BBA465

45 Hrs
Credits: 3

Innovation and
Creativity in
Business
Unit 1: Introduction to the process of
innovation

+ Incremental and Radical Innovation,

+ Factors that favours incremental innovation,
+ Innovation in processes,
+ Service innovations.
+ The concept of S-curve: Three lessons, Where do you
stand on the S- curve,
+ Limits to these lessons.
 Factors that favours incremental innovation
Risk Mitigation: Incremental innovation is generally less risky compared to radical innovation. Since it builds upon existing knowledge
and technology, the likelihood of success is often higher, and the associated risks are lower.

Resource Efficiency: Incremental innovation typically requires fewer resources than radical innovation. Companies can leverage existing
infrastructure, knowledge, and capabilities, reducing the need for extensive research and development investments.

Customer Acceptance: Incremental innovations are often easier for customers to understand and adopt. They represent gradual
changes that are less disruptive to established routines and are more likely to be accepted by the market.

Market Stability: Incremental innovation helps companies maintain a stable position in the market. It allows them to respond to changing
customer preferences, emerging trends, or competitive pressures without undergoing significant strategic shifts.

Continuous Improvement: Incremental innovation encourages a culture of continuous improvement within an organization. By
consistently making small enhancements, companies can stay competitive and adapt to evolving market conditions.

Feedback Integration: Incremental innovation allows for the integration of customer feedback and market insights on an ongoing basis.
Companies can learn from the reception of their existing products and use this information to refine and enhance their offerings.

Leveraging Existing Assets: Incremental innovation builds on the knowledge, skills, and infrastructure already present within the
organization. This allows companies to leverage their existing assets and capabilities, making the innovation process more efficient.

Shorter Time-to-Market: Since incremental innovations involve smaller changes, they often have shorter development cycles. This allows
companies to bring new or improved products to market more quickly, maintaining competitiveness and relevance.

Risk Tolerance: Companies with lower risk tolerance may find incremental innovation more appealing. It allows for a step-by-step
approach, reducing the likelihood of major setbacks.

Competitive Edge: Continuous incremental innovations can contribute to a sustained competitive advantage. Companies that
consistently improve their products or services can differentiate themselves in the market over time.
Innovating processes involves
making changes to the way
activities and tasks are carried
out within an organization.
This can lead to increased
efficiency, effectiveness, and
often cost savings
Technology Integration: Adopting new
technologies or upgrading existing ones
can significantly enhance process
efficiency. Automation, artificial
intelligence, and other advanced
technologies can streamline workflows,
reduce errors, and improve overall
productivity.
Cross-functional Collaboration:
Breaking down silos and promoting
collaboration between different
departments or teams can lead to
innovative process solutions. A holistic
approach ensures that the entire value
chain is considered for optimization.
Customer-Centric Design: Designing
processes with a focus on meeting
customer needs and expectations can
lead to higher satisfaction and loyalty.
Understanding the customer journey
and incorporating feedback into process
improvements is crucial.
Data Analytics: Utilizing data analytics
tools helps organizations gather
insights, make informed decisions, and
optimize processes. By analyzing data,
organizations can identify areas for
improvement, predict trends, and
enhance decision-making processes.
Agile Methodologies: Agile
methodologies, often used in software
development, focus on iterative
development and quick adaptation to
changes. Applying agile principles to
other processes can enhance flexibility
and responsiveness to evolving needs.
Risk Management: Innovating
processes should also involve
considering and managing associated
risks. Identifying potential risks and
developing strategies to mitigate them
ensures that the implementation of new
processes is smooth.
Lean Methodologies: Implementing
lean principles involves minimizing
waste and maximizing value.
Techniques such as Six Sigma and
Lean Six Sigma can help organizations
identify and eliminate inefficiencies in
their processes.
Employee Involvement: Employees
who are directly involved in a process
often have valuable insights into its
strengths and weaknesses.
Encouraging their input and involving
them in the innovation process can lead
to more effective solutions.
Training and Development: Providing
ongoing training to employees ensures
that they are equipped with the skills
and knowledge needed to adapt to new
processes. This reduces resistance to
change and facilitates a smoother
transition.
Continuous Improvement Culture:
Establishing a culture of continuous
improvement encourages employees to
regularly identify and suggest
improvements to existing processes.
This involves a mindset of always
seeking ways to do things better.
Benchmarking: Comparing processes
with industry benchmarks or best
practices can highlight areas that need
improvement. Learning from successful
processes in other organizations can
inspire innovative changes.
Environmental Sustainability:
Incorporating environmentally
sustainable practices into processes
aligns with the growing emphasis on
corporate social responsibility.
Innovations that reduce environmental
impact can also result in cost savings.
Service innovation involves creating or
improving services to better meet the
needs of customers, increase customer
satisfaction, and gain a competitive
advantage
 Customer-Centric Approach:
Understanding customer needs and
preferences is crucial for service
innovation. Gathering feedback,
conducting market research, and
engaging with customers directly can
provide valuable insights to design
services that truly meet customer
expectations.
Multi-Channel Delivery: Offering
services through multiple channels,
such as online platforms, mobile
apps, or in-person interactions,
provides customers with flexibility
and convenience. Omni-channel
strategies can enhance the overall
accessibility of services.
Feedback Mechanisms:
Establishing effective feedback
mechanisms allows organizations to
continuously improve their services
based on customer input. This
iterative approach ensures that
services remain aligned with evolving
customer expectations.
User Experience (UX) Design:
Focusing on the overall user
experience ensures that services are
intuitive, easy to use, and enjoyable
for customers. User-centric design
principles can enhance the usability
and appeal of services.
Process Efficiency: Streamlining
service delivery processes can result
in improved efficiency, reduced costs,
and faster response times.
Automation and optimization of
service workflows contribute to a
more seamless customer experience.
Social Responsibility: Incorporating
social and environmental
responsibility into services can
resonate with socially conscious
consumers. Offering sustainable or
socially impactful services can
contribute to a positive brand image.
Technology Integration: Leveraging
emerging technologies can lead to
innovative services. This includes
incorporating artificial intelligence,
machine learning, augmented reality,
or other cutting-edge technologies to
enhance and differentiate services.
Collaboration and Partnerships:
Collaborating with other
organizations or forming strategic
partnerships can lead to innovative
service offerings. Combining
complementary services can create
unique value propositions for
customers.
Agile Development: Adopting agile
methodologies in service
development allows for iterative and
responsive adjustments to better
meet customer needs. This flexibility
is particularly valuable in rapidly
changing markets.
Personalization: Tailoring services
to individual customer needs and
preferences contributes to a more
personalized and engaging
experience. This can involve
customization options, personalized
recommendations, or adaptive
services that evolve based on user
behavior.
Subscription Models: Introducing
subscription-based services can
provide a steady and predictable
revenue stream while offering
customers ongoing value. This model
is particularly popular in industries
such as streaming, software, and
various online platforms.
Data Security and Privacy:
Ensuring the security and privacy of
customer data is essential for
building trust. Innovations that
address these concerns contribute to
a positive customer experience and
compliance with regulatory
requirements.
+The S-curve is a graphical
representation often used in
business and innovation to
illustrate the life cycle of a product,
technology, or industry. It typically
shows a slow initial growth phase,
followed by a rapid growth phase,
and then a plateau as the
innovation matures.
+Here are three key lessons derived
from the concept of the S-curve:

technology, or industry is on
Lesson: Innovations and
Understanding the technologies follow a life
cycle, and understanding
Innovation Lifecycle:
this cycle is crucial for
strategic planning.
competition may be intense,
Implication: Recognizing
where a product,
the S-curve helps
businesses and
organizations make
informed decisions. In the
early stages (the bottom of
the curve), there may be
significant uncertainty and
risk, but also potential for
high growth. In the mature
stages (the plateau),
and further growth might
require diversification, new
features, or finding new
markets.
+Innovation and Adaptation:
• Lesson: Innovation is essential for long-
term success, and organizations need to
adapt to stay competitive.
• Implication: As an innovation progresses
along the S-curve, the rate of growth
eventually slows down. To maintain
momentum, organizations must
continually invest in innovation, whether
it's through product enhancements,
process improvements, or exploring new
technologies. This adaptation can involve
not just creating entirely new products
but also optimizing existing ones or
finding new applications for current
technologies.
+ Strategic Timing and Transitions:
• Lesson: Timing is critical in the innovation
journey, and successful transitions from one
S-curve to another require strategic planning.
• Implication: Recognizing when an innovation
is approaching maturity on its current S-curve
allows organizations to plan for the next wave
of growth. This may involve developing
entirely new products, entering new markets,
or adopting disruptive technologies.
Managing these transitions effectively can
mean the difference between sustained
success and decline.
limitations
+Assumption of Predictability:
• Limitation: The S-curve assumes a level of predictability in the life cycle of
innovations. In reality, external factors, market dynamics, and unforeseen
events can significantly impact the trajectory of a product, technology, or
industry.
+Homogeneous Growth Patterns:
• Limitation: The S-curve may oversimplify the diverse growth patterns
observed across different industries and technologies. Not all innovations
follow a smooth and predictable trajectory, and some industries may
experience multiple S-curves due to ongoing disruptions.
+Neglect of External Influences:
• Limitation: The S-curve model tends to focus on internal factors
within an industry or technology, often neglecting external influences
such as regulatory changes, geopolitical events, or shifts in consumer
behavior.
+Overemphasis on Product-Centric View:
• Limitation: The S-curve is often applied to products and technologies,
but its applicability to service-based innovations or business
processes may be limited.
+No One-Size-Fits-All Solution:
• Limitation: The S-curve is a generalized model, and its lessons might
not apply uniformly to all industries, companies, or innovations.
Unit 2: Idea
generation
New Knowledge,
Tapping the ideas of customers,
Learning from the lead users,
Empathetic design,
Invention factories and
Skunkworks,
Open market innovation,
The role of mental preparation,
How management can encourage
idea generation,
Two idea generating techniques.
Trends
+The start of a trend that lasts for a considerable period of time
provides one of the greatest opportunities for starting a new
venture.
+Trends that will provide opportunities include: green trend,
clean-energy trend, organic-orientation trend, economic trend,
social trend, health trend, and Web trend.
Sources of New Ideas
+Consumers
+Informally monitor potential ideas and needs.
+Formally arrange for consumers to express their
opinions.
+Existing Products and Services
+Analysis uncovers ways to improve offerings that may
result in a new product or service.
+Distribution Channels
+Channel members can help suggest and market new
products.
Sources of New Ideas (cont.)

+Federal Government
+Files of the Patent Office can suggest new product
possibilities.
+New product ideas can come in response to
government regulations.
+Research and Development
+A formal endeavor connected with one’s current
employment.
+An informal lab in a basement or garage.
Methods of Generating New Ideas
+Focus Groups
+A moderator leads a group of 8 to 14 participants
through an open, in-depth discussion in a directive or
nondirective manner.
+An excellent method for generating and screening ideas
and concepts.
 Methods of Generating New Ideas
(cont.)

+Brainstorming
+Allows people to be stimulated to greater creativity.
+Good ideas emerge when the brainstorming effort focuses on a specific
product or market area.
+Rules of brainstorming:
+ No criticism.
+ Freewheeling is encouraged.
+ Quantity of ideas is desired.
+ Combinations and improvements of ideas are encouraged.
Methods of Generating New Ideas
(cont.)

+Brainwriting
+A form of written brainstorming.
+Participants write their ideas on special forms or cards
that circulate within the group.
+Problem Inventory Analysis
+Consumers are provided with a list of problems and are
asked to identify products that have those problems.
+Results must be carefully evaluated as they may not
actually reflect a new business opportunity.
Creative Problem Solving
+Creativity tends to decline with age, education,
lack of use, and bureaucracy.
+Latent creative potential can be stifled by
perceptual, cultural, emotional, and organizational
factors.
+Creativity can be unlocked by using any of the
creative problem-solving techniques.
Creative Problem Solving (cont.)

+Brainstorming
+Session starts with a problem statement.
+No group member should be an expert in the field of the
problem.
+All ideas must be recorded.
+Reverse Brainstorming
+A group method that focuses on the negative aspects of
a product, service, or idea as well as ways to overcome
these problems.
+Care must be taken to maintain group morale.
Creative Problem Solving (cont.)

+Gordon Method
+Method for developing new ideas when the individuals
are unaware of the problem.
+Solutions are not clouded by preconceived ideas and
behavioral patterns.
+Checklist Method
+Developing a new idea through a list of related issues.
+Free Association
+Developing a new idea through a chain of word
associations.
 Creative Problem Solving (cont.)

+Forced Relationships
+Developing a new idea by looking at product combinations.
+A five step process which focuses on generating ideas from
relationship patterns between elements of a problem.
+Collective Notebook Method
+Developing a new idea by group members regularly recording ideas.
Creative Problem Solving (cont.)

+Attribute Listing
+Developing a new idea by looking at the positives and
negatives.
+Big-Dream Approach
+Developing a new idea by thinking without constraints.
+Parameter Analysis
+Developing a new idea by focusing on parameter
identification and creative synthesis.
Figure 4.1 - Illustration of
Parameter Analysis
Innovation
+Types of Innovation
+Breakthrough
+ Fewest number of innovations.
+ Establishes the platform on which future innovations in an area
are developed.
+ Should be protected by patents, trademarks, and copyrights.
+Technological
+ Occurs more frequently; not at the same level of breakthrough
inventions.
+ Offers advancements in the product/market area.
+ Needs to be protected.
Innovation (cont.)

+Ordinary
+ Occurs most frequently.
+ Extends a technological innovation into a better product or
service or one that has a different market appeal.
+ Usually come from market analysis and pull, not technology
push.
Innovation (cont.)

+Defining a New Innovation (Product or Service)

+Newness can be:
+ In the consumer concept.
+ A change in the package or container.
+ Slight changes or modifications in the appearance of the
product. (Industrial market)
+Companies also add products to their product line that
are already marketed by other companies; products are
new to the manufacturer but not the consumer.
Innovation (cont.)

+Classification of New Products

+Consumer’s Viewpoint
+ The continuum proposed by Thomas Robertson is based on
the disrupting influence that use of the product has on
established consumption patterns.
+ Continuous innovations.
+ Dynamically continuous.
+ Discontinuous innovations.
+ This approach is consistent with the marketing philosophy that
“satisfaction of consumer needs” is fundamental to a venture’s
existence.
Figure 4.3 - Continuum for
Classifying New Products
Innovation (cont.)

+Firm’s Viewpoint
+ Distinction can be made between new products and new
markets.
+ Situations with a new technology and a new market are the
most complicated and pose the highest degree of risk.
Figure 4.4 - New Product
Classification System
Figure 4.5 - A Model of the
Opportunity Recognition Process
Product Planning and
Development Process
+Establishing Evaluation Criteria
+Criteria should be established at each stage of the
product planning and development process.
+It should be all-inclusive and quantitative in nature.
+Criteria should evaluate the idea in terms of:
+ Market opportunity.
+ Competition.
+ Marketing system.
+ Financial factors.
+ Production factors.
Figure 4.6 - The Product Planning
and Development Process
 Product Planning and Development
Process (cont.)

+Idea Stage
+Promising ideas should be identified and impractical ones eliminated.
+Evaluation method – Systematic market evaluation checklist.
+Determine the need for the new idea as well as its value to the
company.
+Concept Stage
+Refined idea is tested to determine consumer acceptance which can
be measured through the conversational interview method.
 Product Planning and Development
Process (cont.)

+Product Development Stage

+Consumer reaction to the product/service is determined.
+A consumer panel is given a product sample and preference is
determined through methods such as multiple brand comparisons, risk
analysis, etc.
+Test Marketing Stage
+Increases certainty of successful commercialization.
+Actual sales reflect consumer acceptance.
E-commerce and Business Start-up
+E-commerce offers entrepreneurs an opportunity
to be creative and innovative.
+Factors that facilitate high-growth in electronic
commerce:
+Widespread use of personal computers.
+Adoption of intranets in companies.
+Acceptance of the Internet as a business
communications platform.
+Faster and more secure systems.
 E-commerce and Business Start-up
(cont.)

+Using E-Commerce Creatively

+Entrepreneurs have to decide whether to:
+ Run Internet operations within the company.
+ Outsource these operations to Internet specialists.
+ Use e-commerce packages provided by software companies.
+The integration of front-end and back-end operations represents the
greatest challenge for doing Internet business.
 E-commerce and Business Start-up
(cont.)

+Web Sites
+Ease of use.
+Structure and organization of information.
+Search capability.
+E-mail response system.
+Speed.
+Compatibility with different browsers and platforms.
 E-commerce and Business Start-up
(cont.)

+Tracking Customer Information

+Electronic databases track the activity of the industry, segment, and
company.
+It supports personal marketing targeted at individual clients.
+Care must be taken to follow the laws protecting the privacy of
individuals.
 E-commerce and Business Start-up
(cont.)

+Doing E-Commerce as an Entrepreneurial Company

+Products should be delivered economically and conveniently.
+Products need to interest a wide market; company must be ready to
ship the product outside its own geographical location.
+Online operations should bring significant cost reductions.
+Company must be able to economically draw customers to its Web site.
+What is ‘Empathic Design’

+Empathic design encompassing

a variety of techniques that are
participatory, in-depth and
qualitative in nature. The aim is to
equip designers with uncaptured
customer information that helps to
stimulate innovation and
differentiate their product and to
‘delight’ customers.
 +The Whole Product Model

Core Elements: Augmented Elements:

The absolute minimum elements a product must have.
For instance, a car must have an engine & wheels.
• Expected Elements: Those elements which the
customers expect the product to have. For example – a
car is expected to have a radio and intermittent
windscreen wipers.
Which further differentiate the product, such as Volvo’s
side impact air bags, or Nissan’s 6-year corrosion
warranty.
• Potential Elements: Often intangible but give added
value – the feeling of driving a Mercedes or ‘above
everyone else’ in a Land Rover Discovery.

As a market matures, expected and augmented elements become core elements. For example,
intermittent windscreen wipers, originally for lorries, became an extra for the car market, and
now seen as a Core element. Airbags, first an optional extra became standard and now
everywhere. These elements often effect price..
Unit: 3 Recognizing opportunities
and Moving innovation to market
- A method for opportunity
recognition,
- Rough -cut business evaluation.
The idea funnel,
- Stage-gate systems,
- A caution on funnels and stage-
gate systems,
- Financial issues,
- Extending innovation through
platforms.
Opportunity recognition is

+the active, cognitive process (or processes) through which

individuals conclude that they have identified the potential to
create something new that has the potential to generate economic
value and that is not currently being exploited or developed and is
viewed as desirable in the society in which it occurs (i.e. its
development is consistent with existing legal and moral
conditions). (Baron, 2004b, p. 52)
The "Idea Funnel" is a concept that represents the process of generating, refining, and selecting
business ideas. Here's a rough-cut evaluation of the Idea Funnel as a potential business concept
+ :
1. Market Potential:
1. The idea of an Idea Funnel addresses a common need among entrepreneurs and innovators: the need to systematically generate and evaluate business ideas.
2. Market research would be crucial to assess the demand for such a service or platform. Are there existing solutions? How satisfied are users with current methods of idea generation
and evaluation?
2. Value Proposition:
1. The value proposition of the Idea Funnel lies in its ability to streamline the idea generation process, saving time and resources for entrepreneurs.
2. The platform could offer tools and resources for brainstorming, market research, feasibility analysis, and idea validation.
3. Revenue Model:
1. Potential revenue streams could include subscription fees for access to premium features, licensing fees for proprietary tools or algorithms, and advertising or sponsorships.
2. Freemium models could be explored, offering basic features for free and charging for advanced functionalities.
4. Competitive Landscape:
1. Competition may come from existing idea generation platforms, business consultancy firms, and entrepreneurial communities.
2. The key differentiation would lie in the effectiveness and efficiency of the idea generation process, as well as the usability and accessibility of the platform.
5. Technical Feasibility:
1. Developing the Idea Funnel platform would require expertise in software development, user experience design, and possibly data analytics.
2. Integration with existing tools and platforms (e.g., project management software, market research databases) would enhance usability and value.
6. Risk Factors:
1. Market saturation or low demand for idea generation tools could pose a risk to the success of the Idea Funnel.
2. Technical challenges in developing and maintaining the platform, as well as cybersecurity concerns, should be addressed.
7. Scalability and Growth Potential:
1. The Idea Funnel has potential for scalability, as it could cater to entrepreneurs and innovators across various industries and geographic locations.
2. Partnerships with incubators, accelerators, and educational institutions could facilitate growth and expansion.
Stage gate system
Different models for an ideation funnel

There’s no one right way to go about implementing an idea funnel, so explore different options before committing to a model. Here are a few to check out:

Stage-gate method

Also referred to as the “phase-gate process,” this method can be thought of as something like a video game in which sequential stages aren’t “unlocked” until previous requirements are met.

The stages of this process are:

Discover: The ideation and brainstorming phase

Scope: A general outline of the project, including an exploration of the project’s goals

Design: A more detailed examination of the project that involves research, justification, and the development of a business case, metrics, and plans

Develop: The actual creation of the product or service that will eventually be scaled out for the market

Scale: Tests and trials, product validation, operations plans, and marketing propositions

Launch: Introduction to the market, including full production and sales

Each of those five stages is gated by three specific components:

Input: Examining and evaluating the previous stage’s results

Criteria: Using data and KPIs to measure against defined success metrics

Output: Considering the above, the idea is given the go-ahead, killed, recycled, or held off on until a future time

The stage-gate method is a very precise method of moving through the ideation and launch process, but it lacks the creative freedom of other methods.
1.Concept and Purpose:
1. The Stage-Gate System divides the innovation process into distinct stages (e.g., ideation, development, testing) separated by gates or
checkpoints.
2. Its primary purpose is to improve decision-making, resource allocation, and risk management throughout the innovation lifecycle.
2.Benefits:
1. Provides a systematic framework for managing innovation projects, enhancing transparency and accountability.
2. Facilitates early identification and mitigation of risks, reducing the likelihood of costly failures later in the process.
3. Improves cross-functional collaboration by involving stakeholders at key decision points and ensuring alignment with strategic
objectives.
4. Enables continuous improvement through feedback loops and post-launch evaluations.
3.Implementation Challenges:
1. Requires commitment from leadership to establish and enforce the Stage-Gate process, which may face resistance from teams
accustomed to less structured approaches.
2. Designing effective gates and criteria for decision-making can be challenging, as they need to balance thoroughness with agility.
3. Risk of bureaucracy and decision paralysis if gates become overly rigid or burdensome, hindering innovation and speed to market.
4. Adaptation to different project types or organizational contexts may be necessary, as a one-size-fits-all approach may not be suitable for
every situation.
4.Integration with Existing Processes:
1. Integration with existing project management methodologies (e.g., Agile, Lean) and quality management systems (e.g., Six Sigma) can
enhance effectiveness and efficiency.
2. Alignment with organizational culture and values is essential to ensure widespread adoption and sustainability.
5.Measurement and Evaluation:
1. Key performance indicators (KPIs) should be defined for each stage and gate to track progress, identify bottlenecks, and drive continuous
improvement.
2. Regular reviews and post-mortem analyses of completed projects can inform refinements to the Stage-Gate process over time.
6.Scalability and Flexibility:
1. The Stage-Gate System can be scaled to accommodate projects of varying complexity and size, from incremental improvements to
+ Design Thinking method
+ This method is nonlinear, meaning your team may
start at whichever stage they’d like, run them in
parallel, and revisit stages again later. The Design
Thinking method consists of five stages:
1. Empathize: Put yourself in the shoes of your users
and determine what problems they have
2.Define: Articulate the needs of your users
3.Ideate: Brainstorm ways to meet your users’ needs
4.Prototype: Build! Experiment and iterate
5.Test: Test the prototypes
+ While the Design Thinking method encourages
creativity, it lengthens the duratio
+ Lean start-up method
+ As the name implies, this method is useful for
quickly spinning a startup into reality. Lean startup
prioritizes learning and innovation as well as
proper management, and it’s useful for minimizing
the waste that is common with startups. There are
essentially three phases to this method:
1. Build: Get a minimum viable product into existence
quickly so that it can be tested by actual
customers
2. Measure: Gathering data is the name of the game
here—otherwise, there’s no way to iterate. Gather
feedback from customers and collect valuable data
that can be incorporated into future models.
3. Learn: Go beyond simply gathering and learn from
the data and feedback you’ve collected. Determine
what’s working and what isn’t.
+ The lean startup method prioritizes action. This is
great for getting a product into the market but not
great for minimizing risk. If you need to prioritize
speed, this is the method to try out.
 Disadvantages
1. Flexibility vs. Rigidity:
1. Funnels and stage-gate systems can provide structure and guidance, but they should not be so rigid that they stifle creativity or hinder adaptability.
2. Beware of overly prescriptive processes that may discourage experimentation or impede responsiveness to changing market conditions or stakeholder feedback.

2. Risk of Bias and Groupthink:

1. Inherent biases in decision-making processes, particularly at gate reviews or evaluation stages, can lead to the rejection of potentially valuable ideas or projects.
2. Guard against groupthink by encouraging diverse perspectives and independent assessments of proposals to avoid overlooking innovative or unconventional opportunities.

3. Resource Allocation Challenges:

1. Stage-gate systems often involve resource commitments at each stage, which can lead to sunk costs if projects are terminated after significant investment.
2. Ensure that gates are structured to assess not only project viability but also resource allocation effectiveness, allowing for informed decisions on whether to continue, pivot, or terminate
initiatives.

4. Pace of Innovation:
1. While stage-gate systems provide a systematic approach to managing innovation, they may not always align with the fast-paced nature of certain industries or market dynamics.
2. Balance the need for thorough evaluation and risk mitigation with the imperative to seize timely opportunities and maintain competitiveness in rapidly evolving environments.

5. Cultural Fit and Adoption:

1. Introducing new processes like funnels or stage-gate systems requires cultural alignment and buy-in from stakeholders at all levels of the organization.
2. Invest in change management efforts to ensure understanding, acceptance, and commitment to the new approach, fostering a culture of innovation, accountability, and continuous
improvement.

6. Balancing Structure with Creativity:

1. Striking the right balance between structure and creativity is crucial. While processes like stage-gate systems provide discipline and control, they should not stifle innovative thinking or
suppress entrepreneurial spirit.
2. Encourage an environment that nurtures creativity, experimentation, and calculated risk-taking within the framework of structured processes.
+extending innovation through
platforms represents a
transformative approach to driving
economic growth, fostering
collaboration, and addressing
complex societal challenges. By
harnessing the power of platforms to
connect people, ideas, and
resources, we can unlock new
opportunities for value creation,
empower diverse communities, and
shape a more inclusive and
prosperous future.
 Unit: 4 Creativity and creative
groups
- Myths about creativity,
- three components of individual
creativity,
- Characteristics of creative groups,
- Handling conflicts in groups,
- Time pressure and creativity.
- Enhancing creativity: enriching the -
organization and workplace,
Organisational enrichment,
- Enriching the physical workplace.
 Creativity is innate:

Creativity is solely about the arts:

Creativity requires inspiration or a

Myths about "Eureka!" moment:

creativity Creativity is chaotic and unstructured:

Creativity is a solitary endeavour:

Creativity declines with age:

three components
of individual
creativity
Characteristics of
creative groups
+ Diverse Perspectives
+ Open Communication:
+ Psychological Safety:
+ Flexible Structure.
+ Encouragement of Experimentation:
+ Iterative Process:
+ Embrace of Ambiguity and Uncertainty:
+ Shared Purpose and Vision
+ Playfulness and Humor:
+ Supportive Environment:
 1.Open Communication:
2.Active Listening:
Handling 3.Clarify Expectations:
conflicts in 4.Seek Compromise:
5.Mediation:
groups, 6.Focus on Interests, Not Positions:
7.Take a Break
8.Establish Clear Processes:
9.Learn from Conflict:
10.Build Trust and Resilience:
Time pressure and creativity
Positive Effects:
• Enhanced Focus: Time pressure can sharpen focus
and concentration, prompting individuals to prioritize
tasks and allocate resources more efficiently. This
heightened focus can stimulate creativity by channelling
energy and attention towards problem-solving and idea
generation.
• Stimulated Innovation: Time constraints can spur
individuals to think more creatively and explore
unconventional solutions to challenges. The urgency
created by time pressure often encourages innovative
thinking and experimentation, leading to breakthroughs
and novel insights.
• Increased Motivation: The presence of deadlines or
time constraints can boost motivation and productivity,
driving individuals to overcome obstacles and generate
ideas more rapidly. The sense of urgency created by
time pressure can fuel a sense of purpose and
determination, inspiring individuals to push their creative
boundaries.
• Promotion of Decision-Making: Time pressure forces
individuals to make decisions more quickly and
decisively, reducing indecision and procrastination. This
accelerated decision-making process can lead to more
agile and adaptive responses, fostering creativity
through rapid iteration and refinement.
Negative Effects:
• Increased Stress: Excessive time pressure or unrealistic
deadlines can elevate stress levels and hinder creative
thinking. High levels of stress can impair cognitive functioning,
inhibit divergent thinking, and diminish the quality of ideas
generated, ultimately stifling creativity.
• Limited Exploration: Time pressure may constrain individuals'
ability to explore alternative perspectives or consider a wide
range of options. When faced with tight deadlines, individuals
may default to familiar or conventional solutions rather than
taking risks or exploring innovative approaches.
• Reduced Reflection Time: Time pressure can diminish
opportunities for reflection and critical analysis, leading to
rushed decision-making and suboptimal outcomes. Without
adequate time for reflection, individuals may overlook potential
flaws or unintended consequences in their ideas or solutions.
• Creativity Block: Intense time pressure can trigger creative
blockages or mental barriers, impeding the flow of ideas and
inhibiting creative expression. When individuals feel
overwhelmed or rushed, they may struggle to access their
creative resources and find themselves unable to generate
innovative solutions.
Enhancing creativity: enriching the -
organization and workplace
1. Cultivate a Culture of Creativity
2. Provide Resources and Support:
3. Create Physical and Psychological Space:
4. Encourage Diverse Perspectives:
5. Promote Autonomy and Empowerment:
6. Facilitate Collaboration and Knowledge Sharing:
7. Set Clear Goals and Objectives:
8. Encourage Risk-Taking and Learning from Failure:
9. Lead by Example:
10.Measure and Reward Creativity:
Unit 5: Role of Leaders in promoting
innovation
- Develop an innovation -
friendly culture,
- establish strategic
direction,
- be involved with
innovation,
- be open but skeptical,
Improve the idea-to-
commercialisation process,
- apply portfolio thinking,
- put people with the right
stuff in charge,
-create an ambidextrous
organisation.
Develop an innovation -
friendly culture
1. Leadership Commitment:
2. Clear Vision and Values:
3. Encourage Curiosity and Exploration:.
4. Empowerment and Autonomy.
5. Open Communication and Collaboration:
6. Diversity and Inclusion:
7. Cross-Functional Teams:
8. Resource Allocation:
9. Recognition and Reward:
10.Continuous Improvement:
Improve the idea-to-
commercialisation
process
1. Cross-Functional Collaboration:
2. Customer-Centric Approach:
3. Agile Methodology:
4. Prototype and Test Early:
5. Risk Management:
6. Streamlined Decision-Making:
7. Supply Chain Optimization:
8. Intellectual Property Protection:
9. Market Entry Strategy:
10.Continuous Improvement:
Creating an ambidextrous organization involves balancing
the exploration of new opportunities and the exploitation
of existing capabilities. This approach allows the
organization to innovate and adapt to changing market
conditions while also optimizing its current operations for
efficiency and performance. Here's how to build an
ambidextrous organization:

1. Leadership Commitment:
2. Separate Units or Teams
3. Flexible Structures:
4. Culture of Innovation:
5. Resource Allocation:
6. Knowledge Sharing and Collaboration:
7. Dynamic Processes:
8. Talent Management:
9. Performance Metrics:
10.Continuous Learning and Adaptation