8/2/2019 ED - Module2

1/61

Creativity and Innovation

Module: 2

8/2/2019 ED - Module2

2/61

What ideas do you

associate with creativity? Produce something

Original idea

Ingenuity

Imagination

Thinking out-of-the-box

Craziness

Extraordinary

Innovation

8/2/2019 ED - Module2

3/61

What is creativity?

To be creative, a solution must satisfy one or more of the

following conditions:

1. The product of the thinking has novelty or value (either for the thinker

of for his culture)

2. The thinking is unconventional in the sense that it requiresmodification of rejection of previously accepted ideas

3. The thinking requires high motivation and persistence, taking place

either over a considerable span of time (continuously or

intermittently) or at high intensity

4. The problem as initially posed was vague and ill defined, so that part of

the task was to formulate the problem itself.

8/2/2019 ED - Module2

4/61

What is creativity?

To be classified as creative, an improvement

must:

1.Be new or unique

2.Have utility or value

8/2/2019 ED - Module2

5/61

Unstructured vs.

Structured creativity Spontaneity

Inspiration

Accident

Serendipity

Dream

Write ideas and file

them away

Training

Preparation Practice

Technique

8/2/2019 ED - Module2

6/61

Releasing creativity

Creativity and innovation involve risk

Taking risks may lead to failure

Society and Education has penalized failure Failure is opportunity to learn

8/2/2019 ED - Module2

7/61

Partial truths

Risk taking involves uncertainty but

Success can only come from new ideas which

can be implemented

Failure and success are tightly bound in the

exploration of new ideas

Partial truths extracted from each failure, ifrecognized and incorporated into subsequent

actions, help us attain our goals

8/2/2019 ED - Module2

8/61

Three rules of

innovation

STRAFE: Success Through Rapid Accelerated

Failure and Entrepreneuring

GIN: Generate Ideas in Numbers

Fast History: Any successful design is transient

and so are ideas, thus, diversify ideas and

concepts

8/2/2019 ED - Module2

9/61

Creativity: A Definition

Creativity is . the ability or power to

createto bring into existence, to invest

with a new form, to produce throughimaginative skill, to make or bring into

existence something new.

8/2/2019 ED - Module2

10/61

Creativity and Innovation

Creativity (Invention) - creation of new ideas,

approaches, products, processes, and

technologies not previously known to exist

Innovation is the implementation of creative

inspiration

8/2/2019 ED - Module2

11/61

Sources of New Ideas

Consumers

Potential entrepreneurs should continually pay

close attention to potential customers.

Distribution channels

Members of the distribution channels are also

excellent sources for new ideas because of their

familiarity with the needs of the market.

8/2/2019 ED - Module2

12/61

Sources of New Ideas

Research and development

The largest source of new ideas is the entrepreneurs

own research and development.

Existing products and services Potential entrepreneurs and intrapreneurs should

also establish a formal method for monitoring and

evaluating competitive products and services on the

market. Frequently these analysis uncover ways to

improve these offerings that may result in a new

product or service that has more market appeal

8/2/2019 ED - Module2

13/61

Creative Problem Solving

8/2/2019 ED - Module2

14/61

Methods of Generating Ideas

Focus Groups

Brainstorming

Problem Inventory Analysis

8/2/2019 ED - Module2

15/61

Creative problem solving

Techniques of creative problem solving are

Heuristic method

Synectics method

Brainstorming method

8/2/2019 ED - Module2

16/61

Heuristic method

Heuristic is an adjective for experience-based

techniques that help in problem solving, learning and

discovery.

A heuristic method is used to rapidly come to asolution that is hoped to be close to the best possible

answer, or 'optimal solution'.

A heuristic as a noun is a "rule of thumb", an

educated guess, an intuitive judgment or simply

common sense.

8/2/2019 ED - Module2

17/61

Heuristic method

A heuristic is a general way of solving a

problem. Heuristics as a noun is another name

for heuristic methods.

In more precise terms, heuristics stand for

strategies using readily accessible, though

loosely applicable, information to control

problem solving in human beings andmachines.

8/2/2019 ED - Module2

18/61

Rule of thumb

A rule of thumb is a principle with broad

application that is not intended to be strictly

accurate or reliable for every situation.

The formal term for these rules of thumb is

"heuristics".

8/2/2019 ED - Module2

19/61

Using Rules of Thumb

Most of us use "rules of thumb" in all sorts of areas

of our daily lives. "When the needle on the fuel level

indicator gets to the red, I know it'll last at least

another 20 miles", These rough rules, based on experience, are

invaluable because they help us to make decisions

without further detailed fact-finding: Drivers know

they don't need to divert immediately to find a fuelstation

8/2/2019 ED - Module2

20/61

Using Rules of Thumb

But no one expects these rules to be 100% accurate:

If the car ran out of fuel in 18 miles, the driver

wouldn't be particularly surprised.

This is because rules of thumb are only used insituations where the risks associated with using a

"good enough" approximation are acceptable. No

one would use a rule of thumb such as this fuel

usage one for a F1 racing car: They'd do a detailedanalysis of the exact amount required to cover the

race distance.

8/2/2019 ED - Module2

21/61

When to Use the Tool

Heuristic is a model which offers only a limited

representation of reality, it should only be used when

the speed or low cost of using it makes it better value

than using a detailed set of data. So heuristics are often used in calculating estimates,

for proof-of-concept prototypes, or for filtering a set

of options so that you are left with a shortlist of a

manageable size.

8/2/2019 ED - Module2

22/61

Constructing a Heuristic

Heuristics need to be formalized if they are to

be most useful. This raises them above the

level of "gut instinct", and it also means that

they can be shared with other people.

8/2/2019 ED - Module2

23/61

Synectics method

Synectics is a creativity and problem solving process

which combines a structured approach to creativity

with the freewheeling problem-solving approach

used in techniques like brainstorming. Synectics is based on a simple concept for problem

solving and creative thinking - you need to generate

ideas, and you need to evaluate ideas.

8/2/2019 ED - Module2

24/61

Synectics method

Synectics incorporates the brainstorming

principle ofsuspending judgment and extends

it to alternative problem definitions, goals and

wishes.

It also encourages suspending judgment when

listening, so that associations that might

trigger new ideas are not dismissed asirrelevant.

8/2/2019 ED - Module2

25/61

Preliminary planning

In advance, hold a preliminary planning meeting withthe problem owner(s).

This checks that there are genuine problem owners,

wanting new options that they themselves can

implement, within their authority; helps you to understand the problem-owners' perceptions

of the problem area;

gives a feel for the number and quality of solutions

needed;

helps to ensure realistic expectations about results;

and allows you to agree team membership.

8/2/2019 ED - Module2

26/61

Procedure during the session

Problem owner provides headline and wish: They describe the issue, how it is experienced, the background, what

has been tried, and the possible scope of action.

It is then expressed in one or more big wish statements of the form:

I wish (IW)... or How to (H2) ....

That this is not a problem definition but a wish reflecting the way the

issue is experienced. The group listen imaginatively, rather than

analytically.

8/2/2019 ED - Module2

27/61

Procedure during the session

Group generates large numbers of springboards:

The mood here should be expansive and unconstrained. The

springboards use the same formats as the big wish (IW, H2, etc.).

They are not ideas for solutions, but articulate further wishes to open

up space for invention: A wide range of springboard triggering techniques have been

developed, e.g. various uses of Analogies & others ( Random Stimuli,

Drawing techniques, etc.)

8/2/2019 ED - Module2

28/61

Procedure during the session

Select an interesting springboard: The mood now switches to a more focused approach than in Steps 1-2.

Problem owner and group members choose their favorite.

springboards (more on the basis of interest or appeal than on the

basis of logical relevance). They share their choices, but final choice rests with the problem-

owner. However, the process can always be repeated, so the choice is

not critical.

The assumption is that within any springboard will be creative

possibilities that can usefully be explored.

8/2/2019 ED - Module2

29/61

Procedure during the session

Ideas to help achieve the selected springboard are

generated, using the trigger techniques mentioned

in Step 2 (or any other idea-generation methods).

The problem-owner selects some that seeminteresting.

Check understanding of these by paraphrasing them

and checking with their authors until the paraphrase

is correct. An idea is selected for the ItemisedResponse.

8/2/2019 ED - Module2

30/61

Procedure during the session

Itemised response.

Every conceivable positive features of the selected idea is

listed. Then (and only then), a single concern / problem /

issue is expressed as a problem for solution (e.g. How to...). Solutions for these are expressed by all in terms of

What you do is (WYDI)....

Recycle or end:

Back to 4. until sufficient ideas for this spring board havebeen explored. Then back to 3. for another springboard.

Cycle until the problem-solver has a solution s/he is happy

to run with, or until time runs out.

8/2/2019 ED - Module2

31/61

Brainstorming method

Process:

Pre-meeting to define the problem

Warm-up session

- may include problem re-definition

Brainstorming session

Subsequent acquisition of ideas

Select of most promising ideas

Develop selected ideas

Verification & presentation of selected ideas

8/2/2019 ED - Module2

32/61

Brainstorming method

No criticism allowed

Evaluate ideas later

Free-wheeling encouraged

the wilder the idea the better

Quantity of ideas wanted

the greater the number of ideas the better

Combination & improvement of ideas try to build on each others ideas

8/2/2019 ED - Module2

33/61

When to use Brainstorming

Finding a name for a new product/service

Finding alternative uses/new markets

Improving products/service/processes

Finding more time/space/resources

Potential problem analysis

Obtaining a cross section of views on a

specific topic

8/2/2019 ED - Module2

34/61

When NOT to use Brainstorming

Not suitable for complex problems

For problems requiring a high level of

expertise

For problems involving manipulation or

motivation of people

For problems where written materials need to

be created or considered

8/2/2019 ED - Module2

35/61

Interrogatories (5Ws/H)

Why

How

When

Where

Who

What

8/2/2019 ED - Module2

36/61

Associations/Images

Technique1. Leader assists group in identifying the problem or

opportunity to be expanded

2. Leader asks participants to select a solution to the problem,

phrased in the form of a goal or wish

3. Leader asks the group to think of a world that is remote from

the world of the problem.

4. Leader request to set aside the problem and goal/wish

developed and to lists associations and images that

characterize the remote world

8/2/2019 ED - Module2

37/61

5. Leader directs the group to relate the list of associations and

images of the remote world to the world of the problem

6. Leader directs group to develop and applying them in a more

realistic way without diluting the innovation

7. Group selects and implements appealing ideas developed in

step 6.

8/2/2019 ED - Module2

38/61

Wishful thinking

1. Develop a problem statement

2. Open solution space to all possibilities, i.e.

anything is possible

3. State alternative in terms of a wish or fantasy

4. Convert each wishful statement to a more

practical one

5. Move on to the normal analytical problem

solving approach to develop a solution

/

8/2/2019 ED - Module2

39/61

Analogy/Metaphor

technique

1. Withholding evaluation, generate a list of objects,persons, situations or actions that are similar but

unrelated to problem

2. Select one of the analogies and describe it in detail(avoid any reference to original problem)

3. Examine items and translate them into statements

that apply to the problem

4. Examine each statement and discuss its application

to the problem

8/2/2019 ED - Module2

40/61

Innovation & Entrepreneurship

8/2/2019 ED - Module2

41/61

How is Profits and Innovation

linked?

8/2/2019 ED - Module2

42/61

Globalization & Innovation

Impact of globalization on todays business

Like anything else in the business world, globalization brings both

opportunities and threats.

An analysis of the current globalization issues clearly shows that while

rapidly growing economies like Brazil, Russia, India, and China (BRIC)have provided new markets for auto-makers, consumer

goods/oil/software/hardware companies, etc., these countries have

also become excellent sources of cheap labor and raw materials.

The right approach for a business leader anywhere on the globe today

is to see globalization through the lens of the business model: What are new opportunities being created for my business?

What are the new threats for my business?

How do I change my business model so that I can take advantage of the new

opportunities and minimize the risk exposure from threats?

8/2/2019 ED - Module2

43/61

Globalization & Innovation

How to thrive in the rapidly globalizing world?

Globalization is merely an external force driving change in the

business environment. No amount of opposition or prayers or

wishes will make it go away.

The smartest companies (think General Electric and many

others) are simply reinventing their business models to take

advantage of new opportunities and managing the risks of

global competition.

Only when a business manages globalization, does it thrive.Anything else is a distraction.

8/2/2019 ED - Module2

44/61

Globalization & Innovation

This brings us to the topic of the role that innovation plays in

the global economy.

Innovation is the process of adopting a new thing, idea, or

behavior pattern, and since global economy changes so

rapidly in so many complex ways today that innovation has tobe part of a company's DNA from day one and can be

managed literally in real time.

Only an innovative company can thrive in this environment.

S f I i

8/2/2019 ED - Module2

45/61

Sources of Innovation

According to Peter Drucker

The unexpected. The unexpected success, failure or outside

event.

The incongruity-- between reality as it actually is and reality

as it is assumed to be or as it "ought to be."

Innovation based on process need.

Changes in industry structure or market structure that catch

everyone unawares.

Demographics-- population changes.

Changes in perception, mood and meaning.

New knowledge, both scientific and nonscientific.

8/2/2019 ED - Module2

46/61

UNEXPECTED EVENTS

Unexpected events can be failures as well as successes.

The Unexpected. Look to see if a particular product or service

has been in greater or lesser demand than anticipated. If so,

ask, Why? What would it mean to us if we exploited the

unexpected success? What would we have to do to convert itinto an opportunity? Set aside time to discuss unexpected

success or failures. Do it for your clients, too.

For example,

The development of the very successful Sony Walkman was the resultof the CEO spending time in New York and noticing young people

carrying portable radios on their shoulders.

8/2/2019 ED - Module2

47/61

INCONGRUITIES

Incongruities result from a difference between perception andreality.

Incongruities or conflicts between opposing functions,

requirements or values may be the start of an innovation.

For example, Federal Express was able to capitalize onconsumer dissatisfaction with the U.S. Postal Service and

demonstrate that individuals and companies were willing to

pay a premium for overnight delivery of packages and

documents.

For example the request for a small car with still enough

space on the inside seems to be incongruent. This however

was solved in a new design as the NANO

8/2/2019 ED - Module2

48/61

PROCESS NEEDS

Process need innovations are those which are created to

support some other process or product.

This one is task focused rather than situation focused. A

process is perfected or redesigned or a weak link replaced.

For example, The development of the ATM (automatic teller

machine) and now web-based and Internet banking options

allow individuals to do their banking when the bank is closed

and without relying on tellers being available. This has freed

tellers from performing many routine functions such ascashing checks and has improved both efficiency and profit

margins for banks.

MARKET AND INDUSTRY

8/2/2019 ED - Module2

49/61

MARKET AND INDUSTRY

STRUCTURE CHANGES Industry structures change in response to growth and changes

in the marketplace.

The development of the personal computer also had a far-

reaching impact on the computer industry as a whole. Until

the personal computer, manufacturers of large mainframecomputers, terminals, and software developed for specific

uses within a firm dominated the computer industry. With the

adoption of the personal computer and advent of the laptop

computer, the composition of computer sales and marketingchanged dramatically

8/2/2019 ED - Module2

50/61

DEMOGRAPHIC CHANGES

Demographics have long been a major source

of innovation creating opportunities for new

types of products and services.

Changes in population, age structure,

educational status, income.

8/2/2019 ED - Module2

51/61

CHANGES IN PERCEPTION

An example of changes in perception as source of innovation

is the following.

In older days health was seen as related to body mass, meaning fatter

people were perceived as more healthy.

In the last century this perception changed as a result of medicalstudys that revealed that overweight was a risk factor.

Since that time many light products have come to the market.

Many substitutes of sugar have been developed such as Nutrasweet.

8/2/2019 ED - Module2

52/61

NEW KNOWLEDGE.

New knowledge or technology is one of the strongest forces for

innovation. Many companies, of all sizes and levels of sophistication, now have a web

presence on the Internet with the capability of connecting their products

with customers nearby or on the other side of the globe.

No longer are consumers limited to the daytime hours for their activities;

online stock trading, shopping, and banking are examples of servicesthat are accessible at any time of day or night via the Internet.

Other opportunities are being explored in the fields like nanotechnology.

These technologies and systems will develop even further as consumers

continue to demand new and innovative products and immediate access

to information, goods and services.

Why Innovate?

8/2/2019 ED - Module2

53/61

Why Innovate?

Why Innovate?

Today, more than ever, we need Innovators.

Every business and organisation is trying to deal with the impacts of

globalization, a changing workforce and how to make the transition to

a service based "knowledge economy".

It will be the creativity and entrepreneurship of a breed of Innovation.

Leaders who will develop the new products, services and ways of

working needed to achieve sales, added value, customer satisfaction

and an employment base dominated by high skilled, well paid

knowledge-intensive jobs in the most effective way.

However such individuals are in short supply?

8/2/2019 ED - Module2

54/61

What is Innovation?

What is Innovation?

It is important to stress that innovation is no longer just

about R&D in relation to product development and

improvement but also relates to service, process and

people improvement.

Process innovation is made possible by creative use of

systems, and involvement of people.

All managers have to continuously improve their business

through creating a climate for innovation embracing

culture, workplace and the skills of managers and staff.

8/2/2019 ED - Module2

55/61

What is Innovation?

There is a view that without highly creative managers

there can be no highly creative organisation.

However the constraints to developing the climate are

low awareness of benefits, skills and practices

poor access to information regarding innovation

Only few managers are skilled in developing and operating

innovative practices.

8/2/2019 ED - Module2

56/61

How to Innovate!

This step-by-step method helps you invent new products or

services using templates. Templates channel your creative

thinking so you can innovate in a completely new way. It is not

brainstorming. It is a structured process to focus your creative

output. The way it works is by creating a hypothetical solution first,

and then imagining a problem that it solves. This is exactly

opposite of the traditional way people invent.

8/2/2019 ED - Module2

57/61

How to Innovate

Usually, we start with a problem, then we try

to invent solutions to it. That is not always

effective because many times we do not know

all the problems consumers have when using aproduct or service.

When reverse the direction (SOLUTION-TO-

PROBLEM), we uncover many new usefulproblems worth solving, and we have

an innovative solution to apply to it.

8/2/2019 ED - Module2

58/61

How to Innovate

1. Select a product or service to innovate.

2. Create a list of its components.

3. Apply a TEMPLATE to each component. This creates a

VIRTUAL PRODUCT. It is virtual because it does not exist. It

should not seem to make any sense to you at first.

4. Take the VIRTUAL PRODUCT and think of all the ways it could

be useful. What problems does it solve? What benefits does

it offer? Who would use it?

5. Repeat the process using a different component.

6. Repeat the entire process using a different TEMPLATE.

8/2/2019 ED - Module2

59/61

Here are the TEMPLATES:

SUBTRACTION: removing an essential component and

keeping only what is left

MULTIPLICATION: making a copy of a component but

changing it in some way

TASK UNIFICATION: assigning an additional task to an existing

component - giving it a new job in addition to its existing job

8/2/2019 ED - Module2

60/61

Apply a TEMPLATE: (example)

SUBTRACTION: Imagine a cell phone without the earpiece (so

the cell phone cannot make any sound). This is our VIRTUAL

PRODUCT. Now imagine what it would be good for. Ask

yourself these questions:

Who would use a cell phone that did not have sound?

What usage situations or social situations would this be

particularly useful for?

What would be the benefit?

How would it work?

Apply a TEMPLATE: (example)

8/2/2019 ED - Module2

61/61

Apply a TEMPLATE: (example)

THE IDEA: It is a new kind of cell phone that is only for SMS

texting and Twittering(sounds). It has a different rate plan

than regular cell phones. It has a keyboard that is optimized

for fast inputing. It has an excellent address book and screen

display so that you can send texts and tweets very fast. Thescreen is large so you can share it with other people.

Now repeat this process for each component and each

TEMPLATE. Keep good notes of your new ideas. Combine

ideas together to create completely new-to-the-worldconcepts for a cell phone!