ASSIGNMENT

INNOVATION MANAGEMENT

SUBMITTED BY:
MUHAMMAD FAISAL IQBAL MBA INNOVATIVE MANAGEMENT GROUP: H I.D 37876

SUBMITTED TO:
PROF. DR ELENI TSITSIRIGOU

BRITISH INSTITUTE OF TECHNOLOGY AND E-COMMERCE

INNOVATION and CREATIVITY

INTRODUCTION
If you say innovation and creativity are vital to growth, Innovation and creativity are very important for the success and growth if u ask this from ten people, nine will agree with this but if u ask that how you can implement creativity in your daily routine life, nine people out of ten will reply in negative.[1] Kris Murrin, co-founder of !hatif!, newdesign, September 2001 Innovation and creativity are commonly use words in daily business now days and these are highly linked with the success of an organization, most of the managers accept this that innovation and creativity is very important for the success an organization... A company at the leading edge understands that the innovation is much more that R&D and product. Now a days innovation is employed to increase the revenue and profit, and employed to increase the value and repute of a company this value is created for both i.e. firm and the consumer An invention is different from an innovation at any particular time in that it does not have commercial value but it may have in future. There are many essential ingredients, or elements of an innovation ecosystem. They are rooted in national culture and take years to develop: Trust, Curiosity, tolerance of diversity, faith, confidence, Lack of fear, the will to make the world better place, the will to take the risk and fail. Some other factors include: A written innovation strategy, a filter, an innovation process, a rewards and recognition system, humility, respect for insignificant technologies/competitors. We can minimize the environmental damage through innovation increases the productivity, profitability and innovation accelerate the growth .innovation provides valuable products and services at lower price When we come to measure the innovation management performance of a company we have to count all the influencing factors as there are a lot of characters which should be keep in

mind to analyze the innovation management performance House of innovation demonstrates all the indicators which effect the innovation management these indicators are innovation strategy, innovation procedures, originations and its culture all of these factors are independent the figure below describes the hierarchy of these factors

fig1.1

Why is Innovation important?

Effective innovation boosts the effectiveness and efficiency of organizations and individuals. Innovation reduces waste and environmental damage. Innovation creates growth, increases productivity, and economic wealth. Innovation provides better goods and services at a cheaper price.

Typical Reason for Innovation

Few reasons for innovation are: To gain the response of the customers To capture maximum market To lead the industry Explore new market Enhance the services and produce quality products To bring the variability in product type To offer the product at cheaper price To maximize the profit

Difference between Innovation and Creativity:

According to Theodore Levitts classic definition of creativity and innovation: Creativity is thinking up new things. Innovation is doing new things. As we know that both of these terms Innovation and Creativity are used interchangeably .Both are too closely linked to be exclusive from one another. It is important to distinguish between innovation and creativity because the processes are different, the risks are different, the staring points are different and the climates needed for achievement are different. We can take innovation as to add something different product and some effective change in the process. The emphasis is on adding and existing. It means that the product/process is already done from scratch and we have just changed it for the betterment or fulfill a different need. While create is define as the cause something to come into being. The product came into being because of this process and did not exist before. It is original and unique. So we can say that creativity is basically the process which produces the genuine goods on other hand innovation is the alteration or the change in the existing product. Creativity can be taught and learned as it is a proceess.There are many methods and strategies for creative thinking and It is possible for companies to train their staff, teams and organization so they can improve their performance creatively. Innovation, on the other hand is very imformal.One cant learn how to be innovative because there is no specific knowledge that could be consider as the basis of teaching innovation. Most of the innovative techniques are derived from what we know about creativity.

In modern world we need both, innovation and creativity to compete the world. Most of the organizations need constant improvement in their existing products via innovating new changes, as well as require to create new products to meet the unfulfilled needs.

Barriers to Innovation and Creativity:

There are many factor which effect the overall producer of innovation and creativity like: Determination: It is the key requirement of the Innovation and creativity Without time, patience and effort one could reach a point where he/she give up prematurely and does not improve the creative producer. Routine Life: Habits can be enemies of creativity .Most of the people acquire routines of movement work expression and thinking.. Excessive tension: Creativity often makes a person uncertain and confused. One dont aware of the results before starting and this short coming of a good basis can create tension. Muted Drive: Need for change evolved before any significant development. This is the vital key for the creative thinking. Lack of Opportunity: In the history, most of the successful innovation was brought up by the people who had been giving up spending their lives in routine manures through illness or even time being disgrace. Lack of Effective Methodology: The inappropriate methods of problem solving and decision-making slow down the process of creativity. Even though creativity involves creative and innovation ideas, there is feasibility to define different possibilities of organizing such work to maximize the chances of success.

Innovation Strategies
Merle C Crawford(1980) described four innovation strategies. Inventive Innovation Newly launched product. Adaptive Innovation Comes after inventive innovation. Economic Innovation Cost effective product production. Innovative Application Effective use of new technology. Each innovation strategy requires innovation... However, the innovation will occur in different areas. Each innovative strategy can be risky in reality, even if the firm perceives it as being low risk.

Attributes of Innovations
Following are the attributes of innovation:

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Comparative Benefit How the new product is better than the previous one and what are the comparative benefits of the product is as compare to previous one ? Compatibility Does the innovation is able to influence existing infrastructure?: Its a measure of the degree to which an innovation is perceived as being compatible with existing values, past experience and the needs of potential adopters. Complexity is the innovation easily understandable to the consumer? Its to measure that how much difficult the innovation is taken to understand and employ. One should try to make the innovation process easy to understand and adtoptable.It seems that the complex innovative ideas are not successfully completed. Trialability : Its the attribute in which we test a new product or idea before bringing it into the market. So that the effectiveness of the innovative idea can be tested on the basis of experiments. Observability Will the customer can identify the effectiveness of the innovation? It is the calibration through which other people can see the innovation to Innovations visibility can be describe as the peer discussion ,as peers working on adoption of a new procedure to develop a product and often require information about it.

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Innovation-Decision Process Model:

Innovative way to solve a problem needs unique ideas and expertise and this process is dived into different stages.

Fig. 1.1

Identifying problem/Knowledge:
Problems should be identified and critically analyzed to produced an effective solutions. It requires complete understanding to solve the problem all the facts and figures must be clear first someone should avoid to find out the results without completely identifying the questions there are various benefits to identify a problem. three of them are discuss below : Calibration of problem can be realistically estimated . The main objectives and success methods can be known. A suitable planning of human organization and work process .

Collecting ideas/Persuasion:
The producer for creating ideas is called ``Brainstorming`` and this process is explained as . Give a paper to every one to note down the important things. Allocate a topic. Advise everyone to write every brilliant ideas quietly on the given piece of paper. Collect the informations in the form of groups. Critically analyze the ideas for innovation. Select an issue or a topic. Note the issues .

Create the definite to end the session. Now right down all the ideas during the brainstorming regardless how weird or creepy or looking to be known relevant and not to be evaluated When the session is ended Organize the ideas in an appropriate order and then critically analyze these ideas.

Screening Ideas for Application/Decision:

Once you have done with the brainstorming period every idea must be reconsidered by keeping in mind the five points: i) Value added potential to the internal or external customers. ii) How effective it can be? iii) Is it practical in daily life? iv) Is it one of the good option among the various obtained options? v) Do we wish to make it work?

Benefits of Innovation

Innovation and creativity create significant differential and market space between you and your competitors. Innovation and creativity is the key to motivation,inspiration.It lead your company; to think to the future and drive innovation within the organization. Creative ideas and innovative strategies brought by a companys Think Tanks influence the business in all the aspects.. Innovative problem solving methods are very much cost effective for organizations. Innovative ideas evolved from the customer demand Open up new markets. Utilize partnerships, acquisitions, licensing options and Intellectual property assets. As a micro, small or medium company, operate in and dominate markets way beyond your size and financial weight. Innovative ideas enable an organization/business to get new opportunities to grow and increase profit margins

How to Improve Innovation?

There are thousands of ways to strengthen the team, department or organizations innovative muscle.

During the establishment of team of innovators it should assure that the team includes representatives from customer service, operations management, and other interdependent departments. So the group openly explores problems with respect to all the prospective which brings the solutions. Make arrangement to train individuals different brilliant ideas and issue solving methods. This will improve the Innovative-decision making process. Arrange contests, open office areas for brainstorming. It will help in development of innovation and creativity in your employees. Also pay some reward to innovation and creativity. Regular meetings should schedule to discuss issues and up coming ideas. These meetings should open to all employees at all level. Advertise the domestic shows where employs discuss their innovative stories on recent work accomplishments. The Edison factor should be encouraged within an organization to improve the innovation. People should know that failure is also the part of game. Edison developed working bulb after 9000 experiments. It's OK to fail but the important thing one should practice is learn your lesson from a failure. Engage peoples to develop creative ideas by their own. Try to provide special area equipped with creative videos, interesting mind games and books Try to interact with your customer to get their views and information collects them to analyze your goods and services to bring the value to their goods and products. Assign different situations, problems and issues to your peoples and ask them to come up with creative solution to the assigned task. Evaluate all the submitted ideas and reward the best one. Keep in touch with the short coming in the ideas. Identify the group or the person thats has come up with most creative and innovative ideas and contributed to resolve issues. This should be done on regular basis after a defined time period. Finally, try to manage a learning, calm, composed peaceful at workplace for your emplooyes.It will defiantly rewards "out of the box" thinking and acting. In other words always encourage innovation, risk taking and false start. Try to be mistakes tolerant

Examples of Innovation
Few examples of innovation and creativity are as following:

GOOGLE
Google is generating plenty of buzz in multiple areas with new products. Once upon a time, it was all about Web search. No more. In 2009, Google introduced its first device, the Nexus One phone, a new collaborative tool called Wave, and a new music service.

Meanwhile, in response to Hulu and other sites, YouTube struck deals with studios and networks to add premium content to the world's top online destination for video. At Google, the search for new opportunities and markets is never-ending.

APPLE
It is very difficult to grasp that Apple opened its Applications store about two years ago. The no. of application its offering before opening store was It's hard to fathom that140, 000.They generated about $1 billion yearly revenue. Their customers have downloaded about three billion applications. These were all due to the successful launch of the brilliant innovative iPad.In the mean time apples to cover the music streaming company named Lala which generated a lot of revenue and profit. Revenue-wise, it was another fruitful year for Apple -- $36.5 billion, a 12% increase from 2008.

FACEBOOK
Facebook took the top spot, having recently announced that it has 400 million members worldwide, with almost a quarter of this audience accessing its pages via their mobile phones. The Palo Alto-based platform added a range of fresh options for brands and advertisers over the last 12 months, and also strengthened its position relative to Twitter, the micro logging service. Mark Zuckerberg, Face books chief executive, said "what 2009 was about for us was making the site better and growing users."Facebook took the top spot, having recently announced that it has 400 million members worldwide, with almost a quarter of this audience accessing its pages via their mobile phones.The Palo Alto-based platform added a range of fresh options for brands and advertisers over the last 12 months, and also strengthened its position relative to Twitter, the micro logging service. Mark Zuckerberg, Facebook's chief executive, said "what 2009 was about for us was making the site better and growing users." Lat year they have revenue of $15 billion valuation to boot, thanks to Microsoft's $240 million investment.

AMAZON:
In year 2009 Amazon generated appx. $24 billion in revenue. Its 26% more from year 2008.All the revenue is not through books but also though its new and innovative plans i.e. the data storage and computing services. These two innovative ideas are becoming popular online utility for ESPN,eHarmon and others. They are also expanding their music video and electronic check out services. Which were generally consider as Apple and Google strength. they also written a book on diversify with ingenuity.

Conclusion
Businesses, now days are encountering with raped transition that could never seen before facing rapid change like never before. There are various factors which are generating these changes; includes globalization, enchasing competition, consumers variability of new form of technology. In such situation creativity and innovation is the only key to success regardless of any formalities, restrictions or requirements. Though both of these terms are different but interlinked. If an organization totally rely on innovation will prosper until their products and services run out of gas and become obsoeteand non competitive. On the other hand ,organizations that depend upon the creativity will have their new products and services ready to launch but their all ready existing products remain uncared ,not up-to-dated and competitive to generate revenue to help their creativity. In future, the successful leader will be the one who understand that both creativity and innovation are essential and able to make booth of them happen in the right way at the right time in the organization/business. Many policy instruments will be required from the State to encourage innovation.As shown in the figure below:

New innovations and inventions can only be successful if they are developed according to the need of the recent age. Lack of innovation will simply a disaster for business/organization as it cause failure against competitors, low revenue,moreexpansive, instability , panic within the staff. The companies with lack of innovation and creativity will no more survive and vanished from the face of the earth.

REFERENCES

1. Managing Innovation, Design and Creativity Von Stamm

by Bettina

2. https://www.improveinnovation.eu/opencms/opencms/en/01_IMP/01_IMP_03_ATK

3. http://lateralaction.com/articles/creativity-innovation

4. http://www.prm.nau.edu/prm426/creativity_innovation_arti

cle.html

5. The new unblocked manager: a practical guide to selfdevelopment By Dave Francis, Mike Woodcock

6. An integrative approach to managing innovation By Judith Brown Kamm

7. http://www.mja.com.au/public/issues/180_06_150304/san10

748_fm.pdf

8. Managing Innovation, Design and Creativity By Bettina Von Stamm

9. http://www.macven.com/Innovation_Services/How_Innovati

on_Makes_Money/how_innovation_makes_money.html

10. http://ideaflow.corante.com/archives/2003/06/09/thediffere

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