CREATIVITY, INNOVATION

& ENTERPRENEURSHIP
Creativity

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

solutions, and possibilities in a unique and different way.
 Creativity is the ability to conceive something unpredictable, original and unique. It
must be expressive, exciting and imaginative. It is the mirror of how beautifully a
person can think in any given circumstance.
 Creativity is typically centered around original thought and knowledge, which
unleashes potential and is an integral part of idea generation.
Innovation

 Innovation is an act of application of new ideas to which creates some

value for the business organization, government, and society as well.
Better and smarter way of doing anything is innovation. It could be the
introduction of:
 New technology.
 New product line or segment.
 A new method of production.
 An improvement in the existing product.
Key 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 the risk is always attached to
innovation.
The six focus areas for
innovation are:

 Product --- what we produce and sell

 Service --- exceeding customer expectations
 Process --- continuous improvement of how we do things
 Management --- business strategies, systems and structures
 Open --- working beyond boundaries and collaborating globally
 Value --- creating unique value that eliminates the cost to compete
TYPES OF INNOVATION

1. Product Innovation
2. Process Innovation
3. Business Model Innovation
4. Service Innovation
5. Incremental Innovation
6. Radical Innovation
7. Disruptive Innovation
8. Sustaining Innovation
9. Open Innovation
10. Social Innovation
What is an Innovation Platform

 An innovation platform is a tool for building and growing ideas.

However, an innovation platform also refers to a technical solution
where you can build things fast and prototype tools.
 An innovation platform is a group of individuals. (who often
represent organizations) with different. backgrounds and
interests: farmers, agricultural input.
 The Open Innovation Platform (OIP) is a virtual crowd-sourcing
platform that matches challenges of Problem Owners to a pool
of Problem Solvers. It is an ecosystem where innovation is open for
all. Enterprises, large and small, can access a diverse pool of ideas and
capabilities to address their innovation needs.
Technical Open Innovation
Platforms

 One of the biggest changes in the way in which companies approach innovation
has been the growth of a technology-based open innovation platform. Let’s go
through an example to understand what is an open innovation platform?
 Moreover, one of the biggest open innovation examples is Linux, an operating
software that competes with Microsoft and Apple, which are developed in the
closed innovation policy platform.
 Therefore, the biggest benefit of open-source software is that the software is
continuously tested by programmers with 100 percent transparency.
Idea Management Platform

 This is an idea-sharing platform where people can come together and share their
thoughts on the idea management process.

 So, the goal of an innovation management platform is to help companies come

together, gather ideas from their employees, and evaluate each idea individually.

 Then, developing good ideas for the market more quickly will allow them to increase
productivity.
Examples of innovation
Platforms

 Ennomotive – The Hub For Engineering Innovation

 Crowdspring – Design Has Done Better
 Viima – The Best Way To Develop And Collect Ideas
 Kaggle – The Place For Data Science Projects
Business Model Innovation

 Business Model Innovation (BMI)

involves rethinking and
redesigning the way a company
creates, delivers, and captures
value. It’s not just about changing
what a company offers, but also
how it operates, acquires
customers, and generates
revenue.
 Exampes:- Netflix, Uber
Key Aspects:
1. Value Proposition: BMI may involve changing the core value proposition of
a company, which defines what it offers to its customers and why they
should choose it over competitors.
2. Revenue Model: This can involve altering how a company generates
revenue, whether through subscription models, licensing, pay-per-use, or
other innovative methods.
3. Cost Structure: Innovations in the cost structure can lead to more efficient
operations and potentially higher profit margins.
4. Channels and Distribution: It may entail finding new and more effective
ways to reach and engage with customers.
Service Innovation

 Service Innovation focuses on developing new or improved services to

meet customer needs or create additional value. It can involve creating
entirely new services, enhancing existing ones, or improving the way
services are delivered.
 The innovative application of thought to the delivery of utilities and
services is known as Service Innovation. Established programmes can
be enhanced, or entirely new services can be created.
Key Aspects

• Service Design: This involves the process of designing and organizing

people, infrastructure, communication, and material components of a
service to improve its quality and the interaction with the customer.
• Customer Experience: Service innovation often centers around
providing a better and more satisfying customer experience, which can
lead to increased loyalty and brand reputation.
• Process Efficiency: It can also involve finding ways to deliver services
more efficiently without compromising quality.
Design-led Innovation

 Design-led innovation is an approach to product or service development that places

a strong emphasis on understanding and addressing the needs, desires, and
experiences of end-users. It involves integrating design thinking principles and
practices into the entire innovation process, from ideation to execution.
 Design-led innovation refers to the philosophy that businesses should be forward-
thinking and problem-solving. It takes the principles of design and applies them to
the running of a company. The popularity of design-led innovation is growing as its
success becomes evident.
 Having a design state of mind means incorporating empathy and understanding in
order to appreciate your goal and work towards it.
Key Components

1. User-Centered Approach: This approach puts the user at the center of the design process. It
involves conducting in-depth research to gain insights into the users’ behaviors, pain points, and
aspirations.
2. Empathy and Observation: Design-led innovation requires designers to empathize with users and
observe their behaviors in real-world contexts. This helps in uncovering unmet needs.
3. Iterative Prototyping: The process often involves rapid prototyping and iteration(Like Steps).
Designers create multiple versions of a product or service and test them with users to gather
feedback and refine the design.
4. Cross-disciplinary Collaboration: It encourages collaboration between designers, engineers,
marketers, and other stakeholders to ensure a holistic approach to problem-solving.
5. Aesthetics and Experience Design: Design-led innovation places a strong emphasis on
aesthetics, user interface, and overall user experience. It aims to create products that are not only
functional but also visually appealing and emotionally engaging.
6. Market Sensing: This involves keeping a finger on the pulse of market trends and emerging
technologies, allowing designers to anticipate future needs and opportunities.
Improvisation

 Improvisation is the act of creating or adapting something on the spot, without

extensive planning or preparation. It’s often associated with creativity, and
adaptability.
 Improvisation is the ability to create and implement a new or an unplanned solution in
the face of an unexpected problem or change. It is often seen as a spontaneous,
intuitive, creative problem-solving behaviour that mostly happens “on the fly.”
 It is considered a spontaneous behaviour (collectively or individually), and therefore
dependent on team members’ attitudes, experience, motivation, intuition, and
individual skills.
Key Aspects

1. Adaptability: Improvisation requires the ability to adapt to changing

circumstances or unexpected situations in real-time.
2. Creativity and Innovation: It involves generating ideas and solutions on
the fly, often in response to immediate challenges.
3. Risk-taking: Improvisation often involves taking risks, as decisions are
made in the moment without the benefit of extensive analysis or planning.
4. Collaboration: Effective improvisation often involves collaboration and the
ability to work seamlessly with others, responding to their cues and
contributions.
5. Quick Thinking: Improvisers need to think quickly and make decisions in
the moment, often with limited information.
Types of Improvisation

 Imitative improvisation, exhibited by the least-experienced players, consists of observing what more-
experienced people are doing and matching their responses with minimal variation. this is the simplest
type of improvisation, it is an effective starting point that enables newcomers with limited experience to
get involved.
 Reactive improvisation: using inputs from both the environment and other players to develop your
own original reaction to an unexpected situation, without relying on others’ actions as a guide. this type
of improvisation was generally developed after players had already mastered imitative improvisation, as
it required players to build on their existing experience to extrapolate new, original courses of action.
 Generative improvisation is about probing into the future and proactively trying new things in an
attempt to anticipate and even catalyse (rather than react to) what could happen. Because it is
fundamentally speculative, generative improvisation is inherently the riskiest but it’s also often the
most effective for developing truly unique, innovative ideas. This type of improvisation was exemplified
by a moment when two players decided on the spot to embark on a dangerous mission aimed at
retrieving a powerful artifact in order to avoid potential problems in the future, without any specific
external event triggering that decision.
Large Firm Innovation:

 Large firms and start-ups approach innovation in distinct ways due to their differences in size, structure,
resources, and organizational culture. Let’s compare how innovation manifests in both:
1. Resources:
• Financial Strength: Large firms typically have significant financial resources, allowing them to allocate
substantial budgets for research and development.
• Access to Capital: They have easier access to capital, which can be used for long-term projects and product
development.
2. Infrastructure:
• Established Infrastructure: Large firms often have well-developed infrastructure, including R&D
departments, laboratories, and specialized teams.
3. Market Presence:
• Established Market Position: They usually have an established market presence and customer base,
providing a foundation for launching new products or services.
4. Risk Tolerance:
• Lower Risk Tolerance: Due to their size and existing revenue streams, large firms may have a lower
tolerance for high-risk ventures.
Examples of Big Corporations:

 Technology: Apple, Google, Microsoft, Amazon

 Automotive: Toyota, Volkswagen, General Motors, Ford
 Retail: Walmart, Amazon, Carrefour, Tesco
 Finance: JPMorgan Chase, Bank of America, HSBC, BNP Paribas
 Pharmaceutical: Pfizer, Johnson & Johnson, Merck, Novartis
Startup Innovation: Fueling Growth and Disruption

 Startup innovation is the process of creating new businesses or products that challenge existing
markets or introduce novel solutions to unmet needs. Startups often play a pivotal role in driving
economic growth, fostering innovation, and disrupting established industries.
Key Characteristics of Startup Innovation

 Disruptive Technology: Startups often leverage new technologies to create innovative products or
services.
 Scalability: Startups aim to build businesses that can grow rapidly and reach a large customer base.
 Risk-Taking: Entrepreneurs are willing to take risks and pursue unconventional ideas.
 Customer Focus: Startups typically have a deep understanding of their target market and focus on
meeting customer needs.
 Agile Development: Startups often adopt agile methodologies to quickly iterate and adapt to
changing market conditions.
Types of Startup Innovation

 Product Innovation: Introducing new products or services to the market.

 Business Model Innovation: Creating new ways to generate revenue or deliver value to
customers.
 Social Innovation: Addressing social or environmental problems through innovative
solutions.
 Technological Innovation: Developing new technologies or applications.
Key Differences Between Large Firm Innovation and Startup
Innovation

 Large firms and startups often approach innovation differently, each with its own strengths and
weaknesses. Here are some key differences:
 Large Firms:
 Resources: Access to significant financial resources, infrastructure, and established networks.
 Stability: Established market position and customer base.
 Risk Aversion: Tendency to prioritize incremental innovation and avoid risky ventures.
 Bureaucracy: Slower decision-making processes and more complex organizational structures.
 Innovation Approach: Often focus on incremental innovation, mergers and acquisitions, and
research and development.
 Startups:
 Agility: Smaller size allows for faster decision-
making and adaptation. Feature Large Firms Startups

 Risk Tolerance: Willingness to take risks and pursue Resources Abundant Limited
disruptive innovations.
Risk Tolerance Lower Higher
 Customer Focus: Often have a deep understanding of
their target market and customer needs. Innovation Focus Incremental Disruptive

 Resource Constraints: Limited financial resources

Decision-Making Slower Faster
and infrastructure.
 Innovation Approach: Typically focus on disruptive Organizational
Structure Complex Lean
innovation, rapid prototyping, and experimentation.
Co-Creation vs. Open Innovation: A Comparative Analysis

 Co-creation and open innovation are both strategies that involve external collaboration
to drive innovation. While they share some similarities, there are distinct differences
between the two approaches.
 Co-Creation
 Focus: Primarily focuses on involving customers or other stakeholders in the value
creation process.
 Scope: Often more focused on specific product or service development.
 Level of Involvement: Typically involves a higher level of customer involvement in the
development process.
 Example: A company organizing workshops with customers to gather feedback and
co-design a new product.
Key Features of Co-Creation Innovation

 Co-creation is a collaborative approach to innovation that involves actively engaging customers or other stakeholders in the
development of products, services, or solutions. Here are some key features of co-creation innovation:
1. Customer Centricity: Co-creation places customers at the center of the innovation process, ensuring that products and services meet
their needs and expectations.
2. Collaboration: Co-creation involves active collaboration between the organization and its stakeholders, fostering a sense of
ownership and engagement.
3. Iterative Development: Co-creation often involves an iterative process of feedback, prototyping, and refinement, ensuring that the
final product or service is aligned with customer preferences.
4. Shared Value: Co-creation can create shared value for both the organization and its stakeholders, leading to stronger relationships
and increased customer loyalty.
5. Innovation Ecosystem: Co-creation can foster a more diverse and innovative ecosystem by bringing together people with different
perspectives and expertise.
6. Reduced Risk: By involving customers early in the development process, organizations can reduce the risk of developing products
or services that do not meet market needs.
7. Increased Customer Satisfaction: Co-creation can lead to higher levels of customer satisfaction and loyalty, as customers feel more
involved in the development process.
Open Innovation

 Focus: Emphasizes seeking external ideas and knowledge from a wider range of sources.
 Scope: Can encompass a broader range of activities, such as technology licensing or joint
ventures.
 Level of Involvement: May involve a wider range of external partners with varying levels of
involvement.
 Example: A company launching a public innovation challenge to solicit ideas from external
inventors.
Key Features of Open Innovation

 Open innovation is a business strategy that involves seeking and leveraging external ideas and knowledge to develop new
products and services. It breaks down the boundaries of the organization and fosters collaboration with external partners. Here
are some key features of open innovation:
 External Collaboration: Open innovation involves collaborating with external sources, such as universities, research
institutions, startups, and individual inventors.
 Idea Generation: Open innovation encourages the generation of new ideas and concepts from both internal and external
sources.
 Knowledge Sharing: Organizations that practice open innovation actively share their knowledge and resources with external
partners.
 Risk Reduction: By leveraging external ideas, organizations can reduce the risk of investing in unsuccessful projects.
 Increased Innovation: Open innovation can lead to a more diverse and innovative pipeline of products and services.
 Market Access: Collaborating with external partners can provide organizations with access to new markets and customers.
 Speed to Market: Open innovation can accelerate the development and commercialization of new products and services.
Feature Co-Creation Open Innovation

Focus Customer involvement External ideas and knowledge

Scope Product/service development Broader range of activities

Level of Involvement Higher customer involvement Wider range of partners

Developing an Innovation Strategy

 Clear Objectives:
Define clear objectives for innovation, aligning them with overall business goals and long-
term vision.
 Understanding Market and Customer Needs:
Conduct thorough market research to understand customer needs, pain points, and emerging
trends.
 Balancing Internal and External Innovation:
Determine the right balance between internal R&D efforts and external collaborations through
open innovation.
 Resource Allocation:
Allocate appropriate resources, including budget, talent, and time, for innovation initiatives.
 Risk-Tolerance and Experimentation:
Foster a culture that embraces calculated risk-taking and experimentation, allowing for the
exploration of new ideas.
 Measuring and Evaluating Innovation:
Establish metrics and key performance indicators (KPIs) to track the progress and impact of
innovation efforts.
 Measuring and Evaluating Innovation:
Establish metrics and key performance indicators (KPIs) to track the progress and impact of
innovation efforts.
 Feedback and Iteration:
Create mechanisms for collecting feedback from customers, stakeholders, and employees to
continuously refine and improve innovation initiatives.
 Adaptability and Flexibility:
Be prepared to adapt the innovation strategy in response to changing market conditions,
technological advancements, and customer preferences.
 Leadership and Organizational Support
Ensure that leadership supports and champions innovation efforts, and that there’s alignment
throughout the organization.
By integrating co-creation, open innovation, and a well-defined innovation strategy, organizations can
tap into a broader pool of ideas, resources, and expertise, leading to more effective and customer-
centric innovation outcomes. This approach helps businesses stay competitive in an ever-evolving
market landscape.
Sources of Innovation: Where New Ideas Come From

 Innovation can arise from various sources, both internal and external to an organization. Here are some
key sources of innovation:
 Internal Sources:
 Employees: Employees often have valuable insights and ideas that can lead to innovation.
 Research and Development (R&D): Dedicated R&D departments can generate new ideas and
technologies.
 Intrapreneurship: Encouraging employees to act like entrepreneurs within the organization can foster
innovation.
 Knowledge Management: Sharing and leveraging knowledge within the organization can lead to new
insights and ideas.
 Corporate Culture: A culture that encourages creativity, experimentation, and risk-taking can foster
innovation.
External Sources:

 Customers: Understanding customer needs and preferences can lead to innovative product or service ideas.
 Competitors: Analyzing competitors' products and services can inspire new ideas.
 Partners and Suppliers: Collaborating with external partners can lead to cross-pollination of ideas.
 Industry Trends: Keeping up with industry trends and developments can identify opportunities for innovation.
 Academic Institutions: Universities and research institutions can be a source of new knowledge and ideas.
 Government Agencies: Government agencies may fund research or provide incentives for innovation.
 Crowdsourcing: Leveraging the collective intelligence of a large group of people to generate ideas.
By tapping into these various sources of innovation, organizations can increase their chances of
developing new products, services, or business models that meet the needs of their customers and drive
growth.
Innovation Environment: Fostering Creativity and Growth

 An innovation environment is a set of conditions that encourage and support the development of new ideas and products. It is
essential for organizations to create a conducive environment for innovation to thrive.
 Key Components of an Innovation Environment:
 Culture of Creativity: A culture that values creativity, experimentation, and risk-taking.
 Open Communication: Open and transparent communication channels that encourage the exchange of ideas.
 Collaboration: A collaborative environment that fosters teamwork and cross-functional collaboration.
 Leadership Support: Strong leadership that supports and encourages innovation.
 Resource Allocation: Adequate resources, including funding, time, and personnel, allocated for innovation activities.
 Diversity and Inclusion: A diverse workforce with different perspectives and experiences can contribute to innovation.
 Mentorship and Coaching: Providing mentorship and coaching to support employees' development and growth.
 Failure Tolerance: A culture that is accepting of failure and sees it as a learning opportunity.
 Incentives and Rewards: Recognizing and rewarding innovation can motivate employees to continue generating new ideas.
Creative Destruction: Origin and Meaning

 Creative destruction is a term coined by economist Joseph Schumpeter to describe the process of industrial innovation that leads to the destruction of old industries and the
creation of new ones. It is a fundamental concept in economics that highlights the dynamic nature of markets and the importance of innovation for economic growth.
 Origin:

 The term "creative destruction" was first used by Schumpeter in his 1942 book "Capitalism, Socialism, and Democracy." He argued that economic development is driven by
innovation, which leads to the destruction of old industries and the creation of new ones. This process, he believed, is essential for economic growth and progress.
 Meaning:

 Innovation: The introduction of new products, services, or technologies.

 Destruction: The decline or obsolescence of existing industries or technologies.
 Creation: The emergence of new industries and economic opportunities.
 In essence, creative destruction is the process of industrial innovation that leads to the destruction of old economic structures and the creation of new ones. This
process is often disruptive, but it is also essential for economic growth and progress.
 Examples of creative destruction:
 The rise of the internet disrupting traditional industries like newspapers and retail.
 The development of smartphones replacing traditional mobile phones.
 The advent of electric vehicles challenging the dominance of gasoline-powered cars.