Creativity & Innovation

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Creativity can be defined as,

‘the ability to come up with new ideas and to identify new and different
ways of looking at a problem and opportunities’

Innovation can be defined as,

‘the implementation of new ideas at the individual, group or at

organizational level.

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 Sources of Innovative Ideas

1. Trends: Trends signal shifts in the current paradigm (or thinking) of the major population. Observing
trends closely will grant an entrepreneur the ability to recognize a potential opportunity. Following are
some examples of such trends.
a. Societal Trends: health and fitness growth
b. Technological Trends: mobile (cell phone), e-commerce etc.
c. Economic Trends: higher disposable income, dual wage earner families etc.
d. Government Trends: increased regulations, terrorism etc.

2. Unexpected Occurrence: These are success and failures that because they were unanticipated or
unplanned, often prove to be a major surprise to everyone. The infamous 9/11 terrorist attack on US:
Pentagon asked the citizen to give innovative ideas to curb terrorism. They receive approx. 12500 ideas in
no time.

3. Incongruities: Incongruities occur when a gap or difference exists between expectations and reality.
For example When Fred Smith, founder of FedEx proposed overnight mail delivery, he was told ‘If it were
that profitable, the US Post Office would be doing it.’ Another example 24/7 delivery of anything.

4. Process Needs: These occur when an answer to a particular need is required. Venture capitalists often
refer to these needs as ‘pain’ that exists in the market. For example the creation of new medical device
(ACCU Check), medicine, time-saving innovations etc.

5. Industry and Market Changes: Continual shifts in the marketplace are caused by developments such
as consumer attitude, advancement in technology, etc. An example can be of computer

6. Demographic Changes: These arise from trend changes in population, age, education, occupations
etc. For example as the population of Karachi has increased, there is an open opportunity for the
entrepreneurs to construct societies, schools and hospitals etc.

7. Knowledge-Based Concepts: These are the basis of creation or development of something brand
new. For example today’s cell phone technology has advanced to include not only phone services but
cameras, internet access, and music. This has revolutionized the way we use different technologies today.

Source Examples 4
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 Adaptor
Employs a disciplined, precise, and methodical approach
Is concerned with solving , rather than finding problems
Attempts to refine current practices
Tends to adjust according to the flow
‘going with the wind’
Innovator
Approaches tasks from unusual angles
Discovers problems and avenues of solutions
Questions basic assumptions related to current practices
Tends to create new facilities for others
‘sewing parachute on the way’

1. ‘Naah’
2. ‘Can’t’ (said with a shake of the head and an air of finality)
3. ‘That’s the dumbest thing I’ve ever heard’
4. ‘Yeah, but if you did that . . . .’ (poses an extreme or unlikely disaster case)
5. ‘We already tried that –years ago.’
6. ‘We’ve never done anything like that before.’
7. We’ve got deadlines to meet –we don’t have time to consider that’
8. ‘It’s not in the budget’
9. ‘Where do you get these weird ideas?’

1. Innovation is planned and predictable: It is a misconception that innovative ideas only comes
with R&D department under a planned format. In truth, innovation is unpredictable and may
be introduced by anyone.
2. Innovation relies on dreams and blue-sky ideas: Accomplished innovators are very practical
people and create from opportunity grounded in reality –not daydreams.
3. Big projects will develop better innovations than smaller ones: This statement has been proven
false time and time again. Larger firms are now encouraging their people to work in smaller
groups, where it often easier to generate creative ideas.
4. Technology is the driving force of innovation success: Technology is certainly one source for
innovation, but it is not the only one. It is observed that market-driven or customer-based
innovations have the highest probability of success.
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The Innovation Process

Example

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 1. Be action oriented
2. Make the product, process, or service simple and understandable
3. Make the product, process, or service customer-based
4. Aim high
5. Learn from failures
6. Follow a milestone schedule
7. Reward heroic activity

BASIS FOR
CREATIVITY INNOVATION
COMPARISON

Creativity is an act of creating new Innovation is the introduction of

Meaning ideas, imaginations and something new and effective into the
possibilities. market.

Process Imaginative Productive

Related to Thinking something new Introducing something new

Money
No Yes
Consumption

Risk No Yes

Thank You
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