Business Creativity and Innovation

Business Creativity and Innovation Creative Problem Solving

TABLE OF CONTENTS

1. Executive Summary ……………………………………………………….2

2. Introduction ……………………………………………………………….3

3. Problem Identification ……………………………………………………... .4

3.1 PEST ……………………………………………………………………….4

4. Objective Finding ……………………………………………………………….6

4.1 SWOT ……………………………………………………………………….6

5. Problem Redefinition ……………………………………………………….8

6. Idea Finding ……………………………………………………………….9

6.1 Mind Maps ……………………………………………………………….9

6.2 Provocation Operation ……………………………………………….10

7. Idea Screening ……………………………………………………………….13

7.1 Culling ……………………………………………………………….13

7.2 Weighting System ……………………………………………………….14

7. Solution Finding ……………………………………………………………….

8. Acceptance Finding ……………………………………………………….

Bibliography

References

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1. EXECUTIVE SUMMARY

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2. INTRODUCTION

“The Mango Tree Restaurant Lounge and Bar” a well-known Indian Restaurant in

Colombo with a rich heritage of authentic North Indian cuisine, with the backdrop of

a perfect ambience and friendly service. Better, know for its largest selection of

vegetarian food and serves only the best of wines, spirits and cocktails

(srilankan.aero). For those who relish North Indian Food, Mango Tree Restaurant is

obvious choice been located at a much-commercialised area and having a good

customer retention rate.

The restaurant opened in 2004 with an initial investment of Rs. 15 million and with a

seating capacity of only 45 seats. Been approved as a speciality restaurant by The

Ceylon Tourist Board, the owners of Mango Tree were encouraged to go for a

second investment of Rs.15 million and doubling the seating capacity.

Current threat to this luxurious restaurant is from other well-known restaurants in the

city such as Agra, Spoons, and Wok to name a few. There is a large customer base

for these restaurants as well because of the better services provided. One concern

with Mango Tree is its customer satisfaction. Low Customer satisfaction is due to the

reasons of customers having to wait for a long time to be served. This is a worry to

the management because of the better services provided by the other popular

restaurants located in the vicinity. Although this is not a major concern at the

moment, the upcoming competition in the sector will be an accounting threat in the

future.

By increasing the efficiency of the restaurant services, it will help to compete with

the future competition in the trade and will help to retain and attract more customers.

In the below assignment the process of solving this problem, the approach and the

techniques used are discussed and analysed.

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3. PROBLEM IDENTIFICATION

Different types of observation methods and tools were used to analyse the business

process. On a personal observation, identified that there were people waiting in the

lounge area to be seated for at least 20 minutes especially during peak hours. When

talking to known people who go to Mango tree often, found that they also face the

same problem. (Appendix A – People Interviews)

Former Chairman of the Sri Lanka Tourist Board, Mr Paddy Withana was also

interviewed. He stated, “Even though Mango Tree has a good customer retention rate

and delicious food, still they haven’t properly identified the efficiency of the

customer service” furthermore, he stated, “one customer’s bad comment in public

can harm the reputation of the restaurant”. These statements clearly highlight one of

the major problems that will be faced by Mango Tree. (Appendix B – Chairman

Interview)

3.1 PEST ANALYSIS

Approach to Problem Identification is by using PEST analysis; it is an acronym for

Political, Economical, Social and Technological factors. It is useful to analyse the

important factors that are effecting to the industry and to understand the

opportunities that exists. PEST is also useful to understand the market growth or

decline and as such the position, potential and the direction of the business.

(Research & Markets Bookmarked Indian)

POLITICAL ANALYSIS:

1. Governments log term plan for an efficient and safe road network system, which could provide services at an affordable price (2)

2. Ministry of Labour Relations and Foreign Employment passed the Employment of Women, Young Persons and children act in parliament with amendments to restrain persons below the age of 18 from been employed in hazardous occupations. (1)

3. Number of strikes in the private sector decreased in 2006, to the lowest in the past decade (1)

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ECONOMICAL ANALYSIS:

1. Rising high and volatile consumer price inflation been addressed by Central Bank through its monetary policy (1)

2. Port services showed a significance growth in 2006. Total cargo handling grew by 14% and a sharp increase in transhipment of 36%. Number of mainline vessels calling Colombo increase by 10% (2)

3. Services provided by Sri Lankan Airlines further expended with airlines providing services to 50 destinations in 28 countries in 2006 (2)

4. Hotels and Restaurants sub sector recorded a growth of 4.6% (3)

5. Decline in foreign tourist due to the unstable political situation (4)

SOCIAL ANALYSIS:

1. Total population of 2.42 million in Colombo (1)

2. Total population in Sri Lanka is 19.9 million (1)

3. Security problems faced due to the ethnic problem (5)

4. Annual unemployment rate dropped 6.5% in 2006 (1)

5. According to the estimates of the Sri Lanka Bureau of Foreign Employment 1.5 million Sri Lankan’s are employed overseas (1)

6. Total of 7.1 million people employed in Sri Lanka out of which 42.8% of people are employed in the private sector and 13.1% in the public sector (1)

TECHNOLOGICAL ANALYSIS:

1. Rapid growth in the communication sector continued in 2006 (2)

2. Subscriber network of the telecommunication sector grew by 59% in 2006 (2)

3. Phenomenal growth in the mobile telephone services registered an increase of 61%. 5412,000 people using mobile phones in Sri Lanka (2)

4. Subscribers to Internet and E-mail service increased by 13%. Approximately 130,000 people having access to Internet & E-mail (2)

5. Rapid expansion of mobile networks and CDMA based wireless network in rural areas helped to reduce the communicating disparity between rural and urban areas (2)

Based on the above facts it is clear that there will be an impact on the customer

retention and the reputation of Mango Tree, due to the fact of customers not been

served to their high expectations.

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4. OBJECTIVE FINDING

Once the problem, related facts and environment have been identified, objectives

need to be identified before moving further. SWOT Analysis was carried out to

identify the company strength, weaknesses. Based on the PEST Analysis out come,

opportunities and threats have been identified.

4.1 SWOT ANALYSIS

SWOT is an acronym to for Strengths, Weaknesses, Opportunities and Threats.

SWOT is a decision making tool that provides a framework for formulating and

developing strategies. (Examples Essays) Working though this process will give a

clear idea of what the organisation does best and what needs to be improved

(Strengths & Weaknesses), where the organisation has competition which can be

defended (Strengths & Threats), where the organisation needs to change to product

itself from outside influences (weaknesses & threats), where the organisation needs

to look at its priorities (weaknesses & opportunities) (NSW Sport & Recreation)

PEST was used before SWOT as it helps to identify SWOT factors such as

Opportunities and Threats. PEST was used to assess the market including the

competitors of the business and SWOT was used to assess the business with regard

to strengths and weaknesses.

SWOT Strengths (S) Weaknesses (W)1. Well known restaurant name is Sri Lanka2. Known as the best for the largest vegetarian selection and a variety of dishes3. Large customer base and high customer retention rate4. Financial Stability5. Well established infrastructure with a first class restaurant, lounge area and bar6. Well experienced, enthusiastic and customer friendly staff providing a

1. Lack of home delivery or outdoor catering service2. Sufficient space not been available to dine with the regard to the high demand3. Limited parking space4. No marketing strategy5. Strong presence only in Colombo, Sri Lanka6. Customers waiting for a considerable amount of time to be served

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high quality customer service7. Well organized competent management team

Opportunities (O) (SO) (WO)1. According to Central Bank of Sri Lanka there is a total population of 2.42 million in Colombo. 55.9% of the total population is employed and leading very busy life’s (1)2. Phenomenal growth in mobile telecommunication services registering a 61% increase. Estimated 5,412,000 mobile phone users in Sri Lanka (2)3. 13% increase in subscribers to Internet and E-mail services. Estimated 130,000 people having access to Internet and E-mail4. Restaurant been located in a very commercialized area

1. How to target the employed population using the delicious vegetarian food offered, pleasing environment and quality service provided. (O1,S1,S5,S6)2. How to target the fast growing mobile community in Sri Lanka with the well established company brand name and delicious dishes available by providing attractive services/products (O2,S1,S2,S3,S4,S6,S7)3. How to serve the e-community using company brand name, delicious dishes and first class customer services provided. (O3,S1,S2,S6)4. How to attract and target more people using the services available in the restaurant (O5,S2,S6)

1. How to introduce and market the home delivery and outdoor catering service targeting the busy employees in Colombo (O1,O5,W1)2. How to use the mobile phone and internet facilities to improve the efficiency of the restaurant(W6,O2,O3)3. How to efficiently utilize the available dining space so that busy employees can come and enjoy their meals leisurely without wasting time (O1,W4)

Threats (T) (ST) (WT)1. Competition from other existing restaurants like Agra, Spoons, Peach Valley, WOK, Navaratne and Tandoori2. Economy crisis in the country due to the unstable political situation3. Security problems faced because of the ethnic problem4. Legal constraints

1. How to market the restaurant with the facilities available to challenge the competition (S1,S5,S6,S7,T1)

1. How to increase the efficiency of the restaurant to challenge the competition (W6,T1)

After completing the SWOT analysis, looked into different combinations of SO,

WO, ST and WT, out of which a number of objectives were identified. Out of all the

objectives identified, Objective “How to use the mobile phone and internet facilities

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to improve the efficiency of the restaurant” was selected for further elaboration since

it was most suitable solution to the problem faced.

5. PROBLEM REDEFINITION

There are a number of techniques such as Laddering, ‘WHY’ method, Goal

Orientation, Boundary Examination, Progressive Abstraction that can be used to

redefine the problem. The main objective of this step is to look at the current

problem in different angels. By doing so we can come up with different problem

definitions until a satisfactory definition to the problem can be defined. Redefinition

approach used here is the “WHY” method. This method was used

IWWM we improve the efficiency of the restaurant?

Question: Why do we want to improve the efficiency of the restaurant?

Answer: To improve the customer satisfaction

Redefinition: IWWM we improve the customer satisfaction?

Question: Why do we want to improve the customer satisfaction?

Answer: To ensure customer retention

Redefinition: IWWM we have to improve customer retention.

Question: Why do we want to improve customer retention?

Answer: To increase profits of the restaurant

Redefinition: IWWM we increase profits of the restaurant?

Redefined Problem: How can we improve the efficiency of the restaurant to have

better customer satisfaction in order to increase the customer retention rate, which

will increase the profits of the restaurant?

Page 8 of 15


6. IDEA GENERATING

In this stage, you brainstorm as many ideas as possible for the solution of the

problem. The main objective of this stage is to generate many ideas as you can.

There are several techniques such as brainstorming, mind maps, lotus blossom,

bionics, synectics, and assumption smashing that can be used for idea generation.

The tools used to generate ideas in this assignment are mind maps and PO.

Mind maps developed by Tony Buzan are an expression of radiant thinking and are

therefore a natural function of the human mind. It can be applied to every aspect of

life where improved learning and clearer thinking will enhance human performance

(Buzan & Buzan, 1993). Main reason for using mind maps was that it is a free

association tool, which helps to generate more ideas freely. Using this tool new ideas

and thoughts can be straight away represented in the mind map as pictures can

illustrate more ideas than trying to write down ideas in words. Few disadvantages of

using mind maps are that because it is an individual creation, others might find it

hard to read and it can become overly complex loosing the big picture.

Compared to other free association techniques available such as story writing and

lotus blossom, using mind maps is more effective as it works the way the brain

works. Since mind maps uses key words and pictures many ideas can be put in paper

than sentences would as in story writing or lotus blossom.

Ideas generated using Mind Maps is shown in the diagram of the next page

******Mind Map Printout

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Provocative Operation, which is sort of a brainstorming technique, was also used to

generate ideas. Ideas generated with this technique does not actually solve the

problem but it moves the way you think to a different level outside your normal

thinking which will actually generate ideas which can be used to solve problems.(8)

Compared to all the other Provocative Methods that are available PO is the most

effective tool to use as unlike in other techniques, when using PO the best ideas are

created since we think out of the box and generates completely new concepts.

Whereas in other techniques such as Distortion and Exaggeration, produces fairly

radical solutions to the problem (Proctor, 2006) which are difficult to implement.

When using PO, more than innovation the possibility of coming up with new ideas is

high.

BELOW ARE THE IDEAS GENERATED USING PO

PO: Restaurants without staff

- Kiosk System

- Robots

- Self Service

- Swipe Cards

- Personal Chef for each table

- Online Reservation of tables using a keyword to enter restaurant

PO: Food without Restaurants

- Plontoons

- Food served on trees

- By the beach on a catamaran

- On the rocks by the sea

- Beside the road

- In the house

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TOTAL IDEAS GENERATED USING MIND MAPS AND PO

1. Kiosk System

2. Robots

3. Self Service

4. Swipe Cards

5. Personal Chef for each table

6. Online Reservation of tables using a keyword to enter restaurant

7. Food to be served in Plontoons

8. Food served on trees

9. Food served by the beach on a catamaran

10. Food to be served On the rocks by the sea

11. Food to be served beside the road

12. Food to be served in the house

13. Online reservation and order placing system

14. Mobile reservation and order placing system

15. Home Delivery

16. Outdoor Catering Service

17. Virtual Restaurants

18. Increase restaurant dining space by extending or renovating

19. Increase dining space by having free seating without any tables or chairs

20. Provide more parking space using a parking facility near by

21. Offer valley parking

22. Open branches in main cities and shopping malls

23. Have mobile restaurants

24. Operate restaurants in well known hotels

25. Offer personalised services

26. Faster order taking process though automated systems

27. Quick table allocation

28. Quick preparation of food and beverages

29. Fast issuing of bills using portable billing systems

30. Fast issuing of bills using token systems

31. Fast issuing of bills using table tracking systems

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7. IDEA SCREENING

Using the techniques mentioned in the idea generation section a large number of

ideas were generated. Using an evaluation technique all the ideas which were

generated are examined and for those which looks interesting are taken and the rest

are discarded. Idea evaluating techniques that were used below are Culling and

weighting system.

7.1 CULLING

Culling……

Shown below is how the ideas screening was done using culling

Ideas numbered from 1 to 31 in the below tables are as per the total list of ideas in

Page 11 & 12

Idea 1 2 3 4 5 6 7 8 9 10 11

Is it Practical Y N Y Y N N N N Y N Y

Is it Different? Y Y N N Y Y Y Y Y Y YDoes it give any advantage? Y N Y Y N Y N N N N N

Idea 12 13 14 15 16 17 18 19 20 21 22

Is it Practical Y Y Y Y Y N N N Y Y Y

Is it Different? N Y Y N N Y N Y N N N

Does it give any advantage? N Y Y Y Y Y Y Y N N Y

Idea 23 24 25 26 27 28 29 30 31

Is it Practical Y Y Y Y Y Y Y Y Y

Is it Different? Y N N N N N Y N Y

Does it give any advantage? Y Y Y Y Y Y Y Y Y

Page 12 of 15


7.2 WEIGHTING SYSTEM

Second technique which was used to evaluate ideas was the weighting system. First,

an evaluation criteria was generated and then a different weighting was given for

each criteria based on the importance of this criteria to the problem that is tried to be

solved.

After screening the Ideas using culling, below are the ideas that were selected for

further screening.

Idea 1: Kiosk System

Idea 13: Online reservation and order placing system

Idea 14: Mobile reservation and order placing system

Idea 23: Mobile restaurants

Idea 29: Fast issuing of bills using portable billing systems

Idea 31: Fast issuing of bills using tracking system

After merging ideas

Idea 1: Kiosk System

Idea 2: Online reservation and order placing system using web and mobile devices

Idea 3: Mobile restaurants

Idea 4: Fast issuing of bills using portable billing systems

Idea 5: Fast issuing of bills using tracking system

CriteriaCriteria

Importance Idea 1 Idea 2 Idea 3 Score Subtotal Score Subtotal Score Subtotal

Cost 4 3 12 3 12 3 12

Infrastructure 3 2 6 2 6 3 9

Quality of Service 5 3 15 4 20 3 15

Technology 4 4 16 4 16 2 8

Market 5 3 15 4 20 3 15Total 64 74 59

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CriteriaCriteria

Importance Idea 4 Idea 5 Score Subtotal Score Subtotal Score SubtotalCost 4 2 8 3 12

Infrastructure 3 3 9 3 9 Quality of Service 5 3 15 3 15

Technology 4 3 12 3 12

Market 5 4 20 3 20

Total 15 68

BIBLIOGRAPHY

1. Ray, M & Myers, R 1986, Creativity in Business, Broadway Books, New York

2. Chaffee, J 2003, Thinking Critically, 7th ed, Houghton Mifflin Company, Boston

3. David, F.R. 2003, Strategic Management Concepts & Causes, Pearson Education Inc, India

4. Coates, N.F., Cook, I., Robinson, H, 1996, ‘Idea Generation Technique in an industrial market’, Journal of Marketing Practice’, vol. 3, no. 2, pp. 107-118

REFERENCES

1. Central Bank of Sri Lanka, Annual Report 2006. Chapter 4 - Prices, Wages and Employment. [Online] Available from: http://www.cbsl.gov.lk/pics_n_docs/10_publication/_docs/efr/annual_report/Ar2006/Content.htm[Accessed 25 Jul 2007]

2. Central Bank of Sri Lanka, Annual Report 2006. Chapter 3 - Economic and Social Infrastructure. [Online] Available from http://www.cbsl.gov.lk/pics_n_docs/10_publication/_docs/efr/annual_report/Ar2006/Content.htm [Accessed 25 Jul 2007]

3. Central Bank of Sri Lanka, Annual Report 2006. Chapter 2 - National Output and Expenditure. [Online] Available fromhttp://www.cbsl.gov.lk/pics_n_docs/10_publication/_docs/efr/annual_report/Ar2006/Content.htm [Accessed 25 Jul 2007]

4. The Sunday Times Online – Sunday January 28th 2007 [ISSN: 1391-0531]http://sundaytimes.lk/070128/financialtimes/ft309.html [Accessed on 29-07-2007]

Page 14 of 15

http://sundaytimes.lk/070128/financialtimes/ft309.html

http://www.cbsl.gov.lk/pics_n_docs/10_publication/_docs/efr/annual_report/Ar2006/Content.htm







5. http://www.transcurrent.com/tamiliana/archives/235Trans Currents Accessed on 29-07-2007

6. Buzan, T. & Buzan, B. 1993, The Mind Map Book, 1st ed, BBC Worldwide Ltd, London

7. Proctor, T, 2006, Creative Problem Solving for Managers: Developing Skills for decision making & innovation, 02nd ed, Routledge Tailor & Francis Group, New York

8. (http://www.timboucher.com/journal/2005/08/27/provocative-operations/)

9. http://www.dsr.nsw.gov.au/assests/pubs/industry/ryc-swotanalysis.pdf

(SWOT Analysis)

9. http://www.mycoted.com/Progressive_Hurdles http://www.mindtools.com/pages/article/newTMC_5W.htmhttp://inventors.about.com/library/lessons/bl_isaksen_treffinger.htm

Page 15 of 15

http://inventors.about.com/library/lessons/bl_isaksen_treffinger.htm

http://www.mindtools.com/pages/article/newTMC_5W.htm

http://www.mycoted.com/Progressive_Hurdles

http://www.dsr.nsw.gov.au/assests/pubs/industry/ryc-swotanalysis.pdf

http://www.timboucher.com/journal/2005/08/27/provocative-operations/

http://transcurrent.com/tamiliana/archives/235

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Business Creativity and Innovation