CREATIVITY & MANAGEMENT OF

INNOVATION

OVERVIEW

INTRODUCTION

DETERMINANT

MANAGING INNOVATION

CASE STUDY

DEFINITIONS

CREATIVITY

Creativity is defined as the production of new and useful ideas concerning products, services, processes and procedures by individuals or small groups of persons working together.

INNOVATION Innovation is introduction of a new idea into the marketplace in the form of a new product or service or new market or an improvement in organization or process.

DIFFERENCE
Creativity Innovation

thinking up new things

Creativity = Ideas often used in literature,music,art original thinking

doing new things

Innovation = Ideas + Action often used in management implementation of creative thinking

WHY CREATIVITY & INNOVATION

The highly competitive nature of todays business needs creative and innovative ideas for dominant success. Innovation drives growth and opportunity in new markets. Creativity and innovation is a prerequisite for success and perhaps even for survival. Creativity and innovation will be the most important factors in establishing and maintaining a competitive advantage.

CREATIVITY

ASPECTS OF CREATIVITY-4PS

PROCESS PRODUCT

PERSON
PLACE

DO IT IS A PROCESS FOR CREATIVITY

D - Define problem O - Open mind and apply creative techniques I - Identify best solution T - Transform

4 STAGES OF THE CREATIVE PROCESS

Preparation Research: Collect information or data. Incubation Percolation: Milling over collected information. Illumination Light Bulb Idea: Aha moment. Implementation Actual Making, creating: Verification.

CREATIVE PEOPLE IN ORGANIZATION

This creative group is divided to two different groups namely initiators and problem solvers. A person who initiates a course of action A person who start working when problem arises

Creative people can be said to have :

Originality Determination Flexibility Positive outlook

COMPONENTS OF INDIVIDUAL CREATIVITY

Expertise

Creativity Skills

C
Intrinsic Motivation

ORGANISATION CREATIVITY

Building Trusting Relationships

Creating Increasing the Future Energy & Effectiveness Initiative Innovation & Under Pressure Unique Potential

Success

INNOVATION

PROCESS OF INNOVATION
The Innovation process can be depicted as a series of funnels each getting progressively smaller. Typically sixty ideas into the top funnel only produces just one innovation. The funnels are labeled as the four phases in the process - idea generation, idea screening, feasibility and implementation.

TWO TYPES OF INNOVATION

Incremental Innovation:

Incremental innovation is generally exploiting existing ideas , like Pentium Dual Core shows and incremental on Pentium IV.

Radical Innovation:

Radical Innovation is like finding a commodity , something new to world like the transistors , these generally require R&D and take a lot of time.

WHERE DO INNOVATIVE IDEAS COME FROM?

Unsatisfied customers. Demographic changes in society.

Market changes
Knowledge based concepts Research and Development. Problem solving.

AREAS OF INNOVATION Product innovation New product categories, venture strategies Line extensions Improved products or services Example:Ipod from APPLE, Wiiu console from NINETENDO

Process innovation New processes and production techniques Quality and efficiency improvements Novel lean and cleaner production methods

Technology innovation Technology strategies and road-mapping Development of new technology new ways of technology commercialization and exploitation

Marketing innovation Innovative design and presentation techniques New forms of differentiation, positioning, and advertising Innovative distribution and customer service methods

Business Concept Innovation Radically reconceiving products and services, not just developing new products / services. Redefining market space. Redrawing industry boundaries.