UNIT-III

Innovation
Innovation ties everything together in business. According to British Standards, Innovation is the successful
exploitation of new ideas. It involves turning an invention into a commercial success and encouraging its
widespread use. This is the stage where bold ideas, once properly developed, are brought to the public eye.
Example:This is what Uber has achieved, now that its product is in use all over the world and benefits people
everywhere. According to Hunter "Innovation is the implementation or creation of something new that has
realized value to others." Innovation is realized most vividly in the form of a tool, physical benefit, or aid that
solves a problem or creates an advantage.
Examples of innovation:
1.successful products and services like Care of, Amazon Scout, Impossible Food, Google’s self-driving taxis, ...
2.successful process innovations like Amazon predictive orders, or additive manufacturing processes.
Once again, Innovation cannot happen without creativity or invention, and neither creativity nor invention is
useful in business if not properly executed.
Importance of innovation and creativity

• Innovation is the process of creating and implementing a new idea. It is the process of taking useful ideas and
converting them into useful products; services or processes or methods of operation. These useful ideas are
the result of creativity, which is the prerequisite for innovation.
• Creativity in the ability to combine ideas in a unique way or to make useful association among ideas. Creativity
provides new ideas for quality improvement in organizations and innovation puts these ideas into action.
• Change and innovation are closely related, even though they are not the same. Change often involves new and
better ideas.
• The new idea may be the creation of a new product or process or it can be an idea about how to change
completely the way business is carried out. Successful organizations understand that both innovation and
change are required to satisfy their most important stake holders.
Strategic Importance of Innovation
For both established organisations as well as new organisations, innovation and change become important in
a dynamic, changing environment. When a company fails to innovate and change as needed, its customers,
employees and the community at large can all suffer. The ability to manage innovation and change is an
essential part of a manager’s competencies.
 Types of Innovation
Three basic types of innovation are:
(i) Technical,
(ii) Process and
(iii) Administrative.

Technical innovation involves creation of new goods and services. Many technical innovations occur through
research and development efforts intended to satisfy demanding customers who are always seeking, new,
better, faster and/or cheaper products.
Process innovation involves creating a new way of producing, selling or distributing an existing good or service.
Administrative innovation occurs when creation of a new organization design better supports the creation,
production and delivery of goods and services. The various types of innovation often go hand in hand. For
example, the rapid development of business-to-business e-commerce represents process innovation. But this
new process requires many technical innovations in computer hardware and software. Also as firms began to
use business to business e-commerce, administrative innovation soon followed. Further, implementation of
process innovations necessitated organizational change. “Doing something new means doing something
differently”. Thus, innovation and organizational change go hand in hand.
Importance of Creativity

• Creativity goes hand in hand with innovation. And there is no innovation without creativity. While creativity is
the ability to produce new and unique ideas, innovation is the implementation of that creativity - that's the
introduction of a new idea, solution, process, or product.
• Creativity is the driving force behind innovation and the incorporation of looking at things from a different
perspective and freedom of restrictions by rules and written or unwritten norms.
• Creativity can help a company manage tasks, improve staff performance and create quality products. It is also
vital in fostering a likeable and aspirational company image.
• With consumers now able to get a snapshot of what company life is like, businesses need to be able to depict
their inner culture in a way that makes it seem appealing.
• As new technologies continue to develop and become available, companies have to be flexible and able to keep
up to date. Creativity allows them to easily identify new ways in which technology can be applied to help their
businesses. Likewise, with social media and other interactive forms of marketing now available, it’s never been
more important for companies to be able to be creative.
Importance of Innovation :

• Innovation is important because it’s the only way that you can differentiate your products and services from
those of your competitors. For customers and clients to choose your business, your offer needs to be distinctive
and valuable, and the only way to achieve this is through innovation.
• It can be tempting to let your rivals do all the heavy lifting of creativity and innovation, with all the investment,
experimentation and risks that this entails. Then, when they come up with a dazzling new product or
improvement, you can simply copy what they’ve done at a fraction of the effort. However, there are several
pitfalls to this approach.
• Most importantly, you’ll always be playing catch-up. However quickly you get your version to market, your
rivals will always have the lead on you and they’ll already be planning their next move. This means customers
will go to your rivals first, who will maintain a reputation for leading the pack. Your business won’t stand out
because there’ll always be someone else who’s already met the needs and desires of your customers.
• Innovation doesn’t have to be focused on changing a product or service. If you can find an innovative new
process that enables you to create a product more efficiently without compromising on quality, you’ll be able
to stand out from your rivals by undercutting their prices. Similarly, your innovation could come in the form of
a new distribution system, enabling you to stand out by offering the fastest delivery to customers.

Difference Between Creativity and Innovation

There’s a lot of confusion for creativity and innovation. In Creative types of working it is claimed that creativity
and innovation can’t be measured while Performance demands measurement. In a changing world that
changes every second, it’s essential that companies figure out the difference between creativity and
innovation.
Creativity vs. Innovation

• Creativity is the capability or act of conceiving something original or unusual while Innovation is the
implementation of something new.
• The main difference between creativity and innovation is the focus. Creativity is about releasing the potential
of the mind to visualize new ideas. Those
• concepts could manifest themselves in any number of ways, but most often, they become something we can
see, hear, smell, touch, or taste. However, creative ideas can also be thought experiments within one person’s
mind.
• Creativity is subjective, making it hard to measure, as our creative friends assert.
• Innovation, on the other hand, is completely measurable. Innovation is about introducing changes into
relatively stable systems. It’s also concerned with the work required to make an idea feasible.
• Identifying an unrecognized and unmet need, an organization can use innovation to apply its creative resources
to design an appropriate solution and reap a return on its investment.
• Invention is the creation of something that has never been made before and is recognized as the product of
some unique insight.
• If you have a brainstorm meeting and dream up dozens of new ideas then you have displayed creativity but
there is no innovation until something gets implemented. Somebody has to take a risk and deliver something
for a creative idea to be turned into an innovation. An invention might be a product or device or method that
has never existed before.
Creativity and Innovation in a Business Environment
 • When you implement creativity in a business environment, remarkable things can happen.
• Creative design thinking introduces a fresh and unconventional approach to problem-solving,
resulting in rewarding and often pleasantly surprising outcomes.
• In addition, creativity and innovation are inseparable partners. Innovation cannot exist without
creativity, as it relies on the ability to generate new and unique ideas.
• Creativity serves as the driving force behind innovation, enabling the introduction of new ideas,
solutions, processes, business models, products, and services.
• It challenges the status quo, encourages a different perspective, and liberates us from the
constraints of conventional thinking.

Importance of Creativity in Business Environment

Creativity in business plays a vital role in driving innovation, differentiation, and overall
success. It involves thinking outside the box, challenging conventional norms, and generating
new ideas and approaches.
Competitive Advantage Benefits of Creativity and Innovation
Differentiation and Unique Creativity helps businesses develop unique offerings and stand out from
Offerings competitors in the market.
Problem-solving and Creative thinking enables fresh perspectives and innovative solutions to
Adaptability tackle challenges and adapt to change effectively.
Growth and Expansion Creativity and innovation open doors to new opportunities and markets,
driving business growth and expansion.
Employee Engagement and Nurturing a creative culture boosts employee engagement and satisfaction,
Satisfaction leading to higher productivity and retention.
Customer Satisfaction and Creative solutions address customer needs, enhancing satisfaction and
Loyalty building customer loyalty.
Continuous Improvement and Creativity and innovation drive continuous improvement, ensuring
Future-proofing businesses stay relevant in the long run.
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TEAMS FOR INNVOATION
10 Tips for Successful Innovation Teams
1. Start by building a bigger box rather than trying to think outside it!
2. Select your team for who they know as well as what they know
3. Pick one leader and provide him or her the autonomy they need to be successful
4. Build a team that can both identify gaps in the market and markets in the gap!
5. Find team members who tell great stories!
6. Understand the difference between good and bad conflict
7. Supplement the innovation core team with an external provocateur
8. Remember to set goals and measure progress
9. Think like a startup entrepreneur
10. Ensure team members have “both feet in”
Creative Process

1. Preparation stage: As you begin the creative journey, the first stage involves prep work and idea generation.
This is when you gather materials and conduct research that could spark an interesting idea. Brainstorm and
let your mind wander, or write in a journal to foster divergent thinking; this will help you consider all possible
approaches to building out your idea. In this first part of the process, your brain is using its memory bank to
draw on knowledge and past experiences to generate original ideas.
2. Incubation stage: When you have finished actively thinking about your idea, the second stage is where you
let it go. Part of creative thinking is taking a step away from your idea before you sit down to flesh it out. You
might work on another project or take a break from the creative process altogether—regardless, you are not
consciously trying to work on your idea. Walking away from your idea might seem counterproductive, but it’s
an important stage of the process. During this time, your story or song or problem is incubating in the back of
your mind.
3. Illumination stage: Sometimes called the insight stage, illumination is when the “aha” moment happens.
The light bulb clicks on as spontaneous new connections are formed and all of that material you’ve gathered
comes together to present the solution to your problem. In this third stage, the answer to your creative quest
strikes you. For example, you overcome writer’s block by figuring out the ending to your story. It can take you
by surprise but after the incubation stage, an idea has emerged.
4. Evaluation stage: During this stage, you consider the validity of your idea and weigh it against alternatives.
This is also a time of reflection when you look back at your initial concept or problem to see if your solution
aligns with your initial vision. Business professionals might do market research to test the viability of the idea.
During this phase, you might go back to the drawing board or you might forge on, confident in what you’ve
come up with.
5. Verification stage: This is the final stage of the creative process. It’s when the hard work happens. Your
creative product might be a physical object, an advertising campaign, a song, a novel, an architectural design—
any item or object that you set out to create, propelled by that initial idea that popped into your head. Now,
you finalize your design, bring your idea to life, and share it with the world.
How can you measure creativity in evaluation?
• Measuring creativity in evaluation is no simple feat, as there is no one-size-fits-all measure that can
capture its complexity and diversity. However, there are some criteria and indicators that can be used
to assess creativity in evaluation.
• Originality, relevance, fluency, and flexibility are all important factors to consider when evaluating
creativity. Originality looks at how novel or unique the ideas, products, or solutions.
• Relevance considers how useful or valuable the ideas are for the evaluation purpose, context, and
stakeholders. Fluency measures how many ideas were generated by the evaluator or process.