Creativity and Innovation

Creativity is not a
talent.
Creativity is a
drive
 CREATIVITY

 Creativity is any act, idea,

idea or product that changes
an existing domain or that
transforms an existing domain
into new one.
 Creativity is the ability to
come up with new ideas and to
identify new and different
ways of looking at a problem
and opportunities.

 Creativity can be described as

the discovery of something
that is novel but also useful or
relevant or economical,
valuable.
Need for Creativity
 To strive and thrive you need creative ideas
 ….downsizing tends to make us timid when we need to
be bold
 ….the creative employees are the ones that will survive
 TYPES OF CREATIVITY

 Primary creativity : deals with spontaneous creations.

 Secondary creativity : is more deliberate and skilled as
in the application of ideas and insight to inventions.
 Technical creativity : aims at finding out improvement
in a process so as to improve efficiency.
 Inventive creativity : aims at making or devising new
combination of ingredients
 Innovative creativity : it involves for reaching
application of more basic ideas such as management
application of principles of psychology to develop a much
more effective system for motivating staff.
CREATIVE PROCESS

Preparation

Incubation

Insight

Evaluation

Elaboration
 CREATIVE PROCESS

 Preparation : successful creations are preceded by

investigation and information gathering. It can be achieved
by gathering information from journals, attending meeting
seminars etc.
 Incubation : creative person allows their sub
consciousness mind to dwell over tremendous amount of
ideas and information accumulated during the preparation
phase.
 Insight : this is the moment when the person is able to
locate solution to their problems. Generally in most of
the cases ideas comes to person in incremental way. The
person improves on solution slowly and steadily.
 Evaluation : this phase is regarded as the most
emotional trying part, when one feels uncertain and
insecure and thinks about reaction of other people.
 Elaboration : this is the most difficult step of creativity
endeavour and requires great self discipline, dedication
and perseverance.
 BARRIERS TO CREATIVITY
 Resistance to change : people just get used to doing a
particular work in customized manner and they are just
opposed to any new idea or change.
 Lack of initiative : organizational managers from top to
bottom are just opposed to giving initiative to their
subordinates fearing that it will undermine their authority.
 Restriction on interaction : a free and open
environment provides members an opportunity to
interact with members of their own and other groups.
Such interaction facilitates exchange of ideas and
information required for creative work where as in
restricted environment creativity is adversely effected.
 Fear of something going wrong : many new ideas may
go wrong or prove impractical. Whenever creative work
is to be undertaken the possibility of success or failure is
always there.
 Lack of recognition : failure to recognize or reward
creativity acts as de motivating factor. Hard work put in
by creative people must be compensated with adequate
financial and non financial rewards.
 Resource constraints : creativity demands sufficient
availability of resources. Absence of adequate resources
may dampen the spirit of creativity.
 SOURCES OF NEW IDEAS
 Basic research : all firms are engaged in some kind of
basic research and development , which can lead to
development of new product ideas that have already
passed the initial screening stage.
 Production stage : workers actively engaged in the
production of products can suggest certain modifications
and improvements. These workers can provide ideas
aimed at improving quality , cost and performance of
potential product.
 Sales force : sales representative are directly in touch
with the customers and are thus better equipped to take
note of customer needs by this they can provide better
product development idea.
 Management : management team based on their
knowledge, skill and experience can come out with new
ideas for product development.
 Magazines and trade journal : useful ideas about new
products can be obtained from these magazines and trade
journals.
 Competitors : in order to survive in present day
competitive environment, it is in the interest of the
entrepreneur to keep a eye on activities of his rivals.
 Buyers : an entrepreneur while keeping track of the
requirements of the consumers can definitely get useful
ideas aimed at developing a better product.
 Sellers : can provide idea for new product development
as they act as link between producers and consumers and
are better equipped to provide required information.
 Overseas market : a producer interested in taking care
of foreign market can do it in better manner by getting
right ideas aimed at improving product acceptability in
these markets.
 IDEAS INTO OPPORTUNITIES

New Concept Product

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 IDEAS INTO OPPORTUNITIES
 New product idea : an attempt is made to visualize the
product. An in depth study may be undertaken to
anticipate features of the proposed product. Ideas may be
contributed by scientists, professional designers, rivals,
customers, sales force etc.
 Idea screening : under this step detailed investigation of
various ideas is carried on. Those ideas which offer less
scope are dropped. Most promising ideas are chosen for
product development.
 Concept development and testing : all ideas chosen
after preliminary screening are subjected to in depth
study. These ideas are developed into mature product
concepts.
 Business potential analysis : after choosing best
product idea, detailed investigation is carried out to find
its market potential, gestation period, capital investment,
and expected rate of return.
 Product development : after clearing business
potential analysis tests concrete steps are taken for giving
practical shapes to the proposed product.
 Test marketing : test marketing involves placing fully
developed new product for sale and observing its actual
performance under propose marketing plan.
 Commercialization : is the actual introduction of the
product into market place with all the related decisions
and resources commitment.

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CREATIVE PROBLEM SOLVING TECHNIQUES

Brain storming

heuristic Creative problem solving Synectics

Value analysis
 Heuristic : is an adjective for experience based
techniques that help in problem solving , learning and
discovery. This method is used to rapidly come to an
solution that is hoped to be close to best possible answer.
Heuristics stands for strategies using, readily accessible,
though loosely applicable, information to control problem
solving in human beings and machines. Although the
solution quality may not be the best, often they work well
in generalized situation.
 BASIC HEURISTICS DIRECTED TOWARDS
CREATIVITY
 Make it habit to purposely pause and notice things.
 Focus on your creative energies on just few topic areas
that you genuinely create about and work on these
purposeful.
 Avoid being too narrow in the way you define your
problem or topic.
 Try to come up with original and useful ideas by making
novel associations among what you already know.
 When you need creative ideas , remember attention
escape and movement.
 Pause and carefully examine ideas that make you laugh
the first time hear them.
 Recognize that your streams of thought and patterns of
judgement are inherently right or wrong, they are just
what you think now based on primarily on patterns from
your past.
 Make a deliberate effort to harvest, develop and
implement at least a few of the ideas you generate.
 Brain storming :
 In this group members or individuals are encouraged to
spell out maximum number of possible solutions of a
specific or stated problem.
 Under brain storming more emphasis is laid on the
number of possible solutions or ideas.
 CHARACTERISTICS OF BRAIN STORMING
 This technique is not suitable where the problem has a
unique solution which can be found through analysis or
evaluation.
 brain storming can take place only when there is specific
topic.
 Brain storming results in generation of numerous ideas
out of which a few ideas are chosen for in depth
investigation.
 Brain storming provides ample opportunities to
participants to put forth various suggestions for solving
specific problems.
 Brain storming enables participation to freely share
different ideas.

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 PRINCIPLES OF BRAIN STORMING
 During the generation phase of ideas, evaluation process
is deferred.
 The second principle is based on ‘quantity begets quality’
right environment must be provided for generating
maximum number of ideas.
 Brain storming brings forth novel and different ideas.
Novels ideas in certain cases may not appear to be
practical ideas.
 It is better to appreciate ideas of others as well as ones
own previous ideas.

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 Synectics : has been adopted by the Greek word
synecticos incorporating diverse elements. synectics is
applied in finding innovative practices to a number of in
traceable technical problems. Major analogies under this
technique are :
 Direct analogy : it involves discussing analogy of the
problem situation from very different field. It involves
direct comparison under discussion with some other
similar phenomenon.

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 Personal analogy : under this problem solver is
expected to project himself into situation and report back
his experience of the particular situation like what he
feels, sees, hears, thinks etc.
 Fantasy analogy : under this concerned person is asked
to release his imagination from real life constraints. Group
members are used to fantasize some perfect solutions
even if it is contrary to known scientific principles.
 Symbolic analogy : it requires group members to poetic
or paradoxical phrases for situation. The leader is
expected to take key word or even undertake some
decisions and ask the group members to come up with
short proactive phrases that capture word under
discussion.

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 Value analysis is important approach to improving the
value of product or process by understanding its
constitutes components and their associated costs. Value
analysis is a cost reduction and problem solving technique
that analyzes an existing product or service in order to
reduce or eliminate any costs that do not contribute to
value of performance.
 COMPONENTS OF VALUE CHAIN ANALYSIS
 Value : the ratio between function for customer
satisfaction and the cost of that function.
 Function : the effect produced by a product or by one of
its elements , in order to satisfy customer needs.
 Value analysis : methodology to increase the value of an
object to object to be analyzed could be an existing or
new product or process and it is usually accomplished by
a team following work plan.
 Need : something that is necessary or desired by the
customer.

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 VALUE ANALYSIS PROCESS
 Orientation / preparation : refers to collecting the
basic information required for the process and various
stages at which value addition is possible in process.
 Information : collection of data in detail in relation to
every step in value addition process.
 Analysis : of various options of value addition
 Innovation and creativity : refers to implementing new
or improved way of performing every step in the process.
 Evaluation : understanding effectiveness of change
implemented in process.
 Implementation and monitoring : refers to after
screening of improvised method it is to be implemented
and monitored for its working as per expectation.

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 PROFITS AND INNOVATION
 Entrepreneur is one who always searches for changes and
responds to it and exploits it as an opportunity. Innovation
is treated as an instrument of entrepreneurship. An
entrepreneur innovates and creates resources until
someone finds a use for it and endows economic value to
it.

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 ROLE OF ENTREPRENEURS
 An entrepreneur must be an innovator as well as leader.
 He must be capable of analyzing and exploiting the
opportunities.
 An entrepreneur should innovate for the present period
and not for the future.
 Innovation must be easy to understand otherwise it may
not give the desired result.
 An entrepreneur must posses the knowledge, ingenuity,
diligence, persistence, and commitment to innovation.
 An entrepreneur must mobilize resources and allocate
them to make a commercial gains from the opportunities
indentified.
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 MODULES OF INNOVATION
 Innovation : it is the production of totally new product
service or process so far untried.
 Extension : it involves new use or application of an
already existing product, service or process.
 Duplication : it is the replication of an already existing
product, service or process. It is not merely copying but
adding something new with creative touch to enhance or
improve the existing concept.
 Synthesis : it is the combination of existing concepts and
ideas and devising a way so that together they may form a
new application.

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 SOURCES AND TRANSFER OF INNOVATION
 Unexpected occurrences : sometimes unexpected
success or failure prove to be a major innovative surprise
for the enterprise. These happenings are normally
anticipated and unplanned.
 Incongruities : these occurs whenever a gap or
difference exists between the expectations and reality. The
gap motivates the entrepreneur to innovate with all the
more vigour.
 Process needs : these needs are created whenever
situation and surrounding circumstances generate demand
for the innovation. Entrepreneurs are prompted to
innovate to satisfy the requirement of process needs.

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 Industry and market changes :changes in consumer tastes,
fashions, advancement in technology result in change in
structure and design of product. These changes generate
tremendous opportunities for innovation and improvements.
 Demographic changes : like changes in population,
education, occupation, urbanisation etc, create entrepreneurial
opportunities.
 Perceptual change : it is reflected in the change in peoples
attitude, feelings, interpretation. Change in perception does not
change, the object or fact, but changes the meaning or attitude
towards the particular concept.
 Knowledge based concept : these are basis for the
development and creation of new products and market. These
are time consuming as these need testing and modifications.

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 HOW TO INNOVATE
 Organise for paid experimentation : examine, revamp
entrenched routines, organizational boundaries and
incentives to encourage rapid experimentation.
 Fail early and often but avoid mistakes : embrace
failures that occur early in the development process and
advance knowledge significantly.
 Anticipate exploit early information :recognize the
full value of front loading, identifying problems up stream,
where they are easier and cheaper to solve.
 Combine new and traditional technologies : do not
assume that new technology will necessarily replace and
established one. New and traditional technologies are best
used in concept.

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 WHO INNOVATES
 Educated individuals
 Higher in social standing
 Less dogmatic
 Better equipped to deal with abstraction
 More receptive to risk in general
 Higher in achievement motivation
 Higher in social participation
 More cosmopolitan
 More often engaged in interpersonal communication
 Active information seeker

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 GLOBALIZATION
 Globalization is the system of interaction among the
countries of the world in order to develop the global
economy. Globalization refers to the integration of
economics and societies all over the world. Globalization
involves technological, economic, political, and cultural
exchanges made possible largely by advances in
communication, transportation, and infrastructure.

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 ADVANTAGES OF GLOBALIZATION
 Power of the WTO, IMF, and WB. According to experts,
another effect of globalization is the strengthening power and
influence of international institutions such as the World Trade
Organization (WTO), International Monetary Fund (IMF), and
World Bank (WB).
 Greater Mobility of Human Resources across
Countries. Globalization allows countries to source their
manpower in countries with cheap labour.
 Greater Outsourcing of Business Processes to Other
Countries. China, India, and the Philippines are tremendously
benefiting from this trend of global business
outsourcing. Global companies in the US and Europe take
advantage of the cheaper labour and highly-skilled workers that
countries like India and the Philippines can offer.

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 7. Civil Society. An important trend in globalization is
the increasing influence and broadening scope of the
global civil society. Civil society often refers to NGOs
(nongovernment organizations). There are institutions in a
country that are established and run by citizens. The family,
being an institution, is part of the society. In globalization,
global civil society refers to organizations that advocate
certain issue or cause

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 Improvement of International Trade. Because of
globalization, the number of countries where products can
be sold or purchased has increased dramatically.
 Technological Progress. Because of the need to
compete and be competitive globally, governments have
upgraded their level of technology.

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 DISADVANTAGES OF GLOBALIZATION
 Developed countries can stifle development of
undeveloped and under-developed countries.
 Economic depression in one country can trigger adverse
reaction across the globe.
 Companies face much greater competition. This can put
smaller companies, at a disadvantage as they do not have
resources to compete at global scale
 Another major damage of globalization is that some
cultures are getting lost. The cultures of the countries that
have more economic power are more dominant than
others. Because, wealthy countries produce many things
that can affect cultures, for example, clothes, movies and
technologic products

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 SYLLABUS
 Creativity and Innovation: Creativity, Exercises on
Creativity, Source of New Idea, Ideas into Opportunities.
 Creative problem solving: Heuristics, Brainstorming,
Synectics,Value Analysis
 Innovation and Entrepreneurship: Profits and
Innovation, Globalization, Modules of Innovation, Sources
and Transfer of Innovation, Why Innovate, What
Innovation, How to Innovate, Who Innovates
THANK YOU

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