Creativity and innovation

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CREATIVITY AND

INNOVATION


SYLLABUS Creativity and Innovation: Creativity,

Exercises on Creativity, Source of New Idea, Ideas into Opportunities.

Creative problem solving: Heuristics, Brainstorming, Synectics, Value Analysis

Innovation and Entrepreneurship: Profits and Innovation, Globalization, Modules of Innovation, Sources and Transfer of Innovation, Why Innovate, What Innovation, How to Innovate, Who Innovates


CREATIVITY Creativity is any act, idea, idea or product

that changes an existing domain or that transforms an existing domain into new one.

Creativity can be described as the discovery of something that is novel but also useful or relevant or economical , valuable.


TYPES OF CREATIVITY Primary creativity : deals with spontaneous

creations. Secondary creativity : is more deliberate

and skilled as in the application of ideas and insight to inventions.

Technical creativity : aims at finding out improvement in a process so as to improve efficiency.

Inventive creativity : aims at making or devising new combination of ingredients


Innovative creativity : it involves for reaching application of more basic ideas such as management application of principles of psychology to develop a much more effective system for motivating staff.

Emergentive creativity : it consist of new revolutionary principles for an art or science such as psycho- analytical concepts of Freud.


CREATIVE PROCESS

Preparation

Incubation

Insight

Evaluation

Elaboration


CREATIVE PROCESS Preparation : successful creations are preceded by

investigation and information gathering. It can be achieved by gathering information from journals, attending meeting seminars etc.

Incubation : creative person allows their sub consciousness mind to dwell over tremendous amount of ideas and information accumulated during the preparation phase.

Insight : this is the moment when the person is able to locate solution to their problems. Generally in most of the cases ideas comes to person in incremental way. The person improves on solution slowly and steadily.


Evaluation : this phase is regarded as the most emotional trying part, when one feels uncertain and insecure and thinks about reaction of other people.

Elaboration : this is the most difficult step of creativity endeavour and requires great self discipline, dedication and perseverance.


BARRIERS TO CREATIVITY Resistance to change : people just get used to

doing a particular work in customized manner and they are just opposed to any new idea or change.

Lack of initiative : organizational managers from top to bottom are just opposed to giving initiative to their subordinates fearing that it will undermine their authority.

Restriction on interaction : a free and open environment provides members an opportunity to interact with members of their own and other groups. Such interaction facilitates exchange of ideas and information required for creative work where as in restricted environment creativity is adversely effected.


Fear of something going wrong : many new ideas may go wrong or prove impractical. Whenever creative work is to be undertaken the possibility of success or failure is always there.

Lack of recognition : failure to recognize or reward creativity acts as de motivating factor. Hard work put in by creative people must be compensated with adequate financial and non financial rewards.

Resource constraints : creativity demands sufficient availability of resources. Absence of adequate resources may dampen the spirit of creativity.


SOURCES OF NEW IDEAS Basic research : all firms are engaged in some kind

of basic research and development , which can lead to development of new product ideas that have already passed the initial screening stage.

Production stage : workers actively engaged in the production of products can suggest certain modifications and improvements. These workers can provide ideas aimed at improving quality , cost and performance of potential product.

Sales force : sales representative are directly in touch with the customers and are thus better equipped to take note of customer needs by this they can provide better product development idea.


Management : management team based on their knowledge, skill and experience can come out with new ideas for product development.

Magazines and trade journal : useful ideas about new products can be obtained from these magazines and trade journals.

Competitors : in order to survive in present day competitive environment, it is in the interest of the entrepreneur to keep a eye on activities of his rivals.


Buyers : an entrepreneur while keeping track of the requirements of the consumers can definitely get useful ideas aimed at developing a better product.

Sellers : can provide idea for new product development as they act as link between producers and consumers and are better equipped to provide required information.

Overseas market : a producer interested in taking care of foreign market can do it in better manner by getting right ideas aimed at improving product acceptability in these markets.


IDEAS INTO OPPORTUNITIES

New product

idea

Idea screening

Concept developme

nt

Potential analysis

Product developme

nt

Test marketing

Commercialization


IDEAS INTO OPPORTUNITIES New product idea : an attempt is made to visualize

the product. An in depth study may be undertaken to anticipate features of the proposed product. Ideas may be contributed by scientists, professional designers, rivals, customers, sales force etc.

Idea screening : under this step detailed investigation of various ideas is carried on. Those ideas which offer less scope are dropped. Most promising ideas are chosen for product development.

Concept development and testing : all ideas chosen after preliminary screening are subjected to in depth study. These ideas are developed into mature product concepts.


Business potential analysis : after choosing best product idea, detailed investigation is carried out to find its market potential, gestation period, capital investment, and expected rate of return.

Product development : after clearing business potential analysis tests concrete steps are taken for giving practical shapes to the proposed product.

Test marketing : test marketing involves placing fully developed new product for sale and observing its actual performance under propose marketing plan.

Commercialization : is the actual introduction of the product into market place with all the related decisions and resources commitment.


CREATIVE PROBLEM SOLVING TECHNIQUES

Creative problem solving

Brain storming

heuristic Synectics

Value analysis


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


BASIC HEURISTICS DIRECTED TOWARDS CREATIVITY

Make it habit to purposely pause and notice things. Focus on your creative energies on just few topic

areas that you genuinely create about and work on these purposeful.

Avoid being too narrow in the way you define your problem or topic.

Try to come up with original and useful ideas by making novel associations among what you already know.

When you need creative ideas , remember attention escape and movement.


Pause and carefully examine ideas that make you laugh the first time hear them.

Recognize that your streams of thought and patterns of judgement are inherently right or wrong, they are just what you think now based on primarily on patterns from your past.

Make a deliberate effort to harvest, develop and implement at least a few of the ideas you generate.


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


CHARACTERISTICS OF BRAIN STORMING This technique is not suitable where the problem has

a unique solution which can be found through analysis or evaluation.

brain storming can take place only when there is specific topic.

Brain storming results in generation of numerous ideas out of which a few ideas are chosen for in depth investigation.

Brain storming provides ample opportunities to participants to put forth various suggestions for solving specific problems.

Brain storming enables participation to freely share different ideas.


PRINCIPLES OF BRAIN STORMING During the generation phase of ideas,

evaluation process is deferred. The second principle is based on ‘quantity

begets quality’ right environment must be provided for generating maximum number of ideas.

Brain storming brings forth novel and different ideas. Novels ideas in certain cases may not appear to be practical ideas.

It is better to appreciate ideas of others as well as ones own previous ideas.


Synectics : has been adopted by the Greek word synecticos incorporating diverse elements. synectics is applied in finding innovative practices to a number of in traceable technical problems. Major analogies under this technique are :

Direct analogy : it involves discussing analogy of the problem situation from very different field. It involves direct comparison under discussion with some other similar phenomenon.


Personal analogy : under this problem solver is expected to project himself into situation and report back his experience of the particular situation like what he feels, sees, hears, thinks etc.

Fantasy analogy : under this concerned person is asked to release his imagination from real life constraints. Group members are used to fantasize some perfect solutions even if it is contrary to known scientific principles.

Symbolic analogy : it requires group members to poetic or paradoxical phrases for situation. The leader is expected to take key word or even undertake some decisions and ask the group members to come up with short proactive phrases that capture word under discussion.


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


COMPONENTS OF VALUE CHAIN ANALYSIS Value : the ratio between function for customer

satisfaction and the cost of that function. Function : the effect produced by a product or by

one of its elements , in order to satisfy customer needs.

Value analysis : methodology to increase the value of an object to object to be analyzed could be an existing or new product or process and it is usually accomplished by a team following work plan.

Need : something that is necessary or desired by the customer.


VALUE ANALYSIS PROCESS Orientation / preparation : refers to collecting the

basic information required for the process and various stages at which value addition is possible in process.

Information : collection of data in detail in relation to every step in value addition process.

Analysis : of various options of value addition Innovation and creativity : refers to implementing new

or improved way of performing every step in the process.

Evaluation : understanding effectiveness of change implemented in process.

Implementation and monitoring : refers to after screening of improvised method it is to be implemented and monitored for its working as per expectation.


PROFITS AND INNOVATION Entrepreneur is one who always searches for

changes and responds to it and exploits it as an opportunity. Innovation is treated as an instrument of entrepreneurship. An entrepreneur innovates and creates resources until someone finds a use for it and endows economic value to it.


ROLE OF ENTREPRENEURS An entrepreneur must be an innovator as well as leader. He must be capable of analyzing and exploiting the

opportunities. An entrepreneur should innovate for the present period

and not for the future. Innovation must be easy to understand otherwise it may

not give the desired result. An entrepreneur must posses the knowledge, ingenuity,

diligence, persistence, and commitment to innovation. An entrepreneur must mobilize resources and allocate

them to make a commercial gains from the opportunities indentified.


MODULES OF INNOVATION Innovation : it is the production of totally new

product service or process so far untried. Extension : it involves new use or application of

an already existing product, service or process. Duplication : it is the replication of an already

existing product, service or process. It is not merely copying but adding something new with creative touch to enhance or improve the existing concept.

Synthesis : it is the combination of existing concepts and ideas and devising a way so that together they may form a new application.


SOURCES AND TRANSFER OF INNOVATION Unexpected occurrences : sometimes unexpected

success or failure prove to be a major innovative surprise for the enterprise. These happenings are normally anticipated and unplanned.

Incongruities : these occurs whenever a gap or difference exists between the expectations and reality. The gap motivates the entrepreneur to innovate with all the more vigour.

Process needs : these needs are created whenever situation and surrounding circumstances generate demand for the innovation. Entrepreneurs are prompted to innovate to satisfy the requirement of process needs.


Industry and market changes :changes in consumer tastes, fashions, advancement in technology result in change in structure and design of product. These changes generate tremendous opportunities for innovation and improvements.

Demographic changes : like changes in population, education, occupation, urbanisation etc, create entrepreneurial opportunities.

Perceptual change : it is reflected in the change in peoples attitude, feelings, interpretation. Change in perception does not change, the object or fact, but changes the meaning or attitude towards the particular concept.

Knowledge based concept : these are basis for the development and creation of new products and market. These are time consuming as these need testing and modifications.


HOW TO INNOVATE Organise for paid experimentation : examine,

revamp entrenched routines, organizational boundaries and incentives to encourage rapid experimentation.

Fail early and often but avoid mistakes : embrace failures that occur early in the development process and advance knowledge significantly.

Anticipate exploit early information :recognize the full value of front loading, identifying problems up stream, where they are easier and cheaper to solve.

Combine new and traditional technologies : do not assume that new technology will necessarily replace and established one. New and traditional technologies are best used in concept.


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

communication Active information seeker


GLOBALIZATION Globalization is the system of interaction

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


ADVANTAGES OF GLOBALIZATION Power of the WTO, IMF, and WB. According to experts,

another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB).

Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labour.

Greater Outsourcing of Business Processes to Other Countries. China, India, and the Philippines are tremendously benefiting from this trend of global business outsourcing. Global companies in the US and Europe take advantage of the cheaper labour and highly-skilled workers that countries like India and the Philippines can offer.


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


Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically.

Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology.


DISADVANTAGES OF GLOBALIZATION Developed countries can stifle development of

undeveloped and under-developed countries. Economic depression in one country can trigger

adverse reaction across the globe. Companies face much greater competition. This can

put smaller companies, at a disadvantage as they do not have resources to compete at global scale

Another major damage of globalization is that some cultures are getting lost. The cultures of the countries that have more economic power are more dominant than others. Because, wealthy countries produce many things that can affect cultures, for example, clothes, movies and technologic products


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Date post:	30-Oct-2014
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