Innovation - 1 © Minder Chen, 2012 Creativity and Innovation in the New Economy Minder Chen Associate Professor of MIS California State University Channel

Innovation - 1 © Minder Chen, 2012

Creativity and Innovation in the New EconomyMinder Chen

Associate Professor of MISCalifornia State University Channel Islands

[email protected]

atShanghai University

MBA ProgramDec. 2012

mailto:[email protected]


The Rate of Innovation: Product vs. Process


Key Factors at Three Phases

Fluid Transitional Specific

Product Radical, frequent

Dominant design

Incremental,

rare

Process Rare, rely on skills

General equipment

Specialised equipment

Organisation Organic Semi-structured

Hierarchical

Market Fragmented Segments Commodity

Competition Increasing, different

Decreasing, more similar

Few similar


S-Curve or thelogit function for rate of diffusion adoptation.

The cumulative distribution of innovation adopters who are characterized by the timing of their decision to accept and implement the innovation.

Innovation Diffusion

Everett M. Rogers (1931-2004), Diffusion of Innovations, 4th edition (1995)

Invent

Adopt

Persuade

Decide Reject

Accept

Implement

Abandon

The Process of Innovation Diffusion

Innovation Diffusion Function to Saturate a Market


Technology Forecasting

• “I think there is a world market for maybe five computers.” – Thomas Watson, Chairman, IBM (mainframe giant),

1943

• “This telephone has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”– Western Union (telegraph) internal memo, 1876

• “There is no reason why anyone would want a computer in their home.”– Ken Olsen, Founder, Digital Equipment Corp.

(minicomputer giant) 1977


5 Factors of Innovation Adoption Decision (Roger)

Factor DefinitionRelative Advantage

How improved an innovation is over the previous generation.

CompatibilityThe level of compatibility that an innovation has to be assimilated into an individual’s life.

Simplicity orComplexity

If the innovation is perceived as complicated or difficult to use, an individual is unlikely to adopt it.

TrialabilityHow easily an innovation may be experimented. If a user is able to test an innovation, the individual will be more likely to adopt it.

Observability

The extent that an innovation is visible to others. An innovation that is more visible will drive communication among the individual’s peers and personal networks and will in turn create more positive or negative reactions.

Innovation - 7 © Minder Chen, 2012http://strategicorganizationdesign.com/the-innovator%E2%80%99s-dna-disruptive-research-disruptive-writing

http://www.youtube.com/watch?v=Xy6Ex1C_SAs#!

http://strategicorganizationdesign.com/the-innovator%E2%80%99s-dna-disruptive-research-disruptive-writing


Questioning

• “The important and difficult job is never to find the right answers, it is to find the right question.”

-Peter Drucker

• “question the unquestionable.”

-Ratan Tata


Risk Taking Culture

• “Fail often to succeed sooner.” – IDEO’s motto

• Risk taking: Take enough chances and you risk a few big failures.

• Prototyping

• Embrace mini-failure

• Large firms tend to be more risk-averse


QuestionStorming

• What are your questioning patterns? What kinds of questions do you focus on?

• What questions yield unexpected insights into why things are the way they are?

• What questions surface fundamental assumptions and challenge the status quo?

• What questions generate strong emotional responses (a great indicator of challenging the way things are)?

• What questions guide you best into disruptive territory?

Innovator’s DNA, p. 88Also http://www.pynthan.com/vri/questorm.htm and http://www.vervago.com/wp-content/uploads/skill_sharpener_aug08.pdf

Questionstorming differs from brainstorming in its focus on questions, not ideas


Example

• A QuestionStorming which is a brainstorming but you brainstorm to generate questions to ask, such as what questions we should ask to improve ABC Compnay's innovation initiative?

• "Idea" now becomes "Question"• Examples:

– Who should be in charge?

– What are the major barrier?

– Which area has the most potential?


Observation: Learning From Nature

• Burs of Burdock

• Velcro is a company that produces the first commercially marketed fabric hook-and-loop fastener, invented in 1948 by the Swiss electrical engineer George de Mestral.

Innovation - 13 © Minder Chen, 2012 Source: Innovation DNAs, p. 184


Associative Thinking: Connecting the Dots


http://99u.com/articles/7210/Tina-Seelig-On-Unleashing-Your-Creative-Potential


What is the answer?

•5 + 5 = ?

•? + ? = 10


Kindergarten Classroom


High School Classroom


Office CubiclesRadical innovations are spawned by the interplay of different ideas and domains that don’t usually belong together, through connectivity and conversation.Source: Innovation to the Core


Pixar Office Building

Stimulating innovation via chanced encounters.


Meeting at Pixar

Brain trustGive advice not command

No PowerPoint, please

Daily Reviews (Dailies)Overcoming InhibitionsShowing unfinished work each day liberates people to take risks and try new things because it doesn’t have to be perfect the first time.

Peer Culture


Creativity and Teamspirit• One doesn’t manage creativity [but nurtures]

• One manage for creativity (i.e., creative process)• Tap ideas from all ranks (using multidisciplinary teams)

• Lone inventor myth Encourage and enable collaboration

• Enlightened trial and error (of a creative team) succeeds over the planning of lone genius.*

*http://www.youtube.com/watch?v=M66ZU2PCIcMSource: https://www.youtube.com/watch?v=JkHOxyafGpE (1of 3)

http://v.youku.com/v_show/id_XNDczMzEzNjY4.html


Left Brain vs. Right Brain

Imagination is more important than knowledge - Albert Einstein

Imaginatio

n

Intuition

KnowledgeRational thought

http://www.nytimes.com/2011/10/30/opinion/sunday/steve-jobss-genius.html?_r=0

Logical thinkingAnalogical th

inking

Solving problem

correctively

correctivelySolving problem

creatively

creatively


Left Brain vs. Right BrainLeft brain functionsuses logicdetail orientedfacts rulewords and languagepresent and pastmath and sciencecan comprehendknowingacknowledgesorder/pattern perceptionknows object namereality basedforms strategiespracticalsafe

http://www.heraldsun.com.au/news/right-brain-v-left-brain/story-e6frf7jo-1111114603615http://theness.com/neurologicablog/index.php/left-brain-right-brain-and-the-spinning-girl/

Right brain functionsuses feeling"big picture" orientedimagination rulessymbols and imagespresent and futurephilosophy & religioncan "get it" (i.e. meaning)believesappreciatesspatial perceptionknows object functionfantasy basedpresents possibilitiesimpetuousrisk taking


Comparison between Creative and Receptive Hexagrams

Hexagram 1 ( 乾 ) Hexagram 2 ( 坤 )Creative Receptive

Creative talents Tolerance attitude

Divergent thinking (open) Convergent thinking (close)

Visioning and planning Implementation & execution

Leader Follower

Change Simplify

Facing & taking risks Dealing with resistances

Big pictures Small details

Time Space

乾知大始，坤作成物。

The End is the

Beginning! 生生不息

Documents

Innovation - 1 © Minder Chen, 2012 Creativity and Innovation in the New Economy Minder Chen Associate Professor of MIS California State University Channel