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 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

“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 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