CREATIVITY

AND
INNOVATION
Module 3
 (a) What is creativity?

(b) Process of creativity.

Principles
of creativity (c) Roles of creativity.

(d) Importance of creativity

WHAT IS CREATIVITY?

 According to Scarborough – using imagination to develop

new ideas and discover new ways of looking at problems
and opportunities.
 Kuratko says it’s a generation of ideas resulting in
improved efficiency and effectiveness of a system.
 According to Coulter it is the ability to combine ideas in a
unique way.
 It is the process out of which something new emerges
 ACTIVITY

 IN
YOUR OWN WORDS, WRITE A
DEFINITION FOR CREATIVITY USING THE
FOLLOWING WORDS:

THINKING PROCESS
NEW/NOVEL IDEAS
GENERATE UNIQUE SOLUTIONS.
 GROUP ACTIVITY

In small groups, take a bottle of

water, cell phone, piece of
clothing or a product of your
choice and be creative (improve,
enhance, recycle, make something
new)
 PROCESS OF CREATIVITY

 PREPARATION – exposing the mind to many new things or a an area that

you have an interest, increase skills in listening, attention, reasoning and
planning.
 INVESTIGATION- requires that entrep develop a concrete understanding
of the problem or decision.
 TRANSFORMATION – observe the connectivity and differences of each
aspect of data collected
 INCUBATION- push the task to the back of your mind. Allow your mind to
rest. There is no conscious thinking of the problem at hand.
 ILLUMINATION – the moment you have a bright idea
 EVALUATION/VERIFICATION – the brilliant idea must be evaluated process
 IMPLEMENTATION – transform thoughts into a product.
 ROLE OF CREATIVITY

 CREATIVITY FOSTERS NEW IDEA GENERATION

 FACILITATES CHANGES IN EMPLOYEES ATTITUDE TO BE
FLEXIBLE AND ACCEPT CHANGES
 GENERATES MODERN APPROACHES TO SOLVE ISSUES
 CREATION OF NOVEL PRODUCTS (NEW AND ORIGINAL)
 ENCOURAGES THE DECISION MAKER TO CONSIDER THE
INTERNAL AND EXTERNAL ENVIRONMENT TOCOLLECT
INFORMATION TO ASSIST DECISION MAKING
 IMPORTANCE OF CREATIVITY

 SITUATIONS CHANGE SO NEW APPROACH

 COMPETITIVE EDGE
 RESTRUCTURE AND REDESIGN SYSTEMS FOR NEW
PROCESSES
 PROBLEM SOLVING AND DECISION MAKING
 IDENTIFY NEW PRODUCTS, NEW MARKETS, MEET CUSTOMES
NEEDS, MOTIVATE WORKERS
 Principles of Innovation

(c) Types of Innovation – the

(b) The importance of
(a) The meaning of innovation. 4Ps, product, process, position
innovation.
and paradigm

(e) Sources of innovation – new

markets, new technologies,
(d) Core innovation concepts –
new political rules, running out
incremental, modular,
of roads(limited options),
discontinuous and
change in sentiments or
architectural
behaviours, deregulations,
changes in the business models
 MEANING AND IMPORTANCE OF
INNOVATION
MEANING:
Innovation is the ability to apply creative solutions to problems and opportunities
to enhance or to enrich peoples lives.
It is regarded as improving or enhancing an existing process or product.

IMPORTANCE:
In the absence of creativity and innovation there is no Entrepreneurship. Given
the short life cycles of many products and the changing consumer demands,
businesses need to respond through Innovation.
 TYPES OF INNOVATION
4Ps
 PRODUCT: Introducing new/improved products or service to the market.
Eg cell phones, computers

 PROCESS INNOVATION: new and improved ways to produce or delivery

methods. Efficiency in the process and aims to reduce cost. Change the way
something is done. E.g. e - commerce

 POSITION INNOVATION: repositioning, new perception, new identity, changing

how we see the product. Phone for the whole market. Everyone rich or poor

 PARADIGM INNOVATION: new models e.g. laptop for rich/poor. Instead of

competing, change or shift the way we think. Rolls Royce for luxury
 CORE INNOVATION CONCEPTS

 INCREMENTAL:small improvements made to product. New flavours. Sorrel red

stripe

 MODULAR (COMPONENT): Pull apart, separate components and then put

them back together. Take out the car radio and add new advanced put in.

 DISCONTINUOUS/RADICAL: Paradigm change in market, entirely new

product for competitive advantage. Dramatic transformation. Social network.

 ARCHITECTURAL: components and associated design concepts remain

the same but the configuration of the system changes.eg some cars using
electricity
INCREMENTAL

 These are a series of small improvements that are made to an existing

product, product line or service.
 It is done with the intention of keeping the customers interested so that they
do not get bored and switch to similar products or services being offered by
the competitors.
 Red Stripe is continuously improving its beer by adding new and interesting
flavours. It also created a thermochromic label that glows when it becomes
cool and is ready for drinking.
 All these changes are added one by one over a period of time .
MODULAR (COMPONENT)

 Modularity speaks to the degree in which a systems components may be

separated and recombined. There is a redesign of the core components of a
product.
 A car is made up of various parts. If the system is designed in such a way that
the radio that it was manufactured with, can be taken out and a more
technologically advanced one can be fitted perfectly into the system, without
having to PULL DOWN the whole car or any part of the car, it is said to have
undergone modular innovation.
DISCONTINUOUS/RADICAL

 This innovation causes a paradigm shift in Science and Technology and or the
market structure of an industry.
 It presents an entirely new product to the world.
 It is centered around doing something different.
 Discontinuous innovation is geared towards securing a competitive advantage,
retaining market share and increasing profitability.
 When Social Network came into existence, it was considered to be a
breakthrough in Science. That was discontinuous innovation.
ARCHITECTURAL INNOVATION

 With this innovation, the nature of the relationships that exists between core
components are changed but the core design concepts are reinforced.
 Architectural Innovation can be seen as revolutionary.
 The introduction of a new series of a particular type of car, that uses
electricity would be an example of Architectural Innovation
 SOURCES OF INNOVATION

 NEW MARKETS
 NEW TECHNOLOGIES
 NEW POLITICAL RULES
 RUNNING OUT OF ROADS (LIMITED OPTIONS)
 CHANGE IN SENTIMENTS OR BEHAVIOURS
 DEREGULATIONS
 CHANGES IN THE BUSINESS MODELS
 (a) Concept of disruptive and
incremental innovations.

(b) Effect of disruptive and incremental

DISRUPTIVE, innovations on the entrepreneurial
process.
INCREMENTAL
AND OPEN (c) The concept of open innovation.

INNOVATIONS (d) Dynamics of open innovation.

(e) Impact of open source innovation.

 CONCEPT OF DISRUPTIVE AND
INCREMENTAL INNOVATION

 DISRUPTIVE INNOVATION IS ONE WHICH CAUSES ANOTHER INNOVATION TO

COME TO AN END WHEN IT IS INTRODUCED INTO THE MARKET. END OF THE
INNOVATION – OBSOLETE – CREATE A NEW BUSINESS MODEL WITH DIFFERENT
VALUE PROPOSITION. (the product offering, the benefit the firm intends to
deliver)

 INCREMENTAL INNOVATION IS WHERE YOU HAVE A SERIES OF SMALL

IMPROVEMENTS THAT ARE MADE TO AN EXISTING PRODUCT, PRODUCT LINE OR
SERVICE. IT FITS INTO THE BUSINESS MODEL( the product offering, target
market, operations, product differentiation, growth, income generation).
 EFFECTS OF DISRUPTIVE AND
INCREMENTAL INNOVATION
 INCREMENTAL INNOVATION IS MORE COMMON THAN DISRUPTIVE
 INCREMENTAL IS QUICKER AND MORE ACCEPTABLE THAN DISRUPTIVE
 INCREMENTAL HAS A MODERATE BUT IMMEDIATE REVENUE PERFORMANCE
 DISRUPTIVE HAS THE POTENTIAL TO PRODUCE GREATER BENEFITS TO THE
FIRM.
 DISRUPTIVE HAS A LONGER GESTATION PERIOD (TIME BETWEEN THE START OF
THE BUSINESS AND WHERE YOU WANT IT TO GO)
 DISRUPTIVE INNOVATION REQUIRES A LOT OF ATTENTION AND CARE IN ORDER
TO GUARANTEE ITS SUCCESS
 CONCEPT OF OPEN INNOVATION

 OPEN INNOVATION IS THE USE OF BOTH INTERNAL AND

EXTERNAL IDEAS TO ADVANCE TECHNOLOGY.

 IT INVOLVES PARTNERING WITH OTHERS IN INNOVATING

AND RESULTING IN SHARED RISKS AND REWARDS.

 CLOSED INNOVATION HAPPENS WITHIN THE ORGANIZATION

AMONG THE EMPLOYEES IN THE RESEARCH AND
DEVELOPMENT DEPARTMENT.
Nurturing and Managing Innovation

 (a) Micro/Organisational level

 (i) incentives for innovating – recognition at staff meetings, cash prizes,

awards such as employee of the month.

 (ii) internal policy – includes innovation as a part of the policy so that workers
will see that innovation is a normal and expected procedure.

 (iii) organisational culture – create a culture of innovation through

- inspiration; observation; listening to consumer; and,
(IV) organisational structure.
 (b) Macro/National level
 Policy development:
 (i) social (for example, changing demographics e.g. age, gender
 (ii) political (for example, internal governance, stability)create anti-
corruption policies
 (iii) economic (for example, entrepreneurship policies, incentives);
 (iv) environmental (regulations, environmental responsibility);
 (v) cultural (respect for indigenous customs and practices); and,
 (vi) ethical (adherence to sound principles and business practices).

Nurturing and Managing Innovation

 Methods of
protecting INCLUDING BUT NOT
LIMITED TO:
(A) INTELLECTUAL
PROPERTY RIGHTS.
(I) BRANDING. (II) TRADEMARKS.

Innovation
and
creativity (III) PATENTS. (IV) COPYRIGHTS. (V) REGISTERED DESIGN
PROTECTION.
(VI) TRADE SECRETS
(PROCESSES,
TECHNIQUES,
CONFIDENTIAL
DISCLOSURE
AGREEMENTS).
INTELLECTUAL PROPERTY RIGHTS

 THIS SPEAKS TO THE PROTECTION THATIS GRANTED TO THE CREATORS OF

INTELLECTUAL PROPERTY. INCLUDED IN THE METHODS OF PROTECTION ARE:
 BRANDING – unique brand identity which consists of a mark(brand mark) or/and
name (brand name) so that products can be identified.

 TRADEMARKS – trademarks consists of all the things that a business consciously

wants to be identified by, and all it seeks to protect. It includes words, symbols,
phrase, design, name, logo and slogan

 PATENT – a title granted to the inventor of a machine, product, etc. the inventor
has exclusive rights to make and sell that invention. The patent prevents persons
from copying, using or selling the intellectual property without permission.
INTELLECTUAL PROPERTY RIGHTS con’t

COPYRIGHTS –similar to patent but relates to literary, dramatic, musical and

artistic work.

REGISTERED DESIGN PROTECTION – for businesses that have created a unique

design for their products, registering that design may prove advantageous;
giving them a competitive edge. The Design Protection relates to the outer
appearance e.g. shape. Coco cola bottle.

TRADE SECRETS-this consist of information surrounding a businesses

operations, goods or services that allow them to have a competitive
advantage. The firm gains protection for these secrets. They cover processes,
techniques, confidential disclosure agreements.