Unit 1 to 5

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NOTES
Subject - Creativity and Innovations Subject Code- MANB417
FY- MBA Sem. - II
Unit 1. Basic Concepts of Thinking, Creativity and Innovations
Thinking - Thinking is a complex cognitive process that involves mental activities such as
perception, attention, memory , reasoning, problem-solving, and decision-making. The basic
concept of thinking encompasses various aspects that contribute to our ability to process
information, make sense of the world, and respond to challenges.
Definitions of Thinking-
1. “Thinking is a problem-solving process in which we use ideas or symbols in place of
overt activity”. by Gilmer
2. “Thinking is a mental activity in its cognitive aspect or mental activity with regard to
psychological aspects”. By Ross
3. Thinking is the process of human mind to produce thought, ideas or opinions about
something.
4. Thinking is the activity of human as a process of strengthening the relationship between
stimulus and response.
Nature of Thinking –
1. Thinking is the human activity.
2. Thinking is a mental process.
3. Thinking is a goal directed.
4. It is relation between stimulus and response
5. It gives knowledge
6. Thinking is used I reasoning imagining, problem solving, judging, decision making etc.
7. It is an untouchable process.
8. Thinking is an intangible asset
9. Thinking create the thoughts
10. Thinking is a multifaceted process

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Key component of thinking / Building Blocks of thinking-
Here are some key components / Building Blocks of thinking:
1. Image – Image refers a mental picture or idea of somebody/something.
2. Concept - A concept is a mental representation of a category and refers to a class of
objects, ideas or events that share common properties. It plays an important role in the
thinking process as concept formation helps in organizing knowledge so that it can be
accessed with less time and effort.
3. Symbol and signs – Concept convert into the symbol and signs in mind to express.
4. Language - Language express the thinking by written or oral.
5. Muscular activities - Thinking cannot complete without muscular activities.
6. Brain Functions – Thinking is a brain function. Brain process image to concept with
symbol and signs and convert into language.
Thinking is a multifaceted process that involves perceiving, attending, remembering,
reasoning, problem-solving, and making decisions. It is influenced by factors such as creativity,
metacognition, language, and emotion. The ability to think critically and flexibly is essential for
adapting to new situations and navigating the complexities of life.

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Types of Thinking- Here we discuss about the main twelve types of Thinking as per
follows-
1. Perceptual / Concrete Thinking - Perceptual or Concrete Thinking. This is the simplest
form of thinking the basis of this type is perception, i.e. interpretation of sensation according
to one’s experience. It is also called concrete thinking as it is carried out on the perception of
actual or concrete objects and events. When you think abstractly, you understand general
ideas and then make meaningful connections between them. Abstraction can help you find
deeper or even hidden meanings in the events you observe and your surroundings. You may
find relations between originally random concepts and use this information to create new
possibilities.
2. Conceptual / Application Thinking - Here one makes use of concepts, the generalized
objects and languages, it is regarded as being superior to perceptual thinking as it economizes
efforts in understanding and problem-solving. Application occurs when you transfer a
concept to a practical purpose. This type of thinking often happens when you encounter a
new situation—application thinkers can use their existing knowledge to figure out how to
approach it.
3. Reflective Thinking – This type of thinking aims in solving complex problems, thus it
requires reorganization of all the relevant experiences to a situation or removing obstacles
instead of relating with that experiences or ideas. This is an insightful cognitive approach in
reflective thinking as the mental activity here does not involve the mechanical trial and error
type of efforts. In this type, thinking processes take all the relevant facts arranged in a logical
order into an account in order to arrive at a solution of the problem.
4. Creative Thinking - Creative thinking, in all its shapes and forms is absolutely an internal
mental process and hence should be considered as an important component of one’s
cognitive behavior. Every one of us is capable of creative thinking and hence it is a universal
phenomenon. Creative thinking results in the production of something new or novel
including a new form of arrangement of old elements. Creative thinking in all its dimensions
involve divergent thinking instead of the routine and final types of convergent thinking. The
mind must have complete freedom to wander around to create a new idea. The field of
creative thinking and its out part is quite comprehensive and built wide. It covers all the
aspects of human accomplishments belonging to an individual’s life.
5. Critical Thinking - It is a type of thinking that helps a person in stepping aside from his own
personal beliefs, prejudices and opinions to sort out the faiths and discover the truth, even at

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the expense of his basic belief system. Here one resorts to set higher cognitive abilities and
skills for the proper interpretation, analysis, evaluation and inference, as well as explanation
of the gathered or communicated information resulting in a purposeful unbiased and self-
regulatory judgment an ideal thinker is habitually inquisitive, well-informed, open-minded,
flexible, fair-minded in evaluation, free from personal bias and prejudices, honest in seeking
relevant information, skilled in the proper use of the abilities like interpretation, analysis,
synthesis, evaluation and drawing conclusion and inferences, etc. The critical thinking is of a
higher order well-disciplined thought process which involves the use of cognitive skills like
conceptualization, interpretation, analysis, synthesis and evaluation for arriving at an
unbiased, valid and reliable judgment of the gathered or communicated information or data
as a guide to one’s belief and action. Critical thinking skills are observation, analysis,
inference, communication and problem solving.
6.Abstract Thinking-When you think abstractly, you understand general ideas and then
make meaningful connections between them. Abstraction can help you find deeper or even
hidden meanings in the events you observe and your surroundings. You may find relations
between originally random concepts and use this information to create new possibilities
7. Associative Thinking- Associative thinking is a cognitive process that allows the mind to
connect seemingly unrelated concepts and ideas. This type of thinking is often described as a
fast, subconscious process that links different memories, emotions, and physical
sensations. Associative thinking is a natural and fundamental aspect of human experience,
and it plays a crucial role in creativity and problem-solving.
8. Analytical Thinking- Analytical thinking is the term used to describe the thinking process
their relations. It is a trait most desired in job candidates since it helps them to identify and
define problems, extract key information from data and develop workable solutions for the
problems in order to test and verify the cause of the problem and then develop solutions to
resolve them.
9. Convergent Thinking- Convergent thinking is the opposite of divergent thinking. It
generally involves giving the "correct" answer to standard questions that do not require
significant creativity. Convergent thinking is essentially the process of choosing the obvious
choice. Most would simply call this “common sense.” Those working in product
management will likely use convergent thinking without realizing it. It’s a natural
feeling decision-making framework that removes the possibility of over thinking a decision.
For example, if a convergent thinker has an IT issue, they would simply call the IT
department to have an expert handle the problem.
This kind of linear decision-making is faster and unambiguous. It allows teams to waste less
time thinking about solutions and more time doing what really matters. It’s best to use

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convergent thinking in situations where logic is more important than creativity, such as
multiple-choice tests or for problems that you already know have no other feasible solution
10. Divergent Thinking- By Gilfard Divergent thinking calls for generating as much
information and as many ideas and solutions as possible. Think quantity over quality—this
kind of thinking is all about gathering information, coming up with ideas, and creativity. It’s
a free-flowing form of thinking where no idea is off limits and the goal is to generate
multiple paths forward. Divergent thinking can be applied to both problem-finding and
problem-solving.
11. Linear Thinking- Linear thinking is a systematic and analytical thought process that
follows a known step-by-step progression similar to a straight line. Linear thinkers view a
problem as a process with a set starting point that follows a sequence of connected series,
ultimately leading to a solution. It's also known as sequential thinking because it follows a
stepwise progression. The thoughts flow in a straightforward, logical way, and progress in a
stepwise fashion.
Linear thinkers are considered left-brained because the left side of the brain is associated
with methodical and analytical thinking. It's also connected to sequencing, logic,
mathematics, thinking in words, and facts.
As a linear thinker, you're likely to draw from previous experience and information to solve
daily problems. Your brain thrives on establishing rules, consistencies, formulas, or patterns
to inform your decision or make predictions.
12. Non-Linear Thinking- Nonlinear thinking is a way of thinking and problem-solving that
involves approaching a problem or situation from a different perspective or angle. Instead of
following a traditional, linear approach to solving problems, nonlinear thinking involves
using creative and unconventional methods to arrive at a solution.
One of the key characteristics of nonlinear thinking is the ability to see connections and
patterns that may not be immediately apparent. This type of thinking allows individuals to
make connections between seemingly unrelated concepts and ideas, and to see the bigger
picture in a situation.
Nonlinear thinking is often associated with creativity and innovation, as it allows individuals
to come up with new and original ideas. It is also a useful skill in many professional fields,
including science, engineering, and design.
In contrast to linear thinking, which involves following a step-by-step process to arrive at a
solution, nonlinear thinking is more flexible and adaptable. It allows individuals to think
outside the box and to consider a wider range of possibilities.
Nonlinear thinking is not necessarily better or worse than linear thinking, but it is a valuable
skill to have in one's toolkit. By combining both linear and nonlinear thinking, individuals
can approach problems from multiple angles and come up with more comprehensive and
effective solutions.

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Difference between Critical and creative Thinking-
Sr. No Critical Thinking Creative Thinking
1 Analytical Generative
2 Convergent Divergent
3 Left Brain Right Brain
4 Logical Intuitive
5 Sequential Imagination
6 Objective Subjective
7 Reality based Fantasy based
8 Vertical Lateral
9 Probability Possibility
10 Judgmental Non-judgmental
11 Verbal Visual
12 Hypothesis testing Hypothesis forming
13 Close ended Open ended

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Creativity
Definitions of Creativity- Creativity word derived from ‘creo’ means to make/ to create.
1. Creativity is the ability to come up with new and exciting idea.
2. Creativity is a process involving the generation of new ideas or concepts, or new
associations between existing ideas or concepts, and their substantiation ...
3. Creativity is the creation of anything that is new and useful.
Nature of Creativity- Creativity is a complex and multifaceted phenomenon that involves the
generation of novel and valuable ideas, solutions, or expressions. It is not limited to artistic
endeavors but extends to various aspects of human thinking and problem-solving. The nature of
creativity is characterized by several key features:
key features
Creativity is a function on a ability.
1. Creativity is not a product.
2. It is a result of divergent thinking.
3. Creativity is not a synonym of Intelligence.
4. It is a way of thinking.
5. It is a goal directed
6. Creativity is an unique
characteristics of Creativity
(a) Imaginative: Creative thinking starts with imagination as it brings about
something that did not exist or was not known before, so it has to be imagined first.
(b) Purposeful: Creative imagination must have a purpose, an objective to
serve the responsibilities of the business.
(c) Original: Originality means inventiveness or the ability to think
independently and creatively or the quality of being novel or unusual.
(d) Valuable: It means that the product or result must be held in great esteem
for admirable qualities especially of an intrinsic value.
(e) Ability: Ability is to imagine or invent something new. It is not only
qualification but also need skills to do a particular task in a productive manner.

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Myths of Creativity-Here are some common myths of creativity
1. Creativity is only for artistic people-
2. Creativity is only needed at the top.
3. It is a product.
4. Creativity can not be developed
5. Creativity is not my job
6. My technical skills and experience enough.
7. Creativity happens in moments of inspiration.
8. Creativity is linear process.
9. Creativity is limited to a specific age group.
10. Creativity is only about generating ideas.
Understanding and dispelling these myths can help individuals approach creativity with a more
open and realistic mindset, fostering a greater appreciation for the diverse ways in which it can
manifest.
Creativity Process- Here we learn five stages of Creativity process-
1 Preparation
2 Incubation 3 Insights
4 Evaluation 5 Elaboration
Creativity
Process

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1 Preparation-
a) Defining the problem- Clearly articulate the problem or goal you are trying to
address. The more specific and well defined the problem, the easier it is to find
creative solutions.
b) Gathering Information- This involves immersing yourself in the subject matter,
collecting relevant data, and gaining a deep understanding of the problem or
challenge.
2 Incubation (Processing)-
a) Digesting Information- Give your mind time to process the information gathered during
the preparation stage. This may involve stepping away from the problem consciously,
allowing your subconscious to work on it.
b) Unconscious Processing- Your mind continues to work on the problem in the
background, often leading to sudden insights or "aha" moments when you least expect them.
3 Insights –
This is the sudden realization or insight that brings clarity to the problem. It's the moment
when the solution or creative idea seems to emerge from your subconscious. Ideas may come in
a flash or gradually, and they often result from connecting seemingly unrelated pieces of
information.
4 Evaluations –
Once you have an idea, test it against the original problem or goal. Does it solve the
problem? Is it feasible? This stage involves refining and developing the initial idea. Share your
idea with others, gather feedback, and be open to constructive criticism. This external input can
help refine and strengthen your creative output.
5 Elaboration (Expansion Development)-
This is the phase where you put your creative solution into action. It could involve
creating a product, writing a story, developing a piece of art, or implementing a new process.
Implementation is often an iterative process. As you put your ideas into practice, you may
discover the need for adjustments and refinements.

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Types of Creativity
1) Deliberate and Cognitive creativity
People who possess deliberate and cognitive characteristics are purposeful. They have a great
amount of knowledge about a particular subject and combine their skills and capabilities to
prepare a course of action to achieve something. This type of creativity built when people work
for a very long time in a particular area. People who fall under this type of category of creativity
are usually proficient at research, problem- solving, investigation and experimentation. This type
of creativity is located in the brain’s prefrontal cortex, which is at the front part of the brain.
These types of creative people spend a great deal of time every single day testing to develop new
solutions.
Thomas Alva Edison is one prominent example of this type of creative people. He ran
experiment after experiment before inventing electricity, the light bulb, and telecommunication.
Hence, deliberate and cognitive creativity requires a great deal of time, dedication and
abundance of knowledge about a particular subject.
2) Deliberate And Emotional Creativity
People who are categorized as deliberate and emotional let their work influenced by their state of
emotions. These types of creative people are very emotional and sensitive in nature. These
individuals prefer relatively quiet and personal time to reflect and they usually have a habit of
diary writing. However, they are equally logical and rational in decision making. Their creativity
is always a balanced product of deliberate emotional thinking and logical actions. This type of
creativity is found in the amygdala and cingulate cortex parts of the human brain. Amygdala is
responsible for human emotions whereas cingulate cortex helps in learning and information
processing. This type of creativity happens to people at random moments. Those moments are
usually referred to as “a-ha!” moments when someone suddenly thinks of a solution to some
problem or think of some innovative idea.
For example, there are situations when you feel low and emotional which distracts you
from your work. In those kinds of situations, you should take 5 minutes and point out the things
which are making you sad and keep them aside and focus on the work in hand. It will help you to
get improvised results and you will get work done easily. One should seek “quiet time” for
deliberate and emotional creativity to happen to them.
3) Spontaneous and Cognitive creativity
There are times when you spend a long time to crack a problem but can’t think of any solution.
For example, when you want to make a schedule for a month to get a job done, but you can’t
seem to think of any possible way and when you are watching television and having your relaxed
time and suddenly you think of a solution and everything falls in place. The same case happened

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with the great scientist Isaac Newton. He got the idea about the law of gravity when an apple hit
his head while he was sitting under a tree and relaxing.
This is the “Eureka!” moments for Newton and an excellent example of a spontaneous and
cognitive person. This type of creativity happens when one has the knowledge to get a particular
job done, but he requires inspiration and a hint to walk towards the right path. This type of
creativity usually happens at the most inconvenient time, such as, when you are in bed with your
partner or having a shower. Spontaneous and cognitive creativity takes place when the conscious
mind stops working and go to relax and unconscious mind gets a chance to work.
Mostly, this type of creative person stops conscious thinking when they need to do “out of the
box” thinking. By indulging in different and unrelated activities, the unconscious mind gets a
chance to connect information in new ways which provide solutions to the problems. Therefore,
to let this type of creativity happen one should take a break from the problem and get away to let
conscious mind overtake.
4) Spontaneous And Emotional Creativity
Spontaneous and emotional creativity takes place in the “amygdala” part of the human brain.
Amygdala is responsible for all emotional type of thinking in the human brain. Spontaneous
ideas and creativity happen when conscious and Prefrontal brain is resting. This type of
creativity is mostly found in a great artist such as musicians, painters, and writers etc. This type
of creativity is also related to “epiphanies”.Epiphany is a sudden realization of something.
Spontaneous and emotional creativity is responsible for a scientific breakthrough, religious and
also philosophical discoveries. This allows the enlightened person to look at a problem or
situation with a different and deeper viewpoint.Those moments are defined as rare moments
when great discoveries take place. There is no need to have specific knowledge for “spontaneous
and emotional” creativity to happen but there should be a skill such as writing, musical or
artistic. This type of creativity can’t be obtained by working on.

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NECESSITY OF CREATIVITY IN ENTREPRENEURSHIP
Globalization, advanced technologyand excessive industrialization have created
immense business opportunities. Imports and exports have provided easy
access to products. So what does a business person do in a market flooded
with products? How can someone think of manufacturing and supplying a
product in markets where consumers already have their trusted preferences
and so many choices? How can we make a product stand out from the rest?
The answer to all these lies in creativity and innovation.
Creativity and entrepreneurship go hand in hand. However, both are important
to each other and one cannot guarantee success without the other.
1. Foster Innovation: Creativity is the heart and innovation, the oxygen
for the success of the organization. An idea which is unique is an
invention, but an idea which is unique as well as useful, is an innovation.
In simple terms, innovation refers to the commercialization of invention.
2. Leads to Higher Overall Success: Organisations need creative people.
They could bring great benefits if their skills are adequately shaped and
Harnessed .
3. Encourages People to Think: Thinking is a pre-requisite for creativity.
Thinking works best when coupled with sharp, highly focused and
disciplined way of thinking.
4. HelpsTranscend Boundaries: Most path-breaking discoveries are made
when two or more unrelated disciplines collide in a positive way.
5. Helps Increase Productivity: Creativity may result in creative products
and services which may increase productivity by creating demand in the
markets.
6. Help Exploit Employee Potential: Today’s employees are realising that
there is an ocean of information and creative ideas that are dormant and
untapped at all levels. By encouraging employees to be creative,
organisations are essentially utilising the untapped potentia
7. DevelopmentofCreativity: Creativity is an intrinsic trait with renewable
resources that can be tapped anytime and be learned. We are all born with
creative potential and thought process which can be developed and
reinforced. Inculcating new skills or train mind to think differently leads
to creative thinking.
8. Increased Revenue: Creativity gives a competitive edge to business to
increase turnover as a result of consumers’ satisfaction.
9. Greater Market Share: Business is selling experiences in addition to
products/services, which leads to increase market share or the share of
enterprise sales in total

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TECHNIQUES OF ENHANCING CREATIVITY
Creativity techniques provide an introduction to a range of tools and
techniques for both idea generation (creativity) and converting those ideas into
reality. To increase the creative power of an individual and group, some
important techniques are:
1. Brainstorming: This technique was developed
by Alex F. Osborn in 1957. Brainstorming means, a team of members generates a large
amount of alternative fruitful ideas on a specific problem without any criticism and then
evaluates each idea with pros and cons. This is done with the active cooperation of team
mates and the chairperson, and makes a comprehensive checklist to eliminate the ideas
that are clearly unworkablebut retain all that is worth further consideration.
Each idea is to be considered in the light of points like, does it meet the
objectives, does it solve the problems, does it introduce new problems, will
it fit in with current systems and can it accommodate growth. The purpose
behind group creative technique is to provide each other’s information as input
for further stimulation.
Brainstorming may be of the following ways:
(a) SCAMMPERR: This is developed by Micheal Michalko. It seeks to
undertake the following checklist to arrive at a new idea. The word is
an acronym.
‘S’ stands for Substitute, which means, can we substitute components, materials, people.
‘C’ stands for Combine, which means, can we mix, combine with other assemblies or services,
or integrate.
A’stands forAdapt, which means, can we alter, change function, use part of anothe element.
‘M’ stands for Magnify, which means, can we make it enormous, longer,higher, overstated, with a
dded features.
‘M’ stands for Modify, which means, can we increase or reduce in scale,change shape, modify
attributes (e.g. colour).
‘P’ stands for Put to another use, which means, can we this product byput to any other use.
‘E’ stands for Eliminate, which means, can we remove features and
simplify. (e.g. auto focus camera)
‘R’ stands for Rearrange, which means, can we rearrange the features and
see the results. (e.g. Tata Nano has the engine on its rear)
‘R’ stands for Reverse, which means, can we turn reverse the order that

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is being followed now.
So, whenever a new product or services are to be launched or the existing
one is to be improved, these questions on the checklist are asked and
suitable changes are implemented.
(b) Road Bridge –
Take the example of a congested road bridge which makesa good theme for a brainstorming
session There are many conceptual
similarities between traffic and process flows. Thinking about road trafficproblems should also
remind us to consider social, political, economic and environmental factors when creating
solutions. Many solutions fall into
one of the following classes:
Speed up the flow
Reduce the flow
Divert the flow
(c) Six Thinking Hats: This technique was developed by Edward de Bono.This technique
advocates thinking about a problem or opportunity not byone perspective but by six different persp
ectives. In this technique peopleare asked to wear different coloured hats and think and respond
based on the perspective that colour represents. This help avoiding disagreement amongst people
who come from different background towards a problem or opportunity.
The hats and its colour represents the following
1.White hat: Factual Hat-neutral-the person wearing white hat focuses on available
data. The idea is to analyse past trends which are extrapolated, is also called Factual Hat. It is
basted on facts, figures, information, data etc.
2.Red hat: Heart hat- fire, warmth this approach uses feelings, emotions, intuition,
hunches to address a problem.
3.Black hat: Judges’shat-cautionindicates discernment which shows legality, judgment,
morality. This approach looks at all the bad points identifying how this
will/may not work. This makes the plan toughens and resilient.
4. Yellowhat: Optiimist hat- sunshineindicates optimistic response, positive benefits. This
approach uses positive logic, optimistic viewpoint identifying all the benefits and gives a
sense of encouragement.

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5.Green hat: Creative hat-growth stands for creativity and a creative solution to a problem is
developed.
6. Blue hat:Conductor’shat-sky focuses on process control and used by chairperson of the meeting
who directs people to act accordingly,allows giving equal time to everyone and
taking notes wherever necessary to buildconsensus.
2. Mind-mapping:This technique wasdeveloped by Tony Buzan and is also
called spider diagram drawn to represents ideas and notes in continuous tree-diagrams.
Mind maps are drawn on paper or a white board. The starting point is the
central idea written at center of a large paper or whiteboard representing the
theme for which the mind-map is to be drawn.Then, subtopics are written as an extension
of the main topic representinga separate branch of the tree emerging from the
central topic. Further the same way keeps adding sub-topics and next levels finer sub-branches.
Ideas can be put at more than one place and then be linked to show relationships and also
using colour pencils further relationships van beshown.
3. Lateral thinking: This term was coined in 1967 by Edward de Bono who
suggests that solutions to problems can be found by unorthodox methods.When a problem
is presented, the audience is asked to think laterally as to how similar
problems are solved in different settings.Thus, lateral thinking means, leaving
behind traditional modes of thought and throwing away preconceptions.
It is a method of solving problems through an indirect and creative approach.

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Hindrance of Creativity
Hindrances are the rumble strip on the road of creativity. There are certain
circumstances where creativity, the outcome of the human mind, can be
hindered.
1. Environmental Hindrances:
a) Relianceonexperts: The first rule in working with experts is to stop
asking them to solve your problem as they use jargon which you may
not understand. Get them to point you in the right direction for the
resources you need to understand the system. The expert may be
misaligned and may be burdened by the curse of knowledge.
b) Lack of committed resources: Committed resources are acquired
in advance for multiple periods before the demand for resources is
known. This is also known as economic barriers which are capital,
labour and raw material.
c) Top-downdecisionmaking:Top-downapproach of decisionmaking
in which actions and policies are initiated at the highest level. Keep
it hierarchical with the assistanceof black boxes which makes it easier
to manipulate.
d) Too much cooperation: Too much cooperation leads to conflict,
group thinking, social loafing and communication breakdown.
Sometimes, too much cooperation can prevent the team’s best ideas
from being shared.
e) Too much competition: unhealthy competition or cut throat
competition are nightmares. They are capable of creating a win or
lose situation.
1.1. Measures to overcome environmental hindrances:
i. Change in Attitude: Positive attitude of entrepreneurs helps in
getting success.
ii. Economic environment: It includes economic stability and trade
cycles. Economic environment is an uncontrollable factor for
entrepreneurs but it can be predicted to some extent by observing
the stability of government policies like industrial policy, licensing
policy, fiscal policy and financing policy.
iii. Business environment: It includes working conditions, and
competitionwhichaffectentrepreneurshipdevelopmentinthecountry.
Working condition can be improved by making strict regulations.
Competition cannot be eliminated but can be controlled to be healthy.

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iv. Decision-making:Decision-makingshouldbequickand contribution
of all the level of authority is solicited specially those who are
responsibleandaccountablefordelegationofauthorityisindispensable.
2. Tactical Hindrances:
A tactic is a plan to take advantage of opportunity or to manage risks
as they happen. It deals with day-to-day realities to seek gain or avoid
losses.
a) Lack ofideas generation skills: Ideas may come and go frequently
but we are not to tap the right idea which has the strength to convert
into opportunities.
b) Undirected problem-solving techniques: Generally, solving any
problem has set process like, first understand the problem, then devise
a plan or translate the problem towards a solution, carry out the plan
or solve the issue and lastly, look back or check and interpret the
process you followed. This is used all over to aid people solve their
problems. The violation from the set path will complicate the
problem.
c) Poor execution of techniques: Execution refers to getting things
done. Poor execution can ruin all efforts. It may be because of lack
of leadership, too much or too little delegation, and unproductive
meetings.
d) Lack of follow up: Revisiting a decision, getting a feedback,
monitoring, measuring effectiveness are the ways for follow up. A
person who does not pay attention to these will prove lack of
experience.
2.1 Measures to overcome tactical hindrances:
i. Idea generation and idea validation: A passionate entrepreneur will
automatically develop skills in the task domain. This includes knowledge
of the problem area and the technical skills required in solving it. The
entrepreneur will also verify whether or not the idea is realistic and has
useful application.
ii. Assessing outcomes: Execution of ideas after evaluating pros and cons
will derive goals. Monitoring and getting feedback at every stage of the
operation is vital, without which, desired result is not possible.
3. Personal Hindrances: Few people take up entrepreneurship as a career.
Even among the societies which are considered entrepreneurially
progressive, only a select few dare to set up their own business due to

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several reasons. Some of these reasons are:
a) Lack of confidence: Self-confidence refers to the trust or faith in your
own abilities. Lack of confidence means you feel weak, insecure and
powerless due to lack of knowledge, skills and abilities.
b) Needforconformity:People have a strong need to conform to individual
as well as socially accepted standards, conventions, rules, or laws.
Straying from the same may risk social rejection.
c) Habit thinking: Habit thinking means a set way of thinking which tends
to occur subconsciously.
d) Dislike of uncertainty: The world of business is full of uncertainty
because of its unpredictable nature. If you dislike uncertainty, you will
have fear being creative.
3.1 Measures to overcome personal hindrances:
Many personal skills are required for entrepreneurial development. These
includetechnical knowledge, commonsense, managerial capacitylikeplanning,
organizing, directing and controlling and humane behaviour. They help create
a strong entrepreneurial

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Unit 2 Lateral Thinking-
Lateral thinking is a term coined by Edward de Bono,(1967) a Maltese psychologist,
physician, and author, to describe a problem-solving approach that involves thinking
creatively and outside the traditional thought patterns. Unlike vertical thinking, which
follows a logical sequence and adheres to established conventions, lateral thinking
encourages the exploration of unconventional ideas and perspectives.
Definitions-
1. Lateral thinking is solving problem through an indirect and creative approach
2. Lateral thinking is the ability to think creatively
3. Lateral thinking is for changing concepts and perceptions.
Key Principles of lateral thinking include-
1. Provocation- Challenging assumptions and established norms to stimulate new ideas.
This involves deliberately questioning the obvious and looking for alternatives.
2. Random Entry- Introducing unrelated or seemingly irrelevant elements into the thought
process to prompt new connections and insights. This helps break away from linear
thinking.
3. Alternative Scenarios- Considering multiple possibilities and scenarios, even those that
may seem unlikely or absurd at first. This broadens the range of potential solutions.
4. Focus on Concepts- Concentrating on the underlying concepts or principles of a
problem, rather than getting bogged down by specific details. This encourages abstract
thinking.
5. Challenge Accepted Wisdom- Questioning common beliefs and challenging the status
quo to encourage fresh perspectives and innovative solutions.
Lateral thinking is often employed in brainstorming sessions, problem-solving
workshops, and other creative endeavors. It can be a valuable tool for
Lateral thinking is often employed in brainstorming sessions, problem-solving workshops, and
other creative endeavors. It can be a valuable tool for overcoming mental blocks and generating
novel ideas by fostering a mindset that is open to exploring unconventional paths.
Lateral thinking is a problem-solving approach that involves thinking beyond conventional
methods and exploring creative, non-linear solutions.

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Difference between Vertical Thinking and Lateral Thinking
Sr. No Vertical Thinking Lateral Thinking
1 Vertical thinking means thinking
in same direction deeply
Thinking from different perspectives and
number of ways.
2 Linear thinking Non-linear thinking
3 Thinking in strate level between
higher to lower line to find the
solution of the problem
Thinking looking for alternative ways of
defining and interpreting problem
4 Depth of knowledge Breadth of knowledge
5 Selective Non-selective
6 Analytical Generative
7 Sequential Imaginative
8 Objective Subjective
9 Convergent Divergent
10 Logical Non-logical
11 Predictable Non-predictable
12 Many problem one solution One problem many solution
13 Direct Indirect
14 Six thinking hat’s technique made to describe
lateral thinking.
Process of Lateral thinking:
1 Recognition of Dominant Ideas- Understand that these conventional approaches might not
always lead to innovative solutions.
2 Generation of Provocative statements or Questions- Suspend judgment temporarily to allow
for the exploration of unconventional ideas without immediate criticism. Avoid premature
evaluation to foster a more open-minded environment.
3 Exploration of multiple perspectives-Explore various viewpoints, even if they seem
unrelated at first. Connect seemingly unrelated concepts to uncover novel situations.
4 Use of lateral thinking tools- Employ specific techniques or tools designed for lateral
thinking, such as brainstorming, random stimulation or analogies. Break down the problem into
smaller parts and address them individually for a fresh perspective.
5 Combination of Ideas- Combine diverse ideas and concepts to form new, innovative
solutions. Look for relationships between seemingly disparate elements.
6 Testing and Implementation- Evaluate the generated ideas for feasibility and effectiveness.
Implement the most promising solutions and adapt them as

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Benefits of Lateral Thinking:
1 Innovation and Creativity- Lateral thinking encourages the generation of unique ideas and
promotes creativity. It helps individuals break free from routine thought patterns, leading to
innovative solutions
2 Problem solving- Lateral thinking provides alternative approaches to problem-solving,
especially when traditional methods have proven ineffective. It allows for the exploration of
unconventional solutions that might not be immediately apparent
3 Adaptability- The ability to think laterally enhances adaptability by fostering a mindset that
can navigate and thrive in rapidly changing environments.
4 Improved Decision Making- By considering a wide range of perspectives, individuals can
make more informed and well-rounded decisions. Lateral thinking reduces the risk of
overlooking crucial factors in decision-making processes.
5 Enhanced Communication and Collaboration- Lateral thinking promotes open
communication and collaboration, as individuals are encouraged to share diverse ideas without
fear of immediate judgment. It fosters a more inclusive and dynamic work environment.
6 Continuous Learning- Engaging in lateral thinking promotes continuous learning by
challenging individuals to explore new concepts and ideas. It encourages a mindset of curiosity
and exploration.
In summary, lateral thinking is a powerful tool for promoting creativity, innovation, and
effective problem-solving by encouraging individuals to explore unconventional ideas and
perspectives.

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Lateral thinking methods
Random Entry Idea Generating Tool - Random Entry Idea Generating Tool: The
thinker chooses an object at random, or a noun from a dictionary, and associates it with
the area they are thinking about. For example, if they are thinking about how to improve
a website, an object chosen at random from the environment around them might be a fax
machine. A fax machine transmits images over the phone to paper. Fax machines are
becoming rare. People send faxes directly to phone numbers. Perhaps this could suggest a
new way to embed the website's content in emails and other sites.
• Provocation Idea Generating Tool Movement Techniques
Challenge Idea Generating Tool - Provocation Idea Generating Tool- Provocation is a lateral
thinking technique. It works by disrupting established patterns of thinking and giving people new
places to start in idea generation. A key way that we think is by recognizing patterns and reacting
to them. De Bono gives an example of considering river pollution and setting up the provocation,
"the factory is downstream of itself", causing a factory to be forced to take its water input from a
point downstream of its output, an idea which later became law in some countries.
• Concept Fan Idea Generating Tool
• Disproving
Edward de Bono talks of four different types of lateral thinking tools.
1. Idea-Generating Tools — These are lateral thinking tools that “jump” your thinking out of
its well-worn patterns and ruts.
Movement Techniques

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Challenge Idea Generating Tool
Concept Fan Idea Generating Tool
2. Focus Tools — The aim of these lateral thinking tools is to change your mental focus, thus
opening your mind to new possibilities, when searching for new & different ideas.
3. Harvest Tools — Work with existing ideas to maximize the value of those ideas.
4. Treatment Tools — Often, new ideas that have been found by means of interesting thinking,
are still a bit wild. By wild, I mean that they are untested, possibly impractical (in the
originally conceived format), and/or generally undeveloped. Treatment tools apply lateral
thinking to ensure that innovative ideas can become real-world solutions.
5. Six Thinking Hats
Six Thinking Hats' is an important and powerful technique. It is used to look at decisions
from a number of important perspectives. This forces you to move outside your habitual
thinking style, and helps you to get a more rounded view of a situation. Each 'Thinking
Hat' is a different style of thinking. These are explained below:
• White Hat: With this thinking hat you focus on the data available. Look at the
information you have, and see what you can learn from it.
• Red Hat: 'Wearing' the red hat, you look at problems using intuition, gut reaction, and
emotion. Also try to think how other people will react emotionally..
• Black Hat: Using black hat thinking, look at all the bad points of the decision. Look at it
cautiously and defensively. Try to see why it might not work. This is important because
it highlights the weak points in a plan. Black Hat thinking helps to make your plans
'tougher' and more resilient.
• Yellow Hat: The yellow hat helps you to think positively. Yellow Hat thinking helps
you to keep going when everything looks gloomy and difficult.
• Green Hat: The Green Hat stands for creativity. This is where you can develop creative
solutions to a problem. It is a freewheeling way of thinking, in which there is little
criticism of ideas.

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• Blue Hat: The Blue Hat stands for process control. This is the hat worn by people
chairing meetings. When running into difficulties because ideas are running dry, they
may direct activity into Green Hat thinking.
Types of thinking tools
1 Problem Solving: The objective is to get the situation to where it should be
2 Creative Problem Solving: Using creativity, one must solve a problem in an indirect
and unconventional manner.
3 Creative Problem Identification: Many of the greatest non-technological
innovations are identified while realizing an improved process or design in everyday
objects and tasks either by accidental chance or by studying and documenting real
world experience.
Lateral thinking and problem solving and lateral thinking puzzle/yes/no puzzle
• Situation puzzles are often referred to as lateral thinking puzzles or "yes/no" puzzles.
• Situation puzzles are usually played in a group, with one person hosting the puzzle and
the others asking questions which can only be answered with a "yes" or "no" answer.
• Depending upon the settings and level of difficulty, other answers, hints or simple
explanations of why the answer is yes or no, may be considered acceptable.
• The puzzle is solved when one of the players is able to recite the narrative the host had in
mind, in particular explaining whatever aspect of the initial scenario was puzzling.
• 1. You are driving down the road in your car on a wild, stormy night, when you pass by
a bus stop and you see three people waiting for the bus
• An old lady who looks as if she is about to die.
• An old friend who once saved your life.
• The perfect partner you have been dreaming about. Knowing that there can only be one
passenger in your car, whom would you choose?
• Answer -The old lady of course! After helping the old lady into the car, you can give
your keys to your friend, and wait with your perfect partner for the bus
• 2. A man lives in the penthouse of an apartment building. Every morning he takes the
elevator down to the lobby and leaves the building. Upon his return, however, he can
only travel halfway up in the lift and has to walk the rest of the way - unless it's raining.
What is the explanation for this?

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• Answer-The man is a dwarf. He can't reach the upper elevator buttons, but he can ask
people to push them for him. He can also push them with his umbrella.
• 3. Acting on an anonymous phone call, the police raid a house to arrest a suspected
murderer. They don't know what he looks like but they know his name is John and that
he is inside the house. The police bust in on a carpenter, a lorry driver, a mechanic and a
fireman all playing poker. Without hesitation or communication of any kind, they
immediately arrest the fireman. How do they know they've got their man?
• Answer-The fireman is the only man in the room. The rest of the poker players are
women.

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Unit 3 Mind Mapping
Mind mapping / Spider diagram - Invented by – Tony Buzan
A mind map involves writing down a central theme and thinking of new and
related ideas which radiate out from the centre.
A mind map is a diagram used to visually organize information into a hierarchy,
showing relationships among pieces of the whole.
Mind mapping is a process of using a visual map which contains a main idea that
branches out into related and important information pertaining to that main topic
This allows a team or individual to generate an enormous number of ideas by branching each
idea into many more detailed ideas. The ideas in each branch can either be loosely or tightly
connected with the ‘limb’ from which it grew.
To create a mind map like that shown in Figure 2.11, follow these steps:
1. Write the topic (or draw a picture that represents it) in the centre or extreme side of a
sizeable piece of paper.
2. Brainstorm ideas around the topic. For each major idea, draw a line directly from the main
topic.
3. For each new idea, decide whether it is a new theme or a variation on an existing idea.
Record ideas on the lines as they are generated.
4. Continue thinking, drawing and recording until the ideas (of the people involved) are
exhausted.
Components of mind map
1. Main idea / topic
2. Sub idea / topic
3. Concept / definition / terms
Guidelines suggested for Creating Mind map…
Creating a mind map can be a powerful tool for organizing information, brainstorming, and
visualizing concepts. While there are no strict rules, here are some general guidelines to help you
create an effective mind map.
1. Start in the Center: Place the main idea or topic in the center of the page. This will
serve as the focal point of your mind map.

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2. Use a Radiant structure: Branch out from the central idea with main branches
representing key concepts or categories related to the central theme. These branches
should radiate outward.
3. Keep It Simple: Use keywords or short phrases rather than long sentences. The goal is to
capture the main ideas succinctly.
4. Use Colors and Images: Employ different colors and images to make the mind map
visually appealing and to enhance memory retention. Colors can be used to distinguish
different branches or highlight important information.
5. Connect Ideas: Use lines or arrows to connect related ideas. This helps to show
relationships between different concepts and reinforces the structure of your mind.
6. Vary Branch Lengths: Vary the length of the branches to represent the importance or
hierarchy of the ideas. Important or main ideas can have longer branches, while subtopics
have shorter ones.
7. Maintain Consistency: Be consistent with the style and format of your mind map. This
makes it easier to understand and follow.
8. Emphasize Key Points: Use bold or larger text to emphasize key points or important
information.
9. Experiment: There's no one-size-fits-all approach to mind mapping. Experiment with
different structures, styles, and techniques to find what works best for you.
10. Include White Space: Allow for white space around your mind map to prevent it from
becoming cluttered. This enhances readability and makes it easier to focus on specific
sections
Remember, the primary goal of a mind map is to represent information in a visual and
organized manner that reflects the way your mind naturally thinks and connects ideas. Feel free
to adapt these guidelines based on your preferences and the specific needs of the task at hand.
Key characteristics of mind maps include:
A mind map is a graphical representation of ideas, concepts, or information organized
around a central theme or topic. It is a visual tool that helps individuals brainstorm, organize
thoughts, and explore relationships between different elements. Mind maps are often used to
facilitate creative thinking, problem-solving, planning, and note-taking.
1. Central Theme: Mind maps typically start with a central idea or theme placed at the
center of the page. This central concept represents the main topic or focus of the mind
map.
2. Branches: Radiating out from the central theme, there are branches that represent key
subtopics or categories related to the central idea. These branches create a hierarchical
structure, allowing for the organization of information in a structured manner.

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3. Hierarchy: Mind maps use a hierarchical structure to show the relationship between the
central theme and its various subtopics. The main branches may further split into
secondary branches, creating a clear and organized structure.
4. Keywords and Images: Mind maps often use keywords or short phrases to convey
information concisely. Additionally, visual elements like images, icons, and colors may
be incorporated to enhance understanding and memory retention.
5. Radiant Structure: Information radiates from the central theme in a radial or tree-like
structure. This design allows for a more organic and interconnected representation of
ideas, making it easier to see relationships between different concepts.
6. Nonlinear: Mind maps embrace a non-linear approach to information organization. This
reflects the non-linear way the human brain often processes and connects ideas, fostering
creativity and associative thinking.
7. Flexibility: Mind maps are highly flexible and can be easily modified or expanded. As
new ideas emerge or connections become apparent, individuals can add, rearrange, or
modify elements of the mind map to reflect evolving thoughts.
8. Free-Flowing Creativity: Mind maps encourage free-flowing creativity by allowing
individuals to explore ideas without rigid constraints. This makes them particularly useful
for brainstorming sessions, problem-solving, and capturing spontaneous thoughts.
9. Clarity and Conciseness: Mind maps aim to present information in a clear and concise
manner. The use of keywords, visual elements, and a structured layout helps in quickly
grasping the main ideas and their relationships.
10. Tool for Memory Aid: The visual and spatial nature of mind maps makes them
effective tools for aiding memory. The combination of text and images helps individuals
recall information more easily.
Overall, mind maps are versatile tools that can be employed in various fields, including
education, business, project management, and personal development, to enhance creativity,
organization, and communication of ideas.

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Advantages & disadvantages of hand drawn mind map
Hand-drawn mind maps, like any tool, have both advantages and
disadvantages. Here are some of them:
Advantages:
1. Creativity and Personalization: Hand-drawn mind maps allow for a
high degree of creativity and personalization. Users can use various
colors, fonts, and drawings to make the mind map uniquely theirs.
2. Flexibility: With hand-drawn mind maps, there are no restrictions on
the size of the paper or the layout. Users can adjust the map as they go,
adding or removing elements as needed.
3. Tactile Experience: Physically creating a mind map provides a tactile
experience that some people find beneficial. The act of drawing and
connecting ideas on paper can enhance memory and understanding.
4. No Technology Dependency: Hand-drawn mind maps don't require
any technological tools or software. This makes them accessible to
individuals who may not have access to digital devices or prefer a more
traditional approach.

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5. Quick Start: You can start creating a hand-drawn mind map with just a
pen and paper, without the need for any setup or learning curve
associated with digital tools.
Disadvantages
1. Lack of Professionalism: Hand-drawn mind maps may lack the
polished and professional appearance that digital mind maps can
achieve. This could be a concern in certain professional or academic
settings.
2. Limited Editing: Corrections and changes on a hand-drawn mind map
can be messy and may require starting over or using correction methods
like white-out. Digital mind maps often allow for cleaner and easier
editing.
3. Limited Share ability: Hand-drawn mind maps are more challenging to
share digitally or collaborate on in real-time compared to their digital
counterparts. Sharing typically involves scanning or taking a photo of
the physical map.
4. Less Organized Appearance: Hand-drawn mind maps might not have
the same level of precision and organization as digital ones. This can
affect readability, especially if the creator has messy handwriting or lacks
drawing skills.
5. Time-Consuming: Creating detailed and intricate hand-drawn mind
maps can be time-consuming. This might be a disadvantage when
compared to the speed and efficiency of creating digital mind maps.
Ultimately, the choice between hand-drawn and digital mind maps
depends on personal preference, the nature of the task, and the context in
which the mind map will be used. Some individuals may prefer the tactile
experience and creative freedom of hand-drawn mind maps, while others
may value the efficiency and organization offered by digital tools.

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Unit 4 Innovation-
The word “innovation” is derived from the latin verb innvare, which means to renew. In
essence, the word has retained its meaning up until today. Innovation means to improve or to
replace something, for example, a process, a product, or a service. In the context of companies,
however, the term needs a definition. In the complex context of business, a definition is needed.
1. Innovation is a process by which a domain, a product, or a service is renewed and
brought up to date by applying new processes, introducing new techniques, or
establishing successful ideas to create new value.
2. Innovation is an act of making changes to existing product or process by introducing new
ways or ideas.
Nature of Innovation-
1. Innovation converts ideas and knowledge into benefit,
2. Anyone can not purchase an innovation.
3. Innovation is a process of implementing new ideas on the existing product/process.
4. It may be product innovation or process innovation.
5. Transformation of ideas into commercial value.
6. It is tangible product or process
7. Intentional rather than accidental.
8. Aimed for the benefit of an organization.
9. May be technical or non- technical
10. Innovation may be internal or external of an organization.
Innovation Process-
The innovation process refers to the series of steps and activities that organizations or
individuals undertake to introduce new ideas, products, services, or processes to meet specific
needs or solve problems. Innovation is crucial for staying competitive, adapting to changes, and
driving growth.

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1. Creative Ideas- Creative idea is a basic reason of innovation. Innovation is the product
of creative idea.
2. New ideas/ inspiration:- Inspiration of the innovation is the mandatory stage in this
process. Problem solving, curiosity, customer need, technology and market trend etc. are
the inspiration behind innovation.
3. Innovation Challenge:- In the third stage, inspiration transform into the innovation as
challenge and process will work as challenge.
4. Collaborative ideas;- As per the innovation requirement s can makes the collaborative
ideas to fulfill the innovation.
5. Scientific Evaluation;- Scientific evaluation of the innovation makes it quality
innovation with the various products.
6. Testing and developing;- Testing and developing is the combine process . Test the
innovation and develop as per requirement.
7. Implementation:- Implementation of the innovation is mandatory to achieve its benefits
as practical.
8. Review :- In this process Innovation must review before it’s uses.
Role of creativity in innovation / Model of Creativity-
Output
(Innovation)
Transformation
(Creativity
Process)
Input
(Ideas)
Creative Ideas
Innovation
Challenge
Testing and
Developing
New ideas/
Inspiration
Collaborative Ideas
Implementation Scientific Evaluation
Review

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1. Input-Creative ideas are the basic inspiration of the innovation. These ideas are the input in
the creative process.
2. Transformation- In this stage Ideas transform into the innovation as imagination or product.
3. Output- After the transformation innovation is the ready in position to use it
Types of Innovation-
New
Market
Existing
Existing New
Technology
1. Architectural Innovation- It is also called as sustainable innovation. It is a significant
improvement on a product that aims to sustain the position in an existing market.
Architectural innovation occurs when new products or services use existing technology to
create new markets and/or new consumers that did not purchase that item before.
Architectural Innovation Radical Innovation
Incremental Innovation Disruptive Innovation

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2. Radical Innovation- Technical break through that transforms industries and creates new
market. Radical innovation is defined as a significant and transformative breakthrough in
technology, business models, processes, or products that creates a substantial shift in
industry or society.
3. Incremental Innovation- It is a continuous improvement of existing product to services.
Incremental innovation is a series of small improvements or upgrades made to a
company's existing products, services, processes or methods. The changes implemented
through incremental innovation are usually focused on improving an existing product's
development efficiency, productivity and competitive differentiation.
4. Disruptive Innovation- Technology or new business model that disrupts the existing
market. Disruptive innovation is an innovation that simplifies and makes more affordable
products and services to undesirable or ignored markets. Established companies typically
strive to improve their products and services for their profitable customer base, largely
ignoring the needs and desires of untapped segments.
Difference between Creativity, Innovation and Invention

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Sr.
no.
Based on Creativity Invention Innovation
1 Meaning Creativity is a act of
crating new ideas,
imagination and
possibilities
Invention means which
is something that
already existed but had
not been found
Innovation is an act of
making changes to existing
product or the process by
introducing new ways or
ideas
2 Process Imaginative Imaginative, Productive Productive
3 Related to Thinking something
new
Finding something new Introducing something new
4 Focus on potential for novelty,
uniqueness, and
expression of one's
imagination.
real-world problems,
meet needs, or improve
existing processes and
products.
real-world problems,
meet needs, or improve
existing processes and
products.
5 Examples a. Composing a
piece of music
b. Painting a
portrait
a. Telephone
b. Light bulb
a. Mobiles
b. LED bulb
Unit 5 Case Studies

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Case Study-
“A case study is a research approach that is used to generate an in depth, multi-faceed
understanding of a complex issue in its real-life context.
* Case study means detailed story of something a company didi or happened.
* It may discuss a conflict
*An explanation of what happened next
*A resolution that explains how the company solved or improved on something.
What is the meaning of case study, explain its process to solve case study with example.
How to solve case study:-
1. Read the questions
2. Read and examine the case thoroughly.
3. Take notes, highlight relevant facts, underline key problems (summaries)
4. Do SWOT analysis
5. Think practically
6. Best alternative solution using theoretical knowledge.
7. Include phrase in answer ‘as per my point of view/as per my opinion.’
8. All answers are correct when we use theory knowledge as well as relevant as case.
Example of Case Study
Dan Germain, Head of Creativity at Innocent Drinks argues that creativity must be maintained in
the fast growing company.
Innocent Drinks started in 1999. Dan Germain commented ‘Try as we might to keep things as
they are, we’ll just have to face facts 3 our company is hopefully going to get a bit bigger. And
we all know that once you get a bit bigger, you get a bit lazy; you stop caring; you cease to love
the business that you took such care to nurture. And things get rubbish. That is what always
happens’.
How could the company keep hold of its original spirit and keep on doing all of the creative
things that made it special. There was unease that as the company becomes bigger, the less

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creative and fun it would get. According to Germain, this idea is un-revolutionary but it is
surprising how many companies always just come up with product re-launches and new brand
philosophies in order to try to keep their spirit intact.
Innocent is highly selective in hiring people. It uses interviews to ascertain skills and aptitude,
but also screens for people who are ‘innocent’ 3 individuals who will fit in and enjoy themselves
and take the initiative.
The people manifesto
Clarity is making sure that everyone knows what Innocent wants to do as a company. It means
making sure that each individual knows his or her part. People love knowing how they can make
a difference, so you should tell them, and make sure that they know how their work will make
Innocent a mighty place.
Responsibility is about letting people get on with their job. Let them be the experts in their area,
let them make mistakes and let them change things that could be better.
Fraternity means celebrating all of the good stuff: rewarding people for teamwork, and fostering
an open, informal culture where people can say what they want without fear of recrimination
When Coca-Cola made a minority investment in 2009, the founders commented: ‘The three of us
who set up the business will continue to run and manage Innocent. We will be the same people
making the same products in the same way. Everything that Innocent stands for, remains in place
3 to only produce natural, healthy stuff; to push hard for better quality, more socially and
environmentally conscious ingredients; to find more efficient and environmentally friendly ways
of producing and packaging our drinks; to support charities in the countries where our fruit
comes from; to have a point of view on the world, and to not take ourselves too seriously in the
process. In fact, this deal will simply allow us to do more of these things.
‘As we said, Coca-Cola is a minority investor. They have a small stake of between 10320 per
cent, which they paid £30M for. We chose Coca-Cola as our minority investor because as well as
providing the funds, they can help us get our products out to more people in more places. Plus,
they have been in business for over 120 years, so there will be things we can learn from them.
And in some small ways we may be able to influence their thinking too.

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‘Innocent is ten years old this year. We sold 24 smoothies on our first day, back on 28th April
1999. This week, we will sell approximately 2 million.’