Datta Meghe Institute of Management Studies Unit 2 Lecture 2 INNOVATION & CREATIVITY.
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Transcript of Datta Meghe Institute of Management Studies Unit 2 Lecture 2 INNOVATION & CREATIVITY.
Datta Meghe Institute of
Management Studies
Unit 2Lecture 2
INNOVATION & CREATIVITY
Datta Meghe Institute of
Management Studies
COVERAGE :
• Defining Innovation• Types of Innovation• National Innovation System• Creating Innovative Environment• Managing Innovations
Datta Meghe Institute of
Management Studies
CREATIVITY AND INNOVATION
• How innovative are you?
Datta Meghe Institute of
Management Studies
Defining Innovation
Datta Meghe Institute of
Management Studies
Defining Innovation
Innovation comes from a Latin word INNOVATIO meaning to RENEW or CHANGE
“ New products, business processes and organic changes that create wealth or social welfare” – OECD
“ Fresh thinking that creates value”
“ Successful commercilaisation of a novel idea”
“ Application of knowledge in a novel way, promarily for
economic benefit” – Economic Intelligence Unit
Datta Meghe Institute of
Management Studies
IMPORTANCE OF INNOVATION
How important is innovation to your
organsiation’s long term success ?
• Critically important : 47 %• Important : 40 %• Somewhat important : 12 %• Somewhat unimportant : 1 % ( EIU Survey – 2006)
Datta Meghe Institute of
Management Studies
IMPORTANCE OF INNOVATION IN INDIA
• 17 % LARGE FIRMS RANK INNOVATION AS TOP STRATEGIC PRIORITY
• 75 % RANK INNOVATION AS THE TOP 3 PRIORITIES
• 81 % STRONGLY AGREE THAT INNOVATION HAS BECOME CRITICAL TO GROWTH AND COMPETITIVENESS
• 42% LARGE FIRMS AND 17 % OF SMEs HAVE INTRODUCED NEW TO THE WORLD INNOVATIONS
( Innovation in India – National knowledge Commission 2007)
Datta Meghe Institute of
Management Studies
MISCONCEPTIONS
1. Creativity : It is the capabilities or act of conceiving something original or unusual
2. Innovation : It is the implementation of something new
3. Invention : It is the creation of something that has never been made before and is recognised as the product of some unique insight
Datta Meghe Institute of
Management Studies
MISCONCEPTIONS
1. Creativity – Ideas
Invention – Novel ideas
Innovation – Delivery of novel ideas
2. Every invention is innovation but every innovation is not invention
3. Invention is conversion of cash into ideas. Innovation is conversion of ideas into cash
4 Creativity is thinking new things. Innovation is doing new
things.
5. Innovation is applied creativity
6.People are creative. Products or processes are innovative
7. Creativity is small component of innovation process
8.Innovation is 1 % inspiration and 99 % perspiration
( Thomas Edison)
Datta Meghe Institute of
Management Studies
Defining Innovation
• “ INNOVATION IS DEFINED AS A PROCESS BY WHICH VARYING DEGREE OF MEASURABLE VALUE ENHANCEMENT IS PLANNED AND ACHIEVED , IN ANY COMMERCIAL ACTIVITY.THIS PROCESS MAY BE BREAKTHROUGH OR INCREMENTAL, AND IT MAY OCCUR SYSTEMATICALLY IN A COMPANY OR SPORADICALLY; IT MAY BE ACHIEVED BY :
• INTRODUCING NEW OR IMPROVED GOODS OR SERVICES AND/OR• IMPLEMENTING NEW OR IMPROVED OPERATIONAL PROCESSES AND/OR• IMPLEMENTING NEW OR IMPROVED ORGANISATIONAL/MANAGERIAL PROCESSES
IN ORDER TO IMPROVE MARKET SHARE, COMPETITIVENESS ANDQUALITY, WHILE REDUCING COSTS ( National Knowledge Commission)
Datta Meghe Institute of
Management Studies
TYPES OF INNOVATIONS
• PRODUCT INNOVATION$3000 cars, $300 computers and $ 30 mobile phones
Nano car, Chota kool refrigerator, Tata-Swach water purifier
• PROCESS INNOVATION
Dell, Arvind care hospital
• INNOVATION IN BUSINESS MODELS
Hindustan lever ( Shakti project)
• INCREAMENTAL OR BREAKTHROUGH INNOVATIONPC, Cloud computing , Nepster
• REVERSE INNOVATION
Datta Meghe Institute of
Management Studies
NATIONAL INNOVATION SYSTEM
“THE NETWORK OF INSTITUTIONS IN THE PUBLIC AND PRIVATE
SECTORS WHOSE ACTIVITIES AND INTERACTIONS INITIATE,
IMPORT, MODIFY AND DIFFUSE NEW TECHNOLOGIES ( Freeman, 1987)
“ THE ELEMENTS AND REALTIONSHIPS WHICH INTERACT IN THE PRODUCTION, DIFFUSION AND USE OF NEW, AND ECONOMICALLY USEFUL, KNOWLEDGE AND ARE EITHER LOCATED WITHIN OR ROOTED INSIDE BORDERS OF A NATION STATE” ( Lundvall, 1992)
“ A SET OF INSTITUIONS WHOSE INTERACTIONS DETERMINE THE INNOVATIVE PERFORMANCE OF NATIONAL FIRMS” (Nelson, 1993)
Datta Meghe Institute of
Management Studies
NATIONAL INNOVATION SYSTEM
“ THE NATIONAL INSTITUIONS , THEIR INCENTIVE STRUCTURE AND THEIR COMPETENCIES, THAT DETERMINE THE RATE AND DIRECTION OF TECHNOLOGICAL LEARNING ( OR THE VOLUME AND COMPOSITION OF CHANGE GENERATING ACTIVITIES) IN A COUNTRY “ (Patel and Pavitt 1994)
“ THAT SET OF DISTINCT INSTITUIONS WHICH JOINTLY AND INDIVIDUALLY CONTRIBUTE TO THE DEVELOPMENT AND DIFFUSION OF NEW TECHNOLOGIES AND WHICH PROVIDES THE FRAMEWORK WITHIN WHICH GOVERNMENTS FORM AND IMPLEMENT POLICIES TO INFLUENCE THE INNOVATION PROCESS. AS SUCH IT IS A SYASTEM OF INTERCONNECTED INSTITUIONS TO CREATE, STORE AND TRANSFER OF KNOWLEDGE, SKILLS AND ARTEFACTS WHICH DEFINE NEW TECHNOLOGIES “ ( Metcalfe,1995)
CHALLENGES
• The researchers in R&D per million people in 2006:
India (119), China (715), South Korea (3723), US (4628) and Japan (5300)
• R&D expenditure - 0.8 per cent of GDP
• Education , skill & infrastructure need new investments
• Need more productivity from the existing institutions
• Linkages between academia, research and industry need to be strengthened
CHALLENGES
• India Ranked 119 of 149 countries in the 2004 Science Citation Index
• India produces only 6,000 PhDs a year in science and 1,000 in engineering
• Less than 20 % of public support for R&D is for civilian applications
• Indian Institute of Technology was granted 3-6 patents a year compared with 64 for the Stanford and 102 for the Massachusetts Institute of Technology (McKinsey)
• According to WIPO statistics (2009) India was granted 7,539 patents while the equivalent number for Japan was 1,64,954, the US was 1,57,283, the Republic of Korea was 1,23,705, and China was 67,948
• In 2006, India had 119 researchers in R&D per million people, while China had 715, South Korea had 3723, US had 4628 and Japan had 5300
STATUS OF INNOVATION IN INDIAAs per Global Innovation Index rankings ( 2011) :
• India ranks 62 and its rank was 56 and 41 in 2010 and 2009
• Most innovative countries are Switzerland, Sweden, Singapore, Hongkong, Finland, Denmark, USA, Canada, Netherlands and UK
• India ranks after South Africa, Serbia, Oman, Argentina, Thailand
As per survey of Economic Intelligence Unit ( 2006)
• India ranks at 50 after Turkey, Jordan, Cuba, Bulgaria etc
• Finland, Denmark, USA, Switerzland, Sweden, Netherlands, Australia, Canada, Germany and France are at the top.
INNOVATION PENTAGON
Datta Meghe Institute of
Management Studies
Solve the problem
• Remove three sticks to leave four
Datta Meghe Institute of
Management Studies
See this figure?
• Divide the figure below into as many pieces as you can by making four straight cuts with a long knife
Datta Meghe Institute of
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2 Dimensions=11
• Cuts and pieces
Datta Meghe Institute of
Management Studies
3 dimensions=14
• imagine it’s a cake
Datta Meghe Institute of
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Another Perspective
• Fold it after each cut=16
Datta Meghe Institute of
Management Studies
New Challenge
• A company manufactures glassware. The last step of the process is to wrap glasses individually in used newspapers and then place them in a specially designed box. The box is then sealed. Management notices low productivity with this last step, observing that workers occasionally stop to read the newspapers? What can management do to increase productivity?
Datta Meghe Institute of
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Steps to Personal Creativity
• 1. Accept that you can be creative• 2. Question traditional assumptions• 3. Expand your problem-solving styles• 4. Employ creativity techniques• 5. Practice thinking in new ways• 6. Learn when your creative thinking is best
• Adapted in part from Higgins, James M. 1997. Escape From The Maze. New York: New Management Publishing.
Datta Meghe Institute of
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Relevance to Globalization
• In a rapidly changing global world, managers must use all their abilities to anticipate opportunities and threats
Datta Meghe Institute of
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Future Visions of the Auto Industry
• Fuel injections will require much less gas• Need for lean production• There will be need for small autos to serve utilitarian
mass markets• There will be more women drivers in Europe and Asia• Emotions will be used to promote products• Increased speed limits• More roads will be needed
Datta Meghe Institute of
Management Studies
Future Visions of the Food Industry
• This is a recession-proof industry with very slim profit margins
• We see segmentation of markets and niche development• Many consumers/nations leapfrog to the latest trends
rather than following a particular development process• The natural environment is increasingly important• Computer technology linking suppliers gets food to
market at a lower price• In Western countries there is a trend toward less cooking
in the home
Datta Meghe Institute of
Management Studies
Envisioning Techniques
• Linear– step-by-step; scenario planning, etc.
• Intuitive– imagery; brainstorming; analogy
Datta Meghe Institute of
Management Studies
Stimulants to Work Creativity*
• 1) FREEDOM in deciding work to do or how to do it• 2) CHALLENGE to work hard on important projects• 3) RESOURCES needed to do the work• 4) ENCOURAGEMENT from a supervisor who is a good work
model, sets appropriate goals, supports and has confidence in the work group
• 5) WORK GROUP SUPPORTS such as diverse skills, people who communicate well, are open to new ideas, constructively challenge one another’s work, trust and help each other, and feel committed to their work
• 6) ORGANIZATIONAL ENCOURAGEMENT in a culture that supports creativity and communicates a shared vision of organization
Datta Meghe Institute of
Management Studies
Obstacles to Work Creativity
• 1) ORGANIZATIONAL IMPEDIMENTS such as internal political problems, harsh criticism of new ideas, destructive internal competition, avoidance of risk and overemphasis on the status quo
• 2) WORKLOAD PRESSURES such as extreme time pressure, unrealistic expectations, or distractions
Datta Meghe Institute of
Management Studies
Weigh the Odds
• You have 50 coins of which one is slightly heavier than all others. This weight difference can be detected on a balance scale
• What is the least number of weighings required to find the heaviest coin?
Datta Meghe Institute of
Management Studies
Summary
Innovation comes from a Latin word INNOVATIO meaning to RENEW or CHANGE
“ New products, business processes and organic changes that create wealth or social welfare” – OECD
“ Fresh thinking that creates value”
Misconceptions
1. Creativity : It is the capabilities or act of conceiving something original or unusual
2. Innovation : It is the implementation of something new
3. Invention : It is the creation of something that has never been made before and is recognised as the product of some unique insight
Datta Meghe Institute of
Management Studies
Laqs and Saqs
• Explain Innovation with Example• Explain Creativity with Example• What are the Challenges in Implementing
Innovations.
