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  1. 1. Creativity and Innovation management 17 B2
  2. 2. Introduction‡ Creativity: idea+ action‡ Innovation: creativity + productivity‡ Business innovation: creativity + commercialization.‡ Innovation is process of creating and exploiting ideas.‡ Creating something novel, may be with existing ones.‡ Should be beneficial.
  3. 3. Characteristics‡ Innovation is a tangible product, process or procedure.‡ It should be new to the society within which it is introduced.‡ It should be intentional rather incidental.‡ It must be challenging change.‡ It should be public in impact.‡ Destructive actions are not considered as innovations.
  4. 4. Component‡ There are three components of innovation:‡ 1. Physical: computer, semiconductors etc.‡ 2. Functional: computer software, process reengineering.‡ 3. knowledge component
  5. 5. Types:‡ 1. Product vs. process innovations.‡ 2. Radical vs. incremental innovations.
  6. 6. Models of innovation‡ 1. stage based model( Zaltman consist of 2 steps‡ A.)initiation‡ B.)implementation‡ Initiation: a.) knowledge awareness b.) formation of attitudes c.)decision‡ Implementation: a.)initial implementation b.) continued-sustained implementaion
  7. 7. Non linear model of innovation‡ Three stages‡ Initiation:‡ Most innovations have long gestation period.‡ Internal or external shocks trigger initiation.‡ Plans are made more to sell the idea.‡ Developmental:‡ Initial idea proliferates‡ Mistakes are encountered‡ Criteria of success or failure changes during the process‡ Members participate in innovations in more fluid way‡ Senior mgt and investors intervene‡ Relations with other org. develop‡ Innovation participants work with external organizations and agencies to build infrastructure for innovations.‡ Implementation:‡ New and old are linked‡ Either implemented or terminated due to lack of resources.
  8. 8. Originators of innovation‡ There are two conflicting views on the topic‡ 1. the social deterministic school argues that innovations are the result of a combination of external social factors and influences. The argument is- when the conditions were favorable and right, innovations would occure.‡ 2. the individualistic school argues that innovations are the result of unique individual talents and as such innovators are born.
  9. 9. Key drivers of innovation‡ Other models and key drivers are:‡ 1950/60s- technology push: emphasis on r&d. market is recipient of fruits of r&d.‡ 1970s- market pull: emphasis on marketing. Market I a source for directing r&d.‡ 1980s- coupling: emphasis on integrating r&d and technology.‡ 1980/1990s: combination of pull and push
  10. 10. Factors influencing innovations
  11. 11. Organizing for innovation: organizational structures‡ Project based organizations.‡ Matrix organizations.‡ Quasi structure.‡ New venture divisions.‡ Virtual organizations.‡ Boundary less organizations.‡ Learning organizations.
  12. 12. Factors influencing organizational design‡ Environmental factors:‡ When technology is salient than market development- research centers.‡ When market development is salient than technology- new venture divisions.‡ When both market and technology assume saliency- matrix.‡ For a technology based firms- quasi structure.
  13. 13. Strategy factors‡ Innovation mix.‡ Diversification: de-centralization.‡ Radical innovation: separate r&d.
  14. 14. Need for creative organizations‡ Change‡ Competition‡ Informed customers‡ Crises
  15. 15. Characteristics of creative organizations‡ People: autonomy & intrapreneurship‡ Attitude: value driven, hands on, leadership and management support.‡ Organization: simple form, lean staff, centralized or decentralized.‡ Market: stay close to the market.
  16. 16. Creativity crushers‡ Management is a science.‡ Pressure of today.‡ Apathy of employees.‡ Friendship.
  17. 17. 7s framework‡ Shared value.‡ Style.‡ Structure.‡ Strategy.‡ System.‡ Staff .‡ Skill.
  18. 18. Fostering innovation climate and culture‡ Create ambidextrous organization.‡ Establish strategic direction.‡ Align resources with strategy.‡ Hire right people.‡ Employ diverse workforce.‡ Leaders- be visible and involved.
  19. 19. Continued͙‡ Maintain open and receptive environment.‡ Retain scientific skepticism.‡ Promote risk taking attitudes.‡ Have tolerance to failures.‡ Allow free exchange of information.‡ Provide access to knowledge resources.‡ Set up learning mechanism.‡ Develop cross functional teams.‡ Provide support to innovation roles.‡ Establish rewards system.‡ Design congenial physical workplace.
  20. 20. Research and development management‡ R&D are the use of resources, to create new knowledge and to develop new and improved product and more economic methods of participation.‡ Research is the part devoted to discovering new knowledge and development is the part devoted to bringing new ideas to a stage where production for the market can start.
  21. 21. Objectives‡ To support current business.‡ To provide new business ventures.‡ To explore possible new technology basis.
  22. 22. Significance & prerequisites‡ Significance in two areas:‡ a.) Economy.‡ b.) Society.‡ PREREQUISITES:‡ Scientific and technological capability.‡ Market demand.‡ An agent that transforms the capability into goods and services, which satisfy the demand.
  23. 23. Technology development approaches‡ In house r&d:‡ Technology development activities are generally carried out through setting up of separate in house r&d units within the corporation, managed and headed by a well qualified and experienced chief, directly reporting to the top management. This unit will have close interaction with other departments within the company and may even involve an exchange of personnel.
  24. 24. CO-OPERATIVE R&D‡ A group of companies particularly from a sector promotes an r&d center as a society or a non profit making company. The expenses for r&d efforts are met from the contributions of the participating companies as a fixed percentage of their turnovers as well as grants from the governments. E.g. National council of building materials at new Delhi.
  25. 25. Contract research‡ A company may contract components of technology development to suitable r&d organizations, academic institutions or consultants or experts.
  26. 26. R&d collaborations‡ A company may collaborate with other in areas of common interest. Such inter firm collaborative r&d efforts are becoming common in developed countries mainly due to high cost and shorter technology life cycles.‡ A firm may collaborate with the public funded or privately funded r&d institutions on case to case basis where r&d results are shared mutually and so are expenses.‡ A company from India may collaborate with other abroad on mutually agreed terms. The government of India encourage such activities.
  27. 27. R &D‡ Research societies.‡ Research companies.