Creativity,

Innovation and the

Marketplace
By Dr. W.A. Owusu-Ansah
Email: woansah@gmail.com
KNUST School of Business
MCS-651/15 Lecture IV Week 4

Learning objectives
To discuss creativity and the techniques for

creative problem solving

To understand innovation terminology and
measurement
To know to how to find innovation
To appreciate the role of innovative activity
for both business and economy
To consider the consumer behaviour when
introducing new product into the market

Understanding
Creativity

Creativity is the soul of entrepreneurship

Associated with the arts or with people of artistic abilities
Creativity is the application of a persons mental ability and
curiosity to discover something new
Act of making new relationships from old ideas (Koestler, 1964)
The ability to look at things differently (Keil, 1987)
Entrepreneurs exceptionally talented or creative to find business
idea
Myth untrue from two perspectives
creative ability universal lack of development of a)
conceptual/right side of brain or b) a positive, encouraging
environment, these opportunities dont flourish
Weisberg (1986) reports societal view on idea generation
Studies link high creativity to cognitive and affective
characteristics demystify creativity notion
For e.g. personality attributes of a creative person are openmindedness, willingness to surmount obstacles, moderate risktaking, intrinsic motivation, willingness to grow, and desire for
recognition (Sternberg,1988)
A review of over 30 definitions produce two characteristics
newness or uniqueness and value or utility (Cougar,1996)

brains hemis

LEFT HEMISPHERE RIGHT HEMISPHERE

Non-verbal (awareness of things,
Verbal (using words to
name, describe and define)

but minimal connection with words)

Analytical

(figuring things Synthesising (putting things as

out step-by-step & part-bythey are at present moment)
part)

Abstract

Seeing analogies

Rational

(drawing
conclusions based on reason
and facts)

Non-rational

Logical

Spatial

Linear

Intuitive

(taking out a
small bit of info to represent
a whole)

(drawing
conclusion based on logic)
(thinking in terms of

(seeing
likeness between things)
(not requiring a
basis of reason or facts; willingness to
suspend judgement)
(seeing where things are in
relation to other things, how parts go
together)
(making leaps of insight,

Ways to Develop Left & Right Hemis. Skills

LEFT-HEMISPHERE
SKILLS

RIGHT-HEMISPHERE SKILLS

1.

1. Using metaphors and analogies

to describe things and people in
your conversations and writings
2. Taking off your watch when you
are not working
3. Suspending your initial
judgement of ideas, new
acquaintances, movies, TV
programmes and so on
4. Recording your hunches,
feelings and intuitions and
calculating their accuracy
5. Detailed fantasizing and
visualising of things and
situations in the future

Step-by-step
planning of your
work and life
2. Reading ancient,
medieval and
scholastic
philosophy, legal
cases and books on
logic
3. Establishing
timetables for all of
your activities
4. Using and working
with a computer
programme

Creative blocks

The right
answer

The fallacy that there is only one correct

solution to a problem

Thats not
logical

The belief that logic is fine for the development of

Be practical

The tendency to allow practical considerations to kill

concepts, halt the search for ideas & deter one from
considering alternatives

Follow the
rules

Ignoring the fact that most revolutionary ideas are

disruptive violations of existing systems and beliefs

Avoid
ambiguity

Strict adherence to one fixed perspective on a

solution

To err is
wrong

Failure to see connection between errors and

innovation: when you fail, you learn what doesnt
work and can adjust

Play is
frivolous

Unwillingness to acknowledge the creative power of

play

ideas but stifles creativity

Thats not my Restriction of creativity through thinking i.e. overly

idea
narrow and focused
Dont be

Unwillingness to think unconventionally, fear of tag

Introduction: Case Study: Islanders

Small firms can no longer afford to ignore

technological renewal and all other forms of

innovation.
How can one make do without high-performance
machines when most of ones competitors have
invested in them?
Standing still has become a much more dangerous
strategy than investing heavily to move forward.
An innovation can produce a chain of reaction
What is INNOVATION?
So many different things have been said and
written about innovation that it is important
to begin by clarifying the meaning of key
terms.

Defining innovation

Innovare to make something new

Modern day a process of turning ideas into new opportunities for

value creation and of putting these into widely use in practice

Generation of new ideas vs. Successful exploitation of new ideas
Three main conceptualisation
Innovation as achievement technological and temporal context
i.e. significant leap forward in the use of technology; risky process
in terms of technological & market uncertainties
Innovation as consequences of achievements impact
unintended e.g. Bells view on telephone;
In Economics terms= positive externalities or spillover
Innovation as dynamic capabilities most compelling, as capacity
to change in other words- process, or a mindset that encourages
purposeful behaviour and practices
- Ability and willingness to learn
-Specific tool... Exploit change as an opportunity for a different
business or service; capable of being presented as discipline,
being learned and being practised (Drucker, 1985)

Misinterpretations of innovation
Innovation = invention (creative idea versus putting ideas to

work) e.g Joseph Swan and Edison and light bulb

Innovation = new products or services only
Yes, but ...
New products or services, new methods of production,
opening of new market, new marketing methods, new
source of supply of raw materials or half-manufactured
goods, operating methods
Innovation = original
It doesnt take place in a vacuum; creative thinking
connects existing concepts but far for others to see
Innovation = one-off inspiration
A gradual process that builds on something new and
worthwhile over time
NB: In some instance, innovator has now become a
manager

Innovation is not easy

History of product and process innovations is

littered with failed good ideas

1952 Ford engineers worked on a new car to
counter mid-size models offered by GM & Chrysler
the E car (cost $450m with 110,845 Edsels
produced)
In late 1990s, Motorola launched an ambitious
venture to offer mobile communication literally
everywhere on the planet including Sahara Desert
or top of Mount Everest($7b to put 88 satellites into
orbit). Handset cost $3000; $50M to take down
Product innovation failure rates range from 30% to
as high as 95%; acceptable average is 38%
Yet, not all failure are that dramatic

...But it is imperative
Lack of product and process renewal

threatens survival chances

Average corporate survival rate for large
companies is about half that of human
being (Shell, 1980s)
60% Fortune 500 go under in 10 years
Some firms have had to change
dramatically to stay in business e.g.
Wellington boots and toilet paper, now
most successful communication company;
Nokia began life as a lumber company

Measuring
innovation
Innovation relative and contextual and not an absolute
concept
Innovation as the successful exploitation of new ideas
begs two obvious questions
What does successful mean?
What constitutes a new idea?
Assessing or measuring difference between true and
product differentiation is not easy
Notwithstanding a wide range of measures to define it is in
place
EC uses 20 indicators European innovation scoreboard
4 factors regarding product innovation:
conceptual novelty;
technological uncertainty;
market uncertainty ; and
the extent of sunk costs to project

Perspective

Innovation indicator

Notes

Human
resources

Science and engineering

graduates
Population with tertiary
education
Participation in life-long
learning
Employment in medium-high
& high tech manufacturing
Employment in high tech
services

% of 20-29 years age

class
% of 25-64 years age
class
% of 25-64years age
class

Public R&D expenditures

Business expenditures on
R&D
European Patent Office (EPO)
high tech applications
EPO patent applications

% of GDP
% of GDP
Per Million population

SMEs innovating in house

SMEs involved in innovation
co-operation

% of all SMEs

Knowledge
creation

Transmission
and
application of
knowledge

% of total workforce
% of total workforce

Per million population

7 Sources of innovative
opportunity
The unexpected
Unexpected success
Unexpected failure
The incongrous discrepancy what is &

everybody expects
Process need necessity is the mother of
invention
Industrial and market structures
Changes in perception
New knowledge

Innovating for the marketplace

Why market could be missed?
Technology and advances in human knowledge

and skills
Modern business a complicated mixture of force
and influence
Requirement of systems and policies
More levels of management needed
Approaches to market
product-based Market-based
Combination of resources available & match to an
idea for new product or services