Creativity and Innovation

Creative: Involving creation or

invention; showing imagination and
originality (Oxford Dictionary)
Innovative: Introducing something
new (Oxford Dictionary)
Inventive: Making or Designing
something new (Oxford Dictionary)
Creativity
Creativity is the engine of
invention and innovation
The essence of creativity is
combining two or more ideas to
arrive at an entirely new one
Creative ideas must add value
Creative Environment (Triandis 1990)
Permits people to work in areas of their
greatest interest.
Encourages employees to have broad
contact with stimulating colleagues
Allows taking moderate risks
Tolerates some failures and non-
conformity
Provides appropriate rewards and
recognition
Creative Person (Barron 1969)
Conceptual Fluency (i.e. being able to
express ideas well and formulate the ideas
as one proceeds)
The ability to produce a large number of
ideas quickly
The ability to generate original and
unusual ideas
The ability to separate source (who said
it) from content (what was said) in
evaluating information

Creative Person (contd.)
The ability to stand out and be a little deviant
from others
Interest in the problem one faces
Perseverance in following problems
wherever they lead
Suspension of judgment and no early
commitment
The willingness to spend time analyzing and
exploring
A genuine regard for intellectual and
cognitive matters
Gains of Creativity

Produces greater quantities
Improves efficiency
Retain seeds
Provides Opportunities for
combinations
Increase potential for better
decisions
Reduces personal conflicts
Increases group ownership

Creativity & Problem Solving Techniques
Brain Storming
Reverse brainstorming
Synectics
Gordon Method
Checklist Method
Free Association
Forced Relationships
Contd.
Collective note book method
Heuristics
Scientific method
Value Analysis
Attribute Listing method
Morphological Analysis
Matrix Charting
Big dream approach
Parameter Analysis
Creative Thinking
Brain Storming: defer judgment until
as many ideas as can be experimented
Synectics: making the strange
familiar and the familiar strange
Fundamental Design Method: alter
habitual ways of viewing problems
Creative Thinking (Contd.)
Hypothetical Situations: design for
hypothetical situations-translate for
today
Forced Relationships: contact
between different elements not related
earlier
Attribute Listing: look at each aspect
and find ways to improve it

Creative Creed
Brain Activity
Temporarily suspend judgment
Write down ideas
Assumptions
Redefine the situation
Look to new procedures
Creative Creed (contd.)
Routine
Look to more than one answer
Find new ways
Skepticism
Have faith
Focus on situations


Why didnt I think of that Lee Towe
Innovation
What is Innovation?
Specific Instrument of Entrepreneurship
Purposeful & Organized Search for Change
Analysis of Opportunities such Change
might offer
New ways of delivering value to the
customer

Purpose of Innovation
Response to increased competitive
pressure
Profitability
Market Leadership
Principles of Innovation
Innovation must be approached as
a discipline
Innovation must be approached
comprehensively
Innovation must include an
organized, systematic and
continual search for new
opportunities
Principles of Innovation (contd.)
Innovation must involve everyone in
the organization
Innovation must be customer-
centered
Innovation is Doing Things Better,
Doing Things Differently
Types of Innovation
Efficiency Innovation: Internally focused
Evolutionary Innovation: Incremental
Achievements
Revolutionary Innovation: Externally
focused
Seeds of Innovation
Creative Thinking
Strategic Thinking
Transformational Thinking

Elements of Innovation
Creativity
Strategy
Implementation
Profitability

Process of Innovation
Selecting Innovation Goals
Gathering Information
Clarifying the Problem
Seeking Ideas and Stimuli from around the
Organization
Selecting Ideas Worth Exploring
Developing an Innovation Road map
Outlining the possible Plan
Gaining Commitment
Implementing the final Plan
Great Ideas are not innovative unless
they are successfully Implemented
Lessons from Master Innovators
People
- Open Culture
- Exciting & Nurturing Workplace
- Imaginative and liberated workforce
- Strong Conflict handling
mechanisms
- Deep trust in the people


Lessons from Master Innovators
Process
- Encourage risk taking
- Treat Innovation as an integrated process
- Brutually honest in self-assessment
process

Lessons from Master Innovators
Strategy
- Differentiation through
Innovation
- Innovation a strategic backbone
Lessons from Master Innovators
Structure
- Avoid integrating innovation in
formal structure
- Active feedback loops with
customers
- Non-stop conscious efforts to
innovate
- Incessant reconfiguration to promote
innovation
Lessons from Master Innovators
Leadership
- Promotes internal free market for
ideas
- Eliminate bureaucratic hurdles
- Provide protective shield to ideas
Innovation Myths and Reality
Myths
1. Individual drives innovation
2. Innovation begins with brainstorming
3. Innovation requires creative people
4. An innovation process will give the
results you need
Innovation Myths and Reality
Reality
1. Innovation is a team sport
2. Innovation begins with
understanding the customer
3. Innovation requires effective
problem solvers rather than creative
people
4. The innovation process is only one
tool for successful innovation
Has no
Instantaneous
commercial
value
Invention
Components of an Innovation

Innovation


Market

Scientific
Discovery
May never be developed into
marketable products
Buying or Ignoring the Innovation
Adopting
Invention
The Unexpected Success
R.H. Macy Deptl. Store, New York 1950
climbing Appliances Sales /
Bloomingdales responded
IBM Modern Accounting Machine 1930
for Banks. Thomas Watson Sr. Library
Computers Advanced Scientific Work -
1945 Univac spurned; IBM- exploited (Pay
roll)

The Unexpected Failure
Ford Motor Co. Edsel 1957 / Thunderbird
British Exports of Padlocks to India 1920
Novocaine 1905 Major Surgery /
Dentists
Incongruities
Bill connor, Alcon Labs. 1960. Cataract
Containers (Ships) 1950
Mini Steel Mills 1970
Process Need
George Eastman , Kodak, 1890. Cellulose Film
Media 1890 Ottmar Mergenthalers Linotype
Modern Advertising New York Times (Adolf Ochs)
and New York World (Joseph Pulitzer)
Time Magazine past effect of World War I
Industry & Market Structure
The Automobile Story 1900/ Henry Ford
Model T. 1908 / General Motors W.C.
Durant 1903/ Giovanni Agnelli 1899 Fiat/
1960 - / 1979 Fuel efficiency / Japan
PBX / Bell Labs / Rolm Corpn. Tel.&
Computer
Books and Magazines
Demographic Changes
Japan Robots
Women at work force
Migration from Europe to America, Australia &
New Zealand 19
th
Century
Changes in Perception
Health Care Magazines
Eating Habits
Information Technology
New Knowledge
Modern Banking
Convergence of Technologies Computers
Binary arithmetic known since ages
Concept of calculating M/C. CharlesBabbage 19
th
Century
Punch Card Herman Hollerith 1890 for U.S. census
Audion Tube an electronic switch 1906, Lee De Forest
Symbolic Logic Bertrand Russel & Alfred North Whitchead
1910-1913
Concept of Programming and Feedback World War I
antiaircraft gun
All knowledge known by 1918 but the first digital computer -
1946
Radical Inventions
The Practices of Entrepreneurship in a New
Venture
Need for market focus
Financial foresight
Building a top management team
Where can I contribute
Need for outside advice
Entrepreneurial Strategies
Being Fustiest with the Mostest
Aim : Business dominance
Creating new & different product
Clear goals
Capacity to mobilize resources
E . g. Hofmann La Roche, IBM
Hit them where they aint
Creative imitation
Exploit the success of others- IBM
Entrepreneurial Judo
Bell Labs
- Sony (Akio Morita) Transistors

Ecological Niches

Toll Gate Strategy Alcon Labs
Speciality Skills Delco, Lucas
Speciality Markets Thomas Cook, American Express

Changing Values & Characteristics itself is Innovation
Creating Utility Rowland Hill 1836, Postal Services
Pricing Gillete, Zerox
Customers reality cyrns Mc Cormick
Developing Value to the customer-Interior Decorators



Refine / Modify
Gain Commitment
Innovation
Cycle
Possible Solutions/
Proposals
Idea
Development
Decision
Experimental
Action
Operational
Cycle
Speculative
Exploration
Constructive
Review
Routine
Procedures
Known
Solutions
Rules
Innovation and Creativity