Unit-12 Role of Creativity & Innovation in Business

Program Semester

: MBA : IV

Subject Code
Subject Name Unit number Unit Title Lecture number Lecture Title

: MB0052
: Strategic Management and Business Policy : 12 : Role of Creativity and Innovation in Business : 12 : Role of Creativity and Innovation in Business

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Unit-12 Role of Creativity & Innovation in Business

Role of Creativity & Innovation in Business

Objectives
The objective of this lecture is to discuss: Creativity and different stages in creativity Innovation and the types of innovation

Process to build creative and innovative business culture

Innovative methods adopted to promote creativity and innovation

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Unit-12 Role of Creativity & Innovation in Business

Lecture Outline

Introduction Stages in Creativity Innovation Creating a Creative & Innovative Business Culture Practices Adopted to Promote Creativity and Innovation

Importance of Creativity and Innovation

Challenges Involved in Creativity and Innovation Summary Check Your Learning Activity

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Unit-12 Role of Creativity & Innovation in Business

Introduction

Creativity is an act of turning new and imaginative ideas into reality. Creativity includes two processes - thinking and producing The components of creativity are: Forging Reflecting Adopting Nurturing Knuckling down

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Unit-12 Role of Creativity & Innovation in Business

Stages in Creativity

The stages listed below are used by many artists, creatives, and problem solvers, both individually or in a group in order to develop and implement the ideas. The stages in creativity are: Preparation Incubation Illumination Verification

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Unit-12 Role of Creativity & Innovation in Business

Innovation
Innovation is implementation of ideas which results in an improvement, a gain, or a profit. The components of innovation are: Implementation Creativity The types of innovation are: Architectural innovation Market niche innovation Regular innovation Revolutionary innovation

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Unit-12 Role of Creativity & Innovation in Business

Creating a Creative and Innovative Business Culture

Managers must first understand the steps of creativity to create an innovative business culture. The business practices followed to create and build a creative and innovative business culture are: Select the most promising innovators, but encourage unexpected surprises Create buffer zones for the most innovative people Give room to innovators to play Resist the temptation to look for immediate results Commitment to drive and implement the best ideas

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Unit-12 Role of Creativity & Innovation in Business

Practices Adopted to Promote Creativity and Innovation

Practices adopted by organisations to promote creativity and innovation are: Brainstorming Mind mapping and mind revolution Out of the box thinking Rewarding best ideas Using metaphors/jargons/slogans Other methods

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Unit-12 Role of Creativity & Innovation in Business

Practices Involved to Promote Creativity and Innovation contd

Brainstorming - Brainstorming is an organised approach for producing ideas by letting the mind think without interruption. Mind mapping - Mind mapping is a technique that allows you to make the best use of your brain power. Mind-mapper is software which accelerates mind-mapping. A mind map uses lines, words, images, colors and sounds to stimulate your brain. Out of the box thinking It is a way of thinking that involves thinking in diverging directions and involves a variety of aspects which leads to novel ideas associated with creativity. Rewarding best ideas Reward is one of the biggest motivators for creative persons. Creativity and innovation can be rewarded in personal and creative ways.

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Practices Involved to Promote Creativity and Innovation contd

Using metaphors/jargons/slogans Using metaphor Metaphor establishes a kind of creativeness that has the potential to spark quantum leaps in thinking. Using jargons Jargon is a technical language used by a particular profession, group or trade to keep outsiders away from understandings within an organisation. Using slogans - A creative slogan reflects the details and personality of an organisation. Organisations have in-house slogans meant only for its employees and workers as well as marketing or advertising slogans that represent the companys products, brands and image.

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Practices Involved to Promote Creativity and Innovation contd

Other methods - Different companies will have different methods and techniques to promote and maintain innovative or creative culture in the organisational environment. One of the method is intrapreneurship. It is a method of practicing entrepreneurship by the employees within an organisation. Intrapreneurship involves creativity, innovation, the ability to take risk and to look at things in novel ways. An intrapreneur visualises like an entrepreneur looking out for opportunities which will profit the organisation

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Unit-12 Role of Creativity & Innovation in Business

Importance of Creativity and Innovation in Business Management

Creativity is a powerful tool that can improve the performance of an
organisation in an amazing way. The importance of creativity and innovation in business are:

Keeping minds open for new opportunities

Securing competitive advantage Creating a successful innovation strategy Improving organisational culture

Removing strategic barriers

Changing attitude towards risk Improving learning and knowledge transfer

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Unit-12 Role of Creativity & Innovation in Business

Challenges Involved in Creativity and Innovation

Business forecasters predict that creativity and innovation are the most important factors in establishing and maintaining a competitive advantage. Following are few of the challenges which creative and innovative companies face: Adaptability Innovation Engagement Hostility Isolation

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Challenges Involved in Creativity and Innovation contd

Feasibility, time frame and practicality of the ideas The process of creating a new idea consists of the following four stages: Gather stimuli Multiply stimuli Create customer concepts Optimise practicality Cost involved in implementing ideas The cost of implementation of ideas has to be addressed in brainstorming sessions. Implementation of ideas must be made creative and cost saving.

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Unit-12 Role of Creativity & Innovation in Business

Challenges Involved in Creativity and Innovation contd

Technical aspects involved in innovation
Implementation of innovation involves technical aspects. Managing the technical aspects of innovation and creativity is related to managing personnel and organisational changes. Acceptance of innovation in the market Implementation of innovation is associated with market growth. Organisation has to emphasise on latest innovative characteristics and

functional features of the product.

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Unit-12 Role of Creativity & Innovation in Business

Summary
Creativity is an act of turning new and imaginative ideas into reality. Innovation is implementation of ideas which results in an

improvement.
Managers must first understand the steps of creativity to create an innovative business culture. Practices of box adopted by organisations rewarding to promote best creativity ideas, and using

innovation are brainstorming, mind mapping and mind revolution, out

thinking, metaphors/jargons/slogans and other methods. Business forecasters predict that creativity and innovation are the

most important factors in establishing and maintaining a competitive

advantage.

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Unit-12 Role of Creativity & Innovation in Business

Check Your Learning

1. Define creativity ? Ans. Creativity can be defined as an act of turning new and imaginative ideas into reality. 2.What are the components of innovation? Ans. Components of innovation are implementation and creativity. 3.What is entrepreneurship? Ans. Entrepreneurship is the practice of getting on a new business or reviving an existing business by pooling resources to exploit new found opportunities.

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Unit-12 Role of Creativity & Innovation in Business

Activity

Refer

to

http://www.bpir.com/new-product-development-innovationand study the

strategy-bpir.com/menu-id-72/example-cases.html new product.

various innovation strategies used by the organisations for developing a

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