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CREATIVITY ANDCREATIVITY AND

INNOVATIONINNOVATION

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CREATIVITY

Generation of new ideas

Definition:

The capability of producing new solutions in the

intellectual way to solve problem. Create a new idea, concept, or association, from

preexisting or specifically created ones.

The phenomenon whereby a person creates something

new that has some kind of value.

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Exercises on Creativity

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EEXAMPLEXAMPLE::

Challenge: Can you make this equation correct by

moving only one digit and not moving or adding

signs?

26-63=1

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EEXAMPLEXAMPLE

In the smith family, there are 7 sisters and each

sister has 1 brother. If you count Mr. Smith, how

many males are there in the Smith family.

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EEXAMPLEXAMPLE

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SOURCE OF NEW IDEA

Consumers

Existing products and services

Distribution channels

Research and development

Free thinking

Self-confidence

A plan

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IDEAS INTO OPPORTUNITIES

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IDEAS INTO OPPORTUNITIES

Idea generation

Planning and development

Identifying a viable market

Anticipating the risk

Finding the right business model Change in trend

1. Demographic trend

2. Socio-economic trend

3. Lifestyle trend

4. Technological trend

y Product development stage

y Test marketing stage

y commercialization

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A MODEL OF THE OPPORTUNITY

RECOGNITION PROCESS

EducationPrior knowledge of

marketing and customer

problems

Outcomes

Successful

opportunity

recognition

Entrepreneurial

alertness

Experience

Personal

experienceWork

experience

Networks

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CREATIVE PROBLEM SOLVING

What is creative

problem solving?

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CREATIVE PROBLEM SOLVING

It is a method for obtaining newideas focusing on the parameters.

The creative person uses information toform new ideas.

Creative problem solving is - looking at

the same thing as everyone else and thinkingsomething different.

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EXERCISE

15

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A SOLUTION

16

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CREATIVEPROBLEM SOLVING

PURPOSE:

To develop the awareness and the

skills necessary to solve problems

creatively.

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CREATIVE PROBLEM SOLVING:

TECHNIQUES

1. Heuristics,

2. Brainstorming,

3. Synectics,

4. Value Analysis

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TECHNIQUES:

BRAINSTORMING

Purpose:

To generate a large number of

ideas in a short period of time

through the spontaneous

contribution of participants.

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TECHNIQUES:

HEURISTICS(to discover")

Purpose:

Experience-based techniques forproblem solving, learning, anddiscovery. Heuristic methods areused to speed up the process offinding a good enough solution,where an exhaustive search isimpractical. Trial and error

20

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TECHNIQUES

SYNECTICS

Purpose:

It is a problem solving methodology that stimulates

thought processes of which the subject may be

unaware.

It similar to Brainstorming, where the discussionis centered around a general idea that is related

to a problem, rather than the problem itself .

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TECHNIQUES

Value Analysis

Purpose:

The efficient identification of unnecessary cost.

Value = (Performance + Capability)/Cost = Function/Cost

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INNOVATION AND ENTREPRENEURSHIP

What is INNOVATION???

Innovation:

Innovation is a process of taking new ideasto satisfied customers. It is the conversion of

new knowledge into new products and

services. "Innovation is the multi-stage process whereby organizations

transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate

themselves successfully in their marketplace."[

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INNOVATION IS ABOUT

CREATING VALUE AND

INCREASING EFFICIENCY,AND

THEREFORE GROWING YOUR

BUSINESS.

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DRIVERS FOR INNOVATION

y Increased competitiony Shorter product life cycles

y Value migration

y Stricter regulation

y

Industry and community needs for sustainabledevelopment

y Increased demend for accountability

y Demographic, social and maket changes

y Rising customer expectations regarding service and

quality

y Changing economy

y Greater availability of potentially usefultechnologies coupled with a need to exceed the

competition in these technologies

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PROCESS OF INNOVATION

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PROFITS AND INNOVATION

e.g.: Maruti - Swift

P D

LXI- 5.12 5.9

VXI- 5.51 6.3

ZXI- 6.53 6.6

MARUTI SUZUKI net sales stood at Rs.9,276.7 crore

during the third quarter of 2010-11, a growth of 26.5per cent over the October-December quarter of 2009.

MSI had sold 10,18,365 cars in 2009-10, which was28.55% more than 7,92,167 units in the previousfiscal.

Maruti Suzuki Swift was awarded the Frost &Sullivan 2010 Aspirational Car of the Year Award inSegment B- rated high for its achievement in"Excellence in Technology and Innovation".

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GLOBALIZATION

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GLOBALIZATION-

1991

The removal of barriers to free trade and

the closer integration of nationaleconomies.

DEFINITION:

The process of increasing the connectivity

and interdependence of the world'smarkets and businesses.

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CONTD

The World Trade Organization is a pan-governmental entity (which currently has

144 members) that was set up to

formulate a set of rules to govern global

trade and capital flows through theprocess of member consensus, and to

supervise their member countries to

ensure that the rules are being followed.

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MODULES OF INNOVATION

Closed Innovation: e.g.: GE, Rockefeller

y Internal Technology Base

Open Innovation: e.g.: IBM, Intel, P&G, Appleand Lego

y Internal Technology Base

y External Technology Base

Intermediaries: e.g.: Nine Sigma and Your

Encore

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CLOSED INNOVATION

If I discover it, I will find a market for it

If I discover it first, I will own it

The important technologies I will need can

be anticipated in advance

The best people in this field work for us

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SOURCES AND TRANSFER OF INNOVATION

Scope Data Customer

connection

Research

Trend

analysisCompetitive

intelligence

Purchasing

scenarios

Sales data

BenchmarkingCustomer data

base

Personal

connectionObservation

and

shadowing

Quantitative

andqualitative

research

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TRANSFER OF INNOVATION

Transfer of Innovation (TOI) is designed tohelp & adapt existing innovative practice for use

in new settings, through working with

transnational partners.

1. Technology transfer

2. Knowledge transfer

3. Tools, materials, methodologies, occupational

referential or standards etc4. E.g.: Rockefeller

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INNOVATION

Why Innovate

What Innovation

How to Innovate

Who Innovates

what does Innovation really mean?

Is new packaging on an old product Innovation?

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WHYINNOVATE

"Innovation", according to Tony Blair "is

absolutely essential to safeguard and deliver

high-quality jobs, successful businesses, better

products and services for our consumers, and

new, more environmentally friendly processes. Progress

Help customers

Take advantage of opportunity

Develop the organization

Enrich employees

Achieve greater success

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WHAT INNOVATION

Innovation- REAL

Valuable

Risk

Reality Growth

Profitability

Passion

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HOW TO INNOVATE

How to Innovate step by step:

Ground work

Knowing business and targeting its goals

Pulling together the right team

Creative collaboration Sourcing new ideas and opportunities

Envisioning the Innovations potential

Getting everyone aligned for action

Marketing Refining and providing the innovations benefits

Optimizing the business model

launching the innovation in the marketplace

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WHO INNOVATES

According to dictionary INNOVATION means

"To introduce something new.

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Thank you