or can have abilities to innovate
• Innovators share growth mindset
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17. Drivers of Innovation Mindsets
• Individuals with innovation mindsets:
– are driven by willingness to create,
– want to make a difference,
– share resillience in achieving goals,
– love change,
– are open for failure and learning
• The creative and innovative Mindset is enhanced
through four behaviors:
– Changing one’s perspective
– Taking risks
– Finding one’s passion
– Challenging assumptions and embracing ambiguity
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18. Reinforcing domains of Innovation
Mindset
• “I think of the Innovator’s Mindset as being
comprised of following six reinforcing domains” -
Bradley (Woody) Bendle
– Alertness
– Curiousness
– Willingness
– Joy
– Desire
– Drive
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19. Six reinforcing domains of innovation
mindset
• Case study: write how you understand the
following:
• Alertness……………….
• Curiousness……………
• Willingness…………….
• Joy………………………
• Desire…………………..
• Drive…………………….
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20. Summary of case studies
• „So while innovation can be fed by external
stimuli, energized by data, prodded by
recognizing trends in the outside world,
true innovation - the ability to create new ideas
that add value - needs to be developed primarily
as an internal thinking process and mindset that
can be learned by all.” Bill Hortz
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21. Docherty's Innovation Mindset Model
Is it easy to think like an innovator
and face innovation challenge?
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22. Docherty's Innovation Mindset Model
• At the
beginning of
any strategic
innovation
initiative,
everyone's
excited and
optimistic. They
believe they've
got a great idea
and they're
going to rule
the world
(Dreaming).
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Depth of knowledge (time)
Clarityandconviction
Dreaming

23. Docherty's Innovation Mindset Model
• Then $%^&
happens as it
always does and
we face failure
(Doubting). It's
never as easy as
we thought it
would be. Failure
is a natural and
useful element of
innovation... it's
how we learn and
adapt our
solutions. Or
determine it's time
to try another
challenge.
Depth of knowledge (time)
Clarityandconviction
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Dreaming
Doubting

24. Docherty's Innovation Mindset Model
• As we develop
innovative
concepts into real-
world practical
solutions, we're
learning more, the
problem isn't as
simple and we
begin to truly
understand the
complexity of the
challenge. It's this
3rd stage
(Quitting or
Persevering) that
truly separates
innovators from
dreamers.
Depth of knowledge (time)
Clarityandconviction
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Dreaming
Doubting
Quitting or
Persevering

25. Docherty's Innovation Mindset Model
• Those that
persevere and
don't quit often
experience a
transformation
al experience of
having worked
through the
challenges.
Depth of knowledge (time)
Clarityandconviction
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Dreaming
Doubting
Quitting or
Persevering
Transforming

26. Docherty's Innovation Mindset Model
• Having worked
through the
challenges and
acquiring a new
confidence built
upon deep
knowledge and
experience
result in
championing.
Depth of knowledge (time)
Clarityandconviction
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Dreaming
Doubting
Quitting or
Persevering
Transforming
Championing

27. Innovation Mindset and success
• Having positive, innovator’s mindset actually
CREATES success and luck
• Luck (or success) comes to those who embrace
and embody four essential principles (Richard
Wiseman):
– Creating luck by noticing and acting on opportunities
– Expecting that one can create luck through perseverance
– Making decisions which are informed by the well honed
intuition
– Resisting the negative by finding and even creating the
bright side of every situation
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28. How to broaden a mindset for
innovation?
• Short excercise: work on your innovation mindset
– (from the University of Virginia's Darden School of Business
Design Thinking in Business Innovation program)
• As human’s brain is designed to develop new circuitry, rewire itself
based on new thoughts and behaviors, here is how to get started:
1. Find quiet time every day for reflecting on what you are
thinking and why?
2. When you find yourself in a fixed mindset, ask if it is coming
from discomfort with change or fear of making a mistake.
3. Make it a priority to learn or try something new every day.
4. Ask questions more often than you give answers.
5. Do something that stretches you beyond your current
capabilities at least one time per week.
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29. Part 2 summary: Defining Innovation
Mindset
• „Genius is 1 percent inspiration, 99 percent
perspiration.” (Thomas Edison)
• The real innovation challenge lies beyond the idea, in
a long, hard journey from idea to impact
• Innovators are consumer centric
– they want to deliver them value through
• creating solutions for things consumers need
• providing useful things consumers didn’t even know they wanted
• Innovators go beyond the idea to entrepreneurial
thinking
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30. Part 3:
Innovation Mindset and business
• Part 1: Understanding the Power of Mindset
• Part 2: Defining Innovation Mindset
• Part 3: Innovation Mindset and business
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31. „Entrepreneurship is first and foremost a mindset.”
(European Comission 2003)
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32. What is necessary to become an
innovator?
• To become an innovator it is necessary to:
– acknowledge that the world is changing
– be ready for change
– be able to lead change
and
– start dealing with change and using it a source of power
– take conscious responsibilities for actions taken and
learn lessons
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33. Entrepreneurial
Orientation
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34. Three Dimensions of Entrepreneurial
Orientation
– Innovativeness
• is the predisposition to engage in creativity and experimentation
through the introduction of new products/services as well as
technological leadership via R&D in new processes.
– Pro-activeness
• is an opportunity-seeking, forward-looking perspective
characterized by the introduction of new products and services
ahead of the competition and acting in anticipation of future
demand.
– Risk taking
• involves taking bold actions by venturing into the unknown,
borrowing heavily, and/or committing significant resources to
ventures in uncertain environments.
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35. Three Dimensions of Entrepreneurial
Orientation:
– Innovativeness
– Pro-activeness
– Risk taking
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36. Dimention #1: Innovativeness
• openess for new ideas
• willingness to engage resources in development
of new ideas (time, money, facilities…)
• active explotraion of new posibilities,
opportunities
• futuring and creating
• experimentation
• patience (ideas need time to mature: 2,3,10
years…)
• allowing collesions of smaller hunches (for the big
ideas to be created)
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37. Critical Mindset vs Creative
Mindset
Part 1 of 4
Critical Mindset
• Certain
• Closed to new
information
• Demanding respect
• Isolating and analysing
ideas
Creative Mindset
• Flexible
• Open to learning
• Respecting others
• Connecting ideas
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38. Critical Mindset vs Creative
Mindset
Part 2 of 4
Critical Mindset
• Avoiding change
• Embracing correctness
• Going through the
motion
• Using tries and true
methods
Creative Mindset
• Adapting to the
unexpected
• Embraicing ambiguity
• Having fun
• Discovering new ways
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39. Critical Mindset vs Creative
Mindset
Part 3 of 4
Critical Mindset
• Assesing and judging ideas
• Seeing unrelated events
• Seeing gaps and
inconsistences as failures
• Spotting wrong answers
Creative Mindset
• Developing unique and
useful ideas
• Seeing connection
• Seeing gaps and
inconsistences and clues
• Spotting wrong questions
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40. Critical Mindset vs Creative
Mindset
Part 4 of 4
Critical Mindset
• Criticising the offbeat
• Reacting
• Seeing failure as failure
• Describing what is
Creative Mindset
• Embracing the
different
• Anticipating
• Seeing failure as
learning
• Embracing possiblity
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41. How to use innovativeness (#1) to
create something new
Watch the video
• https://www.youtube.com/watch?v=FSxSinVVRL
w
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42. Three Dimensions of Entrepreneurial
Orientation:
– Innovativeness
– Pro-activeness
– Risk taking
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43. Dimention #2: Pro-activeness
• Courage and ability to act and make things done!
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Source: http://www.cflf.org/sites/cflf/files/persistence-and-proactive.jpg

44. Pro-activeness and entrepreneurship
• How to spot an entrepreneur (Mazzarol 2011)
– An agent of change: person who brings new ideas or
products to market with the ability to create wealth and
employment
– Motivation: person who has individual motivation and
the capacity to identify an opportunity and pursue it to
economic success regardless of the resources that are
under control
– Converting opportunity: person who converts
opportunities into marketable ideas, often assuming
risk, implementing the idea and realizing any rewards
– Creating new ventures: a person who starts a company
(entrepreneur) or works in an organization on a new
project (entrepreneur)
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45. How to be pro-active and
how to make a difference
Watch the video
• https://www.youtube.com/watch?v=i35BpZIXBJU
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46. Three Dimensions of Entrepreneurial
Orientation:
– Innovativeness
– Pro-activeness
– Risk taking
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47. Dimention #3: Risk-taking
• taking actions into the unknown
• committing resources to actions in uncertain
environments
• Is innovation possible without risk?
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48. Failing and rising:
learning from failures
• 34-35% of people across all types of economies
(factor-driven, efficiency-driven, innovation-
driven) holds a fear of failure as a potential
barrier to new ventures creation (Bosma & Levie
2010)
• „Fail often and early”
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49. Effectuation theory
(part 1 of 3)
• Effectuation theory: an individual seeking
to launch a new venture will need to apply
– an causation process
rather than
– an effectuation process
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50. Effectuation theory
(part 2 of 3)
• An causation process
– a clear sense of variables that
need to be controlled in order to
achieve a given outcome or end
result
– cause-effect logic in which
investment of time and
resources in a project will lead
to relatively predictable
outcomes
– is well suited to the exploitation
of known markets and
established knowledge
• An effectuation process
– the Focus is on control of things
that might assist in articulating
through the process into an
uncertain future
– assumes that the environment is
dynamic, non-linear, ecological in
nature
– suitable where variables and even
the end state are unknown or
unpredictable thus can be useful in
the creation of new markets and
products in which strategic
alliances and collaborative
strategies are important for
success
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Two approaches to processes

51. Effectuation theory
(part 3 of 3)
• Four principles of effectuation theory (Sarasvathy
2001):
– Affordable loss, rather than expected returns
– Strategic alliances, rather than competitive analyses
– Exploitation of contingencies, rather than pre-existing
knowledge
– Control of an unpredictable future, rather than
prediction of an uncertain one
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52. Effectuation theory example:
A chef cooking a meal.
causation process
• A client chooses a
menu in advance
• Then the chef
prepares this menu by
looking for the right
ingredients and
following the recipes
to make the dishes
effectuation proces
• A client doesn’t ask
for a specific menu,
but he asks the chef
to make something
with the ingredients
available.
• The chef chooses one
of the many different
meals he is able to
make with the
available ingredients.
52Source: S. Sarasvathy; et al. (2001). "EFFECTUAL ENTREPRENEURIAL EXPERTISE: EXISTENCE AND BOUNDS".

53. Effectuation theory – an example
Watch the video
• http://library.fora.tv/2011/09/16/Collective_Entre
preneurship/Venture_Fest_Innovation_Through_C
ompetition
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54. Part 3 summary: Innovation Mindset
and business
• It is crucial to have an innovarion midnset for
succesful business operations
• Innovativeness, Pro-activeness and Risk taking
are key features of innovation midnset in
business
• An individual seeking to launch a new venture
will need to apply an causation process rather
than an effectuation process
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55. A kind of summary at the end
• Traits of key billionaires – Innovation Mindset
– Have a big passion / purpose in life
– Do a lot of experimentation
– Practice long term thinking
– Are optimistic
– Accept risk & mitigation
– Practice Customer Centricity Thinking
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56. And some more useful links
• Creating innovation minset of an organisation
– http://blogg.nhh.no/tjenesteinnovasjon/?p=1239
• Changing employee mindset
– http://www.slideshare.net/anis_bedda/klaschka-20141212-
intrapreneurship-conference
• Designing innovation culture
– http://www.bic.sg/innovation-culture-canvas-
gallery/kaawnggpggv678gwlyr5iue5zrlr2y
• What does it mean to be proactive?
– http://www.entrepreneur.com/article/243054
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