CREATIVITY AND INNOVATION

CREATIVITY
Generation of new ideas Definition: The capability of producing new solutions in the intellectual way to solve problem. Create a new idea, concept, or association, from preexisting or specifically created ones. The phenomenon whereby a person creates something new that has some kind of value.

Exercises on Creativity

EXAMPLE:
Challenge: Can you make this equation correct by moving only one digit and not moving or adding signs? 26-63=1

EXAMPLE
In the smith family, there are 7 sisters and each sister has 1 brother. If you count Mr. Smith, how many males are there in the Smith family.

EXAMPLE

SOURCE OF NEW IDEA

Consumers Existing products and services Distribution channels Research and development Free thinking Self-confidence A plan

IDEAS INTO OPPORTUNITIES

IDEAS INTO OPPORTUNITIES

Idea generation Planning and development Identifying a viable market Anticipating the risk Finding the right business model Change in trend

1. 2. 3. 4. y y y

Demographic trend Socio-economic trend Lifestyle trend Technological trend Product development stage Test marketing stage commercialization

A MODEL OF THE OPPORTUNITY RECOGNITION PROCESS

Education Prior knowledge of marketing and customer problems

Experience

Entrepreneurial alertness

Outcomes Successful opportunity recognition

Personal experience

Work experience

Networks

CREATIVE PROBLEM SOLVING

What is creative problem solving?

CREATIVE PROBLEM SOLVING

It

is a method for obtaining new ideas focusing on the parameters.

The

creative person uses information to form new ideas. Creative problem solving is - looking at the same thing as everyone else and thinking something different.

EXERCISE

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A SOLUTION

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CREATIVE PROBLEM SOLVING

PURPOSE: To develop the awareness and the skills necessary to solve problems creatively.

CREATIVE PROBLEM SOLVING:

TECHNIQUES
1. 2. 3. 4.

Heuristics, Brainstorming, Synectics, Value Analysis

TECHNIQUES:
BRAINSTORMING Purpose: To generate a large number of ideas in a short period of time through the spontaneous contribution of participants.

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TECHNIQUES:
HEURISTICS(to discover") Purpose:

Experience-based techniques for problem solving, learning, and discovery. Heuristic methods are used to speed up the process of finding a good enough solution, where an exhaustive search is impractical. Trial and error
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TECHNIQUES
SYNECTICS Purpose: It is a problem solving methodology that stimulates thought processes of which the subject may be unaware. It similar to Brainstorming, where the discussion is centered around a general idea that is related to a problem, rather than the problem itself .

TECHNIQUES
Value Analysis Purpose: The efficient identification of unnecessary cost.

Value = (Performance + Capability)/Cost = Function/Cost

INNOVATION AND ENTREPRENEURSHIP

What is INNOVATION??? Innovation:

Innovation is a process of taking new ideas to satisfied customers. It is the conversion of new knowledge into new products and services.
"Innovation is the multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace."[

INNOVATION IS ABOUT
CREATING VALUE AND INCREASING EFFICIENCY, AND THEREFORE GROWING YOUR BUSINESS.

DRIVERS FOR INNOVATION

y y y y y y y y y y

Increased competition Shorter product life cycles Value migration Stricter regulation Industry and community needs for sustainable development Increased demend for accountability Demographic, social and maket changes Rising customer expectations regarding service and quality Changing economy Greater availability of potentially useful technologies coupled with a need to exceed the competition in these technologies

PROCESS OF INNOVATION

PROFITS AND INNOVATION

e.g.: Maruti - Swift P D LXI- 5.12 5.9 VXI- 5.51 6.3 ZXI- 6.53 6.6 MARUTI SUZUKI net sales stood at Rs.9,276.7 crore during the third quarter of 2010-11, a growth of 26.5 per cent over the October-December quarter of 2009. MSI had sold 10,18,365 cars in 2009-10, which was 28.55% more than 7,92,167 units in the previous fiscal. Maruti Suzuki Swift was awarded the Frost & Sullivan 2010 Aspirational Car of the Year Award in Segment B- rated high for its achievement in "Excellence in Technology and Innovation".

GLOBALIZATION

GLOBALIZATION1991
The

removal of barriers to free trade and the closer integration of national economies. DEFINITION: The process of increasing the connectivity and interdependence of the world's markets and businesses.

CONTD
The

World Trade Organization is a pangovernmental entity (which currently has 144 members) that was set up to formulate a set of rules to govern global trade and capital flows through the process of member consensus, and to supervise their member countries to ensure that the rules are being followed.

MODULES OF INNOVATION

Closed Innovation: e.g.: GE, Rockefeller

y

Internal Technology Base

Open Innovation: e.g.: IBM, Intel, P&G, Apple and Lego

Internal Technology Base y External Technology Base
y

Intermediaries: e.g.: Nine Sigma and Your Encore

CLOSED INNOVATION
If I discover it, I will find a market for it If I discover it first, I will own it The important technologies I will need can be anticipated in advance The best people in this field work for us

SOURCES AND TRANSFER OF INNOVATION

Scope Data Customer connection Research

Trend analysis Competitive intelligence Purchasing scenarios

Sales data Benchmarking Customer data base

Personal connection Observation and shadowing

Quantitative and qualitative research

TRANSFER OF INNOVATION

Transfer of Innovation (TOI) is designed to help & adapt existing innovative practice for use in new settings, through working with transnational partners. Technology transfer Knowledge transfer Tools, materials, methodologies, occupational referential or standards etc E.g.: Rockefeller

1. 2. 3.

4.

INNOVATION
Why Innovate What Innovation How to Innovate Who Innovates

what does Innovation really mean? Is new packaging on an old product Innovation?

WHY INNOVATE
"Innovation", according to Tony Blair "is absolutely essential to safeguard and deliver high-quality jobs, successful businesses, better products and services for our consumers, and new, more environmentally friendly processes. Progress Help customers Take advantage of opportunity Develop the organization Enrich employees Achieve greater success

WHAT INNOVATION
Innovation- REAL Valuable Risk Reality Growth Profitability Passion

HOW TO INNOVATE
How to Innovate step by step: Ground work Knowing business and targeting its goals Pulling together the right team Creative collaboration Sourcing new ideas and opportunities Envisioning the Innovations potential Getting everyone aligned for action Marketing Refining and providing the innovations benefits Optimizing the business model launching the innovation in the marketplace

WHO INNOVATES

According to dictionary INNOVATION means "To introduce something new.

Thank you