Practice Ernest Abaho eabaho@mubs.ac.ug +256701105998
June 2022
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The theory and its assumptions • General context and meaning; • …… a process through which the introduction of something new creates the expiry of whatever existed before it. • The term is used • Economics • corporate governance • product development • technology • marketing.
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Assumptions • Developed by Joseph Schumpeter in the 1950s. The theory assumes the following; • The economy is based on the principles of supply and demand, where competition has an influence on market prices. • The economy is capitalistic • Capitalism is a constantly changing, dynamic, and innovative process in which a set of new ideas and processes challenge the existing ones (the status quo) and change existing paradigms. • Economic growth is driven by innovation • Innovation leads to chaos which can be the result of obsolete or not very innovative products • Innovation makes companies to close and some workers become irrelevant • Negative outcomes of change bring along new solutions
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Some living examples • Social media straining traditional media • Photography companies whose business was greatly replaced by smartphone incorporated companies; • Traditional watches increasingly becoming replaced by smartwatches; • Tablets and kindles replacing conventional printed books; • Music streaming services (spotify, apple…) replacing digital shopping of music songs or albums; • Video streaming services replacing DVDs. • Online education affecting education structures • Anti-aging technologies
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Its relevance in modern management • Creative destruction accounts for over 50% of productivity growth.
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Threats to creative destruction as an opportunity
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Class exercise
Identify a company in Uganda and assess it potential to
disrupt the operations of its sector and the opportunities it can start with
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CREATIVE PROBLEM SOLVING
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Rationale of CPS • It brings competitive advantage • It brings organisatonal efficiency • It facilitates new product development • It fosters technology productivity • It helps in responding to client calls for product improvement and quality assurance
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What a problem is? • Ask the class • Focus on organization/Business • Hint on the sources/causes of such problems
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…..and Creative problem-solving (CPS)? • Dealing with obstacles and challenges is a routine in management life, and business. • To improve your products, services, communications, and interpersonal skills, and for you and your organization to excel, you need to encourage creative thinking and find innovative solutions that work. • You thus must generate lots of potential solutions and possibilities. WHILST • Evaluating those options and choosing the most promising one.
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Core Principles of CPS • Balancing Divergent and convergent thinking • Asking problems as questions to generate rich information by asking closed questions to elicit short answers. • Avoiding judgment. • Focus on "Yes, and," rather than "No, but." • "Yes, and" encourages people to expand their thoughts, which is necessary during certain stages of CPS. Using the word "but" – preceded by "yes" or "no" – ends
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Approaches to CPS • Using the problem checklist, “go wild” and 5 whys • Applying to work related problems • The SCAMPER model • Design thinking • Brainstorming (Plethorating) • Reverse brainstorming
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Using the problem checklist, “go wild” and 5 whys • Why are things happening/not happening? • Who is responsible? • What is happening? What should happen? • When are things happening? • Where are the things happening?
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Applying to work related problems
•Student task;
Identify a problem at your place and
propose solutions
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SCAMPER • This technique assumes that everything new is a variation of something already in existence. • SCAMPER is an acronym, and each letter indicates a different method . • S = Substitute • C = Combine • A = Adapt • M = Magnify • P = Put to Other Uses • E = Eliminate (alternative is Minify) • R = Rearrange (alternative is Reverse) • To use SCAMPER you start with identifying the problem
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Key questions under the SCAMPER approach • S: What to substitute in my process of selling? • C: How do I blend selling with other activities? • A: What to copy or adapt the selling process of another person or company? • M: What do I put more weight on or magnify when selling? • P: What other uses can I put my selling to? • E: What do I eliminate or make easier in my process of selling? • R: How do I change, reverse or reorder my manner of selling?
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18 Ernest Abaho +256701105998 05/17/23 How will you apply the SCAMPER method to solve your personal problems? Discussion question Brainstorming- (Osborn, 1953) • Sharing particular ideas within a group about a certain problem and or plan • It has a number of rules namely; • Focus on quantity of ideas • NO criticism • Encourage wild ideas • Combine and improve ideas
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Problem reversal • Using opposite perspectives to solve problems • It focuses on going against the norm • Common ideologies; • turning it around • Look at the glass “half empty” vs. “Half full” • inside-out • back to front. • Question for discussion: • Identify a management problem and analyse it using problem reversal
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Key skills in CPS
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Revision question
Why do some organisations find it difficult to practice CPS?