Creativity & Innovation

BM006-3-2-CRI (VC1) 1st April 2018

Lecture 1:
Concept and phases in innovation
 Topic Learning Outcomes

• To demonstrate knowledge of the

underlying concepts and principles in
innovation introduction.
• To demonstrate critical understanding of
the well established concepts, principles in
the phases of innovation.
• To demonstrate a systematic understanding
of key aspects in types of innovation

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Innovation

Development of something new and its

implementation into a viable product that one
can purchase.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Different forms of newness

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 The phases of innovation

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Exploration

• Invention is a key part of the exploration phase.

• This is where ideas are turned into workable inventions
• The development of new artefacts that perform a specific
function.
• Typically this process involves much experimenting with
variations and refinements.
• Three main types of trigger event in exploration are;
– 1. Idea generation
– 2. Scientific discovery
– 3. technological breakthrough

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Thomas Edison, the inventor of
the light bulb

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Tim Berners-Lee invented the
World Wide Web - hypertext.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 1. Idea generation

• A cerebral process whereby individuals conceive

something new
• Typically the product either of a very deliberate and
intentional process, where the design to initiate
something new, or of a much less deliberate and
informal process.
• When idea generation tend to be formal and relatively
structured process, it involves a group of individuals,
and applications of one or more ‘creativity’ techniques
that can be used to aid and assist in generating new
ideas.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 • Idea generation tends to take place as part
of one of there possible scenarios
– Problem-related – idea for a potential new
product or service that will help in solving
problem
– Associative – the sight of one device performing
a particular function in a particular way that
provides the trigger.
– Serendipitous – a chance event that gives rise to
a spontaneous moment of inspiration.
BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation
 Problem related: Flash of genius
Source: https://www.newyorker.com/magazine/1993/01/11/the-flash-of-genius

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Associative: Flymo
Source: https://www.flymo.com/uk/about-us/

Flymo is part of the world’s largest producer of

outdoor power products, and our success has
been brought about by our determination to be
the innovators within the garden care industry,
making the lives of gardeners easier.
The British invention of the hovercraft, was the
inspiration for Swedish lawn mower
manufacturer Karl Dahlman to invent a flying
lawnmower.
A lawn mower floating on a cushion of air…
Flymo, for short – a brilliant idea in 1964, and a
brilliant idea today! It wasn’t long before the idea
‘took off’ and the company grew from strength to
strength during the 1970’s, building lawnmowers
in its UK factory, where they are still
manufactured today.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Serendipitous : Velcro
Source: https://www.brainpickings.org/2011/05/13/happy-birthday-velcro/

Velcro was patented in the United States on May

13, 1958, and invented seven years earlier.
The miracle adhesive was the brainchild of Swiss
electrical engineer George de Mestral (June 19,
1907–February 8, 1990).

One afternoon, as he was taking a walk in the

forest, he noticed the that burrs — the seeds of
burdock thistle — stuck to his clothes and
wondered how they did that.

So he excitedly rushed home, stuck one under

the microscope, and spent the next ten years
perfecting nature’s brilliant hook-and-loop
adhesion mechanism,

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 2. Scientific discovery

• Science is concerned with the systematic

acquisition of knowledge in order to
understand and explain natural
phenomena.
• Advances in scientific knowledge lead to
discoveries about the properties of natural
phenomena and these can have uses and
application s in a wide range of fields.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Scientific discovery: Electricity

• The life-changing discovery of electricity is attributed to the English

scientist Michael Faraday. His main discoveries include the
principles underlying electromagnetic induction, diamagnetism, and
electrolysis. Faraday’s experiments also created the first generator,
the forerunner of the huge generators that produce our electricity.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Scientific discovery : Air conditioning system

Primitive air conditioning systems have existed since the

ancient times, but it was not until 1902 when the very first
modern electrical air conditioning unit was invented by a young
engineer named Willis Carrier in Buffalo, New York.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Technological breakthrough
• Involves the application or development of technology to create something
that advances capability or techniques to improve performance.
• https://www.technologyreview.com/lists/technologies/2019/
– Robot – teaching themselves to handle physical world.
– New-wave nuclear power – advanced fusion and fission reactors
– Predicting preemies – a simple blood test to predict premature babies
– Gut probe in a pill – a small. swallowable device captures detailed images of the
gut without anesthesia
– Custom cancer vaccines – the treatment incites the body’s natural defenses to
destroy only cancer cells
– The cow-free burger – both lab-grown and plant-based
– Carbon dioxide catcher – to capture carbon dioxide from the air
– An ECG on your wrist – electrocardiogram
– Sanitation without sewers – energy-efficient toilets
– Smooth-talking AI assisstants

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 2. Exploitation
– Search for things with the commercialization of
potential new products and services that have been
developed into inventions as part of exploration
phase.
– Aligning the new product with the requirements of the
market and the consumer.
– How the new product or service will be made and
delivered have to be agreed in order to ensure that at
least some kind of profit is the end result.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Business model

• There are many ways to exploit an idea, a

discovery or a technology, though in reality
only a very small number of them are likely
to succeed.
• The exploitation mechanisms are known
as ‘business models’.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 • Business model - a tool that allows
inventors to profit from their ideas and
inventions.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Business model

Value Creation

Invention Business
model
Value Capture

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 • A business model performs two important functions as
far as the exploitation of an invention – value creation
and value capture
– Value creation – a series of activities that enable the user to
recognize the benefit and hence the value from the invention.
– Identify the users to whom the innovation is going to be of use
and then articulate the value proposition so that the users are
aware of its purpose and the benefit they can expect to derive.
– No matter how enthusiastic the inventor, unless the articulation
of value is effective potential users will not be interested.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 • Value capture –
– The value that innovators hope to gain is
revenue (i.e money)
– The most obvious way is through sale
– But there are a variety other methods of
generating revenue – renting, charging by
transaction, advertising. Subscription, and
charging for after-sale support.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 3. Diffusion

– The rate at which an innovation is taken up

and adopted by consumers

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 • Innovators – a very small number of highly
enthusiastic.
• Early adopters – fashion conscious trendsetters
• Early majority – more pragmatic individuals who
require solid evidence of benefits
• Late majority & laggards – make an appearance
after saturation has been reached and in both
instances are reluctant converts

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Summary of Main Points

• This lecture has provided a brief overview of innovation.

• Innovation is a complex topic that draws on not only
several academic disciplines (economics, marketing,
computing, & engineering), but also different fields of
professional expertise (scientists, programmers,
managers, & lawyers).
• Distinguish the different forms that innovation can take,
such as product, service and process innovations
• Differentiate and distinguish between the different types
of innovation, such as radical and incremental
innovation.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Question and answer session

Q&A

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation Slide <27> of 13
 What we will cover next

• Theories of innovation
• The macro perspectives
• Technological change
• Technological paradigms
• The micro perspectives

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation Slide <28> of 13
 Tutorial: Case studies – Instagram,
Twitter, Facebook, Baidu, Amazon
• Instruction: Break the tutorial class into 5 groups.
Each group choose 1 company.
• Case study questions:
– Where was the novelty in this innovation (i.e. what was
new about it)?
– What triggered the start of the exploration phases of the
innovation process?
– What was the business model employed to facilitate
exploitation of the idea?
– Who captured a huge amount of value from this
innovation and why?

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation

 Tutorial: Questions for discussion

• Explain the difference between exploration and exploitation. Which

do you consider the more important and why?
• Outline the main phases in the process of innovation,
• Explain what is meant by the term ‘business model’ in the context of
innovation.
• Why is value creation likely to be a problem with innovations?
• Why is value capture an important issues for innovators?
• Why do product innovations tend to attract more public attention
than service or process innovations?
• What is meant by radical innovation? Take an example of radical
innovation and analyse the impact it has on society. Take care to
differentiate between the different groups within society that have
been affected.

BM006-3-2-CRI CREATIVITY & INNOVATION Concept & phases in innovation