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 didn’t 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
 Discontinuity
 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
 Components of an Innovation
May never be developed into
marketable products
Invention

Has no
Instantaneous Scientific Adopting
commercial Discovery Innovation Invention
value

Market

Buying or Ignoring the Innovation

The Unexpected Success
• R.H. Macy – Deptl. Store, New York 1950’
climbing Appliances Sales / Bloomingdale’s
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 Mergenthaler’s 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 – 19th 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 – 19th 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
• The need for market focus
• Financial foresight
• Building a top management team
• Where can I contribute
• The 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 ain’t
– 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, Boch, Lucas
– Speciality Markets – Thomas Cook, American Express

• Changing Values & Characteristics itself is Innovation

– Creating Utility – Rowland Hill 1836, Postal Services

– Pricing – Gillete, Zerox
– Customer’s reality – cyrns Mc Cormick
– Developing Value to the customer-Interior Decorators
 Refine / Modify
Gain Commitment
Possible Solutions/ Decision
Proposals Innovation
Idea Cycle Experimental
Development Action

Speculative Constructive
Exploration Review

Operational
Routine Cycle Known
Solutions
Procedures
Rules