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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 ideasAssumptions– 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
InnovationWhat 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
Types of Innovation
Efficiency Innovation: Internally focused
Evolutionary Innovation: Incremental Achievements
Revolutionary Innovation: Externally focused
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
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 RealityMyths
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
Reality1. Innovation is a team sport2. Innovation begins with understanding
the customer3. Innovation requires effective problem
solvers rather than creative people4. 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 / 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
Innovation Cycle
Possible Solutions/ Proposals
Idea Development
Decision
Experimental Action
Operational Cycle
Speculative Exploration
Constructive Review
Routine
Procedures
Known Solutions
Rules
Innovation and Creativity