business creativity and innovation
TRANSCRIPT
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
Page 1 of 15
Business Creativity and Innovation Creative Problem Solving
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.
Page 3 of 15
Business Creativity and Innovation Creative Problem Solving
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)
Page 4 of 15
Business Creativity and Innovation Creative Problem Solving
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.
Page 5 of 15
Business Creativity and Innovation Creative Problem Solving
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
Page 6 of 15
Business Creativity and Innovation Creative Problem Solving
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
Page 7 of 15
Business Creativity and Innovation Creative Problem Solving
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
Business Creativity and Innovation Creative Problem Solving
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
Page 9 of 15
Business Creativity and Innovation Creative Problem Solving
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
Page 10 of 15
Business Creativity and Innovation Creative Problem Solving
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
Page 11 of 15
Business Creativity and Innovation Creative Problem Solving
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
Business Creativity and Innovation Creative Problem Solving
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
Page 13 of 15
Business Creativity and Innovation Creative Problem Solving
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
Business Creativity and Innovation Creative Problem Solving
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