Imp Creativity and

innovation
Creativity
• What is creativity in business?
• Creativity is the development of a UNIQUE and USEFUL solution to
existing PROBLEMS and OPPORTUNITIES.
• Why do we need creativity in business?
1. Encourages innovation - finding new solutions to existing problems 2.
Boosts productivity - Reduce time and effort spent on mundane tasks
3. Allows businesses to adapt - Differentiate yourselves from your
competition
4. Fosters growth - Businesses can provide more value to customers
resulting in higher revenue or reduce costs to save money, both
resulting in profit growth
• Barriers to creativity
• 1. Not identifying the problem correctly
• 2. Finding the “right” answer
• 3. Logical thinking - (criticising ideas too early)
• 4. Insufficient trial and error
• 5. Constrained by Rules (think of “Jugaad”)
• Framework 2 - Design Thinking
1. Empathize - put yourselves in the shoes of your customer and think
of the problem from their point of view.
2. Define - Pin-point the exact problem that you are working to solve.
3. Ideate - Think of potential solutions to the problem (framework 1).
4. Prototype - Build the smallest possible version of the solution.
5. Test - Share the solution with your customers to get feedback.
Innovation
• Innovation is the process of deploying new ideas to enhance an
existing or, creating, a new PRODUCT or PROCESS to deliver
incremental value to a customer
Types of innovation
1 - Incremental Innovation
• Characterized by Low Advancement (either technology or behaviour
or policy) and Low Market impact
• Enhancement of existing technologies typically falls under
Incremental innovation category
• Example: Evolution of Television
2 - Radical Innovation
• Characterized by High Advancement (either technology or behaviour
or policy) and Low Market impact
• Technological advancements that are a result of R&D that currently
do not have major application in Business
• Example: Large Hadron Collider, James webb space telescope
3 - Sustaining Innovation
• Characterized by Low Advancement (either technology or behaviour
or policy) and High Market impact
• These are examples of existing technologies / processes that are
combined differently to create a new business model that makes it
more affordable and valuable to the customer
• Example: Taxi aggregators, UPI
• 4 - Disruptive Innovation
• Characterized by High Advancement (either technology or behaviour
or policy) and High Market impact
• These are innovation that transform the market and the society and
impact our lives in a major way
• Example: Smart phones, Blockchain & smart contracts
Common reasons why companies suffocate innovation:
• Closed communication
• Strict hierarchies
• Slow and Bureaucratic processes
• Lack of collaboration
• Risk taking is not rewarded
• Focus on the short term gains
Key Elements of innovation
• Process: Innovation is a process (it can be learned and managed like any
other skill
• Intentional: The process should be carried out on purpose
• Change: The process results in a change
• Value: The change creates value in our economy / society / individual lives
• Advantage: It creates value by exploiting existing opportunities at hand
today
• Opportunity: Turn value into marketable insights to meet opportunities of
tomorrow
Drucker’s Innovation and Entrepreneurship
describes 7 main sources of innovation
1. The Unexpected
• Innovations can emerge from unexpected events, surprises, or
disruptions in the market.
• When unexpected events occur, they can challenge existing
assumptions and create opportunities for entrepreneurs and
organizations to think differently and creatively.
2. Incongruities
• “The Incongruity" as a source of innovation revolves around
identifying and recognizing the gap between the current reality (what
is) and a desired, ideal state (what could be).
• This recognition of incongruities or discrepancies creates
opportunities for entrepreneurs and innovators to develop solutions
that bridge the gap and lead to new and improved products, services,
or processes.
 Incongruities - Key elements
• 1. Identifying Gaps
• 2. Recognizing Unmet Needs
• 3. Vision of the Ideal
• 4. Creative Problem-Solving
3. Process Need
• Identifying opportunities for improving existing processes within an
organization.
• It focuses on enhancing efficiency, reducing costs, or increasing
productivity to achieve better outcomes.
4. Industry and Market Changes
• Innovations can be triggered by shifts and developments within
industries, markets, or emerging technologies.
5. Demographic Changes
• shifts in the age, income, or lifestyle of a population can drive the
development of new products, services, or technologies that cater to
the specific needs and preferences of different demographic groups
6. Changes in Perception
• Innovations can emerge when people's perceptions, attitudes, or
beliefs about certain concepts, products, or ideas undergo a
transformation.
Key elements of change in perception
• Identifying the traditional perception
• Challenge the traditional perception via an innovative product or
solution
• Perception shift - consumers slowly change the their perception and
warm up to the new way of thinking
• Impact - as a result of the perception shift, a whole new way of doing
business emerges ansformation.
7. New Knowledge
• "New Knowledge" as a source of innovation refers to how
innovations can arise from breakthroughs in scientific or technological
knowledge
Marketing vs Advertising

• Marketing is the process of identifying customer needs and

determining how best to meet those needs.
• In contrast, advertising is the exercise of promoting a company and its
products or services through paid channels. In other words,
advertising is a component of marketing
How Consumer preferences are changing

Self-
actualization
Esteem

Love

Safety needs

Physiological needs
Key steps to create a content strategy
1. Know your audience
• Core questions associated with your problem
• Who are my most important customers
• Why are customers buying my product ○ What problems do they
hope to solve through my product ○ How are they solving the
problems right now?
2. Develop a purpose
• Develop a purpose to communicate to your customers
• What are your values?
• What does your brand believe in?
• (Craft a story) Why are you building the products that you are
building?
3. figure out the right content type for your customers
• Identify what type of content resonates with your customers.
• Brands can product content under one of the 4 personas depending
on the industry
Credit Bureau
The problem
• In order for a bank to give a loan, they needed to ensure that you
have the ability to pay it back
• Banks were hence hesitant to give loans to first time borrowers and
small businesses who were not well known
• This restricted access to credit for many people and only big
businesses could get loans
• There were also borrowers who defaulted at one bank and still got
loans at another bank causing higher default losses to banks
How credit bureaus work
• Banks or financial institutions will report all their loans to a central
credit organization
• Banks can subscribe to this database to have access to an individual
or business’s credit history.
• This enables banks to not give loans to risky individuals and
businesses
• It also allows banks to keep track of the borrower defaulting on other
loans with other banks
How UPI works
Other intangible impacts of UPI

• Faster movement of money leading to higher economic activity

• Solving the “Change” problem for low ticket transactions
• Digital payment inclusion at the bottom of the pyramid
What is an account aggregator
• Mainly a consent management system for customers to share their
data from one financial institution to another.
• Benefits:
• Consumers have greater control over their data
• Consumers can selectively share and even revoke access to their data
• Financial institutions cannot resell the data
• Data is shared directly from source and hence is tamper proof
• Real time data sharing
• Low cost