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Creativity & Innovation

Its application in Business R.S.Mathur

E3 Creativity and Innovation


Unit 1 Creativity Techniques; Blocks to creativity; Creative Personality; The commercialisation of creative and innovative ideas. Unit 2 Creativity and innovation and their Commercialization: Example of creativity that leads to innovation; Unit 3 Trends in technology development; Corporate creativity: A planned process; 22 April 2012 R.S.Mathur Special issues in creativity and innovation. 2

Syllabus MBA DS

"You cannot teach a man anything; you can only help him to find it within himself" Galileo
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A few thoughts to start with


It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.

Charles Darwin, The Origin of the Species

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A few thoughts to start with

Chance favors only the prepared mind.

Louis Pasteur

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We are always saying to ourselves.. we have to innovate. We got to come up with that breakthrough. In fact, the way software works.. so long as you are using your existing software.. you don't pay us anything at all. So we're only paid for breakthroughs.

Bill Gates Founder Microsoft

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A few thoughts to start with


The

best leaders are apt to be found among those executives who have a strong component of unorthodoxy in their character. Instead of resisting Innovation, they symbolize it.

David Ogilvy Advertising Guru

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A few thoughts to start with

Innovation distinguishes between a leader and a follower.

Steve Jobs CEO of Apple

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A few thoughts to start with


The

world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.

Rupert Murdoch Media Mogul


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A few thoughts to start with


The

winner is the chef who takes the same ingredients as everyone else and produces the best results.

Edward De Bono Creative thinking Guru


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A few thoughts to start with


Obviously

everyone wants to be successful, but I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world

Sergey Brin Co-founder Google

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A few thoughts to start with

This is the nature of genius, to be able to grasp the knowable even when no one else recognizes that it is present.

Deepak Chopra Holistic Healer

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A few thoughts to start with

The Internet is based on a layered, end-to-end model that allows people at each level of the network to innovate free of any central control. By placing intelligence at the edges rather than control in the middle of the network, the Internet has created a platform for Innovation.

Vinton Cerf Father of the Internet


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A few thoughts to start with

Well, when you're trying to create things that are new, you have to be prepared to be on the edge of risk.

Michael Eisner Former CEO of Disney

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A few thoughts to start with

When you're the first person whose beliefs are different from what everyone else believes, you're basically saying, "I'm right, and everyone else is wrong." That's a very unpleasant position to be in. It's at once exhilarating and at the same time an invitation to be attacked.

Larry Ellison CEO of Oracle

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A few thoughts to start with

Vision is perhaps our greatest strength.. it has kept us alive to the power and continuity of thought through the centuries, it makes us peer into the future and lends shape to the unknown.

Li Ka Shing Hong Kong Entrepreneur

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A few thoughts to start with

The lifeblood of our business is that R&D spend. There's nothing that flows through a pipe or down a wire or anything else. We have to continuously create new Innovation that lets people do something they didn't think they could do the day before.

Steve Ballmer CEO of Microsoft

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A few thoughts to start with

Just as energy is the basis of life itself, and ideas the source of innovation, so is Innovation the vital spark of all human change, improvement and progress.

Theodore Levitt

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A few thoughts to start with

The best way to predict the future is to invent it.

Alan Kay

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A few thoughts to start with

Since we live in an age of innovation, a practical education must prepare a man for work that does not yet exist and cannot yet be clearly defined.

Peter F. Drucker Management Guru

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A few thoughts to start with

The important thing is not to stop questioning.

- Albert Einstein

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A few thoughts to start with

Those who have changed the universe have never done it by changing officials, but always by inspiring the people.

- Napoleon Bonaparte

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A few thoughts to start with

If opportunity doesn't knock, build a door.

- Milton Berle

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A few thoughts to start with

Great is the human who has not lost his childlike heart.

- Mencius (Meng-Tse), 4th century BC

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A few thoughts to start with

Where there is an open mind, there will always be a frontier.

- Charles F. Kettering

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A few thoughts to start with

Observe what is with undivided awareness.

- Bruce Lee

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A few thoughts to start with

When you are completely absorbed or caught up in something, you become oblivious to things around you, or to the passage of time. It is this absorption in what you are doing that frees your unconscious and releases your creative imagination.

- Dr. Rollo May


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A few thoughts to start with

Innovation - any new idea - by definition will not be accepted at first. It takes repeated attempts, endless demonstrations, monotonous rehearsals before Innovation can be accepted and internalized by an organization. This requires "courageous patience."

- Warren Bennis

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A few thoughts to start with

Where all think alike, no one thinks very much.

- Walter Lippmann

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A few thoughts to start with

Discoveries are often made by not following instructions, by going off the main road, by trying the untried.

- Frank Tyger

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A few thoughts to start with

CREATIVITY is thinking up new things. INNOVATION is doing new things.

- Theodore Levitt

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A few thoughts to start with

The human mind, once stretched by a new idea, never regains its original dimensions.

- Oliver Wendell Holmes

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A few thoughts to start with

When written in Chinese, the word CRISIS is composed of two characters- one represents DANGER and the other represents OPPORTUNITY.

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Challenge:
Can you make this equation correct by moving only one digit and not moving or adding signs? 26 - 63 = 1 Hint: (62-63 = -1) is not a correct solution. Now challenge your assumptions.

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Creativity and innovation

Creativity is the production of new ideas in any domain. Innovation is the implementation of such new ideas

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Challenge:
1. 2.

Make four equilateral triangles using six matchsticks. Caution: Do not break the sticks and No stick should cross any other.

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Another exercise
A cowboy rode into a town on Friday. He stayed for three nights and then left on Friday. How come?
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His horse was called Friday.

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Entrepreneurship, Creativity and Innovation


It is an established fact that the route to economical growth is through entrepreneurship. In order to compete in todays markets, companies must not only ensure that their products and services are relevant and value adding, but that they are continually updated and new ones introduced at necessary intervals. This is where Innovation helps. Creativity and innovation are often key to entrepreneurial success , Particularly when strategizing during planning, and when designing new products and services.
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Bill Gates Founder of Microsoft


on the compulsion of being innovative..

We are always saying to our self.. we have to innovate. We got to come up with that breakthrough. In fact, the way software works.. so long as you are using your existing software.. you don't pay us anything at all. So we're only paid for breakthroughs.
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Creativity
What is it? Its the ability to see something in a new way It involves divergent thinking It is the process of generating new ideas. Any idea, even slightly different from something that already exists, is a creative idea. It is seeing what everyone else sees and thinking something different. Out of the box thinking
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Definition
Seeing what every one else sees but thinking something different. Creativity is the ability to think up and design new inventions, produce works of art, solve problems in new ways, or develop an idea based on an original, novel, or unconventional approach. Peter F. Drucker defines innovation as: "change which creates a new dimension of performance."

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Creativity

is different from

Innovation

Creativity is often confused with innovation, which is more about planning and implementing ideas. You can have 100 new ideas each day, but you are innovative only when you have successfully implemented one of them. Innovation is applied Creativity Inhnovation is the profitable implementation of ideas. The word "innovate" can be traced all the way back to1440. It comes from the French word "innovacyon" meaning 22 April 2012 R.S.Mathur 42

Out of- the Box Thinking


Answer the classical question, Is the glass half full or half empty? An engineer would just say, The glass is bigger than needed!

Complete the sentence, The mind is like a parachute. it functions only when it is open.

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Creativity and innovation

Creativity is the production of new ideas in any domain. Innovation is the implementation of such new ideas

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The Innovation Process

Creativity

Exploration

Innovation
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Exploitation
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Creative and Innovative Ideas


All Innovations begin with creative ideas or a unique insight. Creativity and Idea generation are starting points for Innovation What is Innovation? (Definitions) The classic definitions of Innovation are as follows:

1. The process of making improvements whether to a process, product or service 2. The act of introducing something new and useful 3. The formation of a new concept, method or device that leads to a gain 4. The successful exploitation of new ideas (DTI UK) 5. Change that creates a new dimension of performance (Hesselbein, 2002) 6. Innovation is about bringing good ideas to life
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The Innovation Process

Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. For example, Amabile et al (1996) propose:

"All innovation begins with creative ideas . . . We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second".
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Innovation
Innovation makes businesses future ready. Innovation is an organization's core competitive advantage in a crowded and dynamic market.

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Innovation
Unfortunately, innovation, unlike audits or reengineering, is not given to formulas. It is given to people -- restless, inspired, fascinated individuals with an almost cellular need for change. And while it can be supported by systems, it can never be reduced to systems. "Innovation," as Tom Peters so aptly put it, "is a messy business."

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Edward de Bono
A pioneer in the art of deliberately improving ones creative thinking processes, Creative thinking solves problems, but Creative thinking is also directed towards creating something entirely new- like works of art. De Bono in his book The Mechanism of Mind has proposed techniques to enhance creative thinking.

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Creative Thinkingthe De Bono way..


The emphasis is on breaking away from the conventional way of looking at things and looking at it in a new way: 1. Random Input: essentially from an outside source, eg. selecting a word randomly from a book and trying to relate it to the problem, or any object that one sees. 2. Quota: decide a minimum number of solutions (say six) one will come up with. This allows

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Lateral Thinking- De Bono

1.

2.
3. 4.

Many problems require a different perspective to arrive at a successful solution. De Bono identifies four critical factors associated with lateral thinking: Recognise dominant ideas that polarise perception of a problem, Searching for different ways of looking at things, Relaxation in rigid control of thinking, and Use of chance to encourage other ideaslateral thinking involves low probability ideas which are unlikely to occur in the normal course of events.
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An anecdote is provided by De Bono


A merchant, who owes money to a money lender, agrees to settle the debt based upon the choice of two stones (one black, one white) from a money bag. If his daughter chooses the white stone, the debt is canceled; if she picks the black stone, the moneylender gets the merchant's daughter. However, the moneylender "fixes" the outcome by putting two black stones in the bag. The daughter sees this and when she picks a stone out of the bag, immediately drops it onto the path full of other stones. She then points out that the stone she picked must have been the opposite color of the one remaining in the bag. Unwilling to be unveiled as dishonest, the moneylender must agree and cancel the debt. The daughter has solved an intractable problem through the use of lateral thinking.

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Lesson from De Bonos Anecdote

Principle: To get a different perspective on a problem, try breaking the elements up and recombining them in a different way (perhaps randomly)

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de Bono's Creativity Techniques..


Essentially, it has to do with breaking out of the way one has been looking at a problem, and looking at it in a new way: Edward de Bono, in his book "The Mechanism of Mind," proposes the following techniques to enhance creative thinking. In his book he describes a model of how the mind works, which explains why these techniques are useful cont..

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Random Input:
1. 2.

1. 2.

This can take the form of : Opening a book at random, Selecting a word at random (by pointing with one's eyes closed) and then thinking about how that word can relate to the problem one is working on. There are many other ways of bringing random input into one's thinking. One can go for a walk and let the objects one sees influence one's thinking. The input should be from outside the mind, since the mind will tend to choose something related to the ways one has already been viewing the problem
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A shift from Logical Thinking


Associative Thinking: Thinking of A, A reminds o B, B of C, C of D etc., Empathic Thinking: Putting oneself in the shoes of another or even a thing, Bisociative Thinking: Examining an issue from two or more quite different perspectives and then trying to integrate ideas yielded by the different frames of references, Metaphoric Thinking: Seeking an arresting metaphor or the problem situation and then working out its implication, Fantasy Thinking: Imagining the impossible, and Dialectical Thinking: a series of statements and rebutting or questioning counter statements, are some other modes of thinking that can yield useful insights

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Convergent and Divergent Thinking

1.

2.
3. 4. 5.

Convergent and Divergent thinking frequently proceed in cycles of logical and out-of-the-box thinking until a solution is found that is both novel and effective Convergent Thinking involves processes as: Defining key terms, A clear statement of the problem, Its analysis into various components, Identification of the criteria for judging the efficacy of the solution, Choosing among the alternatives on the basis of these criteria etc. cont
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creative steps the ant


lots of small steps incremental evolutionary convergent

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Convergent and Divergent Thinking

1. 2. 3.

4.

Divergent Thinking: is much more exploratory and has a trial-and-error approach. It could involve: An unconstrained listing of options, Fantasying, Coming out with arresting metaphors, Getting into out- of the- box thinking that may sound even impractical or even crazy.
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creative steps the flea


great leaps unguided revolutionary divergent

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Divergent Thinking
For encouraging divergent thinking, it is necessary to keep the critical faculties in the off mode for the time being and Adopt a more playful, open and experimental mindset.

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Professor Alans formula for creativity!


structure + diversity

innovation

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Inhibitions and Stimulus to Creative Thinking


1. 2. 3. 1. 2. 3. 4.

Creative thinking is inhibited by: Defensiveness, Fearfulness and Propensity to live on the beaten track. Creativity is stimulated by: Curiosity, Openness, Independence, and Adventurousness. Questions and not answers are the creative acts of intelligence. Questions widen search while answers freeze search
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Quota:
When you've thought up a satisfactory solution to your problem, don't stop. You may be able to think of a still better solution. The quota method is to say something like, "I'm going to think up at least 5 tolerably good solutions to this problem. You then of course choose the best one to actually implement. I used this technique in thinking up some names for the webstar

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3. Attention to different parts of the problem

Selecting an aspect of a problem and bringing that aspect into the foreground of one's thoughts for a while allows a perspective to develop which can lead to a solution. One of de Bono's examples: Some employees were impatient waiting for slow elevators in a building. The solution was to install mirrors. The employees became busy looking at themselves in the mirrors and were no longer impatient. This solution came from switching attention from the problem of the slowness of the elevators to the problem of the impatience of the employees.

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Cross-fertilization
Allowing ideas to flow back and forth between more than one person. This method has similarities to random input, but is more than that. Two or more people working together can think up new ideas that none of them would think up alone, because they have more than one way of looking at things, So each can continue the thought process when the other gets stuck.

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Reversal:
Thinking of the opposite of something in some way: 1. opposite in size, time, direction, meaning, etc; 2. switching the roles of two people or things. In the elevator example above, one might think, "What if we purposely try to make the elevators even slower?" This question might lead, in a roundabout way, to the solution of installing mirrors, via the thought of the employees wanting to spend more time standing in the hall. Or it might lead to some other solution which one might not have thought of if one hadn't asked the question.

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"Success is one of the leading causes of failure,..


..writes consultant Jim Clemmer in his new book, Pathways to Performance

Mr. Clemmer's examples from history:

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1.

When trains were first developed, the King of Prussia confidently predicted: "No one will pay good money to get from Berlin to Potsdam in one hour when he can ride his horse there in one day for free. In 1903, the president of Michigan Savings Bank gave this market advice to Horace Rackham, Henry Ford's lawyer: "The horse is here to stay. The automobile is only a fad, a novelty."
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2.

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3.

4.

A British parliamentary committee assessed whether Edison's light bulb would ever be useful. They concluded it was "unworthy of the attention of practical or scientific men." Edison himself made these market assessments: "The phonograph is not of any commercial value" and "the radio craze will die out in time."
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5. News item in an 1868 New York paper: "A man has been arrested in New York for attempting to extort funds from ignorant and superstitious people by exhibiting a device which he says will convey the human voice any distance over metallic wires so that it will be heard by the listener at the other end. He calls this instrument a telephone. Wellinformed people know that it is impossible to transmit the human voice over wires."
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6. In 1946, Darryl Zanuck, then head of 20th Century Fox, predicted: "Video (television) won't hold any market it captures after the first six months. People will soon get tired of staring at a plywood box every night. 7. In 1980, a Wall Street auto analyst told a Senate committee: "General Motors, already the automotive king of the road, will become even more dominant by the mid-1980s and will be the only auto company capable of building a full range of cars and trucks."
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A list of qualities that describe innovators:


1.

2.

3.

4. 5.

Challenges status quo -- dissatisfied with current reality, questions authority and routine and confronts assumptions. Curious -- actively explores the environment, investigates new possibilities, and honors the sense of awe and wonder. Self-motivated -- responds to deep inner needs, proactively initiates new projects, intrinsically rewarded for efforts. Visionary -- highly imaginative, maintains a future orientation, thinks in mental pictures. Entertains the fantastic -- conjures outrageous scenarios, sees possibilities within the seemingly impossible, honors dreams and daydreams. Cont.
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A list of qualities that describe innovators: cont..


Takes risks -- goes beyond the comfort zone, experimental and non- conforming, courageously willing to "fail. 7. Peripatetic -- changes work environments as needed; wanders, walks or travels to inspire fresh thinking; given to movement and interaction. 8. Playful/humorous -- appreciates incongruities and surprise, able to appear foolish and child-like, laughs easily and often. 9. Self-accepting -- withholds compulsive criticism of their own ideas, understands "perfection is the enemy of the good," unattached to "looking good" in the eyes of others. 10.Flexible/adaptive -- open to serendipity and change, able to adjust "game plan" as needed, entertains multiple ideas and solutions.
6.
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A list of qualities that describe innovators: cont..


Makes new connections -- sees relationships between seemingly disconnected elements, synthesizes odd combinations, distills unusual ideas down to their underlying principles. 12. Reflective -- incubates on problems and challenges; seeks out states of immersion; ponders, muses and contemplates. 13. Recognizes (and re-cognizes) patterns -- perceptive and discriminating, notices organizing principles and trends, sees (and challenges) the "Big Picture." 14. Tolerates ambiguity -- comfortable with chaos, able to entertain paradox, doesn't settle for the first "right idea." 15. Committed to learning -- continually seeks knowledge, synthesizes new input quickly, balances information gathering and action. Cont
11.

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A list of qualities that describe innovators: cont..


15.Balances

intuition and analysis -- alternates between divergent and convergent thinking; entertains hunches before analyzing them; trusts their gut, uses their head. 16.Situationally collaborative -- balances rugged individualism with political savvy, open to coaching and support, rallies organizational support as needed. 17.Formally articulate -- communicates ideas effectively, translates abstract concepts into meaningful language, creates prototypes with ease. 18.Resilient -- bounces back from disappointment, learns quickly from feedback, willing to "try, try again." 19.Persevering -- hardworking and persistent, champions new ideas with tenacity, committed to follow-through and bottom-line results. 22 April 2012 R.S.Mathur 78

15 ways to stimulate CREATIVITY


1. Associate with diverse individuals 2. Spend time with children under the age of 6 3. Eat and drink different foods and beverages 4. Try a new hobby 5. Fly a kite 6. Exercise (stimulates endorphins) 7. Relax (blow bubbles, review mementos/photos from last vacation) 8. Meditate (beta state of brain) 9. Go to a cultural celebration 10. Visit a museum 11. Take a walk in the woods 12. Visit a foreign country or watch a foreign film 13. Practice saying yes and why not to something new 14. Listen to good music or an opera 15. Go and browse in a toy shop!

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- Ann McGee-Cooper - "You Don't Have to Go Home from Work Exhausted!"

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BE YOUNG BE CHILDLIKE

The creative person is usually rebellious. He or she is the survivor of a trauma that is usually called education! Unfortunately, most of us learned to "act our age" as we grew up. This meant abandoning some of the most natural and powerful high-energy stimulants available to us. Learn to let the child within you live. Fifteen childhood characteristics that encourage creativity and Innovation and that frequently get lost in adults:
1.

Seek out things that are fun to do 2. Jump from one interest to another 3. Be curious and eager to try new things 4. Try to smile and laugh a lot more 5. Experience and express your emotions freely 6. Get physically active 8. Constantly grow - mentally and physically 9. Risk often - are not afraid to keep trying something that they aren't initially good at and aren't afraid to fail 10. Rest when your body tells you to 11. Learn enthusiastically 12. Dream and imagine 13. Believe in the impossible 14. Generally don't worry about things 15. Get Passionate!
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Avoid mental blocks


Sometimes surprising things happen; A white man was unsuccessful in trying to catch monkeys. A native took a narrow mouthed pot and placed a biscuit at the bottom. Monkey reached in grabbed cookie, but couldn't remove hand. Was stuck - didn't think of letting go! We don't want to get trapped into fixed methods of doing things to the point where we can't see any other way. Babies tend to do the same thing (grasping reflex) "lock-on" to finger, can't let go. The Moral - Avoid mental blocks.

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Creative Personality

The Personal Creativity Assessment exercise:

Check off all the statements that apply to you. 2. Then refer to the interpretation guide and 3. The creativity matrix on which to plot the assessment results.
1.
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Personal Enablers to Creativity


Knowledge: Being aware of many practical techniques for generating ideas. Locus of control: People are empowered to be creative by a sense of control over my personal circumstances and fate when at work. Confidence: Employees are confident of their ability to produce valuable new ideas and solutions.

Open-mindedness: People are drawn to new perspectives, even when they clash with my 22 April 2012 R.S.Mathur 84 assumptions and values.

Personal Enablers to Creativity


Experience: Individuals and the organisation have often benefited from creativity of the people in past work experiences. Role models: There are a number of people in the workplace who have succeeded in part because of their high level of creativity. Leadership support: Organisation leaders (including supervisors and managers) encourage creativity. Leadership openness: Leaders are open to input and enjoy listening to my ideas.

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Personal Enablers to Creativity


Rewards: People who exhibit creativity in the workplace are rewarded for their efforts. Training: Employees at all levels receive plenty of good training to help us be more creative. Emotional resiliency: Employees feel secure enough in their workplace to handle the risks of creativity. Diverse inputs: The work and hobbies expose the employees to a wide variety of ideas and practices. Independence: Innovators are viewed as an independent thinker by my peers.

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Personal Enablers to Creativity

Lack of attachment: The innovators are not attached to specific ideas or theories; they like exploring many alternatives. Playfulness: People like fooling around with ideas, and find creative thinking and problemsolving activities fun. Persistence: Once people get thinking about a problem, they dont set it completely aside until they have solved it-even if it takes many weeks. Empathy: Most people are good at sensing what others think and feel, and this skill helps me pick up or add to the good ideas of my associates.

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Personal Enablers to Creativity


Self-perception:

The people see themselves as creative persons. Inventiveness: People like to invent new products and devices. Boundary-breaking: People often come up with fresh ideas by making connections between unrelated thing or unrelated activities.
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Interpretation: Personal enablers


Add up the check marks to see the number of personal enablers you have right now. The more you have, the more likely you are to be successfully creative at work. If you checked 11 or more statements, then you can classify yourself as having a high level of enablers.

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Barriers/Blocks to Creativity
Barriers get inculcated in all of us at a very early age, From the very enjoyable and creative games and activities of the very young children we enter the increasingly serious, rigid and inflexible regime of teens, This is carried through the school, university and professional and technical training, Managers, so made, tend to have a well developed analytical ability but a poorly developed creative ability This creative ability is further stultified by barriers, and a sense that management is serious business, rarely to be enjoyed and laughed about.

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Barriers/Blocks to Creativity

Barriers to Innovation
1. Resistance to change innovation disrupts stability. 2. Interdepartmental rivalry 3. Excessive rules and bureaucracy inhibits implementation of innovations 4 Left brain dominance 5. Comfort in maintaining status quo
cont
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Barriers/Blocks to Creativity cont..


6. Fear of change 7. Fear of risk 8. Fear of trying 9. Fear of making mistakes 10. Negative mentality NIH Syndrome 11. Indifference and apathy 12. Us vs. Them attitudes cont..
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Barriers/Blocks to Creativity cont..


Most organisations control systems are financial. With results being published monthly/quarterly forcing managers to adopt short time horizons. Factors like quality, image and innovativeness are difficult to measure and do not become bases for rewards. Managers have little incentive to take up long term developmental activities. 14. Major innovations based on breakthrough discoveries can take several years before realizing financial success.
13.
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Barriers/Blocks to Creativity cont..


15.

During a downturn or turbulent times, when companies need creativity and innovation the most, they are sacrificed, unfortunately, for projects with fast returns. Finally, management needs to balance innovation and organisational stability. However, the organisation can fight competition on a long term basis only if it exploits creativity continuously.
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Creativity Killers
- Surveillance - Evaluation - Rewards (if overused, deprive intrinsic pleasure of creative activity) - Competition (win-lose situations) - Over-control - Restricting choices - Pressure
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Take a Test for Personal barriers


Acceptance: I tend to take a dont rock the boat attitude instead of challenging the status quo. Low self-evaluation of work: I dont think the work I do in my job is particularly valuable or worthwhile in the grand scheme of things. Lack of skill diversity: My work requires a specific, narrow set of skills. Limited chances for skill development: My work does not give me many opportunities to develop new skills.

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Take a Test for Personal barriers


No challenges: My work does not challenge me. No sense of personal responsibility: I dont feel personally responsible for the results of my work because its hard to see how my own contributions affect overall performance. : We are encouraged to solve problems in certain ways, rather than to explore unconventional approaches.

No Limited size of solution sets role models: Most of the time, my supervisors do not act or think like creative people.
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Take a Test for Personal barriers


Narrow-minded peer acceptance: my work associates are not open to new or wild ideas. Sanctions: People who spend too much time on creative thinking are labeled as troublemakers, things will go badly for you in long run. Personal narrow-mindedness: I guess Im fairly set in my ways. My feeling is, If it isn't broke, dont fix it. Bipolar thinking: I generally prefer to look at two alternative-thats why I often find myself thinking in terms of either/or solutions.
22 April 2012 R.S.Mathur 98

Take a Test for Personal barriers

Overconfidence: At work, were pretty certain that our approach is the right one-maybe so certain that we dont always examine alternatives as well as we could. Time pressures: There is so much pressure to finish one thing and get to the next that I rarely have time to take a thoughtful, lengthy approach to a problem. Procedure constraints: I have some ideas about how to do things better, but I dont bring them up because they would violate our policies and procedures.
22 April 2012 R.S.Mathur 99

Take a Test for Personal barriers


Red tape: There isnt much point in contributing creative ideas, because they will just get lost in the bureaucracy. Close-minded leaders: My leaders (supervisors, managers) are not very open to new ideas. They tend to react defensively. Group-process constraints: Id like to do more creative thinking, but there isnt much opportunity for it in the way we run our meetings and projects. Conformance pressure: If you dont look and act right way, you cant succeed in my workplace.
R.S.Mathur 100

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Interpretation Personal barriers


Add up the check marks to see the number of personal barriers you have right now. Less is more for this scale, as the fewer barriers you have, the more likely you are to be successfully creative at work. If you checked 11 or more statements, then you can classify yourself as facing a high level of barriers in your job. Any barrier is a potential problem, so the best scores are in the 0-to-3 range.

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Personal Creativity Matrix


0 Low

OPEN
Open to creative thoughts but not ready to initiate or lead creativity

CREATIVE
Active creative thinker who applies creativity successfully

BARRIERS

10

CLOSED
15

LATENT
A potential source and Stimulator of creative thought

Actively avoids creativity

High

20 0 5 10 15 20

Low
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ENABLERS
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High
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Personal Creativity Matrix

1. 2. 3. 4.

Use the number of check marks to identify the category. Most likely, most persons would score in the top left or the bottom right and a few in the most desirable or the least preferred bottom left. Go all out to push the three categories to the right top cell through: Training Mentoring Exposure to conducive environment and Minimising the barriers.
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Enhancing Creativity

The educational system lays so much emphasis on rote memorization of data, that cultivating the imagination is a lost art. But with the right inputs and a conducive environment, creativity can be learnt. Developing creativity is the same as developing any other skill, You have to learn about it and practise it regularly. Curiosity can be a strong trigger. Samuel Johnson once remarked, curiosity is one of the permanent and certain characteristics of a vigorous intellect cont..
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Enhancing Creativity cont..

Creativity is an attitude of mind which is developed through a curiosity to see things from different perspectives and to link two totally unconnected things- eg. Cats eyes on the roads The process of learning creativity and innovation brings the changes required in thinking and action that create new ideas and options for the individual and the organisation. This means breaking rules and convention and being a role model and developing an environment that encourages others to be creative too Achieve a balance between left and right brain thinking.
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Forms of Creativity

There are different forms of creativity and different skills are required to implement them.

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Essence Creativity
1. 2. 3. 4.

Manifests as novel: Ideas, Points of views, Paradigms or, Perspectives, It requires excellent abstraction skills and some of the most remarkable examples are found among the great works of scientists-Einstien, mathematicians- Chandrashekhar, and pioneering artists- Leonardo da Vinci etc.
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Elaborative Creativity

1. 2. 3. 4.

Manifests as innovative elaboration of ideas or paradigms that may already be familiar. It requires the ability to Visualise the impact of ideas, Link various views together, Weave together complex and unique design, and Transform a concept into a fully developed product, service, programme, event or activity.
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Expressive Creativity
It is the novelty in the way a commonplace is presented ( word, paint or music etc.), or It is presented through a different medium. It is requires expertise with off-beat and vivid use of a medium

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Existential Creativity
The ability to grow and develop own self in distinctive ways, So that the emerging person is unique and frequently distinguishes himself/herself as creative.

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Empowerment Creativity

Activities that empower others in unique ways such as those of empowering leaders like Mahatma Gandhi

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Entrepreneurial Creativity
Requires : 1. The ability to spot and seize opportunity, 2. Take calculated risk and 3. Convert an idea or an information into viable enterprise. Some of the most fascinating examples are Sir Jamsetji Tata, G.D.Birla, Dhirubhai Ambani, Karsanbhai, and Narayanmurthy

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Brainstorming
One of the routes to creative problem solving, It is a semi-structured, creative group activity. Used most often in ad-hoc business meetings to come up with new ideas or innovation, improvement or innovative problem solving, Members are encouraged to come up with ideas, The aim is to generate as many ideas as possible, even though they may always not be usable alternatives, The idea is to achieve synergy in creativity,

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Major Rules of Brainstorming Exercise


The participants are encouraged to come up with as many ideas- however wild they are- There are no bad ideas, 2. no judgment is to be passed on any idea until the end of the session, 3. Participants are encouraged to build on each others idea (Cross fertilisation or hitch -hiking)- creating unlikely combinations and taking each one in unexpected direction.
1.
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Tips for Successful Brainstorming


1.

2. 3.

4. 5.

Communicate the subject and the objective very clearly to the participants,- introduce it as a creative challenge. Appoint an experienced facilitator- could be an outsider also, Each and every idea generated must be recordeduse black/white board, flip chart or electronic equipment etc- and visible to all the participants, Ideally the group should have 8-10 people, from varied backgroundsEven outsiders may be invited for a totally fresh thinking cont
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Tips for Successful Brainstorming cont..


6. 7. 8. 9. 10.

Larger groups can be split and then made to report to each other afterwards, Give the participants a few minutes before starting the sesion Set a limit or the session-time limit is typically 4060 minutes, or, It could be idea limit- say 50 ideas at least Create a relaxed atmosphere- people stretch themselves to generate ideas.

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Evaluating Ideas in Brainstorming


1. 2.

Well-run brainstorming session will produce hundreds of ideas, In the cold light of the day they may appear to be silly, rubbishy or totally a waste, A systematic procedure is required to discarding all the ideas- and throwing the baby out with the bathwater. A brainstorming session which produces one winner of an idea is time well -spent Evaluation can be done by two methods : Analytical and Convergent

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BRAINSTORMING
The Problem State the problem and Discuss

CREATIVE PROCESS

Restate

Select a restatement Warm-up Brainstorm Wildest Ideas Many ideas

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DIVERGENT

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Evaluation of Ideas Generated during Brainstorming


Many Ideas Generated during Brainstorming Session All Participants Write the Ideas Display the Ideas Pick, say ,10% best ideas Team of 3 or 4 Quick scrutiny for possible winners Group all Ideas Establish criteria Evaluate BEST IDEA

Collate BEST IDEA

BEST SOLUTION
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Implementing Ideas
At the end o the brainstorming session discuss and decide the method o implementing the idea, If the above is complicated, hold another brainstorming session on how to implement the idea/ideas

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Evaluating Brainstorming Method itself


The method has been used for almost 70 years, Very effective method of generating a large volume of ideas in a short time- frame, Group processes are effective in evaluating existing ideas, The actual, well-run session is fun, generating a lot of laughter, enjoyment and a sense of involvement. (If youre not in business to have fun, what the hell are you doing here ?- Robert Townsend) cont..

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The efficacy of the method has been questioned at times. Brainstorming session will generate a large number of ideas only may give solution, Also, bright individuals have created original and high quality ideas, At creative companies, should your team brainstorm as a group or as individuals? At creative companies, switching between the two modes can be seamless and highly productive People switch between both modes so seamlessly that it is hard to notice where individual work ends and group work starts. Finally, it is the implementation that matters rather than2012 method of finding the solution to the problem 22 April the R.S.Mathur 122

Evaluating Brainstorming Method itself cont

Enterprise Innovation

1. 2.

Globalisation and privatisation has exposed India to hyper competition, To survive and prosper companies must catch up rapidly with international standards of product and service design and quality, productivity, customer orientation, ethical conduct and CSR etc., Indias productivity is 1/10th the international standard, and we rank far below the Western and Japanese enterprise related competitiveness index. We have two options: Imitate, or Innovate
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Imitate
1.

2.

Implies whole scale borrowing of Western/Japanese technology and management tools like TQM.TPM,Six Sigma, JIT,ERP,EVA Balanced Scorecard etc and narrow the gap. However, the prospects of success of this approach is suspect on two counts: If most Indian companies adopt the same technology or tools that are highly replicable as the implementation is highly programmable, then none may be able to gain any competetitive advantage, The efficacy of implementation rests on prerequisites and pre-conditions like, management support, financial and human capital cost of implanting the tool in the organisation, necessary competence in implementation and cultural and attitudinal transformation . Available evidence does not suggest benefits from 22 April 2012 R.S.Mathur adoption of such tools in the third world countries124

Innovate

Sustained technical and managerial innovation, as a second option, promises an assured chance of catching up, and even surpassing the global leaders, The power of home-grown and contextually adapted foreign innovations is exhibited by examples from the US and Japan during post WWII years to become unchallenged global leaders, The Japanese borrowed quality control from US and adapted and developed it to culture-specific tools like kaizen, kanban, Hoshin Kanri planning and ringi system of decision making etc. The US improvised management innovations like the concept of profit centres, divisionalisation, behavioural science tools for motivation and problem solving, etc, Learning to innovate continuously can provide India with a irsmover advantage again and again, This can translate into sustainable competitive advantage and rapid growth in a highly competitive environment 22 April 2012 R.S.Mathur 125

Enterprise Innovation
In the enterprise context, innovations are applied creatively leading to a novel way o persuing organisational goals, The creative idea could be home-grown or borrowed from outside, developed, tested out and implemented so that it is extremely unique in its final form. The process often involves co-ordinated efforts o several groups o people within the organisation,

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Enterprise Innovation
Interesting developments in recent times show inter-organisational innovations, Rivals in the same high-tech industry are increasingly collaborating in R&D based innovations, For example, French Alcatel, German Siemens, and British Plessey teamed up to develop digital switching systems. The related development is network product innovation, The network may include not only rivals, but also vendors, lincensors, JV partners and customers. Example: development of home banking required synchronization of financial services, telcom technology and IT, sellers of goods and services , local banks and even the customers

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Challenges in Enterprise Innovation: UNCERTAINTY


Most significant enterprise innovations need to cope with uncertainty on various fronts: 1. Technical-the right approach needed to achieve the innovative product/service, 2. Preferences of the intended users o the innovative product/service, 3. Costs and the benefits of the innovation Such uncertainties must be dealt with ingenuity for converting creative ideas to innovation.

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Challenges in Enterprise Innovation: RESOURCES


1. 2.

Enterprise innovations-especially breakthrough technical innovations are frequently not cheap. They need allocation of substantial: Financial resources and The best dedicated brains and other human resources. Several Western and Japanese companies support R&D budgets which are greater than the total turnover of Indias largest private sector enterprises In view of the uncertainties it is difficult to estimate and control the cost and benefits of innovation. Too tight a control impedes creativity and Too lax a control could result into runaway costs
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Challenges in Enterprise Innovation: Resistance


Enterprise resistance to innovation and change arising from inertia and pain in moving out of the comfort zone is a universal phenomenon, Some people support status quo, - some people may

have large stakes in the status quo and may get hurt, while some people have stake in the innovation may benefit. This reveals the political nature of
innovation. The political nature of innovation implies that those entrusted with innovation must have the skills of influencing others. Therefore convincing and persuasion are to be applied to break the opposition of the stakeholders, Principles of change management need to be applied with gusto.
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Commercialising Creative and Innovative Ideas


Innovation is ranked amongst the top three priority on every CEOs list. There is a global innovation race going on. Several Indian companies are responding well to the challenge- Mahindra and Mahindra, Tata, Ranbaxy are moving fast, For instance,in 2003, the net worth o Tata was 12BUSD. Today it is 63BUSD. The business leadership is very serious about building a culture of innovation
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India has a predominant population of the young, Young people are more open to trying new ideas, products and services that enhance their life-styles, They are also willing to spend, Today, there is a very strong imperative to innovate in order to survive, Indian businesses need to think globally and strive to be the best not just in the markets served but to be the best in the world, There is a need to connect with the customers/ consumers in a more organised way, Finally, Indian businesses must develop a process to collect, screen and nurture new ideas, and commercialise them in a way so as to achieve payback.

Prospects of Innovation in India

Currently more innovations are visible in the IT and Telcom Sector as they are sunrise industries . However others too need to innovate- I they dont, someone else will
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Stop selling what you have, Start selling what the customers need

Who are the users? What are their future needs? How to convert their needs into business models?

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Innovation Process @WIPRO

1 CW

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WHAT IS INNOVATION?

Innovation is defined here as:

"The profitable implementation of ideas." - Broken Bulbs (2005)

This definition includes three core elements of innovation: 1. ideas; 2. implementation; and 3. profit. If you dislike the term "profit," you can replace it with "economic or social value." This definition draws from these authoritative sources:
22 April 2012 R.S.Mathur 135

WHAT IS INNOVATION?

"Implementing new ideas that create value." Innovation Network, U.S.A.

"The intersection of invention and insight, leading to the creation of social and economic value."
- U.S. National Innovation Initiative (2004)

"The development of new ideas and their economic application as new products or processes."
- U.K Dept. Trade and Industry

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WHAT IS INNOVATION?

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CREATIVE IDEA

Can it be brought to Life? (Feasibility)

Implementable
ROI (Commercial Viability)

Non-Implementable

Can be Commercialised (Cash Curve)


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Cannot be Commercialised (Cash Trap)


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Innovation-Commercialisation Process

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Innovation-Commercialisation Process

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Cash Curve vs. Cash Trap


Cash Curve tracks and manages the innovation process that results into positive cash flow. Cash Trap innovations perpetually bleed cash. These are innovations that are funadamentally do not, have not, and will not make money. It survives either because : 1. It is viewed as core product or a product line in the operation of a company, or 2. Is considered a matter of prestige, or 3. The innovator is enamoured of the technology/business idea.

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Cash Curve
1.

2.
3. 4.

While the intention of innovation is to generate cash, it is necessary to have a disciplined and consistent way to decide how to manage it. Authors Andrew and Sirkin, argue that the most effective tool is what they term the cash curve. Cash curve is nothing but a graphical representation of the four factors that affect payback: Pre-launch investment, Time to market, Time to scale up and Support costs. The authors warn that any anomaly in any of these factors can seriously affect the payback strategy. Preparing and managing the cash curve may sound like running the numbers but this helps managers see the impact of their investments and thus curtail unbridled spending. It also motivates managers to improve the curve, they say.
22 April 2012 R.S.Mathur 142

Innovation Cash Cows


Microsoft is perhaps the most successful innovator in business history. Windows has probably generated the largest payback of any new product ever. It generates $1 billion a month in revenues and $9 billion annually in operating income. Other innovative blockbusters are the Model T Ford, the Boeing-747 and the cholesterol lowering drug Lipitor, one of the most successful medicines ever launched

22 April 2012 R.S.Mathur 143

Cash Trap Innovations

1. 2.

3.
4. 5.

6.

Although Cash Trap innovations may not result into immediate pay back, companies still pursue them to reap long term benefits like: Generate knowledge, Develop technology, Build capabilities, Build an ecosystem-Apple i-Pod- a lot of othe products that go with it, Brand building, Organisational vitality- Toyota into making racing cars,

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Concord the ultimate cash trap


1970s- race to design/build supersonic airliner, US companies and a consortium of British and French Governments in the race, The two European countries spent billions of dollars in development, It was a matter of prestige to succeed in this fancy idea for them and of course developing aerospace technology . Boeing calculated ROI and pulled out o the race as calculation indicated no payback. Total number of planes made and sold-13 Price? ONE POUND per aircraft was paid by the British Airways

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Concord the ultimate cash trap

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Timing is everything

Innovation alone is not sufficient, say the authors. Timely execution is extremely critical. Andrews and Sirkin cite the classic example of Iridium global telephony network, which gobbled up close to $5 billion in the pre-launch period itself and took 12 years to launch. By that time, competitors had created their mobile telephony systems. The cash flow to the Iridium project should have stopped when it was clear the project wouldnt materialise on time, say the authors.
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Revisiting the Concept of Innovation


When

thinking about innovation, it's worth keeping the following points in mind:

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Revisiting the Concept of Innovation


1. innovation is a multi-dimensional construct 2. an innovation can be described by type (process, product, service, business model, value, market, brand, channel, price etc.) and 3. degree (incremental, semi-radical, radical, transformational etc.)

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Types of Commercial Innovation Commercial


Innovation
Technical Innovations (contribute >40% of all Innovations

Dual Core Processor, Post-It Notes, i-Pod

Product Innovation

Process Innovation
Word Processor Microwave Oven,

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Strategy, value, functional management market, brand, channel, and/or price Deccan Airlines, 151 Call Centres

Business Innovation

Types of Commercial Innovation

Technology Push

Commercial innovation

Market Pull

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Types of Commercial Innovation


1.

2.

3.

4.

Based on Impact Magnitudes (Glueck) Incremental Innovation (Suggestion box innovations): Doing more of the same thing with somewhat better results. Additive Innovation (Kaizen Innovations): More fully exploiting already existing resources, such as product lines with good results. Complementary Innovation: offers something new and changes the structure o business (ATM Service in Banks) Breakthrough or Big-Bang Innovation: Creating new industries and new avenues of extreme wealth creation ( transistor radio, micro processor based computers, cellular phones)
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Types of Commercial Innovation

- An innovation can be described as a User Innovation (the developer benefits by using it) or - A Manufacturer Innovation (the developer benefits by selling it)

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Types of Innovative Companies


Integrators: Focus mainly on in-house innovative efforts. Seagate- the hard disc drive manufacturer-is an integrator as they require very close co-ordination between various areas of product design/process. 2. Orchestrators: co- ordinate their efforts through outside parties. Boeing funnels innovations developed by their associates and vendors. The ultimate orchestrators are of garment manufacturers who enjoy a very who farm out almost all activities and market the products using a very strong brand.
1.
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Management Innovation
1. 2. 3. 1. 2. 3. 4. 5. 6. 7.

Relatively novel in the processes of: Problem solving, Decision making and Implementation, that improves one or more functions such as: Better control of operations, Greater productivity, efficiency and effectiveness, Better co-ordination, Greater capacity to cope with environmental changes- internal and external, Higher staff motivation, Greater accountability, and Better mission accomplishment
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Management Innovation
1. 2. 3. 4. 5. 6. 7. 8.

Flow from a wide range of number of innovative initiatives- from : Innovative missions, Management styles, Growth strategies, Functional management, Organisational structures- to Flexi- time, TQM and Staff participation in decision making
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Hurdles in Management InnovationsOrganisational Resistance

1.

Management innovations are at times difficult to implement and institutionalise, due to lack of whole hearted co-operation of the stakeholders because people: Feel comfortable with status quo, - some people

may have large stakes in the status quo and may get hurt while some people have stake in the innovation may benefit. This reveals the political
nature of innovation. Fear becoming redundant, or Losing out to brash youngsters with bright ideas. Many organisations introduce such innovations with great fanfare, only to abandon them shortly. Example: MBO- survival rate: 50%. Cont
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2. 3.

Hurdles in Management InnovationsOrganisational Resistance cont


4.

5.

Many management innovations are difficult to assess in terms of profit or loss, and are hard to implement in a commercially oriented enterprises, Once institutionalised, many management innovations are hard to get rid of, even though they are now obsolete, - Periodically, conservative and bureaucratic organisations are saddled with a clutch of removal-resistant policies, practices, structures and systems that were useful innovations in the past but are albatrosses round the neck now.

-This calls for EXNOVATION !!!


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Hurdles in Management Innovation- Mindset Differences


1. 2. 3.

Large organisations tend to get departmentalised, divisionalised, and decentralised, to realise the benefits of-i) specialisation, ii)focus, iii) accountable autonomy, But these also create inter-departmental, inter-divisional and inter-level mindset differences, Such mind-set differences impede development and implementation of innovations, In a survey in a large firm strong mindset differences were revealed related to new product development : Focus of technical people: specification, product performance vis--vis customer expectations, Focus o manufacturing people: product durability and quality standards, and Focus of Sales persons: delivery periods and fast product modifications to meet customer needs. Although the concerns are complementary in nature, they show gaps in the focus, The new product launch can be made more successful with joint 22 April 2012 R.S.Mathur 162 planning, decision making and problem solving sessions

Technical Vs . Management Innovation


1.

2.

3.

Technical Innovation Costs/benefits more easily quantifiable. The debate on merits/ demerits more rational. Can be very expensive on money terms Innovators skills requirement: 80% technical, 20% political
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Management Innovation Assessment of benefits from of a new performance evaluation system, budgeting, HRD system, or structure in absolute terms is judgmental and elicits sharp differences. 2. Psychological costs are higher than money costs. 3. Innovators skill requirement:20% technical 80% political- the capacity to identify a coalition that will support the innovation, timing of implementation, and effective marketing of R.S.Mathur innovation. 163 the
1.

Why is Innovation becoming important?

1. New technology emerging creates new products and services 2. Fast changing environment product lifecycles getting shorter 3. Challenges of Globalisation no protection or place to hide 4. Business can be conducted anywhere 5. Companies can set up anytime and anywhere 6. Internet makes commerce quick and instance 7. Competitors can emerge overnight 8. Margins can become under pressure 9. Customers having more choice 10. Customer demands have increased 11. Materials and processes cab become outdated 12. Products and Services can become obsolete 13. Customers can defect to competitors and newer entrants 14. Threat of loss of Market share 15. Risk of decline in profitability and revenue

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Why companies must Innovate?

1. Improve processes 2. Reduce costs 3. Product improvement 4. Expand product range 5. Improve services 6. Introduce new services 7. Improve customer service 8. Be first to the market 9. Increase market share 10. Out think the competition 11. Secure Market/Industry Leadership 12. Maintain Market/Industry Leadership 13. Maintain / increase profitability 14. Maintain / increase revenues 15. Build a reputation for Innovation
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What are the benefits of Innovation?

1. Market Leadership 2. Shareholder value enhancement 3. Better Public Image 4. More customer loyalty 5. Better employee morale and motivation 6. Improved Quality 7. Creation of new markets 8. Extension of the Product/Service range 9. Improved production processes 10. Reduced environmental impact 11. Reduced energy consumption 12. Conformance to regulations
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Traditional approaches to Innovation

1. Suggestion Schemes 2. Brainstorming 3. Focus Groups 4. Market Pressure 5. Competitors 6. Laboratory Research 7. Literature Research

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Previous Innovation efforts

1. Based only on Product Innovation 2. Ideas come mostly from the R&D 3. Individuals working alone 4. More focus on Invention rather than commercialization 5. No defined process - unpredictable 6. High rate of failure

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Modern approaches to Innovation

1. Comprehensive Employee Intranet 2. Implementation of Knowledge Management 3. Constant Listening to Customers 4. Internet Research Primary and Secondary 5. Involvement of Suppliers 6. Ideas from Changemakers 7. Common Product Platforms 8. Skunk Works secret teams 9. Online Teams - Blogs 10. Incubation / Internal Venture Finance
R.S.Mathur 169

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Why Companies don't Innovate?


1. Top Management too busy running the existing business 2. Top Management fails to see the importance of Innovation as a new concept 3. Top Management unclear as to what Innovation really is 4. Uncertainty about concept 5. Companies lack information on how to begin Innovation efforts 6. Apprehension that Innovation is expensive or payback too long 7. Previous failure with new projects may lead companies to be skeptical 8. Too many rules and procedures to follow 9. Comfort of maintaining status quo 10. Traditional mind-set 11. Short term focus 12. Not concerned with the future

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Why Innovation efforts sometimes fail


1. 2. 3. 4. 5. 6. 7. 8.

Poor Leadership Poor Goal definition No Empowerment Lack of teamwork Not enough communication Lack of information sharing Top Management not supportive Customer inputs not taken in seriously.
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Lack of time, facilities and resources 10. Poor monitoring of results 11.Sometimes, the innovation could be ahead of its times- Du Ponts Kevlar- 10 times stronger than steel-not adopted by tyre manufacturers-now used extensively for bullet-proof jackets, glass working gloves
9.
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Barriers to Innovation

1. Resistance to change 2. Interdepartmental rivalry 3. Excessive rules and bureaucracy 4. Comfort in maintaining status quo 5. Fear of change 6. Fear of risk 7. Fear of trying 8. Fear of making mistakes 9. Negative mentality NIH Syndrome 10. Indifference and apathy 11. Us vs. Them attitudes
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Enablers of Innovation
1. Positive, dynamic and inspiring Leadership style 2. All round Training 3. Information sharing 4. Resource Provision 5. Processes for Innovation 6. Lack of Fear- encouraging prudent risk taking 7. Innovation as Sport 8. Team and Individual Incentives 9. Supportive culture 10. Intrapreneurship!!!
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Phases of Innovation Development

1.
2.

Two distinct phases: Conceptualisation and Design of innovation, and Execution and Institutionalisation

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Conceptualisation and Design Phase


1. 2. 3.

Requires much brainstorming or alternatives, For this is required: Administrative flexibility, High interactivity amongst all concerned, and Expert-based decision making (use of Decision Support Systems/Expert Systems)
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The Creative Idea Development Plan


Communication plan Escape Plan Milestones
Resource Allocation Idea Screening Authorisation People Stumbling Blocks Benefits &Risks Selected Idea 22 April 2012

Action Plan

Idea Generation

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QUANTITY ensures QUALITY

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Quantity is Quality

1.

2.

In the business sector, innovative ideas suffer from very high mortality, One research has shown: only 2% o product ideas become commercial success and one in seven products undergoing development succeeds in the marketplace, Thus a very large number of innovative ideas need to be generated to step- up the rate of innovations. To boost the success rate, especially of product innovations, in addition to careful planning, coordination, monitoring sharp customer focus is indispensable.

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Customer Focus in Product Innovation


1. 2. 3. 4. 5. 6.

Product innovations must be tailor made to clearly identified gaps in the customer needs, Collaboration with the customer is in the form of: Design finalisation, Joint prototype testing, Developing product/process specifications, Product development, Evaluation, Marketing etc. Another research in the British medical industry has shown that, with continuous interactions the success rate of innovation was found to be 65% as against only2% without such interactions
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Implementation Phase
Requires a different mode of management: Very careful estimation of costs and benefits. 2. Evaluation of alternatives. 3. Planning, control and monitoring. 4. Co-ordination among many groups of specialists. 5. Concerted efforts to motivate all stakeholders and water down resistance 6. Carefully establish links between: a) Basic research, b) Development, c) Manufacturing, and d) Marketing of the innovative product. If any of these links is weak, it could fail the innovation, All this, then, requires considerable professional 22 April 2012 R.S.Mathur 180 management
1.

Evolution of a Creative Idea

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Life Cycle of an Innovation


There have been any number of relevant innovations that have given companies valuable competitive advantage, eg. the computer or the microwave oven, The day the innovation is copied the company losed the competitive edge, So, the real life o an innovation is the time between its implementation and the time it gets copied by the competitor. Therefore companies have to innovate continuously to remain competitive- by the time others copy innovation A the company implements innovation B.

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Organisational Design for Innovation


In a hyper- competitive environment, it is not enough to come up with an occasional innovation For enterprise success in a globalised economy, the key lies in developing an organisation that churns out successful innovations continuously A continuous stream of successfully implemented innovations is a sure shot prescription for sustainable competitive advantage for the enterprise, For this to happen the organisation needs to be

designed for innovation.

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Organisational Design for Innovation

1.
2. 3. 4. 5.

The Enterprises: Growth and competitive strategies, Organisation structure, Management style, Management systems, and Human resource management etc Need to be aligned or this purpose This, however, is not easy.
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Organisational Design for Innovation

The design required for innovativeness is very different from the text-book prescriptions for professionally managed organisations.

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The Growth Strategy Needs to emphasise on Opportunism and Risk taking rather than on focus

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The Competitive Strategy needs to emphasise on: 1. Learning, 2. Networking, and A constant stream of innovative products and services, over such defensive strategies as pushing power brands or one of Porters classical pure strategies. Current market and customer research creates tunnel vision, causing companies to overlook the potential of new ideas.

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1.
2. 3. 4.

The structure needs to be highly: Divisionalised, Decentralised, Flexible, With numerous cross-functional teams that supplement regular functional departments.

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1. 2. 3. 4. 5. 6.

The Human Resource Management needs to: Identify change agents, ( inducted from inside as well as outside) and Potential innovators. Groom them, Provide enough operating space to innovate, Reward them when they deliver and Encourage them in honest failures.
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The Top Management needs to get fully involved in the Planning and Monitoring of the innovation process.

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Such organisational design is more likely to deliver superior performance.

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Enterprise Blocks to Innovativeness


1. 2. 3. 4. 5. 6. 7. 8.

Mostly internal, Like Barriers to :Communication, Action, Co-ordination, Poor Control, and follow up, Poor definition of objectives, Inadequate business analysis, A work culture that resists change and Inadequate creativity.
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Large Organisations Vs. Small


Typically organisational barriers are more formidable in large organisations as compared to small ones, An American study indicated that small firms produced 20 times as many innovations per R&D dollar than large firms. In another study of breakthrough innovations of 20th century every advance came from a relatively small firm, Thus, SMEs are better poised for churning out innovations regularly. Large enterprises need to adopt an organisational design that avoids the pitfalls of a behemoth and yet is nimble enough to enhance and foster innovation. GE and skunk works
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Managing for Innovation- the Organisation


Small teams have proved to be more useful for spearheading innovations, Research efficacy goes down with teams with more than seven members, Several successful, gigantic, high-tech enterprises like, GE, HP and 3M regularly implement innovations thru skunk works. Skunk-works are teams of highly committed, focused and autonomous teams of multi-role playing professionals dedicated to developing and implementing a specific innovation in the shortest possible time. Typically large corporations tend to adopt a bureaucratic complexion owing to their sheer size, but skunk works exist as islands of total autonomy

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Building an Organisational Culture of Innovation


An enterprise is the result of its ideas, People by nature are creative, As an organisation this creativity has to be tapped at the workplace, When the leadership shows serious intent about innovation, it percolates down and a culture of innovation gets built, Managers need to reward and encourage people who are experimenting, taking risk, being creative and trying to do thing better, Behaviour that gets rewarded gets repeated.

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Organisational Order vs Chaos


Without

order nothing can exist, Without chaos nothing can evolve, Without the right guiding structure nothing can grow.

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Finally, in order to succeed, all companies must internalize that in order to build innovation capability and produce innovation at regular intervals, companies must:
1. Have an Innovation strategy 2. Manage the Process of Innovation 3. Measure Innovation 4. Sustain Innovation

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