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Module 2
Creativi ty & I nnovation
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Creativi ty:is the Discovery of Something that is
novel but also
useful or
relevant or
economical or
elegant or
valuable
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Creativi ty is a combination of
Fluency
Flexibility
Originality
Problem Sensitivity Discovering cause and effect
Problem Diagnosis
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Types of Creativity
I. According to Maslow* Primary Creativity
* Secondary Creativity
II. According to Ainsworth Land* Elaborative
* Improvement Oriented* combination or synthesis of superior
quality
* Transformation
III According to Iring Taylor
* Spontaneous Creativity* Technical Creativity
* Inventive Creativity * Emergentive creativity
* Innovative Creativity
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Barr iers to creativity:
Resistance to change
Lack of initiative
Restriction on Interaction
Fear of something going wrong
Lack of Recognition
Resource constraint
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Creativity Process:
Preparation Incubation
Insight
Evaluation
Elaboration
Techniques for improving Creative Process: Trustful Management
Open channel of Communication
Contact with outsiders
Willingness to accept change
Enjoy in experimenting new ideas
Use of techniques that encourage ideas
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Steps in the pursuit of setting up an enterprise
I. Searching for prospective business ideas and
sources
II. Processing of these ideas and selecting the best
idea
III. Collecting the required resources and setting up
the enterprise
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Source of new ideas
Consumers Competitors
Distribution Channels Government
R &D
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Methods of generating ideas:
Focus groups : Groups of individuals providing information in a
structures format
Brainstorming: A group method for obtaining new ideas &
Solutions
z
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Problem inventory Analysis:
A method for obtaining new ideas and solutions by focusing on problems
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Screening, Processing of the ideas and selecting the best
idea
Technical Feasibilty
Financail Feasibility
Economic Aspect
Managerial Aspect
Market aspect
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I deas into OpportunitiesTypes of opportuni ties
Additive opportunities
Complementary opportunities
Break through opportunities
Global level opportunities
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Steps in Selection of new business ideas:
New product ideasIdeas screening
Concept development & Testing
Concept testing
Consumer testingBusiness potential analysis
Product development
Test Marketing
Commercialization
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Creative problem solving:
Heuristics
Brain storming
Synectics
Value analysis
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Heuristics
Stands for strategies using readily accessible, though loosely applicableinformation to control problem solving in human beings and machines
Basic Heur istics for getting started in Directed creativi ty:Make it a habit to purposefully pause ¬ice things
Focus your creative energies on just a few topic areas
Avoid being too narrow in the way you define your problem
Try to come up with original & useful ideasWhen you need creative ideas, remember : attention escape & movement
Pause & carefully examine ideas that make you laugh the first time you hear them
Recognize that your streams of thought & patterns of judgment are not inherently right or
wrong
Make a deliberate effort to harvest, develop and implement at least a few of the idea you
generate
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Brain Storming:
Group members or individuals are encouraged to spellout maximum number of possible solutions of a specific
or stated problem
Emphasis is laid on the number of possible solutions
Principles of Brainstorming:
During the generating phase of ideas, evaluation
process is differed
Quantity begets Quality-Right environment must be
provided for generating maximum number of ideasNovel ideas in certain cases may not appear to be
practical ideas
Better to appreciate ideas of others as well as one's own
previous ideas.
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Synectics:
is applied in finding innovative approaches to a numberof intractable technical problems
Major analogies:
Direct analogy
Personal analogy
Fantasy analogy
Symbolic analogy
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Value analysis:is an approach to improving the value of a product or process
by understanding its constituent components and their
associated costs.
Is a cost reduction and problem solving technique that
analyses an existing product or service in order to reduce or
eliminate any costs that do not contribute to value or
performance
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Key concepts of Value analysis: Value Function
Value analysis
Need
The Value analysis process:
1. Orientation/ Preparation2. Information
3. Analysis
4. Innovation/Creativity
5. Evaluation
6. Implementation and monitoring
Use of basic techniques like Matrices, Pareto chart, Pert &
Gantt Diagrams.
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Innovat ion
Implies doing new things or doing of things that arealready being done in a new way
Prof i ts and Innovation
An entrepreneur should innovate for the present
period and not for futureInnovation must be easy to understand for desired
result
An entrepreneur must posses the knowledge,
ingenuity, Diligence, Persistence and commitment to
innovation.
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Modules o f Inno vat ionType Description Examples
Innovation Totally newproduct service orprocess
Extension New use ordifferentapplication of analready existing
product
Ray Kroc
Duplication Creativereplication of anexisting concept
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Type Description Examples
Synthesis
Combination of existingconcepts and factors intoa new formulation foruse
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Sources & Trans fer of Innovations:
Source Example
UnexpectedOccurrences
Unexpected Success:
Incongruities Unexpected Success:Ford;s Edsel over nightpackage delivery
Process Needs
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Source Example
Industry & Marketchanges
Demographic changes
Perceptual Changes
Knowledge basedconcept