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‘‘CREATIVITY IS THE GENERATION OF IDEAS THAT CREATIVITY IS THE GENERATION OF IDEAS THAT RESULT IN THE IMPROVED EFFICIENCY ORRESULT IN THE IMPROVED EFFICIENCY OR EFFECTIVENESS OF A SYSTEM’EFFECTIVENESS OF A SYSTEM’ - Timothy A.Matherly. - Timothy A.Matherly. Entrepreneurs with creativity have the ability to see, Entrepreneurs with creativity have the ability to see,

recognize, & create opportunity where others find only recognize, & create opportunity where others find only problems. problems.

According to Global Innovation Index India ranks 23 among According to Global Innovation Index India ranks 23 among the world nations with a score of 3.57, whereas USA the world nations with a score of 3.57, whereas USA

tops with a score of 5.80 (www.managementtoday.co.uk )tops with a score of 5.80 (www.managementtoday.co.uk ) Top 5 countries are:Top 5 countries are: USA 5.80USA 5.80 Germany 4.89Germany 4.89 UK 4.81UK 4.81 Japan 4.48Japan 4.48 France 4.32France 4.32

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According to “World Patent Report” the number of patents filed per millionAccording to “World Patent Report” the number of patents filed per million of resident population in 2005 in respect of a few countries is as under:of resident population in 2005 in respect of a few countries is as under:

Japan

Korea

USA

UK

India

Philippines

2875

2530

701

296

6.04

1.82

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CREATIVITYCREATIVITY

Can we develop it ? OR Is it hereditary ?Can we develop it ? OR Is it hereditary ?

Yes, partly hereditary BUT also can be developed.Yes, partly hereditary BUT also can be developed.

- Many think that only geniuses are innovative. - Many think that only geniuses are innovative.

- But everybody has streaks of creativity – may be in a - But everybody has streaks of creativity – may be in a

different area.different area.

CREATIVE PROCESS: CREATIVE PROCESS:

1.1. Accumulation of Knowledge: Accumulation of Knowledge:

Knowledge accumulation is one and using it as entirely Knowledge accumulation is one and using it as entirely

different and is essential. It could be different and is essential. It could be ‘domain knowledge’‘domain knowledge’ or or

knowledge in various related or unrelated fields. Various knowledge in various related or unrelated fields. Various

Processes for knowledge accumulation:Processes for knowledge accumulation:

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Normal Sources of Knowledge:

Reading from various sources, (b) professional groups, (c) magazinesReading from various sources, (b) professional groups, (c) magazines

travel, (e) discussions, (f) travel, (e) discussions, (f) pursuing natural curiosities (g) observation

2. Incubation:

Allowing sub-conscious mind to sift and synthesize Allowing sub-conscious mind to sift and synthesize

volumes of information gathered. Occasionally avoid routine activities volumes of information gathered. Occasionally avoid routine activities

for introspection. Thought process can be continuous. Sometimes for introspection. Thought process can be continuous. Sometimes

Giving a break helps.Giving a break helps.

3. Idea Experience:

Answers or solutions to the problems is important. Experiencing the Answers or solutions to the problems is important. Experiencing the

solution is critical. Solutions should withstand enquiry from various solution is critical. Solutions should withstand enquiry from various

Angles. This is a thought-process based exercise.Angles. This is a thought-process based exercise.

4. Evaluation & Implementation:

This is the last stage of creative process. This is an iteration process This is the last stage of creative process. This is an iteration process

Between stage 3 and 4.Between stage 3 and 4.

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ADAPTORADAPTOR1.1. Employs a disciplined, Employs a disciplined,

precise, methodical approachprecise, methodical approach2.2. Is concerned with solving Is concerned with solving

rather than finding problemsrather than finding problems3.3. Attempts to refine current Attempts to refine current

practicespractices4.4. Tends to be means orientedTends to be means oriented5.5. Capable of extended detail Capable of extended detail

workwork6.6. Is sensitive to group cohesionIs sensitive to group cohesion

INNOVATORINNOVATOR1.1. Approaches tasks from Approaches tasks from

unusual anglesunusual angles2.2. Discovers problems and Discovers problems and

avenues of solutionsavenues of solutions3.3. Questions basic assumptionsQuestions basic assumptions4.4. Has little regard for means; is Has little regard for means; is

more interested in endsmore interested in ends5.5. Has little tolerance for routineHas little tolerance for routine6.6. Has little or no need for Has little or no need for

consensus; often insensitive consensus; often insensitive to othersto others

Source: Michel Kirton, “Adopters & Innovators: A Description & Measure”These are general observations and need not be very accurate and are suggestive in nature. You can have your own understanding of these

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A CREATIVE CLIMATE

• A trustful management that does not over control the personnel• Open channels of communication among all business members• Considerable contact & communication with outside members• A large variety of personality types• A willingness to accept change• An enjoyment with experimenting with new ideas• Little fear of negative consequence for making a mistake• Selection and promotion of employees on merit• Use of techniques that encourage ideas, including suggestion

system and brainstorming • Sufficient managerial, financial, human and time resources for

accomplishing goals

Note: These suggestions are mostly followed in Indian Corporates

without much result. Following in letter and not in spirit.

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INNOVATIONINNOVATIONInnovation is a key function in entrepreneurial Process’. It is the process by which entrepreneurs convert opportunities into marketable ideas. Thus, it needs opportunity identification which in turn is the function of environment scan & creativity. Ideas must be marketable.As innovations depend on environment scan, they are period sensitive (change from time to time). In late 1970s & early 1980s, the new companies were trying to overtake the established firms. This was the age of information technology and the new firms were taking advantage of this‘Total Quality Management’ was the order of the day. (Sony Walkman & Toyota cars – All this forced the American Cos. to adopt new information technology to change their production techniques).

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Late 1980s witnessed take-over bids to unlock values of un

utilized assets. This forced the companies to adopt new

processes (process innovation). American Airlines started

‘Sabre Reservation System’ to reduce costs.

How do you Innovate? Identify the problem areas

It is not easy to identify the problem. Many pseudo causes

appear to be causes of the problem. When Toyota is

Increasing its share in automobile markets in the US, the

automobile giants thought it is due to undervalued yen,

docile work force, Japanese culture, superior automation

etc. But the fact is that the Toyota adopted a method of

taking innovation to the front-end workforce instead of

experts like in American companies (Is it product or mgmt)

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Innovation is: Introduction of new goods or products Introduction of new methods of production Discovery or opening new markets Finding new sources of supply Introduction of new organizational structures

SOUCES OF INNOVATION:1. Unexpected occurrences: These are unexpected

success or failures often end up in a major innovative source for the company

2. Demographic changes3. Change in perceptions. Physical fitness outlets4. Knowledge-based concepts. Inventions5. Incongruities. Gap in consumer expectations and

reality.

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MANAGEMENT INNOVATION:Most companies adopt product innovation by earmarking large portions of their budget and manpower but similar allocations either by way of budgets or manpower are not made for management innovations.What is management innovation?You have to understand what is management? Setting goals & laying out plans Motivating & aligning effort Coordinating & controlling activities Accumulating & allocating resources Acquiring & applying knowledge Building & nurturing relationships Identifying & Developing talent

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CLASSIC TRAPS IN INNOVATION CLASSIC TRAPS IN INNOVATION

Rosabeth Moss Canter:Rosabeth Moss Canter: Strategy Mistakes: Companies are Strategy Mistakes: Companies are guided by premium prices and high margins to seek guided by premium prices and high margins to seek blockbuster innovations like iPod. This leads to extensiveblockbuster innovations like iPod. This leads to extensivescreening of ideas and the resultant muffing of new ideas. screening of ideas and the resultant muffing of new ideas. A related mistake is that too much emphasis is given to A related mistake is that too much emphasis is given to product at the cost of new ideas emanating from production product at the cost of new ideas emanating from production and marketing. (example of manufacturing yarn which is and marketing. (example of manufacturing yarn which is breaking too often and the solution coming from a worker breaking too often and the solution coming from a worker who has been toiling with the idea for 30 years).who has been toiling with the idea for 30 years). Marketing innovations in tetra packs for liquids, new retailMarketing innovations in tetra packs for liquids, new retail outlets etc. Similarly financial innovations to reduce outlets etc. Similarly financial innovations to reduce financial costs.financial costs.

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Process Mistakes: Too tight controls.A second set of classic mistake lies in process; specifically The impulse to tighten innovation with tight controls – the same planning, budgeting and reviews applied to existing businesses.Structure Mistakes: Connections too loose, Separations too Sharp: It is dangerous to hold fledgling companies to the Same processes as established business and at the same Time, companies must be careful how they structure the 2 entities, to avoid clash of cultures or conflicting agendas. (example: Saturn & GM. Gillette having 3 separate divisions – tooth brush (Oral B), appliances unit (Braun &A battery unit (Duracell) but failed produce battery operated tooth brush)

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Skill Mistakes: Leadership too weak, Communication too

poor: Undervaluing the human side of innovation is another

common mistake. Technically-oriented managers

mistakenly assume that ideas will speak for themselves &

so they neglect external communication. Or they

emphasize tasks over relationships, missing opportunities

to enhance the team chemistry necessary to turn

undeveloped concepts into useful innovations.