CREATIVITY AND INNOVATION

Prepared for class discussion by

Prof.S.Suryanarayanan
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INNOVATIVE ENTREPRENEURS
Innovation is the specific tool of entrepreneurs ,the means by
which they exploit changes as an opportunity for different
business or a different service.
--Peter P. Drucker
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Creativity- ability to bring something new into existence; thinking
new things
Innovation-ability to apply creative solutions to opportunities ;
process of doing new things
Creativity is a prerequisite to innovation
Creativity and innovation can not be taught ; can be learnt ; can
be nurtured
A quote: innovation and creativity are not just for artists; they are
skills with a direct, bottom line-payoff.
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CREATIVE THINKING
LEFT HEMISPERE/ LEFT BRAIN RIGHT HEMISPHERE/ RIGHT BRAIN
Analytical side

Rational

Logical

Conscious
Creative side

Non rational- Imagining without direction

Intuitive experience, emotions influence

Synthesizing fantasizing

Good engineer/manager



Entrepreneur integrates rationality


Creative artist/ fantasizer/ vision



to harvest creativity.
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CAN YOU SPOT THE PERSON?

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CAN YOU RECOGNISE THE WELL KNOWN PHRASES?




THAN LIFE




S H E E T


Objection
Ruled



Tax ( )
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BARRIERS TO CREATIVITY
Ten mental blocks that limit creativity:
1. Searching for the one right answer.
2. Focusing on being logical .
3. Blindly following the rules.
4. Constantly being practical.
5. Viewing play as frivolous.
6. Becoming overly specialised.
7. Avoiding ambiguity.
8. Fearing looking foolish.
9. Fearing mistakes and failures.
10. Believing that I am not creative .

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BUILDING CREATIVE ENVIRONMENT ( LIKE 3M,GOOGLE )
1. Include creativity as core company value
2. Embrace diversitydiverse workforce
3. Expect creativityinvite ideas.
4. Expect and tolerate failures.
5. Encourage curiosityask questions
6. Create a change of scenery periodically
7. View problems as challenges
8. Provide training in creativity
9. Develop procedure for capturing ideas
10. Talk with customers
11. Reward creativity
12. Set example of creative behaviour.











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Characteristics exhibited by leaders of innovation:
1. They think
2. They are visionaries
3. They listen to customers
4. They understand how to manage ideas
5. They are people cantered
6. They maintain a culture of change
7. They maximise team synergy, balance, and focus
8. They hold themselves and others accountable for extremely high
standards of performance
9. They refuse to take no for an answer
10. They love what they do and have fun doing it.

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CREATIVE PROCESS ( IDEATION PROCESS )
Idea germination---seeding stage of an idea, recognition
Preparation---conscious search for knowledge, rationalization
Investigation ---observe and understand how things work
Incubation---subconscious assimilation of information, to reflect
on the information, fantasizing
Illumination---recognition of idea as being feasible, realization,
Eureka time
Verification ---application or test to prove idea has value,
validation

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Invention

Creation of something new

Results in new knowledge
Innovation

Transformation of idea or
resources into useful
applications

Results in new products,
services or processes.
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Four types of innovation
1.invention new product/service ( airplane ,light bulb, telephone )
2.Extension-expansion/ different application of existing product/service (
McDonalds, Resorts)
3.Duplicationreplication of existing product/service ( Wal Mart, )
4.Synthesiscombination of existing ideas/concepts ( Fedex, Starbucks )
Innovation can also be classified as:
A. Breakthrough innovation
B. Technological innovation
C. Incremental innovation
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TRANSLATION OF CREATIVE IDEA INTO A USEFUL APPLICATION
Analytical planning---to identify product design, market strategy, financial need

Organising resourcesto obtain materials, technology, human resources and
capital

Implementationto accomplish organisation, product design, manufacturing
services

Commercial applicationto provide value to customers, rewards for employees,
revenues for investors and satisfaction for founders
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EXAMPLES OF INNOVATION PROCESS
Story of Siddarth, agriculturist becoming entrepreneur.

Story of Capt. Gopinath, an Ex Army man, agriculturist turned into
aviation entrepreneur.

Story of Kiran Mazumdar ( I am a woman, I have never done a
business and I have no money )

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CREATING INNOVATORS: THE MAKING OF YOUNG PEOPLE
WHO WILL CHANGE THE WORLD. BY
TONY WAGNER
Culture of schooling ( in USA) and Learning culture that produces
innovators
Individual achievement ( ranking of
kids)
Individual assignments
Demands collaboration; builds team
work
Focuses only on specialization Problem based, multi disciplinary
approach to learning
Risk averse; penalizes failure Taking risks and learning from
mistakes
Passive experience; sit all day and
consume information
Create real products for real
audience
Extrinsic incentivescarrot and stick
( grade A/ grade F )
Intrinsically motivated; remarkable
emphasis on play, passion and
purpose
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Empowering students to be innovators.

Discussion on material provided.
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REFERENCE
Notes in these slides were prepared using materials from
following text books:
1. Entrepreneurship-theory and practice by Raj Shankar
2. Essentials of Entrepreneurship and Small Business Management by
Thomas Zimmer, Norman Scarborough
3. Entrepreneurship by Robert Hisrich, Mathew Manimala, Michael Peters
and Dean Sheperr

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