CREATIVITY & INNOVATION

LECTURE ONE: Creativity, Invention and Innovation

Learning Outcomes
Know the difference among creativity, invention and innovation Understand how intelligence, knowledge, and experience relate to creativity Recognise the different types of innovation Understand the different models of innovation

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What is creativity?
Meaning of creativity
Having the power and the ability to create (American Heritage Dictionary) Characterised by originality and expressiveness; imaginative (American Heritage Dictionary) The ability to transcend traditional ideas, rules, patterns, relationships, or the like, and to create meaningful new ideas, forms, methods, interpretations, etc.; originality, progressiveness, or imagination (Random House Unabridged Dictionary) Making of the new and re-arranging the old
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What is innovation?
The meaning of innovation
The act of introducing something new?
Question: What is new? How new is new?

The implementation of creative inspiration Process of creating something and making it work

IMPORTANT NOTE:
To determine whether something is an innovation, it must be seen within a context
Question: Whether do we see this in a objective or subjective context?

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Difference between creativity and innovation

Trott (2002) wrote that:
Creativity is the thinking of novel and appropriate ideas Innovation is the successful implementation of those ideas within an organisation

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Intelligence and Creativity

Do you have to be highly intelligent in order to be creative?
What is intelligence?
Academic intelligence Literary intelligence Numerical intelligence Spatial intelligence Social intelligence Emotional intelligence

According to Edward De Bono, intelligence is the capability of the mind to process certain information. Intelligence can be analogous to computers.
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Knowledge, Experience and Creativity

Does creativity depend on knowledge and experience?
Yes
But knowledge and experience alone will not help unless we know how to use them to achieve our creative purpose Knowledge and experience are merely tools to be used Sometimes knowledge and experience can bind us put a limit to our creative process e.g. working with familiarity, groupthink
These limitations occur due to our socialisation process the conditioning resulted by the social pressure to conform and comply

In order for knowledge and experience to be useful in achieving creative output, they need to be accompanied with the right attitudes

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Types of Thinking
Reproductive thinking
Based on experience and past success past-orientated Rigidity, unoriginal thinking develop mindset

Productive thinking
Multi-perspective thinking Creation of unconventional, unique ideas

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Are these innovations?

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Are these innovations?

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Are these innovations?

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Are these innovations?

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Different Types of Innovations

Type of Innovation
Product innovation Process innovation Organisational innovation Management innovation

Example
The development of a new or improved product The development of a new manufacturing process such as Pilkingtons float glass process A new venture division, a new internal communication system, introduction of a new accounting procedure TQM (total quality management) systems, BPR (business process re-engineering)

Production innovation
Commercial/marketing

Quality circles, just-in-time (JIT) manufacturing system, new production planning software, new inspection system
New financing arrangements, e.g. Paypal, mobile phone wallet, Touch n Go card, new sales approach, e.g. direct marketing, buzz marketing, viral marketing Telephone financial service

Service Innovation

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Difference between innovation and invention

Myers and Marquis (1969) gave the following definition for innovation
Innovation is not a single action but a total process of interrelated sub processes. It is not just the conception of a new idea, nor the invention of a new device, nor the development of a new market. The process is all these things acting in an integrated fashion

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AN EXAMPLE OF AN INVENTION
Scientist and development engineers at a household cleaning products company had been working for many months on developing a new lavatory cleaning product. They had developed a liquid that when sprayed into the toilet pan, on contact with water, would fizz and sparkle. The effect was to give the impression of tough, active cleaning product. The company applied for a patent and further developments and market research were planned.
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AN EXAMPLE OF AN INVENTION
However, initial results both from technical and market specialists led to the abandonment of the product. The preliminary market feedback suggested a fear of such a product on the part of consumers. This was because the fizz and sparkle looked too dramatic and frightening. Furthermore, additional technical research revealed a short shelf life for the mixture. This is a clear example of an invention that did not progress beyond the organisation to a commercial product.
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Role of Science and Technology in Innovation

What is the difference between science and technology? Trott (2003, p. 14) said that
Science as systematic and formulated knowledge while Technology is often seen as application of science.
Technology is not an accident of nature; it is the product of deliberate actions by human beings. Technology is knowledge applied to products or production processes.

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Innovation As A Set of Processes

Innovation is not an activity but a set of processes. It is influenced by many factors within the organisation.

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General Overview of the Innovation Process

Other Firms

Interaction

The firms innovating architecture

The firms function Interaction Knowledge and technology provider

Individuals

Technology and product effects

MICRO ENVIRONMENT

Effects

MACRO ENVIRONMENT
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Popular Views of Innovation

Trott (2003) has identified the following popular views of innovation
Serendipity Linear model Simultaneous coupling model Interactive model Network model

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Serendipity
Innovation occurs due to luck and unexpected discoveries. Uncovering a major new invention leading to fame and fortune. However, serendipity is rare because in order to recognise the significance of an advance, one would need to have some prior knowledge in that area. Most discoveries are the result of people have had a fascination with a particular area of science or technology and it is following extended efforts on their part that advances are made.
Louis Pasteur said Chance favours the prepared mind.

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Linear Models of Innovation

Creation of new knowledge, dominated by universities and large science-based organisation Technology development, dominated by organisations Consumers express their needs and wants through the consumption of products

Science and technology base

Technological Development

Needs of the Market

What activities influence innovation? What are the internal processes that affect a companys ability to innovate?
Innovation occurs through the interaction of the science (dominated by universities and industry), technological development (dominated by industry) and the needs of the market was a significant step forward.
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Linear Model of Innovation

TECHNOLOGY PUSH Research and Development Manufacturin g Marketing

User

MARKET PULL Marketing Research & Development Manufacturin g

User

Traditionally, the innovation process has been viewed as a sequence of separable stages or activities
Technology-push model (Technology driven approach) Market-pull model (Customer driver approach)
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Linear Model of Innovation

Assumed that
scientist make unexpected discoveries, technologists apply them to develop product ideas and engineers and designers turn them into prototypes for testing marketing and sales will promote the product to the potential consumer
Marketplace was a passive recipient for the fruits of R&D

This model is notably applied in the pharmaceutical industry but not applicable to many other industries

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Simultaneous Coupling Model

Simultaneous coupling argued
that by looking at whether innovations are stimulated by technology, customer, need, manufacturing or a host of other factors, including competition, misses the point. that the linear model is only able to offer an explanation where the initial stimulus for innovation was born, that is, where the trigger for the idea or need was initiated. that the point of commencement for innovation is not know in advance
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Interactive Model
Innovation occur as the result of the interaction of the marketplace, the science base and the organisations capabilities. There is no explicit starting point. Innovation can arise from wide variety of points. Overall innovation process can be thought as a complex set of communication paths over which knowledge is transferred.

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Interactive Model
Links together the technology-push and market-pull models Innovation occurs as the result of interaction of:
the marketplace, the science base organisations capabilities

Like the coupling model there is no explicit starting point

The use of information flows is used to explain how innovations transpire and they can arise from a wide variety of points Establishing departmental functions to perform the main tasks of business strategy, R&D, manufacturing and marketing is inadequate to achieve the objective of successful innovation.

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Interactive Model
The interactive model describe that the innovation can be regarded as a logically sequential, though not necessarily continuous, process that can be divided into series of functionally distinct but interacting and interdependent stages. The overall innovation process can be thought of as a complex set of communication paths over which knowledge is transferred.

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Interactive Model
At the centre of the model are the organisational functions of R&D, engineering and design, manufacturing and marketing and sales. At first it may appear to be a linear model but the flow of communication is not necessarily linear.
There is provision of feedback and the linkages with science base and the marketplace occur between all functions
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Interactive Model
Generation of ideas are dependent on inputs from three basic components:
The organisation capabilities The needs in society and the marketplace The latest science and technology or advances in society

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Innovation as a management process

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Innovation as a management process

Scientist and engineers within the firm will be continually interacting with fellow scientists in universities and other firms about scientific and technological developments. The marketing function will need to interact with suppliers, distributors, customers and competitors to ensure that the day-to-day activities of understanding the customer needs and getting products to customers can be achieved.
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Innovation as a management process

Business planners and senior management will likewise communicate with a wide variety of firms and other external institutions, such as government departments, suppliers and customers.

All these information flows contribute to the wealth of knowledge held by the organisation.

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Innovation as a management process

These functions need to be effectively managed and to effectively manage these functions, the management
needs to pay attention to the interaction of internal functions within the organisation and the interaction of those functions with the external environment.

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In conclusion how do firms achieve successful innovation?

Effective communication Interaction of the function Interaction with the external environment
Need the right kind of organisational structure Need the right kind of organisational culture Need the right kind of systems
Reward and recognition system for encouragement and support Information management system

Therefore, in the future lectures, we will discuss about the appropriate structure, culture and systems to encourage creativity and promote the innovative process
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Organisational Heritage
According to Trott (2003, p. 23), organisational heritage
Is sometimes known as the organisational knowledge base
Note this does not mean the culture of the organisation. It represents a combination of the organisations knowledge base (established and built up over the years of operating) and the organisations unique architecture. It provides the company with powerful competitive advantage.
What is competitive advantage?

It can refers to the core competencies of the organisation.

What are core competencies?

Organisational heritage refers to the accumulative intellectual effort that brings upon competitive advantage of a business and which often forms the core competencies of an organisation resulted from the years of experience in operation.
Organisational heritage determines the organisations capability of what the organisation can do in the future.
In other words, what the organisation can do in the future will depend to some extent of what they have done in the past.

Organisational heritage acts as a framework for decision making in regard to innovation functions, R&D direction and new product development.
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Possible examination question

1. Do you think innovation is dependent on intelligence? Give justifications for your answers. (6 marks) Distinguish between reproductive thinking and productive thinking. Which type of thinking is necessary for creativity and why? (8 marks) What is the meaning of organisational heritage? (5 marks) Explain how organisational heritage influences the innovation process. (7 marks) Explain how technology differs from science, yet still does not equal innovation. (7 marks)

2.

3. 4. 5.

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Possible examination question

6. Identify and briefly explain the five (5) different types of innovation using relevant examples. (10 marks) 7. With examples, distinguish between invention and innovation. (6 marks) 8. What is the difference between unsuccessful innovation and an invention? (6 marks) 9. In the interactive model, explain what the marketplace, the science base and the organisations capabilities are and how they affect the innovation process. (12 marks)

10. Explain the meaning of Innovation as a set of processes. (8 marks)

11. Explain your understanding about innovation as a management process. (12 marks) 12. Using the relevant diagrams, distinguish between the technology-push and the market pull linear models of innovation. (10 marks) 13. Discuss, using the relevant diagrams, the difference between the linear models of innovation and the interactive model. (25 marks)

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