C o n f i d e n t i a l

Unit-12 Role of Creativity & Innovation in Business

Program : MBA
Semester : IV
Subject Code : MB0052
Subject Name : Strategic Management and Business Policy
Unit number : 12
Unit Title : Role of Creativity and Innovation in Business
Lecture number : 12
Lecture Title : Role of Creativity and Innovation in Business

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C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Objectives

The objective of this lecture is to discuss:
Creativity and different stages in creativity
Innovation and the types of innovation
Process to build creative and innovative business culture
Innovative methods adopted to promote creativity and innovation
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Role of Creativity & Innovation in
Business
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Introduction
Stages in Creativity
Innovation
Creating a Creative & Innovative Business Culture
Practices Adopted to Promote Creativity and Innovation
Importance of Creativity and Innovation
Challenges Involved in Creativity and Innovation
Summary
Check Your Learning
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Lecture Outline
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Creativity is an act of turning new and imaginative ideas into reality.
Creativity includes two processes - thinking and producing

The components of creativity are:
Forging
Reflecting
Adopting
Nurturing
Knuckling down
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Introduction
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
The stages listed below are used by many artists, creatives, and problem
solvers, both individually or in a group in order to develop and implement
the ideas.

The stages in creativity are:
Preparation
Incubation
Illumination
Verification
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Stages in Creativity
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Innovation is implementation of ideas which results in an improvement, a
gain, or a profit.

The components of innovation are:
Implementation
Creativity

The types of innovation are:
Architectural innovation
Market niche innovation
Regular innovation
Revolutionary innovation
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Innovation
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Managers must first understand the steps of creativity to create an
innovative business culture.
The business practices followed to create and build a creative and
innovative business culture are:
Select the most promising innovators, but encourage unexpected
surprises
Create buffer zones for the most innovative people
Give room to innovators to play
Resist the temptation to look for immediate results
Commitment to drive and implement the best ideas
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Creating a Creative and Innovative
Business Culture
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Practices adopted by organisations to promote creativity and
innovation are:
Brainstorming
Mind mapping and mind revolution
Out of the box thinking
Rewarding best ideas
Using metaphors/jargons/slogans
Other methods
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Practices Adopted to Promote
Creativity and Innovation
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Brainstorming - Brainstorming is an organised approach for producing ideas by
letting the mind think without interruption.
Mind mapping - Mind mapping is a technique that allows you to make the
best use of your brain power. Mind-mapper is software which accelerates
mind-mapping. A mind map uses lines, words, images, colors and sounds to
stimulate your brain.
Out of the box thinking It is a way of thinking that involves thinking in
diverging directions and involves a variety of aspects which leads to novel ideas
associated with creativity.
Rewarding best ideas Reward is one of the biggest motivators for creative
persons. Creativity and innovation can be rewarded in personal and creative ways.
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Practices Involved to Promote
Creativity and Innovation contd
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Using metaphors/jargons/slogans
Using metaphor Metaphor establishes a kind of creativeness that has
the potential to spark quantum leaps in thinking.
Using jargons Jargon is a technical language used by a particular
profession, group or trade to keep outsiders away from understandings
within an organisation.
Using slogans - A creative slogan reflects the details and personality of
an organisation. Organisations have in-house slogans meant only for its
employees and workers as well as marketing or advertising slogans that
represent the companys products, brands and image.

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Practices Involved to Promote
Creativity and Innovation contd
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Other methods - Different companies will have different methods and
techniques to promote and maintain innovative or creative culture in the
organisational environment. One of the method is intrapreneurship. It is
a method of practicing entrepreneurship by the employees within an
organisation.
Intrapreneurship involves creativity, innovation, the ability to take risk
and to look at things in novel ways.
An intrapreneur visualises like an entrepreneur looking out for
opportunities which will profit the organisation
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Practices Involved to Promote
Creativity and Innovation contd
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Creativity is a powerful tool that can improve the performance of an
organisation in an amazing way.

The importance of creativity and innovation in business are:
Keeping minds open for new opportunities
Securing competitive advantage
Creating a successful innovation strategy
Improving organisational culture
Removing strategic barriers
Changing attitude towards risk
Improving learning and knowledge transfer
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Importance of Creativity and
Innovation in Business Management
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Challenges Involved in Creativity and
Innovation
Business forecasters predict that creativity and innovation are the most
important factors in establishing and maintaining a competitive
advantage.

Following are few of the challenges which creative and innovative
companies face:
Adaptability
Innovation
Engagement
Hostility
Isolation
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C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Feasibility, time frame and practicality of the ideas
The process of creating a new idea consists of the following four stages:
Gather stimuli
Multiply stimuli
Create customer concepts
Optimise practicality

Cost involved in implementing ideas
The cost of implementation of ideas has to be addressed in brainstorming
sessions. Implementation of ideas must be made creative and cost
saving.
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Challenges Involved in Creativity and
Innovation contd
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Technical aspects involved in innovation
Implementation of innovation involves technical aspects. Managing the
technical aspects of innovation and creativity is related to managing
personnel and organisational changes.

Acceptance of innovation in the market
Implementation of innovation is associated with market growth.
Organisation has to emphasise on latest innovative characteristics and
functional features of the product.

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Challenges Involved in Creativity and
Innovation contd
C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Creativity is an act of turning new and imaginative ideas into reality.
Innovation is implementation of ideas which results in an
improvement.
Managers must first understand the steps of creativity to create an
innovative business culture.
Practices adopted by organisations to promote creativity and
innovation are brainstorming, mind mapping and mind revolution, out
of box thinking, rewarding best ideas, using
metaphors/jargons/slogans and other methods.
Business forecasters predict that creativity and innovation are the
most important factors in establishing and maintaining a competitive
advantage.
Summary
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C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
1. Define creativity ?
Ans. Creativity can be defined as an act of turning new and imaginative
ideas into reality.

2.What are the components of innovation?
Ans. Components of innovation are implementation and creativity.

3.What is entrepreneurship?
Ans. Entrepreneurship is the practice of getting on a new business or
reviving an existing business by pooling resources to exploit new
found opportunities.
Check Your Learning
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C o n f i d e n t i a l
Unit-12 Role of Creativity & Innovation in Business
Refer to http://www.bpir.com/new-product-development-innovation-
strategy-bpir.com/menu-id-72/example-cases.html and study the
various innovation strategies used by the organisations for developing a
new product.

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