The document discusses creativity, innovation, and entrepreneurship. It defines key terms like creative, innovative, and inventive. It explores what makes a creative environment and creative person. Various techniques for creative and innovative thinking are outlined like brainstorming, synectics, and forced relationships. The principles, types, elements, and process of innovation are examined. Lessons from master innovators are provided around people, process, strategy, structure, and leadership. Myths about innovation are contrasted with realities. The document also looks at unexpected successes/failures of innovations, incongruities that led to innovations, and how industry/market structure, demographic changes, new knowledge, and entrepreneurial strategies can drive innovation.

1. Creativity and
Innovation

2. Creative: Involving creation or
invention; showing imagination and
originality (Oxford Dictionary)
Innovative: Introducing something
new (Oxford Dictionary)
Inventive: Making or Designing
something new (Oxford Dictionary)

3. Creativity
• Creativity is the engine of
invention and innovation
• The essence of creativity is
combining two or more ideas to
arrive at an entirely new one
• Creative ideas must add value

4. Creative Environment
(Triandis 1990)
• Permits people to work in areas of their
greatest interest.
• Encourages employees to have broad
contact with stimulating colleagues
• Allows taking moderate risks
• Tolerates some failures and non-
conformity
• Provides appropriate rewards and
recognition

5. Creative Person (Barron
1969)
• Conceptual Fluency (i.e. being able to
express ideas well and formulate the ideas
as one proceeds)
• The ability to produce a large number of
ideas quickly
• The ability to generate original and
unusual ideas
• The ability to separate source (who said
it) from content (what was said) in
evaluating information

6. Creative Person (contd.)
• The ability to stand out and be a little deviant
from others
• Interest in the problem one faces
• Perseverance in following problems
wherever they lead
• Suspension of judgment and no early
commitment
• The willingness to spend time analyzing and
exploring
• A genuine regard for intellectual and
cognitive matters

7. Gains of Creativity
• Produces greater quantities
• Improves efficiency
• Retain seeds
• Provides Opportunities for
combinations
• Increase potential for better
decisions
• Reduces personal conflicts

8. Creativity & Problem
Solving Techniques
• Brain Storming
• Reverse brainstorming
• Synectics
• Gordon Method
• Checklist Method
• Free Association
• Forced Relationships

9. Contd.
• Collective note book method
• Heuristics
• Scientific method
• Value Analysis
• Attribute Listing method
• Morphological Analysis
• Matrix Charting
• Big dream approach
• Parameter Analysis

10. Creative Thinking
• Brain Storming: defer judgment until
as many ideas as can be experimented
• Synectics: making the strange
familiar and the familiar strange
• Fundamental Design Method: alter
habitual ways of viewing problems

11. Creative Thinking (Contd.)
• Hypothetical Situations: design for
hypothetical situations-translate for
today
• Forced Relationships: contact
between different elements not related
earlier
• Attribute Listing: look at each aspect
and find ways to improve it

12. Creative Creed
Brain Activity
–Temporarily suspend judgment
–Write down ideas
Assumptions
–Redefine the situation
– Look to new procedures

13. Creative Creed (contd.)
Routine
– Look to more than one answer
– Find new ways
Skepticism
– Have faith
– Focus on situations
Why didn’t I think of that –
Lee Towe

14. Innovation
What is Innovation?
 Specific Instrument of Entrepreneurship
 Purposeful & Organized Search for Change
 Analysis of Opportunities such Change
might offer
 New ways of delivering value to the
customer

15. Purpose of Innovation
 Response to increased competitive
pressure
 Discontinuity
 Profitability
 Market Leadership

16. Principles of Innovation
 Innovation must be approached as
a discipline
 Innovation must be approached
comprehensively
 Innovation must include an
organized, systematic and
continual search for new
opportunities

17. Principles of Innovation
(contd.)
 Innovation must involve everyone in
the organization
 Innovation must be customer-
centered

18. “Innovation is – Doing
Things Better,
Doing Things Differently”

19. Types of Innovation
 Efficiency Innovation: Internally focused
 Evolutionary Innovation: Incremental
Achievements
Revolutionary Innovation: Externally
focused

20. Seeds of Innovation
 Creative Thinking
 Strategic Thinking
 Transformational Thinking

21. Elements of Innovation
 Creativity
 Strategy
 Implementation
 Profitability

22. Process of Innovation
 Selecting Innovation Goals
 Gathering Information
 Clarifying the Problem
 Seeking Ideas and Stimuli from around the
Organization
 Selecting Ideas Worth Exploring
 Developing an Innovation Road map
 Outlining the possible Plan
 Gaining Commitment
 Implementing the final Plan

23. “Great Ideas are not
innovative unless
they are successfully
Implemented”

24. Lessons from Master
Innovators
 People
- Open Culture
- Exciting & Nurturing Workplace
- Imaginative and liberated workforce
- Strong Conflict handling
mechanisms
- Deep trust in the people

25. Lessons from Master
Innovators
 Process
- Encourage risk taking
- Treat Innovation as an integrated process
- Brutually honest in self-assessment
process

26. Lessons from Master
Innovators
 Strategy
- Differentiation through
Innovation
- Innovation a strategic backbone

27. Lessons from Master
Innovators
 Structure
- Avoid integrating innovation in
formal structure
- Active feedback loops with
customers
- Non-stop conscious efforts to
innovate
- Incessant reconfiguration to promote
innovation

28. Lessons from Master
Innovators
 Leadership
- Promotes internal free market for
ideas
- Eliminate bureaucratic hurdles
- Provide protective shield to ideas

29. Innovation – Myths and
RealityMyths
1.Individual drives innovation
2.Innovation begins with brainstorming
3.Innovation requires creative people
4.An innovation process will give the
results you need

30. Innovation – Myths and
Reality
Reality
1. Innovation is a team sport
2. Innovation begins with
understanding the customer
3. Innovation requires effective
problem solvers rather than creative
people
4. The innovation process is only one
tool for successful innovation

31. Has no
Instantaneous
commercial
value
Invention
Components of an Innovation
Innovation
Market
Scientific
Discovery
May never be developed into
marketable products
Buying or Ignoring the Innovation
Adopting
Invention

33. The Unexpected Success
• R.H. Macy – Deptl. Store, New York 1950’
climbing Appliances Sales /
Bloomingdale’s responded
• IBM – Modern Accounting Machine 1930’
for Banks. Thomas Watson Sr. –Library
• Computers – Advanced Scientific Work -
1945 Univac spurned; IBM- exploited (Pay
roll)

34. The Unexpected Failure
• Ford Motor Co. – Edsel 1957 / Thunderbird
• British Exports of Padlocks to India – 1920’
• Novocaine – 1905 – Major Surgery /
Dentists

35. Incongruities
• Bill connor, Alcon Labs. 1960’. Cataract
• Containers (Ships) 1950’
• Mini Steel Mills 1970’
Process Need
• George Eastman , Kodak, 1890. Cellulose Film
• Media – 1890 – Ottmar Mergenthaler’s Linotype
Modern Advertising New York Times (Adolf Ochs)
and New York World (Joseph Pulitzer)
• Time Magazine – past effect of World War I

36. Industry & Market
Structure
• The Automobile Story – 1900/ Henry Ford
Model T. 1908 / General Motors W.C.
Durant 1903/ Giovanni Agnelli 1899 Fiat/
1960 - / 1979 Fuel efficiency / Japan
• PBX / Bell Labs / Rolm Corpn. Tel.&
Computer
• Books and Magazines

37. Demographic Changes
• Japan – Robots
• Women at work force
• Migration from Europe to America, Australia &
New Zealand – 19th Century
Changes in Perception
• Health Care Magazines
• Eating Habits
• Information Technology

38. New Knowledge
• Modern Banking
• Convergence of Technologies – Computers
– Binary arithmetic – known since ages
– Concept of calculating M/C. CharlesBabbage – 19th Century
– Punch Card – Herman Hollerith – 1890 for U.S. census
– Audion Tube – an electronic switch 1906, Lee De Forest
– Symbolic Logic – Bertrand Russel & Alfred North Whitchead
1910-1913
– Concept of Programming and Feedback World War I –
antiaircraft gun
– All knowledge known by 1918 but the first digital computer -
1946
• Radical Inventions

39. The Practices of
Entrepreneurship in a
New Venture
• The need for market focus
• Financial foresight
• Building a top management team
• Where can I contribute
• The need for outside advice

40. Entrepreneurial
Strategies
• Being Fustiest with the Mostest
– Aim : Business dominance
– Creating new & different product
– Clear goals
– Capacity to mobilize resources
E . g. Hofmann La Roche, IBM
• Hit them where they ain’t
– Creative imitation
– Exploit the success of others- IBM
– Entrepreneurial Judo
– Bell Labs
- Sony (Akio Morita) Transistors

41. • Ecological Niches
– Toll Gate Strategy – Alcon Labs
– Speciality Skills – Delco, Boch, Lucas
– Speciality Markets – Thomas Cook, American Express
• Changing Values & Characteristics itself is Innovation
– Creating Utility – Rowland Hill 1836, Postal Services
– Pricing – Gillete, Zerox
– Customer’s reality – cyrns Mc Cormick
– Developing Value to the customer-Interior Decorators

42. Refine / Modify
Gain Commitment
Innovation
Cycle
Possible Solutions/
Proposals
Idea
Development
Decision
Experimental
Action
Operational
Cycle
Speculative
Exploration
Constructive
Review
Routine
Procedures
Known
Solutions
Rules
Innovation and