Management Technology Innovation Change

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Few Definitions
• Science is the discovery and explanation of natural phenomena for the sake of knowledge & understanding
• Technology is the knowledge and technique of the transformation of natural phenomena for human purpose
• Engineering is the understanding and application of the scientific principles underlying technology and its transformation
for human purpose; bridges the gap between S & T
• Basic Research is exploring the domain of science for the fundamental principles and basic understanding of nature
• Applied Research is taking scientific discoveries and generating technical inventions which may have potential for
satisfying human purpose.
• Developmental Research - that research necessary to develop the invention to level of functional capability desired
• Invention - first documentation of an idea for a new device or process with features thought useful for human purpose
• Innovation - the process whereby an invention is further researched, designed and engineered into a form suitable for the
commercial marketplace or public-sector use:
• Incremental Innovation - modifications or extensions of existing products/services for improved performance at (usually)
lower cost
• Radical Innovation - achieving a brand-new functional capability that separates this product/service from its
predecessors; opens the possibility of totally new industries
• Idea Generation + Problem-Solving  Invention-Creation of Knowledge): Acquisition of new knowledge
• Invention + Implementation  Innovation.- Transformation of Knowledge): Application of new knowledge
– 12-20% of inventions results in successful innovation.
• Innovation + Diffusion  Economic Value.
• Diffusion (Utilization of Knowledge): Acceptance and adoption of new knowledge
TECHNOLOGY
 Usage & knowledge of tools and crafts to control or adapt to the environment
 Technology refers to the totality of the means employed to provide objects necessary for human substance and
comfort.

Characteristics of Technology
 It involves purposive applications of various fields of sciences and scientific knowledge.
 It is used to provide objects necessary for human substance and comfort.
 It is not restricted to hardware, but also includes know-how and software.
 It has both public as well as private components
 It is complex in nature.
 It is dependent on other technologies.
COMPONENTS OF TECHNOLOGY
 Technoware
 Humanware
 Infoware
 Orgaware
 Individual linkages
 Departmental linkages
 Enterprise linkages
 Industrial linkages
 National linkages
 Global linkages
Difference between science and technology

TECHNOLOGY MANAGEMENT
 Technology Management
 A discipline of management where in an organisation leverages the technological fundamentals to create
competitive advantage.

 Management of technology is defined as linking, “engineering, science and management disciplines to plan,
develop and implement technological capabilities to shape and accomplish the strategic and operational
objectives of an organisation.”
 Typical concepts used in technology management are technology strategy (a logic or role of technology in organization), technology
forecasting (identification of possible relevant technologies for the organization, possibly through technology scouting), technology
roadmapping (mapping technologies to business and market needs), technology project portfolio ( a set of projects under
development) and technology portfolio (a set of technologies in use).
 The role of the technology management function in an organization is to understand the value of certain technology for the
organization. Continuous development of technology is valuable as long as there is a value for the customer and therefore the
technology management function in an organization should be able to argue when to invest on technology development and when to
withdraw.
 Technology Management can also be defined as the integrated planning, design, optimization, operation and control of technological
products, processes and services, a better definition would be the management of the use of technology for human advantage.
Relationship of Technology with Wealth of Nation & Firms Specific Knowledge (competitive advantage).
Productivity growth is indispensable to growth in national income and wealth. Research carried out over the last 30 years
demonstrates that technological change is an important contributor to productivity growth, and therefore to growth in the
income and wealth of nations. The last decade of the twentieth century presents great challenges and opportu-
nities to policy makers and managers concerned with improving technological and economic performance.

Technological change is an essential ingredient in the processes of growth. Investment in technological improvement and in the
complementary assets and activities needed
to support innovation is a positive sum strategy for improving living
standards.
Enhanced capital, labor and technical progress (or equivalently, total factor productivity) are the three principal sources of the
economic growth of nations. The rate of growth of labor is generally constrained by the rate of growth of population. For
industrialized countries, the rate of growth of the labor force is seldom higher than two percent per annum, even with
international migration. Consequently, the rate of growth of capital (physical and human) and technical progress have been found
to account for a significant proportion of economic growth by a long line of distinguished economists. Technology has always
played a major role in creating the wealth of nations and influencing standards of living and quality of life.
Technology has had such a profound effect on human lives that progress of civilization is frequently identified by the dominant
technology of the age.
Firms Specific Knowledge (competitive advantage)
 Unique specific ownership advantages to a business firm.
 Can be held temporarily or permanently and is held exclusively.
 Ex: technical expertise know-how, process know-how, etc.
 Helps in attaining operational and competitive advantage which ensures superior returns.
 Provides opportunity to expand the business by entering into foreign markets and also helps in overcoming high
operating costs and problems in the initial years.
 Firm specific advantage enables a business enterprise to become successful in foreign markets.
 Resource based view of the firm emphasizes the role of the firm’s specific resources for enabling a firm to gain and
sustain competitive advantage.
 Ex: knowledge based competitive advantage.

Objectives of firm’s specific knowledge
 Efficiency
 Knowledge re-utilization
 Organizational components
Various firms specific advantage to technological progress and advantage to the business firms
 Improvement in quality thus leading to high quality products.
 Minimum life cycle costs
 Sustainability reduced production costs.
 Shorter lead time from R&D to commercial production.
 High level of flexibility in responding to changing market conditions.
 Reduction in number of machine tools required to manufacturer parts.
 Reduction in floor space requirements.
 Reduction in labour requirements by better utilisation of technological strengths.
 Increase in machine utilisation rate by removing bottlenecks.
 Reduction in W.I.P. and finished goods inventories.

 Reduction in overall cycle time.
 Simplification of production scheduling, better work flow
 Increase in manufacturing capacity
 Higher efficiency and higher productivity
 Shared use of design and manufacturing data across different divisions of the organizations.
 Flexibility in design and manufacturing operations.
 Increased ability to enter new markets quickly, faster introduction of new products
 Improved management control
 Shortened delivery time for customers
 Reduced material handling
 Increased safety of workforce and consumers
 Reduced material handling
 Increased safety of workforce and consumers
 Enhanced capability to fight foreign competition
 Stability in sales and profits of business firms
 Increased earnings through exports
 Monopoly and high prices for hi-tech products in the international markets
Technology life cycle
 Management of technology requires deep understanding of the life cycles of the technology, product, process and
system.
 A technology performance follows the ‘S’- curve observing embryonic stage, growth & maturity stage i.e. its natural limits
vulnerable to substitution. When technology develops & penetrates market there is growth in form of market volume.

 Stage I – Basic technology is developed in the research and development centre.
 Stage II – Various applications of new technology are explored and planned.
 Stage III – Products, services and processes based on these applications are launched in the markets.
 Stage IV – Based on feedback and requirements of markets, market – oriented applications are offered.
 Stage V – Technology reaches its maturity stage and rate of innovation slows.
 The TLC may be seen as composed of four phases:
 (a) the research and development (R&D) phase (sometimes called the "bleeding edge") when incomes from inputs are
negative and where the prospects of failure are high
 (b) the ascent phase when out-of-pocket costs have been recovered and the technology begins to gather strength by
going beyond some Point A on the TLC (sometimes called the "leading edge")
 (c) the maturity phase when gain is high and stable, the region, going into saturation, marked by M, and
 (d) the decline (or decay phase), after a Point D, of reducing fortunes and utility of the technology.

Technology Acquisition
Technology acquisition is the process by which a company acquires the rights to use and exploit a technology for the purpose of
improving or renewing processes, products or services. It does not include retailed or mass market off the shelf software which is
generally governed by non-negotiable "shrink wrapped" licences.
Support for technology acquisition is primarily designed for business-to-business technology acquisition, but in some cases the
technology may come from a university or research organisation. The technology or know-how may originate in Ireland or
abroad, and should normally be tested, proven and ready to use.
Technology acquisition is a method by which companies can acquire new products, processes and technologies without going
through the expensive and risky stages of their own R&D. Typical technology acquisition takes the form of a license agreement
but it can also be an outright acquisition or a cooperation agreement.
Options for technology acquisition
Methods of technology acquisition fall into three categories: internal, external and some combination of internal and external.
Internal technology transfer
 Refers to such technology transfers where control on the ownership and usage of the technology resides with the
transferor.
 Involves movement of technology from R&D dept. to manufacturing units and then to marketing of product or services.
Barrier to internal technology transfer
 Production department does not know the R&D department.
 Difficulties in stopping current production to test the new technology.

 R&D department does not understand the needs and capability of production department.
 Production department is resistant to innovation and is bound to routine.
Steps/activities involved in internal acquisition process
 Planning new services/products/processes to be offered.
 Screening new products/services/processes.
 Initiating development process.
 Carrying out trial production on small scale and test marketing
 Improving design and production process
 Commercialisation
External Technology Transfer
 Refers to such technology transfers where control on the ownership and usage of technology usually does not remain
with the transferor but with the recipient.It is the process of acquiring technology developed by others for use by the
acquirer enterprise.
Factors affecting external technology transfer
 Type of technology being transferred
 Complexity of the technology being transferred
 Transfer mechanism selected
 Relationship between the parties – building the mutual trust.
 Core competencies of the parties and compatibility thereof.
 Organizational culture of the parties and mutual understanding thereof.
Methods to accomplish External technology acquisitions
 Outsourcing
 Strategic alliance
 Collaborating research and development

 Enterprise acquisition
National strategies for technology acquisition
 Internationalization Oriented strategy – This strategy aims at seeking technological development with the objective to
become internally self reliant.
 Externationalization Oriented strategy – This strategy aims at seeking technological development with the objective to
tap the external market.
Technology absorption
 Refers to the acquisition, development, assimilation and utilization of technological knowledge and capability by a firm,
or some macro entity.
 Putting the acquired technology to further development, assimilation and utilization.
 Technology absorption may involve some or no change in the parameters of acquired technology.
 Technology absorbed without changing the parameters of acquired technology - technology adoption.
 Technology absorbed by changing parameters of acquired technology is called technology adaption.
Need for technology adaption
 Non-availability of supporting infrastructure.
 For meeting location/market specific needs.
 To make it compatible with existing plant and machinery
 Non availability of ancillary units for components.
 To meet legal requirements.
 Pressure from NGOs, human rights group.

 Acquiring and absorbing information
 Affective
Components of technology absorption
 Hardware
 Software
 Brainware
 Support Net
Difference between Technology Acquisition and Technology Absorption

Technology Forecasting
Technology forecasting attempts to predict the future characteristics of useful technological machines, procedures or techniques.
Primarily, a technological forecast deals with the characteristics of technology, such as levels of technical performance, like speed
of a military aircraft, the power in watts of a particular future engine, the accuracy or precision of a measuring instrument, the
number of transistors in a chip in the year 2015, etc. The forecast does not have to state how these characteristics will be
achieved.
Secondly, technological forecasting usually deals with only useful machines, procedures or techniques. This is to exclude from the
domain of technological forecasting those commodities, services or techniques intended for luxury or amusement.
Need to Forecast Technology
 To maximize gain from events external to the organization.
 To maximize gain from events that are the result of actions taken by the organization.
 To minimize loss associated with uncontrollable events external to the organization.
 To offset the actions of competitive or hostile organizations.
 For purposes of production and/or inventory control.
 For facilities and for capital planning.
 To assure adequate staffing.
 To develop administrative plans/policy internal to an organization (e.g., personnel or budget).
 To develop policies that apply to people who are not part of the organization.

Methods of technology forecasting
Commonly adopted methods of technology forecasting include the Delphi method, forecast by analogy, growth curves and
extrapolation. Normative methods of technology forecasting — like the relevance trees, morphological models, and mission flow
diagrams — are also commonly used.
 Involving a group of experts:
 Committee
 Delphi
 Techniques based on historical data
 Exploratory forecast
 Normative Forecast
 COMMITTEE
 Group of people appointed for a particular function by a larger group.
 Experts usually carry out relevant experience and may be drawn from internal and external experiences.
 Experts meet on different occasions, interact with each others, exchange their views and develop consensus
forecasts.
 Delphi Method
 Qualitative forecasting technique in which a panel of experts working separately and not meeting each other arrive at a
consensus through the summarizing of ideas by a skilled Coordinator.
 Delphi sequence is carries out by interrogating a group of experts with a series of questionnaire.
 The coordinator writes a set of questions, i.e., questionnaire and gives it to each expert on the panel who writes his/her
brief prediction
 Surveillance
 Scan the environment and link to the source of innovation for quick adjustment & adoption
 Extrapolation
 Assumption: Time series data from the past contains all the information needed to forecast the future.
 The forecaster extends a pattern found by analyzing past time series data.
 For example: A technological forecaster who was attempting to forecast aircraft speed would obtain a time series
of aircraft speed records, find a pattern (trend), and extend to the future to obtain a forecast.
 Causal Models

 Assumption: The cause-effect linkages in the topic of interest are known and can be expressed mathematically or
in some similar fashion (e.g., a mathematical model).
 Incorporates information about cause and effect relationship, involving some fundamental laws in physics.
 For example: A forecast of solar eclipse is based on a causal relationship, involving some fundamental laws of
physics.
 Trend analysis
 Trace the time-series data and identify the evolutionary pattern and the driving forces
 Normative Forecast –
 Starts with future needs and identifies the technological performance necessary to meet these required needs.
 Market pull
 Mission/need oriented.
. Technology Exports / Joint venture Abroad
What are Strategic Alliances?
• Strategic alliances are partnerships between two or more firms which decide they can better pursue their mutual goals by
combining their resources – financial, managerial, technological – as well as their existing distinctive competitive
advantages
• Global strategic alliances are working partnerships between companies (often more than two) across national boundaries
and increasingly across industries
Categories of Alliances
• Joint ventures – A joint venture (JV) is a special type of strategic alliance in which two or more firms join together to
create a new business entity that is legally separate and distinct from its parents. Or when two or more companies
create an independent company
• Equity strategic alliances – in which two or more partners have different relative ownership shares (equity percentages)
in the new venture
• Non-equity strategic alliances – when agreements are carried out through contract rather than ownership sharing
Global and Cross-Border: Motivations and Benefits
• To avoid import barriers, licensing requirements and other protectionist legislation
• To share the costs and risks of the research and development of new products and processes
• To gain access to specific markets
• To reduce political risk while making inroads into a new market
• To gain rapid entry into a new or consolidating industry and to take advantage of synergies

Technology intelligence
Technology Intelligence (TI) is an activity that enables companies to identify the technological opportunities and threats that
could affect the future growth and survival of their business. It aims to capture and disseminate the technological information
needed for strategic planning and decision making. As technology life cycles shorten and business become more globalized having
effective TI capabilities is becoming increasingly important. In the United States, Project Socrates identified the exploitation of
technology as the most effective foundation for decision making for the complete set of functions within the private and public
sectors that determine competitiveness.
The Centre for Technology Management has defined 'technology intelligence' as "the capture and delivery of technological
information as part of the process whereby an organisation develops an awareness of technological threats and opportunities.
Global Trends in Technology Management
In the industries where Japan has become a major global competitor (such as computers, semiconductors, automobiles,
consumer electronics), Japanese companies have developed the reputation for rapid commercialization of new product ideas and
for effective and efficient incremental innovations in existing products.They have done so with relatively low investments in basic
research, and with a very high degree of geographic concentration of their research and development organizations in Japan.
Indeed, the success of these companies in designing in their home country laboratories products that meet the needs of
customers in many different national markets has been greatly envied by U.S. firms.
These same Japanese firms, however, are now under increasing pressures to internationalize their research and development
organizations and to increase their basic research activities. Japanese research managers are beginning to formulate new
technology strategies to deal with these pressures and to assess the implications for institutionalized patterns of technology
management. (will be given as assignment in the class)
CHANGE
A transformation or transition from one state, condition, or phase to another, say from A B
• A universal phenomenon associated to creativity & innovation& their implementation.
• Moving from one state to another is accomplished as a result of setting up & achieving three types of goals
– a)Transform- goals are concerned with identifying difference between the two states
– b)Reduce- goals are concerned with determining ways of eliminating these differences
– c)Apply- goals are concerned with putting into play operators that actually effect the elimination of these
differences.

• Change problem focuses on three issues-
– How, What & Why
– ‘How’ aims at means to be adopted in transformation,i.e. systems & operations
– ‘What’ aims at ends to be attained depending upon what lies in stocks, management or support functions & what
is to be achieved
– ‘Why’ to get ultimate purpose of change as ends & means are relative & not absolute notions-mission& vision,
chain & network are assessed.
Characteristics & Nature of change
• Brings difference in products, culture & work practices
• On going & inevitable because innovate or abdicate, change or perish
• Offers opportunities & challenges
• Internal as well as external
• All pervasive in the organization
• Change at different levels & may be first order(incremental) or second order(radical)
• Planned or unplanned, slow or fast
• Abandons obsolete practices, negative values & increases motivation.
Change management
is an approach to shifting/transitioning individuals, teams, and - in general - organizations from a current state to a desired future
state. It is an organizational process aimed at helping change stakeholders to accept and embrace changes in their business
environment or individuals in their personal lives.[citation needed] In some project management contexts, change management
refers to a project management process wherein changes to a project are formally introduced and approved.[1]
Change management uses basic structures and tools to control any organizational change effort. The goal is to maximize benefits
and minimize the change impacts on workers and avoid distractions
Organizational Change
• An alteration of an organization’s environment, structure, culture, technology, or people
– A constant force
– An organizational reality
– An opportunity or a threat

• Change agent
– A person who initiates and assumes the responsibility for managing a change in an organization
• Change is the single most important factor in business today:
– every business is an ongoing source of change.
– every professional discipline is a process of change.
– every fundamental business principle directs us to change.
• Every market force (customers, competitors, technology, regulations, distribution channels, suppliers, etc.) creates
change that forces our change in response.
• Globalization of markets demands globalization of businesses.
Forces for Change
External Forces
• Govt. directions-Competition Laws and regulations
• New technologies
• New equipment
• Demographic characteristics & Labor market shifts
• New processes
• Business cycles
• Workforce composition
• Social change
• Economic
• Technological
• Social/political
Internal Forces
• Strategy modifications
• Leadership change
• New product
• Structural reorganization

• Job restructuring
• Business policy
• Competitive edge
• Compensation and benefits
• Labor surpluses and shortages
• Employee attitude
Importance of change management to the organization
 Change is a planned and managed process. The benefits of the change are known before implementation and serve as
motivators and assessment of progress
 The organization can respond faster to customer demands
 Helps to align existing resources within the organization
 Change management allows the organization to assess the overall impact of a change
 Change can be implemented without negatively effecting the day to day running of business
 Organizational effectiveness and efficiency is maintained or even improved by acknowledging the concerns of staff
 The time needed to implement change is reduced
 The possibility of unsuccessful change is reduced
 Employee performance increases when staff feel supported and understand the change process
 Increased customer service and effective service to clients from confident and knowledgeable employees
 Change management provides a way to anticipate challenges and respond to these efficiently
 An effective change management process lowers the risk associated with change
 Managed costs of change: change management helps to contain costs associated with the change
 Increased return on investment (ROI)
 Creates an opportunity for the development of "best practices", leadership development, and team development
Diagnosing Organizational Capability to Change-strategy
Change management--the formal process for organizational change--is the systematic approach and application of
knowledge, tools and resources to leverage the benefits of change.

Change management means defining and adopting corporate strategies, structures, procedures and technologies to deal with
change stemming from internal and external conditions. Increasingly, change management is seen as a permanent business
function to improve productivity and profits by keeping organizations adaptable to the competitive marketplace.
Diagnosing Organizational capability to change, precisely relates to how well an organization can react to and manage
change.
Getting People and Organizations to Change (Driving Forces)
• Education and training
• Participation and cooperation
• Support
• Economic incentives
• Increased communication
• Negotiation
• Coercion – Forcing
What Can Change Agents Change?
• Structure & Strategy – Change agents can alter one or more of the key elements in an organization’s design.
• Technology – Competitive factors or innovations within an organization often require change agents to introduce new
equipment, tools, or methods.
• People – Change agents help individuals and groups within the organization work more effectively together.
• Physical Settings/System – Change agents can affect their environment.
Why People Resist Change
• Habits – We are creatures of habit.
• Fear of the unknown.
• Security – The higher the need for security, the stronger the resistance.
• Economic factors.
• Selective information processing – We all have our own ideas of what is right.
Why Do Organizations Resist Change?
• Group inertia – Peer pressure, group norms.

• Security.
• Threat to established power relationships.
• Threat to established resource allocations.
• Limited focus of change – Change affects others in the organization.
• Poor communication.
• Threat to expertise.
Two Views of the Change Process
Change Process is the state which results in change
“Calm waters” metaphor
– A description of traditional practices in and theories about organizations that likens the organization to a large
ship making a predictable trip across a calm sea and experiencing an occasional storm
• “White-water rapids” metaphor
– A description of the organization as a small raft navigating a raging river
– Change is constant in a dynamic environment
– The only certainty is continuing uncertainty
– Competitive advantages do not last

– Managers must quickly and properly react to unexpected events
– Be alert to problems and opportunities
– Become change agents in stimulating, implementing and supporting change in the organization
Formula for change

A Nine-step Process For Leading Organizational Change
1. Create a Sense of Urgency
2. Decide What to Change
3. Create a Guiding Coalition and Mobilize Commitment
4. Develop and Communicate a Shared Vision
5. Empower Employees to Make the Change
6. Generate Short-Term Wins
7. Consolidate Gains and Produce More Change
8. Anchor the New Ways of Doing Things in the Company Culture
9. Monitor Progress and Adjust the Vision as Required
Kinds of change in organizations
Apart from planned/ unplanned changes, Fast /slow changes, radical /minor changes, there are
• Technological change
• Technical change
• Product design change
• Process change.
• System change.

• Structural change.
• Organizational change.
What provokes Organizational Change? Examples:
– Management adopts a strategy to accomplish some overall goal
– May be provoked by some major outside driving force, e.g., substantial cuts in funding
– An Organization may wish to evolve to a different level in their life cycle, e.g. from traditional government to e-
government
– Transition to a new chief executive can provoke organization-wide change when his or her new and unique
personality pervades the entire organization
Systems-
• are sets of procedures.
• System change in organizations is often not systemic—that is it rarely takes account of the wider implications for the
organization as a whole.
• The temptation is to ‘fix’ one or other of the systems so that they gel together better.
Structures
• is the outward form of organization; an indication of the regularities which arise when groups of people get together in
pursuit of a common purpose.
• move from a hierarchy to a matrix; or from functional divisions to process-focused work teams.
Building Culture and Climate for Change.
• To estimate in advance the impact of change
• Technology requirement & acquisition strategy
• Employees behavior & motivation level;
• Work processes & productivity
• Culture has to be prepared to implement & disseminate change effectively throughout the organization by-
• Communication of proper reasons, aims & ways to respond positively & cope with it
• Don’t impose but give a chance to decide how it will be managed

• Participation & involvement in workshops, staff surveys, training, feedback & empathy
• Empower people & teams to find their own solutions& responses to facilitate managers
• By good leadership styles(tolerance, compassion) win the trust of employees
• Describe, design, support & review the effectiveness of change
• Reduce conflicts & increase participation
• Recognition of creativity
• Successful adaptation to change is as crucial within an organization as it is in the natural world. The more effectively you
deal with change, the more likely you are to thrive.
• Adaptation might involve establishing a structured methodology for responding to changes in the business environment
(such as a fluctuation in the economy, or a threat from a competitor)
Role of leadership
Leader should
• Encourage collaboration rather than competition
• Encourage Customer orientation
• Encourage Training & coaching
• Encourage Quality consciousness
• Encourage proper communication
• Encourage Teamwork
• Encourage participation of workforce
• Encourage Creativity & productivity
• Encourage Healthy culture with lesser conflicts
• Encourage positive synergy in team
• As a team leader he should help in Proper Management of new product development & its commercialization
• Reduction of lead time from R&D to market development
• Speeding up production & new product launch
• Attainment of technology leadership
• Attainment of National & global competitiveness

• Utilizing people lever for organizational growth( reducing resistance, motivating, career planning, participation, reward
etc.)
• Practice of Kaizen Quality circles etc.
Leaders as Change Agents
Most health organizations today find themselves undertaking a number of projects as part of change efforts. These change
efforts are mostly directed at:
 organizational restructuring,
 quality improvement, and
 employee empowerment.
What differentiates a successful change effort from an unsuccessful one is the ability of the change agent.
Managing Transformations
• Transformation means extreme psychological or character change.

• There can be business transformation through technological transformation ,implementation transformation & human
transformation.
• Process by which an organisation achieves and maintain operational and competitive advantage by:
• Changes in technology
• Changes in operational concepts
• Changes in organisational structure
• In an age of discontinuity, the companies that will survive the coming decades are those that can respond effectively to
the changing demands of their environment.
• Predictably, as the speed of change increases, change and transformation management has become a fundamental
competency for executives, HR managers, and organizational leaders. As an organizational leader, how can you drive the
process of change? How can you be most effective as a change agent?
An organization’s ability to resource adequately and deal with the human and social capital issues in transformation
processes (including mergers, acquisitions, and restructuring) can make the difference between success and failure.
Unfortunately, in many change initiatives, financial and strategic concerns take precedence and people issues are an
after-thought. The failure to address people issues undermines many change initiatives.
Whether the change is large or small, the ability to manage it is a critical component of high-performance organizations
• As organizations transform themselves to achieve greater productivity, cost-effectiveness and quality of service, one of
the biggest challenge they face is managing the change process itself.
Transformation process
• Transformation requires that continuous improvement is necessary, but not sufficient.
– Introduction of major changes
– Consolidation
– Sustenance and growth
• Introduction of major changes
– Changing the culture of organisation
– Process systems engineering
– Enhanced training
– Quality improvement
– Making changes to organizations, roles and responsibilities
– Increased functional integration

– Board reconstitution
– Encourage innovation
• Consolidation
– Continued focus on key operating parameters
– Corporate initiative on sourcing, channel and service
– Requiring leadership with accountability
– Leveraging reach and service business potential
– Senior management commitment
– Increase in integration
– Focus on performance
– Prioritization of efforts
• Sustenance and growth
– Ever increasing emphasis on mission assurance
– Senaior management commitment
– Further improving integration
– Reviewing and improving business strategy
– Sustaining cost and quality optimization
– Reinforcing performance culture
– Sustaining operational efficiency improvement programme.

Invention
 is an outcome of a new, useful & original thought, be it a machine, product, process or method, i.e. mental thinking +
practice of idea.
 Invention is about discovery and the creation of something novel that did not previously exist. Innovation, on the other
hand, carries invention further with the commercial realization of the value of the invention or the receipt of an economic
return. This is a subtle but important distinction. Thus, patents, the legal protection of an idea reveals an invention while,
for example, the marketing and consumer acceptance of a new drug is evidence of an innovation.
 Commercialization is the process that turns an invention into an innovation and involves defining a concept around who is
willing to pay for the new idea,
 An invention is the finding or creation of a new configuration, composition of matter, device, or process. Some inventions
are based on pre-existing models or ideas. Other inventions are radical breakthroughs which may extend the boundaries
of human knowledge or experience.”
 The term innovation means a new way of doing something. It may refer to incremental, radical, and revolutionary
changes in thinking, products, processes, or organizations. A distinction is typically made between Invention, an idea
made manifest, and innovation, ideas applied successfully. (Mckeown 2008) In many fields, something new must be
substantially different to be innovative, not an insignificant change, e.g., in the arts, economics, business and government
policy. Inventions become common in usage are innovations, and may be a major breakthroughs or of minor and
incremental impact. The effects can also be inbetween these two extremes.
 An important distinction is normally made between invention and innovation. Invention is the first occurrence of an idea
for a new product or process, while innovation is the first attempt to carry it out into practice
INNOVATION
A set of activities transforming ideas & scientific knowledge into physical reality & real world applications
Innovation is:
–The successful generation, development and implementation of new and novel ideas, WHICH
–introduce new products, processes and/or strategies to a company OR
–enhance current products, processes and/or strategies LEADING TO
–commercial success and possible market leadership AND
–creating value for stakeholders, driving economic growth and improving standards of living.
Innovation occurs when someone uses an invention or an idea to change how the world works, how people organize themselves,
or how they conduct their lives. In this view innovation occurs whether or not the act of innovating succeeds in generating value

for its champions. Innovation is distinct from improvement in that it permeates society and can cause reorganization. It is distinct
from problem solving and may cause problems. Thus, in this view, innovation occurs whether it has positive or negative results.
 Closed innovation - requires control
 Open innovation
 companies use external as well as internal ideas and both external and internal ways to market
 internal ideas can be taken to the market through external channels to generate additional value
Innovation in organizations
“Innovation is the successful exploitation of new ideas to increase customer value or create wealth for a company. Innovation is
therefore outcome-oriented, with the outcomes being aligned with a company’s overall strategy”.
 Innovation can be best described as the conversion process of an invention into a market oriented product or service
 It can be a very time consuming transformation process which is both management and resource intensive, and is more
expensive than the invention itself
 Today, rapid generation of new products and services is the most important way of improving market share and
generating profits
 Innovation is the integration of inventions & existing technologies to bring it to market place making socio-economic
impact.
 Innovation = Invention + Commercial exploitation.
 Strategic innovation is the creation of growth strategies, new product categories, services or business models that change
the game & generate significant new value for customers & corporations.
The types of innovation efforts found in the R&D process include:
1. Basic research- generating knowledge & understanding of laws of nature by developing theories & laws
2. Applied research- Advances science systematically on the basis of previous knowledge
3. Systems integration- product improvement or market expansion
Process of Innovation
‘Innovation starts from the top’ is a frequently used phrase; but there are many steps involved in a successful innovation strategy
 Idea generation- identifying need for it, alternative ways to meet it, analysis to find the best solutions & proposals for its
implementation
 Concept Definition- Conceptual definition of innovative product or service, setting tech. goals & priorities, setting the
anticipated performance

 Market analysis of customer’s needs in present as well as in future, competitors their strength & windows for
opportunities
 Technical analysis-(a) Resources available, resources required, time frame
(b) Business plan, SWOT analysis, ETOP analysis, economic & capital analysis, strategic outlook
 Product development- product prototype, testing, start-up needs
 Test marketing- innovative strategy for market introduction, good timings, measuring response
 Full production & commercialization- production, tooling, operational control, logistics, supply organization.
 Disposal- Consumer’s as well as environmental consciousness
Characteristics of Innovation :
 Application based
 Succeed inventions
 May simplify or complicate the previous versions
 Induced & motivated by profits
 Broader than research & development
 Brings organizational change
 May be success or failure
 Patented to acquire firm specific advantage
 Involves risk & uncertainty
 Different from Kaizen
 Creative transformation
Innovation chain
 Scientific invention+ Engineering development + entrepreneurship + Management + Recognized social need+ Supportive
environment = Commercially successful Innovation
 It may be the product or process of arriving at technological feasible solution to a problem triggered by a tech.
opportunity or customer need.
 Innovation, Imitation or Adoption of technology change by firms is guided by two groups-
 Customer’s group (demand side)
 Competitor’s group (supply side)
 Innovation is response to environmental demands to shape the environment

Drivers Process Output
Types of innovation
 Incremental innovations – are minor improvements.These are sustaining & evolutionary.
 Architectural innovations – Reconfiguration of existing components, technologies & practices in different ways & new
systems, making the architecture of the product quite different.
 Modular innovations -Novel & significant changes in products , practices & technologies with existing configuration of the
organization. Technology changes within the existing product structures.
 Radical innovations -Novel, revolutionary require new systems & structures. They are not typically aligned with the
organizational skills& capabilities, so require new knowledge , systems components & reconfiguration.
 Generic innovation- which create new technology paradigms originating a new core process which cross-cuts many
sectors & stages of products. ( electricity )
 Epochal innovation-subsets of generic innovations whose introduction or rejection is confined to a particular sector, e.g.
Xerox copying machine, digital photography
.
Factors influencing the process of innovation in organisations
Firm level factors
 Organisation structure
 Formalization
 Centralization
 It is often argued that lower formalization and higher decentralization grant lower level individuals
greater participation in decision making and thereby a proprietary interest in its outcome.
 Resources
 Financial resources

 Technical resources
 Openness to external information
The ideal types of innovation strategy can be classed as proactive, active, reactive and passive1. Each is described in greater detail
below
Proactive - Companies with proactive innovation strategies tend to have strong research orientation; they will often have first
mover advantage and be a technology market leader. These companies access knowledge from a broad range of sources and take
big bets/high risks. Companies like Dupont, Apple and Singapore Airlines have proactive innovation strategies.
The types of technological innovation used in a proactive innovation strategy are radical and incremental. Radical innovations (as
described in Why Innovate) are breakthroughs that change the nature of products and services. Incremental innovation is the
constant technological or process changes that lead to improved performance of products and services.
Active - An active innovation strategy involves defending existing technologies and markets but with the preparedness to respond
quickly once markets and technologies are proven. These companies have mainly incremental innovation with in-house applied R
& D. Companies with active innovation strategies also have broad sources of knowledge and have medium to low risk exposure.
They tend to hedge their bets and include companies such as Microsoft, Dell and British Airways.
Reactive - The reactive innovation strategy is used by companies that are followers and have a focus on operations, have a wait
and see approach and look for low risk opportunities. They will copy proven innovation. Companies with reactive innovation
strategies use entirely incremental innovators and include budget airlines such as Ryanair which has successfully copied the no
frills service model of Southwest Airlines.
Passive - Companies with passive innovation strategies wait until their customers demand a change in their products or services.
Many of the companies that supply to automotive companies have passive innovation strategies as they wait for the automotive
companies to demand changes to specification before implementing these changes.
Refers to the patterns of information exchange a firm establishes with its environments, including customers as well as the
technical experts outside the firm
 Informal communications
 More open climate tends to allow free exchange of ideas within an organisation and thus help the
process of innovation.
 Environmental factors
 Market factors
 Input factors
Factors that discourage innovation
 The time required for an internal development strategy is greater.
 There is a greater risk of failure to develop the right product at the right time.

 Keeping a pipeline of new products and/ or processes is difficult at best.
Models of innovation
 Linear Model/ Traditional Phase Gate model
 Under this model the product or service concept is frozen at early phase & sequential steps are arranged in such a
manner that the preceding phase must be cleared before moving to next phase. The project passes through a
gate with the permission of gatekeeper acc. to some set criteria, & examination by the gatekeeper.
 This model depicts the case of incremental innovation &the process is tightly controlled /directed towards goals from the
very beginning. It is good for shorter time period of innovation ,lesser environmental changes & strictness towards
quality & safety for internal as well as external consumers.

 But this model is rigid, closed to suggestions for on process improvements, slow in decision making, evaluation &
controlled through gates not the consumers.
 Basic research → Applied research → Development → (Production and) Diffusion
Fuzzy Front End (FFE, FEI)

The fuzzy front end of our strategic innovation process consists of seven phases:
o Collecting customer insights (UCI)
o Developing strategic foresights (DSF)
o Sense making and opportunity mapping (SOM)
o Ideation and concept development (ICD)
o Rapid concept prototyping (RCP)
o Customer co-creation (CCC)
o Brand / market assessment (BMA)
New concept development model (NCD)

 It leads to product & process innovation through technology push or market pull approach. In tech. push the improved
tech is the driver of innovative products, processes & services. It may ignore market requirements. The steps are
fundamental research, application research, design, engineering, manufacturing, marketing & sales
 The market pull model is second generation linear model. Market research & consumer’s needs are key drivers leading to
various steps in innovation, like idea generation, designing, engineering, manufacturing, test marketing, mass production
& sales.
Flexible Model of innovation process
 It is a nonlinear model in which idea can be improvised at any stage of innovation process. These are cyclical models, a
combination of tech. push & market pull models, including the feedback from R&D as well as market surveys. It involves
architectural & radical innovation processes leading to cross fertilization of ideas for new product development.
 These are complex third generation models with overlapping phases, where design is not locked but keeps on evolving &
improving acc. to diffusion feedback.
 Concurrent engineering + invention + innovation + Diffusion path + Investment activity are combined in this model.
Goals of innovation
• Improved quality
• Creation of new markets
• Extension of the product range
• Reduced labour costs
• Improved production processes
• Reduced materials

• Reduced environmental damage
• Replacement of products/services
• Reduced energy consumption
• Conformance to regulations
Failure of innovation
• Poor Leadership
• Poor Organisation
• Poor Communication
• Poor Empowerment
• Poor Knowledge Management
• Poor goal definition
• Poor alignment of actions to goals
• Poor participation in teams
• Poor monitoring of results
• Poor communication and access to information
Concurrent Engineering
Concurrent engineering is a work methodology based on the parallelization of tasks (i.e. performing tasks concurrently). It refers
to an approach used in product development in which functions of design engineering, manufacturing engineering and other
functions are integrated to reduce the elapsed time required to bring a new product to the market.
Concurrent engineering replaces the more traditional sequential design flow, or ‘Waterfall Model’.[5][6]
In Concurrent engineering
an iterative or integrated development method is used instead[7]
The difference between these two methods is that the
‘Waterfall’ method moves in a linear fashion by starting with user requirements and sequentially moving forward to design,
implementation and additional steps until you have a finished product. In this design system, a design team would not look
backwards or forwards from the step it is on to fix possible problems. In the case that something does go wrong, the design
usually must be scrapped or heavily altered. On the other hand, the iterative design process is more cyclic in that, all aspects of
the life cycle of the product are taken into account, allowing for a more evolutionary approach to design.[8]
The difference
between the two design processes can be seen graphically in Figure 1.

Traditional “Waterfall” or Sequential Development Method vs. Iterative Development Method in concurrent engineering
A significant part of the concurrent design method is that the individual engineer is given much more say in the overall
design process due to the collaborative nature of concurrent engineering. Giving the designer ownership is claimed to improve
the productivity of the employee and quality of the product that is being produced, based on the assumption that people who are
given a sense of gratification and ownership over their work tend to work harder and design a more robust product, as opposed
to an employee that is assigned a task with little say in the general process.[4]
Concurrent engineering elements
Cross-functional teams
Include members from various disciplines involved in the process, including manufacturing, hardware and software
design, marketing, and so forth
Concurrent product realization
Process activities are at the heart of concurrent engineering. Doing several things at once, such as designing various
subsystems simultaneously, is critical to reducing design time.
Incremental information sharing
It helps minimize the chance that concurrent product realization will lead to surprises. As soon as new information
becomes available, it is shared and integrated into the design. Cross functional teams are important to the effective sharing of
information in a timely fashion.
Integrated project management
It ensures that someone is responsible for the entire project, and that responsibility is not abdicated once one aspect of
the work is done.
Disadvantages of concurrent design

Concurrent design creates its own issues, such as the implementation of early design reviews, the dependency on
efficient communication between engineers and teams, software compatibility, and opening up the design process.[9]
A
concurrent design process usually requires that computer models (computer aided design, finite element analysis) are exchanged
efficiently, something that can be difficult in practice. If such issues are not addressed properly, concurrent design may not work
effictively.[10]
Service providers exist that specialize in this field. Not only training people how to perform Concurrent Design effectively,
but also providing the tools to enhance the communication between the team members. Organizations such as *ESA's Concurrent
Design Facility make use of Concurrent Design to perform feasibility studies for future missions.
Process innovation
A process innovation is the implementation of a new or significantly improved production or delivery method. This includes
significant changes in techniques, equipment and/or software.”
“… The implementation of a new or significantly improved production… method” involves the development of a new way
to produce a product using a newly developed machine, a new method such as the Pilkington Floating Glass method or the blast
furnace, or the use of new software like 3D modelling software as part of the process or for developing new products.
 Process innovation helps in
 reducing costs per unit of installed capacity
 Improving quality
 Enhancing volume
 Spreading fixed cost over large number of units
 Bringing standardization
 Reducing lead time
 Increasing stock turnover
 Increasing machine utilization
 Reducing work in progress on average
Techniques of Process Innovation
 Material resource planning
 Just in time
 Flexible manufacturing systems

 Computer assisted design, manufacture & engineering
 Total quality management
 Business process re-engineering
 Outsourcing
Product innovation-
it may include the component knowledge( degree to which a specific tech. departs from earlier one) & component configuration
(degree to which configuration departs from earlier one). product innovation is the creation and subsequent introduction of
a good or service that is either new, or improved on previous goods or services. This is broader than the normally accepted
definition of innovation to include invention of new products which, in this context, are still considered innovative.
Product innovation is defined as:
the development of new products, changes in design of established products, or use of new materials or components in
the manufacture of established products[1]
Thus product innovation can be divided into two categories of innovation:
development of new products, and improvement of existing products.

Innovation Management
 Innovation management means linking of engineering, science and management disciplines to plan, develop and
implement technological capabilities to shape and accomplish the strategic and operational objectives of an organisation.
 How to integrate technology into overall strategic objectives of an organisation?
 How to get into and out of technologies faster and more efficiently?
 How to assess or evaluate technology more efficiently?
 How to accomplish technology transfer?
Innovation management is the discipline of managing processes in innovation. It can be used to develop both product and
organizational innovation. Without proper processes, it is not possible for R&D to be efficient; innovation management includes a
set of tools that allow managers and engineers to cooperate with a common understanding of goals and processes. The focus of
innovation management is to allow the organization to respond to an external or internal opportunity, and use its creative efforts
to introduce new ideas, processes or products

Thinking
Thinking is the highest mental activity present in man. All human achievements and progress are simply the products of thought.
The evolution of culture, art, literature, science and technology are all the results of thinking.
Thought and action are inseparable - they are actually the two sides of the same coin. All our deliberate action starts from our
deliberate thinking. For a man to do something, he should first see it in his mind's eye -- he should imagine it, think about it first,
before he can do it. All creations-- whether artistic, literal or scientific --first occur in the creator's mind before it is actually given
life in the real world.
Critical thinking is the process of thinking that questions assumptions. It is a way of deciding whether a claim is true, false;
sometimes true, or partly true. Critical thinking is an important component of most professions. It is a part of the education
process and is increasingly significant as students progress through university to graduate education, although there is debate
among educators about its precise meaning and scope.

 Convergent thinking involves aiming for a single, correct solution to a problem
 Divergent thinking involves creative generation of multiple answers to a set problem.
The Purpose of Thinking
The purpose of thinking, paradoxically, is to arrive at a state where thinking is no more necessary at all. In other words, thinking
starts with a problem and ends in a solution. Thus, thinking is a tool for adapting ourselves to the physical and social environment
in which we are in.
Can We Improve Our Thinking Ability?
Dr. Edward de Bono says that thinking CAN be improved just like any skill because thinking according to him is a skill. He has
developed many useful techniques for training thinking skills.
Why Should We Improve Our Thinking Skills
The benefits of developing thinking ability are manifold. By developing one's thinking skills one can make achievements; can
become successful; can shine in social life; can attain emotional, social and economic maturity and so on. By developing one's
thinking abilities it is possible to transform one's aggressive tendencies, bad temper and other negative tendencies creatively and
constructively. It has been found by Dr.Edward de Bono that when school students were taught to think effectively, their ill-
temper and aggressive tendencies reduced significantly. Clinical Psychologists have also found that those who have neuroses are
poor thinkers compared to normals. Neurotics scored significantly lower scores in decision making, problem solving and creative
thinking. Interestingly, when neurotics were taught to think effectively, they showed a remarkable reduction in their neurosis.
Misconceptions Regarding Thinking
There are a lot of misconceptions about thinking even in highly educated people. These notions have been deeply rooted in the
society and thus have become very detrimental to the development of thinking skills. It is time and enough that we removed
them. The most important of such misconceptions are:
Misconception No.1:
The present education system develops and enhances thinking and so the more educated you are the better thinker you are.
Fact:
Actually, education suppresses free thinking. Creative thinking has almost no place in current education. Moreover, education
even destroys creative thinking abilities by its over emphasis on logical thnking and critical thinking which are relatively lower
types of human thinking.
Since reasoning, argument, problem solving are given over importance a need to become correct and successful all the time is
developed in the student. Again, our present education system is so information oriented that it gives ready-made answers. This
kills the student's natural tendency to explore, experiment and to experience. Thus, the highly educated person ends up having
lesser ability to think creatively although he/she may have a lot of information at his/her disposal and also have admirable
abilities in logical and critical thinking.
Misconception No.2:

Less Educated or Uneducated can never become good thinkers.
Fact:
Actually, less educated display higher abilities in creative thinking. This is because they do not have an inflated ego that demands
cent percent correct answers or success in all endeavors. Again, they do not have ready-made-answers (i.e., book-answers) and
so are forced to explore, experiment and experience things themselves. This empowers them to go through less explored answers
and even find original answers.
Misconception No.3:
IQ and thinking ability are the same. The more IQ one has, the better thinking ability one has. On the contrary, those who have
lower IQ have only low thinking abilities.
Fact:
It is true that those who have greater thinking ability, as a rule, have high IQ. But this does not mean that all those who have high
IQ are good thinkers. Usually high IQ people use their thinking skills for logical thinking, arguments, critical thinking. They very
rarely use creative thinking. Thus high IQ is actually a blockage to creative thinking. It has also been found that those who have
average IQ can become better thinkers.
Misconception No.4:
Thinking ability, decision making ability and problem solving ability are inherent and there is very little we can do to develop
these.
Fact:
This is the most terrible misconception regarding thinking. In fact, Dr.Edward de Bono (and also many others) have proved that
thinking is a skill that can be enhanced by training and practice. Thus decision making, problem solving and creative thinking can
be developed and improved.
Errors in Thinking
It is necessary that we should be aware of the errors in thinking. There are five such errors in thinking: 1. Partialism 2. Adversary
Thinking 3. Time Scale Error 4. Initial Judgement and 5.Arrogance and Conceit.
1. Partialism
This error occurs when the thinker observes the problem through one perspective only. That is, the thinker examines only
one or two factors of the problem and arrives at a premature solution.
2. Adversary Thinking
This is a "you are wrong. So, I should be right." type of reasoning. Politicians are the masters in this type of thinking and
they use it to their advantage.
3. Time Scale Error
This is a kind of partialism in thinking in which the thinker sees the problem from a limited time-frame. It can be likened
to short-sightedness.

4. Initial Judgement
Here, the thinker becomes very subjective. Instead of considering the issue or problem objectively, the thinker
approaches it with prejudice or bias.
5. Arrogance and Conceit
This error is sometimes called the "Village Venus Effect" because like the villagers who think that the most beautiful girl in
the world is the most beautiful girl in their village, the thinker believes that there is no better solution other than that he
has already found. This blocks creativity. Not only individuals but societies and even the whole mankind sometimes fall
prey to this error. For example, before Einstein, the whole scientific community (and thus the whole mankind) believed
that time was absolute.
Creative Thinking
Creativity refers to the phenomenon whereby a person creates something new (a product, a solution, a work of art, a novel, a
joke, etc.) that has some kind of value. What counts as "new" may be in reference to the individual creator, or to the society or
domain within which the novelty occurs. What counts as "valuable" is similarly defined in a variety of ways.
creative thinking (the ability to create)
creative thinking: Ability to imagine or invent something new or adapt another idea/object. Involves exploring ideas, generating
possibilities, seeking different types of options and alternatives.
 Creative thinking represents a combination of logic and intuitive approaches
 Being creative means dealing with the aspects and possibilities of today and tomorrow
 That requires a person to be open to everything new, do not stick to things that we are all used to, do not adhere to
yesterday so much
 Creativity does not mean dreaming, it means productive managing of specific tasks.
 Only a creative approach to the problem solution can be successful.
Stages of creative process
 Orientation: Need identification, intention to create
 Preparation: Information collection, problem formulation
 Incubation: seeking solution, evaluation of variants, unconscious thinking
 Illumination : synthesis, creation of ideas
 Realization: transformation of the idea into reality
 Verification: evaluation, learning, improvement
 Problem Definition - including problem analysis, redefinition, and all aspects associated with defining the problem clearly.

 Idea Generation - The divergent process of coming up with ideas.
 Idea Selection - The convergent process of reducing all the many ideas into realistic solutions
 Idea Implementation - Turning the refined ideas in reality.
CREATIVITY STIMULATION
 Keep in touch with creative people
 Accommodate the effort to the targets
 Evaluate and appreciate the effort
 Protect creative employees
 Leave them peace and time
 Provide them with security
 Tolerate failures
 Maintain creative atmosphere
 Evaluate the creative ideas quickly
 Be persistent - nothing comes for free
CREATIVITY TECHNIQUES
 trial and error
 brainstorming
 Inspirational questions
 psychological-cognitive, such as:
◦ Lateral thinking (courtesy of Edward de Bono),
 the highly-structured, such as:
◦ TRIZ (the Theory of Inventive Problem-Solving);
◦ ARIZ (the Algorithm of Inventive Problem-Solving), both developed by the Russian scientist Genrich Altshuller;
and
◦ Computer-Aided Morphological analysis.
Problem Solving

Problem solving is a mental process which is part of the larger problem process that includes problem finding and problem
shaping. Considered the most complex of all intellectual functions, problem solving has been defined as higher-order cognitive
process that requires the modulation and control of more routine or fundamental skills.[1]
Problem solving occurs when an
organism or an artificial intelligence system needs to move from a given state to a desired goal state.
CREATIVE PROBLEM SOLVING PROCESS
STEP 1. State what appears to be the problem.
The real problem may not surface until facts have been gathered and analyzed. Therefore, start with what you assume to
be the problem, that can later be confirmed or corrected.
STEP 2. Gather facts, feelings and opinions
STEP 3. Restate the problem.
The real facts help make this possible, and provide supporting data.
The actual problem may, or may not be the same as stated in Step 1.
STEP 4. Identify alternative solutions.
Generate ideas. Do not eliminate any possible solutions until several have been discussed.
STEP 5. Evaluate alternatives
STEP 6. Implement the decision
STEP 7. Evaluate the results.
• Test the solution against the desired results.
• Make revisions if necessary.

Problem-solving techniques
Abstraction: solving the problem in a model of the system before applying it to the real system
Analogy: using a solution that solved an analogous problem
Brainstorming: (especially among groups of people) suggesting a large number of solutions or ideas and combining and
developing them until an optimum is found
Divide and conquer: breaking down a large, complex problem into smaller, solvable problems
Hypothesis testing: assuming a possible explanation to the problem and trying to prove (or, in some contexts, disprove) the
assumption
Lateral thinking: approaching solutions indirectly and creatively
Means-ends analysis: choosing an action at each step to move closer to the goal
Method of focal objects: synthesizing seemingly non-matching characteristics of different objects into something new
Morphological analysis: assessing the output and interactions of an entire system
Reduction: transforming the problem into another problem for which solutions exist
Research: employing existing ideas or adapting existing solutions to similar problems
Root cause analysis: eliminating the cause of the problem
Trial-and-error: testing possible solutions until the right one is found
Proof: try to prove that the problem cannot be solved. The point where the proof fails will be the starting point for solving it.
Lateral Thinking
Lateral thinking is solving problems through an indirect and creative approach, using reasoning that is not immediately obvious
and involving ideas that may not be obtainable by using only traditional step-by-step logic
Dr. de Bono speaks about two types of thinking -- Vertical thinking and Lateral thinking. Vertical thinking is high probability
thinking, whereas lateral thinking is low probability thinking. In the former type, the thinker selects the most logical solution
possible. This will be the one that is the most used and the most tested one. For example, suppose you want to cut a cake or hard
boiled egg into two. Using a knife or a sharp blade to cut it is the most probable and most logical solution. But there are other less
probable ways: for example, you can use a twine. The former is an example of a solution arrived at Vertical thinking while the
later is an example of a solution arrived at using Lateral thinking.

Dr. de Bono argues that creativity comes from Lateral thinking. He also says that it is possible to improve lateral thinking ( and
thus creativity) by deliberate application and practice of the techniques he has devised. He gives two main techniques for
improving our problem solving by lateral thinking:
1. Divide the Problem into Small Sub-Problems
This allows the thinker to perceive the problem in detail because he is able to approach each sub-problem individually
and thus he is able to consider more parameters.
2. Move Attention from One Part of the Problem to Another Part
When we move our attention from one part of the problem to another, it is possible to view the problem from a new
perspective. This would in turn help you solve the problem easily.
Lateral thinking and problem solving
Problem Solving: When something creates a problem, the performance or the status quo of the situation drops. Problem solving
deals with finding out what caused the problem and then figuring out ways to fix the problem. The objective is to get the situation
to where it should be.
For example, a production line has an established run rate of 1000 items per hour. Suddenly, the run rate drops to 800 items per
hour. Ideas as to why this happened and solutions to repair the production line must be thought of, such as giving the worker a
pay raise.
Creative Problem Solving: Using creativity, one must solve a problem in an indirect and unconventional manner.
For example, if a production line produced 1000 books per hour, creative problem solving could find ways to produce more books
per hour, use the production line, or reduce the cost to run the production line.
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 byaccidental chance or by studying and documenting real world
experience.
Lateral Thinking puzzles: These are puzzles that are supposed to demonstrate what lateral thinking is about. However any puzzle
that has only one solution is "not" lateral. While lateral thinking may help you construct such puzzles, the lateral thinking tools
will seldom help you solve puzzles.
Lateral Problem "Solving": Lateral thinking will often produce solutions whereby the problem appears as "obvious" in hindsight.
That lateral thinking will often lead to problems that you never knew you had, or it will solve simple problems that have a huge
potential.
For example, if a production line produced 1000 books per hour, lateral thinking may suggest that a drop in output to 800 would
lead to higher quality, more motivated workers etc. etc.

Management Technology Innovation Change

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