Creative destruction as a

way forward for

UNIRAZAK
A WISHFUL THINKING ?
Background and Introduction
Why Creativity and Innovation
 CREATIVE DESTRUCTION -DEFINED
• Creative destruction is a process through which something
new brings about the demise of whatever existed before it. The
term is used in a variety of areas including economics,
corporate governance, product development, technology and
marketing.
• Creative destruction is described as the dismantling of long-
standing practices in order to make way for innovation.
• Creative destruction refers to the incessant product and
process innovation mechanism by which new production units
replace outdated ones.
• It was coined by Joseph Schumpeter (1942), who considered it
'the essential fact about capitalism'.
Innovation defined
• Innovation may be defined as a change in existing production
system to be introduced by the entrepreneur with a view to
make profits and reduce costs.
• Innovation is closely linked with Schumpeterian concept of
development.
• Innovation does not mean invention rather it refers to the
commercial applications of new technology, new material, new
methods and new sources of energy.
Schumpeter’s Theory of Innovation
• Schumpeter’s Theory of Innovation is in line with the other
investment theories of the business cycle, which asserts that
the change in investment accompanied by monetary expansion
are the major factors behind the business fluctuations.
• However , Schumpeter’s Theory posits that innovation in
business is the major reason for increased investments and
business fluctuations.
• Schumpeter’s theory of innovation is widely acceptable in the
modern economy and is used to determine the economic
fluctuations.
Process of Innovation
• Any innovation may consist of:
• (a) The introduction of a new product
• (b) The introduction of a new method of production
• (c) The opening up of a new market
• (d) The conquest of a new source of supply of raw materials or
semi manufactured goods.
• (e) The carrying out of the new organisation of any industry like
the creation of a monopoly.
 Schumpeter’s Theory of Economic
Development
• 1. Circular Flow
• (a) All economic activities are essentially repetitive and follow a familiar routine course.
• (b) All the producers know the aggregate demand for goods and adjust the supply of output
accordingly. This means demand and supply are in equilibrium at each point of time.
• (c) The economic system has the optimum level of output and its maximum use and there is no
possibility of wastage of resources.
• (d) The firms working in a system are in a state of competitive equilibrium.
• (e) Under the stationary equilibrium, the prices are equal to the average cost.

• 2. Role of Entrepreneur
• Entrepreneur is motivated:
• (a) The desire to find a private commercial kingdom.
• (b) The will to conquer and prove his superiority.
• (c) The joy of creating, getting things done or simply of exercising one’s energy and ingenuity.
Schumpeter’s Theory of Economic Development
3. Cyclical Process or Business Cycle and
Business cycle or crisis, we shall now proceed to discuss the working of
business cycle.
development entrepreneurs have to play the central role in business cycles.
They initiate the economic development in the spontaneous and
discontinuous manner.

4. End of Capitalism.
Reasons for the disintegration of capitalism:
(a)The Obsolescence of Entrepreneurial Function
(b) Destruction of Institutional Frame Work
(c) Destruction of Protecting Political Strata
Joseph Schumpeter
• Joseph Alois Schumpeter (1883 - 1950) an economist regarded as
one of the 20th century's greatest intellectuals. Best known for his
theories on business cycles and capitalist development and for
introducing the concept of entrepreneurship.
• In 1932, he moved to the United States to teach at Harvard.
• Schumpeter is best known for his 1942 book Capitalism, Socialism,
and Democracy as well as the theory of dynamic economic
growthknown as creative destruction.
• Schumpeter is believed to be the first scholar to introduce the world
to the concept of entrepreneurship. He came up with the German
word Unternehmergeist, meaning entrepreneur-spirit, adding that
these individuals controlled the economy because they are
responsible for delivering innovation and technological change.
 ANTICIPATION

NEW MGMT STYLE

PROBLEM ANTICIPATION
SOLVING
OPPORTUNITY
REACTION
IDENTIFICATION
PROBLEM AVOIDANCE
OLD MGMT STYLE

REACTION
NEW MEASURE OF MGMT STYLE
 The take away
• We have to believe Creative Destruction as the de-facto in the
industry and economy.
• The business competition is not in price cutting or cut-throat
marketing .
• The business strategy is in Innovation competition – racing to
introduce new innovation to be the leader in the industry.
• To be innovate we need to open our eyes to new ideas, to
generate new ideas and to prepare new ideas to be launched
into the market.
• Launching new ideas into the industry will be a way of life for
UNIRAZAK to sustain as a leading academic institution.
 The basic premise
• Every organisation must work to initiate innovation in order to
be ahead of others.
• Or else, we will always be a follower and may be caught by a
sudden demise of an old technology.
• We must always think of how to change and move toward a
new technology before others will start one and make us
obsolete.
• So the spirit of change will be the basic defacto in organisation
like UNIRAZAK.
• We have to keep thinking of how to take a leap in technology to
stay as a leader in the global education.
Creativity and Innovation as
UNIRAZAK organisational
culture
Can it be practised as a corporate way of life ?
 Creative resources in UNIRAZAK
• Creative resources is like other resources such as the
expertise, technical skills, soft skill like EQ, SQ and IQ and
interpersonal skills.
• The different is Creative resources (CQ) is in the mind and
heart of every individual in the organisation regardless of their
position, skill based and qualification.
• Every person in the organisation have the same potential of
creative resources – measured by the ability to capitalise each
of their creative thinking ability.
• Every person in the organisation must polish their creative
ability and be encourage to contribute new ideas to the
organisation.
Innovation department as the pillar of the
organisation
• MUST must invest in setting up an Innovation department as
the main component of Research and Innovation department of
the university.
• The department will be constantly evaluating new ideas
contributed by staff to undergo the innovation process in
preparing for the launching.
• Generating new ideas will be a serious hobby for every staff in
UNIRAZAK – a life culture for every citizen of UNIRAZAK.
• Launching of new ideas – or completing Innovation process will
be a culture and a way of life for UNIRAZAK organisation.
 Creativity - defined
Creativity is a mental process involving the generation of new
ideas or concepts, or new associations of the creative mind
between existing ideas or concepts. Creativity is simply the act of
making something new.
"Creativity is the ability to respond to all that goes on around us, •
to choose from the hundreds of possibilities of thought, feeling,
action, and reaction that arise within us, and to put these
together in a unique response, expression, or message that
carries moment, passion, and meaning."
 Innovation - defined
• Innovation is about creating value and increasing efficiency, and
therefore growing your business.
• "Without innovation, new products, new services, and new ways
of doing business wouldnever emerge, and most organizations
would be forever stuck doing the same old things the same old
way.”
 Creativity, Invention and
Innovation
Logical
Creativity Thinking

Invention Innovation
THE THINKING PROCESS

WHAT IS
THINKING
• THINKING IS THE PROCESS
OF ARRANGING AND
REARRANGING PERCEPTION
AND EXPERIENCE SO THAT WE
MAY HAVE A CLEARER VIEW OF
THINGS.
• THE JOB OF THINKING IS TO
CLARIFY PERCEPTION.
Everything in our thought is based on
the thinking paradigm
Thinking within the box
 The Thinking Process

• First Stage Thinking

(Lateral Thinking)

• Second Stage Thinking

(Vertical Thinking)
 FIRST STAGE SECOND STAGE
SOFT HARD
DIVERGENT CONVERGENT

WHAT IF? WILL IT WORK ?

WHY NOT ? CAN WE DO IT ?
WHAT ASSOCIATIONS CAN WE FIND? HAS IT BEEN TRIED
BEFORE?
WHAT RULES CAN WE BREAK ? DOES IT FIT IN ?
WHAT ASSUMPTIONS ARE AT WORK ? HAVE WE GOT THE
RESOURCES ?
• How many losers are there for each game
played?
• How many losers are there in the entire
tournament?

• So …….. How many games played?

 THINKING AND EGO
 OUR THOUGHTS ARE MORE CENTRAL TO
OUR EGO THAN ALL OF THESE.
 THE EGO AND THINKING ARE ALMOST
INEXTRICABLY INTER-TWINED.
 UP TO THE AGE OF TEN OR ELEVEN A CHILD’S EGO IS
SEPARABLE FROM HIS THINKING.
 HE ENJOYS THINKING.
 HE ENJOYS PLAYING WITH IDEAS.
 AFTER THE AGE OF ELEVEN THINKING BECOMES
VERY MUCH PART OF THE EGO AND SELF-IMAGE.
 A PERSON IS AS GOOD AS HIS THINKING.
 HIS STATUS AT SCHOOL AND HIS SOCIAL STANDING
DEPEND ON HIS THINKING.
 FIRST STEP IN TEACHING
THINKING MUST BE TO
PROVIDE A BY-PASS TO THIS
INSTANT JUDGEMENT BY
REQUIRING THE THINKER TO
DIRECT ATTENTION TO ALL THE
RELEVANT AND INTERESTING
POINTS IN THE SITUATION.
 EGO
EGO EGO
LIFE CULTURE
WAY OF LIFE
BASIC PERCEPTION
NORMS
REGULATION
EGO
EGO
Cramp in the box ?
 The Paradox in Creative
thinking
•All new ideas are wrong ideas
– because they do not fit to the existing logic base
– because we have never heard of it before
– and hence we have never accepted it before
•All creative ideas are good ideas
- This is the basic spirit in Creative thinking
– accept anything that is new as good
• Hence all new ideas are good ideas
- all creative ideas are good ideas

THE PARADOX :
CREATIVE IDEAS = NEW IDEAS = WRONG IDEAS
Hence ALL NEW IDEAS MUST BE = WRONG IDEAS
What a relief
What a wide world…. out here?
• ONE OF THE MAIN PURPOSES OF
TEACHING THINKING IS TO TRY TO BREAK
THIS DEADLOCK AND GET PUPILS TO
LOOK OBJECTIVELY AT THEIR THINKING.
• THE NEED TO SHINE AND TO PRESERVE
STATUS IS IMPORTANT.
• THE NEED TO BE RIGHT ALL THE TIME
AND THE FEAR OF BEING WRONG ALSO
DISTORTS THINKING IN FAVOUR OF THE
EGO.
LEFT BRAIN – RIGHT BRAIN
Creating bridges between the left and right brain
 LIFE SIDE OF THE BRAIN
LEFT SIDE OF THE BRAIN
HANDLES LOGICAL
THINKING :
• LANGUAGE
• MATHEMATICAL
FORMULAE
• LOGIC
• NUMBERS
• SEQUENCE
• LINEARITY
• ANALYSIS
• SYMBOLS
• WORDS OF A SONG
 RIGHT SIDE OF THE BRAIN

THE RIGHT SIDE OF THE

BRAIN DEALS WITH
CREATIVE THINKING :
• FORMS AND PATTERNS
• SPATIAL MANIPULATION
• RHYTHM AND MUSICAL
APPRECIATION
• IMAGES OR PICTURES
• IMAGINATION
• COLOUR
• PATTERNS
• EMOTIONS
• DAY DREAMING
• DIMENSION
• TUNE OF A SONG
A SOFT TOUCH DOWN
INTO CREATIVITY

INTRODUCTION INTO
CREATIVITY
FAST MAY NOT NECESSARILY BE SUPERIOR
‘SLOW IS BEAUTIFUL’
 BEING WRONG AND CREATIVITY
- BEING WRONG IS OFTEN AN ESSENTIAL PART
OF CREATIVITY.
- NEW IDEA DOES NOT FIT IN WITH PREVIOUS
IDEAS AND IS JUDGED AS “WRONG”, IDEA IS
ACTUALLY RIGHT.
• WRONG IDEA ACT AS A STEPPING-STONE TO
AN IDEA WHICH IS PERFECTLY VALID.
• A MISTAKE ALLOWS ONE TO ESCAPE OR GET
SOME “DISTANCE” AWAY FROM THE
ESTABLISHED IDEA.
• A MISTAKE MAY ASK A QUESTION THAT
COULD NOT OTHERWISE HAVE BEEN
ASKED.
• MOST CREATIVE USE OF A MISTAKE IS AS
AN INTERMEDIATE IMPOSSIBLE OR
STEPPING-STONE TO A NEW IDEA.
- CREATIVITY IS NOT SIMPLY A WAY TO
MAKE THINGS BETTER. WITHOUT
CREATIVITY WE ARE UNABLE TO MAKE
FULL USE OF THE INFORMATION AND
EXPERIENCE THAT IS ALREADY
AVAILABLE TO US AND IS LOCKED UP IN
OLD STRUCTURES, OLD PATTERNS, OLD
CONCEPTS AND OLD PERCEPTIONS.
HYPOTHESIS
IS A GUESS OR SPECULATION. THE
HYPOTHESIS GIVES US A FRAMEWORK
THROUGH WHICH TO LOOK AT THE
INFORMATION SO THAT WE CAN BEGIN TO
NOTICE THINGS WE HAVE NOT NOTICED. THE
HYPOTESIS ALSO GIVES US SOMETHING TO
WORK TOWARDS IN PROVING IT OR
DISPROVING IT.
 CREATIVITY
• IS VERY MUCH INVOLVED IN
CONSTRUCTING A HYPOTHESIS.
• THERE IS A SERIOUS DILEMMA ASSOCIATED
WITH HYPOTHESIS WITHOUT A HYPOTHESIS
WE FLOUNDER AROUND. BUT WHEN WE
HAVE GOT A HYPOTHESIS THEN THIS CAN
CLOSE OUR MINDS TO OTHER
POSSIBILITIES.
- A HYPOTHESIS SHOULD OPEN UP
POSSIBILITIES, BUT ONLY TOO OFTEN IT
CLOSES DOWN POSSIBILITIES.
- HYPOTHESIS ARE SUPPOSED TO BE
REASONABLE BUT WHEN THERE IS THIS
“REASONABLE” THEN WE CAN ONLY LOOK AT
THE DATA THROUGH THIS WINDOW. THAT IS
WHY PARADIGM CHANGES CAN TAKE SO
LONG TO HAPPEN
- THERE IS A NEED TO HOLD SEVERAL
HYPOTHESIS IN ORDER TO SEE THE DATA IN
DIFFERENT WAYS.
- CREATIVITY IS NEEDED FOR GENERATING
THESE ALTERNATIVE AND PARALLEL
HYPOTHESIS. THERE IS A NEED FOR
GENEROUS SPECULATION,GUESSING, AND THE
CREATION OF HYPOTHESIS.
 MARKET ANALYSIS
- THE DANGER OF MARKET ANALYSIS IS THAT IT IS
STATIC AND REFLECTS NEITHER INTERACTIVE
LOOPS NOR POSSIBILITIES.
- SO THERE IS A HIGH NEED FOR CREATIVITY IN
INTERPRETING DATA AND LOOKING AT
POSSIBILITIES.
- WHAT OTHER WAYS CAN WE LOOK AT THIS?
- WHAT OTHER EXPLANATIONS MIGHT THERE BE?
- WHAT ELSE MIGHT BE GOING ON HERE?
- WHAT SORT OF THINGS MIGHT HAPPEN?
ALL OF US WERE BORN CREATIVE
• CREATIVENESS IS A FUNDAMENTAL
CHARACTERISTIC INHERENT IN HUMAN
BEINGS AT BIRTH.
ABRAHAM MASLOW
• ALL CHILDREN ARE BORN GENIUSES, AND WE
SPEND THE FIRST SIX YEARS OF THEIR LIVES,
DEGENIUSING THEM.
BUCKMINSTER FULLER
OUR CREATIVE POTENTIAL
CREATIVITY
AGE POTENTIAL

5 98%

30%
6
12%
7
2%
Adults
• CHILDREN ARE EXTREMELY CREATIVE,
BUT ONCE THEY STARTED SCHOOLING,
THEIR CREATIVITY DROPS
TREMENDOUSLY.
• IN SCHOOL, CHILDREN ARE LITERALLY
TAUGHT HOW NOT TO BE CREATIVE.
 TEST OF CREATIVE THINKING
• QUANTITY OF IDEAS (OR FLUENCY)
- HOW MANY IDEAS CAN YOU COME UP WITH?
• VARIETY OF IDEAS (OR FLEXIBILITY)
- HOW MANY DIFFERENT IDEAS CAN YOU COME
UP WITH?
• ELABORATENESS
- CAN YOU EXPLAIN OR DETAIL YOUR IDEAS?
• UNIQUENESS
- CAN YOU COME UP WITH AN IDEA THAT NO ONE
ELSE HAS?
 THE BASIC
PRINCIPLE IN
CREATIVE
THINKING
THE STEP BY STEP
APPROACH TO
CREATIVE THINKING
TECHNIQUE
 BASIC RULES IN
CREATIVE THINKING

1. BE IMAGINATIVE - PROMOTE IMAGINATION

2. HAVE INITIATIVE TO PROVOKE YOUR MIND BY
‘THINKING WRONG’
3. DEFER JUDGEMENT - BETTER STILL BY-PASS
JUDGEMENT
4. USE MOVEMENT IN THINKING - ALL THE TIME
 BASIC CREATIVE METHOD
MOMENT TO
MOMENT

POSITIVE
REVERSE PROVOCATION MOVEMENT ASPECT
ENGINEERING THE
DIFFERENCES
PO: ESCAPE
BASIC
PO:STEPPING STONE -
PRINCIPLE
1. REVERSAL METHOD
2. DISTORTION METHOD
3. EXAGGERATION INTERESTING
4. WISHFUL THINKING ASPECT
5. RANDOM JUXTAPOSITION
 PROVOCATION
- EINSTEIN USED TO CARRY OUT WHAT HE CALLED “THOUGHT
EXPERIMENTS.”
- WHAT WOULD I SEE IF I WERE TRAVELLING AT THE SPEED OF
LIGHT ?”
- PROVOCATION HAS EVERYTHING TO DO WITH EXPERIMENTS IN
THE MIND.
- MANY IMPORTANT NEW IDEAS CAME ABOUT THROUGH CHANCE,
ACCIDENT, MISTAKE, OR “MADNESS.” ALL THESE PROVIDED A
SORT OF DISCONTINUITY, WHICH FORCED US OUTSIDE THE
USUAL BOUNDARIES OF LOGIC.
- REASONABLENESS” THAT HAD BEEN ESTABLISHED BY OUR
EXPERIENCE. WITH DELIBERATE PROVOCATION WE HAVE A
SYSTEMATIC METHOD THAT CAN PRODUCE THE SAME EFFECTS.
How to generate new ideas ?
Top of the head
 The Depth mind –
the Unconscious mind
• There is a great deal of unmapped country within us
• Creative thinking is about exploring and fathering an
unknown hinterland
• Conscious mind – is about analysing, synthesising and
valuing
• Unconscious mind – the depth mind – is the most
important element in creative thinking.
• Intuitions – immediate perceptions of the mind without
reasoning – hunches, premonitions and inklings.
 NLP (neuro-linguistic
programming)
•NLP consists of a set of powerful techniques for rapid
and effective behavioural modification, and an
operational philosophy to guide their use.
•It is based on four operational principles, which below
these headings are explained in more detail.
• Many people do not have conscious outcomes and
wander randomly through life. NLP stresses the
importance of living with conscious purpose.
•In order to achieve outcomes it is necessary to act and
speak in certain ways.
 Steps in NLP
• 1. Know what outcome you want to achieve.
(See nlp principle 1 - achieving outcomes.)
• 2. Have sufficient sensory acuity (acuity means
clear understanding) to know if you are moving
towards or away from your outcome (See nlp
principle 2 - sensory awareness.)
• 3. Have sufficient flexibility of behaviour so that
you can vary your behaviour until you get your
outcome. (See nlp principle 3 - changing
behaviour.)
• 4. Take action now. (See nlp principle 4 - time
for action)
 Value analysis
• A technique for improving a product. The criterion by which the
improvement is judged is cost, but the value must not be reduced.
The object of value analysis is to reduce cost without reducing
value.
• Imediate objective of value analysis is to satisfy the customer
more economically. The designed, the methods of manufacture,
and distribution must be examined so as to eliminate all
expenditure which does not contribute to value.
• Everything that costs money between the obtaining of an order
and the receipt of the goods by the customer must be considered
 Value analysis is a creative
activity
• Immediate objective of an exercise in value analysis is to
reduce the cost of a product without reducing its value.
The revised product will be just as saleable and just as
goods as - maybe even better than - predecessor, but it
will be cheaper to produce.
 VALUE
• - Assumption in value analysis that the value of the product
may not be reduced when the cost is reduced.
• - Fundementally, value is the measure of the worth of the
product to the customer.

• DETERMINT VALUE
• - one method is to analysis the product, breaking it down into
a number of separate factors, each of which represents some
aspect of value to the customer and to put a numerical value
upon each factor.
• - First stage - prepare a list of all the features that
• might contribute to value in the type of product under
examination - each judge examines the full range of samples,
including the new model.
• - ranks each model, taking one value feature at a time, in order of
merit.

• VALUE ASSESSMENT OF CLOTHES DRYERS

• Value factor -appearance
• -capacity
• ease of loading
• ease of maintenance
• power consumption
• power size
- - the order of merit ratings can be converted into
scores in various ways.
-- the difficulty in this operations is that
estimates of value are largely subjective
- it is necessary to add the scores to get a total
value for each model.
 VALUE FACTORS

• factors which contribute value vary between products we

may classify all the factors which affect the value of any
product under four heads.
• - aesthetic
• - ergonomic
• - technical
• - economic
 Aesthetic factors

• -relate to emotional relationship between the person and the

product.

• -pattern, shape, colour, texture, taste or smell may add such

attraction to the product.

• -These factors are largely subjective and they are often

inconstant; some are affected by fashion, some by place.

• - however irrational, ephemeral, or local they may be

• - they add values for which the customers willingly pay.
 Ergonomic factors

- relate to the non-emotinal relations between the person and product.

- dimensions, form and texture of the product in relation to those parts operate.
- seats and working surfaces, the placing of levers, switchs, buttons, pedals windows,
earpieces and so on.
- they include the matching of moveable parts such as control levers or piano keys
with the muscles which will be used to operate them.
- include communicating devices such as semaphores, instruments, notices, alarm
bells, windows.
- include safety feature
- ergonomic features depends not only on the excellence of the design, also on the
extent to which the market is aware of such features
 Technical factors

- aspects of performance which the

customer values, such as speed and
payload of a vehicle, accuracy of a
machine tool or a measuring instrument,
or efficiency of any energy conversion
device.
 Economic factors

Total cost to the customer of the use of the

product.
•consumable, like food, fuel, soap, the cost of use is the
price to be paid.

•fuels may be compared by calculating the cost of fuel

required to give unit heat output.

• It is necessary to take into account the capital cost the

product, and its life, which might be measured in time or in
operations; the cost of power, fuel and lubricants consumed
by the product, the cost of maintenance, and possibly other
costs such as insurance, air conditioning.
 SCAMPER
• S WHAT CAN YOU SUBSTITUTE - INGREDIENTS,
MATERIALS, PEOPLE, PRODUCTS, IDEAS?
• INSTEAD OF A NEWSLETTER, TRY AN AUDIO
TAPE OR VIDEO TAPE, OR TELEMARKETING.
• C WHAT CAN YOU COMBINE - BLEND, MIX, JOIN
GROUP?
• MAKE IT A MIXTURE OF NEWS, ADS,SPECIALS,
STORIES FROM CLIENTS, PICTURES,JOKES.
• A WHAT YOU CAN ADAPT - BORROW, USE,
CHANGE,ALTER?
• BORROW SOME IDEAS FROM OTHER PAPERS,
CROSSWORDS, SPORT, CLASSIFIEDS.
• M WHAT CAN YOU MODIFY - MAGNIFY, MINIFY,
MOVE, RESHAPE, COLOUR?
• PRINT IT ON HUGE PAPER, VERY SMALL PAPER,
BLACK AND WHITE, FULL COLOUR, JUST TWO
COLOURS, WRITE IT
• M ON THE CARTONS IN WHICH YOU PACK STOCK,
WRITE IT ON THE PACKING PAPER.

• P WHAT CAN YOU PUT TO ANOTHER USE - PLAY

WITH, FLOAT, WASH, TALK TO?
• ENCOURAGE THE READER TO RECYCLE IT,
TURN IT INTO SOMETHING ELSE, RETURN IT TO
YOU.
• E WHAT CAN YOU ELIMINATE - DO AWAY WITH,
REDUCE, REMOVE?
• WHY HAVE ONE IN THE FIRST PLACE, BUY A
PAGE IN THE LOCAL PAPER, JOIN WITH SOMEONE
ELSE AND SHARE THE COST.

• R WHAT CAN YOU REVERSE - INSIDE OUT, UPSIDE

DOWN, OTHER WAY?
• GET THEM TO SEND YOU ONE INSTEAD OF YOU
SENDING IT TO THEM.
THE STRATEGIC INNOVATION
APPROACH
BASED ON THE BLUE OCEAN
STRATEGY

VALUE ANALYSIS
VALUE INNOVATION

COSTS

VALUE INNOVATION

BUYER VALUE
 VALUE INNOVATION

• New ideas must result in the decreased of

the costs to the manufacturer and the
increased in value to the buyers.
• Costs saving will be obtained by eliminating
and reducing of the factors an industry
competes on
• Buyer value is lifted by rising and creating
elements the industry has never offered
 VALUE INNOVATION
• Focus on making the competition
irrelevant
• Equal emphasis on value and innovation
• Align innovation with utility, price and cost
position
• Pursue differentiation and low cost
simultaneously
 BLUE OCEAN VERSUS RED OCEAN
STRATEGY

BLUE OCEAN RED OCEAN

• Create uncontested • Compete in existing
market space market space
• Make the competition • Beat the competition
irrelevant • Exploit existing demand
• Break the value-cost • Make the value-cost
trade-off trade-off
• In pursuit of • Startegic choice of
differentiation and differentiation or low cost
low cost
ANALYTICAL
TOOLS
Specific tools In the
Value Analysis
 STRATEGIC CANVAS
• Produces strategies that are easy to understand and
communicate, engage more people and unlock the
creativity of participants
• Shows strategic profile of an industry by depicting
clearly the factors that affect competition among
industry players
• Strategic profile of current and potential
competitors, identifying which factors they invest
in strategically.
• Shows the company strategic profile-value curve
 FOUR ACTION FRAMEWORK
Reduce
Which factors should be
reduced well below
the industry standard

Eliminate A new Value Create

Which of the factors that
the industry takes for
Curve Which factors should be
Created that the industry
Granted should be eliminated Has never offered ?

Raise
Which factors should be raised
Well above the industry’s
Standard ?
IMPLEMENTING
CREATIVE
THINKING
PROGRAMS -
STRUCTURES
AND
PROGRAMS
 CREATIVE PAUSE
- THE WILLINGNESS TO PAUSE AND
WONDER FROM TIME TO TIME.
- THE WILLINGNESS TO INTERUPT THE
SMOOTH FLOW OF AN OPERATION OR A
LINE OF THINKING TO ASK QUESTIONS:
“IS THERE AN ALTERNATIVE ?”
“ DO WE HAVE TO DO IT THIS WAY ?”
“ WHAT CAN WE DO WITH THIS ?”
 CHALLENGE
- DO WE HAVE TO DO THINGS
THIS WAY ?
- IS THERE A BETTER WAY OF
DOING THIS ?
- LET’S TAKE A LOOK AT THIS.
STRUCTURES AND PROGRAMS
QUALITY CIRCLES
- INTRODUCE CREATIVITY RIGHT AT THE
BEGINNING BECAUSE THE MEMBERS OF A
QUALITY CIRCLE MIGHT HAVE A LIST OF
USEFUL SUGGESTIONS TO MAKE , USING
THEIR EXPERIENCES AND LOGICAL
ANALYSIS.
- THE USE OF CREATIVE TECHNIQUES
WITHIN QUALITY
QUALITY, CONTINUOUS IMPROVEMENT,
AND COST-CUTTING
- IT IS NECESSARY TO FIND A “BETTER”
WAY OF DOING SOMETHING.
 CREATIVITY CENTER
- CREATICITY CENTER IS A TYPE OF
STRUCTURE.
- CREATIVITY CENTER COULD BE
RESPONSIBLE FOR THE CREATIVE HIT
LIST AND THE COULD “9” FILE.
- CREATIVITY CENTER PROVIDES AND
ENERGIZING AND A FOCUSING
STRUCTURE.
 CONCEPT R & D
- CONCEPT SHOULD BE
TREATED AS FORMALLY AS
TECHNICAL R & D.
 CLOUD “9” FILE
- CLOUD “9” SIGNIFIES “DREAM.”
- THE FILE IS A PHYSICAL FILE WHICH IS
CIRCULATED AROUND A CIRCULATION PATTERN
OF EXECUTIVES.
- THERE MAY BE SEVERAL SUCH FILES
CIRCULATING AND ALSO LOCAL FILES FOR
SPECIAL AREAS.
- THE FILES SHOULD REACH A PERSON ONCE
EVERY MONTH OR EVERY TWO MONTHS.
INTO THIS FILE GO THE FOLLOWING
POSSIBILITIES :
- NOVEL IDEAS
- CONSTRUCTIVE COMMENTS
- ORIGINAL IDEAS
- NEW CREATIVE FOCUSES
SEVERAL VALUE TO THE CLOUD “9” FILE

- A PERIODIC REMINDER TO THINK CREATIVELY.

- THE PROVISION OF CREATIVE FOCUSES
ABOUT WHICH TO THINK CREATIVELY.
- IDEA AND CONCEPT TO REACT TO.
- A SIMPLE CHANNEL INTO WHICH IDEAS CAN
BE PLACED.
- THE ACTUAL VALUE OF THE IDEAS AND
SUGGESTIONS.
 CREATIVE TASK SHEET
- THE CREATIVE TASK SHEET IS, HOWEVER, A
SPECIFIC CREATIVE REQUEST.
- THE RECIPIENT IS DIRECTLY ASKED FOR HIS
OR HER CREATIVE IDEAS ON A DEFINED
FOCUS.
- THE CREATIVE TASK SHEET IS INTENDED TO
OVERCOME SUCH RELUCTANCE AND ALSO TO
ELICIT NEW IDEAS.
- AT THE TOP THE TASK SHEET SETS OUT THE
CREATIVE TASK OR FOCUS.
- THE CREATIVE TASK SHEET IS SENT OUT
INDIVIDUALLY TO NAMED PEOPLE WHO
ARE BEING ASKED FOR THEIR CREATIVE
INPUT.
- A DEADLIND IS GIVEN AND THE
COMPLETED TASK SHEET MUST BE
RETURNED TO THE SENDER BY THAT
DATE.
- THE CREATIVE TASK CAN BE ORGANIZED
BY THE CREATIVITY CENTER OR THE
PROCESS CHAMPION.
 OPPORTUNITY AUDIT
- OPPORTUNITY AUDIT IS A
STRUCTURE THAT “DEMANDS”
ENTREPRENEURSHIP THINKING.
- AUDIT SHOULD SPELL OUT THE
CONSIDERED OPPORTUNITIES,
WHAT WAS DONE ABOUT THEM,
AND WHY THEY WERE NOT
TAKEN UP.
REGULAR CREATIVE SESSIONS
- SCHEDULE OF REGULAR CREATIVE
SESSIONS MIGHT BE SET UP WITHIN
A DEPARTMENT OR A LOCAL AREA.
- SESSIONS ARE SCHEDULED ON A
REGULAR BASIS: PERHAPS THE
FIRST WEDNESDAY IN EVERY
MONTH.
 GETTING THE CLIMATE RIGHT
• REMOVING FEARS
- THERE WILL BE MISTAKES MADE IN SOME, IF NOT ALL, OF THE
“ I “ TEAMS.
- ENCOURAGE THEM EARLY ON WHEN COSTS ARE LOW.
• OBJECTIVES
- CLEAR OBJECTIVE.
- THE CLIENT, CUSTOMER, OR USER OF A PRODUCT SHOULD
ALSO BE INVOLVED IN THE EARLY STAGES OF DEVELOPMENT.
• TRAINING FOR INNOVATION
- PROPER TRAINING FOCUSING THE INNOVATIVE SPIRIT, AND IN
IMPROVING THE EFFECTIVENESS OF TEAM WORKING.
• STIMULATING CREATIVITY
- MAINTAIN A FREE ENTREPRENEURIAL ATMOSPHERE.
PERMITTING EMPLOYEES TO WORK WITH THE MINIMUM OF
SUPERVISION.
- GIVEN A TASK AND CLEAR OBJECTIVES.
- THEY TEND TO TACKLE A JOB IN A TRIED-AND-TESTED
FASHION.
- PRODUCE A MORE INNOVATIVE SOLUTION
- KEEP WORK GROUPS SMALL AND TO ENCOURAGE
DECENTRALISATION.
- GETS A “BUZZ” OUT OF TAKING A PERSONEL PROJECT
THROUGH ITS VARIOUS DEVELOPMENT STAGES.
- THE NEED TO REWARDS SUCCESSES, AS A SIGN THAT
HE OR SHE HAS REALLY “MADE IT”.
- “MANAGEMENT BY WONDERING AROUND”
RECOGNITION THAT BUDDING IDEAS OFTERN
CRYSTALISE THROUGH INFORMAL DISCUSSIONS.
- PEOPLE ARE ENCOURAGED TO WANDER
INTO ONE ANOTHER’S WORK AREAS.
- WORKS IN OPEN-PLAN UNITS.
- NO SEPARATE CANATEENS FOR
MANAGER AND WORKERS, EVERYONE IS
ON A FIRST-NAME BASIS.
- STIMULATING BUT INFORMAL
ATMOSPHERE.
 CONCLUSION
• All staff of UNIRAZAK must strive to adopt Creative and
Innovative culture as the Corporate culture
• It must be made as a way of life and a serious hobby.
• Think creative all the time…. Pursue innovation steps
all the way..
• Strive to launch a new thing – ways, product, service,
process etc.. – all the time
• Project the mission of being the leader in the industry
globally.
Thank you for your kind
attention