Creativity and innovation

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SYLLABUS
 Creativity and Innovation: Creativity,
Exercises on Creativity, Source of New Idea,
Ideas into Opportunities.
 Creative problem solving: Heuristics,
Brainstorming, Synectics, Value Analysis
 Innovation and Entrepreneurship: Profits
and Innovation, Globalization, Modules of
Innovation, Sources and Transfer of
Innovation, Why Innovate, What Innovation,
How to Innovate, Who Innovates


CREATIVITY
 Creativity is any act, idea, idea or product
that changes an existing domain or that
transforms an existing domain into new one.
 Creativity can be described as the discovery
of something that is novel but also useful or
relevant or economical , valuable.


TYPES OF CREATIVITY
 Primary creativity : deals with spontaneous
creations.
 Secondary creativity : is more deliberate
and skilled as in the application of ideas and
insight to inventions.
 Technical creativity : aims at finding out
improvement in a process so as to improve
efficiency.
 Inventive creativity : aims at making or
devising new combination of ingredients


 Innovative creativity : it involves for
reaching application of more basic ideas
such as management application of
principles of psychology to develop a much
more effective system for motivating staff.
 Emergentive creativity : it consist of new
revolutionary principles for an art or science
such as psycho- analytical concepts of
Freud.


CREATIVE PROCESS

Preparation

Incubation

Insight

Evaluation

Elaboration


CREATIVE PROCESS
 Preparation : successful creations are
preceded by investigation and information
gathering. It can be achieved by gathering
information from journals, attending meeting
seminars etc.
 Incubation : creative person allows their sub
consciousness mind to dwell over tremendous
amount of ideas and information accumulated
during the preparation phase.
 Insight : this is the moment when the person is
able to locate solution to their problems.
Generally in most of the cases ideas comes to
person in incremental way. The person
improves on solution slowly and steadily.


 Evaluation : this phase is regarded as the
most emotional trying part, when one feels
uncertain and insecure and thinks about
reaction of other people.
 Elaboration : this is the most difficult step of
creativity endeavour and requires great self
discipline, dedication and perseverance.


BARRIERS TO CREATIVITY
 Resistance to change : people just get used to
doing a particular work in customized manner and
they are just opposed to any new idea or change.
 Lack of initiative : organizational managers from
top to bottom are just opposed to giving initiative to
their subordinates fearing that it will undermine their
authority.
 Restriction on interaction : a free and open
environment provides members an opportunity to
interact with members of their own and other
groups. Such interaction facilitates exchange of
ideas and information required for creative work
where as in restricted environment creativity is
adversely effected.


 Fear of something going wrong : many new
ideas may go wrong or prove impractical.
Whenever creative work is to be undertaken the
possibility of success or failure is always there.
 Lack of recognition : failure to recognize or
reward creativity acts as de motivating factor.
Hard work put in by creative people must be
compensated with adequate financial and non
financial rewards.
 Resource constraints : creativity demands
sufficient availability of resources. Absence of
adequate resources may dampen the spirit of
creativity.


SOURCES OF NEW IDEAS
 Basic research : all firms are engaged in some
kind of basic research and development , which can
lead to development of new product ideas that have
already passed the initial screening stage.
 Production stage : workers actively engaged in the
production of products can suggest certain
modifications and improvements. These workers
can provide ideas aimed at improving quality , cost
and performance of potential product.
 Sales force : sales representative are directly in
touch with the customers and are thus better
equipped to take note of customer needs by this
they can provide better product development idea.


 Management : management team based on
their knowledge, skill and experience can
come out with new ideas for product
development.
 Magazines and trade journal : useful ideas
about new products can be obtained from
these magazines and trade journals.
 Competitors : in order to survive in present
day competitive environment, it is in the
interest of the entrepreneur to keep a eye on
activities of his rivals.


 Buyers : an entrepreneur while keeping
track of the requirements of the consumers
can definitely get useful ideas aimed at
developing a better product.
 Sellers : can provide idea for new product
development as they act as link between
producers and consumers and are better
equipped to provide required information.
 Overseas market : a producer interested in
taking care of foreign market can do it in
better manner by getting right ideas aimed at
improving product acceptability in these
markets.


IDEAS INTO OPPORTUNITIES

New Concept Product
product Idea Potential Test Commerc
developm developm
screening analysis marketing ialization
idea ent ent


IDEAS INTO OPPORTUNITIES
 New product idea : an attempt is made to
visualize the product. An in depth study may be
undertaken to anticipate features of the proposed
product. Ideas may be contributed by scientists,
professional designers, rivals, customers, sales
force etc.
 Idea screening : under this step detailed
investigation of various ideas is carried on. Those
ideas which offer less scope are dropped. Most
promising ideas are chosen for product
development.
 Concept development and testing : all ideas
chosen after preliminary screening are subjected to
in depth study. These ideas are developed into
mature product concepts.


 Business potential analysis : after choosing best
product idea, detailed investigation is carried out to
find its market potential, gestation period, capital
investment, and expected rate of return.
 Product development : after clearing business
potential analysis tests concrete steps are taken for
giving practical shapes to the proposed product.
 Test marketing : test marketing involves placing
fully developed new product for sale and observing
its actual performance under propose marketing
plan.
 Commercialization : is the actual introduction of
the product into market place with all the related
decisions and resources commitment.


CREATIVE PROBLEM SOLVING
TECHNIQUES
Brain
storming

heuristic Creative problem solving Synectics

Value
analysis


 Heuristic : is an adjective for experience
based techniques that help in problem
solving , learning and discovery. This method
is used to rapidly come to an solution that is
hoped to be close to best possible answer.
Heuristics stands for strategies using, readily
accessible, though loosely applicable,
information to control problem solving in
human beings and machines. Although the
solution quality may not be the best, often
they work well in generalized situation.


BASIC HEURISTICS DIRECTED TOWARDS
CREATIVITY
 Make it habit to purposely pause and notice
things.
 Focus on your creative energies on just few
topic areas that you genuinely create about and
work on these purposeful.
 Avoid being too narrow in the way you define
your problem or topic.
 Try to come up with original and useful ideas by
making novel associations among what you
already know.
 When you need creative ideas , remember
attention escape and movement.


 Pause and carefully examine ideas that
make you laugh the first time hear them.
 Recognize that your streams of thought and
patterns of judgement are inherently right or
wrong, they are just what you think now
based on primarily on patterns from your
past.
 Make a deliberate effort to harvest, develop
and implement at least a few of the ideas
you generate.


 Brain storming : in this group members or
individuals are encouraged to spell out
maximum number of possible solutions of a
specific or stated problem. Under brain
storming more emphasis is laid on the
number of possible solutions or ideas.


CHARACTERISTICS OF BRAIN STORMING
 This technique is not suitable where the problem
has a unique solution which can be found
through analysis or evaluation.
 brain storming can take place only when there is
specific topic.
 Brain storming results in generation of numerous
ideas out of which a few ideas are chosen for in
depth investigation.
 Brain storming provides ample opportunities to
participants to put forth various suggestions for
solving specific problems.
 Brain storming enables participation to freely
share different ideas.


PRINCIPLES OF BRAIN STORMING
 During the generation phase of ideas,
evaluation process is deferred.
 The second principle is based on ‘quantity
begets quality’ right environment must be
provided for generating maximum number of
ideas.
 Brain storming brings forth novel and
different ideas. Novels ideas in certain cases
may not appear to be practical ideas.
 It is better to appreciate ideas of others as
well as ones own previous ideas.


 Synectics : has been adopted by the Greek
word synecticos incorporating diverse
elements. synectics is applied in finding
innovative practices to a number of in
traceable technical problems. Major
analogies under this technique are :
 Direct analogy : it involves discussing
analogy of the problem situation from very
different field. It involves direct comparison
under discussion with some other similar
phenomenon.


 Personal analogy : under this problem solver is
expected to project himself into situation and report
back his experience of the particular situation like
what he feels, sees, hears, thinks etc.
 Fantasy analogy : under this concerned person is
asked to release his imagination from real life
constraints. Group members are used to fantasize
some perfect solutions even if it is contrary to known
scientific principles.
 Symbolic analogy : it requires group members to
poetic or paradoxical phrases for situation. The
leader is expected to take key word or even
undertake some decisions and ask the group
members to come up with short proactive phrases
that capture word under discussion.


 Value analysis is important approach to
improving the value of product or process by
understanding its constitutes components
and their associated costs. Value analysis is
a cost reduction and problem solving
technique that analyzes an existing product
or service in order to reduce or eliminate any
costs that do not contribute to value of
performance.


COMPONENTS OF VALUE CHAIN ANALYSIS
 Value : the ratio between function for customer
satisfaction and the cost of that function.
 Function : the effect produced by a product or
by one of its elements , in order to satisfy
customer needs.
 Value analysis : methodology to increase the
value of an object to object to be analyzed could
be an existing or new product or process and it
is usually accomplished by a team following
work plan.
 Need : something that is necessary or desired
by the customer.


VALUE ANALYSIS PROCESS
 Orientation / preparation : refers to collecting the basic
information required for the process and various stages
at which value addition is possible in process.
 Information : collection of data in detail in relation to
every step in value addition process.
 Analysis : of various options of value addition
 Innovation and creativity : refers to implementing new
or improved way of performing every step in the process.
 Evaluation : understanding effectiveness of change
implemented in process.
 Implementation and monitoring : refers to after
screening of improvised method it is to be implemented
and monitored for its working as per expectation.


PROFITS AND INNOVATION
 Entrepreneur is one who always searches for
changes and responds to it and exploits it as
an opportunity. Innovation is treated as an
instrument of entrepreneurship. An
entrepreneur innovates and creates
resources until someone finds a use for it and
endows economic value to it.


ROLE OF ENTREPRENEURS
 An entrepreneur must be an innovator as well as
leader.
 He must be capable of analyzing and exploiting the
opportunities.
 An entrepreneur should innovate for the present
period and not for the future.
 Innovation must be easy to understand otherwise it
may not give the desired result.
 An entrepreneur must posses the knowledge,
ingenuity, diligence, persistence, and commitment to
innovation.
 An entrepreneur must mobilize resources and
allocate them to make a commercial gains from the
opportunities indentified.


MODULES OF INNOVATION
 Innovation : it is the production of totally new
product service or process so far untried.
 Extension : it involves new use or application of
an already existing product, service or process.
 Duplication : it is the replication of an already
existing product, service or process. It is not
merely copying but adding something new with
creative touch to enhance or improve the
existing concept.
 Synthesis : it is the combination of existing
concepts and ideas and devising a way so that
together they may form a new application.


SOURCES AND TRANSFER OF INNOVATION
 Unexpected occurrences : sometimes
unexpected success or failure prove to be a major
innovative surprise for the enterprise. These
happenings are normally anticipated and
unplanned.
 Incongruities : these occurs whenever a gap or
difference exists between the expectations and
reality. The gap motivates the entrepreneur to
innovate with all the more vigour.
 Process needs : these needs are created
whenever situation and surrounding circumstances
generate demand for the innovation. Entrepreneurs
are prompted to innovate to satisfy the requirement
of process needs.


 Industry and market changes :changes in
consumer tastes, fashions, advancement in
technology result in change in structure and design
of product. These changes generate tremendous
opportunities for innovation and improvements.
 Demographic changes : like changes in
population, education, occupation, urbanisation etc,
create entrepreneurial opportunities.
 Perceptual change : it is reflected in the change in
peoples attitude, feelings, interpretation. Change in
perception does not change, the object or fact, but
changes the meaning or attitude towards the
particular concept.
 Knowledge based concept : these are basis for
the development and creation of new products and
market. These are time consuming as these need
testing and modifications.


HOW TO INNOVATE
 Organise for paid experimentation : examine,
revamp entrenched routines, organizational
boundaries and incentives to encourage rapid
experimentation.
 Fail early and often but avoid mistakes : embrace
failures that occur early in the development process
and advance knowledge significantly.
 Anticipate exploit early information :recognize
the full value of front loading, identifying problems
up stream, where they are easier and cheaper to
solve.
 Combine new and traditional technologies : do
not assume that new technology will necessarily
replace and established one. New and traditional
technologies are best used in concept.


WHO INNOVATES
 Educated individuals
 Higher in social standing
 Less dogmatic
 Better equipped to deal with abstraction
 More receptive to risk in general
 Higher in achievement motivation
 Higher in social participation
 More cosmopolitan
 More often engaged in interpersonal
communication
 Active information seeker


GLOBALIZATION
 Globalization is the system of interaction
among the countries of the world in order to
develop the global economy. Globalization
refers to the integration of economics and
societies all over the world. Globalization
involves technological, economic, political,
and cultural exchanges made possible
largely by advances in communication,
transportation, and infrastructure.


ADVANTAGES OF GLOBALIZATION
 Power of the WTO, IMF, and WB. According to
experts, another effect of globalization is the
strengthening power and influence of international
institutions such as the World Trade Organization
(WTO), International Monetary Fund (IMF), and
World Bank (WB).
 Greater Mobility of Human Resources across
Countries. Globalization allows countries to source
their manpower in countries with cheap labour.
 Greater Outsourcing of Business Processes to
Other Countries. China, India, and the Philippines
are tremendously benefiting from this trend of global
business outsourcing. Global companies in the US
and Europe take advantage of the cheaper labour
and highly-skilled workers that countries like India
and the Philippines can offer.


 7. Civil Society. An important trend in
globalization is the increasing influence and
broadening scope of the global civil society.
Civil society often refers to NGOs
(nongovernment organizations). There are
institutions in a country that are established
and run by citizens. The family, being an
institution, is part of the society. In
globalization, global civil society refers to
organizations that advocate certain issue or
cause


 Improvement of International
Trade. Because of globalization, the number
of countries where products can be sold or
purchased has increased dramatically.
 Technological Progress. Because of the
need to compete and be competitive globally,
governments have upgraded their level of
technology.


DISADVANTAGES OF GLOBALIZATION
 Developed countries can stifle development of
undeveloped and under-developed countries.
 Economic depression in one country can trigger
adverse reaction across the globe.
 Companies face much greater competition. This can
put smaller companies, at a disadvantage as they
do not have resources to compete at global scale
 Another major damage of globalization is that some
cultures are getting lost. The cultures of the
countries that have more economic power are more
dominant than others. Because, wealthy countries
produce many things that can affect cultures, for
example, clothes, movies and technologic products


THANK YOU


Creativity and innovation

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