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Entrepreneurship Development Module-2 MODULE-2 Creativity & Innovation •Creativity is a mental and social process involving the discovery of new Creativity is a mental and social process involving the discovery of new ideas ideas  or or concepts conce pts , or new associations of the creative mind between existing ideas , or new associations of the creative mind between existing ideas  or concepts. or concepts. Creativity is fueled by the process of either Creativity is fueled by the process of either conscious or unconscious conscious or unconscious  insight insi ght. •In simple, it is the ability to bring something new into existence. It In simple, it is the ability to br ing something new in to existence. It emphasizes on the ability and not the activity. emphasizes on the ability and not the activity. Creative Process Exercises on Creativity For our purposes, anything that changes your way of thinking about a For our purposes, anything that changes your way of thinking about a problem (or opportunity). problem (or opportunity). Especially Especially, techniques to cultivate new ideas. , techniques to cultivate new ideas. Exercises on Creativity is nothing but methods of generating creative Exercises on Creativity is nothing but methods of generating creative ideas. The entrepreneur can use several methods to help generate and test ideas. The entrepreneur can use several methods to help generate and test creative ideas, such as: creative ideas, such as:   Focus group, Focus group,   Brainstorming and Brainstorming and 1 Germination Germination The seeding The seeding stage of stage of new idea new idea Recognition Recognition Preparation Preparation Conscious Conscious search for search for Knowledge Knowledge Rationalization Rationalization Incubation Incubation Subconscious Subconscious assimilation assimilation Of information Of information Fantasizing Fantasizing Illumination Illumination Recognition of Recognition of idea as idea as Being feasible Being feasible Realisation Realisation Verification Verification  Application or  Application or test to test to prove idea has prove idea has a value a value Validation Validation

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Entrepreneurship Development Module-2

MODULE-2

Creativity & Innovation

••Creativity is a mental and social process involving the discovery of newCreativity is a mental and social process involving the discovery of new ideasideas 

oror conceptsconcepts, or new associations of the creative mind between existing ideas, or new associations of the creative mind between existing ideas 

or concepts.or concepts.

••Creativity is fueled by the process of eitherCreativity is fueled by the process of either conscious or unconsciousconscious or unconscious 

insightinsight..

••In simple, it is the ability to bring something new into existence. ItIn simple, it is the ability to bring something new into existence. It

emphasizes on the ability and not the activity.emphasizes on the ability and not the activity.

Creative Process

Exercises on Creativity

•• For our purposes, anything that changes your way of thinking about aFor our purposes, anything that changes your way of thinking about a

problem (or opportunity).problem (or opportunity).•• EspeciallyEspecially, techniques to cultivate new ideas., techniques to cultivate new ideas.

•• Exercises on Creativity is nothing but methods of generating creativeExercises on Creativity is nothing but methods of generating creative

ideas. The entrepreneur can use several methods to help generate and testideas. The entrepreneur can use several methods to help generate and test

creative ideas, such as:creative ideas, such as:

 – – Focus group,Focus group,

 – – Brainstorming andBrainstorming and

1

GerminationGermination

The seedingThe seedingstage of stage of 

new ideanew idea

RecognitionRecognition

PreparationPreparation

ConsciousConscioussearch for search for 

KnowledgeKnowledge

RationalizationRationalization

IncubationIncubation

SubconsciousSubconsciousassimilationassimilation

Of informationOf information

FantasizingFantasizing

IlluminationIllumination

Recognition of Recognition of idea asidea as

Being feasibleBeing feasible

RealisationRealisation

VerificationVerification

 Application or  Application or 

test totest toprove idea hasprove idea has

a valuea value

ValidationValidation

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Entrepreneurship Development Module-2

 – – Problem Inventory Analysis.Problem Inventory Analysis.

•• Focus Group:Focus Group:

 –  –  Groups of individuals providing information in a structured format.Groups of individuals providing information in a structured format.

 –  –  A moderator leads a group of people through an open, in-depthA moderator leads a group of people through an open, in-depth

discussion rather than simply asking questions to solicit participant response.discussion rather than simply asking questions to solicit participant response.  –  –  The group of 8 to 14 participants is stimulated by comments fromThe group of 8 to 14 participants is stimulated by comments from

other group members in creatively conceptualizing and developing a newother group members in creatively conceptualizing and developing a new

product idea to fulfill a market need.product idea to fulfill a market need.

 –  –  In addition to generating new ideas, the focus group is an excellentIn addition to generating new ideas, the focus group is an excellent

method for initially screening ideas and concepts. Using one of severalmethod for initially screening ideas and concepts. Using one of several

procedures available, the results can be analyzed more quantitatively, makingprocedures available, the results can be analyzed more quantitatively, making 

the focus group a useful method for generating new product ideas.the focus group a useful method for generating new product ideas.  

•• Brainstorming:Brainstorming:

 – –

Brainstorming method allows people to be stimulated to greaterBrainstorming method allows people to be stimulated to greatercreativity by meeting with others and participating in organizedcreativity by meeting with others and participating in organized

group experiences. This has a greater frequency of occurrence whengroup experiences. This has a greater frequency of occurrence when

the brainstorming effort focuses on a specific product or marketthe brainstorming effort focuses on a specific product or market

idea. When using brainstorming, these four rules should be followed:idea. When using brainstorming, these four rules should be followed:

No criticism is allowed by anyone in the group-no negativeNo criticism is allowed by anyone in the group-no negative

comments.comments.

Freewheeling is encouraged- the wilder the idea, the better.Freewheeling is encouraged- the wilder the idea, the better.

Quantity of ideas is desired- greater the number of ideas.Quantity of ideas is desired- greater the number of ideas.

Combinations and improvements of ideas are encouraged.Combinations and improvements of ideas are encouraged.

•• The brainstorming session should be fun, with no one dominating orThe brainstorming session should be fun, with no one dominating or

inhibiting the discussion.inhibiting the discussion.

•• A large commercial bank successfully used brainstorming to develop aA large commercial bank successfully used brainstorming to develop a

 journal that would provide quality information to its industrial clients. The journal that would provide quality information to its industrial clients. The

brainstorming among executives focused on the characteristics of thebrainstorming among executives focused on the characteristics of the

market, the information content, the frequency of issue, and themarket, the information content, the frequency of issue, and the

promotional value of the journal for the bank. Once a general format andpromotional value of the journal for the bank. Once a general format and

issue frequency were determined, focus groups of vice presidents of financeissue frequency were determined, focus groups of vice presidents of finance  

of Fortune 1000 companies were held in three cities-Boston, Chicago, andof Fortune 1000 companies were held in three cities-Boston, Chicago, and

Dallas-to discuss the new journal format and its relevancy and value to them.Dallas-to discuss the new journal format and its relevancy and value to them.

•• Problem Inventory Analysis:Problem Inventory Analysis:

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Entrepreneurship Development Module-2

 –  –  It is a method for obtaining new ideas and solutions by focusing onIt is a method for obtaining new ideas and solutions by focusing on

problems. In this method, consumers are provided with a list of problems inproblems. In this method, consumers are provided with a list of problems in

general product categories. Then they are asked to identify and discussgeneral product categories. Then they are asked to identify and discuss

products in this category that have the particular problem.products in this category that have the particular problem.

 –  –  For example, Food products – taste, color, weight, appearance,For example, Food products – taste, color, weight, appearance,package and cost will be included in the list of problems.package and cost will be included in the list of problems.

SOURCES OF NEW IDEAS

Some of the more frequently used sources of ideas for entrepreneurs

include; consumers, existing products and services, distribution channels, the

federal government, and research and development.

Consumers

Potential entrepreneurs should continually pay close attention customers.

This attention can take the form of informally monitoring potential ideas and

needs or formally arranging for consumers to have an opportunity to express

their opinions. Care needs to be taken to ensure that the idea or need

represents a large enough market to support a new venture.

Existing products and services

Potential entrepreneurs and intrapreneurs should also establish a

formal method for monitoring and evaluating competitive products and

services on the market. Frequently, this analysis that may result in a new

product or service that has more market appeal.

Distribution Channels

Members of the distribution channels are also excellent sources for

new ideas because of their familiarity with the needs of the market. Not

only do channel members frequently have suggestions for completely new

products, but they can also help in marketing the entrepreneur’s newly

developed products. One entrepreneur found out from a salesclerk in a large

department store that the reason his hosiery was not selling was its color.

By heeding the suggestion and making the appropriate color changes, his

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Entrepreneurship Development Module-2

company became one of the leading suppliers of nonbrand hosiery in that

region of the United States.

Federal Government

The federal government can be a source of new product ideas in two

ways. First , the files of the patent Office contain numerous new product

possibilities. Although the patents themselves may not be feasible, they can

frequently suggest other more marketable product ideas. Several

government agencies and publications are helpful in monitoring patent

applications. The Official Gazette, published weekly by the U.S.Patent

office, summarizes each patent granted and lists all patents available for

license or sale. Also, the Government patents Board publishes lists of

abstracts of thousands of government-owned patents; a goods resource ofsuch information is the Government-Owned Inventories Available for

License. Other government agencies, such as the Office of Technical

Services, assist entrepreneurs in obtaining specific product information.

Research and Development

The largest source of new ideas is the entrepreneur’s own “research

and development.” efforts, which may be a formal endeavor connected with

one’s current employment or an information lab in a basement or garage. One

research scientist in a Fortune 500 company developed a new plastic resin

that became the basis of a new product, a plastic molded modular cup pallet,

as well as a new venture- the Arnolite Pallet Company,Inc,-when the Fortune

500 company was not interested in developing the idea.

METHODS OF GENERATING IDEAS

Even with a wide variety of sources available, coming up with an idea to serve

as the basis for a new venture still posed a problem. The entrepreneur can

use several methods to help generate and test new ideas, such as: focus

groups, brainstorming, and problem inventory analysis.

FOCUS GROUPS

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Focus groups have been used for a variety of purposes since the 1950s. A

moderator leads a group of people through an open, in-depth discussion

rather than simply asking questions to solicit participant response. For a

new product area, the moderator focuses the discussion of the group ineither a directive or a nondirective manner. The group of 8 to 14

participants is stimulated by comments from other group members in

creatively conceptualizing and developing a new product idea to fulfill a

market need. One company interested in the women’s slipper market

received its new product concept for a “warm and comfortable slipper that

fits like an old shoe” from a focus group of 12 women from various

socioeconomic backgrounds in the Boston area. The concept was developed

into a new product that was a market success. The basis of the advertising

message came from comments of focus group members.

In addition to generating new ideas, the focus group is an excellent

method for initially screening ideas and concepts. Using one of several

procedures available, the results can be analyzed more quantitatively, making

the focus group a useful method for generating new product ideas.

Brainstorming

The brainstorming method allows people to be stimulated to greater

creativity by meeting with others and participating in organized group

experiences. Although most of the ideas generated from the group have no

basis for further development, sometimes a goods idea emerges. This has a

greater frequency of occurrence when the brainstorming effort focuses on

a specific product or market area. When using brainstorming, these four

rules should be followed:

1. No criticism is allowed by anyone in the group-no negative comments.

2. Freewheeling is encouraged- the wilder the idea, the better.

3. Quantity of ideas is desired-the greater the number of ideas, the

greater the likelihood

Emergence of useful ideas.

4. Combination and improvements of ideas are encouraged; ideas of others

can be used

to produce still another new ides.

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Entrepreneurship Development Module-2

The brainstorming session should be fun, with no one dominating or inhibiting

the discussion.

A large commercial bank successfully used brainstorming to develop a

 journal that would provide quality information to its industrial clients. The

brainstorming among executives focused on the characteristics of themarket, the information content, the frequency of issue, and the

promotional value of the journal for the bank. Once a general format and

issue frequency were determined, focus groups of vice presidents of finance

of Fortune 1000 companies were held in three cities-Boston, Chicago, and

Dallas-to discuss the new journal format and its relevancy and value to them.

Problem Inventory Analysis:

Problem inventory analysis uses individuals in a manner that is analogous tofocus groups to generate new product ideas. However, instead of generating

new ideas themselves, consumers are provided with a list of problems in a

general product category. They are then asked to identify and discuss

products in this category that have the particular problem. This method is

often effective since it is easier to relate known products to suggested

problems and arrive at a new product idea than to generate an entirely new

product idea by itself. Problem inventory analysis can also be used to test a

new product idea.

CREATIVE PROBLEM SOLVING:

Creativity is an important attribute of a successful entrepreneur

Unfortunately, creativity tends to decline with age. Education, lack of use,

and bureaucracy, Creativity generally declines in stages, beginning when a

person starts school. It continues to deteriorate through the teens and

continues to progressively lessen through age 30, 40 and 50. Also, the latent

creative potential of an individual can be stifled by perceptual, cultural,

emotional, and organizational factors, Creativity can be unlocked and

creative ideas and innovations generated by using any of the creative

problem-solving techniques.

Brainstorming:

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Entrepreneurship Development Module-2

The first technique, brainstorming, is probably the most well known and

widely used for both creative problem solving and idea generation. In

creative problem solving, brainstorming can generate ideas about a problem

within a limited time

Creative Problem Solving Techniques

* Barnstorming * Forced relationships

* Reverse barnstorming * Collective notebook method

* Brainwriting * Attribute listing method

* Gordon method * Big-dream approach

* Checklist method * Parameter analysis

* Free association

frame through the spontaneous contribution of participants. A goodbrainstorming session starts with a problem statement that is neither too

broad (which would diversity ideas too greatly so that nothing specific would

emerge) nor too narrow (which would tend to confine responses).3 Once the

problem statement is prepared, 6 to 12 individuals are selected; to

participate. To avoid inhibiting responses, no group member should be a

recognized expert in the field of the problem. All ideas, no matter how

illogical, must be recorded, with participants prohibited from criticize or

evaluating during the brainstorming session.

Reverse Brainstorming:

Reverse brainstorming is similar to brainstorming, except that criticism is

allowed. In fact, the technique is based on finding fault by asking the

question. “In how many ways can this idea fail?” Since the focus is on the

negative aspects of a product, service, or idea, care must be taken to

maintain the group’s morale. Reserve brainstorming can be effectively used

before other creative techniques to stimulate innovative thinking. 4 The

process usually involves the identification of everything wrong with an idea,

followed by a discussion of ways to overcome these problems.

Brain writing:

Brainwriting is a form of written brainstorming. I was created by Bernd

Rohrbach at the end of 1960s under the name Method 635 and differs from

classical brainstorming by giving participants; more time to think than in

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Entrepreneurship Development Module-2

brainstorming sessions, where the ideas are expressed spontaneously.

Brainwriting is silent, written generation of ideas by a group of people. The

participants write their ideas on special forms or cards that circulate within

the group, which usually consists of six members. Each group member

generates and writes down three ideas during a five-minute period. Theform is passed on the adjacent person, who writes down three new ideas, and

so on, until each form has passed all participants. A leader monitors the

time intervals and can reduce or lengthen the time given to participants

according; to the needs of the group. In a variation of this idea-generation

method, the participants are located at their own workplaces and the sheets

are rotated by e-mail, in which case the time interval can be longer.

Gordon Method

The Gordon method, unlike many other creative problem-solving techniques,

begins with group members not knowing the exact nature of the problem.

This ensures that the solution is not clouded by preconceived ideas and

behavioral patterns.6 The entrepreneur starts by mentioning a general

concept associated with the problem. The group responds by expressing a

number of ideas. Then a concept is then revealed, enabling the group to

make suggestions for implementation or refinement of the final solution.

Checklist Method

In the checklist method, a new idea is developed through a list of related

issues or suggestions. The entrepreneur can use the list of questions or

statements to guide the direction of developing entirely new ideas or

concentrating on specific “idea” areas. The checklist may take any form and

be of any length. One general checklist is as follows7.

Put other uses? New ways to use as is? Other uses if modified?

Adapt? What else is like this? What other ideas does this suggest? Does

past offer parallel? What could I copy? Whom could I emulate?

Modify? New twist? Change meaning, color, motion, odor, form, shape?

Other changes?

Magnify? What to add? More time? Greater frequency? Stronger? Larger?

Thicker? Extra value? Plus ingredient? Duplicate? Multiply? Exaggerate?

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Free Association

One of the simplest yet most effective methods that entrepreneurs can use

to generate new ideas is free association. This technique is helpful in

developing an entirely new slant to a problem. First, a word or phraserelated to the problem is written down, then another and another, with each

new word attempting to add something new to the ongoing thought

processes, thereby creating a chain of ideas ending with a new product idea

emerging.

Forced Relationships

Forced relationships, as the name implies, is the process of forcing

relationships among some product combinations. It is a technique that asksquestions about objects or ideas in an effort to develop a new idea. The new

combination and eventual concept is developed through a five-step process.

1. Isolate the elements of the problem.

2. Find the relationships between these elements.

3. Record the relationships in an orderly form.

4. Analyze the resulting relationships to find ideas or patterns.

5. Develop new ideas from these patterns.

Collective Notebook Method

In the collective notebook method, a small notebook that easily fits in a

pocket-containing a statement of the problem, blank pages, and any

pertinent background data is distributed. Participants consider the problem

and its possible solutions, recording ideas at least one, but preferably three

times a day. At the end of a month, a list of the best ideas is developed,

along with any suggestions,9 This technique can also be used with a group of

individuals who record their ideas, giving their notebooks to a central

coordinator who summarizes all the material. The summary becomes the

topic of a final creative focus group discussion by the group participants.

Attribute Listing

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Attribute listing is an idea-finding technique that requires the entrepreneur

to list the attributes of an item or problem and then look at each from a

variety of viewpoints. Through this process, originally unrelated objects can

be brought together to form a new combination and possible new uses that

better satisfy a need.

Big-Dream Approach

The big-dream approach to coming up with a new idea requires that the

entrepreneur dream about the problem and its solution, in other words,

thinking big. Every possibility should be recorded and investigated without

regard to all the negatives involved or the resources required. Ideas should

b e conceptualized without any constraints until an idea is developed into a

workable form.

Parameter Analysis

A final method for developing a new idea-parameter analysis-involves two

aspects; Parameter identification and creative synethsis.12 As indicated in

Figure 5.1, step one (parameter identification) involves analyzing variables in

the situation to determine their relative importance. These variables

become the focus of the investigation, with other variables being set aside.

After the primary issues have been identified, the relationships between

parameters that describe the underlying issues are examined. Through an

evaluation of the parameters and relationships, one or more solutions are

developed; this solution development is called creative synthesis.

Figure 5.1 Illustration of Parameter Analysis

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Entrepreneurship Development Module-2

Market Need

`

I

nvention which

Meets the need

The Invention Process

INNOVATION

•• It is the act that endows resources with a new capacity to createIt is the act that endows resources with a new capacity to create

wealth.wealth.

•• By innovation, Entrepreneurs try to create new and different valuesBy innovation, Entrepreneurs try to create new and different values

and new and different satisfaction, to convert a ‘material’ into ‘resource’, orand new and different satisfaction, to convert a ‘material’ into ‘resource’, or

to combine existing resources in a new and more productive configuration.to combine existing resources in a new and more productive configuration.

•• Innovation may occur in any one of this following five forms –Innovation may occur in any one of this following five forms – – – Launching new product in the marketLaunching new product in the market

 – – Introduction of new technology in productionIntroduction of new technology in production

 – – Creating new marketsCreating new markets

 – – Discovery of new and better sources of RMDiscovery of new and better sources of RM

 – – Creation of monopoly and breaking of monopolyCreation of monopoly and breaking of monopoly

•• Innovation is a process of taking new ideas to satisfied customers. ItInnovation is a process of taking new ideas to satisfied customers. It

is the conversion of new knowledge into new products and services.is the conversion of new knowledge into new products and services.

•• Innovation is aboutInnovation is about creating valuecreating value andand increasing efficiencyincreasing efficiency, and, and

therefore growing your business.therefore growing your business.

•• ““Without innovation, new products, new services, andWithout innovation, new products, new services, and new ways ofnew wa ys of

doing businessdoing business would never emerge, and most organizations would be foreverwould never emerge, and most organizations would be forever

stuck doing the same old things the same old way.”stuck doing the same old things the same old way.”

11

Technology

observation

 Need

Analysis

Parameter 

Identification

Creative

synthesis Realization

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Entrepreneurship Development Module-2

Systematic Innovation

•• It consists, in purposeful and organized search for changes, and in theIt consists, in purposeful and organized search for changes, and in the 

systematic analysis of the opportunities such changes might offer forsystematic analysis of the opportunities such changes might offer for

economic and social innovation.economic and social innovation.•• Systematic innovation means monitoring following seven sources forSystematic innovation means monitoring following seven sources for

innovative opportunity –innovative opportunity –

 – – The unexpected – unexpected success / failure or outside eventThe unexpected – unexpected success / failure or outside event

 – – The incongruity – between reality as it actually is and reality as it isThe incongruity – between reality as it actually is and reality as it is

assumed to be or ought to be.assumed to be or ought to be.

 – – Innovation based on process need.Innovation based on process need.

 – – Changes in industry structure or market structure, which catchesChanges in industry structure or market structure, which catches

everyone unawareseveryone unawares

 – –

Demographics (population changes)Demographics (population changes) – – Changes in perception, mood and meaningChanges in perception, mood and meaning

 – – New knowledge – scientific and non-scientificNew knowledge – scientific and non-scientific

Innovation Strategies

•• Financial backing to innovationFinancial backing to innovation

•• Give opportunities to employeesGive opportunities to employees

•• Skillful recruitment policySkillful recruitment policy

•• Information from outside the organizationInformation from outside the organization

•• Target being set for innovationTarget being set for innovation•• Employees should be rewardedEmployees should be rewarded

Principles of Innovation

•• Ideas are fragile.Ideas are fragile.

•• Ideas are organic.Ideas are organic.

•• All ideas have value and should be given a hearing.All ideas have value and should be given a hearing.

•• The originator of an idea needs assistance in idea enhancement and inThe originator of an idea needs assistance in idea enhancement and in

promoting the idea internally.promoting the idea internally.

•• The originator is the initial advocate of an idea and should be activelyThe originator is the initial advocate of an idea and should be activelyinvolved in its development.involved in its development.

•• Only ideas, which have been enhanced to demonstrate potential value,Only ideas, which have been enhanced to demonstrate potential value,

will be brought to management.will be brought to management.

Profits & Innovation

Profit can be measured by dollars per item, per hour, per customer, perProfit can be measured by dollars per item, per hour, per customer, per

transaction, or per some other parameter (the “denominator”). Change thetransaction, or per some other parameter (the “denominator”). Change the 

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way you do business and get more control over this parameter and how youway you do business and get more control over this parameter and how you 

earn your profit.earn your profit.

 – – Be aware of the beliefs and principles in your industry that areBe aware of the beliefs and principles in your industry that are

barriers to innovation.barriers to innovation.

 – – Develop a recurring revenue stream.Develop a recurring revenue stream. – – Change your sales mix among pre-sales service, products, maintenanceChange your sales mix among pre-sales service, products, maintenance

and after-sales service.and after-sales service.

 – – Offer lower-priced products that provide higher asset turnover.Offer lower-priced products that provide higher asset turnover.

 – – Offer higher-priced products that have higher profit margins.Offer higher-priced products that have higher profit margins.

 – – Change your cost structure by shifting fixed costs to variable costsChange your cost structure by shifting fixed costs to variable costs

or by shifting your costs to another supplier.or by shifting your costs to another supplier.

Why Innovate?

The pace of innovation around the world is increasing and is driven by fiveThe pace of innovation around the world is increasing and is driven by fivemajor trends:major trends:

•• Increasing global competitionIncreasing global competition – Free trade, capital mobility, labour– Free trade, capital mobility, labour

mobility and global knowledge enable companies large and small to compete inmobility and global knowledge enable companies large and small to compete in  

markets anywhere and everywhere. Your competitors could be anyone.markets anywhere and everywhere. Your competitors could be anyone.

•• Increasing advances in technologiesIncreasing advances in technologies – are providing endless– are providing endless

opportunities for new types of products and services. The development ofopportunities for new types of products and services. The development of

some technologies is increasingly rapid or complex and requires thesome technologies is increasingly rapid or complex and requires the

resources of more than one organization.resources of more than one organization.

•• Changing and diverse market needsChanging and diverse market needs – Demographics, politics, cultures– Demographics, politics, cultures

and society are changing in different ways in each local region. More peopleand society are changing in different ways in each local region. More people

around the world can afford to buy new and better things. Consumers wantaround the world can afford to buy new and better things. Consumers want

to have choice and control, to interact with others, and to express theirto have choice and control, to interact with others, and to express their

individuality.individuality.

•• Increasing volatility of natural resourcesIncreasing volatility of natural resources – Changing supply and– Changing supply and

demand of energy and raw materials affects their prices. Companies mustdemand of energy and raw materials affects their prices. Companies must

assess their exposure and minimize their risks.assess their exposure and minimize their risks.

•• Increasing environmental concernsIncreasing environmental concerns – The earth’s environment is– The earth’s environment is

increasingly threatened by man and industry. People want moreincreasingly threatened by man and industry. People want more

environmentally friendly products and sustainable business practices.environmentally friendly products and sustainable business practices.

Who Innovates?

• Your employees can be a very rich source of innovation, especially

those who have contact with customers. But if employees are not motivated

or given incentives to innovate, they will simply maintain the status quo –

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with all its good and bad consequences. Effective methods of generating new

ideas from employees are:

• First, make sure you have the right employees in the right

positions to start with.

• Then, let them network, interact, collaborate and share witheach other in the organization and with outsiders.

• Have as many employees as possible thinking of ways to improve

 your products and business as part of their regular work. Make it fun.

Don’t “command” it.

• Allow some free time (maybe 10%) for employees to pursue

ideas that they are interested in or think might be worthwhile. (They

will be happier and pay you back with 20% more productivity.)

• Company suggestions – Have a system for getting new ideas

from all employees. Define the authority, responsibility andaccountability to make the process effective.

• Brainstorming sessions can generate original ideas. Don’t make

them too formal or too controlled. Just let the participants’ “neurons

fire” and collect the fallout.

• Don’t punish employees for ideas that don’t “fit the mould” or

fail to work out. Make failure a positive learning experience. Learn

from mistakes and move on.

How to Innovate?

•• Innovation can come from anywhere or anyone inside or outside anInnovation can come from anywhere or anyone inside or outside an

organization. The main ingredients of successful innovation are a freshorganization. The main ingredients of successful innovation are a fresh

perspective, a diverse source of ideas, and an open environment.perspective, a diverse source of ideas, and an open environment.

 – – Understand the trends and drivers in your industryUnderstand the trends and drivers in your industry

 – – Control the way you earn your profitControl the way you earn your profit

 – – Compete differently in the value chainCompete differently in the value chain

 – – Look at customers in a different wayLook at customers in a different way

 – – Expand into new markets and customersExpand into new markets and customers

 – – Develop new products, services or processesDevelop new products, services or processes – – Pursue a range of degrees of noveltyPursue a range of degrees of novelty

 – – Foster a culture of innovationFoster a culture of innovation

 – – Look outside your organization for ideas and opportunitiesLook outside your organization for ideas and opportunities

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