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 nonconformity
Provides appropriate rewards and
recognition

Creative Person (Barron

Conceptual Fluency (i.e. being
1969)

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 ideas
Assumptions
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 didnt I think of that

Lee Towe

Innovation

What 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 customercentered

Innovation is Doing
Things Better,
Doing Things Differently

Types of Innovation

Efficiency
focused

Innovation:

Evolutionary
Innovation:
Incremental Achievements

Revolutionary
Externally focused

Internally

Innovation:

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

Reality
Myths
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

Reality

1. Innovation is a team sport

2. Innovation begins with understanding
the customer
3. Innovation requires effective problem
solvers rather than creative people
4. The innovation process is only one
tool for successful innovation

Components of an Innovation

Has no
Instantaneous
commercial
value

May never be developed into

marketable products
Invention

Scientific
Discovery

Innovation

Market
Buying or Ignoring the Innovation

Adopting
Invention

The Unexpected
Success
R.H. Macy Deptl. Store, New York
1950 climbing Appliances Sales /
Bloomingdales 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 Mergenthalers 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 19 th 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 aint

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
Customers reality cyrns Mc Cormick
Developing Value to the customer-Interior
Decorators

Refine / Modify
Gain Commitment
Possible Solutions/
Proposals
Innovation
Idea
Development

Cycle

Speculative
Exploration

Routine
Procedures

Decision
Experimental
Action
Constructive
Review

Operational
Cycle

Known
Solutions
Rules