CREATIVITY &

MANAGEMENT OF
INNOVATION
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.
 Creativity in entrepreneurship
include being independent and
spontaneous and processing a
problem solving attitude.
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.
 Ideas have little value unless they
are converted into useful product
and services

Characteristics of INNOVATION
 Innovation leads to changes
 Result of a thoughtful plan

 Can bring complete revolution or an extension to

existing products
 Provide unique identity to a business

 Innovation are action oriented and result oriented

 Help in making products and processes simple to

understand
 Innovation involve continuous experimentation and
testing.
WHY CREATIVITY & INNOVATION
 The highly competitive nature of
today’s business needs creative and
innovative ideas for dominant success.
Although good service is the essence
of a successful business (in long term),
novel ideas are jumping advancements;
thus, a company has no chance to win
this competitive game in the absence of
creativity and innovation.
DO IT IS A PROCESS FOR CREATIVITY

 D - Define problem

 O - Open mind and apply creative techniques

 I - Identify best solution

 T - Transform
Components of Creativity
 Intrinsic Motivation
Intrinsic motivation refers to motivation that comes from
inside an individual rather than from any external or
outside rewards, such as money or grades. The
motivation comes from the pleasure one gets from the
task itself or from the sense of satisfaction in completing
or even working on a task. An intrinsically motivated
person will work on a math equation, for example,
because it is enjoyable. Intrinsic motivation facilitates
creativity and academic performance, whereas extrinsic
motivation hinders creativity but has no effect on
academic performance.
 Skills in task
A developed talent or ability: writing skills.
Knowledge of the problem
technical skill required in solving it

 Skill in Creative thinking - refers to the ability to form

new combinations of ideas to fulfill a need, or to get
original or otherwise appropriate results by the criteria of
the domain in question.
To hold as an opinion; believe; suppose
To anticipate or expect
To make a mental discovery
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 :

 A particular Style
 Originality
 Experience
 Determination Flexibility
 Positive outlook
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.
INNOVATION IN AUTOMOBILE
INDUSTRY
 Automobile industry is one of the most competitive industry , which
has to innovate much in its R&D .

 TATA created a revolution with the Nano , the worlds cheapest car.

 Mahindra and Mahindra, which was mostly known only for

tractors , had to come up with the Scorpio and Scooter that changed
the way people looked at M & M.
CAN YOU IMPROVE YOUR
CREATIVITY? YES! HOW?
 Gather as much information as you can
(read, talk with experts, etc.) and
brainstorm. Just think about the
problem or issue until an idea comes to
you. Is the solution reasonable? If so,
try it. If not, keep thinking. If you tried
out an idea, did it work? If so, great! If
not, begin the process over again. Do
not put barriers on your mind. Put these
steps to use.
LATERAL THINKING
 Lateral thinking is a term coined by Edward de Bono
in the book New Think: The Use of Lateral Thinking
published in 1967; it refers to solving problems
through an indirect and creative approach. Lateral
thinking is about reasoning that is not immediately
obvious and about ideas that may not be obtainable
by using only traditional step-by-step logic.
Problem

A man walks into a bar and asks

the barman for a glass of water.
The barman pulls out a gun and
points it at the man. The man says
'Thank you' and walks out.
SOLUTION

 The man had hiccups. The barman

recognized this from his speech and drew
the gun to give him a shock. It worked and
cured the hiccups - so the man no longer
needed the water.