Creativity

and
Innovation
Principle of Management

Creativity, Invention and Innovation

Creativity is the production of novel and useful

ideas in any domain

Innovation is the successful implementation of

creative ideas within an organization, it is also
about making change or doing something in a
new way.
Invention is the discovery or creation of a new
material, or a new process, it is the action of

inventing something new.

Distinguish between Creativity, Invention and Innovation

Creativity

Invention

Innovation

It is the act of
conceiving something
original or unusual

It is creation of something
new as the product of
unique insight

It is the implementation
of something new

It is a creative thought Conversion of thought into

process
a new unique product

Further enhancing the

existing product

Creativity= Idea +
action plan

Innovation = creativity +
Productivity.

Invention = Idea + creativity

+ Productivity.

Necessity is the mother of Invention

Profit motive and Creativity are the parents of Innovation

Characteristics of Creative Group

Adjectives to
describe creative
people
Original
Resourceful
Reflective
Self-

confident

Gaps/Conflicts in group
Gaps in Creative group

Intellectual perspective

Inadequate balance of expertise and personal characteristics

People tend to have functional boundaries

Hiring process by putting standard set of skills

Follows traditional approach of recruiting human resource

Dont consider customer or a outside professional

Conflicts in Creative group

Team members unwilling to listen to others ideas, thoughts, understand

different view points

People tend to become personal.

Lack of operating norms

You must hire a critical mass of different thinking style, and they must be
thoroughly integrated into the team.

Brainstorming Techniques

Visioning Techniques use Intuitive process first and then follow up

information gathering and data analysis. Whereas Modifying and
Experimenting use existing data first and use Intuitive process to
draw ideas

Catch Ball Techniques

Initial idea

Understand
Reflect Improve

Catch ball is a Cross-functional

method for accomplishing two
goals: Idea enrichment or
improvement and buy-in among
participant.

Understand
Reflect Improve

DELPHI TECHNIQUE

Delphi technique was first used by Rand Corporation, in the

cold war in 1950s. It was called Project Delphi.

It is a forecasting method based on results of questionnaires

sent to a panel of experts. Several rounds of questionnaire
are sent out, and the anonymous responses are aggregated
and shared with the group after each round.

The experts are allowed to adjust their answers in

subsequent rounds. Because multiple rounds of questions
are asked and because is told what the group
thinks as a whole.

Delphi Method seeks to reach the CORRECT

response through consensus.

Steps to Increase Your Own Creativity

Strive for Alignment: Make sure that the goals of

the organization you work for are consonant with
your most cherished values. Instead of considering
jobs at which you excel, think instead about job
that match your deeply embedded life interests.

Pursue some self initiated activities: Choose

projects where your intrinsic motivation is high.
If you have always loved graphic designs, try to
determine why the packaging for one of your
companys products leaves customers cold.

Take advantages of unofficial activities: The

absence of official status may create a safe haven
for nurturing an idea until it is strong enough to
overcome resistance.

Be open to serendipity: Develop a bias towards action and toward trying new ideas. For
instance, if an accident or failures occurs while youre prototyping a new LCD screen, dont
dismiss it too quickly . Study it for the learning opportunity that may lie within. Each day, write
down what surprised you and how you surprised others.

Diversify your stimuli: Intellectual cross-pollination gets you thinking in new directions.
Develop cross functional skills: rotate into every job you are capable of doing. Get to know
people who spark your imagination. Become a life long learner. Take classes not related to your
work. Bring your insights from outside interests or activities to bear on your workplace
challenges.

Create opportunity for informal communication: Take advantage of unanticipated

opportunities to exchange ideas with colleagues. Creative thoughts often happens during
spontaneous interactions between individuals. Such interactions, However, are useful if real
communications occurs. You must find ways to encourage and facilitate communication that is
appropriate for the creative environment.

The 3M Way to Creativity and Innovation

3M basically focuses on giving employees the freedom to take risks and bring new ideas.

This concept was brought by William L Mcknight. During his tenure, he worked to create a culture
that puts employees in direct contact with customers problems and that encourages initiatives and
innovations.

He thought that as business grows, it becomes increasingly important to delegate responsibilities

and to encourage men and women to exercise their initiatives.

Today the companies backup McKnights Management philosophy with a number of creativitysupporting practices.

Mcknights notion of experimental doodling is institutionalized in to 3Ms unofficial 15 Percent

Rule which allows technical and scientific employees to use that percentage of their time to
pursue ideas unrelated to their official assignments.

The work of outstanding technical employees are recognized by admission to the

prestigious Carlton Society, which opens its door to a few remarkable innovators in a
year.

Team that creates products that earns $4 million or more in profitable revenues
receives the Golden Step Award.

Employees can choose between management and technical career ladders. Not
everyone is cut out to be a managers, and not all who are qualified for management
want to leave the laboratory.

Example: Dolland & Aitchison

High street optician and spectacle retailer believe that every idea is a good idea. Employees
are encouraged to write directly to the CEO with their ideas. They receive a written response
from the CEO and if their idea is actioned they also receive a thank-you gift.

An example of such an idea is Styleyes a computer aided system, pairing customers with ideal
frames to fit appearance and lifestyle. The outcomes were:
- increase in customer satisfaction
- increase in customer spending
- increase of 17% on annual sales

Case Example: Oral B Childrens Toothbrush

Childrens toothbrushes were
miniature versions of adults
brushes. IDEO designers
watched children brushing their
teeth and noted that children
use their whole hand to hold
the brush while adults use just
their fingers. They adapted the
handle of the brush to reflect
the whole hand grip style used
by children, thus creating a new
ergonomic product.

Innovation
Innovation is about creating value and increasing efficiency, and
therefore growing your business.
Innovation strategy
Need seekers - The need seekers "actively engage
customers and potential customers to shape new
products, services and processes. They invent first-tomarket products.
Market readers- The market readers watch their
market very carefully and respond to what customers
buy. They are more cautious and create value through
incremental changes.
Technology drivers- traditional definition of innovation,
focusing on a companys internal R&D and technological
capabilities to serve the needs of the customers.
Another approach divides innovation types into two
categories: incremental vs. radical innovation.
14

01/13/16

Type of Innovation on new and radical products Boston

Consulting Group
Five type of
innovations

1. New to the World Products and services that create entirely new markets,
2. New offering that allow expansion to new groups of customers,
3. New offering for existing customers,
4. Minor Changes to existing customers, and,
5. Cost reduction to existing offers

Four phase process of innovative ideas

1. Lay the foundation

2. Determine the trends
3.Identify and learn from the lead user
4. Develop the break thoughts

17

Measuring Innovation: Metrics (Best practices)

Input Metrics

Process Metrics

Output Metrics

Financials
-

Allocation of financial

- Managing time

resources

- Managing Innovation

- Total Shareholder

Pipeline
- Assignment of Key
people

Innovation ROI
return

- New projects performance

projection
- Staffing against Plan

Non-financials
- Patents granted
- Number of new
product launched

01/13/16

SUBSTITUTE- AN EXAMPLE

COMBINE- AN EXAMPLE

ADAPT AN EXAMPLE

MAGNIFY AN EXAMPLE

MINIFY AN EXAMPLE

PUT TO OTHER USES

ELIMINATE

REARRANGE EXAMPLE 1/2

REARRANGE EXAMPLE 2/2

REVERSE INNOVATION- MEANING AND POTENTIALITY.

Reverse Innovation - strategy of innovating in emerging (or developing) markets

and then distributing/marketing these innovations in developed markets.

Govindarajan, a professor of international business at Dartmouth College and the

first professor in residence and chief innovation consultant at General Electric, defines
reverse innovation as "any innovation that is adopted first in the developing world.
Reverse innovation is an innovation for the needs of customers in poor countries

Potentiality
Potential to transform wealth in the world
Reverse innovation is a nice growth opportunity in poor countries. But more
importantly, it is a way to protect their competitive position in home markets
Growth in developed countries has slowed down. Much of the growth is now in
developing countries

Relationship between the reverse innovation and disruptive

innovation?

Income gap - This gap is created between rich countries and developing ones. Because
per-capita incomes are so low in the developing world, conditions are ripe for innovations
that offer decent quality at an ultralow price that is, a 50% solution at a 5% price.

Infrastructure gap - This is created between rich countries and developing ones. Most
of the infrastructure (energy, transportation, telecom, and so forth) in the developing world
has yet to be built
Example Indian telecoms leapfrogging to wireless technology in the absence of land
line phones

Sustainability gap - This is created between rich countries and developing ones. Many
developing nations are confronted with environmental constraints far sooner in their path
of economic development than rich nations were.

Performance gap - because of the peoples low incomes, customers in poor countries
are prepare to make significant scarifies in performance at the right price.
Examples Nokia cell phones

Preferences gap - This is created wherein each country has distinct tastes and
preferences. Example The prevalence of lentil based foods in India

Examples of Reverse Innovation

Tata Motors Tata Nano

While companies like Ford set up its global automobile platform in India and catered to the niche
premium segments in India, Tata introduced the Tata Nano for the price conscious consumer in India in
2009. Tata plans to launch Tata Nano in Europe and U.S. subsequently.

GE GE MAC 800
GEs innovation on the GE MAC 400 to build a portable low-cost ECG machine to cater to the rural
population who cannot afford expensive health care was launched as an improved version a year later
in 2009, in U.S. as MAC 800.

Nestle Low-cost, low-fat dried noodles

Nestl's Maggi brand Low-cost, low-fat dried noodles developed for rural India and Pakistan found a
market in Australia and New Zealand as a healthy and budget-friendly alternative.

Microsoft Starter Edition

Microsoft is using its Starter editions (targeted at not so technically savvy customers in poor countries
and with low-end personal computers) simplified help menu and videos into future U.S. editions of its
Windows operating system.

Nokia New business models

Nokias classified ads in Kenya are being tested as new business models. Nokia also incorporated new
features in its devices meant for U.S. customers after observing phone sharing in Ghana

Jugaad Innovation

Jugaad: A Frugal, Flexible Approach to Innovation

In Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth authors Navi Radjou, Jaideep Prabhu and Simone Ahuja present a new approach to
innovation that is fueling growth in emerging markets as well as developed ones

Jugaad is an Indian phrase used to describe the kind of ingenuity that enables Indians to
manage the large and small challenges of everyday life.

The essence of Jugaad is to improvise, and to quickly and cheaply cobble a solution
together from the materials we have at hand.

In recent years, Jugaad has gained attention among companies in the western world
because products like Tatas Nano car and GEs MAC scanner for hospitals have shown
that the Indian approach to innovation can lead to solutions for the mass market at
extremely low prices.

Example Jugaad innovation

The interface of Face book is very, very simple.

They don't have a lot of complex features.

The navigation of the website is very easy to use.

The reason is because they employed something called social design,which is

essentially a design philosophy where the technology takes a back seat to the
user experience, which takes the front seat. That's a radical departure from the
traditional R&D model, where the focus used to be on showing off, so to speak,
your technology capabilities and hoping to wow the customers.

Instead, the customer got put off by the technology's complexity.

So, Facebook uses social design as a way to make the user the king of the
experience, and let them drive this whole experience, as opposed to the
technology being at the forefront.

Buyer Utility Map

It is a tool developed to identify

which business idea have
commercial potential.

It can be used to create utility with

new product /service or by
innovating existing product /service

In this a buyer experience is

broken into a cycle of distinct
stages ranging from purchase to
disposal.

And the way in which the

companies unlock utility for their
customer.

Simply stated,
business has
just two
functions,
innovation and
marketing.
But only the
seasoned
managers
understand the
complexity
behind this
simplicity.

Buyer Utility Map help managers break

the utility for their consumers and
generate innovative ideas

Buyers experience can be better understood by

dividing it into six stages, these are six different
occasions where marketers can create value for their
buyers

How easy it is to find the

product, the attractiveness
and accessibility of the store,
the level of comfort the speed
with which purchases are
made.

The speed and

convenience of product
delivery, the ease of
unpacking and installing
the product.

What training or
expert assistance is
required while using
the product, ease of
storing the product,
the effectiveness of
the product's features
and functions.

Other accessories
that are used along
with the product.

Ease of maintaining the

product and the amount of
expert assistance required.

If the product generates

waste, the ease of disposing
drills consumers mind off!

Thinking ahead, there are six different ways of innovating and creating value in each
of these stages

The innovation helps

customers do things
faster, better or in
different ways.

The innovation offers

enhanced ease-of-use.

The innovation makes

a desired activity
easier to perform.

The innovation minimizes

customers' financial or
physical risks.

The innovation delights

customers.

The innovation
facilitates recycling
and other
environmentally
sensitive practices.

PCMM- People Capability Maturity Model

It is a maturity framework describing the key element of

managing and developing the workforce of an
organization
Its is one of the requirement of ISO 9000 and its related
to software development industries like TCS, Infosys,
Accenture etc.
An evolutionary improvement path from an ad hoc
approach , to a mature, disciplined way that enhanced
business performance.
Framework that helps organizations successfully
address their critical people issues

Benefits of implementing PCMM

Characterize the maturity of their human resource

practices
Set priorities for improving the competence of its workforce
Integrate competence growth with process improvement
Establish a culture of workforce excellence
Become a employer of choice

Maturity Framework

Level 1-Initial Organizations

Staff not loyal to the organization

Workforce practices applied without analysis of
impact.
Managers expect HR department to perform
workforce practices
Little preparation for managing people
Workforce practices considered overhead,
performed hastily

Level 2 Managed Organizations

Units know and manage their skill needs

Managers repeat successful practices regularly
Unit managers take responsibility for performing
basic practices
Staffing and performance objectives based on
planned commitments
Executives commit organization to workforce
development

Level 3 Defined organizations

Organizational culture emerges from
competence models
Involvement optimizes impact of
competencies on performance
Workforce practices encourage
competency growth.
Workforce planning develops
competencies needed by business.
Organization identifies workforce
competencies required by work
Level-4 Predictable
Organizations
Workforce capability + process
capability predicts performance.
Capability and workforce practices
managed quantitatively.
Workgroups own performance and
some workforce activities.
Competency-based processes
integrated across disciplines.
Competency enables experience to be
transformed into assets

Level 5-Optimizing organizations

Continuous improvement of workforce practices and activities.

Performance aligned across the organization

Individuals and workgroups continuously improve capability.

Talent Management- Need for Time

Attracting the best people
Applying their strengths productively
Creating work environment for growth and
development
Retain the talent that has been acquired
and developed.
Making a company successful, profitable
and productive

Having good talent people in the organisation was important yesterday, but
today it is critical !!

CAPABILITY DEVELOPMENT

Capability Development Tool

Shared Culture of the organisation

Life based learning characteristics Can
you identify where these are being
addressed?
Guiding principles Applications differ
with context. Neither rigid nor linear, these
support an organic process to planning and
undertaking capability development.
Organisational Enablers to support a
rich learning environment
Options and Strategies Diverse
learning options can interact to achieve the
vision. These may incorporate face to face,
online, or blended approaches.

STIMULATING INNOVATION
Innovation friendly strategy, structure, top management style, middle
management support & effective modes of managing innovation are five factors
that affect organizational innovation. Structural, Cultural & Human
Resource Variables

INNOVATION CULTURE
Innovation is a competitive resource in modern organizations operating in a dynamic,
turbulent & competitive environment. Innovation doest not occur easily & automatically.
Establishing inquisitive, investigating, enterprising & challenging culture & leadership is
essential to nurture & foster innovation in organizations.

Recommendations to Foster Innovation Culture in Organizations

1. Create Ambidextrous Organization.
14. Provide Support to Innovation Role
2. Establish Strategic Direction.
15. Establish Reward System.
3. Align Resources with Strategy.
16. Design Congenial Physical Workplace.
4. Hire Right People.
17. Design Right Structural Arrangements.
5. Employ Diverse Workforce.
6. Leaders Be Visible & Involved.
18. Promote Sharing of Values.
7. Maintain Open & Receptive Environment.
19. Story Telling.
8. Retain Scientific Skepticism.
20. Create Trust.
9. Promote Risk Taking Attitudes
10. Allow Free Exchange of Information.
21. Create Spirit of Innovativeness.
11. Provide Access to Knowledge Sources. 22. Counsel to Reduce Stress.
12. Set up Learning Mechanisms.
23. Improve the Idea to Commercialization
13. Develop Cross Functional Team Work
Process

CHANGE IN ORGANIZATIONAL CULTURE

During the first half of the twentieth century, managers viewed work specialization &
efficiency as an important source of increased productivity & competitive advantage.
Accordingly, organizations were structured on line, line staff & committee bases.
Managers in contemporary organizations are finding that these traditional
hierarchical designs are unsuitable in the current environments of change &
challenge. Market place demands are today for lean, flexible, responsive, learning &
innovative organizations.

Resistance to Change
Self-Interest
Cultures that
Value Tradition

Lack of Trust and

Understanding

Different
Perspectives and
Goals

Uncertainty

Managing Resistance to Change

Lewins framework
Methods of managing resistance to change

Lewins Change Process

Tactics for Introducing Change

Communication and
Education

Employee Involvement

Negotiation

Coercion
Top-Management Support

Strategic Innovation Top Management

Proper management of innovation is perhaps the most potentially rewarding

challenge facing by business today. Innovation & Creativity do not happen in a
vacuum or in a predictable order. Innovation is not like most other business
functions & activities. There are no reliable templates, rules, processes, or even
measures of success.

In a sense, each act of innovation is a unique feat, a leap of the individual

or the collective imagination that can be neither predicted nor replicated.
Planning, organizing, staffing, leading & controlling the creative processes
in an organization take courage, the same courage found in the truly
creative & innovative individual a personal courage of mind & spirit

In highly innovative organizations- Top management should :

Style at the top

Top Management has an onerous task of matching the Creative & Innovative
styles to Organizational Strategy.

Adaptive v/s Innovative

Planning

Organizing

Staffing

Leading / Mentorship

Controlling

Tools For Implementation of Innovation Culture

THANK YOU

1.
2.
3.
4.
5.

Nirmal Purohit
Sachin Gupta
Anuradha Singh
Sneha Gupta
Ankit shetty

Principle of Management