INNOVATION AND CREATIVITY IN

BUSINESS

Dr. Ramesh Chandra Babu,

M.Com.,MBA.,FDPM(IIM-A), UGC-NET, MISTE, Ph.D
Associate Professor,
School of Business and Management,
CHRIST University
Bengaluru- India

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Introduction - Innovation
Objectives:
1) to create a climate and structure within which innovation
is encouraged, facilitated and rewarded.
2) to develop management practices designed to encourage
innovative behaviour among employees so that it would
not be a singular event but would be repeated again and
again.
3) not to make you an expert but to give the information
that is needed to be more effective in stimulating
innovation and creativity in the organization and
capturing their benefits.

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Role of Innovation in enterprise
1) Innovation to provide value to customers.
2) Providing ‘customer value’ leads the renewal of fortunes
for the company.
3) Innovation valued by the market place has long been
recognized as a creator and sustainer of enterprise.
4) Innovation can destroy or sweep away the ‘old ways of
doing things’.
5) Innovation can destroy or sweep away the enterprises
and institutions that cling to the ‘old ways of doing
things’.

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Innovation process

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Innovation process
The process begins with two creative acts:
1) Idea generation and
2) Opportunity recognition.

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Idea Generation

Initially, a person develops an new insight about something.

1) it is usually a technical insight
2) Usually with a little or no commercial application.
3) In most cases, a problem or an opportunity inspires the
insight.

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Opportunity Recognition
1) Opportunity recognition occurs when the innovation
brings value to customers. (or)
2) Solve a problem that creates value for customers and
share holders. (or)
3) any innovation that produces a huge cost advantage.

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Idea development
Once an opportunity is recognized, the idea must be
incubated to the point at which it can be evaluated by the
decision makers, who needs answers to several questions:
1) Will the idea work?
2) Does the company have the technical know-how to
make it work?
3) Does the idea represent value for customers?
4) Does the idea fit well with company strategy?
5) Does it make sense from a cost perspective?
Ideas that produce affirmative answers to the above
questions and that obtain organizational support are moved
into some form of idea development.
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Commercialisation
1) Commercialization is by and large a long and bumpy
road.
2) Commercialization is the final test for any idea.
3) At this stage, the customers make the final evaluation.
4) Creativity plays a critical role in innovation process.
5) Creativity sparks the initial idea.
6) Creativity also helps to improve the idea as it moves
forward.

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