Creativity

&
Innovation

Prof Bharat Nadkarni

Reference Books
1. Innovation Management
by Sholmo Maital & D V R Seshadri
2. Innovation & Creativity
by Dennis Sherwood
3. Innopreneurship
by Gary Lynn & Norman Lynn
4. Management of Technology & Innovation
by P N Rastogi
5. Innovation to the core
by Peter Skarzynski & Rowan Gibson
6. Innovation in Big Business
by Lowell Steele
Session 1
 Creativity & Innovation

Survival Rate for Corporations

Age in Years Percentage surviving
5 38
10 21
15 14
20 10
25 7
50 2
75 1
100 0.50
What is Business?
4 I concept

• Intelligence

• Information

• Introspection

• Innovation
Three Circles of Strategic Career

•What am I good at?

•What makes me happy? (My Passion)

•Economic Returns
Be a Professional (Definition of Professional)
a. One who gives money’s worth and “A little more”
b. Whose clients feel that they are in safe hands.
Discuss Cases of Innovation
• Anonymous call to Police
• Coca Cola – Robert Goetzueta case
• Moneylender and Farmer’s Daughter
• President Roosevelt’s game.
 Creative: Involving creation or
invention; showing imagination and
originality (Oxford Dictionary)
 Innovative: Introducing something
new, different or better (Oxford
Dictionary), A more commercial
word.
 Inventive: Making or Designing
something new (Oxford Dictionary)
 Creativity
• Creativity is the engine of invention
and innovation
• The essence of creativity is a new
idea or combining two or more ideas
to arrive at an entirely new one
• Creative ideas must add value
Session 2
 Definition
Creativity refers to mental process that
leads to solutions, ideas,
conceptualization, artistic forms, theories
or products that are unique and novel.
Creativity is any process by which
something new is produced- an idea or an
object, including new form or arrangement
of old elements.
 Torrance’s Definition

Creativity is a process of sensing

difficulties, problems, gaps in information,
missing elements, something askew ;
evaluating and testing these guesses and
hypotheses; possibly revising and
retesting them; and finally communicating
the results.
CREATIVITY & INNOVATION
Discussions about creativity & innovation are often made
difficult because people are unclear about the exact meanings
of some key terms. In particular there is confusion about the
difference between creativity, innovation and invention. Let us
start with some definitions:
•Creativity is the capability or act of conceiving something
original or unusual.

•Innovation is the implementation of something new which

also can be different and better and it’s market focused.

•Invention is the creation of something that has never been

made before and is recognized as the product of some unique
insight.
If you have a brainstorm meeting and dream up dozens of new
ideas then you have displayed creativity but there is no
innovation until something gets implemented.
Somebody has to take a risk and deliver something for a
creative idea to be turned into an innovation.
An invention might be a product or device or method that has
never existed before. So every invention is an innovation. But
every innovation is not an invention.
When your company first published its website that was a
major innovation for the company even though many other
websites already existed.
We tend to think of an innovation as a new product but you
can innovate with a new process, method, business model,
partnership, route to market or marketing method. Indeed
every aspect of your business operation is a candidate for
innovation.
Peter Drucker said, ‘Every organisation must prepare for the
abandonment of everything it does.’ So do not restrict your
vision of innovation to products. Some of the most powerful
innovations you can make are in business methods and
customer services. If we look at companies like Dell, eBay and
Amazon we see that their great innovations were with their
business models rather than in new products.
Innovations can be incremental or radical. Every improvement
that you make in products or services can be seen as an
incremental innovation.
Most businesses and most managers are good at incremental
innovation. They see problems in the current set-up and they
fix them.
Radical innovations involve finding an entirely new way to do
things. As such they are often risky and difficult to implement.
Most larger organisations and most managers are poor at
radical innovation. If you had been making LP records then
you could have introduced incremental innovations in your
design and marketing.
However if this was your strategy then a radical innovation,
the CD, would eventually kill you. The CD manufacturer could
similarly introduce various incremental improvements. Once
again a radical innovation, music downloads over the internet,
would make your offering obsolete.
So we need to constantly look for incremental innovations and
radical innovations. We need to develop creativity and turn it
quickly into innovation.
 Case Study
(Whose job to eliminate?)
Prasad Sahil
Creativity Process
 Stage 1: Preparation
The individual turns his or her attention to
a task or problem, examining relevant
information from his or her own
experience and the task environment.

Work hard till exhausted. Investigate

in all the directions. Allow intuition to
take over
 Stage 2: Incubation
Conscious work on the problem ceases; the
individual may turn his or her attention to
another problem, or simply relax. During
this period some degree of unconscious
and involuntary (or fore-conscious and fore-
voluntary )work on the problem occurs.
Let the problem go off conscious
mind, sleep on it, forget it, take a
break, allow intuition to work
 Stage 3: Illumination
The classic ‘ Eureka’ moment when the core
(or even the whole) of the problem solution
suddenly springs into awareness.

Allow discontinuity or break in patterns,

a quantum leap, radical change in
perception and enlightenment.
 Stage 4: Verification
The individual uses logical and rational
thought processes to turn the sudden
insight into a correct or appropriate
solution, apparent as such to others.

Attempt logical evaluation.

Justification and implementation.
 7 step process of
• Preparation
• Saturation
• Deliberation
• Incubation
• Illumination
• Verification
• Accommodation
 Preparation
“Chances favors the prepared
mind”
It is response to a problem or an opportunity.
Leads to developing products – breakthrough
out of a problem or an opportunity.
Come across the situation and find solution
which was not explored or known earlier.
 Saturation
It is a period of intense research on the
subject/problem.
All the dimensions of the problem are
extensively analyzed and the decision
maker becomes absolutely familiar with
the situation.
Information is enough saturated to have
clarity of the problem.
 Deliberation
It is the process of thinking deeply over the
ideas, analyzing and challenging them,
viewing them from different dimensions.
 Incubation
It is the process of relaxing, switching off
and turning the problem over to the
unconscious mind.
Normal and usual is a weak stimulus for
creative thinking.
Change your routine.
 Illumination
• It is a process, which leads to flashing of
ideas.
• It is sudden, subconscious acts as a filter
• From telescopic to microscopic to
kaleidoscope
 Verification
• It is the process of clarifying and flushing
out the idea, testing it against criteria of
appropriateness
• Let your voice of judgment speak out
• Challenge your ideas yourself
• Play angel’s and devil’s advocate
 Accommodation
It is the process of trying out the new idea
introducing to different people at different
places and gaining acceptance.
Try to redefine the limits.
Session 3
 Innovate or Perish
1. Incremental Vs Radical change

2. Strategic type of change

3. Technological change

4. New Product and Services

5. Learning organisation
 A ….. D ….. R ….. L …..I

•Approach or Planning
•Deployment or Implementation
•Result
•Learning
•Improvement
 Creativity & Innovation

It is based on four key words:

1. Fundamental
Why do we do what we do? And Why do we do it the way
we do?
Why the old rules and assumptions exist?
2. Radical
Disregard all existing structures and procedures, and
inventing completely new ways of accomplishing work.
3. Dramatic
Not about making marginal improvements.
4. Processes
a. Dysfunctional b. Importance c. Feasibility
Sources of New Ideas
• Consumers

• Existing Products and Service

• Distribution channels

• Govt. – Patents, Import List, Licensing

• Research & Development

The Product Planning & Development Process
• Idea Stage & Evaluate

• Concept Stage & Evaluate

Laboratory development

• Product Development Stage & Evaluate

Pilot production run
• Test Marketing Stage & Evaluate
Semi commercial plan trials
• Commercialisation Stage & P L C (I-G-M-D)
 Creative Environment
(Triandis 1990)
• Permits people to work in areas of
their greatest interest.
• Encourages employees to have broad
contact with stimulating colleagues
• Allows taking moderate risks
• Tolerates some failures and non-
conformity
• Provides appropriate rewards and
recognition
 Creative Person (Barron
1969)
• Conceptual Fluency (i.e. being able to
express ideas well and formulate the ideas
as one proceeds)
• The ability to produce a large number of
ideas quickly
• The ability to generate original and unusual
ideas
• The ability to separate source (who said it)
from content (what was said) in evaluating
information
 Creative Person (contd.)
• The ability to stand out and be a little deviant
from others
• Interest in the problem one faces
• Perseverance in following problems wherever they
lead
• Suspension of judgment and no early commitment
• The willingness to spend time analyzing and
exploring
• A genuine regard for intellectual and cognitive
matters
 Gains of Creativity
• Produces greater quantities
• Improves efficiency
• Retain seeds
• Provides Opportunities for combinations
• Increase potential for better decisions
• Reduces personal conflicts
• Increases group ownership
 Measures to be taken to make
India an Innovative Nation
 Building more Innovation Infrastructure (eg.
Science & technology parks)
 Institutionalize innovation
 Incentivize innovation
 Promote world class practices
 Encourage knowledge enhancement
 Strengthen Industry-Institute interface
 Encourage NRI participation
 Provide multiple sources of funding
 Activate Public Relations
Which step have you reached today?

• I won’t do it.
• I can’t do it.
• I want to do it.
• How do I do it.
• I’ll try to do it.
• I can do it.
• I will do it.
• Yessss. I did it.
 Competency Clusters

Business Knowledge
Customer Focus
Communication
Result Focus
Innovation
Proactivity
Leadership
Collaboration
Adaptability & Stamina
Conceptual Thinking (Futuristic, DM, PS)
 Creativity & Innovation

Systematic redesign of Processes

1. Eliminate

2. Simplify

3. Integrate

4. Automate
 Creativity & Innovation
• An Organisation is the machinery of management and this
machinery is operated by the members of the organisation,
say employees.
• Employees operate this machinery and are influenced by
events and activities in the real world situation, such that the
organisation structure becomes contingent upon the
environment.
• An organisation must adapt itself to the changes taking place
in its environment or else, it will not remain effective enough
to achieve the corporate goals.
• Organisation renewal and revitalisation is a strategy for
improving its effectiveness, for making it viable, for
enhancing its internal capacity to face problems and to give it
the potential strength of continually improving itself to remain
viable in future.
Questioning Skills

5 Ws and 1 H : Best friends of manager

• Why?
• What?
• When?
• Who?
• Where?
• How?

Why Why Analysis

Ex.
• John committing murder
• Coca Cola CEO
• Creation of H D
• Money Lender & Farmer’s daughter
• Nagpur Rikshawala – sitting arrangement
• Asian Paints – Coins in Paintbox
Creativity and Innovation
is never
an activity in Business,
It’s a Movement,
a Wave
The Learning Personas
Individuals and organizations need to constantly gather new
sources of information in order to expand their knowledge and
grow, so the first three personas are learning roles. These
personas are driven by the idea that no matter how
successful a company currently is, no one can afford to be
complacent. The world is changing at an accelerated pace,
and today's great idea may be tomorrow's anachronism. The
learning roles help keep your team from becoming too
internally focused, and remind the organization not to be so
smug about what you “know”. People who adopt the learning
roles are humble enough to question their own worldview, and
in doing so they remain open to new insights every day.
The Anthropologist is rarely stationary. Rather, this is the
person who ventures into the field to observe how people
interact with products, services, and experiences in order to
come up with new innovations. The Anthropologist is
extremely good at reframing a problem in a new way,
humanizing the scientific method to apply it to daily life.
Anthropologists share such distinguishing characteristics as
the wisdom to observe with a truly open mind; empathy;
intuition; the ability to "see" things that have gone unnoticed;
a tendency to keep running lists of innovative concepts worth
emulating and problems that need solving; and a way of
seeking inspiration in unusual places.
The Experimenter calibrates the process, not the tool, testing
and retesting potential scenarios to make ideas tangible. A
calculated risk-taker, this person models everything from
products to services to proposals in order to efficiently reach a
solution. To share the fun of discovery, the Experimenter
invites others to collaborate, while making sure that the entire
process is saving time and money.
The Cross-Pollinator draws associations and connections
between seemingly unrelated ideas or concepts to break new
ground.
Armed with a wide set of interests, an avid curiosity, and an
aptitude for learning and teaching, the Cross-Pollinator brings
in big ideas from the outside world to enliven their
organization.
People in this role can often be identified by their open
mindedness, diligent note-taking, tendency to think in
metaphors, and ability to reap inspiration from constraints.

The Organizing Personas

The next three personas are organizing roles, played by
individuals who are savvy about the often counter-intuitive
process of how organizations move ideas forward. we believe
that the ideas should speak for themselves. But it’s not true.
Even the best ideas must continuously compete for time,
attention, and resources. Those who adopt these organizing
roles don't dismiss the process of budget and resource
allocation as “politics” or “red tape.” They recognize it as a
complex game of chess, and they play to win.
The Hurdler is a tireless problem-solver who gets a charge
out of tackling something that's never been done before.
When confronted with a challenge, the Hurdler gracefully
sidesteps the obstacle while maintaining a quiet, positive
determination. This optimism and perseverance can help big
ideas upend the status quo as well as turn setbacks into an
organization's greatest successes—despite doomsday
forecasting by shortsighted experts.
The Collaborator is the rare person who truly values the team
over the individual. In the interest of getting things done, the
Collaborator coaxes people out of their work silos to form
multidisciplinary teams. In doing so, the person in this role
dissolves traditional boundaries within organizations and
creates opportunities for team members to assume new roles.
More of a coach than a boss, the Collaborator instills their
team with the confidence and skills needed to complete the
shared journey.

The Director has an acute understanding of the bigger

picture, with a firm grasp on the pulse of their organization.
Subsequently, the Director is talented at setting the stage,
targeting opportunities, bringing out the best in their players,
and getting things done. Through empowerment and
inspiration, the person in this role motivates those around
them to take center stage and embrace the unexpected.
The Building Personas
The four remaining personas are building roles that apply
insights from the learning roles and channel the empowerment
from the organizing roles to make innovation happen. When
people adopt the building personas, they stamp their mark on
your organization. People in these roles are highly visible, so
you’ll often find them right at the heart of the action.
The Experience Architect is that person relentlessly focused
on creating remarkable individual experiences. This person
facilitates positive encounters with your organization through
products, services, digital interactions, spaces, or events.
Whether an architect or a sushi chef, the Experience Architect
maps out how to turn something ordinary into something
distinctive—even delightful—every chance they get.
The Set Designer looks at every day as a chance to liven up
their workspace. They promote energetic, inspired cultures by
creating work environments that celebrate the individual and
stimulate creativity. To keep up with shifting needs and foster
continuous innovation, the Set Designer makes adjustments to
a physical space to balance private and collaborative work
opportunities. In doing so, this person makes space itself one
of an organization's most versatile and powerful tools.
The Storyteller captures our imagination with compelling
narratives of initiative, hard work, and innovation. This person
goes beyond oral tradition to work in whatever medium best
fits their skills and message: video, narrative, animation, even
comic strips. By rooting their stories in authenticity, the
Storyteller can spark emotion and action, transmit values and
.
objectives, foster collaboration, create heroes, and lead
people and organizations into the future.
The Caregiver is the foundation of human-powered
innovation. Through empathy, they work to understand each
individual customer and create a relationship. Whether a nurse
in a hospital, a salesperson in a retail shop, or a teller at an
international financial institution, the Caregiver guides the
client through the process to provide them with a comfortable,
human-centered experience.
Toyota Motor Corporation
In auto manufacturing, Japanese companies rule, and one
manufacturer outshines them all. Toyota increasingly
dominates the global auto market, pushing ever closer to its
goal of overtaking General Motors (GM) as the world’s no.1
automaker. The basis of Toyota’s supremacy lies primarily in
its steady stream of technological and product innovation.
Toyota executives created the doctrine of kaizen, or
continuous improvement, and the company applies it
relentlessly. Toyota hands the responsibility for continuous
improvement to every employee. People on the shop floor can
get cash rewards for searching out production glitches and
finding ways to solve them.
Although thinking big can be important, Toyota knows that
sweating the details is just as critical for driving innovation.
Several years ago, Toyota made a small change to its
production lines by using a single master brace to hold
automobile frames in place as they were welded, instead of
the dozens of braces used in a standard auto factory. It
seemed almost insignificant in the context of the company’s
complex manufacturing system, yet it was a radical
manufacturing innovation. That one change, referred to now
as the Global Body Line system, slashed 75 percent off the
cost of retrofitting a production line and made it possible for
Toyota to produce different car and truck models on a single
line. The result has been billions of dollars in annual cost
savings.
For developing new models, Toyota applies the concept of
‘Obeya’, which literally means “big room”. To make sure all the
critical factors are considered from the beginning, product
development teams made up of manufacturing and product
engineers, designers, marketers and suppliers hold regular
face-to-face brainstorming sessions. New software programs
also make it possible for these cross-functional teams to
collaborate digitally, viewing product design changes and
associated costs. That way, if a designer makes a change that
conflicts with manufacturing needs or a suppliers capability, it
can be noted and adjusted immediately. This collaborative
process created Toyota’s sturdy small truck, the Hilux, which
is sold mostly in developing countries and is favoured by oil
companies and other organisations working in areas where
a pickup breakdown can mean life or death. A new version of
the Hilux is key to Toyota’s strategy of overtaking GM by
capturing 15 percent of the world auto market.
Management Games
1. Decision Making – 2 situations
2. Coin game
3. Pattern – Process making game
4. Negotiation game
5. Situation – Role play – Henri Gogaj game
6. Village game
7. Taxi – Taxi driver game
8. Mumbai Pune Expressway game
9. Team Role play game
10. Coffee shop game
11. Maths score
12. Case study
a. New Year Booking b. Termination c. Leave sanction
Case Study
This civil engineering firm, Alpha Corporation was reeling
under pressure of closure if something drastic did not happen
in twelve months. The onslaught of severely depleted financial
sources, high debts and the line of credit from banks being cut
off presented bleak prospects. To top it all another firm made a
job offer with a pay hike to all 12 employees. They all rejected
the offer. Ramesh, CEO of the firm, came to know of this. He
knew he had to do something radical.
He focused his attention on the staff. He called for a
meeting, informed them clearly that the firm was in serious
financial trouble, and that each of them would have to take
‘an immediate salary adjustment’ to take them through. He
then passed around envelopes containing a new salary
package.
When they opened their envelopes, they couldn’t believe it.
It was an increased salary package. “We thought you said
we were in serious financial trouble!” they said. “We are,”
Ramesh replied. “But I’m counting on each of you to do much
more than before. So I’m paying you up front for what I
expect you to do. If we do what the business needs, you had
earned this increase, else treat this as a parting gift.”
Ramesh realized that he had to acknowledge his employees
for their trust in the company, and adopted this unique
approach. Together they developed Vision and Mission
statements defining win-win outcomes for all stakeholders.
Ramesh then approached the bank for reducing the existing
monthly loan payment, based on a level of payment that
he could sustain, without defaulting on installments. Due to
their record, this was granted.
The Company saw a turnaround in twelve months –
•The employees worked at streamlining processes, reducing
the number of steps for completing projects, and met
deadlines earlier. Projects that earlier took up to seven days
to complete were now done in one or two.
•Quality increased and costs were reduced, even though the
owner was less involved in each project.
•The result of this was that revenues increased by about
30%, The Organisation met every payroll and bank payment
on time.
•In the longer-term revenues nearly tripled, with an almost
equal increase in salaries of employees.