Creativity & Innovation Notes - IV - Sem - 2016 PDF

REFERENCE MATERIAL- CREATIVITY & INNOVATION 2016-17
Creativity & Innovation

(Please note that these notes are not comprehensive and therefore additional reading is recommended
from diverse sources)
Innovation is the successful exploitation of new ideas.

S Sr. No
1
Syllabus
Introduction to Creativity and Innovation, Nature of Creativity: Person,
Process, Product and Environment
Nature of Innovation: Making the Idea a Reality
Need for Creativity and Innovation in Organizations
Role of Creativity and Innovation in the Organisation
Dynamics that underlie Creative Thinking
Creative insight: Why do good ideas come to us and when they do?
Idea evaluation: What to do with generated ideas? Creativity in Teams
Developing and Contributing to a Creative-Innovation Team Managing for

Creativity and Innovation
Tools and Techniques in Creativity
10
Evolving a Culture of Creativity and Innovation in Organizations
11
Creativity in the Workplace
12
Creativity and Change Leadership
13
Researching/Assessing Creativity
14
Global Perspectives on Creativity
15
Case Studies
Books Referred:
1. Innovation Management Allan Afuah Oxford Publications Managing & Shaping
2. Innovation Steve Conway & Fred Steward Oxford Publications
Business Ethics
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Form
Product
Service
Process
Mgmt study material created/compiled by- Prof Ankita Asthana
Forms of Innovation
Innovation
Innovator
Walkman
Akio Morita/Sony
Ballpoint Pen
Laszlo Biro
Television
John Logie Baird
Spreadsheet
Dan Bricklin
Telephone Insurance
Peter Wood/RBS
Credit Card
R. Schneider/ F. Mc
Namara
Internet Bookstore
Jeff Buzos
Moving Assembly Line Henry Ford
Float Glass
Alistair Pilkington
Computer Airline
IBM/American Airlines
Reservations(SABRE)
Country
Japan
Hungrary
UK
USA
UK
USA
USA
USA
UK
USA
Introduction to Creativity and Innovation, Nature of Creativity: Person,

Process, Product and Environment
Learning Objectives
This chapter will enable the reader to:
Understand the concept of Innovation & Creativity
Recognize the different types of innovation, e.g. product, process, person and environment.
Explain the difference between discovery, invention, design, innovation and change.
Concept of Innovation
Innovation is the successful exploitation of new ideas.
The concept of innovation is quite diverse, depending mainly on its application. Briefly,
innovation is the successful exploitation of new ideas. And companies success, for example,
means increased revenues, access to new markets, increased profit margins, among other benefits.
Innovation is the activity of people and organizations to change themselves and the
environment. It means breaking routines and dominant ways of thinking, introducing new
things and behaviors, launching new standards.
Innovation is not a single action, but a total process of interrelated sub processes. It is not just the
conception of a new idea, nor the invention of a new device, nor the development of a new market.
The process is all these things acting in an integrated fashion. - Myers & Marquis (1969)
Thakur Institute of Mgmt Studies & Research

Created on 2/18/2016
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Innovation is an act of application of new ideas to which creates some value for the business
organization, government and society as well.
new technology.
new product line or segment.
new method of production.
An improvement in existing product.
So, Innovation can be characterized as:
1. Innovation (like invention) concerns novelty
2. Innovation is concerned with exploitation of new possibilities, through the bringing to
market, or the bringing into practical use, of an idea or concept;
3. Innovation is a process
4. Innovation is a broad concept that embraces the full range of activities from discovery and
invention, through to development and commercialization.
Why it is importance to innovate?

Innovations are able to generate competitive advantages in the medium and long term,
innovate is essential for the sustainability of the companies and the countries in the future.
Innovations are important because they allow companies to access new markets, increase revenues,
perform new partnerships, learn new knowledge and increase the value of their brands
Innovation is more than simply having a good idea. Innovation is about turning new ideas and
concepts into something that will create value. Value can be commercial, social or organizational.
Innovation can be Incremental or Radical:
Incremental Innovation:
It reflects small continuous improvements in products or product lines. It generally represents
small improvements in benefits noticed by the consumer and it does not change significantly
the business model or the way the product is consumed.
Example: the evolution of common CD to double CD, capable of storing twice as many tracks.
Radical Innovation:
It represents a drastic change in the way that the product or the service is consumed. It
generally, brings a new paradigm to the market segment that modifies the existing business
model,

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Example: the evolution of the music CD to digital files in MP3 extension.
Table 1. Characteristics of Incremental and Radical Innovation

Incremental Innovation
Radical Innovation
Exploits existing technology
Explores new technology
Low uncertainty
High uncertainty
Focuses on cost or feature improvements in

existing products or services, processes,
marketing or business model
Focuses on processes, products or services with

unprecedented performance features
Improves competitiveness within current

markets or industries
Creates a dramatic change that transforms

existing markets or industries, or creates new
ones
To illustrate the difference between incremental and radical innovation think about the camera
industry. Kodak led the industry for years developing new and improved products based on
traditional film. However these were all incremental innovations based on the same technology. The
radical innovation in this industry was the development of digital imaging. This revolutionized the
industry and the way people captured, stored and used images.
Innovation is not just about products
Types of Innovation
The different forms of innovation can be classified in several ways.
Here we highlight two of these visions, as the innovation focal object and its impact.
Focal Objectives of Innovation
Product innovation:
It consists of changes in product attributes with a change in how the product is noticed by consumers.
Example: car with automatic transmission compared to conventionalone.
Process innovation:

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It consists of changes regarding the product or the service production process. It does not necessarily
have an impact on the final product but produces benefits in the production process, generally
increasing the productivity and reducing costs.
Example: automobile produced by robots compared to that produced by human workers.
A product innovation is the act of bringing something new to the market place that improves the
range and quality of products on offer: for example, the Apple iPod is an innovation compared with
the Sony Walkman, which was an earlier portable device for playing music.
Product/service Innovation
You are probably most familiar with product/service innovation. It involves developing new
products or services, enhancing existing products or services, and even technological innovation.
GroundProbe, a Queensland company supplying precision measuring instruments to mines around
the world, is an example of a company that has successfully used service innovation to enhance its
innovative products.
Process Innovation
Applying an innovative approach to improving operational processes in your business such as
production line developments, financial systems or human resource management can give a
competitive advantage. Using information and communications technology (ICT) can help to improve
processes. Moriatis Fresh is an example of a company that has innovated in its supply and delivery
processes.
nnovation is more than simply having a good idea. Innovation is about turning new ideas and
concepts into something that will create value. Value can be commercial, social or organisational.
A process innovation is a new way of making or delivering goods or services: for example, going to
visit the doctor and recording that you have arrived for your appointment by touching a screen instead
of talking to a receptionist.
Marketing Innovation
Do you use an innovative approach in taking your products and services to market? Have you found innovative ways to
increase your customer base in your current market or even find new markets for your offerings?
Marketing innovation centres around how you promote your offering, your pricing strategies, and the channels that you
use to distribute your offering. In recent years the web has been the most significant innovation in marketing channels,
offering whole new marketing systems, such as with Amazon.com. Furitechnics has taken an innovative approach to
marketing its products.
Innovation of business model:
It consists of changes in the business model which means the way the product or the service is
offered to the market. It does not necessarily imply changes in the product or even in the
production process but in the way as it is brought to the market.

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Example: the consumer rents a car paying a monthly fee to use the vehicle, including
insurance, maintenance and replacement by newer model every year, compared to the
traditional business model where the vehicle is sold.
Business model innovation has the potential to offer the greatest competitive advantages for a business. Are there
opportunities for innovation in the structure and/or financial model of your business? Business model innovation often
involves structural changes and strategic partnerships. Some examples of Queensland businesses that have used
business model innovations successfully are discussed below.
Defining Creativity
Creativity is the characteristic of a person to generate new ideas, alternatives, solutions

and possibilities in a most unique and different way.
Creativity is the ability to conceive something unpredictable, original and unique. It must
be expressive, interesting and imaginative. It is the mirror of how beautifully a person can
think in any given circumstance.

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Key Differences Between Creativity and Innovation
The following are the major differences between Creativity and Innovation:
1.
The quality of thinking new ideas and putting them into reality is creativity. The act of executing the creative ideas
into practice is innovation.
2.
Creativity is an imaginative process as opposed to innovation is a productive process.
3.
Creativity can never be measured, but Innovation can be measured.
4.
Creativity is related to the generation of ideas which are new and unique. Conversely, Innovation is related to
introduce something better into the market.
5.
Creativity does not require money. On the other hand innovation requires money.
6.
There is no risk involved in creativity, whereas risk is always attached to innovation.
Example
The invention of motorcycle was a biggest innovation over scooters.
In this example, the thought of creation of a new traveling motorcycle is creativity, but the actual invention of it is
innovation.
Want to boost innovation in your business? Here are some practical suggestions.

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1. Have a vision for change

To be innovative your team must know the direction in which they are heading. Innovation has to have a purpose. It is up
to the leader to set the course and give a bearing for the future.
You need one overarching statement that defines the direction for the business and that people will readily understand
and remember. For example, Biolytix vision is to be the supplier of the best solutions in wastewater treatment systems
around the world, being technologically superior, as well as robust and cost-effective.
Great leaders spend time illustrating the vision, goals and challenges. They explain to people how their role is crucial in
fulfilling the vision and meeting the challenges. They inspire people to become passionate entrepreneurs, finding
innovative routes to success.
2. Fight the fear of change

Constantly demonstrate the need for change. Innovative leaders say, We are doing well but we cannot rest on our laurels,
we need to do even better. They explain that while trying new ventures is risky, standing still is even riskier. They must
paint a picture that shows an appealing future that is worth taking risks to achieve. They help people embrace change.
3. Think like a venture capitalist

Venture capitalists (VCs) use a portfolio approach and balance the risk of losing with the upside of winning.
They like to consider lots of proposals. They are comfortable with the knowledge that many of the ideas they back will fail.
These are all important lessons for business leaders who typically consider only a handful of proposals and who abhor
failure.
4. Have a dynamic suggestion scheme

How do you tap into ideas from the people working in your business? Great suggestion schemes are focused, easy to use,
well resourced, responsive and open to all. They do not need to offer huge rewards. Recognition and response are
generally more important. Above all, they have to have the whole-hearted commitment of the senior team to keep them
fresh, properly managed and successful.
5. Break the rules

To achieve radical innovation you have to challenge the assumptions that govern how things should look in your
environment. Business is not like sport, with its well defined rules and referees. It is more like art and is rife with
opportunity for the lateral thinker who can create new ways to provide the goods and services customers want.
6. Give everyone two jobs

Give all your people two key objectives. Ask them to run their current jobs in the most effective way possible and at the
same time to find completely new ways to do the job.
Encourage your employees to ask themselveswhat is the essential purpose of my role?
What is the outcome that I deliver that is of real value to my clients (internal and external)?
Is there a better way to deliver that value or purpose?
The answer is always yes, but most people never ask the question.
7. Collaborate
Many CEOs see collaboration as key to their success with innovation. They know they cannot do it all using internal
resources. So they look outside for other organisations with complementary skills to partner with.
8. Welcome failure
Encourage a culture of experimentation. To be truly agile, you must give people the freedom to innovate, experiment and
to succeed. That means you must give them the freedom to fail, too. Thomas Edison tested over 3000 filaments before he
came up with his version of a practical light bulb.
9. Build prototypes
Dont debate it, test it. Try the new idea at low cost in a section of the market and see what the customers reactions are.
You will learn far more in the real world than you will in the test laboratory or with focus groups.
10. Be passionate
Focus on the things that you want to change, the most important challenges you face and be passionate about
overcoming them. Your energy and drive will translate itself into direction and inspiration for your people. It is no good
filling your bus with contented, complacent passengers. You want evangelists, passionate supporters. You want people
who believe that reaching the destination is really worthwhile. If you want to inspire people to innovate, to change the way

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they do things and to achieve extraordinary results, then you have to be passionate about what you believe in and you
have to communicate that passion every time you speak.
References
Innovation Toolbox Case Studies. (n.d.). Retrieved from

http://www.innovationtoolbox.com.au/mentoring/case-studies
Frugal Innovation 1.0 also emerged in China and Africa, such as Kenyas m-Pesa (mobile
money) and m-Kopa (installed payment system for solar energy). Indias innovation
capacity was showcased more recently by the Mangalayan Mars mission as well,
completed at one tenth the cost and one third the time of NASA initiatives.
The next wave, Frugal Innovation 2.0, is being powered by Western entrepreneurs and
industrial giants. The frugality demand for value and values in innovation is also gathering
steam in the West in recent years, reflected in the rise of sharing economy startups like
AirBnB, Uber and BlaBlaCar, and the call by citizens and regulators for companies to be
socially and environmentally responsible.
Frugal Innovation 3.0 will consist of a more intense combining of forces between Indian
innovators and global business giants from the West, according to Radjou and Prabhu.
Western companies are now taking principles of frugal innovation to a much higher scale
and scope than Indian companies. These include the Renault Logan (Europes cheapest
car), Novartis (container-based drug manufacturing), BASF (mobile production units), and
Pepsico (Global Value Innovation Centre in Gurgaon).
Case Study on Frugal Innovation

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How can you enter an emerging

market
and improve the lives of millions?
In India, leading manufacturer Godrej & Boyce wanted to reinvigorate growth in its
venerablehousehold appliance business. We helped find a way to attract non-consumers
the more than 80% of Indian households that lacked basic appliances such as refrigerators.
The idea to address the basic refrigeration needs of rural families in India began in 2006 at a
disruptive innovation workshop led by Professor Clayton Christensen of Harvard Business School
through Innosight.
The Innosight team began its work by imagining living in a home without a refrigerator. Electricity is
unavailable or unreliable in many rural parts of India, where families earning under $5 per day can't
afford major appliances.
Could a community step up and help create a solution? Godrej Vice President G. Sunderraman led
trips around rural India, observing the daily routines
of villagers. Using our "jobs-to-be-done" approach, he
and the Innosight team witnessed how rural
consumers purchased, prepared and stored food and
drinks.
Defining a simple but urgent "job"

We concluded that these homes didn't need cheap
refrigerators. The "job" was much more basic. People
needed an affordable way to keep milk, vegetables
and leftovers cool for a day or twoboth at home or
away. This job is urgent in a country where a third of

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all food is lost to spoilage, according to the United

Nations Commission on Sustainable Development.
Godrej developed prototypes for feedback at "cocreation"
events. In a straw poll of 600 women in the
village of Osmanabad, the community voted to make
the product red, the color of harmony and bliss.
Godrej developed prototypes for feedback at "cocreation"

events. In a straw poll of 600 women in the
village of Osmanabad, the community voted to make
the product red, the color of harmony and bliss.
From this effort came the ChotuKool, or "little cool" in
Hindi. A disruptive innovation for the base of the
economic pyramid, ChotuKool has been called "the
Tata Nano of appliances," in a reference to India's
super-compact car.
Instead of traditional compressors, ChotuKool is
based on a thermoelectric chip that maintains a cool
temperature on a 12-volt DC current or an external
battery. The unconventional opening ensures cold air
settles down in the cabinet to minimize heat loss and
power consumption. The unit is highly portable, with
45 liters of volume inside a fully plastic body
weighing less than 10 pounds.
Priced at $69, about half of an entry level refrigerator,

Chotukool creates a new product category, with a
targeted value proposition that serves a new
segment of customers. Developing the business model
Since ChotuKool is so unique, Godrej needed to
evolve a new business model to fit the market.
Innosight suggested options for a new kind of
financing plan and low-cost distribution system that generates profits.
Moving beyond a single-state test market, Godrej is
now in the process of expanding distribution using
community networks. The result is an innovation with
impact. Godrej & Boyce is on pace to sell 100,000
ChotuKools in only its second full year on the market.
The early success of ChotuKool led to Godrej being
named India's most innovative company of the year
by Business Standard magazine in a ceremony c
onducted by the nation's Prime Minister.
BusinessWeek and Fast Company named Godrej one
of the world's "most innovative companies."
ChotuKool was also awarded the 2012 Edison Award
Gold prize for the Social Impact category. Most
recently, Godrej redesigned and relaunched
ChotuKool as a major consumer brand, with
expanded distribution and a way for consumers to
order personalized versions online.
What Is Innovation? Innovation can be defined as the application of new ideas to the products,
processes, or other aspects of the activities of a firm that lead to increased value. This value is
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defined in a broad way to include higher value added for the firm and also benefits to consumers or
other firms. Two important definitions are: Product innovation: the introduction of a new product,
or a significant qualitative change in an existing product. Process innovation: the introduction of a
new process for making or delivering goods and services.
Nature of Innovation: Making the Idea a Reality
Innovation is a complicated and continuing process that demands individual and organizational
creativity. To find refreshing authentic originals we need to rediscover purpose, meaning and
identity. As individuals, our ability to communicate the potentially creative fuels the organizations
innovative capacity.
Need for Creativity and Innovation in Organizations
Role of Creativity and Innovation in the Organisation
Dynamics that underlie Creative Thinking
Creative insight: Why do good ideas come to us and when they do?
Idea evaluation: What to do with generated ideas? Creativity in Teams
Developing and Contributing to a Creative-Innovation Team Managing for Creativity and Innovation
Tools and Techniques in Creativity
Evolving a Culture of Creativity and Innovation in Organizations
Creativity in the Workplace
Ideas and inventions

From Ideas to inventions: 101 gifts from MIT to the world
List out at least 10 major inventions that MIT has created in the last 50 years.
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Ivan Getting and Brad Parkinson Global Positioning System

2. Hugh Herr Bionic Prostheses
3. Robert Noyce Microchip
4. Ray Tomlinson E-mail
5. Robert Langer Slow drug delivery and polymer scaffolds for human tissues
6. Ronald Rivest, Adi Shamir, and Leonard Adelma RSA encryption
7. Ray Kurzweil Text/Speech Recognition
8. Shiintaro Asano Fax Machine
9. Andrew Viterbi Viterbi Algorithm
10. Norbert Weiner Cybernetics
Why Daily Creativity Is So Important!

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Samsung Case Study Promoting a Creative Organizational Culture

Encouraging Suggestions for Work Process Improvement
Samsung Electronics implements various programs to support employees suggestions so that ideas can bear fruit. We offer
incentives
for the filing of patents, provide a knowledge management system to share expertise and knowledge amongst employees, and
support community activities. We also offer incentives for idea suggestions to encourage our employees to proactively participate
in
knowledge sharing within Samsung Electronics. As a result, a total of 3,515 patents were filed in the U.S. in 2008.
Adopting a Flexible Time program
Samsung Electronics adopted a Flexible Time test program in 2008 in selected business divisions to maximize the creativity of
its employees. This test was the expression of our determination to shift from a time management-based corporate culture to a
creativity-oriented corporate culture. Under the program, employees are empowered to flexibly manage their office hours as
long as they work a total of eight hours each day. If this test proves successful, we will expand the program to a company-wide
level.

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Work-Life Balance
Because social norms have changed, an increasing number of female workers are participating in economic activities and
retaining high potential employees has become the key to successful business operations. Happiness has become the
overarching value of employees quality life, giving rise to greater social interest in balancing work and life. Therefore, Samsung
Electronics also supports and encourages the employees to balance their work and life. In case anyone works overtime, their
supervisor and the employee are notified to insure they comply with the legal overtime work requirements. For the creativity of
the employees, Samsung Electronics also provides vacations for self-management and other vacation programs including family
theme tour packages.
Welfare Programs
Samsung Electronics shares and cares about its employees concerns over their health, childrens education and post-retirement
life and helps them prepare for their future in order to enhance employee satisfaction and provide better working
environments. In addition to the basic legal welfare programs such as premium subsidies for National Pension, Industrial
Accident Compensation Insurance and Employment Insurance, we also provide medical subsidies, a corporate pension
program, work-out facilities and condominium rental services.
Building a Great Work Place

(GWP)
With an aim to realize a Great Work Place (GWP), Samsung Electronics has
analyzed its corporate culture by utilizing the confidence index of The 100 Best
Companies to Work Forby Fortune Magazine since 1998. In 2007, we
concluded a global contract with the Great Place To Work (GPTW) of the U.S.
for a confidence index survey of our domestic and overseas workforces, which
contribute to building a corporate culture that fits our global stature. Based on the
GWP analysis results, each division and department prepare and implement
improvement plans to build a GWP by filling the gaps in the five survey categories
which are of trust, respect, fairness, pride and solidarity. Also, 400 GWP officers
supervise and implement corporate culture improvement activities at each
workplace.
Based on the belief that sharing best practices is one of the most effective ways to
build the GWP, Samsung Electronics operates a separate GWP portal within its
intranet and publishes the GWP magazine to share best practices of improving
corporate culture and GWP-related information. In particular, the semiconductor
and LCD business divisions hold GWP Awards to encourage pertinent
departments and employees to share their GWP activities and performances,
every year-end.
Talent Management
Samsung Electronics believes the tradition of valuing People is the key to

building a creative corporate culture. People are the most valuable asset as we
carry out our business activities based on the principles of human respect. To
ensure sustainable growth in this rapidly changing business environment, we
strongly believe that it is critical to recruit and retain talented people with creative,
enterprising spirits and competent employees who can flexibly respond to fierce
international competition and globalization.
Samsung Electronics abides by the international labor standards and local labor
regulations to enhance employee value, while eliminating discrimination based on
gender, race, religion, social position or payment or illegal labor practices such as
child or forced labor at the source. At the same time, we implement a variety of
GWP activities to build the greatest work place based on a creative and
enterprising corporate culture, thereby attracting and retaining the most talented
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people.
Whats Your Approach to the

Creative Process?
Reward Creativity
To get employees to think out-of-the-box, need to motivate them with some form of rewards.
Suggestions have to be taken seriously so that employees are willing to come up with more
creative ways of improving the workplace.
To kick-start things up, you can set goals for your employees to think up of some ways of
making work processes more efficient.
Perhaps each employee can be tasked to provide one suggestion by the end of each week and
youll assess which idea is the best.
This will be followed with a reward for the employee and equally important,
implementation.
The reward can be tangible ones like giving monetary incentives, or intangible ones like
recognition from the organization by announcing the winner to the rest.
Diversity Among Employees
Employees with comparable backgrounds, qualifications, experience, etc creates a
homogeneous working environment.
Perhaps having such homogeneity between the employees will facilitate team-bonding and
such, but when it comes to workplace creativity, a uniform and agreeable crowd leaves little
room for ideas to flourish.
Rather than setting stringent recruitment prerequisites, you might consider giving more
allowance in your criteria.
Hire staffs from different knowledge and background and get them to mingle around in
projects and even company events.
Organize more informal settings between employees with dissimilar profiles for the
interchanging of thought
Positive Working Environment

Sometimes, too serious a mindset can hinder creativity.
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Having fun during work allows one to be relaxed and thats where one tends to get inspired
with wonderful ideas.
Needless to say, a stressful or even depressing work environment doesnt give one the mood
to think of doing things differently.
Psychological studies have revealed that positive mood can spur creativity.
The idea is that positive mood awards us with greater flexibility in thinking because our
perspectives are widened.
We become more open-minded in that sense and are willing to explore alternatives.
Anti PPT Presentation
Make presentation without making use of ppt & replace it with hand made models of
products.
In built wifi and other facilities at bus
So the employees can complete their projects on the time.

Voice Command Software : Which will type what will be spoken. It will be used by
employees whose major work is to type an emails.
Management Games: To enhance their creativity.
De stress Room: Where employees can remove their frustration and irritation on boxing sack
and on hit me statue.
* Flexi hours policy: where the employees can come in at any time to office but
they have to complete their work and daily hours of working.
* Voice to creativity: Here everyone should give their suggestion on how they
would want the working environment to be like.
* Changing workstation & giving connectivity: Allowing employees to work from
anywhere in the office be it cafeteria, etc.
* Work from home: For people who live afar off instead of wasting their time to
travel to work they can work from home instead or in cases when employee is
unwell etc.
* Festival: Should be celebrated to motivate employees
* Music at work: Can pep the mood to enjoy the tasks for the day
* Gym & other amenities: So that they can rejuvenate themselves with the help of
beauty parlours and guys can work out and stay brisk.
* Innovation team: A dedicated team that makes sure everyone does something
new like happy Fridays sporting games etc.
1. Providing saloon service & SPA at Workplace to Motivate and

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To Feel Them Relax.
2. Providing laundry Facilities at work place this will help the

employee to provide Spent time at office Because They will Be
Getting Free Service of Laundry.
3. Company will take care of the employee work related to bank

and other paper related things this will help to decrease in leave
from employee.
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4) No punching system.
5)No Working hours to motivate employee.

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4. For advertisement which user see on website or an online.

Advertisement will change as when cricket match is going on
every 4 -6 and wickets Will display attractive Images to user
Which Interact them And Result in More Revenue.

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Six Thinking Hats Exercise

Edward de Bono
A management writer and consultant who has worked extensively on tools to
enhance creativity.
(His most famous work deals with the concept of Lateral Thinking).
Have each member of the group put on one of the following hats, and then examine the
picture of the cricket bat on the next page.
1. White hat: factual, describes what is there

2. Red hat: intuitive, expresses how one feels when one sees the object
3. Green hat: creative, comes up with ideas
4. Black hat: negative, sees what is wrong with everything
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5. Yellow hat: positive, sees what is good in everything

6. Blue hat: controls the process, runs the discussion, decides which hat to put on
when
Exercise

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1. Blue hat: In which order should the group go through the

hats?____________________________________________________
2. White hat:
A. Whose bat is in the picture?_________________________
B. How much does it cost?________________________________
C. How many bats of that edition exist?______________________
3. Red hat:
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A. How does looking at the picture make you feel?________________

B. Would you like to own such a bat?________________________
4. Green hat:
List 3 ways that you could go about acquiring such a bat, assuming that it is not
for sale.
B. ___________________________________________________
C. ___________________________________________________
5. Black hat:
A. Of the 3 ways mentioned above, which is the least practical?
Yoel Doron, 2005.
A. ___________________________________________________
Why?_________________________________________________________
________________________________________
B. Which, if any, is immoral?______________________________
6. Yellow hat:
Of the options mentioned by the green hat, which seems the best
one?__________________________________________________

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Create an Innovation Culture

To create an innovative culture, managers need to make sure that all
employees know that innovation is a job requirement. It should be woven
into the fabric of the business and given a prominent place in job
descriptions, procedures, and performance evaluations. Innovation should
be defined to include incremental as well as revolutionary improvements. In
a Harvard Business Review interview, Katsuaki Watanabe of Toyota said,
There is no genius in our company. We just do whatever we believe is right,
trying every day to improve every little bit and piece. But when 70 years of
very small improvements accumulate, they become a revolution. Over a 35year period, Toyotas innovation culture increased the number of annual
suggestions per employee 480-fold from 0.1 to 48.
Learning Objective
To demonstrate that creativity is a core leadership skill

To help students internalize creativity principles and Creative Problem Solving strategies so that they
can become more effective and powerful leaders.
What is Leadership: Select a Definition

Page 26
MMS-SEMESTER III
Four Fundamental
Components of Leadership
leadership is a process
leadership involves influence
leadership occurs within a group
context
leadership involves goal attainment
Northouse, 2004
Fullan on Management &

Leadership
I have never been fond of distinguishing between leadership
and management: they overlap and you need both qualities.
But here is one difference that it makes sense to highlight:
leadership is needed for problems that do not have easy
answers. The big problems of the day are complex, rife
with paradoxes and dilemmas. For these problems there
Page 27
MMS-SEMESTER III
are no once-and-for-all answers.

(Fullan, 2001, p. 2)
Leaders know in their gut that creativity and innovation are the lifeblood of their organization. New
ideas can lead to programs that are superior to those that are already going on or planned in the
organization and which would have been divested or never initiated had a better idea or program
come along. So, the mission of every leader should be to search continually for ideas and programs
that are superior to the ones the organization is currently committed to. In a word, its called
PROGRESS. But what can the leaders do to promote creativity and innovation? The most obvious
answer, short of hiring a new workforce, is to use management initiatives that create a work
environment that stimulates the existing staff to be more creative and innovative.
Creativity CAN Be Stimulated by Leaders

There are many who would challenge the implicit assumption that leaders can do anything to foster
creativity. They believe that creative leaders are born not made.
Transitioning Creativity to Innovation
To get a creative idea is one thing, but to get it transitioned into the innovation of a new product or
service requires other personal characteristics. Innovative people need the kind of mind-set that can
produce the succession of processes that lead to successful innovation, such as
1. generating the idea,
2. informing significant others,
3. selling the idea effectively,
4. planning the development process, and
5. overcoming constraints (time, money, relevance).
Even though an organization may have plenty of such people, management practices will determine
the extent to which these personal characteristics can be expressed. Technology transition is the
theme of a growing body of business literature, which we need not dwell on here.

Page 28
MMS-SEMESTER III
The Bottom Line Creativity and innovation are not mysterious forces over which leaders have no
control. Progressive leadership can and does create a climate that encourages creativity and
innovation. As we have reviewed here, there are many specific leadership initiatives, validated by the
success of certain high-tech companies, that enlightened leaders can take to stimulate creativity and
innovation in any work setting
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MMS-SEMESTER III
Gershuny, J. 1983. Social Innovation and the Division of Labour. Oxford: Oxford
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REFERENCE MATERIAL- CREATIVITY & INNOVATION 2016-17

Creativity & Innovation

Innovation is the successful exploitation of new ideas.

Nature of Innovation: Making the Idea a Reality

Need for Creativity and Innovation in Organizations

Role of Creativity and Innovation in the Organisation

Dynamics that underlie Creative Thinking

Idea evaluation: What to do with generated ideas? Creativity in Teams

Developing and Contributing to a Creative-Innovation Team Managing for

Tools and Techniques in Creativity

Evolving a Culture of Creativity and Innovation in Organizations

Creativity in the Workplace

Creativity and Change Leadership

Global Perspectives on Creativity

Mgmt study material created/compiled by- Prof Ankita Asthana

Introduction to Creativity and Innovation, Nature of Creativity: Person,

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

Why it is importance to innovate?

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

Example: the evolution of the music CD to digital files in MP3 extension.

Table 1. Characteristics of Incremental and Radical Innovation

Exploits existing technology

Explores new technology

Focuses on cost or feature improvements in

Focuses on processes, products or services with

Improves competitiveness within current

Creates a dramatic change that transforms

Innovation is not just about products

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

Innovation of business model:

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

Creativity is the characteristic of a person to generate new ideas, alternatives, solutions

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

Key Differences Between Creativity and Innovation

Creativity is an imaginative process as opposed to innovation is a productive process.

Creativity can never be measured, but Innovation can be measured.

There is no risk involved in creativity, whereas risk is always attached to innovation.

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

1. Have a vision for change

2. Fight the fear of change

3. Think like a venture capitalist

4. Have a dynamic suggestion scheme

5. Break the rules

6. Give everyone two jobs

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

Innovation Toolbox Case Studies. (n.d.). Retrieved from

Case Study on Frugal Innovation

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

How can you enter an emerging

Defining a simple but urgent "job"

Thakur Institute of Mgmt Studies & Research

Mgmt study material created/compiled by- Prof Ankita Asthana

all food is lost to spoilage, according to the United

Godrej developed prototypes for feedback at "cocreation"